begins right now. ♪ ♪ >> this makes me happy! i love this song. welcome. i'm becky along with steve who is in for joe today. huge night at the grammys for sam smith. the 22-year-old brit was nominated for six awards and he won four of them. including three major ones. best new artist new song and new record of the year. if you went to sleep early you missed interesting pairings and performing including a collaboration by rihanna, kanye west and paul mccartney. we'll bring you the highlights a later this hour. mcdonalds will report january sales this morning. expected to decline by 1.1%. sales rising by 3/10 of a

percent. the west coast ports are due to reopen today. part of a lengthy labor dispute between shippers and dock workers union. if there's a shut down, the national retail federation warns the u.s. economy could face a hit of $2 billion a day. i asked jack lew about that in our interview. president obama will meet with angela merkel today. they're expected to discuss issues like russia ukraine, international trade, and counter terrorism efforts. >> china's imports dropping 20% from a year earlier. the steepest decrease since may of 2009. exports down more than 3%. in europe the story is all about greece this morning. the country's new african-americanprime minister -- he promised to reverse some of the reforms imposed by greece by the international lenders. setting up another standoff with the u.n. back at home glean prices are

riseing once again. the coverage cost of a gallon of regular jumping 13 cents in the past two weeks to $2.20 and she warns the trend likely to continue. prices still $1.10 below the mark at this time a year ago. >> i think the tensions with greece are particularly notable. they actually went so far to demand refer rations from nazi germany. things are getting uglier. nobody looks like they're backing down just yet. >> to me, i mean we talk secretary lew about this and i guess we can talk about the whole interview now. but he's basic message was that everybody should be cool off and stop the rhetoric out there. >> that's what he has to say. >> i think he's right. they're digging deeper holes for themselves as they stake out their sides. >> i would say the rhetoric is such a level. but the ecb saying basically you have until tomorrow and we're

not going extend anymore loans and the greeks saying we want reparations from world war ii from nazi germany. >> i don't know the news source but green span is for greece to leave the yoends eurozone. >> wow. >> and the question becomes what happens to spain. how the eurozone governments deal with this issue of austerity. greece is not the only one. >> i'm game for the break of the euro at this point. i am. i think -- >> i think it's a miss. >> i think there's a lot of unknowns. >> as soon as you start saying that the big chunk was snow started falling from the sky. >> that's an answer from god. >> exactly. >> why don't we check on the markets. with the concerns and everything

going around with the ramping up of the rhetoric you can see that the futures are a little bit weaker this point. >> in europe the biggest hit coming to greek. the tax is down by 1.3%. the ftse down by a half% and the cac 40 down. overnight in asia we saw the shanghai market ended up by 6/10. oil prices we've been watching so closely. things picked up. they slowed down. wti up. gas prices at the pump up 20

cents. take a look what's been happening in the bond market. 109-year note is yielding 1.9%. and currencies at the point it looks like the dollar is down against the euro and the yen. also keeping an eye on what has been happening in the gold markets. it looks like gold is up by about $6. the world leaders heading to istanbul. last night in washington i spoke to jack lew before he left before the gathering. here is what he had to say about that great jobs report last week and what it means for the u.s. economy. watch carefully. this is as feisty a our treasury secretary gets. >> i think that it is time to say that we turn the corner and we're in an economy that is growing. it has sustainable growth. its growth is showing up in not just businesses but in jobs and

we're now seeing wages go up a bit. i think this is a trend that needs to continue. we need to make sure we do what we can to continue the growth. and i think that, you know we're getting some benefit now from lower oil prices in terms of the economy to gate boost on top of that. i'm feeling confidence we're looking at a good period ahead. >> what do you say to the critics that the administration has a series of job-killing policies. how do you respond? >> the facts have proven them wrong. we have an economy. we're growing jobs at the record rate. we're seeing strong growth and come back in manufacturing. we're seeing construction come back and seen our deficit go away down at the time when we have 10 million people who are finding the security and having health care coverage they didn't have before. i think the critic bhos said all of these things were going to hurt the economy have been proven wrong. >> what do you say average

america who have not felt the impact of better gdp growth through their paychecks and other bays. >> i think that's been a very big issue. if you look over the last few months. the fact -- over the last year we've seen average wages going up. we need more wage growth than that for people to feel it. >> about 28% captainital gains tax. it seems like there's a creep going on toward -- >> well i'll remind you 28% capital gains rate was a rate was effect in president reagan was in office and the economy did fine at that time at that rate. we are top rate for individuals is where it was when president clinton was in office and we had the longest period of uninterrupted growth in american history. i think we're not doing things we haven't tested.

we've had an experiment in the country. we had big tax cuts for wealthy people and the economy didn't do well. we're going back to policies that were in place when the economy was doing quite well. >> obviously there are those that would dispute that notion. this is the equivalent of you know how a guy scores a touchdown? he did a million jobs over three months. that was his victory dance. >> that was his victory dance. >> okay. >> what does he do when he loses? >> i think it's the same. that was him doing the chicken dance or whatever. the crickets were wrong. the critics were wrong and we turned a corner. we made million jobs over three months. >> why don't we talk about more about what jack lew had to say and dug deeper into friday's

blowout jobs number. joinings us now is qma and chief economic correspondent at politico and cnbc kribltcontributor. in erm it is of higher rates. what do you think? >> i think that the economy is doing quite well. i think even blow the surface that the growth and wages might be higher than the official numbers suggest. there's aed had wind by baby boomers retiring and beplaced. i think things are going well and maybe a little bit better than the official data suggested. >> we're going back to rates where the economy did very well. and the idea the tax cuts that came in lead to worse economic times. >> i think that's probably wrong. it's impossible we're going to go back toot higher rates with the current congress. it doesn't make much sense to talk about it.

i think that we can possibly withstand some. >> i want to talk about friday's jobs number. it changes the equation about what we talk about in terms of what to expect from the fed next. a lot of people say it's going to be tough for the fed not to raise rates given the great numbers. but larry somers has a piece in the final times that lays out four times why they shouldn't do it quickly. >> it's pretty compelling given where the inflation numbers are which is not very high. we did see the .5% increase in a month. which is pretty good not great. we've seen it pop up-and-down repeatedly month to month. i think they'll wait and see whether the numbers are sustained before they make a call on rates. i don't think there's a lot of pressure on them. the jack lew -- interview was

interesting. >> it's about a million jobs over three months. >> it's at lot of jobs. but you mentioned bill clil ton. clinton lowered the rate from the 28%. he want to put it back. he's picking and choosing where he wants to put it. and he's right. they're not going to get the tax rates they want. but the idea they're going back to the clinton tilestyle of policy. they're moving away from that. >> the implications for hillary clinton. >> yeah. i think they're significant. >> i think they're significant. what way? >> they will be if the wage increases are sustained. right now there's a new york times piece on sunday shows about pressure on hillary clinton to come up with an economic plan to address economic inequality.

people feeling better on the economy andless pressure to come up with policy sies he's running foreign policy. she can run on basic less progressive economic. if you look at the wage it is makes her campaign look easier. what do we do about economic? >> i think brought up the right point. this is your study you come up with. you think wage growth is better than expected. i know, you talked about it. in case anybody wasn't listening. >> there's a puzzle. >> it's a puzzle. we look at growth in the fourth quarter is 4.3%. if you look at the consumer confidence ratings they're up. gasoline prices play a role. is it possible there's something about the data we're missing. it turns out if you look -- make some assumptions. there's about 250,000 baby

boomers retiring and claiming social security every month. it's 500,000 replacing them. make some assumption about how much baby boomers are making. come up with six cents an hour. it's big enough to perhaps even double the wage growth the democracy worker was starting or retiring. it was experiencing. so it's a head wind that is always there. but the number of new claimants in social security has gone up by 50% since 2006. now we're starting to get good job growth. that means we have more people coming in. we have more people going out. and the dynamic is enough to maybe skew down the number for what a typical worker is experiencing. if that's true it means the things are maybe a little bit better than the official statistics. >> steve i'm sorry. >> i think there's a very long way to go to change american's

opinions about obama economics. and thing you've had strong job growth but amid very very negative sentiments about the economy and, you know, ed was talking about wage growth. what you said makes a lot of sense. i think there's not been any leverage at all to get wages that keep pace with inflation. so i'm wondering, i mean m a lot can change in two months let alone two years. it's going to take a lot for hillary clinton to say i'm running on the economic platform of president obama. >> i think that's true. opinions are starting to tip positive. so i think you're right to address some of the systemic things. >> more so she may have to disassociate herself.

>> i'm not sure she will. i factual to lou about this. the whole transcript is online. the notion of middle class economics. i don't know that is resonating in the mind of the american public in a way that says i'm on board with middle class economics. sign me up. >> that's probably true. the record and the economic feelings that people have and the jobs numbers and the wage numbers and the attitudes might be in her -- >> he's going after the minimum wage. she's going support the minimum wage. invest in infrastructure. all the normal things. closing corporate tax loopholes. then says she wants to provide incentives where she's think about providing incentives to corporations to profit sharings with employees. >> i don't know how she would go about that. >> and changing labor laws to give them more clktive bargaining power. >> is that considered aggress ienough? >> i think that's a start.

she had a five-page memo. i imagine that came out of that collective bargaining rights to do it for more profit sharing. there's a lot of push back on that. that. thing is going to be a rans -- trns transition year. >> by the way, much of the inequality is driven by the fed's own policy. they were trying to make sure they were saving sbiert economy. as a result the people at the top benefit the most. >> you're not fighting back? >> i think we've been through this. we disagree. >> the people at the top benefitted the most. >> they did.

if you were an owner of properties anywhere around the world. what abouted fixed income. >> if you're on a fixed income and a senior you're getting hosed. everybody 55 and older are the ones who are the saviors. and they're the wealthy as well as they are the poor. i know, it's part of the whole thing right now that the fed and rich people. i think there's a big argument. >> i know they were trying to save -- i think they probably did. i think in the process, you end up helping those who have the most. their assets inflate the most. >> i think it was a middle position. >> you're right. the older people have the assets. the reason interest rates are as low as they are is the fed who

play ascii role. part is because there's a great deal of cash around the world owned by older people that are seeking the safe secure from interest rates. you read about the fact the idea there's too much debt in the world. yes, but part -- if i want to buy a bond. someone else has to go into debt. why are interest rates so low? what would interest rates be? >> i'm not saying the feds shouldn't have done it. but i think people -- and i say this to somebody that benefitted over the last several years. >> that's one of my point. if you think about the benefit two average mortgage holder of lower rates. how do you count that? >> in terms of the benefit or the middle class. for a long time the people who needed it most couldn't qualify. >> couldn't qualify. that's not the vast majority. there's a percentage of mortgage holders that couldn't qualify.

there's a big chunk that who had existing mortgages that didn't qualify. >> miami that cap. i did that exact thing. i'm smack in the middle. >> we have to go. andrew forced me to bring it up. it's a running argument. and my jury is out. i would like to see an academic study that totals up all this. ann is in my ear telling me to move on. i need to know his pos on beyoncè versus beck. >> beck is the best. my facebook feed lit up with -- everybody talking about how great her performance was. said she stole the show. >> you haven't answered the question. >> it was before the grammys. >> before the grammys. >> don't have jack lou -- >> jerry versus bob, of course.

