. a very warm welcomeo worldwide exchange. >> here are your headlines from around the world. >> greek stocks rally with the major index in athens hitting the highest levels since december. investigators eye the fed chairman clues for whether a rate hike is on the table. >> a source confirms a reform plan has been sent to the country's creditors with an eu source calling it sufficient and encouraging. >> they deal with a slump in commodity prices. the mining giant reports earnings that despite a big fall

were better than expected. >> they make the biggest overseas acquisition snatching up their assets. the deal will help cut debt. >> you're watching worldwide exchange. bringing you business news from around the globe. >> on friday of course we heard news of greece's four month extension to its bailout program. that did come with the need for them to submit a list to its creditors of the necessary forms it was going to carry out. that was meant to be submitted yesterday. it has certainly been submitted by now because we're getting use of what's on the greek reform list. it includes the fact that they say they're going to consolidate pension funds and reform tax policy and fight evasion. they also said they will respect the privatizations where it has

already been launched and they'll phase in a new approach to collective wage bargaining that does include new proposals. >> we just want to get you up to speed with the market reaction we're seeing the greek stock market is up better than 5%. bond yields in greece also falling as much as 280 basis points after we have been getting news of a list of economic reforms that could pave the way for further clarity around the 4 month extension around greece's bailout. >> we'll bring you more on the story when we do have it. annetta joins us live from berlin with more. >> thank you very much. of course the talk here in berlin is about greece and about europe as a whole. last year there was a lot of optimism about the euro zone and about europe as an investment

place. this year doesn't sound that optimistic but to get the full picture i'm now joined by the chairman of emerging market funds. thank you for joining us. you earlier this year were quite optimistic about greece as a place to put your money into. are you still? >> i am still very optimistic about greece. the new administration has the wherewithal to make changes in greece that will satisfy the rest of europe. and i believe that with the decline of the euro germany is going to look a lot better and stronger in terms of their exports and that will effect the rest of europe so generally speaking a more optimistic scenario in europe will be good for greece. >> you don't really think that the country might actually eventually be bankrupt and leave the euro? >> no there's no reason for

that to happen. there's enormous amounts of resources in greece to be sold to the chinese or to others that want to come in and also there's a lot of taxes that have to be collected. the new administration may be able to put in measures to collect the taxes. >> talking about the euro zone as a whole, last year there was a lot of optimism among people here attending the conference. what's your take in do you think europe is attractive? >> i think things look better for europe because of the weaker euro and for the fact that the european central bank is now going to be a lot more aggressive. so we hope to see the loan to deposit ratio start going up so they're lending more and being more active in the market. i believe that will happen. >> i think one of the reasons why europe doesn't really see the big restart in terms of

growth is that loans are not essentially going into the right direction. so do you think europe is tackling that problem in the right way? >> i think that's going to happen for two reasons. one i think the european central bank will push the banks to be more aggressive number one. number two the weaker euro is going to help a lot of exporters here in europe. and if some agreement is made in ukraine, that would be another game changer because, again, trade with russia will blossom. >> let us talk a little bit about russia because of course that market might be at the bottom of the cycle but perhaps also not. so what's your take? do you think it's opportunistic players? is now the time to go into the market? >> russia is very very cheap now. russian stocks. the problem is sanctions. many of us are not able to go into the company's we'd like to be able to go into because of the sanctions.

once the sanctions are lifted you'll see a lot of money going in. >> that will be the trigger effect going back. >> exactly. that's right. >> very interesting take actually. i think loads of people are put off by the political instability in the country. but let us move on into asia because you're an outspoken expert and let me ask you about your biggest bet currently. which market is it? >> china. china has been our big bet for a number of years. it's still china because they're growing at such a great pace. whether you look at 7% or 6% with an economy that size it's a tremendous amount of money being squen rated in that economy. >> when you say china is the place to invest money into do you mean as a private equity player or shares? >> we're looking at both. we have private equity investments in china and of

course shares. so -- by the way, the other aspect of china is the opening of the market and the asia market has outperformed the 8 share which is what foreigners can buy. with the emerging of these two markets, then you're going to see a big boom in chinese equities. >> let's move back or to the other side of the pacific and pick your brain on what the fed is going to do next. they're conflicting messages. what's your take? are we going to see a rate hike as soon as june? >> it's going to be difficult for the fed to move quickly and aggressive aggressively. inflation is not coming up at a rate. many economists are missing the fact that the internet and

smartphones are increasing productive at such a rate that inflation is being held down. so i believe that the combination of the u.s. being uncertain how much they want to raise rates and europe and asia lowering rates and getting more money from the central banks means the global situation will be sort of stable. in other words one will wash out the other. >> thank you very much for your time and enjoy your time here in berlin. so we are staying here of course with our live coverage and we're talking to the chairman next here on the channel about direct lending in europe and whether private equity firms do have a better place in lending than traditional banks. with that back to you. >> thank you for bringing us that interview on worldwide exchange. janet yellen will be in focus

today. she heads to capitol hill for the first part of her semiannual testimony to congress. some fed watchers believe yellen could keep alive the idea of a june rate hike. last week the fed minutes suggested many officials were inclined to keep rates low even longer. but events such as the strong january jobs report may have changed their stance. you can see her testimony right here on cnbc starting at 10:00 a.m. eastern. >> and here at worldwide exchange we have decided to may a bit of janet yellen bingo. which single word do you expect the fed chair to say most often. oil or perhaps inflation? maybe we'll hear the focus on employment or patience. >> yes. patience i think is the word that analysts will be looking for when she takes it to capitol hill but i think from my perspective it will be oil. i think oil was mentioned 69 times during janet yellen's last testimony. >> was it? >> that's what i do on my

weekends. >> a big number to beat. >> i wonder if she'll focus on what central banks are doing around the world. maybe we'll hear those. we have to focus on that and get your suggestions into us. @cnbcwx the twitter handle. >> so let's have a look at what markets are doing so far today in europe and we are just below flat on the broader stoxx 600. markets react to the four month extension of greece's bailout program. they were all parts of the ftse 100 which lagged. today we opened a little bit positive and we are now just below flat. nothing too serious but of course over the last half an hour we've heard more details of what reforms greece has submitted as part of the four month extension to taken together the last two days

markets have welcomed developments in greece. the individual markets, ftse 100 is below flat again. disappointing return yesterday because of hsbc. germany is down a quarter of a percent as is france. the stock index rallied quite significantly off the back of the news that it now submitted it's reform suggestions. let's move on and have a look at telefonica which is up 6.35%. a strong rally as you can see today. that's after it offered a positive outlook despite posting a net loss in the 4th quarter on costs tied to its purchase of e-plus. of course they expect it to rise more than 10% this year. that's why it's done so well. let's look at bond rates and the u.s. ten year has just come off in terms of yields. so we saw a bit of bond buying

