Transcripts For CNBC Squawk On The Street 20150311

Bullard tells ft the end is overdue. The 300 point drop for the dow, euro tumbling to 12year low. Will the trend continue . How much cash will banks be allowed to return to shareholders . Results coming from the fed as investors wait to see which banks capital plans will be improved. Changes in google. A new Branded Store in london a potential acquisition. Futures higher a day after the selloff on wall street sent the dow and s p back into negative territory for 2015. The euro falling below 1. 06 after the ecb kicked off qe earlier in the week. Talk about parity and the last time it happened how long it lasted. Even you writing about the time you went to paris. 90 cents is where it came when it was 2002. I went to paris in july of 2008 it was 1. 59. It was the exact top. I remember thinking this Hotel Room Cost an absolute fortune. People forget weve been there before. We have been there before, it was okay. We decided to debase the dollar. So, even though this is historic, its historically okay, its the velocity. The velocity would slow dourng any down, any good news out of europe, we would break the velocity. Its too quick, carl. People cant position in time. Right. But also a sense that theres a simple race to devalue, whether the euro the yen, other currencies and of course the question being, china, whether they get more aggressive. After their data missed last night. China, look the rest of the world is not Strong Enough for dick fisher to say we think hes not voting to say we need prompt tightening. Prompt tightening will send all of the currencies to the floor and its going to put a stop to a lot of our exports. We had a company last night that reported unbelievably good number, verifone. They cut numbers gigantically because of currency. A great quarter. They look through it . Thats my key to todays session. Will people start looking through this . This was the worst guide down ive seen in terms of currency and the best quarter, organic growth 17 . Thats the question, will investors look through it . In the past theyve chosen to often timings. We dealt with a higher dollar for a longer period of time but not in over a decade. No. It is taking a hit, no doubt about. Impacts Competitive Position of Certain Companies in different markets where there are domestic competitors who are able to undercut on price. I had ford motor on hes not a complaining but the fact is i asked several times about latin america. Latin americas very, very hard for us. Not only are currencies bad, make cars with the translations bad, economys bad. If youre vw these companies, peso, 15. 59. A state that i i have a house in, say it many states. Yes yes. Its when i first started going there, it was like there was no one on the plane. Now its all german and japanese. Why . They thats where they put all of the plants. Making luxury cars in pueblo amazing places thats where the moneys being made. Send them up union pacific, no different than making them in detroit exist costs are nothing. 5 a day cheaper than china. Cheaper to build in mexico than china, 5 a day new york pollution controls. And closer. No boats. Banks are in focus today. Final result of the feds annual stress test due after the closing bell. Jpmorgan, citi group among the big u. S. Banks expected to win fed backing to buy back additional shares. Odds on who does best who does worst . The markets placed a bet that bank of america, made a mistake last time is going to be good. I thought peter, i worked with him for a long time in new york times, an interesting piece about the city and mike corbat. Citis a winner too. I think corbat is to be celebrated because he took the worst and made it into pretty good. An interesting story how they bulked up derivatives while others have chosen not to. But booked to capital. They are. But its an interesting strategic choice that citi has made conceivably. All of the other institutions youre seeing Investment Banking lagging, to a certain extent not as much there. We have gary cone on today. 11 00. Thats going to be important. Goldman, the way its being for trade, goldmans the one thats maybe the loser. I think thats not going to happen. In terms of the capital return . Right. Capital return. I think that this is going to be less onerous than people realize. Gary is a good guy. Vocal on Market Structure and other issues the fed, the dollar. You got to get him going. You got to get him so hes like out of his comfort zone, outside the lines. The best thing for the banks, of course, would what what we started to see after the jobs report is higher rates and continued talk of that given that interest margin does figure prominently in their profitability. 17 of the s p means rates higher. Remember when the interview, jamie dimon, jamie wants isnt there a ceiling of sorts given the fact that international flows are going to rush in the minute we get to 250 or above there . Yeah, i think so. I mean youre sitting here thinking, are we going to go to 3 , you know on a tenyear when italys a big country. Remember you used to tell me the size of the bond market italy, how big it is. A trillion dollars the Third Largest bond market after japan. Germanys tenyear yields. 22. And nestles negative yield. Now the country of nestles. Delicious. Nestle is fabulous. They have chocolate mountains. They do . Yes. Chocolate milk lakes. Does chocolate make you break out . Not necessarily. Makeup on all day yesterday. To your point, if we were to raise, and the fed has to be thinking about this patience being pulled out of the statement potentially, figures into this doesnt the dollar get stronger . Just about what we talked about, become even more of a headwind. Stanley fischer, from zimbabwe knows currencies better than anyone i know, understood contagion, hes chairman. I think Stanley Fischer is the right man at the right time and recognizes if we tighten all of these countries that he is so much more familiar with than a typical central bank would collapse. We mentioned bullard, talking to the f. T. I called him the Justice Kennedy of the fed. Hes a swing vote. Yes. In his words, i think we have to move now or soon to be in the right position as the economy continues to evolve. Shut up. Probably, yeah not the first time youve given him advice. In the locker room you dont do. Dont tweet, dont give interviews. This is a tough time. You have a chairman shes terrific. Let her do the talking. This is not the time for people popping off and giving interviews. Come on, guys rein it in. Guys giving interviews like poole saying Different Things confusing the market. Speak as one. You have a head coach, keep in the locker room. I dont want to read. Youve got a problem, take it like strahan, win the super bowl. Dont tell the press. Yes. And or take the gartyied money. Or chip kelly. Did you see the tweet from the tweet of god im on mission but even i dont understand what the Philadelphia Eagles are doing . I love that. If you havent had all people have had acls, you had acl surgery, you have a candidate. Yeah. Finally, google disclosing its long time cfo is retiring from the search giant. In post on google post he wants to spend more time with his family and go backpacking. Boog ex google expects to find a replace hadnt in six months. Pictures of the new store in london. No plans for more. People are saying leak hes a steady hand. They did spend like mad. He had a case of floy. A fraternity any it oklahoma not the right one, this may be right one, why hes leaving the fraternity of worldwide insecure overachievers. I saw that. And this happened while looking at mount kilimanjaro, his kids grew up no more cheercheerios encrusted minivan. Im not leaving. He asked the question when is it going to be time . Our time . My time . My father worked until he was 92. The answer is never. He never had a minivan with encrusted cheerios, for heavens sake. One approach. This gentleman is taking a different approach. Interesting that he chose to write a detailed post about his plans and his wife and theyre going to explore not just africa. Sounds nice. A lot of guys who want to spend more time with their family and its clear they didnt want to spend time with their family and they did. This guy wants to spend more time with his family. His wife. Kids are grown up. Interesting, for a moment i had an existential talked about it and i started reading about the eagles and moved on. Moved on. Adam. What a night he had. One aspect to this spending theyve done on fiber, this guy had a background in telecom, perhaps they will pull back. Thats pure speculation. Because we know google has been spending some money, booking up certain places in the country to you know make a broadband, so to speak. You told me until they are buy a sprint or tmobile dont believe. You put that in my head or maybe Charlie Ergen who said over and over, until you see, show me the money, its all its a big choice. If google were to go down to that road by the way building a network its not just buying the spectrum then building a network is 40 billion, 50 billion question even for google. They have it. They do. They do. Switzerland, they