Le we have the editor of the book report thanks for joining us were going to check on markets see how were set up heres the futures dow down 15, nasdaq down 20. S p down 5 coming off the huge rally to close on friday, another strong week of gains for wall street. How about the tenyear, 2. 65 last week. We begin the week at over 2. 7. Did you see that i think the futures are down. Thats a sticker shock to people tenyear at 2. 72. 30year, just a hair under 3 fiveyear under 2. 5 twoyear, 2. 15 wow. Lets get you caught up with stories were watching perhaps the biggest over the weekend, saudi arabias prince alwaleed has been freed. He was detained. We talked about it for the past two months with the corruption crackdown. Several other officials and saudi royals were rounded up and they were at whats known as the ritz prison. Youll get to see it the ritz prison and alwaleed described it as a misunderstanding there are no topics its just a misunderstanding its a key position we had it was a discussion with government on various measures i cannot discuss it right now because were in discussion with them and thats the whole story and im in my country, im in my city i feel at home no problem at all. Shares of the Holdings Jumped 10 on a daily limit theres a limit how the stocks can go up. It went up to that limit, 10 . Its up again 3. 5 alwaleed told that the company would remain under his ownership. And no assets would be transferred to the state didnt discuss whether he was personally transferring assets himself. Theres a lot of parsing of this interview which we will do in a bit. We will talk about this with Robert Jordan to try to understand his transparency around his arrest. And other arrests. We should note, by the way, he was released after making a settlement after saying it was effectively a grand misunderstanding so strange to let him off scotfree at this point. The question is, what were they letting hi inting him off r and the larger point, what does it mean for investment saudi arabia and ram ipo the ram ipo we talked with the ceo who runs ramco in davos last week the journal made it sound like it was sort of like a money grab lets get these guys see how much money they will pay whether this is really an Anticorruption Campaign or something to raise 100 billion. Right and well have to talk more about that anyway, in other news, the new York AttorneyGenerals Office has launched a probe into a company that sells twitter followers likes and retweets to people investing their popularity, following the New York Times report on sales of fake followers by a Company Called de how are people employ pronouncing that the times says at least 50,000 have been can compiled using bio information using names and hometowns. Which is the scary part taking pictures, images and actually changing the color a little bit those who bought it, michael dell, former supermodel kathy ireland. A statement says these tactics violate policies and working to stop them. Most said they had pr or staff trying to boost their numbers. What are they going to say, oh, yeah, i did it myself. There was this whole move where celebrities hired social media managers to help them. And then if you hire them and your twitter followers dont go up, what do you do so, i can understand why these folks are doing that i want to know how many more little bots and firms are out there. And by the way, what does it mean to the advertising businesses of facebook and twitter. Sanofi striking a deal to buy ablynx, 2. 6 billion sanofi paying 20 of the Closing Price on friday. That deal coming after ablynx had rejected a bid from novo nordisk earlier. And shares of wynn macau down more than 6 in hong kong win resorts down again slightly premarket. The top of 10 after the wall street journal published the sorry of dozens of allegations of Sexual Misconduct by wynn contest that brewer is here. The wynn resorts launching their own allegations against steve wirn the only women on the board who chaired the Compliance Committee has been tapped to lead the inquiry. Well told it will include outside counsel. And the Republican National committee has accepted sieve wynns resignation with a very brief statement. Steve wynn is largely seen as the emperor of this company that bears his name making the decisions even to the tiniest details even on room design. Wynn has called these accusations preposterous he blamed his exwife elaine wynn for sparking these comments the journalist who broke the story said she was not behind it the company has raised a statement calling into the question what elaine wynn knew and why the board was not alerted. And they blamed and finger pointing directly at her am i wrong at least from the earlier reporting of the wall street journal there were allegations of this in some of the divorce proceedings, or some kind of lawsuits between her and him. More illusions than flatout laying out the details okay. Because thats where the wall street journal began their investigation effectively . Exactly they said that they looked through the documents and started asking questions and i did some of my own reporting on this, and you cant find anyone, a longtime person in las vegas who is surprised by the allegations. And there are people who worked closely with wynn himself who say, oh, yeah, it happened all the time so, now, the question is, how would wynn resorts operate without wynn, morningstar analyst says that wynn resorts has a deep sort of talent. That there are Design Development executives who could lead the company in the future ian coughlan was on the earnings call, and when steve wynn was asked about possible successors in 2011 he himself pointed to linda chan who is the cheeief operating officer about wynn and there are questions what the board