Trish making the comment we are off the highs on the s p 500. Not much off the highs. Problem, still waiting on a deal out of washington. Why it is upstand 1200. It is the last price on gold. Also, a bit in crude oil. That is a sixweek high. Onto the big three. Julie hyman keeping an eye on them for us. The first of these is an etf. A spider etf. I wanted to check it because the volcker rule is being approved. Expected tors approve it by the end of the day. Talking with chris whalen about what it means for the bank. I have been preparing for this day for quite some time. Gilead sciences one of the worst performers in the s p 500. Hepatitis c drug they are preparing to come to the market. An executive says it is going to spark a drug war among hepatitis c drug makers. Finally, starbucks down after an analyst said that samestore sales may be slowing in the u. S. To around six percent from around eight percent the prior order. In. Rra is ackerson is out. She has been groomed for this role, having spent over 30 years at the automaker. Recently ahead of product development. I have worked for General Motors for 33 years. I work with a ton of wonderful people. I always have been evaluated on what i contributed and what results i was able to obtain. We come together as a team. , oring a car, truck crossover on the road is a team sport. I view myself as part of a team. Since yesterday, the treasury announced the full exit from gm, giving her a clean slate. She takes the position on january 15. To talk about the road ahead, we are joined by the deputy editor. Jessica caldwell, chief analyst, and resident auto expert, matt miller. Pretty significant in that they chose a woman tom and also someone who has been at the company for the whole career. Said shey people have. S in, ackerson out he has been grooming her for this position. He has been a pretty clear favorite of his. He said just a couple of months ago that any car guys are running any of the big three but someday soon a car gals may run one of them. He was alluding to it. She has an absolutely pristine resume for someone who will run an automaker. That could either be a super engineer or super in finance. She is an electrical engineer by background and then did her mba at stanford. She was running manufacturing and then made her briefly the head of hr. In charge of production. Is there a danger in having someone who benefits from this their whole career that has not seen the outside world . It is possible. I think she is the best choice for the role. The last two executives they had were communications executives. To bring someone in from the inside, i think that is a great move. She knows how to streamline the product. Her calling card. Right. Trying to reduce overhead to get the Profit Margins up. To 2. 6 tm off rate tropic margin. Profit margin. E volkswagen five percent. Hyundai almost eight percent. She needs to get them. Legacymuch is this Health Care Costs as opposed to just operating the business . A lot of it is the business platforms mainly. They want to reduce the platforms. Under 10 by 2020. That form sharing is a bit way to get rid of the overhead cost. Onthey build costs cars over 30 platforms. Not nearly as many different models of volkswagen uses only 15. What about the International Expansion efforts . How important will that be for her . I think that will be a huge focus. Such a big brand in china. Always a big focus for General Motors. Then dealing with do we keep you wake in the United States . 7 some people say there are too many brands. Dealing with the global picture and how this will work in different areas will be a challenge that she will have to address. In some months gm sells more cars in china banned the u. S. Than the u. S. It was a argue surprise there was not someone with more of an International Background . Married in charge of global product development. She sees what is going on. She has her hand and pretty much everything going on around the globe. I think there is not too much risk there. You make a good point. Pointne keller made the that she was surprised. Along with jessica. She thought it was going to be steve gursky. A lot of people expected mark reuss. I did expect him kind of. It was between royce and mary. Woman . He said a he did, but some people do not believe him. He also said it was like seeing his daughter promoted to the role. He just got promoted to marys job. She is moving up. Keeping the main team in tact i think is a great way to keep going. Tim higgins who broke the and has a lot of sources on the board said that mark is very happy with this job. He is a hands on guy. He likes to drive cars around the track. He wants to work on the engine, figuring out the differential. This is the perfect spot for him. I know he likes mary a lot. They Work Together closely. Not a lot of women have the engineering background yet. More and more are getting it. Mary is still a super car gals. Lets be honest, i think that the Automotive Industry and cars in general, that his male dominated. Boys are given hot wheels as children. Our is ingrained in culture. Things are changing around. I think it is good we are focusing on her credentials summit because i do feel that is why she got the job. I think if she was not a female, we would not be talking about this as much. As time evolves and see females are in the role, it will be different story. Gm is such a huge company and so closely scrutinized. I am glad to point that out. Hopefully 10 years we will not care if it is a man or woman. Were not quite there yet. Question, as we focus on her role of ceo, what is think single most important thing she needs to do right now . What we talked about. Continue to produce good cars that are profitable. That is something everyone will be watching. She still has a long way to go on that. To your point about being a woman, women ive more than half of all new cars. Be said something to for having a woman in that seat. Perhaps she will be more all three of us have heard the story about Mindy Grossman sitting at the board room. They were like what do women think of this product . The