welcome to "squawk alley." i'm jackie deangelis frorpgts nymex. the department of energy out with its crude oil inventory last week. a build of 10.1 million barrels. prices were trading around $47 when the number came out. now down more than a buck here. traders are saying this is all about supplies right now. we are very well supplied. about 13% above the five-year average. no reason to worry about that. that's why we're seeing selling pressure. a note on brent, 48.31 where we're trading. we were trading over $50 when we were waiting for that announcement from the ecb, but then pressure strargt as soon as the dollar index started climbing again. well over 93. back to you and the "squawk alley" team. >> thank you so much. it is 8:00 a.m. at microsoft headquarters in redmond, washington, 11 a.m. on wall street and "squawk alley" is live.

♪ ♪ welcome to "squawk alley" for a thursday. with us as always, jon fortt and kayla tausche here at post nine on a busy day for the markets. ecb has probably what you would call the lead, 60 billion euros a month in quantitative easing for the first time over there through 2016. has succeeded in rescuing equities quite a bit. s&p is now within about 8 points of going positive for 2015, back to the 50-day moving average. euro tumbling on that muse as well, below 1.15. yield on the 10-year has been all over the map. we will try to cover that and technology as best as we can. what a flurry of news in the mast few hours. >> our next guest has a lot of

thoughts on the markets an where we're going. less bring in trend macro chief don luskin, good to see you. >> thanks, kayla. >> the ecb's announcement has been called a battleship, bazooka, going to last longer than expected, larger than originally tell graphed, but how effective does the buy side think the program as laid out today will be? >> you know, this is one of the funniest things i've ever seen in terms of market sentiment. we've been going through months and months where everybody has been berating the ecb, how come you're the only major central bank in the world that has doesn't qe. you have to do qe. still in recession, do qe. now in the last couple weeks when it's been obvious they're going to do qe the message from the investment community it won't matter, won't make any difference. what's the point, why would you buy sovereign bonds. buy sofrmg bond yields in europe have low yields. the market can't decide whether to love or hate this. one thing i can tell you for sure is every single time the

fed has announced a large asset purchase program it has ended up instilling confidence in the marketplace, and making yields go higher, not lower, as the result. so we're seeing lower yields across europe today. i'll bet in a week they will be significantly higher. >> i know, don, the market is still trying to parse through some of the exact details of the program. if you looked at the fixed income market that's where much of the effect is taking place. here in the u.s., the s&p 500, yielding more than the 10-year. how does that affect asset allocation and where you would tell investors to put their money over the next course of the year? >> well, let's start by telling investors where not to put their money. bonds, you know, priced to a point where, you know, the -- it inflation would have to be so low for so long to get a positive real return out of long-term bonds at this point, it's an absolutely losing proposition. so having ruled bonds out, what's left?

well, stocks come to mind, real estate comes to mind. that other asset class called anything but bonds. that's what the central banks of the world are trying to tell you. >> jim cramer in the 9:00 hour today saying since we as reporters can't invest in stocks where he's been putting his money to work is real estate. i want to go back to bonds because there's been sort of a debate around why yields are so low. on one hand you have people who are saying, this is a global crisis, not just contained to europe or asia and that's depressing yields across the board. on the other hand people like larry fink saying it's a demand or supply issue and there actually is not enough new issuance to meet the demands for bonds, people want to go into bonds and the markets are thin that you are doing nothing but pushing prices up. which of the camps are you in. >> i'm not in any of those camps. i'm in another one, a camp that just has one silly ball in its name, oil. the oil price has collapsed 50 to 60% in just six months. that's putting a huge department in measured inflation.

