a very warm welcome to worldwide exchange. >> here are your headlines from around the world. >> banking stocks plummet as the clock tix away for greece to agree to an extension to its bailout. >> president hollande's economic reform goes before parliament but will it be enough to convince brussels it's budget is under control. >> there's a 40% jump in sales. the jewelry maker also announces it's expanding into china.

>> a train carrying crude oil derails and catches fire in west virginia. the second major incident involving an oil train in the past few days. >> you're watching worldwide exchange. bringing you business news from around the globe. >> let's get to our top story and the athens stock exchange is down 3.3%. it follows significant declines yesterday. that followed a positive return of 23%. last two days seeing it turn markedly. let's look at greek bond yields also showing a spike in yields surrounding the situation. ten year just shy of 10% and three year moved over 1% today.

this after another round of talks between the euro group and greece over it's bailout broke down. the finance minister called demands that athens would complete the program as absurd and unacceptable speaking this morning as he arrived. he remained confident that a deal would remain reached. >> next step is the responsible step. europe will continue to deliberate in order to enhance the chances. >> the euro group chairman has given greece until friday to request an extension of the bailout. meanwhile, they'll meet tomorrow to decide on whether to maintain emergency funding via the greek banks. if investors were hoping for a deal to be reached yesterday during the crisis meeting they are waking up today disappointed. >> absolutely but as the hours tick down toward the meeting

expectations were incredibly low as far as a deal is concerned but i think there's a bit of a jolt to complacency about how it turned out. if we look at the two extremes here the euro group presented a six month extension to the current program. they wanted them to abide by the conditions that were already there. they said continue to reform your economy but there would be flexibility surrounding that but there wasn't detail on what the flexibility meant. what he was hoping for and believed he was going to get in the late hours of yesterday was a four month extension to the program and he would promise not to fulfill any of the spending promises that he promised his greek voters if they would then work on how they were going to form a new kind of deal. he promised to pay back creditors and they promised to not destabilize the situation. if we can define what the

flexibility is the euro group are willing to offer there in lies compromise and a deal solution right now but not a lot of optimism as far as the euro group are concerned right now about how long it takes greece to come back. you mentioned friday. actually the president of the euro group gave them until tomorrow evening to come up with a compromise collusion. i caught up with him coming out of the meeting late last night and asked him if the ball was firmly in greece's court? we just wait for them to come up with a compromise? listen in. >> they were unanimous on this point. it is up to the greek government now to decide whether they want an extension of the program. within that program a lot of changes are possible. there is flexibility but the main features of the program. keeping the budget on track, reforming the economy have to be maintained but the first step would be an extension and the second step is let's talk about the content of the program. but not the other way around.

>> christine legarde said there's a big difference between a bridge and extension. is it to be blurred as far as the euro group is concerned? >> if in the mind of the greeks it's a bridge arrangement, that's also fine but also bridge arrangement would be a combination of the funds available and the conditions that go with it. this is how it works. we are always ready to support euro zone countries in trouble but the money always goes with conditions and the conditions are about getting the budget in order, fixing the economy, stabilizing the banks and that's what they have to accept and work with us on the issues. if we can do that then we can work on a extension, whatever you want to call it. >> on the table on wednesday

that's been removed from wednesday. why? >> there have been many drafts and this is always about words but behind words there's a political debate. the political debate is quite fundamental. i said to the greek minister, let's have this fundamental debate over the next month but we don't have that time right now. so let's create time for ourselves. go for the extension that will give you the umbrella of the program for the next couple of months and allow us time to talk about these fundamental issues which the greek minister has put on the table which is his full right but we cannot solve these fundamental debates in the couple of days that we have. so let's go for the extension first. >> let's just take a note of the fact that for the first time the finance minister acknowledged he would accept an extension of the program. that's a huge concession from them. up until yesterday they weren't willing to talk about that even in public. so we should make that point. he went from being angry in his

press conference to saying he had a draghi moment saying we'll do whatever it takes and we'll do it over the next two days. but when i was talking to the director of the think tank here he said he wasn't so optimistic about the ability of the greeks to come forward here with a viable deal right now. if they don't agree to this extension they're going to go out of a program. they won't be in a program. they will organize another one and that will take time and that's time greece didn't have right now. they suggested if they were out of a program or not agreeing to an extension the markets could turn against them and we could see capital controls in greece as early as next week. clock is ticking as far as the greeks are concerned right now. >> absolutely julia, that deadline approaching on february 28th. thank you so much. let's talk more about the situation in greece with the european economist. pleasure to have you in studio

today. despite these long and drawn out discussions between greece and international creditors these leaders haven't bb able to see eye to eye. does that raise the likelihood of a short-term deal coming together versus a long-term financing deal being put together. >> i think in the short-term that's the only solution we're going to see. there's a more fundamental discussion discussion. the different structural forms they have to implemented as well. it's about the amount of time they have. >> writing this morning he was saying capital controls need to be imposed sooner rather than later. would you agree with that? >> it's probably a little bit

premature but the greek government has to be aware the longer it goes on the more reliant the banking system is on the emergency liquidity assistance so we end up reaching a situation whereby -- essentially the greeks have very little to negotiate with. >> despite this lingering uncertainty around what will happen when it comes to greece's bailout package we're looking at the snp 500 at a record high. why do you think some investors are taking a more calm and relaxed approach when it comes to greece? because interestingly enough even dan greenhouse said one has to assume this gets worked out in the end. is it safe to make that assumption? >> that's an important assumption to make. it's our central view we'll get some kind of extension at least but investors have come to

realize that greece is just not as important as it used to be. at least not from a market perspective. it is especially geopolitically and the future of europe but in terms of exposure to the greek markets then that's certainly reduced dramatically in the last few years. >> but that said and i get your point that we haven't seen it yesterday was the first day that the euro itself moved quite meaningfully off the back of negative stories coming out of greece. is that the start of more contagion? >> i don't think so. it's only a concern and the investors have highlighted that a short euro position might be a good way to hedge against those kind of concerns but at the same time does that really concern the likes of mario draghi who has been doing his upmost to try to deval it? i don't see this as a major issue. >> if it was a risk they would have seen a bigger move in the

bond market which we didn't see yesterday. >> if it was really a concern they would have started the bond buying program already. >> we want to hear from you on this. do you think there will be a greek deal this week head to cnbc.com to cast your vote online on this poll or get in touch with us via twitter at cnbcwex, our handle you can see on the screen. >> let's look at what markets are doing. we're in the red today. you can see we opened about flat and weakened through the first hour of trade. we're down about 0.4%. the situation with greece that was negative overnight has not really hurt broader equity industries in europe so far. it's down 3.5% lead by the banks

and it stands significantly. we've got france and germany both down the best part of 1% today and the ftse 100 down just below flat or just shy of a quarter of a%. let's look at bonds. yesterday we did see a little bit more flight to safety in the german bond market. yields touched .33. yields can hardly go much lower but they are moving ever much higher. they remain above 2% at the moment. we've had quite a lot of positivity in the job market which lead to risk on trade coming out of bonds in the last day or so. greek yields spiked 9.8% just shy of 10% on the tenure. yesterday we were around 9.4 or 9.5 on the ten year. a slight indication of contagion

yesterday when we saw the europe move half a percent against the dollar. we are 1137 today. it bounced back a little bit but yesterday was a weak day for the euro. the pound is flat. the rouble at 63.0. let's look at commodities and see what the oil price is doing. bounced up today. 1%. so far over the last week or so we found a little fall in the oil price. just above 50 for wti and 60 for brent. let's check in on markets in asia today. sri is in asia today. over to you. >> lovely to see you. they did a reasonably commendable job of shrugging off greece and the debt talks.

