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tv   Worldwide Exchange  CNBC  April 10, 2015 4:00am-6:01am EDT

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welcome to worldwide exchange. >> good morning, everybody. here are your headlines brought to you from around the world. >> asia markets close out the week on a high at levels not seen since 2008 and the nikkei topping 20,000 for the first time in 15 years. >> it's time for the apple watch. customers around the world, they begin to get their first glimpse of the device as the tech giant aims to take a bite out of the luxury watch market. >> don't forget about samsung. it releases it's curved screen
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galaxy s6 but may not be able to keep up with demand. >> first quarter sales beat expectations driven by growth in latin america and it's home markets. nsh nsh. >> hello it's friday. lots to talk about today. >> good morning. how are you? >> fantastic. always good on a friday. >> i know. i know the feeling. >> been a good week. >> been a fantastic week for asian markets. >> i know. i can't believe all the new highs we're hitting and whether or not it's going to continue and our colleagues on squawk were talking about whether there was a bubble going on lead by some of the comments out of asia and the finance minister talking about that and whether you can contain a bubble in general. >> he said we welcome a small bubble. have you ever heard an economy minister say that? i don't think that would happen
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here in europe. >> no but then you get into the definitions of what is a bubble right? and weren't you mean an actual bubble or whether or not you mean that things are growing. we're looking at a market environment where we've had gains for the last months. is that a bubble or recovery. >> speaking of markets, let's look at the asian markets. the shanghai composite high by shyer than 2% but we had a real run heading into the year. so it closed above 4,000. a high that was last seen back in 2008. the nikkei meanwhile, breaking through the 20,000 level for the first time in 15 years and there's hopes that larger shareholder payouts could be seen in consumer demand. the economy minister said that he's not worried calling the
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small stock market bubble manageable. >> the hang seng continued it's week long rally though. gains moderated from yesterday. chinese investors have been piling in as the shanghai hong kong stock opens up market access. brokerage companies are leading the way with securities shooting up 40% in it's trading debut today. let's talk more about chinese equities and if they have further to run. charlie audrey is the fund manager at henderson global investors. we've seen all the mainline investors piling into hong kong shares. can that continue? if we see more of them piling in valuations are going high too. >> good morning. thank you for having me on. yeah i think it can continue because they have quota to use and it's only this week that those southbound investors started to use their daily limit of what they can buy. i think longer term it makes the
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hong kong market more volatile which is probably going to mean i get less sleep but more and more investors into that market for sure. >> yesterday we were talking to steven roach and he observed that taxi drivers are buying stocks in hong kong and china. what is the competition of those buying both chinese mainland shares? is it the mom and pop investors or retail investors or smart money, institutional investor. >> if you look at the volumes being traded what you can clearly see is there's more participation not just from the mainland ib vesnvestors but everyone else. those are foreign institutional investors ourselves. they've been closing in underweight positions and hedge funds covering shorts and getting long and hong kong retail investors.
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your point about securities being up so much on day one, that illustrates to you that retail investors are back in the hong kong market for sure but quantifying that is quite difficult. >> charlie, hi, there are a lot of people speculating about the connection between being a broader part of the msci index versus not. how much further investing do you think we'll see if the links with the msci index, if that's increased. >> good morning, hi, yeah. that's a good question. there's really important practical issues around that. i'm not sure how all the passive markets will be able to access this and whether that could be a hindrance to them being included in the index. that's something for them to think about but longer term if you take a five year view there's a very real chance that shanghai shares will be in the emerging market index and
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there's examples of this happening in the past for example like taiwan many years ago. >> and charlie, just to carry on with the discussion you were talking about the difference between institutional investors and the mom and pop investor the flows, we're following closely the flows of money from the u.s. are you seeing these levels being hit now? is it because we're recovering from such a low base rate or are you actually seeing real new money flows entering into the market. >> it's an interesting question because if you look at some of the day athe on specific fund flows into china funds you actually see through the tail end of last year and this year net redemptions which seem to be to do with massive funds invested in the asian market but if you look at volume in hong kong they're at record levels
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this year. that shows more participation across the board. that's showing increased participation from i think, all types of investor. >> charlie, good to see you. thank you for being with us. charlie audrey chinese equity fund managers at henderson global investors. >> and a steady reading for chinese inflation this morning but analysts are concerned prices should be set to fall. should we be waiting for more stimulus. that cpi rate was flat on the day and that tells you they have plenty of room to move. >> now in celebration of this weekend we're asking viewers if global markets were a horse race where would you be putting your money? if you want to join the conversation on worldwide exchange feel free to get in touch. find us on e-mail at worldwide at cnbc.com or find us on twitter as well at cnbcwx. our personal handles also appear
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appearing on screen. we're both on twitter as well. >> let's have a look at narcotics. it's friday and we're seeing a valley. the stocks europe 600 up higher than 1%. the dax hit a record high half an hour ago. the ftse not too far away from its record high. sentiment has gotten a boost, in part, because of better data out of germany and the smaller than expected rise in jobless claims. the dax another record high higher by 0.6%. the ftse by third of 1% and we're seeing broad based ones as well. we also got production data this morning and that's better than expected in france and spain. looking at the bond market very interesting action in the u.s. yesterday we saw yields going higher quite a bit. currently just below the 2% handle at 1.95%.
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it was because of the better number in term of the jobless clal claims but the ten year german yield record low 0.153% and the 10 year italian at 1.243%. thank you qe. let's have a look at the currency markets. another fresh three week high for the u.s. dollar and the euro is down against the u.s. dollar. we're off by a third of 1%. this year the euro-dollar pair has fallen by 2.5%. at the start of the week we did see trading so that has played a major part here. in terms of cable, pound against the u.s. dollar down by 0.2% but what we did see yesterday was the spike in volatility and that has got to do with the he election in about 27 days. dollar-yen lower by 0.2%.
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oil prices once again under pressure. wti by 1.2%. brent crude off by .3%. brent and wti are on track for a 3% rise. it's hard to believe given every day we seem to be he seeing those declines and let's talk a little bit more about am. >> indeed. it's a big day. the apple watch is finally here. customers have been lining up to get a first glimpse of the new product. it's available to preorder today and potential customers can tryon the device at selected apple stores and some high end department shops around the world. the smart watch will only be available for actual purchase on the 24th of april. seema is in london. seema, i mean it's exciting. >> hello. >> what are people saying because the reviews are slightly mixed, no? >> reviews have been mixed. so far we have been speaking to a couple of customers that have been waiting outside to get in.
