Increases financial uncertainty. What it clearly does do is add additional volatility. My conclusion would be increasing volatility and that will be with us for a while. Asian and european stocks are down or indicate u. S. Stocks will open lower as well. The sixth straight day of decline. Bond yields and set record lows in japan, germany, italy and five of the euro area nations. The west tenure is only 1. 73 . Cheap oil and u. S. Growth are not the solution to Global Economic woes. Christine lagarde spoke yesterday to washington. The question we have at the moment is should Lower Oil Prices and a stronger economy in the United States make us more upbeat about the prospect for the Global Economy . Most likely, the answer is no. One risk according to Christine Lagarde, that the fed could disrupt Financial Stability by raising Interest Rates. She did not get even get a heads up or know about the s p policy change ahead of the time. Not in the loop. The price of oil up as much as 3 this morning. It was down five yesterday. Still trading at 47 and change a barrel. Nonopec Oil Producers cutting 9000 jobs 7 of the workforce. Europe is on a work day after possible terrorist attacks in belgium. Police arrested more than a dozen suspects in overnight raids after a shootout left to suspects dead and another in custody. Elgin authorities and say some of the suspects had just returned from syria. Police arrested 10 people in france overnight who they said may be linked to last weeks terrorist attack. A group of investors says the General Motors ceo and other gm executives misled them about those recalls. They filed a slew claiming g. M. Sued claiming g. M. Misled investors about issues related to faulty ignition switches. It has been a rough week for the big bang spirit with bank of america, city, jpmorgan and wells fargo posting a combined 12 decline in fourthquarter profits. Revenue from fixed income trading decline for the fifth time in six quarters. I have to be honest with you. I wondered yesterday whether Goldman Sachs would not be five the trend on wall street. Goldman is supposed to be staffed by the smartest guys on the streets. So many of the top talent are still considered the smartest guys in the room. Did they anticipate of the decline in fixed income trading activity . The answer is a resounding no. Im asking myself this morning because we exchanged a few words, what the fix . Goldman sachs trading fixed income trading revenue was only 1. 22 billion dollars in the most recent quarter. Less than half of what jpmorgan reported on an adjusted basis. Down 19 if you compare that with the rest of the street. Only bank of america was worse. We are not coming wells fargo because they do not have a meaningfully sized trading operation. Here is the thing that perplexes me. All of these banks have a different explanation for why fixed income trading revenue was down. Which suggests that there is something there is Something Else going on here. This is a secular problem, you will. This has to do with what they call the acquisition of fixed. The fixed income trading business from a volume trading business to a spread driven business want to clarify what it stands for . Fixed income commodities and currencies. Not everyone knows that. It is fantastic. In the case of rates, Interest Rate products, things like sovereign debt and shorterterm Government Debt bank of america cited as a positive citigroup as a negative. Mortgages both bank of america and Goldman Sachs said it was a drag on revenue. Credit the area where they saw the most similarity. Bank of America Jpmorgan and Goldman Sachs saying credit was a problem. Then it gets murkier. Macroeconomic environment was the problem for citigroup. Goldman sachs says difficult marketmaking conditions were the problem. This is the issue. Quarter after quarter after quarter, each of these banks comes up with an excuse for why trading revenue is not beating or exceeding expectations. The story keeps changing. Perplexes investors. They are not sure what to expect. One of the reasons you see Goldman Sachs trading down this money. Premarket down 10 . Jpmorgan down 12 . Citigroup down 13 . Is a they need to get right sized. They are still hiring. Bank of america is still lacking. Thank you so much for that. Eric will be back with us at 10 00. Home depot, the board elected a ceo as chairman as well effective a very second. He will succeed frank blake who will retire from the home depot board as chairman. Lets get back to the fallout from the swiss currency. To Brokerage Firms and say they have gone bust after suffering losses on the franc. The shockwaves may spread. National Australia Bank says i would be astonished if we did not see more casualties. This was a 180 degree about turned by the s pnb. Lets go to hans nichols in zurich. As i have predicted, the reaction has been rough around the world. I wonder how it is in the heart of switzerland. You are still theyre not going inside the shops to spend. Things got a lot more expensive. I just bought an espresso from a wellknown seattlebased coffee chain and it cost me more than five dollars. Here are the two questions dominating the conversation. How much more how to more losses are we going to see on fixed exposures from the Big Companies . How much more are they going to stick. What happens to the swiss economy . There were some predictions that you are going to go back into a recession. With that, i will throw it back to you. I will not be able to hear your followup because i believe i have lost contact with new york. Very well done. As nichols tossing it back to us as we lose the connection. He will go back and get another espresso for five dollars. I