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good morning once again. carl quintanilla is off today and joining us for the hour is jon steinberg, ceo of the daily mail north america, ed lee, also here, managing editor at re/code and with me as always kayla tausche. first up according to the information google is in talks to invest in elon musk's company, space x. apparently the purpose of the deal is to support the development of satellites that could send low-cost internet to billions across the globe. a source close to the alleged deal tells the information google has also agreed to value spacex at more than $10 billion. guys, is there really going to be a payoff to low-cost internet everywhere? we have balloons, drones, maybe satellite, supposed to be spreading internet into the him leylas. >> google leap frogging cable. they've done google fiber. always rumors about google buying a cable company the. thinking five, ten years, it makes sense they would go to

satellites. larry page and elon musk very close. big ambitious map makes sense if you have an up limited budget. >> the rumors about a fund raise and $10 billion valuation were out there as far back as this summer, but it's interesting to see google in my opinion looking to buy in to some of this technology, rather than build, because it's already been undergoing its own efforts in the drone and satellite space as well. >> and the other thing to look at is, you know, for the satellite sort of or hot air balloon type of ideas around delivering internet to the people, the thesis has been it's a way to deliver internet to areas that don't have. it poorer areas or parts of the world that don't have hookups. if this works out well as jon pointed out earlier it could leap frog cable and it's a way to ensure people get access to their content or services, which is how they make all their money. cable is the gate keeper for that. >> i don't think there's anywhere else google could go to have play in this. elon musk is the one supplying

the space station, the one that's come close to landing a rocket. next time around it will be a different kind of crash when he tries to land it on the landing pad or he will get it done. google can't do this on their own. >> if you have unlimited resourc resources why not. nobody really does have unlimited resources. google stock price, some people are questioning whether they're spending too much on stuff like this. facebook likes to point out there are a lot of people who can get internet access in the developing world, but just don't see the need for it. could they be focusing more on making internet valuable for people who have it and don't want it. >> you don't know how valuable until you get it in the first place. the commercial internet has only been around 15, 20 years at this rate. it drives so much of commerce and advertising and human interaction. it is definitely something we can't live without now. bringing it to people that don't have it, they'll see the value once they get it. >> i would love to get your take on another google deal in the news over the weekend, some reports saying that google was

close to potentially purchasing soft card which is an apple pay competitor. >> right. >> i'm not sure if you've done reporting on this, but do you think this could move the needle for google in terms of payments and how little progress it's made there? >> the start-up they're looking at is, you know, what the advantage of this particular start-up already has contracts with a lot of other major players. i think that's what they see as value. it can move the needle but it shows how mobile payment is becoming that much more important to all kinds of e-commerce, right. apple sort of got it started with the latest iphone so i think the fact that they're forging ahead shows it's a legitimate, viable, important market going forward. >> indeed. next up, amazon is doubling down on entertainment right into the movie theater. the company says it's going to start producing and acquiring original movies for release in theaters and later on amazon prime. amazon's looking to make as many as 12 movies a year, which would appear on prime only a month or two after the original release. for comparison, typically takes about eight months to a year for

films to start premiering on streaming video services after they are in theaters. so, when amazon won the golden globe we were talking about it and said okay, we know for sure this probably means they're going to be spending a lot more on content. here we have this is going to cost a lot of money. >> not so much. these are going to be $25 million movies, right, which does add up across 12 of them. >> $25 million. >> they're doing this for two reasons, they want to win oscars and b, i think it's a strategic move. they're doing this to shorten the release window. if they do it for themselves it will happen for other people. this is like when google bid on spectrum with no desire or intention to win spectrum, trying to throw a trigger to make consequences happen within the auction. this is what amazon is doing. conit densing the release window. >> that way they can force the other players out there to start selling their stuff to digital players sooner so that improves amazon prime service and the reason they want to do that is if you're an amazon prime member you're twice as more likely to shop than if you're a nonprime

