good morning and welcome to worldwide exchange. i'm wilfred frost. >> i'm seema mody. welcome everyone. >> ubs top forecasts but shares fall as they warn it could hit the bottom line going forward. >> volatility is staying with us for the forseeable future. we're looking forward to the opportunities that the pipeline can offer us but we know it's also subject to changes in the market conditions. >> another bank in focus rallies for a third straight day as investors cheer plans to pull out of poland and cut back

operations in russia but the lender insists it's still committed to the region. >> greek ranking stocks rally and leaders await a final proposal from athens on the debt repayment. they tell cnbc the new greek government must hone down it's rhetoric. >> words and sentences have meaning. they have is gravity. you can't talk the same way when you're a finance minister or prime minister than when you were just a candidate. >> crude on the slide amid mixed messages from opec on global demand. coming up we speak to the mexican central bank governor. that's a first about how his country is coping with lower oil prices. >> you're watching worldwide exchange. bringing you business news from around the globe.

>> and we just had the monthly iea report out. they're highlighting the fact that the market rallied in late january on news on a steep job in the u.s. rig count however they say supplies remain abundant and highlight the fact that it will take time to make a dent in production. they highlight five or six years in terms of when that might take effect saying that demand growth has not changed since their last report and global supplies though, have fallen lead by losses from iraq and libya. >> still some bears out there wilfred including citi calling for $20 barrel. the analyst there saying the recent rally in crude prices looks more like a fake than sustainable turning point. so the controversy and debate over whether oil prices have hit a bottom is still up in the air. >> investors saying it's possible it could go back to 20 and we saw oil prices slightly

on the slide today but today for more on the full report from the iea, tune into european closing bell today when we'll speak to the executive director of iea. let's bring in patrick armstrong. patrick great to have you on. let's touch on the oil price first of all to kick things off. now that we've got to at least knowledge amongst investors of supply and demand dynamic will risk assets be able to separate in terms of correlation with the oil price moving forward even if it stays weak? >> it's an interesting phenomenon. in that effect when you step back is it should be positive for risk assets. it's good for the economy and u.s. economy and it's poor if you're a global expert. falling oil prices are pree

money for the consumer. so weak oil prices is good for the economy. >> but if we see some m and a in the energy space do you think the sentiment could actually turn to positive? >> what i'm worried about is you're not getting a supply response. oil is about $10 higher than the march 2016 con rackets than march 2016 contracts. you don't have to worry about the spot so much. you don't have to cut your production right away. short-term you're going to see a bit of a band in oil where we're trading at 45 to $55 barrel. unless they do something that's where we'll be. >> if you had enough confidence to go overweight the sector yet? >> there's still a lot of optimism that we'll see oil at 70 or $75 barrel by the end of this year and i don't think that will be the case.

>> thank you for now. we'll be back with patrick over the next half an hour. german chancellor angela merkel says europe is still waiting for a sustainable proposal from greece on how it intends to deal with it's debt crisis. speaking at a joint news conference with u.s. president barrack obama, merkel said europe was playing a waiting gail. what counted was athens putting a plan together by later this week or shortly afterwards. >> this as reuters reports the head of lazaro saying they have it all wrong on greece. also quoting the defense minister saying if germany remains ridged over a deal on the nation's debt greece can look to the u.s. russia or china. france's finance minister told cnbc he doesn't intend to be a referee between greece and the eu over the bailout talks. let's get to steve who is live with the latest.

>> certainly a bridge builder, matchmaker, call it what you like. he did see room from pragmatism of course. he understood the german stance as well but was hoping in look at future deals with greece there could be some form of common accord. why don't we listen in to what he had to say about greece and talk about it afterwards. >> i'm not looking to be a referee. i'm a player and i'm looking to be more of a go between for greece and the rest of the european nations. there's a voice. there's a possibility from the point where we respect two principles. first of all we have to respect the greek vote. there's been a change of government. it's not possible to ask this government to behave exactly as the last one did. there's rules that exist within europe, within the imf. within the ecb.

within the european union. everyone has to respect the other and that way we'll find agreement. >> so can there be any forgiveness of greek debt? can there be a changing of the terms of the current bailout deal? >> we will have to discuss with the greeks what we call a new program which today could be called a new contract. that will help us to to find collusions in the medium term but we'll also have to discuss with the greeks in the very short-term between february 28th and the time that the new contract begins. from that point of view they need to understand we can't be at odds. we need continuity even if we understand that all previous agreements can't be fully respected point by point by today's greece. >> have the greeks been too confrontational in their approach with the european partners? do you think it's been helpful the way he has been talking about the house of cards falling

down if greece were to fall? >> the greeks that wanted this deep change need to understand we can't just use any words. words and sentences have meaning. they have gravity. you can't talk the same way when you're a finance minister or prime minister than when you were just a candidate. this is a question of personal discipline that is essential to make yourself understood and move forward in a positive manner. >> he is saying while the greeks have to respect what's going on in broader eu he has also spoken about how the germans need to respect the independence of the ecb so he's perhaps ideally placed to be this matchmaker the last answer was interesting how the greex had to be careful how they spoke about things when they're in government compared to opposition. confidence is a very finite thing and can change quickly.

it's come back since 2012 and i think a lot of europeans including the french like the situation in terms of they have qe, the lower euro and bond yields and they're worried about losing some of that. no one will speak about contagion on the surface. my final point is the support the greeks may have explicitly from the powers that be as well. as i was pouring through this last night i did come across this passage which is a report card on structure reform and physical reform which is so important and fiscal consolidation imperatives may be weighing on the structural reform agenda of many countries. for example they can strengthen the pursuit of tax reductions and tax shifting reforms. the point from that is if you're too tight on the physical side of things you're not going to get reform elsewhere. you don't have the leeway for structural reform. they're saying let's not have

too many imperatives on the fiscal side because it condenses structural reform elsewhere. that's why i think there has to be pragmatism and despite this at this moment at the start of negotiations i think there has to be a meeting of minds. back to you. >> thank you. we'll be back for more from steve. but patrick let's get a bit of comment on greece. we heard there that he needs to hear greece tone down the rhetoric. is it on the greeks to do that than the rest of their ked creditors? >> they're laying out a frame work. if you don't play ball with where we want we can go to russia pot are the consequences you'll suffer if you don't give us the bailout that we need and the ecb has to do the same things by saying we aren't going to do any of that. you're going to push your

country into a deep recession if you don't. there will be a meeting of the minds but prior to negotiations you have to do the extreme views and basically show the other side what's at risk. >> do you think the eu or the rest of the euro zone is willing to let greece go to the wall and face exit from the single currency? >> it would be willing in greece didn't moderate it's views but most likely greece will moderate and germany will give in and there's a lot of benefits from not just austerity. you do need growth policies to allow the reforms to give the benefits we're all hoping for. there will be some meeting in the middle but we'll have a lot of volatility because both sides are incentivized going into negotiations. >> do you think investors can be optimistic that a greek bailout deal can come together? surely they don't want to see greece exit the euro or default on its debt. >> that's still the likely scenario. greece stays in the euro zone. there's something that allows the greek parliament to save

face. >> it comes down to the 11th hour? >> it has to. everyone is human. that's what you'll do. you'll wait until it's almost the last minute and then the sides will agree. a lot of volatility until we get to that point. >> thank you so much. patrick armstrong. he sticks with us for the hour. now some headlines coming out of dow jones. there were reports yesterday that apple was raising more money in the bond market. this time swiss frank denominated debt. we're just getting some details from dow jones according to sources apple is looking at a ten year maturity bond that would price at 0.3%. the 2030 bond suggests a yield of 7.5%. this following last week's bond sale where apple's debt sale raised about $6.5 billion of debt. clearly there's demand for apple bonds getting a bite of apple if you will. in terms of why swiss francs?

