Cautious outlook. The ceo tells the program hes bullish on new Product Launches. Two new products ss launches. That is going to be very important for the future. And welcome to the show. Were just getting numbers breaking out net loss of 4. 6 million euros. Compared to reuters for a net profit of 6. 9 euros. A significant miss. They plan to keep the dividend at 50 Cents Per Share. Consensus expected an increase to 62 Cents Per Share according to reuters. Theyre saying they expect more paying coming from volatile currencies moving forward. Well be giving you a full run down of the numbers tomorrow when we have an interview with the puma ceo. Thats coming up on squawk box tomorrow, as you can see, shares down about 1. 5 so far in frankfurt today. Lets move on and have a look at the greek market at the open. Its down. Its down around about 3 1 2 so far today. This does however, follow the best return since march 1998. Greece is up 23 over the last two weeks and under some of that reform the 3. 5 . Lets have a look at what the bond yields are doing. Theyre remaining in elevated territory but not the peaks. The 10year below 10 . 9. 5 . It touched 11 in the past few weeks. The 3 year 18. 2 . All of this comes as a crucial meeting over greeces bailout is due to start in brussels within hours. Ahead of that germanys finance minister said hes skeptical the eurozone policy makers will reach an agreement. Alexis cyprus is more optimistic. Lets go live to julia in brussels with the latest. Reporter thank you so much. The Prime Minister said other the weekend he wants a winwin solution. Those kind of things take time. The finance minister said he hoped it would comprise deal would come but it might get down to the 11th hour. By my calculation given the start time of the meeting that could take until 2 00 a. M. Tomorrow morning. Oh, boy. I have to say, the conversations ive had behind the scene heres very little optimism, it seems, again we reach a deal today. More chance on friday given the work that was done over the weekend to try to find some plight of comprise on the things we dont agree on like the privatezation program. How much they can reduce the surface target over the next four years. If theyre allowed to comprise around 1. 5 that will see the deficit increase over the next few years. Its not much. Its less than 1 percentage point. If you look at italy, spain, their average deficit set to decrease by 3. 5 percentage. Its difficult to see the likes of portugal and spain agreeing even if they agree that some things were done wrong here. Very difficult when weve heard from the likes of the slowbacks, the germans. Im waiting from the finish saying theyre in line to see a deal. We wait and see when we get the arrivals in a few hours time. We have heard of a better comprise deal from the center of Economic Policy research. Greek needs to ask for an extension deal and it will open the door to maneuverability as far as the privatizations are concerned. Allow allowing them to increase the minimum wage. As it came down to last week semantics over what terminology we use. Whether or not a bailout short term. Its about financing for greece. Buying more time to have those deeper discussions. And i suppose all the people that must be wishing for a deal of some form to be reached. You must be high up on the list. Youve been on the road for weeks. Yeah. Feels like it. Its very few days since davos. Im hopeful they reach a deal agreement tonight. But as said earlier comprise is not the solution here. And on that point, i have to agree with him. Just talking about debt for greece or maneuverability doesnt answer the underlying structure issues that are still a problem in the greek economy. And, you know, i want to make one final point on this. New europe publications here in brussels pointed out the cartels in action in greece and even though weve seen pensions and salaries come down and we can talk about good deflation in europe, they argue that given the cartels operating in greece right now, we could see Consumer Prices drop 30 if the cartels were addressed. Imagine the demand kick it would be for greece Going Forward if we could do that. These are the kind of structure efficiencies in greece that needs to be tackled. It takes more than a few days. Back to you. Julia, thank you. Lets discuss this further director of european and Global Economy research at citi joins us. Thank you very much for joining us. Lets touch on some of those comments weve had over the weekend. I wonder why germany continues to play hardball. Because they expect the greeks to cave in to some of their sides of the bargain or because theyre not seeing any kind of financial contagion from the risk from of cigarette psychiatric. I think its a concern that the other countries wont be that happy if a genius deal was being given to greece. For germany, overall the most important strategic objective is everybody will continue to commit to playing by the rules, which germany thinks is essential for the longterm survival of the eurozone. And it thinks more important than ultimately keeping greece in. I think somewhere in there is also a sense that the eurozone could probably go on and survive if greece was leaving. And lets touch on that point. You said some other countries might be disappointed if any kind is given. What are the noises coming out of madrid lisbon and dublin. Would they be in an uproar . I think they would be concerned. I think particularly in spain and portugal. Theres a force short term political calculuslculuscalculus. They could lose put to the more leftists movements and parties were to get a further boost from a benign agreement. I think theres a fairly short and political calculus in play here that makes it clear that germany is not at all isolated in this position of standing relatively firm against these weak demands. And obviously theres the Political Risk which we can come to in terms of contagion. Is the financial contagion currently understated by markets . I think its a relatively easy statement to make. I would probably agree. Now many things have changed in the last few years, but i think having getting a sense of what contagion would look like once were facing that. Ting would potentially be problematic. If not in the near term then maybe an undefined future date where the other countries could be in a more vulnerable situation. Lets touch on that political fallout. I suppose this antiausterity the antie. U. Rhetoric were seeing in various parts of europe. Its not just coming from the left wing. Its coming from the right in various countries as well. Is it simply just opposition parties making populace calls for the sake of their careers rather than believing in things fundamentally . I think its again, probably a mix. Of course, offering up alternatives was going to be very likely after these long and deep periods of crisis and con contractions. And those alternatives often come from the extremes on both sides. I think what we see is that particularly in the core certainly the right is a stronger force or the alternatives on the right are a stronger force than they are on the left. I do think there is a there are some intrinsic agreements in there. There is some intrinsic opposition to some of them the europe ideas, i think in general are much closer to what the right is feeling at heart than it is on the left. Thank you very much. Well be back with rahbari in a few minutes for a second chance. Lets have a look at what Global Markets are doing in europe. It follows not just a strong week last week but a strong friday. We saw the s p 500, the dax in germany hit record highs. The week as whole was strong for european equities. And unsurprising weve come off today. We were down earlier. We were down about. 05. We rallied a bit. Lets look at the individual markets. In particular last week the dax was strong on thursday after the ceasefire agreement announced throughout russia and ukraine. Germany has been heavily affect the by the sanctions on russia and strong gdp prints we got. Across all of europe but particularly in germany saw the dax push to a new high 11,000. Were just below that now. The ftse 100 is basically flat today. France also flat and the micex is down 2 . The ceasefire agreement hasnt been enforced in full so far. Well be discussing russia throughout the show. Lets look at bonds. The u. S. 10year is above 2 for the first time for awhile. Of course weve had positive sentiment in the u. S. Over the last couple of weeks, particularly following the jobs number. That pushed us above 2 on friday. It is closed today for president s day. In germany were at 1. 35 . And the 10year remains at elevated levels but not as high as it has been. It was 9. 