Dimon. Before we get to all of this, why dont we get to some of the headlines. Lets get to the headlines, ibm reported quarterly revenues below wall street consensus for the fourth straight quarter. Steep drop in demand for servers storage products. Earnings topping analyst expectations. Also on the list texas instruments, they posted better than expected Fourth Quarter earnings and revenues, company also announcing that its cutting about 3 of its Global Workforce or about 1,100 jobs. The Corporate Restructuring program aimed to save 130 million by the end of the year. Keep an eye on shares of advanced microdevices coming under pressure and extended trading after the chipmaker forecast a steeper than expected drop in Current Quarter revenue. Analysts now saying the news suggesting that sales of gaming consoles were not growing fast enough to offset slowing pc sales. Shares have risen 15 in the last month. Thanks. Something in the water in california. Mohammed el erian is stepping down at pimcos ceo and cocio. Back and forth last night. I got a generic one that said dear friends, thank you for everything. Like its thanking all of us. I wanted personal. In fact he didnt even clear the whole idea. With you first. With me first. Do we know i wept back and forth, trying to understand a little bit about, i couldnt tell was this a good thing, bad thing . Pushed out . Unclear. He didnt fully explain it. I did see a memo that went out internally inside of pimco that was very lauditory bill saying nice things. Bill saying lauditory things about mohammed. And mohammed about bill. It was like a lovefest. The more lauditory, the more forced out . Hes continuing some role with the parent company. I couldnt make sense of what was happening. I havent gotten a sense either but there are people speculating this would clear him to run for elections in egypt. Rex ryan resigned, right . Mohammed that role is not available. Probably not. And then neel kashkari. Hes not functioning, already gone from pimco. Maybe they could run against each other in california. Mohammed versus neel. Neel kashkari plans to run for california governor as republican, hell challenge governor jerry brown for the states top job. Jerry brown is not going to run for president , we saw that. Is he governor moonbeam anymore or has he graduated . I think hes grown out of that, i think. Im not in california. The former governor of california is wearing a wig and playing pingpong stuff on the commercials. Have you seen it . You have not seen no. I saw that. I thought you would have seen it. It was on the playoff games for football. I thought you would have seen it. How did you see it . I watch enough tv. You saw a series of ads with schwarzenegger with a wig and head band playing pingpong and warming up. Something for the super bowl. Ing acy maybe coming back . Markets up or down . If you look at the futures they are indicated a little bit lower. The dow futures are down by about 27 points, down by about 42 points below fair value. You look at the s p this morning theyre down by 2. 5 points and the nasdaq is off by close to five points below fair value. You look at the Energy Markets at least right now wti picked up 43 cents, 95. 40, stuck in the range tweebetween 90 and 100, t tenyear note the yield at this point is 2. 852 , well below 3 . Youve been right on that call. I know it gets old. Lets look at whats happening in the 4x markets the dollar is up against the yen and euro, euro at 1. 3543, dollar yen at 104. 32 and gold prices for now are indicated or looking like theyre down 2. Why is this guy doing Global Markets . I was going to say were here. If anybodys global its us. Were across the pond. Bob westgate is standing by Russ Westgate is standing by in london. You guys look good there. Joe, how is it . Are you all right . Im fine. Ive been avoiding, i havent talked politics at this point with too many people but were good. In fact its so warm here are you going to take the coat on . You know what i have on under this . I have a sorkin zipper sweater. Can you believe that . Are we getting new animation . I joined the sorkins letter of the month. Excellent. Im not withearing my sweater. There it is. Sorkins sweater of the month. Were. More cosmo european than you are today, ross. You are, looking good. Temperature goes up dramatic when the sun hits the set. cooler for european equities. Were weighted to the downside and at the session low at the moment, decliners outpacing advancers 3 2. It was the other way around about an hour into the trade. This is the chart. The ftse 100 was up a mid two points. It was firmer this morning, now down 11 points. Come back to the uk in a second. Xetra dax off 0. 05. The uk unemployment a sharp fall in the Unemployment Rate from 7. 4 this morning to 7. 1 . Whats key is that the bank of england a bit like the fed has a threshold for where they said theyd reconsider monetary policy, 7 . Originally the bank when they launched their forecast was saying we probably wont hit 7 until the end of 2015 and a couple months ago saying maybe it would have been january 2015. We might hit that rate next month. Sterling sharp against the dollar, near the highest levels we hit in august 2011 and a big sell yourself for gilt yields as well, now the yield on that just around 2. 89 , tenyear treasury yields 2. 85. Abb, the Swiss Engineering Firm warning its Fourth Quarter results will be hit by 260 million charge, missed profit targets, asml, the chip equipmentmaker up 6. 