Transcripts For CNBC Squawk Box 20150112

Stronger dollar and slowing Economic Growth overseas. Foreign ministers are said to meet in germany for a fourway summit on russia and peace talks aimed at ending military talks Angela Merkel is warning a lack of progress from russia. And the ruble dropping today. Well show you now. And millions of french citizens taking part in an historic march this weekend to pay tribute to victims of islamist militant attacks. A line of World Leaders lead the way. Arms link. Among them israeli Prime Minister and the palestinian president all together. No high ranking u. S. Officials took part. That lead to a lot of criticism. Well have a live report from paris. You saw here covered on the daily news this morning. Sunday more than 40 leaders watched none of the men showed up. The news said you let the world down. So there it is. Some people say eric holder, by the way, was in paris and didnt go to this. I dont know what that says about i dont know. I saw some stuff on some of the websites that said obama watches football or something. But that was one of the websites that has something to say like that. I dont know to think about this. Im not ready. Its monday. What i i get tired of criticismkritcriticizeing. Look aing at frances population. The Jewish Population there is only 1 . There have been a lot of jewish people leaving because of antisemitic concerns even before this happened. I think that will be something to watch closely. When i saw netanyahu was there i thought its pretty significant. And then to see we didnt show up. Yeah. Are you surprised at anything . Im not surprised. But when you saw all of those guys everybody together and then we were not there. Were going to be talking about it later. We have that for us. In Corporate News rovp is buying a majority steak in molecular annalist Firm Foundation medicine. They hope the deal will boost the personalized cancer treatments. We will talk to the ceo first on cnbc at 7 30 eastern. Shire is buying nps pharmaceutical for 46 a share in cash. Thats about 5. 2 billion. This is shires biggest acquisition yet. And the deal gives shire access to two promising drugs and improves its rare disease business and got some money from a break up fee. Yes. That it is using to buy this. Like a little doesnt get a lower tax rate. Right. And the Jpmorgan Health care conference is underway in california. Normally it means a lot of market moving data among the highlights so far pharmaceutical said the experimental helped improve blood clotting preventing the bleeding of course, that characterizes the disease. This was a small early stage study. A late stage trial of Bristol Meyers met the main goal showing it helped lung Cancer Patients live longer than the comparative drug. I actually missed out on some of the Golden Globes to watch steve bril on 60 minutes with what is her name . I didnt get a lot out of it. It was a criticism of obamacare. I thought it was going to be a look at it said it may become unaffordable. I expected it to look at way premiums will need to increase as we cover more and more but it was more attacks it was more republicans call it a take over. It was a way for taxpayers to pay all the money to the private sector is gouging out of health care. It was it almost looked like it was a taxpayer advocacy piece but it wasnt. It was about the private sector and their dirty profit incentives and how one thing it did say weve had others saying its been responsible for the drop in slow down in the increase of Health Care Costs and he said not i think he used 99 of Cost Containment efforts went by the wayside of this in each major private sector group that had a dog in the race. They all got. The Drug Companies nope. Price controls they did well. Hospitals got more patients. Insurance Companies Got patients. The entire private sector was bingeing feasting on the deal and taxpayers will be stuck with it. Nothing about its a massive redistribution and, you know, most of the 10 million new i think how many of them are actually subsidized. Almost everyone signed up is on the government. Its an entitlement basically. It wasnt anything about that. What her name . Less leslie stall. She maybe looks incredible ss ss inous. What 60 minutes does it puts on a grand scale and give it is to them. They have a, you know, they have a perspective they like to present things with. I said wow theyre going to do something on how its going to become unaffordable. Its not about that. About premiums or the government is going to be such a big nut for the government to have it wasnt about that. It was about the private sector gouging people and obamacare didnt do anything. I didnt see it because i go to bed so early. You werent watching. I was going up to bed i watched a little bit of the Golden Globes because its on a fine network i figure i hate award shows if nbc does it. Theyre on the cover of the wall street journal today. One thing i noticed is that the mucks i didnt see burt there. I dont know if he was there or not. Iger was so front and center. He looked like one of the actors. He did. He looked like he was going i saw him. Right in the front tables and one of our friends. Yeah. He was there. He was put together. Not a hair was out of place. And they looked like they were friends. Big night. Big night. Big night. What George Clooney won a Lifetime Achievement . He won an awartd. What was that based was that based on . Can you list is that it . The obama nobel peace prize. The award and that would be . I can go through er. Oceans 11. Seriously . There have been terrific films. Monuments men. Im trying to think recently. Im from cincinnati im trying to give him the benefit of the doubt. All right. There it is then. As you would say. There you have it. Why dont we get a check on the markets. It looks like the futures are looking higher. After a down week for the market. But not nearly as much. Later in the week we have things balanced out a little bit more but the dow ended the last week down by about 95 points. You can see the futures this morning indicating an increase of about 75 point for the dow right here. S p futures are indicating up about 8 points. The nasdaq indicated up by just over 17. Our colleagues at cnbc europe reporting this morning that the ecb plans to ayouns a qe Program Based on the contributions based from the central bank. They meet next week. A lot has been anticipated by the market. Its up by 1. 5 . Similar gain in germany. The ftse is up too. Taking a look at asia. Japans markets closed today for a holiday. The hang seng was higher. The shanghai down by about 1. 5 . And in korean slightly higher. Goldman sachs cutting the average to 50. 40 from 83. 75. Goldman said that oil prices would need to stay near 40 for most of the first half before it hold up shale oil investment. You see this morning wti is at 47d. 16 and present at 48d. 58. Youll see the yield is sitting below 2 . 1. 967 . You want to see where the dollar is holding up. It looks like the dollar is up across the board. Euro trading at 117. 49. And gold prices this morning look at this point as if they are up slightly by about 4. And this story continues to develop. The hunt for a suspected accomplice behind last weeks attacks in paris. Officials say she crossed into syria from turkey. Joining us from paris with the latest. I guess a couple of days ago we had the notion anyway she was not involved with the murder of the female police officer. She had been gone a couple of weeks ago. Is that still the case . Well, now we know of course from the Turkish Foreign minister this woman passed into syria on thursday of last week. An update for you there. I want to mention a further update. They were watching the borders quite closely. Its interesting to note that despite the fact that the foreign minister was here among other World Leaders, we only are getting this information now. But of course as i mentioned, four million almost people marching across france this weekend. The pictures you can see them fascinating pictures of more than 50 World Leaders gathered together. Theyre coming together. Netanyahu, david cameron, Angela Merkel. An unprecedented gathering of the Global Leaders in solidarity. The big question where was president obama . Everyone has been asking this question. If youre walking in the crowds over the weekend we heard it several times. Asking where is john kerry . Administration sent attorney general eric holder. We have new video footage for you as well. Reporting to show hostages being escorted from the building of the kosher supermarket on friday. The new video as well. So you to understand that despite the fact the marches may be over in france were on a high level of alert. 10,000 security personnel have been dispatched to the most sensitive places and as well as some 5,000 security personnel to protect jewish schools. Guy, back to you. All right. That is new information. I thought before on thursday very good. Thank you for the report. And you have a guest to talk about this. Joining us on the set now yournow ian. He was named founder at large and editor of time magazine. We were showing the cover of the daily news. Ill show it again. You let the world down and that referring to the United States and the president not being there this weekend. You spent a lot of time talking about geopolitical issues and implications. It doesnt look good or . You know, especially given the fact that france has been arguably the most stall wart supporter supporter of the United States and our policy against radical islam trying to fight it. The germans didnt, the brits werent able to get the vote on the syria. The french were there. I think given all of that the fact that really no one showed up. Holder was there for a conference the day before. He was in town i think its astonishing. And kerry came out. I dont like to play off headlines like this usually. This is a big miss by the obama administration. And this morning kerry was planning on going to paris this week now a snap decision responded and saying the criticism of no one showing was quibbling. He actually said that. Now we smack down were going it say it was nothing. We cant this is an enormous National Moment grave significance for the french people. They had more people turn out annie countrys history. Since 1944 when the germans were kicked out. 4 million on the streets. Its just everyone is there. And a lot of leaders there have no interest in free speech. But not the point. The point is you have to i dont think obama could have showed for this. I think that security implications and such a short period would have been a distractions from a lot of what was going on. But, i mean, why god invented Vice President s. I think the answer is yes. And michelle obama. There are plenty you could have made a difference here. And i think i dont think this is ill conceived. I think there are so few people right now drinking out of a fire hose. Its a small group that is loyal around obama in dealing with so many brush fires internationally. I think theyre overwhelmed. You think they missed . I think they gave virtually no thought to this until it was too late. And now the problem is of course with the modus operate does is we cant be seen to have made a mistake. Were going to down play it. Hes not running again. He already had to come out and say it was a i didnt think of the optics of playing inging golf after the beheading. Its not a new development. Its a pattern. At this point they had to know. Given the criticism he had faced about being sort of not that involved or at least affected by the beheading. That was one of our guys. The speaking points on this absolutely it shows not this could not have been an oversight. Could not have an oversight. I believe you. Im not suggesting that it was an oversight. Im suggesting the amount of time they continue caredont care. The amount of people they didnt realize the blowback. They would have fixed it. I dont know which is worst. They didnt realize the blowback or they didnt send. Clueless either way. There is a small circle of people advising him. That may be more telling. I think thats hard for them to get strategy right on foreign policy. Its a tough year. Last week you look where oil was. You look at the european markets before it happened. Then you see it and of course this is completely blown out of the water. On the same day you had a larger attack in yemen by al qaeda that killed about 60. You had the largest massacre every boko haram with some 2,000 killed. No one talking about it. In fact the nigerian president showing up at the meeting when he should have been home. In some ways as big as a scandal. The radical islam is a greater threat in the region and its growing. The United States, francly lyly lyfrancly playing a role. When your business clients call you up last week and said what are the implications of this . You tell them what . First thing we tell them is that the politics of europe Going Forward this year are extremely problematic for economic outcomes. The economics are better than they were in the eurozone crisis. The politics back then were pretty darn good. They were constructive. You have a situation where no one is excited about european Economic Growth. The politics are massively distracted and pop lymph is growing. This massive demonstration, the Front National the right wing in france which pull it is over 30 didnt show. France is an incredibly divided population. We dont want to say that now because they experienced this 9 11type event in their country, but the fact is that the treatment of muslims some 8 percent of the population in france is abysmal. Youth unemployment is enormous. The sense of disaffection is grave. And the rise of antiimmigrant pop pop you lymph in france is so big. It plays so badly. We have to talk about oil. I want to talk about greece. Do they exit and what do you think about the idea . The idea that britain . Im very concerned about greece in the near term in the sense that the likelihood of a elected government and coalition. Yes, theyre going to be more moderate once they take power. Most people are. But they have got to we learned not all. Dont go too far. But so you to roll theyre going to roll back a