Transcripts For CNBC Squawk Box 20150112 : vimarsana.com

CNBC Squawk Box January 12, 2015

Stronger dollar and slowing Economic Growth overseas. Foreign ministers are said to meet in germany for a fourway summit on russia and peace talks aimed at ending military talks Angela Merkel is warning a lack of progress from russia. And the ruble dropping today. Well show you now. And millions of french citizens taking part in an historic march this weekend to pay tribute to victims of islamist militant attacks. A line of World Leaders lead the way. Arms link. Among them israeli Prime Minister and the palestinian president all together. No high ranking u. S. Officials took part. That lead to a lot of criticism. Well have a live report from paris. You saw here covered on the daily news this morning. Sunday more than 40 leaders watched none of the men showed up. The news said you let the world down. So there it is. Some people say eric holder, by the way, was in paris and didnt go to this. I dont know what that says about i dont know. I saw some stuff on some of the websites that said obama watches football or something. But that was one of the websites that has something to say like that. I dont know to think about this. Im not ready. Its monday. What i i get tired of criticismkritcriticizeing. Look aing at frances population. The Jewish Population there is only 1 . There have been a lot of jewish people leaving because of antisemitic concerns even before this happened. I think that will be something to watch closely. When i saw netanyahu was there i thought its pretty significant. And then to see we didnt show up. Yeah. Are you surprised at anything . Im not surprised. But when you saw all of those guys everybody together and then we were not there. Were going to be talking about it later. We have that for us. In Corporate News rovp is buying a majority steak in molecular annalist Firm Foundation medicine. They hope the deal will boost the personalized cancer treatments. We will talk to the ceo first on cnbc at 7 30 eastern. Shire is buying nps pharmaceutical for 46 a share in cash. Thats about 5. 2 billion. This is shires biggest acquisition yet. And the deal gives shire access to two promising drugs and improves its rare disease business and got some money from a break up fee. Yes. That it is using to buy this. Like a little doesnt get a lower tax rate. Right. And the Jpmorgan Health care conference is underway in california. Normally it means a lot of market moving data among the highlights so far pharmaceutical said the experimental helped improve blood clotting preventing the bleeding of course, that characterizes the disease. This was a small early stage study. A late stage trial of Bristol Meyers met the main goal showing it helped lung Cancer Patients live longer than the comparative drug. I actually missed out on some of the Golden Globes to watch steve bril on 60 minutes with what is her name . I didnt get a lot out of it. It was a criticism of obamacare. I thought it was going to be a look at it said it may become unaffordable. I expected it to look at way premiums will need to increase as we cover more and more but it was more attacks it was more republicans call it a take over. It was a way for taxpayers to pay all the money to the private sector is gouging out of health care. It was it almost looked like it was a taxpayer advocacy piece but it wasnt. It was about the private sector and their dirty profit incentives and how one thing it did say weve had others saying its been responsible for the drop in slow down in the increase of Health Care Costs and he said not i think he used 99 of Cost Containment efforts went by the wayside of this in each major private sector group that had a dog in the race. They all got. The Drug Companies nope. Price controls they did well. Hospitals got more patients. Insurance Companies Got patients. The entire private sector was bingeing feasting on the deal and taxpayers will be stuck with it. Nothing about its a massive redistribution and, you know, most of the 10 million new i think how many of them are actually subsidized. Almost everyone signed up is on the government. Its an entitlement basically. It wasnt anything about that. What her name . Less leslie stall. She maybe looks incredible ss ss inous. What 60 minutes does it puts on a grand scale and give it is to them. They have a, you know, they have a perspective they like to present things with. I said wow theyre going to do something on how its going to become unaffordable. Its not about that. About premiums or the government is going to be such a big nut for the government to have it wasnt about that. It was about the private sector gouging people and obamacare didnt do anything. I didnt see it because i go to bed so early. You werent watching. I was going up to bed i watched a little bit of the Golden Globes because its on a fine network i figure i hate award shows if nbc does it. Theyre on the cover of the wall street journal today. One thing i noticed is that the mucks i didnt see burt there. I dont know if he was there or not. Iger was so front and center. He looked like one of the actors. He did. He looked like he was going i saw him. Right in the front tables and one of our friends. Yeah. He was there. He was put together. Not a hair was out of place. And they looked like they were friends. Big night. Big night. Big night. What George Clooney won a Lifetime Achievement . He won an awartd. What was that based was that based on . Can you list is that it . The obama nobel peace prize. The award and that would be . I can go through er. Oceans 11. Seriously . There have been terrific films. Monuments men. Im trying to think recently. Im from cincinnati im trying to give him the benefit of the doubt. All right. There it is then. As you would say. There you have it. Why dont we get a check on the markets. It looks like the futures are looking higher. After a down week for the market. But not nearly as much. Later in the week we have things balanced out a little bit more but the dow ended the last week down by about 95 points. You can see the futures this morning indicating an increase of about 75 point for the dow right here. S p futures are indicating up about 8 points. The nasdaq indicated up by just over 17. Our colleagues at cnbc europe reporting this morning that the ecb plans to ayouns a qe Program Based on the contributions based from the central bank. They meet next week. A lot has been anticipated by the market. Its up by 1. 