welcome everyone to worldwide exchange. >> good morning. these are your headlines from around the world. >> it's a new phase for bp. the oil giant slashed it's spending after taking a significant charge in the 4th quarter due to the slump in the oil price. we speak to the ceo as investors cheer his plans to reset the company. >> oil and basic resources leading european stocks higher as the price of oil continues to climb with wti holding well above the $50 per barrel level. >> beyonds fall sharply after

the country's finance minister backs on demands that they write off the debt. instead proposing a swap. >> they send the aussie dollar to a six year low. the indian central bank keeping it's powder dry. >> you're watching worldwide exchange bringing you business news from around the globe. >> hello everybody. good morning. welcome to a full two hours of worldwide exchange. good to be back on the show. >> great to have you. >> great to be back. lots going on today. bp shares are already trading higher this morning despite a fourth quarter loss on deplacement cost basis.

it will reduce cap exspending this year. in a short time we'll be speaking with the bp ceo bob dudly for his take on the numbers. we'll be talking to the man himself any minute now. >> let's take a look at oil prices. they have been rallying in fact gaining about 11%. we're looking at light crude trading at $50.67. up about 2%. brent crude up about 2.5%. interestingly enough we're ceiling this rally in oil prices despite the u.s. refinery strike and as well as weaker than expected manufacturing data. >> there's been a little bit of a turn in the price of oil. as said steve is at bp's headquaters. steve take it away. >> thank you very much indeed. the reaction from shareholders

this morning to bp has been positive. the reaction to the story over the last couple of months has been positive. we all know there's a huge number of issues for bp specifically and the broader industry. bob my first question is when i saw the numbers i thought it's $2.2 billion as opposed to the 1.5 or 1.6 that people are expecting but then i saw the impairments. does it feel like a beat to you? because when you're making those cuts and tough decisions across the group beating expectations does it leave a sour taste? the fact that you're having to leave so many downgrades? >> well it feels like a beat because the numbers were good but with the lower oil prices certain triggers have made us to impair a good chunk of the assets.

we reviewed 90% of our upstream assets as part of the impairment testing so you never know. we went through most of the portfolio. this is a pretax as well. >> you and i have been talking four or five years now and back in 2011 you were hoping you reached it but you put a plan in action to try to make bp ready with a lot. has that plan been overwhelmed by events in terms of price? >> no we achieved that plan. it was a three year plan to get us to the end of 2014. increasing the cash flow by 50%. we have cleaned up the portfolio. it's in response to the terrible accident we had in the gulf and thank goodness we did achieve that plan. i tell people at bp it's like we came through 2014 opened the door and we're in a raging gale and now we have a different challenge. >> cutting cap ex is a

situation, low commodity companies have to do it. it's difficult to get it right at this stage of the cycle. you're cutting down from the expectation of 25 or $26 billion a year but down to $20 billion a year. but wouldn't you like to be increasing it at the moment? picking up market share and assets? >> you're right. we're one of the longest wavelength investment industries in the world. sometimes it's seven to ten years before there's a revenue and you have big projects that are like a horse halfway across the river. you have to keep going with those. but others you step back and we know the costs are going to rebase themselves. >> you're putting a salary freeze in. you're cutting costs aggressively. this industry desperately needed rebasing of costs. is this just giving you the opportunity to do something? as hard as it may be that was

desperately needed to do? >> we needed to do it to put bp in a world that might be $50 oil for some time and in addition very complicated company after our events in 2010. we were going to be streamlining it so these two things will come together and it will accelerate it. >> shareholders want to know about the 10 cents a share as well. any concerns about that? it's been gradually increasing. there were obviously issues about dividend a couple of careers ago but any threats as far as you're concerned if we stay in a 45 to $55 barrel level? >> one of the things is protect the dividend. we have lots of shareholders pension holders, that this is vitally important. this is really number one. >> because it's a big yield in a world where we have german government bonds trading beyond japanese tenure this year. 5% plus yield. people are very excited about

that. you don't need to rebase that at any stage. >> well absolutely it is number one priority to protect that dividend. >> what about planning? you have been saying we're planning possibly a bit higher but we won't see the rebound back to 100. >> why not? if there was a descent amount of 90 barrels a day at $110 barrel. why wonlt't we see the big demand response. >> it's going to take time. it could take a long time. there is excess supply. the u.s. production is growing and chinese demand has great growth in china. but not as high as it was. we have stock levels filling up all over the world. it won't be long before we see people putting them in ships and that takes a long time to work it's way off. >> the price of oil is around

12% as well. do you think we need to see further shakeout first? >> well i don't know some of this tension, i was reading reports, uncertainty in iraq and concern about iraqi production. i'm actually not worried about iraqi production from that. you could have geo political events that could move it but fundamentally that really drives the price down and i think the market is having a hard time. is it 45? is it 55. >> now interesting you said that, you didn't mention the phone call you probably make on a daily basis saying what about the shorts out there as well? because i thought the shorts were getting squeezed aggressive. specks still part of the oil price would you say? >> well every market has people that invest not really in the physical barrel. could be a little bit of a short squeeze but it's more than the market really isn't sure where

to base around here and to me 45 and 55 it's still down a lot. >> it's going to stay there. >> i believe so. >> so i talk to him a lot and i speak to a lot of the ministers over at opec as well and the impression i'm getting and they refuse to say they're in a game of chicken with u.s. shell or the russians do you think opec and traditional producers are in a game of let's just see how long we can survive these lower prices and to challenge what happened in terms of those nonconventional suppliers because they believe it was the u.s. and others that created this decline. >> i hear there's high cost production that's growing. high cost production in north america in particular. why should they as low cost producers shut in to allow the high cost oil to be produced. i think they do want to test this market and test it pretty hard. >> do you fear the u.s. shell boom is challenged before it's

even really begun to be a long-term part of our energy mix. >> it's come up 3 million barrels a day is quite extraordinary. we haven't seen that happen anywhere in the world. you look at the rig count which is dropping like a stone now. i think you'll see that shell is shell. it will really got parts of the shell can sustain $30 oil but those on the fringes of that will struggle and we'll see eventually by definition it will flatten out and drop. >> let me ask you a question you have the latest judgment i think it was 3.2 million barrels deemed to have been leaked out of that as well. it's 13.7 billion. do you feel you're getting through these issues now? you're in the home run in terms of the issues concerning them. >> so what just finished and

it's going on this week i can't say much but it's in the trials right now is a look at the -- to develop penalties and trials. the second was to look at the spill response. how bp responded to the spill and cleaned up and the ruling was we were not grossly negligent in that. we had about 50,000 people working around the gulf on that. it's working it's way through. this thing could go on for a long time. everybody sort of realizes now this is a long process. >> well final question, russia, you have just under 20% stake in that as well? what's the future in that operation. the profit was $500 million this time around. >> we've been there this month for 25 years. we have a long history and we have a good relationship.

