tv Worldwide Exchange CNBC March 10, 2014 5:00am-6:01am EDT
all right. leaving it here. going right to the bayou where i hope to see you monday. i think it'll be one of our best shows ever. ever! i always like to say there's a bull market somewhere, i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you on the rig monday! hello. you're watching "worldwide exchange." i'm ross westgate. the headlines from around the globe. the search continues. malaysian investigators say all possibilities are being looked at as officials continue to look for debris. >> we are looking at every angle. we are looking at every aspect of what could have happened on this ill-fated aircraft on this morning of saturday. disappointed trade data from china sends markets tumbling in shanghai as markets come in below expectations. relentless. that's how germany describes
stocks in the ukraine in the call between angela merkel and the president. this following pro and anti--russian ral lies in kiev. and the biggest banana producer. chiquita is merging to create a billion-dollar fruit giant. you're watching "worldwide exchange." bringing you business news from around the globe. hello and welcome to the first "worldwide exchange" of the week. and for those of you in the u.s. and asia, for the next three weeks, you'll only be seeing one hour of the good stuff as the u.s. has now switched to daylight savings. you used to be able to see the two-hour program, but good morning to everybody in north america if you are just joining us. we'll start your global trading week.
the leading story today is the continuing search for clues on the disappearance of malaysia air flight 370. in the last few minutes, the vietnamese rescue team investigating reports of a yellow object floating out at sea have said it is not a plane life raft. this is investigators that still have not found any parts of the malaysian plane missing en route from kuala lumpur to beijing on saturday. they say all possibilities are being investigated. >> there are many theories that have been said in the media. there are many experts around the world that are using their know-how and knowledge about what could happen, what has happened. and as far as we are concerned, we are equal ly --
>> we are joined for more. details are very thin on the ground, what is happening there right now? >> they are. well, needless to say, ross, i'm sure you know this to yourself, this is a human tragedy. and this is a story that's resonating very deeply in china. and many of the families and the relatives of the chinese nationals on board mh-370 are very, very hangry and upset at what they feel is a lack of cooperation, lack of transparency from the chinese authorities and the government. bear in mind, also, that more than half of the passengers on the flight are chinese nationals. so what we understand now from a press briefing that we just heard from the acting transport minister is that chinese official delegation has now arrived in the capital of kuala lumpur and are assisting the authorities here on two counts. the first count, first and foremost, is to assist those
chinese families and relatives of those on mh-370 who are currently in china and are arriving here. and to help them and to give them more information. and the second track here is to -- for the chinese official delegation to help cooperate with official here's on the issue of stolen passports. so there's the security dimension here as well. the other issue we learned at this press conference is that the oil slicks that you've probably heard about, that some are saying could be linked back to mh-370, they are undergoing tests and analysis right now to determine whether there is a direct linkage. whether they did come from 370, but at this stage in time, those results are not yet available. so we are waiting for that. we're waiting to see if there is, in fact, any kind of linkage. in the meantime, ross, the search operations continue. they have been extended.
