Average. Nasdaq was weak for most of the session. We saw air coming out of the big momentum names. Nasdaq composite down 17 points today. S p was up just about one point, flat after giving up much of an earlier rally similar to the Dow Jones Industrial average. Despite todays uptick, the dow has wiped out more than 800 points since hitting a reported high three weeks ago. Lets check in with bob pisani. Why the optimism today, bob. If you take a look at the s p, it wasnt on the fed minutes. I think most traders feel it was an oversold bounce with two pretty rough days. Janet yellen may have helped on the margins. Lets take a look at sectors moving. Hewlettpackard, they gave commentary, better than expected. On the guidance. Meg whitman said theres a lot of work to be done but confident in the progress weve made. Those comments came out just before noon. We saw these names frequently traded, beta names. Biotechs have had a rough couple days. Some big names to the downside again. China net stocks, other groups high momentum stocks had a tough day. Most were down. A couple turned around in the middle of the day. Thats a very good sign for that group. A couple of positive points here. Put call ratio very high throughout the day. 1. 5 at one point, and ended 1. 3. The vix curve in backwardation, thats a sign generally that the markets are nearing some kind of bottom. Often weve seen rallies when you get this kind of backwardation. Thank you so much. The big story from the last hour coming from fidelity, taking real steps ahead of the debt ceiling fiasco. Steve liesman with the latest. What we know is fidelity is has instructed its money Fund Managers to basically dump any debt that matures while the debt ceiling breaches a possibility. What we do know, i just got off the phone with luke crandall, 61 billion of coupons mature october 31st and 16 billion november 15th for a total of 125 billion. This is the debt, tenyear debt, could be sevenyear debt, 30day debt, but anything maturing in that period would be candidates for what fidelity would come out. What they dont want to do, maria, obviously is get caught without a payment or debt that doesnt roll because these are money funds that have to maintain a 1 stable share value. I think, maria, if i could, the most important thing coming up in the next hour is youre asking that question of bill gross, if hes going to hang onto his debt around that mature time period, or is he also getting out of the way of this potential debt ceiling breach . Thank you very much. We want to get that reaction from someone with a big stake in u. S. Bonds. Pimco founder, bill gross, joining me right now. You see the news with fidelity. Are you doing this as well . Were doing just the opposite, maria, probably buying what fidelity is selling. I appreciate the problem they have with their Money Market Funds. And steve put it well just a few seconds ago. If, for instance, theres a technical default of a day or even a certain number of hours, then a Money Market Fund possibly has to mark down that debt to zero and it breaks the buck. You know, so a Money Market Fund, fidelity Money Market Fund might want to avoid that situation. Pimco doesnt have that particular problem. You know, our values, our asset values go up and down every day. Breaking the buck hopefully on the upside as opposed to the downside is our situation. So, when we see a treasury bill, you know, of a 30day nature or 15day nature, and a yield of 35 or 45 basis points instead of 3 basis points, which is where it was a few days ago, we become a buyer, certainly not a seller. What about the rollover debt, something i asked mo brooks earlier in the show, the fact that every thursday the country is rolling over approximately 100 billion in u. S. Bills. I mean, if we start seeing investors say, look, i want to be paid now, im not going to roll it over, this can be real chaos. Well, it could be. Like i suggested, its probably a Money Market Fund, you know, type of a problem. You know, the rollover and the debt ceiling actually provides for the ability to roll over existing debt. When you look at the situation from the standpoint of a potential default on the part of the treasury, you know, they have enough revenues to pay interest, so to speak, for, you know, eight times what their revenues actually permit. They have revenues per month of 300 billion. They have interest of only 40 billion. You know, the question really becomes one of prioritization. And the administration is speaking to this. Can they prioritize debts and debt payments like Social Security versus interest. We think they can. You know, to a certain extent, we think the administration is putting what we think a big foot type of argument. Investors and republicans should be afraid, you know, that they cant prioritize debt payments. We think they can. So, you know, aside from the money market problem, we think its no problem whatsoever. Okay. Let me ask you this, you said get used to rates this low or low rates for decades. Does that mean youre not expecting any tapering the rest of the year and beyond . I think so. You know, especially with the you know, the appointment and, you know, suggested confirmation of janet yellen. You know, from her prior speeches, for instance, march 4th of this particular year. You know, it suggests shes dovish with, you know, a capital d. Shes a proponent of quantitative easing and its effectiveness. Shes an actual advocate of 2 inflation and maybe more. And shes rather dismisses ive of jeremy steins view that speculation in Financial Markets is a risk. I suspect she holds a similar view today and the