Afternoon, stocks bouncing off the lows, but we have had so much volatility, so much bouncing around of the major averages. Right now, it looks like oil and stocks are tracking relatively closely together. Take a look. This is the intraday basis, and oil and the s p 500, so if you take the bloomberg apparently, we cannot do that, so i can just tell you we have got a Technical Glitch here. We are seeing oil, which has been trending lower. Right now, it is down about 5 on the day. We had the International Energy agency come out today and say essentially that supply remains ample, and, in fact, even more ample than their earlier projections, and then we had the Energy Information administration here in the United States saying that Shale Companies continue to pump more oil than anticipated, so and ite on oil prices, also affected stocks. Now, in terms of the sectors that this is effecting, we are seeing energy stocks, as you might imagine, the clyde. I natural stocks feeling pain following on the heel of Deutsche Bank and ubs declining. And we have been talking about the highlow index, the number of highs versus lows, 52week highs versus 52week lows, there you go, and you can see on the screen that those bars are taking downward at a higher pace. Andave new 52week lows, one of those internals we see of growth or lack thereof in the stock market. There seems, a, sort of ghost in the machine today. People are talking but the prospects of entering the bear market. How close are we with the nasdaq . Bank index has entered it. The nasdaq is getting closer and closer to that level. This goes back to july 20 of last year, and including todays declines, we are down 18 . 20 would technically be a bear market. We are seeing energy really underperformed. This is pretty much neck and neck with the composite, down over 14 , and we have seen it go down. Within the nasdaq 100, the worst performance this year is tesla, which has definitely been having a negative year, and a lot of biotechs have been hit. These are the very worst in the index. That is julie hyman at the market desk. Mark crumpton has more from the news desk. Mark . Mark thank you, david. President obama has sent a with items the republicanthat congress issuer to reject, is sure to reject. Toir president also wants have trillions for tax law changes. It is primary day in New Hampshire. Polls indicate Republican Donald Trump has a huge lead. Four candidate appear to have a spot at finishing second, ted kasich,rco rubio, john and jeb bush. Meanwhile, Bernie Sanders is favored to win the democratic race. He leads Hillary Clinton by double digits, and this bloomberg reminder. With all due respect will have a twoday our special starting at 5 00 p. M. New york time. Transport minister says at least nine people were killed in this mornings headon crash of two commuter trains. Another 90 were injured. Place in then took Southern State of bavaria. They say the area is not easy to get to, making rescue efforts more difficult. General motors and the United Auto Workers plan to help kids in michigan who were exposed to lead, with help for Education Services p. M. Services. At least 60 million is reportedly needed to prevent Water Service shut offs. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. Over to you. David thank you so much, mark. Across industries, volatility still plagues the market. Targeted ipos, and only two ipos have started traded in the u. S. Have started trading in the u. S. , and we are going to with a headof these from Goldman Sachs, and emily set emily chang is there with the Goldman Sachs president. Emily . Emily david, thank you so much. Of Goldman Sachs with me now. Gary, thank you very much. The nasdaq down almost 6 just in the last three days. How justified is that . Cohn we have almost 2000 people here registered, so we are having a great turnout, and i appreciate your being here and having the event. This clearly will have an impact on the private company. When you take a company public, you look at the comparables that exist in the market today, and that is the first inch mark of evaluating any new offering, which is to look at Similar Companies and take your metric from what exists out there, so everyone is watching what is going on in the Public Market. Emily so linkedin, for example. A weak forecast. Is it really half of what it was last week . Knows, even one what it was worth a week ago to get what investors are trying to say today is that cash flow and earnings matter. The market is now maturing for internet and Technology Companies. It is a more mature industry. You start thinking about earnings, revenue, cash flow. Not nearly as much about growth. Historically, the Technology Companies had been valued on growth, and you put big growth multiples on these companies. As we are shifting from a growth multiple to and earnings multiple and a cash flow multiple, we are coming up with different valuations. Yes, it can be shocking to growth a company from a multiple, but it is happening, and it is a natural evolution. Normally, we see it evolved over a longer period of time. For a variety of different reasons, we are seeing it happen relatively quickly with some of these Technology Companies. Emily a revaluation . Mr. Cohn you are seeing a revaluation. We cannot go mean back up to the old valuations, but the market is taking a pause and trying to understand the longterm viability and the longterm wealthcreation vehicle for shareholders. Emily it was said today you are seeing pent up demand because private funding is drying up. Our companys thinking of going public in a market as volatile compan thinking . F going publicies mr. Cohn we will use this funding to grow, which will