Transcripts For CNBC Worldwide Exchange 20150126

111. 7. Its higher than what analysts were expecting. Current conditions index 111. 7 in january versus the consensus of 11. 6. German january coming in at 106. 7. Thats the overall level. We should point out in general were seeing stronger than expected Business Climate index data rising in the month of january. We should point out that it institutes german Confidence Index did rise to 106. 5 in december. So better than expected numbers here out of germany. The Business Climate index. Joining us now is discuss is david owen. David, quick take away on what were reading now. It carries on the trend. You saw on the upside. We have for friday and highlights orders for manufacturing and services in the highest level for five months. If you look at the real data in the Third Quarter of last year for the eurozone overall that grew at the fastest rate since 2007. We are seeing a consistent flow of data surprising on the upside. I think europe is recovering. How do you think markets will digest disappointing news versus strong data. Now we know the ecb has launched the program. Will they beless likely to criticize lackluster data. I think 2015 is the year. Gdp getting revised up. The ecb is coming along with a weaker euro to actually given i think later this year slowly but slowly. There was that period in october, i believe, late september october where the data coming out of germany, europes largest economy was coming in disappointing. That was a concern. Now were seeing a rebound. What is for the change . I think its been driven by real household disposable income. You break down that data we had it eurozone overall by country. Germany is obviously the leader. A lot like the u. K. Recovery. Only lead by domestic demand. I think well have recovery lead by domestic demand and the export section will take over as we duothrough later this year in 2016. A lot driven by the depreciation in the euro which well discuss in a bit. David stick with us from jeffreys international. Well get to david owen about greece as well. The left swing syriza party took over. Two seats short of the absolute majority. The final vote is not in. Party Officials Say they clenched a deal with right wing independent party. Speaking a the Celebration Party they promised a new beginning. We will regain dignity. And the message is that our future in europe is not the future of austerity. It is the future of democracy, solidarity solidarity, and cooperation. Lets get straight ahead to julie in athens. Youve been there youve see the euphoria on the streets. Is it still continues . Reporter theres a lot of optimism, i think here about a change as far as greece is concerned. And actually changing the approach on greece. First things first, they have to have a coalition. We have the syriza party in talks with the independent greeks. They arrived around 30 minutes ago. Were talking about a party on the right side of politics here. It would mean a coalition of the extreme left and the right. The only thing we think they agree with now is a push back on austerity. Im hearing a lot of concern right now about just how this will work and whether or not its a game of chicken as far as to put this dominate force together here. Nothing doing as far as any program is concerned. The speech he gave in the early hours of this morning is theyre irrelevant to them. Theyre going wreck the memorandum of understanding. They get around 7 billion euros it was hoping to the end of february. Thats the problem. Never mind what he wants its immediate concerns. If theyre not in a program after february it means that the ecb is no longer going to give their banks money. Thats part of the reaction you can see today. The banks selling off aggressively yet again. They have big Debt Repayments. They have not been collecting tax receipts because people dont pay taxes when theres stability here in greece. Theres a crunch coming quick if theyre not careful. A lot of questions being asked how two potential parties never in power are actually going to run this country never mind negotiate things further. So a lot of unknowns now. We have to wait to see how the talks go on as the day progresses. Back to you. Julia, thank you so much. Ecb board member has said this morning that the central bank will not take part in any debt cut for greece. We also spoke to him. We had this message for athens. Listen in. So the message to greece is a new message. Its not a message to greece wholly. Its a message to all eurozone countries. If you want the ecb to take your bonds as collateral. If you want the ecb to be in a position to buy the bonds you need the euro program. This is because we need to see a dynamics of the reform. And this has nothing to do with the election. The election it is a political discussion. Reforms will be different if the government is different. And that is democracy. To discuss more david owen chief european economist is still with us. Interestingly enough now im in london i have more exposure to greeks than in new york. Many of them say that austerity has delayed the countrys economic rebound. And that perhaps stimulus was the better strategy. Do you agree given that greece is still dealing with a tough situation . 2010 they came out with the revised some budget data and the debt revealed how bad they things were. They needed easing. What the ecb should have been doing is moving quantitative easing sooner. I would argue. Now the phase the austerity is coming to an end. You look at the latest imf numbers the austerity required over the next year is modest compared to what they have been through. The economy is recovering. 2014 is the first year they saw positive gdp growth. Theyre going it see deposits leafing the Banking System. The tensions will rise inside greece. Its hardly a surprise. Everyone knew it was going to happen. Hardly a surprise. From here on out, what does it mean for eurozone countries like spain where you might see antiausterity parties taking concern. The ecb came out with a program that was bigger in size than people expected. Its sort of the program may well extend beyond the time frame of september of next year. So also they gave a carrot to greece. If they come out to comprise the ecb will buying the paper. Once the original s p roll off the Balance Sheet in july. Theres that current. I think greece will surprise. Theyll have to. Their Banking Sector is just shy of 400 billion euros. Their gdp is 175 billion euros. If they dont comprise theyre cut off from the ecb funding and pushed outside the eurozone. Do you think greece is in jeopardy of losing austerity. Do you think cypress understands the ramifications of that . I think they will comprise. At the end of the day, theres more exceptions. It has to be thought out. The letter on friday in the ft was important. Their historian ben freedman published how you need debt relief. Germany having the debt relief after the 1950s. Its about to be another write down in some point. If sip russ comprises and goes back to what promises in the medium term or slightly longer term will that lead to more political stability in greece. It doesnt mean the crisis is going to be over right . Well, its going to be down to the debt. At the end of the day describing austerity in greece is coming to an end. Its like im surprised it didnt happen until now. I think the biggest austerity pushes in the early years of the program not now. What is being put on the table for greece is quite modest Going Forward compared to what theyve been through. They need easing and slack. Thats require the. But, you know, if the Banking Sector runs out of money. Greece will be printing outside the eurozone. All right. Were going to discuss greece Going Forward in worldwide exchange. Its a big story. They went from being a protest party, essentially, to winning the greek election. David owen chief european economist at jeffreys internal. Thank you for your time. Following the weekends election have the risks of greek sovereign default or the greg deck return to the table . Head to cnbc. Com. Well get to the viewer exchange now. It has to do with greece. Its dominating the headlines ahead of a big earning week with apple, facebook. Comes into focus with the twoday meeting this week. Which is the bigger market mover. The macro picture or corporate . Join the conversation on worldwide exchange. Get in touch with us. You can email us. Or you can tweet us. The interesting day thus far for european markets. Last week once we got the ecb quantity easing program we saw the stocks move higher. It hit a record high or a sevenyear high. The german index hitting a record high. Seeing a gain of around 2 . Today a little bit of uncertainty on the table given that greek election investors trying to understand the ramifications for broader europe and how investors should trade europe now that we know the syriza party did win the election. Stoxx 600 trading flats. We come off the lows of the day. Lets dive into the european markets show you the gains and losses. Trading at 10698 up about a half percent. Keep in mind they gained about 2 on friday. Seeing a gain around 10 points. The micex right now trading sharply lower around 2. 7 following a weekend of violence in Eastern Ukraine. The threat of further western sapgss thats what investors are worried about. Switch to focus to bonds. Given the uncertainty whether the ecb will unveil a Quantitative Easing Program. Given they were able to surpass expectations we saw the rotation out of wonds to equity. Were looking at the german trading at. 36 . They like the 10 year on eye tal ya is. 5. On germany 8. 