dovishness she has, you know, extends out into what you suggest is a more gradual taper and extended period of time for stable fed funds rated of 25 basis point for perhaps two to three years. Ultimately, yes, it favors front end positions for bonds and stabilizes bond marks. Were not so sure about the 30year bond but we like fiveyear treasuries as opposed to 10s and 30s. Its interesting youre hearing this fidelity story and not putting much credence into it. Not a big event, bill . Well, i do put credence in it for them. I dont blame them. If there was a technical default, their Money Market Funds would be at risk. For a pimco and a blackrock and fidelity in terms of their bond funds outside of money market space, you know, it really is no problem whatsoever. And a buyer in treasury space for the next 30 days would be advantaged. Pimcos been advantaged for 35 basis points as opposed to what existed prior to that for three basis points. Is it a lot of money . No. But its what an active manager should be doing and thats what weve been doing for the last few days. Fidelity sells, pimco buys. Lets ask you about the impact of all of this going on, whether it be the janet yellen nomination, what impact does that have on the markets . You touched on that a bit. More importantly, this debt ceiling debate. Lets say this debt ceiling shutdown, Government Shutdown, goes into next week, we see more panic in the market, would you be a buyer of stocks . I think stocks and bonds, risk assets, anything other than basically a treasury bill, which i suggested were buying, is at risk in terms of this you know, this growing lack of confidence in washington and the ability of republicans and democrats to come together with some type of resolution Going Forward. Is it affecting the possibility of default . We dont think so. We dont think that the treasurys going to default. We put the odds at a million to one. Is it affecting treasury prices . Is it affecting stock prices . Certainly. Because markets basically look at the fiasco in washington and recognize that if they cant come to some resolution in terms of a budget, in terms of a debt ceili ceiling, in terms of investment in this country Going Forward within the next 5, 10, 15 years, yes, we might have a problem in markets as well because markets are connected to the ability of an economy to grow. But, bill, i mean already were seeing an impact, just the uncertainty impact from the Government Shutdown. Thats likely going to impact gdp. So, you know, youre not expecting tapering. Tell me how to invest in the face of all of this going into year end. I think very carefully. Again, for a bond investor, i think what you want to do is bank on janet yellen for the next few years to basically transition from a taper to forward guidance, which basically means that policy rates, you know, stay put for the next several years. And that advantage in investments in three, four, five, sixyear treasuries as opposed to tens and 30s, risk markets, stock markets. Id be pretty cautious here because the stock market started a month ago at a relatively high level, a peak level. And to the extent the Economic Growth is affected by this problem in washington, and you said it is being effected, we would agree, perhaps by 0. 1 a week in terms of real gdp. So, if it continues for the next month, real gdp will probably be cut by half and corporate profits will be cut as well. Equity investors have a reason to be discouraged in terms of whats going on in washington. All owners of risk assets do. You know, we would be cautious when it comes to the bond market by the front end as opposed to the back end, which means buying short maturities as opposed to long maturities. You know, mo brooks saying its no big deal, the october 17th deadline. Youre sort of calm saying the fidelity move doesnt necessarily indicate the markets. Definitely a lot more calm than we would expect given the drama playing out in washington. Bill, good to have you on the program. Thank you, maria. Well see you soon. We appreciate your time tonight. Bill gross joining us. Much more headed your way in this special edition of the closing bell, coming to you live from Societe GeneralesTrading Floor in new york. Two years ago when i spoke with socgen ceo, we were suffering from the d. C. Dysfunction, and europe had its own mrobz to contend with Societe Generale was in the crosshairs. Were watching your stock fall. Dont you need to respond even further to this speculation in the market . Whats your next move . The perception is really false. Again, we have Just Announced that our willingness to adjust the Business Model. And now his bank is stronger than ever. But how could this mess were in now impact things . Well talk with scocgen ceo Frederic Oudea coming up. Bring back the gephardt rule. What is it . If we still had it, the debt ceiling wouldnt be an issue. Dick gephardt on what lawmakers need to do to get out of this mess. Thats coming up. And nike ceo will speak to me for his plan to take the sports giant to new heights. What it means to be a new dow 30 component at nike. At farmers we make you smarter about insurance, because what you dont know can hurt you. What if you didnt know that its smart to replace washingmachine hoses every five years . What if you didnt know that you might need extra coverage for more expensive items . And what if you didnt know that teen drivers are four times more likely to get into an accident . sup the more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum welcome back. Market closed way off the highs today. Lets get a market flash in extended hours on ruby tuesday. Maria, lets take a look at the stock. First of all, its down 13 after ruby tuesday reported a loss wider than expected and sales that fell short. They said Comparable Store sales in this quarter decreased 11. 