could replace 60 of it overseas. Do that especially in the face of net neutrality. Raise it neutral country for net neutrality. How about nestle country. A good country. Isnt it . Kinder Morgan Country and weve seen a lot of other deals that are over there i dont know if you followed sole of the companies raising money. Cocacola. Theyll pay you. Ill go anywhere if they pay me to raise the money. There should be calsalary caps on what you can raise in europe. Apple is reportedly getting ready to use the force. Also ahead with the volatility were seeing in markets, exclusive interview with gary cohn ahead of the stress test results tonight. The markets withstand their worst day since early january. More squawk on the street from post 9 in a minute. Etta james at last sometimes, at last doesnt happen at first. Your dad just kissed my mom. Turning two worlds into one takes love. Helping protect that world takes state farm. [ 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. Apple said to be adding new feature to its next iphones. The Company Plans to add sense to detect how hard a user is pressing on an iphone screen. The force Touch Technology used in its mack book and the apple watch. Stories about apple all over the place today. The fact that they get a cut on mall ren, is that amazing. There hasnt been a favored mall player. This was i thought this was incredible. You cover these Real Estate Investment trusts. A little bit. Given on whats going on with simon, yes. Apple brings them in and santa brings them in. Use that as leverage to get the rent. How about sears . Does that bring them . Huge. Id say youve got to put an apple store next to sears store to counteract each other. Talk about the battery life that perhaps if youre listening to music its only a sixhour watch. If youre on a call its a threehour watch. Cant use it for health. Not getting one, see . You were all about that watch. But now i dont know that youre going to get one. First, it done deal with your sleeping pat earns. No. I can use this for health if its going to run out in the middle of a rant. Middle of your day. After 18 hours. Im concerned. Youre setting your stride. The Washington Post does a review, its a nice thing to have, at least right now this iteration is a nice thing to have not completely necessary. See this . Works the whole day. Its not going to be thrown at you. You and mr. Apple watch. Suddenly returning . Worked all day. Youve been ready to throw it out for weeks. You can run over this with a tang and it will work. Ive got 11 30, i dont want to get dial me. No. No. No. From yes to no. Put it in a time to stop. At the annual meeting investors tried to get tim cook to buy tesla. Thats not going to happen anytime soon. China theyre still how about the fact that six months ago, eight months ago, elon musk was praising. This has as many cars as sears has customers. Theres a data about new high powered insane tesla. Were not getting what i regard as being strong sales. In china. Overall . Overall. Theres been guide down. Wheres the 55,000 then 50 38 36, 34 going in the wrong direction. Gas prices having an impact though many said it has nothing to do with it its a different kind of purchase . I think the gas prices have frozen the market. Ill point out, this is one of those where there is going to nothing in 2015 that is going to be like a tesla. But it does seem that when they change that warranty you know, certain range you have to start payment, things go on where theyre trying to make money. Striving for profitability. Striving. Cramers mad dash. Count down to the opening bell. We rebound from the big loss yesterday. More jacques onsquawk on the street straight ahead. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. Let me talk to you about retirement. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable professional. Im actually a dj. [ dance music plays ] woman [laughs] no way that really is you . If theyre not a cfp pro you just dont know. Cfp work with the highest standard. Less than eight minutes before the opening bell on this wednesday. Sending me forget me notes, saw them live. Panera, david, i go there, perhaps you go to panera Credit Suisse said buy the stock. The biggest disappointment of the restaurant chains and its a contrary call. Theyre saying sell buffalo wild wings, thats the best. I mentioned you like those calls. Well analyst willing to take a stand. Arent always right but worst reading and thinking about. I felt that same way. If panera could get it together it could be very good. What does it mean. 2. 0, rolling out if thats good and get the through put better so they dont have the big mosh pit that was ron shake called it that on mad money, ceo. We had a mosh pit. I sent my son in it was like a mosh pit. Wow the ceo didnt like the through put than could change things. A great reason to buy. This is a bold report. Its early, i think. You think its early. I like the idea worth noting. What else. Regeneron, pcsk 9, the antibed cholesterol inhibiter, well see data this weekend that i think is going to bes be positive. This is the 17 billion market according to deutsche bank. Its big. Those of us who cant take the statins or those of who its not the statins arent working well enough theyre the stand around this is what the karmchairman is there a gigantic worldwide. The ceo of merck when they did love va statin and the chairman of regeneron, people are saying theyve got the magic bullet for anticholesterol. Something more widely prescribed . Is it like oneday vitamin . Conceivable. Enhas to get the i takely. Lipitor. I dont know if it works. You have to pop it if you go to barkley prime. Always pop it. Richard daly told me that. Used to be commerce. Doesnt really help to pop it with the steak. Red wine, though, very good. Opening bell five minutes away on this very busy wednesday. Stay with us. Were back right after this. yawn bulldog i just had a dream i was at mattress discounters with tempurpedic and the Largest Selection of memory Foam Mattresses under one roof icomfort by serta. Posturepedic hybrid. yawn comforpedic by beautyrest. Oooh 48 months interestfree financing, free delivery, and queen size memory Foam Mattress sets as low as 697 thats more mattresses than you can shake a bone at mattress discounters 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. 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A lot of people thinking about the fed, gold for instance threemonth low, lowest since december. Last night jim, on mad money, you talked about why this market is punishing good stocks, in your view thats why youre not hot on the overall end. Qualcomm david broke the story, one of the largest buy backs in history and the stock finished down. Did it. Finished down badly. Hewlettpackard, the best big push, meg whitman has a good handle on the splatitup and that went down. Sky works added, went down. These are signs are there sellers everywhere lurking. Be careful. Europe can go up because theyre separate us. Watch sandisk. Goldman the stock of the millennium kind of call for sandisk, that will be the tale of the tape. That cant hold it look out. It not like 08 telling people to outright sell. Its just earnings whiskrisk and thats important you can have guidedowns but it doesnt mean shutdowns with the commercial paper market. Thats not going to happen. Watch that one. Watch mastercard a secondary in the hole thats a conversion of b to a stock. Its not new stock. Its not a consequence but done in the hole. Watch if mastercard can come back. Symbol ma. Ma. We did get a surprise decline in inventories from api last night, as we await the governments gate ta indata, some people think it might be more bullish than usual. Gulf of mexicos been on, canada mexico. More than in 80 years. Lets wait for the opening bell here. Take a look at s p at the top of the screen. Here at big board, xo group celebrating mobile first relaunch of the knot. Com wedding resource site. Okay. [ bell ringing ] the Lendit Conference Global Online lending community. So well also shake shack, after the bell. Shake shack. Its karma. Its not going to change on earnings. How do you measure karma . Whats the metric. Taste of the burger. Im not kidding. Restaurants reported a great quarter. They reported a great story, double digit comps and guided to a terrible number. I mean the guide is more important than some of the actual comp numbers. Remember danny meyer said this is dont pain us that way. It seems ridiculous they can possibly say that but there are companies that have gotten away with dont grade us on a quarterly basis. You said sandisk, right out of the gate it is the top s p, up almost 5 . The stock of the century. One of those upgrades that i cant stand. They misses the quarter really bad. They are up four. Come on. Theyre saying good demand demand has tightened flash and everybodys short the company. First time it preannounced and the second time it preannounced. It shows you there are people who wont quit they love it so much. Its a conviction buy. Its not just buy. They have conviction on this buy. Right. Right. Its funny, i normally look at stocks but i went to take a look at what the euros doing against the dollar 1. 