Good morning. Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Good morning to you from me as well. Were coming to you for the final time from the World Economic forum in davos, switzerland. Our special guest this morning include former House Majority leader eric cantor, and ceo done bear, we will talk with them about the president ial inauguration in washington. In the next half hour, a conversation with mary erdos. What a week its been. Lots of reviews as well. I would say that while president elect donald trump is not here, the chinese president has been here. The new british Prime Minister has been here. Donald trump looms very large in all the conversations in davos. American ceos, american expoliticians are in high demand getting a lot of questions from some foreign counterparts about what to expect from a Trump Administration, from the markets, Foreign Policy. The uk chancellor, Phillip Hammond is speaking at the moment. Interesting comments he made about trump and what it means about the future of europe. This morning we are pretty much mixed. The dow is slightly in negative territory. The s p and nasdaq slightly in positive territory. Coming off the back of a fifth day in a row of declines in the dow. The dow is almost down a percent for the week. The third negative week in four. The worst sector has been financials down 2. 1 . The dow is expected to open slightly positive by 22 points. Tenyear treasury note, getting close to 2. 5 on the tenyear. We nearly went below 2. 3 two days ago. So yields have moved higher over the course of the week. Breaki ining Economic News of asia, the chinese economy grew 6. 8 in the quarter, compared to the prior year. In japan the latest Reuters Survey showing japanese manufacturers morale rose to a 2 1 2 year high, but it shows con if i decisions slipping over the next three months amid global uncertainty. Lets so he you whhow you what overnight. A year where china hit their target. They just manage to do it. This was a year that started out, worst start to the year for stocks for the u. S. And a big concern was china, whether it would face this hard landing. Its currency was devaluing sharply. The year they managed to avert that. Long way weve gone in a year. Still some caution over the course of this week as being too bullish. And what happens with trump and trade tensions. Lets look at europe. Uk retail sales declined by 1. 9 in december. The sharpest slowdown since april 2012. European markets, as you can see, pretty much flat. Just below negative. Yesterday the ftse 100 did declin decline. As for the Broader Market picture, lets show you whats happening on the commodity front with the price of oil. 52. 04, just breaking above that level again. Up 1. 3 . Some strength like we saw yesterday. Brent, 54. 79, up more than 1 . Natural gas goes the other way. As for the u. S. Dollar, this has been a big story at davos, the strength of the dollar, how that is inflicting pain on emerging markets. Countries in particular. The Dollar Strengthening, 0. 2 against the euro, stronger against the yen, which bodes well for risk sentiment overall. Stronger against the pound. Steven mnuchin speaking yesterday at those hearings, the senate did say long term its in the interest of the u. S. To have a strong dollar, keeping the tradition of his predecessors in the Treasury Department after the president elect made some comments about how the strong dollar is killing the u. S. Economy and business. As for gold, Dollar Strength typically yields gold weakness. Lets show you whats happening there. Yes. Its flat to declining. Lets look at some headlines from janet yellen, speaking on the eve of Donald Trumps inauguration. Last night yellen suggested the central bank plans to raise Interest Rates gradually, while stressing that keeping rates too low for too long would be a dangerous move. I think that allowing the economy to run markedly and persistently hot would be risky and unwise. Waiting too long to remove accommodation could cause Inflation Expectations to begin ratcheting up, driving actual Inflation Higher and making it harder to control. The takeaway over the course of the week from janet yellen is a slightly more hawkish tone yesterday and particularly the day before than people expected. That offsets the tweet you mentioned from donald trump earlier in the week that the dollar is too strong. At the moment rates will go up and donald trump cant do much about it. Because we know who is really in control of the dollar, the federal reserve, monetary policy. Talking to some bankers, talking with Morgan Stanleys james gorman yesterday about the rate hikes, thats one of the key underpinnings of this bank rally. The fact that yields have risen, postelection, continue to do so this week on the back of Higher Expectations of fed rate hikes, better economy, inflationary policies. I think we should mention that Morgan Stanley interviewed, we asked gorman is 4 enough . He said no, he said more around 3 . There is that optimism around the Trump Inauguration, it is everywhere. Everyone is optimistic, for me that makes me concerned about markets. I feel that view of the world is out there. Even the cautious ones are still upbeat. The cautious ones are cautious about Foreign Policy, geopolitical uncertainty, its hard to see how that influenced the markets. So far it hasnt. They brushed off brexit and trump. In corporate news, shares of ibm are slipping. The Company Recorded its 19th consecutive quarter of declining revenue. Still latest results beat wall street estimates. And ibm is offering an upbeat full year earnings forecast. Growth areas such as cloudbased services and analytics. Shares not reacting positively. Theyre lower. American express trading lower. The Credit Card Company posting an earnings miss, blaming higher Marketing Spending and promotions aimed at