hello, good morning, welcome to worldwide exchange. these are your headlines from around the world. global security meeting in the wake of the devastating attacks in france. this is nearly 4 million people taking to the streets around paris. oil continues the slide. over 2% down this adding to russia's woes after they downgraded to one novp above junk. cyprus tells they're not worried about con teenageon from greece's political fallout and the worst is over for his

country. >> the danger zone. and even the recession seems to have gone its course. >> and the cnbc learns that the ecb could be ready to announce a quantityive easing program based on the contributions made from national central banks. french president held a emergency cab innocent meeting following three days around bloodshed that left 17 people dead. in london prime minister david cameron is consulting senior intelligence security officials over the u.k.'s response to the attacks. 3.7 million people joined rallies yesterday honoring the victims of last week's terrorist attack. world leaders including germany,

italy, israel, and palestinian walked arm in arm with the french president. the u.s. secretary of state has played down absence referring to criticism, quote -- kerry is expected to arrive in paris on friday according to local reports. >> the partner from one of the dead attackers is at large. she's believed to have travel through syria through turkey earlier this month. they describe the 26-year-old as armed and dangerous. let's get to stephan who is live in paris for more on the story. stephan? good morning. head of the new security meeting this morning the prime minister confirmed that france would remain under high security for the time being. in the meantime some police troops would be placed on the

police protections for 4,700 police officers would be assigned to a protection to more than 700 schools across country. as you were saying, the police are still looking for the girlfriend of the gunman who killed four hostages in a supermarket in paris on friday. but all though she's not in france anymore, this morning the prime minister confirmed she might be in turkey or syria confirming some earlier report from the press saying she flew out of the country out of france at the beginning of the year and was spotted on a flight from madrid to istanbul on the 2nd of january. some people are calling for -- also to learn from what happened last week in the country. that's the view from nicholas the former french president gave an interview this morning to a radio in france. he's calling for parliamentary

commission to understand and to draw some conclusions. it's suggested that france would have to rethink its integration model for the muslim community and increase the corporation with the services including with turkey, which because a country could become the gates to enter the european union. this is what he explained in the interview. after the large rally we've seen yesterday it's back to normal i should say, with a high security alert. with more policeman assigned to security in the country and also to change the way we are trying to protect the country. >> thank you very much. now moving on. divers retrieved one of the

black boxes containing fight data from the air asia plane. search teams working in the java sea located the second flight recorder. the two devices are seen as crucial to unraveling the mystery of what brought down the plane as it flew toward singapore. now look at financial markets. the u.s. dollar is regaining some ground after trading lower this morning. this after friday's payroll data in the u.s. revealed an unexpected fall in wages. here are the numbers. 252,000 jobs were created in december, which was above forecast but down from november. wages posted their digbiggest decline in eight years. the debate continues on whether the fed will raise rates sooner than expected. >> central bank policy and the outlook for the u.s. economy will be the big themes to be discussed and the golden sacks global strategy conference today. let's get to jeff on the ground at the conference.

jeff? >> thank you so much. good to see you this morning. chief economist at goldman. and lots of issues brought up in the studio whether the payroll number moves the needle at all on fed interest rates expectations expectations. what do you think? >> i don't think anything has really changed. the economy is doing very well. we've been seeing that for quite awhile. we look at our measure of economic activity our current activity indicator has been running along 4% the last few months, and i think the payroll number reached -- on the other hand while growth is strong inflation is low. wage growth continues to be low. i wouldn't take literally the month to month decline and average all the earnings in friday's numbers. those month to month numbers can be pretty noisy. it's one more data point saying

wage growth is still well below the range that the fed is targeting. that's going to be a factor also holding down for price inflation. we think it's going to take a little longer than the june meeting before the fed actually hikes. >> what about the participation rate. this has been one that the economists have been avalanching their head over for some time now. again not an encouraging number really in the round. >> month to month that's right. you have a decline by 2/10th of a percentage point. month to month they're noisy. i think the basic story on the participation rate in 2014 is actually not that surprising and maybe a little more encouraging than you suggested. we have gotten a stablezation we're essentially at the same level than we were a year ago. i think that maybe a little bit of room for bounce back in the next report. but the essential story is that

the decline and the participation rate for now has been halted on a longer trend as the improving labor market starts to pull some people who have been discouraged back into the work force. >> this is a mismatch between the analyst community's expectations of what the fed will do this in terms of the first move and what the bond market appears to be signaling. i can't remember a time when we were looking to a rate move in six months and the ten year sat somewhere around 2%. >> yeah. >> who has it wrong? >>, i mean, i think that in the short term it's not that much of a disagreement. if you look at where the market is actually pricing the first hike, it's not that far away from the sort of june july sort of time frame that the fed is signaling. where you have a big gap is in terms of longer term expectations for where the funds rate is going to go. the market is saying 2% by 2018

2019, and both the fed and most of the forecasters despite our sort of later lift off they're in that camp too. expect something closer to 4%. and i think there the bond market is too low. i think while there's good reasons for the fed to delay the first hike in the funds rate, i think by 2018 2019 the economy will be back at full employment. i think interest rates will be quite a bit higher. >> what about factors the fed have to deal with? janet yellen avoided talking about the rest of the world in recent meetings. reports this morning that acb will go with the bond buying program that reflects the make up of membership of the council and that it will be in the ballpark of $500 billion euros. what difference will that make to the way the fed views

deflation their pressures and implications for the dollar for the rest of the year? >> i think they're offsetting factors. i wouldn't want to be too dogmatic in terms of the implication for fed policy from what happens in europe. at one level, of course if the europeans deliver the monetary easing that is really overdue and i think most people at the fed think they should have done it a long time ago, that is a factor that probably helps the global economy and reduces some downside risks. is a strike against deflation their pressure. on that basis it is something that might facilitate and move toward the exit. against that you have the currency effect. if the currency effect is large, and the euro depreciation we've been seeing and the rise of the dollar continues and goes as quickly as what we have been

seeing, that cuts in the other direction. i think you want to evaluate financial conditions broadly, not just the potentially positive impact they are having on the european bonding and equity markets but the currency effects. at the moment that's looking -- >> look there's a lot of leaking going on suggesting that this is the program we'll get from the ecp. if it's only in the ballpark of $500 billion euros. should we be concerned it won't be enough to change expectations for growth in europe? >> yeah. i would say $500 billion is not a small program, if you compare it with some of the programs that the ecb that the fed has done done, you know, similar order of magnitude. so it's not a small program. that said my own view is that we really do need a large effort

by the ecb. they have been behind. they should have moved in the direction of much more aggressive monetary easing a lot earlier. so they are playing catchup in that context. i think more would be better even though $500 billion would help. >> it's been a pleasure. thank you so much. we're going send it back to you guys. stay with us. come back to us in about 20 minutes, time. we're going to talk to richard gnodde. joining us overseas. he's a big chief over here at goldman. we'll pick up with him. on the outlook we have the kvgts as the big deal has been announced. we'll send it back to you for the time being. >> megadeal is something to watch in the coming year. thank you very much for that interview. we want to get you update on china headlines. china raised the consumption tax on oil products from tuesday.