5 . As a sign of the lack of contagion the euro remains relatively strong over the last week or so. Its at 114. And just after the qe announcement it touched briefly 111 handle. That highlights we strengthened the euro. The yen relatively muted today despite gdp numbers 118. 5. And were seeing the ruble strengthen a little bit today up 1. 37 . Probably more because of oil. Lets look at oil. What is the oil price this morning . Its a little bit softer day. It had a strong run over the last week. It sort of found a little bit of a bottom about 50. Significantly above the late january lows. Can it stay there . Will it remain in decent territory . Lets touch on markets in asia. Japans nikki hit an eightyear high after the rally on friday. Gdp data come in slightly under expectations. Lets get an update in singapore singapore. Key if gdp date set was fairly sweet and sour. There was something for everyone here. If you look at the headline 2. 2 analyzed in the first quarter. It did signify that japans economy pulled out of recession in the last three months of 2014. But that number still implied some rate. The economists were looking for 3. 7 on the whole. The markets seem to like what they saw in the data. It was really pushed forward. The recovery was driven by the export sector. I was surprised given what the yen has been doing on the depreciation trend. The first time weve seen a close, as you pointed out, the close above 18,000 since july 2007. Implications for the boj its probably not going to stir the central bank into action this week. So dont expect them to undertake any additional easing measures. Elsewhere sixth day of gains for the shanghai and thats on the basis once again of expectations. Stimulus for the market we saw some sub par economic numbers recently. I have to say this about the Greater China markets and Market Sentiment activity broadly for our region. Activity traded volumes are going to be that much more thinner on the ground as we head into the lunar new holiday. The Chinese New Year holiday on the 18th of february. Expect to see a slow down in trade volumes and activity and as a result of that potentially some outsized moves. We do see some volatility externally elsewhere in the Global Markets including in europe. All eyes of course on the finance ministers meeting with greece to renegotiate the debt. The debt agreement where you are standing. Thats where we stand now in asia. Back to you. Thank you very much for that update. Still to come here on Worldwide Exchange. Were live in boston massachusetts. As it counts the cost of a historic amount of snow. Also are you betting on a strong dollar . Stay tuned to see why it could be a mistake. Plus saturday night live celebrates the 40th anniversary. It was a startudstudded event. Welcome back. Lets look at the movers in shares. And in the red were down 1. 3 . This after the bio tech firm learned the earnings outlook for the year ahead. Speaking to cnbc earlier said new Product Launch would offset the impact of the sharp move. Its very clear that it has an sbaukt on our earnings. Only 29 of our expenses are in swiss france. Therefore i think the launch of the new products are innovation capacity will compensate for this financial effect. Online gambler 888. Com is after takeover talks with u. K. Bookmaker the talks broke down over a price for the key stakeholder. William hill is back up a little bit. Lets look in stocks in the dax. The second largest Property Company has made a 980 million euro take over. Its off about 1. 2 . Up 8 percent. Lets go to frankfurt for the details. I guess the most interesting Market Reaction right now is that its trading higher than the offer price. The offer price is 50. We have just seen the shares currently trading at 11. 80 or even 12. Theres some speculation that actually they might have to come up with a better off despite the fact that the two families who are owning 25 of convert already said theyre planning on tendering their shares. They need 50 plus one share of conwert in order make it successful. It makes sense to merge the companies or take conwert over as conwert with a little bit more than 30,000 units. Mainly in germany. Some are in austria and central and Eastern European countries. Its a little bit small compared to the big players in the market. Du du they have more than 130,000 units in germany which makes them number two in the German Market after duetch and privately owned by a private fund. The deal there will be an offer as soon as march and it looks like, as i was saying looking at the current share price that there might still be more improvement for the share. S a the market is speculating there will be a better offer with that back to you. Thank you very much. On the Russia Ukraine crisis the e. U. Gone ahead and published a new list of people suffering from the sanctions. The latest list of 19 people and nine organizations, as i said has been released in the last few minutes. A couple of eyecatching names on the list including the Deputy Defense minister and a famous singer. Sometime hes dubbed as russias equivalent of franc sinfranks santra. Now, of course, that ceasefire brokered by the leaders of russia, ukraine, germany france has all but held. They will not hold a truce in the eastern territory. Attacks are reported from mid afternoon on sunday following the ceasefire that came into effect at midnight. With me is director of european and Global Economic research at citi. Were talking about the greek issue and the fact hasnt had much effect on European Markets. A meaningful ceasefire in russia and ukraine, should that see a boost to european equities . I would have thought over the past few months even that debt crisis which is much bigger had a fairly localized effect except on the few days. I struggle to think how it would be major boost to markets more broadly at this stage. Even though undoubtedly it would be good news of course. Lets broaden out the discussion and talk about more europe more widely. Last weeks gdp numbers particularly in germany were pretty decent. Are we at the point where qe has been announced and good fundamental news should be good for the markets as well. Does it make it easier to predict where its going to go for this year well i guess, overall given how poorly the economy is the equity market has done remarkably well over the past few years. I personally would be relatively hesitant. One thing that can be said were at a very benign point for the first time in awhile in europe. Qe and financial conditions more broadly improving. We have the weaker euro and the fall in oil prices. It is more benign than it has been. Is there a clear choice when you look at market a country you like to be long off the markets at all . Well, i mean, i personally look a lot at the germman economy. The despite the fact the e equity market has been among the better performance. The fundamental performance is still very positive. And lets finally bring the discussion back to the situation we touched on earlier. What are the key dates we need to watch for in 2015 . I think we have to stick with greece for some time. I think today is an important today. It will probably not be the end of what will probably be extended negotiations. I think the other important days are toward the back end of the year with the elections in portugal and in spain for which we are still waiting for the final dates. But i really think this year will be the start of a long period where Political Risk will gravitate very much toward the middle of the invest ersors will have to look for. Thank you very much. Director of european and Global Economics at citi. Still to come full break down of japans gdp. After last weeks rally. This is germany finance minister said hes skeptical a deal can be reached today. Japans Prime Minister vows to keep the pressure on for wage hikes as Weak Consumer Spending sees the economy just fall out of recession in the Fourth Quarter. Kiev said attacks are increasing as rebels try to secure the railway. Puma shares take a kicking after the surprise loss in the Fourth Quarter. German maker said it continues to hurt the bottom line in the year to come. Lets have a look at what European Markets are doing. And we recovered from a soft open to be just slightly below flat on the stocks 600. The ftse just below flat. Germany just below flat. Germany was particularly strong crossed into the 11,000 and has a high on friday. Just below that level at the moment 10948. We have italy fractionally above flat. Having opened more half a percent down. If you look at bonds as well. The u. S. 10year crossed above 2 on friday where it is closed today for u. S. s president s day. Greece remaining elevated. Germany very low yields of course, 1. 