. welcome back to "squawk alley" this morning. joining us this morning kevin o'leary chairman of o'leary funds investor on "shark tank" and jon fortt and kayla tausche where the market had good gains at the open but lost them awfully quickly. we have had comments from the german finance minister that perhaps all this encouraging news over the negotiations between the groek government and the eu not going as swimmingly as we thought. the reason the dow is up only 29 points. in addition to coke earnings and other things. 8:00 a.m. at google headquarters in mountain view, california, 11:00 a.m. on wall street, "squawk alley" is live.

♪ ♪ first up today, the u.s. government announcing it will create a new agency dealing exclusively with cyber security called the cyber threat intelligence integration center will focus on sharing intelligence and coordinating responses to major cyber attacks. the same time, apple's ceo tim cook says he will speak at as white house event on cyber security this friday in california. cook will join other tech executives an government officials to discuss cyber security policy going forward. jon, i'm reminded that security has always been one of the things that people actually nitpicked when it came to apple. interesting person to select to talk about it. >> it is, but apple has one of the biggest installed basis of

users out there right now with ios being huge. they sold a billion device, not all currently in service, also as we learned recently overs the hacking scandal over icloud, a lot of sensitive data there. the thing that jumps out at me it's an incredibly important time for government to show that it can be trusted because if it wants to be at the center of all this information flow with companies sharing when they've been breached, i think there are a number of tech companies that will probably be careful about divulging too much information about how the networks are structured if they're worried about intelligence agencies using that to spy on the company's themselves. hopefully the government is going to put forth more of a set of protocols and understandings so people can know how to interact with the government around this stuff. >> it's important to show the government knows how to execute on an issue like this, so important to companies and consumers. cyber security alliance, cyber security division of the treasury department. nearly every agency, kevin,

already has a cyber security division. what more do you think can be achieved by setting up something independent here? >> i think the major merit of this move it puts it top of the agenda, makes it one of the top five items the white house can talk about. i don't think having the government control the process is necessarily efficient. every company has this concern and as far as apple being a spokesperson for it, if you recall about three years ago, bring your own device became popular with large corporations and people really started bringing the iphone in to the platforms that were offered corporately. it wasn't that case before then. my own operations i look at the companies i invest in. i would say apple has about 75% share, even if financial services. i have to worry how secure or not secure the apple platform is and how much of my company's data is floating around op apple servers. i think it's a great topic but i never liked the government driving a process for private companies. >> i was going to ask you about

that. >> in terms of anything. >> yeah. >> stocks, though, at an all-time high today. i'm sure you've seen the yield they're giving on this 10-year, 15-year bond they sold in swiss franks. you wouldn't buys those? >> never. this is perverse what's happening here. let's call it what it is. because we don't allow our companies to repatriate their capital this is a form of repatriati repatriation. issue the securities stateside, write off the interest even though it's ridiculously low and all these contortions because we can't get our corporate tax law in order or competitive with everybody else. this is sheer stupidity. as far as this a as an instrument for a long-term investor over a decade, you would be out of your mind to buy these bonds and they will sell them out in two seconds. you're helpeding your balance sheet to apple because they can't repatriate their cash. how dumb is this? >> they are raising other cash in the form of bonds. microsoft as well, which we

talked about yesterday. would you rather see that go to work in capex and hiring or buybacks and dividends? >> what i really want, carl, is to stop forcing our companies to contort themselves into these financial pretzels and clean up our corporate tax act. make it simple for all of this money to come back and redeploy into our economy. it's just sheer stupidity. it makes no sense whatsoever. and as a bond, it's absurd. come on, you're taking advantage of these artificially low rates to repatriate your capital. why don't we call it what it is. we have bad tax law. >> a lot of people agree with you. move on to the markets. stocks as we said in the green up about 36 points. finance ministers for the eurozone, of course, getting ready to hold a meeting tomorrow. a proposal for the six-month debt extension for greece reportedly on the table. also want to draw your attention to apple as we said. the company conducting the swiss bond sale sends shares to the upside. what do you do with greece right