that's according to the ministry of finance that just came out. consumption tax on gasoline solvents, and lubricants will be raised by .12 liter. something markets are watching is how countries are reacting with the drop of oil. interesting to see they're raising the consumption tax rather than lowering it. let's get a market update now. >> last week in european markets we tried to get into the green for the year as a whole. friday sell-off put us in the red. so far today we have half a percent of gains. we're just in the green for the year as a whole for the stock 600. a little bit of surprise. we were caught mix off asia has mix overnight and friday's weakness particularly in the u.s. we have half a percent of gains in the stock 600 so far. let's look and more of the strength coming in continental

europe today. let's look at the individual markets and see where we're seeing this. the u.k. is the relative only.86%. and the three all up around 9.8%. in the u.s. we did see a bit more bum buying after the jobs print on friday. as we said the jobs number itself did beat expectations. that wage decline was what hurt markets. we saw a bit of bond buying and we're back to the 1.94 area. we didn't see any bond buying specifically on friday in europe but of course yields remain low. below 1.5% in germany. expectations have a bit of bond buying from the ecb. the u.s. dollar gave up a bit of ground on friday. because we've seen yields come down and the wage number that

made people think that the u.s. economy might not be quite as strong. as the course of 2015 the u.s. dollar is divergence. for example against the dollar and the yen it lost ground against the euro it continues to strengthen. the euro is off 1.18 it's hovering around a nine-year low. against the ozzy dollar and the yen it lost a bit of ground. let's, in fact check on markets in asia. we are standing by in singapore. >> good morning. very sluggish session out here in asia. remember though volumes that much more on the ground today because the japanese markets are closed for a national holiday. so in volume terms we're a little bit thin on the ground. elsewhere we're seeing the shanghai off the worst level of the day at the close. but still the rank under

performer, the property the utility, and the energy all lower leading the market lower. another is more than 20 new listings come to market. that's drawing some attention. drawing liquidity away from the listings on the main boards. the hang seng has been prop top single handlely by asia's richest man. he restructured his business empire. investors applauded that news sending the holdings up by as much as 20%. the family also $2.5 billion richer as well as a result of the overall of the business empire. elsewhere it's a fairly sluggish session because of the lead we got post payrolls in the u.s. i think it's the wages growth that concerned the investors. all right. back to you in london.

>> it's not just lee celebrating today. happy birthday from all of us here in london to you! >> thank you very much! i'm very touched. >> thank you very much for that update. what else? >> all right. coming up on the show we take a walk down the red carpet to bring you the glits and glamor of the golden globe awards. from flashy stars to hot cars the world's largest automakers unveil their latest models in detroit. cnbc speaks to the top croweos throughout the day. the national retail federation plays host to the industry's biggest players. we get a preview live from new york.

greece made opposition. they're holding the leader with lean two weeks until the nation votes in a general election. they lead the incumbent new democracy in nine separate opinion polls ahead of the vote.

he would claim 27.1% and 32.1% of the voting. they outlined economic strategy his party would follow if re-elected which includes a series of tax cuts. cnbc learned that the european central bank could be about to announce a quantitative easing program based on contributions from national central banks. our own annette joins us with details on what you're learning on the ground and what is happening on the ground in brussels. >> thank you very much. yes. they a source was telling me that the program by the ecb might be decided -- we recently speculations that there might be a higher risk sharing model across the eurozone what the bank might like.

they're against any risk sharing with the likes of greece or even italy. so what we are learning right now is that this might not be the case that contrary to that it will be a very clean according to the capital payed into the bank model if they're going to decide on having qe as soon as january 22nd. i'm here in cyprus. cyprus is one of the countries who has to pay out almost two years ago and still in the program there. they're still rated noninvestment rate. they have huge problems also with the banking sector. looking at the banking sector, it's an astonishing figure. 50% nonperforming low. they're still sitting on in that country. and prior to the morning, i have to say i spoke to the finance minister here on the ground and i asked him what they're

planning to do about that nonperforming loan problem. take a listen. >> we had a unsustainable credit expansion during the previous years, but even this problem has reached its peak and it's becoming much more manageable now. the loan restructuring and the processes we see the gradual reduction of this problem is underway. bear in mind that the high percentage is also due to statistical -- a loan will continue to be registering as a nonperforming maybe for another year even though it actually has been restructured and being served. so it's a combination of factors. it is a problem. it's one of the problems that we take time. >> even though cyprus is a small

economy, it might also be like a model for other economies when it comes to the question of how effective qe and the unconventionalness of the ecb might be in the eurozone to spur credit growth to spur inflation. currently here the banks are such in a dire situation that any unconventional measure will not make them to make more money. if they're sitting on huge problematic assets. so the whole question is probably circling around that big topic. what can the ecb really do in the situation? the eurozone economy is in. and further qe is actually really helping the eurozone or not. back to you. >> thank you very much for that. and in the next half hour we'll speak to cyprus' former central bank governor who lead the country through the

international bailout amid fierce criticism. he'll join us at 10:50 cet. >> you won't want to miss it. let's focus on russia. we're seeing moves there. the ruble treating weaker. after -- moving one step closer to junk status. the agency said the country's economy deteriorated significantly and growth may not return until 2017. the ratings agency added if crude stays below $70 a barrel it could, quote, precipitate a deeper recession and put further strain on public fitnesses. >> let's look in on the oil price. they posted the seventh consecutive week of declines last week. continues the down trend today. they are over 2% today trailing at 27.25. the oil price a big impact on

russia. and the goldman sachs lashed the outlook for 2015 and 2016 oil price forecast this weekend. the three-month process was cut by almost half to $42 a barrel. goldman said u.s. crude would need to stay around $40 throughout the first half of the year before shale investment would have to be reduced. a lot of people criticize the ratings agencies of being too reactive not predictive. this is a great example of that. they haven't put russia on junk status yet. the question moving forward over the force of q 4 it was down to the oil price. i wonder whether sankctions will hurt them. >> i would argue perhaps more so the oil price given that 50% of the revenue comes from oil. aren't they late to the game? we've known about the laundry list of challenges that russia

is facing. a mix of western sanctions and decline in oil. they're a little bit late. we know they're going face a couple of years of downturn before we see growth pick up in 2017. >> absolutely. and the third factor which is a massive rate hike to protect the currency and the impact it will have on the domestic economy. the fact that the downgrade -- it seems basha surprising. >> yeah. we'll keep you updated. still to come. let's talk mna. we bring you the details of that deal and what to expect going forward. >> we will also be talking about other deals in the pike when we get an outlook for the rest of the year with when we talk with richard nod day. coming up after this break.

