Ecb holds rates steady saying the risk of deflation have not decreased. The markets set to edge lower after a jump in claims. Plus, more trouble for citigroup as u. S. Authorities open a criminal inquiry into the banks mexican unit, so should you be worried about the companys stock price . A long legal battle starting up between tesla and the state of new jersey, well tell you how the hek carmaker is fighting back against the garden state. A lot for the markets to digest ahead of the jobs friday after the s p closes for a record high for a second consecutive session. The jobless claims are up to 326,000 and as we said the ecb does keep its key Interest Rate unchanged at a quarter percent despite all the concerns about deflation rinks. In a News Conference mario draghi said the drcentral bank will use all methods needed. They say if a 0. 5 cpi doesnt get your attention, what does . This guy is really on a mission to get that economy restarted. I think hes managed to be able to dodge the russian bullet. I think he has said over draghi has said over and over again, listen, by any means necessary. He reiterates that. When i look at the rates in these countries including the third biggest bond market in the world, italy, when i look at some of the statistics nascent in autos, i get a little hopeful, but this man is not going to stop until they get better economic growth. Very bernankelike. You short europe at your own peril. And jim chanos was saying that europe is some of the europe well, International Banks. I like u. S. Banks more than International Banks but draghi is making it so those banks can refinance all they want. Covered a lot of ground with chanos on squawk this morning. He did find it stunning and scary in his view that greek bonds are trading in the sixes, basically at precrisis levels after all this time. Triple c paper in this country is trading at 6 so, i mean, you just do have this search for yield anywhere. Obviously to me i think that the att field yield is better than c yield and if you look at the Great Companies offering good dividends in this country, superior to these. But the big Pension Funds that are required to own a security that is a they are just deploying money. And they deploy money with their charter and their charter says they got to buy the stuff. If you bought greek bonds after the restructuring and you didnt tender into the big buyback or, you know, youre very, very happy. And, in fact, i did, i spoke to an institution yesterday that held on, sold just recently with this move up, it is weve pointed it out before, but they have come a long way. But this is so interesting because the rigorous thing to do was what you thought was the stupid thing to do. You know, the really most difficult thing to do was to stand pat with a government that was that to me looked like it was a flake. Right. Wow, that took courage. Congratulations to these people. It doesnt mean we are necessarily out of the woods. We dont talk about greece nearly as often as we did or italy. But a lot of the basket base pmis they liked to talk about, it looked okay. They sure did. Ireland putting up good numbers, people said its small, dont worry about it. And spain put up good numbers, its small. Europe is 700 Million People and at a certain point if you get the southern rim up, i am now beginning to hear some of the ceos say, look, the southern rim is gradually improving. Unthinkable. Unthinkable two years ago. In places like spain they are still worried about deflation given the numbers weve gotten recently and hence the ecb and the pressure on them to make sure it doesnt happen. When you have governments that they may tighten the belt and you cut back, say, frijs the amazie ing subsidies for alternative energy. The governments are tightening the belt and they are no longer the source of great job growth. You were up early on twitter and said lets hope for a quiet day, a nonrotation day ahead of tomorrows jobs report. I just feel like i would love a day where yelp isnt down four and splunks not down big and people take caterpillar up. Listened to chanos was talking about relative performance, caterpillar and how it hasnt been that bad a short versus the s p. A short he has not covered yet despite 13 this year. Right. But there were also other there were other issues that he raised about the depth of the pc and i was looking in may. Ive known jim for years. His a very rigorous thinking. But in may last 84 he was talking about being short seagate, 39 gone to 57 and the death of the pc has not occurred. So, youre getting a lot of the reason i point that out is because thats the antithesis of a lot of the 30 and 40 revenue growers erers you get somethin hewlettpackard which he said very harsh things about every earnings ill hear from him and hell talk about deferred revenue a lot of Different Things he claims on the accounting front that he claims they are doing to make things look better. But its hard to revenue, they almost have it, revenue gret. Well, what happens with like with ibm which my Charitable Trust owns youre betting on Global Growth. If you get Global Growth the companies that have fired temperature numbers of people have true leverage. Chanos is looking at the pallens sheet and saying be very careful. Im looking at Worldwide Growth and saying that meg whitman may have set the company up for nice growth. Thats how i look it. And you are pointing to an rbc note coming off a meeting. And the cash flow equals 3 3 billion, Free Cash Flow theyve been very focused on, remember, when meg took over, this was a company that obviously had a not more debt than cash. That has changed completely. It is generating free cash beyond what people had anticipated that it would. Isnt it impressive . It is whap i look at every quarter. Its what i look at every quarter and it is where they have been focussed to a certain extent. And the stocks matter. The bigger question, though, is as we enter into the midpoint of this year halfway through the turnaround that she has talked about, that being meg whitman, will we start to see growth heading into 14 and into 15 . Thats the plan. They do have initiatives. The moving shot initiative. They do have 3d printing. 