now, kevin, because until it's really off the front page and we start fixing other things, investors are going to be leery? >> no, i have a different opinion about greece and with ultimate respect to greek people, i lived a portion of my youth in cyprus, i'm familiar with the economy and people, here's what i want to do with greece. this is an economy for five generations it's never put in any kind of financial discipline into the direction of taxes or any regulatory body that had teeth. this generation has to pay for the sins of the past. i would like to take greek greece to the wall and say here's your options. you pay us back and live by these or you go to capital restrictions like the sip preats got. if you recall what happened there, the eu took 33% of each individual's net worth out of two banks and just took their match-up away from them. >> sure. >> much smaller economy. >> and then the consumers, there the depositors were furious. but the scale of greece and what it would do to the markets and the overall eurozone economy is

so much bigger. what happens if greece leaves the eurozone in that case? >> i think it's a good thing to actually set up a mechanism to let it leave the eurozone if it wants to and as far as the example to spain and italy they should look at what's going to hap happen to greece, only the size of chicago, not a big place, great place to do a social experiment and say if you want pay your bills, not willing to stick by the agreements you make, here's what happens to you. it's a horrible outcome but it will eventually clear and i tell you, the spanish and the italians would not want to go that way. italy is 12th largest economy in the world. they will not want to happens to greece after it separates. the track ma will be worthless. >> a lot of people would be afraid to take that chance. >> i'm not one of them. i say let's go to the wall, see what happens, and this is the right way to fix it long term. you can't keep kicking this down the -- this can down the road. these people have to pay their bills one day just like

everybody else. just like you do, i do, every other country. grow up and smell the roses. >> kevin last night on "mad money" jim cramer said use every sense of weakness in the u.s. markets on behalf of europe to buy because eventually we will be going up this year. do you share that viewpoint? >> i'm extremely optimistic. i'm loving what i see. we haven't seen the full effect of lower energy input costs. i love the jobs data i saw. i think the best buy on wall street today is not equities. i personally think it's in corporate debt. i think what's going to happen is spreads are going to contract giving you capital gains on short duration corporate paper. it's senior to the dividend on the stock. that's the space i'm looking at. i think we're going to have a wonderful outcome this year, but i would rather play it on the debt side and i think you saw it happen on the 10-year bond. we he exited at 1.6 to 1.9 in a matter of four trading sessions. that's a signal. that's a signal that the economy

is getting better. the bond guys are always the smartest guys on the street. >> let's move on, not a good milestone for android. according to a report by abi research in the fourth quarter android smartphone shipments declined for the first time in history. the report says this is mainly due to strong iphone sales and subsequent growth in the use of apple's ios platform. shipments of android handsets down about 5% compared to 90% gain for ios. to call it competitive now, jon, is almost stretching it. >> it is competitive in a sense but this is actually worse than it looks and here's why. not all android is google android even. what you've got is a case of growing smartphone inequality where at the high end you have apple, making money, making phones doing a very good job at it, 93% of hand seth profits from q4 went to profits and then at the lower end these cheap phones that have less

functionality, less design in them, less high quality software billed, selling for smaller prices causing issues throughout the mobile ecosystem and a problem for samsung but eventually it could be a problem for google itself because it's looking to sell all these other things along with android and you've got this rise of companies in china in india that are looking to sell handsets to sell services whereas google wanted to sell an operating system in order to sell ads. those two things are on a collision course. >> where is blackberry on the map there? >> blackberry it's kind of backing away from the handset market altogether. sure it's still wants to be in there but focusing on enterprise software. where the future is. >> what about amazon, their ecosystem seems healthy? >> it's remarkable what's occurred here. it may just be, and i hope i'm right, because i'm still long apple, i've always been skeptical they wouldn't fall to the forces of consumer

electronics and become a commodity. maybe this ecosystem issue is working for them and man sfesing itself in the numbers we're looking at on android. that ecosystem isn't as easy to use as a consumer and maybe the complexity and bugginess in terms of that keeps people pushed into a higher margin apple product. if that's the case they get to live in a way nokia, motorola and blackberry never could. what a wonderful outcome for me as a shareholder. i'm still a skeptic. i'm always nervous that at some point we're going to see people say, i don't want to pay 30% more for an apple product when i can get an open infrastructure through android that hasn't happened yet. i talk about this with jon all the time. i'm a shareholder but i'm nervous. >> the threat, kevin, of xiaomi, some of these providers that we don't really have numbers for because they're still private, how big a threat could they pose to some of the stalwarts veen ios which is gaining 90% ground?

