Turkeys central bank hiking all of its key Interest Rates. Policymakers ignoring the warning if it is Prime Minister as they battle to defend the overnight lending rates. That was a much sharmer move thats economists have been forecasting. Also the imfs top financial counselor says the recent volatility in World Markets is due to problems in particular world countries and is not linked to the feds decision to start tapering. The imf officials argue that the fed is acting prudently. And speaking of the u. S. Central bank, fed is wrapping up its twoday meeting this afternoon. This as Ben Bernankes final meeting as chairman. That policy announcement is due at 2 00 p. M. Eastern time. Will they or wont they taper the taper . That is the question today. The u. S. Equity futures are indicated higher. In large part because of what happened in turkey overnight. You can see right now those dow futures are up by about 26 points. The s p futures up by just over 2. 5 points and the nasdaq futures up by 11. 5 points. Yesterday, by the way, was the fourth time this year that all three major averages ended the day higher. You can see that the tenyear note at this point is yielding 2. 769 , an incredibly low yield. Andrew, ill send it over to you. Im still stuck on that, tapering the taper. That was from art cashin yesterday. I have to give credit where credit is due. Yahoo posted better than expected Fourth Quarter earnings. Thats good news. Online ad sales slid again. Alibaba saw its sales growth decelerati deceleratid decelera decelerate. Were going to talk to an analyst at about 6 20 eastern time. Also, take a look at at t. They beat the street. Revenues were in line, but the company had slower Wireless Subscriber growth than some on wall street had expected. Plus a little bit of earnings central news, shares of Electronic Arts coming up a bit of pressure in extended trading. The video gape publisher earning top consensus. But its revenue and outlook disappointed analysts. Joe, you got the big story of the morning over there. Yeah. The lira was down that much and it was up a loss lost a third of its value so far. It only went up 3 . It is a tough case for whether this is going to work. It makes it much tougher makes it tougher on the economy. Much tougher to export anything. My trip to istanbul . Not as good. It wallied 3 against the dollar. It lost a third of its value. Its still looking pretty good. This is the top story and that is turkeys drastic midnight action. Is it enough to save the emerging markets . I cant imagine if we have doubled a rate which is a weekly rate. Chief International CorrespondentMichelle Caruso cabre cabrera. She goes where she needs to be. Apparently you need to be are you in the back seat of a car . How do we get a camera shot out of this . The back seat of a car in istanbul. I am in the back seat of a car because we got stuck in go back to a live location. Which means i can get a live seat of a car. You gave the broad headline which is massive hike in Interest Rates overnight. The hikes were enough to keep the lira stable. Im going to tell you a little bit in detail, what the central bank did. What you dont understand what i said, thats my point. Here is what they did. They raised the overnight rate from 7. 75 to 12 . The primary dealer rate went from 6. 75 to 11. 5 . The oneweek repo rate went from 4. 5 to 10 . The central bank of turkey has four or five different rates that they set. It is considered what central bankers were calling unorthodox policy regime. To say unorthodox policy regime was in central banking circles is their kwif lens of saying your mama wears army boots, right . Because this is not looked upon with approval. The reason this is like turkey is because of politics. They want to be able to say the official race is x, but actually, the rate that everybody has to really borrow at turns out to be much higher. Like i said earlier, the Prime Minister was very much against this rate hike, but in the end, they went with these massive, massive hike toes try to stem to flow of capital outside the country. Its very, very simple. If the u. S. Economy starts to look better, if our Interest Rates look like theyre going to go higher in the United States, why would you invest in a risky place like turkey when you can get a hire return in the United States . All the emerging markets have to raise their Interest Rates in order to be able to compete. Anyhow now well see south africa, whether theyll be forced to rate Interest Rates, as well. We had a surprise Interest Rate hike in india. South africa originally liked like theyre not going to do anything. But now expectations are going to have to do something, as well. Will we see a calming of the emerging markets as a result of these policy moves by the central bank . Guys, back to you. Michelle, is it wrong to look at this as what volcker did when he came in and raised rates . That was an attempt to fight inflation. That sounds like its more of an attempt to appease foreign investors. Well, i mean, its so stem the flow of capital outside the country from leaving the country. And why does a currency fall . An investors has money invested in a certain country. Then they say, you know what . I want to put my money somewhere else. So they sell that investment. When you see capital flight like that, when you see investors all over the world suddenly decide theyre going to leave the country, thats why you see selling in the currency. So you want to convince them to keep that money there, you have to raise Interest Rates. You have to say, we understand the ricks are higher, so were going to pay you a higher level of interest to keep your money here. The current account deficit is already bad. So, you know, they do this, i dont know, whether its going to be tougher to export anything. Thats why erdegan didnt want to do this because he has an election coming up. So he doesnt want growth to slow. Erdegan is blaming by name the wall street journal. The wall street journal and other foreign media have caused this problem. Also big businesses. The Interest Rate lobby. He likes to complain about the Interest Rate lobby, which is some people think are code word speculators, different Groups Associated with money. I wonder if you say enough over there, Caruso Cabrera, he might blame squawk box. Wouldnt you like to see that headline . Put us on the map, right . I will do my best. I will do my best. You have to be very careful as a journalism in turkey. Very few of them feel free any more to say what they would like to say because they fear reprisals from the government. This government has gotten progressively more repressive against journalists as we see an increasing preach in authoritarianism. This is a test case. Well see as we get a little petri dish over there. And, you know, dont make jokes about the back seat of a car . Thats what if i hadnt b planned on saying anything and then you did it . Thats you bringing it up where you caught him before he could he was so ready. You were making a joique to me off camera. Nobody knows that. Now they do. Dont blame michelle. She was right. There it is. Michelle Caruso Cabrera in the back seat of a car, no less. Back here at home, lets talk about whats going on in washington. Economic themes dominating last nights state of the union. Earning more than another. And we dont resent those who by issue of their efforts achieve increstble success. Thats what america is all about. But americans overwhelmingly agree that no one who works full time should ever have to raise a family in poverty. The opportunities issues, which is a little different than some of the others we heard of recently. Hes generally doesnt do that. He had one time earlier in his presidency when he talked about fat cats. He doesnt want to raise taxes on people at the top end, though he didnt emphasize that in his speech because he knows that this congress is not going to do that. The tone that he struck, he was trying to be optimistic, talk about things he could get done. He doesnt have illusions about winning over members of congress any more. So on the areas where we might be able to make progress, he turned the temperature down. He tried to keep the possibility alive. And on others, he was very matter of fact and said, you know, the American People, he tried to connect with otherwise people around the country. And im going to do things even if you dont come along. Lets talk about a couple of things. A big piece was just written over the weekend, john. The center of his party doesnt like the idea you know, they talk about the redistribution wrap. So that it was going to walk gingerly around anything that sounded like that and make it opportunity equality, not outcome equality. So that and well, income inequality. He doesnt talk about it, but he gets accuseded of orchestrating that. But no, look, for me, this is the right place to be because im not off with everybodys head. You think im off with everybodys head. Nobody is off with everyones head. Thats anyhow not true. I know some people on the left who are off with everybodys head. But do you really think there are people on the left that want to make sure the middle class doesnt do well . We all agree. These platitudes the thing is, we have different ways of trying to get there. But i think the way he anyway, the opportunity argument is a good one. Lets go through a couple of the things that he talked about, include m. Y. R. A. M. Y. R. A. What is it and more importantly, because i dont think anybody really understands, how does it work . The way it works is theres no tax benefit involved because you cant confer a tax benefit until Congress Goes along with you. It is a vehicle that companies establish in conjunction with the treasury that allows people to have an automatic amount of money set aside that goes into a treasury instrument that is guaranteed. This is something to try to get people in the habit of saving, people who dont already have a plan at work with the idea that if this money builds up over time, it could later be converted into an i. R. A. With actual tax benefits. But its a starter i. R. A. And its something that you know, as you know, andrew, the principals of behavior economics are that if you make something the default, that someone is not inclined to do, that you want to have happen like save, that will happen if you give them an option that flows automatically without them having to do anything each time. When the president talks about permitting, was that lip service around keystone or was that Something Else . I dont think it was i dont think it was keystone. But i do think it was mostly lip service. If there was red tape that they could have cut, they would have cut it last year and the year before. But this is, again, in keeping with the president trying to figure out as many things as possible where he could move the needle in some small way. Will they come up with things that they havent dealt with before . Im not sure, but im sure theyre going to have a marginal impact. Just like things like the executive order on minimum wage. It applies to the new federal contracts. A small number of people. But its something and its a lot better from the president s point of view than standing there saying why dont you pass the minute among wage piece while congress ignores him. How would you characterize his success . One thing i saw about the coverage is the speech or the year . The coverage before the speech was that we were in a dark place as a country. And he stood up and said we are the number one country, were better he doesnt normally do that. He was trying to lift a little bit of that gloom that he realizes do you think that no. Did it help his party and the guys that are in the tough districts that are coming up in november . Im just wondering whether it was mission accomplished. You know, state of the unions never accomplishes as much as everybody talks about going into them. It is an unparalleled opportunity to talk to the whole country. No one in the United States will have the Communications Opportunity he had last night. So it he might have made a couple yards on the ground, but you dont hit long passes in a state of the union. You know, the interesting bifurcation of the speech, you had the thing where he had a gentler tone. He had a nice shout out to boehner where he talked about the son of a bar keep becoming speaker of the house. Did you see that thumbs up behind him . Exactly. But then on other issues, as i said a moment ago, he was pretty matter of fact. On things like the minimum wage, for example, that polled very well. He has people behind him. The question is will they put pressure on congress and he was master of fact about that. The victory, harry reid, was he awake through the entire that was number one for ill tell you when harry reid will be awake, it will be in november on election day because there is a very real danger the democrats could lose the senate. In what state . Say it and say it right. Nevada. I like it. Hey, guys, i have to tell you, my favorite line in the speech was when he said he was defending health care and he said call your mom, waum her through the application, it will give her some peace of mind, give you some peace of mind and, besides, shell appreciate hearing from you. Boehner didnt want to smile, but he couldnt help it. Maybe well go to the m. Y. R. A. Website and see if it works. Is it myra or m. Y. R. A. . M. Wrmpt r. A. Without a trace of irony, people are shoveling snow in florida. Without a trace of irony. Are there any rescue ships out of antarctica or not . I raised that because i knew we had to go to commercial. John, thank you very much. We will talk to you very soon. When he come back, House Budget Committee chairman paul ryan will give us his reaction to the president s vow to act alone to push through his economic agenda. That is coming at 8 00 a. M. Eastern time. Next, more pressure on yahoo s yeo, ma ris ka mayer. [ tires screech ] [ 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 your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. Preowned sales event sometimes they just drop in. Always obvious. 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. Welcome back. Yesterday, it looks like things were waning and the action in the s p got us above the day before. Remember, we wanted to go up. 1790, we were down 3. 6 of whatever. There is still a lot of hesitation in the markets. We talked about how the futures came roaring back after the Turkey Central Bank acted in its midnight no, its not. But youre looking at a gain of 16 in the futures. We are sort of conjuring a lot of worry and skepticism. Were about 3. 