ofow us to do the next run funding. If you cannot get funding, it changes the premise. You now have to think about changing the model from pure growth to creating cash flow to creating revenue, creating return on capital. If you can create cash flow return on capital, you will have access to the Public Market, and buyers and investors will show up at that point. Historically, companies have not wanted to go into the Public Market because of Public Markets will, at some point, like we are seeing now, they will demand earnings power. Able demand some return on capital. They will demand that you actually create revenue. Do not grow your company forever. Emily then what happens to the ipo volume in 2016 . It happens to m a . How does 2016 compared to 2015 . We will see a pickup in the amount of ipos, but if theyre forced to go public, the question is, will the market allows them to go public . Longduration business model, only they will be able to access the market. In january, we did not have an ipo. Emily exactly. We did not happen an ipo because the flow of funds were not there. You need capital to be coming into the market. If you are an asset allocator today, or you are running a mutual fund or ra week investor, you are probably fully invested or are anor our investor, you are probably fully invested today. A better outcome, you have to be getting positive income in order for those to work, and the ipo is a great place to put them to work. We have not been seeing positive inflows into the market. In fact, we have been seeing outflows. We get a change in valuation of the ipos, it is going to be somewhat difficult for some of these companies to go public. That said, we think we will get a normalization. We think that many of these companies will be able to go public as the markets continue to settle down or when the market settle down. Inly you guys are invested uber. They were called out, saying they should go public now, and i , wimping out, that should be a publicly traded company. What do you think . Mr. Cohn everyone is entitled to their opinion. Uber still seems to have access to capital. A are closing a round right now as we speak. Able to race at an everhigher multiple. Emily an unprecedented multiple. They have cash flow and earnings power. They are doing the things i was talking about other companies doing. Investing a lot of their u. S. Earnings and their u. S. Cash flow in building out their International Business and their china business, but their u. S. Business has proven to be very positive for shareholders. Emily what about liquidity . At some point, investors want to the community, but as long as they are creating value. Where investors will get concern is when you have down rounds, and then investors will start worrying about the community more than they are today, said the companies having trouble raising capital, having a flat round or a down round, that is when you will start hearing i am anou know what, investor managing other peoples capital. I need liquidity at some point. Emily how are you advising him . Mr. Cohn we talk all the time about his thinking on strategy and how he is optimizing for his current investors and for his future investors. Emily does you guys want in on that ipo, right . Because you guys want in on that ipo, right . Mr. Cohn we do, and so do others. Emily a few years ago, it might have been Morgan Stanley that won the ipo. What have you guys been doing differently . Been in san have francisco, in the valley, and we have a great team. We have great bankers. We have been with the client. We have been invested with the client from the beginning with many, many of these companies, and we will continue to be there and continue to do for our clients what they need in all aspects of our business. Emily even more so with Goldman Sachs. A tech company. What is the number one thing you have done to change it . Mr. Cohn look. We had to change Goldman Sachs, for many reasons, for almost every reason you cant think about the gets we have had to change our business because of our clients. The way we interface with our clients, the way we automate with them. It makes their ease of doing business it makes it easier for them to do business, and that is important for them. Ofhave had to change many the processes from a regulatory standpoint. We have lots of regulatory requirements. We have to get those rights every day. We have to automate those processes. We have to make ourselves more efficient. In every part of our business, whether it is running our own internal business, interfacing with the client, interfacing with regulators, we are always thinking about how we can use technology to improve the product and to improve the outcomes. Emily banks are selling off, as well as tech, Deutsche Bank down year to date and others. Why is this happening . Is this justified . Not going to say it is justified, and i am not going to say it is not justified. All i can say is we at Goldman Sachs have to run our business well. We have always said we are in a highly cyclical business. As the world good will say we are at the top and not as bad as the world will say we are at the bottom of cycles. We went to do with the best would be possibly can. The market is now trying to figure out what is going on with Global Growth and what is going on with the Monetary Policy in the United States, and the way they are expressing some of their concerns about growth and Monetary Policy is clearly in the ranks. When the world was convinced that the fed was going to raise rates four times in 2016, banks were the darling of the market. Banks are going to make a lot more money. Say, wait. Y are we are not sure. Interest rates are going down in