05. The high on the year 1. 38 right . Move is so vis sifoe siferrous. Sorry, 1. 39. People arent ready. Its got to stop. This really cannot hold if the dollar keeps getting short. It cant. Its interesting. Last night Todd Mcclellan put up a chart of the s p and the dollars correlation to it. It goes positive negative over the years, positive negative. Its been positive. But are we at a point where that correlation flips . I think it can go up gradually gradually. People can hedge. When it goes up this quickly, you cant get your trades you start worrying about countries and contagion. And thats not wrong to talk about contagion, you dont want that. If you slow things down you can get your hedges on youll be fine. Yeah. This speed is taking peoples breath away. Hedges are for a certain amount of time. Corporations, they run out, put them on again, volatility doesnt help there right. No rally can hold i think, if you just keep having these moves like this. Slow it down get good news out of europe its going to reverse. Maybe good news out of china. But were not getting good news out of china. No. Retail sales, industrial outpit all misses last night. Industrial output 6. 8 sorry 7. 8 estimate. Its going to be hard. You saw europe you get great autos, retail they wont need to continue to debase then you get a floor here. But i want to wait. The deere, february retail sales were down but the aura of buffett protecting it. People dont want to sell deere because they feel like Warren Buffett said its a multiyear cycle and taking a multiyear view on deere what happenss when Warren Buffett takes a big position. People are willing to stick by it, though he urged you not to do that. Thats right. One of his points meese dont follow me. But deere, hes taking a longterm view people are saying were fine. Were fine. Are we maybe . We may be fine in the longterm view. Short term, at least, more green than red, at least on my screen now. Look slow down dollar. Slow down, especially international. Some Domestic Companies are fine because of were at a certain point well stop worrying about thoeps those. And the banks will start going up. Mastercards off a percent or so. Yeah. Its funny, when you get these in the hole secondaries it freaks people out. This is one who owns mastercard who is switching. You shouldnt freak out. My Charitable Trust own it, down from 91 flash. Mentioned shares of gopro, i mention it because the thing went public. I remember when it hit almost 100 bucks. Had that lockup. Its been more or less i mean fits and starts but straight down below 40. Right now, gopro, embracing the idea, not becoming a Media Company per se but certainly the media strategy if you will creating all of these ecosystems channels around people who film use gopro to film and then put it on youtube and attract advertisers. Obviously the cost for producing programming is nothing. But there are questions about whether its going to work or still just device company. The day that stock peaked was the day they had a goat ride a surfboard right after the day they had a pig ride. Not kidding. The stock peaked when you saw the goat on the surfboard. I will tell you, verifone the stock im watching symbol pay, 17 organic growth but the number slashed because of currency, look how that stock acts, thats a positive. Talk about lockups in ipos, alibaba bounced last week. But its got a huge lockup unlock coming. Really. Around 180 days. Numbers are enormous. But many people who own that stock have to be aware of that and are aware of that in you just told them. Hope they heard you. Structured disposal of baba . Say again. Where is yahoo in that structure dispose of baba. Going to spin off their stake in alibaba. Are people hedging that . Yeah there respect well there are those who argue that yahoos undervalued based on how to what youre looking at starboard sent another letter earlier this week. They love letters. They do love letters at starboard. They were talking simply about focus at yahoo has. On revenue per employee. This is what im hearing from investors, which is low compared to competitors. When i was at Goldman Sachs, that was like a metric. Back is a metric. For babas lockup 181 days after the ipo, 429 million ordinary shares available. Oneyear mark, 1. 5 billion available. Finally, tyson, down almost 3 . We got the crop report yesterday. Prices for wheat and corn higher in march than we thought. Tysons had a free ride of the place. Got to watch those stocks because you dont want inflation. Dont want inflation in the food chain. Lets get to bob pisani with the dow up 22 pointed. Good morning. The important thing here is modest upside 9 of 10 sectors in the s p are up financials leading. Nice bounce back after a lousy day yesterday. Semiconductor strong. Longterm trend in gold recently to the downside. Trading action strange reasonly hasnt it . Take a look at s p 500, 2 out of 3 days where s ps been down more than 1. 25 , only two weeks after it hit an historic high. Thats a little bit odd as a trading pattern. You can see how crummy march has been. The key point is 2046 that is exactly the midpoint where weve been on the year. Put up year to date of the s p 500. Weve been as low as 1990 at the end offen. Reporter as high as 2120 or so a couple of weeks ago. The median right in the middle where we are right now, about 2050. So essentially, what im trying to say for all of the hand wringing ive been hearing about in the last two days s p and dollar in negative territory, for all of that hand wringing we are range bound and right in the middle exactly, of that trading range for the year. By the way, weird parallels to 2014. Looking at this this morning, remember 2014 . January was down. Thats what we did this year. February was up. Thats what we did this year. And march started crummy. Eerie parallel to whats going on in 2014. Certainly kind of strange. In europe, new highs again, germany, history exic high. France, historic high. Italy at a threeyear hype its not historic but threeyear high. Thats remarkable. Theres your countertrend to the u. S. You mentioned china data. I want to point out it was below expectations. I had 7. 8 . It was below expectations. And thats the slowest growth levels weve seen in six years on the factory production. Retail Sales Numbers were also a point or two below expectations most had 12 for retail sales. They were only un10. 7. Shanghai moving sideways because every time you see a lousy number, everybody starts talking about more stimulus in the bank of china. Virtually all of the banks in the world talking some form of stimulus, if not qe some form of stimulus thats one of the Things Holding up the shanghai. Here in the United States the Airline Business continues to do well. We had numbers from airlines for america, one of the lobbying groups talking about very good numbers for march and april so far. Passengers up 2 capacity adding more seats because demand is so strong for the airlines for bookings. Biggest complaint, not changing prices, just going up. Try booking Airline Traffic travel in march and april, i have been doing, prices are shockingly high. Very little room unless you take two or three stops to get to where you want to go right now. And even the airlines which had a fantastic multiyear run, even going into the end of last year beginning of this year have stalled out a little bit here. Heres the airlines. American delta, jetblue, virgin america. Price moves here the stocks have been fantastic. Now the dow up 25 points. Bob pisani. We havent seen that many big ipos, perhaps the second half will bring one of a name you may remember from back in the boom days univision. A lot of talk about that reuters reporting it will go public later this year in a billion dollar ipo valuing the company at 20 billion. I mention it because you may remember univision back in 07 went private in an enormous lbo, 13. 7 billion including assumption of debt at 12 years worth of ebitda. In other words, debt at the company represented, the lbo represented 12 years worth of current ebitda at that point. Theyve gotten that down. Its nine times now. But it was the most highly levered deal i can remember and many people have seen but it survived. Now it survived but here we are eight years later and it hasnt gone public yet. It hasnt been sold. You do want to of course generate some sort of return for your private equity holders when you the likes of all of the companies that participated in the deal talking about tpg, Providence Deere born thomas lee involved there. Tell visa always an important player. They provide a lot of programming to univision, many of those things that are seen on that broadcasting service. Tele tele televista took a 5 position but bought debt that allows it to convert to what may be as much as a 38 position. Currently owns 8 of the equity can go up to as high as 38 and did a new program agreement. Ma benefits with 17 to 18 of net revenues off the top. Its ownership stake. Free cash flow that the companys producing already benefits seen by televisa. What the numbers will be what the ipo will look like that remains unclear. Is it selling shareholders . Are they going to raise primary equity to pay down debt, as i said theyre nine times levered. 