Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with Andrew Ross Sorkin and Michelle Caruso cabrera. Joe is off today. Lots to cover on this friday morning. Everything from this civil gop debate in miami to apple and the fbi trading blows over its encryption battle. Check out the futures. Theyre in rally mode this morning. The ecb moves still in the market. Yesterday, the knee jerk reaction was a positive one. You saw markets up across the globe. By the enof the conversation, though, the ecb head mario draghi making comments that this might be the last that they needed to offer easing. You saw the markets go down before eventually finishing flat. This morning, doe up by 170 points, s p futures up by 20 and the nasdaq up by 52. In europe, you see big rallies there, too. The dax is up by 2. 8 . The ftse is up by 1. 5 . If you check out the currency markets, this is the story. The euro was down to 108 initially on this news all the way up to 112. You can see this morning, the dollar is up against the euro at 110. 83. Dollar again is 113. 77. That was aastonishing to watch. It was unbelievable to have that much volatility. Just crazy and just the opposite of what mario draghi wanted. It felt very much like that moment when japan stunned the world. They go to negative Interest Rates. What does the yen do . It surges instead. It didnt make any sense. So today we see what we would have expected to be the reaction. Although this is still higher than before the move. Exactly. Yesterday we were at 109. This has not has not worked out the way they wanted it to. Crude creeping up on 40 a barrel. The International Energy agency saying Oil Prices May have bottomed. The iea also says the increase supply for iran has been less than expected. The agency now believes nonopec production will fall by 750,000 Barrels Per Day in 2016 compared to their previous establishment th estimate that it will fall. Brent is back above 40, 40. 77 for delivery in may. Natural gas at 1. 80 here. We havent talked a lot better. Maybe its finally come off the bottom there, as well. Check out stocks to watch this morning. Its going to vigorously fight a lawsuit that suggestion its trying to keep the company from opening a Second Company owned dealership. This would allow them. They think they should be allowed to do more. Theres a settlement that allows them to only do one. Reporting earnings that beat on the top and bottom line, offering upbeat guidance to speed up its Share Buyback program. Reporting higher Fourth Quarter profits, but revenue missed estimates. The guidance for the year was at the low end of consensus. Froied chicken chain bojangles beat establishments with a quarterly profit of 22 cents a share. Revenue was above forecasts. Also, Action Sports retailer zumi says the sales in the Current Quarter will decline because of weakness at its existing stores. The company says its disapointsed by its performance even though it considered the current retail environment challenging. We see it before. Mellow in miami. What is that will smith song . Welcome to miami. Thats one way we could describe last nights gop debate. That can be good . For the Republican Party, its good. What we saw last night, if you were surfing channels and you thought you were looking for Pro Wrestling and you ended uplanding on the checkers championship, thats what this debate was. It was very subdued. You had discussion of policy, donald trump for example for the first time, so far as i know, came out and said he supported president obamas decision to open relations with cuba, although he said he could cut a better deal. This is something that was a little surprising coming in florida. And you had discussion of trade policy. This is one of the ways donald trump is most severely challenging. Ted cruise went after him and donald trump had a response. Take a listen. The effect of the 45 tariff would be when you go to the store, when you go to walmart, when youre shopping for your kids, the prices you pay go up 45 . But not only that, when you put those in place, because the terrorist attacks on you, the american people, but the response of that is that the countries we trade with put in their own tariff. The 45 tax is a threat. It is not a tax, it is a threat. It will be a tax if they dont behave. And this is how donald trump has reconciled what he told the New York Times editorialal board. This became a Sticking Point a couple of weeks ago when he had done ta interview, the times published some things and there was some idea that there were some off the record stuff that wasnt being released. But donald trump is now saying, yeah, i said a 45 tax, but it was not actually a proposal. It was bluster. Theyve been saying frequently that donald trump suggested that was a starting point for motions is a way to come up with. Donald trump has been very adept of very quickly reversing things that he said before and saying, oh, well, i didnt mean that or you took it the wrong way or whatever. But that can be a skill in a politician and it can be a detriment. We had him on yesterday and you said, look, a lot of this is now these are going to be things that are kind of a negotiation, as you said. The other thing that was mailable was the performance of marco rubio. Marco rubio has been extremely aggressive going after trump. It hasnt really worked for him. Hes approaching what may be the end point of his campaign, the florida primary. And he took a higher tone. Exactly. John kasichs whole stock in trade has been im running a positive campaign. Donald trump is closing in on a nomination, so its more valuable to him. He doesnt want to hurt the brand. Hes trying to be more statsman like. The one who still has the strongest incentive to go after donald trump, and maybe well see more of that, is ted cruz because ted cruz appears to be closer to the oneonone matchup he