good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and scott wopner. joe is out but he'll be back tomorrow. welco welcome. >> it's great to be here as always. >> andrew, happy belated birthday. you thought were you going to escape it. >> thank you. >> you are very welcome. >> it was a good weekend. did you all have a good weekend? >> a long weekend is never bad. >> but happy birthday. >> thank you. i almost got away with it on friday. but, anyway. our top story today is greece. the latest round of talks going more than 12 hours. finally the euro countries agreeing earlier today to give athens $172 billion in additional bailout loans. this deal is expected to bring greece's debt down to 120.5% of gdp by 2020 at least that is the official plan. that's around the maximum that the imf and the eurozone considers sustainable. country's private creditors were

asked to take substantially more losses on previous holdings than anticipated. losses on 53.5% of nominal value of their bonds. right now we also have some breaking news coming out. home depot out with its earnings this morning. dow component. >> 50 cents a share is what it looks like here. i don't have the estimate in front of me. i'm not surprised because home depot has been doing well. i think is the stock is up 11%, 11.5% year to date. obviously the resurgence of the housing market. the housing stocks themselves have done quite well. home depot and lowes have done well. people talking about that quote/unquote renovation cycle. so that's been helping stocks. >> on the top line as well. >> on the revenue it looks like $16 billion. estimate was for $15.5 billion. >> yep. >> but that is a pretty striking beat on the bottom line just

based off half a billion dollars. >> cases in the items in there but that is a nice way to start the week. >> also some guidance. just taking a look real quickly at the guidance for the fiscal 2012. >> 279 the number you have? >> i see 279. and the estimate right now versus 2.77. 2 cents better than expected. the company has a conference call at 9:00 a.m. today and right now it looks like it's too early to say where this is going to trade but this is pretty strong beat across the board and my guess is that stock will trade higher. we will keep an eye on it as we get closer. >> unless the pullback we're seeing is because, as i said, it's had a pretty good run thus far year to date. so maybe it's just a little bit of a give back. >> he very strong numbers. we will continue to keep an eye

as we get closer. it's a dow component. will help the dow overall. again, though, the big story of the morning has to be what we're hearing out of greece. this deal being struck in the 11th hour. michelle caruso cabrera is following every twist and turn. she joins us on the "squawk" news line with the latest. good morning. >> reporter: hey, good morning. the other piece of news that is just as significant the greek finance ministry has announced they are going to start new legislation which would impose losses on all bondholders, so-called collective action clauses. what is significant to the markets, that means the deal will go from being voluntary to involuntary and will likely trigger credit default swap, something that they had originally wanted to avoid with you they are going to have to do this in order to get the participation level that they wanted so the deal is finally done. it's been so torturous. remember, there are four that have lent money to greece.

three of them are going to give greece more debt forgiveness than originally expected. the private sector will get hit harder than expected. the ecb will forgo profits, sign greek debt at a discount and the european union has agreed they are going to assess even lower interest rates than they previously were going to do on loans they extend to greece. let's dig down into the private seco sector. that affects our audience at most. the cut is 50%. that's now going to be 53.5%. they're going to get an even lower interest rate than they wanted. it is estimated at 75%. if you don't know what that means, don't worry about it. just know that the banks had originally said a few months ago there was no way in hell they would accept more than 70% but so much for that. in exchange greece will accept even more bureaucratic oversight from the troika within greece. they promise to pay their debts

first above and beyond anything else. and they're going too much an escrow like account which means they can't necessarily control the money. we're finally done with this and the debt rollout or debt exchange will begin later on this weekend. >> michelle, there are a lot of people who are skeptical about whether or not this deal will bring the debt down to 120% by the year 2020. in fact, the "ft" and other publications have gotten hold of this secret document from the troika that looks at the analysis and under a worst case scenario they're saying that the troika itself, its own analysis, is saying that it could push this debt to 160% of gdp by the year 2020. again, that's under a worst case scenario but what are some of the thoughts around that idea? >> reporter: well, i don't think that surprises anybody. i think that for sure this deal would require a lot of people to look the other way. i doubt that this is the first

task for greece. there will have to be more. i think what you should consider here is that the private sector has taken a huge hit and the next time around it's going to be much, much harder to impose any losses on the private sector because the new bonds are going to be dominated by uk law or under uk jurisdiction. so now what has happened is you have socialized losses, the potential future losses across the entire european continent. also the united states because the imf is getting involved. if greece can't pay the debt in the future once again, very high possibility of that. if you look at what happened in latin america in the '80s it was not one restructure, it was two, it was three. this is generally what happens. it's very hard for anybody to take the first hard step at the very beginning and say look at this event. >> so, michelle, in terms of the reprieve, how long do you think it ultimately lasts and all of this to me raises the question

