In the First Quarter, a drop from the First Quarter. Analysts were looking at increase. That really speaks to the idea that the volatility we have seen in the Fourth Quarter is not necessarily helping revenue. Reporting its first training revenue since the financial crisis. The volatility people thought would be good has turned out to be a bad volatility. Also in the citigroup report, we have a Net Interest Margin of 2. 92 . It is a little bit better than what analysts have been looking for. An improvement over the Third Quarter as well. Wells fargo at 2. 4 , slightly better than what it had been anticipated to report. Still looking at 20 year lows. It is a continued weight on the banks. Trading right now is down about 2 . Thank you. We will check back in with you later. I wanted to give our viewers a look at the top stories. Definitely at the top of the list. The central bank has rocked the Financial Market this morning. Its minimum Exchange Rate against the euro will no longer fund an artificial ceiling. Further increased negative Interest Rates on deposits. You will have to pay them more to keep a hold of your money. The record against the euro rose 15 against the dollar. Many investors see that currency as an ultimate safe haven as do many rushes looking to get out of the ruble. Meanwhile, reports showed inflation is slowing. A lot of movement in currencies and we will definitely focus on that throughout the hour. The former head of the European Central bank has advice for its successor, mario draghi. It is time for client native easing. Nextgeneration is a purchases for securities is clearly what is needed at the present moment. Whether or not it would suffice to get inflation which would be satisfactory, is another story. Policy makers are expected to adopt some sort of bond buying a gram when they meet next week. It has been a roller coaster ride for black very investors as well over the past 24 hours. Shares today fell as much as 17 in early trading after black area in and samsung denied a report that samsung wasnt tossed to by the canadian smartphone maker. The report sent shares soaring by as much as 40 yesterday. Back to the big story yesterday bank earnings. Citigroup fourth order results out moments ago, coming on the heels of bank of america. For more perspective, i want to bring in Bloomberg Intelligence senior financial analyst allison williams. Also with us is the managing director and analyst who has a market perform rating on the shares. Let me start with you. What you think of what we saw this morning . The results were not surprising after j. P. Morgan reported last quarter. Ankles america came in with a 2 drop. We are expecting the trend to continue through the reporting see season. I am not surprised. Fortunate lee, asset quality is improving across the Interest Rates. I think that is a bit of a tailwind. The Company Still posts actual losses. A very benign environment. I do not think that could last forever so i am waiting for that trend to turn. Lets talk about the problem with trading revenues. What is it . Shouldnt volatility be good for trading outfits like bank of america and j. P. Morgan . Some volatility is good. Some can be back. High volatility is good, but spikes can actually stop the activity and can also cause potential profit hits for the bank. Some analysts say maybe they got caught in a bad trade year. Is that possible . If you look at the overall results, they are not overly surprising. I think j. P. Morgan was right in line. They have all said they were looking at roughly 45 declines in early december. Bank of america was a little worse. They had a big recovery a year ago. Cities numbers, which i have not gone through yet, also coming in. I think equity numbers are really the big surprise there. They have had past issues with different hedges. Over half of their revenue comes overseas. With the strong dollar, that has got to have an impact on the translation of the revenue into the reported earnings. Right. Absolutely. I want to get back to the releasing of the reserves. Brian moynihan said earlier he thinks they have the majority of the lawsuit issues behind them. Should they be holding more reserves for bad loans Going Forward or do you think he is not right . I think he is right. I am not spec expecting any measurable things Going Forward. As far as regular, the reserves are still covering actual losses. I am not worried right now, but i know it will tailwind across the industry for the last several years and that cannot go on forever. At some point, i inc. Losses are still going down and the company will have to build reserves Going Forward after that. Its sort of plays into my market reform recommendations. Thank you so much. We really appreciate your time. It is a huge week. Definitely the top story for us this morning if you put aside what is going on in switzerland. Lets go right back to the huge move from the Swiss National bank this morning. They said they would scrap the policy that would limit how much the euro can fall against the swiss franc. Unexpected any cost gyrations in the Financial Markets. Stay up here in london with all the action. Jonathan, why do you think there would they were driven to this. Some talk about the ecbs finally getting to quantitative easing. Maybe they were worrying that would push put more pressure . Yes, that is one of the reasons why. Think of this as a dam and water is building up behind it in the last three years. You get rid of that, the floodgate opens and the money floods into the swiss franc. Two major points as to why the Swiss National bank, one is the ecb. It looks like the fed would introduce Monetary Policy next week of activities in which further weakened euro, puts more pressure on them to be able to defend that cap. The other reason is russia the safe haven flow that has made it even more difficult for the Swiss National bank to defend that here that was one of the reasons they took the negative deposit rate, even more negative this morning. Clearly, you settle with this and you hope that stems some of the flow. This morning, that is not happening. The swiss franc is surgeon swiss stocks taking an absolute beating. The surge to me says they could charge even more for holding your safe haven money. Why only 0. 