we're looking at the tensions around ukraine. russia is the largest oil producing country today on the planet. we think this is a very long-term investment. we will not do anything outside of -- we will stay within the sanctions. >> john talked to me -- from blackstone -- talked to me about the weaponization of energy going forward. do you fear though that given the ukraine situation it's not frozen but it's on going and the racheting up of the pressure will fall upon the energy sector and your relationship to put more pressure on the kremlin? >> i don't think we'll play a role in that. >> but as far as your ability to attend board meetings and have the alliance and continuing operations? >> i don't think so. the sanctions are pretty clear. i can operate and work there and interact as a member of the board.

we have people working with them on environmental programs and working inside the company helping them. they adjusted their plan dramatically. they are behaving like any of the other majors in terms of responding to things. i don't foresee that. >> you're always very generous with your time. thank you very much indeed for talking to us today. bob dudley from ceo talking about a host of issues from the price he thinks will stay where it is now and how bp was perhaps in a better position to cope with some of these challenges and maybe some of the rivals. >> steve thank you so much. you got him to talk about everything from sanctions in russia to its exposure and what to expect going forward. bp one of the out performers today. now sticking to oil, do you think, dear viewer the price of oil has seen a bottom? let us know what you think. join the conversation here on worldwide exchange. you can get in touch with us by

e-mail. tweet us at cnbcwx. >> as soon as we see a turn around everybody is speculating. >> well 11% rally in the last two days. that is notable. >> i know it is. it might well be. >> we had a bet earlier on. i thought we had hit a bottom at that time and oil was at 42. >> exactly. >> which i was wrong. >> you won. >> you owe me a cake. >> you got it. after break. >> italy's new president is being sworn in after he was elected by parliament on saturday to replace napalitano. he is 73 years old. he's had a whole host of previous positions in government. there's a quote here that's nice. it's often said the italian president needs at least four

important qualities. deep knowledge of the political scene, intimate understanding of the constitution and international standing and empathy with public opinion. so that's just taking place just as we're here on the new swearing in of the italian president. >> from italy to greece. greece's new government offered an olive branch to creditors by dropping calls of a write off of its debt and proposing a swap for growth linked bonds. the finance minister also told investors that the government will press ahead with reforming the greek economy. it's not clear if the proposals were discussed with the ecb or european unions officials. by the way, i found this meet and greet to be kind of awkward. i was cringing a little bit. >> it was a meeting. they both had positive things to say about each other afterwards. breath of fresh air was a quote. it seemed to go well. >> fine. >> looking at the greek bonds,

yields there pushing lower across the board. we've seen a big drop in the greek bond yields on the back of the latest developments. we're getting them on a day by day basis. >> and yields on the german bond falling below japan's tenure. this is the first time on report. so an active discussion around bonds and where to put your money. let's discuss more with our next guest. the fixed income portfolio manager. thank you for joining us here in studio. >> thank you. >> despite record low yields investors are still gravitating toward the flight to safety trade. what do you think this tells us about how investors feel about where the markets are headed especially around the deflationary fears here in the euro zone. >> a lot buy bonds because you have regulations and maybe, for

example, dutch pension funds are obliged to buy bonds. there is flight to quality and the qe in japan is huge and the japanese central bank is obliged to buy them because they have to buy many bonds around the world. yields drop dramatically. sometimes negative and that's a flight to low yield. inflation is negative. we have to make the effort to think in terms of real rates instead of nominal rates. >> why did you tell your entire division in italian and spanish bonds. >> it was in early january because we told that there were two major events in europe in january. first the qe finally announced by mr. draghi. the qe was already in the price

of these bonds so maybe we could experience another very small tightening of the spreads but we didn't have so much to make. on the other side the greek election could have lead to a surprise. so you have a very small expectation of gain and a very large spread widening probability. >> when looking at this drop this further drop that we have seen in german yields versus japanese yields those are the lowest seen on record what is that telling you? some might speculate we're heading toward more of a japan japanification of europe and others might say it has to do with the quantitative easing. >> yeah it's so huge that the german bond can continue to fall and now we cannot speak anymore

about the japaneseation of the bond. yields can go to almost zero. that's why we think that strategy, that globally speaking we're more bullish on the u.s. yields rather than european yields. >> but there's investors sal evacuating at the yields when looking at the greek bond markets. some of the tenure add about 14%. would you recommend investors to get in now and buy that debt. >> not at all. >> but even if you negotiations perhaps will come to a close at some point in the next couple of days. >> i have two answers, first and foremost i'm not sure that many investors hold greek debt because greek debt is held by institutions such as central banks and european union and ecb itself. it's not for investors.

secondly i would not recommend it first because the risk is huge and secondly because did you see the slope of the curve is negative and when there is a negative slope of the curve it means that there is a huge huge risk. when you have rates at 13 or 14 it means the slope is dangerous. >> the u.s. tenure is at a 21 month low. you would think with the u.s. economy seeing growth of 2.3% and sbelacceleration of jobs growth they would put their money in equities versus bonds but that's not the case. >> it's a paradox in the u.s. because we agree growth is higher. let's say around 3% this year. unemployment is going down and the fed could start to have a

monetary policy. if you read all the books of economy you surely read when you were a student it's not time to buy u.s. treasuries but it's a pair dock. i'm very bullish on u.s. treasuries because the last factor of the behavior of the u.s. treasury yield is inflation and inflation is decreasing sharply. >> fixed income portfolio manager. thank you so much for joining us and giving your outlook on bonds. appreciate it. >> now u.s. auto makers will they continue to enjoy a ride in the fast lane. manufactures are expected to post another set of solid sales for the first month of the year. we'll be joined with a preview on that. also we're still talking about the super bowl. find out exactly how many people tuned in for this year's game and katy perry's roaring performance on the back of a

mechanic tiger. we'll be back with more of this.

now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. welcome back. let's take a look at the european heat map and we're firmly in positive territory. in fact the stock's europe 600 index up about 1.3%.

what's fuelling the rally? a lot has to do with the rally in oil prices and energy in oil stocks pushing the stocks to a new seven year high so a rally continues when it comes to european markets vastly outperform outperforming. we are in the green across the board. the big out performer is the french markets. interestingly enough if we switch the focus to currencies where there's been an act of discussion around the weaker euro providing a boost to exports. that story holding true with the euro weakening against the u. s. dollar. now at 113. the big question is will the euro at some point trade in parady with the u.s. dollar.

what does this mean for asia? weak pmi data yesterday did weigh in on investor sentiment. let's check in with samantha with the latest on trade in asia. over to you. >> a bit of a mixed picture is what we looked at in asia. let's start off with india because we saw a rate decision come through at 7.75%. of course the central bank is watching the rebound in crude and saying that they're waiting for the annual budget to be past the end of the month before any new decisions are made. that being said, surprise australia's market to rallying off the back of the rate cut record low. it's still overvalued and the weaker dollar is needed to

rebalance the economy and of course we're seeing them react to that. also pointing out the rally there of 2.5%. 3,205 3,205 points is where that market closed. five days of losses and buyers back in the chinese markets but still profit warnings coming thick and fast from chinese companies today that's a theme we're seeing from chinese companies. >> interestingly enough shanghai index up 2.5%. thank you so much. let's look at some moving in the trade. trading high after denmark's largest paingbank posted a smaller than expected loss. they also launched a share buy back program. we'll be speaking to the ceo at 11:20 cet.

