good morning and welcome to squawk box on cnbc. andrew is on assignment today. a scary situation on the tracks. another train crash to tell you about. this time a new york city amtrak train hitting a truck. it derails in north carolina. it got stuck on the tracks while trying to make a difficult turn. one of the trains cars flipped and at least 55 people including the conductor were hurt. >> other big stories we're watching today, credit suisse naming a new ceo. tidjane thiam will replace brady dougan. shares are rising on that report. in other news global news a new report suggests that

european stocks may surge 70% by the end of 2016. they offer investors a historic yield pick up over corporate and government bonds. the stocks haven't been this cheap for more than 50 years. when yields go negative that's what can happen. dallas fed president richard fisher is calling for the central bank to end it's monetary policy and press ahead with the interest rate hikes. he is steps down after ten years at the fed. >> it's been ten years? >> we know he'll probably be an nbc contributor? i would think. put in a call. really take his career to the next level. >> we should definitely do this. >> definitely.

take his career to the next level. really make something of himself. among our stocks to watch this morning, qualcomm announcing it will buy back up to $15 billion of its shares and share it's quarterly dividend. shares of urban outfitters getting a boost. posting better than expected squartly results. same store sales rising for the first time in a year and sky works solutions will join the s&p 500. it will replace pet smart. >> let's check out the markets. yesterday you did see stocks bounce back again. looks like this morning we are hooking at triple digit declines in the early hours here. dow futures down by 100 points right now. s&p futures off by close to 12 and the nasdaq down by 18 points. in europe and the early trading, at least at this point it looks like red arrows for the mayor

indies. overnight in asia the nikkei down by half a percent and shanghai down by .5%. oil prices down by 1%: let's look at the bond market. the ten year note looks like it's yielding 2.195% and in the currency market yesterday we were watching the euro at 108. today it ticks down again 10746. >> a near 11 year low. >> wow. if you take a look at what's happening the dollar is up against the yen at 12196. gold prices at $1,157.30. let's talk apple and it's big watch launch. check out some of these statistics. apple sold 700 million iphones.

close to 260 million ipads and 25 million apple tvs. can the watch move the needle. with us is dan. he is with hudson square research you're looking at the major tabloids today. everyone put the iwatch on the cover. what do you think of the prospects? >> they're quite good. a lot of people were focussing on why do i need it? that's the wrong question. the real question is will people buy it. the answer is yes. i think it's going to disappoint some of the bulls that have biggestments for it. a lot of people consider the ipad a flop. it generated $27 billion in revenues last year. it's like it's not helping apple. $27 billion in sales came from the ipad. the first year it did

19.5 million which was three times more than the phone did. >> well it wasn't a flop what do you mean people consider a flop? >> most people think well you know, ipad it's been tailing off. >> maybe they keep changing the subject. we have four ipads in my family and we already replaced a couple. >> phones are so profitable. >> no the phones sell a lot more. i'm just saying if you put it as a buy itself company it's doing well so i think what apple focused on was the device itself which is what they did with the september event i went to its not like cheap plastic gizmo which much of the smart watches have been. >> actually the sport watch, the lower end model feels light. it's solid.

it's hard. if you're a runner it will be great. but i really do think this is going to be -- everyone's comparing it to what it is before. >> you're so defensive. were there negative comments about this yesterday? >> absolutely. people were saying it's a disappointment and they didn't show new apps. but this apples withhappens with every apple event. people get excited about it. >> then they'll camp out to buy it. they'll do it this time too. whether it's something about the watch they want it's an apple product and they'll buy it. >> there's 700 people with an iphone. >> i don't think they're buying the $10,000 one. >> that would be in my mind -- some people thought it might go that high but actually -- >> 17,000. >> yeah 10 to 17. that's for the gold band but i think that at that level it will reduce. if you had hit 5,000 the numbers would have surprised you but at

17,000 they won't surprise you. >> the fact that the watch can answer the phone, men carry their phone on them frequently in their pocket et cetera. >> i have a purse. this is cool. >> so in the apartment i carry my phone around so that way i can answer it. this -- >> and in asia which started this whole craze. if you have the 6 plus it's too hard to get it out of your pocket. i like one i can access fast. >> you have a phone on your hand. >> i can never get it out of the purse in time. >> apple will lock down the hardware and it won't have as much functionality today as it will later. >> for some reason i don't think women was their target audience in this. >> i don't think so either but i can think of two reason why women in particular would like it. >> that's just the offset. >> but i was skeptical. >> anything apple does it usually is surprisingly well

received and positive. there's been a bunch of smart watches introduced people haven't felt the need to buy. >> android is 720,000 sold last year. >> apple is definitely different and i understand that. stock didn't act that great. i don't know what to think. i don't know what to think. >> it had a pretty good run up into it. >> it's down from $780 billion. i'm watching market cap now. >> >> it's amazing how many people don't understand market cap. >> it's actually a lot cheaper. >> how much cash? >> 150 billion net. >> so 740 minus 150 then. >> yeah. >> it's really -- >> when sis coe was at $600 billion it had cash other. >> so keep the cash in there trading at 15 times earnings. >> no i know.

>> people have been saying that for awhile and you have to rethink that and adjust that target. it reduces the ability to hit the market cap which is why i'm much more focused on the price to earnings ratio than the market cap. >> right but most important for tech stocks is growth. the other thing that really matters for apple certainings growth. >> you have to go from making $18 billion a quarter up from there. >> right. >> that's hard to do. exxon used to make $10 billion. if you think it's easy every quarter. >> it's not easy. what they do is hard which is why they have such a gap between everybody establish. that's the difference. but i think the watch might contribute 5 to 10% in the first fiscal year which would be fiscal 16. >> to revenues or earnings. >> to earnings.

>> and the people that have owned apple for six or seven years they seem to double and then double and then double. i've seen it in the past. these people get very connected to their shares. we have about 12 ipods, every apple product known to man but now i'm an apple hater because i point out the market cap being high. if they're long the stock they don't care what you're talking about. >> but here's what's different about it. >> will it double? is it going to double again? it doubled again and again and again. one more double is 1.5 trillion. >> not necessarily because they buy back stock. so the reality actually slows that. >> but you understand how as a buyer if you're sitting there you're trying to decide what stock you want to buy. >> who is bullish on the stock that doesn't own it now? >> the reality is relatively underowned in hedge funds in

particular. it's hard to recommend new money into apple here. maybe the watch will disappoint the high numbers and there will be opportunities overtime but there aren't tech companies innovating at this level. i define that as earnings. >> we haven't talked about hbo. >> i'd love talking about that. more interesting to me than the hbo announcement was cook continuing to hint and he said there's more to come on this. you're starting to see it come available but it's all messy.

do you know what apple is good at? packaging it back together in an easy way. i think we'll still see an apple tv service and they won't be first. they were the 3rd or 4th company to the music digital store. so i think that we're going to see an apple tv service that's going to take the over the top solutions and put it together in a way that the content guys are happy, the consumer guys are happy and they're earning money. the hbo thing was interesting but much more interesting we have more to come on this. i'm pretty excited about it but it's hard to say go rushing by the stock today, particularly given how much the market has been up over the last couple of years and there's global concern. it has a dividend. it's cheaper than the market and by the way is really innovative i don't find another company that i feel that comfortable with.

not even a safety standpoint. this company is growing. this is not just defensive. they are growing. they are inexpensive stock. doing all the right things for shareholders. i don't know what's not to love about it. >> dan, thank you for coming over today. >> thank you for having me. >> good to see you. >> coming up why coffee prices are poised to perk up. plus new stats on drug costs and as a result of the latest nbc news survey including a divided gop field. first here's a look back at this date in history.

can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

making headlines this morning coffee is the worst performing soft commodity this year. rain in brazil driving down prices but now commodity analysts are calling for prices to climb 15% by year end. >> also grabbing our attention this morning, pharmacy benefits manager express scripts reports that spending on specialty medicines rose by 31% last year. the big driver total prescription drug spending was up 13%. express scripts have been fighting against therapy's cost. we'll be talking to the company's chief medical officer coming up at 7 al eastern tile. >> let's now get to the latest nbc news wall street journal

poll and john harwood joins us from d.c. with the findings. >> this is a poll that's got bracing muse for hilary clinton and jeb bush because we asked voters, check out these numbers, we asked them what are you looking for when you look at the 2016 election? do you want somebody that is experienced and tested or do you want somebody who is more with new ideas and vision? by 59 to 38 they say they want new ideas and vision rather than experienced and tested and when you look individually at how they evaluate jeb bush and hilary clinton if you ask is this a person more tied to the past or somebody that has that vision and ideas jeb bush comes to the south end of that. that's an ominous reading for him. it's still a concern for the

bush team. hilary clinton has the same problem. the wife of a former president. got 51% of the american people saying she is connected too, tied to the pollties of the past. 44% say she has new ideas and vision. there's one other measure that we use, guys which was you ask primary voters in both parties could you see yourself voting for this candidate. not are you voting for them but are you open to that? jeb bush got a positive score but very narrow. 49% of republicans said they were open to voting for him. 42% said they would not. people like scott walker and marco rubio had a more robust score. hilary clinton had overwhelming almost unanimous support within the democratic party. that's one saving grace for her in this poll but jeb bush has something to worry about. >> that's the difference i saw

too john. if jeb bush at this point you'll see that because of the republican party which is more fractionated. they have a little bit of rumbling to the left of where hilary clinton is and she'll probably move that way but at this point in the republican race we know there's a conservative wing that distrusts jeb bush and i'll tell you what i talked to the governor and one thing that comes up -- >> which one? bush or walker? >> jeb, governor bush sometimes you have to lose the primary to win the general. hast the thinking in a lot of circles now. so whenever you do the polls if the republican can't count on his people the republicans showing up in the polls positively for him the democrats aren't going to help him out. they're going to come back with 85% for hilary because she is

there. you're not going to get that kind of reading on the republicans because it's early and there's a wing of that party that doesn't want immigration. but to get elected, you saw some of the numbers, didn't you, john? how the democrats have changed? how at this point kerry would win with percentages of the white versus hispanics and african americans. at this point it's a totally different dynamic. you to appeal -- i don't think you can win the he election like you used to in 1980. you can't win it. >> let me ask you a question because you're a pretty good reflection of a certain part of the republican party. what is your evaluation of jeb bush? >> i think that he is like probably the only guy that could take enough from independents and from the left to get over the top. it was an article i read. >> that's an he electability

point. but what do you think of who he is and what he can get accomplished? >> he makes a lot of sense to me. he's very practical and pragmatic about things and i don't think you go too far right. >> he's also legitimately conservative. >> he is. but if you are just absolutely anti-immigration, how are you going to win the general election? >> very good point. >> i swear that a lot of the discussion, the coverage that we see so far joe is when they talk about jeb bush not appealing to the hard right it's almost like by design to make it clear that he is much more a man of the middle relative to other -- >> not necessarily. we've had some big donors talked with us early on and a lot of them softened up but early on they were not a fan and not looking his direction. >> what do you think about jeb? >> well look when you talk about immigration i believe in the free movements of labor and

capital and goods. there has to be immigration reform that is about bringing immigrants that want to work here to be able to come here. so i'm very supportive of the view he has when it comes to immigration and i don't like common core but i mean it's hardly a reason why i would vote for the left instead of the right. >> once the candidate is there it's different. that's the thing. but then again romney i mean he got 59% of the white vote. that's not going to do it anymore. >> right. >> it was the peace i saw. it's different in term of demographics and you have to be a different candidate at this point. maybe they never win another general election. they'll keep winning on the other two year elections but they won't win the big one. >> you saw scott walker moving away from his position on immigration. he had been in a similar place to bush and he is moving right.

