s&p 500 now up more than half a percent and with that we'll send it to carl for "squawk alley." >> thanks, guys. good morning. it is 8:00 a.m. at intel head quarters in california, 11:00 a.m. on wall street and "squawk alley" is live. ♪ ♪ welcome to "squawk alley" for a friday. joining us kevin o'leary, chairman of o'leary funds, investor on "shark tank." >> great to be here. >> kayla is out, jon fortt with us as well covering intel which we'll get to in a moment. really quick as sara said, the dow up about 70 points. real story it continues to be

the euro after the move by the swiss this week people getting to make positions ahead of ecb. the euro at an 11-year low below 1.15. oil the other big story close to session highs as we saw consumer sentiment numbers at an 11-year high making everybody wonder if the december retail sales were that bad. we'll talk about that in a moment. kevin, on the currency aspect, i wonder, you've got to have opinions about whether people should be allowed to trade currencies, levered 50 to 1. >> i don't mind that. the market is the market. largest market on earth. the foley of this is with the swiss did in pegging their currency in 2011. you know, my dad is swiss. we have a home in geneva. been there 40s years. i have swiss francs and use them to pay the expenses of what i have to cover in switzerland. when they pegged it i realized the attention is going to be horrific because the best run economy on earth is switzerland and the value is 30% more than

the euro was. this should be a warning to all governments do not peg your currency, let the market be the market otherwise you wills face this. if you're swiss you got screwed. >> how about the brokers today, looking at a report, some reports on the tape that fxcm still halted at post-date is now potentially involved in a would-be rescue deal with jeffreys. is this worth worrying about, part and parcel of central bank moves in the course of 2015? >> i never speak ill of the dead but this is irrelevant. you can get ten more fx guys going to 0 doesn't matter. such a liquid market. so many places to trade or acquire currency, hold currency, because a broker goes to zero it's irrelevant. they put on a trade that was wrong, that happens. it's like a fish in the sea, the protein gets absorbed by the crustaticeans and comes back up. they go to zero the traders will be back working tomorrow morning. >> we will find out more about that in a little bit i'm sure.

move to intel, shares moving after fourth-quarter results did top estimate but company did issue weaker than expected guidance. take a listen to what he had to say. >> our projection for 2015 is a relatively flat pc base from a unit perspective. and actually, probably a slight decline in asps as average selling price as we continue to see some pressure there, but we're able to grow the company with our data center business, internet of things, flash memory and other products that we're in now we think we can grow. >> you saw the headlines this morning, intel guidance for the quarter, cautious. there's -- that's a loaded word you think. >> it's a loaded word. the guidance wasn't bad. it's seasonal. usually from the holiday quarter to the next quarter intel is down about 6%. the thing is 2014 was so unusually good for intel, a lot of people were hoping they would do better than that but intel

saying no, look, pc revenue overall going to be down this year but they are excited about data center. facebook, google, amazon, microsoft, they need intel chips if they put servers in these big cloud farms that they're creating. intel saying that business is going to be up 15% year after year for the next few years so count on that. you know what, i also think security is going to be an interesting area for them. i would not be surprised to see them get quistive in that area over the next year. they hired chris young from cisco we had on yesterday talking security. i don't think they hired him to sit around and manage mcafee. >> kevin your thoughts on innel a moment. david fair has joined us at post nine with more about the wire reports we've seen on jefferys. >> yeah. we can add to it. i can tell you that, in fact, senior members of jeffreys management are on the premises of fxcm, to negotiate some sort of a rescue for that firm. hard to say whether they're

going to be successful with those efforts. you may remember jeffreys not unknown to wade into these kinds of waters. night trading from not that long ago when they faced a significant loss and ended up working with them as well. we can't confirm these reports. reuters and bloomberg, potential interest from jeffreys but telling you senior management chandler and frieden are on-site but what that means these kinds of things are moment to moment and in negotiation for a company clearly in deep trouble. we'll see how it develops. >> kevin, your words about the biogenesis of the ocean make something waves on twitter this morning. >> sure. even if they don't get bought out they go to zero, who cares. the jobs will be retained throughout another firm. it's the equity of the manager going to zero. irrelevant to the rest of us. >> david f you get more, come back. >> will do. >> next up a great year for venture capital. according to the national capital association.

