For coverage beginning at 8 00 p. M. Eastern time. Morgan stanley comes up short on Fourth Quarter estimates because of a drop in fixed income trading revenues. Morgan stanley has been shrinking the amount of capital dedicated to its fixed income and commodities division. The imf has made the biggest cut to its Global Growth outlook in three years. The World Economy will now wrote 3. 5 this year down from 3. 8 and i told her. From a sober. From tober. From october. The medium prospects are down. It is squeezing investment. We think this effect is stronger than the price of oil. The one exception and the forecast is the u. S. The fund upgraded its forecast to United States growth to 3. 6 . We might even best market in the world. The numbers are in, 2014 chinese economy grew by the smallest amount in 24 years but it is still at 7. 4 . It would have been worse had the government not added the stimulus efforts like Interest Rate cuts. Those moves help to boost chinese Factory Production and consumer spending. Schlumberger say is betting is betting and will pay 1. 7 billion in a russian Drilling Company that will give Schlumberger Shay 46 stake and the option to buy the rest of the company in three years. Slayers shares of eurasia are jumping on this news. The deal comes as the slide in crude oil prices is now less than 50 per barrel. Let me bring in isaac arnsdorgf. We knew we were going to see more Companies Going bankrupt but here we have an m a. The attitude in the oil industry is where there is oil, there is money. They see this as an opportunity to get a stronger foothold in the growing market. Tell us about this company eurasia. They targeted Drilling Technology because its in. Where russia needs some help to reach their full potential. Schlumberger thinks that if these are not there permanently, thats something they want to look into. They both reported their earnings, tell me whats the deal . There is this lag. Fourth quarter prices worse till going down. Were still going down. Producers needed to cut their spending. You will start to see more damage in the industry. The fall in oil prices is not been good for the canadian economy but is a mixed blessing elsewhere. We have seen some markets like in the u. S. Lower oil prices is boosting the Global Economy . Yes, the general thinking among economists it should be positive. The winners are much more diffused. It helped a lot of people a little where the losers are very obvious and pronounced. Thank you so much. In other earnings this morning, Morgan Stanley is reporting profit that missed estimates. Income trading revenue fell more than analysts expected. For quarter net income rose to . 40 per share which is down by at least one year earlier. Shares of Morgan Stanley are down right now on this news. Let me bring in dakin campbell. It is sort of the same thing we have seen with Morgan Stanley . Fixed income trading has been a thorn in their side . And this quarter was no exception. It was a bit of a messy quarter. Once you adjust things, they came in at about 599 million which is below every analyst estimate we saw. Thats the story on wall street this quarter. Fixed income trading is not in good shape. Worthy analyst too optimistic . Yes, by as much as 50 millionhundreds of millions of dollars. What factored into that . Across wall street, the credit is miss in the Fourth Quarter did not do well. Morgan stanley has some strength there. It did not do well for them in the Fourth Quarter. They did get an offset. What they call their macro business, rates and currencies did do better in the fourth order so that helped the numbers. It hurt credit. What other parts what stuck out to you . For the first time this year they decided to value their derivatives differently. That changed their bond trading and move their revenues around a little bit. Revenues came in a little bit light just under 8 billion. Thats one reason the stock is down. These banks are having a hard time finding revenue in this economy. And they are dealing with the prospect of Interest Rate hikes . They are still dealing with more volatility but also on the commodities side with oil rices declining . Thats right. You saw that reflected in the Morgan Stanley results . To some degree certainly they and Goldman Sachs are getting out of the commodities business. Last years results were helped by commodities. We did not get a chance to dig into their numbers. To figure out how much oil affected them in the third quarter. Their revenues are being hurt by pulling back in commodities trading. Thank you so much. Be sure to tune into in the loop on thursday because the chairman and ceo of Morgan Stanley will be with us in the 80 am our in the 8 00 a. M. Hour. Moving and shaking this hour quicken loans founder dan gilbert, i spoke with him last week of the role he is playing in revitalizing and reforming detroit. One of the biggest problems is there thousands of rundown homes and buildings. We i didnt to fight in the light report there were 78 thousand that needed to come down. The ones that are coming down there is a lot of talk for the first time in decades of new construction of neighborhoods in detroit. There are projects out for it by the banks and cities. I next year, you are literally going to see for the first time in years new construction in the city of detroit. We are going to hear more from dan gilbert on turning around detroit and getting rid of the light hitting rid of the light light blight we will ask a republican harry wilson, as my guest host in just a moment. Stay in the loop. Tonight, president obama will give his state of the Union Address and it will not sit well with republicans. He plans to outline broad reforms that will include raising taxes on the richest americans while lowering rates for the middle class. Phil mattingly has more. Is the president looking for a fight or does he think his proposals will get through congress . On the tax front, white house officials laid out the proposals. They will go after top earners. They are targeting the 1 primarily on the Capital Gains tax rate. For couples making over 500,000 per year, they would raise the Capital Gains rate from 23. 