goldman sachs is a smaller firm. they need to take risk, and when you take risk, your earnings -- liz: and the regulators are less -- >> oh, and by the way, they can't do proprietary trading, so you're taking risk on the market-making side. as we know, the volcker rule prevents proprietary trading. i just saw a headline come by -- liz: yes. the sec has confirmed that the volcker rule originally scheduled december 18th event, but everyone else is voting on the 10th or the 11th, apparently, and they've pulled the 8th. not given an -- 18th. not begin an indication from the chairman's office. >> every bank cares about how this is going to look. the stories don't say how it's going to look because banks, this is designed to get rid of proprietary trading, banks taking risk with their own capital. if you read the interpretation that has been out there, you can't make markets. and if you can't make markets, then goldman sachs will cease to exist. that's why they're worried. and depending on how they can make those markets,

it's an interesting time to see goldman sachs. this is clearly -- listen, the stock is up today, okay? maybe investors on first glance like this. they think goldman's going to figure out ways around it. i would say this is a stock you have to be careful about. cheryl: smartest guys in the room. >> allegedly. [laughter] cheryl: charlie, thank you very much. closing bell going to ring, 33 minutes to go right now. as wall street braces for the impact of what's happening with the volcker rule, we're going to get some reaction from our panel. they're going to tell us what they think the likely scenarios are for the entire banking industry. also, too big to fail. our panel coming up. and forget about snow angels, victoria's secret angels going to be strutting their stuff for a huge tv audience tonight. charlie, going to watch? >> victoria's secret? of course. cheryl: we're going to find out what their show could mean for one of the biggest media companies and, of course, shareholders of the company. but just look at the video. ♪ ♪ s

whether they're goldman sachs with guns or some guy throwing a fake golden ring on the ground we are putting a stop to it with something called big coin which has come from the future to save us from the present. time on that note so thanks so much. thank you matt. states in the second half. a plane is being compared to a lady home on the one hand takes money from an older now delayed gentleman but once to spend her time with handsome young man but sometimes you really have to choose i mean you cannot have both if you use and that kind of metaphors i think you should clearly separate the present existing ukrainian authorities we share been negotiated in a very embarrassing way was both the european union russia and ukraine a nation. what defines a country's success. faceless figures of economic growth. for a factual standard of living. right to see. first rate. and i think picture. on our reporters twitter. and instagram. the end. welcome back to the kaiser report. ned mailer. of quilter. manners read their welcome back to the kaiser reform. all right so told to us about those german

whether they're goldman sachs with guns or some guy throwing a fake golden ring on the ground we are putting a stop to it with something called big coin which has come from the future to save us from the presence. of well read time on that note so thanks so much. you stay tune for the second half old. this is the place that has been consecrated to god for almost a thousand of years people came here twenty some years ago it's very established as to life on the silence. and people feel the love of christ of working. people so you can. come to something happens on this island that makes them return to it again and again they say the below saves them. join me james brown on a journey for the soul. only see. choose your language. killing spree killer though in financial literacy there is still so much. to choose good music it can sense you can. choose the opinions that degrade to. choose to stories that impact your life choose me access to your office or. the like to go digital the price is the only industry specifically mention in the constitution and. that's because a free and open proc

whether they're goldman sachs with guns or some guy throwing a fake golden ring on the ground we are putting a stop to it with something called big coin which has come from the future to save us from the present. time on that note so thanks so much. that you stay tune for the second half. this is the place that has been consecrated to god for almost a thousand years people came here twenty some years ago so you stablish last a life on the silence. and people feel the love of christ working through. people so you can do. something happens on this island that makes them return to it again and again they say the below saves them. join me james brown on a journey for the soul. only see. do we speak your language or not a day in. music programs and documentaries in spanish matters to you breaking news a little turn to bangalore kiddies stories. you hear. all teach spanish find out more visit i too early to teach. i know c.n.n. the m s m b c news have taken some slightly but the fact is i admire their commitment to cover all sides of the story just in case one of them happens to be accurat

