That apollo group will buy chuck j. Just. And then with citigroup, now sayingite going to replace all customer debit cards involved in data breaches at target. The New York Times reports that the bank did not place the cards sooner because it warchblted to minimize disruptions during the Holiday Season. Yeah. United health is is tha jacket on . I think it might be at this point. Revenue, 3311. 2 billion. I dont have the right number to compare that to. Net margin, 4. 6 . Watch pretty closely now, given everything that is happening in health care. So the full year guidance that were getting must be for the next year. Which i dont have any right lane issues. The company said it was highlighted this quarter by the vong and consisteneeeen and its too early to tell what its going to do. Might be a 24 cents so or. We will look at the press release a little more deeply. Its a dow component, but we dont jump for this one like we do a ge or a is Comcast A Dow thats what i dont get. No. It is not a comcast component . Did you see the new building . I did, in philadelphia. You dont have any upset at i have this is skylion is beautiful will be liberty. And the fooufr of a gleebl mine of of this sli shroff. By the way, that is haunted. You know who else is there . Ben franklin. Also the liberty bell. Its not in good shape, part of the infrastructure. Cracked. Blackrocks chairman and Ceo Larry Fink is here. Larry is out with his better than expected quarterly reports today. Thank you for having me here. Joe, thank you for the geography question. Have you been to philadelphia . I havent. The bell is broken. I dont know whapt it broke, but during your lifetime. Dont start on me. I was just telling you to have company the size of blackrock. You really do. Yeah. The last few weeks, it has gone up in the high. But yesterday was not a new high. But were in the realm. In that case, if you look at what this stock has done since it became public and theres no reason to be modest here. Were here talking about its up 9. 90. Thats a new high, siptd it . I didnt see that. How much was the stock up since the ipo, larry. I had it at 14 on october 21st, 1999. But its up 21 times, even in the last its kicked into high gear. You were there to take all the business away from the people that we used to think of as the old wall street. Well, old wall street didnt manage money. Yeah, but they wouldnt talk about blackrock like they do now. Id say to say the financial crisis was good for you, but you are the preimminent wouldnt you . I would say we are a predimness i assume goldman was in a very good position for the fwurch. Morgan stanley has positioned themselves quite well. So theres some great institutions. But you had a unique become in the the big problems. My legacy was in the Mortgage Business and the jurassic make air what of obviously. Have a time . Vanguard is a preeminent mutual company. Youre not going to heir him id like to finish my sentence. Go ahead. Im just saying and investment, great investment firm, wellington, jpmorgan Asset Management. I could go on and on and on t. The. But hes will the forty quarter. But you obviously where people people are money their known. Byproduct, it was a very mixed picture. So throughout the year at atfs, we had about 74 billion of equity in inses in our mutual fund business, was our position in mutual funds here in the United States and throughout the world. Where we had about 38 billion worth of growth last year. We had about a mix of 14 billion in growth and bonds and growth in multi asset and growth in equities. And then a rally in december, it was really generated by the three balancing mechanisms. And i think i spoke about publicly that we are seeing companies who said such large profits and equities needed to ask themselves do they want to have such a High Percentage in Asset Allocation and equities and the answer was i need to be more balanced. So what role does that play . There will be a great rotation, but the great rotation will be in bonds. The problem with bonds, the core bond index, which is the barclays aggregates index, 85 of a Price Movement is based on duration. The problem is, do you want an interest so linked to Interest Rates . If you believe this Interest Rate is going to have higher, this is going to be a painful index to what were sitting in. But hear is lets say hooiked to essential vite mention into more importantly, into a new category which we call unconstraint, where the industry saw 60 billion of inflows, we had about 10 billion of inflowses. We believe this will be the Fastest Growing area. What is that, unconstrained. Last year, it was up about 2 . Our individual fun where the index was down 2 . So there is a good example of the opportunities you have in investing in things that are not tied to a duration of a core index. Larry, lets talk about what you see in the economy because youre concerned with europe, more concerned than you have been in some time. Right. Why is that . Well, i think that the u. S. Is going to get stronger and the u. S. Is getting stronger primarily because we more rapidly fixed our banking system. Were Getting Better because or companies are sitting in a lot of cash and i believe the outlook in the United States is stronger. So youre going to see more investing in Capital Expenditures in 2013 than you did in 14 than you had in 13 and 13 mvp. The cost of electricity, the costs are higher. Were in an intensely beneficial position. Europe, on the other hand, is still going through their third round of a bank stress test. In europe, youre still seeing banks deleveraging. Thats one of the problems. Small businesses are having a very difficult time in europe getting any type of loans. And then europes Energy Policies are just terrible. Natural gas in europe is 12 versus trading around 4. 