cnbc parent comcast making a $31 billion cash offer for british broadcaster sky. the great comeback wall street roars back to life putting the dow and s&p 500 within a stone's throw of recouping february losses. and in the hot seat, jay powell faces his first big test today when he heads to capitol hill it's tuesday, february 27, 2018. "worldwide exchange" begins now. ♪

good morning a warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm seema mody. >> great to have you back at headquarters >> it's great to be back lovely to be alongside you >> thank you let's quick off with that big breaking deal news comcast making a $31 billion cash offer for british broadc t broadcaster sky. sky shares shooting higher on the news sky up to 1,332. the bid price was 1,250. for most of the last year or so since the fox deal for sky had beenagreed, it traded below that bid price on expectations that regulators could block the deal now there may not be regulatory

hurdles, but also now a bid war. comcast lower in the premarket comcast's bid does rival the current offer from fox we'll have much more on the breaking story straight ahead. great analysis and guests coming up throughout the show. let's check global markets following yesterday's big rally. it was a strong start to the week with the dow gaining 1.5% futures indicating a higher open for the dow which is up 18 points in the premarket. nasdaq lower by 4 points s&p 500 basically flat check out how far the markets have come back since the february 9th lows. the dow is up as much as 10% similar story for the s&p 500. the nasdaq is up by 12%. keep in mind we're still off our january all-time highs for the dow, just around 3%. nasdaq just 1% clearly this comeback has been

strong and swift the ten-year note has been a big part of the story. it eased back from the highs of 2.9% 2.87% for the ten-year treasury note as we await jay powell to take the seat in his testimony on capitol hill today. >> let's look at markets around the world. asian equities a bit negative. japan up 1%. elsewhere declines over a percent for china. european trade for you, which was largely positive yesterday, around a half percent mark mixed earlier in trade, but just improved over the last half hour or so. germany just higher as is france and the ftse 100 up 0.2% sky rising to the top of the ftse 100 >> look at oil yesterday it gained about a half percent. today we're lower. 67.42 for ice brent crude.

in the dollar world the month to date dollar index is up about 1%, on pace to break a three-pothree three-month losing streak. the dollar has been mostly weaker against a basket of currencies, today higher against the yen. 107.03 rounding things off, looking at gold 1,335, higher by $2. let's talk more about the markets big comeback joining us is gina sanchez, cnbc contributor. thanks for joining us. to what extent do you feel this bounce back will continue and it was a one-off blip >> i think it was a significant blip, but you have to remember all of this happened in the context of a strong economy, a strong global economy. and so while we do have kind of

concerns around the levels of spending relative to wage growth, we think wage growth is way too weak to support the spending levels we're seeing, it's in the midst of a tax stimulus that should be offsetting monetary policy tightening so everything looks like it's all -- everything is set to keep going up at least for some time we think we'll have some issues towards the end of the year. for right now there's still enough stimulus and global support that this could keep going. >> if there is enough stimulus, where do you see the gains the dow gained almost 400 points yesterday. where is there more room for upside in the market >> i don't think there was ever any room for upside. i think you're touching on an important point. this market has been overvalued for some time. i think we're getting towards the end of that rather than the beginning. i think earnings will have to work hard to sort of earn the

valuations if anything we're set for disappointment i guess my point is that this can sort of continue to go -- this could continue to go almost sideways for the rest of the year and still be fine we have seen this market as a tremendously overvalued market we have been overweight meaning markets on the trade story relative to the u.s. we think that's where you need to be. >> in terms of the yield picture, yields well above 2.9% on the ten-year early last week. pulled back from there is that a crucial factor to watch as to whether or not equities can continue higher clearly in general the trend of higher yields did hurt equity markets earlier this year. >> and it should continue to hurt equity markets if you continue to see higher rates without a doubt, higher borrowing rates will be challenging especially given the levels of debt in the corporate sector and in the government

sector so that's not a good thing you need to get well above 3% before you start feeling that pain on the whole we're continuing to be underweight bonds for the rest of the year but that doesn't mean we won't see ebbs and flows i think that the expectations for inflation are still probably a little overdone. that's a lot of what's been pushing the bond market. so you could see that come back and you could see bond yields fall >> we recouped a significant amount of our losses that story is not confined to the u.s. stock market. abroad, in europe, japan has come back a lot. given the selloff, is it better to look overseas or domestically for opportunity? >> that's another great point. one thing we noted in the way this downturn happened, it happened primarily in the u.s. where it didn't really affect yap these european or emerging

