tv Worldwide Exchange CNBC April 16, 2015 4:00am-6:01am EDT
welcome to worldwide exchange. >> these are your headlines from around the world. >> greek bond yields move higher. this as they dash any hope of an imminent bailout deal. >> the imf warns of a super taper tantrum while u.s. secretary treasurer is concerned about the disparity between the u.s. and the global economy.
>> i think that the focus of this week's imf meetings is very important. it's how do we make sure that there's stronger growth around the world. that would actually lead to currency values changing a bit. >> shares rise to the top of the ftse 100 as consumer goods giants benefits from a weaker dollar. >> but they blame the strong green back for lackluster results while they see sales slow due to greek demand in the u. k. home market. we're getting some flashes coming out of the ecb. they're saying growth will come in at 1.7% versus 1.5 in
january. so slight increases for those. 2015 this year 1.4% the expectation versus 1.1% in january. increasing these forecasts across the board. >> it's interesting because in the u.s. a lot are downgrading their forecast for 2015. what happened ifs europe grows at a stronger rate than the u.s. wouldn't that be a surprise? >> it's clear how the momentum is certainly behind european growth. we're also having inflation numbers coming in as well. these forecasts of this 2015 hicp at .1% slightly lower than the january forecast of .3 where as 2017 it's been increased 1.6% now the forecast versus 1.5%. we also had flashes that greek bond yields have jumped higher. the curve has inverted further. greek issue continues to elevate
as we get closer to the crucial meeting. as we mention at the top of the headlines, reducing expectations that any deal can can be reached at that meeting. let's get straight to our first guest. richard kelly is with us. is that crucial? is it make or break once again? >> i don't know. the issue is we have been sitting here for two months. nothing seems to have been delivered. there's no progress and the make or break is going to come the day before the default in may. >> wolfgang ahead of this meeting, is that helpful to anyone or is that game playing or do you think fundamentally the germans are very far from any sort of caving to their demands. >> i don't think the germans will cave at all. that being said i don't think they're that far away from a compromise they can live with.
to give them the short-term money. we are nowhere close to a long-term settlement of what is wrong in greece. >> the ecb continues to lift it's emergency liquidity to greece. many might say that's a positive to the u.s. banks but that's not the optimal situation is it? we don't want them relying on the ela completely. >> it can only be a temporary lifeline. the only reason it's needed is there's destructive forces going on. so it's not positive at all. >> let's switch focus to europe more generally. we had the ecb growth forecast increased a little bit. yesterday we had draghi once again in upbeat and self-congratulatory tone. is that justified? >> what the ecb has done if you look at the indicators and data and lending markets it's positive. imagine getting to 17 1.8,
we're talking about 2 to 3% annualized. that is there. we've had a lack of structural reforms and too much is being heaped on the shoulders of the ecb. they can provide temporary relief but we're not seeing the reforms we need. >> in regards to whether there's a bubble brewing in the bond market what are your thoughts. >> it was the usual market reaction because when he said there was no bond bubble the -- the market keeps pushing this. >> so as a bullish sign. >> they said if there's no bubble yet, why not. that's the way the market responds to these things. i don't think you see a bubble in the bond market. i think you see a lack ofly of liquidity. >> but how dangerous is this?
yields in europe are even lower than they got after qe in the u.s. it's really distorting financial markets and that means at the end of this when it has to be removed we'll have an even bigger fall out than we're facing with elevated volatility in the u.s. at the moment. >> i don't know that i'd say it's distorting the markets in the sense that any other interest rate cuts distorts the markets. the issue is you get to some structural issues where some investors, there's promises of returns that seem unreasonable in this current environment. you're seeing it across europe now where there's not enough euro denominated debt and you're seeing investors have to leave that debt and buy dollars, buy aussie and buy canada. structurally you're changing things in the market. it doesn't mean it's distorting. it's changing the ruls of the game. >> many are looking at the low yields and questioning if bonds were the safe haven they traditionally were.