>> he's moving right to win and try to become the front runner. >> exactly. let me ask both of you, if you had to lay walker along side jeb bush and say which is the one that i identify with what they want to accomplish and their ability to accomplish it how do you stack them up against one another? this race could come down to those two. >> now you're pulling me. how about you john? do you like hilary clinton or elizabeth warren? >> i think jeb bush is by far the most electable republican candidate. >> he may be the only one that could beat hilary clinton. >> i have come to that determination but what i think doesn't matter and jeb is probably the front runner. i like scott walker and i agree

with the stuff he has done in wisconsin but feb is probably the front runner and walker needs to get that conservative base to try to win the early states. i would say a bush walker ticket is probably more likely than walker bush. >> i honestly don't have a very clear understanding of exactly what everybody would do if they were elected president. >> you're right. because they haven't laid it out. jeb bush -- >> not just in the republicans by the way. >> yeah. exactly. hilary clinton hasn't either. jeb bush has gone into a deep dive with policy people. he gave an economic speech in detroit a few weeks ago and didn't emerge from that speech having laid out any details. we expect him to do that sometime in the spring or

summer. the other point i would make is if you look at not abstract conservatism but things you can push forward and make happen i think bush showed in florida that you could accomplish some things that many others have not been able to accomplish. he has a track record to go with it. >> i know there's this sort of idea that the rhinos weren't elected the last -- you know doyle, no president romney no president mccain so there's a certain type of person that says the republican party needs to move right. i just don't think they're looking at demographics. you might get 60% of the white vote and still lose by 5 percentage views. >> it hasn't made the case that more immigration is actually a

very conservative principle. do you believe in the free movement of labor capital and goods and why is our country so great? because we take the best from all over the world it's a failure not have been able to make that clear to the voters. >> michelle that's a really interesting argument because what you remember from w and jeb, they talk about an act of love and helping your family yours is more tied to the economic argument which might have some possibility there. >> you know the private sector free market prosperity that has nothing to do with race or any of that and it can be broadly appealing across the board but immigration can be a

single issue vote for a lot of people and you're going to -- >> in the primary. >> no in the general. >> i see what you're saying. i was thinking in terms of -- in the primary if you're an antiimmigration voter. >> so you have to lose the primary. >> like i said from the beginning every time there's something that says that jeb bush isn't going to appeal to the hard right and tea partiers that's almost by design. >> michelle -- >> in chairs we should have done this maybe. >> michelle i want to know how much of a claim does rand paul as the leading libertarian in the race have your heart. >> i just don't think he has what it takes. >> can't get enough independents. >> i agree with him on so many

things and the isolationism. >> got to bring in the converts. not preach to the true believers. all right we have to get -- this is what was on -- its a long way off, isn't it? >> it's a long way off and some of the people we're talking about haven't announced they're running. >> we have to get this e-mail thing behind us. it's terrible. >> i'm leaving this segment to go straight to the alpha exchange program in washington. we're starting today. we're going to sitd down and talk to ron johnson about a range of things including the presidential race and his candidate for governor scott walker. >> ron jon. that's a shop. he can't use that. >> duke will be the number one seed i think. >> i think we secured that over the weekend. >> i can't believe they came back and won that game either.

they were so cold for awhile. looked like you. anyway we have no time for tears. see you john thank you. >> see you later. >> when we come back this morning we'll talk about the stories that caught our attention this morning including what autopsies can teach you. plus why burger king is making big menu changes for kids. first let's take a look at yesterday's s&p 500 winners and losers.

welcome back everybody. we have been looking through the stories that caught our attention. i'd like to start on a take of what happened with mcdonald's. mcdonald's said it had a serious problem. it needs to change quickly. the problems it's same in the united states, the store sales were down about 4%. much bigger drop than expected. they're trying to get on to had healthier food idea. they're not the only ones. there's a story about burger king saying you can't get a soda anymore your kids meals. you can be offered juice or milk. >> you can get one but it's not part of the meal. >> you get a drink, fries --

>> and for the kids meal for the whole thing. we haven't gotten soda for our kids ever. but at the same time you're hearing from wendy's. check out this video. we've seen the go pro cameras stuck on sports enthusiasts, wendy's has it to show how quick the process goes from the field to the stores and it's all of those guys trying to say we're healthy too. all the old line fast food companies that are losing out to the new fresher food companies that are out there, the quick service. >> diet drinks probably aren't great and the carbonation isn't great but one thick i do know is i don't drink full on -- nobody drinks full on soda. >> with sugar in it. >> it's empty calories. >> sugar is the new salt. >> what i can do with that 120 calories. >> exactly. >> sugar is the new salt.

it is. people talk about it now like -- it's like salt people. you actually need more salt and sometimes people with less salt had a higher mortality rate. >> did you see the article in the wall street journal. there should be more autopsies in the world. we hardly do more autopsies. medicare doesn't pay for them. there's so many more tests before you die they think they know why you decide. there used to be laws in the 70s that said -- >> you do an autopsy. i'm not doing an autopsy. >> listen to this though hiv killed people as early as the 1950s because they retroactively autopsied old issue. >> we didn't find it until the 80s. >> we hadn't identified the virus. >> but that's what you can learn

from an autopsy. >> you couldn't have learned about it. >> autopsying a very old body. >> but it tells you more about the disease and it's origins if you want to trace it back. >> most of the time it is -- you don't need to autopsy people over 90 usually, right? >> no it's not saying autopsy everyone but we ought to do it more is the idea. >> if someone dies and it's unknown at 40 or the young age of 59. all the characters. >> i love the simpsons. >> but it's supposed to live three months they told him in 2012 from colon cancer. that's the way to measure cancer too. when you're 90 and die that's one thing but 59 and die that's another thing. it's light years stolen from the disease. that's another way of looking at

that. if you live long enough you'll die of something. >> exactly. >> i wish we wouldn't. but i'm pulling for google. hoping for google. did you see that yesterday? live to 500. live as long as you want. >> what's the new thing? i didn't see that yesterday. >> the lead there's a guy named maris that's a biologist and they're both working on it but i hope they're hurrying. >> i do not want to live that long. >> i do. >> i know you do. >> i'm glad they're making the advances and giving us the choice. >> how old? 75? >> the minute there's any signs of dementia i'm taking control. >> you're walking right into a comment but it's not going to be from me. >> schedule it for tomorrow. >> you're not going to hear it from me. >> folks at home we need your help. we're introducing a new segment called keep squawking. tweet us the story you're buzzing about this morning. is there something you red that

you think the rest of our viewers need to hear and we need to hear too. tweet us and we'll read them all and share the best of the bunch in the next hour. start it out with us today. we'd love to do it. let us know what you're thinking about. >> going to switzerland. you know that. all right coming up it's something straight out of a movie. step into a dressing room and let a computer outfit you head to toe. now we're joined to talk about that and what she thinks of the apple watch right after this. financial noise financial noise financial noise

♪ help an oil company overcome minus 47 degree temps, 5 foot ice, and 16 foot waves, to safely keep crude oil flowing 365 days a year. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.

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.

join us now on set. good to have you here. >> thank you. >> we wanted you on today because you have a very sbrer active story. you brought your own wearables but first i want to ask you about the big news did you look at the apple watch? what did you think of it in terms of its fashion? >> i think it's beautiful and sleek in design and i'm excited about the customizations we'll be able to bring to the table with it. in the future what we're going to do with all the bands and the bracelets i think it's an exciting time to get innovative. >> you imagine yourself making products like bands for the watch. >> we're excited about a whole new ecosystem. you had that with the ipad and iphone. >> you're the co-founder. current software guy. >> absolutely. >> what did you think of the functionality of the watch?

>> it's great. all of those things are fantastic and it creates an opportunity for the whole ecosystem around it and the launch vat ji is fascinating. >> you actually already tried to do something similar. you have what's called the notification bracelet. >> yeah. >> if you can hold that up and people should be able to see it but you can program names into it and somebody calls me or texts me and i can read the message and see they're calling? what does it do? >> it vibrates. we wanted it to be fashion first and back into a technology that would allow our customer to still remain in touch with her friends and colleagues. it vibrates a little bit. you can set up to 25 people. it's beautiful jewelry that has a great function. >> if he's out on a date and she has her fashion watch she has some of the functionality she has been used to regarding notifications and alert. but if she doesn't want the am

watch when she is on a date or with friends or wedding or party but carry some of that functionality with her that gives the opportunity. >> if you had it in a purse. >> if i'm out, the only person i want to hear from is somebody telling me something about the kids. everybody else can wait. >> if you're in a meeting and you're supposed to put the phone away you can have that there and if there's an emergency you know one of 25 people might be calling you. >> i had this with the fitbit but i always wished it looked more jewelry like. that was my thought with the apple iwatch. oh cool something that will do the same thing but it looks good. >> correct. we felt like our customer wants to look pretty and feel pretty and can save the more athletic type things for when she is workout. >> i walk into the store and i don't have to try things on. how does it work? >> we wanted to look at all the different pain points when we walk in.

we have everything is rfid tagged and when you walk in the dressing room it senses what the item is. we recommend what you should wear with that and also four different types of lighting. who wants to know what you're going to look like in the evening with terrible daylight. so we tried to ease all of these things that a customer has. >> also you don't have to leave half naked. you can order things from within the fitting room and have them brought to you. a coffee or champagne or green tea from a large green as well and really for the first time you have been able to have the designer viewpoint with you in the dressing room. 30% of the people are adding items they never picked up. >> because there's a push suggestion coming from the software technology that says you ought to add this with this. >> exactly. >> but i still have to try the stuff on in the dressing room. >> absolutely. >> that's what is is beautiful about shopping in a brick and

mortar store. you get to use all of your senses. >> this looks like tom cruise. >> that's what i was thinking. >> so you guys decided to start this and you're like partners and then you decide to call it rebecca minkopfff. >> he has a men's line. >> today it's called ben minkopf. he's a world war ii fighter. >> you're getting left out. >> i'll take it back. >> your ego is in control. >> we have the longest global brand of the female millennial designer and we thought it was important to name it after rebecca. >> the technology is cool but you need to be a good designer. or do you handle the technology? >> it's a combination.

we talk about all things. it's a family affair with it. i push on her, she pushes on me. if you want to charge your phone instead of bringing the lightning cable. >> that little bracelet will charge your phone? >> yeah you take it out -- >> okay. hold it up higher. >> so you can pop it off. >> pop it off and put it in your computer and then put it back on to wear it. >> so you charge that and charge your phone. >> no this plugs right into the computer and there's not the digging that happens. >> how does it charge your phone? >> it plugs into the usb of your computer. >> or you have the jack. you plug it into the jack or the wall but now you're wearing that with you instead of having the white cord. >> maybe you'll have a company some day named something. >> it could happen. >> you might have seen the

future. >> would you let him have a division. >> i would let him have a little. >> i'm trying to help. >> thank you. >> you're younger. >> i'm older. >> thanks a lot, buddy. >> i thought you were fraternal twins. >> oh okay. keep digging. >> i'm so complicated -- i'm so confused now. >> i have four kids. but i do have fraternal twins. >> i thought he was your power. >> thank you i feel better now. >> thanks for coming in. good luck with the company. >> when we come back this morning she makes a living by making the american dream come true. what does property virgin's host want home buyers to know about the real estate market right now? she'll join us for a squawk open house right after this. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing?

♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

a new fear for the housing market. repeat foreclosures spiked 11% in january. here to break down the spring selling season and more the host of hgtv's "property virgins." her new book out today "keep calm it's just real estate: your no stress guide to buying a home." becky is like, star struck. >> i watch you constantly. i watched you when you were in new york.

i watch your new stuff in atlanta. you were impressive for keeping your calm. >> thank you, but i will call you in for backup. i love what i do. and so what did i say? when you love what you do it doesn't seem like work. >> property virgins means first time buyers? >> yes. are you a homeowner? do you remember what it was like when you bought your first home? >> scary. >> it's an emotional roller coast per. to have someone help you quarterback and navigate the process, that's what it's about. the book every chapter walks you through the process so you know what to expect. and it takes the fear and angst out. >> i just wonder we've watched some serious difficulties in the housing market. has your job gotten easier or tougher? i guess with better prices it's easier to convince people. but at the same time people think they're going to walk in and get a steal sometimes. >> it depends on which city you're in because everything's

different. real estate is local. sometimes even regional where things are happening. for instance, in the northeast, the weather has really made people stay in. they're not looking for houses. right now they're looking for warmth. whereas in the south and i'm based in atlanta, the market is hot. there are bidding wars at almost every price point. so obviously my job is easier. i say are you preapproved and i have great clients. >> do you drive? >> i do drive. >> do you have any fender benders there? >> i am want to plead the fifth. >> i know. you have no idea down there to see snow and ice and stuff, right? >> well we had a little dusting. up in new york we're used to several inches and life goes on. in atlanta you get a little dusting or someone talks about snow, it's crisis. >> what does plead the fifth mean? you did have a fender bender. >> it's a melting pot like new york. people come in from all over and they don't know how to drive. i'm sorry, atlanta, we don't know how to drive. >> are you worried about --

we've seen the 10-year yield creeping up to higher than 2%. are you worried about higher interest rates in the market? >> right now is the best time to buy when the rates are still in the 3s. interest rates got at high as 20% in the '80s. kp you imagine? you can still get a great rate on a mortgage. they are expected to go up a full percent or two the end of this year. it makes the same house more expensive for people. >> more difficult to buy for sure. >> what do you tell people about trying to do this stress free? it is stressful. >> i think part of the challenge i hear from people even when they've been through the process the first time they had a bad experience. so i don't want to do it again. i'll never buy a house again because they ran had into a tripup or didn't have an experienced realtor.

they're your quarterback walking you through the process. i tell people build your real estate dream team. that starts with your real estate agent. they'll navigate you through. wide receiver linebacker set set ra. which is your inspector and lender. be u before you start the process and look at house number one, get preapproved. know what your buying power is. it makes no sense to look at million-dollar homes if you can only buy a $200,000 house. >> "property virgins international" they totally ripped you off. your show's better. >> no comment. you'll get me in trouble. i'm calling her in for backup. >> 30 years i think are -- bad, i think. >> they shouldn't exist? >> no. i just wouldn't get one at this point. would you say to get one? no one stays for 30 years ever. >> on aempbl people buy their house and stay for seven years.

this people younger than 31. they stay for seven years max. >> all right. good. i'm a fan of 15 years. >> okay. 15. >> but fixed, not adjust. >> thanks for coming in. >> i appreciate you. when we come back a top executive on specialty drugs. stick around.

major: here's our new trainer ensure active heart health. heart: i maximize good stuff like my potassium and phytosterols which may help lower cholesterol. new ensure active heart health supports your heart and body so you stay active and strong. ensure, take life in.

breaking overnight, a spike in drug spending. some categories up as much as 31%. we'll speak to the executive officer from express scripps. >> how low will oil go? why some analysts expect crude

to hit $40 in the near future. >> and are you ready to buy an apple watch? we'll talk to reviewers who've got their wrists on the new gadget. the second hour of "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." >> welcome back to a head banging edition of "squawk box" here on cnbc first in business worldwide. i'm joe kernen along with becky quick and michelle caruso-cabrera. andrew ross sorkin has jumped into the mosh pit. he will be coming back when? >> wednesday or thursday. >> no no. >> he'd be taken apart. it was 15 years ago today that the nasdaq hit its all-time high. i don't remember this number. it hit 5,132 but that was on an intraday basis. that's right. because i figured 5050 was what

i thought the high would be just adding when they said on a percentage basis what we had to go up. but it was 5,048. that is the number to remember. the all-time high. it did plummet after that hitting a low of 1,114 in october of 2002. then it tested some of those lows not that many years ago. 2008 or 2009. >> a very long time. >> and u.s. equity futures are under pressure this morning. down 119. we have not had great action since friday with that great jobs report that has people scared of a quarter point. i don't think that's it necessarily. i think it's the dollar's getting strong. you know, you get currency translation issues. you've got weakness in the oil sectors of the s&p 500 and the numbers are going to be hard to justify. >> and i wonder if it's not just the fact the dollar's getting stronger, but getting stronger so quickly relative to the euro.

114 to 108. it's really incredibly fast. adjustment is hard. >> you know what? apple's not in the dow. when does it go into the dow actually? it's coming up right? >> i don't remember the exact day. >> these numbers aren't affecting anything yet. we'll see. not a great session yesterday with all the -- >> choppy trading with the announcement. >> and finally up about 50 cents. so the greek finance minister has once again infuriating the germans. this time by describing greece as the most bankrupt country in the world. he said european leaders knew all along that athens would never repay its debts. those comments coming after a documentary aired in germany the same day they were meeting in brussels. the comments causing a stir in germany where voters and politicians are reluctant to lend greece money. we were just talking about the euro this morning.

1.0761. look where it was just earlier in the year. nearly 1.33. just a huge move over the last year. this of course is mario draghi's dream, helps to make europe more competitive. it needs it to get out of the terrible economy they've had over the last -- since the financial crisis. dallas fed president richard fisher is calling for the central bank to promptly end its easing monetary policy and press ahead with an interest rate hike. he made the comments. he is stepping down this month after ten years at the fed. and credit suisse naming a new ceo. the group chief executive of prudential will take the role. tidjane thiam will replace the outgoing ceo. >> apple actually goes into the dow on march 18th which i think is next wednesday. express scripps out with a new report on the soaring costs

of prescription drugs. meg tirrell is here with this. >> now we're seeing the numbers. in 2014 prescription drug spending rose 18%. that's the most since 2003. specialty drug spending rose 31%. driven bay 743% increase on spending on the hepatitis c drugs. of course that was the gilead drugs. and we've been seeing price wars mounting trying to get exclusive placement on different formularies. that's been heating up. now they're hinting it's going to start hitting other areas. big one to watch. >> stay right here. let's bring in dr. steve miller. he is the chief medical officer for express scripts. thank you for being here today. >> thanks for having me. >> we're hearing what meg is just talking about. the numbers that you've crunched. specialty drug prices up 31%.

and that raises the question is it worth it? >> the great reality drugs coming to the market it's not sustainable pricing. and so we have to do something to both bring the products to the marketplace but also make it affordable for patient zblps how do you do that though? are the drug companies being unfair in their pricing? >> if you look at what happened with hepatitis c, because of the move that express scripts took we brought the prices of those down dramatically. what you're going to see in 2015 will be remarkably different than what we saw in 2014. as you know gilead has announced publicly they're giving 46% discounts. we think that's great because we're opening access to a huge number of patients but at a much lower price. >> how are they priced overseas? are we still paying a lot more for drugs compared to what the japanese or germans are paying for these same drugs?

>> we're really excited. in the only case hepatitis c, we are now on par if not even a little cheaper than many western european countries. for most our drugs, we pay about a third more than in europe. >> why is it cheaper this time around? >> for the hepatitis c it's because we were aggressive in beating the prices down. but the reality is that we've got a lot of other categories we're going to have to work on if we're going to get drug prices under control in the u.s. >> what do the drug companies say in response steve? this clearly changes the profit scenario for them changes what they have seen as status quo for a long time. >> yeah. so we're actually having much more interesting discussions with the pharmaceutical manufacturers. it has truly changed the dynamic. what we think value truly is for their products. and so we're being invited in to talk to their senior executives. even invited in to talk to some of their board of directors to

really give them our input as to what we think the value of our products are. >> we talked a lot about these cholesterol drugs that should come to market later this year. regeneron we've had on a bunch of times. they are saying they're looking to do a fair price. you say you're having conversations with them. is there a price drug makers could set at the outset where you wouldn't seek a discount? are you guys going to seek a discount regardless of what it is? >> we're going push really hard because we've got to get to the best price for our clients. but the reality is we think the demands is much different. you're exactly right. we're having great conversations with re onron, amgen. so we would really like for the right price to be the price they bring it to the market in. >> dr. miller this brings us back to a conversation we had with you several months ago. i think it's great you're looking at ways to make sure you're getting the best prices for your customers 37 but i still have concerned whether consumers will be able to get

the drugs they need that are new to market that are just making sure they have the access to all of those. how do you reassure consumers? >> our goal is exactly what you're saying. i would love not to exclude a single drug. what you'd really like and let's take the inhibitors. you'd like to have both products available to patients as long as they're both fairly priced. our goal is really what you're stating. most choice at the lowest price. >> you mentioned fairly priced. i'm sure your idea of a fair price and the drug company's idea of a fair price aren't exactly one in the same. >> that's probably true. we're going to aggressively push. that's how the market balances itself. >> wouldn't it help also when it comes to trade negotiations if we were a lot tougher on other countries to say why do you, a wealthy germany or a wealthy japan, why do your consumers deserve subsidized drugs and cheaper drugs which means we

americans end up paying more? >> i could not agree with you more. what we've told manufacturers is you don't want just 300 million americans paying for the development of drugs. you want to spread that out across all wealthy patients which means 600 people people across the world. all western countries should be paying much similar prices for drugs going forward. >> dr. miller you're a pharmacy benefits manager for how many consumers? how many people come under your watch? >> we represent about 85 million americans. >> when you start talking about numbers like that i agree with you that the market has to operate and there has to be a give and take. when you start talking about numbers like that where you represent, let's say, 30% of america, maybe slightly less than that, 28%. you are talking about really big, giant companies who are going head-to-head. that's where it becomes less clear it's free market and more of a battle of the giants. >> if we were that giant and

effective, you wouldn't have seen drug prices increase by 13% in 2014. so i think -- >> fair point. >> so the reality is that even with us in the marketplace you're seeing unbelievable increases in price year over year. i'll give you another great example. a great cancer drug that's been out on the market a long time took a 19% increase in 2014. how can you justify an old product with no new costs going into it taking a 19% increase? and in europe they don't allow these increases. so americans are funding world drug development. >> that is a very fair point. >> but you're not suggesting that the u.s. should be like europe and not allow that right? i mean it should move the other way. that the europeans who in their famous welfare state should be willing to pay more for drugs as a result of being wealthier, right? >> exactly. we actually share it with you. we think the american market is correct in that we also foster the innovation.