they have been intensified. and they involve at least nine countries, a lot of assets on the ground, naval forces, we are talking about 74 ships and aircraft combined in this search. but a lot of people are very staggered here, that despite all this 21st century technology, nothing really has turned up in terms of debris that they can reconstruct and determine what happened in the last moments of mh-370. but the search does continue, ross, back to you. >> sri, for now, thank you, in kuala lumpur. we have the aging manager at flight global, greg, it is extraordinary for all the search and rescue nothing has been found. does that suggest maybe that the plane was not on the intended flight path? there are other guests from cnbc that they have been looking in the wrong place. >> it's hard to tell where they are actually going to find debris. if the plane came apart, if
indeed it did come apart at a very high level, it will be a very wide debris field. whereas if it hit the ocean, it would be a very small debris field. nonetheless, you have to remember this happened -- i guess this is nearly three days ago. so the debris has had a lot of time to float around and disperse in the currents and wind of the south china sea. so they are looking for a needle in a hay stack in a very cluttered environment. >> something, clearly something unexpected happened. and anything we say is pure speculation, but it had to be catastrophic in nature to prevent the plane or the crew communicating it. what does that suggest to you? >> it's very difficult to speculate. it's going to be months if not years before we have any idea what happened. but it is extremely bizarre and baffling that there was no distress call and that they lost track of the transponder. it just -- the aircraft effectively disappeared. and that's very, very, very
unusual. >> we had these reports that the plane had -- was trying to turn back, have you got any more information about that? >> that's just a theory offered by the malaysian government so far, but it's obviously one they have to take seriously because they do have assets serarching n the straits quite a distance from the last known position of the aircraft. did it turn back, did it not turn back? it's obviously anyone's guess but something the authorities are taking seriously. >> as far as the plane is concerned, boeing said they are wondering what's going on, but the 777 is one of the safest planes in the sky today. >> i definitely agree with that. it's the backbone of the world's wide body fleet. and it's had an unblemished safety record since the introduction in 1995. only a few minor incidents including aseana last year, but that was pilot error, not the
aircraft. >> greg, good to speak to you, manager at flight manager in singapore. they have confirmed 20 of their employees were on flight 370. the spokesperson for freescale said the employees were mostly engineers working to make the company's chip facilities in china and kuala lumpur. they say it will definitely be a huge loss for the company. >> a boning 737 dreamline hit another snag. they discovered hair-line cracks on the wings of planes in production. boeing says none of the 122 dreamliners are affected. it says roughly 40 jets could have cracks taking one to two weeks to inspect and fix. separately, jl says the 787 flight from tokyo to san francisco made an emergency landing in hon lu lu on sunday due to a possible problem with the hydraulic system.
boeing's stock is down 3%. all right. let's bring you up to speed with u.s. futures after we saw last week the dow up .8% on the week, just up .2% on friday. post that u.s. jobs report, this is where we stand at the moment this morning. the dow is kind of -- six points above fair value. the s&p a record close on friday, fairly flat by tend, but up five out of seven sessions hitting fresh highs. futures for the s&p over here, that's up a percent. and the nasdaq has been up for the last five weeks. and it is currently around 4 to 5 points. it is forecast 149. we did see the unemployment rate tick up slightly with greater labor force participation. the ftse global 300 ahead of the u.s. open this morning is fairly flat. the ftse 100 last week was down
1.4% in contrast to u.s. equities. this is an hour and ten minutes into the trade. we'll flip it on for you to show you that. there you go. thank you very much. up 1.5%. the cac is up 1%. and the f strtse is up 1%. li sixuan is here with more. >> china markets took a beating today. the china composite tumbled almost 3% and the shenzhen tanked 3.5%. over in hong kong the hang seng index lost 1.7%. and that weakness in china also weighed on the rest of asia. and the nikkei lost 1.01%. and technology shares set the kospi lower 1% as well. australia stocks posted their biggest drop in five weeks with
the asx 200 ending lower by 1%. as for malaysia, shares hit a one-week low asthmalation airlines tumbled 4%, recouping most of the morning losses due to the flight mh-370 incident. minors in the region suffered due to the falling oil prices. metals in atlas tumbled by 10% in today's trade. meanwhile, copper futures dropped another 5%. daily limit to its lowest in more than four years after the dive last friday. so china's metals-related stocks also broadly weaker. in the tech base, they are joining with jd.com seen as a bid to take on bigger rival ali baba. you are looking at year-to-date performance as an upward trend with shares losing 2.2% today. that's a look at the asian markets. back to you, ross.