vc invested over $48 billion last year the biggest number since 2000, about $20 billion went to software start-ups the highest percentage in history. a lot of discussions over the past few months about whether or not they're overpaying for stuff, whether or not animal spirits are getting out of control. your thoughts some. >> what's different about this cycle and vc and capital, a lot of money being raised into firms that say they can get positions pre-ipo and mega deals like think about some of the firms that have come public at crazy valuations and gone up 30% since then. the attraction to an institutional investor or individual high net worth if the firm says give me $5 million and i can get you a piece of something about to go public next month, that's not real venture capital. i call that mezzanine financing and it's fraught with risk because the minute the last chair is taken and nobody wants to pay $50 billion for something doing a couple hundred million in revenue you will lose a lot of dough.

>> sound a bit like cuban who tweets from time to time vcs are the new nasdaq, deal pipelines and allocating money. >> mark sits by me on "shark tank" and learns so much. >> jon, you must have a thought. >> i do. a lot of the value out there in these investments is in the deals we don't talk about the smaller enterprise deals. people who are creating security companies that have the next great idea. so i think we're clearly at a time of upheaval in technology. we have cloud continuing to take off. we've got mobile that has plenty of room to run in emerging markets and then we've got the whole wearable internet of things, home automation area, start-ups working on all of these things. most will not succeed but some will and those are the ones that are going to pay off. >> you like to say peak consumer, enter price you believe is the story, will continue to be the story, google glass another good example yesterday which we'll talk about later in the show. >> google glass never made a lot of sense to me.

now i guess it's tony fidel's problem to figure out, one of the fathers of ipad helped to launch the iphone now at google with nest. this got put on his plate as well. if anybody can figure out how to turn google glass as it exists now into something people want to use it's probably tone my. >> let me ask you a question about google glass. do you wish if you were a shareholder, i'm not they don't pay a dividend, [ inaudible ] that's the big negative on google. all of these ideas, cash cash cash no revenue, then they fold them up and put them back on the shelf. what about paying me as a shareholder, what about me? >> the trouble you get into i think is you can't cherry pick. when they invested in android a lot of people thought that was crazy. what is this little phone thing they're doing, doesn't make sense when driving cars around creating google maps, how is that ever going to pay off. now with smartphones and directions it's a bonanza for them. yes, if you can go back, marty mcfly in the delorean and pick

something -- >> it is the toe nalty of the investor changing on google because they get frustrated with the fact they never get capital return and the answer is yes. the clamor for a dividend is only going to get louder. >> doesn't mean they're right. apple was way down in the 300s right as they were coming up with the iphone 6 and 6 plus, they'll never sell another iphone and look where they are now. >> i argue the reason apple has had such success because they pay a dividend and investors like me in it. the only thing you can trust in investing in tech is cash. >> well, let's look at another -- >> a lot of the apple upgrades are based on that topic, not the next iphone or watch. capital return. >> let's look at another angle on that and the future of apple and its competitors fresh off its new product line. xiaomi is speaking out on everything from its new phone to a possible investment from facebook. our own eunice yoon caught up with a senior executive from the

company live in beijing with more. eunice? >> hi, jon. i spoke with hugo barra today, was with google, but xiaomi hired him to chart an overseas strategy for the company and yesterday the company unveil the its latest phone the chixiaomi note. the initial reaction has been this is a bit of a boring aring the name the note from samsung. it's the third largest phone maker in the world and successful because it's been selling acceptable phones at decent prices. the question for xiaomi going forward is as it looks overseas and wants to go head to head with apple can it innovate? that's a question i posed to bar a ra. >> it's a product that doesn't look like anythings else, that you may be able to buy today. it's a unique product with unique things that have not been done before. because we've grown up. we've been able to build an

industrial design team, mechanical hardware team and so forth that has had the time to do a lot of independent thinking. >> raised $1 billion at the last -- xiaomi raised a billion at the end of last year main frily from chinese investors. that sparked talk they could be attracting international investors as well. a lot of buzz about a possible partnership with facebook and this is what barra had to say about it. >> our relationship with facebook is fantastic. you know, mark was here a couple months ago. we had a great time with him, dinner with him, spent time talking about china and so on and so forth. we will continue to have a great working relationship with him. i can't comment on the investment specifics. a lot of blown up rumors about what may or may not have happened between the two companies. >> reporter: and barra said xiaomi is going to continue to expand outside of china. the focus is emerging markets, brazil, but he also mentioned,