however i do want to say this the shanghai composite is the out performer today. despite that we saw further evidence of the worsening macro indicators. these are home price index and month to month basis we did see stabilization in home prices. that lead it higher and the idea of further easing measures. nikkei down from the chose and retreating from the 8 year closing high we saw yesterday the further currency did take it off some of the exporters. all eyes on the boj brought expectations they won't take further easing or may do further down the line around april.

>> a big question when it comes to japan. thank you so much. coming up on worldwide exchange it's called the greatest free show on earth and we are there. we are live on the ground in new orleans as mardi gras celebrations get underway. if you're planning on making pancakes, hear why you may want to go easy on the nutella and why pharrell williams has more than one reason to be happy this morning as the grammy winner cash cashs in on the success of his new tune.

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smartphone or tablet from comcast. visit comcast.com/wireless to learn more. . >> the time for postjurorsing is over. the governments economic reforms face a vote in the lower house of parliament. let's get the latest from stefen in paris. >> good morning, the message is for people that are going to vote but that was also a message for brussels because the vote comes ten days before they will make a decision on whether or not france will face sanctions for its public deficit. with this package of reform the

government wants to convince brussels it's doing it's homework. that france is indeed doing economic reforms and it hopes also to revive the economy growth next year to raise the gdp growth from 0.4% last year to 1% this year. that's the official target from the government. the national assembly this afternoon will vote what is one of the key economic reforms from the government. it's actually a package which includes the possibility to open more sundays every year including all of them for those areas. but it will also open some specific sectors to competition that are not facing regular competition and last but not least they're also going to ease the process to make people in large companies. all in all that's for sure an important package of reform. will it be enough to convince

brussels for an answer in less than two weeks. >> thank you so much. now more around france. for the past couple of weeks market par gattisticipants are around greece. it's the second largest economy in the euro zone. >> either it's a very convenient distraction or unfortunate one. there's the message that he is trying to get a grip on the need for reforms in france and he looks like he is doing and will probably do enough to at least keep them happy for now but long-term that's a huge amount of challenges for france in order to boost their growth to a more reasonable level. >> the antiausterity and antieu push in france coming from the opposite side of the spectrum.

>> it's impossible to say because at the end of the day these people are calling for and end to austerity without understanding what it means. you need public services. everybody needs public services. they have to be paid for in some way. they were probably the first to come along and say we want to roll back on reforms and look how embarrassing it's been since then. he's had to do even more austerity and probably now having to do more structural reform. so it's not an if and or choice. you can debate how best to implemented the structural reforms but at the end of the day you need them in order to generate growth or pay for the public services you promised to provide for the nation. >> always a pleasure to have you on. now i want to get you some news on the russian bank part of course of france's group. it says it plans to cut 10 to 15% of its staff this year. this after the company reported earnings on january 21st where

it ranked fourth in market issues arrangement on legal tables for 2014. down about 1.2%. >> seema let's look at some of today's other big movers. pandora is up 15%. a 40% jump in q-4 sales and hiked it's dividend. the danish company best known for its charm bracelets announced its entering into a strategic area. >> tnt moving down 8.75% while it reported a fourth quarter net loss of 137 million euros due to restruck stur restructuring costs. it insisted it would make a profit in 2015. let's move to intercontinental group. it is down 2.28%.

speaking to nbc earlier, ihg ceo said he is pleased with the progress. >> we're a long-term business. we invest in our brands for the long-term and you have to deal with currency movements and we have the balance sheet strength. we continued to invest in the business. we continued to return to shareholders a billion dollars or so last year. we're not complacent but you have strong brands and a strong business then you have to deal with the ups and downs of the economies and exchange rates. >> that down 2.35%. orange is down just over 1.5% after reporting a 2.5% in decline missing analysts forecasts. it also expects operating profit to fall this year as it grapples with tough competition in it's main domestic market. the ceo has no plans to expand orange's european footprint

though french consolidation is most likely in the short-term. >> still to come, britain could be heading for deflation. how fast could it get there? we'll get an idea after this short break.

the clock ticks away at greece. >> the economic reform package goes before parliament but will the pro business measures be enough to convince brussels it's budget is under control. >> pandora charms investors following a jump in sales and is expanding into china. >> a trail derails and catches fire in west virginia. the second major incident involving an oil train in the past few days. our top story, last minute talks in brussels between greece and finance ministers concluded

without a deal. both blamed each other for the break down. speaking to cnbc before the talks ending the former european commissioner president explained what a final agreement could look like. we'll get you that tape in just a second but we have been seeing markets reacting during yesterday's emergency meeting. we're looking at greek bond yields spiking as investors sell greek debt and european stocks also down across the board. the ftse 100 holding on to the flat line as we await the data. the xetra dax down by .8%. the german markets did hit a record high yastlast week. investors of course staking to the sidelines and waiting that inflation report out of the uk. >> let's have a quick look at bond yields. the ten year treasury pushing above 2% this morning. it's closed yesterday for president's day and crossed that 2% mark back on friday.

we had descent enough economic data out of the u.s. which has seen a little profit taking in the u.s. bond market. the same cannot be seen in germany where continuing to have a risk off sentiment surrounding the situation at .34%. awaiting that data at 1.69% and the ten year in greece elevated today up about 50 basis points from yesterday. we're at 9.84%. of course the three year has risen so sharply as well. that's at 18.4%. let's also have a look at the euro. it did slide significantly yesterday. the first descent move the euro has had in relation to the greek issue. it fell .5% against the u.s. dollar and .8% against the yen and .6%. it's up today. >> the greek bailout talks sent

investors into these safe haven assets. one of the reasons we saw gold out perform in yesterday's trade and as you were just pointing out the japanese yen many times seen as a safe haven for investors trading at around 118 as you can see now against the dollar but in yesterday's trade it did come off the one month low it hit in the prior session. >> okay we're waiting for this u.k. inflation data. i've got that just looking at it for you now. falling to the lowest level since records began in january. >> it's coming at .7% month on month. that was an expectation of .8% for the year. it is coming at -- we're still looking for that. minus .9% it's coming at the month. the core has come in at minus .8%. the lowest since records began early in january.