5 down. Yeah. 10 , people would be jumping off buildings and stuff. Im surprised to hear who said were going to taper . Who said that . Art cashin. He didnt say they were going to. But he said there were questions. You said if he did that, its a big mistake. I said if they taper the taper, its going to send a horrible message. Ive got a lot of kudos yesterday. People think i made up check out anytime you want but you can never leave. Weve been talking about that for a while. I didnt make that up, but im channeling it. Because you can hear me singing it. People know that. Your voice just cracked. Ive got these weird underwear on today, im not kidding. Tommy johns . Theyre really tight. I think you could sing a little, then. In the meantime, we are watching yahoo shares this morning. The stock coming up some pressure despite better than expected Fourth Quarter earnings. Thats mainly because online ad prices slid again. Joining us right now is the managing director of Technology Infrastructure at fdn securities. And this was concern about the outlook, concern about those online ad prices. And in your opinion, is it yes, but its not the majority of the concern. I think there was a bigger concern regarding alibabas results. Its all raised to 51 growth and 51 in the third quarter. I was at 55 . So well talk about alibaba in a moment. But on the display side, theyre being hurt by competition from facebook, google, twitter and programmatic, as well. And they had an easy compare a year ago. And they still didnt do it quite as good as expected. But, again, i think the larger concern is with alibaba. First of all, Marissa Mayer says shes going to get more involved. She will be the one working on the revenue in terms of the online ads and those things coming in. Is that something that you can take to the bank as a shareholder. Well, i have a lot of respect for Marissa Mayer. But she pretty much hit it yesterday, that its going to take a while to exhibit better growth in the top line. They didnt even provide guidance for fiscal 2014. Only for fiscal q1. So it will be a work in progress. You mentioned alley ba pa is the problem. Talk about that. Andrew has made the assertion that the stock is about alibaba this morning. I think alibaba is the crown jewel. It had to do with alibaba not coming through as much as expected. We had a 45 price target in the company. 21 of that is alibaba. We had 6 from yahoo japan and 4 from cash. But the business itself is worth 14 within yahoo s share price. 36, i counted 21 for alibaba. Right. 7 for yahoo japan. Thats how much cash is there . 4. 4 billion in cash. Now 32 dollars and am i wrong here . Theres only about four or five bucks here left over where the stock is today. Ill do it again. 21 al by abamal lalibaba. And then you have japan setting you to 35. Understood. So the different question is, if you are marissa, and maybe shes gotten too much credit on the way up, what do you do on the way down . Meaning she doesnt have any control over this piece of it. Yeah, i agree. But nevertheless, shes a that alibaba is playing in a gray market, the chinese online Commerce Market is around a 200 billion to 300 billion market going in the teens. We think it will go to 45 billion by 2020. Thats a monster company. Its like a combination of amazon, ebay and pay balance. So the other question i have is now that shes going to try to take responsibility for revenue, that effectively means shes going to become an ad salesperson. She has been a visionary around design, around marketing. Now youre going to put her in the loom with ad buyers, i think is what would seem to be the suggestion. Is that something that she is capable or knows how to do . Ive heard that criticism before. I think that shes she has experience at google, for example. And google obviously makes most of its money from advertising. But i think that she has experience in both sides of that. But she has to go with the money is and i think the money in advertising. Shes talking about mobile, social, native advertising. These are all areas to emphasize. Thank you. Thank you. Coming up, is a Virtual Currency world like the wild wild west. Will the sheriff set up the rules . Thats next in the half hour. In the next hour, dow chemical is set to report. Andrew liveris will talk about the numbers. Thats speaking with us on squawk. First, as we head to a break, a look at yesterdays winners and losers, were back in a moment. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement insurance plan. 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And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. These guys went down in baja yeah, i was going to say it was down the coast. There were a lot of drugs they could have. And i think they mean once youre there, you can never leave hotel california, but while youre there, you can check out. Everything you want. Check out of reality, i think, maybe thats i was thinking it was a larger simply for being on drugs in general. If you get into a life like that, its hard to get off of it. It came out when i was in colorado, too. Joe walsh thats coming back now . Not if the dude has his way. Thats not the eagles, man. Good morning and welcome back to squawk box here on cnbc. Im joe kernen along with becky quick and andrew ross sorkin. Andrew has our stop top story of the morning. Its not that tough of a its the lira. The lira. We are writitrying to get th symbol. Its pretty packed. Turkey central bank hiking all of its rates as they battle to defend the crumbling lira currency. The bank raising its overnight lending rate to, get this, 12 from 7. 75 . A much sharper move than economists had forecast. As Michelle Caruso cabrera told us from the back seat of a car, a lot of economist res questioning the approach. And looking more into it. Last year, the growth in turkey was, what, 8. 9 . Slowed to 2. 2 . Now theyre doing this. The skeptics are saying, they have two elections coming up, growth has slowed and youre doubling Interest Rates. Bls, michelle mentioned well hear from autos central bank coming up at 8 00 a. M. Eastern time. Brazil, south africa, i can she said 8 00 our time. Oh, at 8 00. Well be hearing for another central bank if others pick up the way. In the meantime, lets look at the markets. We talked about how the futures initially took off on this news. You can see that theyre indicated higher, but not by nearly as much. Dow futures up by 16. 5 points above fair value. The nasdaq up by 7. 5. This skomg after the dow, the s p 500 and the nasdaq all three of them managed to stay higher yesterday. Thats only the fourth time this month that that has happened simultaneously on the same day. The dow was snapping a fiveday losing streak. All three of these indices were still only 3 to 4 ahead of their alltime highs. Green arrows, sharply higher in spain where you had a gain of better than 1. 1 . Italy was up by 0. 9 . More modest gains in germany, france and in london. In asia overnight, you saw the nikkei was up by 2. 7 . Thats where you saw the biggest gains on all of this. It ended up by over 400 points. Oil prices yesterday fell up nearly 2 to the highest settlement of the month at 97. 41. This morning, theyre giving back by just a little bit at 97. 18. The tenyear note is looking tae yield below 2. 78 . Whether they continue with the tapering at this point, this is a 75 billion dollars a month program. Some estimates are that they cut it to 65 billion. In the currency markets, the dollar is stronger against the euro, which is at 1. 3663. Its down against the yen at 102. 68. Up against the pound, 1. 6555 been gold prices, down yesterday. This morning, up by 7. 80 11,258. 50 answer ounce. You were right, its not a hotel in cabo. Its the allegory for the heedless, drug lifestyle, it was the music scene in l. A. You cant start things like that and songs reference things like that. Once you get on that life, you just cant get out. Its more a metaphor. Life in the fast lane thats the other one. Whats that . About the woman and the they threw all the red parties, they had all the red friends. Man. I would have never allowed us to go into the eagles thats what . You know. Life in the fast lane . Were going from this to were going from this to the fed. Why, is there something in twlb too. Yeah. I never wanted to get involved with that, but i liked this song. The more you know. The lines on my face, thats right. Excellent pap fed policy decision set for this afternoon at 2 00 eastern, economists say the taper is likely to continue as planned. And there wont be a taper of the taper. Despite the emerging market dilemma, joining us, beth ann levano. Rich steinberg, of steinberg global asset management. Youre in there are. Did you shovel your driveway down in florida this morning, rich . No, no snow today, joe. Give it time. Beth ann, they dont taper the taper, do they . Another ten today . Yeah. I think theyre going to stick to what theyve been saying. I think a measured pace is about 10 billion today. Will that be greeted thats as expected . I think its as expected. What im more curious about is what they do with forward guidance. They changed that, they tweaked it. They said its well past the Unemployment Rate. What does that mean . Are they going to give us a little bit more hard information on that . Rich, i just called you like a global strategist. Youve watched what happened in the emerging markets. But mostly you have invested in the United States mostly, i think, right . What is happening there change your view for 2014 . Right now, emerging markets, volatility has not changed our view, joe. I think what investors are experiencing with this selloff and, you know, they tend to look for an excuse, emerging markets are the excuse do jour. But i think in general, with the kind of moves we had last year, the finance tells us that the pain of loss is twice as great as the pleasure of gain. So investors are trying to kind of resettle themselves, reanchor where their thinking is. But i think this is just a normal pullback in what we think can still be a very good market next year. This year. This year. Sorry at the present. So ive got you on that. That is probably true. People are much more afraid of failure a lot of times than they enjoy success. I dont know if youve seen that, but it seems they can drive people i would imagine thats the same in the stock market. And i thought michelle answered the issue about rates going up in em, as well. As rates increased, thain vesters need that extra yield. South africans will be making a decision today and theyll probably boost rates. I think we have to see how this settles in. This is not a 1998 contagion like we saw with the russian debt crisis, at least for now. So to call weve seen some people in the media talking about this em being a crisis. Its far from that. This is a hiccup. One of the things you have to realize is a lot of investors thought em would be a good trade going through this year because it was so beat up last year. So some of that money might be fast moving leaving what they thought was going to be a good start to the year. The durables number was sort of looks like that jobs number in terms of being, you know, on the weak side. Were we right about 2014 ratcheting up growth or will the fed slowly see, oh, my god, maybe we werent in a new higher gear . I dont think the fed is going to move. One month doesnt make a trend. It was a disappointing number. The other readings, the jobs number, the housing numbers, a lot of that was tied to weather. The durable orders doesnt seem to be the case. That is a concern, but i dont think its going to be the move. Are we right that we have moved into a higher level of growth for 2014 . Im pretty optimistic. Were looking at job gains now, about, what, over 180,000 per month over the year. Were seeing people spending despite four fiscal shocks. And were looking at the housing recovery really holding off steam. That means were going to add about two to three jobs to the economy for each Single Family home built. Good news. So were on pace to i guess the fed could be successful in all of this that its done as long as we are worried along the way. Im worried that it seems too pat. They did this, they put all this money in, they think that they orchestrated a drop in the Unemployment Rate and an elevation of gdp. And i worry they wont be able to get out somehow. But you think they will be worried about it, but they will successfully orchestrate this whole deal . Well, i think what theyre going to do is theyre going to take their time. Theyre not going to do it fast. No adverse consequences . Well, they want to move away from a Balance Sheet approach and they want to move towards what theyre comfortable with, which is basically Interest Rate policy and forward guidance. So no day of reckoning coming. I read a quote about the greate greatest central banker in the history of the world. Thats not going to happen to bernanke in this case . They have a large Balance Sheet that they have town wind. Its an issue. Its like that uncle that came to the family dinner, you love him, but you want him to go home. I think thats how they feel about quantitative easing. Love him, but now its time to go. Lining in christmas vacation. There are no members in my family like that, but ive heard of that. Not that guy, the old guy, williams whatever his name was. Totally comes off. His whole back starts on fire and agnes is there, too, and she has flatulance and packs the cat in the jello. No, pack tess cat and the jello in different boxes. Yeah. Wraps them up. When we come back, dow chemical out at 7 00 eastern time. Take a look at new years maybe that New York Times square. I think of it for new years eve. But this is a stretch of broadway about to become super bowl boulevard. Made my life tough yesterday . Really . You cant drive down times square any more. You can walk down and see all kinds of cool stuff. Events are kicking off at noon today. Toboggan rides, free autographs from players and the vicinity lombardi trophy will be there. Did you hear we talked about that, william hicky. [ male announcer ] what kind of energy is so abundant, it can help provide the power for all this . Natural gas. More than ever before, americas electricity is generated by it. Exxonmobil uses advanced visualization and Drilling Technologies to produce natural gas. Powering our lives. While reducing emissions by up to 60 . Energy lives here. [ coughs ] [ male announcer ] so when he catches a cold, hes got to power through it. Vicks dayquil. Powerful nondrowsy 6symptom cold flu relief. Winter olympian ted ligety cant take a sick day tomorrow. [ coughs ] [ male announcer ] so he cant let a cold keep him up tonight. Vicks nyquil. Powerful nighttime 6symptom cold flu relief. Welcome back, everybody. U. S. Equity futures have suddenly turned lower. Minor declines for both the s p 500 and the dow futures at this point. Nasdaq Still Holding on, up about five points. But this is after we had seen the futures rally on the news out of turkey. This morning, you are seeing things turn around. Thats an indication of how volatile trading has been over the last week or so. Among the stocks to keep an eye on today, biogen, that is 6 cents better than the street was expecting. Revenue matching the estimates, as well. Coming up, how close is bitcoin to full regulation . Right now, some say it is still the wild, wild west. We can talk about that issue when we return. Hi, are we still on for tomorrow . Tomorrow. Quick look at the weather. Nice day, beautiful tomorrow. Tomorrow is full of promise. We can come back tomorrrow. And we promise to keep it that way. Driven to preserve the environment, csx moves a ton of freight nearly 450 miles on one gallon of fuel. What a day. Cant wait til tomorrow. [ 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 your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. Welcome back to squawk box. Backers of bitcoin gathering in new york for hearings on the Digital Currency days after the ceo Exchange Company was arrested on Money Laundering charges. Joining us is the cofounder of Circle International financial, a startup that hopes to bring bitcoin to the mainstream. Hell be speaking about Consumer Protections at new yorks state Financial Services hearing later today. Also the founder of brightco which ive used for years and years and years. And i knew him when you were running that. Exactly. Lets talk about this. We had jamie dimon on the program last week from davos. Right. And he said, you know, basically the whole things a joke. Yeah. You obviously disagree. Yeah bp. What is he missing . First, i dont think hes looked at it probably very closely. I think people who have looked at it really closely, including, i think, you know, entrepreneurs, investors, technologists are as excited about whats happening with bitcoin as they were with the birth of the web. And so this is a very Significant Technology that represents an open