>> thank you very much for coming in. when we come back this morning for at least the second time this winter a poeshly historic storm is heading for new england. we have a live report from maine next. first, as we head to a break. take a look at this date in history. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

if you are up this early you might not have seen this morning. it's one of the more notable pairing last night. tony bennett teaming up with lady gaga for a renner dedication of "dancing cheek to cheek." that is a weird pairing. the weather is a major story this morning. keith carson joins us from portland, maine. here we go again. >> yeah. it's unbelievable even for me. piling on the snow one after another. the story with the storm is how cold it is. the nice northeast wind in my face here. portland, obviously, you don't think of maine super compact. they're having the same problems

in boston. the giant snowbacks out here. and there is nowhere to put the snow. they have to put it in dump tucks and drive it out of the city. they dump it into a snow farm which is a fancy way of saying a field they dump a bunch of snow. over 68 inches of snow so far this season in portland which is the seasonal average. we're only at the beginning of february. this storm dropped a couple of inches of snow. it's been snowing consistently for awhile. it's not coming down that hard. we have the snow down here left over. it's the light fluffy stuff. easy enough to move but when you combine it with how cold it is out here i think it is starting to get to people a little bit. i was in boston for the bliss around a couple of weeks ago. the tone in boston is different than maine. there's a comradery people here in maine. if you're going to live up here you should be okay with the snow and cold until it at least april or sometimes may as they call it mud season up here across

southern maine. but, guys you know, as you know we're based in atlanta. the weather channel is. my wife texted me yesterday when i was standing out in there and she said where the screens for the window. i want to open it up and get air. i responded in a short message. i don't like you anymore. we're out here standing here and it's 6 below. she's down there and it's 58 degree s -- 65 degrees! >> i can feel your pain with that. i understand that. i could rub it in and say my coffee is not quite as warm this morning as it usually is. that would be painful. >> they didn't fix that in the new studio? i noticed i haven't been seeing you as much. are we only old studio friend? >> no! >> you're not wearing any plaid today. >> we have to get you in the new studio someday. >> we'll make it happen. i can't do the normal fashion

thing for you today. it's about layers. i have a plaid medium sized shirt underneath. i'm halfway, at least. >> okay. we appreciate that. putting in the effort. see you soon. we have some passing to tell you about this morning. former goldman sachs senior partner john whitehead died at the age of 92. he left after 38 years to become deputy secretary of state under president reagan. he was a board member of the new york stock exchange.

another well-known name in the world of corporate america also passed away over the weekend bob silver passing away at the age of 58. he's best known as right hand man of trial lawyer. he used to call him the brain. he was behind mr. boy's biggest cases. microsoft, for example, proposition 8, bush versus gore. all of those cases and, of course, he will be missed as well. those are two sad stories. >> he was only 58. >> he was only 58. >> yeah. >> you know both of them? >> i knew both personally. and they were good people. coming up this morning top stories including a $30 billion evaluation of the firm behind so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction

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. ♪ ♪ welcome back. we're in the chairs talking about stories that caught our eye this morning. and this one, by the way, if you were watching us on a smart tv you should pay attention to this. i don't know if you saw this over the weekend. a crazy story. the idea that samsung, which has tvs smart tvs that often have cameras in them. we all have tvs with cameras. some have computers with cameras. a look for face time and stuff. in the actual language they have about privacy it says -- and, by the way, you can talk to some of these tvs now. it says don't say -- effectively don't say anything in front of the tv -- >> what? >> don't say anything in front of the tv you wouldn't -- you

know. >> in other words we might be spying on you. >> effectively. >> i don't understand. >> effectively. their privacy statement effectively says because the way the new tvs worked you could talk to them to turn them on. so it's not just pressing a button. and effectively they're saying they won't be held liable. >> and we have known that hackers can get into computer systems. and this era of there's a camera looking a at you. >> it's possible it might accidentally go on. you could be talking about whatever. >> that's insane. woo would buy a television like that? >> is it a possibility that somebody is spying or you accidentally left it on and -- >> hackers can get into it. >> and you might not realize it. >> and who knows. >> it's not like samsung is

planning on watching you. they can understand a scenario where someone might be able to hack in. to my i don't need that tv in my house. that's creepy. >> on my computer if the camera goes on there's a light that goes on. i was thinking about it. if you were on your phone and weren't looking down. >> it happens. we have dealt with this for years. how many times do you butt dial somebody and you're having the conversation and i dialled somebody this morning. i tried to shut off quickly. as many times a as you do that. they'll hear the conversation. we've gotten used to that. >> think about where the tv is in most people homes. they have one in the bedroom. they do and it's often looking at the bed. just saying. >> we do not have a television in our bedroom. >> good for you! >> i caved and gave in. >> that's very good. people say you should not have one. >> i will say we never watch it. it's in there and we never watch

it. you're probablily on tv all the time. you don't know where you are. i am just saying. >> everywhere you are on the streets just about anywhere. i think if i know that tv is watching me. >> a camera too far. >> right. this is a new york story. if you don't know we have one of the worst basketball teams. i think in the history of mankind. >> only ten wins this year. 10-she or something like that. it's been this way year after year. so some new york fan -- in a new yorky kind of way wrote a nasty note to james dolan. which is not what i came here to talk about. the note that james dolan wrote back to the 72-year-old fan. i think we have a little excerpt of it. if you could call it up.

the son of the person who received the note made this public and it's not a very nice note. and for a guy who should be apologizing to all of new york instead he's writing nasty notes back to me as an economics report this is a guy who has -- the idea he has no competition. they still are buying tickets to the lousy team. they're selling out. he has the nerve -- and it's a guy i group watching the great knicks team. i saw willis reed. my parents would take me to championship teams. all of that great history of new york is gone with this team. >> there's a great article over the weekend. a sad story about phil jackson. it was a sad interview with how sad he was about his try angle offense was not working the way he came here $60 million to come here and it hasn't worked yet. he has a couple of -- basically

article said two or three years from now he thinks he has it. >> i don't know if it's dolan's fault. it's hard to see the only constant. he's been through the coach after coach. he's been through one team after another. the only constant is dolan's ownership. >> i agree he shouldn't be writing nasty letters. i would like that see what the guy originally wrote. >> it wasn't much. >> sometimes i would like to write a nasty letter. >> but you don't. that's the lesson. and the guy is -- >> guy's note was harmless. i want to tell you quickly about a dispute in the hamptons that has been simmering for a long time. when everybody comes for the summer, all kinds of tensions build up between the people there all year and the summer folk. most of the summer folk -- a lot who come in come with noisy airplanes, noisy helicopters and it is driving the long-term

residents there crazy. at first i thought they're just complaining. i looked at what has been going on. they're talking about 25,000 annual takeoffs and landings at the nearby east hampton down airplane. the majority happen between may and september. part of what the town officials are talking about after receiving 25,000 complaints about airport-related noise is to change to a year-around 11 p.m. to 7:00 a.m. curfew. it doesn't seem like a big deal. >> think about it. it's a terrible inconvenience. >> in the car. >> it's a helicopter ride here. >> i think the helicopters -- >> right. robert franc did the story. i think that's the biggest part of the problem. what they want is to say that no helicopters operations allowed from noon thursday to noon wednesday. which is the only time anybody

would be helicopters in. they're going after the helicopter people. >> is it more about the helicopters or the planes. >> i think the helicopters are noisy. >> i know the guy on the board. it's a helicopter story and they're furious. >> you take the helicopter all the time. >> no i don't. >> i have never been on a ride sharing helicopter or any other. >> once in my life i've been on a helicopter. it was scary to me. not to the hamptons. >> highlights from last night's grammy's awards. and we'll talk to the market force behind the winners including sam smith.

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welcome back in the headline the on this monday morning. reportedly valued at pod million. that's the firm that runs -- nissan is raising the profit forecast. this comes after the automakers's latest results beat the street helped by strong sales from new products. it you have been watching the futures this morning we have seen red arrows so far. right now things have gotten a little worse this morning. dow down by about 85 points. s&p down by 10. the nasdaq down by 21. part of this is coming just as the rhetoric ratchets up even higher when it comes to what is happening to greek and the ecb. the greece and the ecb, a lot of attentions we hoped would be cleared up by now. none of that has happened yet. things have gotten worse. the music's industry biggest

stars came together to honor the best last night. one star wound up shining a little bit brighter than the rest. we have a wrap up of the grammys. >> they called his name before the show. >> sam smith. and even more once it started. >> sam smith! >> the 22-year-old brit won four of the six grammy awards he was nominated for. >> i'm having a really really good night. >> including three major ones best new artist record of the year for the megahit "stay with me". >> i want to thank the man who the record is about. who i've been in love with the last year. thank you so much for breaking my heart! you got me four grammys. >> this is absolutely incredible! it's a dream come true. >> only singer-songwriter beck won album of the year. >> we made this record at my house for the most part. i would like to thank my kids

for letting me keep them awake a little bit extra longer. >> a trio of grammys went to beyoncè including best r&b performance. jay-z for drunk in love and pharrell won three for happy while miranda captured best country album for platinum. ♪ ♪ >> the show featured an array of all-star collaborations spanning musical eras as well as appearance by president obama. >> it's on us. all of us to create a culture where violence isn't tolerated. his message was supported by an abused survivor as well as a powerful ballad by katy perry. a memorable moment during a magical night. >> let's talk about the business of music. the force behind super stars like sam smith who stole the show. among the other media stars

pharrell beyoncè miley cyrus, and countless more. behind the online promotion for the 49 of the 52 weeks. with us now is the founder and ceo. good morning. >> good morning everyone. >> so help us try to understand the business implications of what happened last night. how much money is it in for sam smith. how many people will buy his album this morning? >> well, i think the best parallel you can look at is what happens with the adel a few years back. her release week when 21 came out she sold about 350,000 copies. 52 weeks later after she had the amazing grammy night she sold just over 750,000 copies. it was the biggest sales week of the entire 21 run. if i was going to guess, i think sam smith will be somewhere along the lines. i think he'll have an incredible week this week. i think a lot of people will say

who won four grammys and, you know, a lot of people will be curious about everything. >> how many people are going to go out and buy the album versus those who are on spotify or apple beats. isn't that how people will get the musics? aren't people not really going buy the album? >> yeah. but i think recently billboard moved to consumption model where buying isn't nearly as important as consuming. and, you know, if you look at the chart it's sales plus streaming. i think you'll see consumption across the board rise. when consumption rises and the industry has sort of figured it out to the point where you did buy physical digital, subscribe to a streaming inging platform and they count. i think the billboard score card and the score card is smart enough to capture all the way people will consume. >> the v neck sweater.