we talked about when you were here on the set last week which is the politicians that are agreeing to this today are not going to be necessarily the politicians who are in office in two or three years from now and whether they ultimately abide by this transaction. this deal, if you will. >> yeah, the second one first which is that's what the whole idea of the escrow account is, the whole idea of promising new legislation within the next couple of weeks saying they are going to enshrine in the constitution and first and foremost they will pay their creditors that way you get around this issue of whoever comes up next in theory and the escrow accounts and keep in mind, andrew, remember, every single time you have drama in greece we are waiting to see whether the court is going to give them the next, right? you can always say you are not getting the money nms you do a, b, oc. we've seen this over and over again. in terms of reprieve, i don't know what you mean. do you mean the general market when it comes to lowering of

deals across couldn't thents or is it just greece? i think this gives greece a lot of breathing room for at least several months, maybe a year. >> okay. but you're talking only months. we're not talking about years, plural. >> reporter: it's hard to know. it's hard to know whether or not we're going to see any kind of improvement in their gdp which is what they need most. they need to do some very tough changes and becky points out this report from the troika. the tough changes that they need to do actually make the gdp worse. they need to cut everybody's salaries dramatically to be more competitive. when you cut salaries dramatically, what happens is this people can spend less money. the short-term effect is very tough. in theory once you cut salaries dramatically you get more job creation, right, because they will come in because the population is cheaper. but that gives more time. so in the short run, things are going to get tougher before they get better. >> michelle, you say look at

this as a process not an event. what's the next step in the process? >> reporter: oh, well, we wait to see what happens with greece and whether or not they make the changes to the reforms that are going to make it easier to start a business. new construction, things that would make the economy actually grow will be the first round of business and then we wait to see what the market reads into this in terms of all the other debt, the questionable debt out there. how are they going to react when it comes to portuguese debt, irish debt, et cetera. >> that's a huge question, too. michelle, we will be checking back in with you later this morning but thank you very much for that up-to-date information on what's happening right now in greece. >> michelle underscores the exact issue towards the end of her report here in that it helps with the immediate financing needs. it does little to nothing to help the overall economy and at the end of the day that's what matters most, right? eb exactly what you raise. >> what she pointed out, what

does this mean for portugal, for ireland. are they going to be looking for new deals and new terms on these issues, too. all right. iran is considering extending an oil embargo to other european countries. the head of iran's state oil company is quoted as saying the country would stop selling crude to nations who take action against tehran. iran announced the cutoffs it to france and britain on sunday. it's a preemptive retaliation for an eu embargo over tehran's nuclear program that is scheduled to go into effect in july but the iea says the eu could cope with an abrupt oil halt. oil prices this morning, you could see there's wti crude up 1 1/3 percent just shy. brent back a touch. >> that's a nine month high, too. something that's really getting on the campaign trail as well. >> because of what's happening with gas prices obviously as a result of oil prices, right? meantime at the pump, gasoline

prices are now the highest ever for this time of year. the average for a gallon of regular is is $3.53 a gallon, up 25 cents since the start of january. analysts say if this jump in price is sustained over a year it could cost the economy about $35 billion. and in corporate headlines in morning, "the financial times" record that go pfizer plans to raise $3 billion for a partial flotation of its animal health division. they have been in discussionses over an ipo that would book to place up to 99.9% of shares in the fall. now that -- i don't know if you remember this particular transaction, eli lilly had tried to come in and buy a piece. they decide not to. this is has been up for sale, if if you will, or in the offing. in other news this morning, wynn resorts forcibly buying out its biggest stakeholders. did you read about this? an unbelievable story. the company says it took action after a year long investigation

uncovered that activities that violated u.s. anti-corruption laws, making improper payments to foreign gambling regulators. wynn has asked the tycoon to resign from the board. he is pushing back. >> pretty vigorously, too. >> he is suing. i mean, this is going to be a long, drawnout and very interesting case because i imagine we are going to learn a lot about the wynn organization and things that steve wynn may not love and i'm sure they're all going to be throwing everything into the box. >> this is a partnership that brought these two huge casinos which make up, as "the journal" points out today 75% of what the entire las vegas strip brings in so this is an incredibly profitable relationship. ended very abruptly with an e-mail after the board meeting came out. we haven't seen the last of it. quite a bit to come. >> scott, i feel like this is a documentary. >> you think?