yesterday with 2%. that's an expectation, maybe janet yellen will be on the dovish side of neutral in her testimony. in a similar way to those last week. we were around about 2.14 by the week or so. germany 1.37. u.k. at 1.8. let's look at greek bonds. yields come back. positive developments as they have now submitted their reform agenda, the ten year below 9%. that's the first time i've seen that in awhile. interesting to see the moves we've seen at the shorter end. the two year at 30.7%. what's the euro doing? they haven't done too much today. it rallied strongly on friday on news that that extension was coming. it then sold off yesterday as people realized there was so much still to do and all in all we're in and around where we are last thursday before any form of

greelt agreement has been made. let's check in on markets in asia. sri is standing by in singapore as ever. >> broadly positive day in the regional markets. but volumes are still on the thin side because china is closed. the chinese financial markets will return to action tomorrow but i'll say this i think investors are just marking time and reserving their judgment until we get a bit more clarity on the path forward for u.s. monitoring policy and hopefully we'll get so visibility at the testimony later on tonight. elsewhere there are some bright spots and out performers. they're up by more than 1%. it's the first day back after the lunar new year for the market and it's really the halo effect from the balance we saw in apple shares and u.s. trading

overnight so the apple component suppliers had a strong day today over in taiwan. the dollar yen above 119. so looking firm. the weaker yen is benefitting the exporters. having a reasonably good session today. the only drag really was hong cog. hsbc shares pulling the broader index down. hangseng with all eyes on janet yellen. >> thank you so much. yes, you're right. she will be front and center today. aside from that what are we discussing on worldwide exchange? tensions running high as they reported evidence of russian military involvement. we'll be live after this break. plus is gold on the cusp of

entering a bull market? one analyst tells us why the fed's next move could be critical to the price of the special metal. plus what's a recipe for success at mcdonald's. why one trader thinks the burger chain should be eyeing for a tie up. that's coming up. these days, the most important person in your business could be a software developer. so, how's the app coming? we've got to make something great. how's the app coming? we've got to do it fast. let's do this on bluemix. you can build apps with analytics, big data, even ibm watson. that could give us the edge. let's do this on bluemix. it can provide code for you. we could be first to market. because being best is priority one. being first is priority one. there's a new way to work and it's made with ibm.

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>> wti is extending declines trading below $50 barrel after reports of an emergency opec meeting. the oil minister said if the oil price slips any further it's highly likely i'll have to call a meeting in the next six weeks or so. >> meanwhile in the u.k. a survey shows the gas industry suffered massive outflows last year. annual performance plummeted to a 40 year low thanks to slumping oil prices and higher costs. >> shares are trading significantly higher. this after they pledged more spending cuts to offset falls in commodity prices. earlier bhp reported 31% drop in profit. our colleagues spoke to the ceo and asked him about his outlook

on the price of oil. >> it's likely to persist throughout the 2015 calendar year but with capital expenditures reduced particularly in the u.s. shields sector we're now seeing a slow down in the rate of supply growth. longer term with new supply required to offset natural fuel decline, the outlook for a cyclical recovery in liquid's prices is positive. >> let's talk about gold because our next guest says the risk of tighter monetary policy in the u.s. is the biggest head wind and could push the price down to $1,150 in the coming weeks but he asked if the fed were to delay a rate hike it could be the trigger for a bull market. gold is hovering at a seven week low. also joining us is steven global head of fx strategy at bnp and i want to start with you

michael because interesting take on where gold is headed. of course over the last two years it is down about 29%. the first consecutive annual decline we have seen since 1998. how does what swranjanet yellen say today change the case on gold. >> a lot of that is related. you think back over the last say, 18 months europe was very aggressive. the ecb was very aggressive in easing. the fed was not quite as aggressive. actually looking more toward that. so what you had on the back of that was the stronger dollar. as one of the most significant head winds i would say for gold prices. so i think high interest rates in the u.s. as well is quite bad. so when you're taking it all together really what is holding it back. europe is already quite supportive. you need to have the u.s. tightening at a much lower space. >> but even if it's a slow and gradual rate hike as many are

expecting from janet yellen. >> i think that would already help but the question then becomes to what -- what is the speed of the rate hike and i think right now the immediate concern is you do get a rate hike. if that's being pushed back you have it. >> is gold not supported by potential buyers of gold in the u.s. aren't getting involved or because of what's happening in the u.s. people think i'd rather park my assets in something with a little bit of a yield. >> gold is supportive. it was not great demand last year but was sufficient to absolve all put into the market. what was actually missing is real demand particularly from the investors to drive gold prices higher. it's a steady picture at the moment. if you wanted to have it you need to have more investors buying them and that you don't have at the molt.

>> steve if we look at the global situation at the moment are we globally easing or tightening? >> that's a good question. i think the point i would say here is there's divergence going on and from a tightening perspective we have the u.s. and u.k. on one hand against yen, euro, swiss franc on the other and that's causing this quite, relatively dramatic moves at the beginning of the year. >> if we think of gold as an inflation head is there going to be a molt over the next couple of years when suddenly this fear of deflation snaps into an inflationary spiral and gold has a strong rally? >> i tend to agree with what michael had to say here. the fed is super important. what we tended to find is gold and the dollar have been correlated. the reason for that is the short end of the u.s. curve is driving both of them. so from my perspective, if we see a relatively hawkish response to janet yellen this afternoon which is our view we

think that the dollar can do well out of the back of that. what michael said that won't be very supportive for the gold price. >> there's a couple of factors that impact the price of gold. central bank policy but what about consumer demand? we have gold's top consumer india seeing a rebound in economic growth and sentiment is improving thanks to leadership in place. does that help push gold prices higher? if the indian consumer is buying more? >> it would definitely help but over the last 18 months you didn't have it so the indian government actually put several restrictions in place to get the current deficit under control and gold was a significant contributor to that current account deficit. now they have started to ease some of those restrictions a little bit. that would definitely help and i think china, again, is actually now almost on par with india with importance of demand but what we had in the past 12

months was a reelect of that. there was so much in 2013. so coming back would help a little bit as well and medium term emerging markets would be important for the gold market. >> before we wrap up on gold your note says it thinks it finds support 1200. we have fallen below that level. where's the next level of support. >> the next level is around 1150. on an annual average basis you can see support at 1200 given the picture. >> that predicated on what janet yellen says today. >> thank you very much. we'll just bring you some flashes out of the eu. it says the commission ecb and imf will now assess the greek list talking about the risk of

reforms it has now. only dispersed to greece once the review is there. the greek government is very serious following it's reform compromises and the list is just a first step. it's going to need to develop to see those more. it will take time to get into the details. the flashes coming from the euro group head. >> the justice department and the cftc are reportedly investigating at least ten big banks for possible rigging of the precious metal markets. the wall street journal says they're looking at the price setting process for gold silver platinum at the london metal exchange. hsbc barclays are among those said to be part of the probe. on monday hsbc said they had issued a subpoena to its u.s. unit last month. >> let's have a look now at some

of today's biggest individual movers. it's up 3.2%. it's agreed to sell the rail units. they'll require the 40% stake in signaling unit and we'll also pick up on the train business. as you can see, up 6.4% and the deal will cut the debt by 600 million euros. it's up 3.15% because japanese wireless carrier plans to sell the entire 5% stake in the uk satellite company. the price of the offering will be determined at completion of the deal. it's basically flat after they opened a full scale

investigation into the 14.1 billion bid. stefan is live. >> the european commission is concerned the deal would give general electric more than 50% of the global market in most parts of the world. a transaction would eliminate one of the main competitors to general electric and they're concerned this would lead to higher prices but it's concerned that it would result in less choices for customers. less innovation in the sector. a full scale investigation is not unusual for this type of transaction. they're offering euros to buy most of the them. they will increase it to make some concessions. a spokesman for ge says that the

u. s. company disagrees. that the deal would lead to higher prices and still hopes to close the transaction by the middle of this year and the european commission is expected to give it's final decision by the 8th of july. in the meantime general electric says it will cooperate with the commission before this full scale investigation. the market doesn't seem too worried about the outcome of this investigation as you said it's almost flat on the french market. >> stefan thank you so much. stay tuned because as the euro group prepares to discuss fwrees greece's latest reform plan we asked if they can live up to campaign promises. that interview is coming up next.

