Is expected to touch on this evening in the state of the union. Lets check on u. S. Equity futures at this hour. Youre seeing implied open for all major averages here. S p 500 would open up by 8 points. Dow up by 50 points. The nasdaq up by 21 points and a lot of that is based on firming in the markets over in europe. Better than expected gdp numbers out of china and of course thats helping move Global Markets in a vastly different direction than we have seen for much of the month. Breaking news overnight too. Isis releasing a video early today which has been verified by nbc news consultants. It shows two japanese hostages and the now notorious isis militant seen in previous videos. Hes now demanding 200 million from the japanese government within 72 hours or the hostages will be killed. Japan reacting with anger demanding a release of the hostages and saying it will not yield to terrorism. Quite a stunning release of this video and looks similar to past videos released from isis that of course we know now how those turned out. Google is nearing a 1 billion investment in spacex to back the efforts to deliver Internet Access via satellites. The funding would value the venture at more than 10 beside. Amazon is making a big bet on the movie business. The Company Announcing plans to produce 12 million movies a year focussing on films between 5,000,025 million dollars. It would be released in theaters and then be released on prime Video Service within two months. And in other media and tech news twitter is buying zipdial. The price tag is 30 to 40 million. Twitter trying to expand in the second biggest mobile market. Lets go deeper into your Tuesday Morning market. Stock futures indicating a slightly higher open. Dow shows a jump of 50 points. The european markets shaping off central bank chaos. Well probably talk more about switzerland. Denmark, some of these Central Banks. We talked about not talking about it. You went back on what we talked about. Im talking about not talking about it. You just spent 30 seconds of our precious time on it. Asia perhaps the big story. You do not want to be switzerland. Its a nice country. Its a terrible country right now. Asia the big stock story. Yesterday you were off maybe with your family guess what shanghai collapsed. Stock market fell 7. 7 yesterday. Theyre trying to rebound a little bit. Up about 2 today. Well probably talk more about chinas problem. We should say why. They reduced the ability to do margin in that company with the sense that it was overleveraged. And growth was the slowest since 1990 although at 7. 3 or 7. 4 not a bad problem to have. Its still called better than expected. Slowest in decades and better than expected. But its one of the hottest stock markets in the world and if things disappoint just a touch. You cant short stocks there either. You can only go long. They have this weird semifree market. Lets go to oil. Brent crude overseas getting closer to breaking below our price for oil. Brent crude up slightly a couple of cents. Still below 49 barrel. Will the refinance boom for housing continue . The treasury yield at 1. 8 . A 66 jump in mortgage refinancing. That number will be out in one day. 116 per euro. Currency isnt moving much but gold is. Price of gold is up 1440 an ounce. Trying to get above the 1300 mark. The strategists are starting to to look pretty smart on that trade. Yeah they are and you know one of my four predictions for the year is that i think gold will go in triple digits. Ive been negative. Its got four digits right now. Under 1,000. Its a fun prediction. You can say things like that in january. I just like to raise the ayre of those that love gold. Why dont you give out your email and twitter account. America do you have a pen . Steve. Lie i dont comment on gold. Dont ever bash apple, gold, or bitcoin. Exactly. A volatile start to the week in china which we just mentioned. Stocks are bouncing back today if only slightly after it plunged about 8 yesterday. It was the biggest daily percentage drop in more than six years. Eunice joins us with the whole story on whats a roller coaster of a market so far this week eunice. Yeah, its basically everything that you guys just talked about but chinese stocks mainly recovered because of the chinese gdp data. The data came in at 7. 4 for the year. That was largely in line with the governments target of about 7. 5 . Still this is the slowest growth the country has seen since 1990 and the report really intensified debate over what beijing should do. What beijing will do and theres a lot of calls today about how the govern ltment would need to come in to stimulate the economy. Now keeping traders on edge in the market was the recent decision by the regulators here to crack down on margin trading because as you guys im sure well know the shanghai market has been rallying over the past several months because of a new concept in the country of margin trading. Bank of America Meryl lynch had a really interesting stat where they said that the shanghai market margin balance is now on par with the nyse. For new york it took 13 years to get to the ratio. For shanghai it took 17 months. So its not a surprise that the regulators would want to take speculation out of the market but what some people are worried about is that the effort to professionalize the Capital Markets and margin trading could end up leading to steeper sudden declines. Guys. Thank you very much. Its a big week now turning to europe. In addition to the squawk team hanging out with World Leaders in davos theres a lot of market speculation that the ecb is set to announce a full scale Bond Buying Program for quantitative easing. Seema joins us from london. You know my last name by now. Seema mody. Come on. Sorry about that, seema mody. Theyre higher across the board. All eyes on the European Central bank. What will be unveiled