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doors just open at 9:00 a.m. to enter the high end department where apple is show casing it's apple watch. there's three different collections. it starts at $349 one. i had an opportunity to wear the $549 apple watch. it's trying to be high fashion. the queen is can it penetrate this highly competitive market? just steps away is rolex, cartier. all the brands you're familiar with. this is apple's attempt to establish a footprint into this market. can they really do so? customers are excited. they want access to the apple watch. they want to be able to wear it and see how it looks on their wrist. that's the big question and what they're trying to achieve here but what is interesting from the customers we have spoken to so far those that are here are saying we're going to walk away today with an apple watch. you can preorder the apple watch. it will then be delivered by april 24th. a lot of excitement but this is
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a crowded market. a lot of the high end players as well as tech peers also in this space. so it will be interesting to see if am can clear it's path way and hold on to this market. it can be a big opportunity for the company. expecting $4.4 billion in sales in 2015. expected to be billion in 2016. >> we haven't seen anything like this since the ipad launch. >> first new product category in five years. >> exactly. we'll be checking with you throughout the morning and the day. much more to come from seema. coming up here on the show -- we have a new name for the show. do you know that? >> what is it? >> slime slug slosh.
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they were suggesting that we call the show that. >> i can't say it. >> so here on slime slug slug slosh we'll be getting into the swing of things as the master tees off in augusta with rory mcllroy and the hunt for a career grand slam. >> could sunday be the day? hillary clinton could throw her hat in the race this weekend. >> and christine lagarde telling policy makers to shape up. we'll bring you that also after the break. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others.
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>> let's take a look at the stocks on the move today. first quarter sales beat expectations. this thanks to strength in it's french markets and latin america. meanwhile the brazilian tycoon is planning to raise his stake and could take a seat on the board. now they're higher by.1% despite reports that they could pay
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record $1.5 million to authorities. it's one of the banks that hasn't settled yesterday. originally in the new york times the jered ran bank may face the penalty this month and might accept a criminal guilty employee. this is in an investigation into labor malpractices and the u.k. group jumping after they created priority review for its eye disease drug. it cuts the process from 8 months to the standard trail. this is shares higher by 4.6%. shares are high by 1% and the board of that firm has given the green light according to the ceo. let's get more detail on that story with claudia from milan. this has been talked about for a long time. no surprise is it.
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>> no but it's good news because it obviously is helping them move in the right direction. they'll pull together with the private equity firm expected to begin in weeks time. they'll put together 2 billion euros worth of funds. the hope is by combining the problem they'll be able to either benefit from outside expertise either in selling these debts or recovering the debt. so this is let's say a pulling together of the stronger bad debt of the sour debts but to note in italy this is a problem for all baiks. regardless of this moving forward they grew innks. regardless of this moving forward they grew in january. so this continues to be an issue as they struggle to grow.
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impaired loans are worth 10% of italian gdp. it's hard to recover the bad debt. one of the topics on the agenda is the idea of a bad bank from the government so not moving forward on that so far but that certainly is something that banks are looking for in order to try to get rid of this very very huge problem that impairs lending but for today it's good news as this much talked about deal moves forward for the two biggest banks in italy and we're seeing them trading up on the heels of that higher by 1% point. >> meantime i want to bring you up to speed with some of the yield levels here in europe. let's have a look at the five year in france. it has now turned negative for the first time ever. if we take a look at the ten year french yield that's still at 0.446% so you're getting a yield on that. keep in mind that we're seeing
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maturities of up to 7 or 8 years in germany trading in negative territory. meantime the u.s. treasury is warning europe against relying too much on exports for growth. treasury urging officials to make more use of physical policy saying stronger demand is essential and calls china's currency undervalued but says they're less heavy handed in the market inventions. >> speaking of the imf, the global economy risks falling into a long period of low growth if policy makers don't take action. that's the message from the imf's managing director. she sat down with christie lagarde and asks her where she thinks the global economy stands 6.5 years after the beginning of the financial crisis. >> there is recovery but moderate and even and it has shifted a little bit.
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advanced economy is doing better. particularly emerging market economies doing not as well and being much more all over the place. india, bright spot. china moderating but in a sustainable fashion. on the other hand russia not in good position. brazil completely flat and middle eastern countries in a difficult position. the scars of the financial crisis left a big mark and if you add to that the aging populations in advanced economies and markets and the lack of productive that's a toxic one and we need to encourage them to make the right decision because we can get out of that risk. it doesn't have to become the new reality. >> so are you saying the phrase
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is secular stagnation. >> i think that implies that you can't do anything about it. you're stuck. >> so larry sommers was wrong. >> i'm not saying he is wrong because he is very often right but what i prefer to use is this new mediocre risk because i believe that if the right measures are taken, if the new lateralism is embraced we can get out of it. we can have better growth and include more women in the economy. we can stabilize the financial system and make it stronger. >> i know you're calling for action. just on the u.s. for a moment i know that you described the developed world as a bright spot. the improvement in the jobs market backed off a bit. is it all because of the weather? do you agree with that assess
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assessment? >> just as a swallow does not make spring i don't think that one lower number should grey the whole picture which is otherwise quite rosy for the u.s. economy. if you combine the bad weather and the strike in the harbors on the west coast, you have a few ingredients to have lower growth in the first quarter. we had that last year. >> it's true. we talked about it. >> is it rosy enough that we're ready for an interest rate increase? >> whenever it happens i certainly hope that -- and i'm sure that the phasing communication, the analysis will be at the top. >> you warned of a bumpy ride for markets when lift off does happen? what is your biggest concern? is it the impact internationally? >> i think i'm concerned about two critical issues. one is very low if not negative interest rates for a longer period of time than we think is necessary to kick start growth because that could really create
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the compost for some potential overvaluations risks and the second one is the situation of particularly the corporate and he emerging market economies that have significantly borrowed in dollar denominated loans and could find themselves in a tough spot if the dollar continues to be high the interests become -- begin to rise and if they are trapped by low commodity prices and have not hedged. >> dollar getting too strong for comfort. >> i wouldn't say too strong because it's something that is going to adjust depending on the strength of the economy and what it tells us at the moment. the u.s. economy is doing extremely well. >> let's change track. supreme leader demanded all sanctions to be lifted when a final agreement is struck on curving iran's nuclear program.
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france hit back at the comments saying it showed there was a lot more work to be done before any deal could be concluded. in his first speech he neither supported or opposed the deal adding no agreement was better than a bad deal. >> maybe an agreement is better than no deal. he didn't say that. >> yeah. >> anyway moving on the un chief has called on the international community to use political negotiations to bring an end to violence. he warned it could turn into a full blown sectarian curve. the u.s. security council is planning to vote on a resolution to blacklist the son of the former president as well as impose an arms embargo on rebels in the country. >> a defendant in a bankruptcy trial fired 12 shots inside
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before fleeing. he was later arrested. the attacker may have carried false identification and used a side entrance reserved for staff where there is no metal detector. a fourth person was also wounded in the attack. get your e-mails, keep them coming. we've also had some correspondence on twitter. we talked about some of the multiyear highs on equity markets. 8 year highs for european markets and seven year highs for asian markets. the japanese economy minister saying he would welcome a little bit of a bubble. always appreciate your correspondence. some of the gains you see on world stock markets when you convert it into dollar they become nothing. it's just the currency effect and that's a good point because of the strength of the dollar. >> 10% against the green back. >> you need to be hedged in these markets. >> you do. have to say i've been surprised by how many people have been saying in the show they have been closing up their longs in
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the u.s. instead of saying the u.s. has gone far enough for now. everyone is writing in saying good morning. it is nice it's friday. hope you have something nice planned for the weekend. >> it's supposed to be nice out. >> for once. bubbles are french. are you seeing any french markets? it's been soft hasn't it? anthony says went to the masters yesterday. with a cross section of oil, gas and mining. and we have jared writes in and says he's not buying a new apple watch but he is waiting for a reconditioned model and he says it's difficult to scratch a sapphire display so a little patience will give a clearer picture of what they're worth. >> i have to be wondering if people are snapping them up and trying to share them at a much larger premium. >> they're pretty expensive to
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begin with. >> i know. >> who is stealing whose thunder as apple and samsung go ahead with major product launches. we find out where you're putting your money. >> i'm going there right now. >> i think apple products are better than samsung because they're sexier. >> i personally won't buy any of them because as i say, i like you know i like my analog device. >> probably the apple watch. just because of the brand. people seem to love the brand of am. it's reliable. it's becoming a staple in society so i think the apple watch will be more successful. >> i have iphone so i don't need a phone. i have a watch so i don't need a watch.
