Transcripts For CNBC Squawk Box 20140224 : comparemela.com

CNBC Squawk Box February 24, 2014

From Michelle Carusocabrera in a few minutes, but first andrew is here with the top stories. Thank you, becky. Hope everyone had a great weekend. In corporate headlines we have a big one, netflix need for speed at the center of the big deal. A new deal with our Parent Company comcast. The two sides have struck a deal under which netflix is paying comcast for faster delivery of the video streaming service. This marks the first such agreement for netflix and is sparking speculation that other content providers may also strike similar deals. Were going to talk a lot about this throughout the program with a lot of implications, also potentiality time warner. And the whatsapp suffering an outage it blamed on a malfunctioning networking router. The founder there issues an apology to 450 million users of the service. Last week facebook bought whatsapp in a deal that could be up to 19 billion. Im wondering if there were a lot of people who didnt know what whatsapp was and caused a problem. And apple is promising a fix very soon for encryption issue with mac computers. It fixed the same issue on friday with the ios device. If you have an iphone, i just upgraded. Apple and facebook are resolving their issues through litigation and will face off in court next month. Well see where that leads us ahead. Over to you, joe. If they called me about that broken router, you know what i mean, its not working . You could have taken care of that. I would have one thing to try. The fonz, smack it . Turn it off. Reboot. I would reboot it. After that it would be somebody else needs to people, it is router thats right. We need more engineers and to fix immigration. More tech news. We have im sorry, dave, im afraid i cant do that. Robots will be smarter than us by 2029. That doesnt surprise me. No. I know a lot of people that robots are smarter than say that again. You say that funny. I know a lot of robots thanks cincinnati. Microsoft is reportedly cutting the price of windows by 8. 1 . Okay. They are slashing 8. 1 by 70 . Wow from makers of lowcost pcs if anyone still has one and for tablets, microsoft has been facing competition from apple and google devices. And ford is expected to announce the next generation of the sync system will come from blackberry instead of microsoft windows. 40 of 70 million vehicles on the road useing they have a product they bought years and years ago. That was the software to built q x. Does this save blackberry . I have no idea how much money is in this. So many things, but in the s p putin would trade the gold medals for ukraine . I do. This country had a look too far along. Did you see the guys spread and where he lived . He had 12 houses, his own restaurant in the shape of a pirate ship, he had a zoo, a total zoo and a golf course clearly you are stealing money. Hes got 100 billion and god knows what else went on at that point, but the tyrants in communist places live high off the hog. The guy in north korea, they all, for people who are supposedly lets go. Janet yellin will testify before the Senate Banking committee on thursday. This is a makeup for the appearance snowed out two weeks ago. The markets are looking for new comments about the recent employment report in the Economic Impact from all this weather, which snowed out. Thats why we needed to reschedule because of the weather. And several major retailers report this week, macys, home depot and target all on the earnings calendar. These companies could also provide more insight on how the weather and snow impacts the consumer. The polar vortex is supposedly coming banging here. It is just a normal, it was not that unbelievable, but it was like, oh, my god, is that the sun . Remember the fog we had were you here or yes. You can get into this place. Yeah, all right. Well take a look at the futures right now. I had hopes for the s p 500 that was closed and almost got back up there. It almost got up to 1850 and then turned around. 1836 still below the december 31st close to see what happens today. But barely. If you were talking about the decline of 5. 5 to 6 and making up that grauound again but we have always done solidarity after doubling in the past six years or whatever. So you wouldnt be happy. No. All right. Do we want to talk about comcast . Not yet. You are not ready . I know where you stand. Theres no overlap between comcast and time warner, so that should be a done deal. And nick is so it cannot be this way. And netflix uses so much. Is there work up to my eyebrows this is pay. There are like 33 Million People in the population using a third we are told to move on. I am. You are walking a fine line here because i have no problem being on comcasts side in this. I just really feel but you as an antitrust lawyer, you have to see whether you are principle or allegiance, which of them comes in here. I have to see that. Im on the principal side. Ill give you the principal version after we get to mcc. All right. Think long and hard about this. Are we going to have a break where we can talk before the ok okay. Ukrainian officials are racing to restore order after president yanukovych was ousted over the weekend. Michelle carusocabrera is joining us now and it seems like the situation on the ground has been changing so quickly. What can you tell us right now . Yeah, its been very