so let's get reaction to this of course. on set with us. we've seen sterling quite significant. it's flat on the day, 15346. what's your take on this? >> we have all been expecting inflation to dip low. mark carney said it's going to fall way below our inflation target so we're going to go into negative territory. the market has been expecting this and cpi at 0.3%. that's not very far from what analysts and economists were expecting 0.3, 0.4%. that's the expectation and i think in coming months we're going to dip into that negative territory. i don't think markets will be too alarmed. >> will this delay the first interest rate hike? housing prices up 8.9% year over year in comparison to the 9.9%

gain in november and 13.3% we saw in london. question is are we already starting to see the cooling of housing prices. >> well, you started to see actually a couple of short positions taken out against the likes of other house builders in the u.k. at the top end of the market last week. interesting because that probably tells you what the smart money is thinking. we know at the top end of the market prices have come down and the second half of last year is after rapid prices in the u.k. that should start to bounce back. wage inflations are very unfortunate. i don't think it will change in terms of when we're going to get a rate hike because last week was the resetting for everyone about where we were going to get that interest rate hike from the bank of england. we expecting that now within the

first half of next year. so difficult time. it's all the debate about whether it's good deflation nary pressure or bad deflation nary pressure. this possibly means good money from consumers. >> let's get another view from james. what do you make of the numbers? >> yeah it's pretty much in line with expectations. perhaps a little bit lower but we all know that inflation is going to move lower. the super market price war is going to dampen inflation. the oil price fall is continuing to feed through and we have the utility bill cuts starting to come through the next month or two. that could get us down below that point in march. >> and we'll be wondering what this means for mark carney and how he's likely to act. the interpretations we had of him were quite different. the media jumping on the fact that they do stand by ready to ease if necessary but investors

pushed sterling up because he said the next move was likely to be upwards. what was your interpretation of last week? and does the data change it at all? >> a lot of the newspapers did pick up on the whole idea of deflation being a possibility. bank of england standing ready to act if it is concerned it could become entrenched so that was one story but the markets picked up on the other angle that in all likelihood the next move is going to be higher and could be earlier than the market was anticipating so i think in terms of where we stand after today's numbers it doesn't change that situation. we are probably going to get a negative period of inflation but petro pump prices are starting to rise already. we could be starting to see the risk of a potential bounce back of inflation in the early part of next year. >> is it just a slump in oil prices and falling food prices that pushed inflation lower? and is there a concern that the

u.k. is a concern the euro zone is facing. >> yeah that's the main factors behind this but audio-visual equipment always falls but the counter point is over 60% of the inflation basket is growing. house prices are rising. equity prices as well. so certainly not in a deflationary environment. i certainly agree with the bank of england that interest rate rises could move earlier than anticipated. >> stick with us. we'll talk politics next. the latest icm poll suggests support for the conservatives has risen by six points. it means they would gain 36% of the vote putting them ahead of labor. other surveys published over the weekend put labor, not the conservatives ahead. let's get back out to james for his view on this. james, obviously conservatives

taking a lead in one of the polls is still a long way to go. do you think it's fair that people are attaching quite a lot of economic risk to the outcome of this political poll? >> i do. what we're seeing within these polls is it looks as though when you analyze the individual constituent constituentcy they're going to end up with those seats. you need 326 seats to get a majority but unlike in 2010 when we have the conservatives and democrats agreeing to a deal swiftly because there's concern we're in the midst of the financial crisis right now, this time it could be a four waco ligs given the politics. that could become much more tricky for markets to look through. the uncertainty that that generates proposes economic risks as well. >> and over the last 48 hours or

so the big debate has been the expenses and tax avoidance but that shouldn't be a key issue for the election. it's just a little bit around the politicians, isn't it? >> i'm not sure that's true. as we have seen with issues like taxation for big corporates and google and starbucks this is a massive issue. why is that? up until now when you're finally seeing wages take off and seema you were pointing out, people have felt like the cost of living for them has been very difficult over the last six or seven years so why it is other people are getting off the hook? that's at the heart of this issue and people are concerned when they find out that either large companies or the very rich or even the people that are there to cut your hedges are getting away without paying taxes because most of us don't have that option and for the issue of politics, the main problem for the hikes of that coming into the general he

election, you're right, it's that you have a situation where most people too closely aligned, the tory party with the rich and the powerful and vested interest to labor has been playing on that. yesterday we saw -- last week has been a very positive week from labor because they got on the band wagon and that resinated with the electric. the mistake today was a speech given by the leader and was completely overshadowed yesterday which was all about business reforms and instead we ended up talking about what his tax receipts were. >> james let's have one final comment from you. where does sterling go between now and the election. >> we like the u.k. economy. >> oh we lost james i'm afraid. that was james knightly our u.k. economist at ing. thank you for joining us there. >> we want to bring you up to

speed on one stock on the move right now. that's portugal bpi. shares are jumping by better than 26% after trade was suspended on the stock following a take over bid from slipping. announcing a full take over bid for portugal's third largest listed lender offering more than 1 billion euros. that he quakes to 1.1 billion dollars. banco bpi shares on the move. shares of the stock down about 17%. now back to our top stories, last minute talks between brussels and greece finance ministers concluded without a deal. both blaming each other for the break down. speaking to cnbc the former european commission president explained what a final agreement could look like.

>> we have to respect the government in greece but they have to expect all the democratic governments. the decisions were taken unanimously. so they can only be changed unanimously. so it's fair that the new government comes with new proposals. they should look at them attentively but i think it would be a huge mistake and very bad for the euro zone if now we give the idea that because there is a political change in one of our member countries all the rules are put in that. so the basic rules have to be adopted. in terms of wards of the adaptations in terms of the margins, yes i think there should be always a compromising factor when i was commission president i was pushing all parties from the two sides of

the table. let's say the hard liners and soft liners from a compromise. you have to understand that greece is going through extremely difficult times. the greek people has been making huge sacrifices so some flexibility can be applied but not putting in question is need for reforms in the greek economy so that the greek economy becomes more competitive and can effect it's role inside euro zone. >> and still to come on the show we are live in the big easy ahead of the pig party. we check in on the weather ahead of the mardi gras parade coming up next on worldwide exchange.

let's talk about china because chinese new home prices fell for the 5th consecutive month in january. down year over year. this despite moves to ease lending. there's signs that property prices are stabilizing with some developers raising prices. >> meanwhile, shares and struggling chinese property develop, kaiser group opened lower this morning.

