Transcripts For CNBC Squawk Box 20150223

Of cargo. A labor deal was reached late friday to end a month long dispute between Dock Workers Union and shippers. We think we have good news with greece. It seems like its sort of good. Who knows. Thomas perez was part of the talks. Hes going to join us at 8 30 eastern and drivers theyre paying more at the pump. Gas prices jumping 13 cents in the past two weeks. 26 cents in the last month. The average price now at 2. 33 among the reasons for the increase. The largest u. S. Refinery strike in 35 years and an explosion at an exxon plant in california. Corporate news valiant has a 5 tax rate i think. And still using that to leverage itself in buying u. S. Companies. Its buying castro drug maker salix for 158 a share and about 10. 1 billion. After valeant lost a take over fight for last year. Apple announcing plan to build two data centers in europe for about 2 billion. They will Power Services including the itunes storage application store. Imessage maps and siri for customers across europe. The company said the plans will be entirely powered by Renewable Energy and create hundreds of jobs. Honda announcing the ceo will step down in june. The move was not expected. The executive has said here ruffled some insiders by shaking up the companys traditional supply chain to trim costs and find new technologies. Lets get a check on the markets this morning. Were looking a the nasdaq within striking distance of 5,000. Nasdaq closing just about 45 points below that on friday. Take a look now it looks like there are red arrows. These are modest declines. The s p futures down by 5 points. The nasdaq off by five. If you want to check out what is happening in europe, all of that news we got over the weekend of a potential of a greek deal did help things up. The kak up by a quarter . The ftse is down. In germany the dax is up by a third of a percent. And in greece the index looks like by a quarter percent. Well have more in the a moment on the latest. If you want to take a look what happened overnight in asia. Green arrows across the board with the nikkei. Oil prices checking things out below 50. Thats a decline of about 2 . Look what is happening in the bond market. It looks like the yield on the 10year note is sitting at 2. 124 . In the currency market now, the dollar is up against the euro. Its up against the yen. It looks like the euro at 112. 96. The dollar is up against the yen at 119. 80. An interesting story this morning about what happen has beening to the swiss current si since they depegged the swiss franc from the euro. Its been creating chaos. Well talk about that later, too. Greece is dominating the Global Market conversation. Its been dominating for weeks and especially on friday. Kristin cabrera joins us with the headlines. So the greeks caved in on nearly everything last friday. And all the things they said they were never going to do they agreed to do. What were waiting for today. Its not over yet. They got an agreement in principle. Theres a key test today. What the greek government had to do was submit by today a list of reforms they were willing to do and then tonight were approaching element night time there. Over in europe. Theyre going sit down the imf, the ecb, and the Euro Commission will sit down and decide whether or not the reforms are good enough. The reason why we need a thumbs up or down. Theres about four parliaments that have to vote whether or not they are doing the deal. Thats why time is of the essence. Despite having to cave on nearly everything. The greek finance minister put a positive spin on this on friday. Today were beginning to be coauthors of our destiny, coauthors of the reforms we want to implement, which were going to dictate. Which we will discuss with our partners. Not so fast. I mean, remember this is a socialist government. What they really dont want to do is layoff government workers. By the way, the previous government, the conservative government, also didnt want to lay off government workers. Its a big issue in greece in general. Were going it see whether or not the reforms really pass muster. A big test. In the meantime, the Prime Minister sip russ sold it as a big one for the population and the greek government. Believe it or not, there are leftists within his party that are even more left than he is. I mean downright hard core communists. Theyre furious. They say they buckled. But we know a lot of people on the ground there. Im told on the ground generally speaking, people are a lot manufacture positive. Okay. They didnt get all that much but at least they showed some spine which is the general consensus im being told by people on the ground. I looked a the reports on friday and saturday. The greeks caved. Is that what you called . They caved on nearly everything. What is happening a lot of changing in the words. They hate the word troika. Now theyre the institutions. Here is the one thing they got which mixed blessing. They were supposed to carry a large primary surplus. In other words once they paid their bills the basic budget balance and they had to carry a large surplus. Theyve gotten leniency on how much of a surplus they can carry. Thats a mixed blessing. That number, that surplus wasnt, you know, crafted out of thin air. They calculated in order for you to pay your Interest Payments to bay pacquiao have to have that much of a budget surplus. Well, if they dont have to have that much of a budget surplus, how are they going to pay back the other institutions which means were likely talking about a third bailout for greece of more money. Meaning giving them more money. Extending. On the loans of the other governments but those arent due for ten years. Youve got to give them you cant extend them for ten on the ecb. You have to give them more money if you give them leniency on the surplus. You almost make it spanish its probably true yes. Probably isnt like that is it . But sounds like you know what youre doing. This is four months its a fouryear thing were doing here. We may have what are the chances over the next four months he keeps hearing you folded, you folded. And then they take a hard line and something happens next time. Right. So there is the parliament itself will it continue to vote with him. Thats going to be a crucial question. I think its going to depend on the ground by the population. Leading up to the elections, we talked to many many people. Many people told us they were going to vote for syriza the party that won. Mr. Sipcypruss party. They said we dont believe them. We dont think they can do all the things they can claim they can do. The other two parties that ruled this country for 40 years stink so bad and they didnt use the word stink. We cant stand it. At least theyll show some spine of some sort. Not going down without a fight. There was something about pride and dignity in this. Im not sure i cant tell you. Im not there, right. But well see. Im here. You want to it is 55 degrees there. It should be. Yeah. Can you report from one of the islands and be close. Thats greece right . Its closer than here. Alex tribeck, any name you might as well go with it. We dont know. Do i roll my rs. No. You dont roll it. But i think michelle is right. Its all a little scary. If i have to choose who im going with im going with were way over. I would say it slowly make sure theres not a problem. Its going to be close. Chicken plucking. Yeah. Pluck that chicken. Lets get more on the Global Market story from one of our squawk market masters. Joining us now on the squawk newsline from thailand mark faber. Publishers of the gloom, boom and doom report. Because its been in front and center for so long mark well talk about other things eventually but is will there be all of us take notice at this point or, you know have we gone past that now and it looks like its going to be okay there . No i think the greek problem has been postponed. It hasnt been solved. And if the problem is really they have debt the country with its economy cannot simply serve or pay. The debt amounted to Something Like 200 million or 300 million dollars. The economy is not Strong Enough to support that. Number two, in the discussion about greece what is frequently overlooked is that tornado and for the e. U. And the u. S. An exit of greece might open up an opening of closer relationships between greece and russia. Or greece and china. And that is the western allies are going to prevent at all costs. So i think in the context of ukraine, where the west will have to make concessions that russia controls Eastern Ukraine including the strategically important cities of donesk. At the same time a comprise will be made that russian phase out of greece and that more money will be forthcoming. And from the e. U. Maybe partly overpaid by the u. S. But strategically nato the e. U. The u. S. Do not want greece to leave because its strategically very important from the backseat it would be very close for russian ships from the crimea to essentially establish a port present in greece. Thats interesting. We worry about greeks because of spain and portugal. I dont think anyone brought it up that its almost like cuba where we would have a sort of a russian satellite close to some strategic areas. Thats something i hadnt heard before. What about will the eurozone be intact five years from now, in your view marc . Yes, but it may be without all participating. If you go with the u. S. Dollar to latin america, you can pay and use your u. S. Dollar everywhere. And in most parts of the world, anyway and i think that maybe in the end there are some countries will no longer be part of the europe of the euro and euro could strengthen things. In an extreme case if only germany was in the e. U. Then the euro would be very strong. So the investment implyications are not losing hope. All i can say is the tone nowadays has been more europe friendly with most european markets up much more than than 2015. You have france up 13 . You have germany up 12 . So you the euro stock index up 11 , and of course weve had a good performance in europe. Marc quickly we dont have much time. Youve been worried about levels of evaluation in the u. S. For awhile. The nasdaq is almost 5,000 or might hit highs. Are you still concerned at this point about a day of reckoning with the nasdaq or the other indexes in the u. S. . Yes because basically recently the Economic News given all the stimulus that happened over the last five years have been rather disappointing. I think were looking at 2015 a year where corporate profits would be down. So i dont think that the evaluations are effective. Doesnt mean that the market will collapse right away. No. Maybe it goes higher. But its not particularly good value compared to say, emerging economies. We have an emerging economy now at least relatively good value after emerging economy sies compared to the u. S. In the last four years. Yeah. Okay. Marc faber. Thank you. We appreciate it. My pleasure. Thank you for having me. Ive not been to thailand. Im heading there later this year. I am yeah. On my way to i have the trip planned. Is this totally personal . Totally personal. Is it really . Now its no longer personal. Youre not going for business or anything . No. Its on my wifes bucket list. Is it really . It is. Okay. Not on my mine. You can take it up with her. Okay. All right. We have deal news this morning. Actually this involves aa cross border thing. We should talk about what it means. A merger between the two silicon metal producers. Hardly household names but they are materials that produce that are key elements in the manufacturing of just about everything from lipstick to lightweight aluminum cars to solar panels. Alan is here the executive chairman of globe. Congratulations on sealing the deal. You signed it last night. About ten minutes ago. Thank you for coming over. Walk us through a couple of things. I want to talk about the global implications. Were talking about what happens in europe and youll have a spanish owner who is a spanish partner and what it means. In terms of putting the companies together. Why . A little bit, first, about the history. The business of what we make. About ten years ago for about million dollars. It was in distress in the United States. Had about 200 employees. We built it up 400 million. Yeah. Out of bankruptcy. And we built it up over the last ten years to eventually go public in 2009. Now we have about 1500 employees. And Market Capital of close to 1. 2 billion predeal. Thats Great American success story. This was a rare American Manufacturing success story. We did it with cooperation of the unions. But anyway the product we make and the other thing that drove is a lot of luck. We caught the market at the right time. The products this goes into is cars. Cars. Makes them lighter weight. But solar panels has been a huge they used to consume maybe 1 of the silicon. Today its 10 to 15 and growing at about 30 per year. As usual luck had a lot to do with it too. With that theres we have successfully rolled up the north american industry. On the other side of the atlantic oddly enough somewhat with the same strategy started to do it in europe. And that company is atlantaca. And a man that owns that is a tremendous well known industrialist in spain. Theyre coming together these two companies. Increditablybley complimentary. Come together will give us a tremendous amount of ability to continue to grow the business. Two things quick. Between solar and cars which longterm makes it more the business . Well, the one we didnt mention, which was the biggest was is silicone. Its a them call. It goes into all kinds of things. Caulking cosmetics, food health care products. And goes into yes. And so for example do you do a lot of that . The silicon that goes they do a lot of everything. Its 2. 