Unorthodox unorthodox. They are, in fact orthodox and they are in the Central Banks tool box for a reason. Stocks in focus, a deal with netflix could be sending it near the top of the european market. Changing channel reports say uni vision is getting set for an ipo in one of the biggest media deals in years. Welcome back to the show everyone. Lets take a look at futures because we did see a major sell off on wall street. Yesterday stocks across the board getting pressured by fears over a potential fed rate hike and strengthening u. S. Dollar. Nasdaq up 14. S p 500 up just about 8 points in premarket trade. Now the dollar was also in focus. Yes, thats right. It wasnt just stock that caught the attention of traders. The euro hit a 12 year low against the dollar. They expect the euro to fall to the dollar by the end of the year. 90 seconds by 90 cents by 2016. We are bouncing back today seema seema. Europe was included yesterday. We know of course that policy wont be tightened which has been one of the big factors weighing in the last couple of sessions. So a little surprise that europe was involved in the sell off yesterday but it was bouncing back today. Quite strongly as well. Mario draghis comments giving extra to markets and highlighting the fact that even though of course we do have the growth picking up that policy will remain moving toward strong gains across the board. Ftse 100 is in the green today. It was weighed on heavily because of weak commodity prices. See what what are commodities doing here today . Ill join you at the wall. They were a big part of the story yesterday. We did see oil shares moving lower but a little bit of a bounce back. Wti crude trading at 40. 47. Perhaps traders reacting to that. Gold given the rise in volatility we saw yesterday standing about 10 . A certain level of fear given the rise in rates. Thats what caught the attention of traders yesterday and in response we did see spot gold rally yesterday and today it continues. Spot gold at 1,161 an ounce. Just when you thought yields could not move any lower, well they did. Dipping below 2 in yesterdays trade. Some saying we could see a negative yield on the ten year. Something that watch as we head toward the open of trade today and the ten year u. S. Trade, interestingly enough some investors saying theyre going to take money out of the european monday market and put into the us. Bond market. We did see selling in yesterdays trades. Bonds a big part of the story. Thanks. Lets talk more about the markets and volatility in the last couple of days. Lets touch on the big sell off in u. S. Equities. What in your mind has been driving that. Well i have been talking for some time over the last several months that the real story in the markets is not Interest Rates its really currency volatility and i think we saw that in earnest just yesterday with the euro weakening and the dollar getting to new highs. It may be the biggest trade in some time but its a trade thats been working which is long the dollar and short the euro. Its a little bit too much too fast. Obviously part of the story behind the cheaper euro the ever cheaper euro is that thats been some of the good medicine thats been helping the euro zone that was so problematic for the markets back in the fall when euro zone economic inflation me tricks inflation metrics was starting to plummet. Of course the other side of that coin is this dollar rally. Too much too soon is not a good thing for appetite. Certainly not here. Of course the other asset class that investors were focused on was the bond market. Whats the impact of negative yielding bonds . Some traders yesterday were saying that its resulted in some investors looking at the u. S. Bond market given the yield of better than 2 on the u. S. Ten year. Do you think thats the case . Absolutely. Weve had qe in the u. S. And thats obviously flattened out but we have imported or derivative quantitative easing here in the United States thanks to whats happening in the euro and european bond market. So the bond market is one global marketplace as yields get extremely low in the euro zone that flows into yield suppression here in the United States and thats a part of the whole equity story here. That if rates can be managed and suppressed the way they are, and right now the ten year yield is on par with the dividend yield on the s p 500, that helps set the stage for a sort of goldilocks to reemerge. How do we hedge this volatility . This raised level of volatility . How are you playing that hedge . Mostly with iwm or russell options that are short dated. I like the russell because its relative volatility levels are favorable for hedging right now. It has a lot of Interest Rate risk imbedded in it. If you think rates are likely to rise higher here in the United States and near term i like the russell but near dated options. Im overall bullish here. My price target for the end of the year on the s p 500 is 2350. I just dont think well get there any time in the near future but im looking closely as to how the fed on march 18th will address this ever strengtdenningstrengtd strengthening dollar in their negative. Michael. Thank you. Well have another chat in a few minutes time. Now jeff gunlock says now is not the time to short the dollar. The investor said in a web cast theyre showing few signs theyre ready for it. A strong dollar may not be a good thing for risk assets. He also says the u. S. Economy is in better shape than most euro zone economies. Yeah, interesting comments coming in there from the widely respected bond investor. What do you think is behind the sell off in yesterdays trade. Is it the stronger dollar or is it the rate hike . Fears that we have been getting your tweets over the last couple of hours. Joseph says that wall street is getting nervous about the easy money ending. Do you agree with that . You can join in on the conversation here on worldwide exchange. Get in touch