only woman among 30 or 40 people. Women,d to have more especially if youre going to be something to more women. If 55 of the people by a cars, someone who is a woman should be representing. Good stuff. Thank you. Inc. You to the rest of the team. Be sure to check out bloomberg tv. Yzlett coming up tonight csuite. Only company with the shakeup. Just named a new guy, and it is this guy. Womens frankly, some bodies do not work for it. Rather they are saying goodbye to that guy in his role as chairman. Chip wilson has left the building. We will talk about that. Plus,tis the season to be jolly. There is one investment that even warms the grinchs heart. Adam will tell you about that next. We got an early Christmas Present from our friends in europe. Time for insight and action. It is that time of year. Europes by signal. Signal. Percentageu get the of stocks to drop below 20 tom you tend to have snap back rally. That is what we are showing. The percent of stocks above the 200 Day Moving Average for the euro stoxx 600 index. There it is, about 20 right now. I will overlay the index atop the same chart so you can see how the signals line up. There have been five of them. Under 20. Look what happens. Look what happens when you got another, another. There have been five of these times. When stocks. Oversold in europe, you had a snapback rally. The sheer. Days left the question becomes, how much you think we could make in the next 21 days . Average is very real returns. You know you are getting 20 of every dollar you make. You look for the trades that were. You get a lot of guys trying to play the averages. A very good track record. It has worked five times consistently. Europe am a stocks getting oversold. In theory, 7. 5 . Lex very nice. Says they are cheaper than equities at home. The head of u. S. Equity over at barclays. Over that before that, got his start at lehman brothers. Said we will end out the year at 1800. Welcome back. Well, the firm call is the. S. Will outperform the earnings story is not turning around as quickly in europe as it has been in the u. S. We had great thirdquarter earnings result in europe has not. Europe is cheap but generally trades cheap to the u. S. There is also the question about when the fed will start normalizing policy. How does the rest of the world trade relative to the u. S. . Suspect were you to get euro going down more than the u. S. , you should buy on that. We were talking about this earlier. Is it really out of the woods . Intermediaten cycle. Then there is the longerterm questions about relative labor costs, government debt, those sorts of questions. Investors looked at the 2020 outlook on 2015 relative to europe and said i like the u. S. From a cyclical perspective, the next year should be better. Relative Monetary Policy should be favorable as well. They should be starting the tightening process not so much in europe. Intermediary calling. And maybe a shortterm one if history repeats. Coming up, uruguays pot restrictions up in smoke. The effects of legalizing marijuana. From green to brown. We will go inside ups. The man behind the global shipments. An exclusive interview with the ceo, scott davis right here. We will be right back. Any minute now uruguay expected to be the first country to legalize marijuana on a national level. Is going on here . Pretty remarkable. This is the first country in the world to legalize the sale, distribution and consumption of marijuana for recreational purposes. Basically registered users will be able to buy 40 grams of marijuana per month from a limited number of pharmacies. They will be looking at a situation where registered growers can grow up to six plants. You will not be able to sell any of them marijuana to anyone under the age of 18. You will not be able to sell to foreigners. Governmentove by the the industry. Late they know it is an unregulated crime. They said maybe we can get a better handle on it if we have a role in the regulation of it. A pretty progressive guy overall. He has done a number of things. Legalized gay marriage. This step legalizing marijuana, pretty revolutionary. All of this happening in the capital country. How is what he is doing different from portugal on the netherlands, even in colorado where they are still figuring it out . You have the decriminalization of all drugs. That happened roughly 11 years ago. In other words, if you have the stuff, if you are in possession, it is not breaking law. If you deal it, that is. Correct. You can be caught with care when on the streets. For may recommend a program you to get treatment. They used to spend on incarceration now goes to treatment programs. Is young have found people are less likely to use abusive substantive steps substances. Back here at home, washington and colorado now have legalized their water for recreational purposes. You will be able to buy marijuana in colorado without any kind of medical certification. Very interesting. Is ae are looking at this huge opportunity. I will share with you and at certain urman interview with the pot entrepreneur. Interviewepreneur with the pot entrepreneur. Our ultimate go is diego be synonymous with premium cannabis worldwide. I am planning to go to uruguay to meet with the president where they are opening up legalization in their country. One of our partners is working on establishing relationships in the czech republic. A sickly whatever markets where we are welcomed. We can establish the Gold Standard model. That is his idea. Corporaterosoft strategy executive. Interesting. Coming up, heading to ups. Its got will join us with carol massar. Scott davis. All day today going inside ups. The biggest busiest season of the year. Nowhere is that more evident that at the massive world have. They go to more than 200 countries. Check this out. There is one man behind the millions of packages, scott davis. Carol massar standing by with him at the companies have in louisville. Thank you so much. I am here with scott davis, chairman and ceo of ups. Great to have you with us. Place over they next few weeks. It is loud and busy. With kurt earlier about this tease. You are definitely seeing volume and activity pick up this year. Peak season is three different peaks. We have the first one. Next week will be the second peak that ok rewrite through business. The biggest they will be monday 34 million hiccups and packages. After christmas is just about as big. With a lot of strength after christmas. Only one third of the way through the peak. Fed. U were on the atlanta i am curious what you see in terms of business activity. What it tells you about the economy. And what it could mean for Monetary Policy going forward. The think we came out of 2009 recession with good Monetary Policy. I applaud what chairman bernanke did through the process. A lot of stimulus out there right now. The economy is getting better, but still a slow pace. Running 2. 