don't miss that. the bank's 4th quarter operating profit missed expectation. now the ceo said that business has not suffered from the economic slow down in russia. listen in. >> i mean we vn seen any deterioration of credit qualify in the baltic operation due to the russian ukraine situation. we have a very small exposure in russia. some 500 million crude now which is equal to 50 million euro. that's deteriorating. in russia there's huge problems but we don't see any deterioration in the baltics. >> at some time they pointed a 70% jump in 4th quarter profit increased lending and falling charges of bad loans. this is the first set of results under the reign of the new chairman and you can see the stock up better than 3%.

portugals bcp is trading higher after an increase in net interest income. however they announced a bigger than expected net loss in the 4th quarter of almost 120 million euros. the stock though up about 3.4%. >> thank you. still to come on the show the reserve bank of india holds steady, for now at least with the central bank in wait and see mode for the governments new budget. could more easing though be on the way? we'll be discussing that after the break. you're watching worldwide exchange. find us on e-mail and twitter. we're all on there. we'll see you in a second.

welcome back. bp splashes spending after taking a significant charge in the fourth quarter after a slump in the oil price. the new phase makes sense. >> you step back. it's the right thing cutting cap exbut the costs are going to rebase themselves. it's good business to refer now some decisions. >> well oil and basic resources lead european stocks higher as the price of oil continues to climb with wti holding above $50 barrel. >> greek bond yields fall sharply after the country's finance minister backtracks on demands that they write off the

debts instead proposing a bond swap. >> and the latest central bank to surprise with a record rate cut sending the aussie dollar to a six year low. the indian central bank, though, keeping it's powder dry. >> guess what british construction companies might be happy this morning because they rebounded unexpectedly in january after a slow end to 2014. we had the improvement in order books and rising confidence. this according to the latest surveys pmi to 57.1 versus 57.6. we got 59.1. >> strengthening across housing, commercial and silver engineering. sterling is trading at 1.5 against the dollar. slightly weakening. but take a look at european equities. we have been seeing a rally

across the board. up about 1.2% after growth rebounded in the month of january. this is the index up 1% in today's trading. yesterday it closed in a record high and so far the best performing developed market in 2015 up better than 10%. can the rally continue? of course the promise of the ecb and if that qe program will in fact stimulate growth is what's moving markets higher. oil is a big part of the story today. >> international exposure for a lot of the big german companies out there and we saw further money influence into germany after the snb move as well we have been talking about the bond markets as we continue to see the record low yields. important pointing out that the german tenure has now moved below the japanese tenure for the first time ever. what does it tell us? investors are looking at europe and thinking we're in a panic-type scenario here or we're being helped along by

quantitative easing measures? we also continue to see further moves in greek debt off the back of some of the latest news with regards to the progression of their debt discussions there. fx markets. >> fx markets well of course the winning trade has been the euro and that's holding true today. this year the big concern in the u.s. has been the strengthening dollar the negative impacts on multinationals. over here we're focussing on how the weaker euro is benefitting some of the corporates like volkswagen. bp shares are trading higher despite the cost on a replacement cost basis due to write downs related to the slump in the price of oil. the u.k. energy giant said it would reduce cap ex spending

this year to around $20 billion. now earlier steve spoke to the bp ceo and asked him if the firm should be increasing cap ex in order to pick up market share. >> one of the longest wave length investment industries in the world, like with mining we have to make big bets and you have big projects that are like a horse halfway across the river and you have to keep going with those. others we step back and we know the costs are going to rebase themselves so it's good business to defer now some decisions. >> you're cutting costs aggressively. this industry desperately needed rebasing of costs. as hard as it may be that was needed to do? we needed to do it to put bp in a world that might be $50 oil for sometime and very complicated company after our

events in 2010. we over complicated it. we were going to be streamlining it so the two things have come together and it will accelerate it. >> share holders want to know about the 10 cents a share as well. any concerns about that? it's been increasing over the last couple of years. there were issue about dividends a couple of years ago but any threat as far as you're concern first degree we stay in a 45 to $55 barrel level? one thing we'll do is protect the dividend. we have lots of shareholders and pension holders that this is vitally important. that's really number one and people are very excited about that. you don't need to rebase that at any stage. >> absolutely. it is number one priority to protect that dividend.

>> now a look at the other u.k. earnings as well. they're hit by a $6 million write off forcing them to slash plans by 30% this year. the full year total operating profit fell by 14% they posted a slight stop. it warned that overall investor sentiment remains fragile. they posted the first ever full year profit coming in line with expectations. this said that pretax profits came in at 10.1 million pounds compared to a loss of 3.8 million pounds in the previous year. and top talk shares also falling despite a 4% rise in revenues but the company warned that full year earnings would be at the low end of estimates. let's put it all together.

is there a theme? >> yes i think there is. >> what was particularly important coming into 2015 is that u.s. corporates kept up their end of the bargain and of course we're seeing something similar in the u.k. there might be a slight fly in the ointment in terms of u.s. companies on the basis of the outlook we have been hearing about. obviously you have the strength of the u.s. dollar working against them. so it's perhaps a bit more composed but on both sides of the bond there are definite signs they're getting their acts together. >> what do you make of the oil companies so far and the service companies? >> not surprising given where we are in the fall of the oil

price. there's a large amount in the period of uncertainty. investors are being paid to wait in the form of the dividend yields so that's been fairly central and we've had pretty much an echo one or the other that the dividend remains pretty much a first priority in terms of being maintained. it's the adage of never sell shell. part of that has come from the dividend. they're incredibly complex companies. there's so many plates spinning at any given time. it's also an element of relief. >> that's what i was going to say. we've seen widespread pain over the last couple of months. today it's the best performing sector. do you think this is actual change in term of sentiment toward oil and gas stocks or is this simply bargain hunting?

