tv Worldwide Exchange CNBC March 11, 2014 5:00am-6:01am EDT
bayou booyah! i'm jim cramer and i will see you tomorrow! hello. you're watching "worldwide exchange" and i'm ross westgate. today, the search for a missing malaysian airliner is still ongoing. >> not likely to be a member of any terrorist group. ukraine's acting president launches the national guard as
the latest diplomatic efforts falter. u.s. congress is set to launch a probe into general motors recall of nearly 1.6 million vehicles worldwide. plus, puerto rico will test investors appetites today as they sell $3 billion worth of bonds, the largest ever high yield debt deal. hello. warm welcome to today's "worldwide exchange." the mystery of a missing malaysia airline flight continues today with no signs of its disappearance. >> we are looking into four areas. one is hijacking, two sabotage,
three psychological problem of the crew and, four, personal problem among the crew. >> malaysian authorities have heard one of the men traveling on a stolen passport is iranian. officials say they believe he has no link to terrorist groups. cnbc's sri is n joining us this morning. >> they lay out these four areas of investigation. when they talk about personal problems amongst the crew and passengers, what are they alluding to? >> the police chief didn't really elaborate exactly, but he did say -- and i think that he was speculating on this -- is that there could be an element of insurance fraud possibly going on. but no certainty on that score. i mean, it's open to
speculation, really. it could be a suicide, it could be anything, it could be -- i think that's the association with the psychological problem. that's the inference i read, anyway. what is interesting is there are two individuals that boarded this aircraft with stolen passports. the first one you were talking about, he's a 19-year-old iranian man. he boarded the plane using a stolen passport. they did name him as puria mohamed tubet. his mother was waiting for him in frankfurt, germany. it doesn't look like he was a terror suspect at all. it was more likely that he was trying to migrate to germany. the authorities have been helping the malaysians with their inquiries. so in my mind, the focus now turns to the second individual. they did release a photograph of
him and they haven't named him, but he was the one who was using a stolen italian passport to board mh-370. let me stress that i don't think terror can be fully ruled out as a linkage here to mh-370. as you heard the malaysian police chief say earlier, there are four areas of inquiry that they are looking at. hijacking, sabotage, psychological problems and personal problems with the crew. this is what the police chief had to say regarding the iranian suspect. >> we have been checking his background.
we have also checked in with other -- on his profile. and we believe that he is not likely to be a member of any terrorist group. >> ross, there were some absolutely extraordinary themes here about just over an hour ago when the director general of the immigration department held up some screen grabs, some reproduced pictures. i think you have some of them on air, though. if you don't, this is one our producer took on my ipad. and it was nothing short of organized chaos. t it's much quieter now, of course, to try and photograph this individual who was using a stolen passport. what i want to stress here is it's important to get fixated on
the security perspective, but the search does continue for mh-370. so far, four days later since they disappeared off radar scopes, there is nothing, not a sled offest. that leaves the families of those passengers on 370, some of which are here, including the chinese families, in a terribly ago nighting position. the search does go on, though, but it is going to be a painful and painstaking process. ross. >> sri, thanks for that. interpol is about to hold a press conference in about an hour. we'll bring you all the news from that as it happens. ukraine's acting president has launched plans for a national guard, calling for volunteers to the new force.
u.s. secretary of state john kerry has postponed tentative plans to visit moscow to find a diplomatic solution. lavrov said the proposal by the white house is unacceptable. meanwhile, russia says it is drafting counterproposals to the u.s. plan for continue negotiation. russia meanwhile continues to strengthen their hold over the region. the former president, yanukovych, is due to hold a press conference in russia right now. they're waiting for that to happen. as far as u.s. equities are concerned, the s&p and the nasdaq pretty flat. right now, we are called higher by 0.25 points for the s&p, dow
is down over 3 points, the nasdaq up 1.5 points. european equities an hour and seven minutes into the trading day, ftse is down 6 points. the xetra dax stronger than expected data out of germany. the cac 40 is down, flat, as is the ftse mib, as well. check in on u.s. treasury yields. after that jump up posted jobs report from 2.73 to 2.82, just coming down a little bit. on the currency markets, not far away from where they were yesterday, remember, we hit that fresh 2 1/2 year high on friday of over 1.39.