7 . And a u. S. 10 year before the next trade at 1. 79 . World leaders are deciding on saush for a fourth day as the kingdom looks to get back to business following the death of long time leader king abdullah. Its open for the First Time Since the death of the ailing monarch. We saw a bump up at the beginning l. Well keep you updated how Market Movers over there. We are there with more. Hadly, we talked about this before. Its been a smooth succession planning right now, but is there likely to be a jostling for power in saudi arabia over the next year or so . Absolutely. I think that youre absolutely right. The same point, of course most of that is going to happen behind the scenes map were seeing right now on the ground here in rio is back to business. Traffic is just as hectic as it is on every other day in this overcrowded city. Leaders gathering here to mourning the passing of the ding inging inging of the king. The chairman of google making a speech here today. I want to mention with World Leaders coming in we know that u. S. President barack obama is planning to come here on tuesday. Hes bringing First Lady Michelle Obama and theyre meeting with the new king as well as the crowned prince. That is a chance for the u. S. To attempt to reset relations after a few u years of discomfort with the region. Thank you for that. All right coming up on the show. Google gets in the game. The tech giant strikes a deal for youtube to deliver and just in time for the super bowl. We bring that full story. And president obama unveils a Nuclear Breakthrough with indian Prime Minister modi on his twoday trip to the country. We get analysis from ashmoor in about two minutes. Mobile payments continues to disrupt the credit card industry. Well speak to the ceo of visa europe. In an interview about how the company is hoping to cash in on the emergeing trend. Lets get a check on asia market. A bit of nervousness earlier in the session because the results out of dwrees. Things have turned around a little bit. At least in hong kong. Its now in the black. Thats right. A degree of composure at the end of the trading day this monday. After volatility. Some choppy moves in the asia market. After the weekend Election Results in greece. A lot of investors have taken a step back and reassessed and come to the conclusion that perhaps hell tone con the rhetoric and ultimately find middle grown or a comprise with the e. U. On the terms of the bailout agreement. Nevertheless, there was a fairly strong bid for the japanese yen and the safety that it does encompass and the strengthening of the local currency in japan. Put a little bit of downward pressure on the exporters. As you said the composure for china stocks. Here is the rank of the performer in southeast asia. Down by more than 2 . Some local political facts disparity. The antidraft agency resigned and there is some calls for the president to interview in this dispute between two Law Enforcement agencies. Were watching the politics in jakarta. Back to you in london. All right. Thank you. Now were going talk weather. It is getting cold outside. New york mayor bill de blasio warned a blizzard set to batter the east coast monday count worst the city has seen ever. They issued a blizzard warning from monday afternoon until tuesday for the northern section of the east coast. Kristen Kristen Kristen has the report. Its a race against time. I remember the blizzard of 78 around this area and we were snowed in for days. Bracing for what could be an unforgettable blast. Up to 2 feet of snow or more in boston. Making sure theres gas in the car in case theres an emergency and grabbing an extra shovel. Keep in mind this all comes after the area was blanketed with about 6 inches of snow on saturday. These are some of the piles that are left. These piles about to get a whole lot bigger. Stores were filled with people stocking up on supplies and food. Extra batteries in case the power goes out. And staple food. Officials warning when the blizzard hits travel could be impossible. The main streets are pretty clear. Take a look at this. Some of the secondary streets are still covered in snow. They have less than 24 hours now get this cleared off before theyre covered again. Around massachusetts, more than 4,000 plows, spreaders, and loaders are on standby along with 300,000 tons of salt. In new york city 2400 workers will be on 12hour shifts around the clock to clear the roads. From the mayor, a warning to prepare for the worst. The early projections for this storm are that it would easily be as much as 2 feet of snow potentially pushing on closer to 3 feet of snow. The impact of the storm is likely to be felt across the country. Many airlines are already waiving flight change fees for travelers in anticipation of massive cancellations. Back in massachusetts just about an hour from boston plum island residents are hoping theyll avoid a repeat of the 2014 noreaster when some left their homes to the ferocious sea. Were a little bit anxious but i think we have built up the retaining wall recently. I think well be safe from that. All right. Mobile payments are changing everything from major credit card companies. Thats according to visa europe who just reported the strongest Financial Performance to date with a 10. 4 jump in transactions in 2014. Joining us now is ceo of visa europe. Thank you for joining us. Digital technologies are changing the way that consumers are making payments and, of course executing transactions. How is visa trying to capitalize on the trend. Especially given the stiff competition with the likes of apple pay. Thats a good question. Digital is changing everything for payments. We see, really, the stars aligning between Digital Payments and mobile payments. Visa europe is an enabler with the payments. We have a big role to play. Across europe more than 100 million visa cards are contactless as are 1. 8 million visa terminals. Tell us what contactless is and what it means for our audience. Its a great possibility. Its ten times more than what we have in the u. S. So the acceptance net worth is here. Theres a a way that is smoother and easier. Thats very convenient for them. I would take that a step further. I dont like pulling my card out of my wallet. I prefer to hold my phone up. Theres certain vendors that do that. Uber you dont have to do anything. How do you make money off that . You were hoping to promote apple pay but they take 0. 15 cut on every transaction. So how do you guys monotize that shift to apple pay . You take a cut in order to get more transactions . Its a very different system. So we as visa europe do not take will make money on the payments. We have fees that our customers members pay to us for the service and also to the benefit having the benefit of the network. As you were saying referring to the first part of your question. Youre one of the new customers you love mobile payments because you believe its smooth. Its convenient, its easy and it makes your life easier. Thats exactly what it is about for us. Its like a new revolution that is mobile. Its changing the way we do everything. Its not happening in those payments. Does it increase the risk of your data being comprised . Youre relying on these type of Payment Transactions and services to basically go and get on uber or go to starbucks and get your coffee without taking your credit card out . This of course a new form of payment and therefore in terms of the security are at visa europe were obsessed with security. We spent a lot of time energy and money trying to prevent problems. What we see is the new form of payment, especially the contactless that you mentioned, are safe and secure globally as a company were it is secure but we need to focus on it to make sure we prevent any kind of problems. It clearly needs to be a top priority talk to us about your structure. I know, its owned by the european banks that suffered due to the anemic lending. Is that impacting your business as well . Overall, as you said were in a recession. As you know visa europe is a different entity from the international. Of course, the overall economy trends doing well for business but the visa brand is very strong. Weve been very successful throughout the crisis our numbers and volumes. We see our transaction increase ing ing. Its clearly a big trend and one to watch in the tech as well as the payment space. I would love to get your thoughts we dont have time but do you think thats a threat to your business . Given its a crypt payment being used . Thats excitementing. We see a new form of payments everywhere. This is dietexciting for the consumer. I have to say something, i would say lets make sure we keep what makes payments secure like security, federal protections. You dont think theres visibility in bit coin. Theres not enough clarity in terms of how the transaction works. We want to make sure we have the currency, the one we have for instance, with visa. Well lev it there. A pleasure to have you on. Thank you very much. Still to come on the show as the syriza victory soaks fear of a grexit. Thats right. Plus, a prospect of further sanctions on russia weighs on the ruble after a bloody weekend of violence in ukraine. We bring you the latest after this break. Greece syriza party vowed to have a government in place this week as alexis begins Coalition Talks following his victory. Market reaction is mixed following 11year lows but greek banks selling off. The russian market under intense pressure as the u. S. And e. U. Threaten moscow with further sanctions after a severe escalation of fighting in Eastern Ukraine over the weekend. World leaders arrive in saudi arabia to pay their respects following the