whether that goldman sachs' with guns or some guy throwing a fake golden ring on the ground we are putting a stop to it with something called big coin which has come from the future to save us from the present. time on that note so thanks so much. stay tuned for the second half. what defines a country's success. faceless figures of economic growth. or a factual standard of living. with the influential senators. choose to use the degree to. choose the stories they didn't. choose. to. the torch is on its epic journey to such. one hundred twenty three days. through two thousand nine hundred towns and cities of russia. relayed by fourteen thousand people or sixty five thousand killings. in a record setting trip by land air sea space. torch relay. on r t r g dot com. welcome back to the kaiser report. meyler. of quilter. manners read their welcome back to the kaiser report thank you max. so don't dorsey brothers german investigation into the alleged manipulation of gold and silver benchmark what's going. well it's been a while since we've discussed the story. i think it's both e.f.c.a. in londo

whether they're goldman sachs with guns or some guy throwing a fake golden ring on the ground we are putting a stop to it with something called big coin which has come from the future to save us from the present right well read time on that note so thanks so much stace thank you and stay tune for the second half. so we leave the. bushes sure. you're part of the physical. issues that no one is asking with to get that you deserve answers from. politics. welcome back to the kaiser report. ned mailer. of quilter. manners read their welcome back to the kaiser reform. all right so told to us about those german investigation into the alleged manipulation of gold and silver benchmark what's going well it's been a while since we've discussed the story max i think it's both e.f.c.a. in london and bath in germany to look into this initially the the story in the mainstream media was about looking at the fix what is the fix for the fix is a twice daily setting of the of the price london bullion markets or sation who are there are a bunch of bullying banks which are the main mainstream large banks

peter oppenheimer of goldman sachs. he stays with us. his final thoughts on the sectors are coming up next. >> in a strange way quite happy. i mean, he led an extraordinary life. he really wasn't alive to the world over the last two years. and you know, he really just didn't know what was going on. so i think it was merciful that he has finally died and he has just left the most incredible legacy. i don't think there is in the last century that has meant more to the world than nelson mandela. >> welcome back to "on the move." that was sir richard branson speaking to bloomberg tv about the death of nelson mandela and his legacy. here are some companies on the move. the cut comes after a record first half loss yesterday. with the downgrade, they lose the status of two global airlines. the news comes as chinese consumers return to japanese brands. and ford c.e.o. alan mulally will stay through 2014 according o a bort director. mulally is considered one of the leading candidates to take the top job at microsoft when steve ballmer steps down.

former goldman sachs asset chairman. have a great holiday. >> the fastest rise in house price according to goldman sachs. elliott gotkine reports. >> on tel aviv's best known boulevard, it will soon be israel's tall eths residents rble tower and most expensive. the apartments, some with private plunge pools start at $1.5 million. prices that a few years ago would have been unthink bt. between 2009 and 2012, israeli house prices rose 55%. faster than norway and switzerland and every other member of the oecd. house prices have been rising so far especially here in tel aviv, and many israelis find themselves priced out of the markets and they would love for prices to come down. >> developers say they also want cheaper homes. showing me around the $50 million penthouse, he said the current situation helps no one. >> rising prices in the short term may be good for some, in the long run, may be good for everyone. it is much hard to get an apartment. even for developers, up to a certain point, it becomes too risky to buy new la

sachs -- goldman sachs. more than two thirds of its profit comes from trading. investors have almost zero visibility. it is difficult to know how much money goldman could make. bernstein has asked himself what would nirvana look like and he is here to tell us what he found. next to you and happy new year. what is nirvana for goldman >> goldman has done very well. the stock has performed extremely well. what we want to say is, how good could it be e we added heat equity capital market. and trading, peak investment portfolio, everything. --got to 15%, >> pathÉtique from the best levels they ever had. >> and, when you do all of this analysis and then say, leverage dropped, maybe that is the answer. fundamentally, that is the answer, which is the old goldman just is not there anymore. it still means it is a very good stock. stocks are only generating 11% now. some of those peaks can occur. capital markets are doing brilliantly and m&a is picking up. certainly, the wind is in their sales. >> what does it mean fo