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asian markets at a high as the nikkei topping 20,000 for the first time in 15 years. >> it's time for the apple watch. consumers around the world start to get their first glimpse of the device as the tech giant aims to take a bite out of the luxury watch markets. >> don't forget about samsung. the south korean smartphone maker releases it's galaxy s6 but may not be able to keep up with demand. >> christine hagrade saying a
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greek exit from the euro zone would be bad for citizens as they made a repayment. >> it would be a terrible situation for the greek people. >> there's no stopping the stoxx 600. dax hitting a new record high this morning. higher by 0.6% and the cac 40 also up by 0.2%. 8 year highs for european markets in yesterday's raiding session and building on to that. asian markets are looking similarly bullish. the shanghai up another 2%. cpi numbers 1.4%. that was flat but the hang seng is the big story this week. higher by 7% on the week. today up another 1.2% as investors are making use of the
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s stocks connect between sang high and hong kong. they think the shanghai shares have gotten too expensive. >> so yesterday we had this massive rally we saw on the dollar. big rally state side and a bit of selling out of the russell 2,000. the euro sinking in yesterday's raid. 10637. that was the low hit yesterday and we're currently at 10623. so we continued lower in euro dollar trade. last week if my memory serves me correctly we hit a level of 104 and something something. so we're still a ways off from the 104 level and we're seeing fluctuates fluctuates. that could be interesting heading into the weekend. oil markets, we've seen some stabilization in oil. brent in the region of $56 barrel. wti at $50 barrel.
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uncertainly surrounding this iranian nuclear program. more fed speak later today among others. jeffrey lacquer at 8:45 a.m. u.s. time. that will be something to watch out for as well. >> yeah. let's turn our attention to the big story today. the apple watch is finally here. preorders are being taken today at select apple stores and high end department shops around the world and our very own seema mody is among the crowds getting a firsthand look at the device. >> apple making its push into the luxury market unveiling it's apple watch at a high end department store here in the heart of london. we're at the place where you can tryon the apple watch. there's three different collections. it starts at $349. next one is $549. that's the one i'm wearing right here and then there's an ultrahigh end edition which starts at $10,000 and goes to $17,000. now here at the apple kiosk this
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is steps away from rolex and other high end watch players. can they establish a footprint in this market? and also dealing with competition from google samsung, lg as well as pebble. now in terms of what wall street is expecting, expecting to see preorders of 300,000 apple watches just over this weekend. expects $4.4 billion in revenue from the apple watch in 2015. that number expected to increase to about $8 billion in 2016. >> did you see he that man dropping the watch in the background. >> i hope it wasn't the 17,000 pound one. >> i hope not. >> the golden sapphires. but it's not all about apple today because samsung's latest smartphone offerings, the s6 goes on sale. company is expected record shipments for the devices. the tech giant could struggle to meet demand due to constraints
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in the phone's production. could it help the south korean firm beat it's silicon valley rival? we spoke to rory o'neill about the intense competition in the sector. >> what we spend our time doing is looking at the consumer patterns in all of the markets and making sure we have smartphones across all of the segments. sat sung samsung has a large array of smartphones. we believe in producing innovation for all. >> now he he is the executive director at strategist analytics to talk more about this. good morning. >> good morning. >> how excited are you today? >> i'm always excited about new product launches so looking very forward to this one. >> what do you think is going to happen? how much of a difference is it going to make or are the devices in general going to make to samsung and to apple? >> the erms ofy are flag ship products
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for both companies. samsung's new phone is hoping to reverse it's fortunes and apple is looking to revolution niez the smart watch industry. >> is it a game changer for apple? it's the first product launch in four to five years but many people were optimistic about the wearables markets two or three years ago and some of these expectations inevitably they had to come down. isn't that game changer that the company that is hoping for? >> good question. i think what might happen is that it's only going to move the revenue needle a little bit in the first iteration so we're around $5 billion of revenue for the apple watch globally this year. for apple that's maybe only a few percent of its total pie but for the whole industry in total that's a big chunk of money. so relatively small amount for
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apple but if you take a longer five or ten year time frame wearables are the future and apple has good prospects for this. >> what difference does it make that the apple watch you can only order online yet you can make some preorders in the store but basically you're going to the store to try out the apple watch and that's why we haven't seen the same amount of lines that you would usually see for other product launches. does that make a difference? even if it's just an emotional difference really? >> another good question. that's a key challenge for apple. their distribution strategy for the watch is slightly different to how it's been for the iphone and ipad in the past. you're going to ceeloer sales and smaller lines outside of the store as a result. that's one area that am has to improve on is the distribution in the retail space for the watch. >> i'm interested in customizations because a lot of
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people are saying that might be where the product has its edge. that it's so individualized. can it become too individualized? as i understand it you can go in and book an appointment, doesn't stuff like that get awfully hard to manage? >> one of the benefits. >> this is carolyn, i'm louisa. >> i think in terms of usability and customizations for watches and wearables that's the key differ she differciator for these products. i'm more likely to be loyal to that product and hah has to be good for apple and selling products. >> do you realize what is happening here? we're talking about apple and not samsung and you're booked to talk about both. is this a reflection of how people care of what consumers
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think about apple versus samsung? it's hard for samsung to get back to its former glory, isn't it? >> yes, apple does have very high brand awareness. they dominate a lot of the headlines in the industry and their customers are very loyal as well but samsung i think plays nor priced than apple. apple only plays in the high end and samsung is high mid, and low tiers. they play among more areas. samsung is as big as am. >> although the pricing on the apple watch is $350 for the sports model and 17,000 for the gold watch as well. i mean are people -- the middle market, are we going to see the middle market run away with the majority of these watches? >> there's an element that apple is trying to skim pricing with the very first iteration of the watch. so they're looking for the big fans that want to buy the watch
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straight away and will pay any price for that device. what we'll see in our view in the next few months is price cuts on some of these devices. wouldn't be a surprise to see it come down. >> what's the impact going to be on apple as a company? financial impact. how much of a feed through are we going to see and it translates into share price gains or more cash flow for the company. not that they need anymore. they have so much already. >> my sense is that in terms of moving the revenue needle and profit needle for apple it's a single digit percent of total type things. it's small. taking the 2, 3, 5 year time frame where we could be seeing hundreds of millions of these devices being sold things start to look bigger then. from a financial perspective i would say i think the gold watch is probably the main one to look at from a financial angle. if apple can sell thousands of those 10,000 plus dollar watches in the future that's a huge
