Its the biggest gainer of the major averages look at treasury yields, this is where the action has been. Yesterday the twoyear sitting at the highest level since 202000 the tenyear at the highest level since 2014 the yield on the tenyear is 2. 632 couple big stories were watching, the u. S. Government is officially reopen for business after President Trump signed a bill to end the shutdown hundreds of thousands of federal employees will return to work. The bill funds the government but only for 17 days its the product of an agreement in the senate to reopen government and tackle immigration within three weeks well watch that its a busy day for ponentse the opening bell Johnson Johnson, Procter Gamble, travelers and verizon. We will hear from capital instruments and united netflix shares are popping the streaming company adding more global subscribers than expected in the latest quarter heres what Reed Hastings had to say about what is driving growth the real driver is to make the big titles bigger. So what happens is so many people are talking about bright or Stranger Things, or the crown, that pulls in people who have not yet joined, all their friends talking about the shows. Thats the dominant accelerator. Earnings and revenue were in line the companys upbeat guidance pushing netflix shares to an alltime high giving it a market cap of 1 100 billion for the first time this is the kind of day davos was made for yes yes. The snow stop. Sun came out its beautiful you hear the church bells ringing . Its not cold last year it was freezing this is our first of four days here. Thats okay but this is pristine not the slightest bit look at him. He looks like hes leaving this to go to a runway. Walk up and down looking good without a jacket all right. I was going talk about something. Ge reporting on a wednesday we need someone to find out the last time it was that they they always report on friday yeah. New company, new leadership reporting on a wednesday. We have a lot of important guests do we have to work in these earnings theres a lot of news duty calls. Are there are no computers h. Including this. As a proponent of renewables, you have to tell me whether you like this or not President Trump is slapping tariffs on imported solar panels and large washing machines the u. S. Will impose duties as much as 30 on solar equipment made abroad. Currently about 80 of the parts in the industry are made overseas solar stocks this morning are up a bit. Renewable people here have been against tariffs, even though they are definitely being taken advantage of from dumping from abroad they think it will hurt the overall adoption if you look at the issues, just the jobs created in the United States, based on solar products, 15 of it comes from manufacturing. 25 comes from research and development. And from the sales jobs. 53 of it is installation. More expensive solar panels, it will mean fewer installations. So the green lobby is not the solar lobby is not on board because it means theyll have less adoption rates thats what i meant, the greenies i wondered how you felt about it it seems like were getting dumped on. Its unfair. This is one area where you would look for if you would try to make things well see washing machines, i dont know tariffs on large residential washing machines will range from 20 to 50 the u. S. International trade Commission Found both imported products are substantial causes of serious issue to domestic manufacturers. U. S. Officials said more trade enforcement action will follow thats right there is a lot of news this morning. We do have news andrews column it is some breaking news that just broke overnight elon musk is the subject of the column telling me hes agreed to stay on as ceo of tesla for the next decade. There was speculation that he would be stepping down he said once completion of the model 3 was up and running, that he might not stay at company at least as the ceo. But tesla announcing a radical new Compensation Plan. It could be the most radical Compensation Plan in history his compensation will be tied to the performance. The executive will receive no guaranteed compensation of any kind at all. He only gets equity that vests over time but only if he reaches the hurdle rates which are, dare i say, crazy right now the company is worth 59 billion they run at 50 billion increments youre just talking market capitalization not based on revenue or production theres two metrics at each step so the first step is he has to get the company to 1 100 billion and reach these operational and adjusted ebita and revenue number if he doesnt get either, he gets nothing thats a weird way to break it down. If he gets to 150 and hits the operational number the market can be irrational. Cant control that at each 50 billion number h collects 1 of the company if somehow magically he would get the company to 6 650 billion which is what the plan calls for, if you can believe this, he would contact the equivalent of 55 billion in compensation. Otherwise he gets nothing. What if you get it to 6 650 billion and it collapses to 500 billion . Is it just hitting that market milestone that matters heres where it gets more interesting. The shares vest but then he has to hold the shares for five years. At each break point. You still get it, right market capitalization is the weirdest thing no. Its impossible to game, even if you were to get the company the market cap to 100 billion, you have to hit the operational numbers. On top of it. You have to get both. Then you have to hold the shares for five years so if youre trying to do something temporary you cant, because five years later your shares would be worthless. Would