tv Worldwide Exchange CNBC April 17, 2014 4:00am-6:01am EDT
this is "worldwide exchange," i'm ross westgate. the headlines today, we're in geneva where talks build for the last chance for peace. speaki speaking, the ukrainian foreign minister is hopeful. >> the expectation we'll find a good solution, that we all will benefit from. this expectation is the de-escalation on the ground. >> the stronger euro takes its toll on corporate earnings. the impact of the currency weighing on profits. drinking problems, diageo
and cointreau sinks to the bottom. >> put a stop to the market rally state side. google and ibm disappoint with earnings after the bell. future equities lower following three days of gains. you're watching "worldwide exchange," bringing you business news from around the globe. >> hello and a warm welcome to today's edition of "worldwide exchange." the final one before the easter break. you can see here, stocks higher on the dow jones stock 600, round about 6-4 advancers outpace decliners. let's tell you what is coming up
on the program. we'll look forward to the easter weekend. we'll crack the mystery of one easter egg worth more than $30 million. no yolk. make sure you stay tuned for that. and weibo, we'll ask why investors are shying away. today also is a special day, our 25th birthday here at cnbc. we take you back to april 1989 throughout today's show. 25 years, folks, of the good stuff. so here we are, stocks fixer despite that futures were suggesting we might open down in the states. this morning, this is where we stand, currently just down. we're flat for the xetra dax as for the cac current and the ftse
mib down 0.25%. let's recap the asian markets. no sri today. shang the hang seng is up marginally and the nikkei ended fairly flat as well. inconclusive session. bond rates, i saw treasury yields between 2.6 and 2.64% in the last four sessions. we're still there with the ten-year yield as well. in the currency markets, the yen 102.37, we're just below 102 at the moment. euro/dollar, 1.38 handing that we've had. ukraine's interior minister says three pro-russia rebels have been killed during a crackdown on separatists in the east of the country. this is after separatists rebels seized military vehicles, whilst
ukrainian troops were met by angry crowds in a number of towns. an estimated 40,000 russian troops remain close to the border. now, foreign ministers have arrived for crunch talks in geneva as the leaders russia, ukraine, the u.s. and the eu seek a deal which will deescalate tensions. steve is in geneva. he joins us with his thoughts about what may or may not be achieved. steve? >> yes, absolutely, ross. the good news is, this is the first time since late february, since the start of the present ukrainian crisis that the ukrainian foreign minister and the russian for example lavrov have met face to face. the russian government doesn't even recognize the legitimacy of the kiev government. that's one of the big steps forward. as we've been hearing, the
prospects of meaningful breakthroughs this time around when the parties remain so far apa apart, limited. we caught an exclusive terview last night. >> the expectation that we will find a good solution, that we all will benefit from and this expectation is the de-escalation on the ground. >> given that russia says your government is acting criminally and you say that the russians are sponsoring terrorist -- >> it was supposed to be one question. >> -- terrorist activity in the country, do you feel it's impossible to get a breakthrough? >> it's always possible if there is a will. >> of course the backdrop to this is the increasing violence, more deaths overnight in the east and south of ukraine as well. as a backdrop, the west and ukraine is saying the kiev government, that this is orchestrated by russian, russian special forces, russian terrorism activity even as well.
but of course a meeting on the ground disputing unequivocally that it is one side or another who is creating this violence on the ground. put that point to him, asked him how did he know for sure it was russians pulling the strings? >> if you can look on the crimea story, you'll see the same scenario that's happening in eastern ukraine. we also didn't think it's russians occupying step by step the crime ecrimean peninsula. our approach is that it's better to security services and intelligence to talk to each other and exchange the information about this. >> he's been talking about the need for de-escalation on the tension on the ground for meaningful talks to get under
way. strong rhetoric from putin in the last 24 hours, blaming once again, fairly and squarely, the kiev government. how far are the two sides apart? they're very far apart. the russians want neutrality politically and demilitarily for any ukraine government. they do not want any president to have a strong mandate over the whole of the country. what they would like, is a compliant buffer state between the best and russia's own borders. what they don't want is a strong ukraine, an eu member and potential nato member as well. ukrainians have been saying they want a cease-fire in terms of the activity from russian-backed forces in the east of their country. they want the russian forces on the other side of the border to put away. they only say they're conducting military exercises they want the russians to move out of crimea.
they seem a long way away. what happens next if the talks fail? potentially we could have sanctions from the obama administration as early as this week. people have been talking about increased sanctions from friday. from the eu part as well. there's been a lot of talk about the tepid response so far from the eu. it seems like they are split at a corporate level as well. we must not forget the energy spectrum is weak as far as europe is concerned getting round about 30% of its gas from russia. what happens in phase three in the eu response, if there's no progress here, that may be seen. a lot to play for here in geneva. >> thank you very much. russia's vladimir putin is saying kiev did not try to establish dialogue with the russian-speaking population in eastern ukraine. he says sending armed forces to
eastern ukraine was another serious crime by kiev. this as he is holding his annual live call-in show, this is where viewers can submit questions. crimea very much a part of that topic. proof of bond yields are sitting around multiyear lows. is the situation in ukraine -- senior economist joining us with her thoughts. look, certainly ukraine is helping treasury yields. what's it doing for peripheral debt in europe? >> i think it's a combination of factors at the moment are driving gilts down in the core countries like germany or the u.s., if we want to consider a core market, definitely this is coming from the geopolitical insurgents. it is probably the main driver. don't forget that in europe we also have talks about the
possibility that the ecb could start with qe and one of the options could be buying bonds in the core countries, which respect a certain level of rating. these are the two factors that are driving this down. on the other hand you have improvement for the periphery, that is like supporting it. the perception of corporate governance within the eurozone. it helps countries outperform in a way. on the other hand, it's the secondary effects in a possible qe from the ecb could have on the periphery. the ecb could buy germany or
french bonds but on the other hand, pushing their heels down would drive it indirectly, investors to buy more periphery for the spreads. it's not like it's such a straightforward fact. it could be that, you know, if the ecb decides to go and start their quantitative easing process, at some point spreads will widen for a bit. >> how much do you rate the chances of the ecb launching qe at some point? >> i think everything is data dependent. the ecb is watching the situation very carefully. they know that inflation or deflation are quite elevated. they haven't changed to inflation risks yet. they need to take their decisions step by step. they cannot go on the market and, you know, buy massively without preparing the situation. they're talking about that.
already they're seeing some effects on that. i would say 30% of probability as things are standing at the moment. obviously like lower inflation, tougher april, may, would increase probability quite a lot. >> they keep talking about this. what will be the key print? if we get, maybe not the april print but the may in print of inflation, is may inflation become a factor? >> probably may and june, given that in june we also have the revision of their quarterly projections. >> yes. >> they need to, like push their projections for inflation much lower for up to 2016. with the march projections we saw, draghi, like i also explained, inflation would be moving towards the 2%.