i thought -- do you have an earring or something hip? i thought you were on the edge of the hippest. how is it different how you advertise these albums and normal advertisement. what are the differences here. how are you successful? >> yeah. first of all, i'm sorry to disappoint. second of all, i tell my clients. i get into the music conversations. i'm out of my depth. the truth of the matter is i'm not a music fan. i'm an data and advertising fan. i'm more of a data person right. so you know what is different about what we do is you can go buy a super bowl ad and reach 115 million people. some of the people care. some don't. what we were doing last night and i had a 20-person media team last night. soon someone walked off the stage or walked up to receive an award. we were ready to go. >> at that very moment when they won the award.

tell us what your media team did. >> you know so there's people that are, you know, have clients that are all the nominees and the award would get read and the team goes running to their desk. they are bringing up, you know search campaigns and facebook campaigns and making sure that the messaging is spot on. and that is, you know there's a half buzz. and there's minutes before it starts getting old and it's we have to be live and capturing that. >> so quick. how long can you keep it going? meaning this happened last night. you said it has a short life. will we be talking about these guys a week from now? >> you'll be talking about the winners. for sure. and that is now -- it's a badge of honor they'll wear forever. i think that will help them. i think there's a tremendous tremendous spike last night into this morning that we have to be all over. you know, i look back at beyoncè album that was dropped, if you posted -- she dropped at midnight. if you posted at noon the next

day that felt like old news. if you posted at 8:00 a.m. that day, even that felt old. you look at the biggest pop music events eight hours after it happened you know, if you walk. and said beyoncè has an album. it felt old. we couldn't afford to do it yesterday. >> you have a tattoo right? >> i think there's some things we don't know about. >> something. >> thank you for joining us. a block buster jobs report. could there be a downside? the possible bad news in the good news. that's next.

welcome back to "squawk box." the economy creating more than 300,000 jobs. but we shouldn't be getting excited too yet. good morning. >> good morning. >> you know we had an earlier conversation at the top of the hour where we thought things were great. you say not so much. >> look i say -- which i'm now guilty of it -- i say the way we're paying more attention to jobs reports is counterproductive. it was probably useful 2009 2010, gave us a lot of directionality. but if we create in a jobs optic 200,000 jobs at $15,000 a job, the way in which we have the

conversation is hey, that's great. employment is coming back. if we created different jobs we wouldn't -- these reports don't distinguish between the quality of the jobs. >> are you saying because of the fact we haven't seen average hourly wage growth that people wouldn't have anticipated this is part of it? >> i think it's the nature of the jobs that have been created for the past four years. if we have an entire economic landscape that is based on health care services bartenders, retail work that's seasonal. and that's the bulk of these jobs. and i'm not denigrating the nature of that. if those jobs are entry to something else. walmart and mcdonald's are magnificent job creators but you don't want an economy where that's your career. >> whatly point out and i hadn't thought about this until we talked to a guest in the show earlier on and he thinks part of the reason you're not seeing better growth in those average hourly earnings part of the reason is you're seeing so many baby boomers retire and they're

being replaced by younger people. you have higher wage earnings going out and lower wage earnings coming in. >> show us where those jobs are. show us where 4 million walmart and mcdonald's workers are ten years from now -- i don't think there's wage growth because there's no reason for it. >> hold on. because the alternative is that they don't have jobs. >> no no -- >> let me just make a point. wip is a person who worked a couple years at mcdonald's or walmart is certainly more qualified for the next level of job than he or she might be had that person spent those past two years on the couch at home. >> absolutely. >> and certainly, i mean it's not the best thing, but obviously you could make a tradeoff between education and working at walmart. maybe the education is a better way to advance your prospects. but there's certainly a better way to go about it than not working at all. >> i totally agree. that's why i said i'm not denigrating those jobs or the

need for that as part of a conveyor belt of an economy. but we don't talk about that when we talk about jobs report. we're talking about it now because i shifted the conversation to talk about it. but it's not what we do statistically, right? we look at jobs created and that's a plus. but if you're a person living and this is not where it's a right/left thing. if your transfer payments amount to more than any job in your horizon you think you can get, you're probably going to make some rational but unpleasant decision to do so. the thing that's interesting around job creation is something that howard shultz is doing, right? in terms of if you're going to be in that level, there's maybe a corporate incentive to help the entry level become a non-entry level by paying for college education. >> and the question is whether we can make that conveyor belt work. thanks for coming in this morning. appreciate it. when we come back jack lew on greece's possible exit from the eurozone. a cnbc exclusive. "squawk box" will be right back. anything? no. you? no. aflac! what are you guys looking for?

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jack lew meeting with finance ministers this week. but he talks to cnbc first. his take on the possibility of greece abandoning the euro and russia's sanctions. the debate over vaccinations heating up as the measles outbreak in the united states expands. should the vaccine be free? should it be mandatory? and the quest to make cars lighter. we're going to show you the world's first 3d printed car using carbon infused plastic. second hour of "squawk box" begins right now. live from the beating heart of business, new york city, this

is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin with becky quick and steve leisman. pharrell taking home the grammy for his song "happy." we've got a little more grammy buzz coming up later this morning. in our headlines this morning, here's something we haven't seen in about nine months. higher gasoline prices. the latest lundberg survey shows it was up 13 cents over the last two weeks. average of $2.20 a gallon. imports tumbled almost 20% in january from a year ago in china. they were looking for a drop but maybe something more like 2.5%. and greek prime minister is vowing to dismantle the austerity program and is ruling out any abandonment of the

bailout program. he would also like to see reparations made for his country from world war ii. >> that's helpful stuff right there. i sat down with u.s. treasury secretary jack lew before he left for this week's g20 meeting in istanbul. i asked him about concern over greece's potential exit. here's what he had to say. >> i think what has to happen is there needs to be a conversation where greece and all of the parties it's engaged with looks for practical, pragmatic paths forward which is in everybody's interest. i certainly hope that happens quickly. i think that greece has made a lot of sacrifices and changes in its own economy over the last few years. there is a stronger foundation than there was and they need to build on that strong foundation to come up with mutually agreeable terms going forward. >> do you have any sympathy for

easing the austerity rules? >> i think greece is going to need to work through with its partners in europe and others that it has deep financial relations with. terms that are acceptable to everybody. i think that's possible. i think that the heat has to come down a little bit in the conversation. and i think that the sooner that happens, the better. >> violence seems to be escalating in ukraine. is there a sense the current level of sanctions are not sufficient? >> actually, i think the sanctions are working in the sense they had a tremendous impact on the russian economy. the russian economy is not good. some of it is the oil price coming down. some of it is the sanctions have really weakened the core of russia's economy. i think that what we haven't seen is the government of russia, president putin respond in the way that would be the reasonable way to respond which is to work through a diplomatic

resolution and see these sanctions rolled back. i hope he chooses to take that course. obviously the diplomatic course right now is one that's designed to drive in that direction. we're prepared as i've said many times. if we need to to take the sanctions and ratchet them either up or down. our preference would be to ratchet them down because that would be the best thing for the economy in europe and the best thing for stability. but that would require russia living by its commitments and pulling back in honoring sovereignty of ukraine. >> obviously a full plate of international issues for the treasury secretary as he heads to istanbul for the g20 meeting. are russia, greece, the strong dollar. the industrials looking like they will start the new trading week in the red. here to tell us what will drive

the action, strategist research partners strategist. i want to talk about relative to the dollar and the issues out there. there's a front page story in the journal this morning of banks getting hit because of it. every major multinational is talking about the impacts of the stronger dollar on their earnings. how big a negative is it for stocks? >> it's a head wind but we found personally that a stronger relationship is actually between the dollar and multiples. actually, there's about 70% correlation between earnings multiples and the dollar index. so what you lose on earnings i tend to think you gain in terms of pe. just to the extent you have -- >> let's back up. basically when the dollar rises the mull pl of the stock market. so earnings will come down. why is that? >> i think it's because of fund

floats. >> more money comes into the market. >> wealthy people all around the world -- >> let me ask this question of david. what's your impact on the take of the dollar? is it a reason to sell u.s. stocks because of the earnings impact on the translation of the dollar? >> i think you want to look at it on the earnings and the pe separately. we know because of the size of the foreign operations, it's a net negative of earnings. and it weighs on commodity prices as we've seen. the pe multiple. well, this is debatable. if you go back in time the mid-80s you have strong dollar strong pe expansion. the pe at the end of 1984 nine and a half times. right now, 17.5 times. we're looking at a moment where multiples are way above history, but interest rates are well below history. we're trying to see if a strong dollar can keep rates low. >> if interest rates come up does that have to correct? >> there is a lot dependent on

interest rates staying not this low but far below historical norms. beneath about 3% on the 10-year treasury. i don't think health stocks are dependent on this but most of the rest of the market is. >> so if rates rise look out below and steer clear of other areas. >> if rates rise quickly, i think it will cause the market to pull back. we're going to -- we think the fed is going to hike this year. and if rates react, long-term yields react to that we probably have more upside. >> is there a limited ability of u.s. rates to rise given what's happening overseas and in europe? >> yes. i would say, though steve, the consensus now is largely gotten to the point where people believe that rates can't possibly rise because you have german five-year yields that are negative and german ten-year yields that are -- some people say it's not even possible. i have a different view. we have a different view. switch to say i think at the start of the year there was a general consensus the rest of the world would drag the u.s.

down. i think last friday's payroll employment numbers suggest that the u.s. is doing just fine. and all of the rest of the stimulus you're seeing around the world, maybe the rest of the world starts to catch up. i also think there's a sector call here within the market which is a certain sector. i think interest rates will back up. certain sectors, though are very at risk. even if bond yields back up to 230 or something, that's a meaningful trade. >> kind of looks like a safe place. >> this is the second time i've heard this idea. jim paulson was talking about synchronized global growth. that changes the game in a lot of different ways. you think of what happens to commodity price, if that's your call here where europe japan, and the united states are all growing. >> to varying degrees, right? growth in europe might be 1%. right? >> we'll take it. >> we'll take it.