more than half of the move down over the last year in global bond yields has been in inflation expectations, not real yields. this is all about oil. all that other stuff aside, it's all about oil. and it will take a couple years for the full disinflationary impact of the new lower regime of oil prices to work its way through price levels. so in that sense, bonds in the short term, are reacting properly to a change in the economic environment. the lower oil price. the problem is, over the next ten years if you're looking at a 10-year bond the oil price isn't going to cut in half every six months for ten years, couple years out, inflation will be stabilized and you will say oh, my god why am i holding this asset that doesn't cover inflation anymore. >> before we let you go, the real question, are you going to take a vacation to rome like david faber with the euro at 1.14? >> i don't know if i'll go to rome. that's kind of a depressing government-driven city but you can get me out to tuscany in a

heart beat. >> that wouldn't sob bad. >> yeah. >> it's always good to see you. >> thanks. >> good to have you. don luskin of trend macro. joining us live from davos, tweeting even as i speak, henry, editor and ceo at business insider, great to have you from halfway across the world. couple big stories, big moves in the wireless space according to the information google is planning on selling mobile phone plans to consumers and managing calls and data over a cell network. the company is expected to reach deals to buy wholesale access at sprint and t-mobile. according to canada's financial post samsung pursuing a deal with blackberry, despite a space of denials, blackberry shares rallying on that news this morning. let's tackle google first. the journal tries to argue that this is about their global ambitions, beyond search. do you take it that seriously? >> yes, absolutely. i think it's great for consumers.

the wireless situation in the united states is ludicrous. the prices are incredibly high. somebody should be coming out with basically just a data plan which is essentially what they're trying to do here. a lot of people thought that amazon would do that. sounds like google may get there first. this is great for consumers. going to be a big business any time soon for google, no, but another thing they can do to advance their own future and the future for the rest of us so it's great. >> this is incredibly dangerous, though. there are a lot of companies that have stumbled doing this thing, espn, comes to mind, when you do this sort of a deal you're getting the network whole sail, you're responsible for customer service, billing, all that stuff. this is giving people potentially a reason to hate google that they didn't have before, if they don't get those pieces right and those are the pieces that even the carriers or especially the carriers, it tend to get wrong. >> good point, jon, but you can say that about anything. google from the beginning has taken big swings. it's difficult but they're in a great position to do it.

look what they're doing with fiber which has been a home run in the cities where they are. everybody thought they were crazy when they embarked on that. now we're all just desperate to have them come to our city. google can handle this. it will be reselling, a different kind of relationship, but they have huge cash flow, they will go after it very aggressively. i think this is just another bold move that they're making. i wish more companies would be as aggressive about taking big swings like this, the whole economy would be better off. >> henry, the question that i have is, is this the beginning of ad sponsored data? something we've heard telecom executives talking about for a long time. remember when go go in flight first came along, ebay was sponsoring the first 20 minutes of your in flight internet experience but you could only go to ebay for the first 20 minutes and people are saying maybe you can now have ads actually paying for part of your data package and white appear that google would be in a perfect position to picture to figure out how to structure that. >> they can certainly do that. that was one of the things when amazon was coming out with their

phone they might do that too, much lower price because they can make it up with commerce and other things, so i think the way you would actually see it, you just get a much lower price because google has an incredible ad business, they can subsidize it a little bit. i think the real promise is making it easier and cheaper for everybody. the current system where you get locked in, you have very high prices in at lot of cases, it would be wonderful to have a new player come in and take full advantage of what we all know the wireless market should become. it's just we're nowhere near it yet. >> yeah. at $530 a share that's going to be awfully close to the high for the year, even though it is still a young year. let's move to ebay, shares in the green after profit topped estimates, company announces it plans to cut 2400 jobs in the current quarter. ebay will explore strategic options for its enterprise business. options which include either a sale or ipo. remember ebay said last year, it plans to split paypal from the rest of the company after pressure from carl icahn who, jon, appears to have worked out deals to work on governance regarding this unite and future

sale if that does happen. >> he does. you see ebay stock is higher on this, at least it was last time i looked. this is worse than it looks to me, what's going on with ebay right now. i mean, i said in the past, i had heard from inside people i know inside paypal that unit wasn't ready for a spinoff. that's why ebay was hesitant to do it sooner in terms of management and treasure. what we've seen happen with the marketplace business in q4 looks to me like a failure of strategy. i don't think you can just blame this on the hack, customers not coming back. ebay didn't create enough of a moat around its business in the mobile era, didn't create enough loyalty type programs like amazon has with prime. they were too reliant on google, on seo for new customers, and that all fell apart. i think there's a really important question about what epps to that business going forward, what it's going to take to turn it around. the stock price doesn't reflect those questions. >> henry you're in davos, linkedin's founder and former