if they have to revise these targets much lower, let's say 1.3%, that would be the trigger for quantitative easing. they still can move like rates down. they can do something on the s&p. they can fine tune their movements. but qe would be like the main tool they need to use to avoid deflation to materialize. >> we have more comments from vladimir putin, his live tv show is currently going on. he says that international talks in geneva are very important. and he says that claims that russian forces are present in east ukraine are rubbish. we'll keep more comments coming out from that once we continue the discussions. meanwhile, today's a very special day here at cnbc. yes, it is our 25th birthday. and before we head to break, this is how our forecast looked
back in 1989. good morning, welcome to cnbc. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run. geico. fifteen minutes could save you fifteen percent or more.
you're watching "worldwide exchange." google's first quarter profit rose 3%, adjusted for the company stock split and the pending sale of motorola. revenues rose 19%. most figures beat forecasts. pay clicks rose 2 %. analysts expected more. the average cost per click was down 9%, since mobile ads are becoming a bigger part of the company's business. they say mobile ad prices would eventually catch up to those on deskstop pcs. ibm's first quarter profit fell 21%. but excluding various charges, revenues matched forecast.
ibm continues to struggle with falling demand for hardware and weaker demand from china and emerging markets. the company is still backing full-year earnings targets. ibm down 4% after hours. you can see another 4.4% in frankfurt. american express's first quarter profits were up 12%, beating forecasts as customers spent more in the u.s. economy and the company kept costs in check. revenues rose 4%, card spending jumped 7. amex is concentrating on attracting new customers. american express stock off 1% in frankfurt. and weibo has cut the size of its u.s. ipo selling 16.8 million, versus the originally planned 20 million. the firm priced shares at $17 each, raising $286 million and
valuing china's twitter-like service. they will trade under wbc. alibaba will own a third of woib after the ipo so they can get exposure via alibaba. fed chair janet yellen has warned markets over the possibility of consistently low inflation. yellen said even a recovering u.s. economy may not pull inflation back towards the federal reserve's 2% target. >> with inflation running at around 1%, at this point, as i mentioned, i think the risk is greater that we should be worrying about inflation undershooting our goal and getting inflation back up to 2%. >> so do her comments increase the probability of fed keeping rates lower for longer? we have chief strategist at ubs.
should we change the expectations over the last three or four weeks? after the fed meeting and two bouts of yellen comments? >> it's definitely created more problems for the dollar. investors, the market has generally been expecting this to be the year of the dollar as the fed moves toward hikes. but -- >> we're not talking about moving towards hikes this year. we're talking tapering. >> yes, yes. i think the tapering is a nonstory now. it's just assumed to go on and end. the focus was on the rate hikes. if it was next year, even earlier, that should presumably have an effect on the impact a lot earlier than that. the problem is, the fed is pushing those at least in rhetoric pushing those expectations back. and that means the environment remans a very low volatility environment which then the dollar becomes more attractive
as a funding currency for carrier. that's at the moment, the problem. >> we have no reason to understand why she said, at the first fed meeting she chaired, why she talked about six months of tapering beginning to rise. there's been in clarification to that. she said it, and then has sort of backed away from it implicitly. >> yes. i think all the communication ever since from her and from the core of the fed has the chance it really wasn't meant like it was taken by the market. and you know, looking back at the footage of that comment it's clear she was uncomfortable when she said it. yes, the markets came around from initially thinking it was quite significant to now thinking that it wasn't. >> so when does the dollar trade get going?
when does the euro -- the other -- when does the euro weaken against the dollar? there is clearly going to be a divergence in policy here. there's the spread between bunds and treasuries. at some point you think that might come into play. >> yes, that is what everybody is expecting and maybe there will come a point when people give up on that view. it can happen. often in fs markets you have pain trades going on for longer than people think. when everybody is throwing in the towel, you know, that's when it kind of happens. clearly it seems to take longer and, of course, the markets are very short lived. you can't really trade on a six-month year right now. >> there are no euro sellers as far as the european banks are concerned either. >> there's a lot of fundamental support for the euro, i would argue, be it on the external
side. current account, trade balances, very, very strong. there's ongoing deleveraging which is supportive for the currencies and obviously the ecb struggles to come up with something that would weaken the euro. they probably managed to cap it for now. >> can qe weaken much? >> there's different kinds of qe, but, yes, there is even the big balance sheet expansion, there is sovereign bond qe, might actually attract more capital and be supportive for the u.s. as well. >> if you do it, you could get more flow into equities, lower the spread against bunts. >> if you focus just on the euro, negative rates is probably more promising as it lowers the short-end view. >> that's what was said a couple weeks ago, that very point. >> yes. he regards this as conventional
policy. that's why they are more comfortable with it. yes, from a currency point of view, that would probably more have a bigger impact. even there the question is whether it's not just a one off measure because he can't escalate it. you do it once, maybe twice and that's it. >> good to see you. have a good easter. >> thank you very much. >> vladimir putin, the russian president has been doing a live q & a this morning. he's come out and said ukraine's decision to send armed forces into the eastern ukraine instead of trying to establish a dialogue with the russian speaking population was a grave crime. he says talks being held in geneva are important. that's where steve is. we'll hear more from him. they asked the government in kiev to sit down for talks with russian-speaking communities in the east of the country. he added that claims that russian forces were present was
rubbish. that is the live show. it's a call-in show where people get to ask him questions. i would presume they have been carefully selected, the people that ask the questions. i don't know for sure. meanwhile, hundreds still missing in wednesday's deadly ferry accident in south korea. they hunt for survivors. june yoon joins us with the latest from seoul. june? >> ross, it's been more than 32 hours since the ship has disappeared into the water. give you a quick background. a passenger ship carrying 475 people on board started sinking off south korea's southwest coast yesterday at 9:00 a.m. local. the passengers were mostly high school students on a school trip. rescue operations are still ongoing by the navy and the coast guard. it's been going on for more than 20 hours. unfortunately, weather conditions have gotten worse with the wind getting stronger in the area. under water rescue efforts have been suspended for the time being. we're still getting breaking
news on the details but so far, the latest numbers that we have from the central government led central agency is 475 passengers were on board. of these, 179 passengers have been rescued and there have been nine reported deaths. of these five people have been identified three students, one crew member and one teacher. the remanning 287 passengers are still missing and unaccounted for. in terms of the cause of the accident, the coast guard has given us a preliminary account based on investigations so far and from reports by surviving crew members and what they see as a possible cause is that the ship did not follow the recommended path and in this process, instead of taking a slower turn, the ship is said to have taken a much sharper turn nine minutes before the ship gave out the distress signal. the coast guard is i sag the change in path and the sharp turn could have caused the ship to have lost balance. that's what we have so far.
in terms of the missing passengers, there are still reports that there is a possibility there's some air left in some of the cabins but, again, that's reports that we're getting in the meantime while we're waiting for more news on the rescue operations. that's what we have so far, ross, back to you. >> june, thank you. we'll have more updates throughout the show. also still to come, we speak to michelle landell, exclusively from paris.