global security meeting in the wake of devastating attacks in france. this is as 4 million people take to the streets in a show of strength. >> our eye is on oil. oil continues with wti over 2%

lower. adding to russia's wows after fitch downgraded to one notch above junk. cyprus' finance tells cnbc it's not worried about con teenageon and the worst for his country is over. >> we're coming out of danger zone. and even the recession seems to have run its course. >> and cnbc learn that's european central bank could be ready to announce a quantitative easing based on the contributions made from national central banks. now struck a deal to buy u.s. drugs maker pharmaceuticals for $5.2 billion or $46 in cash. this is the first deal since the take over fell through in october. we will bring you share prices a

bit later. we're discussing this now and the hunted becomes the hunt per. >> -- yeah. >> we heard all the way through 2014 the fact that it was going to be the target of the bigger u.s. rival driven in part by the tax deal. that was taken off the cards by u.s. change in legislation. the deal got abandoned. there was a $1.6 billion break threw thank you very much which shire pocketed. it's gone out now and bought a u.s. company for $5.2 billion mps, both boards have agreed they have used most of it as cash. they have about $3 billion of debt. remember at the moment debt is incredibly cheap. and this is an industry that has seen a lot of consolidation and we'll have to continue to see

consolidation because the world of drug makers is really changing. and remember we also saw last month american bought another company. there's going to be more activity in the space. >> that's what experts have been forecasting the rise in mna. some traders were surprised given it's a bigger than $5 billion deal to buy the bio tech company. only has one drug on the market. there's another drug in development hormone replacement. we learned with the fda you never know. >> we're expecting to hear from the fda later this month on this drug that treats hyperthyroidism. it's a specialty drug. but this is what drug makers are after at the moment. i think the question for a lot of shareholders would be we talk about the 10% premium to last

week's close, but really when you look at the price ie what they were trading at before there were any rumors of shire. this is a 51% premium. and nps is still a making company. it's a strategic gamble of the chief executive want to make payoff. >> if they have cash on the books to allocate toward the acquisitions. thank you so much for bringing us those details. shire ceo dr. flemming will be on fast money today at 5:15 p.m. eastern. it will be great to hear what he has to say about the deal. >> indeed. we're going to talk more in a minute. first of all, flashes coming out of france where french prime minister says it's likely that the militants have accomplices and he says he plans to deploy more soldiers in france. so of course the situation

continues to develop. saying that the militants likely to have had accomplices. speaking of shire, can we expect more megamna over the course of the year? that's one of the questions up for discussion at the goldman sachs global strategy con sense live in london. let's get out to jeff who is joined bay special guest. >> yes, thank you very much for that. richard nodder is with us. he's co-ceo. we have to tread carefully under the shire deal. i understand you're advising a little bit on this. >> yes. >> let's pull back on the deal details and ask you what the announcement reflects in terms of appetite for mna in the early days of 2015. >> it's an encouraging start to the year. obviously the corporate story of 2014 was activity and up significantly something like 50%

in volume terms. tell come technology health care big sectors in 2014. it's a continuation of the trend and we've seen this transsanction it was terrific to see the market react on the shire side on the way it did with the stock price going up. it shows that the market is still supportive of mna. but we expect it to continue. i think health care will be a big tell com we'll see a lot of activity. and some of the sectors -- energy there's so much change in the energy space. that will likely lead to activity. i think we'll see another strong corporate year on m & a side. >> it's difficult to take a deal and pull trends from it. but there are interesting features on the deal. 10% on the global price on friday. do you think that marks out the kind of premiums we're going to see running through 2015 and the structure of deals that we're going to have in that 2 to 3

billion space? >> of course it's always very deal specific. markets are much higher levels than they were when the m & a started 12 18 months ago. premiums will start to compress as the market gets to higher levels. but for the right assets i think we'll get good premiums. i think you'll continue to see a use of paper in terms of structuring and funding these transactions. but, of course cash is very cheap and i think people will use cash you can borrow a lot of money for not a lot of interest. >> that's fascinating, i think. as we look to a first move from the federal reserve and the market just starting to get the head around the idea that money starting to become a little more expensive. what that will mean for the shape of the year as a whole. because we had your colleague on earlier. he said we're not expecting the

move until post june. it looks like a two-half year. what will that mean in the way deals are funded and when deals happen? >> well, of course there's going to be divergence. you're talking about the euro story. europe is going the other way with qe set to start as we get to the back end of the month. i think the u.s. will be very interesting. we've been through, you know, four or five years of economic recovery and we've still got interest rates close to zero. as we start to move out of that situation, that's unprecedented. you know, economic growth for as long as we've had interest rates moving how it plays out. i'm sure there will be a few surprises. everyone is backing on a smooth steady rise. i'm sure we'll see volatility. that has to be settled. what we're seeing in europe with rates staying low. the currency coming down. the impact of oil. we'll start to see greater divergence between the two economic. >> that's interesting you mention the prospect of qe.

the stories about how the qe might be structured and the size of that. what do you think that will mean for how european ceos think about the deals they might want to do and the premiums they're prepared to pay if we're talking about cross border european activity? >> well, i think the european ceo now is going to start to feel more confident as they get toward the end of the year the prospects for profit growth will start to improve. you know, as the currency comes down, that's clearly a boost. and so you can see a strong argument for in terms of the economic forecast there have been a risk to the upside. i think our clients will start to see that and benefit from it and give them greater confidence. i think it will pick up and continue to be strong on the back of that. >> and obviously, advisory is one of the areas where you want business in 2014.

this year not only the m & a issue but companies working out how they respond to the changes in the energy price. what advise do you think you'll be giving this. >> i think there will be winners and losers. and there are many companies that are heavily expose to the energy price and that's part of their core business. they are going to have to adjust their cost structures. there may be need for rationzation we'll be working with our clients as we work through the changing environment. but then, of course there are many winners. i think the overall economy will be. and i think there are a lot of opportunities on the back of that. i think the transaction last week when we worked on was an interesting start to the year. so obviously a very significant. strong management team a strong forward looking story. we've been able to raise $7.5

billion. credit to the bank and the management team but really an indication of the interest in europe and how quickly and what in size you could stimulate that interest. i think it was an interesting sign for what is possible as we go into the year. >> i think anybody looking at -- you're in a closed period now. we can't get too detailed about what expectations are for business, but anybody that looks at 2014 as a whole saw the investment bank really pulling gold mapp sackman sachs along. we know capital markets have been challenging the trading side. do you think that's how 2015 will pan out as well. this will be a story of the investment bank again, does the heavy lifting for the organization as a whole? >> i'm sure that my trading colleagues will be working hard and doing their best to really play their part which is a significant part. i'm sure that will come through. it was in 2014. i'm sure it will continue to be

in 2015. on the investment banking side we look forward to another strong year. volumes in 2014 are significant. if you look at the m & a values in 2007 you know, 2007 was the last time there were three levels. same on the equity side. it broad strength across -- on the investment banking side and all signs that will continue. i'm sure we'll have periods of volatility in 2015 and i'm sure there will be periods when the market are shut and we have to work with our clients as we navigate those. i expect another strong year. >> and let me pitch a quick one. activism has, again, been a big story for 2014. we're starting to see well-moneyed hedge fund leadership in the area. what do you think the implications of that are going to be for deal making and for the way businesses are run this year? >> the activists phenomena,

which has come to europe. it's been a big phenomena in the u.s. it's clearly got the attention of companies. people anticipate the threat of an activist and make sure they're doing the things they should be doing. and it helps drive corporate thinking and strategy and i'm comfortable as the activist when it arrives in your register it's no doubt it's been a catalyst to getting companies to move into get to the desired position more quickly. >> it's been a pleasure. thank you so much for your time. >> let's wrap it up here from goldman sachs. i'll send it back to you in the studio. >> jeff, thank you very much for the interview. still to come on worldwide exchange. should tesla gear up for new competition on the electric car front? we'll look ahead to the detroit auto show as the world's automakers ready to unveil the latest model.