>> you're watching worldwide exchange. bringing you business news from around the globe. >> greek stocks rally to the highest level since december after athens delivers a reform plan that the eu calls sufficient and encouraging but the euro group head warns that the list is a first step.

he played down the fears of a gr gregxit. >> it is sold to others that want to come in and a lot of taxes that needs to be collected and they may be able to collect taxes. investors eye janet yellen's clues for whether a june rate hike is still on the table. >> investors cheer cost cutting plans as it deals with a slump in commodity prices. also reporting earnings that despite a big fall were better than expected. >> they make the biggest overseas acquisition snapping up the assets of the unit. the italian firm says the deal will help cut it's debt.

>> now about 40 minutes ago we have the greek list and it's being labeled and follow up it's four month bailout extension. they welcomed some of the contexts of that. they have come in to set into perspective what still needs to be done. they'll assess that list. money will only be dispersed to greece once the bailout review is completed. he says the list of reforms is just a first step and it's not on the table and not discussed. only one government had a meeting to discuss it and that was the british government. an interesting development that the british government did discuss that with the euro group. >> investors are seeing this as a positive development. take a look at the athens asc. it's up better than 6.5% in today's trade. we're seeing significant moves. yields coming off their highs as

much as 280 basis points after athens sent it's international lenders this list of economic reforms. investors see that as a positive development. you can see the yield on the ten year greek bond at 8.9%. it was up as high as 14% last week. so yields coming off their highs. >> this comes as the greeks revealed some details on that reform list. they're saying they want to eliminate incentives for early retirement and they'll review privatizations that have not yet been launched. they'll consult the eu on the scope and timing of wages in terms of the minimum wage changes. let's get more on this story and join julia who is live in athens. julia. >> thank you so much. you just did a run down of the more positive aspects as far as the europeans are concerned but what we haven't heard are the spending measures. that's what i want to see if we

want a cost benefit aanalysis and understand what it's going to cost the government now because some of the comments i have been having from people here in morning are guests saying the numbers aren't going to stack up. it's still difficult to try to push through the reforms they promised the greek people here we had positive noises from the europeans. the institution are currently pouring over the details of that right now but i spoke to the new democracy spokesperson this morning and he had an interesting view on why he believes the europeans would be willing to sign off on the details at this stage. >> they don't give money they don't have risk. all the risk is in greece. but there's a huge problem. if he wants to keep the deal with the europeans he had to vote for measures that will divide his party and if he wants to not divide his party then

he'll have to tip the europeans but then he will not get the money. so it's a dead end. greece is in a very difficult position. in our government will not accept that we extend the program they'll have to finish the program and they don't say it in so many words to the people and this is wrong. >> his bottom line is the green light as far as the extension is concerned on what happens by the end of april when they have to finalize the details of this reform plan but i'm joined by the former deputy finance minister here in greece. we'll talk through some more of these details. great to have you on the show. irrespective of the details this is progress. they're talking. >> it's definitely major progress. not just progress it's a gradual u-turn but it's getting will. the market is receiving positively this news. i'm sure the memo that the

government sent is going to be vague but we are on track and the more the government gets sucked into the european mainstream the better the results will be for greece getting over it's problems and turning the page. >> will it really? every other government struggled to enact the reforms the country needs now. why is this government going to be different and why is it going to be progress? >> this government is having a problem with it's left wingers, it's radical left wingers but the mainstream of the government party is now in favor of these reforms and don't forget there is a big chunk of center and center right parties that are absolutely pro-reform. so the big majority of greeks say over 70% wants a deal with europe and this is good news and we'll see them evolving. maybe at a slow pace but we're getting there. >> so we'll see them evolve to continue the you turn process we have seen. at no point do the people turn

around and say hang on a second. you made promises. will europe give them enough leeway to enact some of the promises? >> i hope europe is a bit more lenient and understands that greeks have seen their incomes fall by 30 to 35%. imagine somebody in the u.k. being told that his salary is going to be 5% less. not 5% more. here we have seen our incomes across the board 30 to 35% down and therefore people realize that there needs to be a reform and we need to get together with europe but though have to understand some of the problems here. >> the point is being made that they're willing to sign up to anything today but when they have to put money back on the table come april time they're actually going to be far more stringent about what greece has to agree to and ultimately given what we saw this weekend and the funding pressures in the greek economy they're effectively forced into a decision because they had no choice. >> it's an uphill battle but

nobody has another choice neither the germans or the greeks. and we appreciate the support we're getting from europe. we want some sort of agreement. we want the europeans to backtrack just a little bit. they don't have to make the sort of u-turn we're making. tax revenues are weak. we have a major social security incomes problem. there's no money in the social security system and our banks are off to the tune of $80 billion. so we need to come to some sort of agreement. >> you made a great point there. how does greece finance itself. we still don't have clarity with collateral whether or not they can issue t bills. what do you think is going to happen in the next month to month and a half? >> there will be some sort of emergency support program for greece where the major things will be discussed four months from now but there's going to be an interim. there's still some money for the next months or so but not enough to take us until april or may.

there will be an agreement. maybe financing the greek government through the greek banks and the european central bank. there should be some agreement. >> it makes sense to breathe a sigh of relief today? >> yes, we've seen it. it's good news that we're still making progress. slow progress but we're there and the more time passes i think the government will get closer to europe. the more they deal with the europeans the closer they will become. so it's good news. >> reasons to be optimistic because they're doing a u-turn. right now people are buying it. how long will they do so? back to you. >> steven we heard there a sigh of relief perhaps today and over the last few days but have we made any improvement in terms of the future of greece? >> the way to look at this is the market response and they're

extremely relaxed about this. the way i would focus in judging that is looking at peripheral spreads. they're very very tight at low levels. what that's telling us is there's contagion about the situation. this is a dramatic contrast to 2.5 years ago where it was all about the contagion. so the fact that the market is so relaxed tells us that we don't think this is a key driver of markets currently. >> investors keeping one eye on greece but today arguably the focus will be on janet yellen's system and in the past the fed acknowledged uncertainly out of europe or on the international growth scale. how do you think she will reference europe today? will it be about the ecb and central bank helping to provide a boost to the european economy or greece and the political uncertainty? >> this is a good question. clearly this is the real focus.