trading that is what goldman sachs j.p. morgan is the other big one they actually completely change the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago the so-called london whale. they are awesome at it you need to. know how to regulate regulators intentionally enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally a flow desk trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a head or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance a hedge

trading that is what goldman sachs j.p. morgan is the other big one they actually completely change the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago so-called london whale. so they are awesome at it you need to. know how to regulate regulators intentionally enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally afloat trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a head or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance a hedge is ju

trading that is what goldman sachs j.p. morgan is the other big one they actually completely changed the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago so-called london whale. so they are awesome at it you need to. know how to regulate regulators intentionally enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally a flow desk trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a head or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance a hedge

trading that is what goldman sachs j.p. morgan is the other big one they actually completely change the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago the so-called london whale. so they are awesome at it you need to. know how to regulate regulators intention to enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally afloat trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a head or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance a hedge is

trading that is what goldman sachs j.p. morgan is the other big one they actually completely change the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago the so-called london whale. they are awesome at it you need to. know how to regulate regulators intentionally enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally afloat trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a head or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance hedge is jus

trading that is what goldman sachs j.p. morgan is the other big one they actually completely change the tone of this debate by conveniently or in conveniently losing six billion dollars on a on a failed trade a couple of springs ago the so-called london whale. they are awesome out and you. know how the record regulators intentionally enforce this rule that seems like a difficult challenge but i would say they they harness peter drucker is maxim from management that you manage what you measure. normally afloat ask trader is kind of a cowboy he is just a basketball player there they are going on muscle memory if you will of trading now they will actually have to document things so if there is a trade it's not just because they think it's a good idea it's because there is an actual bona fide customer involved or if there's a hedge or something they're going to call ahead there needs to be a piece of paper that says here is precisely what i'm hedging it should be understood that a hedge is a cost hedges insurance a hedge is jus

my time when i started at goldman sachs. now i had been courting and been courted by goldman sachs for three years before i got a job. it was then called security sales helping individuals and small institutions manage their money. i got a ton of history of those years as well as some of what i talked about earlier. you can get the skinny at my goldman days. but that's not what tonight's show is about. tonight's show is about learning how to trade and investing by studying with me at the university of hard knocks. now i will dispense with the anecdo anecdotes. it's fine to have fun. i'm about making money. first, that's where i began to understand the process of actual money management. not picking a stock here or there. but the process. the ability to build a portfolio from the ground up. and i had the best teachers in the world at goldman sachs. one of the great hedge fund managers at the time, lee cooper. he put on investing clinic almost every day of which i never missed a session. hardly an hour went by when i didn't he

morgan, goldman sachs, morgan stanley, to a lesser degree, and citigroup would be affected. and virtually all the other banks in the united states would not be affected. if, however, they choose to put something in there concerning hedging then the top 100 banks in the united states would be affected and would be affected pretty negatively. >> so explain to us that aspect of hedging because there has been a lot of complaints about that. how does that put these banks at a disadvantage? >> well, it doesn't put the banks at a disadvantage, it puts the customers at a disadvantage. it basically takes away from the customer the ability to lock in an interest rate or to lock in what the cost of a foreign exchange transaction would be. and therefore, it causes less activity in the banking industry, and it causes less trading. but remember, the person who gets impacted by this most is not the bank. it is the person who does business with the bank. >> i was speaking last week with one top banker who said that we like to carry in our inventory lots of stocks, lots of bonds because that

