Marketsen futures in the red. Fallout from the Swiss Central Bank move continues with sharp moves in the oil market. Earnings from Goldman Sachs, intel. Goldmans down 2 in premarket. Favorable and selective treatment in luxembourg. Eu lays out its case. Stocks in the midst of a fivesession losing streak. Markets continuing to absorb the surprise move by the Swiss Central Bank. Oil prices on the rise after iea slashes growth forecast for nonopec oil supply by 350,000 barrel as day, adding signs are mounting the tide will turn when it comes to price recovery. Jim, seems like currency brokers will get the lions share of the attention early on. Yeah fxcm the outfit everyones talking about, david, when i was getting made up, have you looks at fxcm i steal your thunder. Yes. You move fast in 25 minutes. When you tell me to look at something, i look at it. Downgraded to underperform. Capital raise critical for solvency. A major focus. What happened with fxcm, well get into it this hour goes on and next hour sara eisen will join us. Their customers caught, leverage you can use in currency trading enormous, customers caught with the move in the swiss franc we talked about yesterday, hence, negative balances 225 million, capital, they need it, where are they going to get it is the question, hence, that stock is 1. 50 trading 12something yesterday and though it was down the question is is there spillover effect to larger brokers . Right. Probably not is what im picking up. I agree. Currencies are much much smaller percentage of so many other the Online Brokers discount brokers and the like. A lot of places took a hit. This is a you have the post some event you didnt count on trying to see who really got hurt. I dont want to overdo it because there are very few firms that i think really let Retail Investors be this unfortunately foolish. By that dealing in currencies . I trade in currencies and i have to tell you, the ability of money you can loss while you go to lunch is extraordinary. Other firms not by the way, curb ability of their customers to lever as much. Im hoping to speak to ceo of another one. Those looking for other potential or other potential fallout here may be disappointed but its an ongoing story. Glad you raised. One Market Participants are focusing on the fallout from this violent move in a major currency. Right. Its difficult because you want to put it in perspective. People watch the show think, wait a second what do i care . Other people say, switzerland is trying not to be spy press, they didnt want the Banking Sector to take over the country. Theres other people who say, you know what . Europe is too unfathomable let me go elsewhere but when they go elsewhere they stumble into the banks, largest part of the s p, and the earnings there, for the most part have been horrendous. Horrendous. Yes. Were going to keep our eye on that obviously. Any breach of Capital Requirements theyre talking about. The or one, Goldman Sachs, reporting Fourth Quarter earnings 4. 38 a share, a beat. Profits fell from yearago period hurt by weakness in fixed income trading and 16 decline in Investment Banking revenue. The lowest annual trading revenue since 2005. And after two years of beating by almost 40 cents, 6 cents does not seem like a lot, jim. No. You like to compare on ficc fixed income currency commodity, and they were not stellar, frankly. But they were stellar on equities you can say, who cares . You can say, cramer its your division, youre like partial to it, which i am but they did the quarter to quarter for goldman, i know out of sync to Say Something positive plus 21 yearoveryear, for bank of america, for the when you look at bank of america, they are minus ten for quarter to quarter. Citi minus 38. Jpmorgan, minus 11. Thats not na impressive. And you go over thaesh exts equity. Fixed income in line bank of america similar, citi better than citi. Jpmorgan was better i point that out, jpmorgan feel as grieved about its stock. But you know what . Its not about personal. Its business. It is. And to your point, with goldman, looking down this is not a great week for Bank Earnings as you just said. No. Its the numbers that are giving small amount of concern to some investors. Everyones going to look back, as i said two weeks from now, the buffett bank wells fargo, they didnt have legal, they have 70 million customers, we really like them theyve got potential growth, but in the end, these are Oil Companies. Theyre Oil Companies because oil goes down, no one wants to own oil stock. All of the companies would have done much better but im the fit for goldman, its the gold mine for goldman. I was surprised. Obviously, it moves around. Right. Talking down 2 yearoveryear from 2013 to 14. Not good. What they call client execution continue to operate in a challenging environment, Economic Uncertainty contributed to low levels of activity which you can use every single quarter as an excuse. Yeah. Economic uncertainty. Look, i think the areas look, watch suntrust my Charitable Trust owns it suntrust blew numbers away, glood quart good quarter, one legal issue. Could use good Bank Earnings after a week like this. Maybe well get bank that has absolutely i have can i just say that the most frequent phrase on these Bank Quarters was, but x legal. No, legal is unfortunately legal is a line item. Citis line item. Jpmorgan legal frankly i was shocked. Ill say it 2015 was going to be fresh start. Citi, i thought fresh start. No. Its not. Legal remains operating item. Carl asked that question the other day whether it should be included. It should not be a separate item and one could make the argument it shouldnt be although others will say were at the tail end of the period. Last year of this Assault Using jamie dimons words, many will disagree with that. The regular jamie, memo regulators dont like it. Dont lose your cool jamie. Im a guy who loses his cool i know than this has become a cost of doing business legal and its not supposed to be. Supposed to be behind these guys. Thats why i say wells shines through. John stumpf theres no legal. I mean its actual its a business. You know its like a retail store, they didnt have the retail growth that i used too like when cross sell maybe but its a business. Yeah. Its not an appendage of a major legal firm. Absolutely. You want long legal i want to bring several law firms publicly you know how much i pay . 