Good morning. Stocks continue on a winning streak. The markets still call fear gauge now falling to its lowest level in more than three years. Asian equities coming off the highs on property stocks. Meanwhile, a slow start in europe this morning. In washington, paul ryan will be unveiling his partys Budget Proposal today. Its tuesday, march 12th been 2013. Squawk box starts right now. Good morning, everybody. Im becky quick along with Andrew Ross Sorkin and scott wapner in for joe today. The dow and the s p closing higher yesterday, up for the seventh session in a row. This is the blue chip indexs first winning streak like this in a year. Its worth noting the index is not into the First Quarter with a double digit percentage gains since 1998. U. S. Equity futures at this hour, at this point youre looking at a very slight decline, down by about 8 points yesterday although its worth noting we saw everything in the red in this hour and all those indexes turned around and did close the day higher. Major asian markets, you could see slate gains in japan with the nikkei. Kind of waiting for something to happen this morning. Paul ryans budget cuts the deficit by nearly 5 trillion through changes of entitlements and repeal of obama care. It balances the budget in tense years without raises taxes. It was says under that proposal, theyll spend 41 billion. Under our proposal, it will increase by 3. 4 because the u. S. Economy will grow faster than spending, the budget will balance by 2023. And debt held by the public will drop to over half the size of the economy. It does that by repealing obama care and that is going to have a very difficult time, especially with the administration and also in the senate. Were going to talk more about budget debate in a few minutes. Then at 8 00 eastern time, well be joined by tom price. He is one of a handful of republicans who prose part of the van pollen. And then 8 120 eastern time. First, snow, scott wapner is here with some of the mornings other headlines. Nice to say you. At t is going to begin consumer and corporate presales of the blackberrys e10 today. Meantime, samsung is set to release its latest smartphone. Yum brands reporting an unexpected 2 rise in profits. Take a look at shares of yum. There you see the spike about 5. 3 there in after hours trade postponing. Meantime, costco is reporting better shan expected earnings on sales and membership fees and shares are down slyly 0. . And weve got a story about another judge, i want to hear what this judge thinks about this. If you live in new york city this morning, you can still buy a large soda. A judge struck down Michael Bloombergs than. As for the impact on business, here is the mayors response to a reporters question. I dont think it will hurt your bottom line, but even if it did, were talking about lives versus profit. And a dominimus change in profit. Nobody can make the case that serving 16 ounce cups versus 32 ounce cups wouldnt have to problem you that. Wee we do what e to. Cnbcs Jackie Deangelis is spending the morning in reactions, businesses, to promise what hell designed now. Mern americans now drink an average of 77 billion sodas per year. The average amount of water people drink to about 58 gallons a year now. Bottled water is leading that growth with consumption rooizing to 121 gallons a year. And remember we had the guy on yesterday who talked about the mechanics cab battler. 43 gallons . 43 gallons a year on average. Which means somebody is drinking about 80 2k3w58ones. That tells you something that we drink that much water. Okay. Drinking right anyhow. Water, by the way. What do we think about the overturn of the soda drink . I think it makes sense. I think the judge was right that its overreaching and its difficult to try and enforce the idea that youre going to go out the judge was saying it would be difficult to forgs on a niert dive offer. Maybe you did discuss that. How else are you going to tackle an enormous problem without taking some bold and overreaching steps . I think its fine to do that in a School System where youre dealing with children. I think its fine to ban the sales of soda in school altogether. Will how do you feel about subsidy sizing corn, for example . Id be fine with not subsidizing corn. I thought High Fructose Corn Syrup wasnt bad for you. The high fructose corn organization came after me the last time i raised the question. But, you see, rather than ban it, takes away 2 theres many larger you can do to make them popular. The other thing you can do is make people weigh in on their own health care more, so theyre saying more control of that. Everyone will have a hire deductible sooner or later. Even if it does hurt the bottom line, so what, right . At some point, you have to take some kind of measure, in his opinion. And he really, i thought, took it and people are dying. Hes calling this an epidemic. But is it soda or other things . Thats the problem. I think its the amount you work out, too. Joes point through this, if you want to lose weig kids arent actively involved outside because parents are afraid to let their kids play outside as much. I think thats part of the problem. Im surprised that he suggested this isnt causing the businesses. Did you thinkin doughnut had made dimes for customers to help them know was going on. Theres have been lots of thing going into this and may be back into effect lairlt. In problposition that says under blah, blah, blah, when i went in for that, there was a sign thats random watching. There was a sign that