what janet has to say and specifically about fed lift off or first fed rate hike. your specific question about europe is a key one too. we think it's going to be qe referenced. that probably influenced the language in december but come january, we have actually got that stimulus from the ecb. so farce international is concerned we would say the international outlook is actually more positive now because of what the ecb has done. >> in terms of the domestic situation, of course we have seen better numbers particularly on the jobs front but really we should be focussing on what she says about inflation and not so much about employment; is that right? >> that's key but i would reference both factors because the point we have to make as far as the market is concerned, the most recent minutes are ancient history now. they pertain to january 28th.

the two key factors in our mind that changed since then is the payrolls report where we saw 0.5% earnings but there's been a cig significant improvement in inflation since -- >> oil prices. >> since october 28th. both factors are more positive. so from our perspective we think the two key areas the fed is focussing on have improved since then. our view is the market will probably take her system as being hawkish and that means the dollar will probably rally as a result of this. >> >> so let's focus in on our calls. you're long the u.s. dollar against the euro. >> we have three recommendations. euro yen and swiss frank. as far as today is concerned, our strong focus is the dollar yen. we think it picks up. the clear reason for this is positioning. we don't think the market is positioned short yen at all. relatively significant short euro exposure. therefore the one that can

really fly we think is dollar yen and we have a target in the next few months of it moving up to 125. >> thank you for joining us this morning. now vladimir putin does not expect the crisis in ukraine to lead to a full blown war against russia and it's neighbor. putin said such an apocalyptic scenario is unlikely. the president also said he did not see the need for another peace meeting with ukraine and the west. >> meanwhile, senior ukrainian government sources told cnbc cnbc kiev needs more weapons, cash and further sanctions against russia. ukraine could come under marshall law within a month if the missed ceasefire deal fails. head to cnbc.com to read the full story on the ukraine crisis. the eu is buying a big bank

proposal to boost capital markets in europe but will it do the trick? we hear from a leading investor cashing in on nonbank lending in the region. that's live from berlin after this short break. ♪ its effects on society really came about because, not because i was selfish and wanted one for myself, which i did. its because i had, had a passion.

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welcome back. we are getting some more flashes. the euro group president relating to greece's list of reforms and the latest one said he would consider a further debt relief for greece if all of the targets are met. that's an interesting extra little development for greece. at the end of the four month bailout extension the euro group will assess the situation and he says physical targets can be adjusted if economic conditions justify it. we'll bring you further flashes out of that press conference when we have them. now hitachi agreed to buy finmeccanica's rail business. we have the story live from tokyo. >> they will spend around $2

billion for this deal and it will mark the biggest overseas acquisition ever. the aviation company announced last summer that it plans to sell the rail car subsidiary and a traffic signal company which it holds around 40% stake. they have been competing with four companies including insigma and finally won the deal. they plan to hold all shares in the two companies and make a tender offer to turn the stock exchange listed into a wholly owned subsidiary. it will push up the annual sales of rail related businesses to more than $3 billion which is half as much as germany. the rail business was basically focused on japan and the u.k. but it will now go global as it gains the italian rail companies. back to you wilfred. >> thank you very much. >> european commission president

is pushing ahead with a proposal for a capital markets union to compliment a banking union in europe. this move is being dubbed the big bank. it's an attempt to diverseify. annetta joins us live. take eightway. >> i'm on hah topic. i'm joined by michael. a company is doing direct lending into europe. so first question would be on how is lending go in europe as banks are not doing that well. >> lending for us is going great. >> we have lost the sound there at that conference in berlin. we are going to come back to him as soon as when we have sorted

out that sound. are you bored of you day job? a new opening could be just for you if you're calm under pressure. >> you may think the queen travels like this but this is after all the 21st century and, instead, you'll see the queen in this. and if you ever wanted a ride with the queen, now could be your chance. the royal household is advertising for the position of chauffer to drive around the queen and other members of the royal family. you should have professional driving experience. be a team player and have attention to detail. plus, you should remain calm under pressure. if you're successful you'll get a salary of $35,000. but that also includes free room and board at the palace and 33 days of holiday a year.

you'd be expected to work up to 48 hours a week and among other duties you'll have to plan the quickest and most efficient routes while driving around town. something her majesty's current driver may not have known. last week the queen and prince phillip were stuck in bad london traffic. after a slight weight. their bentley made it through. you'll also need to be responsible for the maintenance of all the vehicles in the royal household. everything from checking the oil to maybe even giving it a good scrub. you wouldn't want to end up like these chaps when her majesty's car broke down on the side of the road in 2002. who knows, you could be out of a job and then she might just drive herself. cnbc london. >> i love that they advertise for that job publicly. now we have got sound back up and running in berlin. let's get back out to annetta.

>> thank you very much. i will introduce my guest again. thank you very much again for joining us. let us talk about lending to europe or to companies in europe because lending from banks seems to be quite sparse. how are you doing? >> they have about a $30 million global direct lending business and europe is one of the most fruitful economies for us right now. despite a desire to lend money into the real economy in europe banks are still very constrained in their ability to make loans into the market. interestingly this year there was a survey done of the largest banks in europe and the vast majority of the large banks said they would be tightening lending standards for small and medium sized companies so i think the real question at hand is who, if not us is going to come into these markets and make direct loans to companies. >> but are you concerned about growth in europe? so of course one of the

depending factors, whether a loan is successful for you is whether there's growth. >> yeah, growth is obviously an issue. i think that it's -- they feed on each other. so if we can actually bring capital to small and medium sized companies in europe spur economic growth spur job creation that's a self-fulfilling prophesy. so we're not worried about a lack of growth. we want to come help facilitate growth. >> certain companies and industry which are more attractive for you. >> generally speaking we're lending in northern and western europe so we have fully deployed offices in london frankfurt, stockholm, paris, madrid amsterdam. generally it's a great business regardless of the industry. >> looking at your leveraged ratios also about the southern part of europe it's still very high. also when it comes to company

debt. are you concerned? are you picking and choosing companies not leveraged? >> clearly what we are paid to do is to be selectors of risk but we get asked are we taking risks that the banks don't want to take? we're taking risks the banks can't take. it's a question of our ability to effectively price and structure risk that the banks can't do because of capital issues or capital constraints. >> what do you make of all the political turmoil we are having in the euro zone? do you understand it? don't you care? what's your attitude? >> we absolutely care. we globally manage close to $90 billion of global assets. it's in the euro zone so we are laser focused on what's going on. our hope and expectation is we'll get resolved and all go about our business. >> talking about what the ecb is doing, it's ultra cheap money around for almost everybody is

that propelling your business or rather bad for your business? >> depends on what you look at. with low, low interest rates it spurs asset values so there's an opportunity as an investment manager to make good investment returns. the flip side of that is you have a lot of liquidity in the markets so competition for assets increases and the need to be selective in what you invest in becomes crystal clear, the bigger issue for us despite what's come into the market capital still isn't finding it's way into the real economy and small and medium sized companies. that's something we're focused on. >> essentially that's a good thing for you, right? because that makes your business case but what do you think needs to happen that banks are going to lend again? >> sure i think as we saw in the u.s. we need to see the development of an alternative credit market and i think governments and central banks

are starting to realize this. about 18 months ago the u.k. government set up a program they call the partnership for business and what they did is they set aside funds to actually invest in nonbank lending platforms and it was in recognition that in order for the banks to recapitalize and have liquidity you need nonbank lenders providing liquidity as they rehabilitate. it's going to be about us not replacing the banks but supporting them as partners. >> thank you michael. that's a quick -- i'm sending it back to you. >> thank you so much for bringing us that interview here on worldwide exchange. coming up will fed chair janet yellen bring a shocker to the market? we'll discuss that next and potential market reaction after this.

