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tv   Worldwide Exchange  CNBC  April 7, 2015 4:00am-6:01am EDT

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welcome to worldwide exchange. >> here are your headlines from around the world. >> delivering a deal. the american shipping giant looks to expand in europe. this sending shares higher. >> a long weekend with the cac hitting a 7 year high. the spanish and italian indices at a level not seen since 2010. >> divisions emerge between the
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u. s. and iran over when sanctions will be lifting following a landmark nuclear deal but they send a delegation to china to discuss oil supplies. >> samsung shares are lower despite the most promising in a year. this as they prepare to release the latest smartphone. >> good morning, everyone. let's just kick you off with some euro zone data. final pmi we have the composite and services data. it came in at 54.2 versus forecast of 54.3. so just a touch below expectations but it is a raise for the services component from the month of february when we saw 53.7. now the march composite pmi and
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it was at 54.1. so both with the composite and the services. a slight miss but it's still an improvement from the month of february. let's get instant reaction from david owen. good morning to you. hope you had a very good easter break. >> yes, indeed. >> fantastic. you are feeling equally upbeat about the euro zone economy aren't you? data points on the manufacturing side and service sector side that are much better than expected in part. is this down to the ecb's qe or a cyclical recovery that was going to happen? >> a combination of factors. we saw in 2014 real household disposable incomes accelerate and that's driving it. but with the weaker euro and the oil price still feeding through the weakness of the oil price last year feeding through and now the ecb bond buying and
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interest rates coming down. so i think it's icing on the cake but the euro zone would surprise on the upside but definitely in 2015-16. >> are you not worried about complacency because we have qe and improvement in data points. >> reforms are needed but those reforms will show through only in the longer term. at the end of the day we need to see more of the money qe is creating being put to work. i hope to see things like the european investment bank being geared up more to actually promote investment in the wider real economy. the issue for 2016 is investment in actual physical asset picks up. this year financial markets do well we want it to pick up in 2016. >> economic data has been in focus for traders but there's deal news also catching the attention of investors.
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fed ex launched a 4.4 billion euro bid for tnt. they're paying 8 euros a share in cash for tnt with a 30% premium over thursday's closing price. look at other big names in the sector also moving higher. postnl owns a 50% stake in tnt. also royal mail and deutsche post up 1.8%. >> it comes after ups failed to get regulatory approve for its own offer due to competition concerns. but speaking to our colleagues on squawk box earlier. he was confident that his company will receive approval for the take over. he added current market conditions helped seal the deal. >> fed ex is a strong brand and strong entity and our financial performance has not been
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struggling recently. we've had good results and a profit improvement plan successfully implemented in our business and we keep moving that forward and it's a great opportunity to enhance the integrated network that we have and to use the exceptional abilities tnt has here in europe and around the world. >> i want to bring you the latest comments that are coming from the tnt express ceo. he says the fed ex deal is much simpler than the ups deal and he does not anticipate any major antitrust issues. our business is complimentary to ups. he says it's not a concern. he also says they're offering a fair price. it is lower largely because of fewer cost cinergies. we've seen this fall through
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years ago but now two years later the story looks different because the picture has changed. >> it's also a different company that doesn't have as much exposure to europe. fed ex has been trying to gain more access and strengthen its business for quite sometime. it's opened around 100 delivery stations since 2011. earnings have been encouraging over the past couple of quarters and you're dealing with a low interest rate environment. that's another reason you're seeing more deals come to the front line if you will given that there's a chance that u.s. rates will in fact move higher before the end of 2015. >> but the point seema i was trying to make before is the fact that tnt at the end of last year actually racked up a 140 million euro loss. they talked about margin pressure and price pressure and this very competitive european deliveries market so why it is now fed ex sees so much value in the european market. they said we've had a good business in europe all along but
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how can you reconcile this with the fact that tnt said it does not expect an improvement in performance until 2016. >> that's a disconnect isn't it? >> clearly fed ex sees value and it's a very different picture than the deal that was proposed by ups two years ago. european regulators blocked that 5.2 billion euro deal but we'll have to see if the european watchdog at the end of the day approves this fed ex tnt deal. >> we just want to get you up to speed on some flashes coming out of the bank of russia. we'll get them to you in a second. let's see. here we go. there's more rate cuts to follow that. qe would boost inflation and capital outflow and no quantitative easing is is planned. they say consumer demand to
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recover in the second half of 2016. foreign trade to support economic growth in response we're looking at the russian rouble against the u.s. dollar. the bank of russia saying it's to support growth. it would boost capital inflow consumer demand to recover in the second half of 2016. but more rate cuts to follow. that seems to be the big headline here. now for a look at european markets. >> we are back from the easter break, roughly one hour 50 minutes into the trading session. that tnt fed ex merger that seems to be going higher. the stoxx 600 is higher. very close to session highs. the ftse we're seeing higher by
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1.2%. the dax pushing to the upside. 0.9% and the cac 40 seeing gains north of 1%. also looking at the treasury prices we've seen the yield drop quite significantly on the low forecast jobs report but it has now retraced back to 1.9% so we're at the levels we were at just before the jobs report. we're seeing prices moving lower today and yields some what higher. let's look at the currency markets as well. we have the rba. that was the big story in the trading session and aussie dollar against the green back. that tells you for the most part traders were still expecting a cut and still were at 2.25 of 1% and we're seeing the euro a touch lower against the u.s. dollar. off by 0.2%. we're well below the 110 levels
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over the weekend trading. let's check in on markets with asia. sri what's happening. >> the main story was the reserve bank of australia confounding expectations and keeping rates unchanged although i think the main meeting is going to be a live one and looks as though they are keeping the door of possibility open to a rate cut. disappointing that they didn't see it today. the other disappointment is the rbi didn't move as well. disappointment in indian equities and disappointing commentary out of the reserve bank of india. there's the prospect of fed lift off. they're in a much better position from a balanced payments point of view than they were during the taper tantrum. that's where we stand. overall quite solid session although disappointment in indian and australian equities.
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>> sri for now, thank you so much. let's quick focus to greece. the greek prime minister said a funding agreement must be reached at a meeting with euro group creditors on april 24th. he also said athens will need all imf payment deadlines. this comes ahead of the loan repayment due later this week. and on a programming note cnbc will be discussing greece with christine lagarde this thursday. that's a first on cnbc interview. we have been talking about the greek drama for months now. how closely have you been watching the events that keep taking place? >> we're watching it all the time. the greeks themselves will probably pay pack the loans you were discussing.
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i think they wouldn't do so and would be in this strange space where the imf wouldn't actually see sort of payments falling due but now appears they will be paying. they do perhaps have more money than people were thinking and to some degree we can move forward. this has been a positive factors for the market. >> alexis so wanted to decide the fate of greece and implemented economic reforms. do you think he'll ever get that power? >> it's going to be difficult but at the end of the day the greeks will remain within the euro zone and they want greece to remain within the system so a compromise will be struck and we can hopefully move on. greece was recovering and can recover still if we can see compromise being struck. >> can't recover but it might just exit the euro zone. that's the other possibility. >> i don't think they do really wish to exit the euro zone and for the ecb to cutoff the funding for the greeks that would be a physical decision.