markets nearly enough. that's a normal. normally when you have a nasty selloff, you see it significantly more else where. basicallyemerging markets shrugged it off. they went down half as much as the u.s. markets in the thick of it european markets also. japanese markets were resilient. you're right they're bouncing back tremendously as well so we do think that you want to be -- we have put our money over broad, we recommend clients to put money over broad that's where we see opportunities. >> gina, thank you very much for joining us let's get back to the breaking deal news. comcast making a $31 billion cash offer for sky sky shares shooting higher on the news they're at 1334 pounds, up 20% today. comcast's offer for sky is up

from a current bid brian roberts say sky and come bast a comcast are a perfect fit. let's bring in our guest we are now trading above 13 pounds the latest comcast offer is 12 pounds 50. for much of the last year when fox was trading, we were trading below the fox price. why are we trading above now the price on the table >> good morning. yes. it's a great gopment for a businebi development for a bizny storusi story. the reason why sky is trading above the price is markets are pricing in and expecting a battle to break out between

disney and fox and comcast >> there's been regulatory hurdles for fox when they were trying to take over the 61% of sky that they din odn't own one reason why the price traded below the original fox offer do we think this would be an easier takeover company for u.s. regulators to approve as a buyer of sky >> one thing is clear, the comcast offer is cleaner it's a smoother proposal it's all cash. they don't own much overseas they have 9% of the revenue base internationally. so for comcast to pursue this, it's a much easier thing whereas we discussed multiple times on the show and in "the financial times," murdoch has a long legacyin the uk, and that legacy hung over him since he struck the deal to buy sky in december of 2016 it's now february 2018, there's still months to go in that process. it's because of who rupert

murdoch is, what his history is in the country, the assets he owns and when you think of comcast, it's a blank slate comcast has lack of history in the uk there's nothing in pay tv, versus murdoch who has been in the papers, all over the country for 30, 40 years, that legacy is haunting him a bit today >> if the objective of the sky acquisition is to gain more market share abroad for comcast, why look to europe, why go to emerging markets where there's higher growth and a market that's unsaturated at this poin point. >> we spoke with brian roberts this morning, he believes this is all about the customer of the future, which is they want bundles of content he believes sky offers customers in the uk, italy and germany, its primary markets, quite a bit of content he thinks that fits perfectly

with what comcast already has. comcast in 2014 tried to buy time warner cable and expanded its footprint in the industry. so comcast's growth in the u.s. when it comes to owning more cable and the distribution channels, comcast had run into trouble on that front in the u.s. it's latest deals for dreakworks animations, and theme parks overseas, but it has not been able to expand the cable foot print in the u.s so that is why they're moving on sky this morning >> you spoke to brian roberts this morning, he wants to offer bundles of content across europe what are other key things you took awayfrom that conversation >> one thing is that comcast already went for fox, if you remember there's been press reports in november and december when disney and fox were in discussions that comcast made a

superior offer to murdoch and fox. but murdoch calculated that the disney offerer had a better chance of passing through regulatory hurd ms in the u.s. it also allowed him to solve multiple parts of this jigsaw puzzle now comcast has struck back, coming just for the sky asset and it has thrown a wrench into the murdoch and disney plans >> forgive me for going further on this, are you getting the sense from that conversation, something you want to press him further on, that he wants to go in for more of the assets from fox or not >> i believe they're squarely focused on sky now this offer that comcast has put on the table, he's laid it out with an acceptance threat hold of 50% plus one share. so they don't expect fox to

cooperate in this offer, so this is a hostile offer for sky essentially. brian roberts said the first communication they had with sky happened moments before they unveiled this offer. there was no discussion behind the scenes as one analyst quoted this morning, this is hostile in effect >> clearly the 61% of shareholders that are not fox will like this bid, it's higher than the fox bid but realistically, if we get two big separate u.s. institutions owning two large chunks of this, would it be able to continue to operate in terms of shared ownership? brian roberts clearly has suggested he's willing to proceed ahead that way is he likely to be truthful there or does he want to buy the whole company? >> i can assure you this thing will play out many more ways in the coming months. this situation we're seeing has thrown a wrench into the discussions and put comcast firmly on the lawn of sky and in

sort of the troublemaker position when it comes to murdoch's thinking about his company and what he's doing with fox. this is not the final twist. there's no way to predict how this will play out if kol cacomcast emerges as a 5% holder and murdoch is at 39%, that's going to be an awkward juxtaposition. i don't think we're headed there now. this is why the stock is trading above 1250, way above in the 13 pound a share range. the market is expecting a counter offer from the fox disney camp. we have a long way to run before we can make judgments on how it will look. >> thank you very much turning to today's wall street agenda, we have january durable goods orders out at 8:30 a.m. eastern that's followed by the december s&p case-shiller home price index at 9:00 a.m. february consumer confidence at