>> it could be. a trip to macao. >> what do you think about it? >> put it in the back of your brain there. a check on the markets this morning after all of this news. the futures this morning, something to really keep an eye on, right now those dow futures are up by about 35 points, part of this is because of what happened with greece, this deal, as we expected going through. that is a relief for the markets. home depots numbers out beating expectations both on the top and bottom line and issuing guidance that's stronger than the street had been expecting for fiscal 2012. the dow, by the way, up by 1.2% last week. right now sitting at its highest level since may 2008. the s&p indicated higher this morning was up by 1.4% this week and, again, stocks have been on a run quite some time this whole year. going to prove joe right. maybe a 30% this year if if he has his way. take a look at the ten year yielding 2.036%. that's the first time above 2% in a long time since i can

remember. also let's take a look at the dollar right thousand. the euro picked up some steam after this greek deal was announced. you can see now it's turned around now but the euro is still sitting at an incredibly high level. it's been three days in a row of gains. the dollar is holding up against the euro and dollar/yen at 79.76. gold prices haven't been at the forefront but you can see up another $13. $1,739.40 an ounce. ross westgate is standing by in london. ross, i guess european markets are down across the board. is this a sell on the news today? >> yeah. sell on the news and, also, of course we've had a really good run this year as well, scott. we closed up seven-month highs yesterday. markets like the xetra dax in germany up 18% for the year

before the start of trade today so all those factors have to be put into consideration. but we are right now ahead of the u.s. open down of the low. advancers outpaced by decliners here by 8 to 1. the ftse 100 down about a third after percent. so far this year it's up nearly 7%. xetra a dax, talked about the yearly performance down. the cac down 3 three-quarters. key, though, perhaps has been what's been going on in the bond markets because you talked about the euro dollar. we got up to about a two-week high initially in reaction but as far as bond yields are concerned we have continued to see those fall in the peripheral. i think that's been the key reaction we've been looking at. here in port dwal we initially saw bond yields rising this morning but since we're in the 2s and the 5s which are most important down slightly. of course bond investors looking at a number of factors. if greece doesn't force the collective action clause, what are the implications? what are the implications for

the portuguese deal on that and bearing in mind the ecb would not be affected and treasury teams will have to wake up and say, wait a second. there's someone with more priority holding dwrek de ining. markets pretty sanguine and the reason is in the key plan growth rates are president clinton for greece flat this year and growing next year. the last quarter they declined 7% year on year. back to you. >> i sense a tinge of skepticism from ross there. thanks for that this morning. coming up, we're going to have more on home depot's quarterly results which just beat the street. market reaction that's coming up next plus could the retailing giant help the dow hit the 13,000 mark is this joe would like to see that. we all would, too. first, if you want to be in the know at the water cooler today you'd better though about the knicks. linsanity running into reality last night. new jersey nets upsetting the

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welcome back to "squawk." scott williams joins us from the weather channel. scott? >> good morning. of course, yeah, we continue to run about 10 to 15 degrees above average across parts of the northeast and new england and today another mild day with sun and clouds. new york city upper 40s to near 50 degrees. we're looking at 54 degrees. washington, d.c., interior sections of the northeast today we're going to find some clouds, a few showers. yes, showers. it's winter and we're not dealing with a whole lot of snow. buffalo, pittsburgh, temperatures would have freezing for those afternoon highs. right now at laguardia a little chilly. 33 degrees. winds are calm. no weather worries for some of the first flights out. chicago, however, we're looking at some rain. a little bit of wet snow will be

mixing in but once again those temperatures are above freezing at 36 degrees so watching out for potential airport delays there. minneapolis this morning, a few light snow showers. not anticipating major problems. some rain, also some wet snow mixing in. early this morning around indianapolis, 37 degrees is the current temperature. toward texas, louisiana, watching out for some of that dense fog this morning. so visibilities are lowering so allow some extra travel time. use those low beams. moderate airport delays expected around chicago because of the low ceiling. the rain mixing in with a little bit of wet snow. otherwise fairly quiet. temperature wise 32 in charlotte right now. we have 57 degrees in new orleans. the big easy. fat tuesday, ongoing events. people packing borbon street this morning and as we move to the denver area 32 degrees right now. so the overall forecast for today will keep some precipitation around parts of the great lakes, the upper ohio

river valley, upper 40s new york city. 59 degrees in charlotte. upper 60s toward dallas a brownsville 76 degrees. as we move into the latter part of the week we'll track the moisture eventually towards parts of the northeast and new england but, once again, not anticipating major snowfall out of the system. looks like we'll find some clouds and showers around. temperatures will be above average in the upper 50s. so we continue with this mild trend and as we take a look at new information in from the climate prediction center, march, april, may, temperatures look like they are going to remain above average in many locations across the lower 48. guys, back to you. >> all right, scott, thank you very much. still reeling. i can't believe it's fat tuesday already. let's take a look at the markets again.