affect decisions on i buybacks, issuing stocks the last Compensation Plan they had in place started in 2012, it was similar to this it had a market cap component and all sorts of i never heard of another company doing this. He literally gets nothing if he gets to 99 billion he gets nothing if he gets to 1 149 billion, he gets nothing it is truly eat what you kill skin of the game operations, it would be that. Yes, production if you can make sure youre producing enough models by a certain time its not eat what you kill but you have to capture both. Otherwise what do you do he is taking a chance huge chance who was it that said if you value the company x subsidies some think the company is worthless. People talk about what an executive Compensation Plan should be, you want people to have skin in the game, this is about as much skin in the game as it comes. Heads you win, tails you dont lose all right well talk more about this over the next several days. Right now down to business with our first guest who has a big stake in all the final issues weve been talking about this past year. Those include tax reform, the u. S. Market rally and future of banks in the digital age joining us is bank of america chairman and ceo, Brian Moynihan bank of america the best performing bank stock in 2017. We appreciate you being here today. My pleasure to be here on a Beautiful Day. We got lucky today. You came out with earnings the numbers were better than expected but one slightly weak number was the trading number your trading revenue down 34 in fixed income for the Current Quarter we have not seen more volatility, but whats happening with trading . Theres seasonality to trading that goes on as you open a new year, people get back to work you see it so its been a bit stronger. If you look at it the way we run the trading business, over the last six years revenues ranged from 12. 9 to 13. 6 billion in revenue. Its much more stable. It comes from our ability to issue clients andinvestor clients. So were not running it to swing from the fences. We just talked about treasury rates, how theyve been creeping up a bit the twoyear, the fiveyear, the tenyear things picking up. What does that mean for bank of america . Weve been waiting for higher rates for a long time. If the rate structure represents stronger growth in the economy, and next year the economy picks up a half percent to three quarters of a percent, thats a great thing if the rates are rising in response to that if theyre rising because theres inflation or other things, thats not so good but we all benefit technically if theres a rise in the curve from year end, 60 of it is the short end. We go by the general economy, and its in pretty good shape in the United States, and we anticipate it to grow 2. 7 the imf just raised their Global Growth forecast, 3. 9 an increase of 0. 2 , that was based on the u. S. Tax law changes. We know what it means for bank of america, but what does it mean for the companies you do business with . I think the key for tax reform in the u. S. From a corporate perspective and a global perspective was a lower Corporate Tax rate and territorial system so you remove some incentives to try to move money to figure out where the natural watermark would be for activities. So companies are going to benefit by that. Theyll have more money to invest the second thing is they will be less about trying to figure out the knew wants in nuances in tax. We have a talent of work force, we have Tremendous Energy resources, we have a rule of law around working and employment flexibility and a Regulatory Environment swinging back in i dont think people have seen ive been pleased to see so far is not only u. S. Reaction, which you might expect, but outside the u. S. , the u. S. Becomes a more attractive place to manufacture and drive to i think that will help the u. S. Economy. When the u. S. Economy goes because of size and the consumer side of it, that lifts boats what do you think about the Small Businesses youve seen its early days, but have you seen increased demand for loans or Capital Expenditure weve been doing sort of successive record quarters of origination, small mid size businesses its been very strong. I think Small Businesses tend have looked the last several years on policy of being a bit working against them we decide that policy involved but implementation of Affordable Care act causes them to slow down and rethink the Business Models what has happened with the regulatory move and the tax reform is you have taken away uncertainty. Theyll be more aggressive you have to be careful of overstating it if they tell you theyll do it, lets say its 5 , 10 more aggressive in terms of investment, thats a big difference when you take across our 200,000 our 200,000 mid size business customers. Think of each of them being slightly more aggressive and how that flywheel keeps turning. What do you make of the companies that announcing after the tax reform plan to give onetime bonuses what do you think thats about we did it as part of a shared success with our teammates when we think about driving responsible growth at bank of america, we think of being sustainable. When the Company Receives a benefit like that, we thought it was important to show the teammates we had success with. Its part of what weve done in terms of healthcarebenefits an changed and lowered costs for lower paid people. We have done a lot of work around it. It was a good sign that, hey, we received a benefit, you should share in it. Well continue to use the tax savings to invest in the company and continue to drive things but was it driven from an Economic Perspective it was driven by you received a benefit and i thought it was important to share the teammates. If you got the emails that i got from teammates who were excited to get it, it was a tremendous thing lets talk more about the consumer i know the consumer was strong heard what you said about the Holiday Shopping season. The strength that was there. I read a report that suggested that consumer bad debt was up by 20 in the credi four major banks should we be worried about it . Spending, if you think from 15 to 16 and 16 to 17, the spending on debit, credit cards, cash, everything was up 6 16 to 17 think of that difference being across 2 2. 