3 billion combined revenue. Our silicon goes to Big Companies and they make the silicon and in turn sell it to people that make the different products. Its 50 of the consumption. The other 50 is made up of the aluminium and the silver. Got it. Given weve been talking about europe all morning, how much now do you have to care a lot about what happens to greece and what that means to spain and your company . Its a big draw ever. The u. S. Dollar represents somewhat of a challenge to american producers. Im sure youve been hearing that. The amount of stimulus happening now makes the transaction incredibly timely. You have a very accommodative policy meant to drive consumer growth lower Interest Rates, lower currency. Its going to be able to move our Manufacturing Base even larger in europe than it is in the United States. And be able to balance us. Weve got now a platform. It doesnt have to be that concerned anymore with the movements of currencies because now well be able to be successful whether the dollar is up or down. Its a very timely acquisition, actually, its interesting a lot of stories are coming out now. We thought about this six months ago and happy its happening now. Thank you for coming in this morning. Congratulations. Thank you for having me. When we come back today well have the National Weather forecast and a travel forecast for you as well. Here is an early warning. If you plan to fly through taxexas today. Watch out. I think its colder in dallas today than new york city. Plus how the white house plans to toughen conflict of interest rules for Financial Planners working with Retirement Funds. Here is a look back at this date in history. E financial noise financial noise financial noise financial noise another wirntz storm bringing ice and dangerous conditions to roads and airports across north texas in this case. More than half of todays schedule dallas is its an important hub. I didnt even know this was coming. Its the biggest hub for the Biggest Airline which, i think, is american. Joining us from the Weather Channel keith carson. Keith carson whats going on, guys . Oh man i mean, theres something to talk about with you, keith. Let me see that shirt. We have to go to a single shot on that to get a whoa wow first of all, they let me back in the studio after standing in the cold for about a month. Those pants. Its cold somewhere. Did you know you were going to match the weather map. Its unbelievable. Nothing is coincidence. With you. Its not. What is going on . Lets talk about you nailed the introthere. Dallas is the biggest thing. They got mainly sleet. Obviously being in the south not as good as dealing with it. Freezing rain to jackson. Almost to the gulf coast we have a deep trough all the way. Through today watch out in dallas. Eventually theyll warm up by the afternoon. The morning looking pretty rough. By tonight maybe a little wintery weather. Atlanta has a Winter Weather advisory. A half inch or so a possibility here. Doesnt sound like a ton. It is a lot for atlanta, for sure. Jackson seeing freezing rain on the backside of it. The big theme here guys we still have that trough to the east. We have the cold air pulling down. Windchill 20 below in chicago. 18 below in buffalo. Boston looking relatively good at 22. Theyll get colder as the day wears on. I look into the mid range and i dont see any real changes. You can see the cold air across the eastern sea board. It breaks up spokes of cold air coming down from canada wednesday, thursday, boston new york d. C. Staying cold. You may see look at that. Sunday into monday it looks pretty good. It does. It looks warm. Thats going to come with rain on monday as the storm system moves up the eastern sea board. Guy, this winter has been ridiculous. Weve been up in boston basically the past month or so with the snow. It looks like the pattern stayed the same. Theyre right. Keith, youre right. What happens when we warm . Things get much colder. Thank you, keith. We appreciate it. Well see you later. In Washington News the white house wants to toughen conflict of interest rules for Financial Advisers working with your retirement money. John brings us the details. Good morning. Good morning, becky. The president s theme has been lately middle class economics. Hes been trying to see what he can do without support from congress. And so yesterday there was a Conference Call Administration Officials announced as of this morning they were pursuing a rule to require Financial Advisers working with the people in retirement programs to have better disclosure and let investors know about hidden fees back door payments that could change their advice. They say that these conflicted advise cost investors 17 billion a year. They had on their Conference Call jack vogel of vanguard said its about a culture of salesmanship that moved into the retirement business and that retirement advicers who depend on selling products every single day push people in ways that may not serve their interest. So this is going to be a long process. The department of labor has oversight over plans that involve worker retirement. The secc has a different set of rules over ordinary brokerage accounts. Its something that the administration tried to do in 2010. There was a tremendous pushback from wall street. They abandoned the effort and theyre trying it again. Its going to take the remain of the Obama Presidency if theyre going to get it through. Theyre said theyre not banning commissions. There will be certain exemptions to the disclosure but theyre getting it underway. Come a long way, john. Twenty years ago it was almost like fee for service doctors. Almost twenty years ago it was all commissions. Now its mostly assets under management. And, you know, theyll be setting where the money is. Its in retirement accounts whether its individuals or companies. Huge sums of nun Financial Advisers are after. So that makes sense and, you know, when these guys still live month to month some of them, you know, if they have assets under management. They get a yearly bonus. Precisely jack vogels point. Every month you do its like whoa i have a week left and i dont have enough income. And then you look at the charges on them. 250 on these. 17 basis points on an index fund. Compared to i can tell you in the 70s and 80s. Compared to what it used to be. 100,000 for sits for 30 years. Its a big amount of difference. It used to be 800 basis points on mutual funds. Mutual funds. 17 basis points for a Vanguard Index fund right now. Lets bring in ben white. The chief economic correspondent at politico. One of the big issues that were looking at i cant believe were potentially looking at another parable government shut down. Lead story how the gop controlled congress is coming back and they have to decide by friday if theyre going to fund the department of homeland security. What happens . Well, if they dont pass a bill to fund it by friday it shuts down which means a couple of hundred thousand people day on the job but they dont get paid. Its like we wont be fighting terrorism. A lot of nonessential functions will shut down. Pacific basically the house passes a bill that funds dhs and but take aim at obamas immigration issues. There are some republicans losinglose ing Lindsey Graham said we shouldnt risk it. Well get blamed. You see the Republican Party at war with itself. You have house hard line conservatives, senate a little bit more moderate and you continue to see that dhs will be one. And you have funding the government later this year. Theres not an agreement within the Republican Party how to take on barack obama on things like immigration and health care reform. Thats going to be a theme well see throughout the year. You mentioned the administration is trying to find more and more way it is can work without congress. Subpoena there is there any talk about potentially working with congress . Sure. There are trade legislation. Youve got democrats and republicans getting close to a deal on trade promotion authority. Thats a priority shared by the administration and republicans. You have some possibility for tax reform all though i think thats a long shot. And the final thing is trying to avoid precisely this kind of circumstance that is to say have smooth fiscal sailing. Not have the budget wars we had in 2011 and 2013. Thats what republicans have to do. Or thats what the administration has to do. But republicans as ben indicated have to settle the tug of war between their leadership and the people who want to govern responsibly and those who have Unrealistic Expectations for what they can accomplish with the power they have. I was talking yesterday to a republican member of congress and he said this is crazy that were considering this shut down. This is a hostage that we cant afford to shoot. And we simply have to move past it. Thats what Lindsey Graham was try dog. Using his cover as federal judges Court Decision putting the brakes on president obamas immigration action. Saying, look on the judge stopped it. We dont need to fight the fight. Lets fund it. Are any of the republican sources from red states . I heard you over the weekend talking with one of your republican sources. Your republican sources are, like they make Nelson Rockefeller look like, you know rand paul. Yes they do. Your republican sources i watch your segment. Maybe theyre the only ones that take your call at this point. Do you know anyone not a rhino that you ever talked to . You think Lindsey Graham is a rhino . Thats not the source he talked about. They all said god, i dont like what the republicans are doing joe, that is precisely reflecting the views of Mitch Mcconnell and john boehner. I know who your views reflect. No. Do you hear me . Mitch mcconnell and john boehner, they dont the president to happen. Theyve said very clearly ever since they won the congress no more shutdowns. Were not doing it. Ill give you some names. Just for the hell of it ill give you some names to check in once awhile to get their side. Republican leadership though. Go ahead. Who are they . Im not going to do it john over the air waives here. Its cable, actually. Its not air waves. Broadcast sounds its air waves for him because he is over satellite. Yes. Can we bring walker and giuliani . Today in the wall street journal the title of his oped piece is he said he wants start a National Debate looking at the quality of leadership. This is a backtrack from giuliani. He what he said is the president doesnt love america. He doesnt love me or you. Everybody freaked out. Rightly so. You shouldnt be out there saying the president of the United States doesnt love america. And the president said the same thing about george bush. Not a single democrat was said you need to come and say and distance yourself. This is look. The media is totally hypocritical. Not that argument. Its not just the president. Its any any democrat. Do you know how many things were said about george bush. If the same level if you looked at it. We would have been outraged every week we would have been outraged every week let me make the point about the leader of the Republican Party. Hes a pretty prominent republican. Im not arguing whether its right to criticize him or not. The disappoint if republicans want to win a National Election you see it in the congressional debate over dhs. You see it in walker talking about the president s religion and giuliani talking about whether hes a patriot can we talk about walker. He came on our show which has been quoted left and right. And the comment to the Washington Post about his religion. I call me crazy, i do not i was not bothered by the quotes. Could he have been strong ensure sure. Why is that honestly why is that a become such a because on the right he could have if he wanted to. He didnt have to. Its an issue that in he didnt say i dont know if hes a christian. I mean, he could have said yes hes a christian but a bad president. Theres another way to handle it. I think when he handled it i dont think how can you not know . Its pretty obvious that the president is a christian. He talked about it in the National Prayer breakfast. Maybe hes not a practicing christian christian. If you look at the quotes he didnt say. Scott walker guys scott walker has dealt with more serious. He had an entire National Union establishment. Understood. And he was in the cross hairs. Well, im telling you. Hes not worried about that. Its like the news hes not worried about it in the primary. Its good in the primary. It if he gets to the general. The left always has advise. You republicans dont want to talk about this then they talk about it and did you see dana mill beck. And then like romney get crushed. Do you want to win the general election. Its not me at all. John your point . My point was simply look at the big picture. You have a threatened shut down over immigration policy. Hispanics are large and growing float. You have a debate controversy over whether the first black president loves the country and is patriotic. That is not helpful to republicans. Why do you have to put black in there . Because hes black. He is black. I know he is but what does that have to do with this . Because republicans are laboring under a cloud an image cloud, okay. People think that the Republican Party thats bad to take it there. Its true race was never brought in into anything guiuliani or walker said. You must be kidding me, joe. Were getting the wrap on the music. This loop is going to run out. When we come back well talk about the winners and losers at last nights oscars. 