jon, just to be aware that the xiaomi phone will not be coming to the u.s., at least not for a couple years. >> yeah. it could be tricky for them to get traction over here. apple might have a thing or two to say about their designs. >> thanks a lot. apple expanding in china. retail chief angela airports the company will open four new retail stores over the next five weeks and says the company's biggest challenge for china retail is hiring enough employees while maintaining customer service standards. after those openings they will have 20 stores across the country. the beijing store awfully big. kevin, why is it, how is it that one day we're talking about xiaomi as a -- not talking about them and the next day we are and they have come out of nowhere. >> you nailed it on the head in terms of why apple doesn't trade at a premium to market multiples. investors ask themselves am i getting myself in consumer electronics where the outcome over a long period of time,

sony, motorola, nokia, something different, we don't know the outcome. the more you see commoditization of handsets and soon-to-be watches, apple's unique environment may or may not allow it to hold its margins. when people say why don't you think this is trading at a premium because it's glowing so well, that's the reason. i've seen this movie before. the storms in china will be hugely successful as they were stateside. i think it's more of the same and hopefully will continue to spur growth but that nagging concern about consumer electronics in their story is what keeps investors like me, you know, not overweighting this position. i own this stock but not overweight. >> it's fair. we know who's really in trouble from xiaomi is samsung. they've been losing share largely from a surge in xiaomi. apple has been able to maintain a position at the higher end and actually been able to grow its margins in this particular cycle. i think some people might be

getting xiaomi wrong too. not really a hardware company. they're giving the hardware away practically, trying to make money on services like an app store, theme store, games, book, bruiser, messaging, things like that. against the likes after facebook and ten cent and alibaba can they coexist in an ecosystem is the future. >> there you go, make me nervous again. >> anything about chinese firms in general that you're leery about, optimistic about? >> no. >> board structure? >> i see china as the next big market in the next 15 years. i want to be part of it. the way i do it try to invest in companies stateside going into the chinese market. but the outcome is going to be a good one on growth. no question about that. >> we turn to david faber i have a feeling on fxcm. >> we figure we would keep people up to date. we can tell you, may have seen it at the bottom of the screen, jefferys not done yet but

working on a $300 million rescue of this currency broker if you will. $300 million deal that would be structured largely as a debt deal with equity component. don't have a great deal of detail about the security we're talking about. it would have the effect of keeping fxcm in business, addressing the $225 million negative equity shortfall the firm faced as a result of the violent move in the swiss franc which took a lot of clients out so to speak given the leverage in their accounts but we're not done yet and as we know, carl, these things can go awry at the last moment but we did want to bring that to people. >> thank you. >> david faber. >> when we come back almost $2 million for less than a thousand square feet of living space. we'll take a closer look at the insane demand for real estate in the heart of silicon valley. the battle over the connected home is heating up. arm holdings will join us later on and we mentioned google glass. we hardly knew. kara swisher will tell us why google is shutting down the

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welcome back to "squawk alley." netflix the stock is moving higher by 1.5% after analysts at cowan upgraded shares to outperform from a prior market perform praern and price target to 382 from 360 citing increasing original content and attractive valuation. those shares again up by over

1.5%. on today's trade. back to you. >> thanks for that. we will start a new weekly segment on "squawk alley" it's all about finding froth in the market and specifically in the tech sector. looking at everything from insider selling and social stocks to fancy bus tours in silicon valley. today a closer look at real estate and some of the unexpectedly high prices you'll find in palo alto. josh lipton live in san jose with a closer look. hey, josh. >> carl, in the heart of silicon valley there has been a big jump in the price of small houses. palo alto one of the most sought-after communities in the bay area. demand is so strong an inventory so lean, homes that look more like bungalows are selling for millions. check out this home at 151 kellogg. two bedroom, one bath, only about 9 90 square feet and it sold in december for $3 million.