8 to 28 and would also go after money that is passed down after death. Inherited money they will attempt to apply the Capital Gains rate and go after the largest Financial Institutions the largest ankle get a seven basis points be applied. This would raise 320 billion according to the white house. It has no chance of moving through congress but it does lay down a marker won the white house is happy to defend going forward. It lets it makes the republicans look like they are antimainstreet and antiaverage american if they opposed Something Like this. What about other plans the president will outline . There will be pieces of tonights speech where they will hit areas of compromise. It is trade, Infrastructure Spending and Corporate Tax reform. The president is laying out but the republicans will oppose the individual tax reforms. The white house feels that is an area of compromise they can reach with republicans. On many issues this is a nonstarter pretty republican congressman not touches with a 10 foot pole. I want to bring in my guest host for the hour harry wilson, the chairman and ceo of a construction group, a republican who has a wise the white house on the automobile bailouts under president obama. You have also run for Political Office in new york state. Are you disappointed with what the president has outline so far . Absolutely, who knows what will happen tonight . The president has two years left. He spoke clearly in november that he will have republicans to deal with and he should be looking at two or three things which will have bipartisan consensus. Corporate tax reform is clear. Free trade is a clear why partisan consensus. There are three things that will be helpful for growth that he can lay out and reach across the aisle and create a new foundation for the next two years that hes refusing to do that. Corporate tax reform is something both sides can agree on. There is some element or it could be beneficial for republicans to look not only at Corporate Tax reform at individual tax reform. The republicans dont want to look like they are just out for Big Companies . The most logical tax reform is holistic. Its easier to make this revenue neutral across a order a broader set of policies. The republicans are looking to reduce the rate of corporations. They want to do that in exchange for closing loopholes. What is wrong with raising the rate on Capital Gains taxes . Some have said they are far too low for too long . Most people would agree that the economy is fragile. Creating hired taxes especially for the 99 . Despite the rhetoric, the policies of the president have been bad for middleclass americans. If you look at his Approval Ratings and where wages have been for the middle class, americans have stagnated or declined on a regular basis. Income disparity those of the autumn have done a a relatively speaking because of things like obamacare. The middle class has been squeezed and that is true economically as well as politically. I think the president is approaching this to try to drive the rhetoric when his policies have held the middle class. How would the white house respond to Something Like that . They are not going to argue with a lot of that. There is a recognition in the white house that lower income americans the recovery is not there. The broad topline numbers from unemployment and gdp and the stock market, everything looks great. Over the last six years, the people who have not felt that are mainstream middleclass americans. I think thats why the rhetoric is to go after them. The president has seen his Approval Ratings bounce in the last eight weeks. They feel that is a message that can take hold. What you hear from Congressional Republicans is you are trying to take pieces of this. They want to have a broader impact as a whole and the white house is not closing the door but they want to set down a marker. There is a recognition this stuff will not go forward but they want to at least set down that marker politically. There are other issues that will be outlined. Lets get your take on three things that are likely going to be outlined number one is the gas tax hike. Maybe the resident micromet with more openness maybe the president might come out with more openness to pay for infrastructure. Would you support that . There is no chance republicans will support any tax increase. If it was revenue neutral, they would look at it as part of a package. In the absence of broader reef form so off the table even though oil prices have gone down 50 . It may be a shortlived phenomenon. Its ironic that the people who would air the burden of the gas tax are the middle class we were talking about. Is that likely going to happen that the president might be open to this . I would be surprised. The white house is primarily very wary of touching this issue. They have been open to it that never open shall he or publicly probably there preferences to go for the loopholes. Republicans have made clear it looked like there may be an opening there initially. Paul ryan and orrin hatch closed the door on this in the last two weeks. White house will not get out in front on this they dont really have the republican support. I would be surprised to hear the president talk about that tonight. The second topic is health care, obamacare. He will say its working. He will talk about the reduction in