keeping up with the competition. The loss of the costco credit card business also weighed on results. Back to the top story, the u. S. President ial inauguration. Hedge fund manager and trump supporter john paulson offering an optimistic view of the president elects policies. Paulson confirmed he increased his longterm exposure to stocks saying the president elects tax proposals will help boost corporate earnings. The Hedge Fund Manager helped play a role in shaping trumps economic agenda. And george soros striking a different tone. He called the president elect a wouldbe dictator who is going to fail. Soros donated millions to Hillary Clintons campaign. Reports say he lost more than 1 billion in trades in the postelection rally. Despite his losses, soros says he Still Believes the market is heading lower, suggesting uncertainty is the enemy of longterm investment. Cue the countdown clock. Less than seven hours go until donald trump becomes the president of the United States of america. Joining us in davos, you couldnt ask for a better pair of guests. Eric cantor, now vice chair and managing director at mullis and company, and done behr, he served as White House Communications director under president clinton. Welcome. Happy inauguration day. Good morning. Don, ill start with you because of your experience in speech writing, you were one of bill clintons chief speech writers, what does president elect trump have to do today when he speaks to a divided nation. This is a day to look forward but i cant help but look back. 20 years ago now. 5 00 or so on the east coast, i was awake, trying to finish president clintons inaugural address to get it ready. Day of . Sure. We were always working until the very end. You look forward, what does he have to do . He has gotten where he has got ton by breaking molds, setting the established order on its heels. President clinton in that address, 1997, talked about wanting to be the repairer of the breach, to bring america together. Donald trump needs to do both. He needs to strike a tone he hasnt done thus far and its been hard for him that he is a repairer of the breach. He can maybe unite america not just divide america. It will be hard for him, but also show hes a breaker of the mold. The people who elected him are expecting him to shake it up. Finding that balance will be difficult. The nation has been divided since the vote. Weve had protests both from lawmalaw ma lawma lawmakeers who wont even go to the inauguration, does this becoming president move things forward and allow people to forget about the vote itself and now get behind the president . I dont think theres any question that today at noon, east coast time, the Shotgun Start will go off. We will have a new president. There will be a new era. I think the mandate is to make America Great again. As you said just a minute ago, the atmosphere is of confidence. I know the markets generally are looking at lower tax rates, less regulation. But i think in talking to some of the folks here at davos, theres no question theyre looking to see america grow again, begin to reinvigorate global growth. Its not all good news. Weve seen the tweets, unp unpredictabili unpredictability, uncertainty, words, and now well have to watch the action. The global community, eric, you must be getting a ton of questions. My advice to those who are uncertain and who question is, look, ive been there. You know, when push was first elected, then president obama was first elected, now when you look at the inauguration of somebody like donald trump, we cannot look at him in the same way that we looked at other president s. Nor can my former colleagues and friends on the hill look to these tweets, signals and statements in the same way they would have looked at a president bush or otherwise. It will be an interesting time. Im optimistic. Im optimistic that america will begin to grow again and help everyone see a better future. Eric is optimistic. Lots of people here at davos have been optimistic. Can you gauge for us what level of optimism is already out there and whether theres room for disappointment or positive surprise as we move actually into his presidency . I think its a false choice. The people want to be optimistic and believe that some things will begin to happen. Lets be honest. Our government, National Government has essentially done nothing for five years since 2011. Eric understands that very well. This is a chance, perhaps, to get things moving again. There will be some actions that will be taken, they wont make everyone happy, but the fact of taking actions, doing some things, tax reform, reregulation, other activities that will go on, thats a positive thing. It will send signals that things are happening it will help to generate growth that said, the volatility is very risky. And people are trying to figure out how to factor in that risk. We just dont know where that is. To wilfreds point, is the market taking for granted the fact that we dont have a divided congress anymore . For instance, tax reform is painted as this very stimulative, positive thing, but it will be complicated both politically and in the details. We already have this big controversy over the border adjustability rate, will they be able to pull it off and by when . Yes, i do think theyll be able to pass tax reform. Theres a reason weve not had comprehensive tax reform in the United States since 1986, it is difficult and complicated. With the unified republican government, much more business friendly to create jobs, tax reform is an imperative and it will happen. Who is the key people inside the white house . He has created special advisers just one level below. Who are the key people . This will be counter conventional. With that many special advisers and that many people, all of us not certificate be who the key people are, theres a