. you're watching "worldwide exchange," bringing you business news from around the globe. >> and the headlines from around the globe, we're in geneva where talks build as the last chance for peace following casualties in the eastern part of ukraine. speaking before his first face-to-face meeting with his russian counterpart, the ukrainian foreign minister was hopeful. >> the expectation that we will find a good solution, that we all will benefit from. and this expectation is the de-escalation on the ground. >> vladimir putin meanwhile says claims of russian forces in eastern ukraine are nonsense. and has called on key telephone release separatist leaders from prison immediately.
the strong euro takes its toll on corporate earnings. shares trade lower as the impact of the single currency weighs on profits. could big tech put a stop to the market rally. both google and ibm opening lower. futures set to open lower after three days of solid gains. the open equities have been fairly flat this morning with the ftse 100 meandered down around 0.2. flat for the cac current, the ftse off 0.25%. bond yields pretty much where you were yesterday. gilt yields 2.65 which is where we were this time yesterday as well. even posted good unemployment numbers. on the currency markets, the yen just bounced off a one-week low,
hitting 1.327 yesterday. away from that, it's a special day here at cnbc. yes, it is our 25th birthday. we've been on air since april 1989. take a look at these pictures from our first days of broadcasting and setup operation. i love these graphics. that's the original "squawk box" title. we take a look back at what life was like. there is mark haines who introduced the very first "squawk box." this is what the top grossing movies were back then, "batman," "indiana jones & the last crusade." and "lethal weapon 2."
back then, a car was around $14,000. seems expensive. house was 144,000 and median household income was $28,000. i think we'll check the car price. anyway, that's what they say. what do you remember from 1989? if you want to join the conversation, contact us, tweet @cnbcwex, e-mail at worldwideexchange.cnbc. diageo has blamed low consumer confidence in emerging markets for the fall in third quarter sales. north america held up, sales at
1.2%. bad news for beverages continue, recommenmy down, down 2.3% and down as well. the group pointed to adverse currency effects as it saw sales dip 2.2% to 3.38 billion euros. last put not least, s&p down this morning. the softwaremaker fell foul of the strong euro. speaking to "squawk box" earlier, the co-ceo bill mcdermott says ed concerned about recent developments in russia. >> it slowed down a lot. i mean, it's a very fast growth
market for us. it's our third largest market globally. we have a lot of employees there. we have a lot of customers there and we care deeply about the situation. >> that's bill's view on that. we've also seen the japanese government downgrading its assessment of the recovery in its monthly report. is says the tax hike on the consumption is weighing on consumption and housing construction as you might suggest. so it's the downgrade assessment for the first time since november 2012. in it's latest monthly report, they say a pull back in private consumption housing, you could see a change in april. meanwhile, earnings, the advertising agency saw revenue rise to 1.6 billion euros. stephan has been speaking to the
ceo and asked him where the growth came from. >> growth is coming from emerging market which are making a big progress compared to last year. we are negative, we are positive. it coming from europe, which is showing biggening of strengths and from digital, double digit numbers. pharma or health care is also posting very strong double digit growth. we feel extremely good. >> how's the situation in emerging countries? how do you explain the weakness that you've seen at the end of last year? >> last year we had a serious problem regarding china where we were with double digit negative growth for the last quarter. due to the fact that a lot of investment in advertising have been stopped, practically luxury goods. this year, first quarter, we are up.
which is extremely positive, not magnificently up but we are up. which is a big change. and it shows that we are in the right direction. >> that's fine. >> brazil is giving some important signs of recovery and we are expecting a very strong brazil due to the world cup. and we are looking to be anxious about what will happen in india, due to the direction but you are waiting for that. >> in europe, italy and spain, growth in the first quarter, it was the first time in three years. are you confident that it will be sustainable? >> the situation in europe is positive. we should be extremely cautious in the way we are looking at europe. yes, italy and spain are posting growth and it is the first time
since three years. so it is something for which we should be extremely happy. we are also seeing france with a much better trend and a very good growth at the beginning of this year. why all these numbers are very good, they are still in a fragile environment and we should look at the numbers very cautiously. there is something which is also extremely good when you look at the numbers and what we have posted so far. the first thing, we have confirmed we are targeting 4% growth for the full year and also that we are targeting for improvement of our margin. i am pleased to say that in the first quarter we have a slight improvement which is nice. it's not something big but it's a nice improvement.
as we are posting already the best margin of the industry, it shows that our plan is going exactly in the right direction. >> ross levy speaking to stephan. great shot of the ark dc d'triu. the game console was reloosed lareloose ed -- released last november. the figures put sony at the front of the pack in the latest race for console sales with rivalmaker microsoft who released the xbox around the same time. the latest update of xbox sales was 3.9 million units in
january. it was truly humbled that gamers are selecting their next generation console of horse. sony faces difficulties in its tv and electronics arm, the gaming business is becoming one of the firm's core sources of profit. and ps4 sales could have a significant impact on the company's overall performance in the coming years. that's all. back to you, ross. >> are you working tomorrow. is it a holiday? japan? >> it's not a holiday. it's a working day. >> it is a working day. thank you for that. have a good evening. >> yes. >> and enjoy your job tomorrow. >> thank you. >> thank you. it is good friday, of course, in europe and the united states. those markets will be closed. that's why i was trying to clarify that. >> japan has downgraded its asse assessment. japanese government has also downgraded assessment of the
economy for the first time in november of 2000 because of the rise in the sales tax on consumption and as we thought, it has hit consumption and construction as well. keep tuned to more reaction to that. also still to come, a more than $30 million find in the midwest. how's that for a nest egg? we have the story after the break.
you're watching "worldwide exchange." bitcoin exchange mt. gox has entered -- a japanese court dismissed mt. gox plans to attempt to pay back customers and appointed an administrator. separately, the ceo says he is not willing to travel to the u.s. to answer questions about the exchange in a bankruptcy hearing currently taking place in the u.s. meanwhile, coin flaw, a uk-based firm says it plans to release a proof of sovereigncy
which will allow users to check the client funds it has. joining us now is the founder and ceo of coinfloor. mt. gox has focused attention on the frailty of bitcoin, particularly on exchanges. you're exactly in the same business. how do you avoid what happened to them? >> we're exactly the same business as mt. gox. the way we've avoided it is a number of things. we're focused on security, accountability and liquidity. for security we're trying to essentially, we're not holding funds in addresses that one person has control over. the ceo of mt. gox was assumed to be the only person who had control over those funds and, thus, could have been human error. our funds are controlled with three signatures, multisignature controlled funds.
