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tv   Worldwide Exchange  CNBC  April 9, 2015 4:00am-6:01am EDT

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welcome to worldwide exchange. >> hi everyone. i'm seema mody. here are your headlines from around the world. >> chinese investors pour money across the border with brokerage stocks leading the way. >> european markets push higher after a strong batch of data boosts sentiment. exports and imports beat expectations while auto sales confirm the recovery is intact. >> vivendi increases shareholder
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pay out. trying to head off a potential conflict later this month. >> a nuclear deal with western powers won't go through unless all sanctions are lifted. he is also calling for an end to all air strikes. good morning everyone you're watching worldwide exchange. we have a jam packed show for you. >> we do. >> we'll talk about the fed and fomc minutes although they didn't move the markets that much. we saw stocks between gains and losses. treasury prices didn't move that much. overall nothing new. >> it was a choppy session as you were indiana state kiting. investors trying to get their head around when the fed will raise rates. they're putting a lot on the stronger dollar and seeing those as head winds. especially if they want inflation up to their target of
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2%. that seems to be unlikely in the near term tnchts other big story is the rally on the hang seng in the last couple of trading days. it's higher by 2.7% currently but we've seen huge moves. very high volatility there. brokerage houses including china galaxy securities they held it in hong kong. at one stage in early trade it was higher by more than 6%. it's highest level since january of 2008. sighting money flows from china as one of the reasons behind today's gain and we've seen these massive ones but the hang seng has always been lagging a little bit and this is what is moving the gains. >> you're quite right. all of those reasons are
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contributing to the melt up we saw today. extraordinary for the hang seng. we closed just off the highs but you mentioned the catch up with the shanghai yes it has lagged and there was the three daybreak since the market closed thursday and back online. there's a lot of money being deployed to scoop up attractive asset there is in hong kong. the stocks at a 20% to 98% discount depending on what stock you look at. it's starting to narrow. incredible turnover today. record turnover in fact. it surpassed what we saw in
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2007. here in lies the risk. 2007 was the height of the china equity bubble. is there a bubble that's going to pop in hong kong equities? we don't know but the chairman at the hong kong stock exchange warned that investors should tread carefully. we look as though we're at bubble like proportions although valuations are still quite attractive. especially for mainland china equities that are not fully valued yet according to some. let's wait and see. it will be a big test because we get indicators coming out of the mainland. back to you. >> this is a big move in the hang seng index. is this mostly retail participation driving stocks higher? >> that's a big mystery. that's what i'm trying to fathom out myself. it's a lot of mutual funds in
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the markets. some believe it's a lot of retail investment coming out of china. also there's foreign institutions at work in this market since it has opened up. it's been an open market for quite sometime now as is the hong kong stock quite broadly. still trying to get an angle on that. if it's hot money in flows going into this market they could leave as quickly and that ally is the risk i think. >> thank you so much for that report. up 2.7%. let's also switch our attention to oil because we're getting flashes from the iranian oil minister that says they see china as a long-term partner in the oil industry and crude markets are still oversupplied. we have been seeing a lot of volatility over the past couple of days. yesterday oil prices dipped by around 6% on concerns over a
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build in inventory in the u.s. today the oil prices are moving higher. wti crude at $51.17. up about 1.5%. brent crude at 56.38. a gain of 1.5% but the iranian oil minister says crude markets are still oversupplied. >> we are one hour 15 into the trading session. inching higher by a third of 1%. we're seeing auto stocks leading the charge today. we have strong data in terms of car registrations spreading as well. also we are seeing the dax high by a third of 1%. exports came in better than expected. quite a bit of a rebound from the start of the year. higher by 1.5%. the ftse 100 higher by a similar one. also want to show you the currency markets. the dollar getting a lift from the fomc minutes yesterday but
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also we had two fed presidents speak about the possibility of a june rate hike so a lot of focus on the data points on the macro side euro dollar really range bound. also eyes on the pound sterling. it's lower against the u.s. dollar. no move expected on rates. what a move in yesterday's trading session. we saw a 7% drop almost for the price of crude and this is after we got the eia data showing that the stock build had been the highest in about 14 years and that's why we saw the biggest drop in two months for crude prices. we're seeing a little bit of buying back this morning, higher by 1.4%. brent crude also inching back up
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by 1.5%. >> we are continuing to keep an eye on the story out of greece. we saw greece present their reforms list. now we're learning from a local newspaper that the euro zone deputy finance minister is giving them a six day deadline to revise their forms. they're giving greece six days to revise their reform list. now speaking of greece reuters is reporting greece will pay the 450 million euro loan installment to the imf later today. this after the russian president confirmed greek prime minister did not ask moscow for financial aid during talks yesterday despite this, the leaders had discussed cooperation and confirmed russia could provide greece credits for large joint projects in the future. >> we talked about the option of
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creating joint enterprises. it won't do any harm to russian agriculture producers because they will be involved in this process but most importantly the best way is to stop this war of sanctions and counter measures from our side. >> let's kick things off with greece. it's repaying the 450 million euros to the imf today. it has massive repayments. 9 billion euros. if no help is forth coming how will they manage to do that? >> there's a deal in the coming months. we have been focussing a lot on the imf payment. nobody knows the greek public finances at the moment.
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the next payment is in may. we need to see progress at the next euro group meeting. >> at this point consensus is a greek exist is a lot probability event but the question is are investors miscalculating grexit? >> it would be a new event which we haven't really seen and it will open a lot of issues which we're not completely understanding but there's so much to lose for both parties to not reach an agreement which is why most people have a baseline of some form of agreement. remember what we're discussing now is the extension of four months but what is behind is that greece needs a new package. a new bailout or follow up agreement whatever you want to call it. >> what probabilities do you assign to the possibility of a
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deal. not just a match up but a sustainable one. >> we only put 10%. we put a high probability for kicking the can down the road which is basically an on going continuation of this drama or tragedy whatever you want to call it. but this could lead into something more sustainable. >> you're going to stick around for the next 20 minutes. we'll talk about germany as well coming up in a little bit. the senior european economist. >> coming up on the show it's nearly time for tee off at the 2015 masters but what does nike's latest brand say about tiger woods? we break down which players are most successful in putting a profit. >> plus investors are not
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impressed with the sudden management shake up. details coming up. plus more women are climbing the corporate ladder but are firms doing enough to keep them there? we talk with helen, ceo of newton investment management in the next hour.