so we want innovation but we also need affordability. and the europeans and other wealthy western countries need to pay their share. >> okay. >> dr. miller we want to thank you for joining us today. and meg, thank you. still to come the apple watch. the reviewers have gotten their hands on it. what do they think? a hit or a miss? nobody knows, i can tell you that at this point. stick around. we'll find out. but next why some analysts are calling for oil to fall to $40 a barrel. plus the cfo of morgan stanley with us live. and then later the man who pushed gm to buy back billions in stock, harry wilson will join us first on cnbc. "squawk box" will be right back. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else.

put our global active management expertise to work for you. mfs. there is no expertise without collaboration. can data help cure a disease? the right treatment for you is out there. the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal. and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm.

welcome back to "squawk box." to the futures right now are suggesting a negative open. some attributing it to the strength in the dollar we're seeing with the euro at 1.07. the s&p lower than by a little more than 14. a couple of stocks to watch today. qualcomm announcing it will buy back up to $15 billion of shares and raise its quarterly dividend. shares of urban outfitters posting better than expected quarterly results. that stock looks like it is up by 5.8%. also skyworks solutions will join the s&p 500. it will be replacing petsmart

which is being sold to bc partners. goldman sachs saying it's time for producer to get real about production. here with the details, kate kelly. was this guy there for the superspike call? >> we talked about that the last time he was on the show. that was one of the equity calls. i think they were saying 200 or above not the same guy although he was there for the same period of years. he's the commodities analyst that i'm referring to. that was argim murphy. although they dropped on oil dramatically from the $80 range to $40 in both brent and wti for the first half of this year. with prices expected to bottom in the second quarter but also weakening substantially in the quarter we're in now. now goldman still talking about $40 oil but recent fundamentals have surprised it.

including from u.s. shale drillers who are favoring their higher producing wells and are encouraged by outside investors all of which may delay the inevitable. figures this morning suggest from companies here and in canada is 8.4 billion for the first few months of this year alone. approaching last year's total of 10.5 billion. and the junk bond market is also going gang busters. practically doubling where we were at this point last year. investors obviously want the returns and they're betting on a good moment to buy the dips. there's speech about a "v" shaped or a "u" shape. and they're also looking for fat yields which aren't easy to find in this low interest rate environment. but to goldman, this might simply prolong the era of cheap crude. we believe lower prices are required to ultimately supply

rebalancing in the u.s. which has become the swing producer. cheap commodities analyst said to investors in a note yesterday. so showing where it might be working across purposes. >> well i will take this at face value. i'm not going to say, you know could have told me a year ago that this was going to happen. they're still talking about $10. they're talking about 20% even lower. >> right. he mentioned a 35 handle on our air about a month ago. i'm not sure they're backing off of that. the note was confusing yesterday. some people took it as actually a bullish call. they thought there was upside risk to this call based on stronger than expected demand. on the other hand they're saying these third party investments and the fact that companies could keep drilling weather the storm, get outside capital. that could -- >> people are still lending money even in the face of this? >> yeah. the junk bond market is sweeping up. it varies. the worst trading bonds, of course are giving you 10%

yield, 18% yield. i mean, not bad in this environment. it's worth noting we've seen a couple of bankruptcies in the last 48 hours. there's another company that said publicly they may end up in bankruptcy. >> do they have decent assets? >> debatable. as you know, people are combing over their assets to see what they like. i believe they're a little more exposed on the natural gas side. so depends what you're looking for. but the most troubled companies here -- >> that's the story here too. people just craving. >> right. that's what i was eluding to the issuance numbers. >> the bullish case is assuming the thing that most people say which is why i'm uncomfortable with the forecast. you know most people are say -- goldman, that's another reason why i at least admire them for

going out on a limb. most people they're so quick to say, you know when they miss it on the way down to 50 they're quick to say i was right. it's coming back to 80 by the end of the year. that's the way it has to be. they don't even have good reasons. wouldn't you say consensus is it'd be back to 70 or 80 by the end of the year. >> i don't think it's consensus. >> it was a month or two ago. >> i think you see 65 bucks and goldman in this note we're talking about said that was a little too high. looking at the charts i do think there's a sense of pragmatism and hunkering down setting in. you know this from rex tillerson. we could be in this cheap crude for awhile. i went to a forum yesterday, they don't show any sign of changing their posture so far. >> the guys who have been doing this for a very long time like the rex tillersons and harold hamms, that's what they're anticipating. >> although harold hamm was late to get it.

he was talking about bottoming out in november in the 70 or 80 -- >> but he is now. we saw him just a couple of weeks ago and he's saying forget it. we don't see anything letting up for some time to come. >> interesting. >> and they're changing their cap-x spending as a result. >> the thing confusing people is you see cap-x cuts across the board of an average of 30 to 35 dollars. yet production is up 10%. so what's happening is you're basically shifting resources to your more productive wells. >> the other thing is it'sless expensive now because there's not the boom mentality. some of their costs come down. >> for the equipment and drilling and everything else. >> and people say that's really going to be the case in the permian basin. but he's one of a few who have said at 50 bucks we can still make it economic. a lot of doubters on that though. a lot of doubters. we'll see. >> all right.

let's bring in carl larry and see if he has anything different to say than he did on friday. weren't you here on friday? >> i think i was in. so same what you said friday or something different going on today, friday? >> same thing here. the one thing that's probably played a factor not many people are paying much attention to but it's like everybody else in the economic world. the strong dollar. the strong u.s. dollar is really just taking its toll on the price of oil. since oil is priced in dollars around the world, that's where the pressure can come. if we see a strong dollar to the end of the year it might have to put pressure outside of america to change up the plan here. >> in russia, if it's in rubles it's doing much better right? >> i don't think russia is doing

well at all. >> right. although the stock market is up this year. i'm joking a bit, but the currency element does matter michelle. >> it's huge. it's one of this reasons they let it weaken. it's easier for them to balance their budget. they're getting so fewer dollars per barrel. >> and if you're a company you have to face the prospect of doing dollars overseas and rubles domesticicly. so it's a real factor. >> what do you make of the fact people still want to lend these companies so much money in the faces of oil prices falling knowing that's what adds to oil prices falling? >> you know that's really interesting. what's going on or at least what i hear is a lot of the companies that have higher technology or better innovation or enhanced recovery, those that have the money to invest there in the wells producing, they can reproduce from those wells. those are the companies doing okay. that's why we see production high. it's the companies that can't afford that to go back into the

wells and bring oil out. they're going to fall by the wayside. i think the numbers will be a lot bigger. even if we do get to $70. so there will be a dichotomy of who's making it and who's not making it and a big split by the end of the year. that could hurt oil production. we could see smaller companies that are producing the smaller amount fall by the wayside. >> i learned something new. i thought it was indafatigable. >> the fact that these wells have a much shorter life span than they did pre-fracking. it's two years in many cases. that's going to slow down production whether or not people want it to. >> thanks. when we come back this morning, female drivers want it. what's behind's uber's push to hire more women? and ruth porat will join us on a first on cnbc interview. stick around. "squawk box" will be right back. can it make a dentist appointment

when my teeth are ready? ♪ ♪ can it track my crew's performance, and protect their heads? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ at cognizant, we see opportunities for every company. to meet the new digital demands of their customers. can it process my insurance claim? like, right now? can it download a track while i'm sampling it? can my keys find me? with the power of digital, analytics and automation now every little "thing" can provide even greater value. ok, so can it tell the doctor how long you have to wear this thing? the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com why do we do it? why do we spend every waking moment, thinking about people?

why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the s60 sedan. from volvo. this month, get these exceptional offers on a new volvo. visit your volvo showroom for details. welcome back to "squawk box," everybody. uber has been under fire because of driver assaults on passengers in several cities. they are pledging to enlist 100

million female drivers by 2020. there are currently 200 thourkss in the united states. it is tied to u.n. gathering on women's rights. tonight where uber's general council will be speaking on this. if it's assaults from the drivers are you worried about, now is it assaults on the drivers if women are driving? i wouldn't pick somebody up at night in my car. >> i'm a woman and sometimes i feel like punching somebody. i don't know. coming up next apple taking the wraps off its new watch. is it going to be a hit or a miss? two gurus check in with their take. take a look at u.s. equity futures. they show a negative open at this hour.

e financial noise financial noise

financial noise financial noise

welcome back to "squawk box," everybody. airbus' sales chief is cautioning a final decision depends on the health of the

supply chain. chinese authorities are fining procter & gamble's toothpaste division nearly $1 billion. and futures pointing to a lower opening this morning. yesterday we saw a bounceback from the losses on friday. but still triple digit losses for the futures this morning. things have gotten worse since we started. dow futures down by 169 points. s&p futures off by 20. the nasdaq down by 35. joe, i can't find a reason aside from thes concerns about -- >> spoiled brats. methadone addicts on the stocks. rates might go un, oh no. >> i think you're right about the currency issues. >> i think it's just -- it's simple as taking the bunch bowl away. in percentages maybe we go down who knows? 5%? 10%? but after six years.

