Long this weekend. No. You want to rein in your horns . If i want to buy something, ill buy protection and in the puts and vix but i wont go long. Are you going to be buying what hes selling, Matt Cheslock . If you want me to. No way im throwing in the towel now. The market has gone away from me. Im going on the same premise as ben. Volatility has been awesome as far as trading goes. A 170point reversal. Dow down 116 on the open and then even more than that. Wonderful trading down here but maybe a sign of a little bit of a top. You feel we are getting a distribution top here. Not accumulating. No way im going home long. The sky isnt falling from sequestration so thats a good thing, too. Were focused on hoops right now. Got a little playoff game. Good to see you guys. Have a good weekend. Pleasure. 15 seconds left. The dow up 25 points, a volatile week comes to the end. What will the month of march bring . Well resume that again on monday. Have a good weekend. If i dont see you later, maria continues now with hour number two of the closing bell. And it is 4 00 on wall street. Do you know where your money is . Hi, everybody, welcome back to the closing bell. Im Maria Bartiromo today coming to you from the Equities Trading floor of barclays headquarters in new york. A reverse afl fortune today on wall street, the market erasing early session losses to end the day and the week in the green. Well have to wait at least until monday for the elise you have new record for the Dow Jones Industrial average. We did end with gains, as you can see. The Dow Jones Industrial average on the upside as was the nasdaq and the s p 500 on the heels of an earlier selloff, the market reversing those numbers by the close tonight. Closing out first day of march and the eve of the sequester deadline with modest gains. With us today stephanie link, cnbc contributor from the street. Mike queen and michael dayad and kenny pulcari from oneill securities. Stephanie, interesting market here. Teflon situation. The sequester just did not matter. What do you think happens now as we get into march . Its how impressive this week that were even up at all given all the uncertainty that weve had, with italy at the beginning of the week, continued concerns about what will happen with Monetary Policy down the road and then sequestration. Even Economic Data was kind mixed this week but the pillars of strength have been housing and manufacturing and the consumer, and we got good data points this week on all fronts. In fact i thought the ism number was very impressive, particularly the new orders. Consumers, they are actually hanging in in terms of auto sales and retail sales and if Oil Prices Continue to come down, maria, i think that group can continue to work, so i think were in better position to handle the uncertainties, and i think what you want to do is certainly take profits when you have them but go back to these areas when these stocks and sectors get hit, this is where you want to be buying. Mike, would you be buying . Want to put new money to work in this market . We actually would. We think stephanie made some very good points. We know were in march and the fund manage remembers thinking about the reports they will put out the end of the first quarter. They are largely underinvested. They will continue to fund the market so were not worried about the next 30 days. What about earnings . I mean, the next 30 days will be the end of the first quarter. Michael, what are you expecting in terms of firstquarter earnings . Are you expecting preannouncement . Is that going to be the lever that takes this market reversing course . Maybe. I think in general theres a pretty strong conservative bias in terms of continuing to see surprises on the upside. Its the riskoff trade thats been getting a bid. As ive been saying to my 25,000 plus amazing twitter followers, the market is broken. Someone has to explain to me if were so excited about dow new alltime highs why are yields on the tenyear back to 185 and dividend sectors outperforming, and why is it when you look at a price ratio of small caps to large caps, those areas most sensitive to domestic growth expectations, when you look at that chart were seeing underperformance kick in in high beta names relative to Global Growth large caps. Very significant weakness that means that at some point the grayhaired bears are going to come back roaring. Its interesting that you mentioned 185 on the tenyear. What are your expectations there. Any reason to believe that were going to see a spike in the tenyear, and what would be the rate that would concern you the most . You know, 2 has been kind of the panic level i think on the tenyear. What would actually concern me is if the 30 year breaks 3 , then i think you have a very strong risk off and deflation pulls. Theres a complete inconsistency here. Told that the bond market tends to be much more ripe for the stock market and nouveau bulls cannot see how much is in equities. I just look at the earnings have been pretty good, much better than expected, and its a stock pickers market. Look at the stocks that actually started to outperform when the market was falling this morning, which ones were doing well. Those are the companies that posted good solid strong earnings like an adt and chicago Virgin Island and eaton. People will go back to the stocks that are delivering in a tough environment. And those have been largely lower beta sectors outperforming. Not consistent with growth. Thats not really truth, but, okay. Whats not true, stephanie, that they are not low beta sectors . I certainly wouldnt call Chicago Bridge and iron a low beta name. From an average perspective. I put out a led league, the low beta sectors have been outperforming while the dow is nearing the alltime highs. Staples have done well, utilities have done well. There is your opportunity to look at some of the companies that did well in some of the cyclical areas for upside. Financial is one area, especially headed into the stress