>> there are not that many tremendous opportunities. in fixed income you're not playing yield curves. maybe cross country carry. globally it's a u.s. dollar carry trade and there's much greater returns in fx than fixed income. >> all right. stick with us. we want to continue the discussion and get your thoughts on the u.s. that's head of global strategy at global securities. stay tuned, european closing bell will be speaking with s&p chief ratings officer from 1700 cet and smaller parties are gathering pace and makes waves in the mainstream political background so how could these changes be effecting the business community in europe? head to cnbc.com but for now a market update. >> we're just about in the red for europe and it is a little bit soft thus far. it comes off the back to very strong weeks. yesterday we finished up because there was no tapering which was
an outside fear from the ecb but of course they he continued the bond buying. overall this week has been a little more lackluster than the past two weeks beforehand. we're down a quarter of a percent. let's look at the individual markets and see where that's playing out. the dax taking the brunt of the negative performance. it was flat compared to the rest of europe slightly positive. france down .3. italy also down .3%. let's look at the top stocks on the move in europe. unilever up thanks to favorable fx move and shift toward high end products offsetting struggles in emerging markets. elsewhere, diageo off 2%. trading lower after a decline in net sales versus analyst
expectations for increase. africa was the only bright spot with sales up just over 8%. rival sab miller saw a rise in fourth quarter organic revenue growth with a boost to sales coming from south africa and china but the group was negatively impacted by currency moves. overall the market taking those results up 2.6%. let's have a look at airbus. shares reacting positively up 2.3% to the news it's looking to carry out a 10% stock buy back. the aircraft manufacturer hopes to authorize it's plans on the 27th of may. the ecb has given a them until the end of july to close out a 1 billion euro loss making trade. this is citing a level. that's plat at the moment or closed. not sure why it's like that. record lows once again on european bull markets today. it's the return of the french
bond yield. it's a continuing trend to see these yields push lower. the yield on the ten year in germany at 0.091%. of course as we just discussed with richard kelly there was no pause to u.s. bond buying programs. just touch on greece as well. that's the exception to the rule in europe. yields at 12.6% on the ten year. once again grexit fears elevated over the last couple of days. let's look at commodities because the oil price has rallied but rallied in volatile fashion and yesterday saw a sharp increase in the price but today we're correcting a little bit highlighting the volatility despite the recovery we have seen. 55.99 on wti. it closed at its record level for 2015. brent 62.6 as we look at things today. >> here's what's coming up on the show. if you could put one question to
president putin what would it be? we're finding out what you would ask the russian leader. they're the latest tech group to unveil a supersized smartphone. i went to try it out. stay tuned to find out what it was like and a model philanthropist. we head to speak to the award winning super model and humanitarian. that's coming up.
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the falling yen is attracting more dollars into the country and high yielding u.s. bonds are luring japanese investors. china pegs it's currency to the dollar and is reib vesting domestically as growth slows. that has caused it to dip in february. the bank is the single largest holder of the debt. >> jeff lacker says a good argument can be used for raising rates at a fed meeting.
he says even though there are signs economic activity has softened there's still a strong case rates should move up by the june meeting. >> simon potter says the central bank is confident it can smoothly lift rates by when the time comes. potter leads the fed's market growth which is responsible for actually raising interest rates. markets are in danger of a super taper tantrum and spiking bond yields when the federal reserve delivers it's first interest rate rise. that is the warning from the imf director of monitor and capital markets. >> it also suggests that the potential for upsides or prices in long rates when it's more imminent is also important. as a consequence, monetary
policy will continue to require fed getting the exit right and clearly communicating to the public. the compression of yields could decrease volatility and have a lot of repercussions. >> all right. u.s. treasure secretary jack lew says the u.s. is on strong footing compared to the rest of the world and says the u.s. has more money in their pocket due to lower energy prices. >> the u.s. economy is strong and in comparative terms to others around the world, stronger. there's pushes and pulls in different directions. so one can say if any one thing led to more strength it would be stronger. but there's a lot of other factors at work as well. the focus of this week's imf meetings is actually very important. it's how do we make sure that there's stronger growth around the world? that would lead to currency
values changing a bit. >> still with us is richard kelly. head of global strategy at t.d. securities. so jack lew there. relatively upbeat. so we basically are still pointing toward a june 1st initial small rate hike? >> september is more likely time for the fed to go. june is way too early. when you look at inflation dialicdial dynamics i don't think there's any reason to force that. >> that imf view is nothing new. the thought this this could cause increased volatility and corrections in risk asset markets. we've had plenty of those over the last six months anyway. but it's interesting to hear it coming from him. do you think investors will be looking at that and taking their foot off the gas a little bit? >> when you look to the treasury