>> u. s. futures point lower as investors eye fed chair janet yellen's system for clues on whether a june rate hike is still on the table. >> greek stocks rally after athens delivers a reform plan the eu calls sufficient and encouraging. the former finance minister tells cnbc the new government is starting to change it's tune. >> the government is making a gradual u-turn. it's definitely getting there.

the greek stock market is rallying to the tune of 6% which means the market is receiving positively this news. >> investors cheer bhp's cost cutting plans as it deals with a slump in commodity prices. also earnings that despite a big fall were better than expected. >> another day. another banking scandal. at least ten major banks with possible rigging of metal markets. >> you're watching worldwide exchange. bringing you business news from around the globe. >> we have the euro zone inflation data. it's come yearly minus .6% and

the monthly is coming at 1.6% which was in line with expectation down from the previous at minus .1%. so while it is in line with expectations it does see the euro zone fall further into disinflationary territory. the euro weakened off the back of that use. it's down a quarter of a percent off session lows. >> also want to get you up to speed. the u.s. housing company just reported earnings. q-1 earnings did come in better than expected revenue of $853.5 million on earnings of 44 cents a share. that's higher than the analyst expectations of 30 cents a share. we are optimistic about earnings growth in the fiscal year of 2016 and it expects to deliver homes in the fiscal year of 2015 at an average price of $725,000 to $760,000.

we should point out that housing stocks in yesterday's trade did move lower on the back of disappointing home shares data which did fall to a nine month low. taking a look at shares it did close lower as i was just saying in yesterday's trade as well following the broader housing sector. lower by 1.5% and over the past 12 months down about 2.9%. we'll see if earnings changes the price action. >> just going to bring you more detail on the european inflation numbers that we have had. the overall x energy number does come in negative territory for the month but positive .6% on the year. highlighting the fact that oil prices more than halved since june which is what dragged the cpi number further into negative territory. as we look into the numbers we're seeing that the deflation nary pressures have been felt most significantly in greece followed by spain. while all euro zone countries had negative inflation rates

hurt by the biggest drop in energy prices since september 2009. the euro down a quarter of a percent at the moment. >> euro trading at session lows against the u.s. dollar. what does this mean for u.s. futures? right now pointing to a lower open. dow jones down about 6 points despite the some what positive developments, if you will coming out of discussions between greek leaders and euro group policy makers. the focus today will arguably be on the janet yellen that testimony on capital hill. will she deliver a market shocker when it comes to when rates will be hiked up. that is the big question. taking a look at the global index we're falling in line with european markets and we're down about 5 points in today's trade. as we were saying investors taking a more cautious approach. will she use the word patient

when describing when the fed will raise rates. when were we trading? athens is seeing the greek market hearsay been a bright spot. let's run you through the broader european markets. ftse 100 down flat on the day. xetra dax down about 25 points. up about 13% so far this year and despite the run up in german stocks still trading at price to earnings ratio 14 times. still a discount to u.s. markets. cac 40 down nine points and some positive developments out of greece resulting in the athens ase to outperform about 6 approximate.4% and the greek bond market seeing yields come down. >> absolutely and positivity in the athens stock market not broadly felt across europe but yesterday was a strong day for continental europe but since friday european markets welcomed the developments in greece but as seema said at the top, the most focus today is on what janet yellen says and that did move the u.s. bond market a

little bit yesterday. we just saw yields come down a bit. we're below the 2.1% level. a little bond buying. that's on expectations she's on the dovish side of neutral. similar to where the minutes were last week but this time we hear her speak. we have the german yield, .38 and as seema was saying we have seen greek yields come off their highs. the ten year is below 9%. 8.92%. let's look at rates and the euros hung to session lows as we had inflation confirmed in line with expectation but following the euro zone falling deeper into territory. minus .6% was the headline number down from .2% last month. so we are just below the 113 handle on the euro dollar at the moment. we have a bit of strength against the yen today. and we have u. s. dollar weakness against the rouble. that's a 1% move.

63.08. quick look at commodities. we said earlier gold had fallen in and around a seven week low. it's down another half percent today and while oil did have a bounce yesterday when they suggested a possibility of an extraordinary opec meeting, that brief rally was short lived as was expectations that opec would get involved and do anything. so we have brent at 57.78. wti 49.13. >> it will be interesting to see what janet yellen says about oil prices. janet yellen heading to capitol hill for the first part of her semiannual testimony to congress on the economy and monetary policy. some believe yellen could strike a hawkish tone keeping alive the idea of a june rate hike. last week they suggested many officials were inclined to keep rates low even longer but since the fed's last meeting such as a

strong january jobs report may have changed their stance. you can see her testimony right here on cnbc starting at 10:00 a.m. eastern. >> and we are playing janet yellen bingo here at cnbc. which single word do you expect the fed chair to say most often? oil perhaps? inflation? the word patience we might see or employment. >> yes. >> and europe. what she has to say about europe is going to be seen as a tail wind versus a head wind. >> i wonder if she'll lump that in under international. >> will she call it actual markets? >> i'm interested to know where she gets most of her news. perhaps she'll say worldwide exchange. >> she must be watching this show getting ready for her testimony. what else would you be doing? >> we'll heard worldwide exchange and cnbc and seema mody quite often. >> i hope not. >> oil prices 69 times. >> 69 times during the last fed meeting. >> seema mody i think could get, what 50 hits.

>> no. >> join in on the conversation here. what do you expect janet yellen to focus on and which words will she hit most often. @cnbcwx is the twitter handle and our personal handles are coming on the screen now. joining us to discuss this further is david pierce director of business development another gps capital markets. very good morning to you david. thank you for joining us. of course a lot of focus on what we're expecting janet yellen to say today but there's a little bit of difference for the minutes. will she be taking a longer term perspective of what she says? >> i think so. i don't expect anything dramatic out of this current announcement. she is in a situation where you have a new congress that is now concerned by the republicans and i don't really think she wants to come out and make any waves

right now. i think she wants to keep people on hold. i don't think there's going to be any dramatic announcements that are going to come out of this. >> the fed has a dual mandate. we've seen an acceleration in jobs growth. how do you think she'll reference oil prices in today's testimony? will it be seen as a boom to the consumer or oil prices are keeping expectations low for the coming future and therefore we cannot see a rate hike in the next six months? >> really good question. what she thinks and what i think are probably two different things. when we look at the price of oil it's great for consumers in the short run but if we have oil at this price on a global basis is it really going to be good for the world economy in general? i think it's hard to say that it will be. there's so much investment