5 . Similar gain in germany. The ftse is up too. Taking a look at asia. Japans markets closed today for a holiday. The hang seng was higher. The shanghai down by about 1. 5 . And in korean slightly higher. Goldman sachs cutting the average to 50. 40 from 83. 75. Goldman said that oil prices would need to stay near 40 for most of the first half before it hold up shale oil investment. You see this morning wti is at 47d. 16 and present at 48d. 58. Youll see the yield is sitting below 2 . 1. 967 . You want to see where the dollar is holding up. It looks like the dollar is up across the board. Euro trading at 117. 49. And gold prices this morning look at this point as if they are up slightly by about 4. And this story continues to develop. The hunt for a suspected accomplice behind last weeks attacks in paris. Officials say she crossed into syria from turkey. Joining us from paris with the latest. I guess a couple of days ago we had the notion anyway she was not involved with the murder of the female police officer. She had been gone a couple of weeks ago. Is that still the case . Well, now we know of course from the Turkish Foreign minister this woman passed into syria on thursday of last week. An update for you there. I want to mention a further update. They were watching the borders quite closely. Its interesting to note that despite the fact that the foreign minister was here among other World Leaders, we only are getting this information now. But of course as i mentioned, four million almost people marching across france this weekend. The pictures you can see them fascinating pictures of more than 50 World Leaders gathered together. Theyre coming together. Netanyahu, david cameron, Angela Merkel. An unprecedented gathering of the Global Leaders in solidarity. The big question where was president obama . Everyone has been asking this question. If youre walking in the crowds over the weekend we heard it several times. Asking where is john kerry . Administration sent attorney general eric holder. We have new video footage for you as well. Reporting to show hostages being escorted from the building of the kosher supermarket on friday. The new video as well. So you to understand that despite the fact the marches may be over in france were on a high level of alert. 10,000 security personnel have been dispatched to the most sensitive places and as well as some 5,000 security personnel to protect jewish schools. Guy, back to you. All right. That is new information. I thought before on thursday very good. Thank you for the report. And you have a guest to talk about this. Joining us on the set now yournow ian. He was named founder at large and editor of time magazine. We were showing the cover of the daily news. Ill show it again. You let the world down and that referring to the United States and the president not being there this weekend. You spent a lot of time talking about geopolitical issues and implications. It doesnt look good or . You know, especially given the fact that france has been arguably the most stall wart supporter supporter of the United States and our policy against radical islam trying to fight it. The germans didnt, the brits werent able to get the vote on the syria. The french were there. I think given all of that the fact that really no one showed up. Holder was there for a conference the day before. He was in town i think its astonishing. And kerry came out. I dont like to play off headlines like this usually. This is a big miss by the obama administration. And this morning kerry was planning on going to paris this week now a snap decision responded and saying the criticism of no one showing was quibbling. He actually said that. Now we smack down were going it say it was nothing. We cant this is an enormous National Moment grave significance for the french people. They had more people turn out annie countrys history. Since 1944 when the germans were kicked out. 4 million on the streets. Its just everyone is there. And a lot of leaders there have no interest in free speech. But not the point. The point is you have to i dont think obama could have showed for this. I think that security implications and such a short period would have been a distractions from a lot of what was going on. But, i mean, why god invented Vice President s. I think the answer is yes. And michelle obama. There are plenty you could have made a difference here. And i think i dont think this is ill conceived. I think there are so few people right now drinking out of a fire hose. Its a small group that is loyal around obama in dealing with so many brush fires internationally. I think theyre overwhelmed. You think they missed . I think they gave virtually no thought to this until it was too late. And now the problem is of course with the modus operate does is we cant be seen to have made a mistake. Were going to down play it. Hes not running again. He already had to come out and say it was a i didnt think of the optics of playing inging golf after the beheading. Its not a new development. Its a pattern. At this point they had to know. Given the criticism he had faced about being sort of not that involved or at least affected by the beheading. That was one of our guys. The speaking points on this absolutely it shows not this could not have been an oversight. Could not have an oversight. I believe you. Im not suggesting that it was an oversight. Im suggesting the