>> well, i think we haven't seen them launch stateside yet. some of the hardware is very interesting, very inexpensive and there's always going to be a market for people that don't want to pay the full apple premium and get a large screen product. i think the jury is still out. when the products launch here, let's say by the middle of next year, which is what i think is going to happen, maybe finally that puts pressure on apple. so much of what i'm betting on now as an investor in apple, and its free cash flow, hopefully increase dividends, is coming from one device. the iphone. doesn't that make you nervous? >> it's harder than it looks, kevin, because apple's first of all i believe going to sue them, sue their pants off when they try to come over here with designs that apple believes at least are ripped off from the iphone and then when you look at apple's ecosystem it's not just about software, not about lightning cables, look at the retail stores. when you're selling handsets like so many are without profits you don't have the money to reinvest in prime real estate like stores in grand central

station, like stores at the louvre. xiaomi is not in any trajectory to do that. what that provides for apple is the halo effect and we see it in the margins. it's really hard to knock them off their perch. >> kevin, always good to see you. >> you're lulling me into a sense of just being lulled into a sense of just warm and fuzzy about apple but that's when i know danger danger. >> if only you can do that on "shark tank." wi we'll see you later. >> take care. >> when we come back shares of apple up about 9% this year according to barclays stock still undervalued. we will talk to the firm's top analyst in a moment and senator ed markey is out with a new report saying your car could be vulnerable to hackers. he's going to join us later on. and over a billion views on her youtube channel and counting. one of youtube's top stars, michele phan will join us live in a few moments. dow back up 47. we're back in a minute.

apple completing its swiss franc bond sale worth $1.3 billion dollars. the sale after barclayss noted the extraordinary level of cash flow at apple that they say could push shares to 150 bucks. joining us is an analyst ben reits. good to see you this morning. >> good to see you. >> apple it's laughable how much cash the company has and

opportunistic it has been in the bond market. why do you say free cash flow will push the stock higher in the negs few months? >> in the latest quarter it didn't seem to get enough attention. i think free cash flow per share beats the street by up to 40% while epps was nearly 20% higher. free cash flow in my training pushes stocks and moves it. that's what you get to reinvest in the other business, buy other companies and return cash to shareholders. so i think that the free cash flow you're seeing at apple is mind blowing and i know the quarter was impressive but the free cash flow is going to hit people on a delay, especially into a big, big new buyback program. >> well, ben, i'm all excited about apple's ecosystem, of course, as you heard a few moments ago perhaps, but at the same time, that cash flow argument sure didn't work for the stock in mid 2013. so how do you factor in that issue, that you've got some tough comps for them coming up this year, you've got this apple

watch where some people's launch expectations are going to be sky high, who knows how things will shake out of it as far as the initial numbers if apple puts them out at all, are you saying that cash flow is bound to push the stock up despite those sorts of headwinds we've seen the stock face in the past? >> yeah. well in 2013, you to remember samsung had the momentum and some of the domesday scenarios had apple generating a fraction of the cash flow we're seeing right now. i had no idea it would be this strong a couple years ago when it looked like samsung was winning share and android as well, and now i think the big surprise over the last year is that apple's -- you just had a story on it. apple is beating android to the punch. that changes the game completely with this product, the iphone, being their most profitable product. i think when you look at the numbers, and jon, i'm about numbers, you look at the numbers, it's about a 12% ev to free cash flow yield. that is staggering and that puts it cheaper than walmart, johnson