platform for payments, for the storage and distribution of financial assets, for essentially. But what about the regulators . We have u. S. Regulators who have sounded off on it already. You have this hearing going o y. The chinese regulators who we thought were behind it now are a little bit more skittish about this whole thing. You know, there are a lot of perspectives around the world. In china, for example, it really represents an escape valve from their capital controls. Its a clear threat to a lot of people with savings to get that capital out. Its, i think, a much more friendly environment frankly in the u. S. The Treasury Department has issued guidelines for what bitcoinbased operators need to do to be compliant, financial institutions, Money Services businesses, and thats exactly what were doing. And now the licensing regimes, and this is really what the new york hearings are all about. You know, oversight from state, financial and banking departments. Theyre trying to get their heads wrapped around how do we regulate this . Its different. Go ahead. Theres just this whole seeming underside to the whole business where its used for the drug trade or for things where you dont want to be able to have people tracking you. How do you dissociate yourselves from that . One, it emerged as a sort of open technology that was completely unregulated a year ago or a little less than a year ago. You know, the Treasury Department came in and said this has to have appeartyMoney Laundering controls around it. If you want to operate in the space, you need to do that. And thats great because thats exactly whats needed if you want to deal with that. You need to know your customers, be able to monitor transactions. And thats what institutions like circle and others are doing. I think, you know, so i think the guidelines are there and how to operate this in a legitimate commercial way. This is like the early days of the internet. I understand the idea of open source code, and that being kind of a barrier to entry, but if you look at linux and the open source code there, it wasnt you know, there were different ways of building on that to try and make money. Its not necessarily lin linux. Its difficult to look your way around it and figure out how there are profitable businesses that can be built upon it. For us, at least, you know, were building a business to enable skurps to eacustomers to use it for payments, and were Building Services for businesses to accept payments with 0 transaction fees and lower security and fraud risks than they have with the card networks. Thats, we think, very valuable, and we think we can build a very significant business helping retailers and businesses lower their costs. An dreessen says if target had used this technology instead of credit cards, there would be no problem. Is that right . That is essentially right. Think about it this way. Every time you interact with a counterpa counterparty, you give them keys to your bank account. Youre trusting every institution you interact with to those keys. If they dont store those keys, theres a lot of theft. Bitcoin, its all public key cryptograph y based. You never give people the keys to your bank account. The receiving end knows that you have the funds and the funds have been transferred. Jeremy, its a longer conversation. Thank you for coming in. Thank you. Good luck at the hearing. We have a great lineup still to come over the next two hours including the first on cnbc with the chairman and ceo andrew liverus. Then reaction to president obamas state of the union speech with senators rob portman and Heidi Heitkamp. And we have House Budget Committee chairman paul ryan. All of that still to come. More squawk right after this. I need proof of insurance. Thats my geico Digital Insurance id card gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Geico. Little help here. And it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. Humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohns disease. In clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. Blood, liver and nervous system problems, serious allergic reactions, and new or worsening Heart Failure have occurred. Before starting humira, your doctor should test you for tb. Ask your doctor if you live in or have been to a region where certain fungal infections are common. Tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. You should not start humira if you have any kind of infection. Ask your gastroenterologist about humira today. Remission is possible. A turkish rate hike from tokyo all the way to wall street. Well check in with Michelle Carusocabrera live in istanbul. Were going to talk to chairman and ceo andrew liverus about results and dan lobes interest in the stock. More reaction to president obamas state of the union. And im eager to work with all of you, but america does not stand still, and neither will i. Ohio senator rob portman weighs in on the president s call for action. Hour of squawk box begins right now. Good morning, everybody. Welcome back to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. The futures this morning. At this point theyve been bouncing around into the positive, into the negative. S p futures up by less than a half a point. Nasdaq futures are higher just by about 7. 5 points. Again, there has been a lot of volatility this morning. People waiting to see what happens with that fomc meeting. You see the tenyear note at this point is yielding 2. 766 . The fed is set to wrap up its last policy meeting under Ben Bernankes chairmanship today. Ben bernanke will be succeeded by janet yellen at the end of the week. At todays meeting, many expect the fed to cut its bondbuying program. That would drop it to 65 billion. President obama wants 2014 to be a year of action. During his state of the Union Address, he called on congress to continue a recent spirit of compromise. Last month thanks to the work of democrats and republicans, Congress Finally produced a budget that undoes some of last years severe cuts to priorities like education. Nobody got everything they wanted. And we can still do more to invest in this countrys future while bringing down our deficit in a balanced way. But the budget compromise should leave us freer to focus on creating new jobs. Not creating new crises. Well have much more on the state of the Union Address in just a few minutes. In some Global Market news, Turkeys Central Bank hiking all of its rates. Mostly ma policymakers battle to defend the crumbling lira currency. Michelle carusocabrera joins us from istanbul with more. This is a complicated story but a very important one today. Reporter yeah, absolutely, becky. So overnight, as you said, turkey raised Interest Rates. Here in turkey its not like in the United States where we wait for one announcement about one key Interest Rate. Here theyve got four or five depending on how you count them and whats more important at the moment. Suffice it to say that all of them went up dramatically, anywhere from 3. 5 to 5. 25. Think about that, a quarter of a point, an extraordinary moment, maybe the fed moves a half a point. So to move five full Percentage Points, a really, really huge move. We saw if you look at the oneweek chart of the lira. We saw improvement. Its since fallen back. Now this country is waiting to see what the Federal Reserve does. When you look at the onemonth or oneyear chart, even though weve seen stabilization in the lira, its fallen dramatically over the last several months, actually down about 30 since may. Were also watching other currencies. What we call the fragile five, the bit. These are all countries with big current account deficits like turkey, brazil, india, indonesia and south africa. And then we throw argentina on this chart as well so you can see, these are all the key currencies that have been suffering so much in the last couple of weeks ahead of what we anticipate will be some kind of move by the fed. Weve got to see if the lira holds, if emerging markets trade calmly, and were not just watching the Federal Reserve. Were also watching for what the south African Central Bank does one hour from now, 8 00 a. M. Eastern time. Back to you guys. Thank you, michelle, for that. Were going to talk about dow chemical. It just released Fourth Quarter results just moments ago. Earnings and revenue beating the street. Big time, actually, in one case. Joining us now to break down the quarter is andrew liverus, chairman and ceo of dow chemical. We also need to talk to him about dan lobe which just invested in the any. We spoke with andrew from davos last week literally ten minutes before dan lobe disclosed his stake in that company. Andrew, its good to see you this morning. Good to be with you. Lets talk about the earnings because both on the top line but perhaps more importantly on the bottom line, you beat and you beat big. My question is how did you do it, and is there any did you pull anything into this quarter given the pressures that dan lobe may be having on you . Absolutely not. We announced 18 months ago that productivity and selfhelp is the way through this very, very uncertain economy. Its a slow growth world and has been for about five years. A couple years ago we might have had a head fake that the economic roefr was doing better, but then china tanked. Since really mid12, and what youre seeing is a fullyear result and the momentum out of the quarter was, you know, incredibly strong based on productivity which enables growth. Fundamentally we beat targets by over 500 million of new profit in the year by productivity and, of course, doing what we have to do to keep the costs under control. That is what really made not just the quarter but the entire year. Thats a doubling of profits in the quarter. Thats a beat on revenues. And for the whole year, weve had over 900 million increase in broft really driven by productivity measures and selfhelp. We detected some faint tailwinds in the december quarter. It gives me some hope that 2014 will be better from an economic point of view. But were not counting on it. We should also note that you declared a 15 dividend increase, and youre going to expand that Purchase Program to 4. 5 million. Dan lobes third point firm has suggested done more than suggest has come out publicly and said you should be spinning off your Petrol Chemicals business. Does that make sense to you . So third point released a third to their investors. And were open to all ideas and to all shareholders. Weve completed a very thorough, Strategic Review of our company these last 18 months by our board using exteternal adviser. We came up with lots of conclusions that are not dissimilar to some of the suggestions that we read in that letter. And frankly, weve spun out and sold and divested over 10 billion of commodity businesses in the last five years. And now on december 2nd, announced another 4 billion to 5 billion with dows oldest business, the chlorine business. And so thats 15 billion when you add it all up. So thats a remake of the company in a very big way. So the ideas expressed about moving this out and moving this in, you can count on the fact that weve looked at every single option. In fact, about 35 of them. And so we are open to suggestions. This is a very tenuous world. We run a very integrated chemistry and Biology Company that is focusing on narrow markets like packaging, like water, like electronics. And we are growing with those markets as witnessed by the quarter and the year. Were open to ideas. You know, andrew hes andrew and youre andrew. Were both andrews. Its a good name. Im talking to him andrew, emerging markets, you point out led the volume growth, up 7 . Theres been, you know, little tremors coming from some of probably your some of the margins or some of the areas of the world that helped you the most. Do you see this as maybe being a headwind instead of a tailwind in the Current Quarter . Actually, no. Our emerging market sales which we define as the same as everyone else, with 35 of our revenues, which is a record for us, and where we said wed go with emerging markets 12 months ago is you go where the growth is. And so our large investments in the middle east, the big saudi investment, for example, which will start producing profits in a very big way next year, we can get low energy costs there and serve africa, serve the subcontinent and serve asia, thats going where the growth is. And weve been building market positions ahead of that investment coming online. Our investments in downstream markets like packaging, construction, automobiles, very targeted in china. And we are profitable in china even with the chinese, you know, as we said earlier, the chinese economy being somewhat faltering, its 7 . So you can target growth there. So you go and target your growth and manage it very tightly rather than, of course, think that the whole world has got a problem. Go where the growth is. Focus on productivity. You went to the middle east when we were developing really lowcost energy here. Does that hurt your investment there, or did it surprise you . Do you wish youd have focus it had domestically instead . Theres one very big difference between going to the middle east and taking advantage of lowcost energy there, which is value add and whats going on here. Here we run marketbased economics on gas prices, and ive been very vocal about how we should think about that. In nation states, nation states compete like companies. They set Energy Prices at low levels so they can value add them in their economy. They do it because they can. And so what you do is you take advantage of that and actually, frankly, my energy costs in the middle east are way lower than they are in america. Andrew, but, you know, when you became the ceo of the company about ten years ago, the stock was trading at 40. 53. Today were at about 43. 06, thats a 6 increase when most of your competitors have done much better. How do you explain whats happened over that period . Well, the way you think about time frames is its a point in time. If i became ceo in late 08, youd be asking me a very different question. The difference between 08 and now is clear. Weve overperformed the tsr, everything you want to do, weve outperformed. The portfolio in 05 was a pure commodity portfolio. That was a cyclical peak. That was those rahrah years where everything was looking great, the housing boom, and we were selling commodities because they were in short supply. 90 of our profits were commodities. If you really want to do a comparison, go to 02 and see what our profit was then. We were losing money hand over fist because we were in those exact same commodities. The boom from 03 to 05 was a commodity boom. And i just happened to be fortunate enough to be ceo elected at that time. Look at the strategy and look at the portfolio changes. Weve divested, as i said earlier, 10 billion in commodities and 5 billion to be divested. Weve remade the company. Weve gone from 47 billion in revenue down to 34 billion, back up to 53 billion, rebuilding it with high technology, patentprotected growth businesses. Which will produce new profits year in, year out independent of commodity cycles for the next many years. Weve rebuilt dow. This is not your mother and fathers dow. This is a Science Company with value add and lowcost inputs. That is a very different dow than what it was in 05. Andrew, obviously the street likes what it its seeing, the stock up by better than 3. 5 . But some of this had to come to a surprise to you, too. Back in 2009, with that roman haas acquisition, i believe you were saying at the time you expected peak earnings or strong normalized earnings to be Something Like 8 a year in terms of earnings per share that the low end would be 4 a share. And were still looking at closer to 2. 30. 2. 