death of king abdullah. The countrys Stock Exchange opened slightly higher on the first day of trade after a period of mourning. And the warning going out to millions of people from new york to boston as the region braces for what could be the worst storm on record. All right. Lets take a look at european markets. Remember on friday the euro stock 600 index climbed to a 700 year high. Looking at european stocks up just about 3 10 of a percent. We got the german index rising in january higher than what the analysts expected. The German Economy being helped by Lower Oil Prices as well as the weaker euro. The outperformer right now is the xetra dax. Right now higher just around threepoints. Trading higher by around 6 1 2 percent. Over the past one month being helped by of course expectations that Quantitative Easing Program which mario did deliver on thursday. And weve just had a few flashes come out. Some headlines the independent party leader from this moment theres a government in greece. So greece has a government with their support. This is what theyre saying. Its a far right party. Formerly a coalition which is going to be forming a government. Julia raised some concerns when we spoke to her. She was live in athens how the two parties will govern. A lot remains to be seen at this point. Were seeing it play out. Some of the untenderty in the market. Take a look at 109year bond yield. In greece as soon as we saw trading start jump up to nearly 9 on the open. Youre seeing safe haven bids. Youre seeing the 10year treasury and german bonds move lower in terms of the rates. The euro earlier today at a fresh 11year low. It come off that a little bit now at 112. 48. Of course uncertainty out of russia is something investors may have to factor in this week. Russia has come under fierce criticism after an escalation in violence in ukraine over the weekend. Heavy shelling left 30 people dead in the ukrainian city. Rocket fire slammed into a market schools, hopes, and shops. The russian ruble is trading sharply lower versus the dollar amid the threats of further sanctions on moscow. The equity index also under pressure trading down just by around 2 1 2 . Speaking while on a trip to india president obama placed the blame for escalation in violence at mowscows door. Were concerned about the latest break in the ceasefire and the aggression of the separatists with russian backing. Russian equipment, russian financing, russian strading and Russian Troops are conducting and we will continue to take the approach that we have taken in the past which is to ratchet up the pressure on russia. And i will look at all additional options that are available to us short of military confrontation and try to address the issue. Condemnation has also been swift from the e. U. European Council President has warned fresh sanctions for moscow. E. U. Foreign ministers are due to hold an emergency meeting about the situation on thursday. As mentioned, the leader of greeces independent party lent the support to a new government in at thens a of the the Left Wing Party sweft to victory over the weekend taking over 36 of the vote. That was just two seats short of an absolute majority according to the latest count. During our coverage, we spoke with german finance minister. He said no plans were being made from a greek exit from a single current si block. Were in favor that the eurozone sticks together. And do whatever we can. Now is greece in jeopardy of losing its austerity if it doesnt stick to the plan . That uncertainty is being felt in the Financial Sector. Some of the greek banks are underperforming now. One of the reason you see the at athens index trade down on the day. Were in athens with a special interview on the outlook of banks and what to expect Going Forward with the syriza party in power. Julia, take it away. Reporter thank you. We just reported it looks like this is the information we got in the last few minutes they formed a government now and the independent greeks are going to transform a coalition with the syriza party. Were only hearing that too. It will be interesting to see how theback baknks react. Whether they see it as a gad thing we have a government or the concern of the antiausterity profile. Both what are your thoughts on this . It sounds like we have the independent greeks. Theres a coalition formed. Now that we are passing in the process for forming a government, so we have to be persistent and understand the next steps. Its interesting, we look at the economy now not only in the eurozone oil prices are lower. We have the ecbqe. We were talking about this, too. Arguably in the best position here in terms of the economy to try to negotiate here. But his time is very short. We know the banks are a problem. The ecb will cut off funds at the end of february. Are you not more concerned . Yes, as we are mentioning were in the best position. And at the same time we have low euro. We have low oil prices and we have lower Interest Rates. It makes greece isolated because theyre not going to buy greek bonds. The Stock Exchange itself shed a fifth of the value in the last three years. What gives investors confidence here . Is it a uturn as far as it is concerned . As you probably have noticed, the day after the announcement the Stock Exchange has been reacted very positively. And, of course the main issue for everybody here is so the major issue for greece is how can attracting investment lows and the history of the stock market it is a successful has been a successful story in attracting following investments. Will it do so in the government basically saying were going to separate. For investors looking at greece theyre unsure of where the country is going surely. What about the process Going Forward . I mean, we can talk about the potential for debt running in march or big Debt Repayment due in july. The Coalition Government start has to collecting tax receipts. How convinced they are capable of doing that . Im convinced in greece there are many i dont want to be sure that the approach to be analyzed. Of course, you are here. But still some potential for the greek economy. The message is dont panic. Give us tom and well work through this. Exactly. Thank you for listening. The ceo of the athens Stock Exchange. Give us time to work through and it appears what the market senses a little bit of focus on the banks. They seem to be in the firing line of the sort term. Now we wait to see what the Coalition Government will do. Time will only tell. Thank you for that interview and reporting on the ground of athens. Greece is dominating headlines ahead of a big week of earnings with apple, google, facebook dominating the tech results. The fed comes into focus with the twoday meeting this week. Which is a bigger market mover . The macro picture or corporate . Joining on the conversation here you can get in touch with us. Email us or tweet us. I enjoyed your social media reporting. Thank you. Yeah. The 43 hot dog made the rounds. Thats crazy and the 55 caesar salad. This is on the back of the Swiss National bank move. I heard someone describe it well. A billionaire price surging. I think that was it. They knew that a lot of rich people were going to be there that week. They said lets jack it up like uber for certain times. Youre right. Im sure they applauded that move. Luckily i didnt pay for that. Thankfully. I hope it was a good hot dog. No it wasnt. I dont know if you saw that picture of the caesar salad. It was not good. Lets get to corporate stories. Are shares trying hider after the French Nuclear Group Appoints a new cfo. Expected to post a loss after four years of straight losses. Shares fall in frankfurt following a report germany will stop selling arms to saudi arabia according to german newspaper. Angela merkel and eight other ministers made the decision on wednesday setting instability in the region. And air lynn gus said its reviewing a third bid from the iag. Catherine joins us on set. We were talking about this earlier this morning. There could potentially be an election. It could prove to be a hot topic. Absolutely. Already it is from politicians from the Coalition Government and questioning the selloff. But having said that the Irish Government, i dont think this particular bid would have been if the Irish Government hasnt let it be known what level theyre prepared to sell out. I think it will be interesting. I think theyre going to be looking for guarantees for the protection which is the key to irelands economy. Tracing the transatlantic roots and london heathrow roots and well preserved. We talked about jobs right . Iag has come in before and taken over and bought Spanish Company and sought thousands of layoffs. Thats a fear that could happen at air lynn gus. Is that likely that would happen . I dont think it would be anything of that scale of job losses. You havent got quite as much overlap between iag air ealing us. And its a smaller airline. This is a smaller deal. I think there might be a few but were not going to see those kind of levels of job losses. All right. Catherine, thank you so much. I want to bring our attention to movers in the airline space. Fly me group listed on the ftse 100 shares fallen about 25 on the back of disappointing earnings as well as an outlook. The stock now poised for the worst oneday drop in over three years. Interestingly enough of course the Airline Sector has been able to benefit from Lower Oil Prices. Weve been seeing the Airline Sector outperform over the past couple of months. Well dig through the results and figure out why fly me was to come in disappointing in terms of earnings. Well get you the latest. Now turning our attention to dubai. The dubai Stock Exchange is tumbling right now. Its down about 4. 