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. Its effects on society really came about because, not because i was selfish and wanted one for myself, which i did. Its because i had, had a passion. My whole life i wanted to teach myself to build computers. I wanted to build these things for free. I just wanted to do it for the world and you know when you want something, thats what you do the best. These days, the most important person in your business could be a software developer. So, hows the app coming . Weve got to make something great. Hows the app coming . Weve got to do it fast. Lets do this on bluemix. You can build apps with analytics, big data, even ibm watson. That could give us the edge. Lets do this on bluemix. It can provide code for you. We could be first to market. Because being best is priority one. Being first is priority one. Theres a new way to work and its made with ibm. Anything . No. You . No. Aflac what are you guys looking for . Claims legend has it these hills are full of em. It can take months for an Insurance Claim to surface. Claimin takes patience. Aflac paid my claim in one day. They got some newfangled kinda one day payin machine . Hehehehe yea, i got aflac at work. Aflac. In just one day, we approve and pay. One day pay, only from aflac. Aflac. Welcome back. Goldman sachs may be facing beings of dollars in extralegal costs and the fcc reveals gold man received a letter from the u. S. Attorney concluding that the Company Violated Federal Law in connection with underriding. Its possible it may have to pay as much as 3 billion in more in legal costs than currently reserved on the balance sheet. Well see what it does with the stock price. The studio winners and losers of last nights oscars. Squawk box back ans for. Danger. Corrects for lane drifting. And if necessary, it will even brake all by itself. It is a luxury suv engineered to get you there and back safely. For tomorrow is another fight. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Welcome back. The 87th annual oscars handed out last night. We know which films won. But what about which studio came out on top. Julia was there. What did you think . Well, it was quite a night, becky. There were no huge surprises in terms of the big winners. But the biggest winner of all was birdman. They took home the best picture award and tied with search light grand Budapest Hotel for aet to of four wins each. Birdman is the lowest grossing best picture winner since 2009 and one of the lowest grossing winners in the past 40 years. Now lowest grossing seems to define this year. The eight nominees in such a low overall u. S. Box office there are concerns that ratest last night will not be as high as generally there is a correlation between the box office and the nominated films and the oscar telecast ratings. As the day unfolds well see what audiences thoult of the political messages many of the acceptance speeches. Birdmans director spoke out about immigration policy and political unrest in mexico. Patricia arquette called for wage equality. And best song winners john legend spoke out on race issues. Theres no single social media moment as big as ellens selfie tweet but lady gagas sound of music spiked the largest twitter conversation. Thank you. Joining us now is brett lang. Variety senior film and media reporter. Your mind is mush. You were up all night. You cant read you cant its even worse tonight. I went to sleep pretty early. I did. I waited for jk simons to win which i was thrilled about. When he told everybody to call their mother i thought that was one of the great i almost cried. This is your super bowl night and you and i went bed. I went to bed. Once you see the outfits on the red carpet thats basically your i was i basically sat at home and watched all afternoon. Just in the run up to to see all the gowns and the tuxedos. The more i thought about whiplash the more i didnt see birdman yet. I saw that you dont he didnt like boyhood. It took 12 years of my life to make it. Three hours of my life. Why go through . Whiplash that ending scene you dont there are people who havent seen it yet. Im just saying watching the jk simonmons and watching how it worked. It was great he won. Almost as a career achievement. Hes been a journey man. Right. Such a big winner. We are farmers. Right. Spiderman movies. He was jj whatever his name was. Sorry. Maybe not anymore. Wake up wake up you were up until how late . 1 30 probably. No way finishing stories and stuff. I dont think there were very many surprises. I think the Biggest Surprise was how poorly boyhood did. It only was able to grab that best supporting. Joe knew it wasnt a great film. I barely got through im telling you it felt like 12 years of my life. I dont know how it took to film. Its shorter than the telecast the oscar telecast. My Biggest Surprise. Dougie houser is ripped paleo. I wish i looked like that. I saw it and went oh my god i want his training ging regimen. They liked his performance . Its hard to know. On twitter it spends to be snarky. It was really . Always. I thought hes done better on the tonies. I think the tonys is probably a bit fit for him. He was certainly able to create some viral moments which is how success is issue manied. Y ed success is measured. Walking across the stage in his underwear is memorable. If i eventually get to that point im going to walk across here. I think youre going to come in in your uynndies every morning. Just tape the mic to your chest. Patricia arquette did pretty well . Do you know her first movie . Nightmare on elm street iii. What is going to happen to birdman . Birdman will be released on dvd on tuesday, i believe. Its not going to have much of a box office bump. As julia said you know, its one of the lowest grossing best picture nominees in history. I side from the hurt locker it may be the lowest grossing. We had problems with our video or something. We cant show it or continue the conversation . I dont know. I want to know because its a narrow film and i think its very good film and i understand why it won but nonetheless, its not a its a niche film. Does it work . Does it break out as a result . No. I think its pretty much done that it can do at the box office. It will do better on dvd. It will get some on demand revenue it wouldnt before because of the win. Get some rest. Coming up when we return. The head of the business round table joining our table. His take on the trade fight in washington and more when squawk box returns. 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. You cant predict the market. But at t. Rowe price weve helped guide our clients through good times and bad. Our experienced investment professionals are one reason over 85 of our mutual funds beat their 10year lipper averages. So in a variety of markets we can help you feel confident. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back. Joining us on set, john engler. First thing to talk about is last week we saw walmart make this move and i thought that as a whole, most of the print analysis i saw had it right. That weve gotten to the point now, the labor market is getting tight enough to where this will happen naturally in terms of trying to get skilled workers that you want to retain that maybe you dont need Government Action for wages to start rising. Sure. We heard that a few weeks back. Weve been watching it play out in north dakota during the boom there. Prices are ridiculous. Sure. Markets work. And theres a particularly i think today a premium on talent. And weve got 5 million jobs that could be filled if we had people with the skills. Theres also on the part of companies a desire to retain their workforce. That was said and walmart was hinting at the same thing. We want to build our own and train them. I know what i read it this morning, andrew in the journal. I read minimum wage who does it hurt the most when its raised in fast foods. In the wall street journal it says they immediately pass on the increased cost in the price of the items that theyre selling and who does that hurt but the people most affected. I know the left immediately goes come on. Thats a reason not to raise wages because theyre going to raise prices and then the poor people that go in to buy the fast food are going to have higher prices. I know that is dismissed entirely. But if it was a nationwide move to 15, you would see no ones proposing that but there are some people proposing that. Well i think seattle tried it. I think what youve this is one issue that brings the right and the left together on the implications of what higher wages i dont think so. The left tell me the studies have no whats our friend jared bernstein. Absolutely, the jury is not out. The facts are in. It has no effect. However, i will also say that all of those economists say there are other things you could do that would be more helpful. The tax cuts for working class. I think youth on employment rate bears the burden. Weve seen those rates persistently high. But training is also part of it. Weve got a 700 billion Public Education investment that needs to deliver more. Hows the manufacturing and just job picture in general . You saw gallup. The guy said this is a joke. Well that sort of all in you rate above comparable times. Its come down no question. Theres hiring going on. Weve seen some of the monthly data, but i think comparable on that particular rate which is sort of an allin rate back before 0809. Theres still room. Labor force participation still down. Some of its demographics but certainly not all of it. And gdp, were going to see another week of ceos saying were more optimistic. Theyre still about 3 . Were not in that. Im not sure its there. Anyway, weve got to run. Governor, thank you. When we come back we have more of this mornings top stories including a Terror Threat against shopping malls. Stick around. Squawk box will be right back. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display nced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Markets starting the week in record territory. We will tell you what to expect from a slew of retail in media earnings. Key housing data and fed chair yellen on the hill. Urging caution for shoppers after a new terrorist video threatening attacks on malls. Back to business at the west coast ports. Labor secretary tom paris is going to join us. He helped broker that deal. The second hour of squawk box begins right now. Live from the beating heart of business new york city, this is squawk box. Okay. Okay. Welcome back to squawk box here on cnbc. God. Im worried about you. First in Business Worldwide. Used to be mack. Everybody knew mack. Weve got one syllable names for these guys because we yell at them a lot. U. S. Equity futures at this hour are not particularly positive today. If youre bullish and you want the market to go higher. But you can see there s p called down exactly 5. About 50 on the dow jones. And i heard someone on Worldwide Exchange say techheavy nasdaq like six times in one story. And its true but if you dont know by now that there are tech stocks in the nasdaq just stop watching. Please dont. It is a techheavy nasdaq. And its mostly apple. Anyway whats your topics. Some of the top stories were talking about at this hour. Al shabab releasing a video of attacks on shopping malls. Were going to have more on this story at the bottom of the hour. Also greece facing another critical deadline today as a package with the eu. Athens must now outline policy measures plans to take during the bailout. At the same time the government is under pressure from the left wing of its own party. Well see where that lands. Then the west coast ports are working to clear back lots of cargo. A deal was reached between Dock Workers Unions and shippers. Also we should tell you that labor secretary thomas perez is going to be joining us at 7 30 eastern time to give us a rundown of what happened and where to go from here. I was trying to get stick on camera. He snuck away before i could do it. Joe mentioned mack is here. Mack is still here. Hes been promoted. Hes like a big shot now. Steck has been with us here for years too. You think youre avoiding the camera. Were going to catch you at some point. Another example of married someone he worked with. Yeah . Now theres kids. How many of us . I could think of six of us. Why does that happen . Were thrown into this situation. Crazy. Thats it. Anyway more about whats happening in the news. Drivers are paying more at the pump. Gas prices jumping 13 cents just in the last two weeks. 20 cents in the last month. Puts the average price at 2. 