Economy with janet yellen about to testify. We have to get our head around what matters to her most. Clearly she hurries clearly she cares about data. The question is, is a data around the world as we look at china, japan, brazil, or is it the economy improving slowly . We have breaking news right now. Matt first i want to give you news on time warners dividend. If you are a shareholder, you will be happy about the fact that time warner is raising its dividend. Well, you might be happy. . 40 to . 40, a quarter per share. You are getting a next her nickel and a quarter per share. As far as earnings are concerned, we have eps from 1. 06 fromops, at time warner. We had total revenue at 7. 08 billion. I will look and see if those are comparable, but the Dividend Increase and the 5 billion Share Buyback program are things that can move the stock. I want to talk with vonnie quinn from first word news. Vonnie voters in New Hampshire sent a message to establishment candidates for both parties. A billionaire and a democratic socialist won the nations first president ial primary. John kasich was a surprise second with 16 . In a victory speech, donald trump sounded a familiar theme. Donald trump we are going to make America Great again, but the oldfashioned way. We are going to eat china to mexico, alljapan, of these countries that are taking so much of our money away from us, on a daily basis. It is not going to happen anymore. Vonnie Bernie Sanders beat Hillary Clinton by 21 . The race was called almost as soon as the polls closed. Bernie sanders together we have sent a message that will echo from wall street to washington, from maine to california. Vonnie up next, caucuses in South Carolina and the primary. The4 decision will stop thes clean power plant epa is said to have overstepped its authority. Nato made a ploy thousands of troops to defend against russian incursions in the baltics and eastern and southern europe. Defense ministers will discuss the situation today in brussels. Any deployment would include large numbers of u. S. , british, and german troops. Global news 25 hours a day, at 150 news bureaus around the world. I am vonnie quinn. Matt i will start in the u. S. With futures. We see gains across the board. As david mentioned, we have been down this morning. We are back up right now. S p futures are at 1 . Nasdaq futures gained the most. The nasdaq is really what i want to hone in on and focus on here this morning. It is almost at a bear market from its high. We are down more than 18 since july 20, tech stocks, big tech stocks falling in value. If you look at the volatility spreads, there is a great function of the bloomberg gv. You can see the volatility of volatilitysus versus the volatility on the s p. You can see on the bottom of the chart that we are almost up to a high level, almost to the highest level we have seen since the june 20 hi on the nasdaq. I also want to look at japan because it is a huge story, was a huge story overnight yesterday and tonight. Nikkei. The 5. 5 on the tonight, 2. 3 , although it had down although it had been down 4 . The board there so i can look at the yen. The strongest art to a month we have the strongest start to a month we have seen, ¥115 is all you can buy for your dollar. That is not what the bank of japan wants. That is not why they are spending so much money. The japanese 10year has a positive yield. It had been negative yesterday. It is back. They are spending a lot of money and not getting a lot of traction. Stephanie what does the market want to get japan out of this . I think what the market wants from the boj is aggressive action. The boj has put rates in negative territory. They are likely to do more Going Forward in terms of asset purchases. The real question is, is it enough . Is it enough to pull inflation up to its target at the time. David the stock market is suggesting they do not believe it is enough to bring it up. Certainly there are a lot of things happening on the stock market. The globalseeing is fear, the fear of what might happen in china, what might happen to the Global Economy, oil producers, european Financial Institutions all of that is weighing on markets globally. A chartwant to show you i have that shows the yen at its since 2014, since november of 2014. Here is the bank of japan, where the bank of japan has surprised with a negative rate move announcement. Look to the european stocks. Take a look at the european majors. You can see a rebound here. Here the stoxx 600 up 2. 3 . The cac and the dax up. Deutsche bank obviously, there is talk it has been said that it will buy back some of its more senior debt. Deutsche bank shares up are up which bank shares are up almost 14 . I want to show you one more function in the bloomberg. Allows you to get a look at stock. You can see the equities. Obviously there has been a rough time of it, and you can see from these charts it is coming back a little bit. Stocks quick look at health. David you have run a couple of big banks, john, particularly during a difficult time. If you are running a Deutsche Bank right now, the overall market turmoil as well as specific issues with the banks, what do you do . John you have to communicate with investors in the marketplace, number one. Number two, i think people overreact. The banks name is Deutsche Bank. It is the german bank. Politically, they will stand up if they need a safety net, and give it to them. At the end of the day, all you can do is came indicate. I think they i think theyre equivalent of what we have with the fed i think that theyre equivalent of what we have with the fed is the german bank. You off guard, flipped or quick, and it scares people. I heard yesterday the lowering ofof Interest Rates, it is absurd. The government will not let that happen. Stephanie if you are spending money that you were not planning to spend at a time you need to focus on growth, do you ask regulators to ban shortselling . When panic is