lot of austerity that the greeks put in place when they had an election that wasnt democratically elected. That doesnt lead itself. But absolutely it weakens Investor Confidence in greece. Youll have a massive squeeze on the government. I would be more worried about the britains. I think the likelihood that the british referendum by 2017 leads to the brits voting to leave the european union. Its not that greece leaves and then the barn door opens and everybody runs out. The broader notion in greece spain and many of the countries both pop lymph and distractions is going to lead them to move away from consensus policies on europe. The idea of a europe its going to be hard for the brits to say we want to be part of this. The whole notion was to make sure that the countries werent warring again. We would prevent world war i and ii scenarios. I heard somebody say what theyre seeing about the continent with the moves you talked about with immigration and other concerns moving that reminds them of a pre1930s or early 1930s europe. Is that stretching things . Yes. Its stretching things quite a bit. I think the conclusion i would take is the idea of great power wars in europe which, you know, existed in a serious degree before are not what people are concerned about today. And nato which, of course the United States transatlantic relationship nato may be more relevant today than ten years ago. Its not very strong. The benefits from adopting the euro, you know open orders, you know, trading with partners. You dont need to change your currency. The benefits from that versus what weve seen in terms of Interest Rates not being properly for a lot of countries so they have totally out of control not being able to value the drag ma. All the negative things. At this point more positives than negative . And in the future is there any reason to think this experiment is going to have a better outcome . I guess i would say more positives. Really . I dont know. Where . Well, i mean, in the idea of the in having a consistent growth . Theyve had a nineyear gdp. In larger Common Market and in the ability to actually have you know, sort of migration movements. Well see. Your argument is and but, you know this is a point that, you know, its precisely the reality of your argument which im not going to people are going to vote on that. And leaving where was kerry . Remember when he ran for president people said he didnt get elected with know kerry was working with the Indian Government on he was prepping obamas trip. He has a lot going on. Remember it was the wind surfing and he looked french is a reason he lost the election. His french is pretty fluent. It is. He looked like dominique whatever that guys name is. Theyre separated at birth. He could have he would have been perfect he had gone. I think he could have made time. I was astonished he spent a year and a half prioritizing digital palestinian. I think thats almost a fireable offense given how many other things weve reported on in the world today. Ive been very i thought hillary did a more quite good job. Zuckerman will go crazy on anything related to the middle east. But anything economic related theyre kind of weird. Thank you. Now were so local. I can walk in on my way to breakfast. Coming up its electric. Yeah. Yeah. Thats why they put that. The Detroit Auto Show kicking off this week. And chef si is set to lay off the answer to the tesla. Well talk to the top executive. At 6 30 eastern former walmart ceo bill simon. His state on the state of the consumer and a lot of issues when squawk box returns live from new york. E financial noise financial noise financial noise financial noise the Detroit Auto Show kicking off this week. Thats where we find fillphil. What is the mood in motor cities . Theres a buzz here. Im joined by mark royce the Global Product Development chief for General Motors. We were talking before we went on. Its been awhile since weve seen this energy here at the auto show. I think so. You look at the connected piece of this as we come out of ces, which was a tremendous show for the industry but also for the electronics industry. And you come into detroit this week and you see some of the safety things that are happening with cars on accident prevention. You see the connectivity were doing with 4 glge. Were introducing a volt today which is exciting. I think the industry is at an incredible point of change and i think this show will demonstrate that. Well talk about the volt and the bolt in just a applicability. First, the truck behind you is up for a big award in about a half hour. The colorado. What is amazing this is now considered a mid sized truck. This has been a full sized truck used to be. Thats right. The generation before we did the new silverado was the 800 truck. Its about the same size as an 800. Were looking to reinvent it. It an indication americans want trucks. Theres an appetite more than ever before. I think so. I think you see it on the economy and the construction starts and some of the housing things that have gained a little bit of strength over the last year or two. And the you till iutility piece. This truck particularly the colorado and the lifestyle. Were going at the heart of california. And, you know, with the lifestyle with colorado and the canyon is something a little bit less size wise but a good sure audience for the truck. Very capable. Were bringing out the diesel this summer. Lets talk about the volt. Youll introduce the Second Generation volt. Is it going to make money . The first, as you know better than anybody, you lost money on every single one you made. Will you be able to make money break even . Well see. We havent announced the price yet. When we do, i think people will be surprised at the value piece and the amount of money and some of the efficiency we put into the battery. We own that chemistry and our partners lg with the cells themselves made great strides. Were . For the long haul. Is the appetite there for the extended range gas vehicle . I think so. Some of the headlines i read over the last few days building up to what we do today. We really invented the plugin piece of market here. And i think were not going to do something silly with that leadership position like we did with ev 1. Can you give us a tease on the bolt. For our audience will be introduced by mary barriea which 200 mile range . Yes, it is. You dont want to take the bosss thunderstorm. No im excited for her. All of us in the Technical Community cant wait to see the car. I think were going to surprise some people. Were in it for the long haul. We have maintained our own battery chemistry. These are permanent buying behavior changes around sustainability, around caring what we do for the next generation. I think youll see that in chevrolet here in spades. Exciting day here. Mark royce the head of Product Development worldwide for General Motors on a big day. The car and truck of the year announcement coming up in about a half hour. Back to you. All right. Thank you, phil. What did he say . We got buzz we got a lot of buzz in the city. People are excited. I wasnt sure what he was no. This is detroit. That was on 60 minutes last night about the. Rocky mountain high. Yeah. The cannabis. Those getting buzzed. Earning season kicking off this week. J. J. Is here to talk about it. I want to talk about this piece. Everybody that has been on joe, has said that its almost a goldy locks. Were doing better than the rest of the world. Oil prices are falling. All the great things. Interest rates will be able to stay low. Weve been asking these people that say 8 to 10 is in our bitter right. We got 8 to 10. The first two weeks were down this year. Were already kind of long in the markets since the lows in 2008 of what triple or so. And now as Fourth Quarter earnings get underway the journal said its going to be the softest Profit Growth in the u. S. In years already, finally, not finally already pinched by collapsing oil prices in a negative way and what its done to the dollar and how its going to be a head wind for exporters. I think, first of all, i wouldnt say we wont get the 8 . I will tell you this i think getting there is going to be the most volatile year weve had in a long time. I think its going to be where volatility is its already started. You know and its around 7 to be should around 17. Today base order what were seeing on the futures. Overall i think youre going to see more near historical level of a 20. Its possible to get the 8 to 10 . Its not going the slow griebd get there over time i think weve seen in the past. I think its going to be like a roller coaster getting there. Most people that talk 8 to 10 say multiples may stay where they are or even not maybe go up a little bit or not at all. It comes from Profit Growth. Profit growth will be the weak nest years. Why do we deserve the market to go up . I will say this. The unemployment report everybody is focussed on the stagnant wage growth even though the trend has been great in terms of jobs created. The best since 1999 and all that you talked about. If you believe that thats the biggest cost for businesses. Their cost would remain lower if profits even did the same it would say they would do the same. That being said. Profits will get squeezed. Is that a time when you get wage growth out of employers are they going to be forced 0 . The job market if the job market improves i think were going have to see wage growth at some point. Were creating these jobs. What i was encouraged on the employment report by this. You look at three of the top four areas where job was created. Health care, Business Services. Number two was construction. We have to see if we see that in the housing start numbers, et. Cetera. Were starting to create careers rather than just jobs the economy will improve. Because people will spend and, you know, weve had a jobs report, so to speak for awhile. I think its time we hit a careers report so to speak. I think friday was a step in that direction. Prominent hedge funds are cutting back on the expo sthour u. S. Stocks. Are they the smart money or the people that couldnt do as well as the a lot probably didnt do as well as the averages. The other part youll see more of this year joe, which leads to the volatility is jumping back and forth from bonds or fixed income in some sort to equities. I think youre seeing that start over the last two weeks. First two weeks of this year. You saw bonds rally the first week of the year in a crazy way. Even sometimes a stocks were going up. I think youll see people use it more. Theyre not using for eel. I think theyre going to start to temporary zblsh what does it mean when hedge funds are selling. If they sell it does mean they can influence the markets just by their actions. Number two, are they contrarian . Theyre trying to catch up again. Are they smarter . Contrary began began by their nature. Do we look at them as being to do the opposite of or follow them . I think that right now for people watching at home who are retail traders i dont think you can follow edge funds and everything they do. First of all, the cost basis will make things a little bit ridiculous. Rather i would say for retail trader, the mistake they make is they go all in. I would say go in a little bit when hedge funds start selling if the stocks you like use that as buying opportunities. If you still want to buy the stock. What i think people to do more of, joe, is set average price in this case want to be in and out of stocks at rather than im all in im all out. Overall thats one of the biggest mistakes they make. In the year volatility is going to be westbound in my opinion, crazy, use the big dips as times to get longer if you think were going up. All right. Thank you, joe. You said that for awhile. What is that return. You should be able to figure out the return out instannousin use. 7 . I know no but over time. Every seven years. He says 10. I thought it was 7. 12 and also historically. And even number. Seven is not too great. Seven is great if you can count on a guaranteed seven. Well maybe add in the dividend dividend. Maybe appreciation plus dividend. Thank you. Coming up mixed report on the consumer. Were going to the source an Industry Insider who knows Buyer Behavior better than most. Former walmart ceo bill simon will be our special guest when we come back. Flo hey, big guy. I heard you lost a close one today. Look, jamie, maybe we werent the lowest rate this time. But when you show people their progressive direct rate and our competitors rates you cant win them all. The important part is, you helped them save. Thanks, flo. Okay, lets go get you an ice cream cone, champ. With sprinkles . Sprinkles are for winners. I understand. 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 efficiency . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the wellequipped volvo xc60 today. Visit your local volvo showroom for details. Startupny. Its working for new york state. Already 55 companies are investing over 98 Million Dollars and creating over 2100 jobs. From long island to all across upstate new york, more businesses are coming to new york. They are paying no property taxes no corporate taxes no sales taxes. And with over 300 locations, and 3. 