this morning it looks like it will open another 40 points higher. 50 cents a share is what was reported. that was an 8 cent bead. standing by on the "squawk" line with more on these numbers, brian, it looks like that stock is going to open higher. why was the can company able to beat so handily? >> mother very strong quarter from home depot and the quick takeaway and looking through the results their sales were much better than expected with the company hosting a gain of 5.7% company wide and 6.1% in the united states. >> 6.1% for the united states. i think they beat revenue by half a billion dollars. $16 billion versus the $15.5 billion the street was investing. is it too soon to say this is the beginning of a turnaround for the housing industry or is this much more specific than

home depot? >> i think that's what it is. i published a piece, a report on the home improvement sector at home depot last week and we outlined what we believe very much is the beginning of improving trends in housing and home improvement. no doubt weather helped to some extend. you were talking about unseasonably warm weather. that's definitely a positive here. i think behind that you have a strengthen in the housing environment as well. >> that's huge news. if this is really a turn for the housing market, do you see other signs of that besides the sales that you've seen at home depot and lowes? >> if you look back at some of the housing related data, the commentary that came out to the home improvement suppliers. all that to me points to a strengthening demand trend over the last few months and, again, i think this has legs. i think it will persist for some time. >> is that time to buy home depot shares. >> i think so. the stock has had a nice move here since the summer lows but

there's more to go here. we have a $55 price target. >> would you also be buying shares of lowes? >> i'd buy lowes as well. they report their fourth quarter results. we'll see something similar. they have been performing better lately but i think you'll see continued strength in lowes and both are attractive. >> thank you for your time this morning. >> thank you. what could hd mean to the bro broader markets today. joining us is the chief market strategist. good to see you this morning. thanks for coming in. >> my pleasure. >> you have the greece deal, obviously has to be front and center but earnings like this aren't going to hurt. >> no, this will be great for the market, i think, today. it was well telegraphed. everybody expected it to happen. now that it's arrived you see a sell-off. we'll move beyond it. the one thing i would say about the greek deal is focusing on the issue of this buy greece some time? the answer is yes.

it buys other countries in europe time as well. bigger, more important countries to the global economy like italy and spain. relatively good news in that respect. greece still has its issues. as far as home depot is concerned this is an important i indicator of strength in the housing sector. you saw the nhb index has doubled since september. we've got affordability at a record high right now. labor market is improving and, you know, the monthly numbers for starts, for sales, they've been moving higher so we could get a significant boost from housing. still low numbers off of the low base but in terms of inremtal improvement i think -- >> does that mean that you like -- if you think that housing will get a little bit of a boost would you put money in the financials right now? >> i think the financials look good. they're showing some significant momentum. they're obviously very cheap. banks especially very cheap but you are also seeing with

improvement in capital market activity so far this year, broker deal is doing particularly well so i think financials have further to go. they haven't necessarily outperformed the broader market. if you see them break out of the broader market trend, there's some significant potential upside. >> they've had huge runs, though. >> they have. they have had a big run. but collectively across the board just the sector itself has not broken out significantly on a relative basis. >> and you think it's going to? >> i think there's a chance that it will. yes. and the reason i say that if you look at the profit projections for this market, they're waysed on very -- >> would you do a basket or is there a name or two that you like? >> in the banking sector i like bank of america, j p morgan. >> you like bank of america, beating down stock. it's come back a little bit. >> i think you might have to be patient. it's come a long way. at the same time i think they have a lot of good assets that will allow them to produce good

earnings over the next couple of years. i think you're going to be rewarded for owning that. >> i want to go back to the housing starts. if things are really turning here, even if it's not a huge turn, if it's an actual turn, i can't tell you how many people we've had come on the show and tell us that's the real key to the economy, warren buffett, many other people have come through and said that's going to be the turn for the economy and for jobs both. do you think if this is really a turning point, sha something you are seeing, too? >> yes, but i would say for the economy i'm talking about the difference maybe between a 2% growth rate which is the consensus this year and 2.5%. i don't think we'll go back to the volumes of two years ago and let's hope we don't but at the same time just in terms of the incremental boost that it would provide the economy it's extremely important. the one thing i would say, however, is that it doesn't seem to be any sense of urgency among home buyers right now. prices haven't is really moved. they've been bouncing along the bottom. they really start deteriorating for nondistressed sales.