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>> welcome back. earnings beat forecasts but revenues fell shy of estimates. most of the growth over the past year came from new businesses such as aluminum products for the auto and aerospace sectors. >> we revised our demand number for 2014 when we saw the numbers come out. we saw demand growth for aluminum of 9% in the hast year and we believe this demand growth is going to continue. we think that the growth is going to be another 6.5%. that gives you an indication not only about the attractiveness of the end markets but also what --
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how aluminum and others are covering this. >> shares fell about 3% after the company reported a miss in revenue. trading down by around 2%. >> now let's switch over and get a check on shares of b.g. group and shell after that me kba merger was announced yesterday. they upgraded this morning to hold from sell on the back of that deal. bg down just fractionally on the day. royal dutch shell trading flat. >> let's take a look at the other top stocks moving in europe. shares are getting a boost after eric oleson was appointed ceo of the company. the long-term executive that serves as executive vice president at the company is set to take his post after it's completed shy of just one or 2%. i did catch up with the cio of
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the third largest shareholder and he was the one initially opposed to the choice of the ceo and i asked whether the new co should come from cemented history. >> not necessarily. it needs to be someone skilled at integrated businesses. the beauty of this deal is you're able to get better operating leverage out of your fixed asset base. the problem is too much capacity and driving down returns on those assets and what you need is someone that could go through the asset base and make sure that the most efficient assets are used. the best people are chosen to run those assets in a nonpolitical fashion as possible. so you need an intergrater and operator. >> that new choice. moving on vivendi mixed a deal
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with a u.s. hedge fund to increase payouts to investors heading off a conflict later this month. they'll increase total shareholder returns to 7.3 billion euros from 6.8 billion. shares high about 1.4%. last but not least u. s. network equipment maker has recommended a bit of 3 billion swedish pounds. shares rallying. the deal would boost the position in the long haul optical transport market. european car makers trading higher this morning lifting overall markets after data showed double digit growth for auto sales in spain, italy and portugal. bmw higher by 1.2% but fiat doing well by two. >> senior injury penne economist
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and we have been seeing a rebound in auto sales over the last couple of months driven by the weaker euro but is this cyclical recovery sustainable? that's a big question. >> well for the auto industry of course the cheaper euro will help an awful lot. at the same time we have to remember that auto sectors tends to have a cyclical pattern and in europe that's due and will last for sometime. when it comes to recovery in europe we are seeing a very very strong upturn this spring but it will probably last for this year and in the medium material we are much more concerned that the long-term problems of europe have not been solved and we would see a return to fairly low points higher ten shl growth rates in europe. what do you think is the driving
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factor here? there's a lot of positive factors being kitecited. not to mention lower oil prices. >> yes. i think the labor market for us is key. a key factor for germany, why it's doing so well and of course we have had a very good constellation of policies including the oil price. the qe programs. there's no more fiscal austerity and germany is the country that stands to benefit the most so you can understand it. >> there's always the concern that germany is too heavily relied on the export sector but even if they were to slow once again as we have seen at the start of the year that wouldn't be so bad because current accounts are what 8% of gdp? the rest of the world would be quite happy with the slow down. >> that's clear and everyone has been calling for germany to be
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more reliant on domestic demand. i think what we do up until 2019 and throughout that period we see the strength coming from the domestic side in germany so it's really consumption and it's interestingly investment is following so when there is demand investment is actually coming back. >> people holding shares in germany that percentage is very small compared to the u.k. or u.s. for example. so that means even though we're seeing record high after record high for the germany equity markets, the germans are not benefitting from that. they're not seeing the same level of wealth effect that u.s. investors or u.k. investors would be seeing. >> that's one of the reasons they feel a qe program will be less effective in the u.s. or u.k. i don't think anyone thinks that the wealth effect will be
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massive but what is interesting already is to see that it seems to boost a bit better confidence when you see markets coming out. >> let's talk about inflation because you say inflation should rise by 0.4%. it is expected to stay broadly stable. what's the driving factor? is it just lower oil prices? >> it's consumption. oil prices will have an effect in the short-term over one year but after that we're seeing a bit higher wage growth and that will push the companies to also try to recooperate that by high prices. >> all right. we're going to leave it there. thank you for joining us here on worldwide exchange. >> moving on the french broadcaster says it's been hit by a cyberattack that knocked out 11 television channels and
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it's website. france's foreign affairs minister says it's an attack on a new scale. he tweeted that everything was being done to find the people behind the cyberattack and punish them. >> let's talk tech. samsung releases it's latest rival to the iphone. the galaxy s6 tomorrow. they expect the new device to break shipping records following a string of positive reviews. the smartphone will go on sale in 20 countries with samsung hoping it will kick start a turnaround in earnings. of course we have been talking about this all week. a lot of focus, excitement around the samsung s6. the question is will it do well? will it be a game changer? samsung has been losing market share to the likes of apple as well as chinese players over the past couple of months. >> margins are very important here because their margins, they have dropped quite considerably compared to the haydays a couple of years ago. there were 15% back then and now they dropped quite a bit.
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there's some analysts out there pretty optimistic that we can get those margins back up but it all depends on the attractiveness of the s6 edge. it has the big screen. shouldn't be any screen envy should there? >> had a big screen and also a curved screen. that will be interesting to see. it's the first curved screen to entder the market. will it be enough to spur demand. do you need a curved screen? >> it's so fun. >> what are you going to use it for? you will probably be able to see ticker symbols on it. maybe the weather. >> apparently if you turn it around and you want to see who is calling there's a color that shows you. if you're calling me it will be red. if my boss calls it will be blue. >> is that good or bad. >> i'll know not to answer. just kidding. >> the reviews are in for the apple watch ahead of the much anticipated presale release tomorrow. analysts verdicts are are mixed with many reviews citing the large number of notifications as
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a problem. others such as the new york times and jeffrey fowler from the wall street journal say they have fallen in love with the apple watch. apple stock was downgraded from a hold to a buy ahead of the device going on sale. now the new york times piece said there's very very steep learning curve attached to wearing the iwatch. it's not for everyone. it's really just for the geeks, the tech guys among us. >> whereon. i think there is a learning curve associated to every apple product launched. people were hesitant about whether this computer tablet would be used but look at the type of sales they have seen since then. they established this new product category and since then we've seen the likes of amazon microsoft, blackberry all attempt to gain market share in this space but apple leading the charge there. irs phone 2 it-- iphone 2 was very different than what was out
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there at the time. a lot of interest in the iphone. record sales. >> and as the tech analyst, he has written and that's quoted in the new york times piece too. the iwatch that would serve as a general purpose remote control for the real world. it's not really going to be a watch. this is an extension of everything we do with our iphones and the ipads anyway and you could apparently open the hotel door. >> you can call an uber you can do a lot with the iwatch -- the watch excuse me. you can preorder the watch and they are having an event. strategic location. they're picking a high end retailer to launch their watch. of course kind of their attempt to play a bigger role in the luxury market. so we'll see what demand is like. we'll be there live. >> it's very expensive still. 350 is the cheapest one and it can go up to. >> 10,000 pounds. >> 10,000 pounds. 17,000 dollars.
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wow. >> apple at 125.60. we'll continue to talk tech but still to come on the show the indian prime minister lands in paris for his maiden european visit as his government gets a boost from ratings agencyiesagencies. find out more after this break.