35 . Despite strong gdp on friday which after correlated with a little bit of bonds selling. We havent seen that. The bond market remains big because of the program that kicks off in march. The euro has been relatively strong. 114 at the moment. 1. 1419. Somewhere where it touched after the quantitative ease inging issues. It benefitted a bit last week from the ceasefire agreement coming out of russia and ukraine. We have the ruble rising about 1. 25 . Now japan is out of a technical recession with quarterly gdp growth 2. 2 in the Fourth Quarter. Lets go to the details from the nikke. Thank you, willfred. It is the first expansion since the last sales tax hike. The growth wasnt as strong as expected. The median Market Forecast was 3. 8 and much of the growth came from strong exports thanks to the weaken of the yen. Especially from the u. S. And china. Private consumption which accounts for roughly 60 of the gdp was weak increasing by 0. 3 . Chief cabinet secretary said household mind sets on spending are cautious. He stated real wages have not yet caught up with inflation. The comment may be aimed at corporations the government has been everyone sizing to the private sector the need to increase wages and last year many Large Companies did that. For 2014 salaries increased for the first time in four years which was resulted in the largest growth in 17 years. When compared to the rate of inflation, the level of wage growth is still not enough to lift consumer spending. Currently major labor unions are negotiating with businesses and the outcomes these talks will have a major impact on market confidence. Thats all from the niiback to you. We discuss it with head of global asset allocation. Thank you for joining us. Good morning to you. Of course this data slightly weaker than some. But taken the country out of recession. Does that suggest that when we went into recession in the middle of last year it was very much down to the sales tax hike . It was. But that said the picture is difficult. Theres very little growth really, to speak of. And on the edge between inflation and deflation. I think we should see it in context. Its not quite as bad as it might have been. The market has taken it positively this morning. Not a huge move but a significant move. What is in the detail . The markets are relieved. More than that the other ingredients for the equity market are fairly bullish. Because the largest state pension fund is by the government wants to make Japanese Companies much more investor friendly by boosting their ratios. Bond yields are falling. All of those other ingredients are bullish. Evaluations are still low relative to a number of other international markets. All of those add up to a fairly bullish mix. And the Quantitative Easing Program that bank japan is pursuing put into perspective for us how big the size of the program is relative to other qe programs. Relative what we see in europe. Europe it looks like a tea party compared to what we see. The share of gdp that japans qe program is stake of taking on as dwarves other programs. In is a real life experiment. And Prime Minister and saidbe said he hope it is continues. Thats part of the economics. Its part of the practice. I think its a way of squeezing bank of japan making sure it doesnt waiver from the expansion. And lets talk about the other side of the bargain, if things get worse, if abenomics fail. What is next . Is it total collapse . Its tricky at that point. We dont need abemommics. But the economy needs to grow. It needs to fight off the deflation in a convincing way. Provided those two hold i think the ingredients for the market are still reasonably good. But if we get a slight back into recession then i think potentially its a very very difficult time. So lets talk bring it back to markets. Would you be on the nikke. Theits worth something. Most of the key evaluation ratios. The equity improvement is likely. Profits are growing in japan. The u. S. Is probably alongside japan in seeing some earnings growth. Theres not a not a lot of growth out there. Japan is one of the few we see growth. And what about the yen . Of course it hit the 121 handle late last year and recovered from that. Theres been different arguments why it recovered. If its a short bounce or what have you. Some say it has been the beneficiary of safe haven trades going back to the yen. Does that make sense . I think theres an element of that. But clearly the government wants to see the yen still go up. Its a matter of making sure the trajectory is maintained because that has provided a clear boost in the market. And so in terms of which stocks or sectors within the nikkei . The exporters look relatively undervalued at this point. Clearly across the market as a whole, they drop down in ingredients suggests a fairly broad base market move. Great stuff. Thank you so much for joining us this morning. Head of global asset allocation. Puma is trading lower after earnings came in well below expectations. The german sportswear giant posted a net loss. And a profit of 6. 9 million euros. Lets get to annette who is live in frankfurt with more details. Its a clear miss what were hearing from puma and also looking into 2015 it doesnt really sound very promising. Because theyre also saying that they expect currency swings to weigh on their earnings quite substantially. Above all, theyre citing the strong dollar as for being one of their major head winds for 2015. But also theyre saying they expect slight increases in net profit despite the fact that the currency situation will probably outweigh the benefits of higher sales in regions like the americas. In talking about regions, its quite interesting to see that only the americas the region is actually doing very well but the sale increases of more than 10 . Europe and also asiapacific asiapacific is growing at the same pace of europe which is really a minimal at. 07 . Theyre saying theyre seeing still a bad situation or a difficult economic environment in europe which is of course is true for loads of consumers outside prosperous markets like austria and germany. But also japan and south korea are doing not very well. In terms of marketing expense, they had quite an expensive year but theyre still planning on spending a lot of money on marketing and in order to yeah position themselves in a better way than the other sport goods makers in the world. The shares today take a dip. Puma is clearly trading lower. People are disappointed about the poor earnings over the last quarter. Back to you. Thank you very much. Puma shares taking a dip despite the fact they sponsor the greatest futbol team in the world. Lets move on. Hsbc took out a full page ad to apologize over tax evasion claims surrounding the swiss private bank. After the man at the center of the storm stepped down from i had position over the Financial Services lobby group. Hsbc bouncing back a bit today up 1 . We caught up with the chancellor and asked him for his thoughts on the incident. If the files were handed over to British Government in may 2010 and its the conservatives who had the files and its their failure to act. It there was any evidence brought to us over illegal action we would have acted. It happened under conservatives. Werent you sitting minister. Presumably you had some overview. The files were presented in may 2010. When you have evidence of that activity you have to act. Why were the files were handed over there wasnt action. Before that, when laybour was in government do you think it shows its not fit for purpose if they found one person in the firing like out of the 7,000 u. K. Citizens who have offshore accounts they havent disclosed. I think there are Big Questions here. The policy and strategy and resourcing that is political questions. Why did they agree to have him as ministers. Its a question of tactics. Theres issues of resourcing and operation. Why are they being so slow and tardy about getting this sorted out. These are Big Questions. I think we need some answers. A massive storm slammed new england on sunday bringing a foot of snow and sub zero temperatures. Miguel almaguer has the report. Reporter this was a triple threat nearly a hundred million braced for. Blinding snow whipping winds, and bitter cold. Miserable. Its getting cold. Reporter much of new england blasted with whiteout conditions. Boston buried again. Today 13 inches of powder on top of six feet that has fallen over the last month. The city getting more snow in three weeks than chicago has ever seen in an entire winter. This is the storms of historic proportion. I know, people are frustrated. People just want this to end. Reporter the region paralyzed in the blizzard blast. Train, bus, and Ferry Service shut down. Power knocked out to at 6,000. At least four roofs crushed in. Its amazing. This is even worse than 78. I was here