10:00 a.m. auto zone, macy's report before the bell after the close we will hear from square, workday, etsy, weight watchers, booking holding. the fed will be front and center as jerome powell testifies before the house financial services committee it's his first public appearance before congress since taking over as fed chair. cnbc will have full coverage of the testimony starting right here at 10:00 a.m. eastern still ahead on "worldwide exchange," palo alto pops, fitbit flops, the good, the bad, the ugly in today's trade. and later, 50 fesses up. what he said about bitcoin that is getting buzz today. the tadeils when "worldwide exchange" returns. your top-rated thing. that five stars, two thumbs up, 12-out-of-10, would recommend thing. because if you only want the best thing,

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these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. welcome back to "worldwide exchange." i'm wilfred frost. if you're just getting up, let's get you up to speed on market action futures at this hour, after a strong rally yesterday, 400 points for the dow, we're now just over 3% away from the all-time highs for the dow and s&p. 1% away for the nasdaq it's been a fantastic bounce back from the lows on february 9th. this morning flat in the premarket. treasuries, we have seen yields slip back significantly from early last week. we were at 2.9% then on the

ten-year rising yields has hurt equities. unsurprising to see the bounce back of recent trading sessions come in. stocks to watch today, a u.s. regulatory panel reportedly started looking into broadcom's plan to buy qualcomm broadcom's corporate headquarters are in singapore. reuters say republican senator john cornyn is urging steve mnuchin to have a panel review the deal before a key share holder vote. >> microsoft technology is in talks to buy micro semi, the largest u.s. supplier of chip equipment to the military and aerospace industries the potential deal would value micro semiinto the $60 range fitbit's fourth quarter results missed forecasts weak sales over the holiday shopping season is to blame. the company also expects lower revenue from new products.

palo alto networks second quarter results beating forecasts. the cybersecurity firm giving upbeat third quarter guidance. revenue from its product business rose 20% and the stock is up 5% shares of neurtisystem are down today profit and revenue outlook for the year are well below analysts estimates. down 27% tenet healthcare reporting better-than-expected fourth quarter results. they posted their first increase in patient admissions in more than a year. it's also raising guidance for 2018 >> some big movers. still to come, the big money battle breakingout in the nfl. we have the details coming up. as we head to break, another check of futures, mixed at this hour essentially flat after big gnsai yesterday. back in a couple minutes some air fresheners are so overwhelming, they can...

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welcome back to "worldwide exchange." i'm seema mody let's get you up to speed on the market action. dow jones looks to open higher by 12 points the dow and nasdaq set to break ten month winning streaks. yesterday the dow saw the best day in more than six weeks look at the story in the commodity market with oil

trading slightly lower by 0.3% for wti crude. $63.73 let's check in on what's happening outside of the world of business. francis rivera is in new york with the latest for it's >> good morning to you nfl commissioner roger goodell is looking to rekoocoup millionn legal fees from jerry jones for jones alleged efforts to derail goodell's contract negotiation goodell could issue the punishment in the coming weeks spokesperson for the cowboys and nfl declined to comment. hope hicks is expected to appear before the house intelligence committee today she was scheduled to appear last month but that interview was delayed while both sides worked out what types of questions she could and could not answer. the tsa today will start testing new suicide vest detection technology at new york

city's penn station. so back on over to you >> thank you so much still ahead on "worldwide exchange," your global market rundown and another check on the top business headlines. plus more on the breaking deal news, comcast making a major bid for sky. the full details when "worldwide exchange" returns in a couple minutes.

cnbc parent comcast making a

31 billion befocash offer for s wall street roars back to life putting the dow and s&p 500 within a stone's throw of recouping february losses. and in the hot seat, jay powell faces his first big test today as he heads to capitol hill it's tuesday, february 27, 2018. "worldwide exchange" begins now. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm seema mody. this is wilf in person, back at head quarters. >> back after two weeks. great to be back great to be alongside you. let's kick things off with breaking deal news comcast making a $31 billion offer for sky. shares in sky shooting higher on the news let's look at those moves.

