Ceo. And what an incredible 24 hours. Culminating in this a new ceo. This is just a day after the government sold off its remaining stake in the big automaker. Its announced its first ever female chief executive. Who is she and whats ahead for the automaker now . Sue is off today but that means i get to spend an hour with melissa lee. Hi, melissa. My pleasure. You said it, crisis over. Steve liesman reporting the fed will get ready to taper as early as next week. You take a look at the three tests the fed had out there, which was fiscal uncertainty going away, confidence in the outlook, along with the notion of Interest Rates, all seems to be give the fed leeway to do this. Its more likely than not it could be january, but you look at how Interest Rates have behaved and we were talking earlier the bond market is saying the same thing. Absolutely. I mean Morgan Stanley was saying 2. 6 to 2. 9 on the 10year yield is pricing in a move december or january. Whats happening to the short rate and the answer is absolutely nothing. Thats the thing that gives the fed leeway. Talk about crisis over and these people which i think they are raising their hands clapping but hands up for bread, i dont know. A budget deal in d. C. As we said. A big deal for the fed in terms of getting that fiscal uncertainty out of the way. Taper beginning is a sign of normalization but folks, dont get too excited on that. A very long way to go. The volcker rule in place. Replacing one uncertainty the bigger when igs this going to happen, is it going to happen with the smaller uncertainties, 800 pages with what does this mean for banking, lending, the macro economy. Now dont get too excited about this either. Mortgage debt rising, diana olick our ace housing reporter points out thats because of fewer foreclosures out there. That means that. But still normalizing and flat and not declining anymore. Government out of gm. Call this the tail bone of t. A. R. P. , the vestige that was out there. Thats progress that is done and out of the way. Europe stabilizing. This much growth. But it was two quarters of growth and we havent seen two quarters backtoback growth in europe since 2011. And the china data supportive of a europe stabilizing that story. Thats key to watch that. If we could get the economies around the world, the big ones firing on all cylinders that could be a game changer and you have as we reported earlier this week, rising Household Wealth and that if you combine that with confidence, may be you have a breakout for the consumer next quarter. In terms of the fed its not important when they taper but what they do with the Unemployment Rate threshold as well as the inflation threshold. I dont think they touch that, melissa. They dont. Until they feel like the market doesnt believe in their promise. So youre saying of lower for longer. Taper without an adjustment. Until theres a sense of fear out there from the fed that the short end of the curve is not behaving. All right. Steve, thank you. My pleasure. Tyler, to you. Thank you. Our next guest is a legendary market player whose insights are among the most lilly regarded and listened to on wall street. Bill conway cofounded the Carlyle Group 26 years ago and live at the Goldman SachsFinancial Services with Kayla Tausche for a rare exclusive sit down. Kayla . Thank you so much, tyler. Bill conway cofounded the Carlyle Group in 1987. He remains its cokey but a visionary on the markets. Who better to get his take on where we stand today. Thank you for being with us. Thank you. Steve liesman is reporting the fed is likely to taper ins december. There seems to be a lot more fiscal certainty in washington. Is the overhang gone . What do you where do you go from here . The economy is in much better shape and has been for the last year or so healing gradually and i think the healing continues. Steve liesman might know more than i do when theyre going to taper or decide to do that. I think the qe has gone on long enough. And do you think its been effective . Its gbeen going on four plus year, done a lot of things but the critics say its created this divide among the haves and have nots. I would say the initial moves to qe were absolutely essential beginning with t. A. R. P. And the really saving of the banking system, the automotive businesses, aig, the cret is businesses as well credit businesses as well. Progressively the impact of qe impacts have been less effective. Theyve still been great for the Mortgage Market but i dont think theyve done as much good and i think it is time to begin to taper. You mentioned the auto business. Big news for gm. The government fully selling its stake in the automaker even if its at a loss and a new ceo coming in today. Youre close with dan akerson but what do you think of gm at this point . I own some gm. I know you always ask people on the show, do you own anything. I do own some of the stock in gm. I bought it after dan becames the ceo. He was a partner of carlisle for seven years before he went to gm. And ive known him 30 years. I think hes done a great job. I think gm has healed. Its 15 quarters of consecutive profit. Im sure they still have a lot of other things to do. Dan had a personal situation that made it so he had to leave. The recovery of gm is something that as americans we can all be proud of. One of the tail ends of dodd frank regulation came out today, the volcker rule. Its been highly anticipated by a lot of banks but a lot of other companies have benefited. Carlisle, other private equity firms include. What do you take away and how has it benefited you . I dont know that it has benefited us all that much. Having more intelligent regulation will be a great move and hopefully well get that. One benefit, a small one thats come for carlisle, were actually able to attract more attractive people now because a lot of them are leaving the big commercial banks and want to work for people like the private equity firms. Youve been able to attract a the lot of business to