About 8 billion to banks at discounted rates. The goal is to allow the firms to relend the money to small businesses. Its been more than 24 hours since swiss Central Banks shocked the financial world. It abandoned its cap on the euro an were still learning about the fall out. Regulators around the world are looking for information about what happened and how some retail brokerages entered insolvency. It says the volatility left it with a negative equity balance and its trying to sure up its capital. Lets take a look at whats happening with the u. S. Equity futures this morning. The dow was down by triple digits yesterday. The dow was indicated down by 42 points. S p few turs down by 6 and the nasdaq down by over 28 points. Of course as weve seen what happens in these early hours is no indication of what would happen by the market close. No indication of what would happen by the market open. So true. A lot of volatility out there. It is. Corporate news this morning, heres our early stocks that were watching. The first one intel posting better than expected earnings and revenue. Revenue guidance came in slightly light. Well talk to the tech giant ceo at 8 40 eastern time. Id like to buy a vowel. Schlumberger is cutting 9,000 jobs. Theyre working on dealing with costs as it deals with oil prices. Revenues fell short. The eu is outlining its tax case against amazon today. Part of an investigation launched three months ago. Their tax arrangements may violate eu law and give the company an illegal advantage over competitors and what was having is they were allowed to operate throughout all of europe on almost a tax free basis. Youll see the eu cracking down on more of this. They have been looking at ireland and other places thinking this may not stand. Its not what the eu is all about. Also this morning ree gal entertainment deciding against the sale of its company. The company hired Morgan Stanley to look for a deal and they didnt come up with one. Also pharma firm depomed is acquireing a deal. The futures down 41. Theres been volatility and people arent just talking about the futures markets. We heard it yesterday the usage of the term new normal to talk about all different markets. Currency markets, oil markets, commodities markets, treasuries bonds, sovereign debt everything seems to be in a state of flux here and how it plays out will definitely effect whether we have that 8 to 10 gain in the markets this year which i dont know i think that was a little too crowded. Maybe it ends up like that. It was the first unanimous. The first week of january, first week wasnt great. Didnt work that way last year. January may not be great. I started thinking about just this ive been on this kick for awhile but just the European Union. Not the euro zone. They have the euro but the European Union itself. You have been on this kick for years now. I have been but so the swiss kept the franc. They tied it to the euro. Most places just took the euro. So they dont even have a chance to let this happen. They dont have a chance to back out and watch the stock market lose 100 million. If everybody backed out what would happen . No how many different economies over there are like switzerland. Different situation and economy and you can see the stress of it using that currency. What about portugal and spain and all of these places. Dont have the political tie in so you cant say these things are going to be uniform. But how do we know that by using the euro that these other currency situations arent stressed . To keep that swiss franc with that relationship euro and look what happened. It moved 30 . How can greece and germany have the same currency. In this case the central bank made the decision to do what its doing. These other countries, government has to do it and its much more comply katd. Covers up some inherent differences between these economies. Huge differences. People say you have 50 states over there and you all use the dollar. Its not the same thing. We have a federal government that sets federal laws. That apply to everyone. But anyway after its all said and done lets sue how europe setting itself up andrew. Setting itself up. There it is. Ive had people trying to photo bomb us this morning. Really . Just now. I was just waving at them thats all. I dont trust people Walking Around at 4 00 in the morning usually. They have coffee cups. Probably stole them. 40 ouncers back there. Heres the asian markets. Shanghai up the hang seng and nikkei both down. I dont know where oil is this morning. Its up a little bit. 47. Really going out on a limb. It should start to stabilize a little but it could go lower or rebound or stay where it is. But there it is at 47. Check out the ten year. Were seeing things that arent supposed to happen. The 30 year was an all time low. It was 2. 4 . All time low. Reflect what is we have seen in japan and germany and what is this indicating . With are we looking at a global deflationary environment. Deflationary spiral. Maybe there are some future risks in the Global Economy. Theres the euro now, 115. Howly cow. The swiss removed the cap and the euro goes down anyway which is weird and it went down really the u. S. Dollar went down significantly. But thats because were looking at the Swiss National banks move being something that indicates they think the ecb is going to react next week. And now people are saying if the ecb doesnt act everyone already has the trades on for it to act and that could cause a mess but in acting it caused a mess yesterday so theres not a lot of good choices for the officials consider the unelected bureaucrats in brussels which is another thing that theyre making these decisions. They are. Whats draghi . Hes italian. Yeah. Former Goldman Sachs man. Mit ph. D. As well. Lets look at gold which you figure sooner or later people are going to say i want something that i know is you can at least make jewelry out of this. 1258 now. Lets get back to this. The