the u.s./dollar, just over the 103 handle. sterling, 1 .6623. that's where we stand in european trade. li sixuan has the updates out of singapore. >> thank you for that, ross. china markets not able to hold on to their morning gains after the mild drain of 6.3 million from the system. modest gains on the shanghai composite. the shenzhen comp ended flat. elsewhere, cutting its yield on exports, the nikkei 225 still gained 0.7%. otherwise, in australia, a pullback in the business condition survey kept investors
cautious. the asx 200 ended on a flat note. as for individual stocks, china's construction and property stocks can rebound while valuations seemed to be attractive after the recent slide. yesterday, china merchants posted a 30% rise in contract signing sales from the first two months this year and its shares recouped some of the losses of yesterday. after yesterday's 10% slemp. that is a look out of asian markets. back to you, ross. >> sixuan, thank you for that. stateside, january wholesale is out at 10:00 a.m. eastern, forecasted to rise 0.5%. dick's sporting goods, american eagle reporting results before the open. after the bell, wall hear from caesars entertainment and veri ddz fone.
joining us for the first part of the show today, gina, co-founder of floebl. a lot going on in the world as ever. we have geopoliticics in the ukraine. concern about growth and china in japan. but at the same time, the s&p up near record highs, right? >> continues as if nothing is happening. >> is that justified? >> i don't think it's justified. part of that has to do with there's a lot of concern around weather and weather related macro data that's coming out. the markets are continuing in this space that is unjustified, if you ask me.
>> if you look at the rest of the world, that probably is the best place to put your money, right? because it's a relative game at the end of the day, right? >> perhaps and extremely high priced at this point. if you look at ee mirnlging markets, they can't be any cheaper. >> i would any say anything constant be any cheaper. >> certainly the baby has been thrown out with the bath water there. >> why do you say that? >> i think emerging markets do have positive sales growth company by company. as a whole, the market has come down. i think there's quite a bit more opportunity on a stock by stock basis in emerging markets than a whole would suggest right now. >> good to have you on. mark carney has said to be questioning about the bank's internal review in the manipulation in the foreign exchange market.
they're currently looking at whether the bank was well informed of the activities. they've been studying more than 15 global banks. >> he's going to be really influential, including andrew. he's going to be grilled. first he's going to be grilled on whatever happened to forward guidance. that was your flagship policy. then you'll be -- >> i thought he amended it. >> then he'll be asked about scotland and then mps are going to ask him the really tough questions about what happens with this fx remember, we see that the banks have finally emerged from a series of scandals. and last year it emerged that a bunch of traders have been
sharing client information. look, this was actually an open secret. as we said, 15 banks, 24 people have been suspended. one of them from the bank of england and we think that's going to be martin mallett. he's going to be asked that today. and the question is, the bank hasn't come clean, even though it's supposed to be. the new bank under carney with transparency, memberships were real that they could have been told as early as 2006 that this is what was happening in the marketplace. so if the market intelligence fails, what you said, the bank of england, and why did they passettely agree or condone or turn a blind eye to what is clearly manipulation? these are the questions facing the government today. >> thank you very much.
>> the questions on fx are expected to begin at 1300 cet. >> up next, more about the clues for missing flight 370 continue. we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com save you fifteen percent or more on car insurance.d everybody knows that. well, did you know pinocchio was a bad motivational speaker?