33. Among the reasons cited for the increase, the largest u. S. Refinery strike in 35 years and an explosion at an exxon plant in california. Okay. If you went to sleep early last night, heres what you missed from last nights oscars. Birdman winning best picture. Also bringing in best director and best original screen play. And Julianne Moore won best actress. And Eddie Redmayne took home best actor for his role in the theory of everything. I had to explain to my kids yesterday, you know, it used to be and the winner is yeah what do they say . Now they say the oscar goes to. Why . Because you cant say someones a winner in hollywood everybody, you know blah blah blah. Because its politically incorrect. When did they change that . Five ten years ago. Dont b you remember when they said the winner is now they say the oscar goes to. Thats hollywood political correctness. For every single one. They never say the winner is . No of course not. There arent winners and losers here andrew. Theyve all poured their artistic craft into this. And its not you cant say someone is a winner or loser. Thats essentially what youre doing, though isnt it when you win best picture . Dont you win . We still say it but you cant say it when you give it. And the next read goes to me. The dows starting the week in record territory. Joins us right now is charles cantor. He is newburgers investment group. Thank you both for being here this morning. We are talking high levels for the dow all of a sudden. Do you think its justified. I think we expect this here to be a bumpier road here becky. No doubt Equity Investors and Bond Investors have been over the last few years. Its come with a lack of volatility. Volatility has been at all time lows and the gains have been remarkable. So we think its getting harder and equity is getting safer. But it cant be as easy as its been in the past. Shabaab im thinking of putting money into the 401 k into the cluck funds. Maybe i should wait for a dip. Is that what youre telling people . I dont think you can predict that. I think market time is very difficult. We take a longer term view in getting market directions. When you think about your kids i think you want to think about their time horizons. Im guessing theyve got a way to go before they go to college pep and for them im sure equities make a lot of sense. Would you agree with that . I think so. Coming into this year the key is volatility. And thats primarily depending on the fed. We dont think the bull market has been fed fueled. But to say the fed hasnt at least been supportive would be naive. So the key coming into this year is we saw the fed, people expecting the fed to raise rates midyear. And then as thats gotten pushed out, weve seen equities rally. Weve seen the weaker than expected u. S. Economic data. Has been the highest in three and a half years. And we saw dovish fed minutes. That pushes the expectations for a rate hike to later in the year. Whats the response of the market . The best gains the best month were on pace for in a few years. I think as long as the expectations for the fed is later rather than sooner, its a Good Environment for stocks. Do you think the opposite is true . If you think the fed is going to raise, would that change your opinion about where the equity markets are head snd. In the coming weeks, say yellen comes out tomorrow and is more hawkish. Or you do start to see expectations that the feds going to raise hikes sooner its going to be rougher. We contrary to what i think you hear a lot of people saying now when the fed hikes rates, the market doesnt drob for six months after. I think when the fed starts hiking rates or a few months after the Market Investors anticipate the actually increase, thats going to its going to be rough sledding for equities. From then on . If were looking at the pace of hikes being slower than in the past, maybe not an automatic 25 basis points every meeting. If you look where rates have been at flat level for several years in a row like they have now, every time youve seen it youve seen the market take a dip going forward. Right around the time of the hike, not six months later. So i think, you know people when people think the fed is going to hike rates, thats a time for people to show more worry. Again, the expectations now are for late in the year at the earliest. So i think that thats going to be you know you still have time here. And weve had a lot of people who have come in this year and said they are now looking at other places. European equities, other exchanges where you would see better returns than in the u. S. Market. You think thats the case . I was traveling globally two weeks ago and in singapore and hong kong that in our market theyre engaged in long equity strategies. And that seems reasonably content. Playing off the theme of volatility volatility. Theyre engaged in europe. Believing that those markets have to catch up and respond to the liquidity that that has been responsible for. Folks forget that our markets are global. The u. S. Market is a Global Market. At least half of our revenues are driven by the success of our companies to take their products and svss to the Global Market. And of course when you bring those currencies back the dollar its tougher. In the shortterm the u. S. Is a Global Market and thats good for trade. Well look. The u. S. Economy has been very good. What people are questioning is whether the gains have already been baked in as a result. I think thats right. But we think about future expectations kind of what are you paying for the future thats yet to be delivered on a compounded earning space, thats 3 to 4 . If you have no inflation, that becomes real not nominal. That becomes tougher. With a bit of inflation, those expectations arent crazy at all. And then 18 times earnings weve come a long way. I dont think theres anything there that suggests the market is expensive, per se. What would . What would make you start to give pause . If you go back to the old period, expectations were in the expectations. Were a long way from there. When the earnings expectations get along to 4 to 6 i think a marginal safety is still small. Theres a tremendous amount of cash out there. Theres a tremendous amount of activity takes place. And those engaging with boards of directors are making the markets safer for everyone. Its prevent b large things from happening. Thats a really interesting perspective. This time is different though . I dont know if this time is different, but we think of the ceos where they have been the chief allocators of the firm. More like 8 we think it prevents bad things from happening. Most wake up trying to build bigger companies, not smaller companies. With the activists out there, theyre forcing the boards to focus a lot on the current mix of assets. Focus opposed to diversification. I think that makes the environment better for all. It prevents, so to speak. All right. We want to thank you both for coming in today. Thanks. The year was 1988. The big winner was rainman. It was a year where both bob hope and lucille ball were in attendance and both got standing ovations. And one notable change introduced and the oscar goes to. And they said thats why . Rather than the winner is. But now im reading this is in 2010 they might have brought it back. I like it better. I mean its like just say it. We call them oscar winners. Youre winning it. Does everything got to be we just have to walk so why . Because the implication is that a everybody else is a loser . I guess. Remember Marlon Brando . He didnt accept one. He accepted his first one and loved it. But his second one, he sent a woman to receive it and then somebody else did that. I cant remember. Anyway coming up media earnings on tap this week. What a soap box it is for these people to get up on top of every year. Oh god. Including dish network out earlier today. Comcast and cable vision, also were going to talk media stocks. U. S. Officials warning now, this is disturbing about new vigilance after new Terror Threats against malls. Weve worried about this for years. More details at 7 30 eastern. And well be joined by labor secretary perez. He helped negotiate the deal to get the west coast ports back to business. Plus the rundown of the winners a run down of those who got oscars and who didnt because theyre all winners in hollywood at last nights oscars. I gist figured out why you care about this. Because the first segment you ever did welcome back to squawk box. The futures right now have been down and theyre still down. Down about 47 points on the dow. The s p down 4. 75 indicated there and the techheavy nasdaq indicated down 3. 65. Every time i say it. And were watching shares of dish network this morning. Ceo joe clayton is retiring at the end of march. He will be replaced by dish cofounder and chairman charles ergen. Who had served as ceo until 2011. Providing Fourth Quarter earnings this morning including cable vision liberty media, and comcast. Here with a look ahead to what to expect is craig moffit. Good morning. Morning. You have basically decided that all of these companies are a downgrade, worthless except for comcast as it happened. Maybe thats why hes here this morning. Dont overstate it. The stocks have actually done really well. And but you have a sell on cable vision. I had a sell on cable vision already. And a sell on dish in a big way now. Yes. So whats happened . Is it tom wheeler . For the cable guys yes. This is a question for the cable guys of how much Pricing Power do you have left in broadband and will you be allowed to use it . You can claim lets separate Net Neutrality from the mechanism for Net Neutrality. Theres nothing wrong with Net Neutrality. The issue is the mechanism for having the Enforcement Authority for Net Neutrality is title two, title two is effectively imposing the 1934 Communications Act which is a price regulation act. And you can say youre forebearing from some of the pricing regulations, but you cant protect that an act that is fundamentally about price regulation doesnt at least introduce some risk of price regulation into the business. Explain this. You think dish is worth 47. Heres the problem with dish. Dishs valuation isnt about its core business anymore. People will yawn when they see this mornings quarterly results. No one cares. Dish is only about whats the spectrum its worth that it owns. And the thing is you can use spectrums comps from the block buster auction. But if youre going to use comps, youre assuming they can sell the spectrum. Any other scenario where you use it or where you lease it or do something other than simply sell it and you have to replace the comps with the valuation of something wait a second. Why wouldnt it be valued based on these new options regardless of what happens to it . You own an asset that is much more valuable than five years ago. Tell that to wireless companies. Tmobile is valued at far less than the spectrum. As a going concern, argue theyre worth less than nothing. Could tmobile turn around and sell that spectrum if they were to just close shop . No. See, the challenge is thats a concept that goes along with chapter 7 liquidations. You do chapter 11 restructurings. And the spectrum continues to be used for a business. You can if tmobile was bought by somebody, though could that be an asset they could then be use snd. Who would buy them . So theyre out at luck. But it creates a paradox, right . It cant be sustainably true that the spectrum is worth more not used. You say you like comcast. 60 is your target. Its almost 60 right now. So youre not really out on a limb here. We downgraded comcast and Time Warner Cable and charter last week to 60 we already had a 60 target price. It got there. We said in this environment to raise a target price you have to believe that earnings on the street are too low or theres going to be a multiple expansion. Are you now betting that theTime Warner Cable deal happens, doesnt happen happens with so many limitations . We lowered our probability from 70 to 60. 70 was your handicap. Where we were last time. We lowered it last week to 60 . We understand that 60 means more likely than not. But not much more. We get that. Its only 10 more than 50. And if anyone thinks they can put a fine point on it and say its not 60 now its 58. Let me look i think a fine going from 70 to 60. Are you sure its 60 now and not 70 . Youre right. All you can say is that the probability is falling. And the probability is falling in part because if you read the tea leaves including in the title two reclassification its pretty clear that this is a relatively anticable washington. Does the regulatory structure overall change your opinion on a lot of the names in your space just from the department of justice to sure. It changes your terminal growth expectation. Will it change again in two years if theres a Different Administration . There will be a Different Administration whether its a republican or democrat. If the rules are rewritten, sure. Weve got a Republican Congress right now and its become clear that the congress is not going to step in and try to change this process. And so possibly another fcc down the road will change the process. But once these things are written, theyre hard to change. Remember, these rules have been around since 1934. Theyre still here. Thank you for coming in. Thank you. 70 to 60 . Yeah. Last week right . Yes. When do you think this happens if it happens . April, probably. April is your month. Is comcast changing . They havent changed from that have they . A matter of weeks. I think they extended the available time theyve got to do it to august saying lets take that off the table and the government will do it when the government does it. Thank you. Great to see you. When we come back this morning, the cdc director imposing new vaccines. Then u. S. Labor secretary tom perez will join us on the deal to get west coast ports back to business. Stick around. Squawk box will be right back. Over the next 40 years the United States population is going to grow by over 90 Million People and almost all the growth is going to be in cities. Whats the healthiest and best way for them to grow so that they really become cauldrons of prosperity and cities of opportunity . 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During the mercedesbenz certified preowned sales event now through march 2nd, youll get complimentary prepaid maintenance and receive your first two months payments on us. Only at your authorized mercedesbenz dealer. Welcome back everybody. Cdc director tom frieden out with an oped in usa today today. He outlines the dangers of measles and urges to get vaccinations. For parents who choose not to vaccinate because of nonmedical reasons, he wants to have a meeting and have them renew that process every year. Okay. Coming up the terrorist threat across shopping malls. Were going to talk about it when we return. And negotiators striking a deal to avoid further costly port shutdown os then west coast. Weve got u. S. Labor secretary tom perez. He helped mediate those talks. Hell join us after the break. Tdd 18003452550 [ male announcer ] your love for trading never stops tdd 18003452550 even on the go. 