1332 the price for sky up 21%. investors think there may be a bidding war. fox already had a deal on the table. fox already owns 39% of sky this comcast bid significantly above that 18% above the fox bid and complicated by the fact or interested by the fact that disney has got a bid to buy that fox stake. there is a question of whether three big us bro.s. broadcasterl be trying to buy sky comcast down 0.2% in the premarket. let's get to cnbc's steve sedgwick live in london with the latest hey, steve >> good morning to you a lot of what you said i concur

with as well the fact that 1333 means the market thinks something is going on above the 1,250 share price some thought the bid would be destroyed by regulatory issues and other media's sets he owns in the uk. so 1,075 seemed a barrier on that bid now because there's disney, fox, comcast involved, we have gone north of that. the market hoping for a bidding war. 1,250 is the share price from brian roberts at the moment. what are they buying in the days where netflix and amazon and google and everyone is looking at content now, sky has been investing in its own con tent it has the rites rights to ga lo thrones in the uk. there has been an increase in

revenues to 6.5 billion pounds but it's the football rights that are key to many peoples re-rating of this stock. it may have been another catalyst for comcast saying we can do this, make the numbers work because the soccer rights, it looked like we may have peaked on the sporting costs if they can hold on to viers that's good news the cost of acquisition per customer that comcast have issues with, that netflix have issues with, that sky have issues with, maybe some of those concerns are abating the soccer deal in the united kingdom and europe are enormous for the sky customers. they have 23 million customers, a large number of them are there because of soccer rights which in 2015 cost about 5.14 billion pound sterling the rite rites agreed this mone 4.46 billion, so 2 million

pounds less per sporting season for those rights interesting to get one more angle for you, maybe two more angles one, the regulators will say we're nin knots over this one, they won't be in knots over comcast. y they g yes, they got me, geoff, over here, some other assets, but nothing that would give them a dominant position in europe. also look at the hedge funds, there's bower post, a boston massachusetts hedge fund they still have 4.6% as well in total, my understanding is that the hedge funds as of december filings have about 13% of sky as well so it's not just about whether mr. murdoch gives in on this one and gives his 39% to brian roberts or sells it to him, it is also what the hedge funds want as well

the big question is bob iger, rupert murdoch, brian roberts, does that work together? we don't know. back to you. >> back to the uk premiere league soccer rights, not only has the price peaked pore what they have to pay to have those rites in the uk, but the fact they have extended those rights presents an extra cost-cutting opportunity for comcast given that in the states nbc has the rights and you may now be looking at sharing various broadcast platforms. i think that points to a bigger question about the ability of comcast to come in and finesse some operations of sky, and some cost-cutting synergies, given that sky is not just purely an entertainment asset, it's a distributor of content, which is conten

content. >> let's be honest about it. comcast is in a dog fight at home as well as internationally. all the media companies are looking at what kind of format is the best one for 21st century viewers. it's about the likes of you, seem ma a se seema and millennials. pay pv tv is so big for this company. people are trying a host of ways so it would be an interesting fit on the pay tv front for sky. i want to bring in one more angle. sky is a trophy asset, but not as good as it used to be when it had the world to itself on this side of the atlantic there is always someone who thinks we can do that. and british telecom, on broadband, on content are fighting sky as well so interesting to look at bt, a

company with a whole host of issues as well, but they've been bidding up the rights, trying to fight the likes of sky as well while sky is an important asset, it has 23 million customers, its churn is higher than it wants to be churn is a key performance indicator. 11% of its customers leave every day. they want to get that churn down it's a little too high for the ceo of sky yes, sky is in a very interesting asset. the price has gone up today. look at other assets in the uk and how they're reacting the likes of bt and itv which was the subject to a lot of speculation about whether other big u.s. media players were interested in itv, another broadcaster here in the united kingdom. >> if this acquisition were to go through, it would lessen murdoch's influence in the uk. is that one reason to think regulators may be more receptive

to this deal >> i don't see how the regulators -- it's a great question it's one of the key points that everyone will be poring over i don't see how the regulators or uk government can have issues with this. mr. murdoch built this from scratch. he built news international from scratch as well. the times of london, "the sun" one of the most read newspaper in the english speaking world, he has a huge part to play in brit inneish media. he has been one of the most influential in british media, whether through brexit, thatcher, the blair dealings mr. murdoch is part of the