20 billion number perhaps appropriate. Theyre going to talk one would expect about hidden value with the company. For example, spectrum uhf, vfh stations reverse auction, told to Wireless Companies in 2016. That could be very beneficial. Were heading into a political season hispanic voters of particular importance. Thats one time but one would imagine a very strong selling season for advertising on univision as the 16 Elections Come upon us. Certainly interesting to note this exists had been speculation when univision gets sold. Just interesting to watch the maturation of this business of an lbo eight years later that was one we took note of as how to be the top and marked many ways the top. Free scale. And harrahs dont forget that one. Want it point out in the interim that audience that major retailers have sold 40 million, major retailers tried to so hard to get to the market. Numbers might be could be very interesting. Our old colleague randy falco. Did he have floy. I dont know. Maybe theyll find each ear. What about the encrusted cheerios. Himalayas or himalayas . Which is it . Head to the bond pits Rick Santelli at cme group in chicago. Good morning. If we look at the intraday and two day of tens really kind of a push. Granted oneday rates are up a smidge. Yesterday they moved lower from their higher levels. But all in all, yields are actually a little bit higher than we closed yesterday, or close to unchanged. December 1st chart shows you were not back off from where we settled last year. Look at two day of bunds, yes, we did violate the 20 basis point level briefly, trading 19 basis points and change. If you look at two day of bunds and euros, horsepower how theyre pushing euros out the door, of course is having an effect of making bund rates. Et heated. I heard the discussion about the high for the year and the euro versus the dollar like many markets in 2014 2015 the first trade day of the year. We had a high close of 121. 04. We could see whats happened ever since. Look whats go on with regard to Foreign Exchange and stick with that, i want you to see something else. Twoyear german bund minus 24 basis points they had an auction today. Very very strange dynamics. Back to Foreign Exchange. If you look at a chart thats almost exactly 12 years to the day, todays what march 11th, back to march 1 2 1st, last time euro versus the dollar at these levels. Something important, you know theres a day, december 5, i believe, we had a high set for the contract. It was around 121. 46. Intraday high is 121. 60. My guess a new comp going back to 2007. Carl, david, back to you. Yes, it is me. Coming up squawk on the street live from the Goldman Sachs tmt Conference Interviews with ceo gary cohn. Plus, he founded mtv. Now the ceo of i heart media. Bob pittman will join carl who left the post to go over to the conference. More squawk on the street right after this. You can find a new frontier. Theres nothing stopping you and a lot helping you. Technology thats with you always. This is our promise. Its never been better to wander because wherever you go, youll find us doing everything we can, so you can. Alright, so this tylenol arthritis lasts 8 hours, but aleve can last 12 hours. And aleve is proven to work better on pain than tylenol arthritis. So why am i still thinking about this . How are you . Aleve, proven better on pain. Look at Interest Rates here in the state and all of the talk about Interest Rate rise. Thats indicative of a healthy economy. When you look at our business and our position in the market and the profitability, thats a good thing for us. Mark fields talking with jim last night on mad money, as your tenyear celebration continues. Man, what a lineup of guests youve had, continuing tonight. Thank you. We have under armour tonight, bob iger from disney. I think this is something, its so funny, what hes saying something so commonsensical, business is good dont sell our stock, business is good. And weve weve lost that. Thats a shame because theres a lot of stocks that are going down. I think that todays a very interesting day. Stocks that are recovering now, which i like and financials can lead us. Financials are leading us now. Thats very important. All of them state street schwab etrade, bank of america. You can really on financials big of the part of the s p. Theyve been really just moving up nicely. But lets not lose sight of what mark fields is saying. Interest rates are going higher because were selling a lot of cars, business is good obviously other countries, talked about latin america, not good. In our country they dont go up for no reason. Business is good. I thought that was important takeaway because we forget in all of the craziness about the dollar guys are saying our business is smokin. Right. But can we keep swimming when we have angers behind us or start to sink . You have to have a balanced approach. Look at positives and look the at the financials and watch them. Theyre telling the tale. Verifone will tell the tale. Jim also has surprise guest last night on mad money. Take a listen. Man, im getting anxious. Ready, let me see who it is. No no no its sherman its r. Sherman, are you on mad money . I am on mad money. Look guys i revere. We spent thats great. Some of my family thought i embarrassed myself. Richard sherman we spoke about his charitable work. Hes a oneman charity weep know on the field how he is and hes team and important. But felt that we should talk about charity. The nfl obviously coming off a tough year off the field. And heres most ferocious player on the feel and perhaps the most charitable. Does he have any idea what the eagles are doing. He said max well was a good big pickup. We didnt go into bradford we were baffled. R. Sherman underscore 25 a man trying to help kids get smart and get through school. Hes remarkable charitable softball tournament blanket coverage charity. This is stuff i had to bring out. Hes humble. Not on the field. We have stop trading after this. Weve got to move. What do we got for stop trading. Talking about actavis and valeant keep going up. Stop secondary, 13. 5 million shares of Sunoco Logistics a Pipeline Company from the old sunoco do 13. 5 million, 41. 76. Its breaking down. Theres deal after deal and theyve been holding, watch this if it doesnt hold then the market may be finally full up with the partnership oil deals. Mad tone. Underarm for a dogfight with nike. Arounder armor in chicago, kevin will be on with his new stock. Bob iger disney what can i say . Maybe the stock of the of dreams. What a lineup. Fairy tale stock. Unbelievable staff. You do. Regina they said jim, youre going to be blown away with when we have. Richard sherman you have competition with iger. Carry cone coming up with karl from Goldman Sachs after this. Barbara just bought a bike. She wrote a tweet about it. You cant learn much from that. But take data from millions of tweets combine that with your companys supply chain and sales data. 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I am a fully automated Investment Advisory service. I can help you choose the right portfolio. Monitor it. And even rebalance it. Ive been called innovative. Revolutionary. And just plain smart. Id blush at the compliment if i could. But i cant. So. I wont. Say hello at intelligent. Schwab. Com good morning. Welcome to squawk on the street. Im david faber with sara eisen and simon hobbs live from post 9 at the new york stock exchange. Carl quintanilla at the Goldman Sachs Telecom Conference firms headquarters a few blocks from here joining us live with more from there in a few minutes. A look at markets this morning. Coming off a poor day. You can see rebounding a bit on all of the major averages with crude oil down right around 48 bucks a barrel. To the road map for the morning. Bc partners managing partner ray month spider joins us for a first on cnbc interview for the pet smart acquisition. The euro the dollar hitting 12year lows. Talk about emerging market currencies. How that strong dollars affecting one of germanys biggest export industries, that would be the car industry. Bob pittman, ceo of i heart media, live with carl from the Goldman Sachs tmt conference. You know hes a media veteran, to say the least. Founder of the mtv networks former ceo of aol time warner enterprises. Bob pittman live on cnbc. U. S. Stocks rebounding after yesterdays steep selloff. 