6 hitting a twoweek low. This, as traders say, on the back of weaker oil prices. Oil trading below 48d a barrel. Trading at the multiyear low. Crude down about 1. 7 . Light crude down around 1. 5 . Lets look to japan. It was the largest ever logged since data became available in 1979. We have all the details live in tokyo. Over to you. Thank you. Last year japan posted a record deaf side around 108 billion. The country marked fresh record high trade losses every year since 2012. The biggest reason is the increase in energy import to make up the powerplant shutting in 2011. As for 2014, liquefyied natural gas inports rose by 11. 2 . Weighing on the figure is the weak,ing of the yen. Even though the volume of imports increased by 0. 6 by value total imimportantports up it weakened to 105. It was just 96 a year before. The drop in oil prices in the latter half of 2014 helped east japans trade deficit. In december shrank for the third consecutive month. Thats wherics ports. They grew to all regions especially for asia the u. S. And europe. Most notably for cars electronics, and steel. Thats all. Back to you. Good news outs of japan. Thank you very much for that. Saudi arabias Stock Exchange reopened following death of the late king. We bring you the latest and other emerging markets after this. President obama received a warm welcome from indian Prime Minister over the weekend. They kicked off a twoday trip with a public bear hug. This as the second time obama has met with modi on his home soil which makes obama the first sitting u. S. President to visit india twice. The two laersd announced plan fors a nuclear deal. That cleared the way for u. S. Energy companies to invest. Obama pledged to step up collaborations in the Technology Industry as well. So to talk about this opportunity is julie dickinson, head at ashmore. Julie, a pressureleasure to have you in studios. The announcement last night, this came as a surprise. The potential Nuclear Civil agreement. What does it mean . Its a fantastic opportunity. Its full of positive surprises. We have this deal coming through. Improvements in the working relationship on the Technology Sector is going to be important for india Going Forward. All at time when strong positive sense behind modi. Lower Energy Prices inflation is coming off. India is in a sweet spot right now. We see an upturn coming through. And all of this is in full swing and the Business Cycle is picking up. For us its a fantastic opportunity to see earnings come through as it comes together. People start becoming too positive on certain stock or certain market. The bond is trading at the record high. Its up about 34 over the past one year. Is evaluation a concern here . Absolutely is. You have to do your homework. Like we do any time. Fundamental stock picking is an important opportunity for us. Certainly some stocks and parts of the market will become overheated as with this sentiment. Just time they sell off and get cheap when we think sentiment is overly negative. In india because theres thousands of stocks listed in the market plenty that are relatively attractively priced. The Financial Sector for example, is an area were bullish on. We think theres more to come through. More stimulus to come through. Theres a lot of room as inflation falls off as the fiscal spending comes under control. Theres a lot of room out there to injects more stimulus into the economy. It doesnt seem in some ways too soon to call the, you know, Indian Economy as recovering and be so optimistic. Before the Interest Rate cut they did express some, you know hesitation especially in cutting that rate. He said he wanted to make sure that inflation at the problem has been tamed somewhat. And its only really been in the last month. We did see a little bit of flare up. The cut was small. Only about a quarter of a percent. Theyre taking it slowly and theyre watching. Theyre doing the prudent thing. At the same time were seeing earnings recover a lot faster than we expected in india. So thats exciting for us. And finally, you see a lot of investor flow coming through to india. Not just in the foreign market but also domestically. The domestic investor has been away from the market for five years now. Theyre starting to come back through. We see a great opportunity here to tap into that market. You got luck with declining oil prices. Thats one of the reasons inflation has come down. Its one of the Biggest Challenges facing india over the past couple of years. I think thats one of the reasons they cut Interest Rates because they say lower erer oil prices are here to stay. Theres two big things. The energy price. Also food Price Inflation which has been a problem in the past. Monsoon season plays a big role in this. Its an area monitored carefully. And if a good monsoon prices and prices stay under control on the food side. But theyre the right things in our view. So optimistic. We want to talk about saudi arabias new king. Hes committed to continue newty of bilateral issues with the u. S. Its according to a statement from the white house. President obama is likely to discuss the fight against islamic militants. Saudi arabia has reopened following the death of the late king abdullah. That is a delay chart you are seeing, but the market did open up about 8 10 of 1 . It eased a little bit. I think it goes to show the saudis were pretty clear in their succession planning. As clear as they could be. But i cant keep track. I saw, you know, a family tree chart and there are so many people. It seems sort of like a recipe. At least in the future theres going to be some power plays. I know, that king solomon named prince mohamed who is much younger as a generational shift. I think the thing about the royal family in saudi arabia they take a long time to consider these things. Theyve been having these conversations well ahead of this transition time. So what theyre looking for is continue newty as well as, of course, a new generation. They understand theyve done all the right things to address much of what has been behind the arab spring. Weve seen in the region in north africa, for example. So they have understood that. And step by step theyre introducing mechanisms to address some of the major issues with employment for example, Discretionary Spending et. Cetera. And done that quite well. And theyre managing it carefully. Alongside in an environment we have falling oil prices. Theres been a lot of speculation about what the saudi government can do. What the budget is. So far theyre staying on track. Theyre doing what theyre saying theyre going to do. Theyre doing it carefully and cautiously. Little by little theyre opening up and deregulates certain part of the market. Its a responsible, very considered way of approaching things, and you can never find out kmakt exactly that theyre going to do ahead of time. The opening of the market later this year will be exciting to watch. Zbles specially the oil trade. Were talking about the largest crude exporter. And change in leadership. The question is will it change their oil policy Going Forward . Its hard to say. Again, in the equity market in saudi arabia. There are no listed out companies. When youre investing in oil companies. Youre investing in anything but oil. Financials consumer plays, manufacturing. Theres a number of companies out there that have nothing to do with oil. Theyre doing very well. And at a time when oil prices are down. Consumer spending is up. Its very exciting to us. Now you saw u. S. President barack obama cut short his trip to india to go to saudi arabia to pay respects to the late king. It doesnt feel like the relationship has changed much at all. Even though the u. S. Is coming more oil independent. How is that going to play out Going Forward . Its hard. We dont speculate on politics too much. Were focussed on iranings. Earnings. In saudi arabia theres plenty left to go. Thank you very much for your time. Always a pleasure to have you on. And still to come on the show. The euro eases off the 11year low against the green back. Could go below party . Well get one view after the break. And coming up as well, the u. S. East coast is bracing for what could be the worst winter storm on record. All the details coming up live from new york. Thank you for joining us here on worldwide exchange. These are your headlines from around the world. Lets start with the weather. Button down the hatches. Thats a warning going out to millions of people from new york to boston as the region braces for what could be the worst storm on record. And Greece Syriza Party is set to form a government with the right wing independence after sweeping to victory in weekend election. Market reaction is mixed with the euro coming off 11year lows. But greek banks are selling off. Russia in focus. The russian market under intense pressure as the u. S. And the e. U. Threaten moscow with further sanctions after a severe escalation of fighting in Eastern Ukraine over the weekend. And president obama heads to saudi arabia where hes due to discuss isis and yemens political crisis with the new king, king solomon. Announcer youre watching worldwide exchange. Bringing you Business News from around the globe. The North Eastern u. S. Is bracing for a winter storm that could dump up to 2 feet of snow. A blizzard warning has been issued for the region and heavy snow and high winds expected through late tuesday. New york city mayor came out with members of his Emergency Response team urging residents to use extreme caution. So this literally could be one of the top two or three largest storms in the