it's kayla tausche on the east coast at cnbc head wears. ben bernanke will address community bankers today in virginia at an annual fdic conference. economic recovery, competition and regulation of banks are all topics on the table. the federal reserve chairman is expected to speak at 9:00 a.m. local time. we will bring you live coverage of that event so tune in. u.s. home foreclosures are still on the rise. new filings up 3% in january over the previous month. one out of every 624 u.s. homes had a foreclosure filing on it last month but there is some good news. new foreclosures are down nearly 20% since january of last year and yesterday federal banking officials extended a deadline for homeowner foreclosure reviews. >>> the head of the euro group has said he expects a greek bailout within days. this is the portugal has arrived in portugal to ensure the country is on track to meet its bailout. silvia is in lisbon. i suppose the big question everyone is wondering is if portugal is yet caught riterize any major greek default? >> reporter: th

kayla tausche thanks for that.en, in terms of all this that we're learning i'm wondering what your reaction is. >> i actually am confused by that fair value of class shares. i don't know if that's what -- i really don't know what that -- i don't imagine that -- maybe it's a price. i don't know. >> kayla, are you still there? >> i'm still here. doesn't say much about it. it says we determine the value of your common stock to be $23.79 per share as of december 31st 2011. >> and that's the ten for one voting shares? >> yep. >> i don't know what to make of that. >> we'll still pour through. it's 200 pages long. >> may have to do with the secondary market currently. >> all right. we'll have full coverage, continuing coverage of the facebook s-1 filing. first move tomorrow when we come back. [ male announcer ] the two trains and a bus to the 5:00 arider.holar. the "i'll sleep when it's done" academic. for 80 years, we've been inspired by you. and we've been honored to walk with you to help you get where you want to be. ♪

for a check of the markets we turn to kayla tausche. good morning. >> good morning. yeah, if it's any indication we are heading back to the mark. futures are higher after an up and down session. the dow tried to close above 13,000, it recovered from an early 100-point drop to trade as high as 13,037 before falling back at the final bell. a rise in pending home sale desire help concerns about the g-20 support for europe and the latest greek bail-out package. asian and european markets are higher and we get data this morning on demand for durable goods, home prices and consumer confidence. the dow slipping to 12,981 t nasdaq ending up 2966. you mentioned airlines before, they are figuring out ways to generate revenue beyond the bag and change fees. some turned to banking. "the new york times" says airline new zealand holds cash, airline miles and foreign currency and the airline collects a small percentage each time the card is used and charge as fee if activated. intercontinental hotels wants to encourage you to work out even on the road. "the wall street journal" say

our own kayla tausche will have more details coming up on "power lunch." for now, tyler, over to you. >> seema, thank you very much. the markets sort of struggling a little bit today. make no mistake, the dow is in rally mode recovering very nicely from the march 2009 lows up nearly 100% in that period of time, three years. in fact, all three major indexes charging to the upside over the past few months now in bull-market territory since october of last year, each up more than 20%. so much green on the board that blackrock's chief said today he thinks investors should be 100% in stocks. should investors be as bullish as mr. fink and go all in, or is there reason to be cautious? and joining us is another larry, managing partner with may flower advisors. larry, let me start with you. you are, you say, becoming increasingly bullish. and one of the areas that you like, low and behold, is european multinationals. a lot of people would say what are you nuts? make your case, larry. >> yeah, larry fink has the right idea here. we know he's on the right track. mayb

kayla tausche will join us later with the u.s. opening. greece is the first to be rated insolvent. lowered athens credit rate to go selective default. it follows collective action clauses in a bond exchange deal that will see private creditors take a 74% loss on debt. according to s&p the clauses makes the debt swap a distressed debt restructuring. they say the rating will be raised to ccc once the bond swap has been concluded. this comes on the heels of lowering ratings that kept it at the lowest level above a default. elsewhere the finnish parliament debating the 1300 billion euro greek bailout. min ministers from both countries have been ramping up the pressure on that. the dutch finance minister voicing his skepticism over whether greece can follow through the promise. the bundstad agreeing yesterday. 230 actually voted in the measure. george mag enough is with us for the first hour of the program. george, a very good morning to you. they are going to decide on wednesday whether they put these collective action clauses in for credit event as well. what's your own view of greece