that's gone into the oil and there's a lot of people that rely on higher oil prices frankly. i think that she is going to try to discount this out from the general numbers when you talk about inflation and discount the price of oil on that because frankly a lot of this oil can go back up in a very quick hurry and if it does that you can see inflation make it. so she's going to try to down play the impact of oil. >> let's talk about what the oil prices are doing on oil prices throughout the u.s. it has sort of found a bottom. so should those currencies be a lot more volatile? have they found a bottom as well? the canadian dollar and australian dollar? >> sure. you know what i'm not sure that they have. the canadian dollar we deal a lot in that. if you look at where the canadian dollar currently is

trading, historically i have been doing this for 30 years and this is where i feel comfortable. mid 120s. i don't feel comfortable at all having trading here but i could see oil continuing to go lower. if oil goes lower and we see a price in oil this morning i could see it dropping further as well into the 130s. >> delivering a list of reforms. how are you factoring that into your investment thesis today? >> when we go out and give advice to our clients on what to do in the currency markets we have taken on account a lot of different things. we try to look at the technicals and fundamentals as well as information going out. we don't try to focus on one

specific thing. we try to look at a lot broader range of figures when we're trying to come up with direction for our clients. >> david thank you so much for joining us. david pierce director of business development at gps capital markets. now greece delivers. european leaders welcome a set of reforms from athens but more time is needed before ceilingsealing the deal. we'll bring you the latest after the short break. stamps.com is the best. i don't have to leave my desk and get up and go

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welcome back. just hours to go before janet yellen arrives on capital hill. eu leaders welcome a set of reforms from greece and legal woes mount as the department of justice launches a probe into possible rigging of metal markets. european leaders have welcomed a list of reforms submitted by greece with euro group president saying athens is committed to the proposal. but he warned that this was just a first step and more time was needed to workout the details. he said money would only be dispersed to greece once a bailout review was complete. julia is live in athens with all the details on the story. julia. >> thanks so much wilfred.

this is a basis for negotiations now and we have to see what part of these details actually push through on to april. it's interesting i spoke to the spokesperson of the opposition new democracy party and he said the europeans are willing to sign anything at this stage. there's no money being put on the table. we have to see what happens between now and april when they do and that could change things right now. but i spoke to the reform minister for the party now too and he said look what we're asking for here is the minimum necessary to tackle the humanitarian crisis in this country and allow the country then to bounce back. i asked him what his read lines were over the next couple of months. obviously we know rehiring the public sector work is ultimately one of the crucial red lines of the government but cautious about talking about anything else. even if we are seeing it right now the greek people seem to understand what the government is trying to achieve here and it

seems to be more about the fight than the result. listen to what they have been telling me. >> well up to a great extent i am satisfied because most important is you think that you are a part of a negotiation. the previous governments, it buzz just like they were accepting everything. so the most important is to be a part. of course you're in a negotiation. you cannot have it all. it's normal because you are in the weakest position. >> the new government it's trying. they are trying. all together because they are more honest to us. >> and people good all time economy crazy. so trick is over. >> i don't like it. >> no matter what we should and we have to back up fwrees at any

matter and instance and all the matters about the economy. >> your message is that anybody fighting back against the european institution should do it. >> most definitely. >> leegally though but in any legal way. we have to fight them. because they're monsters. >> strong messages of support follow the greek government from the greek people right now. a real change to what i witnessed over the last three years. the crucial question is what is the greek government going to do to finance itself? what we heard in the last few moments due to the greek press is that apparently the government talking to the tension funds here to use their surfaces right now in order to meet spending commitments. we don't know if that will be something pushed through but at least it's an option for this greek government but a lot of moving pieces still to get clarity on. guys back to you. >> julia, thank you very much. love those. not clouded in political

rhetoric like we're used to. we're going to bring you some further flashes on the story of course. earlier he said no countries discussed it other than the u.k. we have mark carney currently talking that said that the euro zone crisis is a serious issue for the u.k. economy. he says if greece were to exit in a disorderly manner he said this would have ramifications. the bank of england can look through one shock of inflation through the oil price. his own testimony to the u. kflt treasury committee continuing now. a similar version of what janet yellen will be doing this afternoon. sterling is roughly flat on the day, 1.543. >> political friction in ukraine. the growing threat of isis. coming up we're going to discuss the latest geopolitical landscape with a special guest.

>> speaking in kuwait he said the u.s. needs to be fully convinced that the use of armed force is necessary. he also outlined the need to use

the assistance of other countries in the fight against the so-called islamic state. joining us now is the ceo of global intelligence. i'm delighted to have you here. good morning to you. let's talk about the u.s. and western strategy against islamic state. has it failed? >> well there has been no strategy to begin with. since the inception of this the obama administration's foreign policy can be described to be or not to be. you you have to be decisive. there's no clear strategy. there's not a solid coalition. we have to take decisive steps right now and go on the all frontal attack. >> despite the recent trips taken by john kerry to address the situation and the growing threat of isis. >> he has been taking trips in the middle east for a long time but there's been no tangible actions from the united states. the coalition that has been built and the premise of the foreign policy of the administration has been flawed. they have been from get go

trying to make it with iran while ignoring key allies in the middle east israel saudi arab i can't -- arabia and this is the problem. >> the military battles over iraq territory are all part of the same war. help us understand what you mean by that. >> from day one, the only entity that has been fighting on our side, that has been fighting isis is them. but they have been fighting with one hand tied. if you look at it the economy has been dwindling. baghdad has stopped giving them their money that they deserve. we have not armed them. it is intertwined. if we had allowed the oils to be exported independently they would have had the financial wherewithal to fight this war and the united states and it's allies ought to rearm them so

they can fight the war. >> how serious is the united states war chest? >> well according to supports they have over $2 billion in assets. according to u.s. treasury they're earning a million dollars a day. if you look at the way they're operating they're operating like a nation state without the governance of the state. they have an outstanding army. they're recruiting people. they're on facebook and twitter. they have a social media program so they have significant assets and they have western educated people joining them which is also a threat. >> we're going to run out of time so let's move on and talk about russia and ukraine, has the west totally underestimated vladimir putin? >> yes to an extent but germany has taken a lead on it. the united states has been absent. they lacked the vigor to stand up to putin. mr. putin is doing what he does best. last time i was on the show i

said he was a bully. he still is a bully and if you look at it whether they're in a military enkurgs or not they're taking actives against the kiev government. they're instigating oppositions and all sort of measures which is an act of war. >> thank you for joining us this morning. that's the ceo of global intelligence. >> before we head to break take a look at u.s. futures and how wall street is fairing ahead of the open. of course the focus today will be on fed chair janet yellen. her testimony ahead of congress.