feel like it costs five dollars here in new york as well. Will a big mac be . The swiss franc really shot up and a big mac cost over 17 in zurich. We will send hans over to mcdonalds. His previous home washington president obama and David Cameron sit down to plot the way forward on Cyber Security issues. Cameron is pushing for help in getting usbased companies such as facebook and google to do more to stop extremists. Phil mattingly joins us now from the north lawn. Is there a specific economic issue these leaders are trying to hammer out . Its mostly trade. That is what you will hear a lot today. Trade agreement that is ongoing negotiations ongoing between the u. S. And eu right now. David cameron and obama pressing hard while dealing with serious the mystic push back on that. They will try to show a united front, a rooted push. Maybe this visit would have ended yesterday after a meeting with Christine Lagarde if cameron had his way. She called the uks Economic Leadership eloquent and convincing. You could cut that up and turned that into a campaign ad and run it all over the place back in britain. Hes having a good week already. There is also always some political history when a world leader visits the white house. His visit comes at a crucial time for him back home. How does president obama handle that situation . It is interesting. Theres two different versions of that. The weight him and cameron would like the president to talk about him today and when the president actually will. The way David Cameron would like the president to talk about him today and the way the president actually will. The president has a Good Relationship with the good prime primus to. They went to a basketball game and do cookouts and stuff like that. The intriguing part is the president s top Campaign Advisers from 2008 and 2012 are deeply you meshed in the u. K. Primates the race right now. David cameron is being advised by the president 2012 campaign advisor. The other is being advised by the close senior adviser. A lot of intrigue when it comes to that. A lot of issues the president has to deal with. A lot about Cyber Security, cyber wargames. Explain this. This is the most interesting part. Because of what happened with sony and what happened in paris counterterrorism and Cyber Security are jumping to the top of the agenda. Top amongst these, they have agreed upon a cyber wargames demonstration. They are going to play out what a catastrophic cyber attack would look like throughout the Financial System. The Security Services will be very closely tied into this. It will be really interesting to see how that all plays out. Something may have been trying to do for a while. Thank you very much. Coming up, Consumer Electronics stores are shortcircuiting. What is happening with best buy and radioshack. Mark is reeling from that move by the Swiss Central Bank of perspective from a very important guest. Jim oneill joins us next. Investors are pulling the plug on radioshack. The stock fell more than 35 yesterday on news the company is preparing for a bank to filing. It may sell its stores to sprint. Radioshack was not alone in its misery. Best buy shares posted doubledigit drop after issuing a dismal warning for the first half of the year. Are these two Electronics Retailers trying to tell us something . I want to bring in craig johnson, founder and president of Customer Growth partners. And julie hyman who covers retailers. You and i have been talking about this for a long time youre radioshack in a much more dire situation that best buy. You kept wanting them to change the name to the drone zone. I think they are beyond hope at this point in terms of avoiding they have not tried anything at all. What have they done . They are a brand whose time has come and gone. Rooted deeply back in the 1980s. They took a big bet on cellular and it has not relate handout. Has not really panned out. Sprint may pick up a few of the units. But not 4000. I was looking back at the history of the company. Radioshack was owned by tandy corporation, one of these early pc manufacturers. At one time, the stuff radioshack sold was really cutting edge. It did sell the first personal computers. Back when used cassettes. It was an early seller of mobile phones at a time when you still had the big chunky products. These look so obsolete now but at the time, they came out and these were hot, cuttingedge products. The time has passed for this kind of stuff. There are a couple of issues. Its commodity products that you can buy online easily. Most of the stuff sells at places like walmart. You can go and by not just these very specific things but Everything Else as well. The two trends that have killed it. Radioshack, we are saying its dead. I have always said they should change their name to the drone zone and sell remotecontrolled vehicles. They bet big on flying helicopters. Now they are getting into the drone stuff. What about best buy . Two stories that are near and dear to my heart. Ive noticed they just dont have the topoftheline products anymore. Best buy is the same thing. You dont even find midlevel audio components there. What can they do to change their business . Audio they have not expended the category. Audio systems have been a nice rebound. The headphones and the sound you have to have external sound. That has been a strong category. The true specialists that go for a place like richfield crutchfield. Best buy overall on a bit of a rebound. This is the first time we have any kind of excitement in the category. It began earlier last year with the iphone 6 and that was still a strong product through the holiday. Flatpanel tvs have had the best year with the four k product