Swiss National banks currency move is the story of the week catching the Global Markets off guard yesterday and imf chief Christine Lagarde sat down to dismiss the idea that a currency war might be brewing but to also say she had no idea it was coming. There was talk about a currency war back three years ago. We are not hearing those words anymore. Not that music. And i would certainly hope that we do not have currency wars and that countries and their Central Banks in particular refrain from competitive devaluation. Thats her hope but you obviously cant control what the individual countries are going to do and what else could she say. Looks like a currency war is right ahead of us here. We believe in the strong dollar. What they say matters about whether its selffulfilling so i dont know how much stock you can put in that. How has the swiss move upped the ante for the decision nec week . Lets speak with germanyjeremy. Is it true that you think if they were not to act that it could foil the markets. Well clearly the markets are royaled by the events of the ecb. If they dont step up to Market Expectations we would see further degrees of elevated volatility and why the investors have been seeking the safety of bonds because of the extreme volatility in the equity markets and currencies and the question is will the ecb disappoint or provide enough liquidity to keep the euro lower. So what are the ripple effects we have just in terms of the European Union do you think . We were making the point that theres a lot of countries that didnt have the choice and didnt keep their own currency and didnt have the choice to say this has gotten too hard. Thats why we have some of the economies stuck in neutral. Well they have been under pressure over the course of recent years but you could argue that the euro is already up from the levels and highs in early 2014 and overtime that will provide a loosening of monetary conditions but they probably need to see more and thats the reason why the euro is effectively talked down by the ecb and thats why the policy of expanding the Balance Sheet is aim at cheapening up the currency to boost economic conditions. Of course in the context of switzerland theyre not a European Union member. They are a sovereign state. They did take that conscious decision to peg their currency against the euro which resolves themselves from independent Monetary Policy and thats been the inherent problem. They have been holding this line particularly over recent weeks and now we have seen the consequences of that and of course the valuation loss for the swiss is Fairly Extreme and more than double the profit the snb managed to create last year. What do you think does germany deserve a euro thats this cheap right now in the same basic currency as greece . Thats the point were making. How can that ever work . Well of course that comes back to the fundamental question about tying countries together within one single Currency Union and having different fiscal states and different political elements but having said that i think the euro will be germany is getting a net benefit from the cheapening up in the euro. From the peripheral nations if you look to the aggregate value of euro dollar and foreign affair value theyre probably not too far away from it but if you looked at each individual nation it would be lower than for germany. Germany could with stand the euro up to 145 or 155. Germany of course will be the economy of the euro zone that will get the greatest net benefit and thats continued to be the driver of growth as far as the euro zone is concerned. Without that they look much sicker and that would be much more damaging for the Global Economy which the euro zone is still an integral part. It is you know were deep in the weeds now and usually your currency wont go up 30 when you cut Interest Rates again too. None of it makes sense, does it . Yes they cut Interest Rates. Theyre moving rates further negative to try to stem the rise of currency but it underlines the fact hah the swiss are holding back the strength of the currency for a long period. Back in 2011 euroswiss got down to near a parody. We got back to more or less where we were when the peg was imposed. Its more of a realistic evaluation. Its like 10 to 12 of gdp. I think the fed is going to lose its nerve here. Lets say they go up in june or april. Were going up. Best economy in the world and europe is going to qe. Whats the fair value for the euro . 60 cents . I wouldnt necessarily think its going to go that far. I know. Monetary policy divergence is coming. There might be concerns at the federal reserve. May hold back in terms of timing but i think were going low. I dont think well get anything like the sort of extremes weve seen historically in terms of the euro dollar but were heading back toward the 110, 112 era. It might be preemptive because we remember that the legacy will start to have some impact over time. Okay. All right jeremy. Just the more you think about it. We appreciate it. But the best layed plans of mice and men. All the Central Banks around the world are printing money. Inflations coming. That was perfect. Why . Im not going to say the exact on o sit but instead of an inflationary spiral its a deflationary spiral. And no one predicted that. We wouldnt go below 2 . Are we going to go below 1 on the ten year. I would say anything can happen at any moment. Ive been shocked over the last 15 months where our yields have gone. We have been watching the stock market. Good news is its friday. Bad news is its a rough week for the bulls. Stocks are riding a losing streak. Joining us to talk about this is david, chief Market Strategist at amerprize financial. Thank you for being here. I asked for a 30 year. If you look at the 30 year its 2. 4 yesterday and today its below that at 2. 