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Com wireless to learn more. Welcome back to squawk box, everybody. In our headlines this morning, Goldman Sachs raising the top end of its range of legal losses to about 3 billion. A winter storm bringing ice to texas. Dallas has canceled more than half of todays airline schedule. And it will cost you a little more to get into the magic kingdom. Price hikes at disney parks took effect yesterday. One ticket will cost 99 for those over six years old. And a one day pass to diss e disneyland in florida is up. Weve got a couple minutes for we have the secretary sit down. You didnt see any of the l. A. Open yesterday, did you . No. I watched about 60 seconds of it. The winner, the greatest guy in the world, his name is james hahn. Was my partner last year. The great young this guy he was your partner last year at at t pebble beach. Yeah. He went to berkeley. Got in advertising for years and years. And then he was selling shoes in nordstrom. And he said he had 300 bucks and said im going to give it one more shot at the pga tour. And he won the l. A. Open yesterday. Wow. Congratulations to him. I brought that up because from now on its going to be and the green jacket goes to for the winner. Theres going to be no win per. I figured out why youre obsessed with this. The winners and losers. The first thing you did on television was winners and losers. Andrew found out that in 2010 they rehearsed they went back to it. But then they didnt do it during the show. They chickened out. Even elerian wrote in and said in greece right now theyre saying and the agreement goes to. Theyre not saying either side is actually because theyre afraid to say someone won. Thats a good point. Theres your winners and losers. There are winners and losers. Im sorry. You cant cushion everything in life with this politically correct language can you . Probably not. But we still have that. Well see if secretary perez will tell us who won out there. Whether it was labor or management. The secretary of oh you get to this first. Lets tell you quickly the u. S. Secretary of security is urge ing urging kristen, this is a frightening story. Incredibly frightening, becky. Thats right. But weve been talking to shoppers here. They say theyre not going to let this terrorist threat to stop them from living their lives, from shopping at the mall of america. One of the busiest malls in the entire country. Law enforcement officials saying people should go shopping. Still they are calling for extra individual lens. We know there is extra security here at the mall of america. It is important to underscore the fact that the fbi is saying theres no known credible threat. This was a video released by al shabaab. Its really like a propaganda video video, a call to action, if you will. This is the group that claimed responsibility for the 2013 attack in the mall in nairobi, kenya, which claimed more than 60 lives. So al shabaab references that attack in this latest video. Theyre essentially trying to get lone wolf actors on board to carry out similar attacks. Certainly disconcerting, but no known credible threat. The question why here . One reason is that al shabaab has been recruiting westerners heavily including minneapolis nap is a city that has a large somali population. So that has been a pressing concern for Law Enforcement officials here in the minneapolis area to start with. So this only heightens that concern. This all going on against the backdrop of congress which is locked in a bitter battle over how to fund dhs if congress cant resolve it. Many operations will run out of money on friday. So thats another concern as Law Enforcement officials at this federal state and local lovl continue to investigate and monitor this new threat. Back to you. Okay kristen. Thank you. Were ready now with secretary perez. 29 west coast ports resumed full operation this weekend after a ninemonth slowdown. Dock workers and employers reached an agreement. Secretary tom perez was at the center of the negotiations at the request of the white house. He joins us now. Its interesting the way these things work. I think you told them if this doesnt happen if we cant figure this out, were going to move negotiations back to washington. No one wanted to do that did they . For some reason some people just dont like coming to washington, d. C. I just dont get that. I i look at how you did a great job with this but it doesnt seem they were that for apart. They wanted to be able to fire arbitrators in the grievance proceedings. And instead of a single arbitrator, you got it now its a panel to hear grievances. Do we know for sure that the union rank and file are going to give a thumbs up to this . When do they vote . April . They vote i believe, in the next 30 to 45 days. I can tell you that the committee that represented in the negotiation which was about 25 people unanimously came to the conclusion this is a good deal. I think thats a good start. I have all the confidence in the world when the rank and file take a look at this we will see that this is a good package for them and that they should move forward. The dock workers at this point i dont know a lot about it. They average 50 an hour pretty good health care. 35,000 a year is what it costs employers per worker. Is this an example of wages that havent risen enough . One of the things that we talk about a lot. This wouldnt be addressed by the minimum wage but i mean did the union did they prevail and should they prevail in this case . Do you think management is already offering enough . Well i think this is the case study in how both sides compromised and both sides got a deal that i think works for them. Long shore work is hard work. Terribly hard. Dangerous. Its very important work. I think its important in our country for there to be opportunities for blue collar laborers to punch their ticket to the middle class. And the long shoremen out on the west coast, east coast and many of the ports down in texas and elsewhere, they do very very important work. Our international trade, our exports and imports are so dependent on their talents. And so thats why im very pleased that we were able to help facilitate the full operation of those west coast ports. Because as i said to them last week you know this is theres just so much collateral damage. And the Ripple Effect of this conflict was reaching far beyond the ports of the west coast. It was being felt by farmers in the midwest, by Small Business owners, Large Business owners, retailers and others with whom i spoke who were trying to do their jobs. And take advantage of this tail wind that is the u. S. Economy. And so im heartened that both sides were able to come to closure last week. And that the ports are once again fully operational. You know mr. Secretary, im not sure you know, how to address some of the problems with income disparity in this country, but how would you what would you attribute the decline of private sector unions to . And i know you know that wisconsin which is thought of as one of the almost a state where a lot of Ground Breaking Union Organizing was initially done, they may go right to work this week. Yeah. I was saddened to hear that because i wasthere was a proud history of ensuring workers had voice. And this agreement reached in the port context and the fact that long shoremen on the west coast and the east coast who do very, very hard work are able to earn middle class income. That is an example of collective bargaining at work. And when workers have the ability to engage in collective bargaining and when workers generally have a more meaningful voice in the workplace, that not only works for the worker but works for the employer. We live in a world where there are too many false choices being made today. I either take care of my shareholder or i take care of my worker. But i cant do both. Ive met so many Business Owners who reject that false choice and understand that we should be living in a stake holder economy where you can take care of your shareholder, workers, and customers. And you can thrive. I can give dpamplexamples in every Business World where including their workers and giving them a meaningful voice and good benefits is part of a cycle that creates win win opportunities. Right to work doesnt prevent unionizing at all. It just doesnt make mandatory contributions by every person in the union. Doesnt make that mandatory. It just you can either agree to pay or not agree to pay. What has been the history of right to work states in terms of Economic Performance as well . Ive at least seen it written that sometimes they appear to do a little bit better. It often ends up turning into the right to work for less. Id sure rather work at the ford plant in louisville than the nissan plant in one of the other states in the south where they have longterm, quote, unquote temporary workers who god forbid they get injured on the job because their security is limited. And when you do that to workers and when you dont give them meaningful voice and fair wages and access to opportunity, i think it creates a very toxic environment. And thats not who we are as a nation. We can do well and do good. Again, i meet so many Business Owners. I was at the Duke Business School a week before last having this precise conversation. How do you create a true stake holder economy where businesses across sectors understand that you can, indeed take care of your workers and your shareholders and customers and do it well. Thats the world we live in. Thats the world we should be living in. And all too frequently were getting caught up in this vortex of zero sum politics. And zero sum economics where i either benefit or you benefit. And, you know the job creation is a joint venture between Business Owners and workers because if you dont have money in your pocket you dont spend it. And then businesses cant grow. Consumption is the principle driver of gdp growth. When workers dont have a decent wage, they cant spend. Thats why people like henry ford over a hundred years ago doubled the wages of people on the assembly line. Because he had a terrible attrition problem, and he understood that the people who made his products ought to be able to buy his products. That seems market based. He did that for a reason though. It wasnt i just dont its hard for people that arent experts in this to see how giving an employee the right to make his own choice on whether he joins a union or make his own choice on whether he pays dues doesnt seem like forcing everyone to do it almost seems like youre removing individual freedom from that person. Thats the freedom to be a free rider, i guess. I see unions working hard to negotiate benefits. And you have them in these situations the free rider gets to take advantage of all the benefits that the union member and Union Leaders negotiate. But that strikes me as unfair. Also you look at i mean almost 100 of Union Contributions when they do find their way into the political landscape, they go to the one side. Right . And lets say youre a union worker that doesnt want to support that side. What do you do there . Again, id like that to be the only problem in the situation. But, you know what we have now is a situation where Home Health Workers are fighting for the right to make a decent wage opposed to much of the back breaking work alone. Its might be possible to get them after that. When you price fix, we know how supply and demand works. You know, the biggest challenge in the Home Health Industry is they have a worker shortage. The reason they have a worker shortage is i met a Home Health Worker that quit. Because she got a promotion wagewise by going to work at a fast food restaurant. Thats not exactly a good story. We need 4 growth and we can solve all these things. Thats what we should shoot for. A lot of things would solve themselves. Mr. Secretary, we appreciate your time today. And nice work on the port deal. Thatll help everyone. Thank you. You have a good week. You too. Were going to talk more about the port deal at the top of the hour with the ceo of the port of long beach. Coming up it was a big night for hollywood at the oscars. Putting best picture, director and best original screen play. Julia boorstin will join us with a rundown of the or big winners. Were back in a moment. Hollywood celebrating hollywood at last nights oscars. Julia boorstin joins us from l. A. With a close look at the winners and losers. Julia in. Well there were a few really big surprises last night. Then biggest upset was the decisive win between the front runners boyhood and birdman. Boyhood took home just one oscar. The other big surprise for the audience, lady gaga performing a tribute to the sound of music. It was the most tweeted about moment of the night. Now, ratings will show how the political messages were brought up. Birdmans director spoke out about immigration policy. Patricia arquette called for wage equality. And john legend and common they spoke out on race issues. The other question is whether facebook and twitter chatter about those speeches and other things helped compensate for the fact that this years nominees were the lowest grossing group of films in years. Meaning the audience wasnt as invested in the awards. Low ratings would be a disappointment for abc as well as advertisers. Before you go, we need gossip about who you saw, what was said, what they were wearing. All this kind of stuff. Everyone was there. No one had time to change from the awards show. But everyone was there and people were really impressed especially with the musical numbers. They loved the selma number and the lego movie number. They thought that movie had gotten snubbed not being nominated for best animated film. But they liked that musical number. It was a really fun night, high energy. Everyone there seemed to have a great time. You liked whiplash did you . My husband was a producer on it. So the first time i had skin in the game. It was a lot of fun to see that