yields are now negative to you're paying the bank the privilege to own their debt and there's not a lot of top rated corporate bonds. nestle issued if negative yielding debt but still seeing a massive rally despite the low yields. so there's a lot of interest in finding more high quality corporate bonds. apple here indicating apple is looking to raise money in swiss francs in this bond sale. suggested price implies a .3% area yield. >> so we finished down yesterday as a compromise with greece seemed elusive and also issues in ukraine continue to escalate and indeed still there similarly elusive and today we're down but only fractionally down so a bit of resilience given that we haven't seen significant improvement on either of those issues effecting risk sentiment. it's been volatile in the first

hour but we are slightly down and, inteeddeed, just below flat. let's have a look where we're seeing the weakness. ftse 100 down .5%. russia managing to buck the trend up about 1%. let's look at the bonds. the focus is on what the greek bond yields are doing. they did spike yesterday. coming off a little bit off the ten year today. still at elevated levels. it's worth also just pointing to the u.s. ten year because that's been moving around the last couple of sessions. on friday we saw yields tick up after the better than expected payroll report and what that meant for when we can expect rates to go up yesterday and move the other day and today it's fwongone back to the 2% issue.

slightly moving rate hike expectations closer than this time last year. we're at 1.97% on the u.s. ten year, just shy of 2%. let's dive into the greek bonds. the two year at 90 -- well 20% as we look at things in the three year 18.2%. certainly elevated compared to a couple of weeks ago. interestingly we've seen commodity prices do well. talk of more chinese easing there and u.s. dollar coming off it's strength allowing the currencies to do well. it hasn't been u.s. dollar weakness across all countries. that's just above 113. at times last week it did cross 115. so it has moved meaningfully over the last week with the greek issues elevating. what's coming up? >> coming up on the show coca-cola reports earnings

before the bell but will a stronger dollar take the fizz out of its profits? we'll discuss that. as the social media wars continue we'll talk to one venture capital investor putting his previous executive experience at facebook and google to good use. plus as they strike a deal to share superman on screen we ask if movie studios are milking their super heros? wilfred has a lot to say on this. stay tuned.

let's look at today's individual movers. ubs posted profit beating analyst forecasts but they warned going forward off the back of the snb's decision. that pushed share prices down. we're looking at a decline of 3.8% as we look at things. it was over 4%. carolyn ishas more. >> pretty big drop for ubs shares this morning we saw very strong equity revenues and

strong advisory business but on the flip side you have the wealth management business and remember this is something they want to transition into and put more focus on to. we saw result with low expectations and we also saw that the money in flows are disappointing. on top of that cutting performance targets over the next two years and that was maybe expected by analysts but still that is a little bit of a disappointment. they're only expecting a 10% return on tangible equity this year and that may also explain why the share price is down so heavily this morning, 3.73% to the down side. you also mention the negative effect of the swiss franc and the bank this morning warning on the effect not just on the translational and transactional basis but also the effect on the net interest margins. take a listen. >> we have been preparing ourselves for the challenging

times ahead of us in terms of cost and efficiencies. there's no immediate for us to take further actions other than tactically accelerate some of the plans but our plans are still the same. we can take out around 1 billion in cost in 2015. we're working on that. >> is it still a good place to do business? you have a lack of predictability of what the monetary policy situation will look like. >> switzerland was always able to adapt to a strong currency. there are conditions that are still quite favorable but it's true we need to make sure there's no sense of complacency. switzerland needs to also look at the reforms and staying very competitive and so i hope our legislator and politicians will focus on making switzerland still an attractive place to do business. >> you just mentioned the negative impact of the negative

rates on your interest margin but are you also extending them to your customers? >> for the time being our corporate clients are effected. balance is about 100 million swiss francs with us. we have no plans to touch any other clients for the time being but we need to watch the situation carefully and it's all in relation to what the swiss national bank will do. >> let's talk about litigation and regulation. we're still waiting for the doj settlement. do you have any more clarity on when that will come and whether provisions will be high enough? >> we have been always proactively addressing the issues from the past and it is extremely difficult for us to understand and judge timing and resolutions on the matter but we continue to work to find the collusion. >> no news then. what about the scrutiny to structure products. how seriously do you have to

take the reports and that investigation? >> well we always take seriously any request for information by any authorities. we are working very closely with them. at this stage it's too early to speculate or to come into conclusion into what it is without knowing the facts. i think we will see. >> but it's not all about for ubs. they raised their dividend quite significantly and their yield is among the highest in the industry and they have a pay out ratio of more than 50% so this is a positive for investors but apart from that ubs shares underperforming. now off 3.5%. back over to you. >> thank you. we're going to stick with the individual bank stocks moving around today and start with the austrian bank which plans to exit it's polish and slovinian operations. it's part of a bid to move it's

capital ratio after a net loss last year. shares are up strongly off of the back of the news. the bank ceo said senior management will not receive bonuses for 2014. meanwhile new york regulators are monitoring the electronic foreign exchange program as part of a wider currency probe according to reuters. risk advisors has been higher. the report said it's off 1.4% on the news. a u.s. official warned that hsbc could see a deferred deal with the u.s. department of justice reopened. the agreement struck three years ago shields them from tax evasion laws and that could change in light of separate on going probes. the stock is off 2.2% compound compounding a second day in a row of disappointing news. let's get back to patrick armstrong and talk about the broader banking environment in the european union. does quantitative easing change the situation and make the

valuations attractive? >> it has a positive and negative. it makes the banks attractive because it's going to create financial stability. that's the goal of quantitative easing. the yield curve is a bit of a negative for the banks but when you're trading below book value, long-term the benefits trump anything else. >> regulators have been trying to push banks to increase the money they're sitting on. many of these banks are still recovering from the crisis six years ago. >> yeah, some banks are in need of capital. some are raising dividends so that's not a sign of a bank that needs capital. >> you have ubs saying they're going to double their dividend payout but you look at greek bank which is investors are selling because of the fear that after ecb said they're not going to accept greek debt as collateral. >> i think i would gravitate toward the biggest, the multinational banks, some of the banks that have investment banking revenues i think they did well. the dollar revenue is good for

that. it's the wealth management that was very weak today. >> you also have them saying -- reports indicate they may look at selling the retail banking business. >> it's one of the banks that probably does need a bit more capital. it's trading at half of book value so anything that it does would be diluted. >> we have about a minute left and itted to get you one of the big calls in europe which is domestic germany and profit you think benefits from qe. >> it's inevitable almost. whenever you have an interest rate policy you end up getting a property bubble of some sort. they're able to borrow at 2.5% at properties yielding 4.5%. that's an attractive business model. so a play on residential property in germany so you'll get a nice yield and capital appreciation this year. >> we'll leave it there. chief investment officer at plurimi investment managers.

thank you for speaking with us here on worldwide exchange. china slapping qualcomm with the biggest ever fine. more on the antitrust dispute. that's coming up next.