paypal coo reid hoffman talked about that on that very set. take a listen. >> the thing i was opposing in icahn's view was to say well, the management team should split the companies and we have no plan, just a financial transaction. no, you're building long-term value. the management team said we have a plan, splitting them, know how to create more value is something i support. >> henry, your thoughts? >> well, carl icahn won here clearly. ebay for years was talking ability how much synergy they were getting when a lot of skeptics were saying wait, explain to me again how skype is helpful here and paypal, where's the real synergy? they stood by that. ultimately carl icahn came in and said this is ridiculous, we have to split it up and he's won completely. i think the reason the stock is up is that people generally do believe that if a company is focused, they can do better than if they're ultimately hid within a broader corporation. investors probably look at ebay's core business, which as jon talked about is struggling,

a much better acquisition target now if it gets separate, out there, somebody can buy it without having to deal with the other stuff. i think investors are looking at the breakup value here and a lot of value in paypal, paypal's person-to-person subsidiary and so forth. this is good. >> henry, to the discerning eye, this does begin to look like just one giant carve up. you have the enterprise unit which had revenues growing 9% last quarter being prepped for a sale or ipo. paypal where carl icahn now has some governance plans in place where he's allowing someone to come in and buy up to 20% of the stock if it comes to that. and then the low growing marketplace business and it does feel sort of like the company is just going to be carved up. how do you have a company like marketplace trade who buys that stock? should these all just be sold? >> well, i think there's a buyer for every asset. i think splitting it up makes sense. if you really step back from what happened, you had ebay come out of the original dotcom crash as the hero and they were very

profitable, they were continuing to grow. in hindsight they weren't investing nearly enough. they shouldn't have let themselves be as profitable as they were. they should have invested aggressively. amazon, famously unprofitable, was investing aggressively in infrastructure for commerce in the front end where it's helpful to go there and figure out what you want. ultimately that won. it just took a long time. i think in ebay's market, marketplace business, that is what the business case study will include. they had a wonderfully light business, but eventually didn't invest enough and now they're in a position where as you said, they have to chop it up and sell off the parts. >> speaking of icahn we did mention him. the activist investor will join scott wapner this afternoon begins at 12:30 eastern time. henry, i ayssume you have four r five parties to go to. >> it's six tonight. it is the super bowl of schmoozing here. i can't describe it. 18 hours a day.

>> and we're all jealous. >> anyone tells you -- anyone tells you cynically, davos, davos, this is just great. anybody who has the chance to come here should come. it's a wonderful experience. >> henry, stay away from the mini bar, okay? >> absolutely. >> thanks so much to you, henry, joining us, editor and ceo of business insider. when we come back forget windows 10, most of the conversation yesterday centered on microsoft's reveal of that crazy new hologram gogel. wired's jesse hempel got a new look. sthefl join us in a moment. rough ride for tesla, shares down 20% in the last couple months. time to buy the dip? morgan stanley's adam jonas will give us his take. cloud storage company box getting ready to start trading tomorrow. what you need know about that company and it s competition ina few moments. dow up 107 points. "squawk alley" is back in a moment.

♪ software giant microsoft out with several announcements yesterday, including this augmented reality hallow ends. the company unveiled the windows 10 operating system, microsoft surface hub and a web browser under development. jessie is a senior staff wired

at "wired" and former colleague at "fortune" got a look at the halo lens and sat down with satya nadella. got to talk about the lens. in my experience this is the type of project that microsoft tends to fumble. the original surface was this coffee table supposed to go out and it never really got anywhere. now the surface is something else. you're worn the thing. is it good? and do you think it's going to work for them? >> those are two very different questions, right, jon, because you're right, microsoft has a history of fumbling. it's to the just that coffee table. that's the way microsoft does these things. microsoft also has a history of developing amazing technology. and this is that, jon. i have never seen anything like it. i've tried a lot of these headsets. >> so -- >> what about it is so impressive? >> well, you've probably heard a lot about virtual reality headsets, put them on, the oculus rift, and there's another