police say a man traveling on the malaysian plane with a stolen passport was iranian. gm is conduct ago probe of faulty switches. and puerto rico is having a bond sale. keep your eyes on developments in the ukraine. the former president yanukovych hold ago press conference right now in russia. he says he remains ukraine's president and can he is still commander in chief of the armed forces. he says soldiers will not obey what he describes as criminal orders. now, as you've heard some sense this morning there's an iranian national who has been traveling on the missing air
malaysian plane under a false passport. malaysian police have outlined four areas of investigation including hijacking and personal or psychiatric yolal issues among the staff. james, thank you for joining us. clearly for the family of those on the plane, this is a difficult time after four days of absolutely no idea what has happened. could it be different? >> it could be very different. our thoughts and prayers are with each of the families that are involved in malaysia 370. air france 447 happened nearly 4 1/2 years ago. it disappeared from crews altitude, disappeared into the ocean. they took some two years for the black boxes, which is an important safety issue, to be recovered. back then, we and the families were asking for live streaming data as a mart of their safety
to be upgraded back to base. then there wouldn't be this frantic search for the wreckage and the black boxes. there have been previous accidents where the aircraft took the crew's altitude and the black box was located eight months later. so it's not acceptable for the families who don't know what's going on and there could be a very simple technological improvement. >> how easy is it to have the live stream data? >> certainly. certain airlines have a live updates from the base. the families of this flight do want know what the air loin has. that's not acceptable. there should be more information available to the families and in beijing. >> it took them a while. there's a transponder with every
play that pings out the location. >> yes. >> which theoretically, in air france's case, it took them a while to find it. should we expect that there should be one surviving and transmitting from flight 370? >> there will be several in the aircraft, including the two black boxes that should enable the location of them. but when you don't know where the aircraft has come down, there's a large stretch of ocean that needs to be looked at. and then later in relation to air france. so, yeah, there should be a -- >> you just have to be within to, 30 miles of it on the ocean? >> certainly. >> and when you don't know where you're supposed to be searching, that's the problem? >> it is a problem. >> timely, this idea of what the airline holds and what it may or may not know, why would they not release -- if they do know more,
they have some data, why would they not release it as this stage, because it's incomplete? >> quite possibly. regrettably, it looks like we're looking at a search and recovery operation. but the airline should give whatever information it has, whether it's operational or related to potential criminal acts. >> thank you for that. still to come on the program, as puerto rico repairs to sell $3 billion in bonds, will it be enough to rescue the troubled u.s. territory finances? nor on that when we come back.
u.s. futures this morning are indicating a pretty flat start. it was a pretty flat close, really. the dow just down 34 points with the s&p and nasdaq going nowhere by monday's session. tease what the futures are indicating at the moment, as well. at the same time, puerto rico is expected to sell nearly $3 billion roughly worth of bonds today. the interest rates are considerably lower than many expected. the sale is one of the biggest ever of high yielding debt. reports suggest preliminary price documents on monday's show. the bonds are expected to sell in europe between 8.8 and 8.87%.
and it's thought the junk related u.s. territory would have to pay nearly 10% or higher given its weak finances and fears it may have to restructure debt in the future. gina sanchez is still with us. that tells us something, the pricing of the debt. >> absolutely. it tells us about the complacency that's going on generally in both the stock and the bond markets. i find it incredible. obviously, puerto rico's debt is pricing off the u.s. markets which actually have been incredibly contained. all said and done. you know, we've just been in a range bound all year. and if you look at -- >> that's 3% and we've done, you know, nothing but trend lower than that. >> exactly. well, yeah, we have. and then we pretty much hit a range once we went down. and a lot of that really had to do with the weather-related concerns. equities, the vix is actually quite benign at the moment. and so there is, i think, some
complacency -- >> complacency is also this enormous demand of pension funds or whatever for a return, right? you see that, the demand for spanish and italian papers, italian spread, the demand for that. corporate credit. >> absolutely. right. when you have equities where they are, you're not getting much of a dividend yield for that. the need for yield comes back into the picture. >> that will take us to a lot of places. also still to come, print aerps owner addresses the washington chamber of common ee depress today. will he succeed in a shake up of the sector? the sector?
this is "worldwide exchange." i'm ross westgate. the headlines today, the search for missing malaysian flight 270 widens. one of the passengers stole traveling on a stolen passport is likely not linked to terrorism. >> we believe he is not likely to be a member of any terrorist group. >> ukraine's acting president takes new military steps vowing to fight harshly separatism after viktor yanukovych says he
remains the country's president. u.s. tt barack obama is expected to launch a probe into gm's recall of 1.6 million vehicles worldwide. and the cash backed u.s. territory puerto rico looks to launch the highest number of bonds. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> good morning to you. if university just joined us in north america, welcome to the start of your global trading day. u.s. stocks closed fairley flat yesterday. the dow down nearly 40 points. the nasdaq and the s&p suspect didn't do a lot on the side of the break even line. that's what futures are indicating at the moment. s&p pretty much on fair value. about 2 points above it for the nasdaq and just 2 points above it, as well, for the dow. european equities fairley mixed and flat. the ftse 1 is 00 yesterday was down 23 points.