>> it could be bargain hunting. obviously production had dropped in certain parts of the state and there seems to be continuing debate whether this is a demand issue or supply issue, let alone what opec might be doing in the background and so on. but if you have the chief execs not sure where the oil price is going that's an exceptionally difficult one to call. >> the big winner in the supermarket space right now? >> the supermarket space, well i think it's fair to say that of the three main quoted supermarkets in the u.k. investors are tending to look elsewhere. it slashed it's dividend and that's important in this interest rate environment. it's something on the road to recovery. it has a fairly well established online presence. morrisons is behind on that but we're moving toward convenience

stores and online and the supermarkets that continue to grow those rather than the race for space may find themselves at the mercy of bargain hunting but the market is fairly neutral. >> up about 20% in the past month. profit warnings. cutting their work force. that's 12 month. the one month you can see the stock has been staging a come back. i guess some investors think the worst is behind them. >> had an aggressive sell off. >> if you look to a three or five year chart it might be a slightly different shape here. >> the jury is still out on tesco but for now, richard hunter, thank you so much for your time. let's switch focus to india because there is a big story there. rbi has dipped against the bank of india. speaking after the decision he

said it was premature to take a strong view of the revised gdp figures out last week. he said the bank was sticking to its full year growth forecast for now. we're now joined by maya director of multiasset allocation. maya was this the move you were expecting from the reserve bank of india given that it cut rates once in january? some were expecting another rate cut given inflation coming down given that oil prices were a boom for the indian company. we had the surprise move in january and the governor was quite clear that we either needed to see more pressures or signs of fiscal consolidation before he moved next and we have seen neither. so the lack of a move today wasn't a surprise. i do think they will cut going forward this year. 25 basis points this year.

there's a good chance you might get more than that. really for two reasons. first, what we have seen as inflation has come down is real interest rates in india have increased and this creates a lot of room for the central bank to cut rates and second because while growth is improving it's not improving massively so low rates are needed if you like to lift it further. >> is the investor overly optimistic about the indian economy? because it's been trading in record high territory surpassing 29,000, the first time ever. yet as you were just pointing out growth is still slowly coming back. >> one of the things you have to bear in mind is you've had a big rally in equities but what has driven that rally? we look at the 12 month ruling and try to split that into the earnings and pricing what is striking and very different from other emerging markets is that earnings have driven 2-thirds of the rally. so this is an earnings supported

rally. to give you another example for the u.s. 95% of the rally is from prices and 5% from earnings. india is a market we like. we own them in our multiasset portfolios and our asian fund is in it too. >> that's interesting. a lot of people they have been pointing out that india precisely has more headwind. i wasn't aware the difference was that great. >> yeah and it's a really big -- a really striking difference. >> do you think it's sustainable? are we going to look at strong earnings or strong forecasts throughout the year? >> i think the consensus is about 14 14.5 at the moment for eps this year and we think that's pretty achievable. you may well have a small upside surprise. if policy continues to ease. the structural reforms we're all looking for come through and the corporate profitability picture in india continues to have

support from less inflation and better growth. >> and is your one specific sector you're betting on to outperform behind strong earnings growth? >> no it's a fairly broad, broad story because i think it really is a story of indian growth finally picking up. reforms that we have been waiting for for decades in the labor market finally coming through unlocking this perspective growth further and, you know policies moving much more in favor of an indian growth story. >> it will be interesting to see if valuation becomes a concern. director of multiasset allocation at thread needle. that's expected to the another mover for the indiana state yand market. >> i think the way they changed how they calculate gdp. >> it is a lot better.

it's too soon to judge what these divisions mean as the governor said himself today. >> we'll talk more after the budget, thank you very much. on to turkey the turkish central bank is saying it won't convene an emergency policy meeting after the january inflation dates came in better than expected. prices rose by 1.1% compared to a forecast of 0.7%. the decision was immediately criticized by the turkish government which is pushing for lower rates. it has recovered slightly after hitting a record low against the green back just last week. >> all right and still to come on the show central banks and commodities are making waves in the currency market. we take a look in more detail after this break. that's coming up next on worldwide exchange.

hello, everybody. welcome back. you're still watching worldwide exchange. you can find us on e-mail as well if you're not on twitter. worldwide@cnbc.com and we're both on twitter at seemacnbc. we always are happy to hear what you have to say. >> tweeting away.

>> exactly. they're trading lower after a court suggested a nuclear tax is dom patable with eu law. the preliminary decision could prevent them from recovering billions of euros. what does it mean. >> another major blow for german utilities utilities. they hoped to get the money back. they already paid to the authorities and that's not like peanuts. we are talking about 4.6 billion euros and also rwe paid more than 1 million euro in taxes. we have the ruling last year from the court that was actually saying the tax is illegal and now of course we have the european court overruling that domestic court saying a tax looks perfectly legal. that means there's very little

likelyhood left that german utilities actually get away without that tax. so the first reaction we have one from rwe, they are saying they're sticking to their original reading of the tax ie. they are still thinking it's illegally and waiting for the final opinion of the court but things don't look well. looking at the share price development for those utilities they're trading lower by more than 50%. if you look on the five year horizon but even year to date they're in negative territory where the dax is up by more than 10%. with that back to you. >> thank you so much. gazprom is siting a challenging business environment. they said it would total $30 million saying the considerable

reduction of capex allows us to show a strong cash flow. this stock is on the move and in today's trade it's up about 1.6%. let's take a look at oil prices. one of the reasons investors say that equity price versus been moving higher. the come back up about 11% over the past two days. trading up by 2.2%. brent crude up about 2.4%. the big question is can the rally continue? and with the surge in oil prices over the last number of days do you think oil has seen a bottom? let us know what you think. you can join in on the conversation here on worldwide exchange. e-mail at worldwide@cnbc.com. i'm sure there's an active discussion around weather. oil prices have hit a bottom. >> at cnbc and yes oil has hit a bottom and it's moving higher.

the aussie dollar hit a six year low after they slashed rates adding to the slide. however the canadian dollar has given up gains after rallying on the jump in crude. paul is the head of currency at inside investment. he's with us. >> good morning. >> where do you think the most interesting move is at the moment in currencies? >> you have the commodities moving and you have the possibility of the first big secular move in the dollar that we've had for a number of years and then of course the euro focus so far this year with the ecb and qe. >> do you think it's responsible to weaken their currency in hopes of spurring growth? >> sure. the central banks are

domestically focused. why are we to the stage where people have weakened their currency? they have run out of other things to do to try to boost the economy. it's their responsibility to do what they can. what's in their power. if we had a global coordination perhaps way it was after the second world war that would be something different. >> on the flip side is the stronger dollar which is is a big story because it's impacting the multinationals in the u.s. that do business overseas. do you see the dollar strengthening further if the economy does continue to accelerate? >> i do. i think we are at the start of a dollar trend. you have to take a step back and remember that the u.s. managed to weaken it's currency despite the fact that it had the strongest recovery of all the major economies after the financial crisis as the fed managed to ease more effectively than anybody else and i think now with the u.s. economy

showing the benefits of that we're seeing the flip side of it but i think lit go beyond that. >> i just put my nose into your shot because i was trying to see where euro dollar was trading. >> i think it's perfectly possible. the currency market has gotten use to narrow ranges but if you take again the step back and look at how currencies traded we see much bigger moves. we're starting to see the option market already adopting into this new environment and we could see much bigger moves in kurn sis going forward. >> the aussie dollar drop. is this a buying opportunity now or do we continue to sell? >> i don't think it is. the commodity prices still suggest it should be lower they tend to cut in a sequence. they sited domestic reasons for cutting and commodity prices,

particularly australias are continuing to go lower. >> thank you very much. paul lambert from insight investment. three greek banks have started using emergency funding and they tapped around 2 million euros so far. >> we'll take a look at the euro trading at 113 against the u.s. dollar. still to come on the show we'll get back to the big move in oil and bp ceo telling cnbc he's planning a new phase for the oil giant. find out more after this break. we'll bring steve back who had that first on cnbc interview.