world and you're in it. you put this on it's augmented reality. it brings the other world to your world. it allows for all kinds of different things and i mean, you know, i walked on mars, i got a little help fixing a light switch where get this an electrician basically on skype in front of me was able to look through my eyes, reach out and draw circles around the tools i should pick up. >> like the promo video that was on youtube yesterday, right? >> exactly. like that. >> did it look like that or kind of gussied up to make it seem -- was it more pixely. >> no, jon. it really looked like that. >> wow. >> that's excitement. temper the exuberance with the fact that this stuff is hard to launch and everyone is after it this year. we saw this from microsoft. we know that i mean there is the oculus, sony's product, there is a setup called magic leap somewhere in florida with nearly $600 million, most of that from google. everybody wants in on this. >> the thing about oculus, it

already has the core audience in gamers that will snap up any product that they put out that is worth something to them. does microsoft have an audience for this? do you think customer behavior is there some. >> consider mine craft. i don't know if you have heard of it. most 8-year-olds have heard of it and microsoft owns it. one big bet that microsoft is making here, is that if this is the only place where you can play hollow graphic mine craft every 8-year-old will ask their parents for this game. >> productivity and platforms where is jats nadella has staked this company. this dangling thing off to the side is gaming. mentions it, says it's not core, but now we have this holo lens. is this about productivity and platforms or about gaming or are they trying do a bit of both? do they risk losing focus some. >> they are trying to do a bit of poet both and, of course, they risk losing focus. they have to go big and microsoft has this problem, it's just not in the middle of conversation.

what microsoft most hopes to do with the holo lens put itself in the middle of every conversation you're having. if it does that at base it will have elevated the game. >> is glass a cautionary tale for them or is the is a totally different world from glass? >> this is a totally different thing. glass is a cautionary tale for everyone. we don't know what it is. google has put tony fidel in front of it and could be something by next year. >> by the end of the year, they're going to have something out in the market. we don't know how much it's going to cost. >> no. >> we don't know who's going to have access to it. >> no. >> how long do they have before they have to put this on sale at a decent price or we're going to call it vapor wear? year, year and a half. >> so much less time than you think and that's because everybody is so anxious to get these things out there, that they'll start leaking out to developers. you will get these products early and really, it's the developers who are going to create the stuff that's going to make the consumers want it. i mean forget how long it takes you to be able to buy it and yes, it will need to be

affordable, i mean they need to be thinking about, you know, the developers that will make bets on this in the next three to six months. >> they certainly could give people an extra reason to go into the microsoft store. >> that's right. >> one or two of these in every store might get a crowd. >> thanks for joining us. "wired" magazine. >> when we come back a big day for the global economy after ecb president mario draghi's announcement on quantitative easing this morning. take a look at the markets. the dow after being down as much as 71 points is up by 120 and on a day like this the european close, as always, is one of the leading indicators for the market action here at home. we will have that close and the fallout effect in the u.s. after this break. push your enterprise

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welcome back to "squawk alley." we're watching shares of f 5 networks getting hammered down by about 12% after the maker of networking equipment posted weaker than expected quarterly sales and gave a weaker than

expected outlook for its current. as a result, pacific crest analysts are lowering their price target to 141 bucks a share from 162. carl, those shares down big in today's trade. back over to you. >> thanks so much, dom. a big day for europe as you probably know by now. simon hobbs here at post nine to break down what we know and think is going to happen over the next few days. >> it's -- it's difficult to underestimate how historic this is today. six, seven years after the start of the financial crisis, the european central bank has opened a new chapter on how we deal with it. this is a broad-based rally in europe, not just banks, it's exporting stocks. a lot of issues across the board as they announce now qe. the announcement made over in frankfurt itself on the huge pressure. without actually a vote ultimately, we don't know the vote, they didn't take a vote, the germans were outvoted. a look at mario draghi entering into the news conference and saying that they will buy -- we don't know how much sovereign debt they will buy. they will have purchases of $60

billion euros every month for the next 18 months. what's important here, is that it is potentially open ended because he's explicitly saying we will buy until we turn inflation around. and in europe, qe doesn't necessarily turn inflation around as we've seen in the uk, take a listen. >> the combined monthly purchases of public and private sector securities will amount to 60 billion euros. they are intended to be carried out until september 2016, and will, in any case, be conducted until we see a sustained adjustment in the path to inflation which is consistent with our aim of achieving inflation rates below but close to 2% over the medium term.

