Transcripts For CNBC Worldwide Exchange 20150316

The global economy. According to imf boss. The indian finance minister telling me there might be too much euphoria around the stock market. I think the markets arent the best representative of the economy. Trimming the Consumer Lending business again by ge. And welcome everyone to the show on this monday morning. Last week it was the currency space that dominated investor discussion. The euro dollar trade. This week will be janet yellen lose patience . That will be the big question. Absolutely. Age lot of moves weve seen in the bond and currency market has been around expectations what she may or may not say. Expectations remain around june to september. Thats a sufficient strong data weve been seeing has been enough to push the dollar higher. It ha. It will be interesting to if janet yellen comments on the negative impact on the stronger dollar. Something well watching on tuesday and wednesday. And the weaker euro has been driving the european better that night u. S. Take a look at u. S. Futures. Here is a look how were trading now on monday morning. Dow jones up about 59 points in premarket trade. The s p up about five. Nasdaq up about 12. Ahead of the fed policy meeting which kicks off on tuesday. Well see if the fed decides to raise rates in june or perhaps delay to fall of 2015. Take a look at the ftse global 300. A good gauge of stocks. Its not just the fed meeting we have Central Banks in switzerland, japan, and norway discussing their policy Going Forward. Take a look at the index up about 12 points. There has been a rally in european stocks. Lets break down where we see the gains and losses when looking at europe. The ftse 100 up about 32 points. The the index of todays trade up about 30 points kak 40 u about five. The micex down about 7 points. How do bonds looks . Highlighted by that divergent Monetary Policy weve got around the world. The 10 year in the u. S. Up 2. 1 percent 71 . All eyes will be on janet yellen. The greece, of course, the outlier on that trade not currently involved in the bond buying over many of the issues thats at 10. 8 . The 10 year in the uk 1. 6. And the euro dollar has highlighted the Monetary Policy better than any pair the last couple of weeks. It is bouncing back today. It is up 1. 4 . 1. 05. Goldman sachs said theyre apparently expected to hit over the next six months to be down 0. 8. Goldman sachs you can see the u. S. Flat against the yen today. The ruble losing about 2 . Lets look at the commodities. The weakness mainly pred catted on the i did vir gent. But also on weak oil prices. Today were at 44. 4 on wti and 53. 3 on brent. Putin ordered the navys Northern Fleet to go full alert for the military exercises in the arctic. Meanwhile the world waiting for president putin to reemerge after last week. Lets get out live to moscow for the latest. Reporter good morning. I guess its a measure of how critical Vladmir Putin is to the country. Hes not been seen in public since the march 5th meeting has lead to the fevered speculation as to his whereabouts. And of course all sorts of rumors have done the rounds. Is a cue taking place or hes out of the country or indeed he retired to the country side nursing a bad back from a slipped disc in a judo injure. Nobody really knows. The government and the kremlin are not giving anything away. Theyve been quiet. Theres a meeting scheduled for today that is in the president s dairy and not been cancelled as far as we know with the president of kazakhstan. What we also know is that over the weekend there was a document and the president was seen talking about crimea and saying they the government considered going to nuclear alertness over the crimea situation. So, i mean if youre asking for my suggestion in this point, i know you are probably not, maybe hell turn up in crimea. Maybe hes disappeared because of the security arrangements around that. He might show up since its one year since the referendum that took place in crimea and sanctioned, if you liked, russia taking control of that territory. That video you mentioned celebrating or mark the one year annexzation of crimea. A lot of western press saying propaganda it celebrates putins role. What is peoples interpretation of it on the ground in russia. Do they believe it is true or see theres a lot of government influence. Reporter thats a very difficult question to get to the bottom of. We know there is through the state media here again with propaganda played. What is remarkable just talking to people while ive been here and asking them about the president s absence, how few seem concerned that hes not been seen in the flesh as it were. There have been plenty of Photo Opportunities on television and, of course, that documentary. And youve got remember that in terms of the popularity poles, those that are published officially continue to suggest hes still quite popular and the ukraine conflict has not in any way tainted his support here. It is worth saying