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>> chinese investors pour money across the poorder with brokerage stocks leading the way. >> european markets push higher after a strong batch of data boosts sentiment. german exports and imports beat expectations while auto sales confirm the recovery is in intact. >> vivendi increases shareholder payouts. the french immediate dwra groupmedia group trying to fend off a conflict. >> a deal with western powers won't go through unless all are lifted. they're also calling for an end to air strikes. >> let's get a look at asian markets because we're seeing big moves there. the hang seng index hitting a 7 year high. the nikkei above the 20,000 mark. the mostly dovish minutes from the latest federal reserve
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helped them overcome the prices. up 707 points. the nikkei up by three quarters of a percent just below the 20,000 mark. what are we seeing in europe on this thursday morning? we're higher across the board. despite the mega merger being announced yesterday we did see the ftse 100 end the day lower but right now up by around .4%. the german index we got a rebound in auto sales by 1.1%. france and italy trading in positive territory. >> oil clawing back some of yesterday's losses. we saw that 7% plunge for the price of crude. 56.67. another huge build in inventories. the dollar is building on to
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yesterday's strength. we're seeing the euro dollar pair at 10740 and sterling volatility increasing markedly ahead of the election and the boe meeting later today. that should be a nonevent. ratings agency lends the indian government a vote of confidence upgrading to positive from stable. the agency expects policy makers to enhance economic strength in the medium term however moody's refrained from upgrading the actual rating with concerns of inflation. they also cited risks from india banking sector. >> this as prime minister modi kicks off his maiden visit in paris today. he is due to hold talks with hollande about future business days. he will head there on saturday to visit an airbus facility and on sunday he will head to
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germany where he will meet with angela merkel. his tour wraps up in berlin on tuesday before jetting off to canada. joining us to discuss more about the opportunity to invest in india is the cohead of research. >> please excuse the american here at the desk. tell us more about the opportunity to invest in india. we have been seeing this mega run over the past couple of months. it's come off it's highs over the past month but still a lot of focus on mody. the promise for economic reform. he has been making this case for investment in india as part of the campaign. france now and germany next week. how important is bilateral trade to india's growth prospects. especially if india wants to out pace china in terms of growth in 2015. >> the upside from india is on the domestic side. the real constraints to growth in india are red tape, lack of reforms, lack of efficiencies within the indian economy and
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that's exactly what modi is addressing so the focus will remain a domestic focus. that's the right focus. >> do you think there will be big developments out of the meeting he's having with french president hollande as well as angela merkel? >> no i don't expect any major announcements to result from that. the main benefit is that it will benefit those european leaders reputations. he is popular right now. being associated with him will benefit their image. >> on a company level, we've seen deals being stalled and they would probably want to expedite some of the deals. we'll see what comes out of it. why has it taken modi so long to visit europe? because first he visited a number of asian companies and then the u.s. >> he's a pretty savvy guy and wants to be associated with success and europe is on fire now so it's a good time to
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visit. he gets benefit from associating with europe. there was stronger growth in asia and the united states so modi is timing himself to be associated with growth story success stories. >> how does he reconcile that he's friendsly with the russians and the europeans are not so much very good bedfellows with the russians right now. >> absolutely. russia has been by far the best bond market rally in the world in the first quarter. they have halved in russia and the roubl the rouble is trading at a 52 handle versus 70. that's not such a bad place to be associated with either. >> there's talks of a nuclear visit visit. what are you expected about that. >> there will be deals struck and association agreements and mutual agreements and this is
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good. it's making people aware of india in these countries. india needs to open up more. it's still a very closed country. if you want to invest in india you can go through the stock market but you have to go through quotas but in the bond market you're barred from doing so. if modi is going to take his idea of getting stuck in with business in india he needs to look at some of the barriers to foreign investors going to india. >> i think it was ubs that came out with a call this week saying that india is the most crowded emerging market out there along with other countries. >> it's a favorite destination for investors. not just in india but around the world that are excited about what modi is promising but is he overpromising and when do we start to see changes to the new economy. >> but it's been underperforming. it's not like india has been outperforming but it's a crowded
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trade. >> a lot of it is driven by foreigners and they've had a good trade. earnings have not quite caught up with expectations and we're seeing an adjustment in the equity market as a result of that and that's an opportunity to add further because we're looking at gst passing through in 2016 and further reforms coming down the line so i think the story is going to keep going and you can use these to add to positions. >> investors of course betting on economic rebound but what happens when the fed does raise rates. we could see that taper tantrum. >> there's no doubt whatsoever that emerging market financial asset prices are going to be volatile when this happens. the question is whether the fed hikes pose a serious fundamental risk to em and given the much higher growth and much lower debt levels the answer is no. so that volatility is something that investors should be using
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to add positions at cheaper levels. >> is there one emerging market that you think that is best positioned to fend off the negative implications associated to a fed rate hike. >> yeah china. china is beyond all other countries in the best position to weather whatever is going to come from the global marketplace. >> thank you for your time. appreciate it. co-head of research at ashmore investment india. let's switch our attention to iran. >> more cracks emerge in the tentative deal between iran and the five major powers. rouhani says teheran would only sign it if all sanctions imposed were lifted on the same day. western governments said the roll back would be done gradually. elsewhere the wall street journal reports teheran is trying to buy a swiss petroleum refinery as an outlet for the crude. with a possible deal just around the corner the reorganization of
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power in the region seems well underway meaning big deals in store for american and british arms dealers as hadley gamble reports. >> with months to go before a final deal could be reached with teheran over the nuclear program u.s. officials now say they plan to bolster defenses for suni arab allies in the gulf including a commitment. >> they face a range of threats and has for a long time. >> the u.s. lead invasion of iraq in 2003 that had abandonment of mubarik left the kingdom feeling vulnerable and with the yietszunited states moving closer to a reproachment with iran a new generation is taking charge. >> when you want to know what is going on in saudi foreign policy you call up washington. this is over. you have to call them because they're not going to go through washington to do what they have to do. >> saudi arabia looks to project
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it's influence and further a field in yemen and beyond they're finally making use of a multibillion dollars weapon's cache forced from american and british suppliers. all of those orders mean big business to some of america's top defense con tracktractors. spending a record $6.4 billion and beating out india to become the united states largest export market. >> and the kingdom isn't the only country stocking up. total shares of weapons to the gulf states are up 70% over the last five year with the u.s. accounting for nearly half of all armed shares to the region. >> saudi arabia has a very very strong conventional military capability. they're better able to absorb the advanced weapon riry they're buying. >> teheran's crippled treasury left them ill prepared to meet
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the challenge of a arab force in the latest high-tech military gear and that's good news for a white house unwilling to let a regional rivalry derail a historic nuclear deal. >> an interesting report by hadley but aren't they adding more fuel to a bigger fire. >> basically what you have here is saudi and gulf allies feeling abandoned by the u.s. especially over this iranian nuclear negotiations. 9.3% of their gdp in 2013 was military spending and that's not unheard of if you look at the history there. what's interesting going forward is the mideast market they expect $110 billion worth of deals over the next ten years. that's good news for u.s. defense exports. even u.k. defense exporters as well but you have to look at this in terms of the broader context and is it really within the best interest of the west to be adding fuel to that fire. >> mixed messages on whether