just off eight at the moment. we had very strong german export data today, up 2% in january. plunge in chinese exports for the month of february. import webs even more up. and the ft. if it is mib is up 0.1%. meanwhile, the mystery of the missing malaysian airlines flight continues into its fourth day with no clues as to the reasons for the disappearance. malaysian police have highlig highlighted one iranian passenger traveling on a false passport. we have been checking his background. we have -- we have also checked him with other police and -- on his profile. and we believe that he is not
likely to be a member of any terrorist group. >> the mystery of the missing malaysian airlines flight continues in his fourth day. meanwhile, no clues for the reasons for the disappearance. we'll bring you all the news from that as it happens. meanwhile, the ukrainian former president yanukovych has been holding a press conference today in russia. he says u.s. law prevents the united states from giving financial aid to illegitimate governments and that crimea is breaking away from the ukraine, but it's his opponent's fault. he says he will contest the u.s. financial aid, as well. meanwhile, the house energy and commerce committee reportedly will launch a probe and hearing into the jrl motors recall of nearly 1 is.6 million vehicles worldwide.
the recall has been linked to 13 deaths. "the wall street journal" says lawmakers will examine the slow response of gm and u.s. safety regulators. the committee chairman sponsored the last big piece of safety legislation sponsored by 2006. despite their investigation, gm up today 0.4% in current frankfurt trade. and the ceo sprint chairman mashie tsong says he's likely to add t-mobile. some make the comments on monday night. he says he has no fault with the agreement with t-mobile, but a deal would give sprint the scale needed to better compete with verizon and at&t. he's in washington to speak with the u.s. chamber of commerce today, but isn't expected to directly address the issue of
consolidation. t-mobile up 0.9%. joining us with his thoughts, ken smith and senior telecom analyst at mckworry securities in washington, d.c. kevin, good morning to you. >> morning. >> would u.s. authorities in siri, regardless of who might be at the forefront of this, allow the full players in mobile to become three? >> we think it's going to become difficult, but it is possible the deal will get through the regulators. we think that the -- the softbank and sprint will have to make the argument that, you know, because of the intense capital nature of the industry, for example, t-mobile's average subscriber is using about 3 gigabytes per month of data, up 50% year over year, that the cap ex and the spectrum needed and the capital investments needed to sustain these businesses is
just too much for a distant third and fourth player and that you ultimately will need that scale to be competitive against the two incumbents with their larger economies of scale and higher profitability. however, the competition and the local level of four players going at three, that's something the doj historically has taken a difficult stance with. and we think that focus on today is going to have to make an argument that either he's providing new competition in the fixed wire line broadband space by offering a wireless blonde band to the home and rural areas or that he's going to bring in a partner, i.e. company like dish or internet providers to come in and lease capacity on his network and provide a new fourth competitor in the market. that partner would be -- >> sorry, what's the -- >> partner would be critical to
get the deal done. >> sorry. what's interesting is his comments on why he thinks they should merge. he has been quoted as saying every time i make a business trip to the u.s., i'm reminded how terrible connections are there and the u.s. is one of the highest mobile. basically, he's saying the merger is the only way to raise u.s. broad backhand mobile network to the level of its counterparts in europe and japan. what do you think of that? >> well, you know, as i said, the usage is very taxing on the network. and at&t verizon in particular in the major metropolitan areas are constrained by lack of spectrum. if usage continues to grow, ear going to see more bottleneckes and a slow down on speed and service quality for all of the companies. yes, i think softbank is in a position with its extensive 2.5 gigahertz spectrum to offer the best speeds and network quality in the market over a two to three-year time frame. and the question is, you know,
will they have the financial resources and the scale with t-mo to get that done? will they be able to do it on their own? i think they can, but it's going to be harder for them without the additional subscribers and scale from t-mobile. >> kevin, dish has actually -- you've mentioned dish just a minute ago. dish has been actively looking for a way to get sort of another provider for broad backhand. do you think that that's a possibility coming into this deal? >> well, there's a trial between sprint and dish, looking at wireless broadband for the home. we think that, you know, softbank's strategy in japan is to focus on the top urban centers with a very dense network, small cell network delivering high speeds in areas where the competitors have limited capacity. so we think that sprint should
focus on the major cities in the u.s. and allow some of the rural areas to be built out by a partner, such as dish, or one of the internet companies. and so that would reduce the cap export for sprint overall. it would increase their -- improve their time to market, which is critical here in this competitive environment and allow others with a more rural presence to build out those regions on their own. >> kevin, thanks for that. kevin smith is from mcquarry securities. gina, you travel a lot. do you notice a different in the connectivity between the u.s. and europe? >> it depends, but definitely it is a lot different in the u.s. although it's a very counterintuitive argument that xuer competitors will make it better. but yes, there is a difference. >> okay. today at 9:00 a.m. eastern, cnbc's david faber interviews