member according to studies. that's their end game and a lot of things amazon is doing make prime as valuable as possible so people sign up and spend more ultimately. >> the scale of the resources that they have recommitted to content post the golden globe with a dozen pilots on the tv side, slated that we were talking about last week, how em boldnd are they and do you think that this is a strategy of just throwing things against the wall, seeing if they stick, what works and can they afford do that at this stage in their development? >> i think a big part is a bezos play. bezos loves the media side of the business. he spends a lot from our sources we've heard, he spends a lot of time focussing on that. what's a little weird about that is a lot of prime members don't even know there's this free video element associated with it. still a disconnect between him focusing his energy and money on that and still customers not quite aware that what it includes. >> i mean it's moon shot tuesday. first talking about google inning vesting in satellites and amazon and content, all that is great if amazon makes hits,

produce hits. then that works. as we're seeing from dreamworks this morning, content is hard even if you're really good at it. sometimes you don't get a hit, what happens to amazon then? >> necessarily if they create hits but have access to hits. i can't tell you how many recently have told me they signed up for amazon prime to get access to "the americans" on fx. >> or transparent. >> what made hbo work with "the sopranos" a great marketing element to get people to sign you. >> to your point about moon shot tuesday, every executive sooner or later becomes infatuated with media. for the google guys they don't care about media, they care about outer space. the fear is these guys are doing this stuff out of personal desire as opposed to making practical sense. >> it examines back to media, an alluring part. >> amazon's content efforts aside the company we're talking about is netflix because the pressure is on netflix as it gets ready to report earnings after the bell today. the stock is down some 22% in the last six months.

so expectations are high that it can it deliver and what can we expect today julia boorstin is in l.a. with the details. julia? >> well, kay a la, the big question for netflix whether it can delivers user growth and with domestic growth slowing the pressure is on to grow international users for netflix to now it's expanding to more markets. the big number is streaming subscribers. netflix forecast would add 4 million to end the quarter with over 57 million subscribers, more than half of those coming from overseas. more than half of the additions coming from overseas. those user numbers are sure to send the stock swimming one direction or the other. last quarter shares dropped 25% on disappointing user growth, despite strong top and bottom line results. now dliss project revenue will grow 26% to $1.49 billion while earnings per share is expected to decline to 49 cents from 79 cents in the year-ago period. netflix earnings come on the heels of amazon prime making big

headlines as you mentioned this weekend announcing it's producing movie after amazon won two golden globes, signed a deal with woody allen and launched its latest pilot season with big name producers including ridley scott. we expect hayesings to weigh in on the matching competition. amazon spent 100 come on originals in the third quarter and can afford to lose money on that content since it's looking to add more prime subscribers to convince them to make more purchases. we will look for reed hastings to address hbo's standalone service as well as rising content costs. guys? >> all right. thanks so much, julia boorstin. we'll be watching after the market close today when those earnings come out. jon steinberg, i'll ask you first, a lot of issues in the recent quarter. release of marco polo to muted response, i should say. fourth coming net neutrality rules. encroachment of amazon. what do you think is going to be the biggest issue for them?

>> the subscriber if number amazing how small the miss was last quarter. they delivered 53.1 million active subscribers and guidance was 53.7. a miss of 600 and the stock dropped 25%. that is ultimately as julia said is going to move the stock. most think it will come above. q 4 was a lot of gadgets being bought, connected television to put netflix ahead on subscribers. health terry at goldman sachs thinks they come in ahead. i think that's all that moves the stock tonight. >> that's the question suspect it? particularly? europe, where is streaming on the hierarchy of needs? right. with all the economic turbulence over there are people going to be subscribing to netflix? >> the other thing to look at in europe pay television isn't a widely penetrated thing the way it is in the u.s. having a streaming service makes more intuitive sense for a lot of customers there. they're not used to paying for it. this is an a la carte option, i