>> it would happen before the rate hike, right? >> it's happening now. >> i just hope it's not the fear people have. because we have now thought that as much money as they gave us they gave us everything we wanted. and we now think we can have our lunch and eat it too. there will be no negative increasing the balance sheet to where it is. >> no inflation. everybody had fears of inflation. >> and we had to clear the system. the fed came to the rescue every time. i'm hoping that they don't all of a sudden -- it gets dicey enough they say we've got to do it again. >> they could use the dollar as an excuse to do that. they could use inflation as a way to do that. >> i think only 15% of people know who janet yellen is.

it was in a poll. >> how does that compare to greenspan or bernanke? >> i think to the end people said bernanke. among the top corporate stories, credit suisse is naming the new executive tidjane thiam will take the role. will be replacing brady dougan. who sounds like a young doctor. like a 16-year-old doctor. >> are you thinking doogie howser? >> oh. we caught up with him and talked about the job he was leaving at prudential. >> q4 was very strong. i'll be still be around presenting q1. so you need to leave with a clear conscience. >> and the shares of credit

suisse are actually rising on the news in early european trading. >> so before apple unveiled details of the new watch, the company sed some light on the scale of operations trying to give justification to the market value. dom chu joins us now to take apple by the numbers beyond the watch, right, dom? >> if you look at it this way, a lot of people focused on the watch announcement. a lot focused on the macbook air. these numbers meant a lot more than those particular product laumpbls. there's a justification that they say could be there for this massive market cap making it the richest company in the world. first of all, tim cook says they just opened their 453rd apple store. a lot of that in the past month or so coming in china. high growth market for them. they had 120 million retail customers go through their doors this past quarter. so a mass surge of people just trafficking through their stores. now, they sold 74.5 million

iphones last quarter. we learned that from their quarterly report. but tim cook then said they sold their 700 millionth iphone just this past week. 700 million iphones have been sold. apple pay, the big thing for payment systems here. 2500 banks are on this apple pay platform. and there are over 700,000 retail locations that now accept apple pay. that's up from 200,000 when it first started. again, huge scale. if you look at the overall picture, look at the chart from apple since they launched the iphone in 2007. it's a massive move higher for this stock. every time we've seen this move higher for the stock, it's been -- we've seen product announcements kind of fall by the wayside here. the stock doesn't necessarily go up. if you look at apple through the years, there have been cases where these dips have always been bought. there's a bearish case here.

richest company in the world. still a lot of people point to these stats as why the company trades at the valuation it does. you can see that chart. back over to you. >> thanks dom. we've had that debate all morning about can it keep moving the way it's moving? >> i mean 945% since 2007 when it laumpblnched the massive. >> now it goes into the dow. hopefully it continues to go if it doubles again it's going to be $1.5 trillion company. if it doubles again. people that have had it for eight years or so have seen it double and double. and they're, like. >> remember there has been a precedent. this stock did pull back 40% at one point in the last few years. it all depends on timing. a lot of people will say if this keeps on going, it has a big effect.

>> the large numbers. if you're making a choice between two different stocks you think what's more likely to double? something that's just a smaller market cap, period. right? >> and universally loved companies have trouble. there's no one left to buy the stock from the people that have owned it for the last six years. you know? we'll see. >> but that's the -- >> you said 700 million iphones. when someone says a billion of the watches, that's not totally -- that sounds ridiculous, but it's possible i guess. >> i would just say this. remember the old dream. people used to say if i could just sell a toothbrush or something to every person in china, how rich would i be. well apple just sold 700 million iphones to people around the world in the span of eight years. and that's -- the margins there are probably higher selling price than toothbrushes. >> it changed my world, it did, to know what i can do on that

iphone no matter where i am. >> it's a computer in your pocket. amazing. >> i'm not an apple fan boy but i do admit i had an apple iphone. it changes the way way do a lot of things. we have tech reporters who spent time testing out the apple watch. you got to try it. what do you think? is it a winner? >> i think it's going to be a winner. does everybody need a smart watch on b their wrist? of course not. but this thing actually looks nice. first of all to call it a is watch, there's watching. there's three collections. a bunch of different watch bands. so it actually will look different depending what you choose and how much money you're going to spend on up to 10 grand. >> i don't think of it as a watch. it's a phone on the wrist. >> yeah. it really is. and by the way, you still need the phone in your pocket.

so it's a companion to your iphone. it's not going to work with anybody else's phone. but yeah. it's a computer on your wrist. you can use it to pay through apple pay. you mentioned apple pay. open a garage door. open a hotel door. >> i saw that. we were talking earlier the difference between men and women. the men often have the phone right on them in their pocket. women running around and whatever my fitbit tells me when my phone is ringing. i like that. now if i can answer it on my wrist, that's a big seller as well. a big winner. >> that's right. the funny thing about apple is they have this habit of getting into new industries in order to change consumer behavior. this is a new type of behavior. you can call an uber or you can start doing text messages. so i think the question is sort

of like what they did with the ipad a few years ago. can we introduce this new form of consumer behavior to the masses? and that's the sort of you know, i don't know -- >> to answer your question, is this is a thumbs up or thumbs down on it in your opinion? >> i think it's an inevitability that wearables are going to come. i personally always wait maybe a generation or two before getting these new apple products just like the new iphone. >> come on. you're a tech writer. you've got to be an early adopter. it's in your dna, isn't it? >> i'll try it but i don't know if i can sign on right away. there are going to be bugs they'll have to work out. >> is it going to sell well? >> i think so. $350 is not the same as paying $600 or $700 for an iphone. so people can chill out for the sport, you know. it's a funky thing. if apple can get a funky new thing out, they're the one to do

it. >> ed the connection with hbo, how important? >> i think it's very important. i mean we're seeing all sorts of these so-called over the top deals. the idea here you'll pay 15 bucks a month, be able to watch stuff exclusively on demand through apple tv which they lowered the price to $69. so that's a pretty good price from $99. i think it is a big deal. the consumer has a lot of power in what they're going to watch. but i wouldn't underestimate the lore, if you will of the old cable satellite companies. ultimately they do provide a service of pulling it all together for you. so you have hbo over here maybe you have espn over there. the idea is there's some convenience factor that i think we're forgetting here. but certainly i like the idea that you can have apple tv and

watch "game of thrones" if that's what you want to do on demand. >> all right guys. we'll see how this plays out, see how it sells. thanks for joining us this morning. >> sure. >> thanks for having me. coming up a first on cnbc interview with morgan stanley cfo ruth porat. and later, harry wilson ending his war with gm. the company buybacks smoothing things over. we'll see whether harry wilson and sons will carry the apple watch in their jewelry stores. 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.

just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business.

welcome back to "squawk box." the futures right now are indicating that we're going to have a negative open. the dow would open lower 166 at this point. s&p by 18. and the nasdaq lower by 42. coming up in the next hour we're going to have russ koesterich from blackrock. >> you said -- oh okay. morgan stanley is holding their executive women's conference today. our mary thompson is there with a special guest. good morning, mary. >> good morning to you, joe. i am here with a special guest. that being ruth porat of morgan

stanley stanley. thanks for being here. you started this conference over a decade ago. why start it? >> i wanted to focus on something that brought together women from the investing and corporate side. and the theme of the conference has been getting the edge. and minding you getting the edge is about content and community. what we've really done is go deep across markets, across geographies, issues around government where it's helpful, where it's a headwind. this year we're looking at cyber security. we're also going deeper in disruptive technology, what that means. and it's really all of those issues in my view getting the edge. and what is important about the group here is the economic throwaway. we've got about $3.5 trillion of market cap from our corporate clients and what we like to do is have corporate clients and investing clients. these are leaders in both areas. over $22 trillion of investable assets from the investing community. >> so should be a great day ahead. a full day of events you have. i want to talk a bit about c-carr. you and morgan stanley pass on

the fed's approval. when you are planning this and modeling for this the fed has five measures. which one gives you pause? which one is your binding constraint and why? >> there are two parts of the test as you know. the quantitative and qualitative. both of them are critically important as it relates to which of the five metrics. for us really it's about modeling what happens in a severely adverse environment and looking at what our idiosyncratic vulnerabilityies are for any firm. so it's a robust long process. but not just the five metrics. >> sticking with the regulatory front, there was an article talking about how washington has tried to diminish or at least pull back some of the powers in the new york fed which is your regulator. how have you seen this change within morgan stanley your relationship with the new york

fed? >> the it is our onsite regulator. they're everywhere. we continue to have a highly constructive relationship with them and see them as present as we ever have. the washington fed is clear on elements of policy and the process ends up going into the washington fed. but i would say the new york fed is rigorous and present. >> let's talk a bit about the markets. can you give an update on how trading has been so far this quarter? >> so trading equity and fixed income markets is quite strong. we're seeing both on the institutional and the retail side a high level of engagement. i would say january started more slowly than last year. but it's picked up through the quarter. >> okay. and on the fourth quarter conference call just want to touch on commodities. james gorman the ceo said commodities didn't have a good quarter. he didn't expect this to be a prolonged state, so to speak.

so has there been improvement in this unit in the last couple of months? >> well typically the first quarter is a stronger quarter just given weather. so we're seeing the benefit of a colder winter. >> okay. you were going to give a macro outlook to participants. tell us what you're seeing right now. >> well we're seeing u.s. is strong certainly picking up. we feel that the outlook for the u.s. market continues to be -- i think what's interesting is the s&p estimates earnings estimates across the street wouldn't suggest that. in our view what you're seeing in the s&p are the downward revisions for oil. those exposed to oil are reflect reflected in s&p earnings. you're not seeing the oil dividend that's going to be coming through across a number of different industries. so we do feel quite positive about the u.s. europe we think you're seeing early signs of moving and across asset classes in europe. it's going to be a slow grind.

we've been saying that for some time. when you're looking for a market to break through 1% gdp growth we're talking about a slow grind. there's still opportunity for accidents. greece and russia being at the forefront. i think japan given not only the efforts by abe in particular on structural reform but now the oil dividend we're expecting an ongoing nice upside in japan. >> okay ruth. we want to thank you for joining us. enjoy your day today. >> thanks. >> we're glad to be here. we've been speaking with ruth porat, cfo of morgan stanley. coming up on "squawk on the street," we'll be talking to susie huang. back to you. >> thank you so much. earlier this morning folks, we asked you to tweet us about stories you'd like to hear more about or maybe things we've missed. we will cover your responses in our new keep squawking segment. that is next. and later this morning, melinda gates will be here.

she'll break down a report on the rights of opportunities for girls and women around the world. stick around. "squawk box" will be right back. the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration.

can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? ♪ [male announcer] if you've served in the military, certain habits may be hard to shake. for reintegration and adjustment issues big, small and everything in between, visit easter seals dixon center.org.

jo nes. zero, three, two, six. here to make a deposit. [bell chime] ting . welcome back, everybody. we told you about a new segment we're calling a keep squawking. we wanted you to tweet about things you wanted to hear about. many of you shared links. thank you for all of those. this came from a viewer in dallas who suggested we read

this piece. it's titled mayor makes inaugural purchase at first government-run mainrijuana shop. it is the nation's first government-run recreational marijuana shop. and the mayor was the first customer. the store oes profits will go into a special fund and the city can ask to dip into that. >> government intervention and now government-run pot places? is no place free of government intervention? coming up general motors will avoid a proxy battle with wilson. a share buyback program. and harry wilson will join us on set after a quick commercial break. plus making sense of today's big move in equity futures. we'll talk to russ koesterich from black rock.

[ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪

over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy affordable, kid-inspired chef-crafted food. we looked at what are the aspects of food that will help set up kids for success?

making sure foods are made with high quality ingredients and prepared fresh everyday. our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. we are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. until every kid has built those life-long eating habits, we'll keep working. harry wilson's war.

the actavis investor gets it. he'll join us first on cnbc on "squawk box" just minutes from now. you'll hear from one market watcher who says now is not the time to sell stocks. blackrock's chief investment strategist set to give us his best plays for this topsy-turvy market. and melinda gates will join us live. she'll explain why 2015 is the best year in history to be born a woman. the final hour of "squawk box" begins right now. live from the most powerful city in the worl new york this is "squawk box." >> welcome back to "squawk box" here on cnbc first in business worldwide. we are just 20 -- no 90 minutes away from the opening bell on wall street. the futures right now, this is the story, really, that we really should be talking about.

down 162 points. it has been since friday. that was the first day we had 280 points. almost down 300 at one point b. you get the strong jobs report which had people worried about a nearer than expected rise in rates. then apple being added to the dow which i think these guys are great collars. all at the same time by putting it into the index. that might be overstating things, but i don't know. seen it happen before. >> it's worth pondering for sure. in terms of just sentiment. >> they finally decide to put apple in. anyway checking out the markets in europe at this hour. this euro is now sitting at a 12-year low. that is the response so far this morning. there were some positive comments we brought you earlier about a possible 70% rise in european equity prices between now and the end of 2016 based on

much-improved export dynamics for the continent at 1.07. maybe it makes sense it's bottoming out. although michelle brought out some of the guys are now openly speculating about leaving -- >> not leadership but members of the party threatening there's going to be a vote or something and we can threaten to leave. >> earlier this morning the greek market was up by 3%. now less than 1%. >> i don't know whether a grexit would throw a wrench in. >> i don't think so. >> i don't think so so either. i don't think that's a determining factor. >> no thest the economic easing. >> i think europe holds the upper hand. but if you're looking at these, they were down by .5%. they've all extended their lotsdss.

>> yeah i don't -- i just don't know whether they stay or go whether that makes a difference on whether europe recovers. it's about time don't you think? >> they might recover better more quickly. >> certainly would strengthen the union. you would see less people grappling for additional packages. >> unless you're worried about it. >> the countries that are too strong, their hands are tied. they can't go based on being part of the euro. >> it's working. got a greek on set. >> you sat down and they said you're greek to me right? you are. good to see you. >> harry wilson is here. we'll be talking to him about -- >> you don't want a grexit, do you? >> no. i think it's bad for the greek people. 3/4 of my family still lives in greece. it would be bad for them there. >> how do you do it without devaluing? >> i think there are structural problems that need to get fixed.

>> look at you. you're here to talk about gm and you can talk about whatever we throw at you. and whether your stores will carry the apple watch. the harry winston stores. might not be you. >> harry wilson let's talk about the greek situation. we were just asking michelle is this something the greek people would vote for? if you've already got members of the ruling party suggesting that they should leave, if this was put to a broad referendum, what do you think they would do? >> it's hard to know at this point. but it's hard to think they would vote for a grexit. after six years of massive recession equivalent to the great depression, there's lack of hope in the country about prospects for a turnaround. and unfortunately that's why you had a major change in government just recently. and i think as a result people are desperate. it's really sad.

so as a result unless they understand that the alternative could be worse, people might very well choose the alternative. i don't think it's quite there from what i've seen but i haven't seen actually the bullseye. >> there's new commentary coming out of members of the party getting closer to threatening this possibility with some kind of vote or perhaps a departure. so relations are at an all-time low. if they could have gotten any worse. i can't believe it. but yeah. >> i think the negotiating leverage that greece may have had a few years ago when this was new is gone. and as a result it's whether they believe they should exit. it's not going to be good for them. >> let's talk to you about the real reason we brought you here today. general motors just announced it is buying back $5 billion in gm shares by the end of 2016. in return you are withdrawing your candidacy for the gm board. and for those who don't know or haven't been following along as it's been going, you represented

four hedge funds that were pressing gm to distribute more cash through an $8 billion buyback. thanks for being here today. >> thanks for having me. >> a note on gm they say harry wilson's war ends with roic disclosures. they have a hold on the stock. people looked at this as you really going after and attacking the company. is that correct? >> definitely not. i think people who both know me and the situation know that wasn't the case at all. what we really tried to do was engage in the company around their allocation policies. the buyback was a tiny portion of that. this generates an enormous amount. that makes a series of decisions around that cash. how much invest in rnd, cap-x, markets, marketing, return to shareholders. and our argument was that from the public disclosure the company was not clear in how it made those decisions which gave a lot of pause. the company needed a thoughtful

framework that would be clear about how they made those decisions and give investors clarity on that. >> you wanted an $8 billion buyback? they're going to give a $5 billion buyback, but you're suggesting that other things they did make up for that difference. what is it about this new plan that made it acceptable? >> the thing they did which i thought was extraordinary was they came forward with a comprehensive allocation framework. it lays it out in good detail. the question they establish is we use 20% investment capital for all our decision making. we have tied to that. and that's how we'll evaluate everything from financial to shareholders. in addition to that, they said the minimum cash in needs to be $20 billion. and they said anything above that we return to shareholders. when you follow that math that

math leads them to the ability to do at least a $5 billion buyback. they said initially immediately. then if you do some very basic math on what they should generate in free cash flow over the next three years, i expect that to increase over time. just because the business. >> you can understand why the company might be reluctant to have put too much on the table. i was actually surprised with how responsive they've been to some of these issues. if you look at their history, if you look at how they were bo for borrowing. the fact you wanted more to come back to shareholders immediately and leave less cushion surprised a lot of people. >> it shouldn't. this has been a hot topic discussion for the company for a long time. what is the right level of cushion? and so we agree, have always agreed the company should have enough cushion for -- >> and $20 billion does that? >> yes.

if you see their math they lay out, that easily does that. they have an enormous amount of cushion. and we think the company should be conservatively capitalized. i've said that since 2009. the question becomes at what point does being conservative leave a lot of tranded capital that's effectively underearning relative to other alternatives. and one of the things that's important of any company whether it's general motors or others is to be disciplined on capital allocation so they don't make bad investments. if you look at the auto industry, the history of the companies is times are good they over-invest and over-spend and they come home to roost in the downturns. if you have one that governs all of these allocations. they've been incredibly thoughtful in that.

>> you're going to be here and i'll intro you in the next because we're going to return to this. because you were there. you're a republican and you were there for the bailout. >> true on both those. we call it the rescue but yes. >> you saw what happened. >> absolutely. >> right. >> you saw that -- i know you want to help shareholders this time around. you saw what happened to shareholders last time around didn't happen well. >> this is the point. people don't understand this. this is why the stock trades at a discount to what it's worth. people look at this and say it's the same old gm. it's not. >> i don't want to run out and buy a gm car right now. they've got miles to go before they start making inspirational cars before giving me the feeling i really want one. then you've got tesla and driverless. you've got people that were never competitors to gm that are going to get into this business. i think the future for detroit is absolutely frightening and daunting right now. >> so i guess you're not the shareholder. >> instead of trying to reward shareholders today because the stock is underperformed i would

think they have huge things to do to try to get back on track to be the company that's going 50 years from now. >> a massive multiple of what tesla spends. what do you think they should spend on cap-x? >> i don't know. save money to not go bankrupt. >> so you've got all this cash on the balance sheet, right? right now in this environment, what does that do for shareholders? what's the return? zero at this point. yet at the same time it provides sleep at night quality. right? you want that cash there for the very bad moments. and the tradeoff is the real question. >> what's the right amount of cash? >> that's what you've been debating about. >> but there's not a debate. the company actually said $20 billion to $25 billion for years. and provided for the first time ever clarity on how they got there app and the answer was $20 billion. so there's not a debate on how much cash they need. they agree with our position. and they've said it's been part of the range forever. the point is they're at 25.

and even with that minus the $5 billion, they're well above $20 billion. there's not a debate about what cash they need. the question is how do they deploy it? that was our point. >> all right. we'll come back to this again. after we take a break. >> you mind staying with us? >> of course. >> okay. when we come back we'll talk more to harry wilson. also our next headliner of the morning is melinda gates. she'll be joining us with a new initiative to change the world. we'll be back with more from harry wilson. futures at this hour are under significant pressure. take a look. you're going to see right now dow futures down about 180 points below fair value. s&p off by 20 and nasdaq by 35. stick around. "squawk box" will be right back. it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step

by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this. ♪ help brazil reduce its overall reliance on foreign imports with the launch of the country's largest petrochemical operations.

when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.

. welcome back everybody. among today's stocks to watch, hp upgraded to buy from neutral at ubs. ceo meg whitman's upgraded the executive team. and also continental reporting passenger traffic was unchanged from a year ago. and shares of zoetis rising on

the fact bill ackman might go after the company. yesterday we learned he had purchased a $3.3 billion stake in valeant which he aided in its unsuccessful attempt to try to buy allergan last year. let's get back to our special guest for at least the half hour. harry wilson is chairman and ceo of the maeva group and senior adviser to the auto industry task force. just with a background, i think in general you could say and michelle would probably agree as a frequent person that what's in the best interest of shareholders many times is in the best interest of the company. and companies can do more with a rising share price than a falling share price. again, when we talk about actavis, we do bring up the notion that there's at least the impression they're still more short-term oriented sometimes. and maybe what's in the best

interest of the company. and when i think about gm and we also talk about buybacks a lot. and there's two sides to that. i happen to agree that producing the outstanding shares is if it's cheap it's probably a good idea. then i remember kodak. and it's like the company doesn't have anything better to do than buy back its own shares? so with gm to me the future looks daunting. if i was going to go in i would get them to focus on the luxury and how to get better margins on the cheaper cars. figuring whether they do electric, how they compete with tesla, whether they become -- there's so many daunting challenges. financial restructuring doesn't -- i don't think i'd be focusing on that. is that really what an activist should be doing right now? >> i think there are two to that. one is what's gm doing in other areas? and how important capital allocation is to the company as

a whole. the first part gm is doing a lot of the stuff you're talking about. they've actually really made a huge commitment to cadillac with new leadership. which they need for the company to be successful. they have a tremendous truck and suv line as you know. their sedans have done much better in recent years. then more quality awards in the last five years than probably the last 25 years. and so they've done a really good job improving a public perception not fully caught up with that. if you read consumer reports, car and driver. they all extol the substantial improvement in the quality of the gm fleet. that's the first thing. they've done that. we didn't do anything about that. the team there has done a great job on that. secondly, yes, there's more innovation going on in the automotive space today than any other time in our lifetimes. that's a good thing, it's also a risk. totally agree with that. when you think about kind of the primary areas of innovation it's power train, in-car

electronics, and safety. on power train, yes. the tesla is the most advanced and has the best product there. they sold 3,000 cars last year in a country that bought 17 million. is it important? absolutely. is gm doing stuff with the volt? sure. but there's room for improvement. in-car electronics, onstar is still the market leader out there. is there room for improvement? sure. like in all things in life. but they are still the market leader on that. i think there's an opportunity to further monetize that. and on safety with the proliferation of sensors and driving everything from kind of parking assist to ultimately autonomous driving down the road, i think you're seeing a lot of innovation down the space being done at the tier one level. that's an opportunity for all the oems. so there is a lot of innovation taking place. i think the cars we drive will be far better than the cars we drive today. they're already investing in that. >> you think gm is going to be flourishing ten years from now?