7 million square feet available, theres a place thats right for your business. See if startupny can work for you. Go to startup. Ny. Gov. Welcome back. Its time to get a picture read on retail. Joining us in studio in his first live interview since stepping down bill simon former president and ceo of walmart u. S. Were joined by Courtney Reagan with us from cnbc thank you for being here. Thank you for having me. We want to drill down on the consumer. Why did you leave walmart . It was the right time. Made the discussion on succession and i decided it was time to go at that point. We worked through a transition period and im off to the next big thing. Be you before leaving walmart you made dire comment about the state of the u. S. Consumer. This was in july. You thought things were looking iffy at that point. I think things are improving. Gas prices do a lot not only for customers wallets but for their psyche in general. Really big boost. Gas is an emotional purchase as you know. People drive all the way across town for two or three cents a gallon. I think Consumer Confidence is picking up. What happens if gas prices change. If oil prices come up which most people dont think is going to happen. Its been a barometer of Consumer Confidence and for the middle and low end of retail its a very important factor. Probably one of the most along with employment. We talked a little bit yesterday at the National Retail federation we did a panel. Not everyone feels better where they are. Gas prices are not. Is that what you believe. Thats right. I think, you know, you hit the nail on the head. The economy is starting to recover, finally, but its recovering unevenly. You saw it in the, you know, in the job announcement. Unemployment is coming down. Theres been no growth in wages, in fact flattening of wages. The middle and the bottom of the economy is not having the same pace of recovery as the top of the economy. Thats an important factor. What do you think happened . Well, i think that the mechanism for job growth in the middle is not there. One of the reasons we were focussed and still are on walmart and im personally passionate about rebuilding of u. S. Manufacturing base is theres got to be jobs in the middle of the economy for people to advance to. Theres a lot of discussion about the low end and minimum wage and states are taking action. Thats fine and good but until theres a job beyond a minimum wage job and it doesnt matter where you start so much where you go to. Theres not going to be the robust growth. Work force development is really key and the ability to lift the entire middle of the economy. Do you think look walmart has done an amazing job of bringingbring ing products to people at remarkable price. It helped people in many ways. But at the same time arguably you could suggest that those products which used to be manufactured here are manufactured elsewhere. Given you understand the input costs abroad do you think we can competitively have price have wage pricing that actually makes sense and products at those cheaper prices . Everything that walmart has done and, you know, since the initiative we started a couple of years ago. Bicycles televisions, towel, the categories are broad are made in the u. S. Theyre mot made more expensively. Wage is only one component of the cost of the input. So as you start taking the entire global dynamic that exists today, middle class is in command demand in the middle class is rising. So the prices of the cost of inputs in asia are rising and the demand for the products are there. Transportation costs are still high. Right now because of the energy costs and the boom in the u. S. The Energy Inputs that are quite low. There are categories that make sense to manufacture in the u. S. Today right now and you start to see it happen. You have to overcome the inertia of the capital invested in asia. It will take time to gain traction. Some categories can come back right away. Some never will. Large products heavy products, technologydriven products with not a lot of labor inputs are already here. What is your assessment of the Holiday Season . I think the holiday was interesting. It was really sort of fun to watch from the sideline not having to get out and pound the streets and look at sales reports every morning. There was, i think there was clearly winners and losers. Some did better than others. But the consumer general won because pricing was low. The deals were deep. When earnings start to come, youre going see a little bit of a mark. When you say we think we need to find new way to have job creation. Is that talking about training . Is that talking about education . What are you referring to . Its all of those things. You know, i think our Education System today does a reasonably good job preparing folks to go to college to go to college. But they dont a good job of preparing people to go to any vocation trade. All the shop classes and trade schools that used to exist dont exist anymore. There were any jobs for them and werent any reason for them. Its a comprehensive plan that needs to be put in place to sort of rebuild jobs and the capability to work in those jobs. As we get down and involved we got involved in the project most of the manufacturers that people who are looking in the u. S. Were not concerned about the cost of the input cost. They would talk to us about i dont know where im going to find the trained capable production manufacturing people in order to work in the plants once we open them. Thats been the biggest obstacle. Whose job is that . Corporate americas job . The government job . Who steps in to make sure the training is available . Thats a great 0 question. I think its everybodys job. Some folks have done a good job. South carolina governor who has been ahead on this initiative has said well find you the place and you tell me the capabilities you need as an employer. And my for our part South Carolina will help train them. And so other states have done it differently. And i think it can go either way. Fundamentally you have to build a system that doesnt do it ad hoc. It does systemically like we know where were going. We know what we need. We train the people. I think from an employers perspective when we were working on this at walmart you have to figure out how to build your work force. Its the contract of, you know, you come to Work Together and ill pay you isnt going to be good enough in the future. You have to say, all right, here is what i want need you to do. Here are the steps to develop, and here is where you go. If you can build steps and stages for your employees to teach them and train them in advance, i think we want corporations to win globally and to do that we need trade deals, less regulation we need, you know better tax structure. And, you know, training people for jobs is one thing. But getting an economy that can grow at 3 1 2 or 4 consistently is really the and were competing globally against the other companies right now and we need to be we need to embrace the private sector and not have it set up as an adversary all the time. Regulations are stifling a lot of growth. I mean, i would like to have everybody prepared but it would be nice if demand went up globally. We could sell our products around the globe. Were not going to be able to live as a Service Economy and not able to live as a manufacturer only selling things. Its got to be global. Weve had a few years of just trying to deal with what the situation is and make the best of it. We need a situation where, you know, were all working in concert for what our corporations need to achieve globally. We havent had that. Corporations are not the enemy. Right. Theyre the driver of your gdp. Right. Thats where the good paying middle when i say educate the people it would be nice to have more of those jobs available, wouldnt it . Absolutely. Thank you so much for coming in. I say this stuff now how far is your other building . Right down the street isnt it . They could be here in five minutes. They will be here in five minutes. I know. And well let them in to see you. Thank you. When we come back still to come this morning news makers galore including the record pace for deal making. Ron barra will join us and nissan showing off the companys newest vehicles at the Detroit Auto Show. Squawk box will be right back live from the capital of capitalism. Right across the street from the historic radio city music hall. Well be right back. Opportunities arent 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. E financial noise financial noise financial noise financial noise coming up, a groundbreaking ad campaign grabbing some headlines. A new campaign from tiffanys when squawk box returns after this short break. 3 ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Welcome back to squawk box. We are in the chairs talking about stories that we find interesting. This one caught my attention this morning. Tiffanys did you see this . No. They have a new ad Campaign Featuring their first gay couple. Theyve never done this before. Marriage is not just for us anymore. Its for a whole group of people. And a lot of companies apparently doing this. Gap and j crew now have campaigns like this. And theyre doing it broadly. Youll see this all over. So new campaign. Sign of the times. It is indeed. Im going to take just quickly about we dont have a lot of time but about the games we saw yesterday. I thought it was a catch. But maybe i dont know the rules well enough. The rule is if you ever lose control when you go to the ground to catch it then its out. To me he had it and the ground caused him to drop it and then if he dropped it then he got it anyway. And i dont have a strong opinion about the detroit about how dallas supposedly got the best of that decision. And i dont care. Ill tell you what im interested in. 4. 4 million per 30second spot in the super bowl for nbc. Which is just staggering. And the four teams that are left, im very happy with the type of super bowl. You could take any of those take either one take your pick of either side and its going to be one unbelievable game. Paul ryan was hazing Chris Christie a bit. Because he was in the stands. And Chris Christie was there in the box. You got Aaron Rodgers who is great. Thats going to be against russell. Thats going to be great. And brady versus andrew luck. You didnt get to do your story, but everyone should check out becky quicks twitter stream. When we come back this morning, the car and truck of the year unveiled. Plus deal maker gary parr. Stick around. Squawk box will be right back. Do y ou like to travel . Im all about free travel babe. Thats what i do. [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. Kicking off the week with mega pharma deals. A first on cnbc interview with the ceo of one of the mornings big starts. Get ready for a flood of earnings. What you need to know before the results start pouring in. And hollywood celebrates hollywood. Good evening, good evening. And welcome you bunch of despicable spoiled minimally talented brats. The winners, the losers and the best one liners from last nights golden globe awards. The second hour of squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Got his start in cincinnati. Welcome back to squawk box here on cnbc first in business worldwide. Im joe kernen. Futures indicated higher this morning. A couple of uncharacteristic weeks for this bull thats getting a little bit long in the tooth. Up about 90 this morning. Lets look at europe quickly. Well see if thats giving us a bit of a boost. And it is especially in germany up 161 points. Check out the oil board. A few reports that even some of the saudis saying they better get used to this. And that hundreddollar oil may be a figment of maybe it never really did happen. I dont know. Because i cant imagine it was ever worth that much. But there it is. 47. And most people that know say theres a glut right now. And with demand where it is you know, its just supply and demand. And if people need to sell it and they need to sell twice as many barrels now to cover their payments, how are they going to cut back . Right. There was a goldman report today not only slashing their numbers but also suggesting its going to take awhile. You have to see 40 oil for quite a while before you see any of the shale producers here in the United States cut back. That means that glut will continue. I like to make fun of goldman. Theyre very good at what they do and were good during the crisis. They slashed from 200 a barrel it went from 80 to 45 or something. What happened to their 200 super cycle. I think that was back in 2007. Isnt that convenient. You have one guy going one way and one the other. We have that here. Yeah. Im always right and no. Im kidding. Among the other stories we are watching this hour, big pharma deals to tell you about. Shire announcing its biggest acquisition buying pharmaceuticals for 5. 2 billion. Also roche taking a majority stake in Foundation Medicine. They are a leader in gene sequencing to help predict which drug would be most successful for a particular patient. The ceo of Foundation Medicine will join us at 7 30 a. M. Eastern. This is a first on cnbc interview. Also our colleagues in europe saying the ecb could be ready for the quantitative easing program. Obviously the market has been anticipating some of this. And president obama expected to highlight Cyber Security measures in next weeks state of the union address. A white house official said the Cyber Security efforts would include legislative proposals and executive action. So i dont see where theyre going to try to get the german bond down. What do they think would get things going . 3 . If they can get to 60 basis downs down to 30 basis points i think things would start. Im not borrowing at 60 basis points. Maybe you could put it in u. S. Thats why the u. S. Treasury has been under it too. I think the only thing with qe down there is to weaken euro below par. Down below par did you say . Yeah. 80, 85. Someones got high hopes for his european vacation. This is all about vacation plan pg. All about me. Actually speaking of europe and the story from last week lets go to paris now. Paris, france ramping up security measures. Hadley gamble joins us with another update. Good day again, hadley. Hey, joe. France today remaining on a heightened state of alert. We just heard from the government that 10,000 security personnel will be deployed to sensitive areas around france. They also are telling us theyll be deployed to jewish schools. Yesterday we saw 3. 7 Million People marching around france 50 Global Leaders linked in arm in arm. It was so dense here you could barely move. It took hours to get in and out of this area. Eric holder announcing the white house will hold a Security Summit on february 18th. He was here meeting with other interior ministers, judicial officials as well. They were talking about what europe needs to do to protect itself. They were saying this is a global Terror Threat that requires a global solution. Some of the things on the table, they said theyre going to talk to internet companies. They want their help monitoring Terror Threats on the internet. How theyre going to get the guns. Clearly there are some holes in their security blanket. And we could expect to hear a bit more about this later in the week as well. John kerry who did not attend the rally yesterday does say he is going to be here on friday for more. Back to you guys. All right. Hadley thank you again for that report. We appreciate it. 3. 