welcome everyone to worldwide exchange. thank you for tuning in. >> i'm wilfred frost. here are your headlines from around the world. >> it's all about the fed and u.s. futures pointing lower as investors eye the fed chair's testimony for clues on whether a squun rate hike june rate hike is still on the table. >> they deliver a reform plan that's called sufficient and encouraging. the former finance minister tells cnbc the new government is starting to change it's tune. >> the government is making a gradual u-turn. it's very gradual but definitely getting there. the greek stock market is rallying to the tune of 6% which

means that the market is receiving positively this news. >> let's get stock specific. investors cheer. bhp's cost cutting plans as it deals with a slump in commodity prices. the mining giant reporting earnings that were better than expected. >> another day another banking scandal. these ten major banks for possible rigging of metal markets. >> 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. take a look at u.s. futures. right now pointing to a lower open. a fed rate hike could have profound consequences. not just on u.s. markets but global markets as we have been discussing here on worldwide exchange. they'll get more clarity on

whether yellen and the fed will push it back to later this year because inflation continues to trade below the central bank target of 2%. right now we're looking at futures pointing to a lower open. the dow jones industrial down about 6 points. aside from watching the fed, though traders are keeping an eye on the nasdaq. it did close at another 15 year high in yesterday's trading. over the past month it's already up over 7%. the best increase in more than two years. are we in a tech bubble? does the nasdaq nearing 5,000 mean we are entering this bubble territory? you can head on to cnbc.com to read a piece that i wrote, whether this could be 2000 all over again. now as we keep an eye out on tech and the out performers we're seeing in the nasdaq oil still a big part of the story. volatility that we saw in yesterday's trade, oil prices continue to trade lower. we're looking at wti crude below $50 barrel. the international gauge of oil, brent crude at 58.69.

i want to point out the spot gold. we did see gold shares move higher over the past couple of weeks due to political uncertainty around greece but we have been seeing gold shares move lower. right now trading below the psychological level of $1,200 an ounce. keep in mind despite the run up that we have been seeing in european markets, we'll switch over to european markets, the xetra dax up 13% so far this year. despite the rally in german markets the index is still trading at a price to earnings ratio of 14 times. that's cheaper hanthan the u.s. markets. as we have been hearing that's one of the reasons investors say stablish on europe and start book profits when looking at the u.s. markets. we'll discuss that more in today's show. >> janet yellen heads to capitol hill for the first part of her semiannual testimony to congress on monetary policy. some believe yellen could strike a hawkish tone keeping alive the

idea of a june rate hike. last week they suggested many officials were inclined to keep rates low even lower but events such as the strong january jobs report may have changed their stance. you can see janet yellen's testimony right here on cnbc starting at 10:00 a.m. eastern time. >> our next guest says there's no rush to raise rates. joining us now is the head of u.s. rate strategy for fixed income. are you saying that the fed won't raise rates any time soon because inflation continues to trade below the central bank target of 2%? because there are some who say despite lower inflation you have to take a look at the jobs report. much better than expected. that's giving more ammo to the fed to raise rates in june. >> good morning, guys. the way that we look at it patience is a virtue on the part of the fed because we live in a globalized world and if you think about it given the policies that we're seeing out of europe and the ecb starting it's bond buying soon next month

and the fact that the japanese are still easing and there's been a whole host of central banks elsewhere easing in many ways it looks like the fed is tighter and it's been reflected in the dollar and the big move there. there's no rush in the sense of the fed having to precommit to any tightening. if you look at the way the minutes read and the way they're trying to move away from specific targets and date specific kind of you know lift off rates they don't want to be boxed in. >> let's talk about that rising dollar you just mentioned. how significant of a tightening has the rising dollar been. >> that's a good question. the way we look at it the dollar probably is worth about 100 basis points of tightening. everyone has different models of how you can arrive at those numbers but if you think about it if there was 100 basis points of tightening higher real rates in the u.s. and through other channels we have been seeing disinflationary forces

coming through the u.s. and that's lowering our inflation, that's done some of the fed's dirty work in our mind. >> and george this is the first meeting of the senate banking under the republican leadership i mean could that change what investors get from janet yellen today? >> look i think what we should prepare to expect that the standard remarks that will be put out will be about, you know more backward looking and will happen on the economy. both the good and the bad. we had some deceleration lately. we don't think she is going to overly emphasize that but there's been some weakness there. as you mentioned at the opening of the segment the jobs data remained robust. that's not enough of a criteria for them to start hiking. meanwhile there will be probably a shift more toward regulatory questions and just kind of moving more toward oversight and that could take away some of the discussion today on monetary policy. >> that's an interesting point you make at the end because of course this is the semiannual

appearance in congress and not the monthly meeting minutes. if we're thinking more about bigger picture topics or the longer term and the past rather than is short-term future what things can we look out for for them to be talking about? it's not as if we don't have a reoccurring update now. there's plenty of speakers and they're much more transparent than in the past. each of these quarterly fed meetings comes with a press conference. so we think that the semiannual testimony it's really the q and a part that we might see things that come out of it but outside of the minutes and reactions to the minutes we're going to have a good sense of where she stands. >> you'll get a hawkish surprise from janet yellen. where do you see the ten year headed today? we have been seeing it the yield at least above 2% for the past couple of days.

>> there's those that believe there's a hawkish response. we already see the minutes to be dovish so there's probably nothing new unless she wants to emphasize there's a weakness in economy. she'll probably stay close to what the minutes have said which were leaning that way but if we were to see her to be a little bit more seeing through the recent weakness. if she starts to project forward which would be unusual we could probably try to retest the 215 or 220 mark. we don't see that response given how much we have already sold off in the last month. >> thank you. head of u.s. rate strategy. >> now let's take a look at some of today's other top stories. they have a new target in it's sights. it's taken a 6% stake in

computer sciences and will continue talks over strategy and the make up of the board. cfc stock is undervalued. last week computer sciences plans to sell itself in a two-part deal. let's take a look at the price action it's up about 4% in today's trade. >> they struck a deal for $150 million expanding the wealth management and fixed income business. the deal will add more than 700 financial advisors boosting the head count by 35%. the wealth business manages more than $20 billion in assets. they may spin off the company's institutional equity and investment banking unit. they rose nearly 7% in after hours trade. it's up more than that today. now coming up here on worldwide exchange, u.s. authorities have opened up yet another probe of some of the world's biggest banks. find out exactly what's being scrutinized this time and the

possible implications. we'll be back in a couple of minutes. [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ ♪

opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. welcome back. let's talk financials. goldman sachs ending lower in yesterday's trade. it did say it was raising the

upper end of its legal cost estimate to $3 billion from 2.5 billion. now government officials told it in december it could face potential legal action involving the sale of mortgage bonds leading up to the financial crisis. one of the losers in yesterday's trade but we should point out over the past one month shares up about 5%. >> it's been hurting u.k. banks as well. hsbc suffering yesterday and some of the world's biggest banks have been under the microscope for regulators for several years with probes ranging from their alleged role in the financial crisis to whether they manipulated currency markets. now authorities are opening up on a new front. let's get out to cnbc hq where landon is standing by. >> wilfred, good morning to you. the justice department and cftc are reportedly investigating at least ten major banks for possibly rigging the precious metals market. they are examining how prices