kayla tausche is looking at the faces leaving wall street for the valley. kayla?en the lure of the big bucks on wall street that's not only been able to attract the country's top minds but to keep them there. thanks to the recent explosion of wealth in silicon valley, keeping wall street's talent on wall street has just gotten a lot more complicated. >> i realize when i was a young kid that i had one big goal in life. and that was to get as wealthy as possible as quickly as possible. >> reporter: for tristan walker, that dream led him straight to walker. growing up on welfare in the shadow of manhattan's high-rises, wall street was his way in. but after years as a trader at lehman brothers and jpmorgan, silicon valley came calling. >> i didn't want to be the victim of bad culture. i wanted to be the creator of a great one. >> reporter: so walker headed west. he's now head of business development at foursquare, one of the valley's fastest growing social start-ups. but start-ups aren't limited to the west. >> the start-up environment is totally different than the cu

kayla tausche is going inside that offering for us. hi, kayla. >> hi, sue.aesar is one of the tiniest ipos of the year even the 2006 leveraged buyout of the casino operator was considered one of the largest ever. the company was still called har ra's back then when it was bought for $31 billion including debt. now they're taking a mere 1.4% of caesar's public. pricing tonight could raise up to $18 million. the company had previously attempted to sell 31 million shares between $15 and $17 a piece. that would have raised more than $500 million at a valuation of $5 billion. but that ipo was canceled due to "market conditions." but now besides the name, not much has changed. caesar is still heavily leveraged. $22.6 billion in debt currently. only a billion less than 2010. it has less than $2 billion in cash on hand and the company is raising an additional $1.25 billion in secured bonds in the near-term. more debt there. still looking to take about a third of the company public. another chunk of shares owned by the firm's co-investors and a few other big name inv

kayla tausche is with us for that angle. >> when you thought there couldn't be more on mf global, wee trustee overseeing the mf global bankruptcy released an update this afternoon showing exactly went funds went missing, with he don't know where, we do know when. because of that occurrence, mf's customers' accounts hate shortfall on october 26th, a day earlier that thought, but a reporting error kept personnel from being aware of it. because of a lack of accounting clarity it is possible that several mf global personnel were using a reported excess of the so-called segregated funds even though they had dipped below the break-even threshold. the number of transactions executed by mf global the last week prior to bankruptcy not only exceeded unprecedented volumes but also many were "failed transactions in" in which the buyer or seller fails to deliver the cash or asset at hand. the report makes clear from the trustee that funds regularly moved between these accounts and the trustee's investigation centered around some 840 asset transfers valued at roughly $327 billion. now, they are wo

you stay there meantime while we bring in john carney and kayla tausche for today's edition of the hotla, you just heard what julia said about twitter. weigh in here. can it make money? >> i think it can make revenue. i'm not sure it can make profit. i think the part of that campaign that julia didn't mention that she did mention earlier is that they're actually going to allow for political advertising. that's going to be big during this election year, but i don't think that's going to create enough of a revenue stream to create the sort of numbers you would need pre-ipo based on what we've seen from other companies, i do think some strategic players need twitter more than twitter needs to go public. so i think as far as it building out some of these platforms, that's important as far as a product is concerned, making money is something that's still in the early stages. >> john carney, you strike me as a twitter kind of guy. will they make money? >> i think they can make money. i think this is one of the steps they need to take to figure out new sources of revenue. it's very hard to ma

