Exercises. Activists say such drills hamper reunification efforts with the north. North korea called the attack just punishment against american warmongers. Hillary clinton says she wants the public to see her emails. Clinton has asked the state department to release the messages she sent from a personal account while she was secretary of state. Mrs. Clinton is being criticized for using a private system for business. She wants the state department to screen the emails and delete any sensitive information. The Justice Department is demanding changes in ferguson, missouri. The police force is said to be motivated by making money for the city. The report says Law Enforcement unfairly targets blacks in the st. Louis suburb. According to our investigation, this emphasis on revenuegenerating generated from Police Practices has contribute have intruded into constitutional violations. Nearly every level of fergusons Law Enforcement system. Betty the investigation follows the shooting of an unarmed black teenager last summer. Erin wilson was cleared of civil rights charges Darren Wilson was cleared of civil rights charges. J and j lost the bid. A blockbuster treatment for blood cancers. The deal is the first for abbv ie. The latest blast of Winter Weather is grounding flights again. It is shutting down the capital. Governors in four states declared emergencies. Federal offices in and near washington are closed today. The total of canceled flights is at 3000 and counting. Those are your top headlines. To cyprus. That is where policymakers are meeting today. One of the two meetings held away from their headquarters in frankfurt. The euro is now trading at an 11 year low against the dollar. The ecb keeps Interest Rates on hold. Mario draghi is going to be speaking. Investors, listening closely for details on his 1. 1 trillion euro stimulus program. John ferro. The data is out this week showing that europes economy is taking its theme in the right direction. Is this going to change any of the plans mario draghi has for qe . Very unlikely it will change anything. I sit here in the sunlight and i think he can enjoy himself. The data is starting to firm up. Credit conditions are starting to turn as well. Finally, they have announced quantitative easing. Im going into that News Conference in 25 minutes. I want to know what is your appetite to buy debt with a negative yield. Oppose the kinds of things i want to find out. Those are the kinds of things i want to find out. Betty you have also been working the ground and talking to Business Leaders in cyprus. What are they telling you about the ecb and how they see the economy in europe . This is a country that is at the fringes of the euro zone geographically, it is closer to syria than it is to frankford. This country has been through a financial crisis. Deposit sieges for the people of cyprus i spoke to the ceo of the biggest tank in cyprus. He says, we are not involved in qe until we push forward reforms. Q email not make difference at all. Qe may not make difference at all. Betty what is success when it comes to here . They are worried the flechette will become entrenched. They also want to get lending up from banks to companies so they can change the credit conditions. Before they have bought a single bond, look at where the euro is trading. Is it about pushing down the euro . If that is what they want to do by any means, this is a success before they purchase a single bond. Betty jonathan, thank you so much. Basking in that sunny glow. Euro trading at an 11 year low. Janet yellen spoke broadly about efforts to ensure financial stability. She also took aim at ethical lapses at large banks supervised by the fed. These incidents in their totality raise legitimate questions of whether there may be pervasive shortcomings in the values of large Financial Firms that might undermine their safety and soundness. Betty the fed announces the first results of this years stress tests of the big banks. It is survival of the fittest. You pass or you fail. I want to bring michael moore. They are going to disclose privately today who the banks are that pass and fail the stress tests. Why are they so important if they are done every year . Michael they will announce it publicly. It is important because it gives us a preview for next week when the fed gives banks the true pass or fail grade on you can return this much capital to shareholders. Today, we get the preview of how they did in the tests. Betty we see the results and then we get the grade. Michael it is a couple kate a process. A complicated process. For banks, this is perhaps the biggest level they have for capital returns and posting there are oe. Their roe. This is their only chance to get approval to return some of that capital to shareholders through dividends and buybacks. Betty is citigroup going to be the one with biggest spotlight on them . Michael michael corvette michael corvette has said if we do not fix this, it is on me. They did not fail for capital reasons or on the number side. They failed on the qualitative side, where the fed says we have questions about your process. That is where they have tried to fix of the last year and we will see if they are successful. Bank of america questions they failed a few years ago. People are looking at them closely as well. Morgan stanley recently, because of a settlement with the department of justice, their capital came down. That has raised questions on whether they can return as much capital as people originally thought. Betty we will give ratios today. Why do we need the announcement next week . Arent we going to be able to figure out who passed and who failed . Michael what we will not have today is how much the banks ask for. We get how they did and on top of that, the banks can say, given how we did betty this is what we want. Michael that is what we will get next week, whether they got approval for that. Today, we get in a crisis, how these banks would hold out. That has become less of a question. In 2009, that was the main