said, under prop blah, blah, blah, coffee would be one of the things that we need to tell you is bad for the you and that can cause all kinds of birth defects and Everything Else that goes along with it. You can see this happening on both the coasts. Well see writ all plays out. By the way, the soda has has everywhere. So this is going to buy this done. Futures have been indicated slightly lower. Wapner is having a hard time adjusting to these early hours. Didnt they have a soda called jolt . They did. But you have to be careful. You would run around the desk and then crawl under it and fall asleep. We talked about caffeinated gum last week. My children and i played super mario brothers a little later than i wanted to. My children just say, daddy, its still light outside. And taunt you as you head to bed. Futures are lower this morning. The dow hasnt ended the first this is a dow transport, the russell 2,000. They all closed at historic highs once again. The s p 500 is at a fiveyear high and the nasdaq closed at another 12year high. And youll see right now, at least, that oil is down by about 26 cents to 91. 80. The tenyear note this morning is looking like its yielding just above 2 at 2708 . The dollar thrng po, and, again, all of the stock has been talking about whats happening with the yen. There have been some stories out there suggesting is that the new bank of japan governor, when he comes in, would actually do things to try and really ease the currency before he waits for the april meeting. Well see what happens. The yen is up against the dollar. Gold prices up about 3. 60, 1,581. 60 an ounce. Time for the Global Markets report. Kelly evans is standing by in london with that. Kelly, good afternoon to you. Hi, scott. Its not quite the afternoon here, especially with the time change. Because of that, you only get one hour for Worldwide Exchange in the next three weeks. We have to sort this out. Here is whats happening across europe. A broadly weaker session in asia. The ftse is trying to stay in the green. There was weak industrial data that has hit the market and hit the pound. The ftse mib is pretty much worrying about new government being formed and rush, as well. I want to show you the reaction of bank shares, and tessa is expected to show a Fourth Quarter loss. Bankosanpalo, lasted night came out and report seven times bigger loss than 2012 was expected. Shares initially down 5 on that news. Then people started to go well, maybe theyre throwing all the bad stuff in here and maybe it will get better from there. The euro dollar is weaker down about 0. 3 there. Trading volume has been heavier in the Australian Dollar and the euro. Finally, sterling. I mentioned this, now down 0. 5 . Ike industrial figures for january were down. You can see the reaction, the 1. 4841. I dont know about you guys, i was here in britain, what was it, seven or eight years ago when it was 2 to the pound. So its extraordinary to see uk to some degree on sale. Well see if it means any interest for american visitors or American Companies the. That was such a deal. Its only 1. 50. Play the trip now. Believe me, it still hurts, believe me. She paid in dollars. She has to were about these issues. If you want to take a summer break, much better deal. Lets talk about a number of different stories in washington today. The budgets worth watching this morning. The Senate Banking hearing will be holding a nomination on richard cord ray. And marriage jo whit will he will be joining us. This is effectively a synopsis of the proposal. When becky keyed it up earlier in the broadcast, she said it is dead on arrival. Do you agree . Yes. In terms of the literal elements of the plan. When you talk about assuming the repeal of obama care, no, thats not going to happen. When you talk about premium support, a proposal that would affect people under 55 Going Forward for medicare, thats the voucher plan obama ran against in 2012. Not going to happen. But he work r i think the process has vowel because paul ryan considered a contill history he can do of the weengend. There are things we can do that dont offend the principals or democrats or republicans. So the process is what im looking for, not the details of this budget. What are you lets talk about some of these hearings today. Mary jo has a storied legacy in terms of what shes done as a prosecutor, but has spent the past decade if not longer representing the big banks. What do you expect to see . Oh, i expect her to get hazed a little bit by senators, maybe of both parties. But oath of these nominees will be ultimately confirmed. Mary jo white, there are surface conflict issues related by her legal work, but i think she has a strong reputation for integri integrity, for having been an effective prosecutor, and she is in my view likely to clear the banking committee. One of the things i think about, for the next two years, shes going to have to effectively recuse herself from anything rmted to name your bank, credit suisse, ubs, the list goes on. How do you separate if youre the head of the s. E. C. And yet you cant touch on some of the biggest institution thats youre supposed to regulate . Well, thats a challenge and theyll have to figure out what ethics officers in the government and working with her colleagues. Shes not going to be the only one at the agency. I think she can be on the job and provide direction and leadership without, you know, violating conflict laws. John, whether you hear about all the hoopla over the sugar ban in new york city, how does