for that. Reporter along the coast it was wicked winds. The surging surf pounding threatening to flood mashfield, massachusetts, again. In prelim moth rare blast of thunder snow. Jim cantore there for the wild ride. Were in the full force of the blizzard. No question about it. Winds are gusting over 50 miles per hour. Weve had now we cant even see the water. Reporter similar conditions turn the roads dead flip weekend well over a hundred accidents from buffalo to toledo. At least six killed including a pregnant mother on the ohio turnpike. Tonight the snow has slowed but the arctic cold is just blasting in. In some regions, will feel like negative 25. Its insane. More snow than ive ever seen. Were transplants from iowa and ive never seen snow like this. Still to come on Worldwide Exchange. Russias economy suffers from the falling oil price. Our next guest said moscow is heading for a worse crash than 1998. Danish police say they contained two suspects in connection with the attack in copenhagen. A gunman opened fire and shot people near the citys main synagogue. Kooer kooer. Reporter candle ls on a cold night in denmark for two more victims two of more attacks in another european city. As detectives investigating the killings raided an internet cafe searching for clues. This morning amid panic they confronted the 22yearold lone suspect and shot him dead after he opened fire on them. His body lying in the street. Just over 12 hours earlier the shooter had burst into a cafe firing 30 times leaving more than 20 bullets in just the front window. He left one dead and wounded three Police Officers. Inside an event was promoting free speech. I could hear the gunshots approaching. I could hear arabic and the shots. Reporter the gunmans possible target one of the event organizers swedish cartoonish lars vilks who sketched the prophet mohamed as a dog in 2007. Adding him to an al qaeda hit list. Last month the french magazine Charlie Hebdo was targeted by islamic jihadists. It had printed similar cartoons. It could be that this individual were a copy cat. He knew how to handle a weapon. He also knew how to kill. We dont know whether there are other people behind it. Like in paris, the next target was the Jewish Community. Outside a synagogue a 37yearold guarding a bar mitzvah situation was shot. Another Police Officer wounded. Jews here say they will not be frightened. Im born here and i will stay here all of my life. The Jewish Community belongs in denmark. Theyre a strong part of our community. Reporter but israels Prime Minister said jews have been murdered again on european soil. Israel is your home he told them. While in france, outside the Danish Embassy in paris, another individualvigil was held today. The suspect was known to security and intelligence services. Theres no indication he travelled to iraq or syria to fight as a jihadist as the paris killers did. That was keir simmons reporting. Four ukrainian soldiers have been reported killed since the ceasefire. They will not uphold the ceasefire in east ukraine. The eshs u published a new list of people placed under sanctions. They include the russian Deputy Defense minister. The Russian Central Bank performs loans in 2015 around 8 of all loans. Lets have a quick look at the ruble. You can see it is trading up about 1. 6 against the dollar today. Joining me now is the chief emerging market economist at capital economics. Neil, good morning. Thank you very much for joining us. Lets touch off with the ceasefire. There seems to be a lot of skepticism whether its going to work or not. And weve had more sanctions announced today. Indeed. I think on both sides of the conflict. From what we can tell it doesnt look like the level of fighting, the level of conflict died down substantially over the past couple of days since the ceasefire came into affect. As you say, in particular fighting seems to be as intense as ever. And, of course the sanctions list has been expanded by the e. U. This morning. I think the critical thing from the perspective of russias economy, if you like, is that even if the ceasefire does hold were so far away from both sides being in agreement in terms of a sustainable solution in the region. The sanctions will remain in place for a long time i think, and allies with Lower Oil Prices that is going to add pressure to the economy. What do we need to see to have sanctions removed in crimea has pretty much cast off by the international community. Is it real improvement in the do domask region . I think so ultimately. There are so many issues that need to be resolved. For example, Peace Keeping in the region is not done by former troops from the cis countries or is it done by troops from the european union, u. N. Nato countries . Thats one issue. How are the new borders drawn . What Political Group is given to the separatist region . What status does that have . Theres so many issues that needs to worked through before the sanctions start to become difficult. And of course from our perspective from the outside it seems baffling that putin continues on the strike given the difficulties that the russian economy is facing. I suppose perhaps his rationale for that is ukraines own economy is in an even worse state. He is expecting that might lead the west to have to concede ground to him sooner rather than later. Its important that putins popularities have been higher. His popularities have risen through the conflict. Hid that may start to change as the economy turns down. Weve seen the first effects of that. It happened already. Inflation has risen sharply in russia. Its going to remain high this year. Its going to eat into the real incomes of house holds. Credit conditions small to Medium Enterprises in particular are finding it difficult to access credit. Theres going to be a deep recession this year. That will put it akin to the 1998. I think fundamentally i think the recovery will be weaker than 1998. After the 1998 crisis we saw oil prices build again. And together with some of the affects of the reforms of the 1990s that took place before the 1998 crisis that paved the way for quite a recovery, actually. I dont think those conditions are in place this time around. The economic lookout is dire for russia. We could be looking at a repeat of the stagnation growth rate of 1 a year or Something Like that. Thats the case over a prolonged period of time, i think thats when we see the political and economic problems. Thank you very much for joining us. I appreciate it. Now french lawmakers have passed a bill that will allow shops to open more often on sunday. It marks the latest efforts to boost national growth. Lets hear the latest from stephan in paris. Good morning. The they approved a bill that will authorize shops to open more often. Not all the time on sunday. Up from 5 currently. Shops in tourist areas will continue to open seven days a week if they want. They will not be authorized to open until midnight. Thats also an evolution from the current legislation. For such an authorization, employees who decide to work on sundays will have the choice to and they will get a double pay. That was one concession made to the extreme left of the socialist party to get the support for that bill. Before it comes into effect this bill will need to be approved by the upper house of parliament. As were seeing its a plan to revive the french Economic Growth and also to keep more tourists in the city. Because they realize like big cities like paris were unable to retain International Tourists on weekends especially coming from asia. They were traveling to london to make their shopping on sunday as shopping is part not of the activity. Its part the of the package, i was saying with the bill includes other aspects like the deregulation of some specific sector which is were not open to competition. Thats part of the bill. Hopefully the government wants to raise the gdp growth to 1 this year from 0. 