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potential revenue pie they could be looking at. >> would you buy a watch? >> i would consider buying the apple watch in the middle range. the sport is too focused and the gold one, my salary doesn't quite stretch to that yet but i would consider buying one, yeah. >> neil thank you for being with us. >> executive director at strategy analytics. >> thank you. >> while many of us may be happy to own a smart watch how would you like it if your boss asked you to to wear one at work. never thought about that idea. seema is investigating how businesses are tapping into that technology. >> wearable devices are becoming popular and entering the workspace. some corporations say these devices are the recipe to success. >> like anything that needs to be tested beforehand. so the best way to do that is for us as a business to start embracing that technology. can we put our information
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successfully on this device and number two can our staff navigate and move around the device. >> blueberry home solutions plans to roll out it's wearable app to consumers in the near future will which will allow people to track and monitor their consumption where ever they are. >> this is the top of information that homes are going to be wanting to know and this is the type of information that will be reported on a wearable such as a watch. >> from the industrial space to the fast paced world of technology, cloud services firm is also finding use in wearables in boosting employee moral and productive. >> being a fast growing company one of the down sides is the cost of health insurance. so as we went out to look at various providers what we discovered was some of the more innovative one wanted us to put our money with our mouth was and say what can you do to make a difference. so a pioneering company came one the idea of giving us money to insent our people to be fit and
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healthy. >> question is are employees comfortable in sharing personal information with their managers? data from pwc shows 62% of working adults are most likely to share their marital status but that number declines to 36% when it comes to what website they're surfing. younger age groups are much more willing to use a wearable at work. creating a big opportunity for players in the smart watch space. companies will have to decide which wearable to pick. >> we're going to look at it and see how our system works a bit. >> have you been happy with the samsung gear so far? >> yes we have. it's a great looking watch and great ecosystem. we've had no problems with it. >> if you're confused about why apple's new device is not called the iwatch head on to our website for the explanation. that is a bit confusing, isn't it? >> it would be obvious to call it the iwatch.
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>> no. >> but it's not. >> no. >> still to come on the show we're jumping through the horse racing business as ap mccoy is set for the latest grant national. >> and in honor we're asking viewers if global markets were a horse race where would you be putting your money. >> i was looking at the poor guy that fell off right? join the conversation here on worldwide exchange. you can get in touch with us on twitter at cnbcwx. >> or carolyncnbc. >> we'll seal you in a second.
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welcome back everybody. there's some relief over concerns after greece made a debt repayment to the imf yesterday. greece's next big deadline is a 1.4 billion euro redemption in april. she sat down with christine lagradlagr lagarde and asked if they were committed to staying in the euro zone. >> what matters is for the greek authorities and imf and european commission to get on with the work and really see how we can, together, identify the measures
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that will take greece out of the very bad economic situation. it could be in if the measures are not taken. it's a matter of restoring the economic recovery. restoring financial staktbility and independence. >> they have reforms in order to get another bailout. you recently had a meeting in d.c. with the finance minister. is there anything you can tell us about that? >> it was a good productive meeting on easter sunday which only goes how dedicated and determined we are to helping greece mt. process but we talked about how we could improve that process. it's been difficult on almost a daily basis. how to sit down compare numbers and look at measurements of the
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proposed reforms and how it contributes to the physical position of the country. how we aim at reducing the debt going forward and what will unclog the economy. >> do you think the new government is committed to staying in. >> they were elected on a particular political platform which has to be respected but the objectives that were put together and agreed by the krub together with the european partners have to be pursued. economic stability, financial stability, independence of the economy and membership within the european union and euro zone. >> so much has changed since last time we spoke about this and in the last few years you don't see he contagion anymore or a big problem with greece. do you think europe would be okay? would it be able to handle if greece does default on its payment and have to leave?
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>> it would be a terrible situation for the greek people. equality i think that the firewalls, the banking union, the strength and physical union have put the euro zone in a much stronger and better position than four years ago. >> now they warn it may downgrade brazil's credit rating revising it's bbb outlook from a negative to a stable. despite the reform efforts risks remain to implementation. the move follows a similar step by moody's. closing higher against the dollar. >> meanwhile shares in brazil's scandal hit the petrobras rally yesterday from the highest close since january held by a rebound in oil. prices and positive comments by the president. he said petrobras made the changes to move on from its multibillion dollar corruption
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probe. she previously served as the chairwoman and has taken a hit to her popularity though she has not been impeached. brazil isn't a place inves tors want to go into now. that's the worst performing emerging market this year. it has a twin deficit. i don't see why any investor would go into brazil unless you're bottom fishing. >> they are putting things in plan to turn things around. reform packages and economic change and things like that. when it comes to the possible downgrade a number of people making the point that they haven't done anything apart from positioning themselves in line with what the other rating agencies have done and you see
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the rauting the rating agencies behind the curve. but you're right. if you have ice in your stomach and you think long-term strategy. >> you make a good point about fitch though because currency didn't move on the news at all. it was actually higher. >> yeah. moving on let's talk about sports. jordan spieth is the first round leader at the masters. the 21-year-old that was the runner up to bubba watson shot an 8 under par on thursday. he had nine birdies in his round. he's three shots a head. the world's number one golfer rory mcllroy shot a one under par while tiger woods is one over. >> now it is a big sporting weekend because one of the most famous horse races in the world sets off as well. the grand national gets underway tomorrow. it sees the legendary jockeya.p. mccoy riding. prize money is 1 million pounds.
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it's expected to have a television audience of 600 million people. hi no idea that many people would tune in but that is the case. welcome adrian. what do you do? >> it's a family firm that's been trading for 245 years and we're in our 7th sengeneration at the helm. we provide services to those engaged in horse racing in great britain. >> how does that differ from a normal bank? what type of services are needed. >> we are a normal bank in many ways. we have a banking license and trade. >> i guess i mean to be specialized in that. >> we grew out of the fact that we distribute the prize money for the races that take place in great britain. there's about 10,000 races in britain and the grand national someone of them.
