The government started a three hour delay. A lot of workers here, youre seeing sidewalks being cleared off. Things were dicier earlier this morning and thats why things were in a delay. Enough to really slow down everything. Dc Public Schools were on a twohour delay. Theyre open now, but my kids are texting there are only five kids in class. A lot of people had to be creditive getticredi creative getting to work. How tough was it to get to work today . Piece of cake. Im used today this. Im meeting with students. I have to get there. Youre ubering to the metro . Yes. We could be getting a little snow later in the day, but theyre saying about one inch. It is a modified schedule. Were told over 500 flights were canceled. You want to check your flights again. It is supposed to be very cold tonight that could mean slush and freezing rain mess could freeze over. The big blizzard. For more on the travel impact, were talking thousands of Flights Canceled. Bob crandall, it is always good to see you. Im good, how are you today . This is somewhere in the top quartile of disruptions, are Airlines Getting better at this . They are, and i think this is kind of interesting. As you know, the forecast was for a lot more snow, a lot more upheaval than there actually was. Now theyre in the process of deciding how quickly can they recover and put the crews and the airplanes back where they belong. This is the side of the theater you go through each time when it occurs. How bad is it going to be. How quickly can we recover. Bob, how different would things be today if the forecast got it right. Is there many more flights. The weather is still bad, there would be some flights cancelled, but maybe not on this scale. You would find lots more cancellations over a longer period of time. So i think, my guess is, because i dont know, each individual carrier will manage it, things will be back to normal sooner than a worse Case Scenario that would have developed. If people realized that we were only going to get what we got, my sense is that a lot of these were canceled in advance. Because they thought it would be worse. Of course, that is what makes this an interesting one. In years past, i think people were more inclined to take chances and leave several of the carriers some years ago. It is in very serious straights and they didnt cancel enough soon enough. When that happens, you have aircraft out of place, then you cant recover. It is easier, than i think for the long run, better for the traveling public to cancel too much rather than uncancel. Thinking about the impact on the various airlines, and theyre all being hit by this, do the bigger airlines, the more diversified airlines, fair better in these selections, does it not matter. It will obvious i will be a different differential. So the areas will be exacted more adversely than others. But the particularized impact in a given area is the same from one carrier to the next. Going back a couple years, we were in a period where the sector from a share standpoint was beating a lot of the benchmarks. It has not been the case certainly this quarter, and really for 12 months or so. What has changed. Are we watching limits of capacity efficiency . Is it about oil. One of the things that i think is most important is that we have failed year after year after year. We have been working on this now for two decades. Most other countries moved to a more efficient way of managing their inflight operations. We have not done so. Were getting way behind. If you fly between the United States and canada today, talk to pilots, they will tell you the canadian air Traffic Management system is Lightyears Ahead of our own. I think that is having an impact that is unquestionably making it more difficult for the u. S. Carriers to use their equipment and their crews as efficiently as they should. We need to get on with passing the bill that is now in congress. Shusters bill which would in effect establish a Nonprofit Corporation to manage inflight operations. Youre saying that is having a direct impact on the airline business. If it passes, what kind of a boost do you anticipate youll see . Unfortunately youre not going to see an instantaneously. If that bill passed, and we got a Nonprofit Corporation set up in 2017, you would see an Immediate Impact in 2018 as operations became more efficient. That greater efficiency would compound itself in the years beyond 2018. I have a question about this big data. A decade or more we didnt have the data that we had now or the ability to react as quickly. Having the right plans in the right places. People focus on days like today when things dont go as expected. Over all, has there been a real productivity increase based on the quality of weather data we have now, and the ability to sort of move assets around more quickly because of technology . I think there is no question that there has been, one of the things that we need to be very careful about, however, is you know you heard a lot of discussion about infrastructure and most of the infrastructure discussion tends to be about bridges and roads and so forth. U. S. Weather satellites need to be replaced. We have not been investing sufficiently in weather forecasting satellites. Were going to lose some of the information and data we have today. That is a very important piece of infrastructure, always not often included in that discussion. We cant cut government so much that government can no longer do the things that only government can do. Finally, bob, we had you on before. I think it is fair to say you have been critical of then president elect trump. Markets on a tear, deregulation, opens for legislation coming in the next year or two. Are you impressed. No. Im afraid im not a fan of the president like every other citizen. I hope he will succeed because having an unsuccessful presidency is not good for the country, but i do not agree with the various thing ls he is doin and most particularly we are to trade lower taxes for people like me. Less medical care for people that need it. Certainly that