. ubs earnings top forecast but shares fall as the swiss lender warns volatilities could hit the bottom line going forward. >> staying with us for the foreseeable future. we are looking forward to the communities that the pipeline can offer us but we know it's also subject to changes in the market conditions. >> raiffesen bank rallies for a fourth straight day as they cut back operations in russia but the austrian lender is still committed to the region. >> bond yields fall as leaders await a final proposal from athens on its repayment. the new greek government must tone down it's rhetoric. >> words and sentences have meaning. they have gravity. you can't talk the same way when

you're a finance minister and prime minister than when you were just a candidate. >> g-20 finance ministers meeting in turkey. oil prices back on the slide amid mixed messages from the iea and opec on global demand. >> and of course investors over here keeping an eye on the fall out in terms of the greek negotiations and whether a plan will be put in place between leaders and policy makers. it's a down day for european stocks. germany and france also trading in negative territory. the italian markets trading flat at the moment. now of course oil still a big part of this story. of course some analysts say that perhaps it's headed lower and we have not hit a bottom despite the rally in oil pies over the past one week. in today's trade it's a down day for oil bucking the upward trend we saw in yesterday's trade. light crude trading at $52.07

down about 1.5%. the international gauge, brent crude trading at 57.79 down in today's trade. we have seen the u.s. ten year move around following the strong result on the nfps on friday. those yields tick up to close to 2% yesterday. they move back away from that level on greek fears and today we're just shy of 2%. 1.97. germany still very low. you can see similarly low yields in the rest of the euro zone. greece is just shy of 11% this morning. a quick look as well interesting to point what the euro has been doing. it's down .2%. the middle of last week it did touch 115. it has been quite volatile as situations in greece move around. otherwise, nothing major moving in the markets today. >> and geo political tension is something investors had to

factor in. they put more russian separatists on the sanctions list until key talks tomorrow between germany, france ukraine and russia. president obama will be absent from the meeting speaking along side the german chancellor angela merkel yesterday at the white house he said he would wait before making a decision on arming ukraine's forces. >> i have consulted with not just angela but will be consulting with other allies about this issue. it's not based on the idea that ukraine could defeat a russian army that was determined. it is rather to see whether or not there's additional things we can do to help ukraine bolster it's defenses in the face of aggression. >> meanwhile vladimir putin arrived in egypt for talks with

his counter part. he is a key supporter of the egyptian president and they're likely to focus talks on boosting trade and military cooperation. chris joins us here in studio. a pleasure to have you on. busy time for putin. what do you think his main objective is? is it to increase or boost pianoties between the two countries? >> yeah but a big part is to show everybody else that russia is still relationship vanltevant and almost like that's part of the negotiations. don't exclude russia. they have access to syria and egypt. we know the north korean leader is planning to visit moscow in may. >> in the meantime he's losing friends especially in the western world. >> yeah that's clear. regardless of what happeneds in terms of sanctions and the economy that's something we'll have to get used to for quite a

long time t. fall out from the crisis will be a much cooler like reset i guess if you want to use that phrase but a much cooler relationship with europe and the u.s. on going for quite sometime. now our view is that won't impact business once the crisis ends but clearly politics has now changed for a long time. >> chris of course germany and france trying to negotiate a peaceful end to this with mr. putin which looks elusive. it seems like the international community has already written off crimea. are they going to consider doing that for that region as well? >> no the whole focus is now the region which is that crimea has gone from it. the russian views the region as the line in the sand and this is an issue building in russia for a couple of decades. not just over the last year. as they see it it's been the encroachment of the west and it's going to -- like not

properly recognizing what moscow sees as it's legitimate interest in these countries and therefore it's essentially chosen the region as the point where you have come this far, no further. if the negotiations or proposals on the table do not include some sort of independent self-determination or recognizing the donetsk region there will be no deal as far as moscow is concerned. >> what risk of some kind of element of that is included in the deal. what risk is this is putin testing the waters to see what he can get away with and will follow similar excursions into other baltic areas. >> there's no evidence of that from any of the rhetoric or any of the actions. if that was to be the case and clearly russia would have done this i think, a very long time ago. no this is a very specific issue and moscow basically says they want to like create a

buffer on the major western border to block may toenato encroachment to the border. it's very specific about this region. i don't see any threat of escalating into other countries or regions. >> but more than 5,000 people have been killed in the fighting in ukraine since it began in april of last year. do you think the u.s. getting involved in russia-ukraine battle will help the situation? some say it will lead to a bigger mess if you will? >> that would be my view. again listening to what i heard in moscow and talking to people that if the u.s. were to send weapons to the ukraine army i think russian would immediately escalate whatever it gives to separatists and you would end with a long drawn out conflict where more people would tie. the best talks is clearly the talks between europe ukraine and russia and minsk and all three parties now have like

apart from the tragedy of people dying, they have very strong economic vested interests. there is perhaps a window of opportunity for moscow. we know the economy is deteriorating fairly rapidly. 15% inflation at the end of january. europe might feel president putin is now in a more vulnerable position. might be inclined to do a deal. >> you would think. >> you hope so. you crane is broke and needs the money but in europe we keep hearing about greece and the conflict and like the russia sanctions which will come up in december that could certainly be a point of further kind of disagreement within europe so i think it seems like the countries like germany and france are keen to resolve that well ahead of the event so that it doesn't become another devicive issue in europe. so all three parties sitting at the minsk table tomorrow do have strong vested interests in trying to bring this to an end. >> we'll be watching those developments. a pleasure to have you on.

thank you. >> thank you. >> and we're giving you flashes of the u.k. retails that have come out. good news overall for the industry saying that grocery market sales were up 1.1% but the individual companies bad muse for tesco whose sales were up .3% and littles up 14.2%. market share rises also coming through for aldi. morrison tescos. so success in the smaller players and problems continuing for the bigger players. now qualcomm is paying nearly $1 billion to resolve china's antitrust probe ending a 14 month investigation. as part of the deal the company will lower royalty rates in china which could help local smartphone makers.