30 today. Blackrock is a good example. We have disagreed to build a new data center. Were building et in corporation with new york state. Its going to be in buffalo. Its hydro electric so its grooerchb green injury. And were generating electricity. In germany, its 46, 48 cents a kilowatt. So the cost of manufacturing in europe is just so much more costly than what it is in europe. This is one of the reasons why youre hearing from many executives on looking to move businesses out of europe into the United States. And i think that trend will continue. In addition, you have chancellor merkel. She needed to what i would say move somewhat left to get her coalition. So this is not its a contract, but they have it finalized in germany. But germany, her coalition has agreed to lower iing retirement age and increasing minimum wage. Now, i pound the table about loj longevity and people are living longer. I believe thats going to be the major crisis worldwide. I dont think the trend of shortening retirement age is the right trend. If anything, we should be educating all of citizens about the benefits of longevity and the opportunity to work longer, to have a more productive life. And so i think its going to totally wrong way. What about the minimum wage . Youre someone who can identify lawmakers here in the United States. Theyre punching for minimum wage. You dont believe its the right thing to do in germ snee . I think theres other ways of helping the men and women who are in need of finding ways to hire income. The worries i have about raising minimum jobs, which something is taking away things regardless of what is on the computer. Well be eliminating quite a few jobs. Youre seeing in so many bitses job elimination that are low wages. We cant just say were going to raise wages without thinking about what the impact will mean towards acceleration in technology where low wages are. Weve already lost, you know, telephone operators. We can go on and on and on how we have evolved through technology. I actually believe and this gets back to my longevity issue. I believe we need to be we need to have a National Debate about a mandatory savings policy, retirement policy. And then such as the one in australia for the super Immunization Fund that companies actually contribute to the retirement. Parttimers and full timers have to have Company Participation in this. And so instead of focusing on maybe minimum wage, focusing on ways of building pools of money and saving for retirement. We probably would be a better longterm solution, but it would not stimulate the economy as well this year the. Okay. Many people could. I think youre right about companies leaving europe. I have to buy these things, these three prong things apparently. They still dont have normal prongs over there. If i were a company, i wouldnt do business. Joe, what is a normal plug in switzerland is a three plug. Thats what i mean. Thats not an this is why companies are leaving over there. This is why people live at home. They cant get normal plugs. They have no shower curtains and no plugs. They dont have plugs. O, if you go to our countries. Joe, today hotels provide those plugs. You dont have to buy one. No, mine is providing a few ton. No carpeting. Shower curtain . Whats a shower curtain. Gary hasnt been to davos. Are are you staying . A nice place. Would it matter if i put in a cot in your room . I think i have room to put in a full king side bet for you. Coming up, pe cant get it plugged . You would hear how each company has different plugs for their devices. If you bring the right one, you dont have the threepoint prong to put it in over there. At airports, they have those plugs, too, by the way. I know. Its 2014. I think you need a raise to pay for that plug. I will. Lets get involved with some retail results on amazon and Weather Channel. Plus, well get the Weather Channel for after this quick. For 54 a share in cash, theyre using those coins that you actually get at chuck e. Cheese. Squawk box will be right back. [ man 1 ] were now in the approach phase. Everything looking good. Velocity 1,200 feet per second. [ man 2 ] your looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. Welcome back into squawk box. Alex wallace here with your national forecast. Starting out this morning, more fog in the east. Fog advisories, including boston, visibility down to half a mile. Quarter of a mile in some spots, as well. That could make travel difficult this morning. Parts of the south, chilly times in florida. Were talking temps in the 50s and 60s. For folks in the sunshine state, it is chilly. We have windchill advisories. Then weve got clipper snows. Another fast moving system diving into the upper midwest. That will bring us slight snow showers. You can see the totals out there through saturday morning, generally going to be in that one to three inch range. Could see some higher totals in far southwestern parts of michigan. And behind this, were going to be bringing in some colder air across a good chunk of the midwest. That he is thats our national forecast. Back to you, becky. Alex, thank you very much. Lets check on the markets. Weve been looking at the futures. After yesterdays gains, theres a few red arrows. Dow fuchs down just about 13 points below fair value, s p off just by over 2 and the nasdaq is yielding. 