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when and if sanctions will be lifted and there's reports from the wall street journal that he teheran is looking at investing in a swiss firm. >> they're putting the cart before the horse but certainly mixed messages even still coming from teheran versus what's coming from the white house and it's going to be interesting going forward. everyone in the united states is obsessed with what this iran deal means and they have very good reason to be but no one is talking about what is also happening on the flip side of that with the gulf arab allies and the united states is committing to expediting the weapon's deals that have already been made and are also committing possibly to a nuclear understanding with the gulf states. these guys are scared. we have known this for awhile. they have expressed these problems and fears they had many times. now the white house is inviting them to the u.s. to have more conversations about what this
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means going forward. u.s. is continuing to play both sides. >> want to come back to the weapon's package. how does the u.s. feel about the fact that saudi arabia is stocking up the weapons and the west is playing a big part here. >> quite frankly all the weapons deals have to go through some form of congressional approval and they have done so in the past but that was the understanding that the gulf arab states have not been using these weapons. the joke used to be they got parked out in the desert and never used. so billions of dollars of weapon systems they have been using over the years, particularly saudi arabia. there's a 20 year deal of $60 billion on going with saw day rab i can't for example but at the same point no one thought will would be a case in which they would use these weapons and we put them in a position where they feel like they have to. certainly with what's happening in yemen. >> thank you for that. it's reported that at least four oil and natural gas tankers that were headed to yemen have been
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divert diverted. air strikes were targeted at rebels in the yemen capital. the world health organization declared an unfolding humanitarian crisis in the country with nearly 2,000 people wounded and 100,000 displaced. the military campaign which has now entered it's second week has so far failed to stop the advance on the country's second largest city. >> the biggest risk to the country's economic performance is a slow down in neighboring australia saying the strength of the qe is a worry. they spoke exclusively to matt taylor about the currency head winds. >> depending on how you measure, merchandise goods china is bigger but overall australia is big. if you take 2015 there's $81 billion of investment out of
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australia and into new zealand alone. higher exchange rate slows up the opportunities. our largest source by quite some margin. about 2.9 million tourists come a year. half of them are australian. so it won't stop them coming. the question is do they spend a little bit less when they're here. if they bring 5,000 australian dollars to spend with them over the weekend they'll probably still bring 5,000 in local economy. so strong australia is good for a strong new zealand and despite the rivalry, sibling rivalry that exists between the two countries the ruth is we want australia to be strong. >> the currency wouldn't get to a level where it would be so alarming you would consider
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intervention. >> realistically having spent 20 years in the financial market a lot of it in charge of merrill lynch's foreign exchange business globally i'm skeptical about intervention. it's not my call. it's up to the reserve bank but history tells you it's not a successful strategy. it sort of works if you're at an extreme point but if you're trying to buck a trend, in my opinion it doesn't work well. so it's not just that that's strong. new zealand against the euro is very very strong qe euro. we see the u.s. economy being much stronger over the next few years. we're quite bullish about the u.s. so i think janet yellen will start raising rates. you will actually see the rate might come off on the back of different circumstances in the united states. >> that was new zealand's prime minister speaking to matt
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taylor. still to come on the show the world's best golfers are in augusta georgia for the first major tournament of the year. it's the masters. they're hoping to hit an ace or hole in one like jack nicholas did this week. we explore the money behind the brands of elite golfers like tiger and rory coming up next. ♪ help an oil company overcome minus 47 degree temps, 5 foot ice, and 16 foot waves, to safely keep crude oil flowing 365 days a year. when emerson takes up the challenge
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it's never been done before simply becomes consider it solved. emerson.
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you can pay a monthly fee for an ad fee version. >> they spent a letter to its content creators asking them to sign off on a new contract agreeing to the change. it's unclear how much it will cost or when it will launch. they first offered channels in 2013 and launched a paid subscription music service in november. >> all right let's move on to zinga because what is old is new again. zynga founder is returning to the ceo job at the online gaming company taking the reigns back. the leadership chain sends the wrong message as zynga was starting to move in the right
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direction. they fell about 10% in after hours trade. it's down about 40% over the past 12 months carolyn. there's been a challenging time for zynga as it struggles to stay competitive in the gaming space given the gaming companies in the valley. plus a lot of success stories with king digital with candy crush so it's become a very competitive environment. >> but still a very surprising move. under matrik the share of mobile bookings had risen from 60%. i know the share price had fallen but it seemed that they were going in the right direction. >> mobile there making progress but overall earnings in the last quarter zynga lost $229 million in 2014 compared to $37 million
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a year earlier. earnings are disappointing. that's why wall street of course has been on the stock. let's switch focus to sports. the first round of the masters gets underway in three hours. on wednesday some of the world's best competed in the par three contest. jack nicholas shows he has still got it knocking in this hole in one. that's pretty much how i golf. >> is it. >> there you go. many players bring their kids along on the course for the par 3. tiger woods let his daughter sam finish out this hole while his son charlie held the flag stick. how cute is that? a family effort. now rory mcllroy may be the world's top ranked golfer but more attention was being paid to his caddie from one direction. he hit the ball right into the water. >> nice one isn't it? our next guest says tiger wood's reign as one of the gulf's most
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valuable marketing assets is challenged by a new breed of players such as rory mcllroy. >> good morning to you. >> good morning. >> how marketable is rory mcllroy. >> hugely marketable. four major titled under his belt. endorsement value of 40 million across the year but what we have seen is an increasing awareness of his brand not just here in the u.k. but in the u.s. as well. over half the population are aware of that. 80% of those people finding him an appealing brand ambassador. he's known by a third of the population around the world so he's a hugely marketable young man. he's taking golf outside of the traditional broadcast coverage. you've seen him in men's health magazine and tying in one direction only adds that celebrity life style and
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marketability of him. >> changing of the old guard in the golf industry is that why you're seeing rory mcllroy do well when it comes to advertisements? >> i think so. we have three youngsters playing in that space. there's rickie fowler and jordan speith. they're attached to cool brands as well. puma and underarmour. nike investing behind rory mcllroy as well. there's a huge digital campaign going with nike. >> but what viewers also want to see is rivalry between two players. we had that in the past. now it's mcllroy fwens spieth. >> we saw a huge rivalry between mcllroy and fowler. that played out in the
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championship here in the u.k. i expect that riflevalry to continue. he'll be a challenger for the masters this weekend with. >> how does a company like nike market itself to the golf audience which is older than your average sports fan. >> so we're in primetime slot now for the golf equipment manufacturers. some say the masters heralds the start of the golf season and so there will be a significant amount of broadcast sponsorship more aimed at that traditional golfer. bridgestone golf in the u.s. will be running a broadcast program. integrated content with a golf channel in the u.s. nike kept their advertising more around youtube and things but there will be a lot of trade press and this is real primetime selling season for the golf equipment manufacturers. >> but advertisers don't spend
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nearly as much on basketball and football as on golf. >> sorry. >> advertisers spend less money on golf in comparison to basketball and football. what else needs to happen in order to make golf a more mainstream sport and marketable to customers. >> what nike has done is introduced new clothing lines as well. a more edgier appeal. they have a street appeal and street kred. taking the golfers outside to the mainstream sports press has been the big play. mcllroy is now fronting ea sports new golf game as well. that will start to appeal to a much younger and broader audience. we've seen the audience for the masters in particular come down over the last couple of years. golf is doing a great job for marketability and the players are a real catalyst for that. >> no longer just a sport for
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middle age men. >> no and the digital piece is really important. >> appreciate it. quick look at european markets. we are trending higher this morning to the tune of around a third of 1% overall. the ftse 100 up by .5%. the dax driven higher by auto stocks as is the cac 40. pretty strong auto sales for the month of march. >> what are we he looking at on wall street? futures indicating a lower open. after that mostly dovish fed meeting minutes. the dow down 45 points. nasdaq down 9 and s&p 500 off by around 4.
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u.s. few turs point lower-- futures point lower as they look ahead to retail sales. >> a jump in u.s. supplies as iran's president talks tough on final nuclear deal. >> jamie diamond goes on the defendive using jp morgan's annual letter to discuss a wide range of issues including whether they're too big and too
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complex. >> meet the oldnew boss. same as the old boss. analysts say the move sends the wrong message. >> welcome to the show on this thursday morning. we're looking at futures lower across the board. interestingly enough the fed meeting minutes were in focus yesterday peppered with dovish language. the s&p 500 seeing a choppy session in yesterday's trade trading lower and today the sell off could continue. the s&p 500 down about 5 points. the dow down about 40 points and it's the level it broke in early march down about 9 points in premarket trade. here in europe we're higher across the board. better than expected auto sales as well as export import data out of germany helping lift sentiment and you're seeing the repercussion of the deal. investors looking at that as a
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positive development in the oil and gas sector. the cac 40 up 34 points. a local newspaper out of greece reporting that international creditors are giving greece a six day deadline to revise their reforms list. we're looking at the ase. the greek equity index up about 1%. >> also want to look at currency markets. you mention the fed minutes yesterday yesterday. now two fed presidents indicating maybe june isn't off the table conspirely. that means the data points for the next two months will be very very important and the dollar is building on to yesterday's strength. we're seeing it pair higher by 0.1%. euro dollar losing ground off by a third of 1%. 10744 but that's been very range bound in recent times and cable. pound is lower.
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keep an eye on cable as we go into the elections volatile but also the boe decision later on today. and the oil markets we've seen oil price address gaining some of the ground from yesterday. brent crude higher by 2.2%. wti by 2%. yesterday we saw the 7% drop on the back of the eia report which showed the biggest growth in about 14 years. in the asian trading session that is the hang seng. we'll show you where the sang seng is right now. higher by 707 points. up by 2.7% but that's actually close to the lows of the session a whole degree of volatility here. why are we seeing the run up in the hang seng. >> what a melt up it's been today. we're up by 4% turnover incidentally at a record high surpassing what we saw in 2007. two reasons for this blistering rally. remember the markets have been closed since thursday.
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they came back online yesterday but there's a lot of pent up demand in energy still for hong kong stocks. the other factor is that the chinese regulators late last month permitted mutual funds in the mainland to start investing via the hong kong shanghai stock connect on the hong kong market. there's a lot of pent up money and pent up demand from the mutual funds being deployed on the hang seng after that brief three day holiday. i do want to say that the caveat is that we're approaching bubble territory given the fact remember that the turnover has surpassed the levels in 2007. 2007 being the height of the china equity bubble. the chairman of the hong kong exchange did warn investors to tread carefully so we're reaching pretty top heavy levels here in terms of volume at least
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least. it could build a case for more easing so the mainland equity markets will be watching that one. >> why think everyone agrees with that view on valuations. coming out with a note saying that valuations for the market are still very close to fair value. what do you say to that? >> they may well be but the question is in volume terms it's looking quite top heavy but i heard the same market to mainland equities as well. we've seen a sharp run in the last quarter as well. a lot of people still think that it's reasonably fairly well valued, yet to approach full value. there's a couple of risks here i think. i just feel that this run up in the equities market has been too soon and it is hot money and
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let's not forget we don't know the exact composition of this money. if it is hot money it can be withdrawn as quickly as it went in. that's the risk. >> i have a question for you on the oil and gas sector because that mega merger announced yesterday between bg and shell fuelled speculation that we could see further m and a. has that fed through to asia as well? >> less so in bound acquisitions. more so outbound deals. remember a lot of budgets have been slashed, especially among the big national oil companies over here. they are still looking at value. they're still looking at acquisitions especially in a dit stressed space in norkt america. i know they're out there looking assets in america and let's not forget also that the chinese and the malaysians have been active
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and the canadian oil sands. >> let's move on to the other big focus of the markets. there was a division over whether the central bank should start raising rates. minutes shows officials believe recent soft economic data could make a mid year move less likely. while several thought june would be the right time to hike others thought the fed would need to wait until 2016. every day there's a new fed official voicing their opinion on whether they should raise rates in june september, 2015. it's getting exhausting following fed officials and what they have to say and what they think over whether america can endure a rate hike. i wonder if we should focus less on whether a rate hike will come and more on the timetable and
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how fast rates will rise when in fact the rate hike comes. >> but the fact that they're talking so much is a good thing because that increasing transparency and tells how every member of the fed is thinking. that's really good and very important mechanism. >> that's interesting. >> if it were the other way around you'd be accusing the fed of not being transparent enough and not doing enough in terms of communication. it does blur the image and blur the picture but i just wonder if we're still talking about a june hike how is that going to happen if data continues to be slow. we need to see major revisions to the upside for the jobs data and other data. >> very disappointing. many say that's a lift in an otherwise long-term recovery in the jobs picture in the u.s. that's one thing we got from the fed meeting minutes yesterday. they're still data dependent and they want to see inflation although that doesn't seem to be likely given the lower oil
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prices that continue to be in focus. >> we'll take a look at today's other top stories. jamie diamond is defending the size of the bank in a letter to shareholders in the companies a annual report he says our mix of businesses, large doesn't necessarily mean complex. other crisis will impact the financial markets citing possible factors such as geo political issue or rapid rate hikes by the fed. die diamond also acknowledges jp morgan stock price hasn't performed well in the last several years blaming that on legal and regulatory costs. >> what is old is new again. mark pincus is returning to the job at the online gaming company taking the reigns back. the former head of the xbox division took over two years ago. analysts say the leadership change sends the wrong message as they were starting to move in
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the right direction. shares fell about 10% in after hours trade and it's trading down by around 7.9% in frankfurt. >> what was the wage? >> $1. >> there you go. not too bad. coming up after the break, the easter bunny came earlier this year giving a boost to retailers in march. we preview same store sales as we break down key earnings from costco next. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes.
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we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business
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jp morgan goes on the defensive insisting the bank isn't too complicated. they call on him to retake the co job but analysts cast doubt on the come back. >> it's thanks to a turn around which was helped by exchange rates. earnings beat forecasts but revenue fell shy offest -- estimates. most came over the auto and arrow sectors.
