Will be harder. Before we continue, lets bring everyone up to speed with the days agenda. You want to play t pay close attention to what is happening in detroit. The north American Auto show will open its stores. Matt miller is there talking to Industry Leaders like alan mulally and bill ford. He will be a with us in just a bit. 12 40, there will be a speech on the economic outlook. At 2 00, the treasury opens it looks on how the government did in december with Monthly Budget statements. Speaking of budgets, i have my mind on something. Bank budgets or balance sheet. The biggest banks will report earnings. Jpmorgan will kick it off tomorrow morning. Ian, perhaps this is a good place to start the conversation. Things are kind of stuck. The u. S. Economy is picking up speed. That seems to suggest that banks will have a good year in 2014. The curve is beginning to steep in. They can bore short and lend long. I feel better. There is no question. Every ceo i have spoken to says that, despite the dysfunction in washington, they will double down on the economy. I think that the budget deal, as limited as it was, is getting us through 2014 without having to worry about a Government Shutdown or debt crisis. The simple fact that washington dysfunction goes back into a traditional we have midterm elections coming up if you are an american shareholder, that has to make you reasonably happy. I look at the banks now. It is a tough environment. Hopefully that will move higher. The economy is picking up speed. Inflation is on the horizon. They should make more in terms of spread. Assuming that they keep making loads and the economy is growing. It is challenging. You are in a regulatory environment. These banks have been forced in a utility mode. Goldman sachs and Morgan Stanley the traditional investment banks, are not able to use their voice as impressively as they could before. You could make the argument that we have also heard that they are cutting their mortgage because of the offsetting. What is the demand going to be like . Yes, they have been forced into utility mode. There is no such thing as concentrating on wall street. If estimates are right, the only inc. That will report a lower profit in 2014 is goldman sachs. If you take the six biggest banks, it will be the most profitable year ever. Doesnt feel like the kind of environment the legal fees are up to 18 billion. Allocating the legal fees and bad mortgages what worries me is you graduate from college and grad school. It used to be that your brass ring job was goldman sachs. That is not true anymore. They are not getting the talent that they used to. Theyre not offering the money that they used to. They are telling junior bankers to take the weekend off. They say you only need to work two weekends, not all four weekends. I see that as saying we are not going to pay you. They are not saying that in chinese enterprises. Theyre saying that i goldman. If you are hustling to get into harvard, you are used to grind get out. They save you do not want the working grads any longer. They come in and do two years of service, then they decamped for a private equity firm. You are investing all of this money in training. I am watching breaking news. Centauri is buying jim beam for 16 billion. That is a 25 premium. It will be the worlds Third Largest spirit company. That will be coming from japan. It will help to open up the overseas expansion, even though there is not a lot of cost synergy for suntory. I think that they will be much more consistent. Really . Is that the outcome . There is no way they will that allow that level. And analyst pointed out, the reason this yield to place now is a strong yen and low interest rate. 25 premium. Ay a theres not a lot of cost synergy. Whiskey. The report on japanese whiskey. You are not a japanese whiskey drinker . I will be now. They are sitting on a lot of cash. They will feel good in 2014. They will pay higher wages. They understand that the japanese market is not where they want put all that cash. This is the key. We could see more Japanese Companies do this crossborder m a. They need to find more customers. They are not going to china. We have another company. Wendys. A huge jump in the free market. Their outlook is on the high end. I could make . 30 per share. Comcast is up 3. 5 . Wendys has been terrible. They had a hard time staying relevant and remodeling. They are investing this new blood and remodeling their stores. 25 of their stores this year. This is a positive indication. They were feeling tired. When was the last time you ate at wendys . I am looking at you. This is the issue. You are dealing with low margins. The dollar menu drives a lot of sales. You are also looking like at the trends to organic. And the trend the pressure on minimum wage. It will not pass, but it will squeeze them. Were looking at a nine percent increase for the nation. Regardless of what Congress Ends up doing. What is the Pricing Power here . When was the last time you were in wendys . Never. It has been a while. That may be why it is so dated. If you had to choose between the fast food chains, where would you eat . Chipotle. Why is that . Three quarters of my staff has one scary day. You know who is eating their everyday . Chris christie. I was watching the weekend shows and i saw a number of republicans gracing weekend programs. They were trying to defend Chris Christie. The big scandal and concern is that this bridge issue in fort lee, new jersey take a look at what they were saying. Im a great admirer of governor christie. I thought he handled himself well in that press conference. Reality is he said he did not realize. He said he did not know. I did not think it was credible. He would not make this blanket denial a must that is not true. He stood there for 111 minutes in an open dialogue with the press. Heres my