and do you care? that's what i mean -- >> i absolutely care. >> you do. and do you think it's a positive -- you have a positive outlook for gm ten years from now? >> i do. i think there are a couple of things. one is in any company, the quality of corporate governance really drives long-term results. i think i've always had a high regard for mary barra. increased my regard for her. she was incredibly impressive in dealing with these issues. this is not something she normally does or ceos normally do. i think she did a phenomenal job in dealing with these issues. and so i think she as is leader is quite strong. she was building a system around her. she's got a lot of work to do but she's building a system around her that will be successful. that's the fundamental ingredient of how the company navigates unforeseen challenges. >> that's why i was surprised to see you go aggressively activist so quickly.

it's been just a over a year since she's been in. she's had all the other problems that landed on her lap she's been in washington for a lot of that time. i was surprised it was made public rather than negotiating behind the scenes. >> i'm glad you asked that. we didn't make it public. the company made it public. we approached the company. we had a filing deadline to nominate a director which was february 9th. we made our submission. we approached the company mid-january. by the time we had a meeting it was february 3rd. >> kyle bass talked about it on our air in davos in january. it sounded like it was stuff you were agitating for change very quickly. >> well we were certainly talking about it. we didn't make a proposal to the company until february 3rd. the deadline was february 9th. we made our submission and thought it would stay private. the company felt they needed to disclose it and that's fine. it's fine judgment. but that's why it became public. and we were not intending for it to be public. we were happy to kind of go through it but generally these things are more productive in a

private setting. >> the market is down. indicates the dow would open lower by 185 points. a lot of that is being attributed to the strength of the dollar we're seeing again with the euro at 1.07. and another headwind joe is talking about all the headwinds they face. japan trying to weaken the currency to dramatically as well is another big headwind for this company. can you talk about that? general for gm and what the strong dollar means for the market at this point? >> sure. so i think vis-a-vis general motors has actually relatively little impact in the u.s. market. gm makes almost all of its money in the u.s. and china. and has, you know break even or modest losses everywhere else. from the perspective of the yen, in the u.s. market it obviously improves the profitability of japanese makers oems who ship in from japan. but most of their cars are

manufactured here. >> the japanese manufacture here. >> correct. they export from the united states. which is fascinating, right? given where the industry has evolved over the last 30 years. it doesn't really change the competitive dynamic in north america. japan is not major players in china at all. it doesn't change the competitive dynamic in china. it does change the competitive dynamic in non-china. it's something to be cautious of but strauss-kahn not a major game changer. >> all right. what was all the hoop -- we only have 30 seconds. never mind. we've got to go. and you've got to go i guess, as well. we have a hard break. >> he didn't answer if he was going to carry the watch if the harry winston store. >> you're talking buyers. thank you for playing along. it's a different company. i now know. harry wilson. okay. coming up houston, we have a shipping problem. that story coming up after the

break. and why women's empowerment is part of economic growth. melinda gates joins us. and as we head to break, we'll show you how weak the futures are this morning. dow would open lower by a lot. nearly a few hundred points. be right back. wow... woohoo! i'm dreaming... pinch me. no, not while you're driving. and, right now, you can get a one-thousand-dollar volkswagen credit bonus on jetta models. seriously, pinch me. it's not a dream. ow! it's the volkswagen stop dreaming, start driving event. stop dreaming, and test-drive one today. hurry in and you can get 0% apr plus a $1000 volkswagen credit bonus on 2015 jetta and passat models. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities.

which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it track my crew's performance, and protect their heads? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ at cognizant, we see opportunities for every company. to meet the new digital demands of their customers. can it process my insurance claim? like, right now? can it download a track while i'm sampling it? can my keys find me? with the power of digital, analytics and automation now every little "thing"

can provide even greater value. ok, so can it tell the doctor how long you have to wear this thing? the answer is yes, it can. so, the question your customers are really asking is can your business deliver? welcome back to "squawk box."

two 600-foot ships collided in heavy fog causing a leak of flammable liquid into the ship channel. determined how much of the product may have been spilled into the 50 mile channel that connects the gulf of mexico into the port of houston. the leak was stopped about 90 minutes after the coast guard received word of the collision. and the channel remains closed at this point. when we come back this morning, melinda gates will join us on set. she'll talk about empowering women and how she's looking to change the world. plus blackrock's russ koesterich will join us to find out where he is going to put money to work. and look at futures this morning. down by 200 points. also a live look louisville kentucky. major flooding this morning as snow and ice melt away. the ohio river continuing to rise at this hour. rain is now making its way through the area.

the river is expected to crest this morning. "squawk box" will be right back. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman. ♪ [piano background music begins] ♪ we are one, we are essentially the same regardless of where we come from. um, there are definitely things that are different about us culturally and everything else but at the end of the day we are the same and we really need to start seeing the world as a place that was gifted to us. [thunder and rain] [thunder and rain] [thunder and rain]

okay. check out the futures. we've been watching this picture get weaker all morning long.

down 197. when the market hasn't opened and you're down 200, depending on the session it can get a little dicey. we'll see. down 195. scary session on friday. what's different? well, now we think maybe june is going to be the time we do get that first rate increase. and that is the only thing that's really changed since friday. so 300 on friday. okay yesterday, but now 200 today. so taking a look at some stocks to watch this morning, credit suisse shares are rising. new ceo replaces brady dougan. and earnings at urban outfitters posted a 6% rise. and skywork solutions will join the s&p after the close of trading tomorrow. fund managers have to own it now. the chip maker will replace petsmart which is being sold to private equity firm bc partners.

now over to becky who's -- you're not here. you're over there. >> joe, thank you. women may have more opportunities in 2015 than ever before. everything from health care to corporate leadership. but they are still not there yet says the data that's presented in the no ceilings full participation report. that's a partnership between the bill and melinda gates foundation and the clinton foundation. melinda gates is here with us today. great to see you. >> nice to see you. thanks for having me. >> i know this is in many ways kind of a progress report. a report card of how women have done over the last 20 years. some of the headlines are that this is the best time you can ever have to be born a woman. so what has happened? what progress have we made? >> we're seeing far more women who are living longer than ever before. they're living healthier lives. we're seeing more educated edd girls and more women in the workforce. this report was trying to indicate progress but also to

highlight the gaps of where we need to go. >> where are those gaps? >> well, those gaps are particularly in the areas of employment. that is having women labor force participation be equal to men. we're not even close yet. we know we can change some thing ifs we do that. equal work for equal pay, we're not there yet. still a lot of unpaid labor both for young children and the elderly really falls to women. so we have places that we need to make policy changes and investments to change those outcomes for women. >> you mentioned women's participation in the workforce. i think it's 52% or 53% versus 82% for men. >> correct. >> that's around the globe. but we've seen this get picked up by leaders like in japan pushing to get involved. do you think it's really taking point at this point? >> i think he is quite serious about it. abe has been pushing because he knows the difference it will make for his gdp. and we know that societies thrive when you empower women. it's true worldwide. so even the high income countries separate from japan,

people are predicting a growth of 12% of gdp if we could get equal labor force and then places like japan and italy, 20% jump in gdp. this is vitally important not just to families but to economies. >> when you look around the globe, how does the u.s. fair versus some of the other countries? and where are you spending most of your time? >> well, i'm spending much of my time in the developing world saying how do you get women to even begin to participate economically? we need to make sure they're healthy, they can have decision making capability and they have economic opportunity. because when they get economic opportunity, they're 90% more likely to plow it back into their families. i spend my time there. but in the u.s., i think we still are behind. in the wage gap, i don't think we have good pay yet for maternity leave. we're one of the worst nations in the world for that. >> you talk about it a lot of the time you're spending in the developing world. and i know one of the big pushes

you've been making is in the terms of contraceptives and making sure women have access to contraceptives. how did you get to that? i'm sure it's nothing you were thinking about before visiting these countries? >> not at all. i don't think i have thought about the impact contraceptives have made in the united states. we know now from the longest piece of health research that if a woman -- she's not only healthier but her babies are healthier. it allows her to participate in the economy. and i've met women around the world who will say to me a young woman named jane who had three children, she said i don't have to have more children. i have a small business now. if i want to keep putting these three girls through school and supporting my backpack business i can't have more children. my husband and i decided that but i need access to those tools. >> how do you do that? how do you make sure they get access to it? >> you counsel women about what

contraceptives are let them make a voluntary decision. you would be amazed about how women in the developing world know about contraceptives even when i stood at a well in niger, women know about contraceptives. it blew me away. >> what kind of things did you get from them asking? >> i go in to ask about vaccines for their children and they say what about the shot in my arm which i used to get which was the birth control used in africa? i need it. if i can't get that shot it's a life and death emergency for my kids. i can't begin to feed more children and i can't educate them. and the thing people talk about over and over is the next generation investing in their children, the next generation. >> melinda, i was watching "nightly news" last night and this is an initiative you announced yesterday. "nightly news" had coverage of it and clips of you guys there. but they never once mentioned any of the actual information from the reports because it was so focused on hillary clinton and whether or not she would

talk about e-mail. has that been frustrating to you? >> i think it's disappointing if that's the conversation. what i'm seeing as i'm in new york these few days is lots of conversations in lots of arenas. i'm headed to the u.n. next. what can we do? what policy changes, what investments, how do we step in on behalf of women and girls so we make even more progress in the next 15 years? >> would say amaternity leave is the number one policy to be tackled in the united states? >> that and the wage gap, absolutely. >> what can be done about the wage gap? >> i think companies need to look level by level about what they're doing inside their own employee base and say are we making a level playing field paywise? you have to look at every level at every company. if you're not, how are we getting there? it's when you get down to the specific concrete data you can look to see if we need to make changes. >> we've seen conversations like that taking place in silicon valley and potentially spreading out from there. you think this is something that

can be tackled in the next ten years? >> absolutely. i think silicon valley is the great place to lead this. i'm a computer science major. when i graduated from college in the early 1980s 37% of undergraduates were females in computer science. it's down to 18% today. when i was in college we thought that number was on the rise. that ever-widening gap can't be. you've got to get more women in technology. those are the high paying jobs creating new applications and they lead on things like maternity leave. we need to make sure they're part of this. >> why do you think that number has dropped drastically? >> i think because we have many loss points as elementary school, middle school high school. it has to do with how we teach and what our expectations are of girls in the sciences and we need to lean into those places and make sure teachers are helping girls realize you can be good at science and math.