eunice is in beijing with all the latest. >> hey, guys. well this is the largest fine in china's corporate history but even so analysts in the i.t. industry said that given the current environment in china and the pressure that a lot of american tech companies are facing had is a pretty mild penalty. now, qualcomm has been the target of a 14 month investigation. they were accused and found guilty of breaching antimonopoly law and the regulators were most disturbed by what they saw as unfair and excessively high royalty fees. qualcomm made a tremendous amount of money in this country. they generate half their revenues here. a part is by selling chips but a large part is by earning money off royalty fees from their patents. so as part of the deal qualcomm has to recalibrate the formula at which they charge their

royalty fees here so chinese companies are going to get a better deal. now this has raised several questions. many analysts are wondering what are the implications for qualcomm in other markets where they're having antitrust issues such as the united states and europe and one overriding feeling among analysts here counter intuitively is this is a bit of a relief because there's so much uncertainty. a very important market and the ceo came out and said now he believes that the company could take advantage of china's growth and the company has raised their estimates for earnings as well as revenues if you strip out the penalty. guys. >> thank you eunice for giving us that story. of course a big one in the tech world. now switching focus. michelin is tackling price

competition in china. just take a look at the price action in today's shares trading down by around 5%. help us understand what's going on here. >> well the market reaction is not really surprising given that mitch michelin was unable to recover. sales in volumes grew by only only 0.7% last year. that's below the target of 1 to 2% growth. strong competition had a negative impact on prices. almost 600 million euros for the negative impact last year. speaking to cnbc today, they say that michel will combat cheap chinese and indian tires while it has the ability to remain on the segment. >> when you bring innovation in this market it's still quite a very important premium segment

that is waiting for innovation to come and that's why we have the ability to still keep our market in the premium part. we have second offer where we compete with people to give to our distribution network. michelin product with different brands of course so that we are able to beat the offers on their own ground. >> now the lucrative segment of truck tires, michelin faced a 9% contraction in europe. so that's really positive. in terms of cost reduction michelin is going to increase the plan. it's targeting an additional 200 million euros in cost savings this year but as we're saying

the numbers were below expectations and really disappointing. that's why the stock is the biggest decliner today. over to you. >> thank you so much. >> seema just as we were looking at that i didn't know before this that michelin stars for restaurants gets it's name from the tire company. >> you would have never known there was a link between the two. tire company sponsoring -- >> founders years ago published the first edition as a guide for french motorists going around the country for where they should stop to eat. do you know what a 3-star restaurant is? exceptional cuisine worth a special journey. or in french -- [ speaking foreign language ] >> there you go. >> shaking his head i can tell. >> did you know that's a michelin star rated restaurant. >> it deserves one. it deserves one. >> maybe. shares in swedish security

camera maker axis are rallying this morning after cannon offered to buy the firm for $2.8 billion. the board unanimously supported the deal. the big mover today up better than 48%. >> japan's soft bank reported a drop in third quarter earnings hit by costs tied to sprint. let's get out to the nikkei with the story live from tokyo. >> hi wilfred. they posted operating profit of $6.6 billion for the april through december period down 16% from a year earlier. costs of cutting jobs at sprint weighed on profits. sprint is slashing jobs in it's reconstructing effort. net profit came in strong. up 16% from the previous period to $4.8 billion thanks to chinese e-commerce giant

alibaba. they have around a 30% stake in alibaba and helped reach net profit. softbank kept the full year forecast for the year ending in march unchanged expecting revenue of $67 billion and operating profit of $7.5 billion. in the meantime the nikkei is reporting today that softbank will team up with ibm to provide artificial intelligence services in japan. ibm already solves it's computing platform in the u.s. and europe and it's the first time to bring ai to another market. they'll teach japanese to waltz in and after learning to speak and think in japanese softbank will sell a japanese version of it and will also hope to integrate with the social robot to offer services in business such as retail t report.

still to come on the show greece is still the word as debt negotiations drag on but will a deal be reached before it's too late? >> greece is still the word. i like that. >> yeah.

>> let's have a little fun here on worldwide exchange. a major hollywood deal must be in the works. sony pictures and marvel reached an agreement to share spider man on screen. he'll appear in the next captain america movie out next year which is being produced by marvel. they'll co-produce the next movie financed by sony which will be released in 2017. that won't feature andrew garfield in the title role. disney is trading higher in today's trade. >> marvel. >> or marvel. >> we do want to know on this topic. we won't to hear from you. are the studios milking the super heros too much? i have to say news of a superman and batman movie disgusted me. >> why. >> they can't share a movie. >> let's bring the powers together in one film united. could provide a new story plot

if you will. >> i don't like the avengers one. it's very successful but there's too many super heros in the same one and the toby mcguire first one was great. the third one was rubbish and then they bring out andrew andrew garfield and repeat the same movies. >> there's been nine additional superman movies have been made. how long can the story go on for? it's time to change up the plot and add new characters. >> i agree the simple ones are being milked too much but i don't think merging them makes sense. the last batman movies were awesome. i can't picture him with superman. >> do spiderman versus batman. >> superman my favorite as a kid. the last three batman movies were epic. we are being told to move on by our producers. do e-mail us worldwide at

cnbc.com. our personal handles are on the screen as well. >> just getting headlines or flashers. conditions of funding liquidity are important. he says it's important to see if intended effects of qe are the ones we see in reality. interestingly enough we are look at the euro weaken against the dollar which interestingly enough is the opposite of what we have seen over the past week. the euro was at 114 at one point last week against the u.s. dollar. >> let's look at central banks because there's flashes coming out of the chinese central bank saying they will keep monetary policy prudent and will continue to fine tune policy in a timely manner. we'll keep policy not too tight or too loose and we'll use quantitative and pricing tools for policy and saming to keep the level appropriate and credit growth reasonable. so these releases are them sitting on the fence and saying

that the moves they have been making are justified and they won't go too far. with the benefit of hindsight we'll only know the answer to that question. >> they'll continue to bet on intervention. that's driving markets higher. let's talk about germany because angela merkel says europe is still waiting for a, quote, sustainable proposal from greece on how it intends to deal with the debt crisis. speaking at a joint news conference with u.s. president obama merkel said europe is playing a waiting game. what counted was athens putting a plan together by the time of the euro group meeting later this week or shortly afterwards. >> this as reuters reports the head of lazaro is advising greek on its negotiations. they have got it all wrong on greece. also quoting the defense minister saying if germany remains ridged over a deal on the nation's debt greece can look elsewhere to the likes of the usa, russia or china. let's get more on this topic.