2015 gains for the dow and s p wiped out by the strong u. S. Dollar. The euro tumbling to a new 12year low against the dollar. Bringing currency closer to parity with the u. S. What does it mean for investors, the stock market u. S. Economy . Lets talk about it with michelle meyer, deputy head of u. S. Economics at bank of america and Merrill Lynch and jim paulsen, chief investment strategist. You know the question im going to ask, what does the Federal Reserve do about the fact not own is the dollar getting stronger by the day but a more fesh ferocious and speedy move. Do they have to do anything verbally or policy wide to address it. They have to monitor the movements in overall financial conditions and the dollars one of them the fact that the dollars strengthen suggests that financial conditions have tightened faster what they were forecasting or assuming based awe of Economic Growth. Now consider what this means for meeting their dual mandate, a stronger dollar is disinflationary. So it can make it harder for them to get up to their target of 2 . And in our view its another factor for why probably the fed wants to wait a bit. They are clearly setting the stage to normalize policy but they have to react to the movements in the overall economy and the movements in financial conditions. By our assumptions, our view it wont be appropriate to start hiking Interest Rates until probably september. You think it could go longer than that into 2016 with what you just described, the impact of the strong dollar and the fact that were already missing on the inflation target . I think very much depends how the data comes in. That sound obvious because the fed is telling us its data dependent but i strongly believe theyll be reactive. If they dont see a sign inflation is trending higher if they dont see a sign the tightness in the labor markets translating to stronger wage pressure, which will push through to overall inflation, maybe offset disinflationary factors from abroad, they do have to wait. They have to balance different factors, meeting for employment mandate in terms of the labor market but missing on inflation. Can you be fully invested in the u. S. Stock market or do you have to diversify geographically here . I would. I think that with whats happened here with currencies across the globe and just the fact that most markets outside the u. S. Have underperformed for the last couple of years relative to the United States i think theyre a much better value. Not only that to me what could really change the math here in the spring is not so much what the fed does here or what happens to the United States economy, i think the big change in the wind here is does eurozone, does japan, Economic Growth bounce . If it does that changes the currency relationship it hows the fed an escape route. But more importantly, it means that overseas markets may be because their markets go up nor those recoveries bounce but also the currency stock depreciating against the dollar for u. S. Investors thats the place you want be to n. A strong overweight position the anxiety is clearly visible. We lost 3 on the s p since just before payrolls. One of the problems that we have is that clearly the market doesnt know what the fed is going to do. Its not transparent in signaling that at all. You have some people who think there will be three rate rises before the end of the year there are other whose believe they wont be able to raise rates the all because of the way in which the markets would react. My question to you, jim, who is in charge of Interest Rate policy in this country at the moment . Is it actually not the fed this time round but the markets because the fed and the ecb have done what they have done to the currencies or asset market on this tightening cycle, coming into it the world is different now . Well i think, simon, the same person is in charge of the Federal Reserve thats always been in charge the economy. And i dont think thats really changed. And whether they i think they will start hiking. I think it will be in the summer. Thats mainly because i think the economy, particularly offshore, outside the United States, is going it show signs of bouncing. I think were already seeing some of that in europe with better spanish sales, better pmis, better confidence out of germany, i think its going to get stronger as you move into the spring and i think its going to force the feds hand to move here in the country. Arent we talking isnt michelle. s side a delay of moving Interest Rate because of what the dollars doing . The dollar is reflecting a collapse in the euro engineered by the European Central bank surely. Well, i think that i think if the fed can always find an excuse theyll always be something that isnt quite right, but i think theyre losing their mandate to suggest we have zero Interest Rate structure in an economy thats probably going three, nearing full employment in labor and capital, and particularly they lose that mandate, simon if the rest of the world shows a bounce in growth on the backdrop after a year of a 50 decline in energy costs, big drop in sovereign bond yields and weaker currencies i think successful policies in boosting growth and thats going to end the debate what the fed should do. On the note one of the themes that ties this together is the impact of the strong dollar on the u. S. Economy. Some say not a big deal 13 exports, but what happens this year was that positive correlation, stronger dollar stronger stocks broke down. You saw it on full display yesterday. Theres some concern about what the impact here is going to be from the stronger dollar. Do you see it weighing on Economic Growth in any meaningful way . I mean, and certainly will impact the trade deficit. Well have a wider trade deficit, exports will be hurt. Starting to see signs in the data, trade deficits widen more than people expected. To me i think this speed of the strengthening is whats important. It make sense that the u. S. Dollar should be strengthening, u. S. Economy further along in healing process, relative to the trading partners were further along towards the hiking cycle. But its happened abruptly and thats a shock to the economy and we cant ignore that. Thanks for weighing in on the markets and of course on the dollar. The dow up 66. Up next on the program, bc partners completing 8 billion acquisition of pet smart today. The deal was the largest leverage buyout of 2014 bcs managing partner, plans for the Company Including a new ceo, straight ahead. Exclusive interview with gary cohn, he will join us live from the tech conference they are hoping today. Carl is making his way across the west side highway. Squawk on the street will be right back. Who do you work for . Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Does a freshly printed presentation fill you with optimism . Then you might be gearcentric. Get a 15 gift card when you buy 75 in hp ink. Office depot officemax. Gear up for great. My name is bret hembree. I am an electric crew foreman out of the cupertino service center. I was born and raised in the cupertino area. Its a fantastic area to work. The new technology that we are installing out in the field is important for the customers because system reliability i believe is number one. Pg e is always trying to plan for the future and we are always trying to build something stronger and bigger and more reliable. I love living here and i love the community i serve. Nobody wants to be without power. I dont want my family to be without power. Its much more personal to me for that reason. I dont think theres any place i really would rather be. Largest leveraged buyout of 2014 competed today. Led by bc partners taking petsmart private for 8. 7 billion. Whats next for the pet retailer as it moves into private hands . Joining us, ray Raymond Svider cochairman of bc partners. Nice to have you with us. Fine very excited to be here. Thank you. Were glad youre excited. We dont typically have ceos of companies about to go private as opposed to the other way. Im curious, a large debt load as a result of the leverage buyout. Does that in any way prevent you from doing things youd like to do. What is the top of your check list now that the companys free of those who worry about earnings per share on a quartererly basis . Well you know frankly, our plan here is to grow the company and thats whats at the top of our mind at this stage. But in terms of the debt load we are quite relaxed about it as you saw the syndication was very, very successful and ample cash availability and financing head room to grow and invest in the business for the future. All right. Everybody wants to grow their company. How are you going to do it . I know there had been some questions in termses of the Online Marketing strategy outside of brick and mortar. Is in a focus. Its one focus but not the only focus. Petsmart is a great brand. It has a very good positioning and a very effective segment of the retail space. We think theres many avenues to fill and grow the business. If you look at what people write about petsmart theyre taken by 54,000 employees, many of whom will be watching you now and the fact they are obviously as much into their pets as the customers that whack through the door which is unusual for a retail chain to have that emotion attached to it and the product and the animals that are presumably coming in. What happens to 54,000 people . Well i think, frankly, a, youre totally right to point out that theres a huge emotional bond between pet parents and their pets and people who work at petsmart all of them are pet owners and pet parents, and takes what creates a very special situation in retail. I think for the 54,000 people at petsmart, you know we intend to take this company to the next level and it should be a good day for them. Raymond, what