Again. Im Brian Sullivan power lunch tees off right now. And welcome to power lunch. Im melissa lee. The major average giving up gains. Dow and s p, russell 2,000 small caps did soar to record highs but now looking at losses across the board. The dow managing to hold on to ever so small gains. Commodities are crushing it and oil at threeyear high and copper and gold soar the dollar at a low. Saying a weaker dollar is good for u. S. Trade transports getting slammed led by united. The airline down 11 on pace for the worst day in four months on fears about a price war. Got much more on this coming up. Michelle. Thank you. Im Michelle Caruso cabrero live in switzerland where the trump tax cut and the surging and Global Economy are front and center well talk taxes, trade and whether davos is ready for President Trump to arrive on friday and michelle, on this multicon innocent, over the next couple of hours you will meet four managers who are the sole of consistency. That is why they have been named the 2017 morning Star Fund Managers of the year youll meet them and talk to them and learn how they did. It melissa, back you to. Look forward to that. It is a big day for earnings latest results here. T the earnings squad is here we begin with another kitchen sink quarter from General Electric this is the third sink at this point, morgan. Were collecting sinks here it is definitely a kitchen sink. Earnings and revenue missed expectations but the quarter and full year was better than expected thanks to cost cutting with 1. 7 billion cut in 2017 another 2 billion tarkted f targeted until the ceo explained an s. E. C. Investigation tied to ge capital 15 billion insurance charge from last week, they tell me it is early and not unexpected given the size of last weeks disclosure but still is spooked investors now they did reaffirm the 2018 industrial eps and guide, health care and avenue aviation gre but powers profited plunged 88 and this year it may get worse lastly, regarding a breakup, flannery saying they are reviewing the structure for the company and there will be a ge in the future but it will look def different than today shares are down 3 . And lets turn to comcast because it peers the death of cable may have been greatly exaggerated. Julia boorstin back with us. The key thing to watch her, subscriber numbers how are they looking comcast has more subscribers than wall street the stock did drop despite expectations and a Dividend Increase subscriber strength and record profitability driving revenue up 4 to 21. 9 bms. That is 2 beat. Comcast added 350,000 high Speed Internet customers that is about 40,000 more than expected and although the company lost 33,000 video video customers during the quarter, that is a smaller loss than the 45,000 subscriber loss that analysts had been expecting. Nomura said they should ease concerns but we expect ott declines to continue given least steady competition from existing player and likely newent rants and the value will be high as they evaluate opportunities. United continental down, dragging the sector based on the Conference Call. Phil be low is here to explain. They will boost margins to be more competitive lets look at what they are looking to do. 4 to 6 capacity increases, primarily domestic for each year not only this year but 2019 and 2020 as i mentioned, mainly domestic into the chicago and houston and denver hub where they are getting killed by american and delta. And in the end, they believe this will boost not only profits but profit margin at the hub after years of retrenching, here is the ceo talking about how theyve made bad moves in the past. We listened to too many people and started to be conscience and we started bring you smaller aircraft where our competitors offer more comfortable eric and were wondering where you [ inaudible ]. And today they are pushing united down more than 10 and the rest of the Airline Stocks getting hammered as well and it comes down to this. When united adds capacity and say they are hoping to increase margins against american and delta, do you think theyll sit there and say bring more flight news chicago were welcoming that no well talk with doug parker tomorrow here on cnbc. You do not want to miss it it is right here on power lunch. Were down at the American Operations Center with doug. Ill be curious what he has to say. He wont say were going to match them plane for plane, but they wont see ground. Doug will say were going to make sure this is not were just not going to hand over to united that is the concern for investors. We look forward to that thank you. Phil le bowe. Michelle out to you in davos. You could call it the trump effect, the mood here is up beat as World Leaders wait for the president to speak on friday the bank top ceo are weighing in and cutting deals. It is not clear what the right straetegy of a negotiatio has to be, but if you are going to negotiate and get some benefits you have to lay it down and say this is the way it is going to be and what do you want to do. And i think the chinese has been mon an emerging market and now we have to compete on more of a level Playing Field and i think they recognize that and in some cases they they request a subsidy not a real subsidy but a benefit and in some cases i think they dominate certain aspects of the market. You could be tougher and i think we need to be smart where and how we use those powers or how we negotiate those but i think you can always be tougher around certain aspects i dont think of this as a broad brush. Im not against foreign