history of the city. We need to plan accordingly. So my message to all new yorkers is prepare for something worse than we have seen before. Several airlines are waiving change fees which would let passengers flying to or through the northeast change their itinerary without paying the varnd change fee. More than 1800 flights are cancelled today and several more expected on tuesday. Both of us are from that part. It brings back memories of the polar vortex late 2013 early 2014. Unfortunately, i was caught outside reporting from times square about the impact not just of the weather but, of course consumer traffic as well as, you know, wall street carries about the Financial Impact it could have on sales. In fact there are specific sectors to watch when it gets cold outside. Apparel, north face Deckers Outdoor which makes the uggs. Do you wear them . I dont. I wear the canadian brand. I love them. Very great. I was trudging around in those last week. There is equipment makers. Toro is a company that specializes in snow blowers. Others say netflix could be a cold weather trade. More consumers are spending time at home Binge Watching orange is the new black. Remember the polar vortex a lot of Companies Used it as an excuse when the earnings season came up. I wonder if well see the same thing. Legitimate or not. Especially if it lasts for awhile and disrupts activity. Something well be watching. On that note take a look at u. S. Futures and how theyre trading. The s p 500 down just about 6 points. Its a big week for the nasdaq. We have apple, goog. Legoogle, yahoo . Diving into the european markets. A mixed day of trade so far. Keep in mind its coming off what has been a rally in european markets on the back of the bank. Monetary easing plan if thats enough to stimulate the eurozone. Right now investors seem to be taking a cautious approach to trade. Were looking a the ftse 100 down about 14 points. If youre looking for gains take a look at the German Market xetraxetr arks xetra xetradax. The economy being helped by Lower Oil Prices and weaker euro. Thats helping the German Market. Cac 40 up. Taking money out of russian equities. Were looking at micex down about 2. 67 . A lot to look forward to. We have greek election the fallout of that. What that means for broader europe but russia clearly a to call point as well. Well take a look at the ruble, too. It seems like today has been touch and go. Weve seen markets in the red. In the black going back and forth. Lets take a look how the other markets are doing. We have the yield. So we did see some investor nervousness after the greek election after the syriza party came into power. So their leader expected to be the new Prime Minister of greece. They have now formed a coalition with the far right party. We did see a little bit of a flights to safety risk offset. We have the 10 year u. S. Yield. It did go lower but now were currently at 104. 11. The yield at 1. 79. The same story here. A little bit flight to safety. And here we want to look at greece. Because the yield jumped up to nearly 9 when trading began because of the nervousness. Investors wanted to stay away from greece we have seen it ease back little bit. We are seeing the touch and go situation. Lets take a look at the rates. We want to talk about the ruble, which is lower against the u. S. Dollar. This is, of course as the west was talking about more sanctions on russia. Of course, already hurting from Lower Oil Prices and previous sanctions. Some diplomats wondering whether or not the west can get the acts together to implement substantial changes for russia. Were looking at the euro. I was saying earlier it fell to a fresh 11year low at the start of trade today. It actually dipped below that 111 level. We have seen it come back a little bit. Now lets take a look at commodities as well. It has been a rough day for commodities. Oil coming back down. We did see wti crude below that 54 level. It regained a little bit of ground and brent crude has been under some pressure. Were currently trading at 48. 20. Another sore spot for places like russia. We talked about the dubai Stock Exchange down nearly 5 . We did see a tick up previously. Its been a volatile day. So a lot of this story is that as well as zinc. Lets get to singapore for the latest break down of the asian markets. And how is it looking . Are we still seeing the sort of turn sentiment take hold . Is that still there . Well, there was a degree of choppiness and nervousness associated with the outcome of the greek election youve been talking about throughout the morning, but i would say this theres a degree of composure in the asian market. Losses seem to be limited around 1 and a little bit more if you look at the jakarta which ill get in more detail later. I think the feeling among investors is that yes, the dust is starting to settle here. Perhaps alec is not going to be hard lined in the demands on the terms of the bailout agreement as many thought he would be. A lot of people here seem to think theres going to be some comprise between greece and the e. U. Thats why we saw a little bit of composure and stability in most of the markets especially in the Greater China region. There was a dash into the relative safe haven of the japanese yen. Euro was down against the yen as was the dollar. So it was a stronger local currency. Thats the exporters. A little bit of give back for the nikkei. Jakarta has been a strong run up recently. Compounded by the domestic political scene. The latest news on that the deputy chief of Anticorruption Agency resided. Thats started to stoke some public unrest in the capital and calls that the indonesia president needs to intervene in the dispute. Were watching that story. But all in all a fairly stable day. Some markets on the defensive after the greek election outcome. Ahead of the japanese inflation data due later this week which i know investors will be watching closely. Thank you very much. And lets now turn to greece. The independent greek party agreed to form a coalition with syriza after the antiausterity. The leader of the independent speaking in the last hour said there is a government in greece for this moment. Cnbc live in athens with on the ground reactions. Hi. By greek standards this is lightning speed that were moving here. It seems like we have formed a coalition now, as you said with the independent greeks. A party on the right with the political spectrum here with the extreme left syriza party. It seems like the only real thing they have in common is the hatred of austerity. There was a bit of concern here what its going to mean. Are they going play a game of chicken saying we have a Strong Coalition here against everything europe stands for. Saying were going to rip up the memorandum. So a bit of concern here. Right now the market they argue the reason why it is is because if you do short term never mind the debt right now. Never mind the renegotiation. Short term they have bills to pay. They are not collected tax receipts for the last month. They have debt to repay in mid march. The banks are under pressure. If they dont have a february under february then the ecb wont continue to fund them. It feels like europe has plenty of leverage over the syriza and the potential coalition with the independent greece. If thats what were going it see. So yes, i think the markets right now are saying as much as talking about pushing back here they have at lot of laench some comprise will be reached. We wait to see whether we get a cabinet discussed and agreed on today. Thats the latest rumor were hearing. We could see a cabinet as early as today. Moving at lightning speed. I like that. Youre absolutely right. Continue to watch the situation out of greece. Thank you so much. Now the euro coming off an 11year low. How quickly will the euro hit parity this week this month, or never. Head to our trader poll to cast your vote. Straight away youll begin to see the trend. You can have your say on twitter. Joining us is Steven Englander global head of g 10 fx strategy. A pleasure to have you on. I want to get your thoughts. You follow the currency space closely. The euro down about 8 versus the dollar this year. How much lower does it go given the uncertainty around greece and syriza coming to power. Can the euro fall to parity against the dollar . Well, i think it can easily fall to parity. Probably not because of syriza, you know, that does seem to be room to negotiate. Probably not on writing down debt but in terms of making the payment schedule a lot more generous with respect to payments. But i think the divergence is quite wide. Well get some indication this week when we get the meeting as to how confidence they are about the u. S. Economy in liftoff. Even with the numbers priced into money markets right now, money markets are expecting the widest Interest Rate differential between the u. S. And europe in about 15 years. It should be enough to take us close to parity. Stephen, lets talk about the fomc meeting this week which is going to be an important risk event ahead. You think theres potential for a hawkish rather than a doveish surprise. Do you expect them to push the timeline for the first Interest Rate theyre just not going to say so when they meet and have the press conference . I dont think theyre going to change very much. What changed the most since the last how dovish the pricing in money markets have come. Were nowhere close to 2 expected fed funds even well into 2018. Longterm Interest Rates are below 108. I think the fed is looking at this. Especially last week when u. S. Rates went down with european rates. Theyre saying this isnt risk aversion. This isnt