went wrong . With the bond that you spoke about with stocks like zoetis its a different business its pet medicines and drugs, how would you diagnose the problem of why you need to take it to this point . I dont think theres anything specific that went wrong, to be per specifically honest. Both sided to put the company for sale. We bought it. This company, this industry, is if a very good place. And you know of course there are things that need to be changed. But were very optimistic for the future of petsmart and its employees. Can i ask you one more time to detail if you would for us what youre going to do add value . The stock, over the past five years it doubled, rose 175 . It wasnt shy in returning value to shareholders to come through paying 40 premium within that im not clear what you can do and why that needs to be on off the public market. Well first of all, youre right to point out that you know public shareholders have done very very well on the on owning the shares and its a good thing for everyone. As far as were concerned, you know we do believe on the private ownership, the company can continue to implement the Strategic Initiative it has laid out in the Public Domain and made the necessary changes to act sell rate its growth in the future. In private equity, of course, theres always the focus on returning or being able to generate an investment return for the investors in your fund. How many years before we see petsmart back on the Public Markets . Lets take it one step at a time. Todays the day that we take ownership of the company. We have a new ceo. Its a great day for the business. Right to point out some point we will probably take the Company Public again but we are mid to longterm investors. You know well see, we have plenty of time to think about that. Yes you do. Appreciate you joining us for the first day of petsmart being a private company. Thank you very much Raymond Svider. Thank you. Up next take you live to the Goldman Sachs technology conference. Our own Carl Quintanilla is there. Its a huge conference tmt leverage finance conference 350 investor clients, over 135 billion of debt on the Balance Sheets of the companies presenting. Bob pittman, ceo and chairman of i heart media, in a moment. Sometimes the present looked bright. Sometimes romantic. There were tears in my eyes. And tears in my eyes. And so many Little Things that we learned were really the biggest things. Through it all, we saved and had a retirement plan. And someone who listened and helped us along the way. Because we always knew that someday the future would be the present. Every someday needs a plan. Talk with us about your retirement today. Does a freshly printed presentation fill you with optimism . Then you might be gearcentric. Get a 15 gift card when you buy 75 in hp ink. Office depot officemax. Gear up for great. Youre driving along, having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Good morning. From lower manhattan, live from the Goldman Sachs tmt Leveraged Finance conference topics surround the topic of debt but if this case allows us a chance to talk about things that we love the most that is tech media and telecom. Joining us, a real treat, bob pittman, chairman and ceo of i heart media, formerly of napes we know mtv, aol, and others. Good to see you. Thank you. Youve been coming to this for a while. What strikes you as interesting about leverage finance in tmt. I think at the oven theend of the day its all of us who have debt and leveraged Balance Sheet are interested telling the story because they have to evaluate us. The radio space has this overhang, this image that its crowded, that the whole platform is buckling under the number of players. You dont see that as truth. To the opposite. Years ago when i was in the tv business and coming out with Cable Networks were saying there are 50 radio stations in the mark how fragmented. Only ten tv networks. Suddenly radio looks mass mark compared to digital, television et cetera. I think its the right place. Whats happened in radio, radios done a poor job of monetizing what they have. Nielsen came out with a study that they finally did the Single Source study of return on investment, spend a dollar as an advertiser, how much comes back much greater than television or digital but what it really say is is radios undervalued it should be where tv is and it hasnt caught up in term of monetization. For me the exciting thing about the business we have huge audiences. 1970, 92 of the people listened to radio every week. Last year 92 of the people listen to the radio every week. Et cetera your best friend sitting next to the empty seat in the car. As mobile cops along, radios right there. What we call mobile twothirds use in the home. Radio, twothirds use out of the home. All of the facts right there. Our problem is getting people to understand it. Consumers know it, love it its never been an issue there. It just an issue of monetization. Were making progress as an industry. You think that turns being made. Absolutely. A big push that will change the story . A watch that plays music all the time on your wrist. Our business we dont need a new product to generate more revenue we need to monetize what we have better. If were that low down in the price, were a third of the cpm in tv deliver about the same results for advertisers, we could triple have room to triple cpms to get up to where we belong. Most businesses you have to come up with a new watch. Ive got to come up with a new phone, new show because youre fully monetized. Whats happened in the Radio Business is forever we basically dealt with the radio buyers at agencies who do not determine how much goes to radio, they spend what happens allocated. We didnt have relationships with people who determined the allocation and we didnt have the research to pack up our claims, so now we have the research, now were developing the relationships, and in a company like hourours we reach a quarter of a billion people every month, more than the biggest tv networks bigger in the u. S. Than facebook and google. Weve got the reach, weve got the pieces its a matter of putting it together. It takes time but id remember have that job than invent the new watch. Well said. Youve got a great view on advertising, as you said outdoors, social broadcast, digital. Is it feeling soft in two plus economy . Whats interesting, everythings soft compared to what it was in the gogo years but i think were feeling a turn in. We are feeling some stability. I mean were getting rid of the quirkiness of the political year, olympic year world cup, taking money in weird places. Now were if a more of a stable environment. We have now have a history of delivering. Weve developed longterm relationships, sort of big relationships overall deals with some agencies. We did the omnicom deal, which is a couple hundred million dollars. Were beginning to redefine how were putting it together. Were continuing to make products that people love and like elvis duran, Ryan Seacrest seacrest, big boy in language, one of the great morning talents in los angeles for so many years coming over to i heart media. Its an exciting time in you lived through aol years. When you see valuations for some companies that are still private do you say ive seen this movie before . Yeah. And its bifurcated. Theres some companies that have high valuations and if you pencil out how theyre going to make money and make money it all works out. Some companies that get usage, viewership eyeballs whatever you call it for the life of me i dont understand how youll ever make money and they have high valuations im think what happens at certain points we went through with the dotcom bust people that had a Business Model survive, look back ten years late they thrived. Look at people who had free isps, they go why pay 20 to aol, i give it to you for free. The minute people said show me earnings, there was no Way Companies could make money, they disappeared. I think well see a cleanout along the way. But at the same time i dont think everybody will be tarred with that brush. Real winners will probably benefit from clearing out the underbrush. Good to see you. Bob pittman joining us today. Over to simon. Gary cohn of course to come. Lets get a news update from josh lipton in san jose. Simon, news about apple. Heres another headline. Apple is saying that given the news about the itunes store the service is unavailable for all users followed report seeing all morning, saying apples itunes and app stores were suffering outages making it difficult for users to make purchases download apps not just in the u. S. But the uk hong kong and switzerland. Weve reach out to apple. Well bring you more news as we get it. Back to you. Thanks for the update on itunes. Straight ahead the euro sinking to a new low against the dollar. Its below 1. 06 closer to parity. Much more on that and where its headed after the break. 