and at the same time interest rates, mortgage rates, are very attractive but showing no signs of wanting to rise. i think if the fed would stop telling people that they intend to keep rates low forever that maybe you would see a certain sense of urgency and get people off the fence. >> where is the most value right now? is it still in the u.s. market? valuations are still low even considering the run we've had here? or do you look to the emerging markets where you see attractive valuations as well? >> i think the emerging markets are. trading at ten times expected earnings for this year. the u.s. is probably up around 13 now and you see a major shift under way from fighting inflation to monetary stimulus. even china is getting into the act with their reserve recently. so i think that there's a lot more potential. >> is there one in particular you like? brazil is up by 15%, for example. >> brazil is the one i kwould

cite. their currency is also appreciated dramatically and they would like to have that slowed down so you have maybe a certain level of currency control risk there but at the same time they've been loosening monetary policy for longer than other economies have and they've made some progress on the inflationary front. more diverse economy, i think, than some others. so i'd like to sell. >> good to see you. david joy. >> when we come back, we have a live report from brussels. that's where european leaders finally sealed a deal for a second greek bailout. this morning, by the way, marks the end of the mardi gras season. it is fat tuesday. and nowhere on earth will they celebrate more than new orleans today. it could see record crowds. more than a million people expecting a crowd through the french quarter. a lot to celebrate. today as we head to a break,

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will be looking for a higher opening this morning. our top global story is greece, the euro countries agreeing early this morning to give athens $172 billion in additional bailout loans. the private creditors were asked to take substantially more losses on their holdings than anticipated. silvia wadhwa joins us now from brussels. the site of the action. i don't know what you have behind -- you don't have a big ecb behind you -- you don't have the flag, the euro flag behind you today, though. >> reporter: well, this is the sign of the danish presidency. we keep switching presidencies of the eu councils every half year. this half year is for denmark and behind them when you see the european map that is actually composed of a little lego set. >> silvia, they could have taken the greek piece and taken it right off? could they have done that? if this deal hadn't worked out.

>> reporter: we tried to see whether we could take pieces out or shift them around but they're actually stuck to that. i think they might have anticipated mischief so no can do on that. the deal, yes, we finally got it after a marathon session. i think the marathon session lasted long er than the ancient marathon battle plus the run with the whole, okay, we have a victory. 14 hours i think we got on the ticker. everyone was roundly tired. on both sides of the press conference. it was only like 5:00 in the morning here. and $130 billion. i wish it were only a million. we have the psi deal. at least we have it signed. whether we pick up on it or not remains to be seen. charles dallara, head of the iif did say he was confident that enough of the private shareholders would pick up on the deal voluntarily. that's the key sentence in here.

thud they not pick up voluntarily, there's a bit of a backstoper in there because the greek government wants a collective action clause into its legislation so voluntary, involuntary at the end of the day. that remains a moot point possibly at least if you are a bondholder. the ecb is not taking a haircut but is passing on profits it made on bond purchases for greece on to, "a," its central bank and the imf will take a substandings portion which is yet to be decided so we have a bit of a breathing space. no big surprises. i daresay we'll be talking about greece and sustainability very soon again. >> silvia, thank you. and let's hope that this deal brings us a better result than with the battle. we'll talk to you later this morning. meantime, secretary of state hillary clinton hosting her first ever global business

conference. the two-day conference comes as the u.s. tries to protect itself against geopolitical head winds from abroad. joining us to talk about this and more is the under secretary for economic energy and agricultural affairs at the state department. he is also the former vice chairman of goldman sachs international. bob, before we start on the conference, i would like to ask you about greece and what silvia was talking about. what do you make of this deal? what does it mean for the american perspective? >> it's certainly good news. from an american point of view we are eager to see the europeans address their problems. they seem to have taken a major step forward overnight in doing so. it's now important as the greek finance minister said, that they follow through. if that's the case then i think there is progress now and progress in the future but they have to do a lot of work to implement their part of the b

bargain and he seems committed and the prime minister seems committed to doing that. >> so now we can breathe a sigh of relief, in other words? >> i think we can breathe a sigh of relief that this part of the problem has been addressed. these things take time to work themselves out, but surely this is very, very good news that europe pulled together to do this, that the greeks were willing to make commitments on their part, so it's a major step in the right direction, no question about that. and it is beneficial not only to the european economy but fen figures to the global economy that europe continues on a path of both sustaining its financial stability or improving its financial stability in this case and in so doing creating a better base for growth in the future and that requires a number of measures to stabilize the financial situation and to make internal reforms that will strengthen its overall growth prospects in the longer term. >> reading between the lines it looks like we do have to realize this is just the next step and we're going to have to wait and see how this works out?