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he would not wish to do that by himself. the easiest thing is basically, you know have interest rates at zero for an extended period of time and overtime the debt will get paid back but that's over the very long-term. >> i know we're asking a lot of what if questions and i know we do this over and over again. but it's our job. we have to. what happens if greece exists the euro he zone. >> they would go back into recession and it would take years for them to see it improve. for the rest of the euro zone the ecb would be buying in size. it would be worse news for the stock market than the bond market. if greece was to exit we'd see capital controls being imposed you'd see the equity market coming down sharply. but it actually wouldn't be you know it would be more seen probably in the european equity parkt space and the european credit space than would actually
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be in european government bonds. so that would be the flashpoint i think. >> thank you so much for that. david owen. chief european economist at jeffrey's international. >> cyprus lifted the last controls on its banking system. they came into place during the 2013 financial crisis. it means an end to the monthly cap of transfers by individuals to foreign banks. >> the european commission is mulling probe into whether they had assets remaining low quality in the euro zone. the commission is studying the information requested from member states to decide if a full probe is required. >> all right and coming up on worldwide exchange with just 30 days to go until the u.k. election, can you believe it the race is still too close to call. how should you be positioned for the government? we tell you how to play the polls.
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>> is samsung reconnecting? the smartphone maker beats earnings expectations ahead of a key launch. we dial into the numbers. >> before the highly anticipated apple watch hits a store near you, find out how the tech giant is preparing app developers for its latest device. we're back in two. stick with us.
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>> welcome back. a divide between washington and iran has emerged. the white house says the terms of a sanction phase out is still under negotiation adding that the measures would likely be lifted gradually but they said sanctions would be lifted once a deal was signed. let's get out to our bureau chief of nbc news. give us the latest. >> that's right. iranian foreign minister and chief negotiator has been doing the rounds. he was speaking on a talk show this weekend and addressing the iranian parliament today and selling this as a good deal that will allow iran to join the world community and revive it's economy but he was also very careful to point out that the deal isn't carved in stone.
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he said teheran would be able to return to its nuclear activity if the west with draws from the pact or doesn't honor the pact agreed on. iran has the power to take corresponding action if the west will return it's nuclear program to what it was before stleszing there's gaps remaining. they're also remaining on research and development. when they'll be lifted and what sort of research and development iran will be able to conduct. they're also saying these are details that can be ironed out before the comprehensive deal has to be reached on the 30th of june. that's not to say hard liners haven't voiced their opposition. one senior editor of a hard line newspaper here said this was a bad deal for iran and good deal for the west there's still a lot of trading to be done between now and november. we have to see if they can keep
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everyone happy. >> thank you for that report. >> meanwhile president obama continues to fend off criticism from israel with prime minister benjamin netanyahu calling for sweeping changes to the nuclear deal. the president also faces an uphill battle from lawmakers pressing for a deal once the agreement is finalized. it would block them from lifting sanctions on iran during a 60 day congressional review. >> but some countries are scrambling to take advantage of an open iran. they're heading to discuss future oil sales there's still a lot of excitement about the prospect of iran's oil coming online. >> this is part of the bigger question that you're seeing this play out in the spikes and oil prices although steve may
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disagree with me on that one. all the countries there have a strong base there. you have the uae and turkey interested in getting back in bed with iran. there was conversation last week over whether he would go ahead with his visit to the state over disagreements over what's happening in yemen but the whole idea that geopolitics will do anything with the economics of the situation is ridiculous because you have to remember the largest refiner in turkey half of their oil was coming from iran prior to the sanctions in 2011. so these are major trading partners and these dies are excited about getting back into the market. >> morgan stanley saying the fiscal side of this won't be seen until 2016. let's focus on u.s. politics. mr. corker has a bill and he
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wants to delay the teal. what can the bill actually achieve. >> it's been interesting to watch the media coverage of bob corker because he's a tennessee, self-made business man. this is someone the democrats say they can do business with. the white house is hoping that the fact that they know he has worked with democrats and the multiple times in the past they'll be able to do something with this man but at the end of the day the bigger question is going to be whether this is presidential overreach and that's the thing that congress wants to weigh in on and unfortunately for the white house they're going to see a bigger battle going forward. >> do you have any idea about whether iran has the infrastructure to support some of the big oils dipping back into iran's oil because that's been one of the questions out there. do they have the infrastructure to support that. >> it's a big problem overall.
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infrastructure development. yes you have an 80 million population and yes they're ripe for investment but how quickly can they bring things to market? you have various sectors that have done well under sanctions and they'll see a major tipping off after singss are lifted if they are lifted and the time frame that people are hoping to see but it will be interesting going forward how quickly that infrastructure will be rebuilt. the jurors pane majors want to get in there as quickly as possible. they're banking that in. they'll have to price that in because they'll need severe development help as well. we'll have to see. >> thank you for that. let's continue to talk about oil prices. crude prices are are back in the red this morning after a note from goldman sachs suggested that prices would need to stay low for longer before we see a real slow down in u.s. production. oil enjoyed a rally on monday after investors eyed the disagreement between teheran and washington. saudi arabia raised it's prices
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to asia. that said i'm reading a note right now. they say crude oil was there yesterday. there was no trade from the europeans. good volume in wti. they're saying there was no apparent trigger for that jump in oil prices yesterday but the demand side from asia that's a really good indicator that maybe the demand supply balance is finally balancing out some what and that's why the saudis can raise the prices. >> it's signaling there might be higher demand from the big asia majors. china in focus of course but european markets were closed yesterday. we did see a big move in the price of oil. a 5.7% gain. we haven't teen that price action in quite sometime but it's interesting a lot of oil traders were getting excited about this potential rally in oil price but at the end of the day we're talking about a 5.7% move to the upside.
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oil used to be at $140 barrel in 2008 and now here we are in the 50s getting excited about a 1 to $2 bump. >> goldman stick talking about the 40s. the conflict in yemen has intensified with the death toll rising to 600 people since the saudi lead air strikes began. with many calling this a humanitarian crisis the red cross is on the ground though the international organization said aid is being held up by increasing violence. >> turkey revised the decision to block twitter after the social media platform complied with the request to remove images held at a courthouse last week. >> still to come on the show, paying over the odds. the kraft and heinz merger was just one of recent deals to hit the market but are buyers forking out too much? we get a review after this break.
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>> tnt investors cheer a takeover offer from fed ex as they look to expand in europe. sending shares across the sector higher. >> now the deal kick starts trade across the continent after the long weekend with the cac hitting a 7 year high.