fastmoving, becky. Right now the former president , theres a warrant out for his arrest for the bloodshed that occurred here last week. The parliament is meeting to as well trying to form a government. And behind me in the square, there are thousands of protesters. We hear worse news throughout the day. Theres a religious ceremony going on as well. Everyone is quite, quite somber. And the poor ukrainians are living in a situation. Because of the economic situation, this government cannot borrow on the International Markets. Under normal circumstances they could, but it is not so bad. Heres the problem. Because they bring in less money every day compared to what they spend, and just like we saw in the western european countries, if you cant borrow to cover the deficit, you have to make choices about who you dont pay. Do you not pay the pensioners or your workers . Do you not pay the Government Employees . Do not pay your energy bills, those are the choices you have to face soon. At the same time, they also have a current account deficit. Dont worry, it just means the basic is they need to fie a lot of stuff on the International Markets and they need dollars to do it. Why dont you run short on dollars and then you need to by energy at the National Emerging markets. Without dollars it will be a real struggle. They are supposed to get dollars from exports, but exports have collapsed because of the economy essentially last in the last sechbl months. They got a gap there of 2 billion a time. Under normal circumstances they can borrow, but they cant do that. If you are importing anything, you are less likely to get it to the country. The other option is just to print money, but that means massive inflation. They need a bailout and need it now. The question is, who are they going to get back to the same question that pushed this country into an eruption back november. Are you choosing the west, the eu, the imf or are they going with lush that. Those are the two choices they have. Russia would give them money with far fewer strings attached. But many people here in this part of ukraine have said thats not what they want. They want to go to the west with tough requirements. The imf is looking to raise gas prices to hurt the people here. They want them to weaken the currency to punish the banks and lead to a recession. All the choices as in any political position about what the country wants to be in the future. And are they willing to take the road against governance, and they are trying to form a government right now. Its a really tough position to be in. And well watch it over the coming days. Joe, i saved a special tart here at the en. When the soviet union fell apart, neighboringing poland ran as quickly as they could to the market ukraine an. It has denied Economic Freedom and justice to its people since the fall of communist. Now can you see the difference in the gdp. How the people in poland have used so you wonder why they are me messing. Guys, back to you. So much to think about the numbers, number one, your voice was fine and sounded ahead of the i like a raspiness, but the chanting underneath your whole narrative, it was amazing. Can you tell us where thats coming from, michelle . It sounds almost like im catholic, but what was that, do you know . I wanted to ask but dont know the answer to that question. But i was wondering myself. Theres a religious ceremony going on right now in maiden square. Its beautiful. The other thing i thought about was for the west, we are like the dog that was chasing the bus, you know what i mean . And its like, wow, they chose democracy or are trying to. Come on in. Then youll see what we have to do to help them. Its like, ah, is russia still around. Russia can take care of it. And they can use it for the ukraine. This is a tough one. Device, the other thing is next hour i want to show you something. It is just incredible. Here in the ukraine it is very difficult than russia. Here in ukraine control the parliament and control the government. So the choices that get made will be chosen by the wealthy business peopling here. And im going to show you data in the next hour. You tab about income inequality in the United States. We got nothing on ukraine. It is unbelievable. Again, you wonder why they are mad, you will understand why when i explain the rule of the with this it made my report that much more somber. Well spend time getting the Global Markets report right now with julia standing by in london this morning to give us a sense of whats going on across the pond with red behind you. I think well make. Just a bit of a choppy session and the european markets are 64 reds to greens. We are seeing the stock down 200 points by the big selloff earlier in the session with results of the inflation ratio with the steepest month ly outlook. For that we have to wait, as you can see, we have the u. K. Markets down. 40 . Ill talk to you more about the u. K. Banks, hsbc weighing in on that index. The German Market is lower 1. 61 . Perhaps some of the turbulence slightly affected export conversation there is, but much stronger than expected. Well break it down in terms of the investor. On the stop side. On the sown side here, well hone in on the bank sector, in particular, because it was hsbc drawing a lot of the intention. Investors there are not happy about the full eu results far weaker than expected. We saw a profit vortex rising just 9 to 22. 