it will come for a day, says goldman sachs. they make it very clear. 90% of the bond market have priced this end. i think that's the issue. aboutd el-erian will talk that tonight. have a look at the bond market. this is the essence of what we are dealing with. you have the build up to september and disappointment. could this be another day? yearnted to focus on 30- bonds that have gone to nearly 4% and staying at the top end of that trade range. the bond market to a certain extent is ready. the critical issue is this. one year money, five years time. event that1994-style is what they are trying to do. one year money and five years time is trading up at a rise of four percent and that's not what happened in 1994 but they are a bit more skittish. the rising streak of volatility in record, 14 of the past 16 days. the equity market, they want to protect the biggest rally in a decade and investors put in $126 billion into equities this year. >> forward guidance is the key. >> yes, it will be the critical issue. i liked what mohamed

morgan, goldman sachs, morgan stanley, to a lesser degree, and citigroup would be affected. and virtually all the other banks in the united states would not be affected. if, however, they choose to put something in there concerning hedging then the top 100 banks in the united states would be affected and would be affected negatively. >> so explain to us that aspect of hedging because there has been a lot of complaints about that. how does that put these banks at a disadvantage? >> well, it doesn't put the banks at a disadvantage, it puts the customers at a disadvantage. it basically takes away from the customer the ability to lock in an interest rate or to lock in what the cost of a foreign exchange transaction would be. and therefore, it causes less activity in the banking industry, and it causes less trading. but remember, the person who gets impacted by this most is not the bank. it is the person who does business with the bank. >> i was speaking last week with one top banker who said that we like to carry in our inventory lots of stocks, lots of bonds because that is wha

he gets a call from greg palm, the general counselor for goldman sachs. he started off the call on december 11th, with two tip offs the conversation was going to be uncomfortable. he said he had a colleague listening on the line. since the topic was sensitive, it was important there was an extra set of ears and hands to record what was said and monitor's gupta's reaction. gupta didn't register yet the call was going to be different. we are representing the corporation and not you. palm wanted to make sure this he knew this wasn't a prive conversation. the contents of his conversation could be handed over to law enfore enforcement officers. what can you tell me about raj rajaratnam? gupta was taken back. he said what are you talking about? they said they were told he might have provided him with information about the firm. gupta was calm and denied he ever provided raj rajaratnam with information about goldman sachs. then he went on to explain why it was absurd. he said they were businessman at one time but they had a falling out. gupta poured $10 million

jake is now the head of communications for goldman sachs. i mean, you -- >> and so, many of them have a connection to someone else who figures prominent in your book, robert rubin. >> yeah, robert rubin -- >> was clinton's treasury secretary. >> there's always been a symbiosis between wall street and washington to some degree. but i think the clinton era introduced a whole new level of magnitude to this. and bob rubin, who was the sort of storied head of goldman sachs for many years, coming to take the reins of treasury was really -- i mean, he was a real guru. and brought a lot of protÉges, larry summers being the biggest example, to town. tim geithner being another one. and yeah, and then, you know, the economy crashes, the banks crash. i mean, robert rubin gets a great deal of blame. i mean, bill clinton himself did a mea culpa on robert rubin. >> on abc news. >> on abc news, on george stephanopoulos. >> rubin had been a force in killing glass-steagall, which was the firewall between commercial banks and investment banks. >> investment b

goldman sachs has to take risk. would i say this if you're long-term better on goldman watch it, this is one stock i would worry about. lori: what about jpmorgan and jamie dimon so critical of dodd-frank and its inception and clearly -- >> right. we should point out one of the provisions of this -- adam: "london whale." >> because of the "london whale," doing some sort of portfolio hedging. the "london whale" by the way was port sole outside, wasn't quite a proprietary trade. it was the bank's outside bank portfolio. not really a hedge fund. it wasn't supposed to be. this is every money banks have outside. they have their own portfolio. basically invested in less risky assets. they did some hedge with it went awry, i.e., the "london whale" as a hedge. but this rule as being interpreted basically address that is. adam: does it protect the shareholders of an institution like jpmorgan from that kind ever huge loss in the future? does it protect taxpayers from bailing out this? >> i would say this. bureaucrats are incre