test coming up. And the stress test coming up, thats just in the next week or so, and well probably see Dividend Increases. Kenny, i want to hear your take on what went on at the end of the day here . Listen, we had a lot of consolidation between yesterday and today. Early part of the week, all the volatility and the market is really trying to find itself. It was preparing for this anxiety over sequestration which we got nothing of, and i think the market is just telling you its not really concerned about 40 billion in cuts over this year and 40 billion next year. I think that were going to were stuck in this 1,500, 1525 trading range. I think as it pulls in, like stephanie said, you look at some. Names that get overly beat up and jump back in, the ones that keep delivering, financials for sure, consumers and i like even the industrial names, infrastructuretype names which i think will really do well. And where are you seeing the conviction, kenny, in terms of consistent buyers . Which sectors or stocks . Well, from my point of view and customers that im talking, to i see a lot of activity in financials and technology. Financials and technology certainly have been the leadership in 2013. Go ahead, michael. Im just saying our high net investors are risk averse and asking us to focus on technology, energy and health care where they feel the Balance Sheet strength is and where the dependable earnings are coming from. What would turn the situation around . Mean, we know that we have a couple of cat lifts on the horizon, continuing resolution and end of the month earnings season when the quarter ends march 31 and then the debt ceiling debate. With the fed right there sort of continuing to tell us that they are going to keep rates where they are, is there any reason to believe that any of that matters . Do fundamentals not matter right now . Not really. I think the fed is still driving the show. Well see that lift all the boats. I dont see any reason to fight the trend right now. And i would agree with that and i think Central Banks around the world are running the show, mario draghi, the fed, the ecb and the market is being artificially stimulate and thats where the disconnect is and why individual investors get frustrated because they see the market attempting new highs but on the other side they dont feel the robustness of the market turning around. The disconnect is in the deflation that no one is focusing on and that makes it a very, very risky juncture in the here and not, not for the year, but a very short juncture where behaviorally its acting like were in the midst of a correction. If you look overseas, everything is weak. Monetary policy around the world is going to continue so i would just say, maria, one thing to be concerned about or just to watch for would be the strong dollar because if that continues, then your earnings story certainly has some some hair on it, if you will, but for now these companies are able to offset it with better pricing. Thanks, everybody. Have a god weekend. See you soon. The document for investors big and strong, Warren Buffetts annual later has been sent and what did buffet have to say this time . Warren Buffetts Berkshire hathaway reports, here are the numbers. 1704 per share. Misses the estimate which was 1755. Per share book value increases 14 hadnt 3 . Underperforms the s p 500 by 1. 6 . Only the ninth time in 48 years berkshire has underperformed the mark. The second disappoint in 12, buffet saying, pursued a couple of elephants and came up emptyhanded. Todd cole many and ted weschler outperformed and left me in the dust, buffet writing in very tiny font. Maria, back to you. Thank you so much. The first trading day of march in the books. A lot more action here on the closing bell. Ill talk exclusive with the ceo of barclays to talk about the Global Economy and the state of banking today and automatic spending cuts to kick in between now and midnight. What does it really mean for you . Does the other side have the real story. Well talk about that when we come back. Back in a movement. Thank you welcome back to the special edition of the closing bell. 2012 was a controversial year for barclays. The raterigging scandal taking its toll on the firms global brand. Financial standing and it cost former ceo bob diamond his job. In the Fourth Quarter the bake announced a major reorganization that will cut close to 4,000 jobs, close several Business Units, and this is just the beginning. The new ceo Antony Jenkins said theres no going backed to the old way of doing things. Antony joins me now to tell us about his new plans for barclays. Thanks for joining us on the program. Thanks for coming to barclays. Another active day with the markets the way they are. These Capital Markets have to be a positive for the firm regardless of, you know, putting this new transform reorganization aside, whats been going on in the market has to be a positive for the firm, no . Yeah. Were happy with the start to the year. I think it got off to a very good start in january and continued into february. Seen a bit more volatility in markets this week because of what was happening in italy, but by and large its been a good start to the year and were cautiously optimistic about the rest of the year. Lets talk about your plans, you have said the plan is to get beyond the missteps. You are launching or you have already launched a restructuring call transform, project transform. Tell me about it. What are you trying to achieve is. Two weeks ago we launched the transform program and the program is designed to deliver what i call the goto bank and thats just the place a big customer or a big client will come to to do banking business. Theres really two key parts to t. One is about delivering a return on equity above the cost of equity for our shareholders. Thats really important to them, laying out a clear plan around cost and capital and the other part of it is about doing business in the right way so we can sustain those returns for our