4 last year. Back to you. Stephan, thank you very much. Now saturday night live celebrates the 40th anniversary this weekend. It was a starstudded affair. Nbcs has the wrap up. [ applause ] live from new york its saturday night a familiar phrase started a trip to memory lane. Live from new york its saturday night one that stretches back to 1975. We established the legacy but the people who came after us kept it alive in such a quality way. Cast members reunited. And in some cases, teamed up for the first time. Good evening, im jane curtain. Im tina fey. Im amy poehler. They revisited characters. And turned unknowns into stars. Lets take a look at the score. I wouldnt have had a career without saturday night live. I cant believe my luck. I cant believe that im part in any way of something that i loved so much. The catch phrases. The classic moments that have endured. The super bassmatic 2150. It says a lot about this place. There is nothing like it anywhere else. Yeah. And everyone wanted to be a part of it. I mean, most everyone is here. And an array of former hosts took the stage. So did music icons. As snl wrapped the first 40 years, Warren Michaels and his cast took center stage. I like it. I loved this man and this group of people has seeded the comedy landscape for 40 years, you know, and they have given us an incredible gift. The anniversary bash marks the 780th episode. Almost live from new york. Nbc news. Quite the impressive there. Still to come on Worldwide Exchange despite high unemployment in the growing antiausterity movement. Theres plenty of upside for the european. According to our next guest. Xkc hello. Good morning welcome to Worldwide Exchange. Here are your headlines from around the world. Greek shares tumble in the open after last weeks rally. This is germanys finance min stir said hes skeptical a deal can be reached on the bailout meeting in brussels today. Japans Prime Minister vows to keep the pressure on wage hikes seeing just the economy just fall the our recession in the Fourth Quarter. Kiev said attacks are increasing. Increasing. The u. S. Northeast is slammed by another storm. Over 500 flights state side have been cancelled. U. S. Markets are closed today for president s day. But europe is still trading, of course. At the moment were just below flat on the stox 600. It follows a strong week last week for markets globally. Including record highs sit on friday for the s p 500, and germanys dax index in europe. Finished the week very strongly the dax following the announcement of the ceasefire agreement and germanys gdp print that was strong that came on tried. Today we have the ftse 100 just below flat. The dax is down a quarter of a percent. France is flat itself. And russia is up about 2. 2 . Lets have a look at the bond market. Of course a strong gdp for germany didnt see yields rise as we see in normal circumstances. 1. 35 on the german 10 year. Looking at 1. 65 in spain. 1. 64 in italy. And greek yields looking at 9. 45 on the 10 year. A little bit up from last week but elevated of course. Lets look at the market and the euro is up around 1. 12 today. Its above 1. 14. When qe was announced it dipped below 1. 12. Somewhat seen as a surprises a the greek situation continues. We have the ruble rallying about 2 today. News, of course the ceasefire helped it. But oil prices have been strong over the last week or so. Sterling flat 1. 359. And the yen at 118. 6. And a quick look at greek shares. They have been weak so far today. Were down about 3. 6 . It does follow 23 of gains over the last from greece which is the best return since march 1998. Therefore, unsurprising that were down by the tune of 3. 6 . A quick look at yields. As i said earlier theyre off from their highs from last week but looking at the 80. 2 . Lets get an update what is happening in greece. A crucial meeting over the bailout taking lace in brussels within hours. For the latest lets join Julia Chatterly live in brussels. Thank you so much. The Prime Minister uncan any understanding of the way brussels works. He said there needs to be a winwin solution as far as the greek negotiations are concern. Hes right. How can all sides come out looking like they scored a victory. Theres strong incentives on all sides to keep the negotiations going to be able to make some kind of comprise. And thats what its looking like now. The more people i speak to the less indication there is that were going to reach a deal today. There was already talk in the greek press this weekend perhaps we might need a further group on friday. I think in the short term this will favor greece. The clock is ticking on the timing. Theyre ability to ask for some kind of extension of a Bailout Program even if they dont want to. In the longer term then they favor stocks to shift back to the euro group when the clock starts ticking as far as finance concerns. That comes toward the end of the bailout deal on february 28th. What we heard over the weekend is the discussions were continuing. Trying to thrash some kind of comprise deal on key issues like what to do about privatizations. We know theres been confuseing signals coming from the government on this. The surplus will be required over the next two years. If they go by what the dwreeks are asking for now, that means a significant increase on the deficit at a time when other countries like ireland, portugal, spain, and italy is seeing a significant drop in the calculations. Very difficult for the countries to say greece can get away with it. Even if we couldnt. I think that is the negotiationing position right now. Germany certainly taking the hard line. They said this morning comprise for comprise sake is not the answer here. As far as greece is concerned. You know, i would agree with him. We dont need a short term solution. We need longer one. Thats going to take longer. Well wait to see how far the discussions will get. That means 2 00 a. M. Tomorrow morning. Well see. Julia, thank you very much for the update. Joining me now is head of Investment Strategy at brooks mctold asset management. Thank you for joining me. Lets kick off the greek situation. The potential financial fallout being underestimated by markets . We want to take a step back and the context is the conversation has moved on is greece going to exit and greece negotiating. Because of that Financial Markets have slugged off. As you alluded to the big risk market is contagion. If we see momentum growth and antiausterity movements in the like of spain with the economy its far larger. It could have a bigger impact on market. You said that the debate moved on greek is no longer a risk. Surely theres a risk. A small one. If they push back hard on the negotiations that could be where we get to. It is but being pushed further out. At the moment even within greece they dont want to leave the euro. Theres a lot of political will to stay in. The and the way things are going now theyre trying to negotiate. The more interesting question to ask ourselves is spain going to be willing to be able to continue with their austerity measures if other, you know, debt burdens are being forgiven. You have to think about. Portugal and ireland have gone through at lot of pain. Their government is going to be in in incentivized to toe the hard line. Last week gdp data surprised a few in germany. You impressed . It mean its going to be a harder case for greece. One of the reasons yo u may have seen a softening of the rhetoric. The economy itself was deteriorating. It was in their interest to Stay Together and have more stimulus. Its good news bad news there. Over the longer term this is good for european equities. And the reason is evaluations remain attractive. Especially if you look at it versus the u. S. Keeping in mienld the weaker ground. There are three reasons. First of all, export of oil. That will fall to the consumer bottom line. You can see domestic command grow. That drive inflation and commodities. Banks are starting to lend more. And the weaker euro will help exporters. For those reasons we think its going to be a rocky past. Its going to be heightened volatility if you can bear it out it will be attractive. The second fact you mentioned. Bank lending. It quantitative easing works in europe then bank lend will be key. What is giving you confidence . Its falling to the bottom line. You had the multiyear deleveraging. You had the paing taken away and the incentive the bank had to keep themselves is fallen to the wayside. Its linked to passing on the liquidity theyre a bit more incentivized. It will help them on the bottom line Going Forward. We think that the extent, i mean, again lets look tat in content. This is one of the largest quantitative easing stimulus pack ajs that weve seen coming out of the u. S. So it is give us more confidence. What are they doing . They need to pass it on. The weaker euro. Is the euro already weak enough to benefit the economy or is it going to come down further . We think its an attractive level. What youre seeing is ill give you a specific sector. The great trade is automakers. You have the double benefit not only will the cars be cheaper to export but lower import costs because of oil. Its an attractive time for those type of manufacturers. Outside of that what is your top sector . We still like technology. We think that health care potentially because the moves its even though the sector is still attractive. We think evaluations is a little bit of a stretch. Tech automakers the industrials in general where were positive. If you want a high beet to play italian banks. Thank you very much for joining. A pleasure as always. Lets take a look at todays other top stories. Apple is reporting planning to take on tesla with several hundred of the employees currently working on an electric vehicle project. According to the wall street journal project tie tan involves the design of a vehicle resembling a minivan. They declined to comment. General motors announced a recall of more than 81,000 cars following concerns about electric steering systems. It expands last years safety actions when 1. 