japan too, same idea. you have to remember with oil, it's an enormous benefit. it hurts very small relatively small global economies. it's an enormous help to some of the largest economies. not the least of which would be china, india. >> you never know from watching the dow. this has driven me nuts. the idea that the correlation -- and we had a note that went around here internally used to be .03 between the s&p. and it got up to .7. did it make sense to you? does it make sense to sell stocks when oil prices fall? >> the short answer is yes. >> it does? >> yes. >> okay. >> we've seen how it smashes the earnings of the s&p. typically the energy sector. you have to watch to see the break points. you know there's a sweet spot on oil. we're beneath that sweet spot right now. on the notion of oil in a

barometer of what's going on in the world economy, synchronized growth, there's moderate growth occurring in relative markets. >> but if what jason is saying is true that it's an enormous benefit to both developed and developing countries, then why wouldn't you buy stocks on lower oil prices? >> i think the fear was that it was -- the average price was $73 a barrel. the average price last year was $93 a barrel. the decline happened so rapidly that people were afraid they were missing something. they were missing a global deflationary force. there was no pulling out. to the extent to which oil prices stabilize, it gives people some maybe hope that you're not in a global deflationary spiral. that this is more supply/demand driven. you have to remember in the emerging markets, everybody is living at a level that commodity prices are a bigger part of the

cpi. two-thirds of their cpi is food. right? i mean so you get declines in commodity prices big increase to real wages. in some ways it benefits emerging markets that are not dependent on commodities themselves like brazil and russia. it's bad for them. but other places, huge positive. >> russia and brazil are in recession and china is slowing down quickly now. it's weakening demand for capital goods. i think you need to stay away from energy industrials given what's happened in the slowdown of the emerging economies. >> you had a year-end call on the s&p of 2051. >> i'm 2150. >> i'd probably be around 2200. you know it's -- with these multiples, it's very difficult. because it's hard to justify 16 17, 18 times earnings. if rates stay this low, it's possible. >> you think the fed's going to

raise this year? only because larry summers has an op-ed today saying they should be going slow. there's no reason to do this. >> we can debate the pace of economic growth, but it's clear the labor market is tightening. we don't think this is going to be a hiked cycle. look for them to hike in june if not september. >> second of all, he's got four points. the fourth one being the global society. if you raise rates right now you're going to get creamed with the dollar. >> the dollar will be a head wind to u.s. growth but growth will continue. it will be a headwind to earnings growth. ultimately the focus is on the labor market. nowhere we're beginning to see the signs of labor costs climbing. >> okay. >> there we have it. >> thanks very much. >> thank you guys. coming up 2014 was a banner year for activist investors with 143 companies targeted.

but an activist says another will get bigger and louder this year. and later the debate over vaccines. we're going to continue talking about that topic. measles and more with a doctor from the brookings institution. "squawk box" returns in just a moment. 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.

welcome back to "squawk box," everyone. we've been watching the futures this morning and we've seen a lot of red arrows so far. a lot of this is coming because

of concerns because the rift between the greeks and the ecb has not gotten better over the weekend. that's weighing on things here and in 234e united states. the dow futures are down by about 76 points right now. and the nasdaq down by 19. in our headlines this morning, apple is reportedly planning its first swiss franc bond sale. it could come as soon as tomorrow. and high demand for a -- >> denominated. >> franc denominated debt has pushed bond yields into negative territory. this is good news for apple because corporate bonds are normally linked to government debt. so the tech giant will be able to borrow cheaply. let's talk about activism. 2014 was a banner year for activism with 330 companies being targeted. that's up from 291 from the same fund a year earlier. some market watchers are saying 2015 could turn out to be a busier one. joining us now to weigh in on

all this, jeff sonnenfeld from the yale school of management and also cnbc contributor. great to see you, jeff. you over the years, i think, have not been a fan of activists. you have been more on the core of management, is that right? >> i wouldn't say anybody's corner. there are responsible activists and there are frat boy screamers that i think have a destructive impact. no there are people like relational who i think are fantastic partners with home depot and hp. i think value act has been tremendous going back to martha stewart and microsoft. >> let me ask you this question. there's a cover story on the economist on friday capitalism's unlikely heroes. why activist investors are good for the public company. if you were to judge it would they be good for the public? if you were to look at the overall sort of move towards

activism, has this been a good thing or bad thing? short-term, long-term? >> i think having real activist investors opposed to these who style themselves realize they are a good thing. we need to have some accountability. but i know what you expect me to say and i am going to say is we have a lot of these faux activists who drape themselves in good governance terms. >> who do you put in the faux activist category? >> i just think that bill ackman and carl icahn, they don't get into -- icahn had a problem to be dealt with. he's targeted some good situations. nelson peltz. these are guys that like to scare up the antics. >> hold on. i could look at nelson peltz and look at the heinz situation and say i had created enormous value. long-term value. >> i think they had a pretty good ceo in there with bill johnson. in fact peltz kept him and celebrated when they were on

course. it's so confusing as to why he'd want to split anybody like pepsi up and going the opposite direction. obviously we're seeing consolidation. that was already happening in food. there are other food players it's going to happen with. i mean he's underperformed most of his target companies like dupont if you look back at the last five years. he's underperformed. dupont. and in fact you see that he's trying to kick up dust here. i think as a reputation building. as an attention-getting mechanism. but he actually -- what's he know about chemicals going into dupont? he took a company into bankruptcy. >> you're saying -- why do you say he has underperformed dupont? he hasn't owned dupont for five years. >> if you look at his total returns for five years and compare dupont's last five years, you look at -- i think one year it would have beaten their total shareholder reserves of invested capital. that's a problem overall at the

hedge fund's own aspect. $16 billion in hedge fund activity right now. they've got about a 14% return on s&p. half that in 2013 last year from what the hedge funds are bringing in. yes, you've had some anecdotally great examples. bill ackman had a good year. thank goodness for him because of being on all three sides of the table in one deal. but he had a pretty miserable year if you take out valiant. >> trying to understand. is this the same different, better, worse, bigger smaller than the whole lbo thing in the '80s? is this the same thing under another name or has it transformed itself into something more meaningful and better here? >> i think it is very similar. it's some of the exact same names. some of them passed on. but basically we're looking at people taking a very small stake. the audacity of peltz looking

for a third of the board seats with 2% of the ownership? you know the old dupont family they never had any kind of audacity. weirdly enough you know apple, pepsico, these are extremely strong performing companies. sit good for capitalism and since you joined us on this looking at alternative economic systems, leon told me not long ago -- he's the former head of sasac. he said we've stopped converting. we've seen what activists have done to your companies. it isn't because we're in the back room it's that we see that the short-termism is so rampant. and with our state on enterprises -- >> while i've got you here i want to talk to you about another management shakeup. amy pascal at sony. when we first learned of the hacking attack and started seeing e-mails, i think you were supportive of her and thought she'd ride out the storm. she didn't.

>> no. i wasn't supportive of her. i think she's a really smart person. i think she's extremely well liked. but you look at these e-mails to go out there and making the racist jokes about the president of the united states even in an e-mail form especially a person that's a studio chief, it's uncalled for. and to suggest that -- >> i'm with you. but is it fair to get rid of somebody based on personal e-mail that were to be private. she was irresponsible to put them in e-mail? or she was irresponsible in what she said? or -- i mean part of this is at some point is there a privacy issue here or no? >> you know if somebody walks into these senior levels in corporations, you surrender a

certain degree of privacy and need to be held accountable. if we'd known she thought this way -- and by the way, she damaged her legitimacy to lead. and they have not destroyed their leadership skills on many great movements. and amy is really smart. >> we've got to run. we want to thank you though. >> thanks. >> we appreciate it. we'll talk to you soon. >> thanks. >> so where are you on all this? good, bad? >> i think democracy is messy. but usually in the end it works. coming up "american sniper" giving up the top spot at the weekend box office. we'll tell you which film soaked up the big bucks. and then cavita patell will give us an update on the measles outbreak and weigh in on the voxuation vaccination debate.

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second as "sponge out of water" takes the top spot. spongebob brought in $56 million in american sales. "jupiter ascending" brought in just $19 million in its debut did you go to the spongebob movie? >> i did not. but we are a spongebob family. >> there are times my kids left the room and i kept watching it. >> ez a lot about you. >> it does. coming up the outbreak of measles in the united states. up next we talk about the debate over policies that mandate vaccines for children. as we head to a break, take a look at u.s. equity futures at this hour. nasdaq off 20 points. and the s&p 500 off about 10 points. back in a sec.

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in our house, we do just about everything online. and our old internet just wasn't cutting it. so i switched us from u-verse to xfinity. they have the fastest, most reliable internet. which is perfect for me, because i think everything should just work. works? works. works! works? works. works. welcome back to "squawk box." among the stories that are front and center alibaba making

investment in chinese smartphone maker for $419 million. federal judge putting a near $95 million sale bankruptcy casino in atlantic city on hold. a hearing is set for today on a motion to block some of the terms. also u.s. equity futures at this hour looking like we are in the red in kind of a big way. you're going to see the dow would open off 75 off. nasdaq down about 19 points. and the s&p 500 down around 9 points. video game fans including my son, listen up. netflix is making a live action show based on "the legend of zelda." that's according to "wall street journal" reports saying the show is in early development. nintendo has not made a formal announcement. i think my son plays that game. he does all this online stuff. world -- i don't know even know. >> yeah. >> he just plays it a lot.

