kayla tausche has more. >>> for many of americans, a thick envelope came in the mail, a new card imbedded with a chip. as customers raced to get ahead of the shopping during the holiday season. each new security breach has been a reality check. >> as the additional breaches are happening, our issuers are accelerating their plans, that were already in play. >> since then, this technology has come into focus, it is popular abroad because it requires a unique code to carry out a transaction. >>> when britain switched to a chip and pin system they cut fraud in stores by 70%. >> not surprising then, the banks and credit card issuers focused first on replacing cards most used by international travellers and frequent fliers to cut down on overseas theft. but this month it went main stream with bank of america replacing old debit cards with chips. more banks and government-issued cards will do the same thing next year anticipating a widespread change at the checkout that requires retailers to get new terminals, too. president obama highlighted the issue at the consumer financial protection bureau

kayla tausche has some of that. kayla. >> banks both here and abroad, simon, aren't backing down from the market. they'll actually ramp up their sovereign bond buying in the fis of new regulations. here's why. this year regulators will put in place what they're ruling safe assets that they can fund in a crisis scenario instead of getting bailed out. no surprise u.s. treasuries are included in those safe assets so banks here are buying them en masse and those overseas will have to, too, once those are implea menled. so far it's been unmistakable. the u.s. commercial banks seeing their stockpiles growing to $605 billion. that's a 23% increase just since december when the tarp actually started. bank balance sheets showing similar growth on an individual basis. city's treasury up since last year. bang of america's, there's is increasing by 20. bna treasuries. if you worry there will be fewer buyers of these bonds, prices will go down and yields will rise, some of that might be overstated. there will be many banks that n

kayla tausche with the latest on citi. we are watching the shares lower in the afterhours session on this news. down about 2% at this hour. now we know there are four agencies, one agency with two divisions as well as anti-trust. does the picture look worse now? >> i actually -- it does look a little worse to me. i think the fact that the doj criminal is involved. and i know there's been other criminal problems within this area or globally. but it concerns me a little bit. and then secondarily, is there a spillover? when i first heard this news. my thought was it's citi specific, that's all it has to be. i don't know the answer to this. but the markable question. is there a spillover to other banks? are there other investigations coming down the line? >> but we know there are. i would think that would be mitigating because everyone looks for citi to be once again this problem child with -- >> it's better because everybody else has the same problem? >> yeah, and i also think that doj and criminal elements. we'll track the d

the hour number two with scott wapner, kayla tausche and return of mr. wonderful, kevin o'leary. you guys tomorrow. >>> bill, thanks. i'm scott wapner joined by kayla tausche once again, and shark tank's kevin o'leary, how we are finishing another wild day on wall street. still waiting for the dow to settle out. it looks like it's actually going to end up closing negative by nearly five points. thesome and p hasn't had a four-day losing streak all year around it, too, looks like it is gonna eek out a loss and that will be its first four-day losing streak of the year, unless things continue, kayla, to settle out and actually goes positive, but this is a wild day u >> that's loss by .4-1,000th of a percent. really call it a four-day losing streak? >> just by the stats. the stats tell the story. what a crazy day though. if you look at the move inflorida day in the market itself, there are a lot of people who are going to be looking at the move in the russell, kevin. there was a lot of consternation of we are the russell 2000 had been going lately, small caps rolling over big time. >

kayla tausche has the details. >> yeah, just aer

kayla tausche and jon fortt joining us on a very busy day.shares of ibm, definitely the story of the morning. huge earnings miss this morning. shares down about 7%. our own david faber is at ibm headquarter where he wrapped up that interview with ibm ceo ginni rometty. hi, david. >> hey, carl. disappointing day, the words ginni rometty used a number of times in our interview and on the conference call, a rare appearance for an ibm ceo on a conference call, pointing to the importance she felt in terms of at least communicating with investors about what is a significant well day for the company in many ways. not a good one in the sense of missing earnings, abandoned that road map set in place by her predecessor sam pomsono but as she has done in our previous interviews pointing to the transformation that is under way at ibm, moving into what she calls the higher valued businesses with

john steinberg ceo of the daily mail north america, kayla tausche is back. welcome back. john fortt as well. the big story, hp announcing it will split into two companies and cut 5,000 jobs. shares of hp rallying on the news this morning. hp will split into two publicly traded entities. the pc and printer business using hp inc and services with hewlett-packard enterprise. david faber talked to meg whitman in an exclusive interview this morning. here's what she said. >> another enormous change. everything about how compute is being bought, paid for, sold, how applications are written, from, you know, a licensed model to a sas model. how employees and customers interact with technology. and you can just see the pace of change. and there's technology that is enabling that change that wasn't even available four or five years ago. whether that's cloud or the ability to take huge data sets and gain insight, we have to take advantage of those changes. and if you're not careful you'll be disrupted and you have to stay on your toes and be able to respond much more rapidly when the

