k. lender apologizes again for failures at the swiss private bank and said it's overhauling the business. >> a surprise move from honda. it announces the ceo will step down after six years at the helm. >> ukraine's president leads thousands in a march of dignity in memory of those who lost their lives in the protests. this as an explosion kills two people at a memorial at the biggest city in the east of the country. country. >> welcome to the show. we're just getting german business sentiment data. the business climate index hit 106.8 in february. that's a fractional rise but just below the reuters consensus forecast for 107.7. we've also getting the current conditions come in at 111.3.

the previous was just higher than that 111.7. it was expected to come in at 112.of. both the numbers coming in slightly below expectations. the gdp data we had earlier about ten days ago now. the euro is at session lows down about half a percent. >> germany has been a price the german tax so far is up better than 10.5% and closed on a record high on friday. the economy continues to show signs of improvement. jobless claims coming down. unemployment rate at 6.57%. it's been falling steadily. >> absolutely. let's get a reaction from the chief european economist. david, a better day in germany recently. this coming against expectations. slightly weaker. >> yeah. consistent with germany and consistent with the eurozone more generally seeing expansions. thing is one of the key things

about greece going on. europe is generally surprising on the upside. >> overall we said the youren economy now has just turned the corner even before the ecb bond buying program has begun. >> yeah. we've had several quarters of gdp recovering and the combination of a weaker oil price, a weaker qe i think euro will surprise on the upside in 2016. >> have you been surprised by the turn in the democratic data as of late speflgcifically out of germany. >> pleasantly surprised. we move into next year obviously spain surprised on the upside. and now germany, you know, turning again. i think also key here is domestic recovery. it's not lead by the export. it's very much lead by consumer spending and bounce back in investment. which is encouraging. >> and contagion risk off the

table. >> it kicks the can down the road at least four months. the ecb steps in next month and starts buying the bonds along with the national banks. keeps interest rates low. we're hoping that, you know, europe carries on the upside. >> one final one on germany. is it surprising it's going so well despite the impact on russian sanctions. >> yes. it's a domestic recovery. real household incomes have been growing strongly. that's been a key driver of the german recovery. >> great stuff. we'll be back with david any second. >> let's continue the story on greece. set to send a file proposal for the extension of the $172 billion euro bailout today. if they do not approve the measures, another meeting will be held tomorrow. greece's finance minister said he's sure the reform proposals will be accepted.

>> we're very confident that the list is going to be approved by the institutions and, therefore we are bargaining on a new face. >> let's get to julia chatterly who has been covering the story from beginning to let's see if we get an end. live in athens. we got the four-month extension. will leaders see eye to eye and find an actual resolution? >> reporter: as far as the reforms are concerned, seema, they have been thrashing out drafts overnight and yesterday as well. the finance minister furiously at work. they're trying to come to a close. i understand some of the confidence here. i don't think necessarily we're going to get to a point where we reach a sticking point over what the reforms will be. very difficult for the government to find something that pleases the eurozone finance ministers but doesn't create tensions at home. in terms of the details they've said it will be structurally in nature not containing the budget impact in the financials, but of course, this is what brussels is

demanding now. in is what they're trying to thrash out have been trying to thrash out in recent hours. it's interesting that the german magazine provided financing for the measures. taxing cigarette smuggling and the more expensive property owned by the wealthy greeks here. they believe it could raise around 7 billion. i'm worried about how they manage to implement some of the reforms. there's also rumors that so. measures that the prime minister mentioned in parliament last week the likes of allowing people with debts to make 100 repayments maybe he won't include those in the draft. is that because they're doing a u-turn on this or implement them afterwards without the say so. it's difficult to see whether or not they'll take a firmer stance on this. but comes down to the difficult

yis they've got right now within their own party. some members criticizing the government over the weekend. the oldest member saying he was apologizing for participating in the illusion of the government right now. there's talk about poll going around eight out of ten people supporting. i believe the numbers were calculated before the weekend. right now people unsure about what has been achieved here and unsure of what kind reforms the government will force through. we have to wait to see what the blueprint looks like. >> julia, thank you very much. let's get market reaction. david owen is with us. the syriza party promised their citizens reform better times ahead. what happens if the prime minister are not able to deliver the reform policies? >> well, we'll have to wait and see. the general reaction we see in greece they knew they couldn't go all the way. this is what they comprised with

the situation. at the end of the day greece moved into probably recession. we have the budget data for january that showed the greek government moving back in steps and january having set up relative to last year. it lead to the situation, you know, they step back basically from the brink. the important thing here we have four months of breathing space. the ecb is moving in and the greek economy is recovering. >> we have four months of breathing space. that allows each side having to play poker as it were. a session of game theory we're not sure what they're saying is what they believe. what happens over the next four months to stop us from getting into a repeat situation. >> i think the situation in greece has too remain reasonably stable. they carry through what reforms they demanded. at this point, if any, greece starts to recover again, i mean, that would be good news.

you know, if the direction travel is right then that's helpful. but at the end of the day, i think the ecb is the european economy is moving in the right direction. these are more important fractions. >> a massive fall in the equity index. the athens recovered slightly last week but the greek debt market seen a lot of carnage. is this one reason to get cautiously optimistic? >> cautiously optimistic but they have this overhanger substantial government debt which has to be resolved. at the end of the day, you know, if greece doesn't recover if we don't have gdp you have growing in fwx 2016 obviously the debt can get worse. these things matter. it's important in the interest rates remain low, which i'm sure will happen. >> and, david, i know if they crash out of the euro it could be painful. i wonder whether they wish they never joined in the first place.

since they joined greek gdp is down 12%. spain up 18, u.k. up 26. it hasn't been a good period. >> certainly not. hindsight it's a wonderful thing. i think no one would have predicted the scale of the crisis. at the end of the day they know they're accepted into the club. and the creditors bear their share of the blame. they allowed them to draw it. >> but deevaluation would be helpful to them but politically it would be very painful. >> it would be fiscally painful and push them into recession. if they were to leave, obviously, they would walk away from the debts and find financing difficult. they would have to reintroductionreintroduce another currency and inflation would return in greece. >> david, thank you very much. pleasure as always. chief european economist at

jeffreys international. let's have a look on what markets are doing thus far in europe and we are up half a percent on the stocks 600 so far. this is around seven years highs for the broader european index. we have been hitting, of course stronger turns in the european markets over the last couple of days, particularly in germany. doing better plus 7%. with we look at the main european borders the footsie 100 all though it is approaching the level of 6930 which would be record high since the turn of the millennium it's fractionally down now. it is near the high which would be testing. germany tested and pushed past record highs. it is around a fresh one today. it was up about 1.7%. then we had that business sentiment data that come off the highs. but if it closes at the highest level it will be the highest

ever closed. up by a half percent. france is up a half percent itself. italy up. let's look at bond rates. we see the u.s. yield start to tick up in the last couple of weeks. we're 2.11%. that's centered around positive iftd around the fundamental data. there's been a similar move in the u.k. yield where 1.82%. germany remains very low. 1.38 a little bit up from the 1.34. and we have italy at 1.55. the euro is the big mover today. it's up half a percent. now, of course up as expected. friday we approached the deal with greece we moved from the 112 handle through above the 114 handle and close just blow 114 we have given up a bit of that ground today. we're talking about the

positivity from greek progress most was priced in on friday. we're up a half percent today. we have the yen at 119.2. the aussie dollar is sliceingeing 3/4 of a percent. we have sterling at 1537. the oil price has been trying to find a bottom and at the moment we have 1% today. just above 50. brent is just below 60. 59.7. worth pointing out gold 1193 hit a seven-week low. not really doing very well as a safe haven despite the issues we've seen over the last couple of weeks. what is coming up later? the winners have been announced but the party continues in hollywood. yes, we're live in l.a. wrapping thup year's oscars. from the red carpet to the cat walk. as london fashion week kicks off, we bring you an interview with the top shop owners.