we're joined now by a senior european economist at morgan stanley. thank you for joining us. let's kick off on the greece issue and, you know this compromise seems as elusive as ever today. who is the one to make the first significant move to get us to some kind of agreement? >> i think the first step is for greece to sketch the main features of this proposal. it's not just about getting relief some form of that soft official sector involvement on that front i believe the european policy makers will be open especially because they've done that already twice with the bailout loans. greece also as plans to implemented and what type of surveillance and conditionality they're willing to accept. we will not get a deal so

quickly. tomorrow tomorrow's euro group is just the beginning of next week or several weeks before we have a final proposal on the table. this process is likely to be far from small and agreement may only come after significant pressure. >> the ecb is playing hard ball. the germans aren't backing down. when can we expect a resolution to be made when it comes to greece's debt proposal? >> there's to be a middle ground really. one way to exert pressure is the banking system. we see the greek banks have emergency liquidity positions. and as it continues or even shrinks for awhile. it may not be there. that, if you want is the type

of pressure. on the other side there are compromises. there's filing of some source because they have done that already. >> let's bring it back to market with this issue out there, is contagion underestimated and would you be going long european equities? >> our strategy reasoning is that we now have more of a backstop. it's not just ecb qe. we also have the esm which could help stop other economies if there were contagion and on the other side the exposure to greece is so much less because

losses have already happened. there's been a private debt restructuring already a couple of years ago so greece is perceived to be less systemic. it's no longer systemic in an extreme scenario. there's likely to be contagion and policies to put in place and first order effects. first order contagion, the perception is that greece is less of an issue. >> thank you for joining us. senior european economist at morgan stanley. the ela is only for very short needs. of course if that were moved that would increase the pressure on greece significantly. >> coming up on the show it's time to break away from the herd according to our next expert. defensive stocks not the way to play stocks in 2015. we'll discuss that next, after this break.

qualcomm settles. the mobile phone chip maker agrees to pay $1 million o to bring a run to the energy probe. >> the swiss lender warns that fx volatility could hit the bottom line going forward. >> the only visibility we have

is that volatility is staying with us for the foreseeable future. >> we're looking forward to the opportunities that the pipeline can offer us but it's also subject to changes in the market conditions. >> apple opens the books on the first ever swiss bank bond sell as it takes advantage of low yields and solid demands for swiss debt. >> you're watching worldwide exchange. bringing you business news from around the globe. >> another choppy session on wall street. stocks ending lower but wilfred the real market action is being seen in the bond market. we're looking at the u.s. ten year yielding 1.9%. the fifth straight session of gains for the treasury market. not the case when you look at european bonds. we're continuing to see massive demand for european bonds despite this ridiculously low

yields we're seeing. swiss debt yielding negative yields. investors still plowing into that debt. there's a big difference when quantitative easing hit in europe. yields already so low is there going to be the same demand for higher yielding assets because at the margin the move has not been so pronounced. i think it's interesting as you point to the u.s. ten year yield the move we saw on friday went from 1.8% to above 1.9% so suggesting at the margin that people did think the strong jobs print does increase the chance of a rate rise slightly earlier than we have been expecting over previous weeks. >> taking on a more risk on sentiment when looking at equity markets. in terms of how we're trading today look at u.s. futures pointing to a higher open. the dow up about 29 points. nasdaq up about 10. s&p 500 up about two points. a lot for them to digest this morning. china inflation number consumer

inflation increasing to its slowest pace in more than five years in january spooking fears over whether china will enter deflation at some point and putting more focus on the central bank intervening to provide the easing measures to stimulate the economy. the focus, a volatile day of trade. we ended lower given the greek concerns in the market. a mixed day of trade. the ftse 100 down about 20 points. xetra dax lost about 2% in yesterday's trade. cac 40 up about 9 and we watch them come to a resolution before the deadline on february 28th when greek's debt is due we're looking at it up about 2%. but it's been a volatile weak for greek equities as well as in the bond market. yesterday of course investors not only selling greek equities but bonds as well and that

results in yields spiking. >> absolutely. worth pointing out the flashes we had over the last 20 minutes. the ela is only for very short-term needs. since the ecb with drew the main funding the ela is what they're relying on. if it was withdrawn as well that would be catastrophic for the greek banks. it's interesting to hear him comment on it. let's look at the bond markets as seema mentioned earlier. yields tick up over the last week or so and just shy of 2% or so. the move on friday. the most pronounced in terms of individual day moves following that. it's lower than where we are in japan. 10.7%. we're lower than yesterday around about 11%. still very elevated of course compared to recent times. let's have a look because the euro lid .4% today.

it's fallen below 113. the 114 level for awhile. it has weakened over the last five sessions or so given what's happening in greece. elsewhere, the rouble only .5%. 65.5. quick look at commodities and oil prices sliding a little bit today. 52.4 off 8% for wti and brent is at 58.1 and gold which had recovered close to 1400 settling back in the last week. so it's basically flat today. seema. >> we're getting slashes out from the china central bank. the central bank saying that the china economy faces relatively big downward pressure. it will prevent the slide in economic growth but will also avoid excessive credit. the china central bank saying

it's going to keep it's rate basically stable at reasonable balanced level and will increase flexibility. this coming after the china inflation data increased at the lowest pace in more than five years in january. analysts now saying whether it justifies the need for more stimulus from the central bank and as you can see here some supportive comments coming from the china central bank. >> let's bring in our next guest to talk more about markets. ken we like the headline in your notes, it's time to break away from the herd. does that mean the momentum we have seen and things that have done well last year and early this year is set to cease? >> we've seen so much action. this risk on and risk off in things like the s&p 500. this is where all the money flows in and out of and we're going to start to see i think a

broadening out of the market and what many refer to as a stock pickers market. that's what i meant by breaking away from the herd. the dollar strengthening has some negative effects on exports out of the united states or the multinationals if you will and smaller companies aren't that exposed so they have the chance of really benefitting here and some of the broadest based companies that aren't the big, big multinationals will also be the beneficiary of lower energy prices. it's going to become a stock pickers market and it's time to look away from the herd for yields. >> tell us where you would put money to work this year? it was in defensive sectors like utilities and energy that outperform -- well not so much energy but crew tillutility has a dividend yield much higher than the average of the s&p 500 but

if you're expecting rates to increase this year given the better than expected jobs report where would you put more money? in technology? >> i like technology for sure but there's so much money hostage, if you will in equities because it's earning nothing in the fixed income markets. so i still think that utilities and some of the higher dividend playing, what they call the aristocrats. the companies continuously able to raise their dividends over the decades are going to keep investors attention so i wouldn't be looking away from those but i do think that you look at certain things in the cap world and technology is a good example of that and i still believe consumer stocks have to be looked at here because we get this huge oil dividend coming in on a global basis they'll be able to buy more stuff instead of putting it in their gas tank. that speaks well for companies that deal with consumer

products. >> let's just touch on the oil price. do you think we're past the point where risk assets are correlated with moves in the oil price? >> not at all. the market is up and that's kind of crazy when you think about it. when oil is down there's a hand full of countries and sectors that that's a negative for but it is overwhelmingly a huge global positive that energy prices are down without kind of enriching very small segments of global economy so the idea that the market is selling off with oil is showing how correlated this market has become when everyone is looking for an excuse to take risk off with anything they he can think of. it's the investors that pushed far out on the risk scale so i think when oil comes down and the market if it comes down

with it those are buying opportunities because the macros that talks about are extremely positive for investors. >> some investors saying that citi says oil may head to $20 barrel and despite the rebound over the past couple of days oil prices are dropping in today's trade. we'll leave it there. thank you for your time. let's give you a run down of what to watch this trading day. the national federation of independent business releases it's monthly business survey. small business maybes up 90% of all new hiring. at 10:00 we get december wholesale inventories and the job openings and labor turnover survey. jeffrey lacquer is speaking today. as for earnings look for results from coca-cola, cvs health kkr, moison coors starwood and