>> i think we will have to wait and see how it works out but i think it's certainly a very positive move in the right direction and europe is to be commended. so are the greeks. they're both committed to followthrough and that's very good news and the process of following through may take time but if they do the right things they will establish a stronger environment for financial stability and a stronger environment for medium term growth to occur as these leaders said they would and i think that's a positive step, a very positive step for them and for the world. >> all right. let's talk about the state department's global business conference. this is the first ever hosted by hillary rodham clinton. can you talk to us about why this conference is happening now and what you hope to accomplish? >> yes, we're bringing together representatives from over 120 countries. these are agencies or organizations, private sector ones like chambers of commerce that support business around the world as well as business leaders from various countries.

they were nominated by american embassies throughout the world. the objective is to do several things, one, to see is how we and the state department can better provide support for american companies seeking to increase their exports. as you know the president is committed to doubling exports and that will support 2 million jobs. so we're going to try to figure out how to support exports of american companies. also encourage more foreign investment in the united states. that and the exports can be very job creating, and we want to figure out how we can work with these supportive groups, the ch chambers and others, to deal with the kinds of problems they have in the global system. it's not just good enough to do it deal by deal although the state department is a very strong, very strong advocate for american companies seeking to sell abroad and we're strong advocates for american companies that have difficulties abroad but we also want to improve the global trading system. secretary is clinton has made

the point we need a level playing field so that american can companies can compete. we need to deal with issues that relate to piracy of intellectual property. we need to deal with issues where governments provide support for their companies that distort overall trade and investment to the disadvantage of private sector companies. these are state owned or state supported enterprises so we're going to try to figure out in conjunction with these repres t representatives from around the world how we in the state department can continue and redouble our efforts to strengthen support for american business. it's important for our global international economic policy and it's very important for revitalization and growth in the united states. >> bob, on the piracy front, you know, there are these reports about this counterfeit coming from egypt, reporting is "the wall street journal" this morning. this anti-counterfeiting trade agreement which was reached is

already getting considerable push back from some nations over in europe. how do you think all of that plays out and at the end of the day is it going to have any teeth? >> well, we've been working with a lot of the same constituencies who will be here at this event on this agreement. we think it's a very good agreement. we've talked to a lot of the various groups who are interested in protecting intellectual property and i think it will have teeth. it's that plus utilizing rights in the with wto. it's that plus putting pressure on countries that are engaged in very substantial amounts of intellectual piracy or forcing the transfer of business secrets from american companies to foreign companies. it's not going to be done overnight but this is central to america's economic future, innovativeness and our growth prospect. we're pushing hard. >> but do you think it gets

ratified at the end of the day? that obviously is the big question with the push back you are getting. >> i think it is very important that we reach out to the various constituencies particularly people who think that for some reason it interferes with free flows of information or things of that sort. there are people who are concerned about privacy issues but by and large we've reached out to a lot of stakeholders and i think if we continue the process of doing that and the other governments who are signatories do that, it will go through. everyone has an interest. workers, businesses, everyone has an interest in very strong, anti-counterfeit measures and i think in the end it will work but it's going to take time and will take a lot of outreach to the public to help them better understand that. we've tried to do that and we will continue to do that because we think the whole objective is very important not just to our economy but asia and others. >> it's andrew sore kin here. i don't know if if you read the report last week but apple's biggest supplier raised salaries

and supposedly had tried to start changing the conditions at their factories. i'm curious what the role of the state department, and what the role you think should be of american companies that are employing suppliers abroad should be when it comes to some of these labor relation issues and whether they are developing the way you hope that they should. >> well, without getting into the individual case which i did read about, i think american companies clearly have is to make their own judgments about what they pay in other markets. but gradually if you look at what's going on in china and elsewhere, wages are going up particularly in eastern china and i do think one of the things that american companies do very well, better than many companies around the world, american companies, are very good at labor relations and dealing with environmental issues. by and large when you look at american investments abroad, they tend to pay higher wages than local companies. they tend to adhere to higher environmental standards than

local companies. so i think american companies have to figure out each for their own needs but they have to do this in a way that enables them to have sustainability, sustained relations with people, workers, civil society and they have to do it on their own. we can't get into those negotiations but by and large talking to them demonstrates that they did understand that they need to establish a solid base of political support in the countries in which they operate and they're doing that quite well. we found this throughout the world. >> all right, bob, thank you very much for your time today. >> thank you very much. >> again, bob hormats, the state department under secretary. comments, questions about anything you see here on "squawk," e-mail us. and coming up, global market reaction to an early morning deal out of greece. and then at the top of the hour a very special guest host, sallie krawcheck.