we discussion the explosion in huge cash prizes up for grabs. that's coming up.

with france on course to be finalized in the first half of the year. that's up 1%. bovis homes is down 1%. home builder also announced the final dividend 23% per share. speaking to cnbc earlier david sounded confident on the year ahead. >> it was quite punchy in terms of the growth. we saw improvement and we saw a little bit of a decline in the

second half. i'm pleased we see a little bit of a rebounded in the most recent data. for us actually, it represents a pretty robust market. >> now i want to get you up to speed on the story out of hsbc. it's one of the reasons we're not looking at the footsie 100 trading a at 15-year high. we're getting a little bit more news around the compensation. the apology came as the lender reported a drop falling shy of forecast. it forecasted 2013 of nearly $4 billion in cut the target for a return on equity. our u.k. business editor joins us here in studio. the question is how bad will it get? especially as analysts are expecting an increase in regulatory expenses? i think it's going to get very bad. the conversation that the

government has been having on the phone just now talking about a massive erratically different environment economic environment one where interest rates are at record lows. that's deflation their pressure doesn't help a bank like hsbc and tail winds from regulatory charge don't mount up. he said in his statement that he deeply -- on the phone that he deeply regrets what happens with the swiss bank. and he said it strikes at the heart of the bank. but let's talk about those lo bonuses. overcompensation in a year where fx fines continue to go up compensation went up from $19 billion to over $20 billion. as you said 320 staff paid over a million. and senior management saw their bonuses rise from $425 million to a $620 million bonus.

and guller have alone is getting a pay package this year of $7.6 million. and that is going to be unpalatable for a lot of shareholders will say why are we paying that here. >> it's very unpalatable but it's not the core reason the share prices are up. only a month ago they reduced profit guidance and learned the reguidance for a year ahead. >> it's a huge miss. it's supposed to be about 12 to 15%. that's a now it looks more like 10%. remember return on equity for this period is only 7.3%. that's really a big miss. as you said profits down 17%. that's a massive miss for hsbc. and this is a week where you've got revelations about the chief exec executive executive's private accounts being through the swiss

division. it no allegations of wrong doing, exactly but doesn't look good. there are mp come wednesday. >> the phrase you said he deeply regrets the swiss bank failings. yes, i can understand his point they're facing a tough regulatory environment. but once again a grumbling apology from a bank chief executive. they have no leg to stand on. >> apology after apology from the chief executive, from the chairman. it's laced with these apologies. the cause are full of apologies. talking about the fact that the bank the swiss bank has really reduced and radically changed but if you look at q 4 private banking down 29% but in the year net new money $14 billion. this is a very important division for the bank. >> let's get a banking analyst to weigh in.

do you think hsbc will be under a cloud for some time. >> yeah the results look very disappointing. i think what is most disappointing it doesn't appear this is just a one-line item base. if it was just a training profit miss or something you could say, well there's a clear identifiable problem. they missed on pretty much every line except associates. >> is hsbc becoming too big to manage? it's been a larger discussion around banks not just here but in the u.s. as well if they need to break up in order to effectively manage their operations. >> yeah. i think that's an interesting question. it's one i'm not sure management of hsbc managed to answer yet. broadly speaking they take about 12% of the equity capital allocated to european banks. that's about 70% more than the biggest stock. it's not clear what investors are getting for having to put that amount of capital behind one management team.

>> guler have claimed they're not too big to manage. it's pretty cheap. >> yeah but as you noticed today they reduced their return on equity targets now down to 10%. previously they were looking at 12 to 13 or 12 to 15. a 10% return for one time is that screaming buy? it's not completely obvious that is a huge discount to where you might be. i mean, i think if you look at the positives, i guess the key positive remains the dividends. the dividend today was a little bit lighter against what we were expecting. you are getting a well over 5% yield. in an environment where government bonds are giving you next to nothing. it must be reasonably attractive. >> where did you see the stocks trading from here. ? it's one of the big ones of the

ftse 100. what is your price target going forward? >> well, price target today is 680. that's where we are sticking from now. i guess in terms of how we'll look at that we'll have to rub through the numbers and the results are out. i guess we'll have to sort of sit with a cold towel over our head and see where we end up. >> we want to talk about the british government trimmed the stake in the lloyd's banking group to under 20%. society pay a dividend for the first time in six years. it's reportedly in line to receive approval for the path ahead of earnings on friday. if we look at the stock trading today it's up about 1.4%. this is obviously further freeing up the company to act on its own behalf. free of a government state moving forward. what is your view on lloyds? >> no i think the big question about lloyds on friday would be around the dividends. and whether they actually get to

pay the dividend and how much the dividend is. it's pretty nominal and i think the surprise to me if i'm honest is how long it's taken the bank let alone the government to start setting the stake in the sense they launched this trading disposal program back in december. and it's taken them about three months now to sell about 1%. and i think they would -- i would imagine there would be a little bit disappointed in that. >> thanks very much for joining us ed. much appreciated it. ed banking analyst. >> it's good news i think, outside investors like to see the government. it's only 1% but it's above the bailout price. the dividend is key. it's going to be paltry. it should go through. and that should open the flood gates. we have rbs potentially returning to operating profits if you cut out citizens bank as well. in term was reporting the

traditional banks that were always the bad guys in the u.k. seem to be doing better it seems than the like of hsbc. >> thank you very much for joining us as ever. >> interest dpli enough financial times is calling the potential dividend hike coming a water shed moment. >> absolutely. it would be the first dividend hike since the financial crisis. let's stick with banks. they aren't commenting an wall street journal report that the u.s. units are likely to fail the fed stress test. due to shortcomings in how they measure and project potential losses and risks. they failed last year. this is the first time duetch bank is participating. the fed will disclose partial results on march 5th and full results march 11th. that's the three-month price action. down about 6.4%. duetch bank up about 16.6%. >> the latest results of the cfo

global council are. we're in some of the top financial executives for the key issues facing today's corporate's. here is what they had to say. >> three quarter said greece will stay in the eurozone but negotiated new bailout terms by this time next year. one said greece will quit and be left to its own devices. you can get more on the cfo council results on our website. earlier our colleagues asked the cfo for his thoughts on the european market. >> we're seeing the first signs of slightly better growth prospects in europe and slight increase in momentum. all though, i do agree with what is happening in greek. could be another kick of the can down the road. however, if you look overall in europe we had high ambitions in regard to the list and drops created in europe and yet when i look at the reality we have 43%

of our sales in europe today. 23% we had two-thirds of the job we had globally in europe today it's half the jobs in europe. so unless we also create anyone elevative i think there will be a slight decline in the activities on in europe by a large part. >> meanwhile when asked about government involvement and business operations 61% of respondent ends said the government's role was too large. 22% said they strongly agree that policy makers had too big of a say. 11% disagreed with a statement. and the threat of cyber crime escalades 61% said their companies had tested their existing i.t. infrastructure in the last six months. this is a further 11% replaced for upgraded technology to prevent attacks. we want to hear from you.