her say deez they unveiled a new mid size suv on the eve of

the detroit auto show. last week her say does wants to knock bmw from the pedestal. on a programming note. oopz he'll be on cbnc at 11: 30 a.m. eastern. gm is taking direct aim at e lon musk. they're planning a 30,000 electric car called the chefly bolt. that can drive 200 miles on a single charge. they plan to introduce the bolt in 2017. the volt would be a direct competitor to the tesla model. jaguar land roves global sales rose 9% to over $462,000 last year. in china the sales rose 28 percent. the north american sales increased by 2% during the same period. let's get more market perspective on jag's future

opportunity with head of the automotive research. pleasure having you here. i want to ask you a question on jaguar. they unveiled their suv, of course, in the u.s. we're seeing stronger demand for bigger vehicles because of lower gas prices. do you think that had to play role in jaguar unveiling the bigger suv car? >> not really. these decisions were taken years ago. there's a huge boost in demand for suvs globally. not just in the u.s. but the chinese like these cars. it's selling well in the emerging markets. it's helping nowadays but we need to be careful. oil prices might be rise again and we're talking about electric vehicles. will it normally we say within brands there's a 20 to 30% cannibalzation. some will say there will be some. >> you talk about stronger sales from china. for markets they're focussing on the economic slow down that will

plague china going forward. where are we seeing china as a big kbroutgrowth story for the auto market? >> we see it for western companies that are adding more product and deals in china. growth has slowed down but it will not fall off the cliff. instead of growing 20 to 30% think we think western companies can grow by 10 to 15%. margins will compress a little it's a nice to be region to be operating in. >> let's talking about microfactors that affect the market. a weaker euro has seen a boost to the german automaker. the weaker yen hasn't. >> we haven't seen the currency trade driving auto stocks to be fair. as you said in japan, evaluation of oem stocks decoupled. european autos did okay but not

great. when we see the earnings coming through when companies revise their guidance when expectations are moving up and stocks will move higher. >> and what are your top picks for 2015? companies that could benefit from a weaker euro. many analysts expecting 110. >> if that's a case it's a completely changed global economic framework especially for exporters. we like the germans within germany. nissan and toyota. >> i see why it would make people want to drive more if they have a car. does it make a difference in people spending 20 to $50,000? >> only if oiler drops for a longer period. that has an impact on demand. but short term fluctuation in the oil price don't have any impact on demand. i would be careful using that as a big argument to buy auto stocks here. >> thank you very much.

also on the channel live from the detroit auto show later on is ceo of nice san. we didn't get to talk about electric cars. we'll save the discussion for tomorrow. but back to broader markets and what they're watching. greece a big concern. greece's main opposition is holding the lead in the opinion polls with less than two weeks until the nation votes in a general election. the left wing party leads the incumbent new democracy in nine separate opinion polls ahead of the vote on the 25th of january. according to the polls, syriza would claim between 27.1% and 32.2% of the voting. that's a concern if greece leaves the euro. >> of course. a big issue to be focussing on. with that in mind greece should temporarily quit the eurozone and needs a debt

haircut. he's calling for a international debt conference to address what he quotes is a miserable. we'll be broadcasting from five eurozone countries this week. we start in cyprus the sector is on the mend. the they are preparing for two international debt issues this year. speaking exclusive to cnbc earlier the finance minister said he was not too concerned about contagion. >> we have a separate economy. the links over the past are not there anymore. >> you're not concerned about -- >> no. we don't see any problems. we have a stable economy now acays. we're intending to grow.

we are not concerned. >> joins ounce the phone is the former governor of the central bank of cyprus. good morning to you. thank you very much for joining us sir. we heard from the finance minister who said we're out of the danger zone for awhile. and recession seems to have run its course. would you agree that cyprus is out of the danger zone? >> well, i think the first thing that needs to be said is that as the minister rightly mentioned, the links, the links that were present in the past are no longer there. and let me be more specific about that. the links that were between the two banking systems and the sip ree yacht banks had a network of branchs within greece. at the time, in 2012, it amounted to about 150% of cyprus

gdp as it a contingent liability. and this is what lead to the successive downgrade and eventually it did to the lead application of cyprus for a bailout. in march of 2013 when the agreement happened it was agreed that those branchs would be sold off. that was called the greek carve out. there's been a lot of criticism of that decision. today we can see the wisdom of that. it is precisely, for that reason, why today cyprus is out of the danger zone should the worst happen to greece. and i'm not saying it will happen but certainly that risk is there, and today cyprus is not less vulnerable than it was two or three years ago.

because there are other risks, however. i believe all the other risks are manageable and in the hands of cyprus itself to manage. the links that remain between the three economies aren't to do with the banking system and the greek banks. the greek banks are operating cyprus, and those risks, of course, are much smaller than the figure i had in mind before i left around 7 to $8 billion. there was about $7.5 billion of loans by those bank branchs in greece. and we have already started the process for those banks. >> i want to get your thoughts on confidence level. it was in march in 2013 when two of cyprus' banks were on the verge of a collapse.

it had a big impact on the banking system and confidence levels among citizens inside cyprus given there has been the path to recovery. has that improved business sentiment and confidence levels? clearly, again, all the restructuring that happened which was done by the central bank of cyprus has helped to strengthen the banking system and bring back confidence. i saw a link today in the news that the credit underwent a significant amount of restructuring begun to attract deposit into the system. there's been an increase in the deposit which is a reflection of the restructuring that has happened. it's a reflection of the fact they passed the stress test. and again there i want to mention in the program of about

1 billion that was in use for the banking system because the restructure and recaptainlization was successful. that is available to the country. should there be any losses from if there was a default of greece to its loan and the european -- that would affect all the euro countries including cyprus. >> okay. thank you very much for joining us. the former governor of the central bank of cyprus. we've had questions about repay repaying some of the ltr money. that's due in the next couple of minutes. we'll bring you more after the break.