48, to be specific to you. Right. Youre right. Youre right. Thats because we had to do some things in 09 08 to the Balance Sheet. Weve taken about 50 cents already off. Thepreferreds. I said when andrew interviewed me last week that warren and i, we are working on the best way to do those preferreds is let them earn themselves out. Hes now an equity investor. When he gets the upside when it gets to 53. 70, they will disappear. Actually, i was just with him this week. And he basically said to me, you know, andrew, keep doing what youre doing. Keep working on the strategy of the company. Were an owner, and we like being an owner. And frankly, we think youve been running the company for the investors who will stay versus the investors who will leave. And frankly, keep doing that. What is your sense in terms of support from investors . Putting Warren Buffett aside, right now what type of support do you think you have from the shareholders and perhaps more importantly from the board . The board and we have been working together hand in hand since 06. This is a strong board. Its one of the best boards in america. A marquee board. Its been every board meeting. In this last 18 months as the world has gotten very uncertain. As new types of investors come into the stock, that are shortterm warranted weve seen throughout the sector. We knew that somewhere along the line we would have an investor who had some ideas that were very different to ours. Frankly, as i said earlier, the current investor that thinks about what we should do, those ideas are not all that misaligned. Actually, were aligned that weve created value. Its just the release of that value. So the other investors, to answer your question, weve been talking to them all the way through this. Again, the investors who will stay are the investors who well talk to. One last question, and its a critique that ive seen some analysts make in terms of talent. Some people described as a brain drain. A number of some of your most talented people have left now. The ceo he was at do you, hes now the ceo of sealed air, ceo of fmc, ceo of amd. Why havent you been able to keep those people . Or do we suggest that thats an indication of just how much talent you guys have . Just look at ceo magazines talent for leaders. We never, ever were on that list till five years ago. We built a talent pool here at dow that is the envy of not just the industry but other companies in other industries. And the fact that we get poached for talent is now indicative of the i. T. Industry. Were very, very celebratory of the leaders who get ceo jobs of smaller companies. In the case of the bigger company, that was a jemggentlem who thought he was ready seven years ago, and hes doing quite well at amd. Look, were very proud of our alumni. The fact that they can be ceos of other companies is terrific. I dont want to lose people. Weve got a great bench here. Our executive committee here can go run any company in america. Weve got do run. Are you going to be meeting with dan any time soon . I havent had the pleasure yet. We tried a few times. And were getting our schedules organized. I look forward to it. Do let us know. Thanks for joining us this morning. Congratulations on the results. My pleasure. Thank you. Next were going to talk the sotu, state of the underwear. Thats what someone said. No, state of the union. State of the union state of the union. We are not going at it alone. Weve got a former clinton adviser, don baer, and a former george h. W. Bush official. Clinton and bush, thats both no, thats right. Im sorry. Im sorry. Clinton kind of was a democrat. And joe watkins. Theyre on their way to the set. Heres a word you should keep in mind unbiased. Some Brokerage Firms are but way too many arent. Why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. Sometimes they just drop in. Always obvious. 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. President obama delivering his state of the Union Address last night, outlining an economic agenda, calling for a year of action with or without congress. Joining us is don baer, a former Clinton White house senior adviser, and joe watkins, a former george h. W. Bush white house official. I had a couple of im going to have a lot of fun with this different ways. Im thinking how can i bust on your what do i say, bust on your watkins. I want to do it this way. If ted cruz hadnt, you know, the whole shutdown thing, i read the imperial presidency of barack obama is his editorial today in the wall street journal by ted cruz. In the nations history, there is simply no precedent for an american president that has so wantonly ignored federal law. Now, if that were true, thats a really, you know, incendiary, interesting position. But i saw the author, ted cruz, and im, like, ah. Thats sort of what happened from, you know, going crazy in your first couple of years in the senate where people, you know, hes almost kind of labeled as maybe not as serious or not just, you know, you expect that hyperbole from him. Hes a very smart guy. I know that. And hes certainly built up his name. Hes probably got about 98 name i. D. , but not the kind he wantw. Im going to get mail from people that normally like me. Im going to try and redeem myself with don in this case. Don, i will tell you this. You know, its the fifth year, okay. This was the fifth sotu. I welcome the idea that jobs might be a priority at this point. Now, i watched the first couple of years with the Affordable Care act and regulations and making sure some folks pay a little bit you know, all that kind of stuff, raising taxes. And i was wondering, someday, its going to occur to him that the private sector is the place where jobs come from. Right. Was that rhetoric last night, or does he actually know this now . Look, this is a pretty significant state of the union. I think theres a lot of hohum this morning, but actually its very significant. I think you divide the speech into two parts. There was the message and theres the method. And both of them were very different for barack obama than what weve seen in the last five years. So the message, think about it. You actually didnt hear a lot about inequality, even though there was all that buildup in december. I was surprised. Its about growth and opportunity, right . This is a different message. This is a midterm fight speech. Heres the thing. Guess what . They have realized that the fall elections are not a base election. Its about the independents. Guys on the edge. Independent voters. 42 in the history of the country. They get that, right . So the message now is moderating towards this idea of opportunity and growth. By the way, their polls show them that. Thats why they switched and went with this. Opportunity and inequality is the thing to focus on. The second is the method. This is all about what hes going to redeem a sense of his effectiveness and competence. Hes going after action after action. Can he overdo it with the power of the executive . I mean, some people, i have noticed that we passed the Affordable Care act, and there were all these laws. And one by one, a lot of stuff that i thought was actually law said no, were not going to really so weve already got that precedent of not really enforcing certain laws. People want to see stuff getting done, right . Thats what they care about. If its about them, thats what they care about. The whole problem with washington in the last couple years, its all been about washington. Its not been about the people and the public. And so he wants to flip that. Will people give him the benefit of the doubt. The president s got to do what hes got to do. Think about it, bill clinton had a Hostile Congress and still got things done. Ronald reagan got things done. Lyndon johnson got things done. With republicans, anyway, there have been others that have not been terribly cooperative who have managed to get things done. He was nice to boehner last night. That was the first time in five years. Made him cry. Last night i saw him Say Something about Mitch Mcconnell at the correspondents dinner. People want me to have a drink with Mitch Mcconnell. You have a drink with Mitch Mcconnell. And thats low. Come back to the speech a minute. Youve got to think about the text, right . Think about the words that were in there from barack obama. Partnership. Coalition. Collaboration. There was also a sense i mean, there was also a sense that if you dont take it my way by the way, if you guys dont want to work with me, im prepared to go it alone. Hes lowered the bar. America, for six years youve not seen me be able to get anything done. Carrot and stick. But bring it back to where you started. Who is he going it alone with . He talked to business last night. He said i want businesses to do these things. And youre going to see him bringing them in. Hes got a group coming in on friday. When you walked in here you thought business. Youre not a true believer of the far left. I mean im more used to be called a new democrat which means im an old democrat, right . Im a clinton democrat. Okay. Yeah. We need that designation. Now more than ever. Thank you. Weve got to go somewhere. Why . What did you do . Freaking out. Thank you. Both you gentlemen. Guys, thank you. When we come back, we do have Quarterly Results from dow component boeing. Well have the numbers and the instant analysis. Stick around. Time now for todays aflac trivia question. Which city has been crowned the most dynamic city in the world . The answer when cnbcs squawk box continues. Got em. Yeah, hes clean, boss. Now listen to me, duck. I have an associate that met with, uh, an unfortunate accident. While hes been incapacitated, somebodys been paying him cash. Now, is this your doing . Aflac . Now, if i met with some such accident, would aflac pay me . Nice. This is your stop. [ male announcer ] find out what aflac can do for you and your family. Aflac . [ male announcer ]. At aflac. Com. Tdd 18886282419 can take you in many directions. Spark your curiosity for you and your family. Aflac . Tdd 18886282419 you read this. Watch that. Tdd 18886282419 you look for whats next. Tdd 18886282419 at schwab, we can help turn inspiration into action tdd 18886282419 boost your trading iq with the help of tdd 18886282419 our live online workshops tdd 18886282419 like identifying market trends. Tdd 18886282419 now, earn 300 commissionfree online trades. Call 18886282419 or go to schwab. Com trading to learn how. Tdd 18886282419 sharpen your instincts with Market Insight from schwab tdd 18886282419 experts like Liz Ann Sonders and randy frederick. Tdd 18886282419 get support and talk through your ideas with our tdd 18886282419 trading specialists. Tdd 18886282419 all with no trade minimum. And only 8. 95 a trade. Tdd 18886282419 open an account and earn 300 commissionfree online trades. Call 18886282419 to learn more. Tdd 18886282419 so you can take charge of your trading. Now the answer to todays aflac trivia question. Which city has been crowned the most dynamic city in the world . The answer san francisco. Aflac. Still to come, the streets reaction to boeings Quarterly Results. Plus, more on last nights state of the union speech. House budget chairman and former Vice President ial candidate paul ryan joins us. Squawk box on cnbc is coming right back. [ tires screech ] [ 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 your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. Welcome back to squawk box. Im phil lebeau with an earnings alert from boeing. The company posting record revenue. Eps and backlog for all of 2013. For the Fourth Quarter, the company, core eps, 1. 88 per share. That is easily beating what the street was expecting. The street was expecting 1. 57. Revenue also coming in better than expected at 23. 8 billion. That compares with the street expecting 22. 7 billion. When you break it down in terms of where the money was coming from, about 58, 59 of it was coming from the commercial side of boeing. The defense contributing about 40, 41 . The most important thing in this report is the guidance looking at 2014. Boeing, for the first time, saying that 2014, it will earn between 7 and 7. 20 per share for the full year. That is well below the guidance on the street of 7. 57. But we should point out, boeing is traditionally very conservative. The first time it gives guidance for fullyear earnings. By the way, for some comparison, it earned 7. 07 for all of 2013. Finally on the commercial delivery side, the Company Expects to deliver between 715 and 725 commercial airplanes. That compares with 648 delivered for all of 2013. Guys, there you have it. Boeing beating the street on the top and bottom line with a record year. Back to you. Youre like a specialist, lebeau. As you know, there are thousands of companies in the s p 500, as someone eloquently said here on the air. You do ford and boeing, thats it. Maybe throw in a gm. You are a beer companies. He does do beer, but thats from personal, you know. You are a specialist, man. But you do blanket the ones that you do have. The big ones. It doesnt matter where its from. Weve got to do them all. What do you think of that . I want to switch. You know i like those oldline manufacturing companies. Kind of fun seeing them make the kind of money theyre making over the last couple years. Makes up for the years we spent a lot of time hanging around bankruptcy court. I love boeing. I mean, i just love those jets, the way that they i mean joe, that number is a big number. 7. 7 715 to 725 in terms of deliveries. They are really starting to crank this out on the production side. Compare that with 648, and that number will only continue to increase with you look at the numbers with the 737, the 777 and obviously the 787 dreamliner. They are ramping up production there as well. Now we are actually watching the street trade on this. For a while it was looking flat, then up only by about 30 cents. Right now the stock up by better than 2, up by 1. 7 . Its been shaking out. The ask at this point is 140 a share. So top export or top manufacturer, i mean, its like an American Dream. And youve got everything. You know, youve got unions still well represented. You know, its americana, boeing. Feeling good about ourselves. Yeah, makes you feel good. Phil, thank you. You make us feel good, phil. I mean, thats the bottom line. This makes up for all those years when you were like i was nothing but dr. Doom in the midwest. Youre right, with that fargo accent, you know. Okay. Dont you know. Byebye. Lets take a look at some of the other earnings reports that have come out this morning. Dow chemical shares gaining in premarket trading as well. The Company ReportedFourth Quarter profit of 65 cents a share. That was well above what the street had been expecting. They were looking for just 43 cents. The stock up better than 7 right now. The company also increased its dividend and boosted its Share Buyback program. Emc earning 60 cents a share for the Fourth Quarter. That was a penny above estimates. But the stock under pressure this morning after the company gave weaker than expected guidance for 2014. Its down by about 2 . And tupperware reporting Fourth Quarter profit of 1. 1. 