scenery, british, australian, american he covers a lot of ground. let's fate it shgface it, comca probably the biggest media company that the british never heard of i tell you what you can bet your bottom dollar that the british politicians will be jumping on this today the brexit politicians they'll say it's a vet of cote f confidence because comcast said they will keep the headquarters in west london -- not where i would choose to live" but they said we'll keep our headquarters there as well. so it's a great sign of confidence in post -- or during brexit, which i guarantee you brexit politicians will be jumping over today >> steve, thank you very much for that insight great to hear from you this morning. steve sedgwick from london one other quick point which i will add on this the quality of the sky settop box relative to

u.s. cable subscribers boxes is much better. that's something all of the b bidders, if they come from a telecoms background will look at they developed any over the top services and integrating it with a traditional television box the way it's all in one system, not something that all three u.s. boxes, whether time warner, verizon, they're not up to date on that. fascinating deal >> it's something i'm sure comcast is evaluating. let's check on global markets following yesterday's big rally. the dow gaining 400 points yesterday led by telecom and technology the dow is up 37 points in futures market nasdaq higher by 1 point s&p higher by 2. take note of how markets have come back since the february 9th

lows the dow is up more than 10%. s&p higher by a similar amount the nasdaq came roaring back by 12%. really a remarkable comeback we're still off the january all-time highs look at treasuries ahead of the jerome powell testimony ahead on capitol hill, we are at 2.871% let's talk more about the early market action with portfolio manager from federated investors. good morning, linda. thanks for joining us. what are you focussed on this week clearly a decent rally this week and yesterday. that came in light of yields going lower.

if that wasn't the case, do you think markets would be more worried? >> i think the attention will be on chair powell's testimony, and the economic indicators coming out with gdp, cpe. so the market is anticipating that the fed is not going say anything that is too controversial. he will talk about what has been the issues or what has been discussed by the fed over the last couple of quarters. they're going to remain patient. they're going to remain gradual and data dependent and the rates have not moved that much in anticipation of that testimony >> why do you think investors have turned sanguine over the prospect of rising inflation do rising consumer prices no longer concern investors or are we waiting for more data points to confirm the trend >> i think we will wait for more

data points. we had one or two, and the markets jumped to conclusion that inflation will be much higher and much faster i think that's part of the market volatility that occurred the last couple of weeks in addition, as investors understand the process of growth in the united states, they are also taking into account that capital expenditures will increase productivity, and that is naturally going to offset some wage inflations that are coming through a little bit of inflation with good economic growth is not such a bad thing for the u.s. economy and for equities in general. >> when you look at this deal news today, comcast making a bid for sky, the media industry continues to be in the midst of great disruption are those traditional telecoms names, media names as opposed to the new genre like netflix, are they attractive at this valuation? they're cheeper than the likes of netflix do these types of deals allow

them to compete with the modern media company? >> sure. valuations in media and telecom have been--it's certainly lower than the traditional technology and fang stocks. so -- and they offer some good dividends along with it. so valuation in itself, and if they can increase growth rates more, they become much more attractive to investors. especially as investors concede that earnings growth path over the next couple of years >> linda, thank you very much for joining us still ahead on "worldwide exchange," cybersecurity front and center at this year's mobile world congress in barcelona. we're headed there live for an interview with mcafee's ceo next on "worldwide exchange."

welcome back to "worldwide exchange." let's get you up to speed on the market action following that nearly 400 point move for the dow to the upside. the s&p gaining 1.3% the dow and s&p are indicated higher let's look at oil which traded at a three-week high yesterday on pace to break a five-month winning streak lower today, $63.75 for wti crude. cybersecurity taking center

stage at the mobile world congress jon fortt is there with mcphee's ceo, chris young over to you. >> thanks, wilf. chris, thanks for being with me here in barcelona. sky and comcast, big news today. sky is a broadband provider, comcast is, too. if this combination were to happen it would make comcast a global player in the space and a bigger target security wise. what are your thoughts >> strategically it means comcast becomes more international, different regulations, much bigger footprint from a cloud and connectivity standpoint. locally, when companies come together, attackers will follow. something to think about tactically as well as strategically. >> want to talk about security in the pre 5g era. last year more cars were added to wireless networks than phones i'm guessing not many of those

cars had hamcafee software in them how do you secure this new world of devices >> we see two domains when it comes to connected devices, vehicles one of them you have the connected device and then the cloud so we do a lot today in the cloud and protecting customers data and all the information, the privacy elements of what happens in the cloud platform, secondly the device. now with the auto ecosystem, it's a long time where we work with automotive manufacturers to speck in a lot of technology and have that be built out and shipped out through their supply chain. we're in that process now with a number of players. a little -- a few years out before we see cars ship with security on board as such. >> here in barcelona you announced a new alexa skill where people can check on whether devices are protected. enabling things.