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now the spanish and italian indices at levels not seen since 2010. >> divisions emerge between the u.s. and iran over when exactly sanctions will be lifted following a landmark nuclear deal but teheran gets to work sending a delegation to china to discuss oil supplies. >> samsung shares close lower despite the most promising earnings guidance in one year. this as the south korean tech giant prepares to release it's latest smartphone. >> let's have a look at the european markets. a lot of green across the board. we're playing catch up with the u.s. markets that were open for trade yesterday. the ftse 100 up by 1.1%. dax higher by shy of 1% at 12,085 points back above the
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crucial 12,000 level and cac 40 higher by 1.2%. obviously lifted by the activity in the transport sector overnight. the services pmi maybe they're shy of forecast but they still point to improving picture. >> did you know that out of these four which one is the best performer in 2015? >> gosh i'd say -- >> not putting you on the spot here. >> either the dax on the ftse. >> it's the italian markets up 24% so far this year. germany up just about 22%. >> we have u.k. services pmi data out for the month of march. >> it's an 8 month high coming in in the month of march. it stood at 56.7 in the month of february. expansion inactivity. this in comparison for the u.s. factory pmi number which did come in at an 8 month high in
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the month of march. this number a lot of it has to do with heavy consumer demand. a lot of it has to do with lower oil prices. will that provide a boost to consumption as well. this number coming in at an 8 month high here in the u.k. but that construction number we got out a couple of days ago came in weaker than expected. a lot of that over concern of may's national elections. let's look at the currency. sterling trading basically flat at 1487 against the u.s. dollar but u.k. march final services pmi 58.9 versus 56.7. >> let's get stock specific vivendi made an offer for orange's dailymotion. they made a bid for the video sharing site. stefen is live in paris with more on that story. >> good morning. they didn't say exactly how much it's willing to pay but
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according to the newspaper it's offering 250 million euros to buy a stake in the video sharing site. they have been looking for this acquisition for at least two years but never managed to strike a deal with orange which is the honor of daily motion. the board of orange is going to meet later today in order to review the offer and it's likely to reach a deal with vivendi as the main shareholder of orange the french government has the power to interfere in negotiations though it sends a negative signal. it's trying to attract more capital in france. two years ago the french economy minister already blocked a deal with the u.s. giant yahoo! arguing that the u.s. company would have french jewel. at the time the government was concerned that the division center would be shifted away from france and therefore could
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be cut in the country. this time the new economy minister claims that europe needs an ambitious digital strategy for the euros to to come which he believes thoughts with a more integrated market. the second largest video sharing website after youtube although it's much smaller than youtube with 128 unit visitors a month. that's to compare with 1 billion for you tube. >> thank you so much. it's hit the lowest point since the third quarter of 2011 our next guest says that high valuations are keeping a lid on deal activity. head of european leverage finance is joining us here in studio. thank you for joining us. interestingly enough you talk about valuations. when i speak to some investors they're saying given the high valuations we're seeing in the u.s., that's pushing them to
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look for opportunity here in europe. from their point of view valuation alone is driving deal flow here in europe but you wouldn't agree. >> i think that we're coming at it from a credit perspective and what we see are multiples, both debt multiples very similar to 2007 and in 2007 or the period prior we had a lot higher gdp growth and revenue growth more profit margin expansion and that was an environment where financial sponsors they could feel more confident in investing in a stand alone business over their holding period. today we don't see the same level of gdp growth. we don't see the operating profit expansion so it's a function of buying something and taking costs out and they're less able to compete against trade buyers and ipo markets.
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>> you call 20d 05 to 2007 the golden age. is that correct? but arguably we're seeing a lot of corporate deals in 2015. >> it emphasizes the point where are the sponsors. they were paying premium prices and we haven't seen that in seven years. they also are trying to compete for high quality assets so if you look at auto trader for example that was a private equity sponsor and they wanted a higher valuation for the ipo market and something like portugal telecome was one of the bidders but ended up losing because the bid was able to pursue cost savings where as private equity was looking at it as a stand alone business.
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>> you're spinning it one way. look private equity because they're not seeing the right growth in 2007. maybe it's not as competitive to be part of the deal making phase we're seeing this time around. >> they're not if they want their 20% target returns and they're not if they're looking at holding these businesses through the next cycle which is what they had to do during 2005-2007. they had to hold businesses during 2008 2009. they're selling businesses into this environment and listing companies and ipos and selling to the crafts and to the less or i should say the most cost competitive trade buyers. >> how much of a predicament is the industry because we're
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seeing this hunt for yield because people think that's where we can still find double digit yield. they're under a lot of pressure to reform but they're not justifying the fees. >> we've seen a wholesale transformation in the private equity industry over the last five years. they've become multimanagement platforms rather than focused on private equity. they're some of the largest debt management businesses in the world now. black stone has gso partners. kkr has a large debt management business. we've seen them get into other alternative investment themes like real estate and then they had to adjust to this large cap valuation environment by going more mid market and where growth is in technology services business services and they were the first in 2011 and 2012. they're looking for good businesses and still willing to
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compete and certainly they have the cash. their fund levels were as high as they were ever and the search for yield is making its way into seven times leverage like we saw in 2007 but when the value proposition is cutting cost and leveraging scale then emerging market trade buyers have the advantage. >> are you saying that leverage is the same as back in 2007 even though we have a lot trying to lumt limit the leverage. >> it's in the loan market and not the bond market. we see seven plus times leverage like we did. it's not as broad based. there's more discrimination in the credit markets. in europe we're depending on banks to underwrite. you are releveraging the company with more debt and paying yourself with more debt not interest. those terms and conditions are
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more aggressive now. the sponsors are taking advantage in 2007 to pay the premium bids and this time they're not. >> i want to talk about oil and gas because many say there's a need for further consolidation in the sector. does that create an opportunity for private equities? >> it does. one of the products is they're using funds for that. some of these are global platforms. i mentioned blackstone but there's also carlyle, apollo and they have marking networks allow them to go to the sovereign wealth funds and pension funds and endowments across the world and say we see an investment opportunity and they will try to participate in that. >> we'll leave it there. thank you for joining us today.
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the first quarter earnings guidance came out this morning. operating profit is expected to be 5.9 trillion which is much higher than the local market consensus of 5.4 trillion. but it is down 31% year on year. this is the 6th straight quarter samsung is posting an earnings
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decline. also revenues as well were down at 47 trillion below market expectations of 50.1 trillion and down 12% year on year and 11% quarter on quarter. so far the operating profit is coming in above market eck expectations and this is seen as it's strength in memory chip business and some improvement in the smartphone business especially the galaxy s 6 is seeing preorders of 3 to 4 million phones and also the low to mid end models released during the first quarter seem to have helped the im division as well. we don't have detailed break down for the numbers since it's the guidance today but analysts expecting the biggest part of the operating profit increase to have come from the memory chip business. they want the operating profit numbers to be around 3 trillion and the memory chip business
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posted a 2 trillion profit coming mainly from cutting market cost during the first quarter. >> and talking about 3 to 4 million in preorders for the s6 and s6 edge. one analyst server has pencilled in 57 million in sales'57 million in sales combined of the s6 and the edge for this year and s5. that only sold about 38. a lot of hopes on that phone. >> i was there at the launch on march 1st in barcelona at mobile world congress. it goes on sale this friday. so will it be able to fend off competition from the apple iphone 6 which has done tremendously well. especially emerging market where is they're losing presence to the low cost suppliers but it will be a game changer where it used to be the number one player but in markets like india they're using their edge.