is the debate of the day, bob, its good to have that cbo storm. Well see you soon. Hope you will, see you then. Lets go over to john harwood who has results from the business round table ceo. The snow we have been talking about is keeping them from meeting here. They are just releasing this morning the results of the krshs eo Economic Outlook index and it is bullish all around from these ceos of major u. S. Corporations. First of ul, we have seen the highe esest quarter to quarter in 2009. We have seen it above the historical average for the first time in two years, and we have seen double digit increases for sales, hiring, and capx in executives. Former white house chief of staff. The ceos are responding to early indications that the administration will support job creation and investment improvements in the washington environment legislatively. As you just indicated, were having a big debate right now on health care. That is in some doubt. I still believe the prospects for a Corporate Tax cut later this year are bullish. All right, well see. They want to do Health Care Reform and taxes in that order. Tensions rising between turkish and european leaders between a key election for the netherlands. Lets get right to steve segwick who spoke with the prime minister, steve. Yeah, there is real tension growing. There used to be about immigration. About concerns for immigration, islam, and the eu as well. Because the turkish have a key president ial referendum where they want to grab more power for himself, he is sending them out for himself, but they said no, your ministers cannot speak and there was rioting because they refuse to let two ministers from turkey speak. The tensions have built up. The dutch and the jer mans nazis which is a big call from them as well but he accused the dutch of standing by during this massacre in 1995. I got the reaction from the mime minister rutte. In turkey today, it is increasingly hysterical. He has now met a historical and unwise remark. And it is totally off of the mark. Rewriting officially, unacceptable. There are so many issues that come up here about eu immigration, the relationship between turkey and nato member, and the dutch, and the germans also nato members about the flow of people from syria. Millions of syrians have basically fled the country via turkey. And about eu concessions. The april the 16th election, and that is why we have that massive collision right now. It will be a big story for you guys and for us. As we go to break, take a look at shares for valiant today. Millions of shares being sold. Stock as you can see around 1061. More squawk on the street continues, down is down 71. S p is down half a percent. Lets go out to scott walker with an early read on what is going on. Shares near session lows down near 12 . Not surprisingly it will be a big topic on our show today. The big saga of bill ackman getting into val yant aiant and getting out. Stock went up and now getting out at 11 and change and the conversation i had with big yesterday where he said look, i made many mistakes when it came to valiant. The biggest was not selling 18 months ago. And really started the onslaught of the stock going down. That day when an investigative report came out. The stock went down 35 on that day alone, and bill told me yesterday that his biggest mistami mistake of all, among many, was not selling some 18 months ago. Not seeing the writing on the wall, and admitting he didnt really understand the problems inside valiant until he got on the board. You see all of the problems and youre limited in what your options can be. He also told me that once he had a chance to sort of see the company through some changes, he is obviously in favor of the new ceo joe papa. They made changes on the board. He feels the company is in a better position to recover in the future. It just didnt make any more sense to send all of the time he was spending on valiant that even if the stock doubled or tripled it would not move the needle enough to spend all of the brain power and the investment any more. He says it required a large investment in resources. And he is trying to spend the time for the betterment. To save from a precarious position. People are weighing in today on what exit means, and were going to discuss that as well with an analyst that has been on the negative side of val yaian vali while. He was really contrite when i talked to him yesterday. Maybe in a way that i had not heard him in awhile. He freely admitted many mistakes, and he emphasized many. He said i made many mistakes on the way, but i want to be clear i think i did my best to put the company in a position now to be in a position to recover and succeed in the future. It is great color, but a lot of investors wondering why now. What it means for valiants future. Had when we come back, the company teaming up with apple to produce their first ever tv show, planet of the apps. First, rick santelli, whats on your radar today. The first day of a two day fed meeting. It is baked in the cake that we will get our third 25 point basis increase. What will it do in the markets . Those are questions well discuss after the break. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Its that time for the santelli exchange. The first day of a two day fed meeting, this one like the last two decembers, has a lot of traders with intensity that well see in a move from the zone from 75 to 100, right . We may know that, but how are you supposed to drad it. When you look at the yield curve and you look solely at the twoyear for the two year, just started out around 50 basis points. In general, and it made it to around 100 basis points when tightening to 60 in junish. But we all know what happened in july of 2016. We went down to 135 for the historic low matching 2012. Then, many didnt believe they didnt see many tightenings, but there was plenty of communications from the fed to the contrary. Maybe thats what were supposed to Pay Attention to. If rates were rugs we have seen them pulled out from under the market several times. This one really feels different. It is a lot of economic growth, so theyre saying look for the short end to stack. It seems to be what is going on these days becaus because wereg close to 140. Here is where it gets interesting. Even though most think youre going to stack it all along the curve, if you get two more hikes, there is another 50 basis point you have to add into every maturity. But there is b wild cards here. We have issues with banks even though on a higher level, growth year to year is improving. What does that mean . If we had a flight to safety and a tightening fed environment, it might effect their strategy, but it will most likely tack the lighter end of the curve. Flatteners are the wild card and with the yield curve, growth, inflation, flight to safety, Central Banks and their balance sheets, but this time for the next year or so, the yield curve will give us a couple surprises so say the traders, john fort, back to you. Always surprises, thank you, risk. Flight aware ceo, daniel baker, will join us, were back in just a moment. At fidelity, trades are now just 4. 95. We cut the price of trades to give investors even more value. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Good morning once again, everyone. Here is your update at this hour. North korea threatening the United States with mercilous attacks if they i think fringe on their dignity. They say it is part of a scheme to attack it. Plumes of smoke rising above western mosul as they continue an offensive to oust isis. They vow it is only a matter of time before they defeat them. The department of justice says the victims of the june 2016 mass shooting at an orlando nightclub will get 8. 6 Million Dollars for emotional support. And former House Speaker john boehner will get a medal from japan. He received the award from shinzo abe from his office in tokyo. All right, back to you, thank you so much. Normally at this time we would be wrapping up the european close for you, but due to u. S. Daylight savings times, they will be closing at 12 30 eastern. The british pound is down half a percent, almost to a twomonth low. The latest hurdle to teresa may, cleared by british lawmakers, so now she is free to invoke lrl 50. It is expected to be a very messy, very intense twoyear period of talks, guys. The british pound falling nicely into my visit, but seriously there are a lot of quest about how the talk will go, and the ftse going down. Yeah, sounds like end of the month, but time will tell. Yes, she is free to do it now. Potentially the end of the month. Were also going into a dutch election tomorrow. Were watching those markets carefully, and the french polls as they start their first round of reporting. And stella is still hitting the east coast hard. It has caused thousands of flight tracancellations. The storm is moving further west, bringing with it, both snow and sleet. Joining us now is the flight aware ceo daniel baker. The reddest spot on the mess ri map is new york followed by dc and boston. How bad is this . It looks less man than we expected here in new york. Is this a big sales moment for you. Are people getting premium accounts so they know how they can get from a to b. We are hearing that the weather perhaps was not quite as bad as forecasted. But in order to make sure that passengers are accommodated and flights are not getting stuck in the problem areas. The airlines canceled a large number of flights. 8,000 Flights Canceled so far this week. 5500 today. Virtually every flight to and from the new york city area is canceled. So it is crippling travelers. We estimate that this week over 400,000 traveler wills be impacted by all of these cancellations. It is a tough storm that starts in chicago yesterday. We saw a third of the flights that are slowly making their way east and northeast. It impacts a lot of people the inaccurate alerts saying the flight is leaving in 20 minutes, and it is leaving 20 minutes from now, and then it keeps rolling. Do we just need more accurate reporting into the Services Like flight aware. Yeah, they call it the creep, right . You know it is ultimately a twohour delay that gets dolled out to you in ten or 15 minute increments. The airlines, in the case of the big cancellations tend to be pretty good at saying 24 hours out look, its not going to happen. In the events that youre talking about, where it is just slowly creeping out there, we do need more information. Something that you can do, it is called track inbound flight. Where is my plane doming from. That allows you to track the airplane coming to where you are to take you on your trip been we have all been in that situation where youre sitting at the termin terminal, looking at the gate, and waiting to load but there is no plane there. So if you can track your inbound flight on flight aware, and you see it is not arriving for 30 minutes, you can go to the restaurant, go to the bar, and make better use of your time, but you have to have a little savvy and now that you can do that. I had no idea. Thank you for educating us on that, daniel. Which airlines are seeing the biggest amount of cancellations. Today, it is just across the board. Were seeing virtually every flight in and out of new york canceled. The international operators, and then it is just across the board from boston to dc. There is no good airline to be on right now if youre trying to get to or from the northeast. With the airline con ssolidatio they have more hubs. If youre going from the west coast to europe, or connecti, yu can look at their other hubs. Change your routing, and connect some place else. Avoid the northeast entirely and take advantage of the Larger Airlines that youre flying on these days. Have you noticed over time regarding the northeast corridor, are they more or less parable with weather . Are they quicker to issue a full ground stop giving precip or snot. Theyre facing a tarmac delay rule that is new legislation that requires them to pay a huge fine if they push away from the gate and live the passengers. Its not practical, an