secretary there's no alternative to the u.s. dollar in fx markets. if you're looking at central banks there's only one talking about tightening so right now you still have to talk constructively when you are u.s. secretary that the u.s. picture and the outlook there. you still want that con fireworks tense and you need to maintain the confidence. once we see the growth in europe and asia and bottoming in china, if what we're seeing in fx and rate markets is still going on that's when you start to go the other way. >> we were talking about a currency war taking place in 2015. aren't you surprised that jack lew didn't take more of a bold stance when being asked about the stronger dollar and the negative impact on the u.s. economy? >> he would be very ineffective to say anything right now. there's no alternative. you have to save them for when you think there's a clear and present discrepancy in the market. euro dollar moved very
dramatically in one direction but that's very correct in terms of when you see the growth differentials between the two countries. it's important what you're seeing. when we see something inappropriate. >> when does it become inappropriate? we've already seen this 25% gain in the u.s. dollar. >> i suspect that euro dollar will trade through parities. in the mid 90s and we're at the end of the year and inflation is moving higher and if the euro at that point is not moving higher we're seeing dysfunction in markets that's when you start to talk that the other way. >> thank you. stick with us. we'll be back with richard. one more chat before the next break. now ben bernanke has a new job. he'll meet with investors around the world and offer to analyze
issues. he tells the times he chose citadel because it's not regulated by the fed and he won't be doing any lobbying of any sort. >> now the russian president holds his annual call-in show in just under an hour. more than 1 million people submitted questions on topics ranging from crimea to moscow's relations with baltic nations. >> what question would you put to the russian president if you had one question to pose. we'll add an extra level of assumption here. the assumption is he will answer you honestly. otherwise it would be a pointless game. nathaniel has numerous questions. how could the ukrainian crisis have been avoided. he would like to have asked putin if he could solve one problem in the world what would it be? get in touch with us. e-mail us firstname.lastname@example.org or
get in touch on twitter as well. our personal handles on the screen now. what would be your question? >> the serious question would be what is the end game in ukraine and crimea. but the tabloid side for me wants to know where he went for a month. >> does he see himself as a winner or loser. >> true. >> and you're going to get an honest answer there. what would you say? >> i would talk a step pack and say i want to learn more about putin, the man himself. i want to know about his personal life. he's so guarded every time. especially for a tv interview, usually has an entourage around him. i'd like to know the man himself. has he ever been in love. is he ever going to get married? >> i have a serious one. the serious one i want to know what scares him the most? an internal russian individual or group of people or outside and whether he's worried about
what happens when he reaches the end of this presidential tenure because i don't think he'll have such a smooth transition and what happens next? that must scare him. >> does he have plans to retire. >> i doubt he does. and on a more joking note i wonder how tall or short he is when he isn't wearing those in his shoes. he is very aware of his height. >> and his image and the way he's perceived right. >> exactly. get in touch with us at cnbcwex with the #ask vlad. richard let's have a serious point on the russia-ukraine crisis. it's sort of gone away from the main focus of the global eye. is it less of a threat than it was? >> you reached an equilibrium. it's certainly not good for ukraine or helping europe and
it's a drag on europe but in terms of generating market volatility you'd have to see something new. even potentially the default in ukraine and structuring, even that might be digested very well. >> would you put money to work here in russia? >> you've seen a relief recovery in terms of what's in there. i don't see very many fundamental reasons to be invested there right now. >> and it's surprising given what's happened over the last 12 months that it hasn't derailed equity markets more. we have a deal forming with iran. might that unsettle the major nations a little more than in the past? that might be a bigger issue if it's iran israel saudi arabia than iraq and syria. >> it's probably one of the less appreciated political changes going on in the world and i wouldn't say it's destabilizing but it's dramatically changing the rules we've had in place for how global politics is played
when we're running with such low oil prices. bringing iran back into the fold. changing relationships between u.s. and saudi. it does create a lot of uncertainty over the next five to ten years and changes the stability. >> speaking of oil prices the volatility in oil prices continues. we were up yesterday and now we're down today and we're also in the middle of earnings season. 50 s&p 500 companies reporting this week. next week about 150. that's when we'll get a good sense of how the energy companies are coping in a dramatic drop in oil prices. what are you expecting from the energy sector? >> you're going to see fairly negative news in terms of the immy kagssim implications implications. you could be talking 20 to 30% reduction. how that feeds into the u.s. economy even though it's only 1% of the u.s. economy. that big of a decline can shave 2 or 3 off of gdp.