ownership. Im against competitive. What people are doing today i [ inaudible ] to say were going to help our people and stuff like that. But the real benefit comes over time lets bring in dan glazer hes president and ceo of marsh and Mclennan Companies good to have you here. It is good to be here. This is your ninth davos. What is this mood like in this Business Climate like compared to the past. Well nine years and finally some optimism. So people are feeling good there is a bit more confidence there is the sense that this long slow growth economy globally over the last decade really since the financial crisis is finally coming to an end. How much of that of the tax cuts in the United States for corporate america. I think the tax cuts are not the fuel behind the optimism there is some reasonable levels of confidence even before the tax cuts but the tax cuts are incredibly welcome. Certainly for Companies Like ourselves. And so when i look at it, ceos have a bit of a bounce in their step and they are looking to invest. And i looked at your quarter Earnings Report and it was 26. 2 and have you looked at where it is going to be next year. Yes but i cant say it here because were in the quiet period. But ultimately lower our effective tax rate over the last couple of years is about 29 in total apart from discrete items and yes, it will be lower and were very pleased about. That and even more importantly, it increased the competitiveness and allows us to compete against the foreign competitors more on more on a level Playing Field. Is this crowd ready for President Trump . Well as an american, im happy the president is coming. I think the president coming at any time to a event like davos is important and i absolutely believe people here are interested in what he has to say. But there is this impression when you talk to people here, when you listen to listen tos media here, that the America First message is going to be antidove os or antiglobalism do you think the two could mesh or are there clashes well, the way i look at it, i would bring it back to i have no idea what President Trump is going to talk about. I dont think it really matters all that much. The fact that hes here and saying, the u. S. Is open for business, were growing, we want to compete around the world, and i think it is a good message overall that most people are talking about. So ive only heard enthusiasm for the president coming to davos. That the interesting. Different from what ive heard but i dont doubt. You put out a risk report. What struck me is there is a lot of things you would expect on there. The thing that people were least concerned about, way down in the corner, you could barely see it, inflation. Uncontrollable inflation i wonder if you should go against the consensus. The global risk report, weve done it 13 years in a row, it is a high quality, very interesting report and we poll literally thousands of people who are involved in risk business and that sort of thing. If you look at the issues from, say, four or five years ago, they were all economic unemployment, income disparity, fiscal crises, et cetera now it is like extreme weather events, natural disasters, Climate Change and Cyber Security it is probably the biggest risk that pops because it is a risk that is changing and ceos are recognizing that the risk is changing on them and we all have to catch up to where cyber is going. And it is a big topic as well as davos thank you for joining us. My pleasure dan glasser the ceo of Marsh Mclennan thank you very much. Right now back to Julia Boorstin with breaking news with regard to new tv and i mean literally new tv. That is right Jeffrey Katzenberg a name on board for his new tv venture announcing that meg whitman will become ceo of the l. A. Based company starting on march 1st. Katzenberg will serve as chairman he announced the new trf venture this past summer hoping to raise 2 billion to create the next generation of video. Professional content designed for viewing on mobile devices in formats of ten minutes or less he has said that he has the biggest content creators in the tv business on board and meg whitman now certainly adds more tech expertise to this company brian, back over to you. Wow, quite the big name here. And from what i understand, katzenberg has been trying to raise a couple billion dollars for over a year now. Used to be called wonder co and the new idea if i understand it and correct me if im wrong, is turning a half an hour show into a six Minute Program that a 22yearold can watch seamlessly and streamlessly on his or her mobile phone. That is right so wonder co is the product and they hope the way people watch tv and my understanding is talking to various sources that they are talking to everyone about this and there are a number of potential partners or potential investors if you look at a teleco, like at t or verizon. They may want to fuel a company be a mobile tv destination with the kind of content that is designed for watching on your phone. So hes been talking to those companies as well as the tech companies, apple and google and amazons of the world as potential investors and partners and a lot of the companies are interested in creating more content. They think the Media Companies here in hollywood think it is great to have another buyer but the idea is people dont want to watch half an hour of tv on their phone. But when you think about the alternatives, a lot of content is designed for your phone is really low cost, katzenberg wants to go high cost, high quality. So basically