pessimism. That is their respondent to the european provision and monetary policy. This is stimulus they dont need right now. So basically from the fed viewpoint, i think that the markets have unwound the tampering theyve done. I think markets are thinking that the fed is going to come out and concern about the economy. It could be the fed is more concerned between Lower Oil Prices and the lower Interest Rates and mortgage yields being below 4 for the First Time Since the middle of 2013 that the fed is going to be more concerned. Of course Lower Oil Prices a concern. That could weigh on headline inflation Going Forward given its already below the Central Banks target of 2 . I want to get your thoughts on the stronger dollar. At this point consensus its going to get stronger Going Forward give the short bit on the euro. Will the stronger dollar be a concern at some point for the fed . Do you expect the fed to comment on that this friday . I wouldnt expect them to make a comment on that. Its the treasury easter story. I think the treasury is sensitive to the fed going too far into it. I think that, you know by historical standards, the move in the dollar is not that big. The fed may not like it but they wont make policy on it. If we get the move on the dollar with disappointing growth with gdp closer to 3 it becomes a issue. Historically the negative impact of the strong dollar and the biggest negative impact of u. S. Trade or the u. S. Economy comes when the u. S. Economy is strong. Its counter. Its not really the main issue that the fed worries about. I dont know. Multinationals voiced the stronger dollar as a head wind stephen englander, were going to leave it there. Thank you for your time and perspective given that the currency space than a vocal point. Theres so much on the agenda this week. Greece is dominating headlines ahead of a big earnings week. Apple, Google Facebook dominating tech results. Comes into focus as weve been talking about with the twoday meeting this week. Which is the biggest market mover . Get in touch with us. You can email or you can tweet us. President obama sends a fresh warning to moscow as fighting escalates in Eastern Ukraine. Well tell you more about that after this break. 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. Welcome back. These are your headlines. The u. S. East coast braces for what could be the worst winter storm on record. The euro falls back from an 11year low after the syriza party in greece forms a government. And president obama gets set to talk isis and the crisis in yemen with the new saudi arabia king. Saudi arabias new king solomon says hes committed to continuity of bilateral issues with the u. S. According to a state fromment white house. As mentioned, president obama is expected to discuss the fight against islamist militants and yemen during his official visit tomorrow. The white house has added. Meanwhile saudi markets reopened following the death of the late king abdullah. Thats a delayed chart, but as you can see on the screen its up about 6 10 of a percent. Lets get out there live. Good morning. Weve seen the saudi stock market opening over the last two hours, as you mentioned went a. 8,. 6 . Its interesting to note it weakened over the first hour. I think its due to geopolitical concerns than to anything with the succession here in saudi arabia. That succession of course seamless transition to the new king, king solomon. King solomon getting set to sit down with u. S. President barack obama and talk a bit about isis. They want to talk about yemen. Couple of years ago you could have been forgiven for saying that saudi arabia was a bit of a can sandra. At this point what you have here is a state that is pretty much surrounded by cay use. To the south you have yemen. They have an order with yemen. At this point weve had a cue over the last several days and the government in yemen is now run by an iranianbacked ma eded militia. You and the traditional faux iran and so many areas of iraq overrun by the Islamic State. As well as, you have to remember there are problems in syria. There are problems in jordan which is holding so many refugees. And, of course the saudi government has been backing the new regime in egypt over the last year. The president speaking to us last week committed to the relationship with saudi arabia. Its no surprise that barack obama would cut the trip to india short to make sure he sits down with the king and maps out a way forward. Thank you for getting us the latest. Still to come on the show. China is officially set to overtake the u. S. As apples number one market. We discuss as we preview the tech giants earnings. [ male announcer ] whether it takes 200,000 parts 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. Whether its building the worlds most advanced satellite, the space station, or the next leap in unmanned systems. At boeing, one thing never changes. Our passion to make it real. A pair of European Pension funds have reportedly written a letter to oracle complaining about founder and chairman Larry Ellisons influence over the software company. Pggm and the u. K. s railways Pension Trust will file the letter with the fcc today. They have campaigned for years for more access to the board and oppose the compensation which totaled, get this 67d million last year. The funds got a proposal on to the companys proxy ballot last year to give shareholders power to nominate board districters. But it was defeated. Taking a look how shares are trading down about a half percent in frankfurt. Thats not a small amount. No. Apple reports earnings tomorrow. Investors are looking for important details on china. Analysts are expecting the tech giant to reveal it sold more iphones in china than in the u. S. For the first time ever. The deal signed with china mobile last year in the release of the iphone 6 in october is credited with helping it reach the milestone. Now i remember that china mobile deal. It seemed to go on forever and ever. They both needed each other so badly at china mobile to get more customers. A lot of folks want the iphone there. It seemed to work out well for both. Its interesting for this is true. That china smartphone sales surpass the u. S. Even though apple was not the first mover in china, they still have been able to use their strong brand name and exceed sales of some of their competitors. Which is interesting because, of course, the iphone 6 a lot had to do with that. And samsung, of course has been the first mover in the big screen smartphone space. Despite competition apple has been able to pull through. Its interesting has its been on the decline. You can see how quickly fortunes are made and loss. You have the Chinese Companies that came out with the note. But theyre famous for, you know, sort of copying apple or using apple. I believe they use the android system. Yeah. They have been the lower end of the smartphone. Theyve been a low cost. Now theyre trying to get into apple space. It will be interesting to see how it shakes up. It moved so quickly. Especially coming ahead of the Earnings Report out of apple. 70 million iphones. Thats what analysts are expecting apple to report. So expectations very high ahead of their earnings. Well if they can deliver. Thats. L. Lets talk a little bit of sports. Were both football fans. We have something to look forward to this weekend, the nfl, of course the super bowl pane the nfl is launching the own official Youtube Channel in time for the super bowl. The league fiercely protected the video pushing users to the website or broadcast partners. You can find game lights and interviews and clips available directly through google searches. Google is paying a multimillion dollar sums weeks after the nfl struck a content and ad deal with facebook. Super bowl xlix is this sunday with the new England Patriots taking on the seattle seahawks. Ill be rooting for the seahawks given i went to school in seattle. Were not just both football fans but im seahawk fan. Only because my husband is. You have to take his other side. Exactly. Its a phenomenal experience. That stadium is phenomenal. I had to wear ear plugs because it was loud. Theu. S. East coast is bracing for a winter storm. Lets take a look at futures as we head to the wall street. The dow looking at a move lower around 80 points. The nasdaq down around 12 points. The s p loss of 7 points. Know that chasing performance can mean lower returns and fewer choices in retirement. Know that proper allocation could help increase returns so you can enjoy that second home sooner. Know the right Financial Planning can help you save for college and retirement. Know where you stand with pnc total insight. A new investing and Banking Experience with personalized guidance and online tools. Visit a branch, call or go online today. 10 30 a. M. Here in london. 