little tiny film win three awards. But its a perfect example of how the films that did well at the oscars were not Big Box Office hits. Whiplash, small film small box office so far. But did bring home three awards last night. Congratulations. And thank you for staying up all night for us. Get some sleep. For more on last nights winners and losers were joined by the editor in chief of hollywood life. Com. The question we keep asking is many of these films are small niche films, do they get a wider exposure and do more people go out and watch them either on dvd or vod or whatever . More people will watch them now. I dont know if theyll get larger exposure in main theaters. However, they will do better. But as you say theyre small films, niche films, so theyre never going to be 300 million films like american sniper which got totally snubbed. Do you think that hollywood likes to now snub the big film . That they have to go on the sort of niche artsy film . I dont think they have to. Often they reward success. Think a few years back with avatar. It was a huge Huge Box Office hit and it won bigtime. Right. What did you make of the joan rivers snub . Everybody on twitter has been talking about it. In the memoriam where they celebrate the lives, joan rivers not suggested at all. She was on the red carpet for many years. That was a huge snub. And in fact we noticed it immediately. We couldnt believe it. She is a hollywood icon. Shes an oscars icon. She created the red carpet. Do people dislike or usually with this it turns out when somebody has been snubbed noticeably that they just forgot. It was a mistake. It was so weird omission. I cant believe that they would purposely snub joan. So you think it was a mistake . You dont think they could have possibly actually thought that they were i dont think she thought it was a mistake. It had to be intentional. They do this every year. Theres always somebody they forget to include. Shes so nice about this. Shes very politically incorrect, joan. But it was a politically incorrect night. Look at neil patrick harris. He opened up the doors to being incorrect in his opening monologue. He dissed the academy for being the best and the whitest. That sounds totally politically correct to me this year. Thats the joke. It was factually correct, but he was up there dissing the academy. Where does he rank in your mind as a host of one of these events . Hes done very well with the tonys. I thought he was great. Yeah . Yes. Hes doing a new show right . Is it on nbc . Is that where it is . I dont know hes on broadway. Hes going to have a new sort of entertainment show. Like a weekly sort of thats right, yes. He is. I think he did a terrific job. Im not quite sure i would say that he was as tenplus as ellen was last year. He didnt have one of those giant selfie moments, but he did lose his clothes. Thats pretty close. No clothes on. No body fat. He walked out in his underwear. Biggest winner biggest loser for you . Fashion, jennifer lopez. Biggest winner. Incredible. Who was she wearing . Ellie saab. She looked like a sexy cinderella. Ive got to say lady gaga too. Another winner. Huge. Okay. Give us the biggest loser then weve got to roll. Biggest loser was american sniper that it was just locked out. All right. Zero dark thirty won at the globes, right . Jessica chastain won best actress. Did it win best picture . Got totally stiffed at the oscars oscars. You cant win with a movie thats prowar. Right. I thought it was a great film. Thank you for coming in this morning. Appreciate it. Thank you. When we come back this morning, the stocks you should be watching to start the trading week, that is next. And later with u. S. Equities in record territory, well ask tom lee how long this will last. Stick around. Squawk box will be right back. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts mean your peace of mind. Now you can get the works, a multipoint inspection with a Synthetic Blend Oil change tire rotation, Brake Inspection and more. 29. 95 or less. Now with the xfinity tv go app, you can watch live tv anytime. Its never been easier with so Many Networks all in one place. Get live tv whenever you want. The xfinity tv go app. Now with live tv on the go. Enjoy over wifi or on Verizon Wireless 4g lte. Plus enjoy special savings when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more. Coming up the port deal thats getting shippers back to business. Were going to talk to the ceo of long beach port. And some deal news as we head to a break. Valley pharmaceuticals is buying drug maker Salix Pharmaceuticals for 158 a share in cash. Were back in a moment. I really admire my mother. 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A log jam of goods could remain for months president the ceo of the ports of long beach joins us to discuss the deal. A deal for the financial lifeline in the works. But more instability and structural reform could be an issue. Muhammad al erian will join us. Plus bringing back the dead. Steve leismans interview with bob wier as the band gets ready this summer. Can you get me and three or four of my friends in for the show . Everybody has to be there. As the final stretch of this long, strange trip begins right now. Welcome back to squawk box. We are about 90 minutes from the opening bell on wall street. Look at the futures right now. Dow futures down by about 50 points. S p futures off 4 points. And the nasdaq just over 2 points. If you watched the early action in europe this morning, the cac is slightly higher. The dax is slightly higher as well. Its up by about a third of a percent. Ftse is down by just as much. Although it looks like there is at least some pushing off of the problems in greece at this point. Not a solution but nowhere near where we thought we might be in the middle of last week. The dow hitting its first record close for 2015 on friday. The s p 500 did the same thing for the third time. And the nasdaq is now less than 50 points away from that key 5,000 level. Lets look at some of the recent standouts. Dom chu joins us now with more. Good morning, becky. What were looking at here the dow and s p 500 both hitting record highs. But they werent the only indices to do so. If you look at the s p 500 and the dow, also the russell 2,000 and mid cap index, all are posting gains good enough to put them in the market highs on the close. So lets look into some of the sector drivers happening with the market. If you look at some of the big winners here material stocks and Health Care Stocks have been some of the big drivers for the s p 500 gains. Again, not stellar to start the year, but still positive enough. 7 , 5 gains here. Then the notable drags, the bank stocks down 1 . And utility stocks which led last year are the noticeable laggards. Utilities down about 4 . Thats an Interest Rate sensitive sector. Those prices start to fall. And then well take a look at just this nasdaq 5,000 number here. Because we are just like you said a stones throw from the mild stone here. Almost near record highs. If you look am some of the Big Companies driving those gains, its biogen idec. Its up 20 so far year to day. Its got a 92 billion market cap. Amazon. Com up 23 . Its a 178 billion company. But again apple is the real driver here. Its up 17 . Not as much as these guys but when youre worth 750 billion, you tend to move markets. So those, andrew are the stocks that will be driving the nasdaq. Well see if they continue towards the record highs. Thank you, dom. Lets tell you about other big headlines were looking at at this hour. Oil prices dropping sharply this hour. Analysts pointing to questions about oversupply in the u. S. Crude stock set to build through may. Also despite that drop in crude, gas prices jumping 13 cents in the past two weeks. And 26 cents in the last month. The lundberg survey putting the average price now at 2. 33. Also a new report warning this morning that a third of americans are living at risk of a financial crisis. Bank rates saying 24 of consumers have more Credit Card Debt than emergency savings. I dont know if thats a big surprise. I wouldnt imagine. Its troubling. A few stocks on the move this morning, ocwen. It doesnt sound good. Jumping in premarket trading. It came with a deal to sell servicing rights to nation star mortgage. How much better is nation star than ocwen . Once you have the new company and you call it that initially just for awhile isnt thattemporary . Dont you come up with something . Tryied it. Everything is taken though. Exxon had to put the xs together. And report out of australia says discovery has been in takeover talking with 20th century fox. People talk about how valuable discovery is to a bigger player at this point. Well see. A fox Spokesman Says this is absolutely not true. So take it for what its worth. Earlier on squawk box this morning, tom perez gave his high praise to the tentative agreement in the west coast port dispute. The committee that represented the union in the negotiation which was about 25 people unanimously came to the conclusion that this was a good deal. So i think thats a good start. And i have all the confidence in the world that when the rank and file take a look at this they will see that this a good package for them and that they should move forward. The ceo of the port of long beach joins us now with reaction on the deal and what it means. John, how quickly are things going to get back to business . Its not going to be fast. Its going to take us a couple months to dig out. We were at full strength saturday night and yesterday. Were going to stay at it until this backlog is cleared. You say several months. Is that three months . Is that two months . How are you counting . I think its going to be progressively improved and back to normal within two months. And are there Certain Companies that are going to get to jump the line on the way out . How does this work . Well you know its an amazing congestion problem. Its Epic Proportions from our perspective. Were doing everything we can to line truckers the rail side and provide additional physical capacity Additional Real Estate to make it possible to Start Storing and restaging these containers to get them off the port as quickly as possible. So its a concerted effort. I dont know if theres going to be any particular priorities. How does it work . I assume every company is saying youre back in business now youve got to get my stuff off the boat right this second. I assume theres going to be some kind of negotiation going on, no . Well these are agreements between the ocean carriers and the cargo owners themselves. And so whatever priorities they apply, we will fulfill. Joe had been going over some of the numbers on how much folks in the port are paid. And i dont have the source of all these numbers, but he was saying that the average worker joe, i dont know if you have it with you gets paid 142,000 and then another 82,000 in benefits. Is that true . Fulltime workers. Plus 82,000 is what it costs for the benefits for the employer. Is that right . If youre asking me thats an inflated number. Obviously what they actually get in their paycheck is substantially less. But the fully burdened cost of having a worker is probably in that ballpark. And what gets what do they get in their paycheck . I dont know. Im not a long shoreman. I dont receive that paycheck. I think theres go ahead. Go ahead. No go ahead. I was just going to ask you, we saw this situation back in 2002 where there was a tenday lockout. We know this took an awful long time to get both sides to reach an agreement. And i just wonder how long this sets things up at this point. Will we see problems like this in the future . What are the next five to ten years look like . Well were hoping not. Were number one, extremely grateful to secretary perez because it made the difference b. The fact of the market is its a good agreement. Its a fiveyear agreement so it gives us some stability. Also the fact of the matter is there were a number of issues addressed in this contract that wont be issues next time. So im hoping we have some good solid progress and labor piece here for the foreseeable future. Jon, thank you for joining us this morning. You bet. Coming up were going to talk about janet yellen on the hill this week. Hinting on when the central bank might hike rates. Then later will greece ever repay its debt . Were going to discuss with mohammed elerian. And we have exclusive sound from bob wier. And then jim cramer from the New York Stock Exchange on what to watch at the opening bell. Squawk box returns in just a moment. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. U im type e. My golden years will not just be gold plated. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. Is. Investors will be lpgistening for clues as to when the fed may start raising rates when janet yellen starts this week. Tom lee is here and so is Steve Leisman who is also a deadhead. Thats why we were talking about bowls. The ones you ski in. After you smoke a bowl on the way up. I dont know about that. If i were doing it it would have been legal. Because its legal in colorado. It is legal. Tom, you are still really bullish. I saw in your notes. Thats right. And i dont think 8 to 10 i dont call that really bullish. You think well be better than the high Single Digits this year . I think double digits sounds right from here into the end of the year. I think the opportunity is really finding some sectors. I think this is the year you really see sectors pull away. Whether its tech or consumer, i think some of these groups are going to make much bigger than that. I feel its good for investors. No kidding. 