but voice also will be an avenue of attack. people realized if i don't pick the right settings, people can read my text messages. what are some things you're looking into as far as securing the voice enabled home and office >> as you mentioned, using voice to control security is powerful in the sense that it makes it simpler for the consumer that's one of 9 biggest issues for consumers. it's too complex when you introduce new capability like voice commands into the home, that brings other security risks so you have to make sure you're concerned about keeping those devices protected. you protect the integrity, the connection, the integrity of the authentication of the device and that back end cloud platform where all the data goes has to be secure. so we do a lot of work with not only our traditional customers, some of the cloud providers providing this new information to give them cloud based security controls in addition to

what we do >> ransomware has not been in the headlines as much, but there's been a lot of attacks on small grounds, colorado department of transportation has been a lot of their commuters are offline in the past four days are we better positioned in 2018 than 2017 on the ransomware front? >> as an industry we're stopping more ransomware attacks today than in previous years but the rate of growth has been exponential. it's a constant game we're working against trying to make sure we proliferate protection in and around as many different organizations as possible. we are better at spotting attacks, using behavioral tools to identify ransomware, but it's today's modern extortion and something they will continue to

drive because they make money. we have to be concerned about that >> thanks. >> thank you >> john, thank you very much for that still ahead on "worldwide exchange," financials in focus, we're diving in on the banks ahead of the big jpmorgan investor day. heading to break, futures gaining momentum ahead of fed chair powell's testimony ghl ldwide exchange" wilbe rit back as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. to grow your business with us in new york state, successful people have onthey read more.on. how do they find the time?

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let's bring in chris wahalen. it sounds like warren buffett is a supporter of the stock and ceo tim sloan. despite that big reprimand from the fed we got and whether the worst is behind wells fargo and it's an attractively spraysed company. >> of the big banks, it's the best value we have jp closing in on two times book you would say it's fairly valued at this stage. 4%, 5% growth for the top line for this year from the street. in order to get there, it's not the bank side that will have to be trading and investment advisory that gets him there we'll see what they have to say today during the investor day. >> let's switch focus to jpmorgan investor day is today. lots of things on the agenda one area i wanted to start on, it links with wells fargo, the announcements we got on the retail bank that they are actually expanding the branch

network at a time when all other banks are doing the opposite it's not just a question about branches but moving into new geographies they're not currently in is that a threat to other companies like jpmorgan? >> no, they'll open branches in major metros where they already are. they're trying to take share in the highly concentrated cities frankly the big banks have been getting out of branches in the country. they left that to the community bankers. i think rightly so they want big branchs that have mass in terms of deposits and also loan origination. everybody in the branches will make your mortgage, do investment advisory, the whole gamut of products is available on the floor of all of these banks. they're competing for funding. >> dissecting this wall street rebound, why hasn't financials

played a bigger role in this turnaround, when rising rates are ultimately good for financial profits, the banks >> there's two things going on here yes, rates are helping net interest margin is expanding. the analyst community can also see lending is slow. it's nothing like it was two years ago. '16 was about the peak in terms of volumes that's interesting is quarles was on the line yesterday talking about capital and modest comments from him. in the background the guidance from the regulators is to pull back on real estate. they want to see the banks pare back it's hard to generate volume in an environment like that >> that's pretty much it for "worldwide exchange" this morning. let's check in on the prices of sky and comcast. comcast making a 12 pound 50 cash offer for sky stock, it's up 1,334

a big hmove in the london share pre icof sky that's it for "worldwide exchange." "squawk box" comes up next thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

good morning breaking news, comcast making a $31 billion cash offer for british broadcaster sky. we'll have the details coming up the fcc's rollback of net neutrality rules set to take effect in april. ajit pai will join us live from barcelona. and wall street's great comeback stocks roaring back to life. friday up 350, yesterday up nearly 400 putting the dow and s&p 500 within a stone's throw of getting back all their february losses.

it's still february 27th, in fact, 2018 "squawk box" begins now. ♪ live from new york where business never sleeps, this is "squawk box. >> good morning, everybody welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin who is back finally. back on set. >> back here i don't even know what time it is where are we 8:00 p.m. your time. >> they had to change the medals total, add another gold for your coverage >> woe neede needed an extra. >> fourth is okay. we have florida. we are not like for