just want the netflix, it's 8, 9, $10 a month, i can afford that. so it's still a relatively low cost play at the same time, though, with hbo news and amazon and even espn now going over the top with a deal with dish, it's crowded space, you know. not everyone is going to pay for all these things. what i would look out for is the cable companies selling the broad bansds service to start promoting one service over another in terms of how they sell the broadband. could be broadband plus netflix, plus hbo, you never know. something to look out for in terms of where the marketing plays out. >> what about guidance, ibm and netflix reporting that have been reliant on international growth lately. we've got all this currency head wind to take into effect as well as economic uncertainty in those markets. should we be watching out for that? >> fx is something to look out for. that will unfortunately play a big part one way or the other how the stock swings and another number to look for as well. >> but to your point on the slate, i think it's undeniable

the past quarter there wasn't a lot of great new stuff out of netflix but rich greenfield from btig's note was have you looked at netflix's release schedule and the release schedule for the coming quarter and beyond is mind blowing. every hit show they've had basically has a sequel, lot of stuff they feel ambitious about. that will give them the ability to have guidance that's pretty strong for this coming quarter. >> we're probably not going to have you on the show for a few weeks as you're trying to catch up on everything. >> i will have to go into a cave and watch every second season. >> how are you going to fly your drones in a cave? >> i don't ne. i will have to get the indoor wings on it. >> good conversation as always. ed lee, from re/code, content sharing partner with us. >> any time. >> check on the markets about an hour and a half into trading. we did have positive tracking in the futures market. we had a slightly positive open. but you can see major averages are very firmly into negative territory. the dow very close to triple

digits into negative territory. the big issue, is oil today. we thought that maybe last week we had seen the bottom and even though we're not close to that 4420 level in wti we have seen two straight gains monday and today in declining oil prices and that is what the averages have been following. see what that's doing to the markets today. but it is helping shares of companies like delta rallying after its earnings topped analyst estimates. that stock has been up about 5% today based on those results that were helped by falling fuel prices and increase in passenger traffic. so they're always two sides to every story. meantime shares of twitter slipping after the company announcing it would buy indian phone marketing company zip dial. the deal is being estimated between 30 and $40 million. twitter stock based on those reports down about 1.25s%. when we come back, an inside look at the surprise move from switzerland's central bank, impact on foreign exchange brokers, interactive brokers,

ceo thomas pettryfy is with us. according to walt mossberg might not be the best time to upgrade any of your devices. he's with us to explain why. demonstrations in new york city over the future of airbnb. we're live on the scene later on this hour. "squawk alley" will be right back. recently, a 1954 mercedes-benz grand prix race car made history when it sold for a record price of just under $30 million. and now, another mercedes-benz makes history selling at just over $30,000. and to think this one actually has a surround-sound stereo. the 2015 cla. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services.

for the last week we've been watching the volatility in the currency markets and david faber rejoins us at post nine with a special guest. >> that's right. earlier we got cut off. we want to apologize for an interview that did get cut short in the 9:00 hour and continue it now for you. again while some currency brokers such as fxcm, for example, were hit hard by last week's surprised swiss move others weathered the storm better. continuing his first on cnbc interview is interactive brokers chairman and ceo thomas petterffy. first off, apologies for our feed going down earlier. mr. petterffy, you know, in

speaking briefly as we did, you mentioned, of course, leverage and a lot of people are wondering when it comes to currency trading by your clients and others, why is the leverage so large? i think you said 40 to 1 for you, i know fxcm was 50 to 1 in this country and perhaps as much as 100 to 1 outside of it. >> well trading has been going on for hundreds of years and they normally do not move by that much, so they move maybe less than 1% a day on the average and generally they do not also move very suddenly, so brokers have the time to liquidate customers who become under margin. this was a very unheard of instantaneous move and many customers have gotten hurt. it is interesting that brokers