89 claims. A couple other headlines, the house approved a governmentwide 1. 1 trillion budget deal. Also, the National LaborRelations Board has issued a complaint against walmart, arguing the retailer violated labor laws by taking action against striking workers. The nlrp is alleging that protest activity no, no. I think that does not i think that meant walmart. I have to get a new teleprompter guy. Blackrock is on the brain. And finally, my apologies, larry. Finally, an update to a story we discussed yesterday, a small group of workers at an amazon voting not to join a union. The online retailer has been opposed to any kind of thirdparty representation for its employees. We had that discussion yesterday about whether 30 people would do it. Were back with our special guest larry fink from blackrock. One thing ive always grappled with is where Interest Rates go and who really grapples with that. I dont understand why a if we see an improvement in the economy, people automatically assume its going to go up. If there was know inflation, is that true . And the other thing is there a can the fed, even though it only is im told that they can dictate the tenyear through their language about where theyre going to keep funds and short term rates. So i dont know how the gauge what the ten year is going to do this year, and people have been so wrong that when they automatically tell me its going to 3 1 2, or 4 , im not sure i really believe in this inflation number. Yeah. I dont see 4 at all. Do you see 3. 5 . It might. Were talking about a 50 basis point move. I dont think thats going to if were in a contained environment, between 2. 75 and 3 , that well, what controls it . Well, obviously, the i think whats going to contain Interest Rates, theyre going to continue to see large demand as Interest Rates right from insurance companies. If Interest Rates continue to rise, and if we continue to have a stock rally, you will see rebalancing into fixed income. Thats weird because people think the other will happen. But theyre going to come out of bonds in the stock. Thats the rally. Theyre going to take their safety and dhig but the real issue, as youre suggesting, joe, inflation is going to hold down Interest Rates. Yesterday, Christine Lagarde from the imf said my biggest worry is denation. And i have true worries that we have a Global Economy that is we have factory utilization below where it should be. We have Unemployment Rate at an unacceptable rate worldwide. But its not seeing a new robotic factory in china. Because of technology, Countries Worldwide are talking about how to create bigger job pes. How are they going to find jobs that technology is aggressively transforming their workforce and their factories . I would counter that thinking that we went through an Industrial Revolution which was much more disruptive now. To take people off the assembly line, to do all these things, there are far fewer people in the world back then. Ra r and people moving int s intots. I think interest is rates will be more muted than probably sensitive. People think. And the reason why is inflation is going to which be careful what you wish for. When you look at our other countries have ton that. To the japanese Prime Minister abe saying i want 2 inflation, thats my target. Like a pipe dream. Even when they had a hyper economy in 87, 88, they didnt have 2 inflation. But i believe this is going to be one of the great risks of europe is high Unemployment Rate. I think europe is going to continue to see lower inflation. I think unlike the flexibility the fed has, mario draghi and the ecb has quite a lot of flex bl bltd. I dont know, befb the risk is to deflation. Especially in europe. Youre seeing deleveraging happening in europe. As you continued to do that, globally, until we find new job creative that will satisfy all the unemployed, i think were going to have contained inflation at best. Well, good. At least we can keep our housing. Any housing recovery that were seeing, we dont need to say, well, its cut off at 4 on the tenyear. Support an 8 to 10 equity market this year. Now, if rates go above 3. 5 , and im wrong related to inflation, then you would have an equity market response that would fall. Were going to have much more with blackrocks larry. Thanks for coming up next. Plus, fortune reveals of its 100 next. Coming up, we have citigroup and gold mran sax on tax as soon as rear relieved. 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