6 trillion of spending so consumers are out spending. You hear about retail sales. Theres a lot of spendingon experiences, eating, travel and stuff thats picked up so the spending is good. On the credit card pick up, were at a low base. We always have a bit of a pick up in the Fourth Quarter we went from 2. 6 to 2. 8. We used to underwrite 5. 5 in good times of losses now were experiencing half that so the conservatives in us and our colleagues in the industry will hold this in check. So i think the increase off a debt count balance level is expected well see that turn back down as we get through seasonality and as you continue to grow receivables, youll see that in good shape Consumer Credit is in good shape. You have closed a lot of branches mine got closed. Thats okay. A Technology Giant like you yes yes. I never use cash what do i use . Bitcoin venmo yes through my paypal or something. Thats a change in strategy, isnt it bank of america, there should be one on every corner, like starbucks. As much as at the peak we had 6100 branchs we sold about 500, 700 to Smaller Banks to get the consolidation benefits we closed some it was all based on Customer Behavior and flows in that time, last year we rehabbed 300, 400 branches, built some new well go into cities like minneapolis and denver we have gone from 150th market position to 8th in those cities already. So were bringing our as far ass and capabilities to seven or eight large cities automobile be building branches. With a change in behavior, if i were a retailer you would tell me what are you doing in terms of retail sales. Its incredibly important to do everything for customers we have a Million People kocomet branches every day all served by one teller . 60,000 teammates. Still yeah. Thank you, brian. Its great having you here. Appreciate your time thank you enjoy your davos. When we come back, up next ubers ceo will join us on set to talk about the challenging and changing culture at the ridesharing company. We will talk to him. Then blackstone chairman and ceo Steve Schwarzman is here ronoh really . Gs going on at schwab. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction with full Service Brokerage firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Welcome back to squawk box. Were live in davos. 2017 was a bump year for uber, but they came in with a new ceo, an investment from softbank and what could be the hottest ipo. Dara khosrowshahi is here on set. Were thrilled to have him here. Thank you for having me thank you lets talk about the softbank deal yes weve been talking about that on our air the past month. Its finally done. How does that change the company . We are thrilled to have soft bank as an investor. Theyre one of the biggest capital players in the world and through their historical investments, they know the ridesharing industry they understand transportation in a way that few investors do were thrilled to have them behind us, investing in uber, not our competitor it came with certain governance change, is that we needed to make, such as getting rid of high vote shares, getting rid of one share one vote for everybody at uber. So everyone has an equal voice we think those government reforms are incredibly important as we drive the company forward. Whats the relationship like with travis . Its fine but strained. There was a lot that happened in the past it wasnt right. The moral compass of the company wasnt where it needed to be, but at the end the eo of the Company Needs to take responsibility a lot of the press coverage is difficult for him. Thats understandable. Travis has been there for advice when i needed it as a board member it is a difficult time for him and as a company we have to look past that. My job is to move the company forward, move the culture of the company forward. How often do you talk to him on a weekly basis . Not on a weekly basis its on a monthly basis. We have our normal board calls and we touch base once in a while. Right now my focus is getting a Management Team together we brought barney harfen from from orbitz. Tony west from pepsico and really getting a Team Together who i think can at uber, who i think can open up the next chapter of the company and take us where we need to go. The next place you may be going is an ipo. Yes, we hope. Do you think its going to be easier or harder to make some of these changes that i know you want to make people talk about how they need to be a private company to do this ive been ceo of a Public Company for 13 years at expedia. I think thats an excuse sometimes its harder as a Public Company to make the longterm bets that you want to make if youre clear about where youre going, youre clear that you wont be subject to shortterm thinking, then theres a certain class of investor who wont be interested you need to be clear an then deliver. So the Public Markets hold ceos and teams accountable. And i think with uber, this is a company thats absolutely been held accountable to some extent i think uber suffers from the negatives of a Public Company because the world