li sixuan, thank you for that. good morning to you, steven. >> good morning. >> first of all, you saw the chinese export data down 18% in february. forecasters say up nearly 7%. clearly they have an impact to look firmer, how do you read it? >> well, i think you have to be careful in reading it. any time you get readings, either for january or february near the chinese new year, they are subject to a lot of error. the january numbers seem to be way overstated. these numbers looked very weak and will take until march to understand where they are. you add the two together, they are somewhat weak, but be careful about reading the end of the world into it. >> yeah, there are some that say that we had inflated trade data in 2013, january and february in particular, so actually if that data was false, the compareson
doesn't work anyway. >> look, there's indications that china was importing more commodities than they were manufacturing products, manufacturing is flat all the isms are flatter, a bit down, yet commodity imports were going up. so they did have excess inventories and i think this is gearing the market a bit. but again, i think it's an issue, but i don't think -- i think things would be worse both in australia with the aussi dollar and globally if there was a sense that this was going to be traumatic. >> the aussie taking it on the chin down, 1.6% today, but it has rallied off the lows. what is your outlook for aussie dollar? it is stuck between domestic issues and chinese growth. >> i refer to the aussie as the
run-up currency. based on chinese growth and driven by manufacturing production, heavy industry, a lot of commodities demand, you know, it's clear from what the rba is saying from the numbers coming in this is no longer going to be the case. and the issue for australia is can they find enough demand outside of the commodities sector to grow at its potential growth, and the answer is yes, but the needs and exchange rate is much below 90. we are talking closer to 80 than for 90 for australia and aussie dollar. >> steven, stay there. we'll measure that jobs report from friday. more to come from you. also still to come, talking about commodities going bananas. a deal is ape for the biggest banana prirs. more on that as well right after this. you know, millions of people have saved with progressive, so i get invited to quite a few family gatherings.
heck, i saved judith here a fortune with discounts like safe driver, multi-car, paperless. you make a mighty fine missus, m'lady. i'm not saying mark's thrifty. let's just say, i saved him $519, and it certainly didn't go toward that ring. am i right? [ laughs ] [ dance music playing ] so visit progressive.com today. i call this one "the robox." sometimes they just drop in. always obvious. 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.
and a look ahead to the agenda today in the states. there's no economic data. we'll look for key reports later this week on retail sales inflation and consumer sentiment. the president charles plasser is in paris to speak next hour. and charles evans speaks about the economy this afternoon. urban outfitters reports before the open and mcdonald's is out with their february same store sales numbers. it was also five years ago today the current equity bull market in the u.s. began after the major indices hit multi-lows in march 2009 during the financial crisis. the s&p 500 plunged to 666 causing fear amongst most investors, but we've come an awful long way since then. steve englander is still with us from citi, steven, in the five-year period, where do you think we are now. post that jobs number on friday,
which you saw the euro pull back from the two-and-a-half year peak, what happens now? >> well, i think the friday number was important because the market had been buying into the view, not just with bad weather, even though everyone was talking about the weather, you take a look at where futures rates have been moving, what investors were expecting, the three-month rates to be at the end of 2015/2016. they have been moving down quite significantly over the last month or so. and so i think that even though everyone is talking about the weather, what was priced into the market was that the fed was going to be more dovish for an extended period. either because the economy was really weak or because the fed just was more dovish. and i think friday's number was a wake-up call. and the odds are that we're going to get a very good number in next month, in april, and so i think market is going to have to deal with the possibility of a fed that's pulling back liquidity more rapidly than they
have been thinking the last month or two, which will make it harder for equities, doesn't make it impossible, but it's not the environment we have been in the last five years. >> treasury was 2.7% and went up to 2.79 going through the european session. when you say they are going to pull liquidity faster than we thought, it wasn't the consensus to wrap this up by october, are you saying it will be quicker than that? >> possibly quicker than that, but it's also a question, and this is very much on the mind of the market, do we have as much labor market slack as the fed is saying? if you looked at the average earnings for production workers, it was up 2.5%, the highest in a couple years for total workers was up 2.2%. there's a fear in parts of the market that we just don't have that reserve army of the unemployed that the fed seems to see, and that as months go by we get numbers and we are going to find that basically we are
closer to full employment and that the fed will have to move quicker and more aggressively when the time comes. whether it's true or not is unclear, but visiting clients, that seems to be a very palpable fear among investors that the fed will tighten quicker than they are saying. >> okay. steven, stay there, i'll get one more view from you. also, still to come in a few moments, stories we are following, it's a bananas deal. the american banana producer chiquita is going to merge with another company to make the biggest banana firm. and a move is seen as a preemptive strike against antitrust concerns. this will bring a fully functioning network in 2015 to
u.s. futures are a slight tick higher after the s&p closed at a record on friday. the dow up .8% last week. and we keep our attention to what's happening in ukraine. angela merkel and her chinese counterparts both called for diplomatic solution. protests continued in kiev and crimea ahead of a planned referendum in crimea this weekend. jim maceda is joining us from moscow. that referendum, is that still on as far as we know? >> reporter: hi, ross. well, yes, we are six days away from the referendum to take place on crimea. and with the international monitors preventive for a third time from entering the peninsula over the weekend, it's pretty clear now that the final result of that vote will be to secede from ukraine and become part of russia, russian or pro-russian
troops continue to consolidate militarily over crimea. some 20,000 to 30,000 forces, that's two to three divisions now occupying almost a dozen ukrainian border guard posts according to you cranan sources. and along the stretch near crimea and ukraine proper, some reporters have seen russian troops or pro-russian troops laying land mine there is to make the point that crimea is de facto, no longer a part of ukraine. but here in moscow the kremlin is still existing, but it has no control over the pro-russian militias. it clearly supports them, however. putin still pushing the line that ethnic russians are under dire threat from what he calls extremist elements back in kiev. so crimea for all intensive purposes, ross, is russian. diplomacy, meanwhile, is trudging along trying to get traction hitting a wall. german chancellor angela merkel who has emerged as one of the
only western leaders that putin can trust, he thinks, and can turn to, he speaks good german, she speaks fluent russian, merkel said over the weekend as well that after another phone call with putin that, quote, he is relentless in his logic and his goal to take crimea back. according to analysts here, that would be the price the west must pay for russia's loss and putin's loss of influence in kiev. ross, back to you. >> jim, thank you for that. that's the latest from moscow. jim maceda there. steve is still with us, we saw the impact of the yukrainian crisis impact slightly, but are we going to get higher yields from the u.s. data? then what happens to the dollar, how supportive is that going to be? >> i think it will be pretty supportive for the dollar. i think when we were getting higher yields on optimism when it looks as if the ukraine crisis was going to be diffused, there was a risk positive event
when all the assets went up. if u.s. yields are going up because the market is beginning to be afraid the fed will tighten rates, that's not a risk positive. and it tends to be much more dollar positive, certainly against currencies like the yen, but also against currencies like aussie where you have the china hanging over it plus higher rates will be a negative. canada where canadian dollars also non-come pettive outside of commodities. so we would think it's a dollar positive. more ambiguous against the euro because a lot of people are trading the euro rate differentials against spain and italy in the u.s. it's been a relatively stable currency, but i think across, in general, it's a dollar positive event. >> steven, good to see you, thanks for that. have a good week. steven englander from citi, new york. still to come, the bull market turned 5 on sunday, but is it showing its age? we'll ask just how much further we think it can go.
pay my bill. phone: your account is already paid in full. oh, well in that case, back to vacation mode. ♪boots and pants and boots and pants♪ ♪and boots and pants and boots and pants♪ ♪and boots and pants... voice-enabled bill pay. just a tap away on the geico app. ♪ huh, 15 minutes could save you 15% or more on car insurance. yup, everybody knows that. well, did you know that some owls aren't that wise. don't forget about i'm having brunch with meagan tomorrow. who? seriously, you met her like three times. who? geico.
angle. we are looking at every aspect of what could happen on this ill-fated aircraft on this morning of saturday. >> disappointing trade data from china sends shares tumbling in shanghai as exports become in below expectations. relentless. that's how germany describes putin's start in ukraine in a call between angela merkel and the president. this follows pro and anti-russian rallies in crimea and kiev. and a deal has been inked for the biggest banana producer. chiquita is looking to become a billion dollar giant. >> you're watching "worldwide exchange" bringing you business news from around the globe. and if you have just tuned
in in north america, good morning. four hours is the distance between united states and europe, which is why we have started a little bit later, you might have thought, but it's because the u.s. clocks moved earlier than the european ones. u.s. equities up on the week, .2% on friday. the s&p had a record closing high. this morning caution potentially. we are just pretty much on fair value for the s&p. the nasdaq is five points above fair value. and the dow at the moment is also just around five points above fair value. this after, of course, u.s. equities celebrating five years since they hit the low. the s&p low was around 666. you can see -- down around a percent because the yen did
strength an little bit on the back of the weak data. the kospi down 1%. the shanghai down 3% on that data. australia is down .9%. the dax is up .20%. and the ftse is up 1%. the start of a brand new week, posted jobs data on friday. what are investors to do? we'll give you a recap of the thoughts we've already had. basically japan has been softs for some time. we think this exposes to yen weakness. the position very lightly held in the markets at the moment. so that combines with the rebound that we're getting in the u.s. data. we think argues very much for dollar/yen moving higher from a trade that's not so much a higher trade as others out there. we are much more comfortable
with the impact of policy rates on hold for a long period of time. hence they are switching from one to the other. they are committed to keeping rates on hold as they taper, which means that as the economy recovers, one would expect the longer yields rise in the u.s. faster than the front data. we are not seeing libya particularly coming back. ukraine is an issue for gas, lesser for crude. at the moment, it's more a probability to see it upwards than downwards and the market is beginning to realize that. some of the contrary we have had today, it is five years ago as well the current bull market for u.s. stocks began after major indices hit multi-year lows. it was march 9, 2009, during the financial crisis. so on that day the s&p 500 was down an intraday low 666 causing
fear amongst most investors, but our own mark haines felt the tide was turning and made this bold prediction. >> however, i'm going to step out on a limb here -- >> hold on, we have been waiting for this. >> i think we are at the bottom, i really do. >> he got it right. since hitting the low back in march of 2009, the s&p has nearly tripled, but the run-up has not treated all stocks equally. you can say the bull ran over some of them and kept going. domenick chu is taking a look at the companies left behind. >> reporter: if you bought an index mutual fund or etf, you would have done pretty well. but if you picked the wrong stock investments, it would be a very different story. >> for the last five years, basically all financial assets have appreciated. and the very few that have been left behind usually are left behind for a good reason. >> there are lots of reasons why some stocks grossly underperform the market.
and each story is a little different than the next. take personal computer giant hewlett-packard, for instance, consumers are shifting to using tablet computers and smartphones. hp is becoming less reliant on pcs and printers. that's one reason hp's stock is up 13% since the march 2009 lows. then there's best buy. the retailer specializes in selling not just computers and printers but televisions and appliances as well, but there's still competition from amazon.com. that stock is up just 4% in the last five years. and then there's the for-profit education stocks like apollo education that owns the university of fee in addition. there's been a lot of controversy about the types of educational programs offered and what the affordability is to students who attend. shares of apollo have lost a lot of the stock since 2009.
>> you need the right management teams in place, you need to have the right capital structure, and they have to have the right products and services. and when all three of those things come together, there can oftentimes be a turn-around that takes place. >> reporter: of course, the trick is figuring out if those or other trades really signal a buying opportunity. >> joining us from orlando, brian reynolds, chief market strategy at rosen blatt securities. it's been quite a run as we see, do you see any reasons why it will stop or are we just staying where we are? >> i think this credit boom that we are in that started five years ago, i think it's going to intensify. >> the credit boom, why? are we still seeing substantial demand for new issuers? >> last week was the fourth busiest week ever for issuance. investors were buying new corporate bonds left and right. and that's because our nation's
pensions need to make 7.5% in a sub-1% world. and you had me on a month ago just coming out of the correction that began in january. and when we come out of a correction, those funds that mimic john murray in long-term capital management, they tend to buy more aggressively. and we had that correction because people were worried that there would be a debt ceiling battle. once that battle was done, we've had to make up for lost time and would now -- investors are buying big institutions and corporate bonds as fast as they ever had leading to more buy-backs and more m&a in the stock market. >> credit cycles always end. as you say, they don't always end well, but this one seems to have a lot more gas in it before that happens. how much more? >> it does have -- it does have more gas in that, because the last cycle from 2003 to 2007, that ended after four years because the pensions ran out of money. so they know that this time around they want to have more
money, so they have been raising the assessments on the cities and towns that contribute to them. that helps to keep municipal gdp low, but it adds to a bigger credit boom because they want to make that 7.5% as long as they can. and buying all the corporate bonds puts tons of cash in a corporate balance sheet. and ceos use that cash to buy stock back to push their stock higher, and now that the debt ceiling's out of the way, now we're finding its opening up the markets to merge as an acquisition. we have seen a slew of deals in the last few weeks. and the funny thing is the bondholders of many of these acquiring companies are making small fortunes. and that leads to more aggressive behavior. >> yeah, you say as a result we're going to get financial engineering which you have talked about lifting stocks, whether it is m&a or buy-backs. equity investors are fighting the rally ever since, so if they are still fighting it, do you think this is all going to be
supportive of stocks? >> most equity, most professional equity investors have underperformed the last five years. they have not been believing in the stock bull market. the companies themselveses have been buying stock back, and now that we're going on to mergers, that's a whole norther level. this was started by comcast, your parent company. when they buy time warner cable, the bondholders of time warner made a fortune. their bonds were up five points, which is typically what you see a stock do, it was up five points in a day. and they had $25 billion in debt, so that was a significant thing. and since there were more -- since then there have been more deals done, and almost every deal the bondholders of an acquiring company have seen improvement in their bonds. and that tells us that not only stock investors but credit investors have been leaving money on the table. and when people realize they have been leafing money on the table, they intend to start to invest more aggressively in the years that follow.
>> brian, good to see you this morning. thank you for joining us. brian reynolds at rosenblack securities. the continuing search for clues in the disappearance of malaysia air flight 370. within the last couple of hours, the vietnamese rescue team saw an object floating out to sea said it is not a plane life raft. it comes as investors still have not found any parts of malaysia's plane that went missing from kuala lumpur to beijing early on saturday. they are stepping up investigation efforts and we are in beijing for more. eunice, a vast majority of the passengers on the plane were chinese, and their relatives seem to be rather upset with the reaction they've got from the chinese government. why? >> reporter: they have been very upset because they feel that the chinese government hasn't done enough for them. the relatives, at least some of the families here at this hotel,
are expecting to leave tonight to kuala lumpur. they expect then to be taken to the location of where the aircraft is and if it's found, but the vast majority of the people are still very reluctant to go. they have not been impressed at all. in fact, very angry with the way malaysia airlines has handled the communication here on the ground. and they said that they are concerned about the treatment they could receive once they leave this country for malaysia. they said they don't know the language there, they don't know the lay of the land, so that is one of their main concerns. however, that anger that has been felt by the relatives took a turn today where it was directed towards the chinese government. they had been saying that basically this disaster was coinciding with the national people's congress, which is a major event where an annual
parliamentary session, where the lawmakers come to town. and the people here have been saying the leadership statements haven't matched the action here on the ground. that the officials, they did not see any officials come to this hotel and express their condolences. however, later this afternoon some of the officials did arrive from the foreign ministry as a transport ministry and the civil aviation authority, and they were calling for com telling the people here they would support them as best as possible, still, though, the relatives challenged the authorities and when they asked more questions, the authorities quickly left. ross? >> thank you for that, eunice. that's the latest from beijing. for more on the missing malaysian jet, head to cnbc.com. still to come, google's unveiled plans for new ranges of wearable devices. we'll have all the details coming up. in my world, wall isn't a street...
...return on investment isn't the only return i'm looking forward to... for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal.
impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. with investment information, risks, fees and expenses predibut, manufacturings a prettin the united states do. means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done.
lemme just get this out of here. to go. unlike some places, we don't just change your oil. our oil offer comes with a four-tire rotation and a 27-point inspection. and everything looked great. actually, could you leave those in? sure. want me to run him through the car wash for you, too? no, no, i can't. and right now get acdelco professional durastop brake pads installed for only $99.95 or less per axle. chevy certified service. recap of the headline, the search continues asthmalation investigators find no clues to
the missing plane. and shock in the chinese trade data. and chiquita is merging to become the largest banana producer. brian mornahan got a bump in pay last year. his compensation rose 71%. bank of america's profit more than tripled last year and its stock rose 38%. u.s. safety regulators reportedly received 260 complaints over 11 years of gm vehicles suddenly turning off while driving but they declined to investigate the issue. gm which first learned of the faulty ignition switches in 2004 said the problem is now linked to 13 deaths. and is reported in more than 1.6
million cars worldwide. the national highway safety administration started to receive an average of complaints twice a month in 2003 but said there was no evidence to warrant an investigation. gm mailed out the first recall notices on friday. and william clay ford sr. died on sunday at the age of 88 after a bout with pneumonia. he was the last surviving grandson of henry ford and worked as an employee and board member for 57 years until his retirement in 2005. ford was the chairman of the design committee for 32 years and also chaired the finance committee. outside of the industry, ford was the chairman of the detroit lions franchise buying the team in 1963. and in tech news, google's android software pairs with the smartphone and now the tech giant is aiming to be the background of the next big thing, wearable devices.