sachs every time there goldman sachs or j.p. morgan is caught rigging markets or manipulating markets could be the london whale here in the u.k. they fall into this defense where were the market maker and they and they and the regulators say oh well that's ok now what's wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and over. we were talking about he was what i call micro on the day manipulation you know my views the all markets on a macro scale over many years have been way higher than they should have been because there are people part this is the oil market in particular because there are people participating in it who are essentially lending money to

morgan and goldman sachs like this parasite they take using high frequency trading they glean or they scoop or they steal cash all day long so this is again it's a very instant parasitic relationship now ben bernanke you're not janet yellen will argue that wall street needs parasites america needs parasites and jamie diamond is doing the good work of a good parasite but when the parasite gets bigger than the host as in the case of jamie diamond or lloyd blankfein the parasite gets bigger than the global economy then you have a parasitic world driven by parasitic needs ruled by parasites and that's not really help. anybody well the parasite and the host get bigger and bigger and they need to consume more more more to sustain themselves but you know look back at that image again and this is the absurdity this is exactly as absurd as the banking system is right now is like this little absurd creature sitting at a fish's tongue. you know you can just look at jamie when he's on the news like. you know that's to me as a parasite. you know and as money comes into wall street jamie scoops it

morgan and goldman sachs like this parasite they take using high frequency trading they glean or they scoop or they steal cash all day long so this is again it's a very instant parasitic relationship now ben bernanke you're not janet yellen will argue that wall street needs parasites america needs parasites and jamie diamond is doing the good work of a good parasite but when the parasite gets bigger than the host as in the case of jamie diamond or lloyd blankfein the parasite gets bigger than the global economy then you have a parasitic world driven by parasitic needs ruled by parasites and that's not really help. anybody well the parasite and the host get bigger and bigger and they need to consume more and more more to sustain themselves but you know look back at that image again and this is the absurdity this is exactly as absurd as the banking system is right now is like this little absurd creature sitting at a fish's tongue. you know you can just look at me when he's on the news like. you know that's to me as a parasite. you know and as money comes into wall street jamie scoops it

morgan and goldman sachs like this parasite they take using high frequency trading they gleaner they scoop or they steal cash all day long so this is again it's a very instant parasitic relationship now ben bernanke janet yellen will argue that wall street needs parasites america needs parasites and jamie diamond is doing the good work of a good parasite but when the parasite gets bigger than the host as in the case of jamie dimon lloyd blankfein the parasite gets bigger than the global economy then you have a parasitic world driven by parasitic needs ruled by parasites and that's not really helping anybody well the parasites on the host get bigger and bigger and they need to consume or more more to sustain themselves but you know look back at that image again this is the absurdity this is exactly as absurd as the banking system is right now is like this little absurd creature sitting at a fish's tongue like jamie done and you know you can just look at jamie when he's on the news like. you know that's to me as a parasite. you know and as money comes into wall street jamie scoops it u

morgan and goldman sachs like this parasite they take using high frequency trading they gleaner they scoop or they steal cash all day long so this is again it's a very instant parasitic relationship now ben bernanke you're not janet yellen will argue that wall street needs parasites america needs parasites and jamie diamond is doing the good work of a good parasite but when the parasite gets bigger than the host as in the case of jamie diamond or lloyd blankfein the parasite gets bigger than the global economy then you have a parasitic world driven by parasitic needs ruled by parasites and that's not really help. anybody well the parasite and the host get bigger and bigger and they need to consume more more more to sustain themselves but you know look back at that image again and this is the absurdity this is exactly as absurd as the banking system is right now is like this little absurd creature sitting at a fish's tongue. you know you can just look at me when he's on the news like. you know that's to me as a parasite. you know and as money comes into wall street jamie scoops it up.