our kayla tausche has been tracking the money moves lately. hi, kayla. >> hi, sue. it's hard to remember a time when warren buffett wasn't bullish on stocks. that being said, retail investors are starting to believe that story line even if they're tentative in moving their money here. for the week ending february 22nd, mutual funds saw $6.2 billion coming in with about $1.3 billion going to equity funds both investing in stocks here in the u.s. and abroad according to data from lipper. certain headlines have helped this. the lack of a disorderly default in greece, the bank of japan increasing bond buying, better u.s. jobless claims numbers not to mention favorable corporate tax moves here in the u.s. that's according to to barclays head of u.s. equity portfolio strategy. but of course it takes several weeks to be able to read the tea leaves in these fund flows because even as the market has been in a nay sant recovery mode for the last three months with the dow up 15%, the s&p up 18%, full week average inflows to equity have been negative since april of 2011. everyo

more now from kayla tausche, jon fortt and john carney. t question to everyone here beginning with you, kayla, should facebook share less of its stock with the banks and more with its own clients and customers? >> well, tyler, the original issue with the $100 billion figure when it came out was a bit of sticker shock, but also the company wanted a little bit of room for upside if $100 billion is full valuation, you got to be able to have some upside there. they hired the banks to be able to price this conservatively and build in that upside. when you open it up to the entire market, you can't engineer it that way. >> jon fortt, same question to you. >> i don't see the point. when you think about more than 800 million facebook users which of those actually get to participate in the deal, pretty much everybody who's going to be buying it after it's publicly traded is the same people who would get in before. it seems to me like they would have to play favorites to do that. >> john carney, am i being too populous here? >> i think you are. i als

kayla tausche has the latest. >> simon, at this moment we have the reps from moody's and s&p testifying. they're in the thick of it. after this morning mf's former risk chiefs were grilled on the missing money. their answer they don't know and had nothing to do with that. but there was some familiar territory like whether mf global purposely placed a conservative risk manager in michael roseman with a more lenient one in michael stockman in order to make the bigger trades. >> it almost looks like they took mr. roseman out and replaced mr. roseman with the yes-man. does it look that way to you guys? mr. roseman, would you comment at all you gave them information they didn't like and replaced you and put someone in that gave them information that they liked? >> i would say some of my views would have played a part, i believe. >> stockman disputed being a yes-man but then faced the question of whether once those trades were made keeping the risk off the balance sheet was actually ethical. >> as it relates to accounting and accounting treatment and how the -- >> you don't have to keep going

>>> and i'm tyler mathisen with kayla tausche and brian shactman. and "power lunch" begins right now. >> i guess you could say markets are meandering a bit. a definite downside bias. greece and iran, existing home sales were better but not enough fire pow tore set off another leg in the rally. the s&p down about five points. tech, actually which has been the leadership the laggard today down .5%. check out commodities, the whole complex. what's standing out to me? 1.5% to the downside in natural gas heading back toward $2.50. metals pulling back a little bit, especially silver. get an update from the nymex in the next half hour and sugar down about 1%. garmin's q-4 guidance jumped. that stock very up. something about that company was dead with gps and re-invented themselves. q-2 profits up 62% and nabors up 5.5%. drilling in the lower 48 better than alaska and canada. and nuclear exploration big earnings missed and two downgrades followed that. it's down 12%. investors hitting control, alt delete on dell today. outlook disappointing. and sales of th

. >> well, greg, this is kayla tausche. good to see you.ted to ask you about $26 billion he had in 2008 that number came down to less than $5 billion in october. i want to talk about how much he actually has in assets and what percentage of that is made up by lightsquared. what are investors saying their concerns with that? >> it's an odd situation because even his own clients, his own investors, didn't support -- or many that i've spoken to didn't support and were trying to get out. so for the past few years a lot have tie etried to get out. even talking to his own investors and clients, they're not necessarily supportive. i've talked to some people who think it's a good idea, but probably wasn't the best idea to do it in a hedge fund structure. down to less than $5 billion in assets. this is a huge chunk of it. and it's not clear whether investors will line up and give him more money. he could fight the government, but he has to have capital to do that. >> gary, he's known for making big bets. that's what a lot of these guys do out there.