question. Now, last year you had 29 of the 30 above the minimum in this first round. Most of the banks are in decent shape. It is a question of how much do they get to return. Betty are these tests sufficient . I know there was criticism about that. Michael the fed has ramped up these stress tests. They have two scenarios and the severe one looks like 2008. Betty thank you for joining us. Michael moore of bloomberg. Moving and shaking this morning is j. Crew ceo Mickey Drexler. He has opened the latest international store in paris. We felt the next step was paris. Paris to us has always been the style capital of the world. When you get to the city and feel a certain quality about everything that is done here. It has been on our list. We love the district where we opened up. Betty extolling the opportunities of the french market. It is extremely tough and challenging in the u. S. Forgetting the current weather excuses excluding the west coast. You have been reading about what is been going on. Apparel business of the last 10 months has been very difficult. Very promotional. It is not simple. Betty Mickey Drexler of j. Crew. Brooklynbased at sea island for an ipo could be the largest filing for a new york taste tech company new yorkbased tech company in 16 years. Reality hits. China assess the lowest economic target in more than 15 years. Details, coming up. Betty top stories this morning. China has announced its lowest Economic Growth target in more than 15 years. The premier says he wants the economy to grow 7 down from last years goal of 7. 5 . China faces a number of challenges like a real estate slump. He wants a more efficient economy but he also a dressed the issue of corruption. Our tough stance on corruption is here to stay. Our tolerance for corruption is zero and anyone guilty of corruption and be dealt with seriously. We will see to it that every instance of corruption is seriously punished. Betty strong words from the premier. The slower expansion is tolerable as long as enough jobs are created in china. The euro weakens to an 11 year low. The move comes as investors wait for more details of the European Central banks bond buying program. Mario draghi started his press conference in 15 minutes. The euro fell against its counterparts. Stocks in the region rose. Oil has gained for the third day in new york. Etsy file for filing for an ipo. The company is hoping to raise 100 million. Etsy is still losing money after 10 years even though its revenue rose last year to almost 200 million. You will have to wait longer for that larger screen ipad. Apple is going to start making the 13 inch ipad this quarter. That has been pushed back to september. There are delays involving the supply of display panels. Apple hopes the device will jumpstart ipad sales because they have fallen for four straight quarters. Iphone six plus . Maybe that is why. Peyton manning is planning to play football next year and has agreed to take a 4 million pay cut. He will be playing for less to help the Denver Broncos create cash but stability to improve their roster. Manning can reclaim the extra 4 million through teambased incentives. Those are your top headlines. As we await the latest job numbers it is all pointing up in stocks. Dow, 20,000. The next number four my next guest. He says stocks are still undervalued even if billionaires think we are in a tech bubble again. Jeremy siegel is the professor of finance at the Wharton School at the university of pennsylvania. He is the offer of the bestselling book, stocks for the long run. Every time we talk, you make the case that we are going to go higher. Make the case that we are going to see dow 20000 when almost everyone i have talked to says that profits are going to go lower. Prof. Siegel we are closer to fair market value than at any time over the last five years. My calculations say that the dow 20,000 is fair market value. It is higher in terms of the pricetoearnings ratio than the long run averages. Once you consider Interest Rates and even if the fed begins to raise Interest Rates, they are still lower than the average of the postwar period. My calculations say we could have 20 times earnings and that gives us gets us pretty close to doubt 20,000. That is why i say it is fair market value. In the short run it could go down to 16 or 17 before it gets there. It might take two years instead of one. Betty is that the peak . Even though the fed is going to start raising Interest Rates once they do, the trend is going to be up. Does that mean doubt 20,000 is your peak . Dow 20,000 is your peak . Prof. Siegel when the fed starts raising Interest Rates, it may be june or september, bull markets usually continue anywhere from nine months to 2. 5 years after they begin to raise the rates. Beginning to raise the rates does not signal the end of the bull market. Speaking to your question about earnings, earnings have been challenged by three factors. The collapse in oil price. We have the high dollar. We also have pensions. A lot of charges in the Fourth Quarter and extending through 2015 because of the low Interest Rates and the increasing and increasing the age of assumptions that pensions must use. This happens every four or five years. Those factors they are onetime factors that i do not think will continue to hit earnings in the coming years. Betty lets talk nasdaq 5000. It has got people talking about whether we are in a tech bubble or not. I referenced mark cuban. Here is what he says about why he thinks we are in a worst tech bubble. He says if we thought it was stupid to invest in public internet websites that had no chance of succeeded back then it is worth today. The bubble today comes from private investors and companies that have zero value. What do you say to that . Prof. Siegel i think he is referring to private equity. The funding that we get for new ventures. I dont think that is referring to the public market. We may argue that Twitter Facebook and some of those they are still making profits compared to 2000 when these companies were on the exchange and not making any profit. The pricetoearnings ratio of the nasdaq back in 2000, i saw one on a bloomberg screen that i use, was up to 600. It is 30 today on 2014 earnings. That is a huge difference. Betty you will be back with me because we will get jobless claims numbers in the morning in a moment. Well be right back. Betty two things to watch out for. The live shot of the room where mario draghi is about to hold his press conference in cyprus. He will be explaining more about the 1. 