are set for gold silver platinum at the london metal's exchange. they opened a civil probe. european regulators dropped a similar investigation after finding no evidence of wrong doing. the journal says hsbc barclays goldman sax, jp morgan, standard bank and ubs are part of the probe. on monday they received a subpoena last month related to precious metal's trading and the justice department saw documents from the bank in november. until last year prices for precious metals were set by a decade's old practice involving daily conference calls between a small group of banks. that process has been overhauled. benchmarks effect jewelry prices and financial products. previous probes into the interest rate and currency markets have resulted in billions of dollars in settlements from major financial firms. the justice department is expected to pursue additional

cases against companies and individuals in the coming months. some of the banks under scrutiny in the precious metal's probe are facing potential class action lawsuits from investors and traders. more than 25 suits have been filed against barclays hsbc bank of nova scotia for their price fixing. >> jp morgan plans to start charging big institutional customers to hold some deposits t. wall street journal reports the bank cites new rules that makes holding that cash too expensive. the plan will not effect the company's retail customers. they're expected to outline specifics at the annual investor day in new york in today's trade. take a look at jp morgan. shares up about .5% in frankfurt. >> no talks are expected in this week in the biggest u.s. refinery strike in 35 years. router reports face to face talks between the united

steelworkers union and shell may be on hold until the second week of march. it comes after the union pulled workers from three more plants this week bringing the total to 6500. they're trying to keep the plants running close to normal. >> they warned of serious risk after kiev failed to make a prepayment. the company said if ukraine fails to pay it could lead to a full stop of supply in two days. >> thank you. i've just come from a tax briefing with the finance minister and economy minister and prime minister as well he was saying the country is in a state of war. back to the financial ministers you just mentioned, they stood up and were talking about the measures including fighting

corruption, tax evasion, controlling customs and getting taxes in across the board as a key to put in this country on a path to stability as well. as you say there's grave concerns that this country is running out of money. the imf hasn't dispersed any money, would you believe, since september of last year and that's because the reform process after the elections in october has been very slow to kick off. we spoke to people the last couple of days that said it's only been the last three months we have been seeing meaningful reform. if the imf doesn't disperse money in the next couple of weeks are you going to run out of money? let's listen in. >> if the imf doesn't disperse money is ukraine going to run out of money and not be able to pay its bills? >> i think that the way, how we're looking at this after all our negotiations, we don't see

any reasons why any situation should have change. there's a strong commitment from the leadership on the reform agenda. there's a list of the key things that have to happen from now until autumn. they're committed. some hearings will be in parliament this week and next week. very clearly several will go into enforce. >> but just to confirm we're two weeks away from a full blown crisis where ukraine can't pay its bills. >> no. >> there's been a little bit more stability in the currency after what's been an absolute drubbing over the next couple of days. fell over that level in 2014 as well and there's concerns despite what that minister had to say or that advisor to the president had to say that they are running out of money in this country. he believed that as we said in the interview, that the imf

would be dispersing money when it had seen what the latest reforms are on the table. it's when such a large part of the economic output is tied up and in areas where in the briefing i just heard there's absolutely no tax revenue, no custom's control of course over these regions as well. not only are they fighting a war and there's concern about the settlement but they're fighting a battle to stabilize the finances. back to you. >> thank you for that report. quickly before we go to break, the eu said that euro zone finance ministers will hold a conference call on greece at 1:00 p.m. u. k. time. we'll bring you reaction in the european markets and look ahead to janet yellen's testimony after this short break.

welcome back. the help of a u.s. housing sector a key issue for the fed when plauding it's rate path. the index is released later today and yesterday existing home sales fell to their lowest level in nine months in january amid a shortage of properties on the market. that's pushing up prices making it more difficult for first time buyers to get on the housing ladder. joining us to discuss more the head of the housing sector. the director of think tank and author of the book foreclosure nation. still with us is the head of u.s. rate strategy. so i want to get your thoughts on the latest housing data we got yesterday. home sales falling to the slowest pace in nine months. what do you think is ailing the housing market ahead of the spring selling season? >> well what's missing from u.s. housing right now are the first time buyers and the entry

level and workforce buyers. that's been a problem for a long time and that's reflecting a real growing issue with afford blt and access which, even though we say real estate is local is a growing global problem. we're seeing it in france and sweden and india and china. here in the u.s. housing is more affordable than in some of the places, particularly in the cities but the problem used to be a conversation about wages and home prices which is still an issue. nout it's even more of an issue about supply. we just don't have enough housing units now. india has almost a 20 million unit shortage and we're seeing mayors starting to address this. the mayor of denver looking at these kinds of problems. we had so many units converted to rentals during the recession and builders stopped building entry level housing. they were focussing on the luxury. >> mixed data. how will that be factored in in

today's system in. >> housing has always played a crucial role to the u.s. it's been a shop piano move in housing and this plays a role in the fed's thinking. however it is focussing on disinflationary more than the housing sector in my mind. >> let's talk about that mismatch you mentioned briefly earlier between what builders are building and, inteeddeed what consumers want to buy. is that something we'll come to regret in a few years time? >> i really don't know. builders are building what the financing is accessible for and they haven't been able to avoid home prices. part of that is we have so many more renters. we have millions of renters paying more than 50% of their

income in rent. it's difficult to save a down payment. last year was the first year where homes built and sold for over 400,000 exceeded homes built and sold under 200,000. in addition to not building as many homes we had the wrong homes for this industry level buyer being built. i don't see the problem ending soon and with the interest rates rising potentially in june that's going to create a bigger issue. it's counter intuitive to lowering the mortgage insurance and allow fannie and freddie loan with the down payment, all of these things being done to enhance afford blt. >> we had the end of quantitative easing. when rates do start going up how much of a rate rise will mortgage payers be able to stomach. >> so the irony of hearing the other person on the line going over the affordability issues it will hit those that matter most on the lower end of the housing

side and the qe policy some would argue helped channel money into the upper end of the housing sector. it's not clear it's going to be a one size fits all. if rates do go up will it defer folks from the high end for buy in probably not. but having said that we really don't expect a massive rise in rates and we're really arguing semantics semantics. the fed when they start going they're going to go very slow and be very cautious. >> we'll leave it there. thank you for your time here on world wide exchange. >> that's all we have time for today. thank you for watching. >> don't move. squawk box is next. take a look at u.s. futures. they're pointing to a lower open ahead of the highly anticipated testimony from janet yellen.

good morning. it is another fed day. we have so many don't we? janet yellen heads to capitol hill where she is going to face a grilling on everything from interest rate hikes to central bank transparency. raising the roof with dow component home depot set to post quarterly results within minutes which gives us a unique snapshot of the housing, the consumer and the u.s. economy. can you say apple shares are soaring to another all time record. 775 billion now. will we hit 800? will we hit a trillion? the tech giant's market cap now more than twice that of exxon

mobil. that watch better go well. it's tuesday february 24th 2015. squawk box begins right now. live from new york where business never sleeps, this is squawk box. good morning everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. it's another fridged morning in the big apple. if you're in bed. stay there. trust me. manhattan with temperatures around 2 degrees. add in the wind chill and it feels about negative six but not just new york is feeling this. the latest winter storm is expected to spread snow and ice from the rockies to parts of the south today. there could be snow on the beach in part of the southeast. keith carson will be joining us with today's national forecast in just a