washington view this . You know, i think thats the kind of thing that nobody wants to get to close to at this moment. I mean, you do have a push by the administration through Michelle Obama to try to work on issues related to health and the consumption pattern thats people have and the exercise patterns that people have. But i think this theres such a visceral reaction to a specific prescription like this that bloomberg has pursued that we now see the court reacting against that. I dont think youre going to see democrats venturing into that territory and certainly you wont see republicans. So even liberal democrats in washington look at this and say, oh, my gosh, were not going to venture towards this because they view it as a potential overreach . Yeah. I think theyre sympathetic to it. I think theyre kind of happy that bloomberg did it, but i would not expect them to try to minute im that of nanny stayed, trps to use government government to pin their shift to other peoples. It will be in state and local governments if it does if it makes headway at all. John, thank you. You bet. All right. Andrew, thank you. Coming up, a live report from the big apple where consumers are still able to order that large coffee with extra sugar and milk this morning. But first, check out these live pictures from the vatican. A special mass is being hell at st. Peters basilica. They will then head to the vatican to elect a new pope. People will be watching for a while smoke to signal a new pontiff has been chosen. Welcome back to squawk box this morning. S p off about 1. 5, nasdaq off by 6 points and the dow jones off about 16 points right now. The u. S. Government has sold another chunk of its take in general motors. It sold 490 million of gm common stock last month. The price per share will be revealed later. The government has recovered about 29. 8 billion of its 49. 5 billion bailout of the automaker. Now, a judge striking down new york mayor Michael Bloombergs ban on large sugary drinks. Jackiedeanglis joins us with more on this. What is the reaction this morning sfp. Commuters are really happy that they are going to be able to get their large sugary drinks this morning, to put sugar in their coffee, as well, as you head out to work. The judge striking down the citys proposed ban of these things drink calling it arbitrary and ka prieshus. You would have had two Stores Affected differently. One is a store that wouldnt have been able to and the other is a 7eleven that is able to. Theres two aspects to this. You have the Large National chains that might have been able to absorb the costs. But you have a lot of mom and pop stores saying not only the procedure costs of buying new glassware and cups to serve the drinks would be difficult, but they are concerned because they would lose business right next door to the 7eleven. The National Restaurant association came out and said this is a victory for Restaurant Operators and industry suppliers serving new york city who would have experienced financial hardships had been ban been enacted. He also began a media blitz speaking on letterman last night. Turns out the mayor has his own guilty pleasure. As long as you dont ban cheezits. Cheezits are okay. That is my addiction. So sugary drinks cause obesity, but cheezits you dont have to worry. You were talking a couple weeks ago about how you couldnt get the soda. There was a pizza play on the upper eastside, i wont name them, but they decided they wouldnt they had gotten on board with the pan. We had about i think eight children in our house. And so there was a pizza party going on and so we needed soda. I went down to the bodega two blocks away and got the soda myself. Coming up, why the uk is probing hps acquisition of autonomy, plus details on celebrity financials week in l. A. 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And no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. No they dont. Hey son. Have fun tonight. Back against the wall aint nothin to me aint nothin to me [ crowd murmurs ] hey [ howls ] morning. Welcome back to squawk box here on cnbc. Im Andrew Ross Sorkin along with becky quick and scott wapner, sitting in for the vacationing joe kernen this morning. Scott. Where is he by the way, do you know . Hes skiing in an undisclosed location in the great state of colorado. I think thats as far as we can take it. He sent some pictures yesterday. Did he . I havent seen them. Theyre out there, the whole family is out there on their snowmobiles. Lets check on the market this morning. Weve been on this run, as you know, the dow has been up for seven straight days. If we were to open right now, it looks like its going to away negative open. The s p, dow and nasdaq all with a negative implied open or at least a lower implied open. There is a look at the european markets. Theyre mixed. Mostly muted action there. The ftse over in london is getting a slight gain. Take a look at asia, as well. See how the asian markets did. They were down across the board. The shanghai was down 1 , hang seng and over in japan, not quite down as much. Look at the Commodity Index right now or the read there. Crude oil is lower today. Both wti and brent or bob gasoline weve seen a bit of a break on gas prices. Theres the tenyear yield right now, still over 2 . 2. 05 is where that stands. Take a look at the dollar also this morning. Dollar yen remains a considerable story this morning. Yen at a the 3 1 2 low versus the dollar. Look at gold get ago slight gain this morning, 1581. Joining us right now is kent c