question. Lets think about this. We are all business journalists. You are a businessman. Perspective,ment if you are ceo of the company and your cfo pulls shenanigans, do they do that because they feel empowered because of the leadership role that you have set . How much response ability should you be taking . Problem withis politicians. How many things have gone wrong in the Obama Administration . This is the fault of the international community. There is not an international community. He is the president. The buck stops with him. Chris christie does not want to do that. No one wants to do that. It is not democrat versus republican. Press conference went well. I was never a believer that he would get the nomination. There is no way, what he would have to go through. He does not play in the rest of the country. We do not reflect the rest of the country. Furthermore, what i found incredible is that, if i get an email from the Port Authority if i am the Port Authority, that email confuses me. I have gotten emails like that before. Theres a pattern. If i am Chris Christie i am not saying he did not hear about it. The first time he sees that, he is not stupid. He is thinking there must have been a lot of stuff like this going on. That never came up in his press conference. I am not buying it. It is sad. America, there is more sons billy placed on the ceo in terms of leadership. With the ceo be up to get away with the things that we see our politicians get away with . Yes. They get away with it all the time. Passing the buck. Yeah. Look at jpmorgan. Jamie dimon. Jeff dailey has been thrown under the bus. It is the same kind of idea. That goes back to the point youre making. You establish a culture and set the bank. The culture often is what guides people to do the things that they do. There clearly was an atmosphere within the chief Investment Office that had the london whale trading. If you read the emails, it is shocking but people said and did. Clearly, it felt normal. There was one that stood out at me from the New York Times. Frank wrote about this topic. He said that without enough you and we, politicians him up against a world that is spelled with an eye. I. That is isolation. He just kept saying me. It upset me. I am so sorry, it affected you. I am so sorry that we had a problem. I still like him. I do not know what happened. I do not understand why the New York Times continues to use them for other things. I do agree. He was a fantastic food reviewer. The point is, he actually would have written a decent review on it. At no point did we see the Chris Christie he went to fort lee and met with the mayor. Did he actually going talk to the people . That wouldve been the populist thing to do. That is not where his interest why right now. He is all about Chris Christie. A lot of folks in the media, left and right, or hoping that this would be the excitement. You watch morning joe and Chris Scarborough has this lovefest for Chris Christie. That is what this is about. One person who is not what he used to be. Hurting his chances for 2016. We have the whole gang here. Were talking about Golden Globes next. You probably saw it last night. Everybody tuned in for the return of live television. What it means for business. Enjoy it while it lasts netflix. You will not feel so good when snap chat is appear except thing best drama. Some breaking news out of aig. They are hiring. They plan to add 600 advisers over the next five years. This is part of the effort to after thee brand Insurance Company paid its bailout from 2008. They are adding more and a lease. They already sell life insurance. They are trading lower in the free market following the news. Trish, back to you. You are watching in the loop. I am trish regan with Erik Schatzker and alix steel. Target was not the only retailer hacked during the holidays. We probably all heard about that. 70 Million People affected. It turns out Neiman Marcus was another victim. There is news that there may be many more. Yes. The news broke on friday. We learned more details about what happened. About one million Customer Credit and debit cards have been compromised. Lets put that into perspective. Targets numbers are huge. Neiman marcus is numbers pale in comparison to others in recent years. You may remember what happened bytjx, people were driving and using wifi to steal numbers. Target has 70 million, as many as 110,000. 110 million. The list goes on. And, as a new englander, it is hannaford. I am canadian. When i go back to canada, they are using smart cards. We are not. Why . Dont smartcards everywhere you go . We are americans. We do not need them. Were the largest economy in the world, we do them our way. You have a good point. It is safer and more secure. You have to enter your pin. The pin to complete a transaction. My real issue with this is not that the company with hacked. That could happen to anyone. We have to learn, did they take the necessary precautions to guard against this. Not only where they hacked, they did not tell their customers. Waited until a security blogger contacted them and financial journalist contacted them. They were asking questions. Then they came out and said that this happened. Same thing with Neiman Marcus. You can go back to 2007, when they were previously hacked. They waited two whole years before telling customers. If i am a customer a target, now i have to worry about my information being stolen and the company not telling me. I dont blame them. Sales were down. They had to lower their earnings guide. With all of the hacking in china. When did we learn about that . Least the one thing you can say about target is the brand is used to being attacked. I feel like a lot of companies are reactive, rather than proactive. What is the incentive to fix it . The ceo of ronan analytics toby that preventative action cost five 5 to 