5 trillion worth of deals were done around the world last year making it the biggest year since 2007. It was the biggest year ever 1. 6 trillion in m a. Will 2015 be another record breaker . Lets ask our deal makers at the table. Our guest host this morning gary kominski. And gary parr were calling you a legend. Already . Im too young for that. We have gary and gary. Smart and smarter. I dont know who wants to take the ill give it to gary. To the extent you believe that m a is a bramarometer of confidence in the market what inning are we in . Id say in the u. S. Call it sixth or seventh inning. Theres still a fair amount of room to go it appears. Weve really only had a little less than two years of what shows as real confidence. And the economy is good, liquid liquidity is good. Other parts of the world, its hard to say. And how much is going to be internationally . Last year obviously a big increase in the u. S. The real risk to look for is in europe. There are two risks there. One is russia. The big valuation does have implications for trade but also the banking system. Thats a risk. The greek elections are a risk. So that one is harder to tell. You think theres been consolidation in the oil . Obviously i would say speaking to many oi my colleagues last week are who on the front line of this, the expectations are this year will surpass the record numbers you talked about going back to 2007. Thats because of all o the various things. Interest rates, confidence, better economy here. And the fact that stocks go up when they announce deals. The energy space was not. If you look back six months ago when you looked at the pipeline. The idea of consolidation and energy was not based on lower commodity prices. Now youre going to have deals. You run a big restructuring shop. Thats part of your business. Do you expect that to get heated up . In time. Usually in a major dislocation, whatever it might be so price of oil. It takes time for people to adjust. And or for restructuring to kick in. Probably going to be a relatively quiet period for a time as people adjust. And then look for a lot to happen. Because a lot needs to happen. Youve behind behind some of the big financial banking deals over the past several years. Goldman sachs came out with a report a week ago saying that jpmorgan potentially should think about breaking itself up. We had lloyd flavrngblankfein saying many may rethink about what their business is going to look like. You i think actually came on the show and might have said something very similar six months, a year ago. Over a year ago. But it hasnt happened yet. Why . And actually sorry to sound like im bragging but i said it wont happen for at least two years. The reason is the regulators. And Capital Markets. The regulators on the one hand want institutions to be smaller. Thats clear. But splitting them is not so easy. Because you have to have two selfsufficient or three, however many parts you might go they have to be Free Standing and selfsufficient. And the Capital Market and liquidity for the major investment banks notably is still developing. So that takes time. But theres clearly for the very large institutions theres a large diseconomy of scale. And thats capital. They have to carry so much capital. So either they will manage it and figure out how to have their what does it look like though . Walk us through the breakup of one of these big institutions. Its not obvious to me. One is rearranging of the portfolio. One maybe going more wholesale, more retail. Another is to become geographically split. There are some number of Business Services that could be taken out of the banks and trade very well. So, for example, one of the prop situations as an activist might come in. If it came into the big banks, they could trade at very high multiples. Much higher multiples than the bank does. And if those were split up that could create shareholder value. Also the activists know if you cannot show the shareholders that there are and i dont want to use the word synergy. There are other ways to express is. Ka we were talking be fr inging before we came on the air today, then thats where the opportunity lies. Id say every day within Morgan Stanley without trying to promote what we were able to accomplish. If you cant show the shareholders that Wealth Management and investment banks are working together then the multiple disparity between the types of businesses they are are going to create the environment where people want to break them up. You get the higher melt erer multiple when you prove they create the value. If you look, for example, the analysis of the breakup, its not they created more income in each division. Its that each division is going to get rerated. Because the pieces trade at different values. Asset management traditionally trades at one greater than the s p. If the combination together creates more value, generates more cash thats fine. If it doesnt, its just a numbers game. Whats interesting, though as they pick one with jpmorgan. Not for me to talk about any one bank you worked on a handful of jpmorgan deals. Thats on the one hand will is have a better chance than most to figure out how things will work put. On the other hand if its not and too expensive, they will do something on their own. You think this is tailor based on Management Teams too . I think thats an important part. These institutions are very large, very complex, and very hard to manage. It takes a special Management Team to figure out all of those. Thats a tough sell for an investor. If im looking to be a longterm investigator, im looking for change over time. Even for m a, time horizons. The activists have come in. They are so good at identifying some opportunities. But the real Pressure Point is time horizon. They may think that something makes a lot of sense to break up in the near term. Thats not necessarily in the best interest of the company or the other constituents. I know joe has talked a lot about this. Somebody comes in break this do that, and make it go up. Thats not necessarily in the best interest even in two or four years. You cant as an activist say hey, i had the idea and the shareholders went along with me so i must be right. Shareholders can be greedy too, cant they . A lot is one of those unfortunate issues. Institutional shareholders many of them are now also measured on a quarterly basis and are acting on a quarterly basis. And i try never to conflict with the profit center. If theres a legitimate reason youre doing this im not saying its a bad thing to maximize profits. But if its purely for, you know, the gordon gecko because its breakable, everybody losing their jobs but i make a lot of money, maybe thats not the best thing for a company or for society. This is one of the most substantive and reasonable discussions you can have. Ackman just blew me off completely. He looked at me like i had six heads. But lets not lose focus of what gary said. Which is the regulators, when it comes to Financial Services the regulators want this change. A crazy kind of way, the activists are actually doing some of the work for the regulators here if it happens. Because they want these institutions to be smaller in their own mind more manageable and ishave much more. Where does Elizabeth Warren factor into all of this . I dont know her well to be able to say. Id say certainly shes vocal, she has a following. And she is carrying one side of the discussion. Her primary interest seems to be about consumers. A lot of it goes to whats right for the consumer. The too big is something i think she thinks about but shes very focused on the consumers. Much of the legislation is what to do for the individual customer. Real quick because weve got to go antonio weiss, your close. Going after him in a very big way. Yes. You guys on his way out if he takes this job, he get paid effectively to leave or effectively gets to keep the money that he would have gotten if he had stayed. Right. Do you think that policy makes sense . And do you understand why people or the public or there are people in the public who have an issue with that . I dont, by the way, but im curious where you stand. First of all, i think the most important thing is antonia is a very qualified person to be in washington. Well see how it plays out. Very talented. Got a lot of crazy ideas, doesnt he . Actually i dont agree with all of his politics. I dont either. Hes a huge redistributionist. I cant believe theyre not welcoming him with open arms. You should be welcoming him, andrew. Ive been defending him the whole time. The reason im asking the question is because there are people out there when have you defended him . Have you written columns . I have. Where does that appear . In the New York Times on tuesday on the front of business day. Thank you. Listed as an investment banker. But hes got all kinds of great qualifications. And im not willing to say dont do it either based on ideologically disagreeing with a lot of things. Quickly talking about the New York Times. I looked through all these. Does it mention just in passing that nobody showed up from does it mention it in passing . I looked everywhere. I dont know whether it does. I dido not know. The journal just says neither president obama or Vice President obama made an appearance. And then the New York Post that could have gone off big time calls him a no show. I dont expect them to write an editorial because they never would. But isnt that like an editorial . Leaving it out of the front page . At the top of the show i went off on it a bit did you like it . No. But knowing this paper, shouldnt it be wouldnt you mention it somewhere just to be the paper of record . Wouldnt it or is it just one big editorial page . I cant even speak to this. I want to thank the legend for coming in. Youre just across the street now so you better come weve got to see you very often. And mr. Kaminsky is going to be here im not afraid of ponch if he comes up behind me. Pinch, punch, whatever. Thanks gary. Good to see you. And you, gary well talk more. Our platinum portfolio series continues with kevin landis when we return. So whats going on today . News alert message email calendar update most of us admit to being overwhelmed by information at work. Thats why ibm created verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work. And helps you prioritize the people and projects you need to focus on. Theres a new way to work and its made with ibm. Opportunities arent 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. It is a new year and we are bringing back the squawk platinum portfolio. Now go online cnbc. Com where you can get realtime work on the stock picks. Kevin landis is the chief Investment Officer of first handicapal management. He joins us right now. New year time to assess your portfolio. Are you shaping up your picks a little bit . Well were not really short traders. Normally we stick with things if theyre winning. So were sticking with some of the themeings that worked well for us. Including apple and sticking out the neck is bit is netflix. Lets start with apple. As you said this is something thats been working for you over the last year. Where do you think youre headed to in 2015 with this . To me the striking thing about apple is its conservatively valued. It has a market cap. You could justify on existing products. We dont know how big apple pay is going to be. But thats all upside. Its a reasonably priced stock with a little call option on these new products. When you look at technology you speak about a stock like apple. Ive always been interested to ask you you reflect back to history. Apple is owned by almost every large cap growth fund. Yep. So when you think about the value increasing, its not going to be the incremental buyer per se. Its going to be what . The earnings driving it higher . Thats right. Its a little bit late for people to stampede into apple. You have to have business fundamentals and the stock just naturally going up. No youre not going to double your money. Would it make sense for anyone to specifically rejigger a portfolio based on a new year . Unless it was a new tax law specifically affecting the company they own what difference you get judged on it shouldnt happen. Thats theyre doing that for themselves so they can market it better. Did you blow any positions out at the end of the year that you didnt want to say at the other end . Absolutely none ill admit to, yes. Theres two ends of the spectrum. Its good periodically to put a fresh set of eyes on it. If its a new years resolution to look at your portfolio, thats fine. You shouldnt let it get stale. Hedge Fund Managers they reset every month. You can say thats completely false as far as you know is another way that you can do that. You hear that . That was good. Anything you sold that you didnt want to have in the portfolio for appearances at the end of the year that youre now going to revisit going back to what joe just asked you about . No. I think you can look through our filings and we hold positions just seemingly forever. Weve been in netflix since 2003. Tell me why you think netflix, you said thats really your long shot at this point. Thats the one you think this is going to be the year of the netflix. We saw them showing up yesterday with the Golden Globes. I dont know who youre wearing today, but you look nice. The thing about netflix as i look back over the history of this all the trades i regret fiddling with that position its all the sale positions that i regret. But look finally somebody else whos profitable and whos growing amidst all this cable tv disruption. Netflix is pretty much the only game in town. Its a voltive stock, ill buy it now. I probably just put the kiss of death on it. Itll be a bad trade for this year. But anyway its probably a good investment longterm. And youre on the right side of if you can stand the chaos. Thank you so much. By the way, another one of his picks is lamb research. If you want more analysis on this go to cnbc. Com pro. Also coming up at 8 30 eastern were going to hear from david katz. Hes another one in our squawk platinum portfolio. When we come back weve got the ceo of Foundation Medicine joining us on cnbc. Hell tell us what the deal will mean for cancer treatments when squawk box returns in just a moment. Financial noise financial noise financial noise boy once upon a time, there was a nice house that lived with a family. One day, it started to rain. The house tried to keep out all the water, but water got inside and ruined everybodys everythings. The house thought she let the family down. They just didnt think it could happen. They told the house they would take better care of her. Always. Announcer protect what matters. Get flood insurance. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Welcome back to squawk box this morning. Right now were going to go to detroit. The car and truck of the year was just unveiled and phil lebeaus got it. Phil . Andrew lets start with the truck of the year. The 2015 north american truck of the year is the ford f150. Yes, the aluminum f150. The car of the year, the Volkswagen Golf. Guys, back to you. All right. That was speedy. Certainly was, phil. Brevity is everything. Thank you. The biggest Health Care Conference of the year hasnt even started, theres already big news in the sector. Roche is buying a majority stake in Foundation Medicine. Lets get to meg tirrell who is at the jpmorgan conference and is joining us with a special guest. Hey, meg. Hey, joe. Were going to bring in the ceo of Foundation Medicine. Thank you for joining us. Thanks for having me. I think its a great day for Foundation Medicine and roche and an important day for patients that are battling cancer. We wish you were with us in San Francisco but we know youre with your employees today. Tell us about the billiondollar deal roche is doing. You guys paying more than double your valuation on friday. What is roche getting with Foundation Medicine that would inspire it to pay more than double your price. What were really focused on is really the transformational nature. It is a Molecular Information Company here. And what we do is work with onkolgss around the state and also those who practice in the communities around the United States to help them understand each patients cancer at the level of its blueprint. Roche is clearly a leader on technology. They understand the therapeutic side as well as diagnostic. That way we can accelerate that move in oncology. Its also doing the commercial side of this deal. Selling outside of the United States. Do you see the deal more as a reflection in these genomic diagnosics for cancer. This is a scope of this deal is broad. More importantly there are the other two that relate to the commercial collaboration. Since you specifically asked about the commercial collaboration. They are supporting us in the United States as we utilize our commercial team. They are supporting us with medical information to educate the Oncology Community about this approach. Then on the global side they do have rights to our products to foundation. And they will help us develop those markets and commercialize those products for us on the international front. Its really a way for us to accelerate our International Growth in a way we wouldnt be able to do on our own in a timely fashion. Now, ive got to ask. The last time roche took a big majority stake in a smaller company, they operated independently for awhile. And you guys are going to operate independently as well spp there an opportunity here for roche to buy the rest of the company at some point down the road . Had. Right now were really focused on executing on the vision we both share. It was important in our discussions from the beginning that roche recognized and i think the Broader Community recognizes theres an entrepreneurial spirit at Foundation Medicine. In addition were not a diagnostic company. We defined a new space called molecular information. Certainly for the foreseeable future, both companies believe that its important for Foundation Medicine to operate independently. Now, one of the biggest questions about valuations in the Health Care Industry right now is about drug pricing and reimbursement. Youre not making drugs. But tell us about the reimbursement situation for your platforms. Especially with medicare. How is that going . Weve been pleased so far with the way the payers have addressed this new approach in oncology. But this is a process. Reimbursement in the United States just as it is on a global scale is in fact a process. But importantly its a process thats driven by clinical data. Thats why ou company has invested in and developed and why were producing results really from many clinical studies and trials. If we look back at 2014, in fact our data was published in more than 38 manuscripts in leading journal scientific and medical journals around the world. In addition we presented our data in more than 95 podium presentations at some of the major conferences. So it is data driven. In working with roche we believe we can accelerate what were generating not only for clinical adoption but to gain support of additional payers as well. But we think the payers that understand where the world of oncology is going, we certainly believe they will continue to get their arms around this approach Going Forward. Dr. Mike pelini big day for Foundation Medicine. Thank you for joining us. Thank you. I appreciate it. And meg, thank you. When we come back this morning, the stocks you should be watching ahead of the opening bell. Plus two new ad campaigns generating buzz over the weekend. Dow futures up 80 points above fair value. S p up by 8. 5 and nasdaq up close to 18. Stick around. Squawk box will be right back. What makes it an suv is what you can get into it. [container door closing] what makes it an nx is what you can get out of it. Introducing the firstever lexus nx turbo and hybrid. Once you go beyond utility theres no going back. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. Welcome back to squawk box this morning. Among the stories front and center right now, gasoline prices dropping another 27 cents in the last three weeks to the lowest level since april of 2009. A gallon of regular unleaded standing at 2. 20. Also this morning twitter will reportedly start to sell ads within streams of tweets that appear on nontwitter apps and websites. Wall street journal saying that twitter will share revenue with host publishers. Sometimes you see a stream on cnbc or espn now you will see ads next to those as well. Also president obama plans to focus on Cyber Security issues this week. Hes going to be calling on congress to pass laws requiring companies to inform consumers within 30 days if their data has been hacked. Stocks to watch this morning. Lululemon, the company cites improving trends and strong holiday results. Tiffany reporting its holiday same store sales were flat and that was short of the 4. 4 increase analysts had been expecting. Also cutting the Earnings Guidance to below consensus and that is going to be an interesting one to watch. And a new campaign generating buzz. Mcdonalds getting attention on twitter from a new ad that debuted yesterday during the nfl playoff game between dallas and green bay. I saw this ad which features a series of still imagings of custom messages on mcdonalds boards like congratulations to people getting married or a happy anniversary or whatever. And i remember at the end of the ad it said check out tumblr to get the individual stories. Theyve also got some other ads showing opposite constituencies getting along. Like i think road runner and coyote and things like that playing off the loving it theme. Theyre also starting to talk about their quarter pounder showing four ingredients. I mean theyre trying a lot its a good campaign. Thats smart. It is a good campaign. My daughter mentioned, wow, mcdonalds has a new advertising campaign. Its good. She goes wow, theyre ramping it up. I go, honey, mcdonalds has been advertising for a few years. I remember all of the ads over the years. Icy coke thick shake sundays, and apple pies. I remember a lot of them. And before loving it, it was something totally different. I like this new one though. Coming up the big winners and losers from last nights Golden Globes. Amazons big win over the networks. Kevin spaceys first win and the best lines from the hosts tina fey and amy poehler. Highlights after the break. Tonight we celebrate all the Great Television shows that we know and love as well as all the movies that north korea was okay with. E one for you. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph like needing to go frequently. 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 allergic reactions like rash, hives swelling of the lips tongue or throat or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Out of 42 vehicles. Based on 6 different criteria. Why did a panel of 11 automotive experts. Name the Volkswagen Golf motor trends 2015 car of the year . Well give you four good reasons the allnew Volkswagen Golf starting at 17,995. Theres an Award Winning golf for everyone. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees from the bank where no branches equals great rates. Into the woods cinderella runs from her prince Sleeping Beauty just thought she was getting coffee with bill cosby. You know, actually it was a night of glitz and glamour of what some are calling the most competitive awards race in years. Last night did not appoint with George Clooney taking home the Lifetime Achievement. Joining us now with more on last nights big winners, we can call her a legend actually. Bonnie fuller is here. She is the hollywood life. Com editor in chief. Good morning. Morning. Biggest winner or Biggest Surprise for you last night . Biggest winner was George Clooney. It was his night. He got the lifetime award for Lifetime Achievement. But he was with his wife for the first time on a red carpet. Boy, did she look gorgeous. She did. She had the gloves and the whole getup. She was the most hollywood glam woman there with the long white gloves. Now, of course i think theres been some conversation here about why the Lifetime Achievement. Facts of life. That was a great show. Because hes so handsome. Hes been achieving handsome for years and years. I think he said it best. He called out his wife in his acceptance speech. He said he waited 53 years. He said its hard to find love and he finally did it. Whyd he marry his first wife . I guess it was a bit of a diss on his first wife wasnt it . That was clear i had his Lifetime Achievement in his own words. Biggest loser . Had to be kim jongun. I mean he took the majority of the disses in the place. And tina and amy went for him. They had margaret cho, she had a movie magazine and his face was on the cover. Then they photobombed a picture with him. So he got the biggest disses. From a business perspective, which network was the winner if you will . And does it translate . Winning an award changing subscriptions . Surprise winner in that area. The cw. They got their first Golden Globes award for. You know nobody expected that show to win big. And what was so funny is that the star of the show who accepted the award, she actually came down from like the second tier balcony because they were not expecting her to be having an easy walkup. Plays the maid she had a long walkup there too. I thought it was nice she was so affected by getting the golden globe. Yes. And she spoke about the plotline. I saw a little bit. You saw more than a little bit. I think you stayed up. I watched the whole show. Youre just an nbc i watched it because im trying to give support i watched the whole show. The very first line i thought was good. A bunch of despicable minimally talented spoiled brats. And they all laughed like thats ridiculous. But they were like i forgot which show it was, but somebody cited amazon for putting the show on. And i think a lot of people had to be watching last night that didnt even know that you can get some Live Streaming on amazon right . Thats right. What show was that . I think it was transparent. Yes. The fkt they got that national shoutout would be a winner as well, youd think. Absolutely. I think that i dont know if youre happy, but nbc you should be happy. Well that was our question earlier when i was going to say careful when you say which network fared the best. Thats right. But the awards shows have been drawing bigger and bigger audiences. Golden globes was a show that was an insider show for the hollywood world. Now youve got millions of people tuning in. And its all about the glam and the red carpet. Those two are pretty good too. Never awkward. Remember ricky gervais, that got it wasnt awkward, it was like you know. And they thought that was going to be the way to do it. But it only happened twice, right . But these two seem like theyre made for this. Tina and amy, everybodys upset this was their last appearance. They got some funny digs in too. They talked about how big eyes that one of the portraits was in the audience. Then they zoomed in on emma stone. Yeah, shes got big eyes. That was not expected. We showed a clip of the cosby joke. How much of a loser was he in all this . He was a loser. They got their zinger in at him right away and talked about how Sleeping Beauty thought she was just having coffee with bill cosby. And it went on for a long time. Yeah. He had a bad weekend. He got heckled at his canadian shows too. Clinton never showed up. What was the idea he was supposedly out there hanging out and he was at some of the preparties and somebody thought he might do something. He didnt do anything. But prince came apparently. Yes. A big, big surprise. Put him up there with clinton. Its true. Royalty, you know. Thank you for coming in this morning. Thank you. When we come back this morning, we are kicking off earnings season. Dom chu will tell us what to expect. Squawk box will be right back. Welcome back to squawk box this morning. Earnings season kicking off this week. Our Resident Market guru dominic chu joins us now. Heres what weve got, guys. When we talk about earnings season a lot of individual companies have huge moves in and around