& johnson, microsoft, anybody in the mega cap range and i think that into a buyback where they will articulate it very well and continue to run their business i think at a higher level than people thought a year ago, including myself, i think that powers it higher. the numbers say that the stock should be bought on free cash flow and there are a lot better than they were a few years ago. >> i think the cash alone if it were a security, would be ranked number 15 or so on the s&p. maybe it's number 18. fair to say that they have raised expectations now, though, for a balance sheet move, right? if they don't examine through big that will be seen as a disappointment, right? >> i think so. folks like me are keeping that expectation high, but when you do the numbers, like we have, you can get 150 to $200 billion over three years to be returned and they really don't have an excuse not to do a program that's at least $150 billion and then upside is over time and they still have plenty of room to reinvest in the business. i will tell you, we've really

seen tim cook come of age over the last year along with his cfo who really show they care about the stock in addition to products. of course they care about products and without products, the company doesn't work, but they are shepherding a story now better than they ever have. >> ben, before we let you go, you rate this stock but the news for apple today is of course this bond issue. unfortunately if you're a fixed income investor and bought apple bonds you wouldn't have done as well had you bought the stock because at this point prices have gone up as much as they can and yields have gone down as much as they can. would you be buying apple bonds at this point or do you think that's a recipe to have prices move in the other direction? >> well, i'm not a bond analyst and i don't want to say something that my fixed income colleagues may or may not disagree with because we haven't even spoken about it. look, i think it's a very smart move for apple to lever up and avoid this double taxation issue

and to use low interest rates when it's probably the most credible company in the world. it's just a beautiful thing to do. it shows they're going to be more shareholder friendly. it's the right thing to do for their equity shareholders to raise money at this current rate. >> sure. >> wherever they can and then return more cash to us and so i'm excited about that. >> ben, we will be watching in april to see if we get the capital refresh. we appreciate your time. >> it's a pleasure. >> at barclays watching apple to 150 we should note carl it's high, $121.27 today. when we come back google is taking its robot dog out for a walk. crazy new individual you to see. we'll show it to you in a moment. "squawk alley" will be right back.

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families just like yours with wills and living trusts. so when you're ready, start with us. doing the right thing has never been easier. legalzoom. legal help is here. in case you missed it, boston dynamics, the company google bought back in 2013, is out with some crazy video footage of its newest robot called spot. it weighs 160 pounds.

it's a big dog. it walks on four hydraulic legs. you can see spot can w stand a kick and stay upright. something the engineers tested early in the video. don't try that at home. the robot can climb stairs and hills and smaller than previous versions we've seen. boston dynamics has nine robots listed on their website but engineers are saying this is a hallmark of what they're doing. >> my concern is when spot gets far more intelligent it's going to watch this video and think we are not it's friend and i want to be a as far away from that wooded area right there as possible when that happens. >> they are getting better all the time. it's amazing to watch. let's get to simon hobbs this morning a few minutes ahead of the european close and talk about what's going to happen this week. >> in terms of things to watch, to be a fly on the wall tomorrow, when, of course, all the eurozone finance ministers, all 18 of them, sit across the table to the greeks with the european central bank president

there and head of the imf and hopefully advance the situation and get some sort of deal. we have a rally, off highs on the rally in europe today. it's based on the idea that the greeks are softening their stance going into tomorrow. it's not about -- don't read this stuff about what the commission may offer. it's not in the commissioner a gift. it never was. it's the fact that the greeks on sunday night when the prime minister spoke in parliament said no bridging deal and last night, the greek finance minister met in athens with local journalists and said we'll do a deal. yesterday was really rough for the markets. we had almost 5% fall on the greek stock market overall, almost 10% fall on the banks. look how the banks from low capital bases, penny stocks have come back today. the greek finance minister apparently in germany has become a sex symbol which may help him moving forward. he was apparently according to reports and media he was the guy that met with the local reporters in athens where this

is all essentially coming from. we'll return to that on the network tomorrow. show you some of the movers today. ubs is warning on the strength of the swiss franc, also the fact that it has another tax investigation here into how it used bonds allegedly to help people escape taxation from the irs. so ubs is down. also there's the fact that the wealth management isn't doing so well as perhaps the investment bank at ubs. a lot of the oil companies are lower, bp down 3%. on the upside today, some of the uk supermarkets on the sales figures that are coming through has also had a decent session. want to take you to northern france where today, dominique strauss-kahn, the former head of the imf, was actually on -- in court on allegations of aggravated pimping in regards to these alleged orgys in paris and washington, d.c. the protesters, three protesters, topless protesters, were removed by police. he actually took the stand and