6 billion dollars. They played down the volatility we have seen in the emerging markets. A lot is from china and the Asia Pacific Region reducing costs quite dramatically. 60 businesses already solved. 40,000 sold and have tried to playoff for the most time. But you can see the stock down 3. 5 as they managed to raise the pool. Ill have that note, back to you, guys. Coming up, we have a lot to talk about the. The biggest name in mobile and soci social. Well give you the exclusive edge on the latest app, but dare i say snow is headed to the northeast again . I mate to say that. Well go to the weather channels julie martin. Good morning. Good morning, guys. We are looking at another blast of winter, unfortunately, coming into places like the northwest and the northeast. Temperatures now, Single Digits in green bay. Zero in the twin cities. A big change to the 30s and 40s just a couple of days ago. So a piece of arctic air coming in from the east but keeping things chilly in the midwest where we have seen problems with flooding and ice jams already. All that stuff is going to freeze, but well be seeing all of this as i mentioned heading to the east. We are looking at temperatures being good, 10 to 20 below average moving into late week and maybe snow coming your way by wednesday. Take a look at boston, 34. New york, 34. Keep in mind the lows are going to be in the teens 4. And all the arctic air spilling into the south well see some cold temperatures in places like midweek. Well be right back. Century link. Your link with whats next. [ car alarm chirps ] [ male announcer ] we dont just certify our preowned vehicles. We inspect, analyze, and recondition each one, until its nothing short of a genuine certified preowned mercedesbenz for the next new owner. [ car alarm chirps ] hurry in to the mercedesbenz certified preowned sales event. Visit today for exceptional offers. Visit today for exceptional offers. Pcentury link provides reliable yit Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Welcome back. The mobile World Congress kicking off in barcelona with power players like Mark Zuckerberg, ibms chief and ciscos John Chambers are giving speeches there. John fort is there to cover it all. John in barcelona, john . I dont have program. You dont have program. We will try to get back to john in just a moment. Last week you said ramedi. Weve got to get to the bottom of this. Hopefully hell email us and tell us. I think it is ramedi. I think it is ramedi. All right. Are we Strong Enough to get john back or not really . We are trying to get him. I think it is ramedi. Is it working . I think that barcelona, its tricky to get from here to there. It sounded like hes telling us he doesnt have program. Hes back. John, we have stalled enough, hopefully, to get you on the broadcast. How are you doing over there . Although it is cable. Reporter im doing pretty well. The time change is a little odd, but ive got you, thats a good start. Let me tell you, here mobile World Congress, the ceo of whatsapp is on stage right now. That kind of has set the stage for the overarching theme here. A lot more talk about emerging markets than in the past. Let me run down a few things for you there. There are 7 billion mobile connections out there right now, but only about 3. 4 billion people connected. So the focus is on expanding who is connected. Nokia, for example, just probably weeks away from getting formally acquired by microsoft. Just announced a nokia xphone that runs android. Well see if that will hold up once microsoft gets it, but the idea is to get their software in service into lowerend phones and the highgrowth emerging markets. But as i mentioned, Facebooks Whatsapp set the stage for messaging apps being very big, they are seen as a platform not just for sending messages back and forth but potentially for commerce in emerging markets. I talked to the head of chechen consulting to see what it is about whatsapp to make facebook want to acquire them. The anticipation was very high compared to whatsapp over anything else. Thats why facebooks aer taped on whatsapp so high. And really its the amount of time people are spending on it. The idea that you can layer in commerce, for instance, theres an example in india, theres a vendor selling freshcut vegetables through whatsapp. People place orders through whatsapp and it gets delivered to them. They pay on hand after that, but the idea is in the future congress could be layered into whatsapp, a lot of carriers and people trying to figure out how to adapt to that. And it will be clear to see what Mark Zuckerberg says about facebooks ambitions when he talks at the end of the day here. Well have live coverage about noon eastern time. So again, that time change is still messing with me, guys. Jon, thank you. Well check in with you later this hour. In the meantime, when we come back, setting up the markets for the week. James paulsen talks about the last trading week of february. And we are going to kickoff our mega lineup. I know whats on your mind, a little chocolate in the morning. And a prediction of dow 60,000. Heading to break, take a look at yesterdays winners and losers. You want a loan to build a factory in america . You cant do that. Nobody builds factories in the us anymore. You cant do that. Using american Raw Materials makes no sense. You cant do that. 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