or larger banks, the amount of losses they had on their own positions, but they did not talk about, to my knowledge, about customer losses and that's where the real big problem may arise in the coming days. so we'll see. as far as i know, we are the only ones who disclosed to our customers unsecured losses. >> and for the sake of our viewers, what did you see amongst your customer base? obviously you're a far larger firm than fxcm doing other things, but what did you see specific to this trade in the swiss franc? >> well, most of the losses, as much as $100 million, belongs to five accounts. so it's not like -- it sounds like fxcm has thousands of customers who have gotten hurt. it is basically the large,

larger accounts, and that's why i think that banks may end up with unsecured customer losses. >> and in terms of your platform and your expectations in the future, i mean did everything work as you believed it would? i know there were a couple other firms that at least foresaw the possibility of such a move or some at least volatility. did you ever consider taking in margin requirements, for example? >> well, we're banging our heads against the wall because in retrospect obviously this was a move that swiss did not really have a choice because had they left the peg in place, they would be shouldering potential part of europe's qe expense and this, of course, begs the

question of whether the germans are going to continue to bail out their southern neighbors. >> right. and the au a sterty. mr. petterffy, did you expect there's going to be more fallout from the move in the swiss franc, specific to other competitors in your industry or more widespread? >> i think on the bank side we will hear about larger, unsecured customer losses, yes. >> you do? including i would assume then institutions as well? >> absolutely. sure. >> there are a lot of people weren't positioned for that. listen, our apologies for earlier in terms of getting cut off and we're glad we were able it to get you back. thomas petterffy, the ceo, of course, of interactive brokers. >> thank you very much. >> you're welcome. >> thanks to david faber for bringing us part two of that interview. one of the biggest stories we've been watching for the recent days. >> certainly on friday it was for fxcm shares down 85% but still in business after that

rescue loan if you will from leucadia. >> the aftermath continues for the buy side. up next a major hearing in new york city, could help decide the future of airbnb. and that's bringing demonstrators into the streets. right now you're looking at pictures on your screen outside where that hearing is set to take place. we'll go live on the scene for an update when "squawk alley" comes back. trol freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro. ameriprise asked people a simple question: in retirement, will you have enough money to live life on your terms?

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welcome back to "squawk alley." check out shares of express the specialty apparel and retailer. the stock plummeting on word it ended talks to be bought by sycamore partners which is its largest shareholder. this due to an unavailability of financing through traditional means. the stock is currently you can see down 16% on today's trade. back over to you. >> quite a move. this fall new york attorney general eric snyderman claimed nearly three quarters of airbnb in the city are in his words illegal. now sith city officials are

meeting on the rental laws in new york. kate rogers live in new york. kate, we saw pictures before we went to break and looking like hundreds of people lining up to get into the hearing this morning? >> that's right, kayla. in fact, there's actually overflow from the hearing they can't fit all of the protesters and supporters inside. of course the sign of any truly disruptive company is clashing with the local regulatory establishment and airbnb's fight is hitting the steps of city hall. at the heart of the issue whether or not the homesharing start-up and services are good for new york city. they say supporters their rentals have basically brought in millions of dollars in 2014 in new york city alone. >> i don't mind contributing to the economy of the city by paying taxes. i don't think that we're taking anything away from the economy of the city because all of our guests are mostly international travelers spending money here and boosting our economy in our city. >> reporter: but the mayor's office and special enforcement says if you want to rent your

home you have to abide by the laws. can't do short-term rentals less than 30 days, be present when sharing your home and has to be your primary residents. airbnb are not opposed to regulations but want to see them enforced correctly. >> i'm not a legislature so i'm not going to try to write the laws but i would like to sit down at the table and contribute our ideas. >> reporter: now the fate of airbnb in new york city does remain to be seen, but earlier in 2014 we saw cities like san francisco and portland allow airbnb to collect and remitt hotel taxes which was a huge move for the sharing economy. back over to you. >> thanks, kate rogers. bring in simon hobbs now as we count you down to the close in the uk and across continental europe. >> two water shids moments for europe on the way. one the ecb decision on thursday with potentially qe and greek elections now on sunday. greece, athens in negative territory. europe traded yesterday while we were on a public holiday.