there is a lot of pain being felt here still around the economy and the sanctions are biting. At this point, the one question that remains is where is the president . Back to you. Thank you very much. Well go to jeff later in the show. Investors are counting down to the feds two day meeting kicking off on tuesday. The fomc could remove the word patient from the policy statement which would likely signal a rate hike in the summer of 2015. The green back has strengthened sharply against major currencies ahead of the meet. The dollar index is holding near hundred after breaking the key level on friday. Joining us from new york city is boris. A pleasure having you on. The stronger dollar created a certainly level of anxiety on trading floors. When taking a look do you think the stronger dollar has a deflationary impact on the markets . Its certainly not helping the fed in terms of where it wants to go. I think its not helping the fed, and its probably becomingbecoming its been so viciously strong in the rally. It may give the fed a reason for pause at this point. For example, even if they drop the word patience it does not necessarily follow theyll then in fact hike rates in june. I think thats a more likely scenario scenario. They gave themselves plenty of wiggle room. Even if they change the language a it doesnt mean theyre going to change the policy right after afterwards. I think theyre going to play that game. Weve seen a jittery u. S. Market. Peoples expectations for rate rise have been around june and september. Why has it had a big effect on equities . I think its the reality of the situation. Investors basically dont react until the reality stares them straight in the face. I think what youre seeing here is fear of the fact that the fed is going to begin to tighten policy. I think the realization that the assent of the dollar could begin to hurt profits of u. S. Corporates globally. Than could be they could be discounting other ratios because of that. Lastly, just as importantly, is simply the idea that liquidity itself is going to dry up a lot on the u. S. Shores and that has been fuelling u. S. Equity rise for a long time. All of those are creating a perfect storm for why equities are starting to fall. The other part of the story, boris, is the weakness in the euro. You look at the euro stoxx 600. If the eurozone recovery is as strong as the stock market suggests, should the euro be this weak . Ting goes hand and hand. I think the sing l, greatest trade weve seen is when qe is on by the equities of detonation. We saw it with the u. S. Japan, and now europe. I think thats probably the easiest money can be made in the market is go along the dax because qe is going to continue in europe for at least the next six to 1 month s2 months. So yeah i think those go hand and hand. Looking at the fourth straight week of losses for the euro versus the dollar. Well hit the pause button there. More coming up in a bit. More on the show also on greece. The greek finance minister telling cnbc hes not a liability to his government. Find out what prompted this testy comment right after the 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. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. [male announcer] if youve served in the military, certain habits may be hard to shake. For reintegration and adjustment issues big, small and everything in between, visit easter seals dixon center. Org. Jo nes. Zero, three, two, six. Here to make a deposit. [bell chime] ting welcome back. Lets take a look at the other top stories. Ge is selling the Consumer Lending unit in australia and new zealand to an Investor Group that considers kkr for about 6. 3 billion including debt. Ge has been pairing back or exiting the exposure to consumer businesses in japan, turkey parts of europe and the u. K. Since the financial crisis. Last week the wall street journal wrote the company is considering deeper cuts to capital. Price action and shares of General Electric up about 4 10 of a percent. One of the biggest draw back to driving an all electric car. In a tweet on sunday tesla will review a new press conference on thursday. About to end range anxiety about updates. Its among the largest raters of any vehicle about 260 miles per charge. Frankfurt is up about a half percent. And switching focus to apple. The apple watch hits stores in five weeks. Not everyone is putting one on their must have list. A reuters poll finds 69 of americans are not interested in buying an apple watch. Many said they werent that aware about the device. More than half agreed that a smart watch is a passing fad but 13 of those dont own an iphone consider buying one in order to get an apple watch which needs an iphone to fully work. That would be great if they could sell more phones and watches. Whole new product line. Before break the key headlines. Where is putin . The world watches moscow waiting for the russian president to reemerge. The dax hits a record. The and the oil industry was living in a world of luxury. And still to come on the show. Chinese stocks get a boost after the countrys pm looks to reassure investors. We tell you more after the break. Greece is to pay 580 million of a loan back from today. It was coming from a government source. It was a scheduled payment and already in the pipeline. 