>> i'm still on minesweeper. >> he's off that. >> sure. with over a hundred new cases of measles in the united states this year lawmakers throughout the country are discussing options to make it tougher for parents to legally opt out of vaccinating their children. and questions surrounding government involvement are front and center as well. joining us with more on this is dr. cavita patel. the doctor is a managing director and fellow. and thanks for being here today. >> thank you very having me becky. >> let's get your position straight, first of all. what do you think about vaccinations and whether they are good or evil. >> so i'm a primary care doctor. i get vaccinated my son gets vaccinated. i believe in vaccines and they're good. >> however, when it comes to whether they should be mandated, you think what? >> i disagree with any sort of federal mandate and there are people who have echoed this as

well and really what it gets down to is a vaccine just like anything else in medicine is a procedure. it's a personal decision. i'm not saying that people should not get vaccinated. but we should not have the federal government mandate and force people to get vaccines or anything other procedures, for that matter. >> right now state governments are the ones who set the laws on this. you're okay with states setting the laws? >> so states are also creeping -- if you look at what's been on the docket around states around the country, states are also getting very dangerously close to interfering in a different way where the exemptions are getting so extreme that it's very easy for parents not to understand what the implications of not getting vaccinated are. it's not just about getting the vaccine. it's about making it easy to not get it and not understand. and that's exactly what we're seeing happening in these cases at disneyland and around the

country. >> i understand the arguments that people have put forth. that this should be states deciding these things. but you're not talking about commerce and travel the way it was, let's say, a hundred years ago. every day i cross back and forth between state lines. i don't have a problem with federal mandates for some of these. and part is if you look at polio and smallpox. should the government go ahead and force vaccinations if those diseases were to come back? >> no. again, even if -- we've talked about vaccines every time something kind of resurges. and we had cases of smallpox and polio around the globe. and again, the answer is not to say that you must force someone to have a vaccine because at that point, where do you stop in what a federal mandate would encourage for your health care? >> if you are not vaccinating your children, that's a risk you're putting your children at. it's not just your children who are at risk though. it's people they come into contact with. people who maybe are either too

young or too sick tor able to get the vaccinations themselves. by doing that they put all these other people at risk. >> and that's really the -- becky, that's the heart of it. it's not about having the federal government forcing the hand of a certain procedure like a vaccine. it's actually about understanding when you don't get that procedure or that vaccine, understanding the life-long implications of that. and i can promise you that's not something that i think we're having a dialogue about in the united states. >> dr. patel, could a school board in your opinion, would you support this? a school board saying you are not allowed to come to our school if you don't have a vaccine. >> so school boards and actually even my own hospital won't let me work if i don't get a flu shot every year for example. and even in those cases, not just a school board but a hospital or any institution would have to have some sort of policy and exemptions. i'm okay with having local and

municipal kind of entities give guidance on this. but when we start talking about -- >> this is more than guidance, dr. patel. >> right. >> you can't come to school if you don't have this vaccine. so are you in favor of that or are you against that? >> i'm in favor of making sure that schools are supported to have policies to get their kids vaccinated. if they tell you that you can't come to school unless you get vaccinated, that school board would have to also make sure that they do everything to educate parents about why that vaccine is important. and that i'm in favor of. >> they can do it as long as they are educating the people as to why they're doing it? >> educating as to why to do it and then i think even more importantly educating for the parents who have real either personal or religious or certain kind of consciousness around why not to vaccinate. that needs to be something they're educated. as you said becky, the implications of that are life

long, not just personal. >> there are states like new jersey where i think the number i was reading this weekend, the number of personal compensatory damages since 2010 has jumped five fold. that's more than 198 people in schools who hasn't been vaccinated. it's a tweak in the state law that says you can claim religious reasons even if it's not religious reasons. they are not allowed to question. is that appropriate or not? there are lawmakers in the process of trying to change that. >> no, that's exactly what i was reference b referencing. there's a number of exemptions across the country that haven't passed legislatures that are on the boxes for potential consideration. and i think we've been talking about mandates but what's the opposite of that? it's being so passive about allowing people not to vaccinate. that's what we're seeing happening. so i am vehemently opposed to

states who think it's okay to relax exemptions. we've had exemptions for as long as we've had medical procedures. we've let people say no i do not want to do this. but we go through what's called informed consent. and in this case we're not informing anybody when we just say all right, that's no problem. you don't need to vaccinate. >> i think the problem has become if you have 95% vaccination somewhere between 95% and 90% you can guarantee herd immunity. meaning the diseases aren't going to pop up because enough of the population has actually gone ahead with the vaccination. i almost feel like you are picking through very fine points to say that it's okay until a lot of people get to that point. where it's just a very slippery slope. when is it okay and when is it not? >> no, no no. let me be clear. it is absolutely the right thing to do to vaccinate. and when i say it's not okay

it's only in that it's not okay to encourage a federal mandate to force you to vaccinate. we do not want -- and what it gets down to is we do not want federally mandated guidelines for procedures that are medical and should be in a dialogue. >> what happens if enough of the population decides they don't want to do it? >> well, that's what we're starting to see what's happening. and the answer is not to say that we have to line everybody up and have the federal government force people to get vaccinated. it's kpa we're doing right now. it's what i'm doing with my patients. so to make sure everybody is vaccinated in my patient population. so this is not something that i think we should encourage a federal mandate for. >> here is my problem. i'm watching twitter as we're doing this. and i have seen some ridiculous ideas that have been spewed on twitter about this very topic. people who will look at this and who now think you are telling me that they agree with dr. patel,

becky should give herself and her kids all she wants. they are conflating ridiculous things between the two. this is not about drugs or drug free or advil or aspirin or anything. this is about trying to make sure that your kids are protected from horrible diseases. if you've looked at these diseases that people had forgotten about because we haven't seen these things we've gotten to the point we think it's no big deal. i took my son back in for his second booster for the measles, mumps, and rubella on friday because we're traveling to california. i'm highly concerned about the idea that people have forgotten what these diseases actually are. they think the vaccines are worse than the diseases. >> that's exactly lyly right. you're right that people should not conflate this with just everything else as you mentioned all the drugs we give children and whether or not to give them. each of those are an important decision. this is about vaccinations and the implications of not

vaccinating. but the discussion is should the federal government force the hand of every parent to get a vaccine and i think we haven't even done enough to ugt why we need to do this stopping short of saying that the federal government -- >> so you think education solves the problem? if more people understood, they'd go along with it. >> not just education, but education plus a very serious conversation for parents who decide not to do this for their children. and that involves exactly what you've said that we cannot let parents then have those children enter into schools and community settings. and that's not something that i think parents have really thought about who have refused the vaccine. when i went to my pediatrician and talked to the office staff and whether they talked to families about vaccinations. the office staff said when parents tell them they don't want to vaccinate their children they just kind of stop. and i think as health care

professionals, we need to push. and we need to be very clear about what the implications of saying no are. >> okay. dr. patel, thank you for joining us today. >> thank you. coming up when we return the department of energy issuing a challenge to make cars lighter. and the bar has now been set high. up next we're going to show you a fully drivable 3d printed car. we're going to talk to the government agency that's funding the project. we're back in just a moment. doug, we have the results, but first, we have a very special guest. come on out, flo! [house band playing] you have anything to say to flo?

nah, i'll just let the results do the talking. [crowd booing] well, he can do that. we show our progressive direct rate and the rates of our competitors even if progressive isn't the lowest. it looks like progressive is not the lowest! ohhhh! when we return we'll find out whether doug is the father. wait, what? at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.

welcome back to "squawk box." opec raising its demand forecast for its own oil. lower oil prices will slow production must faster than first thought. take a look at crude oil right now. it is up by 1.5%. wti. brent is up about .7%. and natural gas, why do we take that out? is that tenths hundredths thousandths? wow. 2.0819%. wow. i'm glad we have that precision on our board. we have an awesome story to tell you about, i think. what's driving innovation in the venture capital. the energy department has given away a billion dollars in funding through the agency that

funds high risk high reward research into the energy space. deputy director joins us now from the innovation summit bringing developers investors, and researchers together. she is standing right now in front of the world's first 3d printed car. it is called straty? is that how i pronounce it? >> yes. >> i think the fact it's printed by a 3d printer it's crazy. can you explain what's going on with that vehicle behind you? >> yes. local motors is a company looking at ways to prototype automobiles and they actually produce this car in conjunction with the department of energy. and it's actually 3d printed. not entirely, obviously. some parts were put together afterwards. but it is a fully drivable car.

we're particularly excited at the summer to be showing the car. i think people will be really excited to see the produce hype and we're partnering with them to look out further into the future and look at what we need to be doing for prototyping cars in the future. >> what was the cost of putting this car together? >> oh gosh. i don't have any idea. so local mow tors took care of all the details of that thing. really a prototype, a demonstration car. >> and in terms of the intellectual property created from this car, does that get shared ultimately? do you think of this as a government-spon bsored project? do we the citizens or elsewhere get to use that ip? will others get to use it? >> local motors is really excited about being able to share designs and have co-creation happen. and so in the creation of cars like this as well as our design competition that's ongoing right

now, they are looking at co-creation and sharing ideas amongst entities. >> how does it work? >> actually the details of how all the pieces come together i'm not really sure for this particular example. but we're here at the summit outside of washington with 2,000 investors, entrepreneurs, actics, and government agency workers to look at not only prototypes of things like the 3d car, but storage devices that could allow us to have grid scale storage, hardware and software relative. we're excited about the type of innovation we're seeing coming out here. >> how should we think about the idea of the government picking winners and losers to the extent the government has become an investor in these companies? >> actually, it's interesting. i came from the private sector. i was, you know came in for three years. to work and develop and deploy.

we give grants to outstanding entrepreneurs. and we work with them during the life of the grant basically asking the question if it works, will it matter. and we work to get partners from the private sector to come in after we fund to move things to the next stage. and we do not keep an equity stake in anything. the ip that's invented belongs to the inventors. >> so this inventor who made the car behind you, if he hits it big is that a success for him or the country because it raises the game on innovation? >> are rksrrp looks to leverage the follow through all of the industry and the u.s. sustains its leads in the energy sector. you know, and that's the big payoff is that just like innovation for a long time here in the u.s. has benefits the

entire country. >> i just -- it's probably a stupid question but we're not interested in 3d printing as a way of actually having a production model of this car. that's not a we to manufacture cars in the future. just a way of doing a prototype. >> the nice thing about some of the techniques we use early on in things is that you can rapidly produce something and be able to see all the ways the parts interact even though later on you certainly use more conventional math manufacturing types of techniques in order to produce as many and at the cost you need. >> okay. cheryl, thank you for joining us. come to the city. bring one of these 3d cars. we could park it outside. we'd love that. >> outstanding. we'll look forward to you seeing lots of innovation in the future. when we come back this morning, it was a charity campaign that went viral. the ice bucket challenge raising more than $100 million for als research. how the money is being used right after this.