8 with revenue also falling short. The maker saw sales down 1 to 3 with fullyear sales flat to up 2 . And in global news, Deutsche Bank says it is on track to reach its profitability targets and plans to strengthen its capital over the next year. The german lender is dealing with a litany of lawsuits and the need for internal cultural change. Coceo andrew james sitting down with our cnbc europe colleagues this morning. Among the topics discussed, emerging markets. Emerging markets covers a very broad swath of countries. The ones that are most affected are the ones with high deficits and a big dependence on international capital. Clearly they have experienced some volatility in equities, in their Foreign Exchange and also their Interest Rates. Yes, we believe that volatility will continue. Particularly as when u. S. Growth picks up to the point where u. S. Monetary policy changes, history tells us that will be a period of continued stress for emerging markets. You can see more of thatter interest view, and you should on cnbc. Com. President obama says that he will tackle the countrys Economic Issues alone if congress cant get the job done. What i offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class and build new ladders of opportunity into the middle class. Some require congressional action. And i am eager to work with all of you. But america does not stand still, and neither will i. So wherever and whenever i can take steps without legislation to expand opportunity for more american families, thats what im going to do. Joining us right now with reaction is senator rob portman. He is a member of the Budget Committee. And senator, thank you for joining us this morning. Its great to see you. Becky, thanks for having me on. What did you hear last night from the president . Did you hear an olive branch being reached out, something saying come and work with us, or did you hear its my way or the highway . I heard both. I think sort of the American People, it was an interesting speech, kind of ambivalent, on the one hand, wanting to work with congress, being conciliatory. On the other hand, kind of giving a campaign speech. By the way, the same thing in terms of the state of the union at one point saying everythings great and then saying actually weve got some big problems. I think people might have been a bit confused. Bottom line is we do have lots of things we can work with the president on. He knows that. He now says hes eager to do it. He hasnt shown that in the last five years. But its time to get to work. One of the things that he certainly tried to stay away from any rhetoric, i think, was on the issue of immigration. That sounds like there is an issue where both sides might be able to come together. Would you agree with that . Yeah, i thought that was more the conciliatory part of the speech where he said very little about it. I think he was trying to tell the house particularly that its in his interest to get something done, and he hopes he can work with them. But becky, i do think hee explic explicit. One is what ive talked about in the past on the show and that is to reform our Corporate Tax code. He put out a bit of an olive branch saying our rates too high. Then he said he wants to use some of the savings, he called them, from getting rid of the loopholes for more government spending. And that would be inconsistent with what he said for the last couple years which is that he wants to use the reductions in the loopholes and the premps preferences to lower the rates to make us competitive. I was both happy that he talked about Corporate Tax reform but also concerned that he now seems to be backtracking on his policy of making it revenue neutral. Senator, we knew some of those issues to begin with. He hinted at that last year where he said he wanted to do additional spending on infrastructure, maybe this was a place where you could reach bipartisan agreement. You change the tax code, you use some of the immediate savings to spend on infrastructure. If its a shortterm payout where you use those savings, is that something where you think you could Reach Agreement . Becky, we need every cent to get the rates down, as you know. And in february of 2012, so were talking two years ago, he laid out a white paper from the Treasury Department saying lets use the reduction in the references to actually get rates down because if we dont, were not going to have a competitive code. As you know, its not just about the rates. Its about our international system. So look, theres good news out there. Theres also some bad news. And the bad news is that a bunch of American Companies are looking to domicile overseas, and a lot of American Companies are spending their money overseas rather than bring it back here to invest because of our Corporate Tax code. So were losing jobs as a result. Second, he did talk about energy, which i liked, and he talked about all of the above energy which i think is an opportunity for us to work with them. Ive never heard him so positive about natural gas, as he should be. I think it has kept the economy afloat over the last few years, specifically fracking and horizontal drilling. And then he talked about skills training. There is a lot of possibility here, specifically on Unemployment Insurance extension, but more generally on reforming the way we train our workers and the skills gap that has to be addressed. Look, he talked about some of the other things that its possible for us to work on together. But well see. Hes talked before. Words are one thing. Action is another. Yeah. Senator, my point was that we its good that hes saying jobs a lot, talking about jobs a lot. And thats good. I just hope were at a point now where we know where jobs come from. There are Small Businesses and entrepreneurs and mediumsize businesses and largesize businesses. What they all have in common is that it ends in is abouts, and its actually the private sector. He can wave a wand all he wants and say im going to do these things. But anything short of making it easier for businesses to hire is just more hole row rhetoric. I wonder if you think he actually understands now, this is a private sector issue. I need to so you know, more lineitem pen regulations that hes talking, more things that hes going to do on his own that are actually antibusiness arent going to help. Do you think he gets it now that its all about helping businesses hire people, not him hiring people . No. He doesnt get it yet. Significantly, i think a lot of members of the administration, you know, havent been in the rough and tumble business and dont get it. But look, he did say some of the right things, joe. And i mentioned, you know, what he said with regard to international trade, and in my response last night, too, thats another one where he talked about something that will help Small Businesses, midsize and the boeings of the world that will let him negotiate barriers to trade. Thats the sort of stuff people are looking for. America is on the sidelines. Its the first time ive heard him say that, joe, so explicitly. He needs to talk about it in order to get democrats to the table to actually get something done on trade. Nothing about keystone or anything. Keystone would be great. It would fit everything hes talking about. Im not going to stand still, but you cant hire people. You cant you know, you can do it with the government minimum wage, but its the businesses that have to hire people. So help you know, he sort of can be a conduit, right . Yeah, of course. And look, a lot of things that he talked about last night are things that he has talked about before. So ultimately, this is about whether the talk last night is going to be translated into action. And were ready. Were eager. Wed like to work with him on some of this stuff. We dont think the economys in good shape. The president talked a lot about how things are getting much better, but he neglected to talk about the fact that incomes are actually down. At one point he said incomes havent increased. Theyre down 4,000 bucks. He also talked a lot about the deficit going down. Hes a president that will add more to the debt than every single president in history combined. So we do need to continue to address that as well. So look. It was kind of a mixed speech, i thought, in terms of the message and a little bit of an olive branch, a little bit of a campaign speech. Lets try to Work Together and get some of this stuff done. Were going to say it at the same time. Were going to share our question. Senator, we have a question for you. 2016. Who . Who can get elected in ohio . Who can win as a republican in ohio . It used to be a pretty, you know, consistent state you could count on. Not anymore. What kind of republican needs a run there to win it . Well, look, joe. George bush can win it twice. Barack obama won it twice. Last time pretty handily. So were a true swing state. Are you running . Look, im focused on what im doing now. You might . In 2014, which is the great opportunity to get a majority in the senate. Youve got a lot of experience. This year. Let me tell you what i think could change the dynamic in this town and actually get the president to the table and do the kinds of things that clinton did in his second term, which was welfare reform and balanced budget. That would be getting a majority in the senate for the republicans. I think it would change everything because it would tell the president clearly, one, obamacare is not working. Weve got to deal with that. But second, that weve got to Work Together to solve these problems. Thats my focus right now is to go around the country, elect some more republicans to the senate, and actually figure out a way to get this country moving forward. Do you think i was right about cincinnati when i said the west side is like duck dynasty and the east side is like Downton Abbey . Im right, arent i . I know that now. Once a year i get to serve lunch to my republican colleagues in the senate. And tomorrow im serving Skyline Chili washed down with ice cream. Sea salt. Soft caramel. If it plays in cincinnati. Coming up, the ceo of Southern Company on how the cold weather is hitting the energy industry. Plus, street reaction to boeings earnings out just moments ago. Were going to get you through some of those highlights and talk about the stock. Then at the top of the hour, House Budget Committee chairman paul ryan. Hes going to join us with his reaction to last nights state of the union. Squawk box coming right back after this. Welcome back, everybody. We have some breaking news. Lets get back to phil lebeau for more on whats happening in the auto sector. Phil. Becky, fiat has officially announced that it is reorganizing, renaming itself instead of just being known as fiat and also owning chrysler, it will now be known as Fiat Chrysler automobiles. Thats one part of this move. Another part is that it will be listed both on the nyse as well as the milan stock exchange. So youve got a dual listing there. This is all part of them reconstituting fiat now that they have completed the purchase of chrysler. Again, fiat going forward, will eventually be known as Fiat Chrysler automobiles. Guy, back to you. Phil, thank you. See, a very busy man. You know what . He did that for me to show its not just boeing. There you go. Lets get to tom fanning, Southern Company just releasing its Fourth Quarter results. Earnings results beating estimates on both the top and bottom line. Joining us now to break down the quarter, tom fanning. Southern companys chairman and ceo. Good morning to you. Good morning to you folks. Great to see you. I want to hear what you thought of the president last night, but lets talk about your earnings first. What happened . Because the past quarter you had missed. Look, what weve seen over really the past two years are some of the mildest weather weve ever seen in the southeast, coupled with a challenged economy. We kept thinking it was going to get better. And it got better in 2013 in the second half, but not as much as we thought. Now, the momentum looks pretty good. We responded with significant cost management. Thats kind of how we made our numbers. And so the bigger question is long term, can you still see it in a cutting world . Listen, i think theres plenty of room for the top line to grow. The economys getting more and more electrified as an enduse energy resource, electricity outstrips everything else. And in fact, i think, you know, weve talked about this a lot in past shows. When you think about National Energy policy, holy smokes, i think that the United States is poised to become energy secure, to create an unassailable advantage for manufacturing, to grow jobs, personal incomes, make american lives better. Was there anything you heard that made you excited about the president said last night or anything that made you angry . So the president has been consistent in the past talking about an alloftheabove energy policy. Of course, i talk a lot about that all over the United States. Company strategy. All of the above, right . Yes, it is. And in fact, were the only company in america doing all that. New nuclear, 21st century coal, natural gas, renewables, energy efficient. The president last night focused on natural gas, particularly in the transportation sector, i think, renewables, and talked about more energy efficiency. Lets not forget the good old workhorses that have carried america so far for so long. That is nuclear and coal. So weve got to keep all that going. Do you ever think that the alloftheabove strategy is good from a diversification standpoint but are there quarters or years where you say you know what . I wish i was in just one of these things because man, thats where i should have put my money. Oh, sure, but thats not the way youve got to run the business. Were one of the most capital intensive businesses. Our planning horizon is 20 to 40 years, for heavens sakes. Weve got to make longterm bets in everything we do. One of the interesting things, though, andrew is this notion of this rush to gas. In fact, Southern Company has moved away from coal. It used to be 70 of our energy came from coal. Now 35 . It used to be 16 from gas. Now about 45 . So we made that. But this polar vortex situation weve seen recently has really illustrated some of the things ive been saying for a while now. That is, of the five kind of points i generally talk about, one of them is the need for infrastructure development. We need more pipes. We need firm transportation. We need more storage. If you did not have those aspects, we have seen a blowout in some of the Natural Gas Prices in the spot market. Southeast we are about 4. 50 per million btu during this period. Some places in the northeast went to 130 per million btu. Tom fanning, congratulations on the results. Weve got to run. But its great to see you and we hope to see you soon. Great being with you guys again. You bet. When we come back, Budget Committee chair paul ryan, hell be joining us right after this on squawk box. Friday night, buddy. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. I nethats my geico Digital Insurance id card search, compare, and apply at creditcards. Com. Gots all my pertinents on it and such. Works for me. Turn to the camera. Ah, actually i think my eyes might ha. Next Digital Insurance id cards. Just a tap away on the geico app. Could save you fifteen percent or more on car insurance. Everybody knows that. Well, did you know that when a tree falls in the forest and no ones around, it does make a sound . Ohhh. Ugh. Being out with Quarterly Results. Joined on the squawk news line with managing director of equity research. Howard, the delivery, what is it that was most positive about the current numbers that we saw . The execution. I mean, sort of boring, but they did a nice job of making the commercial deliveries, which we knew about, and defense is a little bit stronger than even we thought. So from if i were to decide, you know what . I love the future this company has. As the entire world is moving more people from city to city, obviously, it seems like it has a really good secular, longterm story. Why would i buy it up here at 135 . Probably the stocks going to come in a little today. I think investors had slightly Higher Expectations for earnings. And for next year. We did, too. So the Current Quarter is not the problem. Its that miss of 30 cents or 40 cents on next years fullyear eps . Yeah, but my guess is theyre starting out conservative. And if you go and look at last years guidance, it started a lot lower than the 7 plus that they ended up reporting. Is there did they give any color as to why i mean, a lot of Times Companies say these are our expectations. You know, we cant control where the street is. Is there anything that maybe analysts were too bullish about in terms of either something specific to the company or the macro environment . You know, i would argue with a knit here and an item there. For example, theyre talking 715 to 725 for total deliveries for 14. And we had, you know, a big deal, but we had 730 deliveries. You could argue theres, you know, ten airplanes, a couple at the high end that could be a couple hundred plus million dollars. Thats a few airplanes. My guess is that theyre going to try to make it up. Howard, appreciate it. Well keep it short. Thanks. Thank you. See ya. Bye. When we return, president obama vowing to flex his powers. Well have more on his plan for the remainder of the year and what congress is saying this morning. At the top of the hour, congressman paul ryan with reaction to the president s state of the Union Address. Plus, we talk football, real estate and the economy with Miami Dolphins owner and businessman steven ross. Squawk box is back after a short break. [ 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 your authorized mercedesbenz dealer for 1. 