58 580 Million Euros to be paid back. This comes, of course after a weekend where greeks finance minister faced even more of a serious backlash after posing for a photo shoot with french magazine paris match he got into an Heated Exchange with Julia Chatterly when the two caught up with him over the weekend and asked him if the serious message. Be youve taken some heat for saying youll do whatever it takes as far as europe is concerned and the suggestion was you would the promises made to the election. Can you qualify that . We need said were going to renad on our promise. Our concern is that the four year parliamentary term. It will be spaced out in a way that is in tune with our stance in europe. And also with a fiscal position of the state stake. This is what the some government does. Were already started legislating for the crisis. We are in process of legislating. Well legislate on many more in good time after the deliberations which is what we promised to do. The press has a field day these days concocting stories that have the purpose of creating noise. What we need now is peace and quiet in order to get down to work. To put greece on the path to recovery. Youre at fault for that. The paris match a pr disaster . You allow me not to comment on particular stories in the press. But you put it in the press. You would allow me not to comment particular stories in the press. Are you in the liability for the government. You are prytrying to promote i hear liability. I try not to be. What was the message here . Were going to get out to Julia Chatterly now who is joining us on the phone from nottingham. Excellent work there over the weekend. I suppose does his reaction highlight the level of pressure he continues to be under and show that four month extension is nothing more than perg story for greece . I think it highlights the pressure. Since my interview having since come out he regrets that issue when i expected him to say in the first place and we move to far more important issues. Among the discussion i had since the election people keep saying the focus comes back to his personality and his approach more than what hes trying to achieve in greece right now. Thats why i had to question. The press was full of that. The Debt Repayment on friday, too. I cant emphasize enough when i speak to him about him. Hes smart, intention, feisty. He has interesting views yet we know theres flaws in the sector. As said over the weekend, i had brought his message. We need to see a separation from the celebrity from the politician. I think what he said to me what was right. They need to see peace and quiet to do their job. They have to create the environment themselves internally. And right now we dont see that happening. Ive defended this government. I think at times they are treated unfairly by the press. I think theres a lot of people particularly in greece concerned about the noise right now. And, you know, i also spoke to a former italian Prime Minister over the weekend, and i think he made a great point, too. He said Angela Merkel and cyprus of aggress needgreece need to come together. That brings me back to actually what we should be talking about here and thats the humanitarian crisis in the country and how they meet their Debt Repayment and how they fund the country Going Forward. Not anything else. Julia, thank you very much for that. As i said great work over the weekend. For more on the story check out our website c nbc. Com. February Industrial Production numbers are out at 9 15 eastern. Production is forecasted to risen slightly last month. Some are concerned it may slow down the manufacturing component of the index. Thats something to watch. At 10 00 a. M. We get microsoft giving the keynote speech at the convergence event in atlanta at 8 30 a. M. Eastern. Hes expected to highlight innovations to help businesses get more meaningful insight from big data. We want to point your attention to shares of netflix. A bold call downgrading netflix shares today. Cutting the price target to 380 from 450 a share citing an intensifying competitive environment. Keep in mind netflix shares have been in rally mode as one of the best performing stocks on the nasdaq 100. Up more than 30 year to date. Lets bring our market expert back in. Managing director at bks a set manager. You follow Market Trends on a broader basis. Where do you think the buying will be given fed policy meeting this week. Should we see investors taking more defense or get into the growth sectors like tech . I actually think that the fed policy decision is going to be an excuse for some profit taking in the dollar rally, which in turn is probably going to help