3d printing thats a code word, because 3d printing is such a cult that theyve got some. Theyve got some. What im really saying is you can listen to chanos and chanos is absolutely right, the pc not doing well. But then you can look at the companies that have to do with the pc and the marketplace has decided these are cheaper than splunk and fireeye. Fireeye. Fireeye. Fireeye. Not fire tv. Fireeye. Oh, man, fire tv. But you lock at the Insider Selling and wouldnt you rather be in the hewlettpackard and nice dividend and buyback and you look at the companies and the names of people selling, wow, why do i want to buy from them, they are smart people and they are unloading. You are talking about a stock up dramatically last year being hewlettpackard and its up another 19. 5 this year, its only three months old. Almost 20 . Getting kicked out of the dow is a beautiful thing. Alcoa, eight to 12, the greatest thing to happen. My problem with hewlettpackard its been 33 and 0. 45. You can sell 2 million at 3. 44 right . You dont get the extra penny. The tax. The tax. We always have to remember the new tax that we didnt really we always thought about but it was a hidden tax. Right. Another comment by chanos today that the High Frequency effects are not material. Well, theyre not material for most individuals but if youre selling and buying millions of shares a day, im reluctant to say i think it is material. Well, well see what happens today, of course, and the jobs numbers tomorrow. One day left for you to nail the number. Tweet us your predictions for nonfarm payrolls. Use our handle stalkstreet. And this months prize, the wireless speaker, and you have until one minute before the jobs number comes out at 8 30 a. M. Eastern time to submit your predictions and you have to be right early or first and that determines the winner, so buest of luck. Are friends allowed to participate . Davids friends, yes. Theyre not my friends. Yes, friends are allowed to participate. This is isnt like battle creek, michigan, and kellogg, right . Not family. Only friends. Okay. Lets move on to citigroup this morning. U. S. Authorities have opened a criminal inquiry over a 400 million fraud at citigroups mexican unit, banamex according to the New York Times. In february citi revealed the discovery of the fraudulent loans and said employees may have participated in that crime. The inquiry is said to focus on whether weak internal controls contributed to the fraud. It doesnt, of course, mean that theres going to be any action. s is i investigating is what things like the fbi are supposed to do. Citi for its part not commenting at this point. But its yet another concern from shareholders following, of course, last weeks debacle if i could use that word where they were not cleared for buyback or dividend. Banamex very separate. You brought it up a number of times last week because you felt as though it was more important perhaps than the first brush of stories about it. You look, you google this company, i mean, google obviously is not a great forensic source and you can see the company that is involved in this. Very longterm shady operations, so, i mean, you would think at a certain point if city is in control as they have often said, obviously if you go to citi and you try to do bils at banamex, they tell you, you cant do that, they have nothing to do with each other. It almost feels like banamex had nothing to do with citi. Does citi have a different board of directors from the old days . It is not time for questionable stuff. Let me take you down the road when you look at a citi or jpmorgan or frankly a bank of america and what may be continued issues on the regulatory front, investigations, problems in overseas divisions. Does pressure start to build perhaps to split these things up . To say, do you know what, these banks are simply not manageable at their current size . That was the too big to manage era and when we look at the number of compliance people that jpmorgan had to add, it does seem like what youve created is a tower of people who do not produce revenue. But i also think that, you know look, the Founding Fathers to really go back, really hated the idea of this level of concentration. Glass steagall did work. They decided to undo glass steagall. Theres a host of reasons why i think you are right and it should be. But it was Public Policy to put the banks together and you cant suddenly say that Public Policy was wrong. Im not talking about Public Policy, im talking about if you dont get the returns in the stock market who doesnt want to be in bank of america . Had a fabulous return. And jpmorgan had a stellar move. Youre right. That may be the answer. Maybe that wont be the case. Market is liking these stocks. Morgan stanley is stalled. Investors are willing to ignore to a certain extent which is just treated as noise. They care about Net Interest Margin when i heard you mentioned 2. 