morgan and goldman sachs like this parasite they take using high frequency trading they glean or they scoop or they steal cash all day long so this is again it's a very instant parasitic relationship now ben bernanke you know now janet yellen will argue that wall street means parasite america needs parasites and jamie diamond is doing the good work of a good parasite but when the parasite gets bigger than the host as in the case of jamie dimon or lloyd blankfein the parasite gets bigger than the global economy then you have a parasitic world driven by parasitic needs ruled by parasites and that's not really help. anybody well the parasite and the host get bigger and bigger and they need to consume more more more to sustain themselves but you know look back at that image again and this is the absurdity this is exactly as absurd as the banking system is right now it's like this little absurd creature sitting at a fish's tongue. you know you can just look at me when he's on the news like. you know that's to me as a parasite. you know and as money comes into wall street jamie scoops it up

market research at goldman sachs. great to have you. talk to me about the decisions at the european central bank. they influence your topics for 2014. >> inflation is the centerpiece for deliberations. the trend has been lower and that the scary part is and the are declining bigger picture is one of progress and removing inflation in the area they cannot compensate for what is happening in france and italy. that will set the tone for the interest decisions and rates will be low for longer. >> do think there is extra stimulus? stimulus totra combat the inflation. >> a continues to play a big role in their discussion and is stronger. it is the case that the eurozone is a relatively closed economic area with a lot of inflow from overseas. people are trying to rebalance their portfolios and not put pressure on the euro. everything that goes in the direction of this can be read as a fiscal expansion. that drives the currency up and they will think about the euro. they will wait to see what the fed does to the dollar. are expecting a federal

goldman and mr. sachs. as the job situation in this country gets better, so will the home improvement market. home improvement spending is still 14% off the 2007 peak. next up, goldman doesn't like how masco gets 40% of its sales from home depot and lowe's. they think this concentration limits the company's margin expansion. those are powerful vendors. especially with the increasing consolidation in the space. you know what, i think that's slightly misguided. masco has exclusive agreements with both companies, home depot and lowe's, representing huge sales platforms. they're as crucial to driving revenue growth. that's right. and might not be as limiting for the company's margins as goldman thinks. i like home depot and lowe's said they're seeing a pick-up in kitchen and bath. they've indicated consumers are willing to pay up for better brands and higher quality products, which is also good news for masco. the bears at goldman think we could be disappointed by the margins of masco's cabinet business. they c

red flag to goldman sachs? concerns over trading revenue. charlie gasparino is here with another exclusive. lori: celebrities no longer trending. parents going back to their roots to name their children. no courtney with a k or land done. we'll tell you the top baby names next. ♪ hi honey, did you get e toaster cozy? yep. got all the cozies. [ grandma ] with n fedex one rate, i could ll a box and ship it r one flat rate. so i kn untilt s full. you'd be crazy not to. is tt nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. try align. it's the number one ge recommended probiotic that helps maintain digestive balance. ♪ stay in the groove with align. ♪ what'swithout the thinking capitathat makes it real?? what's a vision without the expertise to execute it... and the financing toake it grow? whatever yougoal, it can change more than your business. it can change the future. that's why, at barclays, our ambition is to always realize yours. that's why, at barclays, and our networks are getting

why does goldman sachs say it's a sell then? first of all, the goldman piece is not just about masco. it's about the whole building products cohort. and their main thrust is that nonresidential construction is starting to heat up. you want to swap out of the residentially focused plays like masco and swap into names with a lot of nonresidential exposure like arm strong world, the flooring and ceiling play and mohawk industries, the flooring play, both of which have spiked nicely today off this report. i think goldman makes a really compelling case for nonresidential construction. i agree with that, that doesn't necessarily mean you should sell things that are housing related. i think they're wrong about that, wrong about masco. meanwhile, the credit suisse note was to tell people they like masco. but the firm's last report from the end of october made a bullish case for the stock. while the masco bears at goldman believe that housing will keep accelerating next year, they think it might not pick up until spring. that's a gap. mo