and these are phenomenal careers in our economy. >> is that a government initiative? is that something that starts in the home? or is it all fronts? >> it's all. one of the greatest things on the home front they say for young girls is if their father is saying to them i know you can be good in math and science. that has a profound impact. it is home and society that we've got to make changes but it's possible. >> i want to thank you very much for stopping by today. i know you have a busy day ahead. thank you for taking the time. >> thank you. when we come back this morning, making sense of the pressure on the futures this morning. we'll talk about the strong dollar and lower oil markets. dow down by 185 points. s&p futures off by 20. stick around. "squawk box" will be right back.

there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours.

if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com

10-year -- futures pointing to a sharply lower opening on wall street. rick santelli and jim iuorio join us now. jim, i'll start with you quickly. as of friday that employment report these guys still haven't adopted the good news as goodrationale. they still care more about easy money than a strong economy or am i reading it wrong? >> no no.

i think that's true. ipg the months that led up until friday, what was good news. but we get slapped in the face with a real live june tightening. then it becomes very very real. and like you said we're not down a huge amount. when things are unsettled and unprotectable, the stock market takes that as a negative. i think that's what they're doing now. the smart move is the euro. the euro is down 120 today. the stock market doesn't like when control seems to have been lost in certain things. i don't know if it's because of the normal dysfunction in europe or the mechanism of them buying negative yield assets which is beginning about now. if that's putting pressure on the euro. but this to me early morning weakness like this is mostly noise. if we trade poorly the rest of the day and settle futures, that's when i think it could be real and we may lose another 60 handles. >> rick, when i look at the euro falling and falling, i wonder if at some point this is the

excuse. you're talking about the race to the bottom when it comes to this. >> i think in some ways it's a moot point other than the fact that the fed obviously needs to normalize. what i mean by that is yes the market's going to shetset the short range. but the forces that are going on that i think we're scratching the surface of on a day like today are going to overwhelm. i guess the dynamic i'm speaking of quite frankly, when you have central banks going to this extreme and interest rates falling the way they are, you have some of the uncertainty regarding the chinese economy. some poor numbers that i've seen. i just think it's inevitable that normalization is going to be bumpy. then add in everything else. you know whether it was 2014 or the beginning of this year january in particular. one of the main reasons outside of the relative value spread that rates went down was because

they were dragged down by what's going on in europe. i see that dynamic now that we're into qe and beyond announcement in the surge that occurred getting in front of that, that i think there's going to be this type of pressure again. by default equities go down. >> rick, you know you can get in trouble again. you know you can kind of paint the tape on unemployment. you know? but not gdp 37. and if we get -- if it becomes clear we're not getting anywhere near 3% there's going to be cries that we haven't fixed this enough yet to yellen. and others. when the dollar gets stronger and stronger oil's where it is and what uyou said about china, if we import the weakness other places, i don't know. i don't know whether these guys are going to have the resolve -- >> of course we have to joe. you nailed it. of course we're going to import

weakness. in a global economy, you could be the best out of the rest but that's only going to take you so far. what you said about jobs we both know. we live in a time you can't talk the way we used to at 2,000 in a tech or when i traded in '87. everything's politicized. i'll tell you this. i don't care how many hundreds of thousands of jobs we create purportedly, we can't really tell the quality or the pay. it seems like it's bipolar. we're creating low paying jobs and high paying jobs but we're not creating the -- that's why we look at jobs. >> rick hold on one second. joe, rick brings up normalization will be bumpy. but i question whether the bumpiness is what's going to halt the normalization. they'll see the bumpiness, be nervous about the currency. >> there's no doubt about that. >> jim, what if we're in the low 2s on gdp. >> okay.

there's three things. the gdp -- >> we're on -- >> no doubt about it. but if the euro is trading at 1.05 they've already told us in the past they care about asset prices. they care about stocks and they're not going to tighten in june if they think they've lost control of things. which is a sad thing. >> so it is a temper tantrum. >> they have no control, jim. come on. they never had control. >> no they probably don't. >> they gave a lot of people a lot of money to shut up about how out of control they were. >> amen to that. i'm not disagreeing with you. but i do think they want to tighten in june. but if the story changes in the next few weeks, they'll put that in halt. >> but it's the reason the story is changing. [ overlapping speakers ] >> that's the rub. it's a big circle. >> we're staring in the eyes of the enemy and the enemy is us! exactly! you can't continue to think you can control everything.

we missed 80 billion on supply on the long bond because they stopped issuing it. 80 billion. that's it. and what happens? nine years later we're experiencing all kinds of dislocations in the futures market delivery process. >> and rick let me point out one thing. the 30-year treasury has risen a full point. so we see people running back into treasuries. >> and now we're under the 2.17 close in 10. you want to watch those numbers in deference to the close today. >> when it's all said and done rick, you think for 2015 what's our gdp number? because bullard told me it would be 3% or above. >> i think when it's said and done it's going to be a small variance compared to the last several years. so 2.5% give or take a quarter.

>> weird. one of them's wrong. >> of course. we know the unemployment rate isn't right. i've said all along, we talked about these labor issues before it was popular. even vilified a bit. you can say anything you want, but behind closed doors the fed knows if it wants to tighten because of low unemployment they're not tightening for a real reason because the unemployment rate is not really the type of metric that it once was. >> rick now you have something that you and janet yellen agree on. >> wow. >> i think she said the same thing. that they are worried about unemployment and what's really happening there. >> but see, when she said it and they knew it there's a spread there of several plus years. that's a problem in my opinion. they've known all along. >> all right. >> thanks guys. >> rick jim, thank you. appreciate it. coming up next, blackrock's russ kosterich.

and then on tomorrow's show he's been bullish on planes and trains in the past. find out what david gerstenhaber is buying now. and then we'll talk real estate and spring cleaning with the property brothers. "squawk box" will be right back. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. 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.

stocks to watch this morning. barnes & noble posting. 14% rise in quarterly earnings helped by cost cutting in the nook digital business. supervalu upgraded from buy to

hole hoemd the stock's higher by 2%. qualcomm announcing it will buy back $15 billion of shares and raise its quarterly dividend. and shares of urban outfitters betting a boost. posting better than expected quarterly results. same-store sales rising for the first time in a year. skyworks solutions will join the s&p 500, replace pet smart, sold to private equity firm bc partners. >> for more on what's happening in equity markets in the big sell-off in the futures, russ joins us via squawk news line. did something change between that employment report on friday and today, in your view or is this kind of expected and, you know maybe it will pull back here and there based on what the fed does? >> joe, i think it's mostly that. nothing really changed in the last 48 hours. people are more concerned. >> greece, europe is down this morning. but to me the big change is the continuing strengthening of the dollar. you've got the dollar index up

23% from the summer lows and people realizing this is starting to bite into earnings and with p/es fairly extended if you don't get the earnings growth, it's harder for the u.s. to post gains this year. >> an interesting sent theriot with the conspiracy theory say you believe in the roach motel analogy for the fed, they've done this, get in and now they can't get out. so the future so the dollar keeps getting stronger to where this big gdp where we get -- kick it into high gear 3% this year suddenly the dollar starts getting so strong that becomes questionable, so they're afraid do anything in terms of moving off zero because it will add to the strength in the dollar so it makes it hard for them to move. that is something that could happen? >> well i mean certainly the dollar strengthening is in some ways doing the work for them because you've got this de facto monetary tightening globally

why every commodity down year-to-date. >> if they go a quarter, let's say, in june and another -- say they run another quarter after that, you think that the dollar already reflects those moves? it doesn't necessarily add to how strong it is already? >> i think the dollar's going to continue to appreciate. it's a two-way mark and we'll get a pulldak some point this year because this is an incredibly crowded trade. the fundamentals are what they are, the u.s. is going to have global europe in japan, the pants of u.s. monetary policy is different in the world and the different current account deficit because of domestic oil production by favors a stronger dollar. >> 5.5% unemployment what if gdp didn't go to 3, what if it's 5.5 unemployment, 2% gdp and zero interest rates, none of those things match the others given historically where things should be at this point. is that okay or what's different

this time? >> i don't think it's okay but it seems to be the place we're in. last time we had job creation at this level, you had the fraflederal funds rate at 7%. you're pointing to the paradox, no way to equate even 2, 2.5% growth in 250,000 jobs a month to a 0% policy rate in a 2% ten-year. part of this being affected globally where growth is softer and yields are much lower. >> what is it -- so they are -- they don't make any sense and they don't have normal relationships and i wonder where are you seeing dislotion dislocations where people can get hurt? >> it isn't normal. it's hard to get to the 2% ten-year. where you get hurt everybody's worried about duration. people have duration they don't expect in the equity portfolio. think about friday tough day for the market really tough day for any of the defensive yield

plays. utilities, crushed because these are bond market proxies that have very stretch valuations and sensitive to a modest rise in long-term rates. >> okay. >> was it a complicated question. >> thought about the call that european equities rise in the next seven years. another day. >> another day. that's a good tease. thanks, russ. see you later. >> when we come back we'll have more on the morning's big market moves including the dollar rising to nearly 12-year highs versus the euro. "squawk box" will be right back.

can it make a dentist appointment when my teeth are ready? ♪ ♪ can it track my crew's performance, and protect their heads? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ at cognizant, we see opportunities for every company. to meet the new digital demands of their customers. can it process my insurance claim? like, right now? can it download a track while i'm sampling it? can my keys find me? with the power of digital, analytics and automation now every little "thing" can provide even greater value. ok, so can it tell the doctor how long you have to wear this thing?

the answer is yes, it can. so, the question your customers are really asking is can your business deliver? ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else.

put our global active management expertise to work for you. mfs. there is no expertise without collaboration. stay tuned for the opening. check out futures, they suggest a sharply lower open dow would open lower by 170, s&p 500 by 18 and the nasdaq by roughly 31 points. another day of selling, perhaps, because of the strong dollar. >> who knows? it's an interesting session. join us tomorrow. we'll summarize what happens today. "squawk on the street" is next. ♪

♪ i just want to celebrate♪ >> i'm carl quintanilla, david faber and jim cramer ringing the opening bell on the new york stock exchange celebrating ten years of "mad money." jazzed? >> a big one. it's really big. it's exciting. the stock exchange the pinnacle of capitalism. happy birthday to david. >> we may have a