he needs he still needs Distribution Partners or his new tv a Distribution Platform in and of itself. It would be probably both he would it would be an app but if you could he wrote he needs right no is the funding. Because you cant launch a new service and subscription with an entirely new format unless you have the content at launch so he needs to raise that 1 billion to 2 billion to get started. Julia boorstin. Thank you very much. Big name there. The markets. The dow down 58 points right now. We were up earlier today weve seen a turn here well talk more to the dow ceo coming up because United Technologies, one of the first targets of President Trump now the company saying that it will repatriate a couple of billion dollars and see a long term benefit. The Ceo Greg Hayes will join us to talk businesses, trump and taxes and more and back to tyler in chicago handing out the fund manager of the year awards. It is a city of big shoerulders and you are the man for the job. There is a little bit of snow but not terribly cold. When we come back after this quick break, the Domestic Fund manager of the year, if you had put 10,000 into this Managers Fund a decade ago, you would have 30,000 today that is the kind of result he s enelerg. Well meet him right after this. Its absolute confidence in 30,000 precision parts. Or it isnt. Its inspected by mercedesbenz factorytrained technicians. Or it isnt. Its backed by an unlimited mileage warranty, or it isnt. For those who never settle, its either mercedesbenz certified preowned, or it isnt. The mercedesbenz certified preowned sales event. Now through february 28th. Only at your authorized mercedesbenz dealer. Welcome back it is the morning star 2017 fund manager of the year awards and were going to meet morning stars Domestic Stock Fund manager in just a minute but first, lets find out why he won. The morning star 2017 Domestic Stock Fund manager of the year is steven wiemer of fidelity growth company. The tech boosted results and video was a top contributor. It is a name he bought in 2008 meg whitm when it was a smaller company. And the fund did well with the biotech picks including bumer and anile um both were up triple digits for the year. Good job you know what i like about your fund is the kind of consistency you have been able to deliver last year top 5 , up 36 over the year the threeyear top 2 . Five year top 2 tenyear top 4 . 15year, top 2 . How do you deliver that kind of consistency. Well it starts with getting help back at the fidelity in boston and around the world. We put together this portfolio over a lot of years. And we found some good stocks and we stuck through them through tough times and figured out which one would carry the waters over the years. Your ten Biggest Holdings last year and the worst was up 33 . It a good year for the market. Good year for growth. Good year for growth. So we needed a stock well up over 20 to be in the ballpark for a good name. But we had others up more than that. Im looking at some of them apple up 48 , amazon up 55 , and think of what you could do if you invested stocks that began with the letter b. , not just the a. Invidia has been a long time holding. Your largest holding, up 86 last year. Why do you like it so much so Semiconductor Space was good place but in video it was a very good place. So they are the leader in Computer Graphics for video games and they are taking that technology and applying it to the data center in taking this acsetsell rated computing and bringing it to the automobile world and leading in autonomous driving with over 200 projects around the world. A lot of familiar growth. In your portfolio, the facebook and tesla, as i mentioned, alphabet and amazon and so forth. And adidas begins with an a. Yes and it was also a good year for biotech for you. Do you see this year being quite as favorable for growth names, or may it tilt more toward value . I think there is still some good opportunities in growth i cant speak for value. But i think in general the opportunities should broaden out quite a bit. Not only is the u. S. Economy accelerating, but the International Economy is a tail wind too along with the weaker dollar, were seeing favorable Business Results translating back into u. S. Earnings. And another thing about the job i like youve been there 20 Years Holding this fund. You cant hold a job 21 years and very low turnover your average Holding Period is about four years for a stock 25 turnover why is that an advantage in. I think it is an advantage because the stories arent an overnight success. So we live through ups and downs and when we have some downs, sometimes it is a good advantage to build the position bigger and we see the companies that have a big advantage, theyre advantages accrue to them well over time and in compound. Steve, thank you very much and congratulations. Thank you appreciate it. And when we return, well meet the International Stock fund manager of the year, she leads a team of eight managers, very interesting approach to stock picking. Well meet that person shortly folks, to you. Coming up on power lunch, beer and golf. Why are budweiser beer going soft and as we head out, check out the market it lost steam. The dow was up tripledigits and it is now down by about 88 points as s p down 12. 5. Were all over this market decline when power lunch comes back we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right financial advisor, life can be brilliant. Flexshares etfs are built around the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk