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00:00THEY HAVE THEIR EYE SPECS OUT, SEARCHING FOR A NEW ALPINE HIGH. JON FERRO JOINS US FROM EUROPE. WHO'S AFRAID OF A LITTLE VAROUFAKIS? JON: NOBODY. USED IT YET -- YOU STRIP OUT THE NEWS, IT IS NEWS, YES, BUT LOOK AT THE 10 BEST PERFORMING EQUITY MARKETS IN THE WORLD YEAR TO DATE -- THEY ARE ALL IN COUNTRIES WHERE THE CENTRAL BANK HAS TOPPED OR EASED MONETARY POLICY, AND THE MAJORITY OF THEM ARE IN EUROPE. YOU COULD HAVE BLANKED OUT EVERYTHING YOU DO WITH GREECE AND UKRAINE AND JUST FOCUS ON WAS CENTRAL BANKS ARE DOING, AND YOU WOULD HAVE FOUND A MARKET. BRENDAN: JON, THE DEEP IRONY OF THIS IS THE COUNTRY THAT LEAST WANTED A RATE CUT FROM THE ECB OR AN EASING IS THE ONE THAT IS BENEFITING THE MOST WITH THIS EXPORT -- GERMANY. JON: ABSOLUTELY, AND THE DAX IS MADE UP OF SOME BIG INTERNATIONAL COMPANIES, SOME BIG EXPORTERS THAT ARE GOING TO BENEFIT FROM THAT WEAKER EURO. THAT IS EXACTLY WHAT WE SEE PLAYING OUT THROUGH THE MARKET. TOM: EVEN HARRIS WITH US FROM BANK OF AMERICA MERRILL LYNCH AS WELL. SOME SAY PARITY ON EURO. DO WE NEED TO GET TO PARITY ON EVER WEAKER EURO BY SOME 11% OR 12%? OR EVEN HALFWAY THERE IS SUCH A BOOM TO GERMANY, ISN'T IT? ETHAN: EUROPE IS ALREADY BENEFITING A LOT FROM THE WEAKNESS IN THE CURRENCY. WE HAVE BEEN WAITING FOR THIS. THIS IS A REGION THAT HAS SERIOUS ECONOMIC TROUBLES AND SHOULD HAVE A VERY WEAK. CURRENCY AT THIS POINT, THE CURRENCY IS PROBABLY STABILIZE A LITTLE BIT BECAUSE IT HAS ADAPTED TO THE QUANTITATIVE EASING COMING OUT OF THE ECB, BUT EUROPE NEEDS THE WEEK EXCHANGE RATE. TOM: JON, WHICH IS A, R FOUR AND A STRANGE ARTISTS OUT FRONT OF THIS DEBATE, OR ARE THEY CATCHING UP WITH THE VECTOR MOVING UP EVEN WEAKER IN EUROPE? JON: IT'S HAS BEEN A VERY CROWDED TRADE, JUST ABOUT EVERY CALL AND EVERYTHING WILL OUTLOOK WHETHER IT IS WALL STREET OR THE CITY OF LONDON WILL SELL THE EURO AND BY THE DOLLAR. FOR THE FIRST TWO MONTHS OF THE YEAR, THAT WAS THE RIGHT TRADE. THINGS HAVE SLOWED DOWN, STABILIZED SOMEWHAT. WE ARE LOOKING FOR A MOVE TO $1. BY THE END OF THE YEAR. 10 OLIVIA: BRANDON ASKED YOU WHO IS AFRAID OF VAROUFAKIS, WE ALSO HAVE TO ASK WHO IS AFRAID OF VLADIMIR PUTIN? MOSCOW UP 26 WHAT IS GOING ON? JON: I THINK PEOPLE ARE MAYBE A LITTLE MORE SETTLED WITH IT. I THINK THE MOVING HAS COME MUCH LOWER FROM THERE. HE DOMINATED RUSSIAN MARKET PERFORMED VERY WELL FOR OBVIOUS REASONS. I WOULD NOT LOOK TOO MUCH INTO THOSE MOVES, OLIVIA. THE RISK AROUND RUSSIA IS NO CLEAR. THEY CUT THE JUNK BY TWO SIGNIFICANT RATING AGENCIES RIGHT NOW. IT IS NOT WORTH THE RISK. TOM: JON FERRO, THANK YOU SO MUCH. IN A CREDIT TO HIM, I STOLE THIS CHART YESTERDAY ON PORTABLE AND THE UNITED STATES. HE WILL GET A ROYALTY CHECK IN THE MAIL FROM "BLOOMBERG SURVEILLANCE." DR. HARRIS, IT IS SUCH A DISTORTION. PORTUGAL'S 10-YEAR YIELD AS THE SAME AS THE UNITED STATES' 10-YEAR YIELD. THAT IS NOT ANY TEXTBOOKS. ETHAN: THE EUROPEAN CENTRAL BANK HAS BASICALLY STEPPED IN AND RING FENCED THE DEBT MARKETS AND PROTECTED THEM AGAINST THE RISK FACTORS INCLUDING UKRAINE AND GREECE. ONE OF THE GREAT BENEFITS OF THE ECB ACTING, WHICH I AGREE WITH WHAT THE ECB HAS DONE, HAS BEEN TO CREATE VERY LOW INTEREST RATE AND STABLE MARKETS IN THE PERIPHERIES. TOM: CAN YOU PREDICT A BOOM ECONOMY FOR EUROPE, 2%, 3% GDP? ETHAN: NO, WHAT THEY'RE DOING IS BUYING TIME FOR SOME GROWTH, SOME HEALING OF THE BANKING SYSTEM. THERE IS NO BOOM IN EUROPE. IT IS MORE KIND OF PREVENT A DOWNSIDE. BRENDAN: I HAVE A QUESTION THAT WAS E-MAILED TO ME FROM NEIL DUTTA AT RENAISSANCE -- HOW MANY JOB NUMBERS WILL IT TAKE FOR ETHAN TO CHANGE HIS VIEWS ON THE FED? BRENDAN: NEIL USED TO WORK FOR ME, SO THIS IS A BIT OF A POINTED QUESTION HERE -- ETHAN: NEIL USED TO WORK FOR ME, SO THIS IS A BIT OF A POINTED QUESTION HERE. THE LAST TWO MONTHS HAVE BEEN OVER 300,000 ON AVERAGE, SO ON THAT BASIS, THE FED SHOULD ALREADY BE HIKING INTEREST RATES.

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European Equities Ignore Greece, Ukraine Concerns

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