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>> the edge. >> slipped that in nicely. >> i didn't even try. well talking about smartphones, speaking of smartphones, apple invited a select group of developers to its labs in california to test their apps on the new apple watch before march's press events only uber and facebook can test theirs. most developers had to build apps for the smart watch without ever actually coming in contact with the device. >> here's an interesting story from over the weekend t smart watch is due to roll out in 9 countries from the 24th of april but would be customers in switzerland won't be able to get their hands on it until the end of the year. this due to an intellectual property issue dating back to 1958 according to swiss broadcaster rts. what else should they be watching out for when it comes to am this month. here's the run down. >> apple's investors hope the month of april showers them with
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greater returns. the tech giant stock is soaring up 15% so far this year. more than 60% over the past 12 months. the next few weeks will be critical in terming where the stock is headed. the action starts this friday. that's when the company starts accepting preorders for the apple watch and apple is making a big marketing push releasing new videos of the watch over the weekend as well as e-mail blasts. apple will ship 14 million watches this year. that's a drop in the bucket compared to the 74 million iphones the company shipped last quarter alone but if apple begins offering more killer apps for the watch which officially launches april 24th then sales could surge. the next big date on apple's calendar would be april 27th when the company reports second quarter earnings. wall street expects eps of 213
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revenue. a more than 20% jump on the top line. he thinks apple will deliver better than expected q2 results but the big news he says will be tim cook's decision to launch a 200 billion dollar capital return program. that staggering number would, according to him, represent all the company's free cash flow over the next three years just as important as q2 results and capital return will be apple's q3 guidance. inves in investors want to know how much of a drop they see in iphone demand after the initial global rush to buy the iphone 6. for cnbc josh lipton in san francisco. >> our new san francisco bureau opening yesterday. it's going to be a big month for apple. typically we see a buy back get announced and dividend hike and will that momentum continue to power earnings forward because
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last quarter was a record quarter in terms of profits for am. >> but then the sail old question that we're asking analysts over and over again. can they innovate and return so much capital at the same time. you're spending all that money on innovation and the iwatch and everything else. can you still return the same amount? >> i don't know. that comes to the debate of whether this is a growth or value stock. if it's a value name they should be putting their money into dividend and share buy backs but if it's a growth name maybe they should focus on innovation. the watch and other products that's what they did best. >> i think apple wants to be both. can they be both? >> i think they can. apple can pull off everything. >> moving on, u.k. prime minister david cameron is urging ukip voters to come home saying all was forgiven. he said he heard the message and
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appealed for their votes in order to avoid the danger of a labour government. >> meanwhile tony blair is returning to the election trail with 30 days to go until the polls open. he'll warn of the risk that businesses face under a conservative lead government. he's expected to add a referendum would create the most intense period of anxiety since the war. >> it comes after a report suggesting a number of ftse 100 bosses are concerned miliband could derail britain's recovery. they raised concerns that the general election could spark years of turbulence for the stock market and prolonged weakness for the pound. let's see what our next guest thinks. he's head of global equity strategy at ubs. you're not down beat. >> there's clearly risks. i'm not sure it's multiyears but if you go back and look at the last 50 odd years after u.s.
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elections on average six months after the ftse is down about 3 or 4%. so it tends to be a digesting of the new regime as it were and this time we'll have the uncertainty as well. >> let's run through the sectors, banks, utilities, transportation, which sectors are going to fair better. >> many of the individual sectors like banks, for example, there will be issues potentially under a lapobour government. they talked about two new banks to break down what they see over lending a80% market share of a enforcer. the other obvious ones, the energy stocks and energy retailers and sse because clearly we had in the past
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comments from the labor leader that they would fix prices. what they could have charged the consumers. that's two large sectors where there's obvious issues under potential labour government. >> i believe oil and gas makes up about 13% of the ftse 100 so any changes to energy subsidies could have a negative impact on utilities. >> if you look at energy and the collapse of the oil prices effectively halved in the last 12 months or sos it's not the cheapest energy source in the world. so allowing companies to invest and whatever tax breaks they give is critical as well. >> you would think given the state of the u.k. economy, growth is coming back. pmi services at an 8 month high that equities would be out performing but the ftse 100 up only about 5% and you're underweight u.k. equities.
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help us understand. >> we're cautious. one is the politics. we have concerns if you were to see a labor government for some specific sectors and you have the risk of the eu rev renferendum in 2017. the scottish referendum is not a big issue. it's one week before the poll we had a lot of concern. this uncertainty of a potential exit what that meant was one problem is the currency. the euro has been weak. that's helped european companies and their profits. that's not the case with sterling. >> at what point do you want to buy u.k. corporates again? the valuations looking pretty expensive compared to the rest of europe. you don't like the earnings momentum.
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after it at what point do you want to buy u.k.? >> there will be two things. there's a price for everything and if we saw the valuations come back maybe the market fell 10 or 15% it would look quite interesting but the real factor for the u.k. relative to europe is energy. it has such a heavyweight in energy and oils. so if you think commodity prices were going to rise. if you want to think there's a big bounce back in oil and iron ore and coal the u.k. would probably outperform in that condition. >> how are you recommending currency traders to position themselves ahead of the election. we saw a lot of volatility in the sterling pound trade. >> we think there will be volatility and i suspect it will be one of the ways that reflects uncertainty and weakness. not only just the equity market because you may have the flight to safety to u.k. government bonds but it could be sterling as people try to get out of u.k. asset ifs there's uncertainty over whether we can form a government and what that
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government's policies would be. >> thank you for laying out the winners and losers. now the field of 2016 contenders for the white house is getting a bit more crowded. republican senator rand paul, a tea party favorite plans to announce today that he is getting into the race. paul is the son of ron paul that ran for president three times. let's get out to tracie potts who is live in washington for more on that story. >> hi seema, by lunchtime we should have the official word although he already put a youtube video out saying to expect this big announcement today. rand paul that thinks like a lib libertarian may have his biggest challenge with the republican party base and trying to court them. he has been interesting collection of supporters. the republican senate leader here who is from his home state of kentucky. that's where the announcement is
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happening today. they had a pretty significant base of younger voters and he's been courting and urging the party to court minority voters. he needs to expand more into his own party in terms of a party base. otherwise he's going to find it difficult to get the money that he needs to run although he is well funded at this point. now we're expecting to see him run a fairly strong early campaign. he's expected to hit some of the early states like iowa new hampshire, nevada south carolina all of them he'll be traveling to after the announcement today and then the latest polling he is actually polling pretty close to hillary clinton in key states like iowa and florida. he even beat her by a point in pennsylvania. speaking of hillary clinton we're expecting an announcement from her any day. it could come first on social media. he already rented office space in new york and already hired
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the same consultant that softened michelle ball balm's image. >> the race is heating up. tracie potts, thank you so much. still to come on the show let's look at u. s. futures. take a look at what we're expecting in today's trade. yesterday a major rally for u.s. equities. disappointing jobs report on friday. some investors took that as rates not increasing until september instead of june. right now futures pointing to a mixed open. nasdaq up 4. s&p off by .4%. >> let's look at the european markets as well. we're seeing a lot of green arrows hereful brushing off that report and taking our queues yesterday. the ftse 100 up by .3%. the dax higher by 1% though some of the airlines underperforming because of downgrades coming through and the cac 40 up by 1.3. overall european markets lifted by that activity we're seeing
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this morning in the space between fedex and tnt. finally a deal coming through. >> deal flow providing a boost to european equities. still to come on the show s bad news really good news for markets?