5 30 in new york. Welcome to worldwide exchange. These are your headlines from around the world. Were going to start with weather. Thats the warning going out to millions of people from new york to boston as the region braces for what could be the worst storm on record. And Greece Syriza Party is set to form a government with the right wing independents after sweeping to victory in weekend elections. Market reaction is mixed with euro coming off 11year lows but greek banks are setting off. The russian market also under intense pressure as the u. S. And the e. U. Threaten moscow with further sanctions after a severe escalation of fighting in Eastern Ukraine over the weekend. And president obama heads to saudi arabia where hes due to discuss isis and yemens political crisis with the new king solomon. And if youre just tuning in. Thank you for joining us on worldwide exchange. Take a look at futures. Were pointing to a lower open. The dow down just about 88 points in premarket trade. The nasdaq in focus this week with the big tech heavy weights reporting the nasdaq down about 14 points. S p 500 down about 8 points. Lets dive into the european markets. Because, remember, last week we did see a rally in european stocks. In fact the stock europe 600 index climbing to a 7year high. Today a slightly different story with a focus on greece the antiausterity party. Syriza winning the greek election. What does that mean for the rest of europe . Will it result in similar movements in other parts of europe following the syrizas lead. That uncertainty seems to be weighing on Investor Sentiment now. A mixed day of trade with the ftse 100 down about 26 points. We should point out the German Market an outperformer now. Because the german index came in higher than expected for the month of january. The economy being helped by Lower Oil Prices and a weaker euro. Lets take a look how the rest of the markets are trading in europe. Cac 40 the French Market up about 7 points. The micex, we were telling you before the escalation tensions in ukraine thats resulting in some taking money out. Down 2. 6 . Were seeing a significant move in the russian ruble. Its been weakening against the dollar. Lets get back to the top story. Which is weather. And how that will impact Investor Sentiment. Absolutely. Bracing themselves in the northeastern u. S. For potentially a historic winter storm that can dump more than 2 feet of snow from new york to boston. A blizzard warning has been issued for the region with heavy snow and high winds expected for late tuesday. New york city mayor came out with members of his Emergency Response team on sunday urging residents to use extreme caution. So this literally could be one of the top two or three largest storms in the history of this city. We need to plan accordingly. So my message to all new york ers prepare for something worse than we have seen before. Several airlines are waiving exchange fees. More than 18900 flights are cancelled today and several more expected on tuesday. The independent greek party agreed to form a coalition with syriza after the antiausterity party swept to election vikts i are. But fell short of the absolutely majority by only two seats in parliament. Syriza leader pledged to renegotiate the countrys bailout with International Lenders soon he comes to power. Speaking in the last hour imf making director ruled out any special treatment for athens. Lets get to at thens with the latest. With all the statements you can see that the the negotiations have begun. At least in public. As you say, yes, the syriza party didnt get the outright majority but a commanding enough lead its been quite easy for them apparently to form a government. Theyve done so today, as mentioned with the right wing party and how can an extreme left join with the right . They have a hatred of the bailout package imposed on greece. The conditions of the bailout package, we should say, they want to renegotiate the terms. The current Prime Minister, the foreigner Prime Minister conceded early in the flight. He congratulated him and said himself had brought stability to greece. He been handed a piece of coal on fire when he took over the government and had a smoothed things over at least. We now they have a primary budget sur plus. Winning may have been the easy part and they want to change a lot of the agreement of the bailout. Its not clear those governments will do that or these International Institutions are going to let them do that. Theres going have to be some middle ground found in some place and may be sooner than what syriza is thinking. They have may have six months for a bailout when it cams to the Quantitative Easing Program. When you start looking at the cash flow of greece they start to run out of other peoples money roughly in march. So theyre going to have to start making hard choices. Theres a lot of things we dont know. What is going to happen with the deposits in the Banking System ecb decisions about funding the banks. Expect volatility. Well see we havent seen the greek yields very much. Theres not necessarily a fear about what is going to happen here as you might have expected. Back too you. About 9 on the greek 10 year. Thank you very much for that report. Lets talk more about what it means for europe and the trade with dan greenhouse chief global strategies. A pleasure to have you on. The big focus has been on greece and what it means what the syriza winning means for europe, but also the focus on the euro which is trading lower against the u. S. Dollar. Its down about 8 so far in 2004. Its a boom for european companies. Analysts are expecting a 10 rise in european corporate earnings. How are you recommending clients to trade europe Going Forward. Do you favor european stocks over u. S. Stocks this year dan . Well, beginning of the conversation has to start with leaving greece aside. Obviously, if this particular situation goes south, so to speak, its going to create havoc across the region and the globe, which all case investment thesis will be thrown out the window. I think so you to favor european ek i dids over european equities over the u. S. This is something you have seen already. European equities have done well this year. The u. S. Has been more highly volatile. Flatter, so to speak. I think the trade stays in place. The ecb obviously launching a fairly large program. Unveiling what expectations were a few weeks ago. And you add in on the fundamental side that european equities relatively speaking to the rust more attractive. You have a con bin nation for better performance among the european partners. What about on the currency. A weaker euro seems to be the winning trade for 2015 which means a stronger dollar. Given the stronger dollars seems to be place Going Forward. Should you buy dpesk stock. This is the index that houses a lot of domestically oriented names well with respect to currency, i think its an important part of the discussion that sometimes gets left out. Oftentimes we look at the absolute performance. We say russia was up x and brazil was down y and the u. S. Did z. The truth of the matter is currency an important factor. Obviously japan has been a terrific pressuring market since the launch. However for Foreign Investors it would have to take into account the depreciation of the yen. Itsout performed several of the developed market peer. When you account for the depreciation of the yen japan has done less well. With respect to what happens in europe obviously the depreciation of the euro has to be taken into the account. As for what is happening in the u. S. Were barely in the year. Were coming up on earning season. Clients have been focussed not just the ecb and greece and global matters. I think we need to get through the earning season before we start making any larger observations about what is doing what in the United States. Its interesting you brought up the japanese markets. We had seen it surge and outperform other markets since abe came in power. We havent seen the effect of the huge Stimulus Program lift up the economy. We still see sort of the deflation. We saw the economy fall back into a recession. Do you think its going to do the trick here in europe . Im a third arrow guy. I dont necessarily think theyre doing the wrong thing. Im not a big believer theyre kicking the can down the road. Japan is dealing with major structure issues. My personal view is that unfortunately the third type sturl women reform women in the aalready market immigration. Those types of issues are ultimately quote, unquote help japan down the road. In the term term the bank of japan could be helpful. Weve seen in the event of stock prices they can be helpful. You need to see other items laid the ground work for more Sustainable Growth down the road. Im not necessarily worried about the short term. What ive seen so far or the lack of what ive seen worries me about the medium term. The japanese inflation number due later this week. Lets switch our focus to u. S. Earnings. Earnings so far havent been that strong. A lot having to do with the weakness in financial stand. The stronger dollar. Do you think the view on earnings could shake this week with the like of apple, yahoo . Tech heavy weight being a focus for us. Lets be clear, though the trend for earnings has already changed. The first week of u. S. Earnings season is dominated by financial and extension of particularly large banks. Financials did particularly poorly. Earnings were looking poor during the first week and change of earnings. Over the last couple of days thats changed. Were at the point now where you have almost 100 s p 500 Companies Reported almost 20 of the index. Earnings are more or less flat from one year ago with respect to the companies that have reported. That stands in contrast to what we saw a week ago which was Something Like a minus three or 4 performance. Youve had a meaningful uptick in terms of the earning subpoena. Subpoenaeason. I dont think it will go down as the best or a good one. I dont think it will look as poor as earlier. What matters to us is guidance. What companies have to say about the future. And everybody is worried about the strength of the dollar it hasnt been too poor in terms of the guidance just yet. Were very early. Just 20 of the index and mostly financials but things havent been terrible or at least as terrible as they seem to be at the beginning. Of course, oil, that will also be something to watch out for in guidance, which, by the way, is trading below 48 a barrel. Were going to leave it there. Thank you for getting up early with us on worldwide exchange. All right. Now lets switch focus to russia. Russia has come under a fierce criticism after an escalation in violence in ukraine over the weekend. Heavy shelling by prorussian separatists left 30 people dead on saturday. Rocket fires slammed into a market schools, homes, as well as shops. E. U. Foreign ministers hold a emergency meeting about the situation. Speaking on a trip to india president obama placed the blame for escalation in violence firmly on moscow. Were deeply concerned about the latest separatists with russian backing. Russian equipment, russian financing, russian strading, and Russian Troops are conducting, and we will continue to take the approach that we have taken in the past, which is to ratchet up the pressure on russia. And i will look at all additional options that are available to us short of military confrontation and try to address the issue. President obama getting a lot done in new deli. Well get you more of that coming up. In the meantime george a deal. Well get you the details as the billionaire Investment Fund goes shopping in the auto sector. [ male announcer ] meet jill. She thought shed feel better after seeing her doctor. And she might have if not for kari, the identity thief who stole jills Social Security number to open credit cards destroying jills credit and her dream of retirement. 