do you think governments have too big of say? this is a two-hour show. e-mail us. you can tweet us. i expect some good tweets here. >> absolutely. i wonder what stewart of hsbc would be saying. i'm sure he would be saying government is getting too involved. >> you can find more at cfo cfocouncil.com. >> still to come here at "worldwide exchange." one year after the protests. we're live in kiev for an update on the conflict there. we'll be back in 2:00.

germany's tax hits a record high at open. after the business survey comes in shy of forecast. this as greece prepares to submit a final proposal to the creditors. >> hsbc shares falling more than 5% after a reported disappointing profits. the u.k. lender apologizes again for failures at its swiss private bank and said it's overhauling the business. >> a surprise move from honda. the japanese automaker

announcing the ceo will step down after six years. >> ukraine's president leads thousands in a march of dignity in memory of those who lost their lives in the protests. this as an explosion kills two people at the memorial in the biggest city in the east of the country. well if you're tuning in thank you for joining us on "worldwide exchange." take a look at european markets. we're firmly in the green when taking look at the german markets up a half percent despite the german business confidence number missing expectations. it did lock in the fourth straight rise in terms on month on monogains. slightly below consensus but arise it has been a bright spot. it's up about 13% so far in 2015. we're seeing gains in france. the cac 40 up about 4/10 of a percent.

the underperformer today is the ftse 100. down about .2%. on the back of disappointing results from hsbc. >> look is at bonds. it's interesting to see the 10 year treasury elevated where it was a couple of weeks ago about 2.4%. slightly better than expected fundment tal economic data over the last month or so. bringing back the expectations to around about the june point. in the u.k. had similar rises, again, in recent weeks. wage growth in particular stronger than expected last week. 1.82% there. german yield german -- the euro is on the slide today. it is up. putting that into perspective, on friday it did move from below the 112 in the 112 right up to the 114 handle before settling in the high 113 hence why it has

given up ground today even though we have positive news on the greek situation. that's a half percent. the dollar rallying against the swiss franc and the aussie dollar 3/4 of a percent down. russian finance minister reacted to moody's downgraded debt calling it politically motivated. it dismissed the cut being founded on unrealistic forecast from the imf and the world bank. timothy joins us. he's here with us. good morning. >> good morning. >> let's talk about the russian downgrade. it's throwing the toys out of the programstroller. >> it's very good as we know. it's been good for five to ten years basically. they're down 13 to 14%. they have $360 billion in reserves. they have about 50% in budget

deficit still probably something like 3% of the gdp. ratios are not that bad. the problem is that the movement or the dynamics in the direction. and clearly with the sanctions threat and the fact that russia is getting bogd down in ukraine makes a significant question i guess, about willingness to pay in russia. and, you know, in the end it's about willingness and ability to pay. i think that's the big question mark. >> we're going to come back to you in a couple of minutes. poroshenko lead thousands on a marge of dignity on sunday to mark the one-yearanniversary. it was overshadowed by an explosion that killed two people. he described it as an act of terrorism from his enemies. let's join steve sedwick who is live in kiev with the latest. steve? >> reporter: yeah thank you very much. let's get straight to our next

guest. one of the first people i spoke to when i was here a year ago in kiev. the ceo of dragon capital which is a major investor here in kiev. it's nice to see you. thank you very much for joining us. before we get to the current situation, the hopes and aspirations and what you were thinking a year ago compared with now. how are things compared? to me as an outsider it seems things are worse. >> that's unfortunately true. the main is the issue in the east and the russian involvement in the eastern part of ukraine that is undermining the confidence constantly and bringing ukraine economically down to a situation that is much worse than we expected and also the imf expected to launch the first program. >> is it possible to reinvigorate the ukraine economy while the war is going on.

it's just tied up in the war zones as well. it seems an incredible task to reform the broader economy while they're still fighting a war. >> i think it is possible. if you look at for instance the gdp decline of last year of almost 7%. the account of the occupied territory which makes up less than 4% of ukraine's total territory it has a larger share. industrial output and in export but at the current exchange rate and even at the exchange rate one is stronger than the current one we still have a balance. the current deficit and the situation would calm down we would have less of an outflow. >> but the hope here is in free fall. touching 30 last time i looked today when i was here a year ago we got to 12 before there was a crisis. now 30 versus the u.s. dollar. it's estimated people don't want to talk.

people don't want to hold the currency. >> now you can buy dollars or the exchange rate is now -- it's about under one-third where we think it would be balanced. we have it because of the security fears outflows. >> obviously very critical about the actions in the east and what is going on there. are you critical of your government here as well? it seems the prime minister has promised an awful lot. promised a lot of reform and in response what the imf asked. there's question marks about the delivery. delivery on bureaucracy, delivery on energy crisis delivery on sorting out corruption. has he done enough? >> we're constructively critical. but we're optimistic about the government. the government has been

substantially changed in the beginning of december. and we are very optimistic about the minister of finance, economy, health care and a few others. >> to be fair the central bank economy minister all the new faces post people said it was a dream team. now they have gotten replaced by another dream team so to speak. are you sure they can deliver? >> i think the new team is starting much better. they are being much tougher about the internal restructuring of their own ministries. they are much more free about the appointments. unfortunately the government that was based on the meltdown which was dominated by the old party. the ministers didn't have much freedom to appoint their own. >> it's a lot of hope there as well. >> what about the west. we were talking about the three pillars of support. sanctions, economic support, or military support.

i get the impression you think the west has been slow to react on all three fronts. especially report directly economically or militarily for kiev and ukraine. >> i would say very slow. say that have been slower than putin has been on the eastern front destabilizing ukraine through military and other means. >> in terms of where we go next you're investing on a daily basis. primarily in fixed income. >> fixed income private equity. >> it's not easy to make money. you can make money in local currency terms. when you convert it to dollars. >> and it seems unseemingly of course. very quickly, what are you doing? what is the trade our viewers should be putting on if they're putting ukraine trade? >> i think it's extremely cheap and the ratings in the 40s and the corporate in the 30s. we're expecting the minister of finance to propose filing of the

debt in march as it was reannounced and i think the market pricing worse scenario than what will eventually happen. >> a pleasure speaking you, sir. thank you for joining us. back to you. >> steve, thank you very much. head of emerging market research is with us. let you finish off on the russian ukraine situation. i wonder the strongest tool in putin's arsenal is the ukrainian economy is weaker than his own. >> they've been using the financial and trade channel, i think, to weaken ukraine and basically trying to deliver on russia's strategic objectives certainly you could argue the situation in the east is trying to undermine the ukrainian economy. the ukrainians and the west to negotiating table over the big picture stuff about future of ukraine. so yes i think that's the case. >> you're pointing out about $360 billion in reserves now. it seems like a lot of money