7 . It could have ramifications for the Banking Sector as well. They will have to see if this shakes out and see if it is enough. The one thing i would say is it illustrates something we put our faith in. As to what they can do. This morning this is a real sign that is not the case. In the last month, the Swiss National bank said they would defend that. The president of the Swiss National bank this morning contradict that this morning. It is quite weird. They do not make sense. They just abandoned. Central bankers, they cannot solve everything. In this say in this case, they certainly capitulated. Aside from watches and pocket knives do they really export that much . Yes. There are big exports there. You see this morning, the ceo coming down and saying this is certainly not one they wanted. They do not want it and the element of surprise, nobody was prepared for this. He spent three years saying you would defend this and then you let it know. The other thing i will say, a lot of viewers heading this week, that trip got a whole lot more expensive. Two out of three you mentioned worldwatch makers. Look at the list, matt miller. I will tweet them out for you. I realized. Thank you very much. We will stay all over this story this morning. Meanwhile, back in the u. S. Republicans are holding a joint retreat in hershey pennsylvania, to lay out their strategy for next week. Peter cook is in hershey with more. Real business here on the agenda, as well as a few laughs at the joint retreat in hershey, pennsylvania. Mainly laughs so far. Not entirely because they did have jay leno here. The house and senate, the first time theyve met together for one of the streets since 2004. They got some laughs, serious work to get done, and they will also hear from the british prime minister, tony blair. To try to inspire the republicans and give them ideas for what they will do in the legislative session. The author will be here. Heart of the pana last night of columnists talking about the legislative agenda. Part of what will happen is they will try to bridge some of their own differences between more conservative members of the party and the leadership as to what they will really accomplish. They will set those priorities and talk about arcane things like reconciliation, the budget process, that could allow them to move things with only 51 votes in the senate. They will also set the expectations as to what could get done in 2015 to not only undo a president obama signed to do but also who else are they hearing from . Jay leno, who else . Hopefully someone who at least challenges them a little bit . I would not expect too much of that. Most of them are fellow conservatives. You have got a host of people coming to talk on specific topics. For example, outsiders coming to talk to them about what is going on in the Digital World distortions, how to reach to millenial. Saddest of the discussed in you have what it should be learning on ethics right now. If divisive policies for about what they could get done and how things will be different in the senate and the house of representatives. Honestly, even though they work up on capitol hill a lot of folks in the house do not understand how it works in the capital and vice versa. Place we will check back in with peter in a few moments from now. He just sat down with senator john hoeven, and office of senate please dont build fairly low talking more about that from north dakota. Coming up caesars betting on bankruptcy. Its largest operating unit has filed chapter 11. We will explain why. Radioshack may not be too far behind. The reports the struggling chain may seek bankruptcy protection as early as next month. Stay with us. The chips are down at the nations number one casino chain. It filed for bankruptcy protection, sparking a showdown with a group of creditors including david, who filed his own case earlier this week. Bloomberg intelligence bankruptcy with addition analyst. Thank you for joining us. This is a story of leon black versus david kepler. They have got one group of shareholders who basically bought the company out before the financial crisis. They have just gotten been down ever since that purchase. Refinance stuff left and right. Classes always hard to buy a Consumer Discretionary asked that. It is something from which they never recovered. To your point, i think they have had three major operating entities. Resort properties and then you have Caesars Entertainment operating company where david is. They have a lot of that debt number one and they sold a lot of assets to the properties and resort properties which left them with cash flows able to report less than half. You are in a situation where they have david and his group saying, lets try to get these back to give them a better chance of recovery. How typical is this . As i was reading these stories i thought, this happens a lot. You have different groups involved in corporations that filed for bankruptcy. Yes. This scenario happens a lot we have a company that has a number of transactions before they send this ailing faction from chris from the credit agency. Bankruptcy judges have been around and they know what is going on. Can they figure it out and play the adult in the room . Yes, certainly, the judges definitely looked at these issues that come up and want to dive in. That is exactly what the creditors want the judge to do. They want the judge to report an examiner who took all the good assets out of the operating