let's start with bp. a new phase for the company. they slash spending after taking a significant charge due to a slump in the oil price. ceo tells cnbc the reset makes sense. >> you step back it's the right thing. but we know the costs are going to rebase themselves so it's good business to defer now some decisions decisions. >> wti holding above $50 barrel. u.s. futures indicating a higher

open. >> greek bond yields fall sharply after the country's finance minister proposes a bond swap. >> and fuelling the i-conomy. apple announces an investment plan. >> you're watching worldwide exchange. bringing you business news from around the globe. >> welcome back everyone. let's take a look at u.s. futures after what was a rally on wall street. the dow and the s&p 500 gaining better than 1%. the nasdaq trading in positive territory and today it seems like the rally could potentially continue especially with oil prices once again in the positive territory. the dow indicating a higher open by around 14 points. the s&p 500 up four. the nasdaq seeing a gain in

premarket trade. despite holding on to around $170 billion in cash apple issuing another five-part bond deal. take a look at the ftse cnbc global 300 index. we did see shares trading lower yesterday because of the disappointing pmi data out of china. today up about 2.5%. in europe we've been seeing a rally and u.s. futures indicating a higher open so right now we are positive across the board. keep in mind the europe stock 600 index trading at a new 7-year high so the rally continues in terms of what is driving the rally. a lot has to do with greece. hopes for an agreement on the greek debt negotiations. that has lifted sentiment across the board and of course corporate earnings has also been positive so far in today's trade and of course the other factor that investors are trying to digest is this rally. this rebound in oil prices up

about 11% over the past two days. the question is will it continue. >> yeah, also some saying that nonopec investment in drilling is to turn the market higher. others saying look we came down so quickly and what comes down must come up at some point in this market usually. let's take a look at bonds as well. we have been talking a lot about the fixed income moves and this morning we have seen lower yield across the board. and the same in the u.s. the tenure there. now when looking at these figures at the moment we of course had the fourth quarter gdp data on friday from the u.s. that was quite a bit weaker than anticipated. we saw treasury yields driven on the back of that. some are again questioning why we're looking at these record low yields across the board. stateside when we're still talking about a potential fed rate hike to come this year. that's a very good question.

the tenure in japan showing us a yield of .3% and we see yields holding on to the 10% level on the ten year there as well. moving on to the fx markets. we're still relatively stable. again moving higher from these pretty low levels we were flirting with here a couple of days ago. the dollar yen down by about a bit. the aussie dollar off by more than 1.5% after we had the surprise move in australia. slashing rates to a record low of 2.25% gold trading up a bit. wti crude up by some 3% so quite

a bit of activity taking place in some of the underlying commodities today. what's been going on in asia? samantha joins us out of singapore. good to see you. >> thanks. let's start off with the key story. the reaction from the stock markets over in australia that market rallying 1.5%. we haven't seen this level in australia since june 2008. cutting rates to record low 2.25% and breaking that 18 month year and a half break on stimulus. the story is not only about the equity rally but also what the aussie dollar is doing we're seeing the dollar reacting to that. looking over to india those markets reacting negatively to

the interest rate decision today. both down .5%. keep in mind we have already had a surprise come through from india. rate cut on january 15th and since then we had new developments and of course they're also watching the oil price which rallied over 10%. since that mid january decision we're also watching out for what the budget will deliver at the end of the month. if we do have surprises and stimulus coming through that would be something that the rbi needs to take into account. that being said many economists out there still pricing in more easing to come from india. back to you guys. >> thank you. let's continue the discussion. one of the out performers is bp despite posting a q-4 loss on a replacement cost basis due to the slumping price in oil.

they also said they would reduce cap exspending this year to around 20 beside. a great interview steve and it's really interesting to see how the market is cheering that capex plan. >> what is interesting is the market has taken bp from around 365 and 370 back up to 445, 46. so they had a good rally throughout the big decline in the oil price. that's something not many of the oil companies can talk about. bp has fallen on a host of issues including russia. big concerns previously. bp believes it's put itself in a much better position actually because it's gone through a lot of pain over the last couple of years years. >> still working through that. they've had the latest rule wrg the fine is going to be capped because of number of barrels released into the gulf of mexico. the fine is going to be capped in the region of $13.7 billion. bob is pretty coy about saying he can put a line under that

situation but they have been cutting back a lot of operations. paying for the spill which cost over $40 billion for bp but what is interesting you think price is down. now is the time to build market share and gain your market share when all your other rivals are worried about the demand outlook as well. bp said actually it's going to be $20 billion rather than expected. so i put it to bob, wouldn't you really like to be actually increasing your assets? picking up assets at 45 or 50 dollar barrel when others are off loading. >> one of the investment industries in the world we have to make the big bets and you have big projects that are like

a horse halfway across the river. you have to keep going with those. but others you step back it's the right thing. but we know the cost is going to rebase themselves. >> you are putting a salary phase in at bp. you're cutting cost aggressively. this industry desperately needed rebasing of costs. is this just giving you the opportunity to do something? as harsh as it may be that was desperately needed to do? >> we needed to do it to rebase the cost to put bp in a world that might be $50 oil for some time. . we were simplifying the company anyway. we were going to be streamlining it so these things have come together and will accelerate it. >> shareholders want to know about that as well. any concerns about that? it's been gradually increasing over the last couple of years. but any threat to the dividends as far as you're concerned if we

stay in a 45 to 55 dollar barrel level? >> one of the things we'll do in the financial frame work is protect the dividend. that's the number one priority. lots of shareholders, pension holders, that this is vitally important. that is really number one when we rebalance. >> because it's a big yield in a world where we have german government bonds trading at below japanese tenure today you don't need to rebase that at any stage. >> it is number one priority to protect that dividend. >> i remember speaking to his various predecessors about 45 or $50 barrel oil. i was talking to him about going up and he said we're not planning on it staying here for a long tile but we'll give the extra back to shareholders as well but we talked about how

difficult it is to plan for the future. i put it to him that not only did the ia got it wrong, eia, the opec got it wrong but also i said chief economists at bp got it wrong. >> and he said we think he got it right to a certain extent but how do you plan for oil investments when you don't know what the price is going to be? he doesn't think the price is going to move any time soon. >> it's going to take time. it could be a long time. it's still growing and chinese demand, of course there's great growth in china not as high as it was so we have stock levels filling up all over the world. tanks are filling up. it won't be long before we see, i think, people putting them in ships. that takes a long time to work it's way off. >> the price of oil has rallied $6 in the last three sessions. do you think that's a dead cap balance or do you think actually