fitch came out with a warning on the banks saying look, they've lost about 2% of their deposits a the moment. if however there's a protracted discussion with the new government or negotiations, they could have problems moving forward. it does look like syriza according to the opinion polls the hard left is going to win through as the majority party at the election on sunday. however, not with a sufficient majority to govern on their own. some discussion with a coalition partner to put the brakes on, we think, than kind of wanting greece to leave the eurozone, although still a discussion on renegotiating the debt. as far as trading on the markets overall, this big divergence with qe on the way for thursday. the president of france, francois hollande has walked back his solid prediction it will happen thursday. he's looking at the hypothesis. see the way the stocks are in negative territory on the s&p 500 we're down % 2%, in europe they've gained and the banks are higher in europe as you might

expect. though into that mix you also have some of the italian banks doing well because the italians may change the rules, so that the cooperative banks are more easily taken over and merged. they rallied strong yesterday and rallied strongly today. the german banking industry a lot of the federations put out a joint statement today suggesting that they are really very hostile to any move on qe on thursday and in fairness to the germans there is this view that draghi is creating a straw man with what's happening with oil with deflation to spend other people's money to buy italian debt and everybody has discussions out, all the banks have research out now on what they think will happen on thursday. what the composition will be. you see angela merkel, of course last night, seemed to basically indicate that it was a done deal as well. she said with draghi in the audience at a deutsch event she only had one plea and that was that any move towards qe did not move the focus away from

economic performance around europe. that means spending less and increasing their competitiveness. that is the direct quote. but with qe presumably -- let me show you this chart in summary. a spanish 10-year a year ago above 3.5%. today the spanish actually auctioned debt at a record low of 1.6%. and even at that level, it was massively oversubscribed and you see the current yield on the 10-year in spain at 1.5% partly because presumably the european central bank will announce it's buying that. >> lots of action in europe. thanks for breaking it down. up next, when is the best time to upgrade your phone or laptop? according to walt mossberg, whenever you feel like it. well kind of. he's with us next to explain. the dow down near session lows. we're back soon in about a minute on "squawk alley."

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we're going to use a stylus? no. who wants a stylus? you have to get them and put them away and lose them. yuck. nobody wants a stylus. so let's not use a stylus. >> that was apple founder steve jobs in 2007 but despite those past objections apple is now rumored to be working on a

stylus for its ipad. if it comes out should you feel forced to upgrade. joining us is re/code's co-executive editor walt mossberg. why is that? >> that's right, kayla, good morning. i think the industry, the tech industry is built on this kind of treadmill of constant upgrading. hardware but also software and services. and it seems to me that the basic rule should not be i need to upgrade, but kind of the opposite. if i'm happy with what i've got, my tech gear, my software, i should stick with it. that's kind of the point of my essay this morning. you don't have to be on the upgrade treadmill. >> and it seems like ipad users have been taking that to heart already because they haven't been upgrading that quickly. to be fair to steve jobs, he was talking about the primary method of using the iphone that it was

going to be a finger not a stylus or did he hate styli overall? >> he hated them overall in conversations i had with him, jon. but i think we have to remember little bit of the context. a lot of the phones that he was about to unseat and he did unseat, used a stylus, particularly this was the microsoft's vision of the smartphone which was to kind of encapsulate a pc interface in the phone and so a lot of these phones used the stylus and he was introducing something that hadn't been seen before, which was ten-point multitouch on a phone. we forget, i think, today, that -- how novel that was at the time. so that was the context of his little rant there. >> walt, how much do you think that the manufacturers do a forced job sew lessens. in your point you talk about how

you dot newest software update could be more battery drain and result in the device running slower. do you think that's an intentional effort and enough to counteract what you're urging to people? >> well, i don't have any evidence that it's an intentional effort. obviously they would like you to buy the new thing and try to make it attractive. i think in the case that i used, which was, you know, an older iphone, two, three years old, trying to run some of the new, more powerful features in the software, i can't imagine they sat there thinking let's put this in so the old one will simply not work as well. i think it's just -- in fact, people will complain if they say, hey, we're only going to let this be backward compatible to a limited exit tent, so i don't think it's so much that. i do think, you know, the new