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and the prize money all added up together for all the races is 130 million pounds this year. and that comes in to us from the race courses and then once the races are run we distribute it to the lucky par gattis panlts that won. for 200 years that's what we did. we took the reseat of the prize money and paid it out. in 1994 we decided why don't we run our own bank? and we formed it in 1994 and have been trading with that ever since. >> your client base is made up of people interested in horse race. or do you have clients apart from that who have nothing to do with it? still they have to be pretty rich tonight they? >> for the first decade or more of trading our clients were really exclusively horse racing
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owners trainers jockeys but it would be a strange impetment to growth if we said you have to have an affinity with racehorses in order to bank with us. we have entry criteria which is not based on love of horses but wealth. we're a small and high end private bank. >> you could argue maybe you're ahead of the trend because we have seen the closures of bank branches and you have two or three branches. >> we don't have a branch network at all. we were there with telephone banking and internet banking and we have a headquaters in in london but we don't see our clients coming to our branches. we go to them. >> 71% of british adults will be placing a bet on the grand national. >> 71%. >> that's a high number. >> it's a high number and how
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much will be gambled on the national tomorrow definitely 100 million pounds. could be 150 million pounds so it's well over a pound in living human. >> who should i bet on. >> now you want investment strategy. you talked about ap mccoy. he's been the champion jock i can for 20 years. he's retiring. he's on the favorite. i think he is creating a market here. i think he is creating a bit of a market and we're going to go for the second favorite rocky creek. >> thank you very much for the tips. adrian mclin. we'll be back just after the break. ♪ 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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welcome back. >> these are your headlines from around the world. >> well the green back is on a tear yet again with the u.s. dollar index climbing to a fresh three week high amid bets that the summer rate hike is still on the cards. >> it's time for the apple watch. customers begin to get the first glimpse of the device as the tech giant aims to take a bite out of the luxury watch market. >> don't forget about samsung though. the south korean smartphone maker releases it's curve screen. the galaxy s6. it may not be able to give up
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with demand. >> will she or won't she. those questions may stop as reports say hillary clinton could announce her plans to run for the white house as soon as this weekend. >> good morning. it is 10:00 a.m. here in london. 5:00 a.m. on the east coast and interesting session yesterday we saw the dollar higher and usually you see the s&p 500 down but they were up yesterday and we saw that ten point rally in the final hour of the trading question and interestingly enough we saw small caps down so that is an unusual pattern for when the dollar is up but that said volumes were pretty low so that tells you there isn't a lot of conviction behind these moves either. >> no and also in terms of the fed minutes. some were saying it's down to the fed minutes and others were saying it hasn't changed a lot. some people still anticipating
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the hike later on this year and pricing that in but when you look at what the yield curve is telling or not telling you but with the low or negative rates we're in an environment where rates will be heading higher. we're looking at completely opposite signals that we're getting getting. >> the 10 year treasury yield is not with the growth we're expecting this year. meantime let's look at u.s. futures and see how they're shaping up in today's trading session. we're expecting a slightly softer start to the session. s&p 500 is off by less than one point. dow jones is off by 10 points and nasdaq could fall by 2.6 points after a second day of gains in yesterday's trading session session. a mixed reception to earnings
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report. pier one higher on the back of earnings. let's show you what european markets are doing this morning. dax hitting a high this morning. we had industrial production data out this morning. it was better for france and spain. ftse 100 higher by a third of 1%. overall european markets close to 8 year highs on the back of qe buying. yes that continues well into the second quarter. it's been a story this week. the highest level of seven years because mainland investors think that chinese shareings have gotten into expensive. cpi data 1.4% in line with expectations. the nikkei 225 earlier today.
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breaking through that 20,000 level for the first time in 50 years but we're now off those levels. how are the bond markets? >> we continue to see new lows being hit on some of the yields. the five year you were talking about earlier in france are going negative for the first time. we're looking at yields somewhere in the ree jn of .16% when it comes to the ten year in germany. 10-year-old italian around 1.25% as well. looking at some of the big moves we've had in euro dollar trade. we didn't make it to levels we've seen here recently. last year we had a print of 104 when it comes to the euro. today we're in the region of 106. 10603 here. lower by .5% and the pound
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against the dollar off by .5% too. when it comes to what is seen also in the pound worth noting that we have indeed seen new five year lows hit in the pound against the dollar in this morning's trade. with a look at what's taking place in oil we've seen oil stabilizing as of late and brent trading around $56 barrel. wti crude hanging on to 50. you had strong german economic data and of course uncertainty surrounding the iranian nuclear deal. 1200 being the new stickiness area for gold trade and you have silver up by 2.25%. >> let's get back to our top
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story. the apple watch is finally here. preorders are being taken today in select apple stores and high end department shops around the world and our very own seema mody is among the crowds getting a first look at the device. seema joins us from central london. seema were there really that big? were the lines -- were the lines really that long? >> okay the store has been open for one hour. before the store was open we didn't have any lines but now we're looking at a line building outside of the high end department store where apple is unveiling the apple watch. there's three different collections that apple is unveiling here. starts at $349. goes up to $549. that's the watch i had the opportunity to wear and try out. it is definitely striving to be a high-tech fashion device. the question is will it be able to compete with the lacks of tag, rolex, among others that
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are steps away from where apple is show casing their product. how does it compete with those in the wearables space because this is not just apple's attempt to be in the luxury watch market but also the wearable space where you have google samsung, l lg, pebble among others trying to compete in this space given the track record apple had in different product categories. think about the iphone released in 2007 and how that changed the landscape of the smartphone market and then you think to 2010 when the ipad was released that was the kick off or unveil of the tablet market. then we saw others try to compete in the tablet market but apple is the dominant player. i want to bring in a customer that reordered an apple watch. why did you order the watch? what did you like about it? >> i liked the softness of the band. i like the feel of it.
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it looks very expensive and is an accessory that you would wear like jewelry. i ordered black and sport edition and i think it's because of the price range it's very different and it's very into the high end and especially competitors are doing a very similar job with being a smart watch and i would like to try the first edition of apple watch as a first version's of apple's watch. >> are you going to replace it with the one you're wearing right now. >> probably for some time to test it but i don't know how long i can wear it and how long it will be as a part of my using as a watch. >> thank you so much. there you go guys. a customer there that just preordered the apple watch. showing interest and intrigue in understanding how it will function but still a question of whether it will replace the luxury watches already out there. back over to you. >> seema, good stuff. thank you. we'll come back out and talk more to seema within the hour but it's not all about apple today.
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samsung's latest smartphone offerings. the galaxy s6 and edge also go on sale with them expecting record shipments for devices. reports suggest that the tech giant may be struggling to meet demand due to constraints on the phone's production. and the latest galaxy help a south korean firm beat it's silicon rally rival. we spoke to rory o'neill about the intense competition in the sector. >> what we spend our time doing is looking at the consumer patents in all of the markets and having smartphones across all of the segments. samsung has a broad portfolio. we produce great experiences and innovation for all. not just the premium end of the market. >> let's give you a run down of what to watch this trading day. march import prices are out at 8:30 a.m. eastern. they're expected to have jobs last month after gaining in february following 7 straight months of declines.