that russia has. it's helping to revive the economy. when you take a look at the laundry list facing russia when you look at declining oil pressures. there's a lot of pressure to allocate resources carefully and strategically. >> i guess they experienced last year even if you have 400 last year and they messed up the exchange rate. a catastrophe. in terms of their management of it. huge swings we gnaw a matter of few days. 10 to 220% of in a day. it was pretty poorly managed. bottom line. so what we learned they don't want to use reserves. they want to save them because my sense they assume the conflict in the ukraine and the west is going to be long and drawn out. they need to save their resources. they don't need to waste them by throwing around the economy particularly on defending the exchange rate. >> let's move on to another country turkey. the central bank facing its own problems but not so much by a lack of competence inside the

central bank but interference but from president erdogan. we have the decision coming tomorrow. >> it's a complicated one. in a normal situation i think turkey would be a beneficiary from high oil prices. you would see -- lower oil prices. lower inflation, probably currency strengthening, and it would probably leave the central bank to rates. the problem is you have the huge pressure from erdogan. it's harshly criticizing the central bank. which they appointed this team. and he makes it very difficult. the central bank independence really under pressure. they're going to cut rates. i would probably say if they haven't been on this the currency probably would have been stable to stronger. >> turkish leader has down about 5%. do you see the central bank playing a more active role in supporting the currency going

forward? ? >> not really. i mean, you know, they don't have a huge amount of reserves like the russian central bank. i mean, i think if the rhetoric, if they cut rates this week and the rhetoric from the government steps down a bit, then maybe we see the currency. we've seen aggressive -- trying to talk it down. i think it's at reasonable level. weak current si means more inflation and less ability to cut policy rates. i think this administration -- i should say the government's and the presidency they seem to be biassed more toward wanting rate cuts than necessarily a weaker currency. >> stimulate growth. that is a hope. timothy ash, we're going to leave it there. thank you so much for joining us. and do get on our website, russia's relationship with the e.u. may be at the worst in decades. but it's ties with some sections of european policies are getting stronger. you can get full details by heading to cnbc.com.

now honda ceo has stepped down in a short move after six years in the top job. he'll be placed by engineer and financing operator inside the firm. we'll have more from the story joining us from tokyo. >> hi. very surprising decision by honda to announce today the ceo for the last six years will be stepping aside to make way for a new ceo. this was very tightly scripted press conference, and they're citing severe challenges in terms of competition, intensifying global competition as a reason for the stepping down who says he wants to make way for a younger generation that is going to drive honda forward. you see there he has been under tremendous pressure. i think that was acknowledged back in october when he decided to take a pay cut for the next three months taking responsibility for a number of recalls that go beyond the takata air bag recalls.

they had five recalls of five key products. he decided to take a pay cut. and you have to remember that at a time when most corporations here in japan particularly exporters of the auto industry are looking at record profits and increasing expectations for profitability. honda was the low japanese automaker that came out and said their quarterly figures were below estimates and they're cutting their guide. it's been a challenging time. there were questions from analysts about how much longer he could stay in his job. his successor has an international background, which is a little bit unusual. they usually like to pick engineers to run honda, but most recently he's been running business -- he's been in china. he's also been in europe. these are two segments where honda is struggling. i think that is an attempt by the company to raise the global profile which it's seated the number two position to nissan.

particularly north america. >> thank you very much. still to come. we're getting in the game as e sports continue to grow. we speak to the ceo of london listed g finty. you won't want to misit. it's coming up next. shopping online is as easy as it gets. ♪ wouldn't it be great if hiring plumbers carpenters and even piano tuners were just as simple? thanks to angie's list, now it is. we've made hiring anyone from a handyman to a dog walker as simple as a few clicks. buy their services directly at angiealist.com. no more calling around. no more hassles. and you don't even have to be a member to start shopping today! angie's list is revolutionizing local service again. visit angieslist.com today.

all right. e sports or competitive gaming is a riding a wave of popularity with viewership increasing almost eight fold since 2000. now london listed firm is set to open the first e sports arena in the u.k. the partnership will create a dedicated e sports event space with an initial capacity of 600 people. let's talk more about the opportunity with the ceo of gfinity. pleasure to have you on the show. the concept of watching gamers play video games is foreign to many. why don't you explain to us and our viewers what entails. >> i think people are surprised how much people want to watch. but i think when video gaming first came out people loved playing it. then it became competitive. i think the last few years what we've seen is a big surge of people wanting to watch. i think that's a mixture of it's becoming more main stream.

secondly the games are better and exciting to watch. they're well put together and designed. they created some exciting games good to watch and good to play. >> why sports arena to watch? surely if you watch someone playing a computer game you're watching what they are doing in the game. you could be watching on the screen at home. surely i'm not watching you hold the game -- how does it work? >> it's no different. you watch a game of tennis on tv or you go and watch the experience is different. you have the energy and the emotion of the crowd. these guys are so good at what they do. it's the equivalent of if you play tennis at a club when you watch wimbledon. it's a similar experience. they are training 12 to 15 hours a day. they're brilliant at what they do. to see it live and see the guys in flesh, they love getting their autographs photographs, being with them. >> the sports game most popular?

>> you have strategy games, you have shooting games, you have sports games. you've got other games. we do a variety of games. >> and talk to me about your target customer. is it my mom or is it the millennial generation? >> the millennial is the word everyone uses. >> why are you laughing? >> i think it's largely, i mean, our demographic is 16 to 30-year-olds males. but that's changing. we're getting more females watching. it's about 75% of our viewership is 16 to 330--year-old men. >> you are watching converting the screens to. why london? i thought other cities might have more obsessive computer game? >> london is big. in the u.k. there's over 5 million fanatics. over the world it's about 71 million people who watch over 20

times a month. london is an important hub. i want to make london one of the key hubs across the world. this is a small beginning. >> when can people watch it? >> in the next two to three weeks. >> okay. we'll be ready. >> okay. i'm interested to see how virtual reality will change the concept together. that's a discussion we'll leave for next time. >> a pleasure of having you on. now sticking with tech. apple is taking a bigger bite out of europe. announcing plans to spend $1.7 billion on two new data centers. the company said the plants to be located in denmark and ireland are slated to open in 2017 and powered by renewable energy. and cnbc special report investigating how tech innovations are solving key issues and transforming big business is up and running. check out the tech transformers page on our website cnbc.com for all the details. also, on the webs from phones to the size of your head to the

slim smartphones. cell phones have changed dramatically dramatically. we all remember that right? cnbc takes a look at the ionic mobile phones of the last 30 years. head to the website to see our slide show. do you remember the first, i mean, your first cell phone you had as a kid? i remember mine. it was big and large. i felt very cool because it was a cell phone. >> absolutely. i think i was about 15 or 16 when i got mine. >> good times. look at the iphones. moving on to the glitz and glamour of the oscars. the big winner of the night was birdman which was the best director and best picture statutes. nbc has the latest from los angeles. >> hi. we're here off hollywood boulevard where the red carpet is being dismantled. the glamour of forklifts is the talk of the hour. it was all about birdman the winner of the night, as you said best picture and best director.

the oscar for best actor went to eddy red -- redmayne. julian moore winning best actress. and patricia are trishtricia -- the first oscar went to jk simmons. he's an character actor. everybody has seen his face. you might not know his name. he won for whiplash. back to you. >> thank you very much. well done to eddy redmayne. now from the red carpet to the cat walk. playing host to the world's biggest designers as london fashion week arrives in the city fresh from new york. chairman of the arcadia group on the sidelines of the show and asked him about speculation of a bhs sale.