one person can't run away with them. multiple persons have to sign off on transactions. we're doing proven solvency. any customer can check their balance is included in the total balance funds of client deposits we have on hand. >> what i find extraordinary is you're holding funds on behalf of people, right? >> yes. >> you're holding people's money. you approached the fca to say would you like to regulate this and they said no? >> yes. >> i find that extraordinary. >> the fca, they were -- when we applied to get regulated, they discussed this with the european commission and the result was that bitcoin does not need to be regulared as money. so they don't view it as money. they done the view us as any sort of financial regulation. we have taken measures to be
preemptively compliant with the existing regulations. >> what are bitcoins using. >> dollars, pound sterling. on our exchange they're using pound sterling. >> you are clearing -- >> they send funds to our bank account. >> you change physical money into bitcoins. >> it's not physical. they're sending us electronic wire transfers. >> you understand what i'm saying? >> yes. >> do you hold any dollars or sterling? >> yes. >> you do hold -- >> we hold pound sterling. >> they still don't want to regulate you? >> no. >> even though you hold that money on behalf of other people. >> yes. >> do you need a credit leensic of any sort. >> no. they're aware of our business model. >> that's surprising.
>> if you look at hong kong, singapore, london, all the financially innovative jurisdictions so far haven't yet regulated bitcoin. >> if you're out there saying we are a exchange, you'd want regulation. >> we've been interested in regulation. one thing, the fact that no jurisdiction so far has really taken a big interest in regulating bitcoin, what that's men is the market-based solutions have come to safeguard client funds. they probably would be happy with our solutions. we've taken the best measures possible in bitcoin to safeguard client funds. but if the government isn't going to do it, the market will take care of this problem. >> you clearly believe in the future of bitcoin. >> yes. >> it's obviously got overhyped, though. the last 12 months, you look at
the value of bitcoin. it sort of reminds me of when we started talking about the internet. everybody went 10 or 15 years ahead of themselves before delivery came up. is this something similar here? this might work but we're way ahead of our thoughts and price action of where it's going to be. >> i don't think the price action is overhyped. i do think the price is going to be related to the underlying technology and the network of users and entrepreneurs and investors who are involved in the currency. we've seen a tremendous growth in users. we've seen funds get started and all sorts of things happen. so i would definitely not say it's underhyped right now. i think we're seeing some rumors
from china that have proven not to be true. yesterday's announcement from the ceo. the uk industry is starting to heat up a lot. >> you're at the heart of that. good to know. another startup based here in london. we like that. good to speak to you. that was the ceo of coinfloor. new york attorney general eric schneiderman has sent a subpoena to six high-speed trading firms. last week, a group of traders sued the cme group accusing the futures an options exchange operation of selling market data to high-speed firms, giving therapy an unfair advantage. and a former yahoo! chief could soon be returning to the
fold. the company's nominated co-founder david philo to the board. he would come back to the company he created with jerry yang after an 18-year absence. marissa mayer's paycheck was a little smaller, receiving $26.9 million in total compensation, down from 36.6 million. she must be feeling a little poor. she's also apparently working on a plan to persuade efforts to ditch google as the default search engine on its products. re/code, yahoo! trying to persuade apple to ditch goog the as search engine.
google pays apple $1 billion a year to be the default search engine. now for something more eggciting. this egg was given by the russian emperor lower than expected iii to his wife, empress maria in 1887. the treasure was confiscated and later went missing. fast forward almost a century to the midwest of america where a scrap metal dealer picked it up for $14,000 at a market. the egg is estimated to be worth over $30 million. there are still two other missing imperial eggs out there. get cracking. joining us is jeffrey mann, managing director. thank you for joining us. do we know how many faberge eggs
are in existence. >> after his death, nicholas 2b, his son took over the practice. he had two eggs to give, one to his mother and one to his wife, the empress lower than expected. this went on right up until the revolution. the last two imperial easter eggs were known to exist but they were not delivered because the imperial family were imprisoned. >> which of the two are missing? >> the two that are missing, there's one called the necessary egg which there's a hesitant photograph. we showed it in 1949, 1953. we know exactly what it looked like and roughly its size and what it contained. it seemed to move from evening an imperial easter egg, downgraded shortly afterwards. we know that it was, absolutely. it is out there.
what we know is it's probably plain gold with a leaf-like pattern over it and then inside, there are what might be described as a manicure set, tweezers and scissors and things. in the lid is a note. >> why is there such a fascination with it? why are they worth so much? why is there such demand? >> it's a unique combination, a heavy tail of superb craftsmanship and associated with the fallen dynasty. a fallen dynasty that was strikingly good looking, west hollywood good looks, the entire family were handsome and beautiful. also there's a child-like quality to this because it's easter eggs, flowers, hard stone animals. it's very uncomplicated. it's all about pleasure and it's not about being disturbing. >> just explain, within we talk about faberge, what is the
faberge in the faberge egg? >> it is the people who made it. they were not only making for the imperial family but anybody that would shop there, one of the biggest goldsmith workshops that existed, kiev, odessa, london. 500 employees, 300 making these things, 200 administrative staff and links to royalty. >> other faberge products -- >> they are very much sought after. they are valuable. the eggs trigger say child-like response. it's working its magic again. it takes us back to -- >> this one that was in the market, $14,000, who bought it? and then when did they
realize -- >> it had a checkered history, coming out of russia. by the revolutionary government and it went here, there and everywhere. and was sold by an auction room in new york as a gold egg set with gemstones. and ultimately ended up in the hands of a man who was interested in bullion, in gold coins. he bought it for its intrinsic value. he's tried to sell it on numerous occasions, which is bad luck for those people that offered it. he turned it down. he was considering putting it into the melting pot. that would have been -- >> disastrous. >> absolutely disastrous. >> who bought it? >> a collector of faberge, has lovely things that's very much dedicated to the subject. >> i can't tell you any more than that. >> he bought it for 14,000?