and happy monday morning to everyone. welcome to "worldwide exchange." here are your headlines. we start with paris. the white house calls for a global security meeting at the wake at the devastating attack in france. this as nearly 4 million people take to the streets in and around paris in a show of strength. u.s. dollar falls friday's losses showing unexpected drop in wages. u.s. futures also pointing to a positive open. >> the cnbc learning that the ecb could be ready to announce a quantitative easing program based on the contributions made from national central banks. >> shire kicks off mega m&a with

a $5 million purchase. coming up cnbc speaks to the ceo in an interview later today. in the last hour, the french prime minister said that militants involved in the paris terror attacks likely had accomplice accomplices. he announced more soldiers will be deployed to protect synagogues jewish schools, and mosques. people joined rallies honoring the victims of last week's terrorist attack. world leaders from around the globe including germany, italy, israel, and palestinian worked arm and arm with francois hollande. the u.s. was absent from the march but u.s. secretary of

state played down the matter referring to criticism as quibbling. kerry is expected to arrive in paris on friday. that according to local reports. u.s. attorney general eric holder announced another global accident occurty summit will be held in washington next month to discuss how to counter act violent terrorism. speaking to meet the press he added al qaeda remains a viable threat. >> once has to understand it is difficult to maintain a good contact to stay in touch with all the people who are potentially going to do these kinds of things. that's the thing, i think, keeps me up at night. the concern about the lone wolf who goes undetected. but we're doing, as i said the best we can. marbling the resources we have. >> we are in paris with more. >> reporter: good morning. as you mentioned 4 million people marching across france yesterday. we had major world leaders angela merkel david cameron

walking arm in arm down the streets of paris. they all gathered here together and they understood they say that is a global threat that requires a global response. the big question now is who is going to lead that global response? we asked the e.u. counter chair chief. approve major resolution in september. but there is not one single forum where this is -- it impacts many different. so i think we're not missing any -- >> how worried are you? >> i think the threat remains very serious. it's much bigger than before because it's more diverse. but we know they are still

flying -- somewhere on the western world. >> another very very big question on the minds of many people here was where was president obama? where was john kerry. john kerry weighed in tweeting the idea of this being a big problem is quibbling. something to watch out there for. you'll have more comments i expect as washington wakes up. and you have to remember france remains on a heightened state of alert. 10,000 security personnel being dispatched to the biggest places where things might happen. 5,000 security police and security personnel dispatched to watch other jewish school. frances remaining on a heightened state of alert. people are watching and waiting to see how francois hollande takes this forward. >> thank you very much. and on the monday morning let's take a look at u.s.

futures. we're looking a the ing a ting a the s&p indicating higher open. the dow jones industrial up 86%. and the nasdaq closer to hitting a 14.5 year high. trading around 20 points. an important week for the u.s. markets with u.s. corporate earnings kicking into high gear. on that note take a look at the ftse. good gauge of stocks. we're looking a the index. it picked up a little bit of steam. we're at session highs of just about 12 points in today's trade. diving into the european markets, a volatile start to the year. right now we're looking at european stocks lower in 2015. but in today's trade we are higher. of course, sources close to cnbc getting more details on the unveil of the quantitative easing pam. we'll get you the details from the reporter in a couple of minutes. right now we're looking at green across the screen. ftse 100 also up joining in on

the rally up just about 40 points. kicking off the week in the green. >> absolutely. and taking european markets as a whole and just about into the green for the year as a whole. let's look at bonds. we saw a bit of bond buying in the u.s. on friday on the back of the payroll report where we see wages decline unkpektexpectunexpectedly. we saw bond buying taking yield back toward 1.95. today ticked up to 1.97%. we're expecting equity markets in the u.s. to open in the positive. so a little bit more risk on today compared to friday. yields in europe didn't move too much on friday in correlation with the u.s. they're still, of course near record lows. expecting some action from the ecb which is why yields across europe remain solo. the u.s. dollar has regained a bit of momentum today after

friday. after the wage growth issue. a bit of momentum. euro continues to weaken which has been the trend throughout 2015 as it was for 2014 for the euro. it's near nine-year low. it's down a quarter of a percent today. the dollar gains against the yen today and aussie dollar. for those two pairs over the course of the 2014 2015 thus far that hasn't been the case. the aussie dollar and the yen gained a little bit of ground against the u.s. dollar. today moving the other way. u.s. dollar strength across the board off friday's weakness. let's look at commodities. more oil price weakness is how we're quicking off the week. down just over 2%. brent at 48.9 down 2 1/2%. maintaining the position. early in december we saw resist for the gold price around 1230. it's testing that level.

it seems a little bit more comfortable than it was at the back end of last year. >> cnbc learned that european central bank could be about to announce a quantitative easeing based on contributions from national central banks. jeff is live at the goldman sachs global strategy conference discussing the plan ahead of the january 22nd meeting and what we can expect. what are you learning? >> it's been very interesting here talking with the goldman sachs. just what the implications of this deal would mean for european economies. the chief economist at goldman sachs, and we talked a little bit about how the arrangement might be structured for sovereign bond buying but really it's the headline number i think is grabbing most attention here. 500 billion euros on the face sounds like a large amount of money. at this point, is it enough to

really jolt europe out of its current growth path? so that was the question i asked. 500 billion euros. does he think the number is big enough? >> it's not a small program if you compare it with the programs that the ecb that the fed has done. done. you know, similar order of magnitude. so it's not a small program. that said my own view is that we really do need a large effort by the ecb. they have been behind. they should have moved in the direction of aggressive monetary easing earlier. they are playing catch up and in that context i think that would be better. >> so that was the view from hatzius. we talked about the direction for the u.s. economy as well in the light of the payroll number and making the point he thinks

that the u.s. economy has escaped velocity in spite of some of the weakness in salary numbers in those payroll figures. i just want to move you on here. only on programming this morning, we talked about the shire deal for nps. fascinating. we're barely into the first 10 to 15 trading days of the new year, and already we have a big piece of m&a to discuss. shire lining up the bid for nps. a little over $5 billion. i had the opportunity to speak to co-ceo for goldman sachs international and a big wield within the investment banking system here. we had to be careful about what we could talk about because he's advising on the goldman side. my question was in the early day days of 2015, what is the deal represent in terms of the trend for m&a to come?

let's hear what he had to say. >> markets are higher level than when the m&a run started. premiums will start to compress. i think you'll continue to see in terms of structuring and funding the transactions. cash is very cheap. i think people will use cash. you can borrow a lot of money for not a lot of interest. >> and that of course is a critical point at this time. if you can still finance it relatively cheap levels, there is the opportunity, obviously, to raise money to go out and do deal deals at this point. and just on the question of funding, we're also pointing out that goldman was involved in the san tan deal last week. and raising an excess of $7

billion in short order. there is still money in the market for deals to be done. that is the message here from the goldman sachs conference. let me send it back. >> jeff thank you very much. coming up on worldwide exchange. u.s. earning season unofficially kicks off. who will be the winners and losers? we'll discuss after the short break.