8 to 10 is not bullish when the riskfree oneyear rate is. 5 . Thats pretty bullish. Really bullish. Okay. Im saying relative to the riskfree oneyear rate, ill take it if i can get that. You cant. Sorry. I agree. I think relative is a good word. When i speak to clients i think clients are a lot more cautious still. They still see a lot of potential risks out there. I think in their minds theyd be happy with a single digit gain in markets. I dont know whether given that its tripled or whatever from lows i dont know if its worth it to stay around for 5 . Thats what im saying. Theres always a black swan event. What does that mean . Cash out and keep it in cash . I dont know. I want three straight years of 30 plus like in the 90s. Weve had how much in the past two years total . 40 maybe . Yeah. Last year was more modest. 2013 was great. 30 . And joe, i wouldnt rule out in the next three years we people arent talking about the stock market. Theyre not the millennials are not buying stocks yet, are they . Theyre not flocking to individual names. But they buy mutual funds and things like that. Well see when the millennials get on the dial and start watching. Im sure theyre not talking about the 30year bond. That doesnt help either. Or spreads between different places. What . I was just wondering first of all, i think the Fourth Quarter had better earnings that people expected. Youre going to do 4 i read the other night. People thought it was going to be are you looking for 8 to 10 in context of negative Earnings Growth . People have really cut numbers. Part of it is cuts with energy. Energys seen cuts but nobodys made it of lower energy. I think youll see earnings estimates rise. Cant you say lower earnings . I know. When i said that i said kernens going to hit me. Its the opposite of what i meant. Right. Single best idea. I brought along a chart, joe. When are they going up . What do you say . I think its a september possibility. I think it could be off year. Heres the keyword search im saying for yellen tomorrow. Listen for the word patience. Listen for this midyear thing. The way she got around that was she said most of the people on the fomcc as the middle of the year. Im not sure thats the case. And listen when she talks about inflation which im sure shes going to say is too low. And listen for the labor market being strong and wages being strong. Its a big deal if she takes that off the table. I think theyre trying to get away from any calendar time reference at this point. They tried to but i thought a bit aukwkwardly in the fact they took out and then said patience. The only other thing i want to show you are the fed futures for 2015. Which is gauging one way of what the market expects. They take about a quarter point off expectation this year. They were at 75 now theyre at 52 bips. And thats up more than where we were the beginning of the month. Bottom line on this is two quarter point hikes this year maybe. Thats what theyve done. They dialed out a third one. All right. Michael stocker is 21 and hes been watching for us two years. Take it easy on the millennials. If youre a millennial and youre watching with if you write in ill mention your name. Im going to do is grassroots thing. Tell your friends. Call you know ten people. Call them. Tell them to watch. Only squawk box, by the way. And then have them call ten people. What do you think, tom . Youre a millennial. He looks like a young man. Im a couple generations past millennial. But when youre young and your opportunity to grow your money youre going to live forever. You can do whatever you want, right . Getting ownership to businesses is going to grow. How else are they going to find out . Do it now when youre young because if its sitting there 20 years, 30 years, it compounds. Plus you want all your little apps that cost money. You want your little iphone. Im not a millennial anymore. And you send joe money when he retires. Youre not retiring . Im never retiring. Never retiring . No. I will never be able to retire. Andy rooney. Mike wallace. All the way. Exactly. They will put a ramp in here to get up on the set. For my skateboard maybe. Good comeback. All right, tom. Youve been right far long time. And here you are again. Because low Interest Rates, low inflation, 5 unemployment best neighborhood in the whole world in terms of growth. All these things, it should have been obvious to us. But we worry all the time and wring our hands. Were at zero Interest Rates, right . Its bullish that people arent that bullish about equity markets. Near the top you dont expect people to be so cautious. Only two years left. Im kidding. Anyway, still to come thank you, tom lee. Still to come on squawk box, allianzs mohammed elerian will be with us. Here we go. Now we got some good music. Dont play touch of gray. Play something cool. Yeah. You impress me, joe. Thats at 8 30 eastern. Then then the gd the grateful dead will be marking its 50th anniversary this year. We should either do that its the new 30 isnt it . All living members in one place playing together. Something they havent done since jerry died in 1995. Bob wier sat down with Steve Leisman to talk about the band the show and the money involved. The money is huge. Its unbelievable, the nurnl numbers i got. And it should be. The numbers in the Economic Impact on chicago of these three shows, massive. Ive got cool numbers. It was very controversial and i asked about it. Well be right back. Im looking forward to. For some every dollar is earned with sweat, sacrifice, courage. Which is why usaa is honored to help our members with everything from investing for retirement to saving for college. Our commitment to current and former military members and their families is without equal. Start investing with as little as fifty dollars. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. Say youre a finance guy. A farmer. A researcher. You used to depend on experience. The internet. Your gut. Today you can use ibm watson analytics. It can make sense of all kinds of data. Uncover hidden correlations and new opportunities. And give recommendations with more confidence on who will buy. What to make. Where to plant. Which helps you make smarter decisions. Theres a new way to work and its made with ibm. The future of the market is never clear. But at t. Rowe price we can help guide your retirement savings. Our experience is one reason 100 of our Retirement Funds beat their 10year lipper averages. So wherever your longterm goals take you we can help you feel confident. Request a prospectus or summary prospectus with Investment Information, risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to squawk box, everyone. Weve been watching oil prices this morning. Right now it looks like wti is down by even more. Its down almost 4 . A drop of close to 2 to 48. 85 from wti. Dont do these stocks. We dont need this. We need to mention these millennials. Willie lee morgan teddy vallen andrew. Not me. Somebody else. Roger atwood. Arlene ostrate. And maiichaelmichael. If you tweet them, were going to do them. Maybe we can start scrolling. Tell your friends, please. Tell your friends. Watch between just 6 00 and 9 00. Im going to get in trouble for saying that, arent i . You are. Now lets get to Valeant Pharmaceuticals buying drug maker maker salix for about 10. 1 billion. Also boeing down graided. The firm saying the jet maker is the most at risk. And palmolive. Also we should mention hsbc cutting the states target for returns on equities to 10 . Anybody else . Oh my god. So many. Patrick says im aly millennial. Keep working on andrew some day hell graduate. Yeah graduate to conservatism. Kid in his 20s figured it out. And paul weaver. I created an a monster. An amazing rescue in sri lanka. A tourist fell 180 feet off a cliff. It says he fell but he was on his honeymoon. And he supposedly fell while taking pictures of his new bride. They were visiting a tourist attraction called worlds end. And it wasnt his worlds end. Unbelievable. Also tell you the weather is always a topic of conversation this time of year. What does getting nearly 12 inches of snow in a matter of 11 hours look like . Take a look. A man took this video with his ipad between 9 00 a. M. And 8 00 p. M. On saturday. Time lapsed video showing how fast the snow can pile up as a 12 inch wine bottle quickly disappears in the snowfall. And there you have it. I think it might even go to the top if we show it long enough. But lets tell you about another story as well. Winter weather can be dangerous. Our next story is one example of why a philadelphia building nicknamed the ice palace is starting to thaw. Now nearby residents are concerned for their safety. Six days ago the building went up in flames and water from fire hoses quickly froze in the bitter cold. The shell of the building is encased in ice. The people are worried thats the only thing thats preventing a collapse. Officials say the owner is tearing it down. Greece may have struck a deal on its dead but mohammed elerian will speak to us about it after the break. As we head to that break, take a look at u. S. Equity futures at this hour. Dow down about 49 points. Were back in a moment. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your 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. Military, certain habits may be hard to shake. For reintegration and adjustment issues big, small and everything in between, visit easter seals dixon center. Org. Jo nes. Zero, three, two, six. Here to make a deposit. [bell chime] ting welcome back to squawk box. Heres whats making headlines this mornings. Fresh data on the Housing Market coming later this morning. Its the first of a number of housing related reports were going to get this week included new home sales pending home sales and price report. Also interim ceo has been in for clarence otis. And tissue networks ceoergen is returning atz chief executive office. Greeces government trying to secure a financial lifeline from the eurozone. Meantime political tensions remain high there. Michelle carusocabrera is back and she has more with the latest on whats been happening. When we left off friday they had secured an agreement in principle, but grease had some big key tests they had to chief today in order for the deal to move forward. Today greece must submit is list of reforms they would like to do and they have to see whether or not its going to meet approval from what are now called the institutions. When in the old days we would call the troika the imf, the European Central bank. But that phrase is so hated in greece, its now referred to as the institutions. If this list is met with approval, there will be votes across europe for the rest of the week which means the deal could go forward. What we think will be on the list is much more aggressive promises but less likely to focus on things like cutting pensions and government workers. So theres going to be conflict there. Lets see how it goes. So far the German Government says that tomorrow theres going to be a teleconference. This is really inside baseball. But a teleconference is important. Because if they thought the list was going to be a fillailure, then theyd have to start at square one again. Right now the signaling looks okay. What happens . I know you pointed out before there is a deadline here. They have to be voted on by parliaments by the end of the week. Saturday is the expiration of the deal. But if they put out this list and it doesnt pasts muster is there going to be a scram snbl. Yes. Then they discuss whats on the list et cetera. Look. The bottom line the reason we care so much about deadlines is that would be debilitating. As long as its in the process of negotiating something that probably looks okay. They are trying to sell this very much as a big win. This is what the finance minister said on friday. As of today, were beginning to be coauthors of our destiny. Coauthors of the reform we want to implement which we are going to dictate. Which we will discuss with our partners. So lets see how it all goes. The way greek debt is acting the markets are optimistic at this point. But we really have to wait and see the next 24 48 hours how it goes. Thank you. For more on greece and whats happening in the markets, Mohamed Elerian joins us. And michelle and i talked about this earlier. While the germans arent exactly Walking Around thumping their chests on this it sounds to me like the greeks have competely capitulated. Mostly capitulated, i would say, becky. They got something out of it which is more flexibility towards a surplus. But basically germany got much more than what greece got. So do you think this is something that passes muster with german with greek voters . Are they going to say okay they just voted in this new party on the promise that things would be very different this time around. So it could, because you need a building block. You need some confidence building. Things have gotten so bad. Personality clashes, very different narratives that you needed something to allow people to come together. Now, were going to have three major steps. The first one which i think passes without major drama is the list that michelle spoke about. The greeks will propose a list and i suspect that will be accepted. The second one with more drama will be the national parliaments. Youre going to have two very different views as to what happened on friday. One parliament is all it takes to reject this. But i think we get through it. But the major issue hasnt been solved. That is we need a fundamentalal recast of austerity, Structural Reforms, and debt relief. A bit lest austerity, a lot more reform. And they are still miles from agreeing on that. Mohamed, ive been kind of surprised about how many years weve been talking about this, how many years weve been talking about the need for structural reform. This whole thing was to buy us time to do that. And it hasnt been touched to this point. What makes you think this next go around will be more successful . I