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a pair of fed officials are speaking today. the richmonday fed president. the dollar index is hitting a fresh three week high. yesterday we saw that 1% rise in the dollar index. jane is the senior currency strategist and joins us now. jane what was behind that move in the dollar yesterday? how much do you want to read into it? >> the market is reacting from the payroll release last week. the release was weak. since then and yesterday we had the initial claims data. if you look at the four week moving average for initial claims pretty low and pretty good and that counters some of what we thought we knew from the payrolls. they're slowing down or maybe they're not so i think the market is unwinding some of that shock last friday and of course
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the volatility in euro dollar this year has been really very exceptional but the trend really, we have to question whether or not the trend has really changed even though the market no longer thinks that it's going to be june for that first hike. maybe it's going to be later in the year and federal reserve will be the first major central bank and that promotes a bullish dollar view. >> you say the trend is still intact while others would disagree with you. we had a guest on the show earlier this week that told us euro is range bound right now because we're not seeing the big drivers out there. what are the big themes for the euro and the dollar right now? >> i think it's still going to be interesting. it's still the federal reserve really at the center of a lot of market moves right now. will the fed go and hike interest rates this year? well most people say yes. of course our view is they may
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not until september. we think it will be at a moderate pace than other commentators have been expecting. we have an ecb and the fact is that the ecb is probably not going to be hiking interest rates for a lock time today but i think the wildcard for euro dollar is still related to the ecb and still related to german data. for the last few months that german data has been improving. does that mean bond yields is going to start pushing higher this year? does that mean the ecb could stop with it's quantitative easing program before september 16th? if that happens the dip will be below euro dollar this year and could be a little higher and a little sooner than some people are suggesting but as it stands right now the federal reserve is still going to be hiking interest rates a long time before at the ecb and i still think the dollar can make gains or be it at a far more moderate
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pace than many people were suggesting a few weeks ago. >> jane just briefly, the pound this morning hitting a five year low against the green back and we're heading into the last stages ahead of the u.k. general election on the 7th of may. now what. >> part of that is the strong dollar story. gaining against everything this morning. so part of that is explained by the dollar but as you say we are just a few weeks away to that election and we've seen the break down which is sustained since the world war. there's how long the coalition can sustain and we know that political uncertainty can breed down side pressure for currency. now sterling interest rates have been supporting sterling against the euro this year. sterling interest rate versus stayed unchanged. so interest rate versus been supported but with so much
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uncertainty it does look likely it's going to be very volatile at the worst see some broad based down side pressure certainly in the weeks ahead and whether or not that will sustain after the election really very much depends on how long the coalition negotiations last and therefore what messages they put out after that date. >> have a good weekend. >> you too. >> the euro continues it's decline against the dollar and the treasury sends warning to european policy makers. the full story is coming up next here on worldwide exchange.
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the dollar extending gains hitting a 3 week high as u.s. pu tours point lower. it's time for the apple watch as preorders kick off while rival samsung debuts the latest smartphone and the waiting game around hillary clinton's presumed nomination could finally be over.
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>> welcome back. the u.s. pressure ri is warning against relying too much on growth. in the report to congress treasury urges officials to make more use of fiscal policy saying stronger demand is essential. they call it undervalued but says beijing is less heavily handed in market interventions. it could provide the basis for discussion with global leaders at the imf and world bank meetings which take place next week. >> meantime the imf chief strikes a tone on the u.s. economy. speaking to cnbc she shrugged off concerns over the recent jobs number. >> just as a swallow does not make spring as we say in french i suppose you say that as well i don't think one lower number should grey the whole picture which is otherwise quite rosy
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for the u.s. economy. if you combine the bad weather and the strike in the harbors on the west coast you have a few ingredients. >> i remember. we talked about it. is it rosy enough that we're ready for an interest rate increase? >> whenever it happens, i certainly hope that -- and i'm sure that the phasing communication, the analysis will be at the top. >> hillary clinton is expected to announce her u. s. presidential campaign as soon as this weekend. reports say the former first lady u.s. senator, and secretary of state will make her own intentions known on sunday via twitter. the focus of making an announcement online is an attempt to connect with young voters. she is an overwhelming favorite as no other major challenger stepped forward yet. we've seen reports about her people hiring office space in
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new york. that makes it very clear that she is going to be running and also i wonder what she learned from her running against president obama when she lost some people say she is as good of a speaker as he was. so that would suggest maybe she'll keep it very very small and cozy. >> a lot of people would love to see her run. we'll have to wait and see. i'm banking on that she will. i'm betting that she will. >> there's no other candidate. >> well we still need the official announcement. >> that's true. >> we still need the official announcement but president obama though speaking of presidents is in panama for the fwathergathering of leaders from the america. he could be signaling his intentions to take cuba off the u.s. list of governments that sponsor terrorism. they are having the first face to face meeting since washington moved to normalize relations
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with havana. >> still to come wearable tech is all the rage. we have been talking about it this morning. how would you feel about mandatory devices in the office? we discuss the rise of wearables in the work place after the break. you can find us on e-mail and twitter as well. we'll see you just after the break.
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it is the day of the apple watch. how would you like it if your boss asked you to wear that to work? seema is investigating how businesses are tapping into the new technology. >> they're becoming increasingly popular and are now entering the workspace. some corporations say these devices are the recipe to success. >> like anything that needs to be tested beforehand. so the best way to do that is for us as a business to start embracing that technology. number one can we put our information successfully on this device and number two can our staff navigate and maneuver around the device. >> blueberry home solutions plans to roll out it's wearable app o to consumers in the near future future. >> this is the top of information that homes are going to be juaning to know and this
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is the type of information that had been reported on a wearable such as a watch. >> from the industrial space to the fast paced world of technology, the cloud services firm is also finding use in wearables and boosting employee moral and productivity. >> one of the down sides is the ever increasing cost of health insurance. as we went out to look at various providers what we discovered was some of the more innovative oness wanted us to put our money where our moug was. so a pioneering company came one the idea of giving us money to insent our people to be fit and healthy. >> question is are employees comfortable in sharing personal information with their managers? >> data shows that 62% of working adults are most likely to share their marital status but that number declines to 36% when it comes to what website they're surfing. not surprising younger age
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groups are more willing to use a wearable at work creating a big opportunity for players in the smart watch space. companies will have to decide which wearable to pick. >> we're going to look at it and see how our system works a bit. >> have you been happy with the gear so far? >> we have. it's a great looking watch and great ecosystem. no problems where it. >> for cnbc europe i'm seema mody. >> let's talk more about this with anthony bruce. you have done a lot of research on this. what are the findings? >> we've seen 2,000 people in the u.k. and 40 to 60% of them said they would be prepared to share data generated by a company provided wearable device, a watch in this case, with their employer if they felt this was something in it for them. if that's in the case of a video clip or reduced health insurance
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or working conditions and so forth then they would be prepared to share that data but that rasz some bigger questions around privacy. 40% of that 2,000 would be concerned about the privacy of the data and how much it gets used used. >> the information that is gathered on the wearable by the employer could be used against you. would that be realistic? could it actually be used against you? >> 40% of people felt that was a real concern for them. so when you look at people being significant getting more out of them creates real competitive advantage. 40% of people were concerned about how the data could be used. against them. what is interesting is the
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prevalence of data. we use twitter and facebook and put opinions out there. organizations are already looking at the data. employers and competitors are looking at that data. it raises really important questions around privacy and so forth. >> the big difference in age. the younger age group much more relaxed about this type of stuff. >> sure and not surprising that that would be the case but as the demographics of the work force change this is going to be something that organizations are going to need to deal with. it raises important questions around the diversity of the work force. it generates a return for the individual. what does not being healthy generate. >> other companies doing it. >> your video clip was a great example of companies already doing it. people are experimenting with it. it's a new area and we're seeing it in the health care market and they are doing it. it raises questions about how
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this gets used going forward. >> thank you for being with us. people analytics leader at pwc. now the latest names in golf have teed off at augusta national. find out who is topping the leader board and who is falling behind as we head into the second day of the masters.