welcome back. let's give you headlines. the white house calls the global security meeting in the wake of the devastating attacks in france. u.s. futures indicating a high open as earning season gets underway. and cnbc learns they could be ready to announce the program based on the contributions made from national central banks. yeah. we want to get you a quick check on european markets. we are very close to hitting session highs right now. european stocks picking up a bit of momentum. remember we heard from ecb governing council member who said do not underestimate the risk of deflation. that putting more focus on whether the ecb will unveil full blown quantitative easing at the january 22nd meeting.

all eyes on what will be said. stocks up 600. we're up about 1% on the day at session highs. another thing that investors will be watch earnings out of the u.s. earning season getting underway with jpmorgan's fourth quarter results due on wednesday and al go with a's numbers after today. analysts are expecting soft profit growth. profits for the s&p 500 companies are forecasted to rise about 1. 1%. slowest growths since 2012. if you exclude the energy sector profits may rise 6.3%. so a lot of numbers we threw out there. let's get more market perspective with patrick spencer, managing director. patrick, a pleasure to have you in. a big week for u.s. markets with earning season in focus. many analysts say it will give

us further clarity with how companies are dealing with declining oil prices. >> alcoa is traditional to kick off. that's tonight. it's a big consumer of oil. it might talk about that. so i think it's going to be certainly a mixed message. i think it's right these numbers will be somewhat muted because of high roll prices. the biggest, i think, revisions come into the quarter from oil stocks. the companies were looking for 25% decline. that's going to mess the top line, as you have alluded to. but otherwise, you know, we remain optimistic for the year in terms of earnings. >> it's been an unsteady start to the year for equity markets for the u.s. included. is that part of down expectations of weaker earnings or other factors? i think other factors. i think volatility concerns about deflation, global growth i

think has been thrown into the mix. i think the one bright spot though, is the u.s. so we can discuss that further. but i think that and the u.k. will remain in fact bright spots this year. >> the fundamental outlook for the u.s. economy rather than the market outlook? >> the market and the u.s. economy. it's a real sweet spot at the moment. i was checking this morning oil prices are below $2. you have pmi in the mid 50s. you have a strong dollar. you have 30-year mortgages. we have jpmorgan we can talk about mortgages later. 3120 mortgage and a consumer that is being reflated by their oil prices. you're in a sweet spot for the u.s. i think that will show very strongly this year. >> how much do you think the drop in oil prices will boost annual disposal income. we saw on friday a lack of wage growth doesn't it stop the consumer from spending more?

>> no. retail sales in the states are up 5%. that's a healthy number. also i think we estimated that every $20 drop in oil represents half of a percent increase in gdp. even my dear wife was saying this week how cheap it was to fill up the car. when that sort of happens you know things are being affected globally. >> and things will fred mentioned the volatileity we've seen over the past one week. when you see the volatility is that concerning? what type of conclusions do you draw from what we've seen over the past couple of days? >> yes, the lovely saying of warren buffett comes back. it's not timing the market it's time in the market. you have to remember the u.s. is up nearly three times since 2008. you have to remember last year the s&p was up nearly 12%. the dow was up 7%. you're still seeing healthy gains in the market. the key is to remain in the market. okay.

as the market gets more expensive. you have to be a little bit more selective. the key is to remain invested. >> you mentioned evaluation. is that something your clients have shown concern even though the u.s. economy seems like it is accelerated? >> not really. it's on 60 1/2 times this year just under 16 next year. the 30-year average is something like 15 times. >> it is above the historical average. >> yes. it is not excessive either. and with an earnings yield of 6% and 10-year treasuries just over 2, i would know where i would like to put my money. >> and that's where? >> in equities of course. >> u.s. equities versus european? >> i think so. even europe is beginning to look interesting. russia, to me looks fantastic. >> really? >> as a personal investment. gas trades on three times cash flow. most of the companies on the russian stock exchange trade below. they trade on four times

earnings. you have 500 billion central bank that underpin the ruble. as a long-term investor russia is looking interesting. >> a lot of bad news is in the price. step in gently. >> thank you very much for joining us this morning. patrick spencer. internal document revealed the board is working intensively on the next strategy. details of restructuring plans to investors in q 2. that is due coming up the ceo andrew jane has said the management board is working on the next phase and they'll update stakeholders and investors and media day in the town hall the second quarter. the stock is up 1.1%. that's broadly in line with market moves in europe as we

stand. now shire strikes a deal to buy drug maker nps pharmaceutical for $5.2 billion or $46 dollars a share in cash. this is the first deal for shire since the take over fell apart in october. shire, as you can see, has been flat on the news so far today. nps up around 11% in frankfurt trade. shire ceo dr. flemming will be on fast money today. that's at 5:15 p.m. eastern time. the biggest stage in college football is getting set for the national champions. when my oregon ducks will play the ohio state bucks. more on what to expect as well as a controversial call that took place over the weekend. more on "worldwide exchange."

and sports fans listen up. oregon and ohio state will face off tonight in the ncaa championship game at the dallas cowboys at&t stadium in arlington. nbc jay gray is in arlington, texas. it may be early, jay, i'm sure there's a couple of people tailgating ahead of the game? >> yeah i think there are some

people just ending up last night here. there are also some folks lined up tickets going on sale today. this is where it's all going to happen. in a state of texas, where you talk about where football is king. at this stadium many people call a palace. they're going crown a new national champion. the first time they had a division one football playoff. and it either your ducks or the ohio state bucks. i have to tell you with the more than 60,000 fans pouring into the area it seems pretty split. we've seen fans from both teams. everybody confident. it sounds like it's going to be a pretty good game. we've had a winner economically. the north texas area will see more than 300 million in revenue from this game. overall, when you look at the big picture more than a billion dollars, that's in ticket sales and everything that goes with the national championship. so a huge success so far. now we just goat the part that so many people are focussed on

the game on the field here later tonight. i know, when you want to win. i think so you a pretty good chance of seeing the first national championship. >> i hope so. my money is on oregon. a lot of excitement today, of course, given they're in the championship! i wish i could be there. but definitely will find a way to watch here from london. jay gray live from arlington texas. >> i have to say i think the bucks will win it. >> you have to say that because i'm taking the ducks. >> i know. they had a great result in the semifinal they were down 21-6. if they can do that they beat the ducks. >> did you google that? zbra i did. >> i'm impressed. still to come. the oil price has halved over the past six months. our next guest thinks energy shares have not bottomed. when it is it time to buy oil companies? we'll discuss it after this break.