more on that now cnbc's kayla tausche join us us and sara ellison at the "the wall street journal."'s own people are effectively chopping this and nine arrests to the british police. it's an internal investigation that is throwing this up. >> yeah, well, simon, they established this management and standards committee in july. a lot of this has been expected at the sun as the levinson inquiry. a lot of testimonies pointed fingers at the sun, a lot of these other newspapers that are not named news of the world. so a lot of people expected this probe to reach the sun if not sooner rather than later. so this is largely expected. also remember james murdoch stepped down from the board of the sun and times. you had to know they knew something was afoot. >> nonetheless, sara, how unwise is it in your opinion to anger journalists at a paper like this from your experience and from writing the book from having looked so carefully at the journal? >> well, i think that what's happening inside news corporation and people have talked about this is that there's sort of a civil war inside the compa

our kayla tausche on that. >> it does. yesterday there was a debrief on operation.ce commissioner gave a very damning update. >> reveals a network of corrupted officials. there's also appears to have been a culture at the sum of illegal payments and systems have been created to facilitate those payments, whilst hiding the identity of the officials receiving the money. >> akers provided further details about what's taken place since police were notified last june that a former journalist at "news of the world" may have been paying sources. a number of arrests have followed since then. ex-senior managers who authorized payments and one kurnt staffer who is allegedly paying police in cash. akers said some 80,000 pounds were paid to public officials with one journalist given the equivalent of $238,000 to pay his or her sources. but akers says the investigation is closer to the start than to the finish line with the police effort set to ramp up by at least 50%. now, news corp.'s own management and standards committee is expected to release a report on its own findings in

kayla tausche back at h.q. with more on that story.ole news earlier this morning. rite aid is interesting because it's not necessarily a sale. but a couple of weeks ago, the company issued a bond, about $481 million that was going to be used to refinance other debt. here's what got investors talking about a potential sale. the stock up 5%, shooting up on the day that they issued this bond. but here's the issue. there's a clause in the deal that allows a 10% premium for bondholders so they'd get paid at 110 cents on the dollar in the case that the company entered into a definitive material agreement or a deal in which it would sell itself in the next year. that's got a lot of people chattering about whether rite-aid could be putting itself up for sale. here's why. this doesn't happen often. it's only happened in a handful of cases in the last year and it's largely happened with energy company. if you see the only other recent issues like this that we've seen, kodiak oil and gas, oasis oil and petroleum, these are big bakken plays. a bon

we have a big house in order, mandy drury, kayla tausche, steve liesman and gary, filling in for becky off to the west coast for a very big show tomorrow. becky and joe will be joining us from the at&t pro-am in pebble beach. take a look at futures now, looking lower, dow would open up about 14 points lower, s&p off about 3 points and nasdaq off 3 points right now and steve you have breaking news. >> the bank of england confirming expectations to inject another 50 billion pounds into the easing economy. some positive comments, business service more positive painting of a picture. it will keep the bond size under review. it expects a gradual strengthening of output supported by a gentle recovery. >> is it nan in us? >> i'm looking to that. the inflation is expected to fall in 2012 and new bond purchases completed by the end of a. and it's worried about the euro debt problem, so again, that's one shoe. we have the other shoe we know is going to drop, the ecb. >> in 45 minutes' time. >> and what they're going to say we'll probably keep interest rates unchanged but this is a big financing