western union will be after the close. >> >> europe is still waiting for a sustainable proposal from greece. speaking at a joint news conference with barrack obama merkel said europe was now playing a waiting game. let's get to steve who is in istanbul where they're meeting and he has been speaking about the greek crisis. steve, over to you. >> yeah well let's just say a couple of points about what she has and hasn't been saying. she's saying it's up to greece. to a certain degree she's right but the rest of europe and germany in particular aren't impotent in the meantime we know there has to be some form of pragmatism as well. there are concerns that extreme austerity does not create the right environment for physical and structural reform. the best way forward rather than

having the effects is for some form of pragmatism and he's a man that's pretty practical about this. france had it's own issues with the commission as well because it's been on the border line and breaking stability itself. but of course trying to get down to the 3% limit itself so who better than to perhaps provide the matchmaker role. i spoke to him earlier. >> i'm not looking to be a referee. i'm a player and i'm looking to be more of a go between for the rest of greece and the european nations. there's a possibility from the point we respect two principles. we have to respect the greek vote. there's been a change of government. it's not possible to ask this government behave as the previous one did. the second is that the greeks have to know there's rules that exist within europe within the imf, within the ecb, within the european union. everyone has to respect the

other and that way we'll find agreement agreement. >> interesting that the greeks have been asked to have a primary surplus when there's a budget deficit of over 3% at the moment. the other interesting thing he said is when he talked about the language. the language when you're in opposition can be very aggressive. we know this from domestic poll sicks around the world as well but when you're talking to an international politics as well the language changes. you are achieved some of your goals and you have to start dealing with the international partners as well and the point about the greeks having to change the language and not having done that so far is important because the fragile recovery in europe without the economic growth and jobs

recovery as well has come about and i think what others are very worried about is the greek language about houses of cards falling down and what have you. that's the great concern. that's what they're all worried about. back to you. >> thank you for that. in europe we have rules. >> that's a print out. >> exactly. >> online and on television. >> we are covered here on worldwide exchange. >> exactly. coming up here on worldwide exchange, ubs delivered stronger than expected earnings but find out why shares are sharply lower after the short break.

apple opens the books on its first ever swiss frank bond sale. the debt is expected to fetch low yields in a two-part sale.

beating analyst forecasts but the lender has warned over currency volatility going forward off the back of that snb's stock decision. carolyn joins us now. carolyn help us understand how that unexpected move from the swiss national bank impacts the bottom line going forward. >> well obviously they have a big cost base here in switzerland but on the other hand it's a well deserveiversified bank across the world. they're not the main con

certain. it's very positive but you have the wealth management business. this is the business ubs wants to focus on that was below expectations on the bottom line and net new money in flows of only 3 billion of swiss francs for the quarter and then on top of that ubs cutting the returns on equity forecasts and dropping the margin target completely and then we haven't talked about that yet but litigation is one of the well-known culprits and head winds for ubs and there's still the outstanding, that doj investigation into the fx manipulation but no news on that. take a listen. >> words and sentences have meaning. they have gravity. you can't talk the same way than when you were just a candidate. >> you know what i don't think that was him. i think that was the french

finance minister. i'm sure we have the tape here somewhere. he would be saying that look there is no news on the doj investigation right now. they're waiting to see what sort of a fine they would be paying they settled with the fca here in switzerland and then there was another form of tax evasion potentially and also an investigation on the fx side so a lot of head wind that they have to deal with by going forward in 2015. back over to you. >> thank you so much. we'll get you that in just a second but in the meantime, yeah, ubs. doubling their dividend. quite a big move there. >> still up sharply though. >> let's talk more about other news out of switzerland. we'll talk about the apple bond sale because apple has planned to raise money in this swiss frank bond market. reports indicate that apple is

planning a two-part bond sale. ten year maturity at 14%. a 15 year maturity a bond that will mature in 15 years. that yield is indicating to be at .75%. these bonds should become active this afternoon but in the meantime reports indicate that apple is planning a swiss franc bond sale following that debt sale last week where apple raised $6.5 billion. so clearly a lot of demand fordebtdebt. >> deal to share spider man on screen we ask if movie studios are milking their super heros too much. coming up on worldwide exchange.

the social media wars are on as facebook and twitter reported pretty much better than expected earnings last week. the question is where should you put your money? we're joined by christian hernandez, managing partner at white star capital. a pleasure to have you on. now i know prior to raising money for this venture capital fund you lead took's international expansion so reporting better than expected earnings held by mobile advertising revenue but there's questions around what facebook is going to do with acquisitions made last year.

what's how is this going to be the bottom line. >> it's an amazing transition into becoming a mobile platform. 745 million daily active users on the mobile platform but facebook isn't in the blue box anymore. it's a new mat form that doesn't exist yet. it's being created. it hosts 500,000 applications on top of it. i call it the federation of platforms. today you only monitize one. what happens when you do that in the future. >> i still don't understand. are we going to be wearing this mask mask, helmet, and liking photos using that? >> the best experience is a game in which you control the game with your eyes. you focused on a specific point and moved you to it.

>> if we look at facebook and google and youtube s. that pointing to the fact that in order to mondo that it's focussing on it moving forward. >> it's a brand new product but i'm more interested in looking at east rather than west. if you look at the platforms in the east these companies built it on top of messaging. you have commerce and data and gaming. they have been selling hundreds of millions of dollars in digital sticking in decades. >> are you looking for new opportunities in china now that you started the venture capital fund? >> we're focused on western europe and north america but china is fascinating. people think about $10 billion companies. >> they also say some of the best innovation comes during an economic downturn. would you say that's the case when looking at europe?

>> the vie bran sy you're seeing in the ecosystem where entrepreneurship is a choice i joke it's something you mother might want you to become and then a fairly consistent basis across the region. it's a european company and then move to the u.s. and it's accelerating. >> i want to touch on apple if we could quickly. a lot of focus on the apple watch as a new product. i'm surprised we haven't seen more meaningful development in the apple tv offering. the smart tvs and internet of things their rival samsung is pushing hard. will apple follow suit? >> i think smart tv is where frankly a marketing gimmick. if you look at a number of people that enable the internet con neck connectivity is low. i get the functionality for $79 instead of $1,500. there's speculation over whether they will or will not do a

television. the apple watch will be a big story from samsung and apple. >> but if you buy the smart tv you don't want to keep it in your bedroom now that it's listening to what you're saying. i don't know if you saw that yesterday, privacy notice. talking to us about tech and in innovation innovation. thank you so much. still to come on the show is coke still it for investors? they report fourth quarter results in about two hours. we get a preview on the key issues facing coke and it's biggest rival pepsi after this. the future of the market is never clear. but at t. rowe price we can help guide your retirement savings. our experience is one reason 100% of our retirement funds beat their 10-year lipper averages. so wherever your long-term goals take you we can help you feel confident. request a prospectus or summary prospectus with investment

information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence.