>> they're going to buy at least a trillion euros of assets and if they can't presumably turn inflation around, they'll keep buying or at least that's what the man said. they're going to buy, according to the capital key, this we knew. it's worth pointing out in the next year they buy as they are planning to at 18% of the total in germany, they need to buy $130 billion of bunds. there aren't $130 billion of bunds going to be issued by the federal government over the next year. if anything it's going to shrink overall. that's why you see the move. this is right at the heart of europe. this is german bund yields. up 0.45%. see how they plunged today. also the euro, arguably the main policy instrument, took a hammering, what they want to happen. the swiss national bank moved in advance of this as we know. the danish central bank cut twice in a week to protect from the deflationary or currency wars coming through as cohen

from goldman sachs termed it in davos today. we've lost almost 2 cents off the lows, lost basically 2 cents on a battered euro that trades at 1.142. the attention to the greek election on sunday where the radical left is expected to win. can they form the next government? i think perhaps one more thought on the greek market that's lost a third of its value over the past year, is that they're actually talking about buying government debt from march 15th. so there is a window now through the greek election where they're not doing sovereign qe. let's hope it goes well. >> take care, simon. see you later. when we come back morgan stanley adam jonas slashing his price target on tesla. bullish on the stock. we will explain why. cloud storage company box getting ready to price after the bell tonightp. already facing stiff competition. we're going to take a look at some of the company's rivals in that space in a few moments. dow up 134 and we're back ins just a moment. .

welcome back to "squawk alley." shares of tesla up about half a parsent today, one day after morgan stanley cut its price target to $280 a share. joining us this morning is morgan stanley's analyst adam jonas. good to have you back, good morning. >> thanks for having me. >> fascinating note. cut your target to 280, you say that forecast uncertainty has been taken to entirely new

levels. but then you say it could move 50% to the upside. what is the bottom line of the note? >> listen, a couple, few months ago we were concerned that the stock was running a bit too high for the wrong reasons. fundamental thing there's fair value support at the 280 level. some of the arguments that investors and analysts were making as this is going to be a democratizing model event to bring to the masses we think were out of balance. at 190 or 200, a much better level of balance in the debate. we think that this is -- if tesla was a story of putting electric motors in ugly cars they would be in trouble. they're on multiple levels disrupting a $10 trillion mobility market and it's a classic opportunity to buy a great company doing much more than just electric propulsion. >> you also put lower oil prices and a stronger u.s. dollar in your calculation in lowering your price target. i'm wondering the conventionals wisdom has been lower oil prices

won't affect tesla because it's a trophy asset. people won't buy a car of this price because they're saving $18 a month. what is the logic behind lower oil prices and how it affects this company? >> it's -- it affects the term my nall values and forward outlook years of the company. if they only define themselves as a mixer of $100,000 cars and oil price is not going to be a relevant factor but $30 billion evaluation there are many assumptions they become a mass market or mass affluent manufacturer and at that level at a $35,000 type of price point you're making more economic payback arguments. we think the model 3, the so-called $35,000 car, will end up having average transaction prices more like $55,000. and blow the doors off an m 3 with 0 to 60 performance around three seconds. we can justify 280 as a company, as a niche manufacturer of fun to drive vehicles. but that's needed to reset that in the market.