said this. when you read the criminal complaint you get the impression it was all fren nettic activity but it was four times a year, not more than that. he's talking about the sex parties he attended. it wasn't out of control. i had other things to do. i had political ambitions. tomorrow the headlines will read that he had basically, therefore, 12 sex parties over three years. a lot of that guys, was head of the imf from the mouth of babes. >> one of the quotes of the day. thanks so much. when we come back according to senator ed markey too many cars in this country are vulnerable to hacking. what can companies do to make sure they're protected? she has over a billion views on her youtube channel and counting. michele phan will join us later on this hour. oil is down 4%. we'll see if stock can hang on here. we're back in a print. -- minute. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them.

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hi, everyone. here's your cnbc news update at this hour. greece's monetary problems it continue. german finance minister wolfgang schaeuble said a report the greek will get a six-month extension to pay off their debt is fall according to several wire reports. temper sele bouncing back after h partners disclosed a 10% stake in it. h partners says the stock is undervalued. facebook launching free mobile internet service in india making it the first country in asia to

get facebook's internet.org service. it's aimed at low income and rural users. are you missing your nicorette lots zennings. they issued a recall and then stopped making them and that has upset a lot of followers. according to the "washington post" that is. no word on whether the company will start making those again. coming up tonight on "mad money" jim cramer interviews ben baldanza 6:00 p.m. eastern time on cnbc. that's your news update for this hour. back to you, carl. thank you, sue. your car might be vulnerable to hackers according to a new report by senator ed markey which says almost all cars on the market include wireless technology that makes them susceptible to an attack. here to tell us his solution is senator markey live from capitol hill this morning. good to see you again. >> good morning. >> this report made big waves

this week, it was on all the nightly news programs last night. is your argument that automakers are not doing enough to keep up with the technology that they're basically putting into our cars? >> yes, it is. we have moved from the internal combustion era for vehicles to the computer era. and we want the computer era if for vehicles, but with it, we also want the safeguards that are built in to make sure that the safety of drivers, of passengers is protected and the privacy of those that use these vehicles is also protected because hackers can just move in, take over a vehicle or take control of your information, in a way that could be harmful to individuals. the same way that health care companies and retail companies are finding their information is being hacked, the same thing can happen with a vehicle and we have to ensure that the money is spent to install the technology that protects families all

across our country from being victims. >> so senator, what's the solution here for a physical dangers? we have the ntsb. we have crash tests. do we need hack tests for cars now? >> we dop. in the same way now that people can look at a sticker and see what the miles per gallon is going to be on the vehicle, they can see what the crash worthiness is, how many airbags, we will need another sticker in terms of the amount of cyber protection that's been built into the vehicle to make sure that someone can't just use an ipad to crack into the vehicle or that the information that's being gathered by the automotive company that tells people where you parked, how fast you're drivepi driving, where you go, that information is secure and that if the driver wants, they can just opt out. they tonight want that information gathered about them. >> the same way that a consumer would potentially buy a car

because it's safer, i would think that an automaker would look at technology and say having a more secure vehicle from a cyber security standpoint would be a competitive advantage, so what's the risk that you try and make this too consistent and you take away some of the competitive advantage to get some of these automakers to invest in this technology. >> history says that the automotive industry fought mandatory seat belts. they fought mandatory airbags. they fought mandatory increase in the fuel economy standards for vehicles. so i think it's just the opposite of -- in terms of what the likely response is. we need a uniform requirement and then every company would have to meet it, every company would have to put it on the sticker what is the cyber security for this vehicle. >> in all fairness, senator, i mean ralph nader was advocating for consumers back then. now we have crash tests, consumers can look up to see the safest car at the touch of the