think because the threat is much more credible. The reason they needed to buy time is because the overall structure, the construct of the eurozone wasnt Strong Enough to withstand an exit. Today arguably is much stronger. And it would withstand. There was time to strengthen the construct. And now the threat is much more credible. That is why greece ultimately stepped down. That is why as you started this segment, at the end of the day they got less. Mohamed, do you think greece is going to do the Structural Reforms everybody is talking about about making that economy actually function far better than it currently does in order to generate tax revenue . Is this the government thats going to be able to do that . I think this government has a real chance of doing it. I think they do. I think they understand. But they also need from the other side less austerity and debt relief. The debt relief element is important because the 180 of gdp debt remember it used to be 112. Its now 180 . That level discourages new investments. Its the overhang that discourages new funds into the economy. They also need this government also needs support from europe in the form of debt relief. Mohamed, the reason weve been watching this so closely is as greece goes we assume there will be some other steps that would follow. You look at portugal ireland, spain, italy. How do we get out of this if greece comes back in line and goes along with it does that make the rest of the problems fall in line as well . Its fascinating because were seeing a realignment in terms of alliances in europe that goes across the divide. So portugal right now doesnt have much sympathy for greece. Why . Because they did the hard stuff and they dont want to see somebody else get away with less. Its not as clear as it used to be. Debtors and creditors. It speaks to a much bigger issue that National Politics are getting nasty. There is a surge of thats a serious issue. The politics are getting complicated. A time when economics is getting simpler. What does that mean when you say a rise of National Politics a rise of nationalism . Yeah. And a questioning of the traditional approach of conventional wisdom. We saw it here with the tea party after 2010. We saw hue close we got to a shutdown. We passed it now, but weve seen it here. Thats whats happening in europe. Is there a greater threat . What about the right wing parties in france who says if she gets into office the first thing shes doing is going back to the franc . Absolutely. You have it in france with the front. You have it in the uk. This issue is going to be with us for awhile. Okay. Mohamed, thank you for joining us today. Its great talking to you. Thank you. And michelle thank you. Im getting thousands now. Nielsens, theyre awful. Ive got more in the last five minutes than we get total credit for on those they know nothing. Im going to be cramer. They know nothing they know nothing anyway, i got Barnett Williams kelsey whitmer, adam bixler. The only reason i pay for cable is to watch cnbc. But i dont know about some of these. Amanda hugnkiss. Hugh jazz. Come on. Michael hunt. Stop. Up next bob wier getting ready for a reunion tour. Steve leisman looks back at 50 years of the dead from ticket prices to live music to the digital downloads. Steves interview is next. As we head to break, a look at futures this hour. Z being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Kwm back to squawk box this morning. Oil prices this morning, lets take a look. Wti crude now at 49. 16. Making headlines, the white house pushing new rules aimed at getting rid of conflicts of interest among brokers and financial retirement advisers. Focuses on practices that critics argue lead to excessive fees that eat into investment returns. And im going to consider one of you it says anchor. It must be me. Demand is fueling ticket sales for the grateful deads 50th anniversary reunion shows this summer in chicago. Steve leisman sat down with bob wier in his first extended interview since the shows were announced. Do you remember bob wier when he was, like 25 . Yeah. I actually met him back then in the 80s. How did i mean there were groupies, werent there . Bob was so handsome. Theres a documentary that was done on bobs life. He talks about doing it for the sex, not the music. He was so good looking. And his voice and everything else. This is a band thats been around for 50 years. The base player still sells out the capitol theater for extended runs. Does he do unbroken chain . He does. They have a satellite radio station. Any given night in a town near you, theres a grateful dead tribute band playing. Its very alive. Then they come along and announce these three shows. Half a million ticket request for 10,000 tickets. They could have sold this out ten times over. I had a chance to sit down with bob wier from the grateful dead. Some may say still looks pretty good. The question that every deadhead wants the answer to is what are you going to open with . Yeah. Well, weve got our best guys on it. And i think the other question everybody wants to know the answer to is you know can you get me and three or four of my friends into the show . A show like this everybody who ive ever known becomes a liability. Your family, your brothers your sisters, your aunts, uncles cousins. Everybody youve ever known has to be there or theyll die. The amount of response thats been out there, it looks like its pretty epic. How did you feel when you heard about the response to it . Well ive heard that its been pretty monstrous, yeah. Ive heard that there are hundreds of thousands of applications for tickets and stuff like that. And so well, i guess its gratifying. Are there some bittersweet feelings returning to chicago, the last place you guys played and doing it without jerry . Well see when we get there. I remember that place, but i think its had a facelift since we were in there last. So i may not recognize it. What does it tell you about what you and your colleagues created over the time span that theres this much support so far for these three concerts . It tells me maybe theyre takes us a little too seriously. We didnt certainly didnt set out to be taken seriously or anything like that. Its a little intimidating really, when people take you that seriously when they make that big a deal out of it. So you kind of got to step up and try to measure up to these enormous expectations that people have. What advice do you have for other bands starting out to have that kind of longevity, to make a career out of it . The more you love what youre doing, the longer youre going to last at it. The longer you last at it the more stuff is going to come your way. So becky during the break asked the question why dont they do more shows. I talked to the promoter last night, he said he could sell this thing out ten times over but there are no plans yet for additional shows. Yet. He did add the yet. Logistically, itd be difficult. Its late now to be booking some of the big theaters. But theres 70,000 tickets times three. One of the biggest phenomenons thats been out there in terms of a single concert run. How many dead former dead guys actually are dead . A lot more than just jerry. Jerry. Pig pen, rant. I think that may be it. Any hope for donna to come back . I dont think so. Dont make me go there. Theres this whole thing about donna. Shes doing some excellent work now back in her roots. I know her manager. Theres a threeyear period. Im sorry, i cant. There were some issues. I did ask by the way, go online and see the entire interview if interested. Theres a lot of controversy of bringing on from phish. And he said we picked the best guy. You dont like the guy we picked, come back for the 75th an verse pi. Certainly pete shapiro was nervous about being able to sell tickets. Whatever he put together with the right guy, this is an absolute phenomenon. And im being told by matt whos also a deadhead back in the production, that we got to go. How many are you going to go to . Im going to try to go to all three if i can. Ticket order. Thank you, steve. Were going to drug test you just being in the audience. No, totally clean. In the audience youre right. When we come back this morning, jim cramer joins us from the New York Stock Exchange. Well talk about the week ahead for the markets and more. And later, visiting mickey and minnie just got more expensive. Well tell you how much to expect to pay if you visit a disney theme park this year. Well be right back. Let us now get down to the New York Stock Exchange. Jim, that will live never. You know nothing when i need to. I was actually talking about nielsen. I dont know if i can get in trouble for that or not. Weve had so many millennials. A lot of them are saying squawk in the morning, mad money at night. You must get that a lot. Theyre just trying to measure i think. A lot of college kids, too. A lot of kids just graduated but they dont watch it in traditional methods. I dont know anyone whos watches it at 6 00. They watch it at some other hours. Its time shifted or watching on another device. Look, thats just the way it is. I think it can get better as the market continues to climb what people think. I mean its still a worry. I dont know if it ever will be again, but we can wait. We have time left probably. Look i think the market is making people fortunate. The fact that people arent focused enough on making money, using it always seems odd to me but maybe they come back when we take out every single level and thats when theyre excited and that will be too late. Yeah then that will be too late. What else have you seen today . Well i think this is amazing. They just blew the numbers out. Its a drug company that is growing much faster than the other drug company. Its rather remarkable in this deal, if they do get irritable bowl syndrome approval i think its going to be higher and higher. I think the stock doesnt stop here. Maybe were not doing inversions, but its so easy for this company to buy things here. There will be attractive assets all time with their tax rate. Exactly. Thats why theyre not done. Its really working out very well. They can continue to buy and continue to make more money. Were getting these Major Companies out of nowhere. Activist and valiant are becoming what we used to talk about all the time. Theyre giant pharma now. Tom lee was on. He said maybe we do do do do. I said id never say do do. Maybe we do do double digits this year. He said some groups will do even much better than that so it wont feel like sort of a boring market. What do you think will be the best over the next 12 months jim . Which sector . Yeah. Jeez i dont know. I think oils still not done going down. I think that anybody that uses oil, we were talking about the seeio. Restaurants, retail travel. Theyre all fabulous and very average to the average investor but the average investor is just not focused. Theyre not looking at it. Okay, jim, im going to do a grass roots thing for young viewers. I think theyre going to put their name on a scroll because weve got too many of them now. I like it. I totally agree with you, joe. And for financial literacy, too. Its like im doing gods work. You are doing gods work. Every morning. Thank you. Thanks cramer. Coming up next we will do more millennial shoutouts. You ready . Im ready. Im exhausted. And then were going even younger. Olaf and elsa just got a bit more expensive to visit. Find out how much it will cost you to visit a disney theme park. Squawk box returns in just a moment. Turning two worlds into one takes love. Helping protect that world takes state farm. When the moments spontaneous, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Welcome back to squawk box. Among the stocks on the move 3m is buying polypores filtration business. That deal worth about a billion dollars. It will cost you a little bit more to get into the magic kingdom. Price hikes took effect yesterday. A oneday ticket to disneyland now will cost 99 for those who are 10 years and older. Thats up from 96 before. A oneday pass to disney world in florida is up to 105. Disney typically raises ticket prices each year. Lets go even younger. Go ten and younger if youre watching. If youre under 10 years old and watching squawk box yeah, well give you a shoutout, too. I said id do this. My millennial shoutouts. I wonder if thats ipfree. These are huge. Hillary wasserman. Michael stocker is watching. Luke walker. Brian martin. What we need each of these people to do im going to do this. Im sick of every one of the people that weve talked about needs to call like ten of their friends and say you should start walking. Ing watching. We can do this from the ground up. I think its really great. But we have to be doing something noble here. We cant just be trying to buy viewers . Just check your twitter. I want to see if you get any 10yearolds. Just before the shows over. Have max and henry tweet in. Oh i can do that. Ill do that for tomorrows show. Kyle, we can do this. Take him to the well but its hard to make you drink. You have an idea for doing this . No. I have to do everything . Everything. Always. Becky has to keep it going. You have broad shoulders. Getting broader. My trainer eddie. Have a great monday. Thank you for joining us today. Make sure you join us tomorrow as well. Right now, its time for squawk on the street. Good monday morning. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer and david faber at the New York Stock Exchange. Final week of february kicks off today. Nasdaq 5,000, just 45 points away. Goldman cutting boeing to a sell. Thats looming a little bit here. Oil back below 50. Well talk about that and the tenyears still in a range just below 210. The markets dancing around record levels a day ahead of the fed chairs twoday testimony on capitol hill. After that deal is struck to