this after the group admitted it now has $2 million of assets frozen. they added it snaps $10 billion. now japanese corporations are continuing to make big moves in the space. she has the story live in tokyo. >> thank you, wilfred. the nikkei has reported that the japanese cargo carrier will express singapore's apl logistics for around $1.2 billion. this will help expand it's logistics business globally by utilizing the facilities. currently half of the revenue is from air freight and 20% from marine freight but land based transport accounts for only 10% and the company wants to grow this. already it has been expanding ware houses in china investing in a thai distribution center and creating a joint venture company in india but the acquisition will further speed

up this growth. speaking of rapid growth suntory holdings which has been aggressive in it's activities finally grabbed the number one spot from kirin holdings. ironically they were discussing a merger which fell through the following year. but back in 2009 sales were actually much bigger by roughly $6 billion but over the past five years they spent $18 billion on m and a including the u.s. spirits producer beam. sales rose 20% to $20.4 billion and worldwide sales make up 36% of the revenue which is up by 70% thanks to soft drink sales in europe. and suntory's president says that suntory aims to become the global whisky leader by 2020.

that's all. back to you. >> thank you very much. now it's fat tuesday in new orleans and the big easy is set for a big party. but will bad weather dampen spirits? let's get out to jay grey live for us in new orleans. have to say. you get the best assignments. you go from super bowl to mardi gras in new orleans. you definitely have a good pipeline ahead. >> i'm a given. i'm somebody that sacrifices for the good of the rest of us. take a look down bourbon street. very early in the morning here. it's been raining a bit. cooler temperatures hasn't slowed things down at all. i'm not sure if all of these people are wrapping up last night's party or getting an early start on the final day of mardi gras. talk about the weather, rain in the forecast. so they moved up two final and biggest parades. they'll be a bit earlier in the

morning here and what is the final and always biggest party of the season right here in the french quarter. that will happen and they expect that this will be a jam packed party as it always is despite the chance of that rain and again, some fridged temperatures for this part of then country. of the 30,000 plus hotel rooms 95% of those are booked annually. this carnival brings about a billion dollars in spending. so it's important to the economy of not only the city of new orleans but the entire state of louisiana and so far so good here. people very excited about how this year's mardi gras has gone and looking forward to the rest of the day. although some of these may miss the final day. a bit of a headache and sleeping in. >> party on. thank you for that live report. >> now if you're planning on making pancakes you may want to go easy on the newutella because

hazel hazel hazelnut prices are on the rise. the largest corporate buyer of hazelnuts is taking action and recently acquired a grower to sure up it's supplies. in the last hour they denied rumors that it could be sold following the death of its founder. what about some of the other ingredients and topics for your pancakes? here's a look at prices over the last 12 months of cocoa. it's been on the rise. let's talk more about that. that rise in the price of cocoa. is that down to people understanding seema's pancake habit? >> it could be. it could be more to do with a lack of rain in west africa where most of the world's cocoa

is produced. that's a key growing area. about 70%. it's tightening up supply. but then again, we saw last year the prices moved up quite considerably and crashed down fairly heavily as well. supply actually came out. it can be a quite volatile move. >> when we reference commodities, especially over the last couple of months oil has been stealing the show but i was looking at your research. we have been seeing significant moves. soybean oil down 11% and cocoa down 11% as well. what's the reason for these significant moves? >> they all have their own little microstories so with the case of coffee 40% is grown in

brazil and brazil was suffering from a drought last year and unseasonably dry weather this year. over the last few weeks we had rain considerable amounts of rain easing the pressure on growing there. but i think the market may have become a bit too optimistic about coffee yields too quickly. most of the damage was already made last year. it was already baked in the cake. the recent rain while it was beneficial is probably not as beneficial as many people expect and now they expect coffee prices to rise. >> when we talk about the soft commodities how much are they able to disconnect with correlation of the broader economies? are they effected by the moves in the oil prices? >> they're largely insulated. apart from some commodities,

they tend to be related. so a lot of investors in commodities may lose a mandate to put more money in commodities. that could hurt the price of things disconnected to oil. but buy and large they have their own demand dynamics. especially in agriculture where supply is the drive in price. a drought or a flood can effect the supply of the commodity more than changes in demand. >> which commodity is most vulnerable to the stronger dollar? >> to the stronger dollar i think, well coffee is in the sense that most of the coffee is grown in brazil and depreciating considerably against the dollar there's a lot of incentive to off load stocks of coffee so the dollar tends to effect it quite

considerably. >> the only commodity to post gains over the past one month. so some big moves in the soft commodity space. thank you for your time. shaw research analyst at etf securities. weather is another factor weighing on commodities and americans on the east coast are still feeling the brunt weather with snow building up quicker than it can be cleared. miguel filed this report. >> the view wasn't pretty. the snow was all crippled in ice. >> it's unbearable right now. >> the arctic blast setting record lows from maine to new york. in boston where it felt like negative 26. >> it's incredibly cold. you can barely see over the mountains of snow. >> insult to injury. nearly 100 inches of snow in three weeks. residents digging out anyway they can as fast as they can.

>> get the snow blower out and work our way out. >> mass transit is crippled. trains running on limited service. it's frozen solid. >> as boston digs out i ask everyone to still continue to remain patient and calm. >> wind whipped waves batter the coast of massachusetts. ice and water everywhere. in plymouth rare thunder snow. >> oh yes, yes! >> the weather channel's jim cantore in the middle of it all. >> oh again. that's a twofer. >> 150 miles offshore a life or death rescue for the coast guard. a father and son plucked to safety. >> the crew has never seen anything like this. >> this afternoon we were aboard the pendant. a ice breaker plowing through the boston harbor. >> this is unprecedented back here. the ice is so thick it's stopping the ship. >> thick ice and heavy snow causing roofs to buckle. this one gave way at an apartment complex in new

hampshire. in philly firefighters battled fire and ice dousing flames as they dodged icicles. on the roads black ice was deadly. at least six killed over the weekend. today more spin outs and wipe outs. now with more snow settling in more snow is on the way. >> enough. no more. surrender the snow. >> tomorrow another blast. another fridged day. >> sex sells, even at the movies. 50 shades of grey topped the box office taking in nearly $82 million over the holiday weekend. wow. the movie that stars jamie dornan and dakota johnson earned $158 million overseas. universal pictures which is owned by comcast says the holiday weekend, valentine's day and intense interest from small and mid sized markets drove box office sales. were you at the movies this weekend as well. >> i wasn't.

i haven't seen it yet and the reviews i heard were pretty disappointing. >> despite the negative reviews -- >> it doesn't surprise me. there was a lot of hype about it. >> they planned that release date well. >> they did, indeed. now pharrell williams has another reason to be happy. he has a new deal and series for children's picture books. it's inspired by his song happy. it will feature photos from kids around the world celebrating what it means to be happy. he won ten grammys including two for happy which was also nominated for an oscar last year. >> i'm bored of that song. >> really? >> it got played so much. >> it has such a positive message and for me it never gets old. >> i disagree. >> let's have a look at what european markets are doing today. we're in the red down about .5%.

germany down .7%. similar move for france. italy down about a quarter of a percent. >> we have been seeing strong gains across the board in the past two weeks when it comes to u.s. markets. s&p 500 closing at a record high on friday. yesterday u.s. markets were closed for president's day. right now this tuesday morning futures indicating a lower open. the down down about 35 points in premarket trade. the nasdaq down about 4. s&p 500 down about 5. we'll discuss more on what to expect in today's trade with a panel of market experts. also coming up on the show a huge train derailment hits west virginia. we bring you the details coming up next.