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. Good morning. Im sue herera. Heres your cnbc news update. Germany dismissed greek demands it pay world war ii representerrations. Accusing them of using legal tricks. Greeces justice pinster said he was ready to allow athens to seize german stateowned property to compensate victims of a nazi massacre in a small greek village. U. S. Air lines expecting the busiest spring in seven years according to airlines for america. The Group Estimates about 135 million passengers will travel on u. S. Airlines during march and april, up 2 from last year. Philip Morris International says carlos slim will retire from its board in may. Hes been on the companys board since its spinoff 2008 into memorials held across japan to mark the fourth anniversary of the devastating earthquake and tsunami that killed nearly 19,000 people. The operator of the crippled nuclear complex held a moment of silence to honor the victims. That is your cnbc news update for this hour. Back to you. Welcome back to squawk on the street. Reporting from the floor of the nymex. The eia weekly status report on crude inventorys out. We did get a build in crude oil stocks 4. 5 million, gasoline down, just slightly under the flat line. And cushing a build of 2 million barrels. 47. 9 on under the critical support of 48. A read, they looked at p. I report thought we could get a draw. This is why the 4 million build was bearish here though its what was forecasted. These numbers with the action that were seeing in the dollar index today over 99 and definitely sets the stage for lower crude. Eia came out yesterday talking about u. S. Production upping the number slightly for 2014 but reducing them slightly for 2015. What that tells us the markets well supplied and maybe going to take longer than people are even thinking to work through that supply. Maybe it is longer than the end of the year which is what the general consensus is at this point. Right now wti trading 48 around that support. It will be interesting to see how we fare for the rest of the day. Down slightly. Jackie deangelis. For the first time in years thanks to cheaper fuel prices and Lower Oil Prices Trucking Companies might be able to regain some of the business theyve lost to the railroads. Morgan brennan live in kansas city with more on that story. Good morning. Reporter good morning, sara. Take a look at these containers. These have been around for decades. As more goods are moving across the u. S. Right now, more of it is being done so in these types of containers. There is a battle that is brewing over who is going to move these the majority of the way. Thats because these are intermodal containers which means they can move they can be shipped using come bin fashion of train and truck. Right now, trains are winning. So this is the Fastest Growing business within freight transportation right now. Especially for the railroads. Talk about things like growth in crude by railcar loads. Take a look at intermodal car loads how much they grew in 2014 over 2013. To put this another way, this is now the largest Single Source of revenue for the railroad industry. Its offsetting the steep declines weve seen over the last couple of years in coal. Sorry. Excuse me. My ear just dropped out. The biggest single in coal. The reason we have seen the shift from pure over the road by truck, to a combination that includes rail theres really three main reasons for than the first is the fact that we have seen driver shortages in trucking which pinched capacity. Also the fact that in general, you can move more stuff by train and, third the fact that when Energy Prices are high it is cheaper to move your stuff longer distances by railroad. Its more fuel efficient. That being said however, in 2015, one of the things youre going to watch in the transports is the fact that analysts say, as diesel prices come down they are a dollar cheaper than six month ago that is making the cost of purely moving stuff by truck less expensive and more attractive versus railroads. Thats really according to analysts the biggest threat to the rails this year. Back over to you. Well done for battling through there. A market flash now from dom chu. Shares of Lumber Liquidators because they have continuing recent trend of volatility and trading higher. Yesterday it was because of a Citron Research report. Today Hedge Fund Manager Robert Chapman disclosed hes taken a stake in Lumber Liquidators, according to our own scott wapner, stake is equal to 15 of his total portfolio and through partly the use of call options as well. Lumber liquidators up its also important because Robert Chapman exclusively on the Halftime Report today to speak with scott and the gang on the halftime about his position in Lumber Liquidators. Of course this call comes a day before the company puts its Conference Call to update investors on its business situation on the heels of the squait squait scathing 60 minutes of whether they have unsafe substances. Working as a medical Technology Adviser at apple on the development of the newly released research kit. How it could change the world of medical research. Later on cnbc exclusive interview with goldmans ceo, gary cohn join squawk alley with Carl Quintanilla. 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. E financial noise financial noise financial noise financial noise hello. I am here to offer sophisticated investing strategies. My technology can help you choose the right portfolio. Monitor it. And automatically rebalance it. All without charging advisory fees, account service fees or commissions. That may be hard to compute. But im a computer. So trust me. It computes. Say hello at intelligent. Schwab. Com euro trading at 12year low against the dollar this morning and many analysts eurodollar parity 11 is within reach. More than that next guest believes that dollar could strengthen another 20 from here, against the euro as of course the ecb started to print more than 1 trillion euros from massive local sovereign qe. Joining us the global cohead with deutsche bank. Welcome to the program. Youre the second largest Trading House of Foreign Exchange. Before we get into where we might go what is the atmosphere like now on trading floors because these are massive moves. Good morning. I have to say, its buzzing at the moss fear. This time last year realized volatility in a changed rate marks was at the lowest since Bretton Woods and its the opposite. This year the biggest moves in history, indeed the euro drop over the last 12 months is one of the biggest weve seen. So, the noise level is certainly very elevated. It an exciting time to be in currency markets. Now the heart of the research that youre coming out with is this concept that youre revisiting of a euro glut a major pool of liquidity, excess savings in europe that needs to leave europe over the next ten years. Briefly, just describe what you believe is happening. Sure. So the idea behind our research is that the european current account surplus is not an obstacle to euro weaks. Many have been saying the surplus is so large, usually countries or economic areas, you can get the currency to weaken. But weve taken the argument and flipped it. The current account surplus is a symptom, a symptom of excess savings, too many savings in europe, too much cash and when thats combine with what the ecbs doing, which is pushing extra liquidity into the system charging for that liquidity, the only solution is for that capital to fly to flow out of europe. Thats our thesis that the current account surplus is helping the euro weaken because its representative of too many savings in europe. And the figure that you come out with i think is now 4 trillion euro glut 4 trillion that has to come out over the next ten years and affect how everybody else invests around the world. Why are you calling eurodollar down to 85 cents if thats a 20 move. Weve done 20 in 6 months. Thats a good question. I think the risk to our forecast are certainly to the downside. But weve already had a pretty big move from 140. If i look at the scale of potential flows involved and the divergence in Monetary Policy to me its a once in a century event really. Weve never had a period where the fed is about to hike rates over the next few months while at the same time the second biggest economic bloc is engaged in qe with negative rates. Forecast down to 85 cents ultimately. Its probably one of the most aggressive on the street but the risks we get bigger underchutes i agree. This is a to thetally consensus call. Everybody loves the dollar everybody hates the euro. Usually in for enexchange that means its bottomed or going the other way. This time could be different and nobody thinks thats going to happen. Why is it that the crowd will be right in this case . Sure. So i wouldnt rule out the risk of a squeeze, even in big moves you do get positioning being squeezed. It is a consensus view. I think the difference versus other times is really were seeing a structural shift in the underlying Flow Dynamics and the portfolio allocations of a very big part of the world, which is europe. So, you can have the speculative Community Building dollar longs, which indeed it has, but its really riding on the back of much bigger underlying portfolio shifts that i would argue are priced incentive. The function of whats happening in term of the level of rates in europe and relative positioning, id