knew, if they knew anything, and if they didnt, why didnt they. Okay. Heres the complicated part, right. I was thinking about this over the weekend. Theres a huge valuation ream thats be premium assigned to this company. Historically, people thought he was the magic sauce in this company. So, he goes does the value of the company go or come down because of this. Flip side do we believe that companies and or individuals wont stay at these hotels as a function of these s th s th thats what i was going to say. As a function of these allegations. Meanwhile, not to make it political, weve had allegations against our own president and there are questions whether companies or charities would do events at maralago you raise two points. On the one hand what happens without steve wynn and boston and the projects hes spearheading, as for people who show up, do they really care to say the conventions should some place else. Right if you dont change management, what do you do what do you think . The pressure is on the corporate boards already there are womens advocates calling for him to be fired. But this is a board that is notoriously powerless. In fact, elaine wynn said in her corporate deposition that this is a powerless board she herself felt displaced from the board because she dared to speak out against her husband steven wynn. In the meantime, you brought up those other projects, wynn Boston Harbor is well on its way. A Company Spokesman says they will inquiry opened by the massachusetts gaming commission. And nevada its important to know theres a new product thats in his infant stage. Im interested in whats happening in japan where all of these Gaming Companies are applying for a license to operate big casinos should that go to its final stages of passage. And here, theyre so concerned about the reputation of gaming, this is where it could have a big impact thats a good point any licenses they could lose here in the United States . Thats the other piece of this at this point, it doesnt look like i mean, the licenses are well established in massachusetts, mississippi and nevada could they revoke them . It could happen, its possible dont forget how many people are employed by wynn properties. If youre a municipality or a state looking at this the most important thing is for tax revenue or the jobs. Its unlikely theyll take that punitive action. In theweird way, what your raising is an interesting point should the company itself be punished for the ceos behavior . Right or should the ceo be held accountable. It reminds me of issues weve dealt with in the past ten years, should he personally, the investigations or whatever, should that be separate from the company or not when they say is this a corrosive culture from the board of on down and other employees, or maybe jaufust about him. And there are past who have been deposed who said out in the decisions im sick of acting like a pimp for mr. Wynn they went on the record. And then there were punitive actions taken by taken by the ceo mogul. I imagine every other gaming country in the world is going to be doing internal investigations as every company in Corporate America. I would have thought every company in Corporate America would have already got in there. I had a long conversation with jim learned about this in december because there are other allegations coming to light, not in gaming but other ceos, like Harvey Weinstein he was very clear, he said this is why i have women working in my company i want diversity in pay. Were coming off another week of record breaking wall street futures still pointed a little bit lower and that tenyear treasury yield over 2. 7 lets talk about this with kathy jones who is Senior Vice President at schwab. And peter is here as well. Peter, what are you thinking when we cross that threshold this morning well, its a breakout weve got to go back a few years to see a level this high and i think its reflective of hopes of growth, with see the index close multihigh friday rising wage pressures. And the german tenyear is breaking out over a multiyear level. So its a global thing what do you think, kathy . Is our yield pushed higher because of positive developments around the globe yeah, i think a couple things, Global Growth and reflected in yields but inflation is coming back people forget, last year, we had a dip in inflation, this year if nothing happens but how much higher above 2 for some measures, certainly can get there for the core numbers as we progress through the year Energy Prices are up commodity price, up. Wage prices are up the dollar is down its lifting import prices and the Global Economy is doing better sa all of that combined on friday, inflation closed at the highest level since 2014. Its beginning to get reflected to at least the tips market. And that feels like its tracing the oil price a little bit. Yes you got to go back to 2014 before the price is that level maybe wages look better this time than the last time . I think the wage story is sustainable. Even the commoditile story lili commodity story. We saw a dramatic pullback in mining in Industrial Metals and drilling and a little demand and less spy where do you think the tenyear is going . I think the surprise is on the upside i think the rapidity in the move is also on the upside. Because its not just whats happening in the u. S if the german tenyear all of a sudden goes to 1 , 1. 5 by the way that would almost be a tripping. 