8 , beat profit forecasts and Strong Demand for tablet and smartphones. Becky out to you and i hope the rapidly warming at sphere of the swiss mountains. It is so rapidly warming that while you were talking, ross, joe took his coat off. Wardrobe change, ripped off his coat. She didnt change as quickly. They run back and did you see that, people working on me. You have a good staff, got you all set up. Pretty good. Right there. You look very pretty. Handsome even. All right. In the meantime weve been wondering how Obamacare Exchange also affect the affordability of health care in the future. We have the goto guy with us right now on set to answer this question and much more. Joining us is mark bertolini, chairman, president and ceo of insurance jigiant aetna. Great to be here, becky. The obamacare question you recently raised revenue outlook for 2014 by 1 billion. Right. Is that because of whats happening with enrollments . No, it had to do with medicare. So we had a lot more medicare enrollment than we anticipated and so that revenue number approximately pretty much the medicare growth that we had that we didnt anticipate for 2014. What does that mean for earnings . Will you raise your earnings . I thought you kept it within guidelines. We did. Its too early. We dont have data where they enrolled, how old are they, what kind of comorbidities do they have. Until we get data on the individual its premature. Medicare revenue is going up. What does it say about the country at large . Medicare advantage. Its Medicare Advantage right so its our product within that set. I think theres movement in the industry, i think the overall industry is up about 1. 5 but if you look at cohorts of individuals retiring people are retiring now, more than likely to pick a Medicare Advantage plan because theyre used to working wi ing witing with mana versus people over 70 who old on to the red, white and blue card for dear life. Democrats tried to crush Medicare Advantage plans why, and now the rates are going up theyre blaming it on the insurance companies. Can you tell me exactly what happen happenedyou the sugar coating it . Medicare advantage is too big. What was the point of trying to crush it in the first place, impediment to single payer . Im not sure. There are different points of view about that across the demographic. Was it too good for people . It allowed the private sector too much weight in deciding health care . Four years ago medicare was paying 114 of medicare feeforservice to managed care plans to manage the population. What we were doing in essence is competing for older individuals because were getting a risk adjuster and the older individuals were caring for them better so they were jep ragener more march jgin as a result. They were wondering why they were paying so much. They tried to killed the goose that laid the golden egg. Now were down to 106 and headed toward 100. Once we get to that point and the Program Continues to grow the fodder for killing the program disappears. Well thats interesting. See the surroundings have not changed my viewpoint on socialism, andrew. I see that. Its in the air but i think it was a disgrace the way that worked out, no . We managed our way through it. Good. In spite of the government youre doing okay. What is your latest read on the website, if if you will that is obamacare. I think too much is being made of the website. We have failures from time to time, it was a particularly big problem but is the problem working behind the website. Right now we see only 11 of the population is people formerly uninsured now insured so we didnt really eat into the uninsured population. So is the program working . We saw people that were very adept at shopping and so economics always works and so if i can find a cheaper policy versus the one i already have in the individual market ill go buy that. We didnt see a whole lot of shift. Employers shied away from moving their employees into public exchanges because they didnt like the way it rolled out. And so we saw employers pull back from thinking about the public exchanges for employees. We saw a shift of the individual insured market on to the public exchanges where they could get a better deal on the subsidy. That sound like its not effective though if youre not getting people who werent insured before insured, do you think that changes with time . As our Companies Made the shift from b to b, business to business, consumer to consumer, Consumers Want more choice and flexibility. Employers offer health plans. You have your health plans from cnbc and you get how many choices . Two or three. Two or three so somebodys either chronically insured, overinsured or underinsured, never fully insured. If im an individual and i know the health care usage im going to have the kind of doctors i if to, i want to find the tolecy that,for me. The public exchanges have four options so they dont have the chance to really shop, all they do is have an opportunity to shop for better subsidy. Fundamentally broken or a way to fix it . Its in place now and we have to move forward. We need more flexibility in the program so we should have more options versus the four we have today, we need more rating flexibility in the program than we have today. Youve seen the problem with you know what is it, 26 , a number thats not sustainable, the subsidies are more than we thought. An economist that says it is currently in danger of collapsing under its own weight. This is much more expensive . The government will bail out any insurance companies. Who likes buying Health Care Insurance . Do you . No. It has to be sold. Its not like im waiting on the edge of my chair for the website to go up so i can go shopping. It needs to work in the in exyear. We need to make it sempler. We need to make it a lot more simpler for people. There needs to be more choice and when you go i have more choice and make it more of a market you get more people in the program. You think theyll be able to do this in. Whether or not theres the pl political will to make the changes to the program without creating a food fight in washington over what the changes are remains to be seen. If its not fixed will there be a government bailout . For us its 3 of our revenue. Whether or not theres a government bailout because we lose money on members is irrelevant to us from the standpont of our earnings. The real issue is can we make this program grow and will exchanges in the Public Sector grow . Theyre growing in