say, the report we published yesterday, we looked at europes, the Net International investment position and that still shows that theres more foreigners invested in europe than europeans abroad. What were arguing that has to change. Europeans need to become a net creditor to the rest of the world. They need to buy a lot more foreign assets for that adjustment to be completed. We enjoy the work from your team in london. George thank you for joining us. Apple bringing together millions of iphones users with top medical researchers and scientists through its new research kit platform. An interesting shift for the smartphone maker as it forges into assisting with health care. Can Apples Research kit change the way datas collected about diseases joining us dr. Steven friend at apple. And president of sage bionetwork bionetworks. Thanks for joining us. My pleasure. Just clear it up for those who may not know apple watch was the highlight of the event this week this is a change for apple. We think of as a Consumer Electronics maker, its much more about contributions to society and medical research than profits and consumers, right. Youre spot on. This is a indication of the way that apples interested in giving back to society, the consent of building a research kit that could allow researchers to build out tools to connect with participants to connect with customers about data. This concept of sharing the data and actually having it in an open source way is quite a shift, yes. The question is how in this open source environment do you protect privacy, do you protect people patients records, from apple getting them or other people getting them. This is very important to apple and also very important to us at sage. If you noticed when it was described, there was an indication, there was a description, apple will not see the data. The way this was built out was that data could go to researchers and really revolutionary way give an individual the choice of how they wanted to share their data. Did they want to share it with just researcher at an institution or given an option to share with qualified researchers worldwide, thats a game changer. What makes you think people are going to do there is . Well i think some of the facts are, even easier to go to in the first hours that we were working, we noticed that there were individuals who were signing up in orders of thousands of individuals and within the first da there are more patients that were coming in and enrolling into the parkinson trial than sometimes occur in a year. So hours in a day compared to a year. Think when people are treated as partners, not as subjects in the futile sense people are going to go can i give back . Can i help each other . Dr. Friend we should explain the tapping people see on the screen, thats a test of parkinsons, people are seeing on the video there. My question is can you give people an idea who are not aware of the phone . They dont flow it in your detail of how high level the tests are . Correct me if im wrong, this isnt ecg, this isnt Blood Pressure this isnt blood alcohol, as it may be in the future. For the moment, were talking about softer tests, correct. Were talking about softer tests, but in parkinsons, neurologic disease its exactly the test that physician would use in their office. So a physician would have a patient with parkinson walk have then tap their finger to see if they could do this that and phonation or voice test is within that has a dimension of sophistication that probably goes beyond what some doctors provide in the office. Can you give us a sense of what else is in the works in terms of what other diseases youre targeting, how they could be used with smartphones . Sure. There are five apps in first class of apps. You mentioned parkinson. Here at sage we worked with the danafarber ucla and penn to develop one for women treated with Breast Cancer who have effects of therapy to track symptoms. Beautiful work out of mount signy, looking at individuals with asthma at harvard an app allows people to be more in contact with who they are in diabetes, and brilliant work by Mike Mcconnell everybody if you give people a chance to follow their own exercise do they start trying to do things more can they improve their heart age by being in contact with what theyre doing with who they are. Very interesting. Thank you so much for joining us. Well keep an eye out as the new apps become released. Markets flat so far today. But financials really sticking out. Dom chu out. Dom chu has more. If you look at whats happening financials up 0. 4 right now the leading sector in the s p 500, in this all ahead of todays afternoon results of the fed stress test results where well see whether the capital positions at some of americas largest banks is up to snuff for possible capital return. Look at the financials index moving off its highs but the big names the focus, names like citigroup and bank of america, jpmorgan, Goldman Sachs, the names that every investor wants to see pass these tests if they are able to do so maybe capital return plans get green lighted. So again, simon, financials very much in focus whether or not these banks pass those fed stress tests. Back over to you. Closing bell 4 30s this afternoon. Up next the fallout from the strong dollar in europe. How is it affecting one of germanys key export industries. More on that when we come back. No doubt about it a big exporter in the eurozone like germany its bund time with the euro almost collapsing. Phil lebeau joins us from germany to focus on the automotive makers. I see theyre surging on todays market phil . They are, simon. I think some of that has to could with a lot of other factors not just whats happening with the euro and dollar. Were here at vw headquarters this is a customer delivery center. All the vehicles being delivered here were built in europe and being picked up by europeans. This is not where americans come to buy a vehicle in europe and bring it back to the United States. But as we talk today, the euro is once again under pressure. Its broken through that 106 point, it is down 106, and were looking at lows that we havent seen for the euro relative to the dollar since, what 2003 and it has brought up the question that weve heard from a few people here is it possible that we could see the euro and dollar trading in parody. It wasnt, you know too long before 2003 that they were briefly trading in parody and now were hearing people here say could it drop below parody the euro down to 0. 85. For the european automakers exporting their vehicles to the u. S. A lot of people are saying while these are great times, but keep in mind when you look at u. S. Auto sales the percentage of vehicles that are sold out of a total market of 17 million, the percentage that were built in europe and then shipped to the u. S. And sold is very small. Just 6 according to ihs automotive. By comparison japan, 9 of the vehicles sold in the United States came from japan and then you see korea with 4 . The majority of vehicles that are sold in the United States are built in the United States. The bmws, mercedes, the volkswagens are coming from chattanooga, the bmws and mercedes from plants in the south as well. As you look at this keep in mind there is a little bit of benefit for the european automakers but not a huge boom. Tomorrow we are going to have an exclusive interview from the volkswagen annual meeting with dr. Martin winterkorn, he rarely talks but we will have a chance to sit down with him. Do not want to miss what he has to say about his yacht look for the Auto Industry in 2015. Guys, back to you. Looking forward it to that if phil. I hope you ask him about parody on the euro. Talking about automakers and currencies i would think for the u. S. Auto industry its more threatening whats happened with the japanese yen, big rivals toyota and honda, getting the benefit, is that helping give those japanese automakers an edge over their u. S. Rivals . Over here in europe in terms of sales in europe . In general, japanese benefits. Sure. Benefits japanese carmakers have . Absolutely. A huge benefit for them. We have talked with executives in detroit and they have said time and again r they worried about the euro relative to the european competitors . No. Theyre concerned about the weakness in the yen. That is a far greater concern for them. All right. Thanks very much phil lebeau, from germany, reporting on currencies. Love it. And the impact of the automakers. You saw him there, over to jon fortt with a look at whats coming up next on squawk alley. Better be talking currencies. We have unique perspectives gary cohn president and chief operating officer at Goldman Sachs will join Carl Quintanilla and flip cart two executives from that indian ecommerce jugger net and meerkats founder and ceo on the growth of that app. All coming up on squawk alley. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. 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 . At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. Good morning. It is 11 00 a. M. Here at Goldman Sachs headquarters in new york city, its 11 00 a. M. On wall street and squawk alley is live