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the tech war heats up. the apple watch is available for preorder while rival samsung debuts the galaxy s6. >> ebay unveils more details of its planned split with paypal later this year including anticompetitive rules for both parties. >> will she or won't she? those questions may stop as reports say hillary clinton could announce her plans to run for the white house as soon as this weekend. hello, everyone. if you're just tuning in thank you for joining us here on the show. here's how markets are appearing ahead of the u.s. open. futures pointing to a mixed open. the s&p 500 down by a quarter of
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a point. the dow jones expected to open a tad higher while the nasdaq is off by 1.6 points. yesterday the second day of gains stocks were higher for the fourth time in five sessions. volumes were light but we have better than expected jobless claims. mixed reaction to earnings. alcoa was down. but walgreens higher by quite a bit. let's show you what european markets are doing this morning and they're on a tear thanks to qe. the dax hitting another record high and this morning's trading session currently higher by more than 1%. industrial data out of europe this morning was slightly better than expected and we are are also close to record highs for the ftse 100. cac 40 up by 0.2% lagging a little bit. another market and region that has really seen massive gains
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that's the asian trading session or asian markets really. the hang seng higher by 8% this week. this is as a lot of mainland investors were piling into the hang seng because they thought there was still some value left in the hang seng. the nikkei 2-5 this morning reaching through the 20,000 level for the first time in 15 years but still below that now. but higher by 2.4%. the sang high still seeing very good gains this week of 4.4%. >> yeah carolyn, let's look at what's going on when it comes to some of the cross rates out there. we've been seeing the dollar strengthen quite substantially. if big caps are rallying. the russell 2,000. the mid caps were selling off again. we are heading into another round of earnings season of course with alcoa having kicked off q-1 earnings. the dollar on track for the first weekly rise in a month today. we had the jobless claims data which was published as well and
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that is the better concern about the direction of the u.s. labor market and now we're back and looking at the fed and whether or not we'll be looking at a hike later this year. most think we are despite the dovish tone in the readings of the fed speak. >> believe only 10% of those out there believe we see a june hike. though two fed officials saying it's not off the table so we're on data watch for the next two months but september is now the date that everyone is expecting. december though is also still in play. it's wide open. >> but they're saying it's all data driven. that's what they want us to be looking at. >> yeah. >> so yeah. now apple is a massive story still. >> absolutely. >> in the month after apple announced the details of its smart watch, the tech giant has spent $38 million on its watch
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reimagine television campaign. that's just under the $42 million apple spent in five months on tv ads for the iphone 6 and 6 plus. but is the campaign paying off? we've been asking whether they would rather own samsung or apple products. >> samsung. i'm going there right now to get a galaxy s6. >> apple products are better than samsung because they're sexier. >> i won't buy any of them because as i say i like my analog device. >> probably the apple batchwatch? >> why. because of the brand. people love the brand of apple. it's reliable. it's becoming a staple in society. so i think an apple watch would be more successful. >> i have iphones so i don't need a phone. i have a watch so i don't need a watch. >> joining us now from new york is the senior equity research
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analyst. you say the con sense on apple watch sales is too aggressive. why is that? >> we're looking for about 10 million units here in 2015 and our belief is the consensus is closer to the 15 to 20 million unit level. overall our expectation here is that it's going to come out of the gate fairly slow. you'll get the early adopters getting in. the loyal apple purchasers coming in however there after we expect to see a pause or slowness in demand. the main reason being the fact that this is the first release and overall we expect apple will have a challenge trying to have to get consumers to change their preferences in the lines of having -- moving toward wearing
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more watches and at the same time this is a product that does have a steep learning curve given the new learning space and fairly poor battery life on the battery. we expect future releases to to do better but this is a great product and very sexy good-looking product that we do expect to perform well. >> but i'm curious approximate your caution on apple watch sales, does that have anything to do with the fact that the distribution the release will be some what more customized and not standardized? and as a result of that we may not see all the buzz around the release as we have seen with previous product releases. >> that's going to have something to do with it. clearly you're not going to see the long lines that we have seen in prior releases. most recently the iphone 6 launch so that's going to play a role into it but to some extend
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apple needs to do that. this is a highly customizable product and because of that the supply available is going to be much leaner than we have seen with other more standardized products and it could have an impact on the buzz we see and in the coming quarters. overtime they'll get a better handle on it and you'll see better results out of the watch. >> angelo hi. what do you think the biggest plus is with the watch? we're talking about whether it's tacking your health always having access to the e-mail what do you think it is that the consumers want out of it? >> the biggest plus with the wearables category and apple watch is fitness capabilities. that's a real key when it comes to the apple watch in general and i think that's kind of an
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area that apple is going to have to build on here in the coming years and personally i have a smart watch and most of my use from it comes on the fitness capability side of things. most users or most purchasers of smart watches these days are going to be looking at the fitness capability but if you look at the watch also it does offer a lot of personalization. something you don't see with other smart watches out there and that will also be a key. >> i had one. i have to admit i stopped wearing it because i became way too square about what i had to do and tint have to do in terms of fitness. you know yourself if you're being healthy that day or moving enough i thought. but angelo i'm looking at your research and you have been looking into how it's going to impact earnings and we were
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talking to a previous guest about that. give us a little sense of when we could potentially start to see a feed through if it's a success. >> right. absolutely. looking here at 2015 we expect it to have very little impact on the overall result. it's going to comprise less than 2% of overall revenue. very little impact to the earnings front. as we move into 2016 we think unit shipments are going to move from 10 million to 30 million. we see a potential earnings impact of 45 to 50cents per share. growing to 5 to 6% of total revenue and as you move to 2017 then you're talking about the apple watch potentially making as much as 7 to 10% overall revenue. making up north of 70cents per share to the bottom line. so it's you know 2 or 3 years from now is when we expect the wearables category to really explode. >> angelo thank you very much
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for being with us. senior industry analyst from equity research s&p capital iq. >> you have to wonder if this launch is successful will it make apple more aggressive in launching other things? maybe they have been a little bit hesitant and want to see how the launch goes. >> i would be quite furious to see what would happen with an apple car but might be the future. i don't know. they have the cash don't they? >> they have the cash for everything don't they? >> yeah. listen if you're confused about why apple's new device is not called the iwatch head to cnbc.com and you can read more about it. loads of you have been e-mailing through. the e-mail address worldwide@cnbc.com or find us on twitter as well. good morning. she thinks the watch will be revolutionary. you'll be able to do so many things. it will be a time saving device
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and the apps will help us maintain better physical fitness. that's very true. a number of you writing in on the horse races too. talking about the grand nationals coming up. sharon says why tarnish a great game of horse racing with this qe, qe economy afraid of ending qe. is there qe on impact of horse racing. >> i don't think so. might be. >> i don't know either. keep your e-mails coming through. jeff writes one ponders if the swallow of spring thinks a warner brothers batman projector watch from walmart might keep up with the smart watch. warner brothers batman projector watch. something you might want to wear. coming up ebay and paypal splitting up later this year. they're promising to still be the best of friends though. we'll tell you more in a second.