wanted, although cassic i just have a question about the malleable idea. The good way to position it would be to suggest malleable. The less con b and but his supporters dont seem to care. But is there a time that they will . Or is he so malleable that its a benefit rather than a distraction . If youre donald trump and youre campaign is in motion and tapping into the frustration and anxiety and anger people have about the economy not working for them, the words dont matter so much. Its about emotion. Where its more significant, though, is if you get into a general election, im pretty confident that Hillary Clintons campaign will know how to attack that and its a different deal when youre talking general election audience. Its my understanding that they told the crowd that whoever won the nomination, the party would support. Thats a big deal, isnt it . Rice has a challenging job of keeping this party together. If donald trump goes to the convention and has a lead but doesnt have a majority and somehow a deal is worked out that somebody else gets the nomination, you have a real danger of a fracture in the Republican Party. You have a danger of a fracture if donald trump is the fomny because some of the Establishment Republicans dont like him, but previous, understandably with is trying to keep it together. Stim around. Were going to continue this conversation right now. Rick, youve been hearing what weve been talking about here. Sure. Morning. And the possibility for that in the future or at least that cruz might need to pursue a mudslinging campaign to go head to head. Does he have to do that . Look, i want to pick up on one thing that was previously said. Rice said he would support the nominee of the party. And the convention is where we have the nominee. So is he saying that uhhuh. The person who gets there with the most delegates is the nominee or the person would comes out of the convention is the nominee. Heem are asking that one. I liked the debate because it was more civil. John kasich was able to distinguish himself. I thought that on policy issues, ted cruz was substantive. I thought marco rubio did a good job. Donald trump is the frontrunner, but it looks like he had a lot of policy holes in his committee. He didnt convey to me that he was very comfortable talking about policy. He seemed to avoid all the details and specifics that he was add. Sure. Do you think that if trump goes into the convention and repeats the argument that he made on the stage last night, which is, hey, look, the majority is a random number. If the person who walks into the convention with the most delegates ought to be the nominee, how powerful an argument do you think that is at a republican vengz . But what i think is if he goes to the convention and hes got the most delegates but doesnt have the requisite number of delegates, the party will say that you have to have a majority, 1,237 delegates and if he doesnt have those, there will be an argument made that hes on equal footing with anybody else who the convention wants to put in nomination. You dont think you can power through by saying ive got the most, its logical, i should be the winner . Its all depends on whos in the room. A lot of the delegates that were going to the convention, most of them these people have known the party rules for a long time. They live to go to the convention. They may or may not be donald Trump Supporters. So it will be interesting to see who those people are and but rick, thats the party of delegates who knows these rules. That is not something that a lot of Trump Supporters and a lot of Republican Voters at this point are familiar with those nerves. Thats exactly the point im making. Even if the delegates go and say this is the case, doesnt that risk alienating so much . Its been a huge turnout. There is no question that if donald trump goes to the convention with the most delegates, but not the requisite number, not the majority, and he is denied the nom nailg nation, there will be a lot of people upset. The question is who r people that are going to be upset . Have they been part of the process . And that leads to the question of in november, if they are disfranchised or they had their nominee stolen from them, do they know out, do they set it out or. Going back to the question we were talking about earlier, does policy matter . It doesnt seem to. And ill tell you, when i was with the cruz campaign, we talked a lot about policy and policy rollouts. And the team that had the most pape policy rollouts that i recall was the jeb bush campaign. And the team that had the least amount of policy rollouts was donald trump been. I think youre cutting people short. People are very focused on one policy, what happened to middle class income for the last ten or 15 years and theyre very focused on that policy which is going to help them. And what they hear, and they think a lot about trade, theyre listen to go that particular policy right now. And what they hear from dtd downto downtown. So i think youre cutting people short when you say it doesnt matter what the policy is. On trade, donald trump has been specific when he talks about his what tariff. Yeah. But donald trump the problem with donald trump is that he will change his mind. He talked about visas and changed his mind within an hour and a half. So which is it, donald . Is it a 45 tax or was that bluster, is it negotiating or is that how youre going to conduct trade . Are you really going to have a trade war or is that the opening gamut . We dont know. The ted going to lose points on this . Ted cruz last night says, listen, donald does well on voters that have they are relatively smart, educated people who are now supporting donald trump. Does that make it harder for ted cruise . Well, it depends. Look, the fact is is that if you look at what donald trump i think what he meant was, if you go over the