>> it's going to be a mixture. compilation of both. >> can you actually sell it though? can anyone turn it into a success or have -- have customers that used to buy bhs have they literally died? where are they? >> the business isn't that bad. to be honest we probably lost a bit of focus ourselves. yeah we have seven brands. in fact i think now we sort of interestingly the last two or three weeks since we've made a decision now everybody is focussed on it we're saying saying should we keep it? you know, everybody now energized into what we could do. we'll see. >> so philip green at london fashion week. let's have a look at what u.s. futures are doing. we expect a negative open in the u.s. despite the fact that

european markets are pretty strong today. in fact, we have broader european markets pushing to around seven-year high. the dax at the fresh high. it was up about 1.7% but the german expectations was coming in for a fourth month of expansion did come in slightly below expectations. the ftse 100 is the lagger today in europe because of hsbc earnings down about 4%. what is next? >> let's talk about health care. valiant announcing a $10 billion acquisition. what does it mean for your portfolio and hedge funds? we'll discuss it next.

welcome everyone. hope you're having a great monday morning. i'm seema moody. >> u.s. futures point lower after another record-breaking week on wall street. greece prepares to submit a final proposal to the creditors in order secure the bailout extension. getting together a big deal. valiant is buying pharmaceuticals for more than $10 billion. >> hsbc shares falling now more than 5% after a reported 17% fall in full-year profit. the u.k. lender apologizes again, for failures a the swiss private bank and said it's overhauling the business. >> birdman has the oscar in

hand. picking up both best picture and director for the academy awards. tieing with grand budapest hotel. the oscars of course were last night. but, you know, arguably perhaps alexis should be getting an award for the drama that has been taking place. we've been capturing the attention of investors over the past couple of weeks. one of the reasons markets ended higher on friday. the report and the announcement they have struck a four-month extension with e.u. leaders. will we get a resolution in that time? >> absolutely. it's a long way to go on the particular drama. that has given a strong boost to economies. we've had a strong session thus far in europe. the ftse 100 the exception. and quite surprising when you think of broader european

indexes are close to seven-year high. the ftse 100 is close to a 15-year high. >> before earlier this year it was the widening divergence between european equities and u.s. equityies. we've seen a rebound on wall street and we'll be watching the nasdaq. it's striking distance of 5,000. on that note take a look where u.s. futures are trading. the dow indicating a lower open. we might not get an extension on friday. the dow hit a record high. the nasdaq about 2% away from hitting the all time high of 548. a level it hasn't hit since march 10 of 2000. let's take a look at the ftse. on friday japanese stocks closed at a 15-year high. there will be an active discussion around not just japan but other asian markets as well. investors rushing from the lunar new year holiday.

refocus, if you will on the shanghai markets as well as the bond. the annual budget will be unveiled this week and we've been seeing a rally in indian stocks over the past couple of weeks. optimism, of course, fuelled by what prime minister has been promising when it comes to reform. let's leave india to the side. take a look at the european markets. we've been moving higher. the dax hit a record high today despite the index and the business confidence number. a fourth month of expansion in terms of business confidence. in germany the kak 40 up 10 points. the italian markets trading in positive territory. the underperforming today has been the ftse 100. that is because of hsbc. one of the largest listings on the ftse 100. >> indeed. the biggest bank list there had. let's look at bond rates as well. the u.s. ten year has been

ticking higher and it remains about 2.1% as we look at things at the moment. the u.k. has been a similar move. 1.8% and german yields remain very low 1.38%. let's move on. interesting to see that the euro has 1.6% today. of course, over the weekend the focus has been on the positive development in greece. but most of that came in the euro move on friday. it did in fact move from the 112 up to the 114 settling just below 114 on friday. and has given up a lot of that ground today. down 1.6%. the german coming below expectations. it's in positive territory adding to a little bit of euro weakness today. 11311. we have at lot of u.s. dollar strength and ruble weakness. 3.5% the move. if we look at sterling 1.53 today it moved about 20%. let's look at commodities. gold is at a seven-week low.

it's back below 1200. despite the uncertaintiveserncertainty we've had it's struggled having pushed past 1200 in the middle of january it's come back now. it's down the best part of 1% today. brent is just below 6059.9. and wti is just below 50. >> a correlation between oil prices and futures. we'll have to see if it changes once wall street does open for trade. another focus, of course will be greece. the greek government is set to send a final proposal for the extension of its 1712 billion euro bailout today. if the ecb, and the imf do not approve the measures another meeting will be held tomorrow. story continues and julia chatterly is live in athens. the four month extension has given some confident to the

market. we're looking at european markets speaking higher. how are citizens responding? >> it's a lot of confusion here to be honest. remember the greek people are skrept call of the press in greece, too. trying to read between the lines and the details now. i think a bit subdued. i think people want to see what form the reform measures take that the government tries to thrash out with the europe row. they'll get a sense of the dos benefits now. both to gang what is going on within the syriza party avenue and they've been more vocal including a 93-year-old world war ii veteran say he was apologizing for participating in the illusion that was the syriza government. his tweets were tweeted out, too. as many were expecting, a far bigger backlash coming from within the party itself than initially right now from the greek people. but as i said we have to see what reforms they take and what the government is saying is going to be structure in nature.

the bushpush back they have received is they want details. they want to know the impact on the budget. we can thank the germans for giving details on that. they looked a the measures such as tax evasion, targeting fuel and cigarette smuggling and targeting some of their wealthier greeks in terms of their profiting. they expect to pull in around 7 billion euros. i'm hearing skepticism that the greek wealthy are protecting that are assets. it's going to be difficult to follow through than what it looks like on paper now. that's the crucial thing. even if we can agree on the reforms, implementation will be key and keeping the syriza party together igts. very difficult times for the greek government. back to you. >> julia, thank you very much for that. we discuss this topic further joining us is chief economist and managing director at chase. anthony, good morning. thank you very much for joining us. of course positive development

four months of breathing space but that's all it is at the moment. breathing space? >> it is breathing space. because i think the tough work is still ahead. they're going have to make some tough decisions with respect to the things they're willing to give up that perhaps they did not tell the lek rate was coming and certainly meeting all the requirements out there that primary surplus is a real good challenge. as you know the institutions and the german government and the rest of the countries want them to push the primary surplus up to 4.5%. the greek syriza party want it is to stay at 1.5%. even though there is room for comprise there's challenges ahead. >> we got the news of the four-month extension toward the end of friday's u.s. trading session. do you think optimism around this greek debt deal could push markets higher today as well? >> well, i think that in the near term there is some relief

out there that this greek deal even though it's for four months and we know that soon thereafter a lot of greek debt comes to maturity and they're going have to figure out how they'll be able to move with that. over the near term i think there's some excitement but i think we have to curb our enthusiasm because these challenges are going remain and then the truth of the matter is paying back all that debt is next to impossible for greece. and i think the financial markets know that. but they're hoping that somehow this is going to be a smooth transition. the transition from believing that greece can pay all the debt to the reality they probably can't. >> we didn't want them to have to crash out unexpectedly. they would have had terrible repercussion repercussions. when we think about the longer term challenges greece faces, certainly a deevaluation and increasing their competitiveness