u. S. Equities a little bit. Were trading on an inverse relationship. I think its going to be an interesting weak. Ive been saying the euro is oversold at this point. Probably due for a little bit of a balance. This is going to be a good week for an excuse for that. I dont think the fed will add salt to the wound and pretty much communicate theyre going to hike rates in june. Theyre going to be cautious and temper any expectations they can at this point. One of the things i think is interesting. I was going to say you think the euro is oversold. Is u. S. Dollar strength in general gone too far. Particularly against some of the emerging market currencies that suffered in the last couple of weeks . I think perhaps yes. I also think that actually its gone a little bit too far against higher yielding currencies like the kiwi and the aussie. Broadly the u. S. Dollar strength has probably gone a little bit too far at this point if the fed does not hike rates. What is fascinating when you look at the global stage everywhere else in the world youre looking at Central Banks are lowering rating and easeing. The fed is the only one on the balancing beam trying to tighten policy. I think its hard for the fed to get aggressively lyly tight where serve easing tremendously. I think the market may be getting ahead of itself as far as the dollar rally. Thank you very much for joining us. Still to come on the show from a world luxury to a world of pain. That is how bps ceo describes oil markets now. Stay tuned for more of his interview with cnbc. A earthquake quick look at futures. Arrows are pointing to a positive point. The dow up about 64 points. Nasdaq up about 11 in the market trade. Hi everyone. Welcome to world wide exchange. Here are your headlines from around the world. Markets up. The dax crosses 1200 points. A fed count down officially lyly underway. Waiting to see if janet yellen scraps the word. Where is putin . India is in a bright spot if an otherwise cloudy horizon for the imf economy. The indian finance minister telling me there might be too much euphoria around the indian stock market. I think markets arent the best representative of the economy. Ge is trimming the Consumer Lending business again. Part of ge capital is sold off for more than 6 billion. And if youre tuning in thank you so much for joining us on worldwide exchange. Take a look at u. S. Futures after three weeks of losses for the dow and the s p 500. Could the week be different . Fed policy that will be the big discussion on trading floors. The dow indicating a higher open by around 61 points. Nasdaq up about 11 points. Keep in mind that the tech heavy index witnessed two straight weeks of losses. It seems like investors using the nasdaq 500 perhaps as a reason to sell stocks. A lot of underperformance has to do with apple down 7 from the 52week high. Keep an eye on the shares of apple to see if the selloffs continue. European stocks not following u. S. Markets. We have been seeing green across the board specifically the xetra tax. Were seeing the ftse 100 a gain. And the french markets in positive territory up about 32 points. Keep in mind a lot of equity rally weve been seeing in europe has to do with what were seeing in the currency market. The weaker euro and the stronger dollar. A boom for the european corporate and corporate earnings. Goldman sachs says in six months they see it reaching parity with the u. S. Dollars. The last time they shared the same value was november of 2002. Thank you. Switch focus to asia. Stocks in Mainland China hit a fiveyear high after the government had plenty of policy to fend off a prolonged slow down. Shanghai is up 2 , and hong kong up 0. 5 . Now we get out there live. Thank you, willfred. It was the end of the Parliamentary Education and the chinese premier held the once a year press conference. Its the only time when we see the premier speak directly to the media. And the main message to the public as well as International Investors is that the leadership feels that it can manage the downturn and that theyre feeling comfortable with the current level of growth. Now the growth is a new normal for this year is expected to be around 7 . Thats the new target. And the premier also said that he admitted that it would probably be a bit of a struggle for the economy to reach the 7 . But at the same time he put a positive spin on it saying the government didnt have to deploy any big bang in order to support and stimulate the economy. For that reason they feel they have more tools in the toolbox to continue to support growth in a way they would need to. So because of that we saw some, you know the government really willing to take action and more positive effect on the markets. Now the other main point was that the chinese premier had emphasized a need to reduce the role of the state in the economy. These are words weve heard in the past by the premier himself. But this time he was putting a lot of emphasize on the need to encourage private entrepreneurship. He said that the government would reduce red tape. What was a bit unaddressed was exactly what the government planned to do to tackle the big state owned enterprises. There have been several calls for a break up of the monopoly and the power of the state owned enterprises and we know that they planned to merge some of these companies, but no details as of yet. Thats what people are waiting for for the next several weeks. Thank you so much for that update. Switching focus to oil. That continues to be a big story. Bp ceo has been speaking to cnbc about Lower Oil Prices warning, quote, world of luxury the industry had gotten used to is now over. Lets ged get out to hadley gamble. Hey. An incredible weekend here in egypt. 