you're watching world wide exchange. here are your headlines from around the world. the the white house calls for a global security meeting in the wake of the devastating attacks in france. this as nearly 4 million people take to the streets in and around paris in a show of unity. the u.s. dollar after payroll show unexpected drop in wages. u.s. futures also pointing to a

positive open. >> cnbc learning that the ecb could be ready to announce a quantitative easing program based on the contributions made from national central banks. shire kicks off at mega m&a with the $5 million purchase of for a a farphp . and if you're tuning in. thank you so much for joining us on this monday morning. let's take a look at marks after a involve tire start to the year. now the s&p 500 indicating a higher open just around 8 points. the dow jones industrial up 74 points. nasdaq up 17. stocks recovered on friday after a rough start to the year. so far in 2015 interestingly enough utilities, the only sector that is trading in

positive territory now are focus turns to earning season. so the impact of lower oil prices weakness in russia as well as europe and the stronger dollar. how is that impacting u.s. corporates? we'll get that answer as earnings kick off this week. but aside from earnings we have to take a look at european markets. they're at session highs gaining a little bit of momentum here diving into the individual regions. the ftse 100 up about 4/10th of a percent. our focus will be on the ecb governing council meeting. will mario unveil quantitative easing as well as bond buying especially after the negative read on inflation. that's going to be the big question. take a look at the euro dollar. we've been looking a the euro trading lower against the u.s. dollar. 9 1/2 year low trading at 117.96. those who have been watching the trade in 2014, this continues to play out into 2015. ahead of that meeting on january

22nd. the other big story has been oil. >> absolutely. they posted the seventh consecutive decline of seven weeks. they offer just over 2% today. wti at 42.4. brent at 48.the. goldman sacs slashed the oil price forecast to three month price estimate was cut by almost a half to $42 a barrel. but goldman said u.s. crude would need to stay around $40 throughout the first half of the year before shale oil investment would be reduced. let's join steve chief strategies in jacksonville. good morning to you. thank you very much for joining us. let's touch on this oil price decline. because a lot of people are starting to call the bottom of it or suggest that any prolonged weakness around the levels would see demand pick up enough to lead the oil price to rebound.

that's not your base case is it? >> that's right. i've been tell my customers for do not see a bottom in oil and in particular i don't see a bottom in energy stocks. there's a specific reason for this. it's really the lens i look at the world through i'm looking for investments that are cheap, and started an uptrend. and energy stocks in particular even though they have fallen dramatically, they're neither hated nor in an uptrend yet. i'm avoiding them at the moment. >> there must be pockets of value within them perhaps, you know, i think it's been broad brushed the way the industry as a whole has been hit. is there any individual stocks or sub sector within the energy sector you would be dipping your toe into? >> it's a great question. the top names have fallen the least. what i believe is that what we've seen is an individual investors in particular have been buying up energy names to an incredible degree.

the biggest headline for me is that the xle, the primary etf of energy companies actually has its shares outstanding at record highs right now. and you usually don't see a market bottom when the shares outstanding of its etf is at record highs. what that tells me there's too much optimism in energy shares a the moment. really at this moment even though there may be pockets of value, i'm actually not biting on any energy stocks right now. >> now china shanghai was the best performing in the region last year almost 53% in 2014. much of the rally took place in the last six months of the year. giving a boost to trading volumes. steve, let's go into this. because, of course that massive divergence in performance of between china's h share market and a share market. is there any structure reason to explain that and suggest the difference might continue?

>> right. there is a huge difference as you said what happened individual investors in china have really been buying up the local shares. the small cap -- the microcap index in china is up 63% in four months. we've seen individual investors buying up in china. in how long con congress we-- hong kong we haven't seen that. what i expect we'll see there are shares a large number of shares major companies that are dually listed in shanghai and in hong kong. at the moment, the hang high listed versions of the companies are 28% premium relative to their hong kong counter part. the exact same businesses. so what i expect is that we will see this massive premium disappear some of the frortyness will come out of china. but in particular i expect really a bullish new year in hong kong listed chinese

companies as the international investors recognize the value that is there in these businesses. >> steve, pretty phenomenal move in the chinese markets in 2014 gaining over 50 percent. broadening out a little bit and looking at emerging market across the board. would you be most bullish on china. what would you bet on? further central bank intervention or structure growth? >> right. i think it's a combination of both. to answer your question about e marriaging markets, i think it's more of a china story than e mernlting markets story at the moment. i would focus my emerging markets on china trades specifically. hong kong listed china trades. the simplest way to trade it is with the i shares fxi. but i think that actually if you're asking about equities i would actually more prefer european equities with the easing happening likely.

and even u.s. equities over emerging markets in general. i think the china story is a specific story and hong kong listed china plays are the perfect way to play it. >> we'll leave it there. we'll see if you're right on china. thank you for your time. all right. top stars in tv and movies turned out in hollywood for the golden globes awards last night. were you watching? >> i wasn't. it finished about four or five hours ago. >> it did. and we have a wrap up of the major winners. take a listen. >> and the golden globe goes to -- >> a movie about growing up which took a dozen years to film came of age at the golden globes sunday night. boyhood won best drama, best supporting actress for patricia are arquette and director richard

link hard. it was a big night for julian moore. she won best actress in a drama for still alice while newlywed won best actor for his portrayal of stephen hawking in the "theory of everything." >> i want to thank them for giving me a honeymoon we'll remember. amy adams didn't expect to win best actress. i didn't reapply lip gloss. michael keaton gave an emotional speech accepting best performance in birdman. >> i'm grateful from the bottom of my heart. >> but in a surprise keaton's film lost out on best musical or comedy to west anderson the grand budapest hotel. there are more upsets in the tv categories. >> transparent. >> the amazon.com series about a transgender parent won best cool comedy and best actor. >> this is much bigger than me. >> another big surprise agree

that rodriguez of jane the virgin beat out veterans like. >> it's a great day. >> another first year series the affair walked away with best tv drama and best actress for one of its stars ruth wilson. best actor honors went to kevin space si for house of cards. still to come here at "worldwide exchange" months after massive deal for the company fell apart, shire is back in the acquisition game. details on the company's multimillion take over target after the break. how can power consumption in china impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat

their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

we want to focus on bio tech. shares rose on friday as the experimental drug is codeveloping was found to be effective in lowering bad cholesterol even when administrated once every four weeks instead of every two. this as a jpmorgan health care conference kicks off today in san francisco where we typically get a lot of news around new drug data and deal arnsd the health care space. >> indeed. and on that note 2014 of course, was a massive year for m&a. the action doesn't appear to be

slowing down much as a big deal is struck in the drug sector. let's get out to landon who joins us from cnbchq. >> shire is buying nps pharmaceuticals for $5.2 billion in cash. shire will pay $46 a share. shire was first linked to the company last may in talks reportedly resumed late last year. and specializes to treat rare diseases. one for a bowl disorder that is already on the market and the other for a thyroid condition the fda will vote on. analysts believe the drugs could generate a combined $1 billion by 2019. this is the first major deal for shire since the attempt to buy the company fell apart in october. shire, which is based in dublin got a $1.6 billion break up fee when they walked away from the tax inversion deal.