4 with Franchise Stores dropping 8. 4 . Again, Comparable Store sales down. They also forecast Current QuarterComparable Store sales that will be down in the high single digits. So, that stock, maria, taking a real hit in the aftermarket. Back over to you. Thank you so much, dom. We want to look at nike shares right now on the session. Up today. The athletic footwear and apparel giant holding its First Investor day since becoming a component of the Dow Jones Industrial average. Jane wells is live at the event. Were joined by nike parker. Jane, kick us off. Hi. Nike announcing it expects revenues to grow to 36 billion from 25 billion last fiscal year to 36 billion by fiscal year, youre going after women, want to work on your dotcom sales. This is your new fly net shoes. This is all of one piece. How much are you saving in costs and labor . This is called the fly knit free and its a real gamechanger. A whole new way to manufacture product, a whole new way to design product. Incredibly comfortable. A new sort of visually iconic look. Its combining fly knit, the new technology in the upper, which is all done by computer and machinery, designed by humans. And then we have the free flat form on the bottom. How much does that cut down on waste and labor . It eliminates about 80 to 90 of waste. Its 160. When will that scale to a point people are willing to buy it and its meaningful to revenues . A lot of hype about it. A lot of hype. Actually, its thats happening as we speak. The scaling is going on at a very high level. We started out in running, like many of the innovations that nike started out in the running category. But were expanding the whole fly knit technology to other categories as well. Are you feeling competition . Under armour has huge ambition. My son wears nike shoes but under armour apparel. We thrive on competition. Thats what were all about. Were a sports company. We deal with athletes, the best in the world. We actually compete with ourselves in a sense. Were looking at our potential and what we can be. Not just how much better we might be than the competitors. Thats really the zone were in. As a leader, thats where we should be. Lets talk about the performance. I have investors watching the stock. Its had a great year. At the investor meeting you talked about 30 billion in revenue by fiscal 15. How do you get there . Well, we have a very diverse portfolio for nike inc. The geographies, developing nations around the world, you look at product types, both footwear and apparel where were somewhat undeveloped. You look at the categories. We have a category offense, the different sport categories that represent huge growth opportunities. Running has always led the charge there. We see football from a global standpoint. Womens is a massive Growth Opportunity for us. And then we have new Technology Like free and fly knit. Nike air continues to be a great platform for us. So on and so forth. Were really focused on Disruptive Technologies that can take the market to new technologies and expand our market. What can you tell us about the consumer today. You know, were all talking about whats going on in washington and the dysfunction. Are you seeing that impact the consumer . How would you characterize the consumer today going into this very important end of year shopping season . Well, the consumer as you know has more choice and access to choice today more than ever before. We to want be there from our wholesale business, online business, which were very bullish about, and of course our own stores. All of those in combination, along with our retail partners, large and small around the world, really creates an opportunity for us to transform and grow the marketplace. Consumer confidence today, i think, is starting to come back. And were seeing that actually affect our business in a positive way. We expect that to continue. So, you are expecting a good showing from the Holiday Season . Whats your xpgs expectations for holiday shopping, then . Were actually expecting a very solid Holiday Season. Were very bullish on whats coming, not only just for the Holiday Season, but whats coming for the full fiscal year. One of the things ive talked about is the innovation pipeline that we have. Its never been as full and robust as it is today. Is it really the Government Shutdown . Were 3,000 miles away. Is it just not a story here for nike yet . Its not really affecting will it be a story . I think its going to have to be a long, protracted shutdown for us to have a really any sort of Significant Impact on our business. Mark parker, thank you so much for joining us. I really appreciate it. Absolutely. Thank you. Great to talk with you. Thank you, jane. Appreciate that. Well take a short break. Ten then the debt ceiling battle in washington looms large over wall street and the rest of the country. Up next, former Democratic Congressional leader Dick Gephardt will weigh in on the gridlock. How lawmakers may be able to reach a deal. In a world thats changing faster than ever, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. So i can reach ally bank 24 7, but there ar24 7. Branches . Im sorry, im just really reluctant to try new things. Really . Whats wrong with trying new things . Look mommys new vacuum cat screech you feel that in your muscles . I do. Drink water. Its a long story. Well, not having branches lets us give you great rates and service. Id like that. A