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if you're just waking up this morning we have a greek deal. the latest round of talks going more than 12 hours, finally the euro countries agreed early today to give athens $172 billion in additional bailout loans. the deal expected to bring greece's debt down to 120.5% of gdp by 2020. the country's private creditors were asked to take substantially more losses on their holdings than previously anticipated. take a look at movement in the euro dollar today and see the euro down slightly here, but still sitting at 132. u.s. equity futures this morning on the back of good earnings

from home depot, dow will open higher if it were to open right now by 33 points. nasdaq has been coming back but still implied to open a bit lower this morning. quick break, much more global reaction including sallie correia still to come. bhch ok, guys-- what's next ?

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that was taking place there, oxycodo oxycodone, prescription painkiller volume going to two pharmacies in florida, going after them saying these two companies should have known about it and aware of it. i think this is going to cause a huge issue. they tried to shut down these operations. a judge has temporarily granted an injunction against the agency being able to do that, but this gets into how much responsibility the cvs pharmacy should have had and cardinal who was supplying a lot of the drugs should have had as well. >> we don't have more time for stories. >> oh, my gosh. >> two more hours to talk about a lot of stories. we'll do it then. in the meantime coming up, we've got wall street veteran sallie krawcheck going to be our guest host. stay tuned for more. intuitive trading platform from charles schwab. fine-tune technical analysis with the integrated chart tools sidebar. pinpoint your target more efficiently with clearly categorized, highly customizable technical studies. plus, scan any stock or etf against time-tested indicators

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greece gets a deal. >> the outcome of today's deliberations was a very positive one. >> the latest breaking details and what it means for stocks. >> primary crunch time for the gop candidates. >> this time we're even bigger and better. >> the donald is here to weigh in on the next pivotal contest for the white house. >> plus, one of the brightest minds in the world of wealth management, sallie krawcheck is our guest for the next hour. as the second hour of "squak box" begins right now. ♪ ♪ money money money money ♪ money money money money >> welcome back to "squak box" on cnbc. i'm becky quick with andrew ross sorkin and scott wapner. investors are reacting to the news that a deal has been reached for a second greek bailout. we'll have more on that story in

a moment. in the meantime take a look at several dow components out with earnings. first up home depot earning 50 cents a share for the fourth quarter, that was 8 cents better than the street had been expecting. revenue also beating consensus and that stock is going to open sharply higher this morning. also kraft foods chalking up fourth-quarter profits of 50 cents a share when you strip out certain items, right in line with the street's expectations and revenue by the way essentially in line as well. we're watching shares of ups, dutch delivery company tnt express is reporting weaker than expected quarterly results and that may weaken the company's case as it tries to get ups to try to increase a $6.5 billion takeover bid. watching the futures, especially after that news out of greece and home depot this morning, you're going to see right now the dow futures up by about 36 points above fair value. keep in mind the dow was already at its highest level since may of 2008 when it closed on friday, so again some more green air ross. s&p futures up by 2.5 points. scott? >> the eurozone finance

ministers secured a second bailout package for greece worth 130 billion euros. silvia is in brussels with more. >> we got the deal. that's the main news. took us almost 14 hours to get there. as i said before, probably longer than the actual battle marathon. we got there. $130 billion for the second bailout being put on the table. psi agreed on, 53.5%, slightly higher than originally agreed in october but remember we already had up to 70% it could be be, so it's not such a big stretch. we, of course, have to wait and see whether that is going to be signed up for on a voluntary basis, but we had charles d da lara the head of the imf coming up saying he was optimistic, thought it was a good deal and optimistic that enough of the bond shareholders will take up on the deal on a voluntary basis so the collective action clause

which the greek dofts wants to put into legislation in the next couple months does not have to be triggered or come into action as it were. we might have all sorts of trouble in attaining that. bit of optimism out there. no hair cut from the ecb. that wasn't really expected either. but the ecb does least passing on the profits from the greek bond purchases to the national central banks and they don't pass it on to their respective governments but pass it back to greece, that could add another $1.8 billion or so the estimate at the moment. of course the next stop is the summit next week on the first and the second when one of the decisive elements has to be decided and that's the firewall, the efsc, the temporary rescue fund and the esm, the permanent rescue fund, that should come into action in the middle of this year. how much fire power will they ultimately havep. the fire power of the

respective funs will probably not be increased but what we could see as a nifty little trick running both funds side by side for a while, which wasn't the original plan, that would essentially double the fire power. that will determine how much the imf involvement will be. christine lagarde, the head of the imf, said there would be a substantial contribution, yet to be decided. >> thanks so very much. appreciate it this morning. from greece to an economy in flux in the u.s., the perfect guest for the next hour, shashg her thoughts sallie krawcheck, she formerly ran the bank of america u.s. trust and merrill lynch wealth management businesses. thank you for being with us. >> thank you for having me. >> i want to talk about greece, about the banks. but because we haven't had you on in a while, i want to talk about you for a second. you stepped down from bank of america in the fall. and i was reading that you described your tenure there, and i think you were also counting your tenure at smith barney, like the disney ride, the tower of terror.