statistics, its a hard and fast number. It appears to be that people that do want have a car. I dont think he meant stupid or to denigrate. Its just that the people who are getting hammered the most, and are falling behind. That is a group that donald trump has certainly emotionally connected to. And they believe that he can fix this. So at least theyre so sick and tired of washington. Very quick answer, if youre ted cruz, what is the number one issue that you want to engage donald trump in economically to try to overturn the preassumption that hes going to be the nominee . Is it trade . Its a combination in terms of trade in terms of what is going to create more jobs. And ted cruz made the point last night, when you have a trade war, youre hammering the american consumer. Secondly, who do we best create jobs . He prepares the tax plan. Donald trumps tax plan seems to be pro growth, but it contains huge debts and deficits going forward. So i think he has to engage both of those issues. And i think that donald trump has not been particularly specific or at least not consistent when he talks about policy. I think ted cruz has been. Weerg going to leave it there. Donald trump will be speaking again this morning. Also, ben carson came out and supported the trump campaign. That is the lead of the New York Post today, too. The department of justice pushing back against apple in the fight to unlock that iphone linked to the San Bernardino shooters. Aman joins us now. This was an absolutely blistering exchange yesterday between the department of justice and apple. It was a new filing by the government. Sayeed farouks iphone and whether the government should be allowed to have access to that. Here is what the department of justice wrote, saying apple attacked the all wits act as archaic, the politic order leading to a police state and the fbis investigation shoddy while ex tolling itself as the primary guardian of americans privacy. Apple fired back and said in 30 years of practice, i dont think ive ever seen a legal brief that was more intended to mere the other side with fall accusations and innuendo and less intended to focus on the real merits of the case. Apple said it was deeply offensive, it was xheening and essentially the government is calling us liers. So this is getting very personal between apple and the u. S. Government. Were head to go a march 22nd hearing in front of a magistrate judge. There we should see both sides in court arguing out these same courses theyre taking on basement now. And if you have if the house doesnt pass this bill and then a judge decides that actually hes going to do what the house wouldnt, it becomes complicated. Yeah, andrew, i think its a pretty safe assumption that congress is not going to do anything this year. This is a bitterly divided congress between republicans and democrats. Most of them are running for reelection. It is a president ial election year. Weve got gridlock, anyway, in washington. So Congress Might be the logical place to look for a solution to this problem, but you cant this year. That question was put to the apple attorneys last night on their Conference Call and they said that what they would like to see, ultimately, is a legislative solution here. Theyre asking for congress to get involved, but the practical reality is thats not likely to happen. Thank you for that. You bet. Coming up, when we return, has the small investors returned to the market . Well tell but a long losing streak that has finally been snapped up. Well talk about Jessica AlbasHonest Company now getting called out by the wall street journ journal. Weve got that coming up. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. Welcome back to squawk box opinion well show you whats going on with the futures. Dow would open higher by 175 points, s p by 21 and the nasdaq by 24. So reversing a lot of what we saw yesterday. European market are sharply higher. Bridge Water Associates hired a Long Time Technology executive who spent years working with steve jobs. John bergsteen will be joining them in may. And another executive who was the ceo . They were going to have votes. They were having votes on their iphones, literally asking people to vote about their credible with each other. This is part of their add caltrans parentsy, i guess. Thats cio and coos are going to be separate. Pretty interesting hes bringing on a knowledge and not an investor. Sort of maybe operations . And thats the way theyre thinking about it. Two cios and two ceos. That sounds awful to me. Daily its running almost li massive social experiment in terms of how people work together. 280 rules. Theres lots of rules. But its transparent. Usa stock funds, its notable because the strength the fund outflows. The ecb pulling out all the stops, cutting rates and expanding qe. Joining us right now with where the markets are headed is lorraine simmer. If you dont like the way the markets are trading, wait an hour or so. Yesterday was a chaotic day, a lot of different responses. How are you thinking about what the ecb did and how should we view stocks through that prison . Good morning. Of course, the market is always very volatile. You see that with the fed. I think what yesterday showed was that the ecb basically overdelivered in every way. Its actually going to pay banks to lend money out. But yet the markets seized on one thing about maybe this is the last rate cut. And it just shows you how nervous the market is about how much longer Central Banks can keep stimulating things and i think part of the decline we saw a month or two ago was about that sort of that end game. Its like how negative can rates get, at what point does it back fire. And so i think the market is kind of looking almost to the exit saying, you know, where is this going to end . And ultimately, what the ecb and the bank of japan and the pboc do have very