99 financing during our certified preowned sales event through february 28th. [ ding ] i sense youve overpacked, your stomach. Try pepto togo. Its peptobismol that fits in your pocket. Relief can be yours, but your peanuts. Are mine. [ squirrel ] its pepto togo. The state of the nation. It is you, our citizens, who make the state of our union strong. Budget Committee Chair paul ryan with reaction to the president s remark. Building business success. Miami dolphins owner and Real Estate Developer steven ross previews the super bowl. And talks about his latest investments. Plus, gauging the fed. What will chairman ben bernanke say at his final press conference . We preview todays decision and tell you what it means for the market as the final hour of squawk box begins right now. Welcome back to squawk box here on cnbc, first in business worldwide. Im joe kernen. Lets look at the futures which were up earlier. We had a pretty good rebound yesterday. Now theyre down. Boeing would affect that to some extent, being down a few dollars. It really was amazing. Ive never seen dow chemical move up 3 points in a day. That must have been a pretty good number. Who else on the dow . I dont know whats responsible. Boeing. Yeah. Boeing down a couple of points, which would hurt it. I dont know what the other problem is. We do have the fed today. There was a lot of volatility between the fed and still trying to determine what to do with turkey. Even in turkey, the lira has moved back to where it was before. There are some questions and its very much what you said earlier, joe, how do they continue to keep these things in with the troubles theyve had with the economy . How can you double Interest Rates . Its funny that way. A lot of things, you want one effect, but then you think uhoh, heres whats going to happen when i do it. Tapering, qe, all of it. Theres always two sides to everything. Always. You switched. What are you doing . What is that . What do you normally have . I often have diet coke, but today ive done two things. I already got a diet mountain dew. I need the background story on this. Now pepsi max, zero calories. Ive seen you on the web sight of tommy johns, i think all your underwear is free. I think youre a spokesperson for underwear. I went to the supermarket myself last night. You switched. On columbus avenue. And i purchased this. Okay. Im not saying you stole it. But im just wondering why did you not do the diet coke . Youre switching. Oh, because i was convinced in davos, switzerland, i had a conversation with indra that i should be drinking this i think thats nice. On an individual thats what one by one. One by one. Thats how you do it. Thats amazing. This has extra caffeine, by the way, in here. It does . Thats why its called max. I didnt know that. We have headlines to get to. Making headlines this morning, Turkeys Central Bank hiking all of its key Interest Rates at an emergency midnight meeting. Policymakers ignoring opposition from the Prime Minister as they battle to defend the crumbling lira currency. The bank raising its overnight sending rates get this 12 . Thats up from 7. 75 . Michelle carusocabrera is going to join us again from istanbul in just about 30 minutes. Hopefully not from the back of a car as she did. It was fine. It was fine, but she did that in the 6 00 hour. A couple other stocks to watch. Boeing reported better than expected rernings a eed earning. On some weaker guidance than people had had expected. Also, dow chemical, those shares getting a very big boost. The chemical makers earnings and revenue beating the street. The company also raising its v dividend and increasing its stock buyback program. And then the tech name to watch today, yahoo . That company posting better than expected Fourth Quarter earnings after the close last night. Button line ad sales and prices slid again. And ali baba saw its Revenue Growth decelerate and yahoo s current outlook disappointed the street as well. That company and stock under a bit of pressure, already down close to 5 . President obama says hes willing to sidestep Congress Whenever and wherever necessary in an effort to narrow the gap of income inequality. Joining us, representative paul ryan, chairman of the House Budget Committee. My fantasy is that he would sidestep to do some things to juice the private sector. Thats what im thinking, wow, do it. I do it in my off hour. Thats not what the president was talking about, congressman, i dont think, in terms of i dont know. One thing i will say, though, is portman was on earlier. He found some things to like. And youre the guy that said you only control one house of congress. Youve got to compromise. Were there he had four things. He had maybe some Corporate Tax reform, portman said. The president spoke a little bit more positively about fracking and natural gas. What were the other two . Immigration. Was it immigration . Immigration was one of them, yeah. Trade. Trade. But some of the things see, i have a problem when the president said im going to do this to create jobs when i think hes got theres a step in between there. Hes got to do something for businesses so that then they hire because he cant do it, right . Did you hear enough of that . No, i didnt hear enough of that. Joe, i think it was a pretty workmans speech, meaning that no new ideas. Pretty small ball. It wasnt as adversarial as his speeches normally are with the exception of this end run around congress which is extr extrainstitutionextra extraconstitutional. He wont go very far if he does that, but thats been a friction with this president for a long time. I do think the Corporate Tax reform look, we want to do both sides. Dont forget that 80 of all businesses in america are not corporations. They file their taxes as individuals like subchapter s corporation. Their top effective rate is 44. 6 today. Weve got to get rates down. The ways and means will be advancing this legislation. We hope the president s going to be a productive partner in that. We know there are Senate Democrats who agree with us. Wed like to see progress made on that point. But on these other issues, we didnt really hear any new ideas. On the fracking part, he sort of took credit for the natural gas boom when its his administration on lands and other areas thats diagnose a lot to frustrate this Development Like keystone and all this other Climate Change agenda does nothing but makes it really difficult for us to have this Energy Renaissance that we ought to be having in north america. And some of the i dont know, there will be some regulations with the power of the pen and with the epa. Right. For someone that talks about jobs, some of these things might not be that, as you know, might not be conducive to helping create jobs, right . Thats what im saying. I wonder if thats i mean, is that in the back of his mind . Well, look, this is a highly regulatory president. And especially on energy, hes going overboard on regulations. Look at coal. I mean, gosh. 60 of the power in wisconsin comes from coal power plants. Hes got a new regulation coming out later this year that could put those out of business. You know, were very worried about these regulations. And the other point is, look. We should not assume that north america has all the shale. Its just that weve discovered it first because we have capital, we have good infrastructure, weve already done the work. Lets realize it. Lets dominate for these 20 years and not push this capital out of our country. Youre a big thinker. Youre a leader of the Republican Party now. Congressman. I asked this earlier. Youve got the president thinking about november of 2014. He was much more conciliatory. Hes got a bunch of his friends, colleagues in these blueish red states, and theyre in trouble. So he couldnt be, i dont think, nearly as incendiary as he normally would be. Thats right. But then i look at you republicans, and if a guy like me sees that ted cruz is and if i immediately sort of write it off because i think he went too far already, does either side have the right mix for this november, for this election in november at this point . What are you guys going to do to bring it back to the real world sfwh. Were going to offer a bunch of ideas, pushing reforms. Show how you create jobs, fight poverty, get growth up. So tax reform, job training reform, trade, energy policy, were going to have, again, that balances the budget and pays off the debt. Were going to be offering a constructive agenda that actually gets people back to work, that deals with upward mobility. Thats how you fight inequality. You get people to be able to access opportunity. These are the things that we have this vibrant debate in the Republican Party on. Were offering idea after idea after idea. So we are really trying to put ourselves in the position of being the alternative party. Not just the Opposition Party but the proposition party. And were going to be doing that as 2014 rolls out. So you just watch and youll see a lot of good ideas coming out of us. Congressman, will you support or seek to block increasing the minimum wage . Its bad economics, andrew. Look, what we want are more people to enter into the work force. We dont want to make it more expensive for employers to be able to hire people. So we dont think we want everybody to make more money. But more importantly, with these horrible Labor Force Participation rates, what matters most is getting people into the work force. Then getting the skills and the Economic Growth that allows them to get a better paying job. You dont believe the studies its not going to be a game changer . Thats correct, i think it will hurt the economy. Some suggest it will help. I disagree. It raises the price of labor. It makes it more expensive. And the people who get hurt with these kinds of moves are the people who need these entrylevel jobs. Its young people and people in the inner city. Were pricing these jobs out of their reach and making it harder for people to come out of not working in the labor force. Its not even the point. Its 2. 5 and 1. 25 are people who are 16 to 22, its their first jobs. Why not say wheres the Corporate Tax reform . Why not talk about something in a big answers to these things . Youre diddling arnold the edges. It doesnt solve anything. Thats the point. Youre giving my talking points. No, we have this minimum wage debate ad nauseam, and were talking about something that is only going to help the margins. You yourself talked about how right now what we have to do is get some agreement on both sides, not necessarily solving some of the big issues because both parties look at it very differently. If you have to work around the engs to get some things done, isnt that a step forward . But we dont want to embrace things that we know that will hurt people, that will set us back. We want Economic Growth. Just as joe said, i see a lot of these ideas as distractions, as ideas that are basically papering over the fact that we have a bad economy because weve been practicing bad economic policies. We are five years into the obama economic agenda, and look at the results. So lets not try and change the subject. Lets go back to those policies and fix those policies. I guess that earlier question i asked is who speaks for your party now . What i said about ted cruz, hes really smart. You know, the substances of his ideas i agree with, but he sort of is damaged goods, i think, in maybe an independents eyes because of the last you know, the history of the last year, mr. Smith goes to washington, filibuster and this and that. And now Chris Christies great, but i dont know whether you know, i dont know that all the facts in that case. Who speaks for your party now . Is it you . Joe portman was pretty eloquent earlier. Kind of boring but i like him. Hes a great guy, by the way. Joe, we are not a party of personalities. We are a party of ideas. I dont care what the guy looks like, who she is, what i care about is what are they saying . What are we doing . What are our idea ss . Thats what matters for the Republican Party. We have a lot of different personalities. Whats important about those is were offering ideas, solutions. What i care about is that we are a party of ideas, Offering Solutions that address peoples problems and help improve peoples lives, not that we have, you know, the best person whos got the best rhetoric. That stuff gets sorted out in elections. What matters is do we have a vision for america that gets the American Dream reignited, reignited upward mobility and gets this economy growing or not. Thats the question. The president proposed something hes called my ira. Its hard to get it off your tongue. It is. Whats your take on that program . Sorry, theres a little issue here. I dont know what it means. I dont know what it is. Is it a new tbill . If hes saying hes doing this without going through congress, then i have no idea what hes proposing other than some new fancy instrument from treasury that hes going to put some new label on. If hes saying hes doing this outside of congress, then it doesnt sound like its going to have any substantive difference from whats happening right now anyway. If hes suggesting hes going to do something outside of congress congressman, what was that . Someone gets thrown off a balcony . Nothing happened, did it . A big window just opened here, and then it slammed shut again. The wind just blew it open. Im surprised there arent doors slamming constantly anywhere, you know. I said earlier, were kind of in a dark place. You know, its not good. In terms of i agree. Look, joe, elections have consequences. We wanted to go a different direction. Ive heard that before. We lost. And 201 was supposed to be balance the budget, save our entitlements, fix the tax code, get defense from getting decimated and clean the regulatory state and realize this energy boom thats before us. That didnt happen. We are where we are. So lets just forget about that and move forward, and thats what were trying to do. Its possible you might run, right, in 2016 . Yeah, im keeping my options open. That was the most aggressive, im keeping my options open ive heard in a long time. I didnt even finish the sentence before he got that out. Usually people say the opposite, i cant say. This was, like, you know no, i like it. We both like it. Look, were working ive got an important job to do. Were in the majority here in the house. Weve got to make this divided government work, as