butp. wouldn't you argue it's in the automakers' interest to avoid this kind of hacking if they're going to sell cars at all? >> no, that's not how it actual evolved. they actually put private investigators on ralph nader's private life to discredit him. we had to pass laws in order to put these requirements on the books. i think that we might have to wind up having the highway safety agency and the federal trade commission put the rules and regulations on the books and then everyone can meet them in the technological way they want to but at the same time guaranteeing the safety, guaranteeing the privacy of drivers. >> senator, here's a challenge i see. it seems to me once you put a seat belt in the vehicle there it is. we have recalls and what not but physical integrity is one thing. software is a new target. moving threats involved all the time. you have to be sure i imagine the automakers are able to push

updates to cars and then make sure that consumer has the car connected to the internet to receive the update. i mean this is pretty complicated we're talking about hacking and software security, isn't it? >> well, honestly some of the new vehicles have 30 to 40 different individual computers in them. they're bragging about that. bragging about their capacity to be able to deliver this new computerized world, and what we want is for them to brag about how they're actually building software protection for the privacy and safety of the drivers, of the families that use these cars. it doesn't seem to me to be an unreasonable request to say to -- >> how do you ensure that that car that gets driven off the lot is safe three months later when there's a new threat. do you give consumers a false sense of security unless the government is prepared to employ an army of hackers and security testers constantly testing the cars? >> again, it's the same problem that we have with the te cat ta air bag issue.

yes, as it's driven off the lot there may be an assumption the air bag is going to work effectively but if it's demonstrating it's harming people there has to be a recall, a software upgrade in this instance to make sure that the computers of the car are, in fact, protecting the driver and the passengers and that's just something that could be done at a garage, just at a dealership, in a very brief period of time. it's not that complicated it if a company decided that they were going to go down that route. they're doing it right now when people come in to get their automobiles checked after the six months. there is a technology check. >> senator, let's say nhtsa and ftc take your suggestions to heart and do pursue some rulemaking and we see cars that have a seal of approval from cyber security experts. how long does that take to put into place? these rules don't get written overnight.

it would be years before they would have something like this, so it's not to say that tomorrow cars are going to get safer? >> it's going to take some time. we need to go through a full rulemaking, but look, this isn't just going to be for the automotive industry, it's going to be for the health care industry, retail industry, banking ipdstry, for every industry whether they like it or not, as they move to this more globalized information based system for each industry, there has to be an investment in the security, the safety, the privacy issues that are raised. it's just going to be a cost of doing business if we move from the internal combustion era here to this new -- to the new system that we're going to have and they will just have to accept it and might take a year, might take two years, but nonetheless then a standard will be established. i think the public will demand it the same way with airbags and seat belts. >> before we let you go, senator, record snowfall in

boston this wenter. i think the cover of the ""boston globe"" piling it on, lot of raw nerves up there. have you ever seen anything like this? >> not in this brief a period of time. it is unbelievable. it's unprecedented like the patriots winning the fourth super bowl. it's unprecedented. it's huge. it it's a big month for boston but we still haven't -- we're not approaching the all-time record which is 105 inches of snow for the whole season. another storm coming thursday night, could be another one examining this weekend. we're in record-breaking territory. >> yeah. all those municipal budget going to be under pressure heading into the spring. thanks so much for your time? thank you, sir. >> senator edward markey. >> up next if "frozen," "star wars" and captain america weren't enough disney is getting its hands back on another characters this morning. first rick santelli what are you watching today? >> well, of course, we're watching 10-year note yields. they reached 2% today.

spent most of the session below that and we're going to talk about a word. fr-r-e-e what does it cost when you make things free, after the break. account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪

and start working on your next big idea. can the right treatmentsease? for you is out there. the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal. and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm. coming up on the half, against the crowd, why now is the time to buy energy stocks and bail on the consumer. that is the call from one top strategist and we'll do bait it coming up. plus do some ceos deserve a break. one expert says yes and is here