the uninsured. Republicans will continue to oppose it. How do you feel about it . I think it was a bad policy. It would have been much smarter to try to deal with the uninsured. Theres the rate of Health Care Inflation and the case of uninsured and you could have addressed more and a market friendly way by vouchers for folks who dont have health care and provide them the ability to i health care on their own. On the other hand, demand has been the problem. I hear the same argument that this happened at the beginning of obamacare. Both sides of not moved. What about trade . What do you expect . He has an issue in his own party. People in the Democratic Party are opposed. As a result, this is another example where he needs bipartisan support for expanding trade. Its an opportunity whether he does it on a regional basis is a is the best way to approach trade. Approaching asia on a broader free trade zone is an opportunity. That could he a great longterm move if the president reaches across the aisle to get i partisan support. You will be my guest post for this hour but Phil Mattingly thanks for joining us. He will have a late night on the state of the union. Dont forget to tune in tonight for the state of the Union Coverage that starts at 8 00 p. M. Eastern time. It will be followed by a Bloomberg Politics preview at 9 00 p. M. Eastern time. You are watching in the loop. More european banks are now saying a maybe hurt by the end of this half on the swiss franc. Credit suites may take a hit because clients dont have an collateral to cover the losses in trading. Shake shake wants to raise 1 billion. The chain has more than six to three outlets in over 30 cities. 63 outlets in over 30 cities. For us, its like, why are we in every city . Why are there certain cities that it does not work . It starts with old transportation rules that are governing essentially an analog economy. Later this week, he will meet with eu officials about the legal challenges uber is facing around the world. Two hours before the state of Union Address tonight, michigan Governor Rick Snyder will launch his second term agenda with a state of the state speech, when the many governors across the country are giving on creating jobs and boosting growth. He has one thing many others dont, hes got a billionaire businessman who will stop at nothing to help restore a bankrupt detroit. Quicken loans founder dan gilbert and owner of the Cleveland Cavaliers has spent up to 1. 6 billion to rebuild motor city. We went out there last week during the auto show to catch up with him and talk about one of the biggest issues plaguing the city, it is moving the old abandoned homes. We identified there were 78,000 that needed to come down. With the ones coming down, there is a lot of talk now for the first time in decades of new construction neighborhoods in detroit. There are projects out for bid by the land bank and the city. By next year, you are literally going to see for the first time in years, new construction of residential neighborhoods in the city of detroit. What is the timeframe to remove all the blighted buildings . Blight is like a cancer. If you dont remove it all, it grows back. You go into a neighborhood and there is 100 blighted homes and 50 are removed but there are still 50 more and there are residents theyre looking and seeing that and knowing that affects their property values. They make decisions whether they should stay or leave. You have to get rid of it in the shortest period of time possible. In our report, we identified 850 million to remove the 78,000 blighted Residential Homes and neighborhood commercials. Unless you get one big shot and do it in one year come it will it be hard to permanently remove the blight . You have to be very strategic about it. There is a 385 page book we put out. We have a detailed cadence of the way we recommend the task force to go about prioritizing. You identify which neighborhood you go to an sometimes you want to go to the neighborhoods that have a very good chance. They could go either way. What is your timeframe . When will it be success . Its not fair to look at a city this size to snap a picture and say it is all successful or not. There are pieces and parts of it. There are challenges under that we have miles to go. Is there some benchmark . When a private investor asks why they need to invest in detroit, is there something specific you can say to them . What i say to them is if youre going to invest, you better go with the number one economic rule of the world which is buy low and sell high. The idea is to invest ahead of things hitting the bottom. We are seeing people from every state in this country and certainly from overseas now coming in. You have put in about 1. 5 billion dollars into real estate in detroit. Would you be willing to put more in . Sure, the more you dig it, the harder the ground gets. I would not say there are outright opportunities everywhere that were here four years ago are as a parent. There is a massive opportunities in many places but its not like it is falling off the trees. You are already seeing some returns . Yes, maybe its shocking that we dont take an inventory daily. We are really in this longterm. We believe there is a return and we believe what we buy will have a higher market value than what we put into it. We are on the ground floor of this mission. We want to keep the growth and inviting other companies to become part of this. Our buildings here, the office space and everything, we have 96 occupancy. Thats pretty high. Let me bring back harry wilson who is the chairman and ceo of mava group who was a member of the task force that held out that bailed out some of the automobile companies. You are at the automobile show as well at the same time last