the units that some of the banks are selling off, Wealth Management units, energy units. Thats something that the carlisle has been big on. Some banks are selling commodity units. What are you looking at . What assets are on the block . Some have been great. We bought Natural Gas Partners from barclays, so all these banks have been preparing for dodd frank and its impacts. Today were continuing to look at some but none i can talk about now. Okay. I want to talk a little bit more about the emerging markets because we saw some pullback, some very strong pullbacks earlier in the year on reports that the freg Federal Reserve could taper by the end of this year. You have a lot of presence in the emerging markets. You started investing in china over a decade ago. What are some of the unintended effects of the taper that you could feel in your businesses there . I think tapering could really hurt the emerging markets. When the threat of tapering was here in the summer the emerging markets equities went down, debt went down, currencies went down. Hopefully theyll be better prepared for it this time although i still think it can be rocky. Of course the biggest emerging markets is kind of europe which i think will do okay with the tapering. Weve been very active there lately. Its been a great place because most people are afraid to go there . An oped you wrote in the wall street journal nowhere can my firm invest in companies with as much confidence as we do in the u. S. There is healthy assets but growth. If you were in the u. S. Market this year you did very well, where are you putting your money right now . I still think the u. S. Is the best place to invest. Its hard to find attractively priced transactions in the United States but the Energy Revolution is real and i think Energy Related assets are very attractive. Wave been very active here. I think were going to continue to prices are high in the United States. Youve been selling almost everything in your portfolio you can sell but buying not that much. 13 billion you just raised in your most recent fund. Are you going to have a hard time spending that . For 26 years weve been investing mostly in the United States and i think that although it can be episodic and sometimes better to invest or not im confident we can get that invested. Well catch up with you when you do, bill conway cofounder and co ceo of carlisle. Thank you for being with us. Back to you. All right. Thank you very much. Kayla tausche there. Breaking news in the bond market. Lets go out and talk to Rick Santelli track the action, threeyear notes up for auction. Rick . Absolutely. 30 billion threeyear notes out the door, the grade, demand grade top of one, aminus. A solid auction. 3. 55 the bid to cover. 3. 55 submitted for every dollar worth of securities available. Gives us a demand picture. The best bid to cover in ten months. Indirect at 38. 4 was strong. A little light at 12 on directs. The yield. 631. Well within the bid offer the one issue market a solid auction even though the directs were a bit light. Aminus. While wall street braces for the fed to begin scaling back its easy money program, new rules approved today that its proponents say will at least scale back if not eliminate risky trading. Eamon javers in washington with details. Eamon . The volcker rule designed to ban prop trading by the big banks and others but there are exemptions to the rule that they rolled out today. Let me walk you through the five key exemptions here in this volcker rule starting with underwriting. Banks will be allowed to do underwriting but positions must not exceed what theyre calling reasonably expected demands of customers. Second market making. The trading desk inventory may not exceed what they call that reasonably expected it term in terms of the demands from the customers. Risk mitigated hedging, allowed under this plan, the banks will be required to document the hedging rationale. That means theyve got to explain what theyre doing, why theyre doing it and put it on paper and send it to the regulators. You will be allowed to trade in government obviousligationoblig debt, state and muni debt allowed, and certain trading activities of foreign banking entities will be allowed as well. Those entities allowed to trade as long as the risk is held offshore out of the United States. So all of that, guys, those are the kind of exemptions that we have here and melissa, iflz say theres a lot of subjectivity to a lot of this. They will have to make a lot of judgment calls as they go through enforcing this new rule as it rolls out over the next couple years. Eamon javers thanks for that. The qe pullback near the volcker rule in place, a budget deal close in d. C. The government out of gm and europe stabilizing is the crisis over and how do investors play the market . Bring in bob pisani and kenny polcari, bob, think were going to first with news on the otc market. The important thing here today is the otc markets went down again today earlier in the day, 1115 to 1220 eastern time. Spoke with them, they are back up and running. This is where a lot of the companies that arent large enough to trade on the major markets trade like fannie mae and freddie mac and some of the adrs like volkswagen, for example, roche, they have cited a technical glitch. This is the second time its happened in the last month. November 7th was another time it went down. Ill keep an eye on that. Back to the crisis, kenny, and how to play it. Some can argue [ inaudible ] in place 08 and 09 and now sell the news sort of phase. What do you stand . I think the fact that the crisis is beginning to be over, disagree with st. Loueve liesma terms of tapering in december. I think there will be more clarity about when it will start next year. The market is telling you its not expecting it in december. I also think that 2014 will be a stronger year. Were seeing it not only here, we are seeing real growth, we are seeing things Getting Better in the states and the sense