new way to bank. A better way to save. Ally bank. Your money needs an ally. 20 years with the company. Hool. Thousands of presentations. And one hard earned partnership. It took a lot of work to get this far. So now im supposed to take a back seat when it comes to my investments . Theres zero chance of that happening. Avo when you work with a schwab financial consultant, youll get the guidance you need with the control you want. Talk to us today. Welcome back. Want to send it to dominic chu. Citric systems down 11 , 12 currently in the aftermarket after the Company Issued a Third Quarter outlook that fell short of analyst estimates. Third quarter earnings per share will come in at 68, 69 cents per share, falling short of average analyst estimate of 73 cents. Third Quarter Sales outlook will fall short as well. The Company Offered that forecast below its previous forecast. So, again, can you see those shares taking a big hit. Citrix systems taking a big hit in the after market. Some Movement Today on the debt ceiling and Government Shutdown mess with a key meeting scheduled tomorrow between the president and senior gop leaders. Lets check in with eamon javers for the latest. What can we expect . Today so far weve had a couple of encourage developments and then not so encouraging development. Let me start with the good news. So far today weve seen one meeting, at least, of democrats and republicans on capitol hill. All four congressional house leaders met today. We dont know exactly what they said. The mere fact theyre sitting down in the same room at the same time is seen by many in washington as an encouraging sign. Also, they were able to find bipartisan agreement on the issue of military death benefits. Its a sad subject for many families of american troops killed in action but those death benefits go to cover funerals, transportation to dover and other places where those bodies are being returned to the united states. The house voted overwhelmingly in a bipartisan way today to reinstate those death benefits. Theyll work with the Maryland Foundation called fisher house, to make that happen. So, democrats and republicans able to come together at least on that. Now, where theyre failing to come together is this question of who exactly is coming here to the white house tomorrow. The president has invited the entire Republican House conference, but the speaker of the house says, no, hes not going to send all the republicans. Only a delegation of 18. Jay carney says the president is disappointed. He wants to meet with all the republicans, not just a delegation, but as of now thats whos coming to this meeting tomorrow, maria. Why do you think he wants them all, eamon . Its an interesting question. Some speculated one thing the president could do if he had all republicans in the room at the same time, ask for a show of hand and ask how many of them support a clean cr. That number who might raise their hands could be an embarrassingly large number. Other embarrassing situations could develop like a large majority of republicans could say, theyre not coming to the white house. The speaker might want to prevent that from happening and not have any diplomacy occur fluffles before the debt ceiling. Thank you very much. With washington at a standsill, wouldnt it be great if the debt ceiling could be raised without a vote . Back in 1979 there was something called the again hard rule, eliminating debt ceiling votes and deemed the debt ceiling would be raised. It was abolished by Newt Gingrich in 1985. Joining me now is Dick Gephardt, ceo of the Gephardt Group for government affairs. Dick gephardt, great to have you back on the program. Thanks for joining us. Good to be with you. Lets talk about solutions here. What do you think . Should we go back to the gephardt rule . How do you see this mess playing out . Well, maria, you can never go back. Youve got to go forward. I dont think thats anything thats going to happen. Actually, the fact that the republicans have been invited to the white house, i think, is a great step. At the end of the day, you know, youve got to talk to all the members. I got involved with the debt limit back in 1979. I was a new member. Tip oneill said, you look like an energetic young guy. We need somebody to carry out the trash. Thats how he saw the debt limit. And so i had to go out and get the votes. All the members knew they had to vote for it, but they didnt want to vote for it because they knew it could be an unpopular vote. So, you just got to talk to people. And reason with people. Negotiate with people. You know, in the world were in, the internet and Information Technology has disrupted everything, so people just have to meet and talk and understand one another better. How come theyre not doing that, dick . I mean, should the president be trying to negotiate here . He said, i will not negotiate. Well, both sides are kind of painted into a tough position. The republicans are saying, we got to have leverage, so weve got to get something in a negotiation if were going to do anything on the debt ceiling or opening the government. The president s saying, you got a gun to my head. Youre extorting me and im not going to do that. Ill negotiate after you pass a clean bill on both. Somewhere theyve got to get through this. Theyve got to get issues have to be dealt with. Im optimistic that sooner or later theyll figure out how to do that. Maybe tomorrow will be a start. Maybe it will be a week from now. But theyve got to get people in a room and talk to one another and begin to put the pieces together that will get this done. But, dick, i mean, lets face