and i was hoping you might elaborate on that for us this morning. >> there were some things that you say that you can't ever get rid of. and that was one of the comments. i had a great time managing both merrill lynch, u.s. trust, smith barney. loved being there. loved the businesses. loved interacting with the financial advisors. there were some days, however, some days you were sitting in your office, minding your business, running your business, and given what's gone on with the markets in the past few years and the volatility that the banks have seen, i said it would be like you're on the tower of terror. sitting in your chair, if you were -- i assume you have been to the tower of terror. >> i have. >> there are no seat belts. there's a bar, but no seat belts and you would have that feeling, some piece of news, and you would have that sensation of being dropped repeatedly and what they've done with the tower of terror which is very interesting is that you don't know however it's going to drop or how far. that would be the feeling, particularly last august, for

example. >> yeah. >> given what was going on in the markets. >> anybody could see what's been happening with the market house people would feel that way. that was more about the overall markets and what was happening. >> absolutely. >> but just going back to the banks, now that you've worked at two of the biggest banks, the supermarket banks, what do you think of the model? now that things are evolving and changing, is this a model that you think works? is this an industry you still want to work? >> the industry -- i know this is not something that is popular to say, but the industry when done well, very much helps the economy and very much the wealth management business can help individuals. i know you get eye rolls these days when you say things like that, but these can be real engines for growth. what you're seeing right now is the industry is in a real state of flux and i think it's hard to make a judgment about the model until you see with all the regulations that are coming in, what the business looks like on the other side. the other thing that's happening, which i think almost everybody underestimated, is

with this -- with what's happened with interest rates they've gone close to zero. as the yield curve has been relatively flat, as there's been no loan demand, right, the net interest income has declined dramatically. and i think one thing analysts and commentators and, in fact, some bank execs perhaps didn't fully recognize is the net interest income is a very powerful driver of the bottom line. so net interest income on the top line, falls almost without hitting the bottom line. you rarely hear a bank customer that says, you know, they might say i want shorter lines, but they don't say i want shorter lines and more teller service because of the yield curve. right? it's a very powerful force impacting banks negatively. >> we're going to press the pause button for a second. i think we have breaking news, becky. >> yeah. they say we have breaking news. all i see are headlines at this point. walmart with their u.s. same-store sales up 2.4%. >> they're beating a 151 over 145.

>> revenues look light. 122 versus 124, i believe was the estimate there. although, you'd still get that year over year growth which is important. >> do you guys have a release? >> i'm looking -- >> the press release is just now hitting. looking through, yeah, 151, which included net benefits of about 7 cents a share from tax matters and real estate transactions. so if you pull back that 7 cents, out of it you get back to 144, which i'm wondering if that's -- it said the company's shared guidance of 142 to 148 did not include these benefits. i think you're looking at a 144 versus the 145 the street had been expecting. when you look at their u.s. same-store sales, comp store sales up 1.5% for the 13 weeks. sam's club, comp store sales,

were up without the fuel by 5.4%. that's a pretty substantial number. for the full year, we know that their numbers came in on some of these things. i'm going to look for details. >> stocks called lower right now. one of the big issues, on a day walmart takes a stake in the chinese on-line retailer, that's the interesting news of the day, besides these earnings. but walmart's kind of been squeezed between the dollar store model and then the targets of the world and it's been trying to i guess get out from a little bit under that. these numbers are going to be viewed by the street i guess as a little disappointing. >> missed by a penny. i mean it's -- that's the number you're going to be looking at. mike duke, who is the walmart stores president and ceo makes comments he said they're pleased with walmart's earnings for the full quarter and full year. they say they're in a great position for 2013. obviously, though, the street looks very closely even missing by a penny is something you can

see punishment with. that stock down 1.12% in the premarket. again, that 1.5% for the fourth quarter the positive comp store sales, that's their second quarter of positive comp store growth. >> second consec ittive after nine straight misses. they had that really long run of negative revenue growth. >> talking about how they leveraged expenses both for the quarter and the full year.