3 million vehicles were recovered. It covers 2006 to 2007 Chevrolet Malibu and pontiac g 6 cars. A massive storm slammed new england on sunday. Bringing a foot of snow. Miguel almaguer has the report. This was the triple threat nearly a hundred million braced for. Boston buried again. Today 13 inches of powder on top the last month. The city getting more snow in three weeks than chicago has ever seen in an entire winter. This is the storms of historic proportion. I know, people are frustrated. People just want this to end. Reporter the region paralyzed in the blizzard blast. Train, bus, and Ferry Service shut down. Power knocked out to at 6,000. At least four roofs crushed in. Its amazing. This is even worse than 78. I was here for that. Reporter along the coast it was wicked winds. The surging surf pounding, threatening to flood mashfield, massachusetts, again. In prelim moth rare blast of thunder snow. Jim cantore there for the wild ride. Were in the full force of the blizzard. No question about it. Winds are gusting over 50 miles per hour. Weve had now we cant even see the water. Reporter similar conditions turn the roads dead flip weekend well over a hundred accidents from buffalo to toledo. At least six killed including a pregnant mother on the ohio turnpike. Tonight the snow has slowed but the arctic cold is just blasting in. In some regions, will feel like negative 25. Its insane. More snow than ive ever seen. Were transplants from iowa and ive never seen snow like this. Still to come on Worldwide Exchange. Japan comes out of the recession. Only just the gdp reading underwhelms the market. We find out why after the short break. Welcome back. Give you some headlines. The athens trading sharply low as germanys minister remains crucial. The e. U. Names new sanction targets as kiev said flashes continue. And no relief for the u. S. As the historic levels of ice and snow continues to pound the region. Japan has exited recession in the fourth guard with gdp rising 2. 2 . The reading came in below expectations with the effects of a sales tax weighing on japanese consumption. Lets get out from the full details. Thanks. All eyes now on the bank of japan. The twoday policy meeting which happens this week remember. Date set we saw for the Fourth Quarter, yes, as he said the japanese economy returned to growth in the Fourth Quarter of last year as expected. The headline number of 2. 2 annualized for the quarter was underwhelming. The market was expecting a number of 3. 7, 3. 8 expansions in terms of the Fourth Quarter annualized growth. It probably means the boj wont take additional easing measures this week. The data that was fairly mixed. As you would expect because the depreciation of the japanese yen and the pick up of the export markets in the west especially in the United States we have seen recovery really being driven in the Fourth Quarter by exports. A different starker story. You will for personal consumption and spending. So all eyes really on the spring wage negotiations. The big question is whether corporate japan is really going to deliver some meaningful wage increases. That. Should hopefully, if it materializes unleashes the animal spirits of the japanese consumer. The nikkei closed above 18,000 for the First Time Since july of 2007. So eightyear closing high for the index. Lets face it it wasnt a conviction mount up in the market or any other markets, really. We all seem to be still very much in a Holding Pattern until we get some clarity on the debt negotiations at your end in europe between the euro Group Finance ministers and greece as well. Thats a big risk event. The markets try to get their head around right now. Back to you. Thank you very much. Still to come on Worldwide Exchange as major oil giant slash spending. We ask how long the likes of bp and shell can continue paying out the dividends. Stay tuned on Worldwide Exchange. Danish police say they detained two suspects in connection with the weekends deadly attack in copenhagen. The gunman opened fire in a cafe holding a free speech debate and shot a man near a synagogue. Candles on a cold night in denmark. For two more victims of two more aattacks in another european city. As detectives investigating the killings raided an internet cafe, searching for clues. This morning amid panic they confronted the 22yearold lone suspect and shot him dead after he opened fire on them. His body lying in the street. Just over 12 hours earlier the shooter had burst into a cafe firing 30 times leaving more than 20 bullets in just the front window. He left one dead and wounded three Police Officers. Inside an event was promoting free speech. I could hear the gunshots approaching. I could hear arabic and the shots. Reporter the gunmans possible target one of the event organizers swedish cartoonish lars vilks who sketched the prophet mohamed as a dog in 2007. Adding him to an al qaeda hit list. Last month the french magazine Charlie Hebdo was targeted by islamic jihadists. It had printed similar cartoons. It could be that this individual were a copy cat. He knew how to handle a weapon. He also knew how to kill. We dont know whether there are other people behind it. Like in paris, the next target was the Jewish Community. Outside a synagogue a 37yearold guarding a bar mitzvah situation was shot. Another Police Officer wounded. Jews here say they will not be frightened. Im born here and i will stay here all of my life. The Jewish Community belongs in denmark. Theyre a strong part of our community. Reporter but israels Prime Minister said jews have been murdered again on european soil. Israel is your home, he told them. While in france, outside the Danish Embassy in paris, another vigil was held today. The suspect was known to security and intelligence services. Theres no indication he travelled to iraq or syria to fight as a jihadist as the paris killers did. That was keir simmons reporting. Wti crude third consecutive weekly gain. The first time to do so since may. Despite the recovery oil is still 50 off the june 2014 highs. As you can see today were at 52. 56 and 61. 64 for brent. Joining me now is Portfolio Investor at asset management. The last three weeks oil managed to come off the low it is hit late in january. Because weve seen a lot of majors saying theyre going to cutback . Its the majors but also the small independents. In the u. S. We have the u. S. Count down over a third since the october highs. Thats just the fastest drop weve seen for many years. Does that immediately reflect supply will come down . We i have a different supply in north america than we used to. Its a manufacturing process that is unconventional tight oil. The fracking you have to maintain the rate which you drill the wells because they decline so fast. So were expecting that u. S. Production is going peak around now. Were seeing that in the weekly data. So expect were now up 17 year on year but it plateaued. Well see it the next few months. By mid year well be down to the same level as we were year on year. By the end of the year well be significantly lower than the end of the year. Well seen it come down. Weve seen the majors cut back. They havent cut their dividend. I wonder if that was something that was for longterm. Protecting their share for short term i think the whole Investment Case for the Major Centers on the dividend and the ability to grow the dividend. So no we dont anticipate theyll cut. We dont anticipate theyll have to. This is all about the oil price having to find a higher level. Not just so the majors can start to reinvest but the whole industry. People forget you take the capital out and youre going see the production coming off so quickly. This is very different from pullbacks weve had in previous decades. Weve seen a lot of about comparing today with previous pullbacks. The spare kachtcapital in the system is very fight. We expect the oil price to come back. There was a talk that exxon will try to buy bp. To you believe that . I believe exxon needs to buy something. The organic reserve replacement is so poor the lack of visibility for new projects. But if you buy bp you have solved that problem for one year then bp doesnt have very good project visibility either. We have a exacerbated problem for exxon. Much more likely buy a growth euro company and maybe the bp and the bg, you know could be bg but something that has growth Going Forward. So, you know, we see within the european universe the ge. The companies have good visibility on growth Going Forward. Likely to be consolidated within the cycle. Charles, thank you very much for joining us this morning. Appreciate it. That was charles portfolio manager. Still to come on Worldwide Exchange. Record know for boston causing chaos amid treacherous conditions. We go live to the northeast after the break. 