key person, its the president. Donald trump has shocked everyone to the extent hes remained in control of his message, of his enterprise, moving his own campaign and now his administration forward. Certainly, you know, you have an interesting array of people from steve bannon, who is the chief strategies, reince priebus, the white house chief of. That person at end of day has to make sure the operation, which is an intricate and difficult operation, produces results. What is the biggest test for him, the biggest challenge . Is it on the Foreign Policy front, from the middle east to russia, to china, things are bubbling up all over the world. Theres no question. He comes in with a very, very volatile global situation. You mentioned geopolitical risk out there. Its really unprecedented. So, you know, hell have to work his way through. As we have seen in some of these senate hearings, confirmation hearings, you have people like general mattis, people like rex tillerson, people used to operating on a global stage, some in the private sector, others with military services, with the interests of our country in mind. I also think, listen, number one is to try and make sure that the people at home see a better future, more jobs, more growth. Thats where the test will be. Thats why its important they get off to a good start, get the bills rolling. Obama care repeal, replacing that, getting that done, going on to tax reform. I dpree with that. I want to weigh in on that. All the talk about process, how long it will take, the public is inpatient. It feels that its been waiting. Thats what made it possible for donald trump in part to be elected. In part. If we dont begin to see some results, a real impact for people out in the country who feel left behind soon, theres no telling where this might lead. You took us back at the start to 97 when you wrote the speech for president clinton at the inauguration. Another part that people watch is the seating plan, who is there. How important is that . Who will you be looking out for . Will there be some surprises there . Will we get an indication of who will be influencing the president based on where theyre sitting . It all matters. Everything matters. This is sort of court politics. Though you mentioned president clinton, so bill and Hillary Clinton will be there. It will be an amazing situation today. I think in our history we have not seen it that often. Though it has happened. This was an enormously close election. Im sure cameras will be trained on them. Well be wondering what their reaction will be. On her. Exactly. Of course president obama. How he is going to relate to this. They will do a good job of being quite politic. Its an interesting, dramatic moment. From the standpoint of the court politics, who is seated where, the like. Theres always a lot of power playing going on. Get your popcorn ready. Gentlemen, thank you for kicking off a historic day for us in davos as we look to washington. Eric cantor and don baer. One thing hard for trump to top, obamas stock market tenure, over the last eight years, averaging 12 a year, second in history to bill clinton. The other thing he will hope he doesnt do is mess up the inauguration, they had to have a redo. Coming up, the stocks to watch. Were back from davos in a couple minutes. E ethnn . Pameilnekeend remeo tadirectv now. Stream all your entertainment anywhere anytime can we lose the all. Theres no cbs and we dont have a ton of sports. Anywhere, any. Lets lose the anywhere, anytime too. You cant download onthego, theres no dvr, yada yada yada. Stream some stuff somewhere sometimes you totally nailed that buddy. Simple. Dont let directv now limit your entertainment. Only xfinity gives you more to stream to any screen. Much more still to come from the World Economic forum in davos, switzerland. Up next, the ceo of campbells soup, her take on the consumer and the economy in the trump era. Well be right back. Soe exterfety ger st bumeflies, feefs u timheti pow emo[immeffecttitis frany al nhexneni bappypy. Tli ttwmes s. Ffebralspeffee. Fel . Sohewa iwoof caeateteltings. Talkyo u timheti pow weve been catching up with a long list of Corporate Leaders in davos this week. Among the conversations, i sat down with Denise Morrison of campbells soup, and what shes hearing about optimism versus pessimism in the trump era. Theres an optimism about reducing taxes, regulation reform. I think that anything that will give the consumer some relief at least will be good for our business, and good for the country. Does that mean your level of optimism is high . I plan to engage. I think that ceos have to have a seat at the table and influence policy. Youve been talking about consumer trust. Yes. I did a panel with edelman on the trust barometer, which showed a striking decline in trust that people have in institutions. And i do think, though, thats an opportunity for companies to earn trust. At campbells, you know, were starting with transparency. They want to know whats in the food, how its grown, how its made. Were being transparent with consumers. What do you see in 2017, in terms of moves your making to shift the portfolio and make some of these changes. We are engaged in innovation, new models of innovation. Not only internal innovation, like the introduction of new clean label soups that we introduced in january. And its shipping and customers have well received it. But we also are engaging with entrepreneurs through our acre venture partner fund. Since 2010, over 400 startups have had over 8 billion in funding. We created a fund to invest in entrepreneurs, an really see what disruption is occurring from farm to the way food is made, all the way through to the last Mile Delivery of food. Denise morrison, the ceo of campbells soup. One thing that she said, this decline in trust of institutions, a big theme here