from economists and strategists that 2014 will be another strong year. Maybe not up 27 where we are but moving aand with europe stabilizing i think that all plays well for what 2014 is it the key here it doesnt matter whether its now or january, steve mentioned that. We have a budget deal, looks like its happening. A major obstacle. Were moving in the right direction. Gradual improvement in the economy. The key point here is can janet yellen, convince everyone that tapering is not tightening. Thats what we might hear very much on that. Thats what we need to do. Tapering is not happening in december or january. Under any starncircumstance s i expect them to lay the groundwork to make a clearer delineation. Lets head to dominic chu for a market flash. Check out shares the stock at session highs. The company says a late stage trial of its experimental hepatitis c therapy showed 96 of patients in the study showed improvement. Yesterday Gilead Sciences had its own pill approved by the fda. It is considered by Industry Analysts to be the leader in the all oral hepatitis field expected to reap billions in annual sales. Its stock is moving lower so competition perhaps having a hand in that trade. Dominic, thank you very much. More wintry weather hitting the northeast. Three to six inches of snow expected in some parts including the metro area of new york. Weather channels jim cantore has the latest. Reporter i expect to get hammered on by snow when im out here. That did not happen here in baltimore, at least in the downtown area. North and west, 20, 40 miles, 70 miles, anywhere from 4 to 6 inches of snow. And actually it was a rough commute coming in. The winter storm warnings verified swimmingly. Here in the downtown area, we didnt snow at an intense enough rate, right around 3 degrees, we needed a couple degrees cooler to get this to stick. You can see where it did stick on the grass. Now the piles that you see, all right, that one, this one, that came from sundays little overachieving storm we had where we had exactly 1. 6 inches at bwi airport. Either way travel was horrible to say the least this morning along the i95 and many routes north and west of the major metropolitan areas. Cool off for thursday, big chill, teens, piles like this will become solid ice chunks and as we look into the weekend, another winter storm comes calling. This one more than likely for new york, d. C. , philly and baltimore. Will be sleet changing quickly on over to rain. Guys, back to you. Thank you very much. Media stocks have been on fires this year. Check out time warner, where i used to hang out. Its up about 40 . Never did that when i was there. Whats ahead for the media giant in 2014. David faber has an exclusive with the ceo next. Plus, a day after the government sells its remaining stake in General Motors big news the automaker announces a new ceo. The road ahead for gm. And its stock. [ male announcer ] alka seltzer plus presents the cold truth. [ coughs, sneezes ] [ sniffles ] i have a big meeting when we land, but i am so stuffed up, i cant rest. [ male announcer ] truth is, nyquil cold and flu liquid gels dont unstuff your nose. They dont . [ male announcer ] nope. They dont have a decongestant. Really . [ male announcer ] really. Alka seltzer plus night fights your worst cold symptoms, plus has a fastacting decongestant to relieve your stuffy nose. [ inhales deeply ] alka seltzer plus. Oh. What a relief it is. [ male announcer ] cant find theraflu, try alka seltzer plus for fast liquid cold and flu relief. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Welcome back to power lunch. Lumber liquidators at session lows after the Hardwood Flooring retailer provided lower than expected fourthquarter Profit Guidance in the 2014 Profit Guidance well below wall street consensus estimates. Lumber liquidators showing weakness in the trade. Back to you. Thank you very much. The ubs Media Conference is under way in new york city and there youll find the top media ceos have gathered to discuss the changing face of the business. David faber joins us now from the conference where hes joined by a special guest. Hi, david. Hi, tyler. Thats right im joined by the chairman and ceo of time warner, of course. Nice to have you stop by. Good to be here. Nice to have you. I would love to start off on affiliate fees, particularly what you call monetizing your programming rights with carriage fees. It becomes one third of this companys revenues, once the spin of time is completed. Youve got six of ten of the largest distributors signed up, four more to go. Some the audience are worried about your ability to extract significant inkreenss and whether you will face a blackout from one of these providers. I dont think so. Dont worry. Were quite respectful and conscious of the needs and economics of our distributors and thats why weve been able to sign six out of the ten already. Remember some of the Biggest Networks in the United States. Youve got cnn, tbs, it tnt, cartoon network. So this is a valuable group of networks and i dont see any problems with this. Our distributors are finding this valuable and thats why theyre signing up. Remember the other thing, video on demand is most important advance in tv. Its important to everyone. Happening on the internet, happening on your living room. We have the biggest grant of video on demand rights for all of our networks of any network group. So thats another reason why were making this a better deal. This is important to the growth of the company, something investors have seized on over the last year, one reason your stock has done well. You remain confident you can continue to extract those increases. Youve been talking about doubledigit increases. Its going to work out for them too. Theyre going to make more money. You mentioned on demand and interesting comments in your presentation moments ago. Video on demand rights are now ubiquito ubiquitous, all the distributors have them, but you seem to criticize parts of the c