goldman sachs says similar reviews remain cautious for 2014. and here with the lookout is hugh, and peter, here at post 9. welcome. >> you know, peter, it was interesting, there was a note you famously put out, 18 months ago, the long good-bye, the case for equities, and at a time when people are rolling their eyes, we're not so sure. look where we are today. what is the case from here? are you still as bullish on equities both for europe and generally speaking worldwide? >> well, we're pretty optimis c optimistic, because actually markets still -- clearly there's been a big period of outperformance sectors relative to government bonds. we expect that to continue. we believe the re-rating has been completed and we expect profits to be the main driver of returns looking forward. we think despite the relatively weak economic outlook, european companies can see pretty good profit growth. >> is the case to some extent a valuation story? how cheap is europe relative to the u.s., and how important is that for investors who might be looking at gains h

goldman sachs is a special bank holding company. under which they are allowed to engage in a broader set of activities than traditional banking. they registered their bank in new york state law in 2008, became a bank holding company and the financial holding company. the key here is this what is written broadly enough to make sure the largest financial -- this lot is primarily aimed at the 12 or so largest institutions. >> including goldman sachs. >> dodd-frank created a stopper in the drain. even a non-bank financial company which is a prerequisite is primarily engaged in financial activity, that could be pretty much anything, designated to be subject to enhanced supervision by the fed. >> i want to be clear. you describe this, haven't heard anybody clearly, goldman sachs stock is up, can they rescind their bank holding company status? >> i don't think so but they could minimize their exposure by getting rid of certain businesses. we have seen rumors of a flight of talents away from certain banks. >> one of the clearest explanation

sachs every time there goldman sachs or j.p. morgan is caught rigging markets or manipulating markets could be the london whale here in the u.k. they fall into this defense well we're the market maker and they and they and the regulators say oh well that's ok now what's wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment that they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and all we were talking about here was what i call micro on the day manipulation you know my views the oil markets on a macro scale over many years. years have been way higher than they should have been because there are people part this is the oil market in particular because there are people participating in it who are essentially lend

sachs every time there goldman sachs or j.p. morgan is caught rigging markets are manipulating markets could be the london whale here in the u.k. they fall into this defense were the market maker and they and they and the regulators say oh well that's ok now what's wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and over. we were talking about he was what i call micro on the day manipulation you know my views the all markets on a macro scale over many years have been way higher than they should have been because there are people who part this is the oil market in particular because there are people participating in it who are essentially lending money to

. >>> up next here, goldman sachs releasing another top trade for 2014. they're making that call for a safer environment. we'll break it down, next. a huge drop for shares of express today. is this a chance to buy on the dip or should you read between the lines about what its forecast will reveal about the rest of the holiday season? that and more, straight ahead. >>> welcome back to the halftime report. check out what's going on with shares of microsoft. they had an intraday high of nearly 39 bucks today. the highest level since july of 2000. it's the fourth best performing stock in the dow jones industrial average this year. scott, not too shabby fon an older tech titan. back over to you. >> no, not at all. third or fourth best dow performer? >> i've been pounding the table for it. >> that's why i'm going up to you on it. >> i will not bring up a certain goldman sachs analyst who will go nameless. i have loved this stock. >> you're not talking about heath heather bellini again are you? >> i might be talking about heather. i think they'll have positive n

sachs every time there goldman sachs or j.p. morgan is caught rigging markets or manipulating markets could be the london whale here in the u.k. they fall into this defense well we're the market maker and they and they and the regulators say oh well that's ok now what's wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment that they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and over. we were talking about he was what i call micro on the day manipulation you know my views the oil markets on a macro scale over many years have been way higher than they should have been because there are people part this is the oil market in particular because there are people participating in it who are essentially lending mon

sachs every time there goldman sachs or j.p. morgan is caught rigging markets or manipulating markets could be the london whale here in the u.k. they fall into this defense well we're the market maker and they and they and the regulators say oh well that's ok that was wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and over. we were talking about he was what i call micro on the day manipulation you know my views the oil markets on a macro scale over many years have been way higher than they should have been because there are people part this is the oil market in particular because there are people participating in it who are essentially lending money to p