the Earnings Reports. The folks over at the Investment Group took a look at a slew of stocks. They looked for only the ones that have at least a 5 share price. And that had three years worth of earnings data. This is what they came up with. 50 stocks among the most volatile earnings movers when it comes to the oneday move in their Earnings Reports. You look at nutrisystem. Its that time of year right now, begin oging of the year we talk about diets. Shares go up 11 or down 11 after the report. Netflix shares also one of the most volatile as well. Plus or minus 14 . Thats a huge swing for netflix shares when that Earnings Report comes out. Ones to watch out for. And the single biggest swinging stock when it comes to earnings volatility is groupon. It swings by an average of up or down 18 when it reports its earnings numbers. So a whole host of companies have a lot of volatility around their Earnings Reports. These are some of the big ones. Throughout the course of the day, were going to look at a lot of other companies in their list as well as the least volatile ones the ones that dont have any kind of a moment in and around their Earnings Reports. Back over to you. All right. You got like a month of this dom. If you ever really excel 18hour days its during earnings season. Four times a year it happens. Funny the way is it four times a year . Yeah. Quarterly reports. Thats right. The minute youre done with these, its the Retailers Next month too. Yes, it is. Then all the guys that arent on a fiscal year after that. Then start it all over again. Thank you. You got it. Im blanking right now. When we return we are going to have our squawk news maker of the year. You are our guest host but you could make news. Could always make news. But ron baron is going to be another legend. We got a lot of old people on the show today. With our new set in new york city. Plus carlos ghosn checks in from the auto show. Stay tuned. Ameriprise asked people a simpion in retirement, will you have enough mone e life oyour terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Opportunities arent 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. Investing for the long haul. Billionaire investors ron baron tells us where hes putting money to work and why he thinks this market will double over the next ten years. Automakers hit the motor city. We get Carlos Ghosns opinion on everything to prices to the pump. And well preview the firstever College Football playoff championships. The ducks get ready to battle the bucks. Youre watching the final hour of squawk box where everybody is a winner. Live from the most powerful city in the world, new york, this is squawk box. And that was al michaels. This is cnbc first in business worldwide. Im becky quick along with joe kernen and andrew ross sorkin. We are watching oil prices this morning. Wti and brent crude off to a rough start. After turning in their seventh straight weekly loss. Both of them trading at their lowest estest levels since april of 2009. 46. 90. Thats a decline of another 3 this morning. Brent at this point down another 3 at this point. Its trading at 48. 53. On the other hand that is sending down gas prices. The latest lundberg survey dropping to 2. 20 a gallon. Its definitely bottoming in here. 45, 46. Ive said all along. Said all along bottoming. There were calls last week for oil in the teens. Weve had more i mean its a joke. I want to bring them back. Cant we get our producers to go back and get everybody saying its going to bottom at 80 70 60 50. No this time its bottoming. What this has shown, what this has proven is that when the regulators wanted the investment banks out of the business of taking position trading, this is the result of what youre seeing. The fact that you dont have i guess you can call them speculators or other are you saying thats bad . Thats great. Im not saying its good bad, or anything. The fact you can havehis type of volatility and people want to maybe its trading where it deserves to trade now. Maybe so. So youre sad the guys that were hyping it with the financials and the cartel that hates us theyre both out and this is awful. Im not saying its good or bad. Youre agnostic . What are you saying . Im saying those that are surprised at the velocity i think theres more to it than that. Absolutely. But thats part of whats happened in the past six weeks. You have certain that would argue for natural equilibrium equilibrium. All we know now this is a result of how something could happen. Youd have to be a fracking idiot not to understand that. Youd have to not understand fracking is all i was saying. Yeah we get it. Frac on. Frac off. Automakers gathering for the Detroit Auto Show. Phil lebeau just catching up with mary barra. Well you know as we develop the volt several years ago we were looking at what can we do. Weve listened to our customers. So it is a natural flow from the work weve done the expertise we have and listening to our customers of what they want. And an affordable solution as well. So were very comfortable and i think its been a natural evolution. The is is an area we place high priority on. Well continue to do so. And well put all of the innovative thinking into it. Can you make 30,000 stick . You know its a concept vehicle, but if its going to fit the equation that customers are looking for, thats what were going to do. How much of the 200 mile range do you look in the future and say we can expend it further whereas for right now thats as comfortable as your engineers are. Again, were continually working. We have great battery partners. Were going to continue to look and adds advance the technology. I think youll see both the volt and the concept vehicle, really really added a lot of technical expertise. Well continue to do that. Phil will be back in the next half hour. Hell be joining us with nissans boss carlos ghosn. Among the top stories at this hour that were following, the ecb reportedly planning to announce a qe Program Based on the contributions made from National Central banks. This according to to our european colleagues that the ecb meets next week. Also some of the socalled smart money cautious on stocks. Use of leverage dropped last week to the lowest level in more than two years signaling falling conviction that market wills push higher. And divers have now found both black boxes from the airasia flight that crash twod weeks ago. This should help investigators find what caused that jet to plunge into the java sea. Millions of french citizens and heads of state taking part in a historic march under high security to pay tribute to the victims of the attacks last week that left 17 people dead. Hadleigh gamble joins us with more. Hello again, hadley. Hey, joe. Thats right. 3. 7 Million People marching across france yesterday and thats despite a heightened state of alert here in the country. You had 10,000 security personnel dispatched today to secure sensitive areas around the country. Also said theyre going to product jewish schools. We also have to remember this is a heightened state of alert. I want to update you on some news that we had overnight. The Turkish Foreign minister coming out saying the fourth suspect in the murders last week apparently was not even in the country when those murders took place. Apparently on january 2nd she flew to turkey and we know she crossed over the border into syria on thursday of last week. Thats all we have at the moment. Well update you shortly. Now i see what youre saying. So she yeah. I thought you meant she left on thursday. She actually went into syria on thursday and had left france on january 2nd long before anything happened. Which shows you who spotted her supposedly at the original incident . When you have incidents like that, the original reports can be very wrong and very misleading. No matter what the market sentiment, our squawk news maker of the hour never flinches. Ron baron, the chairman of baron capital joins us right now on set on opportunities. Weve never had you on set with us before. No. A pretty place this is. You have never flinched. I get upset, but i never flinch. You have never flirgenched. See i flinch at the drop of a hat. You never second guessed it. When becky was going like that. Yeah. Ron, thank you so much for joining us and for being here this morning. Before you arrived we started talking about some of the things youve told us in the past. One of those is you expect that the stock market is going to double over ten years. This is something you say has been a historic trip. When i started baron capital in 1982 it doubles every ten years. But the stock market basically doubles every ten years. You go back to 1960 and the dow was then 600. Now 17,500. And the economy was then 520 on the gdp. We did the math on that earlier today. We realize that means gains of about 7 a year. 6. 8 for the economy. 6. 2 for the stock market. But when you add in dividends, it gets you there. So what we were running through and looking at numbers on this if you look at the last several years. 2013, 30 returns. 2012, 13. 4 returns. 2011 was flat. But 2010 we saw 12. 8 . I wonder if that means this is time for some givebacks if were only going to be doubling over ten years. Well the economy doubles every ten years. And the stock market and economy are linked. And giveback sometimes in the market is better sometimes is worse. You never know. You never can predict in the shortterm. The value of your money, the purchasing power of your dollars falls in half every 20 years. The stock market basically doubles every ten. Its a way to hedge. I decided that could be seen as going out on a limb. From 1969 to 1980 the stock market went nowhere. So youre saying that its going up and youre saying its going to double. So that is going out on a limb to say something. But youre also saying its not going to be 1990 to 2000 where it went up. 1999 if you were unfortunately enough to buy stock in 1999 the stock was 33. Never been higher. So if you bought at the exact top of the stock market in 99 and you bottomed in the financial crisis in 2008 top to bottom you would have lost 3. 5 a year if you invested in the stock market. If you invested with us you would have made 2. 5 a year. 60 points difference. But if you had invested that period of time that was the toughest period of time in the history of the United States between 2000 and 2008 because the market was too high and then it came too low. The notion of all you had to do was buy stocks and hold them. I dont think thats back to believing it yet in terms of the national consciousness. Weve got a lost generation of people with the stock market. I can tell you. Youre exactly right. When i started in the 1970s as an analyst, the only guys who were still left were cooper and gabelli. Sort of like that again. Sort of like that again. My grandfather came here as an immigrant, became a factory worker. A factory foreman. And then in the 1950s or 60s i asked him about investing in stocks. He said he remembered how in the depression people were selling on the corners. He never invested his whole life. There are people like that. I think it was investing top to bottom down 3 bb nsting the baron funds up 2 over the same period. 2. 5 . 2. 5 . But whos counting. Weve known each other for close to 30 years and ron would have said the same thing about longterm investing in that period. If a viewer is watching and buying into this why active management opposed to just buy an indexed fund . Youve obviously been able to prove how to create extra value. Whats the answer to why active management, not an index fund . Well if you invest in index fund, you invest in everything. The good and the bad. And if you invest with an active manager and people have a different perspective and they can find businesses that are going to grow very rapidly if they figure out that steve wynn is this great investor. Elon musk is a great manager. Ralph lauren, chuck schwab. If you find out you can invest in these people and they grow businesses very rapidly, you do better than investing in ron, were you surprised this past year the performance of hedge funds, for example, by some legendary investors who clearly did not outperform the market. So you look at that and over time i think where you were going with this even the legends with the exception of a very small handful have not outperformed. If you go back to the idea before about people being afraid, hedge funds are people also. And theyre afraid. And people who invest with them theyre afraid. And so why do you think they have hedges . Because theyre afraid. And so from the bottom of the market to now the market is up 150, 160 and the average hedge fund is up 40 . Because people are afraid. The key is and you and i have spoken about closet indexes for a listening time on air. Youve got to find a manager who can create extra value. You bring up steve wynn. I remember when golden went public and we went together that go around. And you said steve wynn is going create something in vegas. When you think about now these longterm ideas which youre famous for, whats the thing that well sit here saying wow we were early and we got it right . Well we have in our firm we manage 26. 8 billion. And we have 450 investments. And the top ten represent 18 of our assets because theyve been very successful investments. We have 38 investments that are over 200 million. There are only two of those that are over 200 million investing. Tesla is one. Manchester united is another. And both of those have been made in the past year year and a half, two years. And those are the only two that are even. The others are all big increases. I think for example, Manchester United is going to be this fantastic business. Ill make two or three times our money in four or five years. I think tesla in ten years, well make ten times our money. So i think we have 2 billion in tesla. I mean viewers know tesla. They know the story. What is the Manchester United story . What is misunderstood . Thats your specialty understanding things that the rest of the street doesnt get. Its a television program. Its the most popular in the world. And the idea of being able to exploit media, thats just coming. So when we invested in the company, they were doing 150 million in cash flow with 600 million in revenues. I think theyre going to do 400 million or 500 in cash flow in the next five years. And exploiting their fans around the world. The yankees have 15 million fans on facebook. The l. A. Dodgers which sold for 2. 