we're sympathetic to why the stock has pulled back on fears of oil price and the dollar strengthening as well. >> right. then, of course, there's the big three threat. do you -- is the $30,000 tesla, if it ever comes, on a collision course with the volt and the bolt? are they all going to be part of one competitive market and does musk stand a chance? >> if the big three or any other established automaker can make a car as interesting, compelling, beautiful, fun to drive, as a model s, or more fun to drive then tesla is in trouble. it's going to come down to the product. as long as tesla is making great cars and we assume theyen to and the model x we have high hopes for as being better than the model s that's the best insurance the company can have. we shouldn't be witness to this kind of phase. this is probably the most analyzed start-up of a manufacturer maybe ever seen in public markets. we shouldn't be privy to this, so understandably this is -- the

stock will be as volatile as the greek stock market but you're buying one hell of an equity here we think. >> finally, i remember, i think it was you guys with a note last year that argued maybe the long term, extreme long-term play on tesla is a grid play. has that gone away? >> no, not at all. our electric utilities team led by steven bird at morgan stanley, stands very much behind electric utility disruption and the role of energy storage led very much by tesla motors as being an important part of that. how much is that worth to the stock? order magnitude could be 30, 40, 50 bucks, could be hundred dollars or more. but comfortably something that can affect the valuation of the stock beyond just the traditional auto vertical. >> you think musk needs to put a sock in it? is he talking too much? >> is musk talking too much? >> yeah. >> i think musk, i think elon has done a pretty good job trying to build this infectious

enthuse yachl in the company. clearly he's a very ambitious leader. very ambitious company. that ambition, we put the title of our note, is tesla the amazon of autos, the implication being is the bigger mission to i don't want to say save the world, but really change the world, fundamentally and tackle major issues, can that create short-term volatility or lack of transparency on near term profits that conventional investors might be used to, that is certainly the possibility. so that's -- you to go along for that ride or not. if you can't handle that kind of thing, this is not the stock for you. given the other stocks we cover in the u.s. auto industry we're cautious. we still like tesla very much. >> you do ask. i mean the title of the report, is the amtz of evs. everybody should read it. thank you so much. >> thanks for having us. cloud storage company box after a long time coming is set to go public tomorrow in what is already a pretty crowded sector.

josh lipton is live outside box headquarters in loss altos, california, with a closer look at a growing body of competition. josh? >> well, kayla, you know, the corporate cloud industry might not sound especially sexy but this is a very big business. remember, box is targeting segments of markets, storage, file sharing, content collaboration, that are worth $23 billion according to idc and will reach $32 billion by 2018, so with that much money on the table, no surprise, competition in this market is fierce and box goes head to head with some very big powerful players. >> it is very competitive, especially as to why these larger companies like microsoft, google and emc have recognized that opportunity. they've aggressively gone after it from a model. >> which company does box have to worry about?

for one there is microsoft, the tech giant offers storage like box, but also a product called share point, and this is a platform used by workers in many fortune 500 companies, allows them to organize and manage their content. you're also going to see pressure coming from emc. its product simplicity offers and allows workers to securely store and share and edit files. emc, one important difference there to take note of, allows workers to share content in the cloud, but if they have worries about security or compliance issues, they can also do that in their own data centers. despite all these rivals like microsoft and emc, box remains confident about its own strong competitive advantage. they'll argue their tools allowing workers to store and share and collaborate on content on the most simple, easy to use and secure and a lot of the companies do agree, box boasts 44,000 paying customers, everyone from general electric to eli lily and with this

company going public, can they keep winning over those paying customers and take that market share from those large, profitable rivals? we're going to soon find out. back to you. >> we'll see what happens tonight. josh lipton, thank you. when we come back a look back at the anniversary of one, if not the most famous super bowl ads of all time. but first, rick santelli, you have your eye on europe today? >> oh, absolutely. i have my eye on europe and, of course, what's going on with rates, treasuries in particular. could this be a near term bottom to low yields? possibly. and we're also going to give some congratulations out. you may be surprised at who i congratulate today and why. all after the break. your mom's got your back. your friends have your back.