phone or the new laptop, whatever, has a faster, better processor, graphics chip, so forth, so, therefore, the software can do that. i get into that in the essay. that's the tricky crossing point. at what point does the stuff you have stop being comfortable and great enough for you because it's just falling too far behind? i suggest as a rough rule of thumb that you evaluate everything, every five years. now, for some people it's going to be every two years and that's fine. but for the people that are just happy with what they've got at the very least take a hard look at it every five years. >> walt, one of the buzzwords that we began to hear almost in every single conversation ain't the iphone 6 is memory and this idea that consumers would be upgrading because their existing devices are totally full and they would rather get a new device than try to pack more content on to the device they have. do you think we're going to enter moo an upgrade -- enter

into an upgrade cycle based on memory? >> kayla, i think it depended of course on what size memory you bought in your older phone. there always has been not only with apple, but with the other guys, the opportunity to expand the memory on the phone or to buy a model with more memory. personally, i don't think that -- i actually think that's going to be a diminishing factor because of the cloud. you can now, all these companies, including apple, is now going to let you store all your photos in the cloud. and -- >> speaking of the cloud. >> yeah. >> is the cloud upgrade going to be the new gadget upgrade? i ask this because i went to flicker when they started offering a free terabyte now looking at microsoft one drive, because they give a free terabyte to everybody in their family plus access to microsoft office, instead of the hardware should we be looking at the services maybe chasing more upgrades for value? >> well, it's a great point and

i just think you should compare the cloud services and see which one is giving you the most for the least money. i don't think it's an either or and i don't think you believe that either. if your hardware and software is local to you is just becomes too old, then you might have to make a decision. meanwhile, i think the cloud, with things like a terabyte of storage, does take a lot of the pressure off the old-fashioned really quick upgrade cycle. >> yes, indeed. walt mossberg, the dean of technology reviews, giving us permission not to ride that treadmill. thanks, walt, for joining us. >> take care. >> all right. up next, a new study commissioned by facebook says the social network facebook added $227 billion to the global economy and was responsible for 4.5 million jobs last year. those numbers sound great, but should we believe them in we'll take a closer look in a moment. first rick santelli, what are

you watching today? >> i'm kind of taking a look in the rearview mirror, staying alive, bgs. it's about current day in economies and central banks and staying alive with thursday's big ecb meeting, we're goings to discuss how possible it is that central banks, especially those in europe, will get this one right, all after the break. if you're running a business, legalzoom has your back. over the last 10 years we've helped over one million business owners get started. visit us today for legal help you can count on, to start and run your business. legalzoom. legal help is here. do you

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hedge fund manager who returned nearly 60% last year and he focuses on commodities. his winning strategy and where he thinks oil is really going. plus, 54 major companies report this week an ecb meeting, so much more. the market's moment of truth. we're trading it all. can netflix deliver tonight? we've got the trades ahead of that big report. kayla, see you in about 15. >> all right. sounds good. we'll be there. according to a new study by deloitte facebook is worth a lot to the local economy. the report commissioned by facebook says the seshl network created -- social networked created $227 billion in economic impact and 400 million jobs last year. apparently use of advertising, mobile apps and games among factors considered in the study and the report says facebook were a country it would be the second most populated nation in the world. shares of facebook have not necessarily responded to this report out today. a lot of it independent