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. D the world. Greek shares tumble after last weeks rally. Hes skeptical of a deal can be reached on the bailout on the meeting in brussels today. Japans Prime Minister vows to keep the pressure on for wage hikes. Seeing the economy just roll the out of recession. Attacks are increasing as rebels try to secure the strategic railway. The ceasefire is largely upheld across the rest. The u. S. Northeast is slammed by another storm bringing with it a foot of snow in sub accident occurzero temperatures. Over 500 flights state side have been cancelled. A weekend snowstorm with gusty winds pounded the northeast. The storm has shattered records and now the bitter cold that is making life treacherous. Now theres another storm right behind it. This time taking aim at the great lakes and the southeast. Lets join sara dayllof who is live in boston. Good morning. People waking up to dangerously cold temperatures. Weather this area hasnt seen in years. Of course, this is on top of the 13 inches of fresh snow that boston and the surrounding area received over the weekend. Making it the snowiest month on record. The third snowiest winter since recordkeeping began here and obviously causing some pretty big problems. All the fresh snow combine edd with the winds were creating whiteout conditions. Authorities believe it may have led to a 20pileup. Also seeing a lot of collapsed roofs. 200 families displaced in New Hampshire when an Apartment Building roof collapsed there. Now here in boston the city was virtually shut down over the weekend. It is slowly starting to get back to life. Were seeing a lot of delayed School Openings and school closure. Public transit resuming after the weekend. The airport starting to let flights in and out. Of course, the focus and shifting now to the midwest and the southeast. That storm that is barrelling down on that area. Louisville, kentucky could receive up to a foot of snow. Other areas looking at big snowfall. Also, ice and freezing rain. It does seem there is no escape from this brutal winter that just never seems to end. Back to you. Sara thank you very much. I hope you can get yourself inside and warm up. Lets have a look at European Market which is are in the red as we look at things but not too significantly. Obvious, this follows a strong week last week in particular that saw the german index hit a record high across the 11,000 mark which were below the moment 10938. And the ftse 100 just below flat. France and italy managing to stay fractionally in the green. Lets look at the euro dollar which has been strong over the past couple of weeks. Its just above 114. Its done well since it hit just below the 112 when the ecb announced a quantitative easing a few weeks ago. The bank of england governor earlier this month knew governments could be tiring of regulating reform making. He call on the g 20 to continue in the new efforts. In his new book, our next guest argues more can be done in terms of far reaching rule making. Joining me now is professor of economics and Political Science at the university of california. Good morning to you, barry. Thank you very much for joining us. Lets talk about regulator reform and what weve seen since the financial crisis. Reactive and not proactive. Regulators tend to be reactive. Thats true and they did react to the financial crisis of 20082009 with limited reforms. So im worried that the crisis went to waste and we didnt do more in terms of financial reform. Now the pressure is off. And so should we focus on the areas that did cause the dwloebl financial crisis rather than looking at other areas . I think we should focus on three. Number one substantially more capital for the banks. Where weve gone on only a little way. Number two, getting derivative securities created on electronic exchanges. Not simply on clearing houses. Number three disconnecting the rating agencies. The big three rating agencies from the regulatory process. None of that has effectively been done. So this still seems like a very big focus for you on the Financial Sector as being one of the possible causes for the next big crisis. But would that be a perhaps misreading the situation and it could come from anywhere. It could come from anywhere. But number one on my list is the shadow Banking System which is still out there. Still likely or totally unregulated three weeks ago. We had a small central bank of a small country in the middle of europe, Swiss National bank and two, significantly sized Foreign Exchange platforms. One in london one in new zealand. Examples of the shadow Banking System circa 2015 went belly up. Imagine what could happen if a big central bank. Lets talk about about central bank. When we look at various causes of any crisis. The one common factor is too much leverage. Were we wrong to respond to the last crisis by making leverage much cheaper . I think we have to flood Financial Markets with liquidity when we did to prevent the complete economic and financial meltdown. I think it was right to let that liquidity slosh around while the economy began to recover, but regulators now have to be more aggressive in their use of macroprudential tools. Not raising Interest Rates necessarily but tightening up with higher value to loan ratios in the house and market and other instruments of that sort. And, of course Central Bank Policy is divergent this year across the major countries which has lead many to continue to argue for strong u. S. Dollar. All tow you think that argument is perhaps a little overdone. I think the strong dollar is already here. And Central Banks will have to surprise. The fed will have to tighten sooner and faster than expected or the ecb will have to do even more than what has been done in order to move the Dollar Euro Exchange rate further. Your opening made the point that the dollar moved and now stabilized against the euro. And well talk more specifically in about five or ten minutes about the situation in europe. But i want to finish off on the chat on Central Banks globally. Of course, weve seen the likes of switzerland and denmark and sweden more recently have to be reactive to what the euro the European Central bank has done. Do you think that can continue and include the u. S. As well. They might have to be reactive to use policy and deep things looser than otherwise they want. The fed clearly is watching the extent to which the strong dollar will negatively impact u. S. Economic growth. Low oil prices have the other effect. So im doubtful that the fed will remain on hold for significantly longer due to the strength of the dollar. Thank you very much for now. Well continue our chat with Barry Eichengreen in a few minutes time. Coming up stars line the red carpet for snls birthday bash. We look back on 40 years on saturday night in a few minutes time. Saturday night live celebrates its 40th anniversary this past weekend. It was a starstudded affair. Nbc has this wrap up. Live from new york its saturday night a familiar phrase started a trip to memory lane. Live from new york its saturday night one that stretches back to 1975. We established the legacy but the people who came after us kept it alive in such a quality way. Cast members reunited. And in some cases, teamed up for the first time. Good evening, im jane curtain. Im tina fey. Im amy poehler. They revisited characters. And turned unknowns into stars. Lets take a look at the score. I wouldnt have had a career without saturday night live. I cant believe my luck. I cant believe that im part in any way of something that i loved so much. The catch phrases. The classic moments that have endured. The super bassmatic 2150. It says a lot about this place. There is nothing like it anywhere else. Yeah. And everyone wanted to be a part of it. I mean, most everyone is here. And an array of former hosts took the stage. So did music icons. As snl wrapped the first 40 years, Warren Michaels and his cast took center stage. I like it. I loved this man and this group of people has seeded the comedy landscape for 40 years, you know, and they have given us an incredible gift. The anniversary bash marks the 780th episode. Insome ways it may be the most memorable. Almost live from new york. Nbc news. Coming out relating to the russian ukraine