it. Look at the last five years we havent had a budget, right . They have been unable to come together and pass a budget. I mean, is this basically the ramifications of that failure . Well, one of the things youve got to remember is that politics is always messy. Democracy is always frustrating and too slow. We made a decision 230 years ago that we wanted 535 people in the room to make these decisions, not one. And that was a fateful decision. It was the right decision because on every issue, there are winners and losers. If you go through this torture process, the losers dont want to pick up the rifle or leave the country. Thats an enormous achievement we should be proud of. Its harder. Things are polarized. Things move in ebb and flow. The people will correct this ultimately because theyll begin sending people to washington that are more bipartisan, that are willing to negotiate, that dont take these strong, strong positions. I know youre hearing from many people on both sides of the aisle as well as talking to business people. Tell me what you think this is doing to the economy, to businesses. I mean, a lot of ceos come on the show and theyre basically in standstill mode. What are you hearing in terms of the implications of this shut joun, the implications going into the october 17th deadline . I think both actions, the shutting down of the federal government and ultimately the breaching of the debt ceiling, i think, is, you know, just incrementally going to cause problems. Its already causing some problems. Thats obvious. And it will just ratchet up as time goes on. And it could go on for two, three, four more weeks. You know, washington responds to pressure. Politicians are very sensitive to the people at home. And when their polls start going south, people will start to move. I take you back to the t. A. R. P. Funding in 2008. You know, congress turned it down. And then they went home. The market went down, as youll remember, over 700 points, i think, in one day. They came straight back to town, even though it was like two weeks before an election, and they passed the t. A. R. P. Funding. Right. And so youve got to have some moving events that really get people going. And sitting in rooms and working together and finding the answers that they can find. So, what are you expecting out of this meeting tomorrow . Should we be hopeful, given weve got several Senior Leaders there in the room with the president tomorrow, that maybe we get some kind of a positive solution . What do you think happens . Well, talking and facetoface meetings never hurt. I used to say, ive never been to a meeting i didnt like. And i really mean that. You never move backwards from a meeting. Usually. And so if they begin to talk tomorrow, say there are 18 republicans at the white house, not all of them, but thats a start. Maybe they can expand that and begin talking to one another and understanding each others positions and feelings on this and why theyve taken the position theyve taken on both sides. Then you can begin looking for those threads that can move you through it, that can move people together. Yeah, let me i always used to say, tiny steps for tiny tots. You cant move fast and you cant get big things done fast. Youve got to take your time. What about this story today, dick, the nations largest manager of money market mutual funds, fidelity, basically saying theyre not going to hold any u. S. Government debt that comes due around the time that we hit the barrowing limit. I mean, if we see more money managers, large institutions doing this, saying were not going to hold the debt, here we are, you know, rolling over 100 billion every thursday, what kind of implication does this have for market dislocation, for the economy . Were walking on dangerous water, correct . Yeah. Its what i said. This thing is going to ratchet up in terms of heat, in terms of things happening that you dont want to have happen day by day. Were nine days into this. We could be 20 days into this and youll have more difficulties appearing and more pressure coming on both sides to get something done. As i said with t. A. R. P. Funni g funding, the moving event was a 700point drop in the market. If that happens along the way, that will sober people up, get people in rooms, trying to find quicker answers. The easiest thing congress could do is if they could do what the president has suggested, maybe do two weeks on the debt limit, two weeks turn the Government Back on to give you some time to start these meetings, the negotiations to get the answers they need. Dick, good to have you on the program. Thanks for joining us. Thanks so much. Dick gephardt, see you soon. Were broadcast live from the Societe GeneraleTrading Floor in new york. Up next, socgen ceo will be with us to tell us what he thinks about the fiasco and what the bank is doing to prepare for the scenario. With fidelitys options platform, weve completely integrated every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Coming to you live from Societe GeneralesTrading Floor in new york. The company clearly going through a transformation, a stronger Balance Sheet and expects to reach 10 profitability by the end of 2015, and it is growing in markets like russia, among others. Well talk about that exclusively right now with the man in charge, Frederic Oudea. First, let me goat your its good to have you on the program. Thank you for having us. Good afternoon and thanks a lot to be here. Welcome in our new premises. You know, for us today its the third day of the official ribboncutting of the new premises and delighted to have you here in this beautiful