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>> we advised our aluminum demand number for 2014 when we saw the actual numbers coming out we saw a demand growth for aluminum of 9% in the last year and we believe it's going to continue. we think the growth will be another 9.5%. that gives you an indication not only about the attractiveness of the end markets but how aluminum and other sets we are in are covering this. >> just want to bring you up to speed with what's been happening. according to reuters at least one person has been killed in a milan tribunal shooting. the alleged shooter is still at large according to the police and at least two people may have been wounded in that shooting according to police. >> all right.
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let's give you a run down of what to watch this trading day. weekly jobless claims are out at 8:30 a.m. eastern. claims rose while continuing claims may also rise adding to signs the labor market may be faltering. at 10:00 a.m. we get february wholesale trades we also get numbers today from consolation brands and ruby tuesday. >> costco reported march same store sales earlier today. they said shares fell 2% last month. citing one last sales day due to the timing of easter which negatively impacted sales by 1.5%. let's have a look at costco and germany. 0.6%. >> bed bath and beyond's fourth quarter profit fell 4% although same store sales rose 0.7%. they issued first quarter guidance slightly below estimates. they have been hurt by sales
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promotions and a shift by consumers to online competition. pier 1 imports fourth quarter profit fell 22% but the chain says it's swing products are generating a strong response and projects same store sales will rise about 4% this quarter. let's take a look at price action in those two stock. pier one up about 4.7%. bed bath and beyond down by around 1.6%. let's talk more about the retail mixed picture. what do you see. >> if you take out the gas year over year the comps were up 4% not only in the u.s. but internationally. costco has done an inredable job of driving traffic and of course it's the higher income consumer and guess what the big theme is retailers are forced to start paying their employees.
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costco always paid their employees. not a consequence that they have been one of the topper formers. >> you say it's time to play the calendar shift game. easter came early impacted costco. >> thank god for the easter bunny. he can be good or bad. for costco it was bad. easter shifted into march. so there was one less day for them. for the apparel guys and more gift giving guys it's a good thing for march so today we'll see for same store sales for l.b. and for a few other retailer ifs the easter bunny had an impact in march but then again extra pressure on april here. >> but costco is one of the big companies that benefits from lower oil prices. is that something one should keep in mine when investing in the stock? >> yeah retail in general benefits from lower oil prices but what costco does is they make their money on the fees you pay to go shop there because they offer you the best deal.
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they also sell gas and they sell it cheaper than the guy down the street. so whether gas prices are going up or down for costco the fact that they always offer it at a lower price. >> my mom will go the extra distance to fill up at a costco. >> makes you feel better. everybody likes to save money. >> and then you spend more essentially. >> then you can buy that extra pants or whatever it is. >> nice segway into lululemon. it's upgrading to $77 price target. 11% upside. you're saying some analysts are behind the curve. >> yes. it's up 70% in the last few months. if you're jumping on the band wagon today you're a little late here. this brings up expectations as analysts are jumping on the band wagon. however my favorite part of the
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story is the international part. if you think about the atsegment in the u.s. it's in the states. here it's squusjust starting. >> interesting you say that. they write that sentiment is clearly favoring these u.s. focused retailers that have minimal international exposure. >> yes. obviously a lot of analysts are looking at domestic only place because you don't have to deal with the chaos but i would argue that for now they have a small international exposure but long-term for some of these stocks the growth stories are about international. l.b. and victoria secret. >> i saw you at the show. >> yes. exactly. investigative reporting. all right. always a pleasure to have you on. thank you for talking retail with us. still to come on the show how can more women climb to the top of the corporate ladder and stay
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there? we'll speak exclusively to helena, the ceo of newton investment management about the changing world of womenomics. that's coming up after this break.
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welcome back. worried news out of milan and
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italy. people have been wounded at a shooting at a milan tribunal. they're reporting one person has died. the prosecutor says two people were killed and one was wounded in the shooting. the man was a defendant in a bankruptcy case according to the police. >> let's take a look at u.s. futures at this hour. pointing to a lower open choppy session yesterday as investors digest the lating fed meeting minutes which were broadly speaking dovish but a june rate hike could be still on the table. the dow down about 34 points in premarket trade. >> a look at european markets. we're higher around 0.4%. the ftse 100 up by 0.6%. dax higher by .25%. also car registrations very strong across europe. boosting the economic power of all women in society will help more females reach the board
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level in companies and stay there. that's the finding of a new report which looks at female economic power in 41 countries and it's impact on women's rise to the top. the study by bny melon finds the top countries are australia, norway, ten mark finland, ireland and the u.s. on the flip side india, the united arab emmirants are the worst. one of the key speakers at a conference this weekend is helena who joins us now. good morning to you. >> good morning, hi. >> how do we make sure that women stay on board seats and not leave right away. >> the key is and that's what the study reveals is making sure that all women in society are empowered. it's fascinating because there's
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real global analysis done in an academic way. it's not just hearsay or surveys. the biggest driver of sustained improvement in terms of progression of women was empowering all women. increasing the percentage of women in the labor force. quite different from saying you need interventions like legislation to get women in the board room. >> why are we not seeing more women advance to leadership ranks in the corporate world. >> it's frustrating for the financial services industry. fund management investment performance is gender blind. you need the greatest talent and it's a source of some frustration that we struggle to attract and retain women but women have been put off more by the financial crisis and the scandals that have occurred. the study also shows you need not just one little change. you can't intervene in one area and wave a magic wand. you have to work at every stage in society. you have to work on changing the
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ecosystem of companies so it's not trying to squeeze women through the narrow path that's existed for men but recognize that we think and behave differently. >> we talk about gender disparity and it's such an important challenge or issue to express. they're supposed to inspire women to join the tech industry but you still look at the numbers and there clearly needs to be more to be done. >> well we need to address not just one side of the equation. so it's great but you need to lean into a culture that enables you to thrive and that's what we have seen in the u.k. i set up the 30% club. there's one in the u.s. but it's much earlier day which is is the members are chairman or ceos of big companies and they're saying we recognize that the board rooms and management team and all levels of the company are better if we have diversity
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across different genders but other perspectives. it's not that we're pushing the agenda. we're just actually now having a receptive audience for people to say it's a better team if he we have a mixed team. >> do quotas work or is that an idea really. >> they only give the appearance of change. i don't believe at least a meaningful change and if we look at a country like norway then yes they have a lot of women in the board room but have struggled to get women to other levels of executive management. you have to address the issue at every stage. it's not about tokenism. it's making sure that women can stay there and make an impact when they get there. >> i'd love to get your thoughts on the market. central banks we inquirity flows right now. a fed rate hike is on the cards. how are you recommending investors to position themselves? >> you said there that central bankers are dictating the agenda and i think as long as -- it's quite dangerous at the moment. as long as investors believe
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that central bairngnkers are in charge and can manipulate things things are fine. we had several years of a bull market. we would rather look at specific companies and sectors. there are dangers out there. how are we going to get out of qe without really upsetting the whole dynamic on what happens next. there's a lot of structural issues in europe that have not yet been addressed. >> a pleasure to have you on. thank you for joining us. that's the ceo of newton investment management. >> the race is on for the white house in 2016 after two republican declaration in recent weeks. the countdown is under way for hillary clinton's expected announcement. we'll discuss after this short break. stick with us.