>> i'm not going to tell you what he bought it for. >> substantially less than the real value, though. >> thanks for joining us. managing director of wartski. we're celebrating history here at cnbc. not quite as old as faberge and its eggs. this was part of the original programming that you can see here. and before we head to the break, this is how our broadcast looked in 1989. >> good morning and welcome to cnbc.
this is "worldwide exchange," i'm ross westgate. the headlines today, we're in geneva. as talks build for peace. speaking before his first face-to-face meeting with his russian counterpart, the ukrainian program was hopeful. >> the expectations we will find a good solution, that we all will benefit from. this expectation is the de-escalation on the ground. >> vladimir putin says claims of russian forces in eastern ukraine are nonsense.
and could big tech put a stop to the equity rally stateside? google and ibm both disappointing with earnings after the bell. futures have been calling for markets to open lower after three days of solid gains. plus, investors shy away from weibo's ipo, the chinese microbloging site cuts the size of its listing as it prepares to go public in new york today. you're watching "worldwide exchange." hello. ahead of good friday and easter weekend, the dow up 43 points.
the s&p is about on fair value. the nasdaq was up 1.3%. today we have 18 points below fair value. we've seen both google and ibm off after hours. european equities have been down to flat. the ftse 100 yesterday was up 42 points. we're currently down 23 off a third a percent. the xetra dax is down ten. this is recap in asia. it's a pretty flat day there as well, the shanghai composite off a third of a percent. kospi is flat, the hang seng finished up and the north koreaky was also fairly flat. that applies to bond markets as well. treasury yields around 2.64 yield. it's suggesting the industrial production which is better than
expected yesterday. the beige book shows that. all of that meant as far as the dollar is concerned, 1.02. we were 1.0237. euro dollars unchanged at 138.40. sterling, after the move yesterday, dipping below 7% for the first time. maintaining its gains against the dollar. above 1.60, at 1.6832. ukraine's interior minister says three pro russian protes r protesters have been killed during clashes at an army base in the east of the country. this is after separatist --
ukrainian troops were embark on so-called anti-terrorist acquisitions. an estimated 40,000 russian troops remain close to the border. meanwhile, president putin has been holding his live show. he's talked this morning about how it was kiev's decision to send the army to eastern ukraine, which he called a serious crime. he also call on kiev to release separatist leaders from prison immediately. as far as the geneva talks are concerned, he's described those as a real chance to find compromise on ukraine. russia and ukraine are joined by a number of common interests. those are his thoughts ahead of the discussion in geneva. that is where our own steve sedgwick joins us now. steve, what are our realistic expectations surrounding these talks? >> i think limited, ross. i question is this the last chance for diplomacy or the
start of a process? i don't think we have clarity on that whatsoever. this is the first time we've had face-to-face talks between lavrov and the foreign ministers of russia and. eu's ashton and john kerry are here as well. yes, that is a positive step but in terms of where the various parties are, they seem as far away as ever. we spoke to the foreign minister last night and asked him what his expectations were for this meeting. >> the expectation is that we'll find a good solution that we all will benefit from. this expectation is the de-escalation on the ground. >> given that russia say your government is acting criminally and you say the russians are sponsoring terrorist activity in the country -- >> it was supposed to be one
question. >> do you feel it's impossible to make a breakthrough? >> it's always possible if there is a will. >> ross, i think we have audio problems. it's safe to say, the ukrainians want the russians out of ukraine. the rugs don't want a powerful president with a mandate for the whole country. what they'd like is a kpleecomp buffer state. >> we apologize for the interference you could clearly hear on steve's meek as well. after a disappointing set of results, it rose 3% adjusting for the stock split. fast rising costs coming into the figures. the average cost fell 9%. they are becoming a bigger pat of google's business.
mobile ad prices will eventually catch up to those for ads on desktop pcs but wouldn't give a time line. i about. m's first quarter profit is down 21% but excludeing gross charges, earnings matched forecasts. revenue fell 4% to $22.5 billion, the worst quarterly figure in five years and missing estimates. ibm continues to struggle, falling demand for hardware and weaker demand from china and emerging markets. the company is still backing full-year earnings targets, down 4% in after hours. joining us for the next half hour is patrick spencer, managing director and director of international institutional equity sales. patrick? thanks for joining us.
pretty mixed earnings we're getting out of the united states. google and ibm today are disappointing. yesterday, yahoo! was doing fairly better along with intel, against our expectations. >> first of all, good morning. 25 years, i'm told. >> i don't feel a day over 24. >> happy birthday to the channel. at baird we look for earnings this quarter to be up around 6%, quarterly earnings this quarter has all been about the weather, as you know. easter goes into the next quarter anyway. i think the street is giving this quarter. >> what you have had, since you
haven't had so many in terms of guidance going into the quarter, you had actually a hundred companies taking down guidance for low analyst expectations now. that's the lowest since 2006. so it's a pretty weak backdrop anyway. i'm just saying with the weather and also in fact just generally with easter being pushed out, there's not very many big expectations. you talk about the weather not affecting tech, that is right. but as this big huge growth rotation goes on in the states and in the markets generally across the world, that's more important than i think the weather. you've seen this huge runup in tech stocks, over 40% last year, that came to an abrupt halt in march. that's now being re-appraised. i think you have to look at each tech company on its own. you have legacy tech, which is cheap, you have expensive tech,
which is undergoing a huge correction. which ones do you play? >> which ones do you play? let's discuss it now. >> the legacy tech, cisco, companies like microsoft, companies like entell, all trade 9, 10, 11 times, you're getting very good yields. you mention ibm. people usually buy ibm for the wrong reasons. that's a proxy on capex spending on tech. warren buffett bought that 35% higher. i would look at google. google is trading down. they don't give guidance. they'll do their call today. that's great, 20% top line. that is the type of company i would buy. there's concerns on expensive tech like amazon, like facebook. i mean, facebook fell from where it was -- i pixt o down, it fell back down to $17.
it's currently recovered from its ipo price and has fallen again to 20%. certainly if you look at amazon, amazon -- >> i don't know if i want to deal with that volatility. >> that is the volatility. if you think amazon fell to $6 back in 2000, it's now $320. it's basically tresh eurasure a end of the rainbow. the potential long-term opportunity in all these huge growth tech stocks, i think these are early days. you've got to take the volatility. but the rewards at the end, i this i, are great. >> yes. okay. we have to to have a strong stomach for this. >> correct. >> is the point. what is interesting is looking at some of the earnings. we saw this with ibm and diageo and remy today all talking about the impact of china. >> yes. >> the chinese growth and having a marked impact on them.