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♪ you're going to count down. three, two, one and then i'll do it. okay? >> my friend and colleague. three, two -- >> i knew you were going to dump it fast. it's been months since the ice bucket challenge blew up our social media feeds. it raised more than $100 million for als research. meg tirrell joins us with an update on what happened to the money. >> this challenge raised $115 million. clearly people were both dumping and donating. that compares to about $60 million for the als association and all of the chapters raised in the previous year. it brought in a lot more funds. they allocated $22 million to research. they announced grants to four

projects in october going to the people of als to better understand the disease and to speed up drug development. and other nonprofits also brought in ten times the amount of funding they normally do. that's already been allocated to ve search as well. there's also funding going to providing support for caregivers for people with als and to providing better tools for communicating and for getting around people with als. and it really provides this huge boom to research and to the community. and they've seen triple the number of applications for young scientists because people are much more aware of the funding. >> that's amazeing. >> are they planning on doing this again? >> they're hoping to do it again. they don't know if people are going to dump water on their heads again, but they hope every time july/august rolls around people will donate. >> what will they dump on their heads? >> i think other people are thinking maybe water again. even if they don't, maybe they'll still donate. i think other non-profits for other causes are trying to think

of what else they can do. a lot of people have tried to emulate it. >> $22 million that they're giving towards research where are we in the research on this? how close to anything what needs to happen? >> so some of those are really, really early stage. like the genome sequencing project, that's to discover the root cause of the disease to develop drugs from the earliest stages. others are trying to accelerate drug development. the als association thinks it would be possible to have a drug on the market within the next two to five years. we've had being blowups. they had a phase three program that did not work. it looked promising. other companies are still working in the space. one thing that project als, another association is doing, another organization is doing, they're trying to take approved drugs that are already on the market and try to see -- >> i've got to interrupt. 21 million from 115 million is 94 million.

what happened to the other 94 million? >> they're going to spread it out over the next few years. >> because they assume they're not going to get that money again? [ overlapping speakers ] >> it's always one of the biggest problems when you get a rush of money. >> they can see it's prompting projects and other sources to step in to continue to fund them. >> meg, thank you. >> thanks. coming up sales numbers from mcdonald's expected in the next few minutes. we'll have instant analysis as soon as the data hits the wires. plus retailers bracing for a possible port shutdown on the west coast. the head of the national retail federation telling us what it will mean for the supply of goods on store shelves. app coming? we've got to make something great. how's the app coming? we've got to do it fast. let's do this on bluemix. you can build apps with analytics, big data, even ibm watson. that could give us the edge. let's do this on bluemix. it can provide code for you. we could be first to market. because being best is priority one.

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line in the cyber battle, wherever it takes us. that's the value of performance. northrop grumman. ronald mcdonald serves up sales data. can the fast food chain bounce back from declining sales? we'll get street reaction. west coast shipping run aground. a labor dispute at some of the largest ports costing the u.s. economy billions. jack lew sounds off in my exclusive interview. and sam smith steals the show. >> and the grammy goes to sam smith. >> sam smith. >> we're going to talk winners,

losers weird crowd dancing. ♪ oh, won't you stay with me as the final hour of "squawk box" begins right now. >> from the most powerful city in e the world, new york, this is "squawk box." >> welcome back to "squawk box" right here on cnbc first in business worldwide. i'm andrew ross sorkin along with steve leisman this morning in for joe kernen and becky quick. you are looking at what's happening at europe -- in europe right now at this hour. the crisis over greece's debt and the country's future in the eurozone dominating today's trading. remaining cautious at this hour. you can take a look at futures right now and see red arrows across the board. dow looking to open 56 down. the s&p off 12 points.

meantime becky's got news on mcdonald's. >> we've been waiting for their same store sales. this has been a closely watched story. those numbers are just hitting the tape. it looks like they are down 1.8%. u.s. sales actually up. and this is good news after some really terrible numbers that they've seen for quite a while. u.s. sales up by .4%. they're saying that it was a positive impact of breakfast day part performance. but they said it was offset by competitive activity. that's been something that's been plaguing mcdonald's for some time. i think the huge news though is asia pacific, middle east and africa. the comps there, down 12.6%. they say this reflects not just currency issues. this is broad based consumer reception issues in japan along with the lingering supply of the distribution issue. down 12.6%. not often you see a number for a company like mcdonald's down

that much. down 12.6% is going to catch a lot of people by surprise. >> this is the object found in the food. remember that? >> there was a supplier in china who was accused of selling rancid meat. i think that's affected a lot of different chains. but it's affected mcdonald's for sure. >> objects found to ensure product safety. something found in the food there. >> in any event, we should point out in europe 0.5%. if you were looking for any effects from currency that might have been a place you were watching it too. the company says that it is trying, it's on the path to regain business momentum globally. let's get more on mcdonald's sales numbers. joining us right now is senior restaurant and retail analyst at morningstar. also the editor of "fortune." r.j. let's talk about the number themselves. how big of a surprise is it? >> i think as you pointed out, the number is jarring. that's going to be the point of focus coming out of hit this

morning. it seems like after the supplier issue as well as the japan issue they've been running into doesn't seem like it's getting better. middle of the year, you're against a tough comp. but that's nearly the point of concern. u.s. numbers are also concerning. i think that as they look to right the ship a lot of things they need to focus on there. slightly off, but a pretty easy comparison. focus on pricing, product innovation at this point. >> allen, let's just talk about the longer term issues facing mcdonald's. this has been a disaster in the making. >> 2014 was the worst year in a dozen years. the company seemed to have lost its focus. it used to be about value and convenience. you have the dollar menu but you have some other stuff pretty expensive expensive. and convenience has gone the wayside as the menu has grown.

it needs a refocusing which is not easy for a company as large as mcdonald's. >> you almost wonder, a company this size how can you turn things around and can anybody? >> i think that's right. mcdonald's is starting to b all things to all people because they need all people to keep same store sales growing. they're losing ground to much more focused, smaller fast food restaurants. >> can you tell the chicken wing story? >> it was a great example. they introduced this -- this was in 2013. it was called mighty wings. big, fat giant wings. we the this in a story in "fortune" in november. app good product, but fairly expensive. a dollar a piece. and consumers revolted. they said this isn't why i come to mcdonald's. i could get cheaper wings some place else. >> but are you convinced if they went back to basics, they'd still win? >> no no. i don't think this is going to be an easy thing to pull off.

now, remember mcdonald's went through a tough patch back in 2001, 2002 and they did get out of it. but they've got to figure out what their proposition to the consumer is. right now they're all over the place. this laidesttest ad campaign pay with calling your mom, that doesn't get to the basic problem which is food. consumer surveys show people think that the food isn't particularly good. and they've got to figure out a way to address that. >> r.j., one of the things bounced around in the industry is the menu has gone from 30-something items to 120-plus items over the span of a few decades. that's growth that is really hard to keep up with. it makes it tough to get the food out quickly to the patrons. and it makes it tough for you to make anything all that well. how do they handle that? >> yeah i think absolutely you hit the nail on the head there. they are to focus and reduce the amount on the menu.

they've already committed to 16 they'll take off the menu this past month. but i think that they need to be more aggressive on that front. >> r.j. what do you make of this idea of customization? you hear it's going to be experimenting with it. that means more. >> i don't get it. how can you -- and how can you construct your own hamburger and still keep the convenience, the speed which was the original reason a lot of us went to mcdonald's in the first place. >> that's exactly my worry with that. you're taking menu items off, but the fact is the menu board and customization, that's something that customers at mcdonald's. >> ten minutes? >> yeah. ten minutes for a customized burger. >> how is that even a drive-thru? >> they said they've got another assembly line that they can make the drive-thru option worth it. but that's still a pretty big if at this point. fwhooer a wait and see mode.

>> the big drag here is asia. which is this astonishing 12.6% decline in sales. can they fix this problem? >> yeah. i think the asia issue is more of an issue with the supplier. at least the china issue. that's mainly a supplier issue. that's one that's impacting everybody. i think in time they'll be able to come out of that. japan has been a drag on sales for many years for the company. i think that's something that's going to take a lot -- >> people found a piece of vinyl in a chicken mcnugget. >> yeah. that sort of takes the appetite away. russia is a problem too. they've had the government going after them. a giant mcdonald's at the square was one of the great symbols of the opening of russia after the gold war. it was closed by the government. >> let's talk about the stock and maic a case either for or against it. right now trading at 18.5 times. what is the rest of the industry trading at?

>> low 20s. if you bring up casual dining restaurants, it's drading at a discount to the space. obviously though expectations of growth are quite a bit lower for mcdonald's right now. if the company -- how the company is going to turn around the business and if they can do it. the one thing you have with this company is it a z a goodhas a good dividend right now. if you think this is decline, worth going somewhere else. >> allen people are watching easterbrook very carefully. do they want to see? >> focus. when you're that big, you farther to focus, you may lose -- that's right. i like the wraps. >> i like the wraps. i like the salads. and if i'm there with the kids i'd like to see that. >> he has a difficult job. he has to focus the company. he has to recreate the consumer's mind. but he can't afford to spend a lot of time watching the same store sales decline.

>> allen, thank you for coming in today. >> yeah. i like you guys in the building. this is fabulous. all i have to do is take the elevator. >> r.j. thank you for joining us too. >> thank you. some other headlines we're watching this morning, treasury secretary jack lew tells cnbc the u.s. economy has turned the corner. but he cautions the nation needs further gains in wages. we'll have more of my exclusive interview a little bit later in this hour. alibaba's ant financial services group is reportedly valued at $30 billion. the firm running ali-pay. and nissan raising its profit forecast. this after the latest results beating the street. helped by strong sales from new products, exchange rates, and cost cutting. >> okay. a few stocks on the move this morning. let's tell you about them. hasbro earnings topping estimates by a penny. revenues were slightly below.

the toy maker said it hurt revenue by more than $750 million last quarter. hasbro wanted to buy for a little bit dreamworks animation. a mixed quarter at diamond offshore. revenue fell short amid weak oil prices. the company is dropping its special dividend 75 cents per share that it had been paying since 2010. and masko's earnings were better. but saying it's benefitting from cost controlled and better productivity. coming up scott black betting on healthy returns from biotech. he shares his stock picks after the break. and later, after a weekend shutdown of u.s. ports, tensions running still high. billions could be lost at sea. we head to the west coast and talk retail in just a bit.