2 billion had local sports teams, 6 or 7 million fans. So theres opportunities to exploit all these people that are interested in this. And in addition to that sports is live. You can time shift everything else. You cant time shift sports. Ron, let me ask you. Some of the changes in the market including oil, that creates differing opportunities too. I know you still love tesla, but does that look less viable when youre talking about 45 oil . No. Tez tesla is the best car and governments dont want people to use carbon fuels. They will do everything they can even though joe doesnt think it matters. Carbon dioxide. Even bill gates has figured out how to get Carbon Dioxide out of the atmosphere what hes trying to do 0. 4 to the trace levels out there. Hes using solar to get co2 and turning it to oil on the ground. Well, we can go back from. 04 to. 035. I dont want to argue about that. Did you know its trace levels . Its one extra co2 molecule per 10,000 parts of air. So look. I hope youre right. I know you do. I ignore all the bad weather that doesnt fit in with the dogma. From an investing perspective. From an investing perspective, it right now right now it costs about 75 cents, the equivalent gallon in electricity. I think that 75 cents is going down and gas is now 2. When i was out there in i guess september, they said you have 250 million invested in our company, do you want a car . No, i dont. How could you not have a car . So it was delivered to us in florida. And one of the most interesting things about it is you pass gas stations and you realize youre never going in again unless you have to go to the bathroom. Thats it. If you go in its only 2 a gallon. Its not like its 4 a gallon. Theres going to be a few hydrocarbons used over the next ten years. The price of energy has been between 20 and 40 a barrel from 1979 to 2002. You know where it was in 2002 . 20. It goes up to 140 to now well see. Its always been a demand equation. Now theres a big difference in the amount of supply. 4 million more barrels a year in the United States and youve got as much oil as shale in the ground that youve taken out for the past hundred years. I like what you said about the live sports though. Because its impossible not to know i was watching the patriots game and i just happened to have stopped it a couple of times. Just happened to did you watch the pass . I happened to have watched it. But my son on my ipad there were five minutes left and brady was trying to drive. And i heard something on my machine over there. And he goes patriots win. And guy what . No no, no. Because i had had gone ahead on the tv and he didnt realize it. And there was an alert on my cbs sports or whatever it was. Just ruined it. Ruined it. I dont feel sports as closely as most people do. I every now and then turn into them. But i was very excited. I saw bob kraft earlier. He said youre going to like it. Weve got a new player hes jewish. Thats kul. Cool. And that was the guy. Threw over to him and he just stopped, set, and threw the most perfect lead. I read he said he overthrew it. I saw that. The last drive was amazing too. Thats the one i didnt see the end. I was upset. What were you doing . Worrying about Global Warming and Climate Change . He was reading ten qs. Were you shoveling snow . Exactly. Ive got a long driveway now. Ron, thank you. And thank you for this. Are we just going to keep this here from now on . He brought us our own bobble head. Those are whacky arent they . Because their heads move. Do you have one . Ive got one here. No i mean of you. Then i could just do this to your head all the time. Have you seen that. Its a statue and the head moves. Coming up platinum portfolio picks from david katz. And we head to the Detroit Auto Show to find out what carlos ghosn thinks of oil prices at these levels. And monday morning strategy with jim cramer. Squawk box returns in just a moment. House. Its a full day for me, and i love it. But when i started having back pain my sister had to come help. I dont like asking for help. I took tylenol but i had to take six pills to get through the day. So my daughter brought over some aleve. Its just two pills, all day and now, im back aleve. Two pills. All day strong, all day long. And now introducing aleve pm for a better am. These ally bank ira cds really do sound like a sure thing but im a bit skeptical of sure things. Whys that . Look what daddys got. Ahhhhhhhhhh growth you can count on from the bank where no branches equals great rates. Number of deals this morning. Roche is buying majority stake in molecular analysis Firm Foundation for up to 1. 2 billion. The swiss drug maker homepes it will boost cancer treatments. Own ing owning in genentech, with all this customized medicine it makes sense. I understand it to some extent. And shire is buying Nps Pharmaceuticals for 46 a share in cash. Thats about 5. 2 billion. It gives the Company Access to at least two promising drugs and it also improves its rare business disease. And amerisourcebergen to buy mwi for 2. 5 billion. That is an 8 premium. Ready . Okay. Over mwis fridays close. Going like this because i have to adjust volume because i dont have it up here. It looks weird when youre doing that. Hey easy. Yeah, little weird. Your hands off the easy. Coming up this morning, a big night for College Football. It is the first College Football playoff championship. Will it be the ducks or the buckeyes . A preview is just ahead. Introducing preferred rewards from bank of america the new banking rewards program that rewards our customers, every day. Youll get things like rewards bonuses on credit cards. Extra interest on a savings account. Preferred pricing on merrill edge online trades and more. Across your banking and investing get used to getting more. Thats the power of more rewarding connections thats preferred rewards from bank of america. Double wings, extra ranch. We need to do something different. Callahans . Ehh, i mean get away. Like away away. Road trip . Double wings, extra ranch. It feels good to mix it up. The allnew, fuelefficient Volkswagen Golf tdi clean diesel. Up to 594 miles of adventure in every tank. Introducing the allnew Volkswagen Golf family. 2015 motor trend car of the year. Our name your price tool helps oh, jamie you got a Little Something on the back of your shoe there. A price tag danger price tag alert oh. Hey, guys. Price tag alert is this normal . Well, progressive is a price tag free zone. We let you tell us what you want to pay and we help you find options to fit your budget. Where are they taking him . I dont know. This seems excessive decontamination in progress. I dont want to tell you guys your job, but. Policies without the price tags. Now, thats progressive. Tina fey and amy poehler hosted the Golden Globes for the third and what they say is the final time. They touched on hot button topics from the get go. Tonight we celebrate all the Great Television shows that we know and love as well as all the movies that north korea was okay with. And the biggest award of the night, best Motion Picture drama went to boyhood that was filmed over the span of 12 years in the Major Television categories showtimes the affair pulled an upset winning best tv drama and actress honors. Best actor went to kevin spacey for house of cards. All right. Coming up platinum portfolio picks from david katz. Find where hes putting money to work in this market. Plus carlos ghosn on prices at the pump and the future of the automobile. As we head to break, take a look at u. S. Equity futures up. Should be a friendly open but not as friendly as it was an hour ago. So ally bank really has no hidden fees on savings accounts . Thats right. Its just that im worried about you know hidden things. Ok, whys that . No hidden fees from the bank where no branches equals great rates. Welcome back to squawk box this morning. Retailers prominent among the stock os then move this morning. Lets start with tiffany that cut its guidance for the year following what the luxury goods retail ser calling a disappointing season. Also lululemon increasing its Current Quarter guidance. Then we have apparel retailer express also raising its earnings outlook following a strong Holiday Season. A month ago express had warned the season might be challenging due to highly promotional environment. An sandisk shares getting slammed this morning. Cutting the revenue guidance citing weaker than expected sales of retail products. A American Manufacturing on the comeback trail . A new study on the state of manufacturing jobs can. Scott cohn joins us with the details on that report. Good morning. Good morning, becky. The answer according to this study is no. It sounds great and we were reporting on it from ohio last month. Manufacturers are hiring again. Energy is booming. New technologies creating new opportunities. But the study says its basically a lot of baloney. There have been some gains in manufacturing in the last five years but they say they barically make a dent in the massive losses since 2000. And mask the serious weakness in the sector that still accounts for 12 of the economy and 1 6 of all private sector jobs. Considering the numbers from the washingtonbased Information Technology and innovation foundations. Nonpartisan think take weve talked about before. Even with the job gains since the Great Recession ended in 2009, were still down roughly 1 Million Manufacturing jobs in this country. And 15,000 plants. Study also says that all the net gains in manufacturing output since 2000 come from basically one sector computers and electronic components. But those are inflated the study says by huge influences in processes speeds. Manufacturing is down nearly 10 on the period. Even nondurables which include manufacturing related to that energy boom lag overall the Economic Growth in this country. Manufacturers nonetheless are increasingly optimistic. Separately the greatest survey. Is more than 91 are upbeat. The study says theyre being lulled by complacency with the industry battling both. Study that is bound to generate a lot of talk. Okay. Scott cohn thank you for that report. We appreciate it. The squawk platinum portfolio is back and now you can go online to cnbc. Com pro to read their expert analysis. David katz of matrix joins us now with his three picks this morning for us. Lets start with the biggie. Qualcomm. Qualcomm is a play on smartphones whether its samsung or apple. Theyre selling the big antitrust probe. We think its going to be settled. Theres going to be a multibilliondollar find. Stocks at 14 times earnings. When they get that clarity, we think the stocks start to do better. What overhang does that run you . Slowed Earnings Growth this year. Slows their ability to give guidance. Probably slowing stock a little bit. When you get that clarify, we get a multiple expansion. Are you a contrarian on that . It looks at near term that penalizes. So we think theres going to be a settlement. If you look at past probes theyre generally multibilliondollar settlements. You got a controversial call here with slumbersai. Anything with oil is controversial right now. Youre 100 right. Oil is rotten right now. Earnings are going to come down very sharply this year for schlumberger. We think oil is going to bottom is the not so distant future and come back to the 70 to 80 level at some point this year. You think it will this year . We think it will. You hear comment right now supply is not being affected. We think supply is being affected. New rigs are slowing down substantially. Rigs are being closed. On the demand side suv and truck sales are up to their highest in a percentage basis relative to cars. People are going to change their behavior. And we do think on supply and demand economics, forget the risk premium. Then johnson controls. Actually theyre going to be a beneficiary by Lower Oil Prices its a superior company at nine times earnings. We think they get a multiple expansion. David, i was just chatting with ron baron i dont know if you saw we were talking about closet index and stock picks and indexing. Youre a stock picker. Have been for many years. Is this going to be the year where stock picking active management significantly outperforms the portfolios . We think so. Last year about 80 of managers lagged the index. The year before was also pretty difficult. People are giving up on active management right now. We think there is a significant valuation discrepancies out there right now for growth and value managers. This year youre going to pick up some of that. Now is not the time to move towards index. We appreciate it. David katz. Also a reminder this morning you can go online to cnbc proe to track. Do it on realtime now. Still to come from autonomous driving to Lower Oil Prices, well talk about it all with renaultnissan ceo carlos ghosn. Plus a matchup of tonights championship. Its all coming up after this. Hiring new employees can be tough. But it doesnt have to be. Because now you can post to over 50 of the top job boards with just one click with ziprecruiter. Find candidates in any industry, nationwide. Just post once and watch your qualified candidates roll in to ziprecruiters easy to use interface. Find out today why ziprecruiter has been used by over 250,000 businesses. They even offer a 100 satisfaction guarantee. And right now, you can try ziprecruiter, for free. Go to ziprecruiter. Com free30 wow. What is that . Head basher music. Second week of the nfl playoffs is over. Colts, patriots seahawks and packers all advancing to the afc and nfc championships next weekend. Plus weve got the College National championship game tonight in dallas. Where the Ohio State Buckeyes will take on the oregon ducks. Excited about that although i probably wont be able to watch it. Stay up late joe. I may watch a little bit of it. Do you think lets just start with that. Okay. Then well get to the nfl. Third string quarterback who runs like really like an 18 wheeler. He is a truck. Is oregon big enough to