>> sure. >> china used to be a plus. now it seems to have become a negative. >> the important thing first of all, china is only 13% of world gdp. it affects specific companies. u.s. exports to china are less than 1% of its gdp. on the scale of things be it's reasonable but it's not important. so for specific companies it's important. you have to remember, china's basically economy doubled in dollar terms since 2008. i think china is bottoming here. there's big concerns obviously with regard to china slowing and that important deflation. i just don't think the impact on the world stage of china is that significant. >> they've re-oriented their sales. investors have put a lot in the stock price. >> i agree. i agree. on a stock-by-stock base is you've got to review where china is. certainly from a top-down point
of view, from the american market, it's up 1% this year. >> yes. >> so developed markets don't care basically. >> patrick, more to come from you. for now, thank you. what's on the agenda in the united states? weekly jobless claims out at 8:30 eastern, forecast to rise by 15,000 to a total of 315,000. then at 10:00, we get the april philly fed survey. it's a busy day for earnings. we get results from blackrock, due upon the, ge, goldman sachs, morgan stanley, pepsico, union pacific, unitedhealth, blackstone, chipotle and amd. still to come, we speak to the sodexo ceo, michel landel. ♪
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you're watching "worldwide exchange." a recap of the headlines today, vladimir putin denies the presence of russian troops in eastern ukraine. google and ibm both disappoint with first quarter sales. that sent shares lower in after hours. and weibo prices its ipo at the low end of the expected range and cuts the size of its u.s. software.
sodexo, first quarter operating profit rose by 11%, keeping the firm on track to hit full-year targets. shares also trading higher on back of those figures. up 1.3% in paris. >> joining us is michel landel, ceo of sodexo, the world's biggest catering company. thanks for joining us. on-site service revenues are a large chunk of your business. there's a sharp deference here between north america and europe. those revenues up 3.8% in north america, just 0.6% in europe. clearly there's a massive difference going on between the two continents. >> that's true. of course the american economies is much, you know, dynamic. i think everybody knows that. i just want to mention our company is not in food service exclusively. used to be. now we are a large service
company. we provide all the scope of services in one building. it's much, much larger than being a food service company. we provide what we call quality of life services. and we are trying to enhance the quality of life through the services that we provide to our clients and customers. >> yes. besides catering its facilities management, vouchers group, all those things as well. just talk to me about the north american economy here and where you see it going. >> well, you know we have had a clear acceleration of growth in north america. we see, you know, much brighter, you know, future at least in europe to come, in america. that's true in the corporate world but also we are very, very large in education and in health care. we see, you know, good growth in this business, our pipelines are strong. and we should see, you know,
continuous growth in this country. and actually faster than europe and even sometimes in the rest of the world. >> it's worth pointing out. you handle facilities for the marines, for walt disney world resorts. and a lot of different -- you're both government and private as well. it's an extensive insight into what's going on. are your government contracts, you know, are they going to be healthy? >> we are used to working on efficiencies. that's hour business. and frankly, you know, the contract from government only represent in the world 20%, actually in the states, it's a small part of our business. but i would like to say that in
this day and age where governments are struggling to reduce debt and everything, we offer an opportunity for them to reduce their costs, for example, in public hospitals in europe or in schools and colleges. in public institution we can really come, on top of improving the quality of service, we can also reduce costs typically. we can reduce by 10% or 20% as we take over this type of business. >> michel, it's been good to talk to you. sorry we haven't got more time. but that's the way of business broadcasting on our 25th birth say. thank you for joining us, ceo, michel landel of sodexo. still to come, as the worlds of health care and technology converge, how can very come up with value? that, right after this.
[ male announcer ] when fixed income experts... ♪ ...work with equity experts... ♪ ...who work with regional experts... ♪ ...who work with portfolio management experts, that's when expertise happens. mfs. because there is no expertise without collaboration. ahead of the u.s. open today, u.s. futures are indicating a slightly softer start. the s&p is down by 8 points after yesterday being up 19 points. we're currently called lower on the dubai 61 after the s&p being up by 62.
meanwhile, glaxo smithkline is investigating claims that its employees bribed doctors s is jordan and lebanon by offering travel perks and free samples. the company says it's opened an investigation into its practices, following press reports that the firms have received alleged bribery. the stock trading lower, slightly lower. the ftse down nearly a percent. flattening out of the health care equity market continues. the s&p 500 health care index has gained 55% over the last five years. investors look where to find value. joining us with his views, daniel mahoney, fund manager at polar capital and manager of the
company's health care opportunities fund. thank you for joining us. >> no problem. >>s so you're looking for opportunities in health care, do you look at biotech, do you look at services, do you look at the major pharmas? >> we look at everything. we go from biotech, drug companies, medical devices, hospitals. but even into health care i.t. we think it's important to sort of get a diversversification wi a portfolio. >> where do you think we're at at the moment from sort of a broader top down view? >> i think patrick alluded to earlier, we're seeing this rotation out of growth, which hasn't helped. certain stocks in the sector, not least by tech sectors as well as some of the smaller med tech names. we think the underlying fundamentals haven't really changed for the sector. you have an aging population that needs and demands more
health care. you're a government struggling to pay for it and we like to find companies that can essentially try to deliver better health care for less money. >> you have listed some of these companies. genfit, owned by the global b biotech fund, novadaq owned by you guys as well. >> genfit, we think we're at the beginnings of the wave of new drug development. genfit is targeting a nasty liver disease called n.a.s.h. for short, nonalcoholic -- you get fatty doeposits in your livr and you get the liver of an alcoholic. genfit has an interesting new drug. they have data coming towards
the end of this year. it's not for the faint of heart. >> no. 263% in the last 12 months. they've clearly been part of this boom in momentum stocks as well, which has got people a little bit worried. >> a little bit. what's different about biotech today compared to 15 years ago, because people keep talking about this is the bubble we saw in 1999-2000. we're seeing something real here, it's not conceptual that the human genome will cure all. we actually have companies with specific drugs that might change the world. >> patrick? >> i think it's also important as we talk about this big rotation, and we talk about bubbles everywhere you're reading about that at the moment. bubbles only usually come about when people have stopped talking about them. and certainly the other thing is that you're seeing the rotation,
the money is not leaving the market. i think that good point is that the fundamentals haven't changed. it's just the underlying rotation and the market has decided that because yellen talked about a tick up in interest rates, suddenly because a lot of these companies have worked out on discounted cash flows. those get affected by higher rates. fund managers naturally rotate out of that. that's a great point. the fundamentals haven't changed. >> very briefly, obamacare impact? is that positive or negative. >> we're quite positive on obamacare, though that may be slightly contrarian. there are probably 14 million or 15 million people who have health insurance today who didn't have it 12 months ago. you'll see that essentially in patient volumes as it comes through the second half of the year, hospitals, other providers of health care services should be beneficiaries. >> we're out of time. come back for now. thank you. daniel mahoney.
patrick, going to let you go as well. >> happy easter. >> yes, today is a special day here at cnbc. it's our 25th birthday. patrick very kindly wished us a happy birthday. thank you for that. we take a look at how our broadcast looked back in 1989. >> the president of nbc. i'd like to welcome you to the most significant programming effort nbc has ever taken outside of the network. good morning and welcome to cnbc, the consumer news and business channel. mine was earned in korea in 1953.
afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.