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welcome everyone. you're watching worldwide
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exchange. >> these are your headlines from around the world. >> delivering a deal. fed ex with a $4.8 billion bid for dutch shipping giant tnt. both sides are confident they'll pass competition hurdles despite regulators rejecting an offer from ups. >> investors continue to digest the disappointing jobs report. in europe equities get back to business after the easter holiday with sharp gains. >> divisions emerge between the u.s. and iran over when exactly sanctions will be lifted following a landmark nuclear deal but teheran gets to work immediately sending a delegation to china. >> rand paul gets set to join the race for the white house in 2016. he plans to officially declare his candidacy in his home state of kentucky today.
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>> welcome everyone. the focus is on quantitative easing. that giving a boost to european equities. the europe stoxx 600 index up 16% but the best performer is italy up 24%. >> wow. >> germany, your home of course the second best performer up about 20% as well. >> we're looking at mixed futures. we saw a downward move at the start of trading but shrugged off the weak jobs report and the data points adding to the confusion. we saw that the u.s. pmi suggested that the payrolls may have overstated the labor market weakness and then we saw the index, first negative since 2012. i think we'll be seeing a lot of revisions to those downward
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revisions revisions. maybe it will be wiser after this week. >> we heard from fed president of new york who did provide dovish commentary that a rate hike will not happen in the near term. that sparked that rally on wall street yesterday but let's focus in on europe and what's happening here. we did get a dose of economic data. we're looking at the dax up 119 points. the cac 40 at a multiyear high. now trading at 5,137. a gain of around 63 points. the italian markets up just about 1% in today's trade. trading at 23,534. let's focus on the pmi services number out of the u.k. up about 85 points. a rebound in pmi pointing to a q-1 boost. encouraging for investors ahead of the may 7th election. >> let's look at the bond
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markets. the ten year u.s. yield 1.9%. the jobs report never really happened. down to 1.8 but retracing some of that decline in the yields. bond prices falling today. we're seeing the ten year yield at 1.62%. not a big move after the pmi data. let's look at oil price as well. big move to the upside yesterday. crude is down by 1.5%. some say it's because goldman says oil prices need to stay low for production to balance out. brent crude down by 1.3. 57.40. in the currency markets the dollar climbing higher again. euro dollar is down by 2/3 of a percent.
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those are very thin markets and we have two rate decisions today. that one was happening in australia. keeping rates unchanged. we saw the spike in the aussie dollar against the u.s. dollar. 7669. let's check in on markets in asia. >> solid session and the out performer is shanghai up by 2.5% so the market at a fresh seven year high and idea of further easing and stimulus to keep the economy consolidated on the even keel around 7%. we didn't see additional easing or stimulus by the australian central bank. neither did we see fritit from the reserve bank of india. they just paused for breath there. we did see a 25 basis point cut and the cash rate in australia and that's why australian
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equities retreated. they were knocking on the door at one point on session highs. it came down all the way but still in positive territory. similar story. all in all a positive session although the commentary is very interested about a potential fed rate hike. he doesn't think it's going to be a big problem for the indian market for equities or outflows. he thinks that the indian market can take it. india is in a much better position from a balance of payments perspective than it was during the taper tantrum. >> what will happen if and when the fed does raise rates. thank you so much. >> let's switch focus to deal news. fed ex launched a bid for dutch delivery company tnt. they're paying 8 euros a share in cash for tnt representing a 33% premium over thursday's closing price. let's take a look at the other big names in the sector getting a lift.
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post nl getting a boost since it owns a nearly 15% stake in tnt. also royal mail and deutsche post up nearly 2%. >> that comes after fed ex failed to get regulatory approval due to competition concerns but fed ex president for emea was confident that his company will receive approval for that takeover. he added that current market conditions helped seal the deal. >> it's a strong brand and entity and our financial performance is not struggling recently. we had good results and a profit improvement plan implemented in our express business and keep moving that forward and this is a great opportunity to enhance the integrated network that we have and to use the exceptional abilities that tnt have here in
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europe and around the world. >> let's talk more about this deal with patrick spencer. good morning to you. hope you had a great break. how much of this deal is down to the strength of the dollar. >> well it's opportune. i wouldn't say it's the main reason. it's a cheap deal. buying the company at nine times and ups paid 11. the company in a much worse financial situation since then. the president, the ceo of fed ex talked about europe a couple of years ago so they've been on record for a couple of years that they want to get a bigger footprint in europe. it's only 5 or 10% of the revenues where as ups is probably 50%. they won't have any problems with you know the regulators but it's not just the currency. the currency is obviously very opportune being up 25% but the
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deal is cheap and it's about providing what fed ex can. they want to do the deal anyway. not a surprise. >> we got the disappointing jobless number on friday and european markets were closed on monday but now we're getting a response and look at how european investors are perhaps dissecting that jobs number. do you think it does change the fed's timetable on when we could see a rate hike this year? >> possibly and the dollar is quite strong as we just eluded to. that's done a lot of the rate hikes job for it if you like. that's given a little bit of ease on the interest rate hike but we've had this phenomenon six years running now that the weather, unusually bad weather in the first quarter causes these, you know low employment records. certainly in energy we know the problems there so energy employment was down. the construction because of the bad weather was down and also manufacturing down because of
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the strong dollar. that's why the markets are taking it in their stride. >> does that mean u.s. equities move lower? even the head of black box saying the stronger dollar will end u.s. into a slow down and undermine u.s. confidence and a mix of growing assets and shrinking yields is creating a dangerous in balance. >> sure. that's a consensus view that the dollar is going to go higher. >> when you hear from larry fink people pay attention. >> i understand but people are discounting a lot of dollar strength. it's up 15% against sterling. like 17%. so it's a well trod trade as it were but you're beginning to see a bottoming out of europe. what's happening in the european markets this year. they're discounting recovery so you have to be careful about calling a stronger dollar from here. you might even get a stronger euro so i think the u.s. will be
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a contrary place to put money this year. the bank of america survey pointed to $48 billion in equity coming out of the u.s. in the quarter. both the dollar and the market are discounting a lot of problem. >> another consensus certainly looking at the next couple of weeks is the fact that the earnings season in the u. s. is going to be terrible. we've seen big revisions to the down side. s&p 500 earnings are set to fall 4 to 5%. >> is that priced in or do you think you can get in this if you go short the market and still trade it and make some money. >> the phenomenon we talked about, the weather, you'll see a rebound coming. we talked before the program about spring and i spoke to my brother in new york out in his garden yesterday. spring has sprung. the weather is going to improve. the economic indicators are going to improve. you're looking at a five year low in oil prices and five year
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high in consumer free cash flow and as you know the u.s. economy is 2-thirds consumer so i expect you're going to continue to see good earnings coming out in the second half of this year given what we said about the dollar. we look for earnings to be up about 5% on the s&p and 4% next year and we see that picking up in the second half for those phenomenon we just talked about earlier. >> don't steer clear just yet. >> certainly not. >> do you want to get invested in consumer discretionary stocks? companies that will benefit from a rise in consumer consumption. >> very much so. top three sectors are health care consumer technology and discretionary. >> it's been a tear. it's amazing. always a pleasure to have you on. thank you. let's also get you a run down of what to watch this trading day. it's a light day for data. we get the latest turnover at 10:00 a.m. eastern.