we need to see the shake out first? >> well i don't know some of this relates to concern about iraqi production. i'm not worried about iraqi production from that. you could have events that could move it but that extra marginal barrel of supply really drives the price down and i think the market is having a hard time. is it 45? is it 55? >> you make good points. i'm sitting thinking about consolidation and all the talk we had a couple of years ago about whether bp would be more for other companies once that cap was set for a fine. >> no chance. >> i'm looking at a five year bp chart and they were dead meat and some of the parts were extraordinary. put up a five year if we can on bp. as if by magic. got down to three pounds pretty much and people are saying hang

on a second it's five pounds sterling minimum. used to be 5 pound or 7 pound range. i used to look at this one as a trading pair. it was a long while ago but the point is three points yeah some of the parts look interesting for this one. if you still think some of the parts is 5 quid if you still think it's there there's less for you and plus the fact the question is very obvious, who. who would have the bravery to take on not only integration of the company but the russia exposure and potentially exposure as well. i think that talk has long gone. i think the ship has sailed. >> a lot of moving parts. thank you for bringing us the interview. >> my pleasure. >> bp. up about 3.5%. definitely one of the out performers. we're going to move our discussion on to tech. samsung throws a curveball confirming it will unveil the s

6 next month. we discuss what the new smartphone could look like. that's coming up next on worldwide exchange.

welcome back to the show. these are your headlines.

bp shares trading higher after taking a loss in fourth quarter due to the slump in oil. crude continuing decline with wti above $50 barrel and greek bond yields falling sharply after the new government backtracks on demands to write off it's debt. >> let's give you a run down of what to watch this trading day. december factory orders are out. forecasted to drop for a fifth straight month but economists are optimistic the decline will be temporary. they report results before the open. after the close we will turn our attention to disney and chipotle. let's get out to brad who is the chief investment officer at common wealth financial network to talk about u.s. markets and what to expect in today's tading day. let's talk about yesterday's trading day. we saw this late stage rally. energy stocks. the best performing sector in yesterday's trade. was it just the oil rebound that

sent u.s. stocks higher or was it the prospect of a negotiation coming together on greece's bailout program? >> i think oil was a big part of it because with the oil price starting to come back first of all you see the profits recover but second of all you see that no the world economy is not broken. that's not what is driving the oil price. greece worried everyone. that's a big deal. >> and of course another big part of the story has been the stronger dollar especially last week when you had the likes of conoco phillips caterpillar, big multinationals that reported disappointing earnings. how much of a headwind will that be going forward for some of the big american corporates and let's think out, how much could the stronger dollar impact u.s. growth and inflation? >> i think it's a big deal but

the impact in the stock market largely played it's course. we've seen this happen and we've seen the move. the answer right now is that's done. that's priced into the market. two or three steps out the dollar strong is actually a sign of a strong u.s. economy. we're seeing the fundamentals improve. it's a symptom. not a cause. i'm not worried about it. >> good morning. just explain to me what you think u.s. yields are telling us at the point because i don't get it. if yields are at these record lows across the board on a daily basis why do we keep anticipating that the fed is hiking rates this year? >> you have to separate the short-term rates from the long-term rates. short-term rates are set by if fed. they'll go up june maybe september. long-term rates are set in germany, europe, tokyo. there's so much demand for u.s. assets. we have higher rates, stronger

growth potential currency depreciation. we're not going to see long-term rates go up until the rest of the world picks up. >> so brad where would you be investing at the moment? what do you think is the best trade heading further into february? >> i think europe continues to look interesting. there's an opportunity tactically if greece starts to back down if we can get a deal there we should see a pop. i think there are opportunities in energy. there's a sector beaten down. i don't expect prices to continue going down forever although i do expect them to be capped lower than people think but there's an opportunity for larger companies to rationalize to take advantage of this situation. >> energy, worst performing sector in 2014 and already this year despite the rally we saw yesterday it's still the second worst performing sector in 2015. so valuation of course an act of discussion around that. chief investment officer who sees opportunity in energy.

thank you for bringing your market perspective to us. >> keep your e-mails coming through worldwide@cnbc.com. you can find us on twitter at seemacnbc. coming up after the break we'll be talking about the company's latest results. we'll see you in a couple of moments.

danske bank had been trading higher a bit earlier and now moving a half or percent or so after a loss during the fourth quarter. they also announced the dividend hike and share buy back program. let's talk more about the danske bank group. he is a chief financial officer and he joins us. good morning. talk to me a little bit about what you have announced. because i'm looking at a profit but it's almost still half of what the profit was in 2013. >> yes. our profit is down compared with 2013 but that's due to a write down of our good will. our profit is substantially up more than 80% so actually the

12.9 billion is actually substantial improvement compared with last year. so we have taken that into regard and the precision of the bank. we're pleased with the results for 2014. >> you are announcing though that you're looking to close further branches. something that you started on here awhile back. you're phasing out personal banking services in astonia, and lith lithuania. how many jobs will be be slicing as well? >> we will overtime wind down our personal business in the baltics. that will also include some lay offs going forward but it will be a gradual reduction overtime. so it's not going to have a material impact of the banks overall operations but we're going to be focussing on our

business customers. >> and denmark has been making global headlines not just because of its rekren interest rate cut but it's surprise decision to suspend sales of its government debt. how is that impacting your bank? >> the recent cut in interest rates is of course having an impact. we do not expect it to last long-term but we understand that the danish government and central bank is trying to defend that and we support that. of course the negative interest rates means especially that we need to have a dialogue especially with our really large group of large customers, institutional customers, and it's of course impacting our deposit margins but that's something we can deal with. >> how big of a market impact do you see if the danish central bank does decide to stop supporting that currency peg? >> that is not a scenario we are

expecting. we expect the danish central bank to defend the danish coin and peg to the euro. >> do you anticipate that capital flows would continue to head into denmark as we saw initially after the snb's move and quantitative easing move as well given the latest moves on suspending the issuance of debt? >> we can see a large movement of flows into denmark and part of that is us moving through danske bank but otherwise i cannot comment on the effects more specifically. >> how long do you think that the negative interest rates are going to remain in denmark? >> we don know for sure. and it's difficult to asset. you should in a way ask the central bank about that. but of course we are prepared for it.

for quite some while but longer term we do not expect it to be a situation that will last longer but it can easily last for some month or through the end of the year. >> thank you very much. come visit with us here. cfo of danske bank. >> tell me what you just said. >> i said come visit with us. >> he said that he expects the central bank to continue to support that currency peg given what the snb did in january. the question is will other central banks do the same. or say you know what -- it's going to get too expensive if the euro continues to weaken. we'll continue that discussion but take a look at u.s. futures after the late day rally on wall street. the dow indicating a higher move by around 29 points. s&p up 5.

nasdaq up 6 in premarket trade.