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big show at the top of the hour. carl icahn joins us fresh off his big ebay win. why he's calling it a watershed moment for investors. the new battle he's gearing up for. and twitter shares up on more speculation about that company's future. top tech analyst bob peck joins us to discuss fact from fiction. more on the market's reaction to the ecb's bond buying program. all coming up top of the hour. kayla, see you in about 15 minutes. >> that will be a market moving interview and we will be there. in the meantime it's thursday, so time to throw it back and we are turning back the clock to january 22nd, 1984, when apple launched its infamous 1984 ad during the super bowl. obviously an illusion to the

george orwell novel. shows a woman representing the macintosh flinging a hammer into a giant screen of big brother, which steve jobs himself said represented ibm. it was directed by ridley scott. it was a watershed moment for apple. it won a slew of advertising awards. it's still garnering tens of millions of views on youtube even today. >> how the world has changed. they redid the ad and put an ipod on the woman and even that seems quaint now. she's wearing an ipod, like a relic too, and ibm, boy, that hammer hurt apparently because now, it's feeling the pain of having to go through another transition since 1984 and apple still doing pretty well. >> tells the story, the board didn't want to do the ad so jobs turns and says i'll pay for half of it if you pay for half and in the end they made it happen. unbelievable story. >> let's get to the cme group, rick santelli with the santelli exchange. hey, rick. >> hey, good morning, carl.

of course the ecb delivered. now, i do have to give a huge congratulations. huge. i'm very, very sincere. that i think the ecb on at least part of their mission gets an a-plus. not on policy, not on kicking the tires on what they implemented, u.s.-style qe, buts wait they brought it to the marketplace, really was, and they did a wonderful job. they kind of floated the balloon yesterday, 58 billion euros. today, we didn't get the details until the press conference well after the statement. the way they handled this, the way they pushed it into the marketplace they basically let the market do the heavy lifting and decreased a lot of the potential volatility. a-plus on logistics. i think f-minus regard to the notion of correlations between doing more of what the u.s. and japan are doing, and expecting results that will actually push prices higher.

to that end, i have to give another congratulations, to larry summers. today there was a great, great article and is was in "the telegraph" by an author we love, ambrose. larry summers warns of epochal, try to say that three times, deflationary crisis if fed tightens too soon. the sentence i liked in particular, deflation and secular stagnation are the threats of our time. i think he nailed it. so an a-plus there. the fly in the ointment is this, okay, the secular stagnation has only been addressed in deference to trying to buy time. central bankers are good at that. in addition to logistics, buying time. if you buy time and don't make the changes that are required or you not only don't make changes in japan's case keep raising taxes, you're not going to get far. the first part, deflation, we could argue about what it means,

it's a loaded buzzword, but in a sense he's right. the problem is, is that the cure is what's causing what he's right about. if you are going to pump up financial asset prices, what happens when they get there? if the stagnation is still among us? and that's the problem. we have to pay attention to. on the market real quickly, be very, very cautious of what's going on in 10-year rates. rates in general, bund as well. they hit a low, they bounce, we're going to probably get back up to 1.90. something has changed and when it comes to soup they say let it simmer. let this one simmer. let's see what it looks like at tomorrow's close with deference to potentially lower rates down the road. back to you. >> see what it looks like between now and march 15th. we have time before the purchasing actually starts but for now, rick santelli in chicago. our thanks. up next the fight against uber continues with south carolina the latest state to take action against the ride-sharing service. we will talk to a state official from south carolina about the future of uber in his state in

just a moment. dow is up 104 points. "squawk alley" will be right back. e back to showdown! jerry rice here with 8 year old andrew hunter debating who will win the big race between the tortoise and the hare. what do you think andrew? rabbits are faster. it's not a rabbit, it's a hare. what's the difference? maybe figure that out before debating the best wide reciever of all time. wait, are you odell beckham jr.? vote on twitter for your chance to win a mercedes-benz big race viewing party.

another round of fund-raising for uber with the company raising $1.6 billion for improved safety and international expansion. the riding sharing service has been under increasing scrutiny abroad and here in the u.s. with south carolina the latest state to take legal action against the company. joining us to discuss more is duke scott, executive director with the south carolina office of regulatory staff.