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down and they're down a little bit less than they were. dow down about 60 points. if it were to open now. s&p 500 down about 7 points. and the nasdaq down 13. we've got a special treat this morning. the squawk platinum portfolio is

back. now you can go online to prak the -- track the portfolio managers' picks. here with us to share his picks is scott black. we don't get to see you in person like this all the time so thank you for being here. >> well, it's a excuse to come visit you. >> it is. let's talk through some of the companies you like a lot these days. and what type of upside you see there is. the first one is actavis. >> yeah. it used to be watson pharmaceutical. it was a tiny company when i had dinner with paul in new york. and now he's buying agn. allergan. and he just packed in a little british company. the company should have close to $23 billion in revenue next year over 17 -- >> here's the good news. you bought this company at 3784. that's good considering the stock is now trading at close to $286 a share.

that's the good news. the bad news is most of our viewers who have been following this has v not been able to piggyback this trade. how much more upside do you see out of this stock? >> well in two years they promised to deliver $25 a share in earnings. i think that's realistic. if you put a multiple 15 or 16, you've got 4$400 a share. and close to $21 a share in free cash next year after the merger goes through. so it's a money machine as well as earnings. we have the ceo of allergan on tomorrow on "squawk box." anything you want us to ask him? >> is he going to continue with the company? >> that's a good question. is he going to leave after awhile? isn't that the idea? >> i'm more of an expert on actavis than allergan to be frank. >> fair enough. your other big take. >> okay.

there's 11.45 in cash. they don't have comp based in their earnings on a calendar basis. close to $25. it's a double digit grower both bottom line and top line. $2 billion in excess cash. the stock at 12.7 times this year's expected earnings. tell me if you can find other high-tech companies with proprietary technology selling it there. >> you think it's a multiexpansion story? >> it's both. >> what do you think the multiple gets too? >> i think you get a 15 multiple. i think the stock definitely goes over a hundred. and they've got the wind behind them. because equipment on the front end is going to be up 2 billion or 3 billion. as we've got a smaller line with 3d, .10. .15. >> i don't know what that means. >> it's got part of what you do is meet with the people at the

company so you feel comfortable with them. >> in fact last time out we met with a chief technology officer. i met with martin the year before. but i wanted to see what they have. so pretty smart bunch there. >> okay. >> let's hit number three. customers bank corp. i don't know this bank. >> yeah. it's jay sedu. he took that from a nothing bank and he sold it prior to the crash in '08. he took this one from under $400 million in assents in '09. it's up to $6.9 billion at this point. they should do somewhere in the order of $2.08. this year it's a $21 stock. 1.3 times tangible book. got very good growth. strong portfolio. >> big part is mobile. that was recently for on the money. and that's what they talked

about. >> yes. that's a way of gathering chief deposits in they have 1 million students hooked up through a network and they bottom line is they hope after the youngsters graduate that the process will stay there. on a given day, they've got 250 to 275 million in deposits for free. >> how much of this is a takeover play? not at all. he's going to build the bank over the next few years. then it might be a takeover. if you're looking on a short-term basis, not at all. the idea now is to get to a hundred on basis. and he's close on the return on equities. you'll have to stay tuned. >> okay. scott, thank you. appreciate it. i thought that music was us trying to go out, but it's your phone. >> i'm really sorry about that. i thought it was off. that's embarrassing. >> appreciate it. a reminder by the way, go online to cnbc.com to track the picks in realtime. scott will be there.

plus read their exclusive analysis. when we come back this morning, the odds of winning the record high power ball drawing are pretty slim. the jackpot surging. the numbers will actually shock you when we give them to you after the break. plus samsung's smart tv privacy policy raising some spying concerns. that story and more when "squawk box" comes right back. hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants.

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♪ welcome back everybody. gasoline prices are rising. industry analyst says the average cost of regular jumped 13 cents in the last two weeks to $2.20. and she warns that the trend is likely to continue. so we've seen the lowest of the lows, perhaps. the price is still $1.10 below the mark at this time a year ago. power ball fever continuing this morning. no big winner claiming the price this weekend just yet. the next drawing will be around $450 million this wednesday. your odds of winning, 1 in 175 million which to me is probably a decent chance. i'm going to have to go buy some. >> no. if i'm going to worry about my son getting measles, then i can't -- >> that's true. but i still think it's worth the buy.

>> the best description of a lottery is a tax on people who are stupid at math. you need to be careful what you say around your samsung tv. in the small print of the tv maker's privacy policy the company warning the voice recognition feature on its smart tv could capture your conversations including personal information and pass it along to a third party. samsung says data is only shared if consumers consent. and if they turn on the voice feature. andrew? >> wait a second. it's actually shared if you consent to it? >> no, no. what it means is if you turn on the voice feature which you need to get to work properly they will share whatever you're saying through the voice system to some server somewhere which is processing the voice information sending it back.

it's not being shared to everybody, but that's the privacy issue that's in the waiver, if you will that you have to sign. >> so if you are saying turn to channel 13 and then you say something in that same process like nasty to your kid or something like that not that i would ever do this but in that case that would then be out there. >> it would be sent to a server somewhere. because the server is processing the voice. and that voice server is then sending the information back to the tv. and the question is does that server somewhere in the sky save that information? >> and somebody could hack it. >> or somebody could come knocking. >> but if i don't have the voice recognition thing, i don't have this problem? >> no. >> so i just solved the problem. i don't have a camera on my tv. i don't have a voice recognition. i have a click per. >> i don't have a problem with a clicker. >> expect the back keeps coming off. >> tape. still to come this morning

in europe avoiding greek tragedy. we'll find out what people are watching this morning. and a shutdown at a west coast port. jack lew spoke to steve yesterday about the ongoing labor dispute and the impact on the economy. we've got that exclusive comment after the break. plus we're going to hear from the national retail federation on that issue. we head to a break, take a look at u.s. equity futures. in the red. dow off about 63 points. nasdaq looking to open down 14 points. and the s&p 500 looking to open down about 6.5 points.

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welcome back to "squawk box," everybody. in our headlines this morning, a new ap poll finds that americans are feeling better about the health of the economy. nearly half of those surveyed say that the economy is good now. that is up from just 41% in december. the financial times announced many are criticizing warren buffett over the -- who cover the company point to

difficulty in modeling berkshire's quarterly results. and let's get another check on dow component mcdonald's. the global comps were below what had been expected. but mcdonald's did beat the forecast for both the united states and europe. they haven't had that in awhile. that was seen as a bit of a win. the biggest miss was in the asia, middle east region. down more than 12%. that has puch pressure on the stock this morning which looks down about 60 cents. >>. before you grab a snack for your morning commute, check out this story. a man in georgia cited by police accused of eeling a double quarter pounder with cheese while driving. the man says the officer told him he observed him eating and said, quote, you can't just go down the road eating a hamburger. the ticket was issued under georgia's distracted driving law. >> but he had both hands on the

hamburger? because i've eaten in the car before. >> no but the police are saying you're not allowed to eat. i mean, i would have been -- are you looking that up? >> i'm looking at there was this -- i don't know if you saw it. there was this horrible tragic accident with bruce jenner involved. and bruce jenner apparently was smoking a cigarette and people were saying there was an issue about smoking cigarettes while driving now in california. there were people raising the issue that it should be illegal. >> guy back and look at this again. it was not just a hamburger. it was a double quarter pounder with cheese. that's a pretty big one. it might take two hands. >> i've done it before. i mean if you can't eat a hamburger when you're driving, then i mean you know i don't normally do this a lot. but you have to change the whole model. you don't eat wings when you drive. >> you could. >> what do you eat when you

drive? >> it's easy for me to eat in the back there. it's not a problem. >> you would think that would be, like more of a northern thing. you wouldn't think georgia would be that uptight about a guy eating a cheeseburger. >> you can definitely make the argument sometimes for trying to do too much behind the wheel. >> hold on. if he's eating with his elbows on the wheel, that's a problem. >> or steering with your knees. >> i think we need more on this story. >> we will do a little more work on this one. >> find out the real problem. in the meantime let's take a check on the markets. jim iuorio joins us now. what's happening this morning? >> well it's tough to follow hamburger talk, but i'm going to give it a shot. if we look back to friday everything seemed good. those numbers weren't just good, they were very good. leaves little debate now we were on the right track from an economic standpoint. now come this morning, we're worried about greece again.

i'm trying to decide if the story really changed or is it just that we had rallied 5% essentially in a week's time trying to take out the old highs and continue to new highs. and we couldn't do it. we're using greece as the reason for doing that. that to me is kind of what it seems like. it's sort of that election happens, couldn't we have predicted these things happening in greece? >> then explain what you're saying. >> that when market position gets to a certain way, stories that shouldn't be a huge deal. and by the way, this is a huge story. >> what's moving the market this morning? >> that's what i'm saying. too many people on the long side of the boat. everybody's bought it for 5.5% they wait for it to make a new high after the great number. it can't. people rush to the exits. then we back up and try to pick the story that's going to explain that. and again i'm not saying the greece thing is not a big deal.

today is not the epicenter of this story. >> okay. i don't know. what is the epicenter of the story then today? >> no today is just it's a risk off day that's fueled by greece. we're only down ten handles. so it's not like we're building a zbaster. but what i'm saying is just we gather steam a little bit and look for the next reason to go higher. >> let me ask you this. there have been some notes that have been circulated that point out italian and spain and portugal yields are backing up. that has people concerned. they're watching the situation in greece closely wondering if greece actually exits what that means for spain, portugal and from there on. >> no doubt. that's part of the whole risk off equation. there's a very decided line between greece -- i mean germany, france, switzerland and then spain, italy, portugal. people are clearly worried that if greece exits, opens the doors for them. i think it's much more likely if

greece exits and i do believe that will happen in the next couple years, but i think what happens is they tighten up a little bit more and make it easier for those countries to stay in. that's my opinion on it. >> okay. jim, thank you. thank you for explaining what the story of the morning really is. coming up a star studded event at the staples center last night. the 57th annual grammy awards were held. we're going to talk buzz and the big winners in just a bit. paul mccartney looked like a backup singer. and later, late comedienne joan rivers' condo up for sale. the price tag with the unique features are just ahead. back in a moment.

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welcome back. the economy could see billions of dollars lost if port os then west coast don't get back to full capacity. sending ripple effects across the nation. jane wells joins us with more now. >> hey, steve. this is the local dispatch hall where the first jobs are about to go out to work shifts since friday. and there are about a couple dozen ships ready to be unloaded here in long beach and los angeles. now, the terminal operator and the ship operator said they agreed to hire no long shoremen since friday night to offload vessels because they said there's no place to put the cargo. that's something the union disputes. now, exempt were cruise lines and ships taking supplies to

hawaii. both sides accused the other of continuing to ratchet up the slowdown. yard work continued this weekend, but no offloading or loading of ships. >> i think any time the foreign owners of these companies that control america's ports on the west coast, when they decide to close the ports, that's a pretty serious issue. i think people should take it seriously for what it is. it's a form of economic terrorism. and these companies should be more responsible. they shouldn't be allowed to behave in this reckless way. >> well management has shown me some numbers which indicate if accurate that the union began the slowdown on the yard starting in november. and then both sides of it became a tit for tat and so here at the largest complex where nearly half of all inbound movement from asia comes.