>> welcome to worldwide exchange. >> hello everyone. these are your headlines from around the world. >> the price of crude continuing to climb. price of crude holding above $50 barrel as us. futures indicate a higher open. >> a new phase for bp. the oil giant slashing spending

after a significant charge in the fourth quarter due to the slump in the oil price. bob dudley telling cnbc it makes sense. >> we know the costs are going to rebase themselves so it's good business to defer now some decisions. >> greek bond yields fall sharply after the country's finance minister appears to backtrack on demands that they write off debt instead proposing a bond swap. >> and fuelling the economy. apple announces a $2 billion investment plan after it's larger than expected bond issue answer. issuance. >> you're watching worldwide exchange. bringing you business news from around the globe. >> if you're just tuning many thanks for joining us on worldwide exchange. it was a rally on wall street yesterday. sending stocks higher across the board.

part of the rally traders say had to do with a rebound in oil which by the way is now up about 11% over the past two days. some other investors say it has to to with greece hopes of an agreement on greek debt negotiations is helping lift sentiment across the board. if you take a look at futures they are higher across the board. the dow indicating a higher move around 16 points. the s&p 500 also higher in premarket trade. oil a big part of the story. yesterday energy was the best performing sector. we did see oil shares rebound and in today's trade we're looking at wti crude up about 3% in early trade. brent crude the international gauge up about 3% and take a look at the big movers in yesterday's trade. exxon mobil thanks to better than expected earnings gained 2.5%. chevron up about 3.4%. keep in mind energy stocks worst performing sector in 2014. some investors starting to dip in and see value in the energy

trade european markets interestingly enough the best in europe here as well. so definitely providing a boost to european stocks. remember that construction data we got out did come in better than expected so that's another reason we're looking at u.k. stocks higher across the board that's one of the bright spots as well. you have to take a look at the best performing development market so far. today the rally continues up another 1%. but the wildcard in all of this has been greece the negotiations taking place between greek leaders and european policy makers. of course there has been talk about negotiations coming together. that has helped yield come off the lows or come off the highs i should say. take a look at the yield on the greek tenure at 10.2%. keep in mind a couple of days ago this bond was yielding

around 14%. back to you. >> yeah well bp shares they have been trading higher despite the group posting a 4th quarter loss on a replacement cost basis due to write downs in the slump in the price of oil. they also said it will be reducing spending this year to around $20 billion. earlier steve spoke to the ceo and asked him why the oil price wouldn't rebound to $100? >> it's going to just take time. it could be a long time. there is excess supply. u.s. production is actually still growing. and chinese demand of course there's great growth in china but not as high as it was. we have stock levels filling up all over the world. it won't be long until we see i think people putting them in ships and that takes a long time to work it's way off. >> the price of oil has rallied, oh about $6 in the last three sessions. do you think that's a balance we need

-- or we need to see the further shake out first? >> i don't know. some of this tension is related to uncertainty in iraq and concern about iraqi production. i'm not worried about iraqi production from that. you could have geo political events that could move it but fundamentally that extra marginal barrel of supply drives the price down and i think the market is having a hard time. is it 45? is it 55? >> now we have been asking you do you think the price of oil has seen a bottom? we have been seeing a rebound in oil up about 11% over the past few days. here's a couple of your tweets. a key price point for oil will be at $45 barrel. so that's a little bit lower than where we are right now. around $51. so still some out there that say maybe the oil sell off is not over. >> definitely. listen, keep your tweets coming through. you can find us at cnbcwx and at seemacnbc. we're all on there. you can also find us on good old

fashioned e-mail. worldwide@cnbc.com. whose bottom? no, not until it reaches $20 per barrel in a year's time. he's going to 20. >> what's interesting is we did see a u.s. in oil despite disappointing consumer spending lowest since 2008 and weak manufacturing data. despite those factors oil still rebounded. >> what goes down has to come up. >> david says good morning to you both. good morning, david. in my view the oil price will rise again naturally because of the continuing falling rig count. very good point. the rig count is going down which is doing the job that opec wonlt and stock piling at these lower prices. i see no reason why brent won't be back up to $100 before christmas. >> and the current rally will be short lived. you should study the bear market in oil from the mid 80s to 2002. for people so naive to think a

bottom is in has a big awakening. >> keep your e-mails coming through. keep your tweets coming through as well. we'll do a study group then tonight. >> over drinks maybe. >> yeah. >> the oil market between what was it? 2002 and can i say -- from the 1980s to 2002. well our next guest says that 2014 was the year of the large cap but that trend is set to reverse this year with small and medium caps offering the best returns. dan is the director of technical research at janning capital markets. good to see you. why do you think this is the year where some of the smaller companies out perform the big ones? >> well i mean you had a tremendous shakeout in 2014 and this all occurred really underneath the surface. large capper formans performance was

very robust. the s&p was up 13 peculiar last year and coming off a year where it was up 30%. underneath the surface it wasn't all that great. small and mid cap stocks struggled for most of the year and toward summer and moving in toward late autumn they had quite a bit of a shake out with russell declining in excess 11 12%. what happened was this caused a lot of frustration with money managers and hedge funds, the pms that deal in that small and mid cap space and there was quite a shake out there. >> and we see that this year on the backs of a stronger collar. it's sort of hurting the multinationals and the mega caps and smaller and mid cap stocks that are really domestic here in the u.s. have started to come to life again from some decent

values. it's a relative strength trade. we take a top down approach to the markets. so if you have market declines sure, most things are going to come down on days when the markets rally. sure small, mid and large caps will participate but from a relative perspective, where we want to position we're starting to see a lot of good trends in the small midcaps and most especially at this point because they offer a bit morely liquidity for the big hedge funds that need that type of market. we're looking for small midcap out performance this year. >> i want to touch on your perspective around the ball caps. when do we see the russell 2000 get there? because already we're seeing the russell 2000 underperform the major indices and you take a look at the fundamental case the stronger dollar should be helping some of the domestically oriented names housed in the

russell 2000 yet we're not seeing a rally or outperformance in the index. when do we actually see that? >> well two things. more recently we have started to see russell and small midcaps out perform. when you look at the relative strength charts they produced a bottom one or two months ago. it's very early in the cycle. i understand your point but from a chart perspective, from a trend perspective, that relative strength, we're actually starting to see them push through. the s&p made all time highs last year at the end of december and the end of the year and the midcap and small cap s&p 600 were all trading below that range. so it's going to take a little time from the russell 2000 to break through the new highs and with the most recent declines that we've had based more on macro forces and geo political forces effecting the u.s.

markets. it could take a couple of weeks or a couple of months. that's something we're watching. we want to see it break out to new highs. we looked at this a number of different ways. what we found was from a small capper speck cap perspective and due to a technology shift in the world small midcaps also have a lot of international exposure these days. a lot more than people think. it's not more than just a domestic strong dollar u. s. sen trick type of -- centric type of play. i think that was an impact -- well, look it can be. and going forward. >> dan, we've got to go dan but thank you very much. >> okay. >> for being with us. director of technical research at janney capital markets. we need to look at some of the other top stories. >> there's a lot of them.