company and left that wants to file for bankruptcy. Surely theyre just doing what they can to save their money, right . That is what private equity firms are supposed to do. The question is whether they will be successful. There are questions in terms of the nature of the transfers, when and how they happened. If you end up in a situation where they are negotiated and derailed, it starts to get very messy and you not only have the caesars enter it entertaining operating company play, but uggla the assets at risk. There are creditors there as well. As someone who loses money every time he lost in imris a casino i have got breaking news here on target. The retailer will seek canadian operations. We will give you more at the top of the next block. We will take a quick break and when we come back, we will have more on the surprise move to switzerland. Really seeing a spike. Take a look at equity futures and the dow futures turning negative. We have breaking news on target here they are seizing their canadian operations. That is right here theyre getting into their operations. Target has really struggled with its expansion into canada. The ceo left as well. In terms of the actual cost theyre looking at 600 million in expenses related to the shutdown of the canadian operation, mainly a factor next year or later. We expect the results for the earnings coming out later this month. In terms of its Fourth Quarter adjusted earnings per share, it also updated its outlook here. The company said that may not compare with the dollar . 22. This is an interesting one. Target says it sees fourthquarter u. S. Comparable sales up 3 when it has been looking at 2 . It looks for better than expected numbers in sales in the u. S. And is looking to shut down its canadian operation. Target is up 5. 8 . Investors seem to like what they hear from target. In order to hear discounts canadians would cross the border and shop at other places instead. There are stocking issues and Product Selection issues at the targets in canada. It is sometimes hard to get stuff out there. It is snowy. Getting up there into the great white, you need ice truckers. I am kidding a little bit. At the expense of canadians. I want to give you a look at some other top company news at this hour. The big shareholder is now the mexican billionaire carlos slim. An option to buy 16 million more shares of the company. 250 million six years ago and made a pretty penny on that investment already. The worth quarter earnings fell more than 3 . The worlds is money manager blackrock. Declined because of volatile markets and the collapse of Oil Prices Still profit. Blackrock beat analyst estimates. Back to the top story were following this morning, it is obviously switzerland. Stocks in the neutral company tumbled. The Swiss National bank unexpectedly exited its Exchange Rate. Joining us on the phone is a currency strategist at swiss bank. I was joking a little bit earlier about the fact they only make watches and pocket knives. Of course they have huge exporters in drugs, for example. And the banks have an account there. What do you think this will do to the swiss economy . At this point, we take a big hit. There is important damage on the real economy because nobody was expecting such action from the national bank. It is a small company, a very international economy. We have payment schedules hedges, and they all have been done accordingly. When you do similar damage sometimes, we recover and we see huge losses this morning. It is a blacktie in switzerland. How important is this for the Banking Sector and how big is this still for the Banking Sector . We traditionally swiss banks is that the case . Question is still the case and i do not think it will do significant damage on the Banking Sector. The banks will also take a serious hit on the balance sheets, most probably because of what happened. Most importantly, it will change their plans. The negative rate will get the taking sector in switzerland. We should just put together a game when to cope with this new situation, the unexpected one. Thank you for joining us, a currency strategist joining us on that developing story. We have breaking Economic Data as well. Scarlet fu is coming back to us with the numbers. We have got three big reports, it better than expected number. Manufacturing the new york state area, a read of 9. 95. Certainly, a recovery on the negative session in december. Price index measures wholesale inflation. Year on year, we are looking at a gain of one point 1 , slightly better than what economists were looking or, a gain of one cent. Fairly tame price increases on a yearoveryear basis. Jobless claims, 316,000 jobless benefit higher. It is not a great number but i need to go into it more to see if there is a seasonal factor that leads to that increase. The one we have seen very frequently in the last weeks and months. The job market seems to be one of the bright spots in the economy. In terms of the effects are futures, not much of a change right now. We are basically not changed with futures. Not much of a move here in 10 year yield either. It is amazing we see huge moves in currencies not only because of switzerland but also our interviews in india. The futures market right now, u. S. Equity futures really little changed. Everyone is very fixated on what the fed will do. Whether he will just focus on the state of the labor market very do not forget a lot of Corporate News is coming out, target, which we told you about. And all the banks reporting earnings. People are looking to fixate on a couple of earnings movers in the equities market. I will talk to someone who almost went to the fed. Jerry siegel will talk to funny other side of the break. On why he is bullish on the markets. We will ask him about the central bank move. The Bush Administration, they wanted them to join the Federal Reserve and he wil