dux, good morning. good to have you with us. >> good morning. thank you. >> what is the crux of the dispute? how would you describe it? >> well i don't think this is as big a dispute as it may sound. the commission just this morning has reset the hearing for uber for february 23rd. we're pleased with that. that's what we wanted, we wanted the hearing reset. the commission acted decisively and promptly today. i think we're on the right track. uber has been very cooperative with the office of regulatory staff. they have worked with us since the summer. they've come to the public service commission and has -- is seeking their authority from the commission to provide the service. we're very pleased with that. they worked with us on the application before they filed it. we have resolved our differences. in fact, we filed a letter with

the public service commission today saying that -- stating that we don't have -- that we've worked out the differences in our testimony from earlier which there wasn't a big difference between them and us anyway. we're ready to go and uber has been great to work with. >> dukes, in a year or two, given that you said that this isn't that much of a dispute, do you expect that uber will be operating much as it is in the rest of the country, just with the paperwork done and is dotsds and ts crossed? >> i don't know how the rest of the country is doing it, but i believe uber has committed to ors and will commit to the public service commission. keep in mind the public service commission makes the ultimate decision. it's our job to go to the public service commission and give them the information that they need to make the right decision for the people of south carolina. i believe we're in a position do that, and we should be able to do that on february 23rd. >> mr. scott, governor nikki

haley in south carolina has criticized the ban in her state. your position is an appointment from the governor's office, i'm wondering, why there are two different sides on this issue or perhaps just a perception of a disagreement on this? >> let me make that clear. our position is not different than the governor's. that's not the case. the governor is addressing the cease and desist order. we have not resolved that issue. our position is no different than what the governor's was on the cease and desist order. that issue still to be resolved but i believe we will be able to resolve that at the hearing on february 23rd. we're certainly not -- we're not at odds with the governor's office. we appreciate the governor's office support for the people of the state. >> has it surprised you? i mean we talk about uber a lot but whenever there is some disagreement regarding permits or operations, it's national news. has that been an education for you? >> yes, sir. >> i have to imagine so.

mr. scott, thank you so much for your time. see how it resolves itself. dukes scott executive direct it ter with the south carolina regulatory staff. >> richard branson and will.iam probably don't have a lot in common but there is one thing, smartphones. we'll explain next on "squawk alley."

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teaming up with facebook to bring you face to face with influential leaders and thinking at davos this week. becky sat down with sir richard branson and will.i.am but the two shared common ground when it comes to the smartphones they choose. take a listen. >> iphone or blackberry? >> i've got a blackberry in one pocket and trying to see if i can enjoy the iphone in the other pocket. >> i have a ipad under -- on my leg, and i have a blackberry in my pocket. >> okay. >> and you can catch the full interview at davos.cnbc.com. head to our facebook page where you get in on the action. later we'll sit down with sheryl sandberg and mylinda gates. log on and submit questions you want asked. >> i liked richard branson is trying to enjoy the iphone as he puts it. always a way with words. >> yes. >> we have a couple minutes

before noon time on the east coast. a look at a couple corners of the market for you today. first off, the vix, the vix has fallen about 9% on the back of that ecb decision that's been moving the markets all morning but the reason why that's important is because the vix is the single most important indicator when pricing an ipo, 17 still considered a little bit more of an elevated number than we saw in the later parts of 2014 but to see it fall that much on an ipo pricing day would be positive news for box. >> what a day for chips in general. >> indeed. and for enterprise. i mean f 5 taking this big fall on a lack of orders over a million dollars in its quarter. i'm trying to figure out what to make of this. netflix, a consumer kind of high valuation stock surprised to the upside and then this enterprise stock that's been hot surprises to the downside. quite a bit to digest here. >> xilinx in trouble and starbucks tonight after dunking downgraded at wells today. mcdonald's earnings tomorrow along with comps and we know what a struggle that's been.

franchisees getting in the mood for change. although the yield now 375 will get your attention after what the 10-year is yielding right now. big show for the judge as he brings carl icahn to the half. let's get back to head quarters at the half and wapner. thanks very much. welcome to the halftime show. meet our starting lineup. stephanie link the coportfolio manager of jim cramer's charitable trust. joe terranova senior managing director at ver tis investment partners and jon and pete najarian the co-founders of option monsters. icahn unplugged. the billionaire investor is live on his land mark deal with ebay, escalating fight with ganet and more. easy money, is the ecb's bond buying plan big enough to work and what does it mean for stocks at home? we begin with twitter, shares jumping today on heavier than normal volume on more speculation about that