>> we're now into the fourth month of slowdowns. what happened is we call the dispatch saying we're going to need 15 yard crane operators at terminal x or terminal y. what we're hearing back from them is no. you're going get one. >> now, the impact of this could be $7 billion on retail. just retail over the next year according to analysis. and $37 billion over the next two years. because of ongoing problems on the west coast dealing with larger ships and more volume. there's a dispute over pay. they say the average dock worker makes 170 grand. and it's more like 82 grand. as for the claims things are to stacked up and clogged on the yard, they're putting out pictures showing at least in some places it's not that crowded. the pr war continues. they can't even agree on how much they're getting paid. >> isn't that basically just

simple math? add them up and divide. >> one would think. one would think. yrn i don't know, becky. but they're saying inging average pay with overtime and some people have higher rates with others 147 grand. >> i had a chance to talk to secretary lew. i asked him whether or not the federal government should get involved here. are we close to that level now? >> we may be. there are some calls by -- there has been talks that the president may have to do what president bush did in 2002. if it comes to complete shutdown not just for a weekend but every day, then the president could enact, there would be a cooling down period. but we're talking 80 90 days before things get back to normal. and even at this point, you're already hearing $7 billion

impact this year to retailers just because it's taking so long to get the ships offloaded. >> it seems this is a constant debate that comes up every six months every year. >> yes. the situation at the ports is different. it's under a different congressional act than the rail yards or other parts of our infrastructure. and that's why there are some saying congress should move to move it into where we wouldn't have this situation every year. management would love that, the long shoremen don't want that. >> thanks for getting up early and bringing us that important story. >> you bet. i sat down with treasury secretary jack lew for an exclusive interview and asked him about this ongoing port problem on the west coast. >> there are a lot of people who are looking at that carefully to answer that question. i think that up until this last week we were seeing you know shippers find alternate paths through there. there were delays. but i think that it's important that this gets resolved.

and the sooner the better. >> douglas from caterpillar said anybody producing in japan, uk europe will have an advantage over their american competitor and i would expect it to have a negative impact on the united states. are you concerned the dollar is in a place where it's beginning to hurt u.s. jobs? >> i think if you look at our economy right now, it is quite strong. and on a relative basis, it's stronger than a lot of the economies that we compete with. i think the real challenge is getting other economies to get back in the growth pattern where they're doing better. and some of that would then equalize. i mean right now what we're seeing is the function of the u.s. having a strong economy which is a good thing, not a bad thing. obviously we would like to see more growth in europe. we would like to see more growth in other parts of the world. that's one of the things we'll be talking about at these g20 meetings. i do think the global economy has weak spots in it and it's important for those spots to be strengthened.

what i do think we have learned from our experience is if you use all of the policy leverage you have, you can change the course of your economy. >> let's go right back to this port issue and find out how the slowdown at the port is affecting the retail industry. matt, have we started to see this issue show up on the shelves of retailers in the united states? >> steve, i think what we've seen is that the slowdown has had serious impacts. it continues to negatively and significantly affect operations of retailers and many other industries in the u.s. and this goes back many months. we've talked with you about it on a couple of occasions. you know this is as was being observed a minute ago, negotiations have gone on for nine months. contract expired six months ago. and in context here, this is 29 ports from san diego all the way to bellingham washington. 42% of all containerized trade.

12% of gdp. 18 million jobs. it's starting to have an effect. and as the port operators are saying, there was a shutdown for ten days in 2002 and that cost the economy a billion dollars a day. our study estimate ifs that happened today, it would be $2.5 billion every day. >> give me an example of what is happening to retailers? >> there are enormous amounts of containers of products not getting to shelves. there are 25 sitting off shore in los angeles. 15 off shore in oakland and they can't get here. much hard tore get the product and to turn that inventory. and for everyone not just us but for agricultural products that are rotting and can't get exported, manufacturing goods both coming in and out of this country, it's started to add up. and you know, we're all trying to help the middle class here. they're going to be the ones that feel it most at higher

prices. >> matt are you urging federal government involvement here? >> we have been since before the holidays. we have been for many months. >> what are they telling you matt? >> you heard secretary lew tell you they're monitoring the situation closely. we don't want to take a position on the negotiating issues between the parties. we encourage them to continue with the existing contract stay at the table, and keep normal operations in place and avoid the slowdown. and when you have 25 ships sitting off shore outside of long beach in last and 14 off shore in san francisco this is the thing that takes a few days to unload a container. now it takes weeks. you heard a couple of examples of the inability to get the right kinds of skilled workers to operate those cranes. this is a real serious issue. and it's a significant part of the economy. you know, 95% of the personal protective equipment used in

medical institutions gloves masks, gets made outside the u.s. it can't get here. we have commissaries on military bases where military families in asia and europe can't get fresh produce or meat. this is affecting many industries and we feel it very acutely. >> matt, thank you for coming in today. >> thanks, steve. up next jill was known for her vivacious personality. she loved the dplits and glamour. and they are condo reflected her luxurious style. we go inside her condo which goes on the market today. when "squawk box" comes back. know that chasing performance can mean lower returns and fewer choices 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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special look. >> joan rivers famously said, this is what marie antoinette would have done if she had money. i'm thinking she was kind of right. now for a mere $28 million, this home, unique to say the least, can be yours. it goes on the market today, ballroom and all. now, the penthouse is as candid and colorful as the comedienne herself. four bedrooms, four and a half baths. it's had a lot of work done. once a gilded age limestone mansion, it was converted to condos in the 1930s, but just an exclusive nine units. it spans three floors 5,000 square feet two kitchens staff quarters, and five fireplaces. but the real glamour, of course is in the entertainment spaces. i mean how could it not be? incredible parties thrown here. she had a salon, a grand ballroom. it's kind of like if these walls could talk. now, of course celebrity status always affects the property values for better or for worse, depending on the circumstances. and while joan rivers' tragic

death does hang heavy in these walls, the family would like potential buyers to think of this as a place of humor and celebration. becky? >> all right diana, i couldn't have said it better for myself. thank you for that glimpse. right now let's get down to the new york stock exchange. jim cramer is standing by. jim, have to find out what you think about those mcdonald's numbers earlier today. >> they're good. everyone knows asia's terrible. so asia's getting worse. but that's okay. the markets that drive this stock are united states and europe. maybe the marketing campaign is pandora. howard schultz taught me that when you come back or change management, it's 18 months. so we're not even in the first month. i don't think you'll see -- this is even harder to turn than starbucks starbucks. but i thought it was good news the united states and europe weren't so bad. i think that's the way the market's going to play it. asia's been a disaster for a long time. it got to be more of a disaster. it's like yum at 67 when it was a disaster. got a new sheriff in town and maybe can make a difference.

>> the stock is trading at a discount obviously because of what's happened to some of its peers in the restaurant business. you say 18 months to make a turn, but how long would you wait as an investor to get in? >> i think that there's plenty of time but kind of wish we don't. the change is going to take a long time because the food is so out of style. a company that was passed by. when i look at chipotle and read some of the things that chipotle's saying it's clear that mcdonald's has to reinvent itself. i've got four chains that are doing burgers that are better than these guys. they've got to clean their act up. figure out how to become more relevant in an age where people think that their food is at the worst part of the food chain. that's going to be difficult to do. the younger people know that the food chain is corrupt, so they have to defeat that. >> also to be such a large company. you don't want to be all things to all people. that's not a recipe for success. but when you are that big, it's kind of hard not to be. >> the menu's impossible.

it's like a chinese and greek restaurant. who can make that? the whole idea behind mcdonald's was like henry ford and the model t. you produce the model t. effectively every day. if i were ronald mcdonald, i would go in with henry ford. and say we're going back to model t. they have to go back to the way they were. they feel like if they add certain things to the menu they'll look like chipotle. no. they're not going to sell a safrita burger. this new guy's got to say we've done everything wrong and we are going to go back to basics. make it so that when you go in there, the people can make the stuff. >> i think it's something like more than 133 different items that they have. >> it's mcdonald's, for heaven's sake. >> and it's five things that sell the majority of everything. the big mac, hamburger, chicken nuggets, fries. >> maybe the nobel peace prize guys accounts and foreign relations, a lot of guys from

oxford and cambridge behind the counter. i'm not seeing that. i've cleaned dishes at a new restaurant. it's not as easy as you think. but don't make it so that you have to go get a road scholarship to be behind the counter. >> i agree. as somebody who bar tended and waited, too. jim, thank you. we will see you in just a few minutes. when we come back, positive drug data sending stocks soaring. we've got the names to watch right after this. be sure to join us tomorrow. allergen's ceo will talk about the takeover by activist.

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welcome back. shares of a couple of stocks jumping this morning. meg has the story. >> we're looking at akilian and regulus. curing all 12 patients after six weeks. treatment times range from eight weeks to 12 weeks, so that's

seen as a potential improvement. we'll see if they can compete. the problem is probably going to be price because these drugs are very expensive. on the other side we've got regulist. the stock falling. it's aimed to give just once and potentially career the disease from there. we've seen some data that drove regulus's shares up 100% in one day because it looked like they were curing patients. but what we've seen today is a higher dose, which still looks good, but on that original dose, they reported that two patients relapsed. so that might be what's driving the stock down this morning. >> okay. thank you. >> thank you, guys. while winning four grammys was the major highlight of sam smith's night, it wasn't his only one. he also teamed up with mary j. blige for a duet on his monster hit "stay with me." the powerhouse collaboration of rihanna, kanye west and paul mccartney took the stage for a live performance of their new

tune and pharell won three grammys on the night including pop vocal performance "happy," which always makes me happy, which he performed. and madonna utilizing bulls and a gospel choir for her performance of her newest single "living for love." i don't know if you saw her outfit on the red carpet but it was -- maybe revealing is putting it politely. and country album of the year winner miranda lambert sang a high energy version of "little red wagon." >> steve pointed out that tom petty gets royalties. which is hilarious. i start singing his song every time i start to sing it. >> thanks for being here. we appreciate it. andrew and i will be back here tomorrow. we'll see you then. right now it's time for "squawk on the street." and good monday morning. welcome to "squawk on the

street." i'm carl quintanilla with jim cramer david faber at the new york stock exchange. stocks a little skittish to start the week as greece's prime minister takes on a rather defiant tone over the weekend. plenty of big earnings this week including coke cisco, whole foods, a bunch more. oil continues to inch back into the 50s as opec cuts their u.s. shale production forecast for 2015, and the ten-year yield right around 1.9. the markets coming off their best week in two years. concerns about chinese