3500 delegates attending this egypt investment conference. We had International Business leaders, we had some Global Leaders as well including u. S. Secretary of state john kerry. We saw chinese inversestors. I spoke to bob dudley. I asked him about the outlook for oil market. They invested 12 million on the west nile valley. Its important for the Egyptian Government they update the oil and gas infrastructure. Thats what theyre focussed on doing. I asked about the outlook and how the current pricing level is having an impact on their decisions. Its a world of luxury. Weve been in 100 oil for three to four years. Francly, the world got used to it. The taxation was high. Thats an unusual period. Were back into the normal world of volatility of oil and gas prices. Were down now today as of friday 54 brent, 44 in the United States. Its a huge shock for our industry. Cost structures are going to have to move and change. Taxation is going have to move and change. Its going to be very painful. If do you look at the transfer of wealth in one year it will be about 1. 6 trillion will transfer from oil and gas pricing areas to consuming areas. Depending on where you are in the world its great. Anything that happens that fast can have unintended consequences. Talk to me about the volatility. How difficult is it to make longterm Investment Decisions . It means that the oil and gas industry and maybe the Mining Industry are two of the longest waive length industries in the world. We have to make decisions today where theres no revenue for sometimes seven, eight, sometimes ten years like the west nile delta. You have to make decisions and prioritize where you think theres confidence youll get a reasonable rate of return on the big bits. Many companies, including us are reducing the capital shifting activities out until were clear, but it should be a huge sign for us that we have made the decision this year to commit to this big project in egypt. So bob dudley talking about how the company is making the Investment Decisions Going Forward particularly within the pricing environment. We heard from the head of tony blare. An interesting collection of Global Leaders here over the weekend talking about the opportunity to invest in egypt. Its clear despite the fact that the government has to make major strides in terms of reforms and security as well as its clear at least as far as the United States is concerned theyre behind the president and the new egypt. Thank you very much for that hadley. Still to come on worldwide exchange. Ge may be thinking smaller is better when it comes to the lending business. Details on the latest cuts the company is making to ge capital after the short break. General electric is selling off another chunk of big Consumer Finance business as it tries to further cut the exposure to the sector. Lets get to landon dowdy. Over to you. Hey, good morning to you. Ge has agreed to sell the Consumer Lending unit in australia and new zealand to a group of investors for about 6. 3 billion including debt. It includes parter ins in minneapolis. They have more than 3 million customers providing personal loans, credit card and interest free financing for products sold by local retail partners. The company will keep the commercial finance unit. The buyers are looking to secure ties most of the debt required in the deal. Ge has been seeking to reduce the exposure to the capital business which nearly brought the company down. It paired back more exited Consumer Lending in japan, turkey, Eastern Europe and the u. K. Last year ge sold shares in the private labelled credit card business in the u. S. Reports say the company is in talks to sell stakes in south korea auto financing and credit card business. Its part of a plan to cut ge capital share of the companys profit for more than 50 before the financial crisis to 25 by next year. Despite it the finance arm has been stuck under 30 underperforming the industrial rivals that dont have big legending operations. Last week ge was considering deeper cuts it ge capital. The ceo is shooting down rumors he plans to leave before the end of his tenure. His contract runs through 2021. In an investing conference he said hes not going anywhere saying im a young man. Wolf, back over to you. Thank you very much. Switch foging focus to entertainment. Disneys live action version of cinderella topped the pack in u. S. And canada taking in about 70 million. Did you watch the movie . It hasnt come out over here. It stars lily james and kate plan chet cost 100 million to produce. It took in another 62 million overseas including 25 million in china. So far a success. Absolutely. Signfield is about to become the midwestaster. Sonny pictures television is in advanced talks to sell reruns of the nbc sitcom to an online video service. It includes hulu amazon. Last year netflix brought friends instead. Lets have a look at shares. Sony is 3. 