that is not unusual. in 2014, the median price of a home in palo alto with less than 1,000 square feet of living space, basically the same size here as at lot of apartments, surged 40% to $1.7 million. that's according to delion, a realtor in palo alto. they say a lot of that move can be explained, no supplies, by the flow of new tech money in the area driving prices higher as well as an influx of international investors now looking to capitalize on a red hot reals estate market. >> about 40% of these buyers would be investors from overseas. particularly the chinese really want brand new homes, so buying these small homes with larger lots tearing them down and building up their dream home. >> now, realtors say there's also razor thin inventory in the community. as of this week there were only 11 homes on the market in palo alto according to elon realtors. back to you. >> thanks.

palo alto one of the most stable markets in the bay area on the way down, so froth, we'll see. up next, is elon musk's futuresistic hyper loop coming to a city near you? his big plans coming up next on "squawk alley." double wings, extra ranch. we need to do something different. callahan's? ehh, i mean get away. like away away. road trip? double wings, extra ranch. it feels good to mix it up. the all-new, fuel-efficient volkswagen golf tdi clean diesel. up to 594 miles of adventure in every tank. introducing the all-new volkswagen golf family. 2015 motor trend car of the year. e financial noise financial noise

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in case you missed it, tesla's ceo elon musk is moving forward with his high-speed transportation system, the hyper loop, kind of like bank tubes for people. tweeting yesterday, will be building a hyper look test track for companies and student teams to test out their pods. most likely in texas. musk told the texas tribune he expects the test track to be five miles long but didn't specify when it might be built. they tried hard to land tesla's factory but losing out to the state of nerve ta, parting gift, runner-up prize, you get a hyper loop. >> that's a big prize. kevin, before you go i wanted

to -- we were talking off camera, canada in the news, target pulling out, sony closing their stores, watching oil and the affects of oil and capex, are you worried? >> i think they're both specific situations. when target mothership here domestically rolled into canada, they were hoping for it to be a growth story. they used their own managers that came from places that didn't understand the regional differences of places like quebec, calgary, alberta. these are completely different populations. canada is very integrated with all kinds of different ethnicity in it. they got slaughtered. second the other head wind canadian oil dropping 19%. their buying strength is u.s. big problem there. and lastly, what i think was the final shoe to drop which made them make this decision is canadian gdp because of oil has declined. the country has three sectors, oil commodities and financial services glowing slower han the

u.s. so they finally looked at it and said for 5% of our business, it's 100% of our headaches take it behind the barn and shoot it and that's what happened. 17,000 jobs. 133 locations all going to be absorbed by more successful big box people like a staples. when staples opened up in canada they brought a canadian manager into it. he knew the canadian markets and the nuances and regionalty of it. phenomenal success. that's what everybody should recognize. you have to understand someone in quebec who speaks french is not like anybody in b.c. they're different. >> you know the market better than most. >> i try to make money up there every day. >> good to see you. >> you too. >> kevin o'leary joining us, of course. europe about to close. mercifully on a friday. simon here to wrap that up. >> carl this map looks really very similar to yesterday where the majority of the eurozone equities have rallied but the heart of europe you see the swiss market down. lost 8% of its value yesterday in local currency terms, down

another 6% in the wake of the swiss national bank abandoning the currency peg. big companies within squaric trading in zurich and faring today. we're expecting a lot of guys to come through with profit warnings. they do about 40% of their business with the rest of europe or certainly the likes of richemonth exporting. now doing it against its national currency higher. a lot of people will sell because they've made gains on the fact that these are swiss assets denominated in the swiss franc which have almost gained in value. the bigger picture check where we are on the swiss franc. slight recovery certainly against the dollar. no great shades overall. the move next thursday with the european central bank. the swiss national bank did what it did because you had to make way for what the european central bank will do thus with the possibility it will announce sovereign qe, hundreds of billions of oours force fed into

the economy. sara has been covering this all day, the euro declining. the euro declining so far this year down 5% almost absolutely massive. the converse of that is that european equities because they feel qe is on the way are up now almost 3% this year. remember the market here in the united states is down by about that much. so you've already got on european equities a 5% outperformance op u.s. equities for all the reasons that we talk about. two of the greek banks have asked for emergency funding. i should mention that. that will be decided next week. euro bank, basically difficult for these guys in an environment where people will be tempted to run down their retail assets for fear of what will happen in the election on the 25th, difficult to raise funds and, of course, the other thing if they do decide to exit the euro or comes close to that and then not end the eu bailout funding of these banks would dry out. tricky situation for them.