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as for earnings look for results from international speedway which owns several nascar tracks and dave and busters. >> let's look at today's other top stories. viacom will take a $785 million charge this quarter to cover the cost of job cuts and write-downs. the lay offs effect about 400 people. the write-downs effect reruns of shows such as csi and entourage. viacom in germany higher. >> weinstein company is in talks to share it's tv business to itv. a deal could be worth up to $950 million. weinstein is well-known for movies such as the kings speech and the artist. they bought the company behind the voice and left field entertainment that produces pawn
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stars. price action is up about 1% in the u.k. >> never heard of pawn stars. >> i haven't. >> maybe we should watch it. >> i think it's supposed to be sunny. we should be watching tv. the celebrations in iran could be divided already. we cross live to teheran after the short break.
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u.s. futures pointing to a mixed open after a volatile day on wall street and republican rand paul gets to set to officially join the race for the white house later today. >> now a divide between washington and iran emerged after people took to the streets to celebrate a landmark deal. it's still under negotiation adding the measures would likely be lifted gradually but iran's top negotiator said sanctions would be lifted once a deal is signed. we're joined by the bureau of nbc news for more on that story.
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>> hi seema, that's right. iranian foreign minister has been saying he's doing the rounds in iran speaking to tv station here. he was addressing parliament today saying that if the united states doesn't honor their agreement made and doesn't lift the sairngss as soon as the deal is reached iran could back away from the deal and take it's nuclear program back to exactly what it was before. also expressed concerns about details in the agreement about research and development on iran's centerfuges. they seem quite confident this deal will go through despite hard lined voices in the country saying this is a bad deal. a group of hard liners gathered outside parliament today while he was answering questions saying that the deal was detrimental for iran's progress in the future for its economy and for its standing in the world. having said all of that the country is getting ready for
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foreign investment. european investors desperate to get back into iran. >> thank you for that. meanwhile president obama continues to fend off criticism at home and abroad. he called for sweeping changes to the nuclear deal over the weekend. this as they press for a vote on capital hill once an agreement is finalized. the legislation would block the white house from lifting sanctions during a 60 day congressional review. hadley joins us with more. behind this bill is bob corker from tennessee but he still needs votes to push ahead with this and some democrats find this deal a little better than they previously thought. >> that maybe the case but he's getting increasing support from both side of the aisle and it's going to be interesting going forward. we heard so much conciliatory
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language from the white house. we have seen president obama going on every network he he could reach out to in terms of selling this to the american people especially with his comments about prime minister benjamin netanyahu saying he understands it. it's cry me a river. quite frankly he is saying to the new york times i feel bad when people say i'm antiisrael and that's not the case but this is also about what the united states is promising the arab allies as well because that administration frayed over several years now and what you're seeing play out in the region is the united states given the approval to be in yemen and further action in those countries. it's going to be interesting going forward. >> that would happen april 15th. thank you for that. the field of 2016 contenders for the white house is getting more crowded. republican senator rand paul a tea party and libertarian
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favorite plans to announce he's getting into that race too. he's the former son of ron paul that ran for president three times. he's serving his first term in the senate. last month republican senator ted cruz launched his campaign and hillary clinton is expected to announce her intentions sometime this month. >> and just days to go before the apple watch goes on sale but will it be a game change senator we're going to discuss that, next.
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welcome back. samsung forecasting earnings $5.4 billion. the highest in three quarters. it comes ahead of the galaxy s6 launch. they placed big hopes that it could cement a turn around at the company. we'll see if it takes hold until we see margins in the 4th quarter. they jumped to 7.5%. back in the hayday there were around 5%. they're coming out with a note saying these margins could go back to 12 or 13%. it all depends on an s-6 doesn't it? >> it's been a challenging year
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for samsung to say the least. they have been losing shares to chinese players. even in india. losing to micromax which offers lower priced phones. will the s6 be a game changer and enough to win back it's audience in emerging markets. many analysts say no and that's because the price point alone doesn't compare. you can have the sexiest device out there. if the price point is higher to what other players are offering you'll lose it. >> good point. >> we'll see what happened with samsung. speaking of the smartphone space apple invited a group of developers to its labs to test their apps on the new apple watch before march's press event. only the likes of uber at facebook can can test their
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apple watch apples. most developer hearsay to build apps for the smart watch without ever actually coming in contact with the device. >> the smart watch is due to roll out in nine countries from the 24th of april but would be customers in switzerland won't be able to get their hands on it until the end of the year. this is due to a property issue dating back to 1985 according to the swiss forecaster. >> swiss watch exports rose 1.7% in the year of 2014. it's been a challenging time for the swiss watch makers. a weak number that analysts say will likely be pressured by the likes of apple that are now entering this space. that will be the on going battle. the swiss watch makers against apple and samsung. that also has a wearable on the market. what that means for them. >> this watch under a lot of pressure. i talked to the co back in february and he said we are watching on a smart watch and
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then a month later they came out with it. it will never be a full smart watch. they said we're not a consumer electronics firm. we won't be producing a smart watch. is that the right strategy. could that be the kodak moment for the watch industry? >> that's a big fear for these players. but a lot of people say that's a luxury end market. they still want the gold rim and the diamond encrusted watch. we'll continue to watch this space. still to come on the show larry fink becomes the latest market heavyweight to sound alarm bills over the smart dollar. find out more after this break and take a look at futures. we did see a rally on wall street yesterday. dow pointing to a nine point higher open. the nasdaq up about nine point. we're back in 2.
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>> it's 10:30 a.m. here in london. welcome everyone. >> here are your headlines from around the world. >> delivering a deal. fed ex swoops in with a $4.8 billion deal. both sides are confident that they'll pass competition hurdles. >> u.s. futures pointing to a
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mixed future as they digest the jobs report. hitting fresh highs after the long easter weekend. >> divisions he emerge between the u.s. and iran over when exactly sanctions will be lifted following a landmark nuclear deal but teheran gets to work immediately sending a delegation to china to discuss oil supplies. >> and republican senator rand paul gets set to join the race for the white house in 2016. he plans to official declare his candidacy and in his home state of kentucky today. >> if you're just tuning in thank you for joining us here on worldwide exchange. yesterday the big reversal on wall street was the big talker. looked like it would have been an ugly day after friday's weak jobs report but u.s. president bill dudly made dovish come entmentscomments.
