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. 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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 t