with us. Email at worldwide at cnbc. Com. Some traders say its the stronger dollar but i would say to that why are we making up now to the negative impact of the stronger dollar . We have been seeing it climb. We have. Its making smart moves. I think its much simpler than all of this. Rate rise expectations were already baked in for june or september. That hasnt changed since friday. We havent had a correction since january. Were six years into this rally. We expect marked corrections for the rest of this year. Using a potential rate hike as a reason to sell stocks. Absolutely. Still to come investors cheer word that it could be nearing a deal with netflix. Well tell you more after this short break. Welcome back. The market roller coaster continues. U. S. Futures point higher after stocks wipe out all of gains of the year. Yesterday the euro inches closer with a dollar at a fresh 12 year low and its time for round two of the fed stress tests. Find out which banks get the green light on capital plans. Draghi speaking in the last hour defended the central bank from criticism that it had acted too late adding that the asset Purchase Plan prevented euro zone countries from greek contagion. Market reactions as well as experience in other jurisdictions show that the Asset Purchase Program can work. What is the evidence that easing of financial conditions is finally starting to effect the real economy . Developments in this area are pointing in the right direction. The socalled surprise index that compares actual macroeconomic data with consensus estimates and Market Analysis shows on average the latest muse is positive. The slow down in growth has reversed. With the ecbs bond buying in focus the euro continues to slide. Its off another half percent today and in the last 14 days two weeks, the euro lid 6 against the dollar. Its very strong moves of course focussing in on the different Monetary Policy paths that both the u. S. And europe are on. Lets get out to annetta following that speech. Thank you, wilf. It was an interesting speak. Because draghi was already declaring victory when it comes to the effectiveness of the qe program but to discuss that and also other implications and thank you for joining us. Whats your major take away from the speech of mario draghi . He was declaring victory in a curious way. He said we have to do qe because inflation eck peckations five years out were falling down. So we had to do something and there is success, you see in growth this year. He has two different ways to measure success and the need for it and the second was the growth and the moderate pick up in ib inflation will continue only if we fully implemented our qe program. But he was also saying once again that reversing that traditional argument that qe was taking the insent tif away from governments. He was saying it gives more insentin incentive incentive. That story about taking away the incentive for reforms is something that one cannot really prove. More fiscal room might mean that government undertakes reforms that are costly or they might do nothing. Who knows. That is an argument which is entirely political and that is an area out of which the ecb should really stay out. Were also discussing the benefits verses the potential risks of qe. In your view what is actually outweighing the other . Most professional economists when they look at the numbers say the benefits are likely to be minor. Mostly theyre positive but minor and the risks are usually also exaggerated because the risk might be some inflation in the future. But again if you talk to professional economists they will tell you these risks can be contained. So qe is about Financial Market activity but probably little impact on the real economy. Thank you very much for joining us and for your insight. So its according to daniel a little bit like much to do about nothing to summarize. But at the same time dragi was also saying that he thinks that the size of the qe program here in the euro zone is actually compare blt to the one in the United States. With that back to you. Annetta thank you so much. As we were saying the euro continues to weaken against the u. S. Dollar. In fact they say the wrureuro will fall to parody. Its amazing. Particularly the last couple of weeks. Many people thought that the qe was already priced in since january. We saw sharp yields after that. But the last two weeks is highlighting it and the broader u. S. Dollar as well and thats so important because quantity easing in europe is still unsure how it will go to the companies but the weaker euro is a massive boost. Especially the autos being seen as big beneficiaries. Financials got crushed in yesterdays trade and the banks will again be in focus today with the fed releasing results from the second part of its annual stress test this afternoon at 4 30 p. M. Eastern. Last week it said all 31 banks had enough capital to with stand a severe financial shock. Today the fed will disclose whether its approved banks capital proposals or plans to return cash to shareholders through buy backs and dividends. Citi group failed the test last year on qualitative grounds. Coming up we hear from one banking analyst that says now is the time to buy u. S. Banking stocks. He joins us in the next hour to explain why. Also still to come Hilary Clinton speaks out for the First Time Since her email scandal. Did her explanation do the trick or could this cloud her prospects . Well discuss later in the show. Welcome back. Theyre up 5. 3 after talks with netflix over a potential deal. They already signed a content deal and are now Holding Discussions with media set. The market taking the news well. Theyre underper post morteming down 3. 