amount of time they continue caredont care. The amount of people they didnt realize the blowback. They would have fixed it. I dont know which is worst. They didnt realize the blowback or they didnt send. Clueless either way. There is a small circle of people advising him. That may be more telling. I think thats hard for them to get strategy right on foreign policy. Its a tough year. Last week you look where oil was. You look at the european markets before it happened. Then you see it and of course this is completely blown out of the water. On the same day you had a larger attack in yemen by al qaeda that killed about 60. You had the largest massacre every boko haram with some 2,000 killed. No one talking about it. In fact the nigerian president showing up at the meeting when he should have been home. In some ways as big as a scandal. The radical islam is a greater threat in the region and its growing. The United States, francly lyly lyfrancly playing a role. When your business clients call you up last week and said what are the implications of this . You tell them what . First thing we tell them is that the politics of europe Going Forward this year are extremely problematic for economic outcomes. The economics are better than they were in the eurozone crisis. The politics back then were pretty darn good. They were constructive. You have a situation where no one is excited about european Economic Growth. The politics are massively distracted and pop lymph is growing. This massive demonstration, the Front National the right wing in france which pull it is over 30 didnt show. France is an incredibly divided population. We dont want to say that now because they experienced this 9 11type event in their country, but the fact is that the treatment of muslims some 8 percent of the population in france is abysmal. Youth unemployment is enormous. The sense of disaffection is grave. And the rise of antiimmigrant pop pop you lymph in france is so big. It plays so badly. We have to talk about oil. I want to talk about greece. Do they exit and what do you think about the idea . The idea that britain . Im very concerned about greece in the near term in the sense that the likelihood of a elected government and coalition. Yes, theyre going to be more moderate once they take power. Most people are. But they have got to we learned not all. Dont go too far. But so you to roll theyre going to roll back a lot of austerity that the greeks put in place when they had an election that wasnt democratically elected. That doesnt lead itself. But absolutely it weakens Investor Confidence in greece. Youll have a massive squeeze on the government. I would be more worried about the britains. I think the likelihood that the british referendum by 2017 leads to the brits voting to leave the european union. Its not that greece leaves and then the barn door opens and everybody runs out. The broader notion in greece spain and many of the countries both pop lymph and distractions is going to lead them to move away from consensus policies on europe. The idea of a europe its going to be hard for the brits to say we want to be part of this. The whole notion was to make sure that the countries werent warring again. We would prevent world war i and ii scenarios. I heard somebody say what theyre seeing about the continent with the moves you talked about with immigration and other concerns moving that reminds them of a pre1930s or early 1930s europe. Is that stretching things . Yes. Its stretching things quite a bit. I think the conclusion i would take is the idea of great power wars in europe which, you know, existed in a serious degree before are not what people are concerned about today. And nato which, of course the United States transatlantic relationship nato may be more relevant today than ten years ago. Its not very strong. The benefits from adopting the euro, you know open orders, you know, trading with partners. You dont need to change your currency. The benefits from that versus what weve seen in terms of Interest Rates not being properly for a lot of countries so they have totally out of control not being able to value the drag ma. All the negative things. At this point more positives than negative . And in the future is there any reason to think this experiment is going to have a better outcome . I guess i would say more positives. Really . I dont know. Where . Well, i mean, in the idea of the in having a consistent growth . Theyve had a nineyear gdp. In larger Common Market and in the ability to actually have you know, sort of migration movements. Well see. Your argument is and but, you know this is a point that, you know, its precisely the reality of your argument which im not going to people are going to vote on that. And leaving where was kerry . Remember when he ran for president people said he didnt get elected with know kerry was working with the Indian Government on he was prepping obamas trip. He has a lot going on. Remember it was the wind surfing and he looked french is a reason he lost the election. His french is pretty fluent. It is. He looked like dominique whatever that guys name is. Theyre separated at birth. He could have he would have been perfect he had gone. I think he could have made time. I was astonished he spent a year and a half prioritizing digital palestinian. I think thats almost a fireable offense given how many other things weve reported on in the world today. Ive been very i thought hillary did a more quite good job. Zuckerman will go crazy on anything related to the middle east. But anything economic related theyre kind of weird. Thank you. Now were so local. I can walk in on my way to breakfast. Coming up its electric. Yeah. Yeah. Thats why they put that. The Detroit Auto Show kicking off this week. And chef si is set to lay off the answer to the tesla. Well talk to the top executive. At 6 30 eastern former walmart ceo bill simon. His st

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