kayla tausche has been following that story all morning and joins us now from headquarters. of whether you're a retail investor or run of the mill facebook user you better have a good broker if you want some of these shares. roughly 20% of the shares that actually get issued will fwo to retail investors. that will be hard to come by. the idea facebook would democktize the ipo process is a little farfetched considering how conservatively they've been viewing this process the whole time. first, since the offering is so massive, any small fluctuation in the price means a lot of money is moving at any given time. when you have a user base of 800 million people and a market with a mind of its own you don't want to risk alienating that user base if the stock goes down. a second reason, the volatility of the price range would be heightened without registered financial professionals choosing that allegation. people who hate facebook mite bid 10 bucks a share. people who love it might bid a multiple of that. the reason facebook ended up choosing investment banks would be to control t

kayla tausche has more. >> rupert murdoch heads to london thursday to rally the troops after eight wereof which were "sun" employees. the big issue this time is bribery, whether employees at the "sun" engaged in improper payments to police. a victim's lawyer said he will come to the u.s. to look into the allegation. the story line has changed. but this all comes as news corp made much progress on settlement with victims. 54 out of 60 filed in october were settled. an additional 15 last week were settled. news corp spent $200 million so far on the scandal with about $87 million to be incurred. but 50 more suits are expected to be filed in the coming weeks with the first civil trial involving the case of charlotte church starting february 27th. an independent inquiry has been going on for the last four months and it's examining the questionable ethics of uk media where many testimonies pointed to practices at papers like the "sun" rather than just "news of the world." in a memo to employees, rupert murdoch says he maintains total commitment to own and accomplish the "sun". >> earlier in t

. >> kayla tausche has more on this interesting offering to say the least. >> you and i have both lookedpoken to who are familiar with this transaction, even though we might have thought it was headed straight south because of the ability to a lot of co-investors to sell their shares, remember when there's a tiny amount of float that means oftentimes it's engineered to go higher. some of the people very familiar with the transaction said there's no viz ability to see how it's going to trade. it could go sharply up or sharply down. they just didn't know. it will be interesting as you see some of this volume coming back into the market, where the stock goes. whether it middles out, staying on the up or actually goes down. you have 1.8 million shares that are actually going public. but you have 11 million shares that are actually eligible to sell right now. clumps of 33 disparate co-investors who actually can sell their shares now. the biggest clump of those, goldman sachs has about 20 affiliate entities who hold these shares. one of the biggest eligible sellers here is actually calter's, t

kayla tausche is here with much more. >> this is really gilead's first stumbling block in developing oral hepatitis c treatments. it is the first big test for the deal. the company saying this morning 6 out of actually 8 patients being treated with their two-drug combo relapsed within a month after treatment. it's also -- as we said, the first big test for this deal. the drug called gs 7977 was the crown jewel of that $11 billion price tag. at the time, david and i sat here and talked about how if these results had come out before the january close date, the deal would have been in jeopardy. a lot of investors sold when the deal closed. a lot of investors, though, still hanging on to gilead shares. they're still in it taking it on the chin today. pharmaset shareholders -- the company just finished a conference call this morn ing. the stock is coming off its lows. it was down about 20%. now it's down about 15%, 16%. executives were taking questions about how there's still data set to come out this month. the fact that the patients in this group, in this study, were those who had been

hoping to end this week on a high noxt for that and the rest of the news before the bell we turn to kayla tausche live. good morning. >> yes, good morning. the 13,000 mark is a psychological pressure point for the market. we're trying to get back there. we hit it briefly earlier. as far as this morning futures are higher after stocks closed up thursday. s&p 500 is near a 10-month high n. vesters cheer positive economic reports and home prices and unemployment filings as well. asian and european markets were higher and this morning we get reports on consumer sentiment and new home sales in addition to earnings reports and the likes of jc penney before the bell. the dow rising to tweg,984, the nasdaq up 23 to 2956. pepsi is seeking middle ground as it looks to win back soda drinkers. for people who don't like calories, pepsi is launching a new mid calorie cola that has about half the calories of a regular pepsi at 60 a can. it's the company's biggest product launch in years. pepsi next will be available in march. >> thank you very much. it is 5:20 now. despite threats that hundreds would be laid of