by mario draghi. The question isnt whether the ecb will unveil a Bond Buying Program. That is expected by the market. The bigger question is how big will the Bond Buying Program be. Analysts are saying 1 trillion euros. Will this Quantitative Easing Program will enough to revive the economy. Some are saying its needed in addition to structural reform. Thats one of the questions out there. Will it be enough to stimulate the economy. Gains across the board. Xetra dax up. Also want to draw your attention to the swiss index. After the sell off we saw on swiss equities last week on the back of the unexpected policy reversal from the Swiss National bank we did see swiss stocks sell off last week. Right now some bargain hunters coming in. Index up about 1 . Also take a look at the euro. It did break 115 last week hitting an 11 year low against the u. S. Dollar. Its strengthened on the back of sentiment data out of germany. Guys sending it back to you. Thank you very much. Here in the u. S. Traders are returning from the Holiday Weekend and the bulls are looking to change course as all three major indices are on a three week losing streak. Joining us is investment director and managing director. Did i mispronounce either of your names . I want to start with you. Are we at a point that we decided that what the Swiss National bank did was a terrible mistake . Well certainly from a Financial Markets point of view it was a mistake. A lot of people got badly hurt. The question was did they have another choice . There was a small country absorbing capitol flows through europe. We talked about this when it first happened that pegs ultimately always fail. This was the latest example of that. Weve been trying to gain out what else they could have done. Once you make the mistake with an Exchange Rate peg you made that mistake to get in. Theres no other way to make a mistake. If i was king for a day of head of snb i would have said something communicating were going to push the peg down to 115. A step down approach. At least that way they would have given the market a little bit more release. Well stick with you just a second. How bad is it . Do you think weve seen the bankruptcies and other issues out there. Full disclosure you have money in a bank that youre potentially not getting back. Some of us are in the clear. You are getting some of your money back. Over the weekend we had very positive news in terms of people coming up to rescue various parties. The irony of the whole thing is in many ways a lot of people that got hurt for doing the best possible things for their customers. Honestly nobody really knows if everything has cleared the market weve seen hedge funds already fail. One of the remarkable things negative negative negative, positive, and that positive is the United States. Youre asking the question will we recouple with the rest of the world, with my question to you, which way do we recouple . On the down slope of the roller coaster or recouple on the up slope . S p was up 14. Europe was down 5. Huge spreads in performance and certainly the first few weeks of this year its been recoupling in the wrong direction for the u. S. You can see the earnings estimates coming down. You can see how declining oil prices affected the high yield market. Theres some effects with high yield and oil and exports sector which is only gdp but it will be limited. If europe can really inflate its system maybe it will be recoupling in a good way. Why do we care about europe so much . We dont export there. Exports are 13 of gdp. Europe is important. It maings a lot of the world. Its a very heavily banked continent and if you can get the banks to lend more and people to borrow more it effects emerging markets. It effects a lot of parts of the world. But some people would argue that even excluding the rest of the world the story in the United States isnt as strong as it lets on. Were starting to hear more people reference Economic Data they havent heard of. Its down 15 from the high. You start hearing people talk about it again and im just wondering if you think that thats a distraction or you think theyre right to be looking at stuff like that. Thats at the margin where a lot of growth has been but only at the margin. It only contributed a few Percentage Points of labor growth since the recovery began. But almost all the wage gains. Almost all the wage gains. You talk about why stocks are down and energy is 8 to 10 of the s p 500. We have to reset the market expectations. We have to always differentiate do we not . The economy from the stock market because they are not the same things. Right. And earnings you know expected Earnings Growth for 2015 has been cut in half for the last few months so there are fewer expectations now and usually the companies do beat the numbers as they come through so well have to see, you know how that plays out. I was going to say the bullish side to the wage gain argument is we were talking about this earlier. Theres a massive time gap between behavior and price and if we have six months of low oil prices thats extremely positive. Wage gains for the rest of the world that hopefully translates i think people forget that brian. Higher wage gains means better stock market. Better economy. I know it does. No it doesnt. Were going to run out were going to run out of time. I want to ask you this question a lot of talk about the Federal Reserve. The Federal Reserve remains on track to raise rates despite whats happening around the world. Youre shaking your head because you agree or disagree . I disagree. Im shaking with him. Everybody is shaking this morning. Theres no reason they had it absolutely right. The fed only wants to raise rates for philosophical reasons. Theres no reason to raise rates right now. If you read the story everybody is talking about this morning theres no reason to raise rates other than they had planned to raise rates. The only people that disagree with the story were talking about is everybody that traded fixed income in the world. Last week was pretty important because it priced in a terminal rate end of 2017 of 2 . Now its about 1. 