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in term they went higher. futures pointing to a higher open. the dow up about 12 points. a dose of economic data here in europe on the services pmi front. the number out of spain is particularly interesting. 57.3 marking the 17th straight month the index has been above 50 which of course indicates expansion. analysts siting improvement in the labor market oil prices and higher consumer demand. the bank of spain did say it expects gdp to grow by 2.8% this year. the spanish equity index up .8% of today's trade. we're in the green across the screen. positive territory for all the major indices here in europe. on the currency front let's check out the dollar index. a 25% rise in the dollar versus a basket of currencies in the nine months from last june to march. we're looking at the index
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higher by .9%. we have been seeing volatility over the past week given the recent bout of disappointing data. we're down .8% over the past one week. >> recooping all the losses there. meantime, blackrock ceo larry fink is worried about the impact of the strong dollar. he's expressing his concern in a letter to shareholders that will be included next week. he thinks that dollar could threaten to undermine it and send the economy into a slow down. his numbers come as the dollar index has risen 25% from last june until march. let's talk more about the out look for the u.s. dollar with the manager director and strategist joining us from toronto. thank you for joining us bright and early. now if we take a look at cftc positioning in the dollar that seems to be coming down from the
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extreme levels we saw at the end of november and december. would that automatically mean we're seeing further weakening in the dollar? >> well certainly nothing in this market is automatic but what i think the cftc data means is we haven't been at a new high since last november and since then it's trickled lower. we have seen this overall general narrowing in terms of the u.s. dollar long positions and we have two currencies now held net long and they're short position against new zealand and swiss and what that data is telling us is there's a small shift in sentiment and it's highly reflective of the market. for the u.s. dollar it's much more of a range trade than at the beginning of the year when everything lined up for a strong, strong u.s. dollar. that's faded and now it's this environment with uneven data and improvement out of europe. weakness out of the u.s. and all of that is creating this environment where people are having a second look in terms of
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the u.s. dollar holding up long against absolutely everything. >> 21% raise over the past 12 months despite this economic data over the past one month. so my question is does the run continue despite mixed economic data. >> it depends on your timing. if you're a near term short-term trader in this environment where we have these big ranges but we really end up overall in a range. but in the medium term the fundamental are still there to support a stronger dollar. there was 10 and 11% depreciation. so it depends on your timing there. for a near term trader the tuns are playing in that range and looking for big moves and data
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releases because almost every central bank is highlighted. how data dependent they are and that makes the data very very important important. >> can increasing swree owe political tensions drive investors into the yen which is seen as a safe haven trade? >> it's funny. they're the ones always contained. they have a fundamental picture that's deteriorated. they have a bank of japan likely to increase stimulus but all of that gets offset because you this risk aversion and our overall theme is you have dollar yen moving higher overtime but that gets interpreted and that pulls it back but all in all dollar yen should close in higher levels than it's out. that continues to get interpreted but i think for yen that's the story is you have this fundamental picture that hasn't improved and continued to
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deteriorate deteriorate and we're likely to see more stimulus to drive dollar yen higher. >> what do you do with the euro dollar now? we see squeezes to the outside as we saw back to 110 and we saw that the week before last and then on the back of greek uncertainty and the record positioning we're seeing to the short side we're seeing euro dollar continue to drift lower. with that volatility where and how do you want to be positioned? >> for the euro it's still a negative story but it's going to take a catalyst to break us through the lows. we were at the 104 handle a few weeks ago in march. we need a new catalyst to break us through there. it's likely to come from the fed. as we move closer when some of the data from the u. s. begins to firm in q2 that's where we see europe pressured lower
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again. it's that range trade environment and you use the current range but it's a story when we get in later in q-2. you see the data improve and overall the fundamental story is significant stimulus from the ecb. you have the negative interest rate which is is drawing flows outside of europe and all of that weighs heavily on euro. >> thank you so much for your time. range bound trading for the euro and the dollar. managing director and chief fx strategist. meantime crude prices are back in the red this morning after a note from goldman sachs suggested prices would need to stay low for longer before we see a real slow down in u. s. production. oil enjoyed a rally on monday as investors eyed the disgreelt between teheran and washington on a sanction's phase out and saudi arabia raising it's prices to asia.
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>> it was a 5.7% move to the upside for brent. saudi arabia raising prices for asia. that signals higher demand for the likes of china but the other question is the u.s.-iran nuclear deal coming together. how quickly could iran's oil come back online if sanctions when and if they are lift what had does that amount too and if they have the infrastructure in place to support the type of demand they could see from the big oil majors around the world. >> that's a very good point seema but a number of analysts said to me that iran has around 25 million barrels in oil sitting on tankers. they could export that right away. so once that is out of the way that's when there will be question marks about how they can build that infrastructure but they have a good back load of oil. >> at the same time morgan stanley saying it doesn't come back online despite sanctions
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being lifted to 2016. >> they said it wouldn't be a difference in the physical market until 2016. >> all right. well let's take a look at the other top stories at this hour. congratulations to duke university as the men's basketball team came from behind to beat wisconsin 68-63 winning the ncaa championship lead by a pair of talented freshmen. they outscore them by 14 points. it's the fifth title for duke and the coach. and the first for the school since 2011. tonight is the women's championship game between notre dame and connecticut. >> did you get it right in your march madness bracket? >> i did not get it right. i lost very early on. i was hoping the oregon ducks would do well. i went to washington but i'm from oregon so i support both teams. >> all right. congratulations duke then. in corporate news viacom will take a charge this quarter to
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cover the cost of job cuts and write-downs the value of underperforming shows. the layoffs effect 400 people while the write-downs effect csi and entourage reruns. they're down by 7.7% in european trade. >> weinstein company is in talks to tell to itv. they're best known for movies such as the king's speech and the artist. itv has been busy on the acquisition front buying the dutch company behind the voice and left field entertainment that produces popular shows like pawn stars. itv is up better than 1% here in the u.k. trading at 253. >> still coming up on worldwide exchange fed ex delivers a bid for tnt express but will regulators give the buyout a green light or could fed ex
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suffer the same fate as ups? we discuss after this short break. we'll be back in two.