uncomfortable as it can be, and then after the session im going to keep my options open and figure it out then. How old are you . I turn 44 today. Hey, happy birthday. Thanks. Oh, today . Happy birthday thanks. Youre not a capricorn aquarius. You just missed greatness. Just missed greatness. Thanks. Joes a capricorn. Happy birthday. I dont know how i do it. Thats good. Does everyone know did anyone else say that to you today . Yeah, a few people did. Eric cantor did, bill flores. Its oprahs birthday today as well. How about president kennedy . He was right around there. I dont know. Youre irish. No, youre not a democrat. Anyway, was he a democrat . Why did he cut taxes . Anyway, thank you. Good to see you. Good to see you guys. Take it easy. When we come back, Miami Dolphins owner steven ross will talk to us about the big game, real estate and the economy. Right now, though, as we head to a break, check out a live shot of times square in new york. A 13block stretch of broadway is about to become super bowl boulevard. Its a free public celebration of the big game. It kicks off at noon today. Squawk box will be there on friday with special guests so make sure you tune in. Well be right back. Honestly, im a little old fashioned. I love chalk and erasers. But change is coming. All my students have the brand new surface. It has the new windows and comes with office, has a real keyboard, so they can do real work. They can use Bing Smartsearch to find anything in the world. Or last nights assignment. And the battery lasts and lasts, so after school they can skype, play games, and my favorite. Do homework. Change is looking pretty good after all. There it is. Folks, this is a live shot of the highways in atlanta. Right there is the cloverleaf. You can see that this would normally be jam packed this time of day with traffic. I guess an inch or two of snow keeps everybody home. Looks like the walking dead. Thats walking dead music. And atlanta was ground zero in the Zombie Apocalypse in the comic books, it became the great tv show. And thats what it looks like. Theres no snow. I see a couple now. Theres a couple. That might be rick driving that car. Theres a couple trucks i see now. Rick and daryl. People down south are not experienced with this. In alabama, a school kept kids overnight. Maybe well get the reruns someday. You would think its an nbc property, but its not. Its coming back, february 9th for the second half of the season. And then im going to be on the talking dead with chris hardwick. On the 16th . February 16th. Were going to all have to stay up late to watch that. I guess its on at 10 00, yeah. Oh, were off the next day. Yeah, youre off the next day. So we can definitely stay up late and watch. Well, today super bowl boulevard officially kicks off in new york city. A Million People are expected to visit the attraction. Joining us right now for more on this weekends big game is steven ross, the owner of the Miami Dolphins. Eels also the chairman and founder of the related companies. And steve, its great to have you here. Good to be back. The super bowl is here. And as weve been showing, its a little cold and snowy out. Thats putting pressure on ticket prices. I think its a lot easier to get a ticket this time around. What do you think about the super bowl being up north . I think it was a great innied to start with. It sounds terrific. Im not sure that well see it again. You know, i think but people are talking more about the weather than they are the game. I think thats a good indication. Of whats happening really in new york. You think its going to be one of those games that people love to watch at home on television, though, to see the players who are dealing with some of this weather conditions that were talking about. I think theres a little bit of truth to that, you know. So i know you said in the notes that you prefer to see it down in miami. No question. Its your home team. I live in new york, though, so i thought it was great. It would be great for new york and everything. But i think, you know, when you see what the weathers like, you know, and youre not seeing a lot of interest from new yorkers. I know i bought a lot of extra tickets to take care of my friends, and its hard to get rid of tickets. They dont want to go. Its seattle versus denver. Theyre the two number one seeded games. It should be a great game. Its going to be a great game. Was it a mistake, then . Everything is a good idea, but that doesnt mean you do it again. I think youve got to try things out. We had so much success with that hockey game in detroit. It was ten degrees and snowing. It was a huge hit. Im from detroit. But its detroit. We just did it at Yankee Stadium with the devils. Theyre doing another one there. Yeah, they are. Candy ass. Just to sit outside for a little while. You talk in your book here, you want it down orange bowl. I think people want to go down there to party. Just cant stand that its in new jersey. Thats not true at all. Whats good for this region is certainly good from a business standpoint. I think it will be great. Theres no question about it. Youve got to try out new things, you know . You remember some of the great games, you know, that we have sort of in green bay that we think nostalgically about with the snow coming. You do love those. Not wanting to do them again. The tundra. Sitting there and all that, sure. Steve, lets talk a little bit about the dolphins. There was a story out last night. You told tony dungy that you didnt think either Richie Incognito or Jonathan Martin would be returning to the dolphins. Is that true . Right now, Jonathan Martin is on our roster. And Richie Incognito is a free agent. But i think, you know, the report is due out after the super bowl. And i think for me to have any comment before the investigation, the reports out, you know, would be a little premature. I mean, theres a lot of thoughts i have and things that we will do in the future, you know, in reaction to that. But i dont think its really right that i really comment before the reports out. But things that you would do in reaction to the sense of bullying tends to change how it operates. Yes. No the that we did anything wrong, but i think you overall look at it, you saw how americans reacted to it. You know, as it became a real story that lasted for, what, several weeks or a month, at least. So i think something has to be there has to be a response to that. And i think, you know, im totally im looking at it. I know how im going to react, but i think i need to wait till the reports out. Did woody laugh at you after that last game . What happened with that . It wasnt a good feeling, lets put it this way. What can i tell you . You were thinking you were going to sure. I mean, we needed to win one of the last two games to make the playoffs, and we didnt make it. You beat the bengals this year, too, didnt you . We beat four or five of the teams in the playoffs, yeah. We made a lot of progress this year and especially with the distractions that were occurring with all the, you know, the investigation. I think, you know, we showed a lot of progress. Were looking forward to 14, lets put it that way. Lets talk a little bit about real estate. You are taking over the time warner building. This is a huge doubling down on new york real estate. Why is this an attractive property . Why are you doing this . Well, we built the time warner building, and they had owned their space. Its never been on the market before. And certainly its become one of the preeminent buildings in new york. As ive been here before and talking about hudson yards, i mean, i think thats really where its going to be the new kind of heart of new york which ive made those bold statements. And i think by having time warner moving there, and what we offer and where the world and new york is going in terms of what Companies Want in the future, you know, with new space and how they want to densify the work force in their space, it allowed to us make sure that hudson yards would really take hold. Were going to have this year, well have 8. 5 million square feet under construction. And weve said that this would really change the gravity of where new york is. On a per square foot basis, cost on hudson yards versus what Time Warner Center will cost versus what stuff down near the new Freedom Tower will cost, how does it compare . I mean, certainly when youre buying existing buildings, today what the prices are, where the cap rates are, you know, it probably is a little more expensive than building new. Right. So with regard to the location of Time Warner Center, i mean, its such a landmark location that right on central park there, i think and whats being a mixeduse building where i think people really want to be, youll get premium rents. At the same time, i think the way corporations today want to do business and how they want to have more or less space per employee and using technology and a lot of the Old Buildings are so obsolete, you know, like over 60 of the buildings in new york are over 60 years old, you know. Theres a real need. And i think time warner saw the fact that this is the area where people want to be, where the young people want to be in new york today. Will you resell naming rights on the old building . I dont know selling naming rights. When time warner bought their space, we named the building after them. Right. And how do you really deal with that . We still call the old pan am building, you know, thats now metlife, its still the pan am building to most of us who have lived in new york. Its an interesting question, how we handle that. Last years super bowl leading into it, i was not this is i was not that excited. I dont know why. Baltimore and san francisco. This is huge. When you think about the tv. Youve got peyton, number one, who came back after the neck surgery. Youve got russell wilson, who is his size. Then youve got sherman, thats like a miley he knew what he was doing, too. And i love this guy now. Stanford, from compton, california. This is a huge theres so many things going on with this game. This is going to be great. Its great. And everybodys talking about the weather. But people on tv are glad that its going to be that it could be cold and snowing. Its great for the networks. Football, its important to experience it and roger talks about we want to keep bringing people into the said ytadiums, its a tv thing now. Dont you think it will be good ratings with these two teams . The ratings will be fantastic. Its going to be a great game. How could it i dont know how either team could blow the other one out. I dont think thats possible this time. You never know in football. Thats the great game about it. You dont know whats going to happen. Peyton versus russell wilson. Awesome. Its exciting. Miami. Your team are watching from the couch. Hey. Everybodys envious of that. Youre not sitting outside, are you . Yes. You are . Yes. But hes in a place where you can go inside once in a while. Once in a while. Todays fed decision and then after that, senator Heidi Heitkamp is going to join us with reaction to the state of the union. Were back in a moment. Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Welcome back to squawk box. Lets take a look at some stocks to watch in todays trading. Sothebys declaring a special dividend of 4. 34 per share. Dan loeb is a major shareholder. Also at a tchlt t under a bit o pressure. Reported slower Wireless Subscriber growth than analysts were anticipating. And also take a look at shares of marathon petroleum, on the rise. The Company ReportedFourth Quarter earnings of 2. 10 per share, thats well above estimates of 1. 15 per share. Revenue also above estimates although marathons numbers were below yearago levels. And finally, is cirrus logic earned 12 cents above estimates. The chipmaker issued a weaker than expected current forecast assist the sales mix apparently now includes lower priced products than recently. Have i been overdoing it today . Its entitled bias. And it says joe, im an avid follower of your show. I am very disappointed that you continually attack the Republican Party. The Republican Party has brought many good ideas to the table. If you recall during the last election, much of what paul ryan said has come to fruition. Your and andrews misguided support is exactly why our country is no longer number one. Limousine liberal. A communist. Its entitled bias. And if i was biased earlier, im sorry. Was i too hard on ryan . So hard. So hard. Hard hitting. The Federal Reserve ted cruz. Some of those people really mad. Blaming ted cruz. Im just saying that he i dont know, i dont think a lot of people now just write him off because of some of the stuff thats happened. And thats bad. Its a shame because he stands for the constitution. He stands for things that i think are pretty worthwhile. Some people look at what he did, and he think it was for personal gain and not for the party. Exactly. I got mail from people. Republicans hate me. The reserve Federal Reserve expected to continue to taper its bondbuying program, but will it taper the taper . Steve liesman joins us with more. Have you heard that . Taper of the taper . I have not. Do you think theyll taper the taper . I dont, actually. Today. Ten today . I think theyll do today. An additional ten. Its like the post office. Neither a weak durable goods report nor a weak jobs report will keep the fed from completing its appointed rounds of tapering. Let me show you what the smarter guys than me are saying here. Lou crandall says it would have taken much more bad news than we have gotten over the six weeks to persuade the fed to rip up its you know, i dont know how to say that in a way that is not false. Because those guys probably didnt know you were the one that was writing about the taper. So youre acting like theyre right. Its false moderate city. Youre clever in suggesting there may be false moderate city there. I dont disagree. I know you. I know you. But i think lou crandall is legitimately one of the smarter guys out there. Drew maddis, weak data could still prompt a pause later this year, but it would need to be sustained and of suggest magnitude to prompt disinflation fears. Not tapering would be a huge overreaction to what is largely volatility. So and you saw our survey results yesterday. 87 expecting a taper. 72 . This is whats baked in, and i think that the fed, if it feels concerned, would probably lean a little bit more on the guidance. So what happens to the emerging markets if the fed does go ahead with the additional 10 billion . Do you expect to see more volatility and pressure on those emerging markets as a result . I do. I think you may have reactions like you saw in turkey which michelle reported last night, which was the rising of the raising Interest Rates by a huge 5. 