8 on the ten year and i get interested if you can get a pumpup on Net Interest Margin on the Companies Report they can give a better further guidance. We know right now the guidance would be, hey, we didnt have the big blowout. Look at wells fargo. What a run its had. Endorsed by Warren Buffett. Right. But wells is a very much domestically concentrated bank. I mentioned wells because thats mr. Clean. No, theyre businesses and the business is relatively easy to understand. The cio that was mentioned once or twice. Chanos was talking about some day theyll live up to the mention of delivering alpha that no bank is too big not to be indicted. And he mentioned it again just last week this idea of corporations. When we come back the founder of geek squad promised best buy he would keep his mouth shut two years after leaving the retailer. Guess what, time is up. Stick around what he thinks that best buy needs to do to stay relevant. One more look at futures. Were trying to get five in a row, havent done it all the way back for the s p and the dow since september and october respectively. A lot more squawk on the street from post nine in a moment. Moment. Thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. To manage your money. R guy around 2 percent thats not much, you think except its 2 percent every year. Go to e trade and find out how much our advice and guidance costs. Spoiler alert. Its low. Its guidance on your terms not ours. E trade. Less for us, more for you. Tesla will file a legal challenge against a ruling that p prohibits it from selling cars in new jersey. Interesting legal strategy a patchwork as they have to deal with states individually, they are settling with some and obviously now fighting with others. I think that teslas its an important they have a very important series of showrooms in some wealthy areas and that is you know, thats something that you dont want to go away. This is a product that if you test drive it, it sells itself and its important to be out there. You can go to new york and i am confident that at a certain point tesla will be back. They have this big state that is a natural place for people to buy teslas. Highend state. Its the most congested state other than, say, california. You dont want to lose jersey. You dont want to lose jersey. I would have thought this is one where i think they could have somehow negotiated this and not get it out of hand. But the dealers are very powerful. As you might expect they would be. Theyre a very big lobby. Would you argue that this whole legal battle with the states and the dealers is more important or less important than where or how they execute the giga factory . At this point the giga factory is responsible for the next conceivable 200 points. There was an article yesterday about why do they need the 5 billion factory and the answer is very clear. If you want this company to be more than just a car company, they have to reinvent the grid maybe bring it much more toward tesla and less towards eddisoed. Morgan stanley note of not that long ago. That guy very interesting and solid work there, so i dont want to dismiss this. I mean, the grid the grid an atavastic system, those of who find power out like eastern turkey. You wake up and my powers out today. Thats okay. I live in jersey, we dont have consistent power. Or connecticut, all the viewers in connecticut who have generators in their garage for the five or six times a year they lose power. I would like to see a new grid and that man if hes going to have rockets and willing to develop cars, whats the dont forget the hyper loop. Huh . The hyper loop. Whatever it is, hes working on it. I want the hyperloop. Washington to new york. Oh, okay. To boston. The acela train im getting on today. 80 miles an hour. He doesnt just want the living room. He wants world domination. Thats nothing wrong with that. So does jeff bezos and so does Mark Zuckerberg. So does larry ellison. Is it like that . Is it like a shootout like a john ford movie . A lot of these guys like specter from james bond. They all want world domination. Hide out in a volcano somewhere. Do you want me to talk, mr. Musk . No, no, mr. Bezos, i want you to die. When we come back well get cramers mad dash as we count down to the opening bell. A look at futures. A lot more squawk on the street from the nyse straight ahead. And what theyve been through lately. Polar vortexes, road construction, and gaping potholes. So with all that behind you, you might want to make sure youre safe and in control. Ford technicians are ready to find the right tires for your vehicle. Get up to 120 in mailin rebates on four select tires when you use the Ford Service Credit card at the big tire event. See what the ford experts think about your tires. At your ford dealer. Or how ornate the halls are. Tall the building is, it doesnt matter if there are granite statues, or big mahogany desks. When working with an investment firm, whats really important is whether the people behind the desks actually stand behind what they say. Introducing the schwab accountability guarantee. If youre not happy with one of our participating Investment Advisory services, well refund your program fee from the previous quarter. Its no guarantee against loss and other fees and expenses may still apply. Chuck vo standing by your word, thats what matters the most. All right, got something for the mad dash on a others. Want to start out with yelp, you talked often about, u. S. Authorities opening a criminal inquiry excuse me, that is wrong. The ftc right. Whoa, whoa. The ftc. I apologize. The ftc is looking in to many complaints, thousands of complaints, about negative reviews that yelp that services on yelp claim were generated not from real people. Okay. Suntrust is saying the ftc has received 2,046 complaints and wondered if its different from the Better Business bureau. Im referencing them because they say its time to buy. Its a very hot button issue. Yes, full disclosure, i own a piece of an inn and restaurant, yelp is very powerful. Ive not experienced this notion that if you put an ad in the reviews get better, if you dont, the reviews get worse. Thats one of the charges. Theres basically this charge its almost as if you have to Pay Protection money. Right. And stoppleman has repeated, the ceo, said this is ridiculous. I got to tell you that i under a business can be hurt very badly by reviews, very badly. Far worse than Better Business bureau. Its instant wordofmouth and it spreads like wildfire, i always felt yelp would be vulnerable to this, but at the same time i think it will be a hiccup because its a worldwide yellow pages that sells very well our mobile and i understand theres always going to be complaints by anybody who has their store, their business flagged, bu