story. Of course, earlier today we heard that the e. U. Announced firth sanctions further list of names to be included despite the ceasefire agreement we heard about last week. We had a response from russia. The Russian Foreign ministry sant i are they said it contradicts. It wont help find a solution and moscow will adequately respond to the new sanctions. Of course, we dont know what that means. Clearly that ceasefire greechlt, which has been met with some skepticism over the weekend not the final answer to the dispute. Of course Ukrainian Government forces reportedly been fired on some 112 times in the past 24 hours. Despite the start of the ceasefire agreement. The comments from the countrys Foreign Ministry claimed four had been killed. Prorussian rebels said they will not uphold the truce around the eastern town where fighting has reportedly increased. Still with me is barry. Professor of economics at university of california. Thank you for coming. Lets have a Quick Reaction on the russian issue. We had the ceasefire agreement last thursday. Its been met with skepticism and fighting does still continue. What can the west do to try to make a more meaningful bit of progress . I think its clear that mr. Putin will not settle for half a loaf that imagining ukraine can be partitioned east west is not viable politically. But its also not viable economically. Because the industrial strength of ukraine is all in the east. There needs to be meaningful financial assistance. A martial plan for ukraine for the sitting Ukrainian Government. I think that would be more effective than military intervention military support for the government alone. And was the imf support plan announced last week which is a separate story coming on the same point of the ceasefire. Is that not sufficient . I think its not. Its mainly debt relief. The fund imagines that ukraine holders other than russia will restructure the existing loans. But there needs to be an injection of foreign direct investment. Real Financial Support from the west for the economy. How much longer can putin continue with this aggressive stance . I mean, his own economy, of course coming under serious pressure. It is coming under pressure. The sanctions are beginning to bite. I think we have learned that the sanctions alone will not turn the tables. There needs to be effective economic and financial resistance coming from the Ukrainian Government also. Thank you very much. Well be discussing greece and the eurozone. Lets remind you of the top headlines. Trading sharply low as germanys finance minister remains skeptical of a deal. E. U. Names new sanctions targets. And no relief for the u. S. Northeast as the historic amount was ice and snow continue to pound the region. Stamps. Com is the best. I dont have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Welcome back. Lets have a look at European Markets doing today. And theyre down slightly. The following a strong week last week for equities in general. Including in europe particularly for the dax, which did cross 11,000. It hit a record on friday following the news of the ceasefire in russia and a strong gdp print for germany on friday. As you can see, just off across all of europe this morning the ftse 100 down 1. 2 . Germany down 3. 6. And france flat and micex down. Athens was down. It was part of a decent performance last week. It returned 23 over the last two weeks. The best since march 1998. Therefore, unsurprising that it is up a bit today down 4 . Lets have a quick look at greek bond yields which remain elevated yet now at the peekaks theyve been touching. The 10 year 9. 45 . Joining me now is head of european Strategy Bank of America Merrill lynch. The professor of economics at university of california. An important meeting happening today between Europe Finance ministers in brussels. Still any kind of comprise seems elusive. At least this time theyre likely to disagree. We expect they will issue a statement acknowledging they achieved some progress and discussions will continue and most likely determine another day for another meeting. Well see one of two sides are asking it is important for greece to ask for an extension of program. For the european to bridge without any condition. So the most likely outcome, the most likely end game of the negotiations is an agreement at least discussions on a new program without a new funding for but being there to avoid in the banking sector. Why is greeces credit germany in particular. Why are they able to maintain a tough bargaining position. Do they think greece will cave into concerns or do they think there is no risk of contagion if greece were confirm. A number of reasons. Any new deal with greece would require more money. Ur our estimate is 20 billion. They want to make sure that it will be committed reform. I think more about contention than they would like to admit. But they dont want greece to believe the consent about it. Even if there are consent without the reforms nothing is going to work. Professor, ill bring you in. We havent seen that much financial contagion so far in the market. Is there a bigger risk. Is it political for the rest of europe . I think it is political. I think theres a worry about southern european the more important risk is financial. I think european policy makers are under estimating the danger of financial contagion. Its not the markets at the moment. The markets are calm in that emergency until theyre no longer calm. It could spill over from greece to portugal to other countries. Does it stem from domestic greek banks or more broadly through the bond markets. I wonder if we hadnt had quantitative easing announced if there would have been significant contagion in the sovereign bond markets . I think qe helped from that point of view. Action so far has been first and foremost in theback banks. Thats why emergency liquidity stance from the ecb is so important. There is a big meet inging today between greek government and the european union. There is a big meeting on frankfurt will the ecb will resume the extension. There has to be the prospect of productive negotiations at the end of the for the ecb to continue to do that. Do you agree to take risk on the short term . There is. This is why i think its important they continue for the ecb and the ela to be there. However, unless we see some progress in negotiations it cannot be there forever. Its only temporary as an Emergency Program sat some point they need lets talk about the political fall yoit. What are you hearing from your friends in greece how theyre receiving the new government. Even though now clear comprise has been made on the debt package. What is interesting the vast majority of the greek public already happy. But also stay in the eurozone. Is greece feels so far keeping their own policies and must be something different. Something better. So from this point of view there is a deal. The greek public will support it. When we look at the political fallout is it pop list politicians making popular calls. Were seeing ahrendt european antiausterity sentiment coming from both sides of the political speck tum spectrum. We are seeing populism in the form of spain. Even outside the eurozone. I worry about the main stream parties. The new euro government will have to comprise and be reasonable. But berlin will have to comprise and be reasonable. Mrs. Merkel has to sell comprise to the public. They havent been willing to do that so far. And professor, is there any risk of the euro not continuing or is it very safe . We back in 2007 i wrote that the euro was forever and having been out on the limb for a long time now, im almost comfortable being there. But the risks are clearly of some kind of disorderly event partial euro break up. Capital controls are higher now than theyve ever been. Okay. Tell us as we look at the euro itself in terms of where its trading map is your call the rest of 2015 . There is the outside following the announcement of ecb and qe. Okay. And elsewhere the top conviction in currencies . Definitely here to remain and its a longterm conviction. Thank you very much. Professor, its been a pleasure to have you this morning. Thats all we have time for on worldwide exchain. Worldwide exchange. Have a great day trading. If youre in the u. S. Have a wonderful day off for president s day. See you tomorrow. Whats that thing . I moved our old Security System out here to see if it could monitor the front yard. Why dont you switch to xfinity home . I get live video monitoring and 24 7 professional monitoring that i can arm and disarm from anywhere. Hear ye the awkward teenage one has arrived dont be old fashioned. Xfinity customers add xfinity home for 29. 95 a month for 12 months. 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