1 trillion on buying program. Jobless claims will be out at 8 30 a. M. You just heard from Jeremy Siegel on why the doubt is going to hit 20,000 by the end of this year why the dow is going to hit 20,000 by the end of this year. Scott brown, chief economist at Raymond James who is one of the lowest predictions for jobs growth at 170,000 jobs created. Consensus is at 235 235,000 jobs. Scott joins me now. Why such a Bleak Outlook for february . Scott i think the outlook for jobs is still strong. You have some bad weather for the month of february. Also, you tend to get seasonal noise. The payroll number is based on a statistical sample. It is accurate to plus or 105,000. We could see a number print as low as 95,000 or as high as 3005000. There is a huge amount of certainty a huge amount of uncertainty. This was an extraordinary pace of job growth. A 4 million annual pace which will be hard to sustain. Betty why is that . Scott these are statistical numbers. It is not unusual to see the numbers go above trend over the short term. Maybe a bit lower in the longer term trend. The numbers will bounce around. I would not describe this as particularly weak even though i may be at the low end of expectations. Betty you economists never want to come out as bears on the economy. Scott i am very bullish on the economy now. The drop in gasoline prices that we had from the middle of last year is and him promise is an in norm is positive for consumers. That will help drive the activity in the spring. You look at january and february, a lot of seasonal adjustment issues. You have some weather that can move the numbers around. As you get into the spring, Construction Activity will increase. Firms will be hiring. Betty i want to bring in other economic numbers we had this week. A sampling of what we have seen. The numbers have not been outstanding professor. Personal income under shot. Personal spending, also underestimates. Manufacturing at 52. 9 was underestimated and so was adp reports. What do you make of those kinds of results that we have had only for this week . Prof. Siegel one of the most puzzling and i would like to know scotts opinion, we have had such strong labor market growth. Such poor gdp growth. It is like a disconnect. With the labor growth we have been having, we should have gdp growing at 5. 5 a year. We will get the productivity number tomorrow. It is going to be 3 . The bigger question is why has productivity lagged . That is why we are getting those numbers. Betty we will get productivity in a few minutes. Prof. Siegel it will be today . I think it is going to be a very bad number. Scott the productivity numbers will bounce around a bit. They are relatively unreliable on a shortterm basis. We are looking at a trend where productivity growth is slowing down. I am optimistic that is going to pick up. Demand increases in the spring and summer. I dont think gdp growth has been all that bad. 2. 2 in the Fourth Quarter. That is because you had a pullback in government spending. Defense spending in particular. Slower inventory growth, wider trade deficit. Prof. Siegel we had one Million People in the Fourth Quarter. 2. 2 growth . No way. Scott that gets back to my main point. The type of job growth we saw in the numbers, that is a statistical sample. If you look at the trend over the last year, 3 million pace of job growth for the year seems reasonable. I think there is statistical noise there. That is not really a sign of weakness, that a statistical noise. Betty what is it that you think is going on, professor . Prof. Siegel i dont know. I have never seen productivity and gdp growth disconnect so badly from labor market growth. We have been teaching as professors something called okens law, the relation between how much the employment rate goes down and gdp goes up. Theres never been a disconnect of the magnitude we have seen over the last two years. Im trying to figure that out. I wonder if scott had any ideas. Betty some numbers are out. Jobless claims are. Scarlet fu has more. Scarlet an unexpected increase. We have an unexpected increase to 320,000 brings us back above the 300,000 level. We just got productivity too. What we have is a revision downward but not as bad as some economists anticipated. It is a drop of 2. 2 for the Fourth Quarter. Previously, it was reported as a drop of one point 8 . Many economists were looking for a drop of 2. 3 . A less severe downward revision. Unit labor costs, revised upward after a previously recorded 2. 7 . This is the direction economists have been looking for. All this as we head into the friday jobs report tomorrow. Betty thank you. A quick wrapup of those numbers. I want to get back to scott and jeremy for a beat. This unit labor cost is interesting. It raises that other question which is, wage growth. When are we going to get this wage growth that will allow the fed to start lifting rates . Scott i think there is plenty of slack in the job market even though we have had strong job growth, you look at the unemployment population ratio and it is below where we were before the recession. Some demographic issues. Still a lot of people that can be put back to work. A lot of people on the sidelines, not officially counted as unemployed. A lot of people are underemployed. College kids, working at starbucks who could move up as the economy improves. Other people would come in to help boost things along. On the jobless claims, there is a weather affect. Initially when you have bad weather, you often see claims go down. People who can