space. Before we get into whats happening here with the transformation and beautiful new Trading Floor and the ribboncutting. Let me ask you about the events in washington. Are you concerned about whats happening in washington in terms of this debt ceiling deadline . It obviously creates uncertainty, potential volatility. I would say you can never know. Normally, you know, the markets should take that not so much, you know, in a very panic moment mode, but i think theres always the risk of overreaction. You know, so again, it disturbs the trajectory of better growth and its not good. Same with europe, i would like to see some compromise but i feel its a difficult point of view. I mean corporate client as well as individual clients, what are you seeing in terms of their reaction . Are you seeing panic . No. Are you seeing people wanting to get out of position . What are you seeing . I dont think theres panic, but people expect some positive outcome, for the time being. But its fair to say if days pass like this, more and more pressure might be on the markets. Are you creating, you know, a backup plan . I mean, how do you prepare, assed leader of this firm, im talking to bankers who are talking about war rooms, who are talking about their own plans to ensure that stability stays at their firms, despite whats going on. So, what kind of specific plans would you have to put under way at socgen . We look at different scenarios but as a European Bank were not impacted compared with u. S. Banks. Secondly, at the end of the day we manage our risk position. You know we look at stress test. Of course, we try to estimate what could be the impact of an extreme scenario, some panic on the market. Of course, on our assets and business. Let me just say that we built a clientdriven position. I think we are really fine to manage this potential kind of scenario. Of course, youve seen crises before. We talked last time during the d. C. Upset as well as the european debt crisis, so tell me what youve done. Capital ratios, leverage ratios. Yeah, yeah. Very different from just a few years ago. Where do you stand . Is there any reason to believe you need to continue raising capital . No, clearly definitely not. Just in the last two years, we accelerated the transformation of the Balance Sheet up. Mentioned effectively we targeted for the end of the year 10 growth ratio, free loaded like we say, as you know. Were finding liquidity above 100 , so were now turning the page of the solvency challenge to fully dictate management attention to transformation of the business. In this new world, new regulatory world, new economic world, carry on transforming the business to precisely meet this kind of objective you mentioned on the profitability, 10 on equity. Isnt it nice to be able to focus now on growth from where you were in terms of righting the ship. Lets talk about the new normal, of course the regulatory environment. What are the most onerus regulations out there. Most hasnt been written or implemented. Much more capital, much more lick wit liquidity requirements. Thats the first two things. First of all, the trend, particularly in europe, its a challenge for me and a new opportunity for a bank like Societe Generale which has financing capacities and also very significant capital, and secondly is this move from otc products to, two clears, more clearing, simple, standardized products. These are two opportunities for us to take advantage of. Some are worried about the derivatives, otc products on exchanges. How does that implicate things . Of course it means potentially less revenues on certain businesses, but for us, with the Business Model we have, i think the impact would be limited and we can as a country also build on our clearing businesses. And i think overall, it will be positive for Societe Generale, compared with our competitors. What are you seeing in europe right now . There is talk right now weve turned a corner there, in terms of client activity, in terms of the environment. What would you say about the european back drop . Certainly its much better than two years ago or even compared with last year. We should have, first of all, economy growth in 2014. We should be better than 2013 across the board. In germany, in italy, in spain, in france, we see more positive activity. It will be a progressive improvement. Lets be realistic. Some time is needed, so more reform is also needed to boost a bit more of the growth. Its clearly better. We feel that with our own clients, you know, on the ground our corporate clients also feel a bit better compared to six months ago. At this point i feel like things are better in europe, but theres still a very big clamp from regulators. How much of a pressure has that been and do you think that we will see a global standard across the world or are there structures that will see different . How do you compete with different regulators across the world . You know, still, of course, the ideal world would be to have the same world for global businesses. Exactly. Lets be realistic. Im not sure it would be the case very, very quickly regarding regulation, capital liquidity and Capital Markets. There are discussions taking place on that. It might take time to have harmonization. For European Banks, in particular one key project is the Banking Union to have more in eurozone, thats a positive zone, a needed step to end the step toward standardization in the european market. First its an opportunity. Its a big task to put in place a new regulator from scratch, which will have to precisely harmonyize the rules but we see that as a positive project. How would you characterize