would be a pretty simple cure for it. >> i think it is but in terms of deevaluation with a different currency that would be smoother but more disruptive. as you know they now wear a straitjacket and the straitjacket is the euro. the euro is not going to depreciate just simply because greece want it is to depreciate. it's going depreciate based on what happens to all the countries. that includes the powerful german economy that is doing very well. it's keeping the euro a lot stronger than otherwise would have been if germany was not the eurozone. i think that the best of all possible scenarios is for greece to continue to receive some assistance even though it's tough love they have to really comply with a lot of the measures. but somehow the measures and the restrictions on the austerity program to ease a bit. when you seae that greek banks

have lost 21 billion euros worth of deposits and much as 1 billion on friday this really tells you that there is an urgent need to address the reality that the greek economy needs some help and an environment that the eurozone is in right now. it's not that easy to give the unilateral transfers of assistance that i think the greek government needs. not only for a humanitarian basis, but also on a realistic basis that debt to gdp ratio is francly speaking unsustainable and not realistic. >> listen i think greece in some ways will be put to the side now we know they have the four month extension. in the meantime our focus will turn to janet yellen. the testimony that kicks off on tuesday. and anthony arguably means that the fed will not raise rates sooner than expected. it did not keep into account the recent jobs report which came in much higher than expected.

>> that's an excellent point. those minutes did come out for a meeting before that employment report. that employment report was impressive. i think the central bank wants to make sure especially with all the things draft going on internationally they don't rock the apple cart too hard but they have to raise short term interest rates because the kind of -- the type of interest rates we have now compared to what we had five or six years ago really simply doesn't make any sense. the economy is much stronger. we created more than 3 million jobs last year. we brought down that unemployment rate. i think the federal reserve is going to have to walk the tight rope. at some point, it could be soon they have to take that out. because the federal reserve is going to be needing to raise short term rates. what i think is going to surprise the markets in a positive manner is that the fed probably will raise interest rates. they'll go very slowly. i think that's the concession to financial markets and the

concession to international developments to make sure that things are not too disruptive. but i think they have laid down the strategy and for them to backtrack and not raise interest rates this year i think will hurt their credibility. so they will raise rates. but they'll raise them a lot slower i think, than people thought adjust couple of months ago. >> slow and gradual process is what experts have been forecasting. when we do if we do see it in 2015 anthony chen a pleasure to have you on this morning. chief economist and managing director at chase. let's get you a rundown what to watch the trading day. january existing home sales are out at 10:00 a.m. eastern time. look for earnings today the season continues. we have dish networks drug benefit express scripts and tenet health care. >> let's take a look at today's other top stories.

the largest refinery strike in 35 years is entering the fourth week. union workers at three more plants walked out this weekend including at the nation's biggest facility. more than 6500 united steel worker members are on strike at 19 chemicals. the latest lund burg shows the latest price of gasoline rose 13 cents to $2.33 a gallon. it's down more than a dollar from a year ago. operations resumed at u.s. west coast ports after they struck a tentative contract deal late friday. it could take months to clear cargo stacked up at los angeles and long beach. the two busiest shipping hubs. morgan stanley said the congestion has negatively impacted volumes of rail operations and trucking companies. you can take a look at the names

in the space. all trading higher in friday's trade. hollywood got a chance to honor their own on sunday night with the 87th academy awards. eddy redmayne won best actor. julian moore was named best actress for "still alice." and it was a big night for "birdman." it took home awards for best picture, director original screen play, and sincinemaing to if i. and another big day for the banking sector and apology from hsbc as earnings miss the mark. we're going to discuss more on the company and the outlook for the bank after this short break.

welcome back. let's give you headlines. u.s. futures point lower after another record-breaking week on wall street. they await greece's report. a big deal is struck valiant snaps up salix for over $10 million. and hsbc shares slide from 17%.

as he was saying hsbc said it deeply regrets compliance failures at the swiss private banking arm. the apology came as a lender reported a drop in full-year profit. that fell shy of estimates. the group also forecasted a 2014 impairment charge of nearly $4 billion and cut its target from return on equity. it's one of the biggest movers in the ftse 100. our u.k. business editor you've been on the conference call for the past hour. what have we learned? >> well, i think you have a very contrite chief executive and chairman talking about, a, the fact they missed an whole series the 17. % drop in profits. you've also got fx charges for last year. you have an environment which isn't helpful to hsbc's model. in the last part of the call i have to say that the chairman did defend the track record and said, look the mistakes happen. we can't control nearly 300,000

staff that are going on. we are trying to address it. on the issue of his own bank account, which was in panama this is all apparently because back in the day when stewart was in hong kong his bonuses he didn't want his colleagues to know how much he had in his account and he said it wasn't a matter of trying to avoid any tax. it was just a matter of privacy. but massive misses in terms of profits and when you saw bonuses a theback bank go up for the chief executive and senior management. >> thank you very much for joining us. hsbc up 5.5%. now duetch bank aren't commenting on a wall street journal report that the u.s. units are likely fail the stress test. it's due to shortcomings how they measure the project potential losses and risks. they failed the u.s. stress test last year. it's the first time duetch bank

is participating. they'll disclose the full results on march 11th. duetch bank for the last three months is the past trade year looking at there. significantly outperforming. and from finance to health care. hedge funds seem to be selling health care stocks. we're going discuss next with someone who has been putting this research together. that's coming up next on "worldwide exchange." ♪ help join a continent with nearly 3 million rugged square miles with a single broadband connection. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.

canadian drug maker valiant is buying salix $10.1 billion in cash. salix has been rising in speculation ahead of the deal. it's the largest acquisition of valiant valiant. salix is known for the drug to treat irritable bowel syndrome. the world's biggest hedge fund scrambled to unload positions in last year. the sector reported the largest net sales during the fourth quarter. let's bring the director -- what

i found interesting last quarter's top buys are this quarter's biggest sells. why are investors lightening on health care? >> great to be on again. thanks a lot. that's correct. the last time -- this time it's a complete role reversal. the interesting thing for the hedge fund tracker they have gone into gobble up burgers and doughnuts. they're the biggest buy during this quarter. it's management that has gone in here by 38 million to up to 39 mlt million shares. it's one of the top holdings even though they dropped a few

shares. they're a concentrated hedge fund. so they only have nine positions. one of the biggest positions is this restaurant's brand international burgers because it's the combination of burger king and doughnuts. unless they're going to join company. the other one that is kind of going down a little bit before we get to health care is 21st century fox. that's been a favorite three hedge funds and after 880 million. the chinese lucky number this time around. it's been around 800 million drop in that. >> let's talk about a sector picks. so we touched on health care. financials also seeing a big inflow. >> yeah, that's right. so, you know, the interesting thing we look across 2014 and actually this was the first time that financials were a top buy for the hedge funds. it was about $4.2 billion net

buy. that's a significant amount. a lot of that has to do with international. they're a type of real estate investment and they specialize in network and they have a lot of infrastructure. and so they're doing quite favorable with the hedge funds. after you. >> i want to ask you about one of the top hedge fund bias i believe is priceline. is that because investors are betting on future m&a. we saw a big deal being announced. expedia buying about $1.4 billion. >> it would be speculative from my point of view. but still conjecture there's something to do with merger and aqua sises there. a lot of funds are quite large.

and i think they'll probably be looking at that particularly. and in terms of, you know, the mergers. i think that's gone back to the health care. that's happening there is that, you know it's the top sale of $1 billion, you know, the hedge funds are moving out of that hedge funds moved out of that completely and activist as well. and i think they're pulling out of these stocks. which is interesting, as you said, last time they. >> thank you very much for joining us. it's all we have time for today. director of credit market development at sp capital iq. >> the world waits on greece as at thens scrambles to deliver the reform proposals today. we'll speak to the goldman sachs chief european economist. that's coming up after the break.