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welcome everyone to worldwide exchange. >> here are your headlines from around the world. >> u.s. futures pointing to a lower open on wall street as investors play catch up after the long holiday weekend. the dow set to clock in the biggest decline. >> the banking stocks plummet and the clock sticks away for greece to get an extension to the bailout. >> a train derails and catches fire in west virginia. the second major incident involving an oil train in the past few days. >> president obama is dispatching his labor secretary

to the gulf course. >> you're watching worldwide exchange. bringing you business news from around the globe. >> we had the economic settlement coming out and expectations numbers come in at 53.0. the expectation for that was 55.0. so it's come in just below that. we've also had the current conditions number which has come in at 45.5. that's up from 22.4 in january. we were expecting this number to jump because we have had strong gdp out of germany last week which surprised expectations but even though there was a positive surprise expected this moved the euro into the upside. we're at session highs up .2%.

1137. >> the euro at 113 against the u.s. dollar. we got a read on greece's economy. falling further into deflation, inflation for the country came in at negative 2.8% year over year. this in comparison to negative 2.5% in the month of december. this as talks broke down yesterday. athens not requesting an extension of the bailout program. a proposal given by the euro group. now let's take a look at how u.s. futures are trading. arrows pointing to the down side after markets have bb on the move to the upside the past couple of weeks. wall street rebounding thanks to better than expected earnings. positive data helping boost sentiment across wall street. of the major indices the nasdaq is at the top at around 5%. apple trading at a record high on thursday. currently on track for four consecutive weeks of gains. up about 19%.

we care so much about apple because it has the largest rating on the nasdaq. that has played a big role in terms of the nasdaq's out performance. let's check in on european markets. we got that number out of germany and interestingly enough still trading lower by 79%. the cac 40 down 32 points and we'll continue to keep an eye on the russian markets. of course russia and ukraine coming together on the ceasefire plan which did commence on sunday, february 15th. right now we're looking at the micex index currently down about 8 points and interestingly enough the ftse 100 here the out performer, some of that having to do with the u.k. inflation report. falling into deflation, i should say. >> absolutely. at the moment it's about managing to out perform. let's move on and also look at the greek stock index which continues to be a focus as we fail to reach a clear compromise

on the situation there. we have the broader index down about 3.5% today. but as you can see that's been seeing some banks move up quite sharply. greece has recovered some ground over the last hour or so. let's look at greek bond yields and have a look at what they're doing. as you can see the ten year is at 10.4%. that spiked significantly so interesting contrast to the noise we're getting out of the athens stock index earlier. which according to this is down about 3.5%. the three year 18.2% moved about a percent and a half today. the two year at 19.1%. this comes after another round of talks broke down. athens agreed to complete it's 172 billion program as absurd

and unacceptable. he remained confident that a deal would be reached. >> the next step is the responsible step. europe would continue to deliberate in order to enhance the chances and actually achieve a very good outcome for the average european. >> we know how to deliberate in such a way as to create a very good solution out of initial disagreements. >> the wrur roweuro group chairman has given until friday for bailout. joining us now is julia live in brussels with all the news. julia. >> we're counting down to

wednesday evening. that was the deadline for the greeks to say come back with a better problem. what we heard last night was the greeks accepting an extension to the bailout program. they're offering a six month extension to the program but they have to continue to abide by the conditions and have to abide by the reforms they promised to achieve. they said there would be flexibility but we don't know what it involves. on the other hand we have a four month extension. they said look we won't spend any money that we promised our greek people. we'll wait and see what we can negotiate further forward. we'll continue to pay our creditors surely somewhere in the midst of that is a compromise but not a lot of optimism as far as guests we have been talking to this morning or conversations i have been having but i spoke to the president of the euro group and i said this is it now. the ball in greece's court and we're waiting for them to come back with a deal perhaps you'll

agree to. >> they were unanimous at this point. it was up to the greek government now to decide the program. there is flexibility but the main pie tours of the program, keeping the budget on track has to be maintained but the first step would be an extension and the second step is let's talk about the content of the program. but not the other way around. >> christine lagarde says there's a big difference between a bridge and extension as far as she is concerned. is the line to be blurred? it's difficult to go back to their people and say they extended this bailout. >> if in the mind of the greeks it's a bridge arrangement that's also fine but bridge arrangement would be a combination of the funds available and the conditions that go with it. this is how it works. we are always ready to support euro zone countries in trouble.

it always goes with conditions. it's all about fixing the economy. stabilizing the banks. that is what the greek government also has to accept and work with us on those issues. if we can do that we can work on a bridge arrangement or extension. it's the money and conditions that go with it. >> it was a plan on the table on wednesday though. that's been removed from what i understand today. why? >> there have been many drafts and this is always about words but behind it is a political debate. political debate is quite fundamental. i said to the greek minister let's have this fundamental debate over the next month but we don't have that time right now. so let's create time for ourselves and give you the umbrella over the next couple of

months and give us time to talk about the fundamental issues which is put on the table which is his full right but we cannot solve these fundamental debates in the at as we have. let's go for the extension first. >> so now the gloves are off. we're not arguing about seman semantics now. it's going to be a bridge and it comes down to what's available to both sides. what can go back to greece and what will be deemed acceptable. we have the ecb tomorrow. likely expect noise from them about the fact that greece needs to be in some kind of program or needs some kind of support in order for the banks to be supported by the ecb so we watch for headlines there and we'll do whatever it takes to reach a deal on this. it's some conditions they hope to be acceptable this time around. >> some experts are saying any deal reached now will only tackle a near term financing

rewiermt.re requirement requirement. are leaders kicking the can down the road? >> this is the interim we need to deal with right now. we have shy of 6 billion euros including t-bills as far as they're concerned. we're only talking about the next six months but that's the most important thing is to enable us to build a better program. we don't want to kick the can down the curb as far as revealing some of the deregulation steps they're taking. we need to build a program that's sustainable and if just writing down the debt at some point allows them thomas k the under -- thomaso mask the underlying issues. but we need time for the other issues. that's what the hope is. >> time running out as the deadline approaches. thank you so much. >> let's take a look at today's other top stories.