to tell you who's feeling too much heat. facebook or twitter which stock is a better social bet. tech investor dan miles tells us top of the hour. we'll see you in about 15. >> can't wait. >> spiderman is joining the rest of the family at the house of mouse kind of. walt disney and sony are agreeing to a deal that will let them appear in disney produced marvel movies including "the avengers" and "captain america" while spiderman is a disney marvel character sony holds the film rights meaning the character couldn't show up in movies. marvel will coproduce a spiderman movie as well set to come out in 2017 and spiderman is remains my favorite superhero. i'm excited. >> coming from the guy who dressed as spiderman for halloween. >> i paid like 75 bucks for the costume, so i'm going to be spiderman for several years. >> and your sons and their sons. >> after them, yes. >> continues. interesting deal. certainly moving both stocks

today. sony shares up despite all of the hubbub around the hack. sony shares up 26% in the last three months. let's get over to the cme group. rick santelli is standing by with the santelli exchange. hey, rick. >> hi, kayla. indeed, after friday's employment report a couple things continued to happen. it wasn't the catalyst that made them happen. part of that is, of course, the kind of melting up of rates which started in earnest earlier last week. look at settlements under 170 as evidence of that realizing the 20-month low yield as you see on the year to date chart is 164 and that was, of course, earlier in the month of january. now, what i want to talk about is the spread between bunds and 10s. spending quite a bit of home based time around 1.50, seen it in the 1.30s, now 1.60s. the stability of that spread alongside of the valuable information we're getting as we

watch the negotiations of greece, well if rates do continue to creep up in the eurozone, it doesn't mean it's a one to one endeavor with the 10-year note. that is important. remember, whether it was 2014 where the high yields were basically the first trade of the year, very similar to this year, the treasury markets have never been in the red so to speak. this is big. all right, today, we had labor secretary perez on. of course after the good number over 5 million in terms of job openings and he said something i would like to throw on the screen. the president's proposal to make community college free is recognition of the fact that just as high school was made free in the beginning of the 20 pts century and 21st century and make sure people have that opportunity to upscale so they can get the middle class jobs of today and tomorrow. first of all, i understand tuition free, but the whole notion this administration and many politicians have about what really the word free means, really drives me crazy okay.

it isn't free. it comes from taxpayers. it comes from local government through taxation or property taxes. and i understand tuition free, i understand k-12, all the issues there, but look at some of the recent research. one third of the students that come through public education out to high school and go to college, a third of those have to take courses to get up to speed. look at the numbers. this cradle to grave educational system subsidized by the government just seems to water down our education. and the model is tennessee, but there's an issue with tennessee. they call it the tennessee promise. it's paid for mostly through lotto subsidy tickets, sales, but if you look at tennessee, you can call it the eighth state that has in income tax because you only pay taxes on interest and dividends. so it's about paying for it. the government said they'll pay three quarters of that $60 billion. who's going to pay the rest? i understand the notion of tuition free but if we don't

start understanding free is in the eye of the payer we're going to have a lot more spending and lot less results to show for it. particularly in education. back to you. >> rick santelli in chicago, thanks so much. when we come back she is one of youtube's top stars over a billion views and counting on her personal channel. youtube's michele phan will join us at post nine in a moment with the dow up 75. 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? is it crazy that your soccer trophy hey, girl. is talking to you right now? it kinda is.

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welcome back. for milleniale media has been about on demand streaming. her videos have been viewed more than a billion times. michele phan is co-founder of subscription box start up itsy and women's lifetime network. michele, so much to cover with you. first of up insy, i think it's at a run rate of more than $80 million a year right now. >> yes. >> it's huge. you were 19 when you startd this. waitressing, i believe, couldn't get a job at a makeup counter because you didn't have sales experience. what is your goal now? because you have so many businesses you've built around this youtube following you've built? >> my goal now is to continue expanding my business here stateside and globally. asia is a market i'm very

interested in. i was in beijing, china, two weeks ago, meeting with all of the different people who are investing a lot in technology. so meeting and seeing how the market there is expanding is something i'm very interested in. >> it's interesting to see you move into you have subscription beauty products, you have a whole host of companies as john mentioned, but we're in a time period where if you just wanted to do youtube you could probably make an honest living and good one at that on youtube. >> absolutely. >> why did you decide to branch off of that platform and do more? >> well, i mean, i've been on youtube almost eight years. it's been a while. on-line space, that's a very long time. it's like doggy years. i feel like i'm been there 20 years. i love youtube. it's a platform i'm going to continue uploading my content, however, i want to expand my business and try other things and not just focus on youtube but, you know, launch other businesses outside of youtube, still using youtube as place for me to upload my content.