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it's 5:30 a.m. in new york. 10:30 here in london. you're watching worldwide exchange. >> these are your headlines from around the world. >> u.s. few turs pointing-- futures pointing lower as they look ahead to retail sales. >> they recover some of yesterday's sell off driven by a jump in supplies. this as iran's president talks tough on a final nuclear deal.
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>> jamie dimon goes on the defensive using the annual letter to shareholders to address issues whether the bank is too big and complex. >> meet the new boss same as the old boss. zynga founder is back. analysts say the move sends the wrong message. >> if you're just tuning in thank you for joining us on worldwide exchange. here's a look at u.s. futures. volatility may continue. premarket trade suggesting a lower open. fed meeting minutes indicating that a june rate hike may be in the cards so the question about whether a fed rate hike will come in the near term still something hanging over investors heads heads. here in europe we're broadly higher across the board. auto sales up 10.7% in the month
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of march for western europe. we didn't just see a pick up in germany but france as well. we're trading in pz tifositive territory. the ftse 100 with a gain of 48 points. we got the news of the mega merger in the oil and gas sector $70 billion deal but despite the move in shares gaining about 24% we still saw the ftse 100 trade lower or end lower in yesterday's trade. today we're seeing buying. let's show you what's happening in asia. the hang seng at a 7 year high closing up by 7.2%. it seems to be helping investors get bullish on the chinese trade. this is the index closing up by 707 points. not just hong kong. look at the nikkei 22.5.
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the index at a 15 year high. just below the 20,000 mark at 19,937. oil also a big story. >> let's have a look at oil prices. they're bouncing back after yesterday's which was the biggest in two months. brent crude gaining strength throughout the morning here in europe. wti at 51. the report scaring the market yesterday. it's the biggest build in 14 years. more cracks he emerge in a tentative nuclear deal between iran and the five major powers. the iranian president says teheran would only sign an accord if all sanctions imposed on the country were lifted on the same day. western governments have said the roll back would be done gradual gradually. >> as he ramps up the rhetoric over a final deal the white house is making it palatable to allies in the gulf nervous about
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tensions in the region. cnbc's hadley gamble reports. >> with just months to go before a final deal could be reached with teheran over the nuclear program u.s. officials plan to bolster offenses for sunni arab allies in the gulf including a possible nuclear commitment. >> they face a range of threats and has for a long time. >> the u.s. lead invasion of iraq in 2003 that perceived abandonment of the president and the pivot to asia and behind the scenes negotiations with regional rival iran left the kingdom feeling vulnerable and with the united states moving closer to a reproachment with iran a new generation of saudi leaders is taking charge. >> usually when you want to know bhast what's going on you call up washington. this is over. they're not going to go through washington to do what they have to do. >> saw day rabudi arabia looks to
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further it and beyond. they're making use of a weapons cache from american and british suppliers. those mean big business to some of america's top defense contractors. >> last year saudi arabia was the world's biggest buyer of high-tech weaponry. beating out india to become united states largest export market. >> and the kingdom isn't the only country stocking up. total sales of weapons to the gulf states are up 70% over the last five year with the u. s. accounting for nearly half of all armed sales to the region. >> saudi arabia has a strong conventional military capability. more and more capable and they're better able to absorb the advanced weapon riry they're buying. >> teheran's treasury crippled by years of heavy sanctions left the country's regular armed forces ill prepared to meet the challenge of a force in the latest high-tech military gear. that's good news for a white
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house clearly unwilling to let a regional rivalry derail a historic nuclear deal. >> speaking of the nuclear deal with iran we're just hearing from the irani supreme leader that says he never agrees or disagree with the nuclear deal. he said that on live tv. he also underlines the importance of the details and says world powers may want to restrict iran in the nuclear details. he also says a tentative iran nuclear deal with world powers is nonbinding. so let's bring you into this discussion. cautious comments coming from the supreme leader of iran. >> not unexpected. this is politicking at its best. he's keeping his options very broad and very open an there's a reason for that. that's something that the white house and john kerry would have expected to hear comments like this from him. it's not helpful when they're trying to sell something in washington to republican and democrats but you can't not expect -- there's a reason this man has remained in power as
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long as he has. he knows how to play this at home. >> do we think that the iranians are going to cave in and give in on the demands that sanctions need to be lifted immediately? because this is something that the u.s. won't be happy to do? >> exactly. basically both sides will maintain as much wiggle room without it being obvious they're doing so. that's just politicking but at the same point they'll get slammed at home. i'm sure this is a direct result of conservatives in teheran and basically the president is facing the same battle back in washington with republicans and many democrats as we know but the bigger question is the elephant in the room. the conversation that no one is having as of yet in washington and that is the fact that the white house is trying to make this deal palatable to its gulf arab allies and expediting weapons already in the pipeline. this is a country that has billions of dollars worth of u.s. and u.k. weapons systems they haven't been using and we're seeing them use them in yemen and the bigger question is
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given what we're seeing in yemen and there's two weeks of air strikes in that country with no discernible results, what that means for stability of the region going forward. >> thank you for that perspective. more comments are saying not reaching a deal is better than reaching a bad deal an iran has always said that. the race for the white house in 2016 is heating up with republican senator rand paul officially declaring his candidacy this week following in the footsteps of senator ted cruz. on the democratic side all eyes are on hillary clinton amid speculation she could announce any day now. joining us now is a republican strategist and cnbc contributor from strategy international. he was previously a communications ad with the mccain palin campaign. thank you for joining us bright and early. >> good morning. >> jeb bush probably would get around 13% in terms of the republican nominee field but some people have been saying that jeb bush is too much of a
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moderate. are the republicans, are they looking for a more conservative person? >> not necessarily. if you look back at the nominees the republicans have put forward since ronald reagan. ronald reagan was not by today's standard's a far right wing conservative. george h.w. bush george w. bush mccain and romney. we as a party are absolutely open to a moderate and that's what we needment we need somebody that appeals to the whole broad spectrum of republicans and beyond in order to be able to win the white house in 2016. >> wouldn't that be mr. walker? isn't he the person who can appeal to all wings of the republican party? >> scott walker is an interesting candidate. there are those that appeal mostly to the right wing of the republican party and would have trouble attracting voters from the independent or democrat parts of the american
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electorate. so you're waiting on walker and jeb bush obviously. so the real main leaders of the republican race are not in it yet. >> they're getting out there early. the question is do they have enough appeal to win. what are your thoughts there. >> in my opinion they do not. ted cruz appeals to a large but very defined part of the republican spectrum and he will have trouble getting beyond that and largely because of his performance in the u.s. senate he lead the shutdown that happened a couple of years ago. that does not play well with the general electorate but also won't work in the primary. rand paul stratis on the trend. >> some say he has an unusual
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mix of political views. doesn't that work against him when americans need a leader that knows exactly where he stands and what he stands for essentially. >> sometimes there's a positive to being able to appeal to voters that like conservatives and want to have small govern lt but you do need to appeal to a broad swath and he will not be able to do that because of his previous statements and previous actions in the u.s. senate. he has set himself up as a niche candidate and that's all he'll be able to achieve. you have to look at the other candidates like chris christie and jeb bush that can reach across the aisle.