a train hauling crude oil derailed in west virginia yesterday. it caused an evacuation of two towns. the clean up could take several days. this comes days after a train derailed in north ontario. the u.s. is weighing tougher safety rules for rail shipments of crude oil. >> u.s. labor secretary tom perez will fly to san francisco california today to intervene in the west coast port dispute following the weekend shutdown at 29 ports. the shippers and dock workers union haven't had face to face talks since late last week. in bound ships continue to stack up offshore waiting for a birth at the ports of los angeles and long beach monday. honda will idle three north american plants for a week. toyota is reducing overtime. >> the leaders of germany and

ukraine have spoken with russian president vladimir putin about influencing rebels to comply with the truce agreed to on sunday. separatists said they cannot morally stop fighting. the u.s. says it's, quote, grave ri ly concerned by the break in the ceasefire. we did have the report out of germany on the german economic sentiment about 10 or 15 minutes ago. interestingly, they did say that the ukraine crisis and greece are both dampening expectations of optimism in germany. specifically they said ukraine prices and collision course of greece is dampening expectations expectations. >> amazon is still committed to using drones to deliver products despite new u.s. rules that could shoot that down. we take a look at the stumbling blocks, later.

welcome back. a major kud oil train crash in west virginia was the second such instance of its kind in the last few days and the ships are still at a stand still on the u.s. west coast as a labor

dispute continues. >> let's get you a run down of what to watch this trading day starting with the national association of home builders. they're releasing their monthly housing market index. this tracks builder sentiment and market conditions for single family homes. the president charles plosser is speaking about the economy and policy. look for earnings from mgm resorts and waste management and goodyear after the open. after the bell lazy boy and amc. >> mester is joining the course of officials that want to raise rates after mid year. she wants to change the fed's pledge to be patient before making a move which would signal the central bank is done staying near zero. she wants june to be a viable option for a hike. joining us now is david, ceo of

advisors academy. i imagine you're going to disagree with the point of view i just outlined because when you were last on the show you said the fed won't be able to raise rates at all in 2015. is that still your view? >> i think they'll either not be able to raise rates at all or perhaps a tiny little bit because at this stage with the stimulus coming in from europe it's likely to keep long-term interest rates down in the u.s. such as the rate on the ten year treasury and raising rates, short-term rates will flatten out the yield curve which he we all know isn't really good for the economy at all. >> whether the fed decides to raise rates this year or next year, david, the markets don't seem to see that as a big head wind. the s&p 500 closing at a record high on friday. does the bull market continue in looking at the u.s. markets or do you think they run out of steam here? >> well that's a great question.

and, you know let's address what we know to be true and then address the grey area. we know that with europe doing it's own quantitative easing this next month it should keep their rates low which should keep our long-term rates low and right now we still have an inversion. it's ten year debt about 40 basis points lower than the united states which economically doesn't make a ton of sense so that means bond holders are going to fight to get some deal but yet bond prices should remain strong. that's the part i feel very confident about. of course where the 50 shades of grey comes in we're overdue for significant pull back in the stock market and when it occurs it's always a difficult thing to predict. however i do see strong momentum

momentum. in the last couple of weeks when there was hope for negotiations with greece the market had a great week this past week and of course today we're talking about the possibility of the negotiations getting derailed but the futures are only slightly in the red. i see a lot of volatility but short-term there's strong momentum to the upside. >> i'm surprised you're not more bearish than that. in your notes referencing the pull back you say it could be a 30% pull back. that's a huge amount of down side. >> yes. there's a reason history repeats itself more often than not and the reality of it is that if what we saw is a permanent recovery versus a temporary recovery in the u.s. equities market we'd be breaking three world record address guarding the stock market. it would be the first time

recovered after almost 13 years. the first time we only had two major drops in recoveries, not three or four and lastly before price to earnings ratios got into single digits. friday i heard another statistic that i haven't verified yet but came from a reliable source that if 2015 is a positive year for the equity market then we'd be breaking another record. it will be the first time in history we had seven consecutive positive years. so yes long-term, i'm concerned about a 30% pull back. in fact, history said we have to have a pull back of at least 30% but what's going to win out in 2015. that's hard to predict. 50 shades of grey in the equities market. >> then help us understand from your point of view how concerned are your clients about the bailout talks when it comes

to greece and the international creditors? >> well i guess the answer is not very. i think they should be because they have to realize that seeing deflation as you mentioned a few moments ago we're also seeing signs of potential deflation throughout europe and potentially in the united states. my biggest concern is we have a generation of investors now that realize they can't take the drug that the governments are pedaling, the federal reserve is pedaling in the form of low interest rates and they need to save and invest and pay off debt and take care of themselves and right now as i said before on the show the united states seems to be the cleanest dirty shirt in the world's economic hamper and the united states alone cannot foster enough debate to creation it worldwide. >> thank you very much for joining us this morning.

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welcome back. the u.s. has found ways to imbed surveillance software in computers and networks in iran russia pakistan china and other countries. he made a presentation in mexico on monday said targets include military and energy companies. >> amazon is still committed to using drones to deliver products despite new rules that could shoot that down. the faa's proposed rules won't allow the prime air service to operate in the u.s. the rules released this weekend would place heavy restrictions on commercial operators. they must be flown by someone on the ground. >> and ford motors wants to join forces with popular messaging app wi chat in china. they are looking to improve technological features. according to ford they hope to implemented part of the texting app such as voice command features and limited safe button

use into vehicles. they he have declined to comment but shares are up about 7% over the past 30 days. now being online while on the road it doesn't seem like a good idea because as a driver you should be focused on driving. not about staying connected to the digital world. >> but having said that interesting that this is come out and we're making news of it. i don't know if my car is very dated but while we have bluetooth to be able to talk on the phone how often do you get a message while you're driving and you're tempted to read it. i don't know if it will be in an automated voice that reads it out to you or if people already have that technology but i'll welcome it. >> it will introduce a safer way of still staying connected to the social media road while also trying to stay focused on driving. >> i need to know while i'm driving if you poked me or retweeted you. >> some market participants say

this is ford's way to get access to market growth in china. we'll see if that happens. all right we'll leave you with a look at how u.s. futures are trading ahead of the open on wall street after a mega run over the past two weeks. the dow indicating a lower open. the market is running out of team. s&p 500 down six. we'll get you more on markets going forward after this break.