it is 10:30 a.m. in new york. 10:30 a.m. in london and 5:30 in new york. >> here's the headlines from around the world. >> u.s. futures are higher after a two-day losing streak. china inflation dips to a five year low weighing on energy stops here in europe. >> qualcomm settles. they agree to a $1 billion settlement in china's antitrust probe. >> shares fall as a swiss lender warns that fx volatility could hit the bottom line going

forward. >> the only visibility we have is that volatility is staying with us for the foreseeable future. we're looking forward to the opportunity that the pipeline can offer us but we know it's also subject to changes in the market conditions. >> apple reportedly opened the books on the first ever swiss bank bond sales. they slow demand for swiss debt. >> you're watching worldwide exchange. bringing you business news from around the globe. >> if you're just tuning in to worldwide exchange thank you for joining us. a mixed day of trade yesterday. stocks posting modest losses in tandem with european indices. in fact in yesterday's trade we did see the dow utility sector

posting a 1% move to the down side after friday's 4% loss and a little bit of selling pressure if you will. a lot of focus on the acceleration in jobs growth. does that put more pressure on janet yellen and the feds to raise rates sooner than expected. after yesterday's move to the down side we're seeing a bit of a rebound here german markets were one of the worst performing markets yesterday french markets up about 14 points and after the move to the downside for the greek index today a little bit of a rebound up about 2% but of course the on going negotiations between greek leaders and european policy makers still in focus for investors that greek debt deadline coming up on february 28th so that of course is in focus now taking a look at oil that's been a big story

today after the seven month sell off in crude prices. analysts say we may be hitting a bottom. a recovery seems inevitable but city analysts are saying that oil could be headed to $20 barrel. a mixed opinion on where oil is headed in terms of today's trade. the oil complex is moving lower. wti crude trading at $52 barrel. down about 1.2%. brent crude below $58 barrel. down about .6%. >> so the oil market lacking fizz today. what about coca-cola? well it reports 4th quarter results at 7:30 a.m. eastern time. the company continues to face slowing sales. the rival reports q-4 numbers the next day.

shares tropical waved about 3% this year. we're joined now by the managing director to to preview the numbers. let's kick off with coke. is this a story of very different comps for coke depending on the region we're looking at? >> it is. currency will be the biggest issue far and away this quarter. >> let's dive into that first of all then. what are you expecting on the fx front? >> look they talk to us about the guidance in late december it's about 8 to 9% worse and there's a bigger impact in the bottom line than the sales line so numbers could be 10 to 12% worse in terms of the ride. >> slow down in he emerging markets is that expected to impact the bottom line this

quarter? >> it's market by market. a lot is already in the base. in a lot of emerging markets there's quite a bit of inflation and companies are trying to offset the dollar. from a sales perspective it will be okay. the volumes will be soft but pricing will be healthier. >> we're looking at the u.s. economy rebounding. could that offset the slow down in emerging markets? >> it will help quite a bit. in the u.s. this is the first time in awhile we've seen some consumption increases but more importantly coke is pretty universally looking to go to smaller pack sizes. they're trying to get the price per unit up. >> i always wonder how does coke stay relevant amidst the health conscious audience making the broader shift away from sodas. i'm all about the kale banana smoothie. >> i have quite a few. i must admit.

it's keeping demand up? >> they launched this product called coca-cola life. it's naturally sweetened and a mid calorie drink. instead of artificial sweeteners they use sugar and stevia. it's very soon so we can't tell yet. so this is one of the things they're working on. they also took a -- they're investing in green mountain coffee. that's a healthier choice in term of what they're looking for to build up the wellness part of the business. >> let's move on and talk about pepsi the rouble will play a big impact on earnings. >> absolutely. it's a big business. it's 7 or 8% of pepsico sales. they bought a very big business in russia three or four years ago now. they will have quite a bit of pricing like everything else there in russia so maybe that

offsets some of the pain and this quarter might be a false positive in russia because there was a lot of buying across categories that had the big price increases. it might approximate a situation where the volume pull back in russia hasn't happened yet because you know again i think a lot of folks including distributors probably see these big price increases coming down the pipe so maybe they bought ahead of time. >> final question. rather than coke and pepsi your top pick is coca-cola enterprises. tell us why that is? >> there's a lot of ways to win there. it's the comparison. there's optionalty there. they used to have an option to buy the german bottle that coca-cola owns. that would be an interesting acquisition for them. i just think when the dust settles on currency there's a lot of ways to improve the

earnings at a very reasonable evaluation. >> thank you for joining us. much appreciated. bill schmitz. >> microsoft and amazon are ending a contract dispute related to the use of samsung's technology while using windows technology. it relies on android and it could clear the way for more cooperation on window's phones. let's see how they're trading right now. microsoft basically flat at the moment. samsung down about 1.2%. >> qualcomm is paying nearly 1 billion to resolve china's antitrust probe. they'll also lower royalty rates on patents used in china which could help smartphone makers. eunice has all the deals live from beijing. >> thanks a lot wilfred.

well that $1 billion is a big number. in fact it's 8% of qualcomm's 2013 sales but at the same time a lot of analysts say given the environment here and pressure a lot of american tech companies were facing it could have been a lot worse. let me run you through what happened here with qualcomm. qualcomm was the target of a 14 month investigation. in fact they were accused and now found guilty of breaching antimonopoly law. the regulators today said they were most troubled by what they saw as excessively high royalty fees. the company made a tremendous amount of money in china. they derived half of their revenues from this country and the incredibly huge smartphone market here but they make money two ways. one is that they sell the chips but they also make a will the of profits off of the royalty fees for their patents and this is what is going to change. they agreed to change the way

they calibrate their royalty fees here in china and that results in chinese companies getting a better deal. there's been a lot of questions raised about this because many people have been wondering how this is going to impact other markets such as the united states and europe where he they also face plenty of antitrust issues. >> thank you so much for bringing us that story. in other news my spidey sense is tingling, a major hollywood deal must be in the works. sony pictures and marvel reached a deal to share peter parker on the screen. he'll appear in the next captain america movie out next year which is produced by marvel. marvel will co-produce the next spiderman movie which will be released in 2017. it won't feature andrew garfield in the title role. >> there's sony and walt disney's trading prices at the moment.

both up slightly so far today. on this topic we do want to hear from you. are studios milking their super heros too much? join in the conversation here by e-mail. we'll get in touch via twitter at cnbcwex and my views are strong. i think they have gone way too far. we saw it with james bond in the pierce brosnan age. they were low grade and then it took years to recover again and they have already done that with spider man and i'm very fearful of this batman plus superman movie. >> i think if these characters are working for their audience continue to milk them and see how they can help drive profitability going forward. look at disney with elsa and frozen. just let it go wilfred. >> very good. very good. >> no i think it's obviously proving good profits in the short-term. i think if they overdo it it will hurt them in the long-term. batman and superman can't share a movie.