this is "worldwide exchange," i'm ross westgate. the headlines from around the globe, we're in geneva where talks build as the last chance for peace following casualties in the eastern part of ukraine. speaking before his first face-to-face meeting with his russian counterpart, ukrainian foreign minister is hopeful. >> the expectation that we will find a good solution, that we all will benefit from. and this expectation is the de-escalation on the ground. >> vladimir putin says claims of russian forces in eastern ukraine are nonsense and has called on kiev to release separatist leaders from prison immediately.
could big tech put a stop to the market rally state side? google and ibm boast dispoint with earnings after the bell. futures are calling for markets to open lower after three days of solid gains. plus, investors shy away from weibo's ipo. they cut the size of their listing as they prepare to go public in new york today. >> you're watching "worldwide exchange,"ing before i you business news from around the globe. >> welcome to you , if you've just joined us in north america. there's a way to go, of course. but this is where we currently stand. the dow currently trading 17 points below fair value. s&p futures suggesting a start
low by nearly two points. the nasdaq was at 1.3%. it is suggesting a low start this morning as well. i have the futures wrong. i do apologize, actually. the indications are lower. that's about 50-point loss -- 60-point loss on the dow, the s&p seven points and the nasdaq around about 25 points lower. right. clear that up. thank you for your attention. european equities are down, the cac current, the ftse mib, down 0.5%. never fear, because today there is a celebration. yes, it is cnbc's 25th birthday. we've been on air since april 1989. these are some of the pictures from our first days of broadcasting back then. and in celebration we're taking a look back. there we go. love those graphics. we should bring those back.
that is the original "squawk box" title. and it was presented by mark haines, the late lamented mark haines, also launching "squawk box" back in 1989. because of that, we're also taking a look back at what else was going on in 1989. the top grossing movie was "batman," "indiana jones" a." and the top song, "like a prayer" by madonna, "stand" by rem and "she drives me crazy" by fine young cannibals. contact us, what do you think?
email@example.com, tweet at at @ross westgate. google, the search giant disappointing analysts. google did not match those expectations. the company reporting eps of 627. google did see a 19% pop on the top line to $15.4 billion. that was not good enough for wall street. digging into the report, investors found other reasons for concern. paid clicks rose 26%. analysts thought they would see an increase of 29%. it was also smaller growth than qhad when paid cli-- this measu average amount advertisers pay when we click on ads. the pressure here, we're moving
to a mobile world and advertisers don't want to spend as much on mobile ads as they do on pcs. that 9% drop was slightly worse, better than the 11% drop in q4. before this report, the google class a shares had already been down. they say the stock doesn't look attractively valued at these levels. josh lipton at cnbc, silicon valley. >> josh lipton with the recap. ibm's first quarter profits down 21%, but excludeing various charges, earnings matched forecasts. revenue fell 22%. the worst quarterly figure in five years. it also missed estimates. ibm is continuing to struggle with falling demand for hardware and weaker demand from china and emerging markets. the company is still backing its
full-year earnings targets. the stock was down 4% in after hours and frankfurt is down 4.5%. ukraine's interior minister says 3 pro-russia protesters have been killed and 13 hurt and 63 arrested during clashes at an army base in the east of the country. this is after separatist rebels seized military vehicles while ukrainian troops were met by angry crowds in a number of towns. an estimated 40,000 russian troops remain close to the border. and president putin has been holding his live phone-in, has been speaking this morning. he says kiev did not try to establish dialogue in eastern ukraine and sending armed forces there was another serious crime. he says kiev should get around the negotiation table with russian-speaking community in the east and that the international talks in geneva as a result are very important.
so important that we have sent steve sedgwick there. and he joins us now. steve, what sort of expectations should we have around these talks? people are talking about this is the last chance to avoid blood shed. or is it the start of something longer? >> i think that's a very good question. it's think it's the question. the two key points, one, the ukraines started fighting back. not a shot was fired in anger. in the whole of the annexation period. in this period, ukraine and the kiev government have drawn a line in the sand. we are going to try and re-assert the authority, regardless of who the opposition is, whether it is putin-backed terrorists as they call oregon others who believe they're being disenfranchised. that's a dangerous phase of this entire crisis.
the other thing is much more positive. we have to remember, we're in geneva and it's not lavrov and kerry again. we've had several of those. they got us nowhere. this is lavrov, kerry. most importantly, the ukrainian foreign minister, part of the government in kiev which the russians have not recognized to date. the fact you have lavrov and ukrainian foreign ministry around the table, that's potentially positive as well. this could actually be the end of the dialogue. if the escalation continues in the east of the country, there's going to be more violence, more thefts and it would be harder to bridge the gap between the russian side and the ukrainian side. very briefly, the ukrainians want the end of the terrorist-backed activity. they want the russians to withdraw from crimea. they want russian troops backing away from the border. there are 40,000 russian troops ostensively. it may be a preclude for some
sort of invasion force. the russians are saying we want a federal structure. we don't want a small amount of autonomy. they may want to derail the april 25th elections. they say that as giving one presidential candidate, the mandate, the credibility to be in control of the whole country. russia clearly doesn't want a western-backed government on their door step in eastern ukraine pulling the strings in that part of the world. we want military and political neutrality for ukraine as well. they're concerned about having nato and eu on their borders. they want weakish compliant state on their borders, which is federal so they can exercise a huge amount of influence on that key industrial heartland in the east. it's a delicate situation. i think any one of the scenarios could be on the table today, ross. >> steve, thank you for that. that's the latest on geneva. still to come, results from
morgan stanley and goldman sachs. we get the view of dick bove. is he still going to like bank of america after disappointing figures. more to come. honestly, i'm pouring everything i have into this place. that's why i got a new windows 2 in 1. it has exactly what i need for half of what i thought i'd pay. and i don't need to be online for it to work. it runs office, so i can do schedules and budgets and even menu changes. but it's fun, too -- with touch, and tons of great apps for stuff like music, 'cause a good playlist is good for business. i need the boss's signature for this.