it's only a few million euros we're told they're after that will play out next week. oil finally looks like we may have stabilized on the price of oil here at 47.70. the oil majorers in europe were supporting of stock markets. bp rallying after a u.s. judge capped its fine of the oil spill of $37 billion. people were concerned or they were concerned that it could be a lot higher. back to you. >> rest up for next week. we're going to need it. simon hobbs at post nine. the latest in the moves on the swiss franc. saras eisen on the floor with that. >> watching the fallout from post eight which is where fxcm trades and as you can see behind me it has been halted all morning long on news pending. this after a nearly 90% plunge in the premarket. this is the retail foreign exchange brokers to mom and pop traders that disclosed $225 million in negative equity tied to debts gone back in the wake

of the shocking swiss central bank move yesterday to end its cap and as we know that dave -- david faber has been reporting that jefferies is in talks for some type of rescue deal. so far nothing officially on the wire yet and, therefore, fxcm isn't trading. the regulatory story, obviously it's important in all of this. bart shillton joins us on the line now. he's a former cftc commissioner, the regulator for the foreign exchange brokers, now a senior policy adviser. good to have you here. >> great to be with you, sara. >> you stepped down from cftc last april, you were the regulator for retail currency brokerages like fxcm. what do you know about the company and whether it's prepared, how well capitalized it is for this type of event? >> well, i can't tell you some of the specifics that i know from when i was at the agency, but i can tell you they were familiar people that were in the agency a lot. one of the key regulatory things, sara, is that dodd/frank

the bill wall street reform and consumer protection act from 2010 required that we put additional restrictive matters with regard to these foreign exchange dealers, so we increased the capital requirements to $20 million for companies like this and we also had a second hurdle, if he had more than 10 million in customer funds they had to have 5% of that set aside. some of us actually wanted more, by the way, yours truly included, but we did put new capital requirement -- >> how rigorous was that? how often did you check and how often were these type of retail brokers in breach of that? because as of this statement from fxcm they say they may be in breach with some regulation. >> i can tell you by and large the ones that -- the 20 million is sort of a pay to play. got to have 20 million to get in. a lot of some of the nefarious

dealers who caused a lot of the problems as you know i wrote a book about this, how scam artists are ripping off america, that 20 million cap that ability to pay to play was significant. most of them have been in compliance but i guarantee you, that this company is in conversations with my old agency it the c it ftc in addition to conversations with the national futures association which is where they had to register. >> sure. so what kind of conversations are they having, would you think? what can the cftc do? can it insure some of the client losses, can it help in a rescue effort of this company? what are those conversations look like to your best guess, i guess, because you're not inside now. >> they would be trying to look at the workout for the firm, how do they get out of this. what resources do they have. they've got, you know, their market cap is like $700 million. they would be looking at alls the firm assets and then we have

this with mf global who might want to buy the assets. i don't know anything about it but it was reported recently that jefferies was in talks with them. so the regulator would first of all want to try to insure that customers, consumers part of this, are protected. unfortunately, sara, this is something i talked ability for years, there is not an insurance fund like there is for stocks for futures. so these guys could ultimately and i sure hope this doesn't happen, could be left high and dry because no insurance funds exist for futures positions. >> there is no insurance for retail foreign exchange brokers that have now lost $225 million? >> it's crazy. >> how is that possible? >> well, you know, the s.e.c. had something called sippic which it's done by law and, of course, we have the fdic, but, you know, i called for this, i put a proposal forward but i think, you know, there's not the desire in congress or quite

frankly among some of those market participants to pone ifeny up the dollars. up until mf global there had never been a loss. the argument, there's not a loss why do we need an insurance fund. that's changed drastically and i hope this circumstance results itself without customers losing money. it reups the issue an insurance fund needs to be there. >> i'm sure that will definitely be brought foot conversation. thanks for joining us. bart chillton, former commissioner now dla piper senior policy advisors. we'll watch for news on the stock which has been halted and all day is halted pending news. back to you. >> thanks so much. >> quick news alert, looking at some pictures of president obama and british prime minister david cameron at the white house a few moments ago. the president and cameron will hold a joint news conference if a little more than an hour from now around 12:20 p.m. time. the issue cyber security likely

to be front of mind. the president has spoken about it over the past week. cameron yesterday suggesting that uk regulators might look to band messaging services like whatsapp or snapchat if not allowed to intercept communications the way they see fit. >> tricky to figure out how they would manage to do that, keep you from downloading apps on your phone. that would be controversial for sure. >> i was going to say, whether or not we're going to john harwood, do that later. say good-bye to google glass. the company shutting down sales for the first edition of its headset. what's next for google and the glass program. kara swisher will join nous a moment.