welcome to worldwide exchange. i'm seema mody. >> i'm wilfred frost. >> u.s. headlines pointing to a lower open on wall street. this after a record close on friday. >> the clock ticks away for greece to have an extension to the bailout. athens will not be blackmailed or seek an extension. >> a train carrying crude oil derails and catches fire in west virginia. the second major incident involving an oil train in the past few days. >> president ball balm is dispatching his labor secretary to the u.s. west coast to try to break a jam in the port dispute

between shippers and the dock workers union. >> you're watching worldwide exchange bringing you business news from around the globe. >> and if you're just tuning in thank you for joining us here on this tuesday morning. u.s. investors were returning from president's day holiday with the s&p 500 closing at a new record high on friday. question is can the bull run continue despite greece failing to reach a deal with it's international creditors. right now doesn't seem to be a case. the dow jones with a move to the down side. here in europe a mixed day of trade. investors say they're going to stick to the sidelines until they're able to reach a bailout proposal ordeal with the euro group as well as the european central bank. right now we're looking at the ftse 100 trading up about 14 points. the xetra dax which last week

did hit a record high trading lower around 82 points. that survey coming out about an hour back. the french markets down about 29 points and the russian index with a bounce back up about 17 points but of course greece has been the big story. the fact that they were not able to reach a deal at yesterday's meeting. the athens ase trading lower by around 2%. and it's euro zone creditors are having crunch talks in brussels today and will continue to do the same throughout the week. the real pain being seen in the bond markets. similar to what we saw last week. selling bonds and sending yields higher. the greek three year at 18.2%. the greek five year yielding 15.4%. quite the disparity taking alook at bond yields across europe. in germany you have yields there at.3%. talks between the euro group and

greece over the bailout broke down yesterday. the finance minister called demands that athens agreed to complete it's 172 billion euro program as absurd and unacceptable. speaking this morning as he arrived for the meeting he remained confident that a deal would even actually be reached. >> next step is the responsible step. europe will continue to deliberate in order to enhance the chances of -- and actually achieve a very good out come for the average european. not for the average greek. not for the average dutch person or average german. we know in europe how to deliberate in such a way as to create a very good solution an honorable solution out of initial disagreements. >> euro group president meanwhile told reporters the ball is firmly in the greek court. >> we hope that they will ask for an extension program and once they do that we can allow

flexibility inside the program. they can put in their political priorities. of course we will see whether the program remains on track but that is the way forward. it's really up to the greex. we cannot make them or we will not ask them. it's up to them. >> i never go into if questions. i'm telling you what i think would be wise. >> he has given greece until friday to request an extension of the bailout. they'll meet tomorrow on whether to have greek funding. >> joining us is steven england. a very good morning to you. let's kick off with the greek issue. you also read the op ed in the new york times and he cited the moral prerogative in the court to act on.

it's their move they have to do to help fix this humanitarian crisis in greece. would you think that's fair? >> i think that's the way he's trying to characterize it. making it a question of right versus wrong and what kind of agreement would be correct in an abstract sense. the euro group on the other side sees this as a business deal as they're trying to work through. they had a deal a couple of years ago. they're willing to renegotiate but they don't want to concede his major point which is that this kind of deal at the current frame work will go forward. >> steven and fall out in bailout talks not what the market wanted to hear but given what we saw during the previous euro zone debt crisis perhaps investors should be accustomed to the negotiations dragging out to the 11th hour. >> i think so. in european terms it would be a

miracle if they were able to resolve this two weeks in front of the effective deadline when the programs have to end. so the fact that they're taking tough position shouldn't come as a surprise but that being said they blow hot and cold. both sides in terms of how close they are to a deal and then it seems to disappear so i think the market tends to be you know reacting to the latest statement rather than taking a longer view which is that they come to some agreement. >> yesterday we did see a significant move in the euro related to the greece issue. the first time that the single currency has been reacting along side the greek stocks and greek bonds. do you think that the market is starting to wake up and realize there is at least a small risk of contagion? >> i think there's some of that. it did drop not quite a big figure but descently and it's

bounced back since. i think that there is a correct sense in the market that at least in the short-term were there to be a major chance that greece would exit the euro zone it wouldn't be that kind of exit where no pressure is seen on european asset markets, at least in the short-term. it would be visible on the euro and on the european equity markets and visible on the bond yield so i think that the -- if it does look like there's a realistic chance that talks go bad we'll see more pressure on the euro zone. at least initially. until the ecb and other european institutions can alay these fears. >> collapsed of the greece bailout talks sent investors into safe haven assets. also the japanese yen strengthening against the u.s. dollar. what's your call going forward? >> you know look we think certainly the japanese -- coming

from the japanese side is you know coming to an end. they did have the big policy moves at the end of last year. we don't think they'll be so quick. certainly not as quick as the markets expects to do another round of qe. so in terms of japan, we think on its own the yen would be trading in this range. maybe even going down a little bit but a lot depends on the fed and the u.s. and where global dollar trends take it. certainly the yen against the euro. >> and the broader yen weakness over the last six months or so is that meaning it's stronger than it would otherwise be given the fact that the economy is not looking stellar at the moment? >> well i think the chinese are waking up and discovering even though they're slightly weaker against the dollar they're massively weaker against the yen and euro -- massively stronger

against the yen and euro and most of the asian trading partners. that's a source of worry along with the weakening of the economy. it's doing some pressure on cny, cnh keeping in mind that we're going into chinese new year with liquidity as an issue. >> thank you for joining us this morning. the global head of g-10 fx strategy at citi. >> mester is joining the course of fed officials that want to raise rates mid year. she tells the wall street journal that she wants to change the fed's pledge to be patient before making a move which would signal the central banks promising rates will stay near zero. she wants june to be a liable option for a hike. >> now several big named investors are disclosing what they have been buying and selling. they cut the stock holdings by

40% in the fourth quarter selling the entire stake in apple, facebook citi group, alibaba and halliburton. they raised the stake and added a citi position. meanwhile they also cut apple stake. let's have a look in frankfurther today. apple being the most significant down side. halliburton up 1.07%. >> coming up on worldwide exchange, a train carrying crude derails and explodes in west virginia. we have the full story after the short break.