economists have responded saying how do you view these results? is facebook an affect and not a cause of internet expansion. >> the question also is, why did they do the study? did they do the study because sheryl sandberg was head of davos and wanted to talk about their contribution to the global economy or where are their addressable markets we can extract revenue from. in that report they said facebook generates $50 billion of purchases that are moat vated by facebook. facebook has to think can we get a percent of that and this job creation. >> or they see tax controversies coming down the pike, why apple did its study when it claimed credit for billions of dollars in economic activity based on app stores and what not. you also have to wonder, are they taking credit for the same dollars here? apps, sure, facebook, fuels some of those, but so does apple. how do you parse. >> linkedin should do one. hard to find anyone who has got an job not somehow been tied to

a search on linkedin in this day and age. >> there's an economic weight to likes and follows and the measurements that even facebook when talking to advertisers hasn't necessarily known how it could result in -- possible economic activity. >> deal logic got bought by oracle the behemoth in tracking on-line to off-line conversion and a lot of that facebook is leaving on table in terms of being able to identify. >> creating jobs at consulting firms to do the reports. >> sheryl sandberg one of the highly watched speakers at the conference set to take off this week. >> let's get to the cme group rick santelli with the san it teleexchange. >> thank you very much. central bankers are playing this game, you know, liquidity for collateral and in many ways it's like treading water. treading water isn't a bad thing if your alternative is sinking

or treading water, obviously the latter is much better. but it's only that dimension that we pay attention to. we also should be paying attention to all the weight we're putting on these treading water type economies, whether it's japan, whether it's europe, and that brings me to, you know, if you look at the what the dax did today, pull up a chart, dax making all-time highs. granted the s&p isn't really far behind, although a completely different flavor of the market for 2015 thus far. but it really is telling us very loud terms that markets are totally prepared for mario draghi delivering and even showing us up close what the bazooka looks like on thursday. i talked to many traders, that whatever is done, probably isn't going to be enough to keep the euro down where it's down or keep rates down where they're at, but that's a mix eed ann i get. look for volatility, don't disagree, but do you think mario draghi isn't going to promise

more when he starts to deliver at least in part some of what he's been promising. not only is thursday going to have probably volatility in many directions, it's also going to have another carrot associated with it and that is going to give us the new means to price the markets. when i talk about treading water, every economy has a different speed and i think the eurozone is a great experiment, but to try to calibrate the speeds of these 19 countries is not only proven to be difficult, it's having many different offshoots like the vote in greece on sunday. another offchute, the u.s. economy doing better and maybe we are making progress. it isn't only about floating. it's about getting to a certain spot. we've had good job growth. today is -- this evening the state of the evening, but let's summary. one thing current administrations very good at, collecting record amount of taxes. okay. so in essence, we are looking at the middle class, a big question

mark, frame it any way you want. u.s. smts going to be great unless the middle class is great. giving them more time to tread water moving around the tax collections isn't the game. the game is to try to get forward progress. energy was one of the bright spots in the current economy. we we're now seeing the dark si of that. even in the bright spot we continued to see there isn't any leadership. the state of the union is going to be important not necessarily for what it says, but what it doesn't say and that is, how are we going to make the middle class better not just treading water but making it to the shore. don't see any plans in that regard. back to you. >> thanks so much, rick santelli, in chicago. speaking of treading water near session lows on the market. the dow down 153 points led by johnson & johnson which had earnings this morning. under performed on that front and by ibm which reports after the bell. when we come back, media goes mobile. we'll take a look at the number of americans turning to mobile for their digital consum iption

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check out shares of staples and office depot. starboard is calling for the two to merge saying it would lead to greater savings. the first time the activist has declared support of a merger is since taking a 6% stake in staples. staples down by 2%. starboard has a stake in office depot down by about 1% in today's trade. >> we've been talking about the stake in yahoo! disclosing what it does with the alibaba. interesting to see them go vocal on so many companies. thanks. excuse me. consumers are turning to their smartphones and tablets when it comes to entertainment. com score telling cnbc americans are spending 60% of their digital media time on mobile devices. joining us in an exclusive is com score co-founder jan