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welcome back to "squawk alley." dow is hanging in there up about 50 points. crude oil doing well as well. joining us this morning, kara swisher co-executive editor at re/code. without the avevaters today. good to see you again. >> got plenty of sleep. >> yes. >> first up in the wake of the recent terror attacks in europe british prime minister cameron is wanting to tighten laws around whatsapp and snapchat meeting with the president at the white house as we speak. i wonder whether or not you think there's going to be big policy ramifications from the kind of rhetoric we've seen over the past few days? >> rhetoric is the right word. this is going to be a big issue as apple and google continue to

inencrypt mobile communications and that's the big fight. the fbi has been attacking the companies for that. you know i think it's a difficult issue because there are existing laws in place to get the communications. how transparent these companies want to be in order to -- they want to say when the government is asking for these things. it's going to be a struggle between large tech companies which are global, these are global tech companies. >> yeah. >> and the government. and you can't leave out china and everywhere else. there's messaging services all over the world. it's going to be a difficult thing for governments to control. >> that's the thing isn't it. tim cook at apple has taken a hardline saying we don't look at what's in people's imessages. cameron saying we're going to ban you unless we open it up. either apple rewrites ios 8 or just can't sell iphones in the uk, right? >> that's not going to happen. >> yeah. >> i mean they can threaten it

but it's not going to happen. messaging services all over the world, giant ones in china, india. this is really -- the question is do existing laws in place take care of this and how transparent can companies be about government requests for information? that's where a bone of contention. they feel there's existing laws in place like any google used the example there have been safes for years but you have to government -- you have to have ways to get them by legal means. i think the question is how much the government can pressures these companies and a lot of ways i don't think as much as they think they can. they can make a public stink about it and that's what they're doing. >> i like how we're looking at kayla's snap chat account on camera. >> we're watching kayla carefully into yes. >> next up, good-bye google glass the company says it's discontinuing the first version of its glass project as it looks to completely revamp the device. tony fidel whose company was bought by google for $3 billion last year will if now oversee

the division on the next generation. are they going back to the drawing board? >> well, it's interesting they gave it to tony a very innovative executive and has done nest and a lot of things and behind the early apple ipod stuff sometimes considered the father of the ipod. i have insulted google glass plenty over the years but conceptionally the idea of what google was pushing for was powerful and important. i think people forget that. it's just the device wasn't quite right but the concept is important. we will be wearing some sort of devices that see and talk and communicate. it's just a question of whether it's going to be these awkward devices that make it so we can never date again. >> and kara, google trying to position this as hey, we're just moving this to the next level. it's graduating. not being demoted. do you buy that? do you think once they shut the exploratory program down on the 19 which i believe is monday

will be a couple weeks and some fantastic new version? >> there's supposed to be a new version in 2015. i think it's a question of who's to wear them. i think with doctors, surgeons, certain business cases they're very useful. so i think they're going to orient it to where people will be wearing them. i think the idea pushing it as a consumer device initially was probably a mistake. conceptionally it's a big idea. execution wise kind of goofy. you look goofy wearing them. even sergi hasn't been wearing them. i've seen him without them a lot this past year which is interesting. >> as of january 19th, no one in the public can get their hands on them again. >> i still have a pair if you want to borrow them. >> i'm sure you do. >> something tells me ebay will have plenty for you. gopro, off another 4% this morning. down 23%. this week. we know about the apple patents. i'm not sure what you make. this has been the punishing few days for gopro. >> that's the issue. once they have a great market

everybody jumps in especially the big guys. everybody has suffered from this drop box. all kinds of companies in places where big companies can enter. this is going to be a very competitive market. and i still tink they have a very inknow vative device and can they translate this media into a media company and that's what they're attempting to do. seems to be the favorite device of young people or the people using it and all these athletes locked up so the question is, if it starts -- if the market starts to flood with cheap devices, do they have a sort of like, you know, the flip camera, things like that, ha was great device and i loved it but the minute it got in the phones the business was done. >> the stock has lost half its values from its high. it's kind of amazing. anything to read into that about what sentiment was back in, what, october. >> yeah. >> when this thing was going crazy. >> remember i was a little critical because i worry about