>> there's room to come together and unite and create a bigger plot. >> what's next? james bond along side tinker bell? >> those are more disney characters. >> coming up also here on worldwide exchange a trio of u.s. retail chains are sounding more positive about the holiday shopping season. we'll look at the factors after the break.

welcome back. apple in focus. the tech giant is planning a swiss franc bond sale. reports indicate a two-part bond sale. a ten year bond and 15 year bond that will yield .75%. this follow last week's sale where it raised 6.5 beside. with this bond sale they'll be able to take advantage of low yields in switzerland plus there is demand for highly rated debt given that we're looking at negative yields on swiss debt at this moment. apple shares up about .6%. >> if it does a ten year .3 for a corporate. extraordinary and understandable why they would want to do that.

>> a trio of u.s. retailers just saw happy returns from shopping season which is leading them to raise their outlooks. let's get more from landon standing by at hq. >> good morning. let's start with gap. they're boosting the full year outlook for 2014. they're pointing to strength in the fourth quarter and benefits from a lower tax rate. same store sales rose 2% during the holiday quarter driven by growth at old navy although sales at the same sake brand fell 6%. but also fell 3% in january while analysts were increasing a decrease of 1%. aeropostale is narrowing the range of its suspected 4th quarter loss thanks to better sales and cost management in january. they see a loss of 1 to 6 cents a share. same store sales also fell less than expected down 9%.

they said the cfo mark miller will now become coo taking over responsibility for supply chain management, real estate and logistics. the company will report earnings on march 12th. urban outfitters with a bigger than expected increase up 11% to just over $1 billion topping analysts forecasts. the ceo says promotional activity was higher and adds the retailer which also operates the brands is entering the spring selling season with a clean inventory position. they report results on march 9th. shares of gap fell in after hours while they surge checking those shares today in europe gap continues lower about 1%. aeropostale is trading lower and urban outfitters is up 5%. back to you. >> landon as ever, thank you very much. now if you ever wanted to drive like a billionaire you now have a chance. warren buffet is auctioning his

personal 2006 cadillac dts through proxy bid.com. buffet has a short commute to work. it also comes with a large autograph on the glove compartment. the auction starts wednesday morning with an opening bid of $10,000 needed. proceeds go to girls of omaha, a charity that helps girls be strong, smart, and bold. the winner will be able to travel to omaha to pick up the keys from buffet himself. will you be bidding? >> i will not but i'm sure there will be a lot of demand for it. before we go to the break here's some of your headlines. the crude rally fades after china inflation dips to a five-year low weighing on energy stocks. kwaul calmqualcomm agrees to a $1 billion settlement and apple opens the books on its first bond sale. more on that coming up next. opportunities aren't always obvious.

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welcome back. let's have a quick look in on european markets. the broader stock 600 is just below flat. it's largely focused into the ftse 100 suffering as often as the oil price is down today. that's weighing on the energy sector. the other issue is that we still have no clear compromise from the greek negotiations. what's expected for u.s. markets? >> greek concerns continue to weigh on breerd sentiment and we're looking at futures higher across the board despite concerns around greece. oil is a big story. yesterday energy one of the best performing sectors. today oil shares dipping lower. futures are up 21% since hitting

a low at the end of january but not everyone thinks the rally is legitimate. in a note out on monday it's possible wti crude could fall to as low as $20. citi says the market should bottom sometime between the end of the first quarter and the start of the second. last week on power lunch, the citi analyst said oversupply is a key factor. >> you can't ever call a bottom. the market when it moves to the next layer of inventory it has to shut production in. to shut production in you have to get a 20 on the number. you have to get a two handle. >> citi cutting it's 2015 forecast on wti crude from $55 to $46 barrel and on brent from 63 to $54 barrel. to get more on the oil trade we're oinjoined by dennis gartman. do you think we neared a bottom when looking at the price of oil. >> i actually doubt that we have.

what we've seen in the past week and a half two weeks from the lows it has been a very substantive rally. about $16 in wti from the lows. what's impressive to me is the fact that the term structure, the carrying charge has not done what one would want to see the carrying charge do in a rally. we've seen the market continue to have a large crude continues to bid for storage. we're actually seeing storage increasing and pushing. we're beginning to see huge numbers of ships out on the water used for storage. in that environment it's very hard to think this is anything more than a much needed technical bounce than any further one or $2 rally in crude oil should have been sold. those that didn't get hedges put into place are going to be forced to do so. if you look at two and three year forward crude oil wti is

trading at level 65 66 $67 where any hedger would say that's a nice return. i'll sell the deferred futures. i think the lows have not yet been seen. maybe $20 is still possible. >> let's move the debate on to the u.s. bond market. we've seen a bit of profit ticking up the last couple of sessions but relative to the address rest of the developed world are u.s. bonds not still a screaming buy? >> i have my doubts there also. anybody tsa been bearish of the bond market over the course of the past ten years, no 20 years, no 30 years has proven to be ill advised and anyone that tries to call a top in the bond market is probably taking their fiscal life in their hands but i do find it interesting that in the course of the past several days in the bond future's markets or futures markets themselves they have begun to lose relatively steeply to the 10 year note. the 10 year has begun to lose steeply to the five year note. when you start to see that sort of activity you can make the

case that perhaps for the first time in a long time the top has been seen in bonds and the low has been seen in yields. however anybody that made the case over the course of the last 40 years has done themselves fiscal damage. >> the ten year treasury yield inches to a one month high in yesterday's trade indicating a flight away from safety but i want to switch the conversation to greece because of course lingering concerns around the debt proposal coming together has been weighing on investor sentiment. how concern redirect examination you about greece? >> i would leave the euro right behind. it would be to my advantage to do so. people would say if i would leave the euro i will be abandoned by the capital markets. history shows that's not true. mexico did it. they return to the capital markets. if i were greece i would leave. >> thank you so much. that does it for us on worldwide exchange. thank you for joining us. i'm seema. >> i'm wilfred frost. squawk box is coming up next.

oil shock. the international energy agency predicting a recovery in the price of crude but no return to high. a team shopping spree. shares of retailers soaring on better than expected sales and spider man swings back into action. this time marvel and sony pictures are teaming up on the project which means we could see an interesting web of super heros. it's tuesday february 10th 2015. squawk box begins right now. ♪ >> live from the most powerful city in the world, new york, this is squawk box.

>> good morning everybody. welcome to squawk box here on cnbc. i'm becky quick along with andrew ross sorkin. boston getting slammed. six feet of snow over the last 30 days and another storm is blanketing parts of the region. historic amounts of snow on the ground and not enough space to put it all. they use flame burners to dissolve the snow and can't keep up with the amount reigningaining down. you don't want salt and sand and all of that stuff dumped into the harbor but they don't have a lot of choice. all of my complaints about my morning commute ring hollow when you look at these pictures. >> they're expecked to get another snow on thursday. boston we're with you but only in spirit. this is why people should not live in the northeas