fullgonei. good to see you. >> good morning. >> when we talk about media time, 60% of their media time on mobile devices is this app, streaming, news, what's contained in that statistic? >> apps are the dominant way now of using mobile to access the internet. they represent about 80% or so of all of the time spent with mobile devices. if you look in terms of the total time spent on the internet, it's 52%. it's the key to getting on the internet it seems and both an opportunity and a challenge at the same time. >> what apps have risen in popularity? which are the most popular apps from a time and engagement perspective and has that made market changes from last year? >> there's been a lot of growth in the likes of uber, lift, tinds er, a dating app that's grown 700% plus. the big one in terms of absolute number of users is facebook messenger since facebook separated from their regular a app. that's up to 75 million people

using it in a month. >> when you look at the numbers, yahoo! ranks pretty high, number two still, even though facebook is breathing down their necks. what accounts for the fact that we're not seeing that flow through to yahoo!'s bottom line the way someone might expect. is it people going to mail and kind of low engagement uses like that, versus high engagement facebook. >> well, i think that the monetization issue is probably related to advertising when you come down to it. so i suspect that the mobile advertising monetization is something that's been a challenge for some properties and maybe that's the case with some of the larger portals. it's not been the case with facebook. and if you think back to when facebook went public, the big question was, what's going to happen as these mobile users, you know, increase in the base of facebook users. the answer has been that facebook has really monetized it well and i think that somewhere north of 60% of all that ad

revenue is coming from mobile ads. >> your report out you found that mobile ads are as effective as desk top ads. to the point you were making, when do you think the cpm gap closes, those on mobile which can be half of what we see on desk top from where you sit what do you see happening? >> i think what happens historically, if you look back, that the ad dollars always lag the way that the consumer behavior changes because the big advertisers need that proof that the advertising works. what we are seeing with the mobile ads, they're every bit as effective as ads running on a desk top computer. and the reason appears to be that you can get that consumer engagement, a higher share of the screen, take over the screen, they fit really well with social, and you just can't miss those ads. i think as the evidence continues to mount and as the big advertisers get more used to it, i have no doubt that the cpms will increase.

>> what about desk top usage? still seeing enough people going and reading news or buying things on-line. >> yeah. >> on actual desk tops or is that completely up-ended this year? >> so that's something i think the media has often gotten wrong. the death of the desk top has been exaggerated. because if you look at the way that the time spent on-line has changed over the past four years, it's grown by 157%. so you give people these mobile devices and they will get on the internet whenever and wherever they want. at the same time no drop in the absolute time spent on desk top computer. still dominates e-commerce accounting for 85% still. so i think there's still a bright future for desk top. >> hopefully at least we will now get that right. jan, we appreciate you being here at post nine. chairman of comscore. >> up next, big changes could

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could we soon see a stock split from samsung? that's a big question after the head of investor relations revealing the company is considering the move, but has not made a decision just yet. samsung is said to be considering the split to make shares more attractive to investors. the company is currently in the midst of a $2 billion share buyback program. the news comes as a time when barron's is arguing samsung could see 30% outside. they say profits have bottomed. >> interesting. they've got a lot of structural stuff under way with the founders help and who will take over after that. want to talk twitter briefly. the acquisition of zip dial in india. >> i think very it interesting. people forget how big feature phones that allow you to do a certain amount of technology stuff are penetrated in so many different markets. it's a technology where you can dial a phone call, terminate and subscribes you to sms alerts and

things like that. a bit back to the future for twitter, how twitter started out. >> this is a great move from twitter internationally so those concerned about growth should be interested in this. >> very affordable, 30 to $40 million acquisition. >> keep it here for netflix and ibm after the belle. we'll send it over to scott wapner and the "halftime report." >> welcome to the halftime show. meet our starting lineup, stephanie link, the co portfolio manager of jim cramer's charitable trust. josh brown, ceo of rid holtz wealth management, john najarian, option munster, and dan greenhouse with us today for the hour. our game plan looks like this. top gun, a hedge fund manager who returned nearly 60% in 2014 is with us exclusively. how his commodities focused fund keeps winning and where oil is going next