23 times earnings for a legal firm. Would you really . Yes, i would. Other big one, intel, Fourth Quarter results beat the street issuing cautious guidance on revenue and Gross Margins for the Current Quarter. What Brian Krzaich had to say on squawk about growing his company in a flat pc market. Projection for 2015 is relatively flat pc base from unit perspective and actually a slight decline in asps, as our average selling price, as we continue to see some pressure there, but were able to grow the company with our Data Center Business internet of things flash memory and other products that were in now, we think we can grow. Okay. Interesting exchange in part chanos was on who said hes short intel, has been six months on weak pcs. Look complain nose makes good and bad. Caterpillar was right, wrong, right. Seagate, western digital, wrong, wrong. I was im intel hawk i admit, i used to go there. Brian krzaich is a turn to the old guys when the andy groh period. Hes a scientist. A great quarter. Stock, you might have been shored if youre chanos. This was a terrific Conference Call. Theyre very conservative. They said the First Quarters seasonally down dont workry about the second quarter, spending less doing much more. Pcs no longer as much as levered to, its the data centered group. A terrific Conference Call. Brian krzaich did a great job. Its being wronged by headlines which says guidance was weaker because it was not. Feel better now . I feel much better. I was pissed off, the questions, show some respect. Too Brian Krzaich . Whos part. I did not expect a good year last year. I exed. A bad year. I did not expect this company to be able to broaden its reach and at the same time cut losses, not spend willynilly. Its right what theyre doing with communication business. Thats the key, isnt it. In terms of not doing a bad job. Not doing a bad job is not enough. Id rather they do a good job. I would too but he was dealt a bad hand in communications. A pc company, what he said what the chinese are doing with the notebooks with the tablets, were looking at this as a pc company, making a mistake. Its better than that. Congratulations, you deserve being best performing stock in the dow. Hes way too nonpromotional. Ill do it for it. Brian krzaich is doing a fan fantastic job. 44 in 2014. Reinvented the company on the fly. And a great engineer. A very funny guy, too. I wish hes hes nice sense of humor. Always important for me. Interview on readddit, hes a gamer. Hard to make a response when youre making jokes. When we come back amazon and eu regulators crosshairs when it comes to taxes. Well fill you in. The u. S. Move to ease the decades long travel restriction to cuba which begins to lift today. Coming up later on. Premarket. We have moved 3200 points up and down in the dow in just 10 sessions and looking for a down open your old 401k is rolled over into a Td Ameritrade ira. Yes so no set up fees wooh yeah so i get help from rollover consultants . Wooh yes no rollover hassle. Great. Woah oh, were spiking things, robbie. For all the confidence you need. Thats better Td Ameritrade. You got this. Take a look at premarket. Numbers coming out. Not just goldman, intel earnings. Cpi the biggest drop since 08. Yearoveryear,. 8 on Consumer Prices and core 1. 6. Disinflation something were not escaping. So i dont want to lose sight of the fact i know when you have this volatility that people think, if the individual must be bad, we didnt see a lot in the Fourth Quarter. Industrial productions out now. Rick santellis got that. Rick . Down. 1 on headline Industrial Production for the month of december. Capacity utilization 79. 7. In terms of Industrial Production, thats pretty much right in line with estimates. Last month a big jump. They didnt take away. It was 1. 3. That was a biggie. 79. 7 definitely on the light side. 1 revision down to 80 on last month. And the last time we were down at 79. 7 it wasnt that long ago, when you consider the 80. 1 some of the best numbers like all numbers youve been referencing back to 08. Were at 79. 3 in october. We have university of Michigan Sentiment to go as we hoover around that symbolic 1. 