coming in. They are in a bit of a rebound. Their cost structure is still high. You dont need these 40,000 squarefoot stores anymore. I have always thought the staff could be improved a bit. The used to call it the geek squad. Now, they dont know very much about their products. A problem across retail to find a good people who are qualified to talk about the product. They are probably not just over stored. Theyre too big in the stores they have. Maybe you might see some shrinking of the footprint to some extent. Best buy did warn for the first half of the year but this is after its holiday results were relatively good. I have talked to some folks who said there might they might be a bit overcautious. I would not be at all surprised if they had Forward Guidance this time. I love both of these stores. Craig johnson, thank you very much. Julie hyman. I will see you later. Stay with us on in the loop. We talk about blackberry, taking a dive after denying a bogus takeover report. You are watching in the loop. On the World Wide Web on bloomberg. Com. Im matt miller, in four betty liu this morning. Investors pounded blackberry shares after the company denied it helped take over talks with samsung. Blackberry rose 30 a day earlier on reports it was an takeover discussions. Tonight that report it denied that report. You wont be able to buy google glass for a while. Suspending consumer sales. It is back to the drawing board to design improved devices. It will function as a separate unit. Fourthquarter profit fell more than 7 at Goldman Sachs. Same story we have heard from several other big banks. Revenue from fixed income trading fell again. Goldmans earnings did beat estimates. At least it is managing the street. Markets are still reacting to the Swiss NationalBank Decision to remove the cap on its currency. The surprise move sent the swiss franc soaring joining us now is jim oneill. Thank you so much for joining us this morning. You did not see this coming. Even Christine Lagarde did not see this coming. What do you think of this surprise . It is quite a drama. With my new i think i am right in saying the move is probably the single largest ever move of a liquid currency since Exchange Rates started. There must be one of two guys one or two guys excited about how much money they made. There must be an enormous amount of blood out there. For lots of corporations in switzerland and elsewhere. This is a huge development. Im trying to think it through. As a personal investor, the swiss policies would have appeared to have a negative view of the ecb situation. One wonders if that means they have any inside knowledge or a very strong view of the ecb or the have come to the conclusion that the eu cannot survive. To take the risk of such a staggering 30 rise of their currency in such an openly exposed country to the borders of germany and italy is staggering. Im talking to a lot of friends of mine to try to get them to stop i cannot see how it can stay here for very long. I saw a note this morning entitled cuckoo clock deflation. There actually made in germany. The swiss only make watches and pocketknives. There wont be many swiss watches made in the future. I can imagine swatch would be interesting to interview. He must be one of many finding it difficult to speak today. Very angry about this. As are a lot of other exporters. I talked to drugmakers yesterday who dont seem to mind because they are based on over the world. One of the things this negative Interest Rate this 0. 75 this was will charge you to hold your money, he thinks over time that has to work out. Much like sanctions on a country , it is a midterm view you have to take care. I was talking before we started it is so interesting because from my experience, it is usually the people that dont have lots of market risk and the best place to benefit from events like this. Given the carnage, many hedge funds for those with week to week or even monthtomonth market risk cannot be involved in any of this now. For experienced wealthy individuals or other institutions, i think this is a huge opportunity. I can imagine two years from today, the swiss bank will be anywhere near this level. We have breaking news. Scarlet fu has cpi . On a monthtomonth basis, Consumer Prices dropped. 4 . This is a pretty steep decline because of the drop in fuel prices. There was no change in Consumer Prices in december from a month ago. Slightly worse than what analysts had been looking for. When you add the headline numbers, stripping out food and fuel prices, it is 1. 6 . The trend for cpi is critical because they have said they need to be reasonably confident that inflation will eventually rise toward the 2 target be get that before they begin left off. 1. 6 on a yearoveryear basis when you back out food and fuel. In the loop jim, let me ask you quickly come in opinion on centralbank credibility at this point. For so long, the Swiss National bank have been saying it will stick to its guns here. Two days before this move, it assured investors it was going to hold fast. To do an aboutface has to get a lot of people very unhappy and destroy some trust. That is true. In the context of the past few years, the financial participants will think like that. Those of us who have been around for a few decades these are the things that happen in life. Go back to the day of the european monetary system, many Central Banks always told us they would never change until the minute they change them. I often regard those as the real fun days when you were trying to bet on the timing of the belgian franc or the swedish currency. The style in which this happened is interesting. A professor who has Close Relationships to the ec