shareholders over time. Thats what the program is about. When you say doing things the right way, i mean, you were doing some things the right way before, right, but the libor scandal obviously has become the cloud and the trigger for you to make this change. Yes, thats true, but i would say that across barclays we have 140,000 people who come to work every day wanting to do the right thing. Partly this, of course, is stopping bad things happening but equally important its about powering the strategy forward, creating the right culture to deliver for our customers day in and day out and to do that in what will be a much more challenging environment going forward. How do you do that . This is an enormous trading floor, just this one floor and youve got others. Yes. How do you get that culture and everybody on the same page . Just about being clear what you expect from the organization. Communicating to people and holding them accountable and recognizing and rewarding people doing a great job for customers and clients, doing great work inside the organization and thats how you change culture. Its do believe. I recognize that this have a very, very controversial here in 2012, a big hit to the firm and you want to make a big push that this is transformative. I was talking to an analyst at morning star who said barclays plan to exit four Business Units is representing a combined 1. 4 of revenue. Its just not that big of a deal. Well, maria, since i did the launch two and a half weeks ago, ive spoken to over 30 different groups of investors, and the feedback that ive had has been overwhelmingly positive on transform. What we did is broke the business down into 75 different units. We analyzed them through a strategic lens and through a financial lens, and actually we said 39 of those Business Units are just fine. 36 of them need to be changed in some way, either repositioned in their market, costs reduced, portfolios sold off and businesses exited and so on so its a little bit more comprehensive than the analyst was quoting, and i do think that this is a very important time in barclays 320yearold history. Are you still in it . Do you still have cutting to do . I think weve announced the major cuts that are going to happen in the foreseeable future. Weve remained committed to our major lines of business around the world. Investment banking very important to us and cards and payments, retail banking, wealth, Corporate Banking and to our major gearing physical here in the u. S. And again very important to us, the united kick dom and africa. Let me ask you about that. I want to ask you about africa. I know this was an important part of the world and ill get to that in a moment. What about the cost of these issues . I know that the new normal in your business is lawsuits and youve got, you know, carryones and the regulatory issues begin and then investors and lawsuits follow. How much is this going to cost . I know you talked a bit about this with analysts and in your strategic review. One analyst is talking about a 10 reduction in profits on account of regulation. What is the regulation headline risk going to cost you . So, weve baked in our expectations and the cost of regulation into our plans for the next three years to the extent that we have clarity, and i do believe theres much more clarity around the big regulatory changes and thats baked into our plans. Thats why were can have dense dent in making the commitments and we can get our returns above the cost of equity in 2015. A lot of investors were happy that you didnt really take the knife to the Investment Banking business. Thats the golden goose, the real moneymaker. Why, and tell me what your vision is for that part of the business. So actually, maria, when we did this work we looked at each of the 75 unit to decide whether they were businesses we wanted to be in and whether we could make money out of them. There were many units in the Investment Bank that passed those tests and were very happen we our Investment Bank. Its a big part of the group. It does things which are really important for large companies, Financial Institutions and governments around the world and we think that we can do that in a way thats good for our clients and also good for our shareholders so we intend to be committed to that and will be one of the very, very few global Investment Banks in the world. Could you worry that eventually youll have to split the businesses up, that theres real financial changes going on in financial services, regulators all over the world and regulators in europe are thinking Something Different than the u. S. Regulators. How do you keep this firm together knowing theres pressure on the too big to fail and splitting off plain vanilla banking from Capital Markets and investing . We have discussed this before and we are operating in a fundamentally different atmosphere than the one that affected the industry in the last 30 years. More regulation, more nationalism and certainly a weaker Macro Economic environment. We took all the factors into account when we did the strategy, and we think this is the best way forward for our shareholders so we can deliver the returns that they want and give them the diversification this a universal banking model beginnings. When i was talking to various investors, stakeholders, analysts, many of them questioned your targets. I know youve got to put the bar up here in terms of where you want this firm to go, but in terms of profitability, 2015, 16, what are your targets and a lot of people questioning if in fact your targets are too high . We expected quite modest income or revenue growth. Were committed to take 1. 7 billion pounds out of the cost space, an absolute reduction of 1 billion pounds from the 2012 number and that allows us to be confident that we can deliver a return on equity above the cost of equity in 2015. Thats the main commitment that weve made. Weve also committed to progressively increase our dividend over the time period and, of course,