the United States. Banks are going down in other places. What is the fed going to do . Maybe we do not want to own bank stocks. And then they are saying maybe Global Economy is new not is maybe not doing as well as we think it was. Global gdp is going down. Not be as much advisory business get there will not be as much underwriting business. There will not be much activity. I do not really believe that. There is a enormous opportunity for the banking industry. I know there is enormous opportunity for us at Goldman Sachs. We are out with our clients every day. We are very busy with our clients. Our clients have a lot to do in this environment. Is gettingsche bank a lot of attention. How would you advise the ceo . Every bank has gone through their own situation, in each of us have gone through a unique situation, and the one thing i am proud of at Goldman Sachs and with almost all of the our medicinee took early. We went out and raise capital really early in the process, and then we went out and raised capital a second time, and we did that years and years ago, and we really built our Balance Sheet up. We really do leveraged ourselves, and the enormous the wemmunity, we do leveraged are subject and we to enormous stress tests here in the u. S. , and they stress test the banks in the United States to where no one should question the viability of the u. S. Banks. I think some of the european banks have been slow to get themselves recapitalized and getting their financial Balance Sheet in the best place they can be. What do you most worry about . Do you worry about another lehman moment . Worry the most about liquidity. I think in some respects, we have a bit of a liquidity crisis going on in the world today, and part of the volatility that we have in these markets i think is really a lack of the community in the market. A small amount of buying or selling in any market today has a dramatic impact on price, and when i sit back and look at day now,es, and every whatever market you look at, we have unprecedented moves. If you look at the s p, or you look at the dow, since january 1, we probably have not had a time period where we have this day inspersion of prices and day out. 200, downwn 100, up 200, up 300, down 300. You have to ask why that happens, and we have gone from growth and through cycles where we have unclear monetary fiscal policy. We have gone through all of these cycles. The issue to me is we have never wherehrough one of these we have had no liquidity in the market, so to me, what i really worry about is the fact that there is no liquidity, and when investors and Retail Investors particularly need or want to perhaps get out of the market, their ability to get out of the market may not make sense to them. Emily what happens to oil and gas . Shale and gas . Terms of price . Look. The oil and gas market is its own unique animal. I have been talking about the fundamental picture of oil. We are clearly in an Oversupply Oil market. That has to clear it self up. We believe that will clear itself up as we get into the spring turnaround season. Once we get through spring turnaround, we think we will get to a more rational balanced oil picture, but you are right. There is debt out there. There are companies that are leveraged the price of oil. Those companies will have to go through some form of restructuring, which is quite natural for the market. And othereen this industries before. I think the Financial Markets are wellequipped to deal with this. Last question given where we are at and the need for liquidity. How much stomach does the public have for mega deals . Are we at the peak . Mr. Cohn the private markets . Emily yes. Extent that the companies, private companies, are providing a good or a service that you and i want, you and i need, we cannot live without, and we are willing to pay for it, and they have a model where they can create revenue, cash flow, and earnings, the market will love them. If they do not have a market with products and services that you and i need, and we are not paying for those goods and services, i think it will be a much tougher sale in this market. You will be onn, the stage with sheryl sandberg, another famous ceo, later today. Thank you for being with us. David, back to you. David emily chang, speaking exclusively with the chief operating officer of Goldman Sachs, gary cohn. Now, julie hyman at the market desk. Julie really bouncing off the lows of the session in pretty dramatic fashion. We have seen this out single , whichthis volatility really characterize our recent trading, and i also wanted to look at some of the other Asset Classes to see how they are trading. We are watching oil prices, as well today, as we have been talking about, because we have seen them track with stocks to some degree, but we are not seeing much of a recovery in oil prices, a small bounce, but the bounce in stocks is much larger, the dow still down. Looking at the 10year, the seymour treasury yields, we see 1. 72 , the lowest in more than one years time on the treasuries, so interesting that even though we are seeing somewhat of a recovery in stocks to some degree, yields remain lower, with a lot of pessimism out there. David julie hyman, thank you, at the markets desk. At bloomberg news, i want to talk a little bit about what we at sevenm gary cohn, he was talking about with emily was valuations, and i wonder the degree to which we saw that yesterday influencing the trajectory, is that continuing today, as well . To some degree, it is. On friday,cused, but there was definitely a selloff in some stocks come especially in the nasdaq, especially in some of those tech stocks, but it held up with selling in the past month, and on fri