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welcome back to "worldwide exchange." here are your headlines from around the world. >> u.s. futures pointing to a lower open after another record breaking week on wall street. as greece repairs to submit a final proposal to the creditors in order to secure its bailout extension. heading together a big deal in the drug sector.

value yent is buying salix. >> hsbc shares falling more than 5%. the lender apologizes for failures at the swiss private bank and said it's overhauling the business. >> birdman has the oscar in hand picking up best picture and director at the academy awards. tieing with grand budapest hotel for the overall sweep. now a very strong close for wall street on friday. once we got news that a deal was coming together to extend greek's deal with the european partners by four months but right now u.s. futures are indicating a lower open despite that move to the upside on friday. the dow jones industrial down about 45 points and premarket trade. the nasdaq which is trading 2%

away from breaking the all time high down just about five points premarket. and the s&p 500 down five points. let's take a look at european markets. despite u.s. futures down we're higher not across the board but the xetra dax trading at higher. it did signal a fourth month of expansion expansion. the cac 40 up. and 120 points combine. we're not seeing gains across the board. the ftse 100 was trading very close to a 15-year high. once we got hsbc disappointing reports or iranings -- earnings that weighed. >> now the greek government is set to make a final proposal for the bailout today. if the european commission and

imf don't approve the missions another meeting will be held tomorrow. we're at the capital union market with a special guest to discuss that. >> another meeting. another meeting. we need to have this wrapped up. the greek story needs to move along. i'm here with chief european economist for goldman sachs. start off with your thoughts on greece. my colleagues pointing out we saw -- this morning the u.s. futures are indicating slightly lower open. we're seeing momentum of buying taking place in europe. what are your initial thoughts to the greek extension? >> i think greece and the european authorities have bought themselves more time. i don't think this game is over as of yet. we still have a few dots to -- ts to cross and i's to dot with

the current arrangement. it seems very likely that we will see some extension for the next four months. and probably with a little bit more flexibility available for greece on the fiscal side and with a new program of reforms being developed. but i think the key thing is that we will all be back again over the summer or in the late spring. because there is some more big payments due in july and august. the current deal will not cover those and needs to be a third program. . >> my colleague in the studio indicating that something else is taking place today namely the dialogue on creating the capital of markets union between yourselves and the lsc. so how does greece impact something like that if at all? >> i think greece is probably secondary to all of that. you know we have this difficulty in europe that we keep on throwing up problems and

we've been through a very stressful period and perhaps we sometimes miss the wood for the trees. i think there are positive developments going on in europe. and one of the initiatives that we at goldman think is important i think is beginning to be picked up by the commission and the european authorities is the need to develop deeper and more liquid capital markets to try to replicate some of the advantages that the u.s. is enjoyed in terms of financing companies, financing innovation and financial growth. so if europe is able to do that i mean, and it's able to overcome some of the institutional problems that surround the situation in greece and so forth, at a time when there's a bit of a starting point of a upswing in europe maybe we can build a little bit more positive momentum. >> i saw in your research paper, when i was reading over the weekend your topic. you pointed out in europe that banks provide 70% of external

companies. in the u.s. it's vice versa. does it mean we're moving toward a u.s. model? >> i think europe's financial system has been bank censored. the american financial system is traditional more centered around trade and markets. i think with the financial crisis which had the crux in the banking sector and with the new regulations being brought in is a consequence of the financial crisis. there are some threats, some challenges to the european framework. i think this is why the commission and others are beginning to look replicate the capital markets on the american style. i think it's important that we recognize that europe had a bank central system in part because it has a lot smaller companies and smaller companies tend to go to banks. it's hard for small companies to issue directly in markets. there's a chicken and egg problems. we want to become less bank dependent in europe but we need bigger companies.

in order to grow bigger companies perhaps we need financial arrangements beyond banks. the real challenge is a new steady state situation that perhaps looks more like u.s. but also develop ways whether there's venture capital private equity, private placement that allow small european companies with the potential to grow to be able to become large enough so they can access capital. >> some might be thinking, withell, alternative banking or fundraising methods could include things like the bad, quote, unquote asset-backed securities. how do you ensure it becomes an environment where you don't have the bad stuff happening again is what we've seen in the past? >> that's clearly a risk. right. so, i mean, the banks have the problems during the crisis but there was clearly problems in some markets, too. and security markets and markets for asset-backed securities. i think the initiatives that, you know, we're working on and

people in the authorities in europe are working on to try to produce high quality securezation. it's hard to object to something this high quality almost by definition. i think what we have in mind is the idea that some of the complexity and securityies that made them very difficult to price and evaluate for example, in some of the sub prime experience that the u.s. went through. clearly there's an attempt to avoid the mistakes. i think the way to avoid the mistakes is to ensure that underlying assets are a better quality, to ensure that there's greater simplicity in the structures created and greater transparency. you know, the credit rating agencies can value them more accurately. >> thank you very much. it's called dialogue on creating an e.u. capital market behind me. i'll be making it down to the conference to listen in and bring you more coverage on

closing bell. back to you. >> thank you so much. let's get you up to date on one of the biggest stock movers here in the u.k. hsbc. said it deeply regrets compliance failures a the swiss private banking arm. the apology came as a lender reported a drop in full-year profit that fell shy of forecast. they forecasted a 2014 impairment charges of nearly $4 billion. and cut its target for return on equity. during an earnings call during the earnings call the ceo said past facilities of swiss bank were a source of shame for a number of people at the bank. and of course, the question is going forward how much legal expenses and regulatory expenses for that matter will weigh on profitability. >> absolutely. and stewart guler have talked about that and said the regulating pressure is strong for the moment at the banks. i think the share price reaction is coming. only a month ago they lowered the earnings forecast and then to fall 17% more than expected

and the guidance to be cut from 12 to 15% to 10% i think hit the share prices. the core outlook. very disappointing. >> one of the big movers on the ftse 100. >> duetch bank aren't commenting on a report that the u.s. units are likely to fail the stress test. the report said due to shortcomings how they measure and project potential losses and risks. they failed the first stress test run last year. it's the first time duetch bank is participating. >> now to the glitz and glamour of the oscars. the big winner was birdman which clenched best director and picture golden statute. nbc has more from l.a. i'm assuming the party has wrapped up by now. what do you think has been the biggest surprise in terms of the winners from last night? >> well, there was a big surprise in the animated feature

but everything else seemed to go just as expected. as you can see, i do think most of the parties are over and we've seen drenched bits of red carpet coming by on forklifts. one about to go behind me now. it rained here in l.a. it's been kind of an interesting cleanup as they wrap this thing up. but birdman, as you said won for best picture and best director. took two other statutes. eddy redmayne won the best actor oscar. he was tackling that real-life role of physicist stephen hawking in the "theory of everything." julian moore won best actress for the linguistics professor diagnosed with early onset alzheimer's disease. there's a lot of political speak last night as patricia trish arkansas -- patricia arquette

talked about equal pay for women. and jk simmons won for the movie "whiplash "whiplash." a lot of smaller films and not as well known winning big awards and the big block busters that took home so much at the box office like american sniper had to settle for one award each in technical categories here at the oscars. back to you. >> jennifer thank you very much. there can only be one winner. don't feel too bad for the losers. they'll receive a gift bag worth $168,000. >> i saw that. >> that's insane. >> i can't believe that. i've seen birdman. whoever said money can't by you happiness clearly hasn't been to disney world. the magic kingdom is raising the price of admission to above $100 mark. worth it? we'll discuss after the break.