welcome back. transocean one of the world's largest offshore drilling players is in focus after it cut it's dividend by 80% sending shares lower highlighting the negative impact of lower oil prices on its business. but that wasn't the only announcement made. steven that lead the company over five years is stepping down as chief executive. shares down about 56% over the past one year. >> and despite that performance, that announcement came as a big, surprise. now let's move from offshore drilling to shipping and the

u.s. government will try to intervene in the dispute between the shippers and union workers to more than two dozen west coast ports to result months of contentious talks. let's get out to meg with the full story. >> good morning, that's right. president obama is sending one of his top cabinet officials to the west coast today following a partial shutdown at 29 ports over the holiday weekend. tom perez will fly to fransisco to join in talks. reports from southern california to seattle. neither side has spoken since agreeing on friday to honor a news black out requested by a federal mediator. the talks which dragged on for nine months hit a snag over union demands in changes in contract disputes. they have been halted since friday night and were suspended

on thursday and the previous weekend. they're stacked up offshore. 33 waiting for a birth on monday. they handle nearly half of all u.s. maritime trade and 70% of imports from asia. some asian exporters have been forced to reroute their goods. honda says it will slow production of three north american plants because it dehe lays shipping parts. toyota is reducing overtime at some plants and fruit exporters are sending shipments to different u.s. ports to avoid disruptions. u.s. aa people market during the fall and winter season. >> hanukkahthank you so much. an oil train derails in west virginia on monday. several cars caught fire destroying a house and forcing

the evacuation of two towns. no injuries have been reported but the clean up could take several days. this is days after a rail train from alberta derailed in northern ontario setting seven cars on fire. the u.s. is weighing tougher safety rules. >> the leaders of ukraine spoke to vladimir putin about influencing rebels to comply with the ceasefire. separatists say they cannot morally stop fighting. the u.s. says it's grave rily concerned by the break in the ceasefire. >> german business sentiment has risen for the fourth consecutive month. the survey came in at 53 versus 48.4 in january. the bond buying program helped the rise in sentiment although the ukraine crisis and greek turmoil dampened expectations. >> a cyber security firm said the u.s. found ways to imbed

surveillance and sabotage computers in iran russia pakistan, china and other countries. the lab says targets include governments, military telecom and islamic activists. they're similar to the program jointly run by israel and the nsa. now before we go to break let's remind you of the headlines. the rally runs out of steam as u.s. futures have a lower open after last week's record close. the finance minister is help hopeful of deals. and ships are still at a stand still on the u.s. west coast as the labor dispute continues.

>> it's been a bit of a yo-yo session here over the last couple of hours. we have recovered a little bit of ground of course. the headline story is that no compromise is found in greece. we have probably taken a step backward over the last 24 hours but we have had strong economic sentiment data out of germany. much better than expected. the ftse 100 is the out performer. oil is up and energy sector as well. germany is down .5% despite the strong sentiment but it was down more than that earlier because of the situation in greece. france is down .3% and russia is out performing at 1.3%. let's look at the euro dollar because it summarizes what happened today. it followed weakness yesterday where we saw around half a percent of decline in the euro

but in particular taking a step up when we got that data out of germany. the highs up .3%. the euro trading at 1139 at the moment. greek bond yields have taken a step up compared to yesterday. the ten year is at 10.35%. we look here at the shorter end. the three year 18.2. so elevated as the risk increases once again. friday they request an extension of the bailout. the ecb will meet on whether to retain emergency funding. speaking this morning the greek president said the ball is firmly in the greek court. >> hope they will ask for an extension program and we can allow flexibility inside the program. they can put in their political

priorities. we will see whether the program remains on track but that is the way forward but it's up to the greeks. we cannot make them or we will not ask them. it's really up to them. we stand ready to work with them the next couple of days. i never go into if questions. i'm just telling you what i think would be wise. >> in addition to following new developments with greece and it's creditors let's give you a run down of this trading day. they release the monthly housing market index at 10:00 a.m. eastern. the fed president is speaking about the economy and monetary policy and look for medtronic mgm resorts, waste management and goodyear among others. let's get out to the chief market strategist, bob, great to see you this morning.

returning from the president's day holiday with s&p 500 closing at a record high on friday. do you think the run can continue despite the uncertainty around greece? >> when you look at the s&p chart it's almost difficult over the session. rangebound trade is very large swings and high volatility in terms of the price action but not necessarily in terms of the stress in the market. it's going to be a big point of contention when the retention started awhile back prior to it. i thought it would workout and they would come to an amends before the election. the problem we have now is that the political party in power came in with a man date to get out of this situation and austerity but they don't have a strong handed deal so you have an issue where it's going to come to roost in the u.s. markets when you combine it with the federal reserve and you mentioned plosser today

continuing to speak strongly about the rats. there's going to be some issues in the coming days. >> despite t of course on going tensions when it comes to greece, the s&p, the dow and the nasdaq witnessed their best two weeks. definitely an out performance. if you break down where we're seeing the strength in weakness energy the best performing sector up over 7%. can they continue despite volatility in oil prices? >> it can. there's about another 1.5. i think we're getting to $55 fairly easily. could see that today in wti. the thing about oil from the perspective of being a physical shop is the spread is normalizing again. the spread between brent and wti is normalizing. while the price stabilizing is going to have an effect on u.s. fracking and the crude actually in the market we continue to see rig counts paul but not the actual production.

but when you see the spread normalizing it came out to over $8 yesterday. that's a good sign for the flow of oil. that's a good thing when you talk about the energy producers so energy stocks continue to lead when we go on these runs. >> is there a specific trade to be made around about the spread at the oil market? >> well not at the moment. we really expected to spend most of 2015 between 8 to $12. it's hovering more around that $10 range but whenever you see that spread tighten up late last year and into this year it got actually positive where wti was over brent. people have to remember the land locks and transportation costs have to be factored into the price so when you see wti so close to brent, wti does not move and that causes these, so that's what pushes prices down in the future's market.

i don't think there's a trade right now but when you see that thing come into 2 and 3 and $4 that's not normalizing. that means geopolitical tensions or something else causing it. >> thank you for joining us this morning morning. just some flashes out of the ukraine story before we end the show. fierce fighting continues to take place on the outskirts. there's been continued fighting despite the ceasefire, particularly around an important train station and five ukrainian servicemen killed and nine wounded in the last 24 hours. of course despite the ceasefire some fighting has continued. >> the micex is up about 2% in today's trade. that does it for us on worldwide exchange. next up is squawk box. have a great day everyone.

good morning, greek negotiations broke down. on high alert after the euro zone counter parts failed to reach a deal. we'll talk about what it means. take notice detroit. reports say apple creating an electric car and speaking of technology aviation regulators are grounding amazon's plans for drone delivery. welcome back. squawk box begins right now. ♪ >> live from new york where business never sleeps this is

squawk box. >> driving in this morning was like driving through the storm for sure. we were. good morning, welcome to squawk box here on cnbc. i'm along with andrew ross sorkin. joe and becky are off today. >> it's on the west coast, you know. >> here we are freezing. >> they may not be able to get back here given the weather. i don't know what's going on with flights. >> bad news. >> good for them. >> for me. >> bad for us. >> make it back. right. snow is coming down in new york city. that's likely to make for a messy morning commute but the weather problems are worse in other parts of the country. >> you should be thrilled that you're here this morning. >> we are. we are so happy. it's a privilege to get up at 3:00 in the morning. >> we are thrilled. we just don't want to be back tomorrow morning. >> life is full of