5 . All of us would like to see a two percentfour percent economy. Really, it is like teaching a child to ride a bicycle, how long do you hold them before you let them go . They may crash or do you hold themselves to hold them to long . I think they are doing a good job. I think the outlook for next year is a little bit better. Still risks out there. One risk is washington. We have another deadline, december 13 coming up. Can it be fixed . I am hopeful very disappointing the past couple of years. I think the budget discussions going on right now are encouraging. I do think they will come up with an agreement and not wait until the last minute. It is better than nothing. It does not take on the serious mediumterm debt in best issues. We talked earlier today, not much compromise and washington. We need compromise and bipartisan solutions. I am hoping we will see something come out this week of congress. Trade is something near and dear to you. Is this the first step forward in terms of helping out Small Businesses . What they did last week was a very good first step. 159 countries agreed on trade facilitation. Making trade easier around the world. Faster, simpler, and more transparent. Att is critical when i look the u. S. And Small Businesses that do not export. 95 of the consumers are outside of the u. S. And we have to make trade easier. This is a big first step. This has been a topic since. Ust bezos talked about drones there is so much out there. Misinformation about what ups is doing. Is ups actively seeking drones for delivery . I think we will Pay Attention to the Drone Technology. I think the tech allergy is not that far away. I think regulation is years and years away. I think for the faa to regulate Drone Technology is an extraordinary challenge. I think this is further out in the future than we would like. I would say more like 10 years. Years, like to say five but knowing the way the regulatory process works, it is very complex. If you are going to do it in populated areas, i think it will be a challenge that will take time. Will be other technologies that are a game changer. Three deep renting is something not that are away. Most hearing aids are ready are being made with 3d printing machines. Companies like General Electric are making jet engine parts with 3d printing. That will affect our business in the next five years. Probably bringing manufacturing closer to home. 3d impact will have impact on your business. Three b is a little bit closer. Is a little bit closer. Our job is to look out but also be realistic for when it will be applied. You guys have built bigtime into. You are the supply chain for merck, for example. We are excited about health care. 13, 14 years we have been involved in health care. You have ramped up investments in recent times. The reality is they need to spend efforts and time on research and development and turn the supply chain over to you ups. We have wonderful technology. That goesetwork absolutely everywhere and experts of compliance. Parts of thetical industry. It is a fastgrowing industry with democrat vix what they are. In terms of health care, a bigger and bigger parts of the business. A lot of work you guys are doing. We do lots of things in health care. Areave pharmacies that dispensing insulin pumps to get to diabetic diabetics the next day. It is a big area. Home health care will be a big area in the future. Much. Nk you so scott davis. Thank you. Chairman and ceo of ups. Coming up, we are talking about the major ruling that could yank 30 of Goldman Sachs revenue right off the books. Vokerocal role lker rule next. The day wall street has been dreading has finally come. Three years in the making but Government Agencies have unanimouslys open. Will limit the ability to invest in hedge funds. Financial Market Association president ken benson joins us with more on this. Welcome to the show. Are we going to now look at a very different kind of banking industry. We really do not know yet. Theave a 900 page document regulators have put out thats what at least one thing we know is very complex. We will have to go closely to see what the new requirements are that this will replace. Are very concerned about, have always been concerned about is a rule that when unnecessarily restrict the ability for firms to make circuits and hedge the risk and what the effect would be for places like ups. You bring up a very good point. Ive wanted to the airlines as an example. You want to be able to fuel hedge the fuel cost. How will this affect the airline ability to do something as simple as hedge out what the fuel cost may be . Not clear yet. We know from the original postal proposal that it could negatively affect the ability of airlines to use the banks that were subject. What they have to then go to a hedge fund or more private institution . Question wea real raised. Potentially taking a lot of liquidity out of the market. When you think about 19 of 17 of the 21 primary dealers were covered by the rule, a tremendous amount of the quiddity could be taken out of the market. We have been concerned about. That is what we will see within the rule. This is unchartered territory. That if made very clear you are serving customer business, you can still go ahead and do it. Some firms may be concerned about the other side of the business. Are you concerned abou