the private sector. If you lose money will you stay in the program . Our big question is may 15th we have to submit rates for 2015. Right, will the rates go rapidly higher . Well get beat up because of double digit or pull out of the program . Those questions cant be answered inle we see the population we have today and we dont have a good finger on that. I assume Companies Like yours will not threaten but suggest to washington youre going to get out of it. How will that change the dynamic . Thats how this is going to happen. To move them. I think if we come forward with ways to make the Program Better and can see a line of sight that the practicement will be different in the foo you the i think we invest for the future. If its just more hammer and tong between the administration and congress and the health plans, then i think it gets difficult. So within ten years, how much of the average Health Dollars is covered by corporations and how much is around the individual or the government . I think the way the world is going to emerge is in 2020, 75 Million People will be buying Health Care Insurance as a consumer from exchanges. Okay. Some portion will be public exchanges, 20, 25 million, the rest will be private exchanges and i think the real question for us will be were going to have individuals buying health care with a subsidy from their government or a subsidy frommier employer and it will be a very different marketplace than the one were in today. The idea of double digit increases come may 15th, is that a real possibility, a 50 50 shot . What are the odds we see those increases in. I cant tell you. How many people are going to be basically paying for incidental health care because they dont get anywhere near their 2,000, 3,000 deductible . People are not going to be covered. Most people will be paying outofpocket up to 3,000 and when is the last time i had an emergency appendectomy, other than that youre paying for everything. Ive never gotten to 3,000. A couple years ago having a baby. That was your own fault. Mark, thank you so much for joining us. Really great talking to you. Well see you again. Its a parade. Its a veritable parade in the mountains of davos, just Getting Started. This vest work . Its working for you. Look at the zippers. I got zippers everywhere. Arnie sorenson, got to talk to him. Why dont they have a decent, not that my hotel is bad but it would be nice to have, i mean did they think of room service in europe . That is an unbelievable concept, isnt it, to have a kitchen in hotel or bellmen . Sorenson how is marriott reshaping the lodging industry. It may be colder back in engelwood cliffs, much colder because were warm. Were hot. Its nice, well you are hot because its hot on the set. It is. Lot of light. Im getting hots. The forecast from the weather channels Reynolds Wolf who probably doesnt look any better than us. Its good times we all look great. Davos 15 degrees. You might see some snowfall by friday but here back in the u. S. For the east coast its the snow today. This system winter storm janus strong air behind it going to set up cold air. Much of the snow will be moving out to sea. Boston may still see snow showers into the early afternoon hours, some spots like say plymouth, toward say well right near parts of the coast itself could see another three to five inches of snow and then the cold air sets up camp through the weekend. More on that coming up, folks youre watching squawk box. Enjoy. [ male announcer ] this is the story of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. And the little room above the strip mall off roble avenue. This magic moment it is the story of where every great idea begins. And of those who believed they had the power to do more. Dell is honored to be part of some of the worlds great stories. That began much the same way ours did. In a little dorm room 2713. This magic moment marriott is a global brand of hotels all over the world, joining us is arnie sorenson, president and ceo of mare yat international, seems to think i dont get out much. I have stayed at the ven dome renaissance one of your properties in are pais, great boutique hotel, rooms werent large but maybe 10 or 11 times the size i have here, not that theres anything wrong with that, when i ski you know where i ski. I do. The greatest, its A Ritz Carlton and theres no ritz carlton here, dude. Theyre fired up because arnie said they let you out. Thats right. Number two this is a scenic, beautiful little town but kind of looks like veil not as new and kept up. Its beautiful. It is. The swiss alps has got so much character, thevillages are all great. Not enough to bring you to build a facility. Wed love to be at davos in some time. Ive heard from folks half of the lodging economics every year come this week. Literal i had in terms of revenue. Davos week. So theres really only two sort of highend hotels, theres the belvedere and the evercon. Its pretty new. I dont think we had a shot at that one but maybe the owners list it and give me a call. Everything in terms of occupancy is back for most hoe he tell changes. Rev par is below 07. You timely made it. Just about. Nominal. Youre not that back yet. Were not back to the same pound for pound profitability. I think thats another couple years away. Its not in the u. S. , all your International Expansion . The company as a whole is back to peak profitability now in 2013. I think you told me before. I never said that before but thats really Global Growth so thats the new unit since 2007 adding to the samestore sales. Well see that continue. We see the developing world continuing to provide better growth than the rest of the world and im wearing a South African scarf we announced finally selling the definnive agreements on our acquisition of protea, the largest South African Company this morning so were excited about that. In the u. S. We have to see another couple years of gdp growth and with it rev par growth bringing us back to pound for pound profitabili