7 Percentage Points. That brought the lira down. But then it snapped back. The other interesting thing over the time ive been an economics reporter which is coming up on 20 years now, the idea of putting in Place Capital controls is now cool with the international community. Remember when that was, like, the worst thing you could possibly do . And now the imf and some of the other smarter guys than me in the world today say its okay. And you could expect to see maybe some of that out there. Becky. But the imf has come out today and said they dont think the fed is responsible, the Federal Reserve for whats happening in the emerging markets, they say those are individual markets that are having their own issues. You just said you wouldnt be surprised to see it exacerbate the situation in those emerging markets. Its a lot harder to decouple those two events if you do see the fed go ahead with an additional tapering today. Theyre going to have to make the changes, becky, and react to whats going on in the world. They benefited from the qe, and now the qe is being taken away. And the argument is that if there are effects, they should have taken the time that theyve had to take care of it. Let me just tell you a procedural thing that happens. Over the course of the twoday meeting, they will formally vote in the chair of the Federal Reserve board to be chair of the federal open market committee. And thats what happens. And that will take place on saturday. And this would be bernankes last meeting today. And its interesting to think about in 2006 when he came in, we were debating how brave the brave new world was that we were about to go into. And now its how weak, you know, underlying Economic Growth is. So its a very, very different entry than it is exit eight years later. Steve, thank you very much. My pleasure. Were going to continue this conversation in just a moment and ask whether turkeys drastic action actually can help quell some of the fears in the emerging markets. Well check in with Michelle Carusocabrera in isistanbul. Equity futures, down 86 points below fair value. S p futures are down by 8. Again, this is emblematic of the volatility weve seen over the last week or week and a half. All over the map, a lot of people waiting to see what the fed says and watching whats happening in turkey. Well have more on that in just a moment. Ok, heres the way the system works. Lets say you pay your guy around 2 percent to manage your money. Thats not much, you think except its 2 percent every year. Does that make a difference . Search cost of Financial Advisors ouch over time it really adds up. Then go to e trade and find out how much our advice costs. Spoiler alert. Its low. Really . Yes, really. E trade offers Investment Advice and guidance from dedicated professional financial consultants. Its guidance on your terms not ours thats how our system works. E trade. Less for us, more for you. Go [ male announcer ] its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2014 mclass. See your authorized dealer for exceptional offers through mercedesbenz Financial Services. Something bad happening. I can tell from that. The turkish lira is giving back its gains. The currency rallied after rate hikes after an emergency meeting. Michelle, hopefully you heard that music and your report will be sufficiently ominous about whats happening over there in istanbul. Reporter yeah, weve certainly seen the turkish lira give up all the gains that happened late last night here when the central bank here did a massive raise in Interest Rates across the board, anywhere from 3 to 5 Percentage Points depending on which rate youre talking about. Because here they have multiple rates. Bottom line when we talk to businesspeople here, they are less concerned about the actual level. Theyre far more concerned that the volatility go away and that we get more stability or that they get more stability in the currency. I spoke with aaron killic, he runs a textile business. He imports his Raw Materials from places in the middle east and china and then he exports the textiles which will go into furniture factories and places like russia. His latest new best friend is an app that helps him monitor the currency. Every day we check the currencies. Its going to update. Two hours, it was 2. 70, now 2. 21. Reporter how often are you checking the currency . For the last month, every hour. Reporter every hour. Wow that big an impact . Yeah, yeah. Reporter now, theres another thought that perhaps theres concerns about what the Federal Reserve is going to do today as well, which is one reason why we may have seen the lira flatten out. The South African rand moved very sharply about a half an hour ago as well. When that central bank as well hiked Interest Rates unexpectedly a half a percentage point. It looks like a baby move compared to what turkey did last night. But it was unexpected. They were expected to leave Interest Rates completely unchanged. But it looks like theyre starting to feel pressure from places like turkey from places like india and in the face of potential tapering in the United States. Michelle, we should add that the rand immediately rallied on that, but its back down again. Just like the turkish lira. It seems like some of those moves were temporary moves to try and do something with the currency. I think investors still have a lot of questions. Reporter yeah, thats for sure. And remember, its a tradeoff. You raise Interest Rates, that slows down the economy. At the same time, youre raiding one set of problems for a different set of problems. But ultimately, theyre trying to protect capital. And i know we debate constantly whether this is bernankes fault or whatever. Simply, if youre an investor in the world and you think the u. S. Economy is Getting Better or if you think u. S. Interest rates are going to rise, other economies in the world that are less competitive on a number of fronts, whether its corporate governance, rule of law, et cetera, to be competitive, they have to raise Interest Rates in order to attract investment. To keep the money in the country. Were probably going to see more of this as time goes on. Have you ever seen that done before . Michelle is very adept. In any conditions. Can you imagine if you or i tried to do that . Michelle is a pro, thankfully. And michelle, thank you. Well check in with you again. Thats Michelle Carusocabrera who is in istanbul. Up next on squawk box, senator Heidi Heitkamp is on the president s vow to bypass congress to get america growing. Well have that when we come right back. You think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. If we want to be ready for a longer retirement. Fifteen minutes could save you fifteen percent or more on car insurance. Everybody knows that parker. Well, did you know auctioneers make bad Grocery Store clerks . Thatll be 23. 50. Now. 75, 23. 75, hold em. Hey now do i hear 23. 75 . 24 hey 24 dollar, 24 and a quarter, quarter, now half, 24 and a half and. 75 25 now a quarter, hey 26 and a quarter, do you wanna pay now, you wanna do it, 25 and a quarter sold to the man in the khaki jacket geico. Fifteen minutes could save you. Well, you know. Welcome back to squawk box. Youre looking at live pictures. This is atlanta right now. And its been very cold there. And youre seeing people walking. People point out, its not the snow, its the ice that turns to black ice. Theres no way to salt. Theres no machinery or equipment able to deal with some of these things. Its a shot on the highway of people everybodys going one way. No one and weve heard Horror Stories about kids that were left overnight on a bus. The Georgia National guard is supposedly now rescuing children who have been stuck on a school bus since yesterday afternoon. The governor has declared a state of emergency and has deployed the National Guard in humvees to rescue stranded motorists. This is a very serious situation. There are major cities have 900 trucks that do things like that. Cities like that, they have, like, four trucks. They have nothing. They dont know about salting. They dont know about were going to move on for now, but well come back to this as the news warrants. Also, house budget chairman paul ryan, of course, he joined us earlier this hour with his take on the president s state of the union. I think it was a pretty workmans speech, meaning that no new ideas, pretty small ball. It wasnt as adversarial as his speeches normally are, with the exception of this end run around congress, which is extraconstitutional, meaning he wants to go around the constitution powers of the legislative branch, lawmaking. He wont very far if he does that, but thats been a friction weve had with this president for a long time. Joining us now is senator heidi hide cameitkamp, a member banking committee. I assume you disagree with everything paul ryan just said. We think he might have meant pedestrian in that case. I dont disagree with it at all. I dont think the president has if the president doesnt have constitutional power to do what hes proposing, he ought not to do it. I think everybody should agree with that. Were a nation of laws, and he should live by the laws. But i think that what gets missed in this is that obviously the president is stalki intalki things that the American People care about. The people in the room obviously are part of that solution, part of the discussion, but i think this speech was to tell middleclass america and folks who are struggling, look, we hear you. We understand your concerns. And were looking at solutions to these problems. Did you think it was small ball . He did not talk about any real big ideas. I think that is fair to say. Well, i think thats fair to say, but i think he also talked about a whole lot of stuff that is on the minds of americans, which is why am i working harder and harder and not getting ahead . Why cant i find a job that actually pays me a wage that i can live with and i can raise my family . If youre a student, im so hed by student debt, i cant save for the future. What are my options . And so when you look at the concerns of reallife americans, i think that the speech really began to address a lot of those concerns and for the audience at home, i think they heard things that apply to them directly. And thats the other purpose of the state of union speech. The president s rhetoric seemed to be tempered a bit on the issue of income inequality. He talked about it but talked about it in the context of income inequality opportunity as opposed to not just trying to rise up from the bottom, but historically, weve heard some conversation about trying to chop people off at the top. Were you surprised by that . I actually wasnt surprised by it because i think this is a president who understands some fundamental, despite everybodys discussion, understands fundamental economics, and he knows that in order for people to reach the middle class, we have to give them the tools. Hence the discussion about work force development. We have to actually give them a way that offers opportunity for them to continue to raise their standard of living. Hence the discussion about minimum wage increases. And so my i. R. A. , discussion about saving for the future. I think these are modest government proposals, but we know the best way to get the middle class growing is to get our economy moving and to create jobs that actually pay a good wage for american workers. Okay. Senator, were going to leave the conversation there. Its not going to help, but the markets are falling ahead of the open this morning. We will talk to you soon, senator. Thank you again. Thank you. As andrew mentioned, the dow futures are under quite a bit of pressure at this point. Most of the morning. Youre going to see right now dow futures down by about 120 points below fair value. In just a moment, well be speaking with jim cramer on what happened in turkey with the surprise rate hike. With boeing, the earnings and why the markets are so volatile at this point. Why were moving deeper into the red. Well be right back. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. Were open to it. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Lets get down to the New York Stock Exchange see if jim can tell us. Started out up, jim, and, you know, turkey, i dont know whether anything that deteriorated in markets that we may not have, you know, right at our fingertips, but what do you attribute it to today . First, its incredible how wrong the futures guy. As soon as the turk icial news came out there was a sense of relief there would be no taper. This was completely wrong. Turkey we saw the hyperinflation development in the early 90s, people didnt think it would lead to hyperinflation, it absolutely did, when you see this kind of increase what youre going to see is a collapse in their economy and at the same time theyll have to start printing money wildly, thats what always happens in these situations. We had 97 contagion in Southeast Asia and you had an 865 s p go down quickly and a year later the s p was back up to 1098. 1998 we had the russian crisis and initially you had a very bad hit and then you were up a year later. I expect the same thing to happen again. I think we could be 2 to 6 downside based on emerging markets. Thats the way it is. If we had strong earnings today, i think you would have a little bit more prop, you have to ride it through. Everyone makes the case that turkey were going to see if this works, the strategy works in turkey. It doesnt work. It does not work anywhere else. It never worked. Everybody who thinks it does work are the people that will lose a lot of money, the people that think i want to pick up the 12 theyre going to hit with hyperinflation. Well deal with this issue for another six months and during that period and initially s p goes down and then it goes up, we try to say, where does it stop. The ifm steps in thats what they did in south korea it did work but initially you have to go through the shock. Remember, the s p in both the cases when you look at the 97, 98 financial crisis the s p did marvelously but first a lot of people had to panic because they first thought nothing would happen. Those were completely wrong. Theres a great big goldman bond deal with the ruble in 1998 that precipitated a draw mat eck decline but we came back. You go down and then you come back but when youre going down its a great source of panic and worry and people think its over and its not. Its interesting that the the december 31st, the close there, all everything that were doing is, like, were looking up at that, like, looking up at that ceiling, right . All this stuff thats going on. I wonder, i dont know, at some point 2014 when we do get through to some new levels above that december 31st close id feel a little bit better, i think, because of all this action. We have to go with the handwringing and a lot of people come on and say it will happen here and a lot of people can say its the Federal Reserves fault. This is the arc of the story. Its a drama and people come on directly related to bernanke and well hear its yellens fault. This is the news flow. I wish it werent. I wish i werent so old i wish i hadnt seen it happen again over and over. But it happens and everyone has to come on and say turkey is really terrible and you can sell boeing. Im glad youve seen it before to calm people. A year later and youre up. But i know its way too long, right . 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Stock of the day boeing shares under pressure at this point, Company Reported much better than expected earnings and revenue, the outlook was a little bit below but people say it was a conservative outlook last year but its turned into a fivepoint rout and its one of the first things that caused the dow to start trading below zero. But i dont think its down the turkish stuff this is emerging markets. Theres a lot of anxious. Jims right. Its volatility. When is the ten year going to 3. 5 , 4 . Then you have more arrows. The fomc at 2 00 will be the call because all of this will trade on the short term based on what they say. Okay. Guys. If we have 15 seconds dont give it up. No, no, no. Who do you like on sunday . Quickly . Who do you like on sunday . Who do you like . I like peyton but i want seattle to win. Now were late. Be sure to join us tomorrow, squawk on the street begins now. Good wednesday morning welcome to squawk on the street, im Carl Quintanilla with jame cramer on the New York Stock Exchange. Fabers on assignment. A volatile morning ahead of us as the rate hike in turkey has soothed but rattled markets and that will drive the day along with the fed statement. The tenyear yield has weakened from yesterday down to 272 and europe is getting punished. A lot of indices are down 3 or 4 . The roadmap begins with the markets setting