75 for tenyear note yields. David fabering back to you. Thank you, mr. Santelli. Back to a story following this morning and its truly a developing story. Focused in part on fxcm the Brokerage Firm focuses on currencies that said last night it had a 225 million negative equity balance as a result of what happened to clients trading with the swiss franc. Glenn stevens, another trading plat form with focus on currencies publicly traded Company Market value of 340 million as of close last evening. Glenn, first, thanks for getting to the phone. What can you tell us about what youre seeing amongst your client base in this currency trading universe and what steps perhaps you had taken to mitigate what befell your competitor fxcm . Hi, david. Thanks for the opportunity to weigh in here. Actually, as you might expect theres a fair amount of incoming inquiry centered on concerns about their money, their balances their ability to execute trade to either enter or exit positions that theyre already in and also just comfort and safety of overall accounts. And ultimately unfortunately here this is an industry where policies can vary from company to company and this is one of those examples where we were able to identify what was the Pressure Cooker that was developing with this Swiss National bank and although the move this week was obviously caught people flatfooted and by surprise it wasnt surprising there was potential for this kind of move because as six months ago we started working with our clients to change the required amount of collateral to hold against this related product, keep in mind this is focused swiss related products particularly euro swiss cross. Its not currencies its a swiss focused product and particularly it was a trade that people were putting on to bet that the snb didnt back away. When you did they have a large disconnect in a short amount of time that put other players in a challenging situation. Ultimately, there are a lot of safeguards built into protecting customer funds and gain in particular, as i said you know as early as summertime of last year, kind of starting in june, we were having discussions with clients and policy changes to create a stronger buffer between when this could happen and what the outcome would be. Right. We ended up faring well because of those things. Right. My understanding, you actually had an analyst dinner last night where you shared Risk Management strategy that you increased margins on this very trade, unlike fxcm which allowed people to trade at 501 which is a significant amount of leverage 501 . What happens now i wonder whether youre concerned about your industry because these kind of things can tend to have negative effect on sentiment overall and some of your clients may be concerned. I know youre addressing that concern. People may want to say i dont know. When it comes to fxcm i dont know if high moneys safe there, im getting out. What is the next step for that company, do you believe . So the reality here is that sometimes there is a disconnect between you know reality and perception, but then they start to converge. We have seen that in other industries where you know, it wasnt that long ago where certain banks were actually in good state and they were perceived to not be and you end up with a negative call that has to be fought through ar dueduously. Not to comment on somebody elses business but fxcm will be faced with pr challenge, they have an actual hole to fill. To be fair. The bulk of customer deposits are actually protected under rules globally. In regulators entities like uk or in japan or places like that they do have mechanisms to protect customer funds. However, in order to do this business you have to have a strong balance sheet. You know we have made press releases from yesterday and throughout today, were in good shape, were in better shape than ever as a company and fxcms going to have challenges but they do have to include all kinds of alternatives securing up their situation. Lets talk about one of the alternatives. Have you been in contact with them at all, if theres an opportunity for a firm like yours to step in and do something, would you conceivably do it . Or have you talked to them yet . So without comment specifically obviously given the sensitivity, we are an active participant in as a matter of fact, most active participant in our industry you know, we have completed six deals in last 18 months alone. We never take anything off the table. Anding look sometimes it makes sense to do these for customers and shareholders. So you know you never say never but i wouldnt go beyond that in terms of commenting on specific discussions. Fxcm shares are halted. News pending. Well bring people that. A black swan currency event, was it. It was far out, people can pull out and look at the bell curve everybody the lines dont touch zero. If were three, four deviations out and that defines a black swan be this is way out on the probability curve. As i said they were actually smd was developing a pressure situation that people paying attention to it saw there was a chance for it to happen. Not when not likely but not zero. Thanks for joining us and shedding more light on a developing story for sure. 150 billion convert in may of 2013 in which their big offerings on. Fxcm. Be careful. Those who think its a common stock situation, they did a private equity offer. I think 40 of the firm held by principal more shores than show up typically in your data systems. Yeah. There was also another small convert offered oh my. A ton of paper, 35 cents looking for a bid be careful. Its not common stock will determine this thing. Well see. Count down to the opening bell cramers mad dash weve not gotten to analysts moves on netflix, costco the rails, lululemon, euro below 116. Fresh 11year low. Back from post 9 in a moment. Female announcer during sleep trains huge year end Clearance Sale, get beautyrest, posturepedic even tempurpedic mattress sets at low clearance prices. Plus, free sameday delivery, setup and removal of your old set. And through monday, get 3 years interestfree financing on selected models. But hurry this special financing offer ends Martin Luther king jr. Day. Dont miss the year end Clearance Sale at sleep train. Your ticket to a better nights sleep ameriprise asked people a simple question can you keep your lifestyle in retirement . 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