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[ female announcer ] some questions take more than a bank. they take a banker. make a my financial priorities appointment today. because when people talk, great things happen. make a my financial priorities appointment today. could save you fifteen percent or more on car insurance.s everybody knows that. well, did you know bad news doesn't always travel fast? (clears throat) hi mister tompkins. todd? you're fired. well, gotta run. geico. fifteen minutes could save you fifteen percent or more. you're watching "worldwide exchange." a recap of the headlines. vladimir putin denies the presence of russian troops in eastern ukraine. tech titans ibm and google
disappoint. and weibo cuts the size of its u.s. offering. just two major u.s. banks are left to report earnings today. it's been a mixed set of results, jpmorgan missing street estimates, citigroup surprised analysts. up next, morgan stanley and goldman sachs. joining us with his views happy to say, dick bove, vice president of equity research at rafferty capital, on the phone from florida. dick, thanks for joining us. you've been banging the drum for bank of america. you disappointed with what we've got. has it changed your view? >> basically if you take the litigation cost, which was 47 cents a share out of yesterday's report, the company reported 35 cents in operating earnings. i was estimating 32 cents. i wasn't disappointed by what
they reported. what was disappointing was the nature of the report. in other words, like citigroup and jpmorgan, and i guess the biggest surprise to far in this bank reporting season, trading was extraordinarily strong, as they say, for bank of america, jpmorgan and citigroup. that was completely not expected. that suggests that both goldman sachs and morgan stanley may be able to beat the estimates that are out there for them when they report in a couple of hours. >> where does that put them in line with what we've placed in terms of values on the stock? >> well, you know, bank of america if we're talking about that one is selling at a discount, 25% discount to its book value. it's book value is essentially all cash. therefore, it's hard to assume that this company is going to continue to sell at a discount to its cash value, particularly since the company's businesses
are in fact improving. what we've seen in this quarter, you know, bank by bank is that anything related to the consumer, which would be mortgages, credit cards and to a lesser extent auto loans, have not done very well. they've done pretty poorly. everything associated with the commercial sector, capital expenditures and that type of thing has been extraordinarily well. there's been a divide. and bank balance sheets are shifting away from consumer and towards commercial. i think that's to some degree what's happening in the u.s. economy. the other thing we're seeing, of course, is that investment banking was very weak and trading was very strong. i think looking forward what you're going to see is that the consumer will come back, certainly in the credit card area, and probably to a tiny degree in mortgages and investment banking will be very strong. so i think this year will be a very, very good year for the banking sector. >> finally, dick, you've talked
about raising rates would help banks. we don't know when fed funds are going to go up. we like a steepening yield curve for banks. actually, it's been doing the opposite, almost flattening. is that a headwind? >> if it had happened for all bank assets and liabilities, it would have been but it hasn't. banks are paying virtually nothing for money. you have a deposit account in the united states, it's basically giving you zero. on the other hand, mortgage rates are going up. and we're seeing the prime rate staying where it was. the yield curve has not flattened for bank balance sheets. it's flattened for the overall economy. >> great to speak to you this morning, thanks for joining us, albeit too briefly on the phone. have a good day and a good break over the weekend. dick bove joining us from florida.
weibo, china's answer to twitter will be valued at $3.46 billion, $17 per share when it goes public on nasdaq today. the pricing at the low end of the range following concerns about slower user growth in china's sensitive media environment. eileen burbich is partner at the firm. what does it say compared to where we priced twitter? >> they're trying to lower expectations which hopefully gives thm a better result in the first day. i don't think we'll see what happened to twitter, which was a 5% pop on its ipo. they're hoping the stock isn't going to go down, given what's happened over the last three, four weeks with the tech sector generally. everyone is up over the last six month or year. we're definitely seeing a bit of a correction. weibo doesn't want to suffer.
at the same time, they released results yesterday, not really great results. i think that's another reason just -- >> is there concerns about the viability of usage and revenue? >> the concern is about growth slowing. that's a problem. are you going to still attract more and more users? there's concern about mobile usage versus desktop usage. it's also about competitors that they have even in their local markets such as 10 cents chat. >> where would you place weibo compared to those two? >> weibo is much smaller than both. >> if it's slowing, that's a bit of a problem, right? >> have we come to the end of this mini boom for social media? >> i don't think so. i don't think so. >> in terms the price that we've put on the businesses? >> right, right. i think p/e ratios can't be
sustainable at 100 times or where weibo, they haven't made profits. you're not going to have optimism about companies that have failed to make a profit or companies being priced at 100 times earnings. i don't think that sort of generally social media, the way people aren't connecting online, using technology on their mobile devices will go away at all. >> good to speak to you. >> thank you. >> eileen burbidge, thank you. sodexo will trade today on the nasdaq under the ticker sabr. and today is also a special day at cnbc, our 25th birthday. we'll take it to the break. before we do so, just a reminder of how the broadcast looked in 1989. >> the president of nbc. i'd like to welcome you to the
after gains yesterday, futures are indicating a lower start this morning for u.s. equities. ed to -- three straight days of gains, looks like it may hold today. ibm and google down in after hours. what do you think? >> morning, ross. you take a look at yesterday's earnings, google, ibm and amex missed on the revenue line which is even more concerning. however, if you look at the
futures, yes, they're down but you'd think they'd be down a heck of a lot farther based on what was going on and based on the big rally coming into here. the overall picture is not that bleak although i do believe that we're, you know, reaching near the top end of the market and we're looking for some sort of correction. futures down three points and the expected value down five points is not a big move, considering we've been up over 40 points in the last three days. >> we heard from dick bove earlier. he said you might see a surprise from morgan stanley and goldman sachs. would that change things? >> you know, i don't really -- i think this market is more driven by the fed and the upper side of the market. you know, when you look at what's going on, dick mentioned it, that the bank's business, for example, is moving away from personal and may end up more commercial. what we're seeing is the banks are not funding or giving mortgage or loaning to the average guy. they're only giving to the big commercial.
what we're seeing, as long as the low interest rate environment stays here, the liquidity that the banks are supposed to be giving to the small guy, they're not going to give it because their spreads are not big enough, which is cutting down in their overall profit. although they're making money with very little risk they're not making enough money to continue their growth pattern that becomes a problem, is growth because if you're not growing you're not going to put new employees back on. we're not going to have employment growth as well as anything else. that creates a longer term problem. >> we also have a long weekend, certainly here, a long weekend in europe as well. what is that going to do by the end of the session? >> you know, today's an interesting day because you have an options expiration. it could be volatile. with traders already gone for the easter holiday, could be extremely wild today. >> todd, good to see you. you have a good break. founder of average joe
good morning and welcome to "squawk box," on this, the 25th anniversary of cnbc. 25 years ago google didn't exist, now the tech superstar is reporting profit of more than $3 billion. 25 years ago, the ukraine was part of the soviet union, now it looks like russia wants it back and 25 years ago, jack welch ran ge which owned nbc which started cnbc and now it's a dow component. cnbc? i missed that. no, ge's a dow component and it's reporting earnings at 6:30 a.m. eastern time.
it's throwback thursday, april 17th, 2014. "squawk box" begins right now. ♪ we didn't start the fire ♪ it's been burning since the world's been turning ♪ becky quick along with joe kernen and andrew ross sorkin. where were you 25 years ago? cnbc was getting ready to go on air for the very first time at a small studio just south of here in fort lee. in "squawk's" place in cnbc's hiss thi history, that would come back six years later. wow, we're 19 years old? there's mark haines himself. wow. first before we get to some of this, we get down to business. this hour alone, due upon, united health, blackrock, general tremendous and morgan stanley. pepsico is out at 7:00 a.m. goldman