they expect to add to earnings 2016 and for the deal to close in the first quarter. shire ceo said the company will keep hunting for more deals and shire is trading slightly lower in london while nps is up more than 10% in germany. dr. fleming will be on fast money today in the first on cnbc interview from the jpmorgan conference. make sure to tune in. >> thank you very much. speaking of far ma. speeding up plans to submit new drugs for hepatitis c and cancer. it's part of the company's efforts to close the fwaps with rivals. it's possible the two drugs could hit the market later this year if they get the green light. taking look at shares. right now they're down fractionally on the nay frankfurt. merck ceo will be on the closing bell. that's coming up at 4:20 p.m.

eastern. now those brunos will be warmed by a new owner the new york times reports. a unit of private equity firm is buying the luxury brand for about $34 million. they have been evaluating offers for the shoe maker. the holiday shopping season has come and gone. but for retailers it's no time to rest on the laurels. as two big industry conferences kick off this week with a key focus being, of course on gas prices. how is that helping the consumer especially going into the new year. courtney reagan is covering both conferences and joins us live. >> that's right. good morning. it is going to be a big week. let's call it a retail reset of sorts. we have two major conferences happening happening. the national retail federation and the ishs cr exchange in

orlando. we're getting the final holiday sales number a little bit later in the week. we'll know exactly how the holiday season played out. but american eagle express, and lululemon are among those making presentations today in orlando. along with food companies newly public pullo lock koe. we expect a bullish tone going into the conferences. susan anderson is more optimistic. she points to things like the end of december seeing traffic pick up. early comparisons in january and the first half of the year. and the cotton benefit in the second half of the year and overall improving economy and economic data points. ben bernanke is doing a keynote this morning at the national retail federation at the big show. he's talking about global

economic challenges. the conversation occurring will focus on the intersection of retail and technology. not only will retailers be present but companies like microsoft and intel to name a few. we have a lot ahead with thousands of people to talk to in retail in two different cities coming up. but also on squawk box we're going to be speaking with former walmart ceo of the u.s. bill simon. it will be his first appearance on cnbc since he left the retailer. he's a current board member. >> a lot to look forward to in the retail world. of course the national championship tonight i'm sure you'll be watching. my oregon ducks playing your ohio state. i hope you're ready to lose. i feel bad. i don't know -- >> no. >> if you're going to be able -- >> i don't know. i'm not ready to lose. ly not be -- i'll be a sore loser if it happens. i believe i have my buckeyes here. i'm rearing to go. i'm pumped for the game. it's going to be a good one.

>> i'm with you on this one. go ohio! >> go h! >> no. it's all about the ducks and their beautiful uniforms. we'll see what happens tonight. we'll see! >> all right. thank you so much. >> now we switch focus to autos. gm is taking direct aim at e lon musk. they're planning a $30,000 electric car called the chevy volt. driving 200 miles on a single charge. they plan to introduce the volt in 2017 and unveil a concept version at the detroit auto show today. it would be a direct competitor to the tesla model. trading flat on the day. keep in mind up about 27% over the past 3 months. cnbc will be speaking to the ceo of nissan from the detroit auto show at 8:45. before break here are the

headlines at the hour. the white house calls a global security meeting in the wake of the devastating attacks in france. u.s. futures right now indicating a higher open as earning season gets underway. also an eye on europe.

in the last few hours the french prime minister has said that the militants involved in the paris terror attacks likely had a come polices. he announced more soldiers will be deployed to protect synagogues, jewish schools, and mosques. >> the u.s. was noticeably absent from the near 4 million march around paris yesterday.

john kerry played down the behavior matter. kerry is expected to arrive in paris on friday. meanwhile u.s. attorney general announced another global security summit will be held in washington next month to discuss how to react to counter terrorism. al qaeda remains a viable threat he said. >> one has to understand it is difficult to maintain a good contact to stay in touch with all the people who are potentially going to do these kinds of things. that's the thing that keeps me up most at night. this concern about the lone wolf who goes undetected. we're doing, as i said the best we can. martialing the resources we have. >> let's look at the european markets. that's up about 6%. more talk over the course of today's trading session that the

ecb is getting ready to buy bond. that's given impetus to the main bosses in continental europe. this is a look at commodities. the oil price continues to weaken. up more than 2% for wti and brent. gold losing a tiny bit of steam today after a decent week last week. it remains above 1200 but will find resistance around 1230. >> another down day for oil. take a look how u.s. futures are reacting. the rally that's helping u.s. futures now. the dow jones indicating a higher open by around 90 points. s&p 500 up about 8. nasdaq up about 21. let's discuss more with alan chief option strategy at bulls eye options. alan in 2014 defense was the best offense. utilities and health care the best performing sectors. will the strategy work in 2015 as well?

>> i don't know. i think some people are looking at plays with youutilityies. i think there's more upside. i think tech shares have been lagging behind. some of the ib dexs over the last couple of weeks. we haven't seen new highs in the ndx since the end of november where the dow and the s&p continue to make new records. i think there is still more upside. i like tech stocks that have been beaten up. twitter is breaking about the 40 level. it looks like more upside there. facebook has been trading between 70 to 80. that targets 90 if we get back above the 0i8d pivot. i think those have significant positive return potential. >> alan we have oil prices down over 2% so far today. u.s. futures pointing strongly to a positive open. are we now through the worst of it where correlation between oil prices and risk assets will remain strong and can the economy and the market perform well even if the oil price continues to fall? >> the answer is yes.

i think the market will continue to do well. this was the latest crisis dejury. and oil prices around the 50 level are important to see. it's an emotional market. it's psych lodgely driven. it can extend further on the downside. if you look at the individual equity. if you look at chevron exxon. they didn't make new lows even though crude did. we're down 4%. starting 10% last week in the crude market. i think you have to see the impact is going to slow on the stock market as people realize that, you know, it's a fluctuation in price. yes, it's been cut in half 50%. i think it benefits more people than it hurts. >> thank you very much for joins us. that's all we've got time for today on "worldwide exchange." thank you so much for joinings us. we'll see you tomorrow. first up here is "squawkbox."

what is the best trade you ever made? >> trading my old platform for

. good morning. just what the doctor ordered. kick off the influential health care investing event. the oil plunges is dominating the global markets. goldman sachs slashes in short term forecast. i guess they're not at 200 anymore. gasoline prices drop another 27 cents in the past three weeks. move over tesla, gm is unveiling a new lb. car able to go 200 miles on a single charge. and the twist? the vehicle looks to be moderately priced. it's monday january 12th, 2015. "squawk box" begins right now.

♪ ♪ good morning everybody. welcome to squawk box on cnb. hollywood award season kicking off last night. among the biggest winners amazon. the company's original video brand taking home best comedy series. the show's star won the award for best actor in a tv comedy. it wasn't a bad night for netflix either. they were nominated in seven categories. and house of cards lead got the nod for best actor in a tv drama. we'll talk more about the globes throughout the morning. >> okay. we have three big stories on the watch list this morning. earning season opens for play this week. the s&p fourth quarter profits rose a bit more than 1/10th of a percent from the year earlier. that's the slowest pace of grow