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and the dow hit a new high on friday once we got news that a deal has been struck between greek leaders and the e.u. you can see the dow jones closing on friday at 18140. now our attention turns to the

tech heavy nasdaq in striking distance of breaking 5,000. keep in mind the nasdaq is within 2% away from breaking the all time closing high which is 5048. it a level it hasn't traded at since march of 2,000. stocks like apple played a role in propelling it higher. apple is up about 25%. some of the social and security names have rebounded. the nasdaq's climb concerning some investors who say we may be back in tech bubble. but evaluations tell a very different story. >> exactly. evaluations looking pretty good for the sector in tech. the unlisted perhaps less so. our attention now turns to the nasdaq. your attention has been on the nasdaq for months. >> come on. i reported -- >> let's move on and talk about m&a. it's been a record setting year for deals in the drug sector in 2014. it appears the pace of take over activity isn't about to let up in 2015. let's get out to hear the full

story to cnbchq where landon dowdy is standing by. >> good morning to you. comedian drug maker has struck a deal to buy saliex for $10.1 billion in cash. the deal could let value yent take a lower advantage of the tax rate of 5% in canada. value yent is paying $158 a share. a tiny premium to friday's closing price. the news of the pending deal emerged and traded $86. and they had acounting issues that lead to the ceo and cfo stepping down. in is the largest deal ever for value yent ceo mike piereson who thwarted last year. reports say investigators pressed him to make a mid seized deal and there are a handful of targets including saliex.

he denied that and played down the chances of another big deal this year. after failing to inging -- last week the company bought the rights to prostate cancer drug for about $500 million. this would be the third big deal already this year in the sector. in january shire bought nps for $5.2 billion and earlier this month pfizer announced it would buy $17 million. they expect the deal to close in the second quarter and boost earnings by more than 20% next year. shares are higher in europe. >> thank you very much. now it's going to cost a bit more to visit the happiest place on earth. disney is raising ticket prices for the u.s.-theme parks one day tickets for disney world in orlando are now $105 up from $99. first florida attraction to break the $100 mark. other disney parks in orlando and california are also raising

prices. typically sea world and universal orlando increase prices soon after disney. taking a look at shares of walt disney up about 1.3% in frankfurt. >> i've been to -- >> where is that? >> paris. >> i've never been to the wonderful one. >> i used to go as a killd. >> i'm going to go next time i go to the states. u.s. futures point lower after a record breaking wall street. investors await the reform plan for greece. and hsbc shares slide after reporting 17% fall. we'll be back in a couple of minutes. e

let's have a quick look at

european markets. if we block out the ftse 100 it looks like a strong day. bouncing back after the four month extension for greece. the dax was at a record high earlier in trade. it come off the highs because of german economic sentiment is weaker than expected. hsbc is down 5.5%. we were close to 6903. at the moment we're at 6903. let's look at the euro dollar. we're down 1.6 percent which sounds odd given we have made progress. have a look what happened late on friday. we moved from in the 112 to the 114 handle as news of that greek four-month extension had came about. over the weekend as markets open we have slid. we're down 1.66% today just holding on about 130. >> let's get you a rundown what to watch in the u.s. january existing home sales are

out at 10:00 a.m. eastern. sales are forecasted to drop more than 1 million after sales rebounded in december. look for earnings today from dish networks express scripts, and tenet health care. let's look at u.s. futures after a big day on friday. the greek debt deal giving some comfort to the market here in europe. it doesn't seem to be helping u.s. futures at this point. dow jones industrial indicating a lower open by around 41 points. keep an eye on nasdaq. let's get to founder and president of bruin hill partners. talking about the nasdaq. do you think we'll break 5,000 this week? >> i do. i think that you're going see the impending support we put in the market earlier last week and prior to really hold very well. so i think the momentum and the nasdaq particularly, of course technology is one of the reasons why i think the markets, for a whole in equities look good to

the upside. >> let's talk about equities more generally. because, of course we have seen bond yields ticking up higher as well. suggests positivity market is well founded because of fundamental strength in the economy. >> it is. and i think those are for all the right reasons. you know, you're finally getting the relationship where at least with gold you're seeing we're getting below 1200. the anticipation is that, you know, the fed is going to eventually start priming the pump for the rate rises. that would show up in the precious metal first. if you have seen the rise we've seen in the 10-year treasury yield from way below at 150 to where it is present day over 2% again, we're starting to see the implementation, at least, it's going to come sooner than later. i think economically that is one of the reasons why it actually is a little bit too frothy at this point. we'll probably push it out to the end the year. >> another big part of the story, michael, has been oil prices which are lower today on

price on an oversupply, if you will, in north america. do you think u.s. stocks will continue to underperform if oil prices continue to drop? >> that pressure is probably going to be the tone we'll see for all of this quarter and next. really a big pivot point here between 48 and 52 in wti crude. and again that will weigh on the stock market. as a whole, i think the s&p that's pretty good. we don't see the runoff to the upside. i think that's holding back and getting us better evaluations. and that's one of the reasons why it's still very bullish in stocks. i think at least precious metals and most of the common i did complex themselves will see a lot weaker price action this week. >> michael, thank you very much for joining us today. michael, founder and president of bruin hill partners. and of course whether the nasdaq will hit 5,000. seema will be posting her own analysis today. that's all we have time for on "worldwide exchange." >> don't move.

squawk box is next.

good morning. battling to keep stocks an three week winning streak. the nasdaq coming off the fifth highest close ever. we have a call on crude. oil prices dropping right now but the same cannot be said for cost at the pump. and the woes of winter an ice storm now threatening travel in one of the nice's busiest airport hubs this morning. it is february. it is a monday. it's the 23rd of 2015. "squawk box" begins right now. live from new york where business never sleeps.

in is "squawk box." good morning everybody. welcome to squawk box. i'm becky quick. it is hollywood's biggest night but if you went to sleep early, here is what you missed. birdman wins the oscar for best picture. the best actress goes to jewelulian moore. and eddy redmayne takes home best actor in "the theory of everything kwths everything." we'll have more hollywood coming up in the next half hour. a couple of big stories. here is what is happening. greece facing another critical deadline as part of the deal with e.u. lenders to extend a rescue package. athens must outline the policy measures during the rest of the bailout. and then back in the u.s. good news west coast ports are working to clear a huge