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it took tennis legend serena williams, fencing champion tim morehouse and the rockettes years to master their craft. but only moments to master paying bills at chase.com. depositing checks at the atm and transferring funds on the mobile app. technology designed for you. so you can easily master the way you bank.
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hillary clinton is expected to announce her u.s. presidential campaign as soon as this weekend. reports say the former first lady u.s. senator, and secretary of state will make her intentions known sunday via twitter. making an announcement online is a focus to connect to young voters. she's the overwhelming favorite to win the nomination as no
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other major challenger stepped forward yet. >> president obama is in panama for the gathering of leaders from the americas. he could be about to signal his intention to take cuba off the u.s. list of governments that sponsor terrorism. he is scheduled to meet the cuban president for their first face to face meeting since washington moved to normalize relations with havana. >> ebay and paypal will splitting up later this year but the companies will still be joined at the hip at least for awhile. landon dowdy joins us with all the details. >> so more details have emerged in an sec filing from he ebay about the planned split with paypal which is expected in the second half of this year. ebay agreed to ensure 80% of retail sales. just as they are now. if paypal share dips below that ebay will have to pay restitution. paypal will pay a commission to ebay if sales rise above that mark. ebay's ceo who will become
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paypal's chairman says the companies won't be able to negotiate joint ventures with other firms without the former partner signing off. they announced the spin off under pressure from activist investor carl icahn. they'll need approval and ebay isn't allowed to create it's own payment system while paypal can't develop a marketplace to sell merchandise. ebay generates more profit than paypal but it's growing more slowly. paypal is on pace to overtake ebay in terms of sales. ebay facing increasing threat prs amazon and alibaba and it's also dealing with google whose search results push web users to other sites. they're cutting 2400 jobs this year ahead of the split and is seeking a buyer for its enterprise unit which helps other company with their online sales. back to you. >> landon thank you for that. >> now before we head to break these are the headlines.
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the dollar extends gains hitting a three week high as the u.s. futures are pointing lower. it's time for the apple watch as preorders kick off. rival samsung debuting it's latest smartphone as well and the waiting game around hillary clinton's presumed nomination could finally be over. [ male announcer ] some come here to build something smarter. ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ ♪
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10-year lipper averages. so in a variety of markets we can help you feel confident. request a prospectus or summary prospectus with investment information risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. . the ftse above 7,000 once again. the close happening yesterday above 7,000 too and the cac and
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ftse higher by .3%. the u.s. how are we going to open there? >> we're looking at futures that are mixed. slightly improving over the next 30 minutes. the s&p 500 is expected to open higher. the dow jones is seen higher by 10% and the nasdaq is just a fraction lower. >> so just looking at some of the thicks taking place today the march import prices are out at 8:30 a.m. eastern time. they're expected to drop a bit last month after gaining in february following 7 straight months of declines. we have the rich mond fed president. good morning allen. thank you for getting up so early to talk to us. what are you going to be looking for to round off the week? how do you think trade is going to fair and where is your focus?
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>> right now i'm looking to see follow through on the positive action. you have to appreciate from a bullish standpoint and optimistic standpoint ou the market is rebehaving with everything that's happened in the last months and months. we're expecting nothing from earnings. not low earnings but no earnings growth. that's important to know that's just growth but the markets maintaining here near the highs it's in a position to make another run to the all time highs even with the earnings hangover outlook we have ahead of us. >> so i was speaking to somebody yesterday recicely onprecisely on earnings season. he thinks we could be to the downside with data catching up. the prospect for rate hikes to come as well. do you think we might be caught
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out. >> i'm not going to stick my neck out and say that's the case. everyone is expecting a very poor earnings season. potentially negative earnings growth but the market is where the market is. that's what is is most important and that's amazing to see we're pressing on new highs even with that in the face of us in the news. global markets have strengthened. the fundamentals are solid if you look at low energy prices low interest rates. nothing has changed and i think there will be some surprises. we kick off with the financial markets. you have goldman sachs and morgan stanley and the big banks and i think they'll reflect a much better quarter than they had, if you remember the begin of last quarter set things off because they didn't make money with the october dip. this quarter they're going to benefit from a nice jump in february and i think that should be a surprise for the marketplace. >> i want to take it back to the dollar. session we saw yesterday with the s&p 500 rising despite dollar strengths.
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i know that one day doesn't make a trend but do you think that big blue chip stocks will be more immune to dollar strength going forward? >> i think it's the new normal. the market is starting to calibrate and accept that fact. we want to see if the dollar is going to make new highs and the euros make new lows and most importantly how are things going to react. you're seeing oil stay above $50 and essentially oil has done nothing for 3.5 months. we're trading between 45 and 55 and we're at the midway point now and that's supportive of the energy stocks that got overly done to the downside. if they can benefit to stop going down it's a modest increase i think there's some positive action that can contribute to the overall market. i can't be more encouraged by the price action no matter what you throw at the marketplace it's responded in a positive way. >> thank you for that allen.
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chief options strategist at bulls eye options. >> thank you for having me. >> let's turn our attention to sports. jordan spieth is your first round leader at the masters. he was the runner up last year but shot an 8 under par on thursday. one shot off the course. spieth had nine birdies in his round. rory shot a one under par while tiger woods is one over. >> the sporting continues in other areas because one of the most famous horse races in the world sets off. it gets well underway tomorrow. the legendary jockey is riding for the first time. prize money is a million pounds this year. they're expected to have a televised audience of 600 million people. >> a lot going on this weekend then. that's it for today's show. >> have a lovely weekend. we'll see you very soon.
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>> good morning. apple is taking preorders for the smart watch. it will do that today. consumers are lining up for a chance to try out the device. flight plan. amazon getting the green light to try a delivery drone outdoors. it comes a few weeks after the company blasted regulators for being slow to approve commercial testing. it is cut day at the masters and you probably know this already, 21-year-old jordan spieth made a run at history. almost matched the lowest round ever in a major. finished at the top of the
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leader board 8 under. it's friday april 10th 2015 and squawk box begins right now. good morning and welcome to squawk box on cnbc. becky will be back on monday. we have a big day in media. netflix launching it's new series and it's called daredevil based on the comic book series of course. this is part of the package deal with marvel for four different shows as we have been talking about this is a huge play by netflix to compete with the hbo new stand alone streaming subscription service which also launched this week. a bit later this hour we'll take a look inside netflix's war room to see how they take a release live around the world all at one time and then tracks how many people get to watch it. an

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