37 . If you look at that yield, germany, japan, any of these yields is telling us that bad things is happening now. Is this different this time around . What do you think . We like to call this great and final global unwind. What were seeing before our very eyes over the last four to six weeks is finally lets give up and come to reality that growth is not coming from em or europe. Its coming from the u. S. And thats why we had this massive rerating of commodities while people are coming to grip with europe is in trouble. Em is taking out their capacity and the u. S. Is the place to be. Ill be in europe next week and it will be interesting to see if european investors will be less reticent to come into the u. S. Because from our perspective they have been reluctant buyers of the market rally in the u. S. The currency issue is going to be strengthening that wonderment but in terms of the move in yields this is an overreaction on a near term basis. Youre not going. Im going to be in zurich. No way somebody would spring for that for you. Right. But what are you doing in zurich . Its a great time to see clients. After the move yesterday. Were going to be in all the major cities and especially in switzerland because of where they had issues and the institutional private money ft. When we think of Howell America is doing versus the rest of the world you may have the impulse to say go usa but its a global world at this point. You have to wonder when all the problems around the globe catch up with us. Absolutely. A lot have investors as well so they have to Pay Attention to whats going on but to get back to your question about yields talking about the ecb probably doing quantitative easing and one of the members of the Council Last Night was talking about how it has to be sizable in order to have an impact. It seems as though the dollar is going to get stronger and yields will go lower. Two weeks into the new year and were rethinking our expectation that yields should be going higher. Does this put the fed on hold at this point . I cant imagine them doing anything in april and have doubts about june. I would guess yes. My expectation was that they would raise rates in june. Just to continue the process of normalization. But if this was june right now of course they wouldnt do it. That was my question yesterdayful theyre still saying its dated. We want you all to know its data dependent. Does that tell us anything . Does that mean its data dependent on u. S. Data coming in thats strong or does data like zero percent in europe does that count as data to them . They acted so far as if it doesnt matter to them. Were going to take data from overseas. They havent raised rates. They focused on the inflation rate here and the jobs situation. But they talk about it in the room. They do look at the world mark market. Theres a transition mechanism. But clearly if things are slowing internationally and ceos are seeing that and the impact on their businesses this will be all about wages. The fed is going to pull the trigger when you start to see wage increases so Corporate America will change their behavior and start spending money if things are slowing down globally. We remain in a reactive marketplace and the behavior has to change to allow Corporate America to feel better about whats happening with their businesses. If things continue to slow theyre not going to hire and wages arent going to go up and the fed is going to be on hold longer than people think. On hold longer than people think meaning you don think its happening this year or not in june . You know estimates are like everyone else. In june have to take the other side of the coin saying we think its going to be pushed out especially how the year is beginning. We could see a behavioral change and data could say things are really decoupling. The opposite of what happened in 08 and the fed would do something. Although some of these measures they dont have to lookout side the u. S. Questioned we had ppi that dropped by 30 basis point which is is the biggest drop weve seen in three years. That comes after a decline of of. 2. What do we have to see for them to change their forecast . How many weeks does the situation have to be this dire . Better or worse . I know you have your own view and the firm has a view that you can change the firms view in a day but does a day change the world. No, i dont think. This is an unwind. Things get worse toward the end. Especially with having weakness coming into friday thats typically not good for markets but good for market turns so we need to see how businesses react to what Global Growth is saying. Fun fact so we know what the eu is right . Theres 28 countries in the eu the ones that you think of the u. K. And portugal and all of those but the European Economic area the eea, includes all the eu countries but also iceland and norway and it allows those people to be part of the eu single market. Right. Switzerland is neither a part of the eu or a part of the eea but it is able to be part of the eus single market. Its a trading partner. But its so jury rigged over there. The way they have this put together. And the euro zone is different than the eu. Half these countries they still have their own poll. Was it pegged. I dont think so but i didnt know that the swiss franc was pegged until yesterday. Theyve been doing it since 2011. A couple still has the kroner and one of them doesnt. And theyre over there wondering why we vn grown any here. I wonder why . We have a good system here. Everyone should adopt the dollar and actually let and link our economy to every other economy. No. Theyre maying music. I feel bad. Thank you for coming in. When we come back joe is going to continue the education for all of us im learning. Im learning. Also David Winters is now firing back at barry diller at comments he made and a coke board member. He did it on squawk box yesterday. A war of words. Well bring it to you next but first heres a look back at this day in history. Ive been called a control freak. I like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. A