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senator rand paul plans to announce today that he is getting into the race. paul is the son of former
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congressman ron paul that ran for president three times. tracie potts is in washington with more on that story. hi tracie. >> hi the official announcement comes today from kentucky. he will then travel to some other key early primary states new hampshire and iowa and south carolina and nevada. he called himself a conservative liberal thinking libertarian thinking however he may have a big challenge within his own party. his own party's base. he's pulling well against hillary clinton also expected to announce soon she has already rented office space and hired the same consultant that softened up michelle obama's image. >> thank you so much. fed ex strike ace deal today to buy tnt express. a pretty big deal. landon is at cnbc's hq with all the details. >> that's right. fed ex is ramping up it's presence in europe and snapping
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up it's dutch rival for $4.8 billion in crash. it will pay just under 9 billion. that's a 33% premium. as part of the deal they'll sell airline operations. the largest shareholder supports the fed ex offer. postnl holds a nearly 15% stake in the company and says it will tender those shares. in a statement fedexchairman and ceo says it will help the company broaden it's portfolio. they had a better than expected 53% jump in third quarter profits last month. while they didn't solicit an offer it's good news from a financial and nonfinancial view. the companies expect the deal to close by the middle of next year without any major antitrust concerns. it comes after they blocked a proposed merger between tnt and ups. since then they have been hurt
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by operational set backs and growth and scaled back it's operations. they deliver about 1 million packages a day. it connects nearly 40 countries. they reported revenue of $7.3 billion last year with 2-thirds in europe. that's a fraction of the 47 billion made last year. they issued a profit warning and told investors not to expect any improvement until 2016. up about 30% and post nl up about 12% while fed ex is flat. >> thank you for that. before we go to break these are the headlines as you were just hearing, fed ex delivers a $4.8 billion bid for tnt express as it looks to expand to europe. and the countdown for the apple watch is underway and rival samsung gets set to launch a new galaxy.
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welcome back. let's show you european markets. we're seeing quite a lot of green here. we're shrugging off the weak jobs report out of the west taking queues from the asian session where we saw broad based gains and yesterday's strong session in the u. s. the dax higher by 1%. ftse 100 higher by 1.3%. a little bit below expectations but at least they pointed more improvement for the euro zone and of course we are also lifted by that big m and a deal. fed ex struck a deal to buy the dutch package delivery firm to expand in europe. fed ex is paying 8 euros or just under $9 a share for tnt. that's a 33% premium to last
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thursday's closing price. they say it owns nearly 15% stake and support the offer and they also say the deal will transform fed ex's european operations and accelerate global growth. let's look at how the share prices are doing. postnl 13%. surging by 30% royalmail. seema. >> mna will be in focus in today's trade. let's look at u.s. futures. we did see a reversal in yesterday's trade. the disappointing jobs report on friday suggesting that a rate hike won't come until september. we also got the dovish commentary. the dow up about 14 points in premarket trade. the best performing sector in yesterday's trade was utilities. so the rate sensitive sectors getting a bit. the nasdaq up 1.6 points and s&p
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500 down but just fractionally. let's look at oil prices because that caught the attention of investors yesterday. about a 5.6% move to the upside in oil prices. brent crude down about .5%. wti crude down about 1%. the reason for the rally in yesterday's trade, saudi arabia raising prices on the oil it sells in asia. >> blackrock co is worried about the impact of the strong dollar. he's not the only one. he's expressing his concern in a letter to shareholders that will be included in the company's annual report next week. he says it could threaten to undermine u.s. business confidence and send the economy into a slow down. it comes as it has risen 25% from last june to march. let's take a check of where the dollar rates are trading this morning against the euro. we are looking at a 109 handle. we're just off the session lows but down by 0.6 bkt so the
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dollar is making quite a come back and really back to the levels we saw before the payrolls report. >> following the 25% run. it's been up since june of last year. let's get you a run down of what to watch this trading day. we'll get the job openings at 10:00 a.m. eastern and consumer credit this afternoon. earnings look for results from international speedway which owns several nascar tracks and dave and busters. apple has invited a select group of developers to its latest labs in california to test their apps on the new apple watch before march's press event only the likes of uber and facebook had a chance to test their apple watch apps due to intense security most developers previously had to build apps for the smart watch without ever actually coming in contact with the device. >> now you would hope they're more robust if there's a lot of
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testing. what else should investors be watching out for when it comes to apple this month. >> apples investors hope the month of april showers them with greater returns. the tech giant stock is soaring up 15% so far this year. more than 60% over the past 12 months. the next few weeks will be critical in determining where the stock is headed. the action starts this friday. that's when the company is accepting preorders for the apple watch and apple is making a big marketing push releasing new videos of the watch over the weekend as well as e-mail blasts. analysts think apple will ship 14 million watches this year. that's a drop in the bucket compared to the more than 74 million iphones the company shipped last quarter alone but if apple begins offering more killer apps for the watch which launches april 24th sales could surge. the next big date on apple's
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calendar would be april 27th when the company reports 2nd quarter earnings. wall street expects eps of 213 on revenue of some $55 billion. a more than 20% jump on the top line. rbc thinks apple will deliver better than expected q-2 results but the big news he says will be ceo tim cook's decision to launch a $200 billion capital return program. that staggering number would, according to him, represent all the company's free cash flow over the next three years. just as important is q-2 results and capital returns will be apple's q-3 guidance. investors will want to know how much of a drop if at all the tech titan sees in iphone demand after the initial global rush to buy the iphone 6. for cnbc i'm josh lipton in san francisco. >> let's look at apple shares up just about 13% year to date. all right. let's see. up about 20% over the past three
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months trading at $127. but as josh was just pointing out a big month for apple. >> let's turn our attention to greece. the greek finance minister told a greek newspaper that a funding agreement must be reached at a meeting with the euro group on the 24th. he also said athens will meet all imf payment deadlines. this comes ahead of a 450 million euro loan repayment due later this week. that's why we're seeing greek shares rising today. that would have been the first default of an imf loan ever. it's not a default right away. you get 30 days leeway to pay it back but that would have been a very strong message to the rest of the creditors but they're paying it. >> the weak drama continues and we continue to see volatility in the greek equity market and bond market but not in european market. investors seem to be discounting the drama taking place and focussing on economic data which
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has been encouraging look at the euro zone. >> and they're focussing on qe. >> the economic data is a buy product of qe. >> all right. >> steve will be discussing greece with christine lagarde this thursday. that's a first on cnbc interview. that's it for today's show. i'm carolyn ross. >> i'm seema mody. thank you for joining us on worldwide exchange. we'll see you tomorrow but don't change that channel. squawk box is next.
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>> good morning, delivering a big deal breaking overnight. fed ex buying the european rival for $4.8 billion. the rates for the white house picking up senator rand paul
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ready to officially throw his hat into the gop ring today. back to school starbucks expanding it's college tuition benefit program for workers and duke beats wisconsin to win the ncaa title game. it's tuesday april 7th 2015. can you even spell it? and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> we are discussing how to spell it. good morning, welcome to squawk box on cnbc. becky and and drew are off today. congratulations to the blue devils this morning.
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if you went to sleep early you missed duke beating wisconsin 68-63 to take home the school'sing fifth ncaa men's basketball title. students celebrated with a controlled school's sanctioned bonfire that lasted until the early hours this morning. it could be going on right now. many elated duke fans off campus too including our own john harang gets harwood that will join us definitely sleep deprived.

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