hardware. i don't worry about the product. i worry about the hardware market where people can jump in like the wearable market, all kinds of wearable makers are not going to be around even though they're all super interesting and the devices are kind of cool. but once this stuff starts getting in the wider marked you have trouble being the leader in it. you become an also brand. unfortunately even if you're the leader initially or carved out this area of -- which is an interesting area another cub sent actual -- conceptual idea of constant body recording and something not going away. >> one viewer writes in without sunglasses kara looks passionate about topics. with suns glasses she sounds cool about topics. you win either way. >> i'll wear them next week for you. get you all excited about that. >> good weekend, kara. >> thanks. you too. to the cme group rick santelli with the santelli exchange. >> thanks, jon. well we're just going to kind of

ramble a bit because there's so much going on. lots of volatility in not only foreign exchange but obviously in the fixed income, sovereigns, corporates, high yield. focus on 10-year as you look an intraday of 10-year look at a couple things in particular. yes, there were correlations with the movement in 10 yields higher with data points, specifically 915 and especially, especially 10:00, on that wild and i broke it, university of michigan sentiment. granted it's january preliminary and many are trying to dig to understand it. i think it's easy to understand. i think dropping gasoline prices are a good thing but the timeline for the benefits are on a completely different calibration than many of the other issues we talk about with regard to how energy is affecting capital markets, credit markets, so to look at that, it should jump out at you that we are hovering now back around that 180 area.

i heard from several sources on the trading floor that right around the time before and at michigan's release at 10:00 eastern there was a huge amount of selling in the 10-year. if you open the chart up to two days yesterday before our time zone we were up at 1.90, then had the lowest settlement in 20 months right around 1.71, 1.72, last week 1.75 was supposed to be a stopper. it's a light stopper, single asterisk but this goes to show you the volatility and how everybody is trying to get things in order whether it's the data, the logistics about how many people are still stuck short in treasuries, you want to monitor this one and keep them on. we still have 1.95 last week. kevin o'leary on earlier, the big as far from "shark tank" and he has a huge amount of following on the floor and said something we were discussing. he talked what's going on with fxcm and the big moves and people seeing the death star. people going under on this.

and what he said was, hey, this is the biggest most liquid marks in the world don't worry about it. he is right. liquidity is under review. one of the biggest most highly traded leveraged liquid markets but liquidity is only something that comes to the party if people have the desire to trade. you can't trade when markets move like the swiss franc did yesterday. so there's got to be an asterisk there. as far as the death stars being good, i not only agree, i think you can write all the regulation you want, we heart bart chillton, the best regulation, the best, is failures because it modifies the behavior of all those leverage players that want to pick up the chapter next. back home to you. >> always worked for me, rick. have a good long weekend. up next the future of the connected home is almost here at least if intel competitor arm holdings has its way. the ceo will join us live next on "squawk alley."

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coming up on the halftime report we are trading the currency crunch and taking you to trading school for a look at the very big risks in the trade and thens the debate of the week has been, of course, the banks. the desk split on the financials will they land on the same side of the fence today after goldman's report. does fear create opportunity? tony says yes, of course, and he's going to reveal where. all coming up on the "halftime report" see you at the top of

the hour. >> let's get over to julia boorstin in the meantime market flash in l.a. >> hey, carl. activism shares shooting higher, the company reporting call of duty advanced warfare was the top selling game last year making it the top sellings u.s. franchise for a six year in a row as skylander's trap team is the number one video game globally. activision to its top pick in the space. shares are trading up over 6.5%. jon, over to you. >> all right. shooting higher i see what you did there. from thermostats to cars the world becoming a more connected place as the internet of things heads for the home. our next guest in 95% of mobile devices and a wide range of connected products. simon is ceo of arm holdings. siming, now you guys clearly are in just about everything that's low power from phones, tablets, activity trackers, but i remember being there with you guys at your headquarters, gosh,