75 today in japan. Taking look at the weather boston residents will be happy once the calendar switches from winter to spring this coming weekend. The city made history by having the snowiest season since records began in 1872. The official measurement 108. 6 inches topping the previous 107. 9 inches set in 1995 to 1996. More than half of that total came in february alone. Bostons mayor sent this tweet on sunday quote, super bowls, world series stanley cups and now snow fall records. Were truly a title city. There will be no parade for this one. The weather is just starting to pick up here. It is getting quite nice. I have to say since moving to london. One thing that is nice about the move i missed the snowstorm on the east coast. Im happy about that. Now lets remind you of the headlines before we head to break. Where is putin . The world watches moscow waiting for the russian president to reemerge. The taxdax hits a record. And dudley said the oil industry was living in a really wof lux world of luxury. Well be back in a couple of minutes. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. Building aircraft, the likes of which the world has never seen. This is what we do. Thats the value of performance. Northrop grumman. Welcome back. German chancellor has opened the Worlds Largest computer fair calling for more cooperation with china as she stood alongside chairman jack. Who exchanged a couple of words with jack. What did he tell you . Thats right. The man himself. You know the hall has filled up. You were here about an hour ago it was a frenzy. Jack came through here. So did a bunch of senior chinese officials. However everyone seemed to want to be jostling for a position to say hi to him. Hes probably the biggest celebrity here this year. So lots and lots of people and press. Youre right, i did get a chance to elbow my way in and say a quick listen. Have a listen. Hello. How is it going so far . So far so good. Lots of activities . Yeah. Thank you. Now as you could probably hear from that it was very frenzy frenzied. It was hectic. We spoke to someone on the ground here, she didnt want to be devoted edquoted but people probably under estimated jack ma. It didnt look like there was a lot of celebrity down but the commotion died down. The largest tech fair in the world. We managed to talk to a lot of other people. We spoke to the ceo of sap. Well bringing you sound bytes from that a little bit later. Theres a lot Chinese Companies. You can see in the distance the smartphone maker. I can also see the white goods product makers things like dryers and fridges. There are 600 Chinese Companies here this year. Its being held in Partnership Germany and china. So we will be speaking later tea and find out about the smartphone. Well show you a little bit of the scene now. Lots of chinese written on signs. Its not just here in the hall where a lot of Chinese Companies are but on a lot of banners and promotions around the entire fair. Well be bringing you more of that as we go around. Were going to be talking to a bitcoin company. Its a bitcoin book coopkeeper. Well see what is going on there. Also, theres augmented reality still some gadgets. Well check them out. Back over to you in the studio. Thank you very much for that. We look forward to seeing more of the gadgets and the interviews that youve got lined up. In the meantime a quick look at european markets. Its a strong day after a decent week last week. Of course, in contrast to u. S. Equities but today weve seen the xcac up about 1. 8 and the ftse 100 up about 0. 6 . After three straight losses the s p futures pointing to a higher open. The big focus this week will be on fed policy. Nasdaq up about 14 points. Dow jones up about 70 points in premarket trade. Lets get you a look what to watch. February Industrial Production numbers are out at 9 15 a. M. Eastern. Its forecasted to have risen slightly last month. Some able resists are concerned that the strong dollar may slow down the manufacturing dollar of the index. 