9 after delivering full year Profit Guidance that fell shy of forecasts. Speaking on squawk box europe earlier the company ceo discussed the current economic environment. The market will remain challenging without a doubt. Theres a lot of volatility in the market and we will invest and continue to invest. So overall i would say 205015 will be a modest growth. We should not expect spectacular growth around the world. Overall it will be another solid year. Now adecco is in the green. Thats up after 4th quarter profits beat expectations. Lets get more on the story from carolyn. Good morning to you wilf and the worlds biggest Staffing Company is the outperformer. Expecting both on the top and the bottom line. The organic growth number was 2 . That was a little slow down from the Third Quarter was that dynamic, that has changed going into 2015. Heres what the co said this morning. We lost the bite there carolyn im afraid but thank you very much for that. So the market taking it well. The index up 15 to date in comparison with the s p 500 which is trading flat. Is this the time to get bullish on european stocks . Michael is the chief global strategist. The divergance continues to widen. Will this trend continue . What are your thoughts . No doubt europe out paced the u. S. This year. I think, though its interesting, it reminds me a lot ant two years ago when the japanese embarked on a big Balance Sheet expansion by their central bank and the nikkei climbed quickly and corrected as people took profits on the trade and then went rangebound for quite a long period of time. About, a little bit more than a year and i wonder whether that play book is going to come out and play for european equities here. Very solid performance thanks to the cheaper euro and Cheaper Crude Oil and to a degree cheaper Interest Rates. Weve seen improvements in the economic metrics in the euro zone. Well see an acceleration in corporate profits thats consistent. The jury is still out on that and its a much more complicated story. If stocks are getting ahead of themselves because we havent seen Monetary Policy move through. Thank you for joining us on worldwide exchange. A jury in los angeles ruled blurred lines the hit pop song by robin thicke and Pharell Williams sounds too much like an old marvin gaye song. They decided blurred lines crossed the copyright lines. It leans too heavily on the song got to give it up. They were ordered to pay 7. 3 million. It was also revealed during the trial that thicke and williams earned nearly 17 million from the song in total. Hey, hey, hey. Got played too much though. Coming up investors might be saying were in a tech bubble but the slow down is telling us a very different story. Well discuss that next. After the second worse day of the year for the dow, s p 500 futures now indicating a higher open. More on todays Market Action and a response from yesterdays sell off coming up after this break. Its one of the most Amazing Things we build and it doesnt even fly. We build it in classrooms and exhibit halls, mentoring tomorrows innovators. We build it raising roofs, preserving habitats and serving americas veterans. Every day, thousands of boeing volunteers help make their communities the best they can be. Building Something Better for all of us. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. U. S. Futures indicate a positive open after the s p and the dow wipe out all of this years gains. Brent rising after a fall in u. S. Crude inventories. Euro hits a fresh 12 year low versus the dollar as the qe Program Kicks in. Central Bank President mario draghi says the reaction proves the asset Purchase Plan is working. Asset purchases are unconventional but not unorthodox. They are in fact orthodox and they are in the tool box for a reason. Banks on edge. The second round of stress tests are set to reveal which lenders made the grade. Univision is set for what could be one of the biggest media deals in years. Thank you for joining us here. Keep in mind we did see a major sell off on wall street yesterday. A lot of concerns around a potential rate hike as well as a stronger dollar. Both of those pack tos weighing on investor sentiment. The dow indicating a higher open in todays trade up about 64 points. Nasdaq up about 13. Despite the sell off in the u. S. Overnight european markets holding ground. Draghi talking about the positive impact on the economy as well as Financial Markets. Were looking at green pretty much across the screen here. The ftse 100 up up about 20 points. Up about 1. 3 for the german markets and the cac 40 with a gain of 76 points. European equities fairing well. The index already up about 15 so far this year. Now the currency market a big story here. It measures against a basket of currencies right now up about three tenths of a percent and did strengthen yesterday as well up about 1 . So far over the past month we should show you that the dollar index is gaining about 4. 5 . This has major implications on merging market currencies. It does. Lets have a look at the currencies. Some are suffering over the last few weeks. That is at a fresh 13 year low. We have the mexican peso touching fresh all time lows. The Rate Decision coming tomorrow. It bounced back today and yesterday it had a fresh 17 year low. Why is that important . Well the last time it was in and around these levels was the Asian Financial crisis and the stronger dollar raising fear toosz whether were heading for a similar situation. Things were very different from 1998. Id like to highlight, december last year, when the rouble was selling off so sharply they started drawing conclusions to the asian crisis. Will it prove to be short lived once again now . At the moment were in the heart of the storm the broader dollar index is what is hurting them rather than specific country stories. It wasnt just currencies and stocks in focus yesterday. Oil also getting hit hard on the back of that stronger dollar but today recovering just a bit brent crude trading flat. Some say its because of the data that came out overnight that could provide a boost to oil stocks and the price of oil in todays trade. U. S. Crude stock pil