morgan and goldman sachs and that is becoming. as you wipe out the low cost victims of financial terrorism by h.s.b.c. and barclay's and j.p. morgan you're going to have to start targeting people more in your own country to see what's happening in the u.k. or the u.s. financial terrorism like we saw r.b.s. the world bank of scotland a couple down a southport were financially terrorized by osborne cameron and royal bank of scotland and that's the point that's the dirty war the dirty wars it's dirty money it's dirty money war so that's why the film at the end of the day lacked a lot of it because it failed to get into the real dirty financial aspect of what these mass extrajudicial murders it's all about the money you know it to think that it's about some kind of a moral deficiency by some group of people is to not understand that sense more ality doesn't trade on the new york stock exchange there is no morality there never will be more reality and so you can't even start from a place of morality you have to start from a place of su

. >> lauren needed a lifeline and found it with goldman sachs. the investment firm purchased 28% of polo ralph lauren for $135 million. >> that was surprising to us, because we never realized that he had been that close to the back to the wall financially. and i think that is what led to the goldman sachs investment. >> they are very good about identifying where the growth is and what is going to be a company that is going to have long-term growth. and that is exactly what they saw in ralph lauren. >> and the infusion of cash meant exponential growth, with polo ralph lauren opening new stores and overhauling older ones. by 1997, ralph lauren was the top-selling designer in the world. consumers spent almost $5 billion a year on his products. goldman sachs saw greater potential and pressed lauren to go public. he was not so sure. >> he always had concerns that once it was a public company, he would have less freedom of action, that it was no longer his own brand, because he had shareholders and the board to deal with. ♪ >> despite his initial res

sachs every time there goldman sachs or j.p. morgan is caught rigging markets or manipulating markets could be the london whale here in the u.k. they fall into this defense well we're the market maker and they and they and the regulators say oh well that's ok that was wrong with that defense talk about a little bit well a market maker has a perfectly valid function it's like the house in the casino has a perfectly valid function but you only let them have so much you know that at the moment they taking far more than they are due from the market i'm not saying the markets have completely lost touch with reality it's just that the casino this casino is rigged what i do say in the oil market and over. we were talking about he was what i call micro on the day manipulation you know my views the all markets on a macro scale over many years have been way higher than they should have been because there are people part this is the oil market in particular because there are people participating in it who are essentially lending money to p

so, dagen and connell, jeff curry over at goldman sachs last week calling for significant the losses for commodities across the board. it's shaping up to look like that may be the story as we head into the final trading days of the year. connell: sandra smith, thank you very much. and it must be that time of year when we have pnc wealth management out with his 30th annual christmas price index. this is where they do the work for us and figure out what all 364 mentioned in the 12 days of christmas song would set you back were you to go out and actually buy them, and it's around $114,000 this year. 6.9% jump from last year. you go out and buy a leaping lord or whatever. online shopping, if you go to buy your lord online, you can expect to pay more, they'll drop about $173,000. and this christmas price index outpacing the government's consumer price index which, i guess, is all the point of doing that, cpi remains stag in a minute, around 31%. and the ladies -- 1%. and the ladies dancing got more expensive. dagen: right. lords a leaping and -- what kind of dancing is that? connell: i do

sachs? >> 2013 has been exceptionally strong on the financial side. we talked about the equity markets and the finance markets. the high-yield markets had record issuance this year. bettertor that has been than expected was the m&a sector. growth was expected. 2014, i would not be surprised to see m&a pick up in a meaningful way. >> we talked a little bit about growth. things seem to be on a good trend in the u.s. and in europe, we do not talk about a breakup. we talked about countries breaking out of the euro just a year ago. overall, it feels a lot more comfortable. >> it is about rose and confidence. do they feel ready to pull the trigger and take their companies into the next stage of growth? my discussions with ceos in board rooms around the world, that sentiment is definitely shifting. >> what is your take on japan? >> japan has made some progress. japanese companies have spent a lot of money expanding abroad. we see that activity. abenomics is still in progress. we will see. there is