that's where a lot of my subscribers are. >> is there any other platform that you think is competitive or you might start migrating too, if youtube starts to outlive its usefulness? >> to be honest with with you you i go where my subscribers or community is. if they're on another platform i will go there too. >> for example? >> facebook is becoming popular for video search and content. right now there's no monetization, but i wouldn't be shocked if they enabled monetization for content creators because that will enable more people to upload more original content on facebook. facebook is a place where a lot of people now are watching videos. vine as you guys know, people love just getting lost on vine and going through the vine black hole and finding 7 second videos easy to digest. >> do you have a role model at all? you're trying to become a taste maker, curator, music label, being a repository of talent going out to youtube. is it oprah, is it somebody else? >> it's my mom.

that's my good answer. i love you, mommy. but elon musk is someone i look up to. i think he is a brilliant, forward thinking businessman. he started paypal way back when no one really believed and understood what the internet was and i love how he took that money and reinvested it into tesla, spacex, solar energy and more. >> have you met him? >> i haven't met him yet but i would love to meet you elon. >> do you think there's a type of content that is the sweet spot for millennials. one of our friends jon steinberg was on here and said the mill millennial audience is the only one i care about. you grew up in the internet age, perfect to speak to them. what type of content do you think works, what do they want to consume? >> content they can relate to and something that they can connect to. it's not like stuff that you would see that is overly

produced or underproduced. it has nothing to do with production. it's about the connection having the two-way dialog in relationship. millennials want to be spoken to. they want to be heard and also want to have that dialog. >> what if macy's came to you tomorrow, macy's just bought blue mercury. >> i love macy's. >> and they came to you paid you a ton of money and basically surrounded your brand took control of everything. are you willing to do that? do you want to like musk sort of double down on yourself again and again? >> i love having my freedom to be honest with you and i think this is what the internet does. it gives people the freedom to find whatever platform works bes for their voice. it you're a writer start your own blog, have your own twitter account and make a nice decent living if not amazing living off that. youtube, have like 500,000 subscribers you can make a comfortable living around $100,000 a year. that's very nice. very comfortable and you get to do what you love. we're living in an age where people don't just want to follow that formula.

they don't just want to go to school and after they graduate and might not get a job or if they do they're forced to go back and, you know, not really pursue what they love. i think this is a new generation where people are wanting to pursue what they love and find their passion. >> wow. >> the internet gives people that platform to build out that vision. >> you certainly have taken advantage of it, started on youtube right before the financial crisis and look what you have built. >> i did. i actually quit my job in 2008 when the crisis happened and when everyone was holding on to their job for dear life i took a chance and said i'm going to give a shot with this youtube thing. >> michele phan, thanks for joining us. come back. >> thank you. >> when we come back apple pay is joining the mile high club. we'll explain in a moment. yoyour friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do.

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paying for a snack or drink on jetblue will be as easy as a flick of the wrist. the airline partnering with apple's mobile payment system apple pay to allow flyers to pay for amenities via mobile device or apple watch. the first airline to offer apple pay and wi-fi will not be required to use the service. you can upgrade while you're in flight. cruising altitude. >> i think that's just a nice

little note to say hey, we're charging you for more things but making it easier to pay for them. >> funny how the airline model is dovetailing with what apple pay provides. >> it can be hard to get the swipe across. >> and they don't take cash. dow up 73 points. to wapner and the half. all right. thanks so much. welcome to the halftime show. our starting line upfor today. stephanie link is the coforth manager of jim cramer's charitable trust. josh brown is ceo of ritholtz wealth management and jon and pete najarian co-founder of optionmonster. our game plan look like this. give me a break. while yale's jeff sonnen feld says ceos deserve love and who should be off our hot seat. facebook versus twitter. dan miles on which stock is a better bet and why and what else he owns. we begin with a bold call on a sector