seema moody is at hq with more details. >> that's right, ross. google is making plans known at the center of the tech world this week, that's the annual south by southwest conference in austin, texas. google executives who oversee android, chrome and gmail say the company will offer a software development kit based on the mobile operating system for makers of devices such as smart watches. now google plans to release its own smart watch which will be made by lg, but it also wants to help lay out a vision for other developers. google could follow a guide similar to what it does for mobile devices making android free to phone and tablet makers. that could help attract developers and bring users deeper into the ecosystem powered by android. checking shares of google, we are seeing it up just a fraction on the day. now spotify could be one step closer to an ipo, that's a headline in the tech base. the financial times reporting the streaming music service has a $200 million credit line from lenders including morgan
stanley. spot fi declines speculation on declaring the ipo, but the move to get a large credit facility and bankers willing to provide one may be interpreted as a sign to go public. twitter, facebook, zynga received financing ahead of their ipos. and last year spotify received $4 billion. it has 24 million active users, 6 million are paying subscribers. that's spotify. ross? >> thank you for that, seema. interesting you talk about google, there's backlash in san francisco banning them in bars and cafes as well. it's just an interesting thing going on. thank you for that, seema. there's a side panic in the willows bar that features a picture of the wearable computer with a slash over it. along with a message saying customers have expressed concerns of being recorded while enjoying themselves. we'll see what happens with that.
other news today, consulting with five media companies is putting the cars.com online listing on the auction block. the wall street journal says the group hhl bellow is seeking up to $3 billion. potential bidders could include private equity firms. last week classified venture sold its other apartments.com for $86$860 million. coming up, is the bull run going to roll on into a sixth straight year? we'll look ahead to today's session coming up.
the dow up .8%, up 2% on friday. paul chino is joining us, chief market strategist and top trader in chicago. bob, five years ago we hit the record low 666, what happens now as we keep hitting five out of the last seven sessions fresh record highs again? >> every record is a record high at this point, right? we are hearing a lot of things with the type of market we have, but i don't think the bull run is over. i'm going to join the course of everybody else that says this is going to be a little rougher of a run. i really believe we have turned the corner on interest rates, meaning the ten-year and 30-rate sector is going higher. and that happened on friday both technically and fundamentally. that concerns me for the housing sector, for the stocks that react to the housing sector. so i think with this sort of earnings multiple rally we've had, especially last year, it's
going to become a little worry some over the next few weeks. >> we saw the jump in yield before the debt drop to 2.82. it's slipped back since then, but unless we go above 3%, aren't we fairly comfortable with that? >> well, we are. we'll be comfortable at 3% as well from the standpoint that the earnings and the economy have to continue to grow. q-4 earnings in the rear-view mirror are 65%, just short of 65%. that needs to improve to get us comfortable above 3%. i've been saying since january, and i've been incorrect that 285 was going to be a low for yields, but i think we've made that turn now to reach for 285. and the markets will start to get nervous. the fed has very little control over the longer end of the yield sector. just the short end, they are not going to change their view on the short end. >> well, good to see you, thank you for that. viewers in asia and the u.s., you now get "squawk box." viewers in europe, "worldwide
good morning. the search for malaysia's flight continues, but so far few clues on what happened to the boeing 747 after takeoff. and the war of words over crimea heating up in washington and europe. and trade data in china sparks fears of a slowdown and world markets are lower. it is monday, march 10, 2014. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on
cnbc. i'm becky quick along with joe kernan. andrew is out today. we'll get to the markets and to the latest sabre rattling in ukraine in just a moment, but first the search continues for malaysia airlines flight 370. so far there are no science of the missing airliner carrying 227 passengers and 12 crew members. the flight went missing a few hours into its trip from kuala lumpur to beijing. after three days the only lead is an oil slick found 90 miles south of vietnam. search crews from eight different countries with dozens of planes and ships are scouring the gulf of thailand and the south china sea looking for the boeing 777. adding to the mysterious disappearing flight, two people were traveling with stolen passports. we'll have reports from beijing and kuala lumpur in a few moments. and vladimir putin says crimea has the right to