10 . The burden of responsibility lies on the card issuer. Justice Department Data backed that up. 40 of people find out because they are informed by the bank. Only in seven percent of the cases today find out look at amazon and ups. Ostensibly, the blame is on ups. Amazon wants to ensure that they have a Good Relationship with their clients. They offer discounts. It does not matter where the legal claim is. If you have people feeling vulnerable wheres the Consumer Protection agency . Shouldnt we be protecting people somehow . How is it that it is the bank issuers responsibility . They cannot stop target from being hacked. But they cant tell you that you will tell your customers. I do not want to play doubles at cricket, but it appears that the company was having struggles getting their hands around the fraud to find out what happens. They found out about it in middecember. Forensic investigators determined that they had been breached. They still do not know how many people were affected. What do you say . Raise the alarm bells by making a Public Disclosure that we have been hacked, but we have no idea i wouldve wanted to know. You want a nanny state. I actually closed my bank account. Part of it is because i shopped at target. I would like to have thought it didnt exist. You took a precautionary measure . My husband and i were going to combine things anyway. This was an impetus to do it. It is terrifying. I am using cash next time i go. We should go back to a cash economy. Bitcoin. Waiting for someone to say that. When we come back, talking about fancy cars. The Detroit Auto Show may make you want to drive. In exclusive when we come back. You are watching in the loop. I am erik with trish regan and alix steel. Our guest host is ian bremmer. It is 26 minutes after the hour. That means we are on the markets. For a look at futures, were looking at a down open. The s p 500 future is down. The dow is up by 19. Traders will not be making a big jump. Companies earnings probably climbed 4. 5 on average. Investors are probably waiting to see how things shake out. A couple of stocks that we are watching, suntory and jim beam. Suntory will buy them for 16 billion. You see that they are unchanged. Cristina alesci is with us with the latest. The worlds thirdlargest spirits company. What are the details . This signifies that we are entering into an m a a market with more of a risk appetite. This is a japanese giant. People do not have realized cash do not realize do not realize how big they are. You cannot go a day without running into a suntory product. That is how big they are. Cost are not many synergies, but they are hoping to bring the popular brands in the u. S. To the emerging asian market. People are beginning to experiment with spirits. Maybe we have run out of steam in the u. S. They can get some growth in the asia market. It is not about bringing their products here, but bringing u. S. Project elsewhere. That is exactly what it is. We may see them jump into the u. S. Market with products that were popular in japan. Japanese whiskey is very serious. I do not know if you have had it come up that it is delicious. Not just the beverage, but the whole culture around whiskey drinking in japan there is something about japanese confidence that is wrapped up in this deal. Yes. Where has it been for the past 20 years . A comes from the fact that the yen is so strong. That is what makes this deal work. The currency fluctuation risk is not there. It has always been a risky deal from a crossborder standpoint. They feel good because of the yen. Year,least for the next the bank of japan is one of the least independent. It will keepuns money pumping money. Theyre saying this is a time to look out. Thatat is interesting is Japanese Companies historically do not like to take on extreme amounts of debt. They are actually taking advantage of the fact that you have low Interest Rates to do these deals. That is what it is playing into this deal as well. I loved lost in translation. Lets turn to the Detroit Auto Show. Matt miller is in the motor city. Great interviews with the biggest players. That includes a bill ford. He focused on how the future is all about tech. It is all about technology. We have all talked about automatic driving. The pieces that will make vehicle to vehicle communication and vehicle to infrastructure communication were working on all that. I was an exclusive interview with 04. Matt miller is joining us from the Detroit Auto Show. Matt . Yes. I am with mark ruiz, global head of product. Two days left until your promotion. I saw you introducing this new truck, the gmc canyon. It looks awesome. Thank you. One of the coolest things about your products is that you will offer mobile hotspots. As we drive around, we do not have telephone signal and we can use the hotspot from the car. That is pretty cool. We have been in the business of onstar for 17 years. To put the size of its hype into the cart to enable people to do things like what you said, which is create a mobile hotspot and use your technology, it is a great thing. It is a great thing for everybody in the car. From Voice Recognition and being able to voice commands and use we cloud and use onstar, really take care of our customers in terms of bag deployment and safety. Simple things like my kids having flat tires. That type of 4g is a huge enabler for us. I have been in onstar user for a long time. They give major actions. Lets talk about the truck. You are the First American company to go back into this midsize truck segment. It is owned by toyota. What do you think . Why make that decision when people can buy a sierra or so over auto . Why would they take the smaller truck . We are about 200 pounds lighter than in 150. If you look at where we are today, what happens on the future, we do not want to offer a tear to truck. That is w