stop that . Are they begin enough to stop Ezekiel Elliot is the question not necessarily cardale jones. But Ezekiel Elliot ran for 250 yards for the last two big games for them. As much as i think the loss of Derrick Carrington that will hurt them. But its all about the quarterback. And mariota has turned it over 13 times in his career. Career. How can you bet against that . Thats true. Theyre so fast. But urban meyer would be the second coach to win a National Title at two schools joining nick saban. You cant count them out. Id like to see with the s. E. C. Dominance, id like to see these guys assert themselves. They have already, but im not sure if thats going to happen. Theyll be back with the bright yellow theyll still accent it. You know who butters your bread . Who butters my bread . Becky, please save me. Where is this going . Are you talking about nbc heading over to the n apple. How good is this super bowl going to be . My point is youre a sports guy. Ive got to talk really slowly. That is true. We need bright graphics. Were like the usa today of journalists. We need bright colorful and slow. These four teams that are now this is painful for everyone else. The last teams are phenomenal. I think three teams are phenomenal. I dont think the Indianapolis Colts are in that category of the other three. The denver broncos, my loved Hometown Team i was giving you the benefit of the doubt. Looked mediocre yesterday. Im shocked the colts are within seven b points on the patriots in vegas. Peyton manning yesterday looked like a guy whos done. Looked like a guy whos thrown his final pass. Look, he doesnt know what hes going to do at this point. Clearly. But in the interview with dave logan yesterday in denver he sounded like a guy who has sot doubts. No way he walks out on the football field next year the guy that he was yesterday. Because he was mediocre. He was maybe below average. Dave logan the buff . Yes. The same guy. Hes the local guy there. Are you wearing a pocket square in memoriam today . No. Thats a little bit of a burnt organization. Thats just fashion. Im just trying to keep up with andrew. I thought if the ground causes you to drop the ball then its it looked like a catch to me. But i would rather have green bay. And is his calf going to be okay fully by then . Heres the thing about it. Do you feel bad for dallas of all teams right now . I didnt see what happened with detroit. Theyre only there because of a bad call. So do feel bad that no. I thought green bay would be a better test for seattle. Look. This catch by dez bryant was one of the best catches weve seen in recent memory. By that rule they made the right call. You have to, quote, complete the process. The ball did roll. It moved. What if he landed in the end zone. If he crossed the plane before hitting the ground it would have been a touchdown. If he was reaching for the goalline they could have said he fumbled reaching for the end zone. Its like cell phones. We wanted more internet connective and wifi and now this sucks. Now with replays, everything is replayed. Everythings reviewed. They made the right call but that was a great catch. Would have been tremendous had it stood. And i was there two years ago with baltimore versus the patriots. That felt so good. Down 14 twice. First time ever coming back from 14 twice. And everything that people talk about beforehand. And brady, did you see he gets fired up. People love to hate him and they love to hate belichick. Until he does an interview post game you think hes 27 28 years old. Then you see the gray beard coming out. But the guy looks like hes 27 28 years old. The passion, he hasnt lost a bit on his fast ball. He looks like a guy that could play four or five more years. So on the opposite spectrum of peyton manning. I think that new england seattle matchup looks like what were headed for in an outstanding super bowl. That would be huge. And they wont roll over like your stupid team last year. Theres a lot of bronco fans that are thankful we wont see them back there. They got killed. Braydy is the antidalton. Absolutely. I dont think anymore can you ask that question manning or brady. I think that debate has now been answered. How about that last pass . Not with edelman. How about the last drive . That pass was right. Some people outside of here still want the patriots to win one post spy gate. So for their legacy they need to they dont spy anymore. They do the stuff with the ineligibles and stuff like that. Innovators are often ridiculed. Bill belichick is the smartest man in the room. I love seeing him or harbaugh mad. He looked foolish that he was angry given that belichick knows the rules better than anybody. All right. All right. Youre here, you can come across and see us. I love the new digs by the way. I forgot a house warming present. Ill bring something tomorrow. Is it really sporty and garish . Its not like look at us. Sports casters are known for being very underdefined in what theyre doing. Look at the socks. Look at these. I got ohio state, i got oregon. Were unbiased. Tomorrow i think theyre going to be green and yellow. We appreciate it. I think theyll be green and yellow for the winner. Were across the street. Hang out with us. In the meantime weve got to talk about cars. Phil lebeau has a special guest. Hes at the detroit autoshow. Were going to hand it over to phil. Thank you very much andrew. Im joined by the man who runs nissan. Carlos ghosn. A big day here in detroit. Youre introducing the new titan pickup truck. Well talk about that in a bit. First lets talk about the year you had last year. Record sales here in the u. S. Yes. It was a great year in the United States. Weve been investing for awhile. Not only in term of products but also in term of dealer network. Hopefully well start to see some of the results and its not finished. You struggled ever since you unveiled the first titan. Whats different with this . Why can you take on the f150, silverado, and other competitors . Today we have about 1 market share in this important segment of the United States. 2 million large pickup trucks are sold annually in the u. S. Were a 1 market share. For a company which is potentially going to 10 market share in the United States, we have to have a more substantial part and contribution to this segment. We have been observing a lot, worked a lot. We have observed where the opportunities are on this market with this truck. We think this truck should help us do much better at this market share in this important segment which would help us reach our objective. Enb en engines engines, quality, design, functionality. There are lots of things that should attract buyers. Lets shift gears and talk about the leaf. You had strong sales last year at a time gas prices were falling. App lot of people are looking at 2015 and saying can you continue that . Is the market still going to be there for an electric vehicle when the average is 2. 13 a gallon . Yes, its going to be there. Obviously oil price is unpredictable. Because a lot of people are making demands today about oil price but nobody was able to predict one year ago that oil price would be as low as today. Nobody knows where its going to be in one, two, or three years down the road. Im not trying to say were basing our strategy on something we dont know. But what we do know is regulation on emission are going to get much tougher. Not only in the United States, in china, europe, japan, everywhere. The regulators are really paying a lot of attention to Global Warming and to the mission. And this cannot be solved without the zero emission. And the technology which is the most ready for this is electric car. Autonomous driving vehicles. You said by 2020 well have a fully Autonomous Vehicle out there. Are you comfortable staying there . I think reasonably 2020 is a good timing. Obviously, you know there are different level of autonomous driving. You have been driving some cars you know that this kind of Technology Already have. We are much more advanced than that. What we are shooting for is autonomous driving in a city. Thats what were shooting for. We have autonomous drive on a highway or autonomous drive in track jam. These are relatively easy. What is more complicated is in a city with green lights or red lights and the cars need to see all of this. This should be ready by 2020. Final question. You mentioned the ruble is a blood bath over in russia. In your role as the chairman any relief at all there or do you look at that market and say its not improving . No i think 2015 is going to continue to be a very Challenging Market in russia. Challenging market in russia. We are forecasting a market down, even though 2014 was already seeing a big decline in the russian market. Now, you know when the ruble weakens, it hurts particularly car makers who are importing a lot of stuff. Importing cars becomes practically impossible. Importing parts makes your car very expensive. So it should do much better in an environment where the ruble is going down. Carlos ghosn, man of many hats, here unveiling the new nissan titan fullsized pickup. Back to you. Phil thank you very much. When we come back this morning with the jobs report out of the way, can investors expect more volatility in the markets . Well hear from jim cramer in just a moment. Ameriprise asked people a simple question can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. I try not to worry but you worry. What happens when your paychecks stop . Because everyone has retirement questions. Ameriprise created the exclusive confident retirement approach. To get the real answers you need. Start building your confident retirement today. Hey, jennar fuzz mike troober munny sling. Awwwwww scram im crust mike jubby roll bond chow gonna lean up an kiss bet. Peas charty get town down. [laughter] borf a liver tute face stummy wag pow pam shabeeps stella nerf berms. Saxanay nay . Badumps a head. Temexiss gurrin. Juppa left. Fluppa jown brone a brood. What . Catch up on what everyones talking about with the x1 entertainment operating system. Preloaded with the latest episodes of the top 100 shows. Only from xfinity. Lets get down to the new york stock exchange. Jim cramer joins us now. Your friend Gary Kaminsky is on the set. Maybe you can comment on some of the hedge funds getting a little bit nervous . Hedge funds have been out of position a long time. Fundamental basis is that rates have to rise. In the meantime we just continue to see business do good, and wages go down and europe put pressure on bonds, on Interest Rates. So i mean its kind of a decent scenario. Although today we have a lot of the Drug Health Care stocks up. We have the airlines down. So, i mean it does change from daytoday. And jim, the leverage going down, i think you would agree, right, it doesnt mean anything other than the fact that a subset of investors who utilize leverage to try to enhance returns arent enhancing returns, so why even the low Interest Rate environment borrow money if youre not making the returns, right . But why brorrow money if you dont know what youre doing . Look, we had a great conference when we did delivering alpha, and almost to a manager everyone was looking for higher rates. And if you look for higher rates and you lever it up you really had a bad year. So maybe your investors start to question, if you were so wrong, why did you even borrow money and make yourself more wrong . Thats what i think is at root of the hedge funds. Do you like this health care the shire deal this morning . Im sorry, what . Do you like the shire deal this morning . Do i have shire . Do you like the deal. I have nps tonight. And i do love the deal. I think its great. Because i think that theres just a tremendous tremendous orphan drug bias to many of these Drug Companies. You can charge a fortune, and this is very good for shire and theres a lot of companies. Bristol meyer has good news today. Theres just so much good news and this is the jp morgan Health Care Conference. All this stuff is coming out now because Everyone Wants to strut their stuff. This is a great day for health care. Really fabulous. Okay. We will watch it. Mr. Cramer we will see you guys in just a couple of minutes. Becky . When we come back this morning, a stock soaring nearly 145 this morning. Heres a hint for you. Its in that same vein of what jim and andrew were talking about. Thats when squawk box comes right back. You just got a big bump in miles. So this is a great opportunity for an upgrade. Sound good . Great. Because youre not you youre a whole airline. And its not a ticket youre upgrading its your entire operations, from domestic to international. Which means you need help from a whole team of advisors. From workforce strategies to Tech Solutions and a thousand other things. So you call pwc. The right people to get the extraordinary done. Shares of Foundation Medicine what we were talking about soaring this morning. Roche is buying up to 1. 2 billion. Theyve got some impressive things from the Road Institute and m. I. T. Whitehead institute. Thats what clued me in. You were asking the 20th anniversary of squawk box is in august and youll have to be there. First of all, welcome to the city. Welcome to the set. Im honored obviously to 20 years later continue to be part of the family. The third location. Its unbelievable. The third location. Stack, mack you, and myself joe, really have persevered through the 20 years. You look the same. You dont think i look older, right . No. You dont . Youve got to keep updateing the piece. Thats the only difference. I feel younger. Remember when your hair grew back from the rogaine . And now youre neglecting it again, right . I think its macho. After he said all these nice things. All right fellows. Great seeing you again. Be sure you join us tomorrow. Right now its time for squawk on the street. This is how we do it this is how we do it good monday morning. Welcome to squawk on the street. Im carl quintanilla, with jim cramer. Hope you had a restful weekend because the week is packed. Earnings season begins tonight with alcoa. Tiffanys ingwarning. A 5 billion pharma deal. Goldman cuts its forecast for 2015. More on that in a moment. Tenyear yield is back to 195 on a very busy week for new supp