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[ male announcer ] while Identity Theft cant be completely stopped, no one helps protect you better than lifelock. And lifelock stands behind their protection with the power of their 1 million service guarantee. You have so much to protect and nothing to lose when you call lifelock right now and try 60 days of Identity Theft protection risk free. 60 days risk free. Use promo code onguard. Order now and get this document shredder to keep sensitive documents out of the wrong hands. A 29 value free. Call the number on your screen or go to lifelock. Com onguard to try 60 days of lifelock Identity Theft protection risk free and get a document shredder free. Call the number on your screen right now. Welcome back. Saudi arabias new king solomon said hes committed to continuity in bilateral issues with the u. S. As according to a statement from the white house. President obama is expected to zsz the fight against islamist militants in yemen during his official visit tomorrow. Joining us now is hadley on the ground well you know what we know is u. S. President is cut ingting his trip it india short. He and Michelle Obama will arriving on tuesday. Its no surprise that terror isis and what is happening in yemen are going to take center stage in the conversations. Of course saudi arabia has an 1100 mile board we are yemen. You have to go past the empty derts. At this point following a cue last week the people in charge there are backed by iran and, of course, this is a situation that is basically untenable for saudi arabia. As you know iran to the northeast, theyre worried about the threat of the Islamic State in iraq. Theyre worried about what is happening in syria. Theyre worried about what is happening in jordan. The country has so many refugees. Its difficult for them to contain the problem in terms of economic support. And of course with egypt as well. They now have a friendly government in cairo and so at least in that sense theyre looking things are beginning to look up. For the United States certainly the conversation is going to reinvolve around what to do about the Islamic State and yemen. Absolutely big topics there. Thank you very much for that. A great deal on a new car. Reports say the billionaire investors is eyeing a new opportunity. Landon dowdy is live with more. The used car salesman. An interesting one. Thats right. Its very interesting. His Investment Fund is going shopping in the auto sector. Automotive news reports fund is looking to partner with or buy a u. S. Car dealership group. The National Auto Dealers Association meeting in San Francisco this weekend to reportedly research the industry and identify potential opportunities. Auto news said the fund started seriously exploring the auto sector last spring. Its unclear how much hell invest. Hell want to buy a Large Dealer Group with management set in place. The 84yearold soros a has an estimated net worth of 24 billion. He supported john kerrys president ial campaign in 2004. He invested in ford. In 2006 set up to offer 200 million to help chinese automaker build cars and sell them in the u. S. It would be the latest move by outside investors in the auto industry. The terms of the deal werent disclosed but more than 4 billion. Fuelling interest for investors the improving u. S. Economy and low Interest Rates which boosted auto sales and the evaluations of car dealers. Back to you. Thank you very much for that. And coming up on the show time to bundle up. The u. S. East coast is bracing for what could be the worst winter storm on record. All the details coming up. Welcome back. Lets get you a rundown what to watch the trading day. Theres no Major Economic data but look for reports this week on durable goods home prices new home sales, Consumer Confidence as well as Fourth Quarter gdp. And the fed, by the way, begins a twoday meeting tomorrow. As for earnings citizens Financial Reports before the opening bell. We also get numbers from home builder, norfolk, southern and sea gate technology. After the close it will be about microsoft and texas instruments. Just want to update you on a story, of course weve been following the developments out of greece. Were learning that alexis will be sworn in as Prime Minister of greece today. That will come in at 9 00 a. M. Eastern. Thats according to the president s office. This of course after syriza the antiausterity party won the greek election. Syriza will be greeces first left wing government seen in europe since the second world war. But uncertainty around what syriza meaning the greek election means. That seems to be weighing on Investor Sentiment. Lets talk with the founder and president a pleasure to have you on. Were looking at u. S. Futures down across the board. Does that happen to do with the greek election . The syriza party . Investors trying to understand what the win means for europe . Well, actually the uncertainty definitely starts to exit the conversation. At least we have a result but i think that the economy as a whole is probably more of the general reason why were going to start opening where we are. It is clearly is news that has to be digested but it shouldnt last more than half a session. But right now it seems across the globe and the theme across the board is lower in everything. And who is going to see the first bounce . And the Commodity Markets have been the tail and for those reasons, i think were going to continue to see lower prices across the board in most of the commodity complex except for the precious metals. One of the things i think Going Forward can disrupt markets is the continued interest of seeing lower prices in 10 year yield. The market did not anticipate this sixth to three months ago. And again if this continues i think that could be a major theme that would be disruptive for the market for the balance of the year. How much could oil dominate investor discussion this week . Given it is trading below 48 a barrel. A sixyear low for oil, michael. Yes, last week there was a lot of anticipation that at least a spike higher would result in some profit taking somewhere. I mean, it isnt its been a one way trade lower by some of the targets or some things im looking at 42. 50 is the first level blow. That being said it seems right now im anticipating more lower prices and more of a gradual nature to the bottom of potentially 38 a month or two from here. I think a lot of upside calls have been talked about by the end of the next quarter or the summer about higher prices again, are way ahead of the curve. Globally you get the satisfaction that these prices are factoring into most of the economies. And again they are somewhat of a tax rebate for the u. S. The u. S. Faces a cold and winter storm bracing the northeast. Were going to leave it there. Michael, stay warm. Founder and president at grown hill partners. Thats it for todays show. Next up is squawk box. Thank you so much for joining us today. Good morning. Bracing for a blizzard. A monster winter storm is set to slam the northeast. 60 Million People are in its path. 3200 flights already cancelled. It happened on sunday the risk of a grexit is a real thing with Global Markets on edge after greeces antiausterity party wins a snap election by a bigger than expected margin. Gasoline prices plunge to the lowest level since late april 2009. But now an influential industry watcher said the end of a months long slide may be near. Its monday january 26 2015. And squawk box begins right now. Announcer live from the most powerful city in the world. New york. This is squawk box. Good morning everybody. Welcome to squawk box on cnbc. Were back from the swiss al. S. Got back just in time. If you live on the east coast or had any intention of traveling to or from the area this week, take note theres a potentially historic blizzard forecast to hit the region today or tomorrow. People are getting ready for a 1 to 3 feet. Thats right. You heard that right. 1 to 3 feet of snow emergency. Emergency management teams are warning people to stay off the roads. People are preparing if they need to be here. We got back right in time. We brought it back. We brought back the al. S. If there is like a blizzard tomorrow morning