>> did you watch the super bowl. >> i only watched the end of it. it was so late for us. 11:00 p.m. is when it started here. >> but super bowl xlix was a super success for nbc. sunday's game was the most watched tv show in u.s. history with more than 47% of u.s. how oldholds tuning in. people also stuck around to watch katy perry. the halftime show. >> life sized sharks. >> yes but one was completely off beat and was dancing out of s glrks sync with the others. it drew 118 million viewers. they had a record digital audience for the super bowl. the free web stream averaged 800,000 viewers. >> some people were saying maybe it shouldn't have been katy perry that performed. >> why. >> but it was a strategic choice. she has the most twitter followers out of anyone. >> because she was too risque? >> i don't know if she's a big enough star to be the halftime show performance. >> bill writes in and said the

dancing sharks almost brought me to tears as did the losing decision to throw a pass instead of running a little over a meter. >> a last minute victory for the pats. there you go katy perry on the magnificent lion tiger. >> yes, singing on the back of a -- >> i did like lenny kravitz. >> love lenny. yeah. >> next up we're talking more about the super bowl and also apple fuelling the iconomy. apple plans to invest billions of dollars to build out support for iphones, ipads and macs. all the details coming up after this break. oices in retirement. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement.

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welcome back. apple is putting some of its apology yabt pile of cash to work with plans to bring a factory of a former parts supplier back to life. let's hear the details. landon is at cnbc's headquaters with more. hi landon. >> good morning to you. apple is investing $2 billion to convert a failed sapphire glass plant in arizona into a data center. apple teamed up with gt advanced technologies in 2013 to set up the factory to make scratch

resistant screens. they filed with bank runruptcy in october. the data center will be a command post to manage it's other data centers which handle the traffic from itunes icloud and siri. angela may be continuing her makeover of apple's retail business nearly a year after taking over the operations. reports say the last executive from the steve jobs and ron johnson era is leaving the company. the vp of retail real estate is retiring. he's in charge of finding new apple store locations and signing leases. he spear headed new apple stores over the past decade. he has been upgrading stores to focus on china and mobile payments. apple raised $6.5 billion which was bigger than expected. in 2013 apple sold $17 billion

in bond and another 12 billion last april. it's part of the plan to return 130 billion in capital to shareholders. it's a cheaper way to borrow money and pay for dividends and buy backs versus paying taxes by using it's 178 billion in cash. it's mostly outside of the u.s. apple is up more than 1%. back to you. >> this story nearly $180 billion in cash yet apple still tapping the debt market. it's amazing. >> incredible. >> taking advantage of low rates. >> i wonder when they'll start spending. >> well they already will on their share buy back program and dividend as well. let's stick with tech because samsung confirmed it will unveil the galaxy s6 smartphone in barcelona next month. the south korean giant kept the design of the smartphone secret however rumors are that it will be curved due to the company's invitation release this morning. curved screens.

they received a mixed response to far. >> how do you put that in your pocket? >> i mean -- >> unless you have a curvy bum. >> i don't think it's going to be curved to a point where you can't slip it into your pocket. it's slightly curved to fit your ear. will it be a game change senator will this be enough to revive market share for samsung which is dealing with heightened competition from apple. >> i predict a lot of the new phones that are going to be released will still look like the iphone 6 and i was looking at other leaks supposedly that they're speculating that the home button will be raised from the surface. the headphone jack at the bottom of the phone. volume buttons just like the iphone 6 and metal but with an operating system that's android. >> these are all great features. the question is is it enough to enhance the user experience or are they just flashy gimmicks. >> your device is that the latest? >> it is.

i make sure i always have the latest and greatest. >> check you out. >> exactly. >> come and help me upgrade my operating system one. >> any time. >> let's get back to business. talk more about the headlines this morning. bp shares trading higher as it slashes spending after taking a significant loss in the fourth quarter due to the slump in oil. crude continues to decline with wti holding above $50 barrel and greek bond yields falling. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

brent crude up about 3%. lower oil prices have been giving surveillance patriot to u.s. auto makers which report january sales later today will lower gas prices translate into higher auto sales? >> not necessarily but we're noticing that it's impacting the mix of vehicles being sold. we're seeing more suvs more pick up truck which is is not surprising when you have lower gas prices people feel they don't have to look for a small car. they can say i would rather have the utility and therefore i want the suv. when we see the january sales numbers come out late they are morning we'll see strong suv and struck sales, particularly for the big 3. overall the pace of sales is expected to come in at about 16.4 and 16.5 million. again that's the pace. don't read a lot into that

because january is the second slowest month of the year in terms of the pace of auto sales. nobody is going to lose a lot of sleep in terms of where the actual auto sales come in for the month. we have yet to see a slow down in terms of consumer spending and consumer confidence so we're looking for relatively strong numbers later on this morning. >> well the question is if this is sustainable. aaa said average gas prices across the country increased for the last seven days in a rowand will likely keep moving upward. the question is if auto sales can continue to move up. >> yeah they're not to the point where it's going to impact it. what -- historically if you go back and you look at what happens with gas prices it only really starts to impact the overall sales when it hits a dramatically new high. if we were to see gas prices skyrocket over the next several months and move up to a national

average of 450, 475, then you would see an impact. but if it goes back up let's say a national average of 201, something like that 202, even 240, 250, most in the industry are not expecting much of an impact at much. >> phil thank you very much. joining us there from chicago. my old stomping ground. european markets at the moment slightly higher across the board. all trading a little bit up. we've got some bigger pieces of data coming through this week which could have an impact toward the end of the week. earnings season is still upon us. that's having an impact too. but as you can see quite a bit of green on our screens today. f ftse up by over 2%. >> greek debt negotiations plus the rebound in oil is helping equities move higher. u.s. futures indicating a higher open. nasdaq up 16 points. that does it for us on today's

show. >> see you on thursday. >> yes. >> see you thursday. bye.

oil prices up about 11% over the last two days. staples and office depot are in advanced talks to merge and let it two. fans of the disney hit frozen are cheering today on news of a 7 minute short focused on anna elsa and olaf. it's tuesday, february 3rd 2015. i don't know. squawk box begins right now. ♪

>> live from the most powerful city in the world, new york, this is squawk box. >> good morning everybody. welcome to squawk box here on cnbc. today's big global market story has to be oil. among the catalyst for the increase in prices. by the way we're talking about oil above $50 which is a big deal if you have been watching the he declines we've seen in the last couple of months but we're still talking about wti sitting at $50.98. it's up $1.41 from yesterday. analysts reporting to energy giants cutting capital expenditures as part of the reason for the recent gains and reducing rig count as well. the latest news comes from bp. the british oil giant announcing it would slash it's capital expenditure by 13% to $20 billion. we'll hear more from the company's ceo in a minute but this is what we heard from all the big oil companies and the little oil companies too. >> yeah on the way down i heard that.