the Capital Markets the last couple of months . How has business been . I will not quote let me say, we have a clientdriven Business Model. Of course, you see less activity compared with market volumes compared with last year because you have exceptions like volatility falling, but clientdriven, resident Business Model, and im happy with what we see in business in Societe Generale and markets. Ive been hearing mixed reviews from some of the banks. Of course, not asking you to say anything out of school because were about to see quarterly numbers. Speaking of new regulators, we have janet yellen today nominated by president obama as next chairman of the federal reserve. Whats the impact to Societe Generale and the industry . Let me say, first of all, im happy for her. Its good to see a woman as head of such an important position. And i think she brings experience, continuity. I think shes a good pick. Now, she will have, of course, a major task, which is the normization of this committee policy, the tapering, and i think its one of the core challenge for her how to make that as smooth as possible. It will take place. Whether it takes place in five weeks or two months, i dont think thats the real issue. It will take place. Of course, we should ensure it takes place as smoothly as possible to avoid too much volatility and uncertainty, which could create or derail more growth. Does your instinct say it happens is it a 2013 affair or 2014 affair . I know its a shortterm question. Christmas. Christmas, okay. Thank you for sticking your neck out there and making a prediction. Its always nice to have you on the program. We so appreciate youre time today. Thank you very much. Frederic oudea joining us, ceo at Societe Generale. Well take a short break. Internet stocks in the crosshairs again today. Whats on the move and whos coming out on the bottom . Our report from Silicon Valley is next. At a ford dealer with a little q and a for fiona. Tell me fiona, whos having a big tire event . Your ford dealer. Who has 11 major brands to choose from . Your ford dealer. Whos offering a rebate . Your ford dealer. Who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires . Your ford dealer. Im beginning to sense a pattern. Get up to 140 in mailin rebates when you buy four select tires with the Ford Service Credit card. Whered you get that sweater vest . Your ford dealer. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. Welcome back. Mixed day for the market today. Nasdaq down. S p and dow look it is upwards. Off the highs. Dominic chus on the movers and shakers. We have some action in the stock market today. Lets kick it off with computer hardware and Services Company hp. Those shares have surged about you can see about 9 in the regular perception. The company sees revenues stabilizing in fiscal year 2014 with pockets of growth. Another stock making headlines today have hit the radar of hedge fund barrington capital. The group represents a group of stockholders that own a collective two plus percent of darden shares. Lets cap it off with heart ford financial. Thats according to a ruthers report citing sources. People are lobbing off of internet stock. Really knee deep in a momentum market. Thats changing. Thats right, maria. The higher they go, the harder they fall. Now names like facebook which is now down some 8 . Linkd in, both hid in september. Even with the sell off. So facebook, linkd in, amazon. That index had surged 52 . At january, that index was trading higher. Not so cheap any more. An analyst says some internet names could face more short term volatility including, he says, yelp and netflix due to valuation. He says he does remain bullish on the group long term but recommends that investors focus instead on the quality names that have lagged the rest of the group this year. His picks, google and ebay. Thank you so much, josh. Lets take a look tomorrow. What could make this market go higher. Pros will be with us next on how to prepare for the open. [ male announcer ] eeny, meeny, miny, go. More adventures await in the 2013 lexus lx. Dare to be spontaneous. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your Trading Floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Welcome back. 30 seconds on the clock for each of my next guests. Were here to be watching what we should be watching tomorrow. Tim, you are up first. 30 seconds on the clock. What do you want to be prepared for . Thanks. First of all, happy birthday to the bull market. The nasdaq bottomed at 1265. We are in the 3690 level. Hi,maria. With all of the government drama and the debt ceiling right around the corner, i think its an important time for investors to revisit their investment strategy. Were going to look hal at the jobless claim numbers. Were going to look at chain store retail numbers to see if we have any Consumer Spending issues and of course consumer comfort report to see if we have got new indications of confidence. All right. Good stuff. We will watch all of that. We will see more up next. 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So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Market closed off of the highs of the day of 26 on the dou i want to thank everybody here for having us and congrats on the new digs. That will do it for the closing bell. I will see you tomorrow right here same time. I hope you will follow me on twitter. Have a great night, everybody. But wait, stay right there, fast money begins right now on cnbc. Good night. Live in the nasdaq for a while. Here is the break down. We will play a little buyer beware with abcs mark mahaney. The feeling is not