happening it is not helping your company, and it is a fundamentally good company. John it depends. During the crisis back in 2008, there was a lot of pressure on balance itself. What people did not understand, and i am not sure about the german market, but people forget the power of Credit Derivatives and the pressure it can put on stocks. So the combination of shorting and putting on a trade against it puts it on steroids. Do i think they should and shortselling . Should go outthey and ban shortselling . I do not. What has to happen, the central bank needs to make a statement, the ceo needs to communicate, and i am confident everything will be fine. Stephanie but is the use of Credit Derivatives they are simply destructive for those who are investors, who are basically short time hedge fund investors. Traders, really. John you have to ask the market. That is the game you play. David we have a Central Bank Statement coming out today from janet yellen. I wonder, as i look at this, you about the futures of Interest Rates, and the market is saying there are no rate rises coming this year. Say tould janet yellen make it any better . Can she only make it worse . Steve she can use some york fedce as new president dudley said last week, if Market Conditions like this were to prevail in march, the said may choose not to raise rates then. The fed is paying attention. They will not make the situation worse by raising rates in very volatile markets. At the same time, she cannot say rate hikes are off the table. She is not ready to do that by any sense. The labor market keeps tightening, she will have to hike inhy the fed december did not work. She will have to play both sides. Matt you can see the market does not even think there is 33 chance there will be a rate hike at all any time this year or into next year. Obviously the chances of a march rate hike has fallen have fallen. Every other surprise index has come in down. Only the labor market is positive. Not spokenshe has yet, and the picture in december is not the same as today. I do not think it is an issue of rates. I think as a general fear of markets, not just pure Interest Rates if you look at europe, you have no growth. If you look at geopolitical risk, what could happen . You look at the u. S. , where there has been growth, not as much as we would like to see, but there is fear. The fear is geopolitical. Lower oilhought prices are a big positive, and i still believe that. I think low Interest Rates are still a big positive. Market . Driving this what is going on in the middle east, china, and north korea puts a rocket up into space. Global economies are suffering with the exception of the u. S. , which is doing pretty well. I think it is just fear. Stephanie is there a catalyst you could point to that you think could help us get out of this slowdown . Without regulatory or fiscal policy changes, banks are not lending with confidence. Ceos do not know what is in store. John i think banks are lending. I do not see that as an issue. There is the monday there is the money out there for lending. Lets get the president ial election behind us and get some clear direction. I think the fed clearly wants to raise rates, but not in this environment. Number three, we have to figure out a way to calm the global world. It is a mess. On here have miliband later, and he will talk about what is going on around the world with refugees, with trends, the pressure being put on europe by the immigrants coming in. And then you have russia now helping syria, and all sorts of things going on. If you are an investor, why would you be conservative right now . Catalyst is there a that you think could stop the global slowdown . There are some candidates out there bank. It is hard to know which one of them come first. There is some bottoming in the oil market, that will help them feel comforted. The continued decline raises fears among oil producers. People are worried about those countries. The same thing that could happen is some sort of chinese policy stimulus. They are really the only ones with a lot of great cuts that can be done. Europe and japan can cut rates a little bit further and do some more qe, but i think china would be the one to really aggressively put in stimulus if it is going to happen. David thank you so much, dean maki. John is going to be staying with us for the rest of the hour. We will have full coverage of Janet Yellens testimony before congress at 10 00 a. M. Eastern time. More on the european banks. We spoke with the ceo of italys secondlargest bank. That is coming up next on bloomberg. Of disney areares falling premarket. The Worlds LargestEntertainment Company posted record earnings in the fiscal fourth quarter, still there are flagging there are slacking profits with espn. Last years luxury car sales leader, bmw, fell to third place last month. Mercedes posted a 20 increase. Audi finished in second place. And burberry is suing jcpenney. The british luxury goods maker says the american retailer illegally sold a coat and a jacket that featured replicas of burberrys famous plaid pattern. Jcpenney is not commenting. Going tow we are global go. Every day we will bring you stories from around the world. Today we had to london with francine lacqua. European banks are in focus. You just spoke to the ceo of the secondlargest bank. What did he say about current market volatility echo francine i had an exclusive conversation with him, and it is the secondlargest bank. It is the Biggest Company in italy. I was trying to get out of him how he saw the turmoil, whether he was worried about the turmoil. He said clearly that the market reactions were blown out of proportion. The market is absolutely crazy. Definition, noer correlation with the fundamentals. The markets are irrational. Think in the end, in some weeks they will come back to the fundamentals. Bigcine this is a pretty european ceo, and he says there is a disconnect. He says if you look at the