might have been six or seven years ago, and in a meeting with warren east you guys were talking about how are we going to make this stuff work in washing machines, will people need smart washing machines. do we have the answer to that yet? >> i think the answer to that is developing. i mean for the last few years, people have been talking ate the internet of things and broadly how connected key vices can provide benefit. what we're seeing at the moment is the broad theme developing into more concentrated ideas around smart homes, smart cities, connected cars and starting to work out how the interconnection of these devices can provide some benefits whether it's a better user experience or whether it's improved energy efficiency in the home. there are lots of ways technology can make these products better. >> simon, we just got intel earnings, one of your chief competitors yesterday afternoon lost about $4 billion in mobile during the year, trying to lay

the groundwork for a new system on its ship they have coming this year, so which should cost them less to produce, easier for competitors to buy, what's arm's answer in terms of the blueprints you hand out it to your people? what's your answer to intel's technology moving closer to what you can do? >> well, we are really focused on innovation and we're focused on both what we do and how we work with our partners to create the best product we can at the end of the day. our model is all about working closely with semiconductor companies, innovating in our own products, micro processors and the technology we generate to create these systems on chip and then working with our partners adding their own ip, own intelligence, and focusing on manufacturing to create the best technology. so it's about a very broad ecosystem working together to provide the best answer. that's worked really well up to this point and we're confident that will work well into the future. >> how much do you work about

intel subsidizing their way into your market share. does that cross your mind at all some. >> we worry about competition but at the end of the day it's about how good the delivered product is, how good the experience is that the consumer has when they're using one of these devices. that's what we're really focused on. >> when you look at the trouble that qualcomm is having in china, how much does that matter to you? because clearly your licensing business is big. qualcomm hs an architectural license for arm. is that a problem when a higher end chipmaker is having trouble in its licensing business in a place like china? >> china is very important market for us. we have many of our customers who are focused in that space. we have a team based there locally so that we can really understand the local markets and local dynamics. it's a very rapidly changing space and one we have to watch very closely. and again work closely with our partners as the market develops.

>> as you see home automation technology and wearable technology trying to make a bid for a bigger year in 2015, clearly you see through your licensing revenues all sorts of different categories flowing through. any sense from you which one has more momentum into 2015. >> well, i think we're going to see embedded technology generally making big strides forwards. applications in the car which is on maybe kind of a longer kind of gestation period. but i think we'll continue to see lots of wearable devices, lots of innovation going on there, rapid innovation that's happening. and likewise in the home connected devices. people are trying to work out how all of these different types of technologies can work together to try to anticipate much more what it is you're doing, how best to operate your heating system, how to and when to schedule maintenance for anything that you have, and

we're seeing the intelligence that's enabled by the embedded processing really starting to come to the floor and it's going to be exciting in 2015 as the ideas develop. >> all right. well we will certainly see and simon segars's, ceo of arm holdings thanks for joining us. hope to see you soon. >> thank you very much. >> when we come back it's a big week to look forward to in tech earnings. we will tell you what to watch for in a moment with the dow up 28. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda.

lot of drama in the markets today. may not look like it from that board but the dow up about a fifth of a percent. currency traders seeing losses after the surprise move from the swiss national bank yesterday. a ugly chart of fxcm which we know is in talks with jefferies for a possible lifeline. the stock is halted after down 88%. euro 11-year low as currency traders around the world try to get in front of what the ecb may or may not do tomorrow. oil doing fairly well here on some good consumer sentiment numbers. the best in 11 years. then jon, big tech earnings fex week. ibm, netflix, ebay, san disk. >> actually f 5 i'm watching for on wednesday. it's an innovative company in the enterprise space.

if anybody has upside you would expect it to be them and still up almost 30 for the past 1 months. >> we thought this week was active and it was. good weekend to you, jon. >> and you. back to headquarters, the half and michele caruso-cabrera. >> thank you. welcome to the "halftime report." we are expecting president obama and uk prime minister david cameron to speak within the hour topics include everything from terrorism to global growth. we'll get to them. but first meet today's starting lineup. steve weiss managing partner of short hills capital, jim lay venal that, john najarian co-founder of option munster, sara eisen from the nyse with more on the currency situation and dominic chu on set for a good trading school coming up. our game plan, teased it a little bit. currency crunch. the brokers plunging on the losses in the swiss franc. dom will take you to trading scho