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>> we also need to talk about hillary clinton. >> she was shown to be a bad national candidate. she lost to a complete unknown at the time. if i were a democrat vat gist i would want to have a real contestant primary because that vets the candidates and even though hilary has been out there for a long time but there's new ones. the e-mail thing has just come out and that is a real problem for her going forward. if i were a democrat or part of the democratic national committee i would want to have a real primary and look for someone like martin o'malley to test her on the national stage. >> thank you for your time this morning. coming up on the show jamie diamond has a message for jp morgan shareholders. the top u. s. bank isn't too big for its own good. we'll be back in 2.
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. welcome back. we've seen some were iscenes this morning. a man opened fire at the tribunal killing at least one person. that is according to police and a top court official. now the man that opened fire he was a defendant in a bankruptcy case according to police.
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a prosecutor says that two people were killed and one was wounded. so still some confusion over how many people were killed. >> moving on jamie diamond is defending jp morgan in a letter to shareholders as the bank continues to draw fire from analysts investors and regulators. let's get to landon that joins us with more on that story. >> that's right. he's firing back defending the size and business model of the u.s. bank that's called out for being too charge and complicated. in a letter included in the annual report he says our mix of businesses works for our clients and shareholders. large does not necessarily mean complex. he stepped up his statement since december when the fed unveiled new requirements that they hold more capital to protect against losses and in january goldman sachs said the bank might be worth more broken
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up. it has the same three as banks. it allows it to serve big u.s. companies doing business overseas. dimon acknowledges the stock price hasn't performed as well as i should. the company has hired about 8,000 people to improve legal compliance. it's inevitable another crisis will hit the financial markets and he cites several possible factors such as geo political issue and rapid rate hikes by the fed. he warns the ability to act as shock absorbers is headered by new capital and liquidity roles. he says jp morgan would weather far better than the fed thinks. being more aggressive in cutting expenses and reducing trading risk. it totalled $20 million. the bank says it's compensation
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committee felt the pay was deserved as market share and the company met or exceeded it's targets. seema back to you. >> landon thank you so much. >> before we go to break, these are the headlines. the iran president says a final nuclear deal will only be signed if sanctions are lifted immediately. jp morgan's ceo goes on the defensive insisting the bank is not too complicated and zynga calls up their founder to retake the ceo job but analysts cast doubt on a come back.
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with. what's old is new again. the zynga founder mark pincus is returning and taking the reigns back from don that re-signed on wednesday. he's the former head of the xbox division and took over for him two years ago.
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analysts say it sends the wrong message as he was starting to move in the right direction under matric. shares did fall by 10% after this news hit the take. we're looking at shares at $2.61. it's been a challenging time over the past couple of years. shares down about 30% over the past 12 months a lot of that has to do with the competitive landscape. candy crush among other companies are obviously making this a much more competitive environment for gaming companies. >> it's not just a one trick pony and it can live off of other games as well. >> more than farmville. >> but it is very noble and you pointed that out in your introduction there, that the share has risen to 60% from previously 26%. that's a very good sign and that's why analysts are so confused why we're seeing this
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sudden switch why change if you're in the middle of the turnaround that investors are looking for. they want to regain investor's confidence they need to show that they can implemented and execute throughout the leadership change. that could be difficult. >> a hot of pressure now to really deliver. we should point out this isn't the first time we have seen high executives leave and come back. steve jobs at apple left and came back and even jack dorsey came back to twitter to get involved with product development. something that we'll continue to watch. >> let's have a look at european markets. we're higher across the board today. also helped by the fact that car registrations in the month of march were strong up by around 10%. the dax higher by 0.4%. the ftse 100 up by 0.7%. we're not expecting a move here. it's higher by two third of 1%. >> let's get a check after the
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mega merger $70 billion deal is announced yesterday. they upgraded this morning to hold from sell on the back of that deal. interestingly enough after that mega run that he we saw in british gas shares yesterday we're slightly lower today down about a third of a percent. royal dutch sell up by around the same amount. >> interesting price action in oil in yesterday's trading session. big job to the down side and we're seeing some of these losses being recooped in this morning's trading session. brent crude is higher. that job yesterday obviously came on the back of the eia data which showed that we saw the biggest growth in stock piles in about 14 years an that was the biggest drop in about two months in yesterday's trading session in term of the price of oil. we're having some comments from the supreme leader of iran this morning. he says iran's talks with major powers are only about the nuclear issue.
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he calls for restraint among iranians on announcing victory or failure on nuclear talks. very tough line he's taking this morning. not reaching a deal is better than reaching a bad deal and what the iranians want and this was made very clear, they want all sanctions to be lifted once the nuclear deal is struck and that's something that the u. s. isn't willing to give in on. >> a mixed message coming from the white house and iranian lieders and seems like the frame work has been established in reference to this deal but details still need to be worked out especially when it comes to sanctions. got to show you the trading action in asia because we're seeing mega moves. the hang seng at a 7 year high closing at 2.7%. japanese index also trading higher. closing up by around 147 points just below the 20,000 mark but a 15 year high for japanese stock. >> you know what's really striking about the hang seng moves? now there is a state run china
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security's journal and it had a headline. it said go buy hong kong stocks. can you imagine a state run newspaper would do that? >> is that journalism? i'm not sure. what does this penne for wall street? a choppy session yesterday. a lot of that having to do with the fed meeting minutes. dow indicating a lower open by 26 points. nasdaq down about 5 points. weekly jobless claims are out at 8:30 a.m. eastern. claims rose last week while continuing claims may rise adding to signs that the labor market may be faltering. stay tuned to cnbc. our u.s. colleagues will be speaking to christine lagarde. the interview coming up at 11:30 eastern time. >> that's it for today's show. >> thank you for joining us here on worldwide exchange. i'm seema mody. we'll see you tomorrow. next up is squawk box. have a great day.
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good morning. breaking news out of europe. athens reportedly making a nearly $500 million debt repayment to the imf today meeting a key deadline but the trouble is far from over for the financially plagued country. in a warning from jamie dimon he fears there will be another crisis and this one could mean even more volatile markets. that's hard to even imagine versus the last one. anyway, the reason he is pointing to regulation. and it's spring so the birds are flying back north. there's only one problem though. ducks are believed to be spreading bird flu in the u.s. putting the nation's turkey
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supply in jeopardy. it's thursday april 9th 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> welcome back. we'll tell you what's going on. the central part of the country is bracing for dangerous storms today. this could be the most severe outbreak this season and 30 million people are in the path. reports of tornadoes in kansas last night and dark clouds dropped baseball sized hail over parts of missouri. people on the ground said the thunderstorms looked more like a mini meteor shower. if you're waking up this morning take a look at what's going on in the markets. you can see what's going on as we put that board

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