real economy in europe, we are still growing, and the negative headlines that feed each other lead to the market fallout. Stephanie i have to ask you about the market disconnect. As an economist, you look at fundamentals. But at a time we are seeing panic around the world, how do you pair the two and manage the disconnect . Dean first of all, you have to do the fundamentals justify you have to look at, do the fundamentals justify what is out there by gekko in most cases, no. The economy is glowing the economy is growing slowly, but it is growing. To the market fluctuations get so intense that it starts to affect growth itself . That is what we are likely to hear from chair yellen, that the fed will back off if markets are getting out of hand. They are worried about this kind of feedback loop, and that is something to be concerned about. David john, it strikes me that there are fluctuations in the markets, but there are differences between companies and how they are positioned. Italian banks, the rate of nonperforming loans is greater than the rest of europe. So you have to get your own house in order, too. Quicklyd a fast and as as they can, they will try to do that. But the volatility is difficult. We need to have some calming factor. If we get some reasonable growth, i think the fed will take action over time. But they want to see a chick up in confidence a tick up and confidence, and right now people are lacking confidence and becoming risk of versus in some cases. In some cases. When you look at these Bluechip Companies who are paying 6 idends in the 4. 5 to range, i think that is a great opportunity. But if you are nervous and scared, which i think many people are, you hold cash. Stephanie google does not go on sale that often. John mack, stay with us. Dean maki, thank you for joining us. When we come back, somebody elses weighing it. Goldman sachs gary cohn, giving us his thoughts on volatility and technology, weighing in on uber and a potential ipo. Stephanie welcome back. Emily chang sat down with gary cohn at the banks tech conference in San Francisco yesterday. She asked him if we are seeing a revaluation in tech. In some cases we are seeing a revaluation, but in some cases the market is clearly taking a pause and trying to understand the longterm viability and a longterm Wealth Creation vehicle for shareholders. Emily you guys are investors in uber. Out, said thated be publicly traded now. What do you think . Gary everyone is entitled to their opinion. Maybe five or 10 years ago they would have been public, and they are not. Has access to capital. They were able to raise at an ever higher multiple. Emily an unprecedented multiple. Gary they do have cash flow. They have earnings power. They are doing the things i was talking about other companies doing. They are investing a lot of their u. S. Earnings in their u. S. Cash flow in building up the international business. Their u. S. Builders their u. S. Business is proving to be very positive and accretive to shareholders. Investorat about liquidity, though . Gary as long as the company is growing, it pesters investors are creating value. Where investors will be concerned when there are down rounds. Then they will be concerned about liquidity. Doing a flat round, a down round, having to provide more security or more preference for the new investors, that is when you will hear about, you know what, i am an investor managing other peoples capital. I need liquidity at some point. David john mack, you are involved in tech investing. What do you think about this question of getting out . Stephanie for investors to get out. John they can get out. A number of people, whether it is uber or whatever it may be, if they want liquidity, they can sell their stock. It is not the best execution, but when you went into it, you knew what you are buying. I think gary is correct on this. Stephanie we have to take a break. We will be back with more. John mack. We live in a pick and choose world. Choose, choose, choose. But at bedtime. Why settle for this . Enter sleep number and the ultimate sleep number event, going on now. Sleepiq technology tells you how well you slept and what adjustments you can make. You like the bed soft. Hes more hardcore. So your sleep goes from good to great to wow only at a sleep number store, right now save 50 on the ultimate limited edition bed. Know better sleep with sleep number. David welcome back to bloomberg. Is john mack. His form here is vonnie quinn. Vonnie john kasich gave himself some breathing room. That is what came out of New Hampshire at the primary. Bernie sanders beat Hillary Clinton by 21 points and called on supporters to help out. Us raisenders help the funds we need. Whether it is 10 bucks, 20 bucks come or 50 bucks, help us raise the money we need to take the fight to nevada, South Carolina, and the states on super tuesday. Republicanmp won the race, as expected. He is setting his sights on the next battleground. Donald trump thank you, New Hampshire. Thank you. We are going now to South Carolina. We are going to win in South Carolina. I love you all. Thank you very much. Vonnie republicans vote in South Carolina on february 20. Democrats on february 27. According to a south korean news andrew c, and the u. S. And russia are stalled syriave peace talks. They broke down last week as syrias military made major gains against rebel forces. Secretary of state john kerry and his russian counterpart will try to get the talks going at an. They will meet with other Foreign Ministers tomorrow in germany. Global news 24 hours a day, inered by 2400 journalists 50 news bureaus around the world, i am vonnie quinn. Here is solar city. Lets look at some stocks first. Solar city down almost 30 after showing it had fewer deliveries than the street was looking for. A big loss for the stock. A big loss for billionaire islam must it we will talk about that later. Disney down because of a big loss for billionaire elon musk.