kayla tausche and jon fortt joining us on a very busy day. take a look at shares of ibm, definitely the story of the morning. huge earnings miss this morning. shares down about 7%. our own david faber is at ibm headquarter where he wrapped up that interview with ibm ceo ginni rometty. hi, david. >> hey, carl. disappointing day, the words ginni rometty used a number of times in our interview and on the conference call, a rare appearance for an ibm ceo on a conference call, pointing to the importance she felt in terms of at least communicating with investors about what is a significant well day for the company in many ways. not a good one in the sense of missing earnings, abandoned that road map set in place by her predecessor sam pomsono but as she has done in our previous interviews pointing to the transformation that is under way at ibm, moving into what she calls the higher valued businesses with higher margins and higher growth. although admitting that it was a disappointment. >> third quarter earnings were disappointing. they weren't what

it is time, kayla tausche. good morning. >> good morning. thank you, simon and sara. it is 8:00 a.m. at google headquarters in mountain view, california, 11:00 on wall street and "squawk alley" is live. ♪ >>> good monday morningp. welcome to "squawk alley." carl quintanilla is off. joining us for the hour today what a treat, the two johns, that being the john steinberg of "daily mail north america" and jon fortt joining us. >> the john steinberg. >> capital "t." after using the system for only a week, pharmacy chains cvs and rite aid are shutting down support for apple pay. no official reason given, but many are speculating that both are working on a competing mobile payment system. here's the statement from rite aid. the company saying, quote, rite aid does not currently accept apple pay. we are continually evaluating various forms of mobile pay technologies and committed to offering convenient, reliable and secure payment methods that meet the needs of our customers. in total, guys, this is about 12,300 stores, rite aid and cvs combined, jon fortt, losing or at leas

it is time, kayla tausche. good morning. >> good morning. thank you, simon and sara. at google headquarters in mountain view, california, 11:00 on wall street and "squawk alley" is live. ♪ >>> good monday morningp. welcome to "squawk alley."

john steinberg ceo of the daily mail north america, kayla tausche is back. welcome back.ig story, hp announcing it will split into two companies and cut 5,000 jobs. shares of hp rallying on the news this morning. hp will split into two publicly traded entities. the pc and printer business using hp inc and services with hewlett-packard enterprise. david faber talked to meg whitman in an exclusive interview this morning. here's what she said. >> another enormous change. everything about how compute is being bought, paid for, sold, how applications are written, from, you know, a licensed model to a sas model. how employees and customers interact with technology. and you can just see the pace of change. and there's technology that is enabling that change tha

kayla tausche is here at post 9 with that story.s a concern about the federal reserve exit. >> to your point you just made, simon, one of the fears is that if you take a big buyer out of the market, then prices of bonds fall, and yields rise a little bit too soon. but that fear might be a little premature because there is a big group of net buyers stepping into the market. and that's the banks. take a look at the buying activity on behalf of u.s. commercial banks. just since the fed began its taper last december. you can see that chart is going up and to the right in a very decided fashion. banks now hold more than $600 billion in treasuries and agency securities. if you add in mortgage-backed securities, the number is near $2 trillion according to data from the st. louis fed. so why is this happening? you may think they've been taking advantage of this year's unexpected rally in bonds, but in fact, it's actually a consequence of regulation. ironically, the fed passed this year that goes into effect over the next two years. it requi

kayla tausche was on that call. she joins us now with the highlights. kayla? >> hey, joe.urse the call every quarter we get to walk through the highlights from the earnings as well as hot topics and current events for the company. i'll jump right in. we did see profits across the board that were less than expected at jpmorgan. a lot coming from the corporate and investment bank due to a $1 billion legal charge. i asked them to clarify what that was. while they couldn't provide much of an explanation, they did note part of that was related to foreign exchange and some of the currency settlements that could be forthcoming. i asked about global volatility as well. jamie dimon saying while the global situation may slow down american growth, it won't hurt the consumer recovery where broad based spending is improving there. and he said that some of jpmorgan's businesses, the commercial lending business should be insulated from that when it does continue. they couldn't predict how long it would last. lake, the cfo of jpmorgan said fixed income trading would continue to be choppie