2016, six bases to 200 in two month. Kathy, where do you think its going . I call this year for the tenyear to grind higher probably test the 3 i agree the era of easy money is ending and i dont think the markets have fully discounted that i think the fed can surprise on the upside and yields can surprise on the upside so, when we were talking in the last couple months that the curve is flattening. The twoyear moved a ton but the 30year did not. What do you see with the hikes coming out its more for the fed to tighten. And its looking for a little steepening in the short term and ultimately going back to flattening because the tenyear rarely goes above where the fed fund terminal rate is where you think it is now 2. 75. Were probably getting close to that i dont think we can stay above that unless the expectation that the fed is going a lot higher . Would you agree with that yeah. Historically, tenyear was nominal gdp. Imagine if that happens. That hasnt happened in a long time. Gdp, 4. 5 . Yes, are we built in a economy thats so particular to lower Interest Rates is how sensitive are we going to to be to these changes in Interest Rates . Probably more so than people believe right now. Guys, thank you kaen kathy, thank you coming up, prince alwaleed releas released what really happened were going to ask Robert Jordan what really happened in a couple minutes. Nobodys putting their money into equities. Theyre not investing in commodities or fixed income. What people are really putting their money into is what they hope to get out of life. But helping them get there requires a real refusal to settle for average. Because when you approach investing with a tireless desire to beat the status quo, Something Wonderful can happen. Those people might just get what they wanted out of life. Or maybe even more. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. We use so why do we pay touters thave a phone connected. When were already paying for internet . Shouldnt it all just be one thing . Thats why Xfinity Mobile comes with your internet. You can get 5 lines of talk and text included at no extra cost. So all you pay for is data. Choose by the gig or unlimited. And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Box, the top story, saudi arabias prince alwaleed has been freed joining us now former u. S. Ambassador to saudi arabia Robert Jordan. Weve been speaking to him for many months now, agen shg, as ta gone on. Alwaleed at the center of it, at least the most high profile. Ambassador, help us understand with that interview what prince a alwaleed with this release from the ritz, hes at home now. He called this thing a misunderstanding could that jb. Probably not. I think the saudis need prince alwaleed just as he needs the good graces of the government. Hes the symbol of the new saudi arabia hes a very vested foreign investor people call him the Warren Buffett of saudi arabia. He need to get this over apparently hes going to maintain control of Kingdom Holdings company which is extremely important. They dont need a bon fire this is good they have moved on the former finance minister, Board Members from aranco, if theyre going to do an ipo for aranco, they have to show they have a rule of law ambassador, to that point, i spoke to a very large well call them the money manager for now, does a lot of business in saudi who saw this news over the weekend. Who saw this ideas it was a misunderstanding and also saw reports that said there was a settlement, at least suggested in that interview by prince alwaleed was that there was no Money Transfer of any sort. Vest it makes me feel less secure this is tape of an interview i did with alwaleed just days, week before arrested back to the issue of it, ambassador, if there was a settlement and both side as agreed to keep it quiet to protect the reputations of both, doesnt that leave people even more skittish . I think thats a good point and yes, it should i think we need to have more transparency here. Thats what the outside Investment Community is going to want and we dont have it so, i think its very important that we understand exactly what has happened but if we dont, meaning is your expectation that were going to be hearing from the saudi government that there in fact was way settlement . Or do you believe that prince alwaleed is going to come forward and say there was a settlement or do you think the whole idea everybody is going to call this a misunderstanding and perhaps there was a settlement and we wont know exactly what that is about . I think thats the scenario i think we will not know, they have said they will have made their peace and going on their way. Remember, prince alwaleed is refusing to settle thats why he was incarcerated so long. He said he would be happy to go to trial so, he was a holdout and hes held out longer than many of them did at the same time, you seem to be quite supportive of both the settlement or the fact that hes been released calling this a good thing what im trying to understand, if you were an investor, i think we talked about this the last time, when i left riyadh, literally a week before this Corruption Campaign. I thought the amount of goodwill they generated out of that conference was remarkable. 150 billion had flown out of that country in six to 12 months obviously a little bit of skittishness by the way, money is starting to come back into that country anyway does this change that . I think it may slow it down a bit. I think its going to cause investors to be a bit more cops about whether there really is a rule of law in saudi arabia or whether this is simply a money grab by the crown prince we really dont know, i think theres also the possibility that several things are happening at once. Clearly, they have a corruption problem that need to be addressed. Right this is a fairly heavyhanded way to go about it but they did address it secondly, the crown prince wants to consolidate his power two things are happening now ambassador, let me ask you this, prince alwaleed often watches this program if youre watching were happy youre home. A number of the royal court a