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with a stolen pad passport was iranian. general motors recalled 1.6 million vehicles due to faulty ignition switches. and puerto rico looks to sell 3.6 million of bonds in an attempt to avoid default. >> the mystery of the missing malaysian airlines flight continues with no clues into its disappearance. sri has the latest for us from kuala lumpur. >> thanks, ross. we got some clarity on the issue of stolen passports. there were two passengers aboard this mh-370 using stolen passports, an italian one and an austrian one. in the last two hours, what we learned from the police authorities here is that one of the holders of those stolen
passports was an iranian national 19-year-old man called puri nomahamed nurab. they have ruled him out as having any link wes any terrorist group. in all likelihood, he's trying to migrate to germany. frankfurt was his ultimate destination where his mother was waiting for him as she was aware that he was using a stolen passport and she has been cooperating and talking to the malaysian authorities and helping them with their inquiries as are the iranian authorities, too. there is the issue of that second passport holder. there was an image released of him, as well. he -- using the --. >> right. unfortunately we've lost the line to sri. just a reminder, interpol is due to hold a press conference in b about 15 minutes about the stolen passport. we'll try and reconnect with
sri, as well. the colder winter weather in north american business production in ukraine will hurt its first quarter results. freezing weather has delayed the start of planting season. analysts had been expecting a dupont profit of $1.6 billion of revenue. shares down 1% in after hours. hedge fund mobile activist investor bill ackman will renew his attack on herbalife today. ackman, who has taken a $1 billion short position on herbalife has been calling on regulators to probe the company's distribution model, which he says is a pyramid scheme. herbalife has vehemently denied ackman's claims. his latest volley comes months after chinese regulators launched a probe into the operations of productsmaker new
skin which operates a similar business model. and the u.s. state of colorado has raked in a lot of green from the legal sales of marijuana. the state cashed in $3.5 million in taxes and fees in january, 2.1 of which came from the sale of recreational and the rest of the tax revenue came from medical marijuana. the status 160 licensed recreational marijuana stores. still to come on the program, as puerto rico prepare toes sell some $3 billion in bonds, will it be enough to rescue the troubled u.s. territories finances?
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european equities have been mixed. the ftse 100 off 0.3%. flat for the xetra dax. very strong export and import data for january for the month of january. the cac 40 is off 0.3% and the ftse mib is off 0.2%. we have january wholesale trade out at 10:00 armg a.m. eastern. a pair of retailers, dick's sporting goods and american eagle report results before the bell. after the close, we'll hear from caesars entertainment and verifone. john watson will be on closing bell in the states today for an exclusive interview at 4:00 p.m. eastern. and as far as u.s. futures are concerned, we just dipped down in the last half hour. the dow is about three points below fair value and the nasdaq is around 11 point fair value
and the s&p down around 2 points below fair value. and puerto rico is expected to come to market today aiming to sell around $3 billion in bonds in an effort to inject new life into the ireland's troubled economy. seem ma mody is in the states with all the details. sy, seema. >> hi, ross. that's right. puerto rico is expected to sell those bonds today at interest rates far lower than investors had thought. and reports say preliminary pricing data circulated on monday show the bonds will be offered in a single 20-year maturity are yields ranging from 8.6 to 8.88%. moody's, s&p and fitch all cut puerto rico to junk status last month. the island has about $70 billion in outstanding debt and has long struggled with high unemployment, chronic deficits and growth that's been slowing
since 2006. hedge funds are expected to dominate the sales today with many traditional muni bonds shut out on restrictions. a draft document released last week shows the bonds will be sold in denominations starting at $100,000. a level that would exclude most individual investors. analysts say lower yields are being driven by several factors, including its budget cap, and the general sense of relief that it has access to the debt market. just last week, the government hired a unit of a well known u.s. restructuring firm, a possible signal it may be weighing an overhaul of its debt load. patriotic's treasury secretary added an unusual revision to the bond issue allowing any disputes to be settled in new york. puerto rico cannot file for bankruptcy under any existing
chapter of the federal bankruptcy code. but for all those concerns, puerto rico's bonds have rallied in the secondary market with yields falling from 9% to 7.5%. now, the risks also don't appear to be scaring off potential investors. reports say the backhand deal may be as much as three times oversubscribed. something to watch, ross. back to you. >> thanks for that, seem ma. we will watch that, certainly. have a good day. now, the t chicago fed president charles evans says the fed will continue to trim its monthly asset purchases at a $10 billion pace. he says the labor market should inform new rates guidance for quite some time. joining us from new york with his view, mcneal curry from merrill lynch. good to see you. we've been trading in quite a range, really, since the beginning of the year. when are we going to break out of it? >> even further back than the beginning of the year, right?