10 00 a. M. The monthly Sentiment Survey from the National Association of home builders. On the tech front microsoft ceo giving the speech this morning in atlanta. Hes expected to highlight innovations to help businesses get more meaningful insights from big data. Back to trading action this week. What to expect. Chief option strategies at bulls eye option joins us this morning. Great to see you. Of course, fed policy. What janet yellen says will be the big question. A lot has changed since the last meeting on january 27 itth. S p and oil around the same levels. But the dollar index up about 6 since that point. Do you expect janet yellen to address the strength in the green . Well, thats the elephant in the room. How do we address that and how does she, you know, change policy with that kind of strengthening dollar. Lets understand the dollar is anticipating that rates will be raised in the future. Obviously thats a fact. And the markets right now are showing about a 20 chance here in the june meeting and a 50 chance in september, but lets remember well go from zero to. 25 . Were not going back to 5 for many years. Im interested theres too much focus on what yellen is saying. Over the last month or so i would say markets have moved more based on the fundamental data exactly the rhetoric were hearing from janet yellen. Im relieved to hear you say that. Weve been talking the talk for three years going on four the main concern whether theyre going to take one word out of the statement, i mean, patience. And ive been running out of patience with this discussion. I think the price action is more important and last week we saw some unwinding and in truth i think a bear trap may have been set, once again, 2050 is the mid point in the s p of the alltime highs to the february lows where this last rally started. And we held above that. What was interesting was last week that on that test of lows on friday the fix did not make new highs and treasury didnt make new highs. You see positive divergence there and good follow through here today to start the morning, anyway so i think the shake up may have got the bears a little bit too excited. It may be the trap. Oil price at the six year low. How much lower do oil prices go from here . Well, the markets can always go lower than you think. You can test below 40. Its interesting that the 1 continues to make new highs, but oil hasnt made new lows yet. A lot of oil stocks havent made new lows. Were holding a base here. Youre seeing a little bit of positive action but i would like to see how obviously the market reacts when oil goes down to the 44 level one more time to see if its just a test and a fill your or if it pushes through, but lets look at fundamentally if low erer goes lower thats a positive. You would think given the rise of the volatility weve been seeing over the past couple of weeks that gold shares would be getting a bid. Gold at a threemonth low. Why is that . Right. Thats again, the, you know, when you think too much you get yourselves in trouble, or i do. Gold continued to fail. Its getting close to testing the 1121 low from november. The extreme low. It found a new basis. It it comes back to the price actions most important. We think that gold should rally with instability but it hasnt. So you to watch the tape and thats why its crucially important to see how the markets react to the action and, you know, that Dollar Strength that is holding it way, way down. Everything seems so consensus at the moment. Everyone trading. Give us the top trade for the week or month ahead well, i still like facebook. Its going to get to 90. It traded from 70 to 80 for the longest period of time. Holds the 75 midpoint. I think in the long run its a powerful stock. Its been kind of left behind as the market has continued to go up. Thats stagnated and gone nowhere. Thank you so much for joining us today. Much appreciated. Chief option strategies at bulls eye. He likes facebook. Lets see that we are leaving today with european equities very much in the green. And u. S. Futures also pointing to a positive open. Thats what weve got time for. Next up for the u. S. Viewers is squawk box. For the european viewers, stay here for an extended version of worldwide exchange. Global market alert. Oil prices dropping to levels we havent seen since march of 2009. Where in the world is Vladmir Putin. Wild rumors from everything about his health to his love life. And could the death of blackberry be greatly exaggerated. Forget about the smartphone market. The company is launching a new secure tablet. Monday march 16th 2015. Squawk box begins right now. Good morning everybody welcome to welcome to squawk box here on cnbc. A tease for later this week. Tesla will answer a big fear about plugin cars. The risk of running out of power before getting to your destination. Tesla will talk about what they are calling the end of range anxiety. Well have more on the story in a little bit. But if you are waking up this morning lets get you up to speed on the markets. It has been a wild ride over the last week and a half or so. You can check out the dow futures. You can see theyre indicated up by just over 70 points. The s p up and the nasdaq up by 14th. We saw what happened friday 13th. It was unlucky. A new survey showing that Chinese Companies