5. So the collective wisdom of the markets have been down. 42 basis points is the year end this year for the feds funds rate. That means were fast on our way to getting rid of any hype this year but maybe only one would be built in. Yeah i hi thats a more realistic assumption. I think if the data change if you get a situation where you have higher Inflation Numbers and higher wage gains its a different story. Think how realistic that is. Its not realistic at all. I dont think the path here is higher rates. And maybe like you said one at the end of the year. Is that good for stocks . So on that note its interest baugzecause the euro has come way down against the dollar without having to do anything yet from 140 to 115 and now theyre about to announce a qe. The expectations for the fed have now come down so im wondering if this is a by the news moment for the euro and european equities can actually wake it up again. Theres two big, big positive things for the european company. Lower euro and oil prices. This could be bargain hunt in some ways. The currency translation effect of pricing euros in dollars versus euros last year was like 1,000 basis points. So even if the dollar just stabilize and jurors gets some sort of reinflationary lift off we have to leave it there. Have you been in the office before. I missed the first one. I was here when the snb disaster happened. When will we have our fight about Lower Oil Prices not being good for the economy. Any time you want. Maybe its early for a fight now. But everyone is like its a good thing. I dont think its a good thing. You sign up to come in at 6 00 you be ready to fight at 6 00. My buddy took a 20 pay cut in taxes. 20 overnight his employer cut his pay. He may not buy a house now. Thats bad. Somebody saving 50 a month on gas isnt going to change their decision to buy a house. Thats my only view. Thats for another segment. 50 times 99. 9 of the economy is real economy. 4 of house net income im not going to blow through the break. Well come back to this later. Coming up eye catching new findings on who owns half the world wealth by next year. Its not the 99 . Plus why taylor swift is sending lots of love to one very sassy Delaware Police officer this morning. The video behind it. Stick around. 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 a little bit different because if youre on the radio try to picture a Police Officer jamming to taylor swifts shake it off. Dover, Delaware Police department does confirm that the whole thing was not staged but that doesnt matter to taylor swift who loves the attention and the buzz. The pop star shared the video with her followers giving this the appropriate boost. Listen hes happy and jamming. As if there wasnt enough buzz about this song before. This has taken it to a new level. I dig it. Let him be happy. He sure seems happy, doesnt he . All good. Can you shake that off steve . You hate taylor swift. I dont hate taylor swift. Between mispronouncing seemas name and dissing taylor swift. Now todays National Travel forecast. Kate parker joins me from the Weather Channel to save me kate. Im telling you, you dont want to tick off the taylor swift fans. Definitely not. Thats not the move to make. The whole grateful dead fan and taylor swift thing is difficult. I understand your challenge here but be careful with your words. Right. Heres whats going on with the forecast. Look at the snow moving in michigan. Lansing youre going to get it this morning and this is along with two clipper systems. Theyre going to be moving their way on east. We have ice on the southern end of that. You may see sleet as we head into wednesday morning. Look at this tomorrow. Thats where well see the greatest snowfall amounts. A clipper by nature is fast moving and doesnt produce that much snow. Its not going to be this tremendous snow fall event. The winds are going to pick up and youll see the snow and it will be enough to hit the road and cause some problems. Hopefully nothing like what we saw last week. The freezing rain possibility is lower with this especially compared to what we saw on sunday. Take a look at the snowfall totals through tomorrow. Central pa 13 widespread and taking this a little farther back off to the west. Youll notice its about 13. Thats the clipper system but i know youre in the south and thinking i got out of all the rain, the snow the temperatures have been warm think again. Change in pattern coming. Get ready for it. Cold weather dipping back down south right across the east coast. Youre going to feel it cool down by early next week folks. We are in the wrong part of the country. Thats for sure. We want to be on the west coast about now. Heres where you want to be. Kate we appreciate it. Thank you so much. The weather map looks like boise states football stadium. The orange and blue. In squawk sports news this morning, the nfl is investigating the super bowl bound patriots at issue whether football is used in new englands 457 win sunday were not fully inflated. Of course this has been deflategate as you can see on your screen. People who love to hate the patriots. It seems like they are the most hated team in america by those who are routingoting for a team playing them. Its going to take on a new life of its own this story. Should i also diss the new England Patriots as well because i dont like them very much. You dont . I dont like anything this morning. Are you a patriots fan . No im not. Im a chargers fan. If it deflated the balls it doesnt matter. Can we talk about green bays epic collapse. You know im a packers shareholder. I didnt know thi