we know since late summer we've been stuck to ten-year yields between 250 1k3 the 3%. when we break out of this range, it's probably some time. but even then, on a short-term basis, that sell-off looks to be tiring a bit. so range trading is likely to be the name of the game over the course, probably the next couple of weeks going forward, as well. so range conditions should persist. >> yeah. what would change it? because we're now set -- it looks like we're now set with the pace of tapering and it will probably wrap up. but it's hard to see that changing at the moment. we did obviously get a little stock higher in wage in the latest jobs report, but maybe not enough to shake us out, either. >> well, yeah, that's a really good question. i mean, i think if you look at global asset prices around the world from across the asset class description, certainly
equity ves reversed to their weakness from earlier in the year with the s&p pushing decently to the top side via yields haven't been able to shake out. we've seen a bit of a rally in commodity markets. but now that's starting to come under pressure. so the inflation issue doesn't seem to be a catalyst for now. i think it remains to be seen what's the catalyst. one thing i think worth pointing out is that seasonals over the course of the next few months for rates and seasonals for equities should try to push yields higher, as well. the seasonals are bearish for treasuries and bullish for equities and ergo risk assets. so you would think there would be upside pressure. but was going to get us through 3% in the ten-year space, i think we have to wait and see, frankly. >> yeah. what happens to the -- i mean,
you would expect we would get a steeper curve at some point. >> sure. and on a shorter term basis, we should get a cheaper curve. it does look set up to probably make a push up towards about 225, 223 basis points. and, you know, on a technical basis, if you look at the bond, it's 30-year yields can effectively take out 376 areas, you should get momentum selling on the back of that break and that could push the curve steeper. but within the context of this range, i don't see the steepening becoming persistent by any stretch of the imagination. in fact, if you look at the long-term chart, the trajectory is flattening. it's within one that's been in the works for the past couple of years. but definitely what we've done since 2011 in the curve using 530 as a proxy suggested ultimately we should probably resolve flatter in the longer term. >> yeah. and just as we go through technicals of the fed just buying less every month, what
indications have you got about demand just at auction? >> well, i'm taking a step back. definitely, you know, the trajectory for rates, if you think about what we've done since july 2012, is higher, right? we have in a bear trend for treasuries. so in the aggregate, you would think as the demand decipitates from the sector, that would push yields to the top side. that's gone the longer way on the treasury market in the longer term. >> good to see you. thanks for joining us from merrill lynch. now, if you're watching in the u.s. or asia, that's it for today's show. don't forget, u.s., of course "squawk box" is coming up next for you because the u.s. has moved down sometimes a little earlier for us. for viewers in europe, still to come, mark carney testifying in london. we will bring you the details on
good morning. the search widens for malaysia flight 370. details emerge about one of the passengers carrying a stolen passport. congress launching an investigation into how gm and federal regulators responded to numerous complaints over the years about ignition switch problems and bill ackman, ready to launch another attack against herbalife. it is tuesday, march 11th, 2014, and "squawk box" begins right now.
good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew is off today. we start this morning with a developing story. the search for malaysia airlines flight 370 is widening three days after the boeing 777 went missing just one hour into the flight. one development overnight, one of the two men traveling with the stolen passport is believed to be an iranian national who was trying to seek asylum. the story has been developing throughout this and we will be checking in in just a little bit. we've been watching to see what happens with this and to this point, again, there are more questions than there are answers. we'll have a report from quala lumpur coming up in just a few minutes. a mystery businessman, mr. ali, who is supposedly iranian and supposedly paid cash for the tickets of both the guys is what is being reported