>> do we need a strong earnings season overall in the u.s. to just identify where justify where valuations are? >> people, a lot of times they focus on the exports and corporates. the biggest impact hasn't been the direct exports but the income side of things. that's where they lost a lot of potential earnings coming through. >> despite the recent bout of disappointing data the erratic moves in oil prices the s&p 500 striking distance of trading at its all time high. doesn't seem like the market is fearful of a potential rate hike. what's keeping investors bullish despite concerns over valuation. >> the number one reason the market is bullish is there's no fixed income product it can buy so equities and credits are the only game in town. >> this is the only place you're getting some type of yield? >> and we have seen a dramatic pull back in growth. if you look at the risks to growth over the next nine months it's probably higher and not
lower but what's justifying the move is that's a place where you can still earn return. >> pleasure to have you on here. that's richard kelly. head of global strategy at global securities. sandisk first quarter earnings missed forecasts as revenue fell and on acquisition and restructuring charges. the maker of flash memory chips is rejecting it's first decline as it struggles to meet demand. they plan to cut 5% of nonfactory jobs to reduce costs. shares did fall in after hours trade and in frankfurther it's down almost 7%. >> goldman sachs reports first quarter results. forecasts at $4.26 a share on revenue of $9.35 million. analysts expect another strong quarter for the investment banking division but will focus on the trading business after jp morgan reported a jump earlier
this week. >> citi group reports at 8:00 a.m. eastern. forecasted to earn $1.38 a share on revenue of $19.8 billion. last month citi's cfo warned trading revenue would be down in the mid to high single digits and suffered a modest loss in the swiss frank. citi and goldman were high ahead of the two important earnings reports. >> coming up we'll be tuning in to the russian president's call in show at 11:00 cet. don't go anywhere. >> netflix shares hit an all time high after earnings but what was it that got investors so excited? we break it down after this break.
the imf warns of a super taper tantrum in the bond markets when the fed begins hiking rates. while u.s. secretary treasurer jack lew tells cnbc he's concerned about the disparity between the u.s. and the global economy. >> i think the focus of this week's imf meetings is important. it's how do we make sure that there's stronger growth around the world? that would actually lead to
currency values you know changing a bit. >> a turn around at unilever. shares rise to the top of the ftse 100 after q-1 sales are above expectations. >> but sab blames the strong green back for lackluster results while the rival sees sales slow due to weak demand in it's u.k. home market. >> welcome everyone. let's take a look at european markets on this thursday morning. we were higher in yesterday's trade. that was the big message from the meeting with mario draghi. right now here we're looking at some red across the screen. the xetra dax down .5% and the cac 40 and ftse mib trading down but right now just fractionally
on the day. oil continues to be a big story. we saw a debt cap bounce in yesterday's trade. oil surged after a lower than expected build in u.s. inventories. that gave energy stocks a big push to the upside but we're looking at prices lower on the day. wti at 55.90 down .9%. >> let's have a quick look at greek bond yields elevated with the shape of the curve inverted even further than usual. you can see 18.2%. the 10-year at 12.7%. this upcoming meeting is unlikely to lead to any deal. so once again elevated. let's look across the rest of the world. french ten year bonds hit an all time record low this morning at .338%.
look at it as almost even more impressive than the ten year german yield. still facing the french economy. of course the german yield is now below .1%. >> how low can it go? >> presumably to sooer hezero. >> we're seeing that already in some parts of europe. >> absolutely. >> let's also switch focus to earnings. netflix a big mover yesterday. shares hit a record high in after hours trade after they added more subscribers than expected in the first quarter. netflix benefitted from its aggressive international expansion it launched in new zealand and aims to be in japan later this year. that's what wall street was talking about. the frankfurt you could see it's up better than 12%. >> earnings for netflix tend to lead to very big moves and we're
seeing that 12% move and a lot of it comes down to exclusive content which is driving subscribers. >> i think that is what makes this earnings reports interesting. they actually missed estimates but the fact is investors care about subscribers growth and continue to show they're growing their subscriber base and a lot of that has to do with content. house of cards. orange is the new black. the series continues to bring in new eye balls and you can a fan of house of cards. >> big time. the only shame with netflix is they released the whole new series at once. i finished it in two or three days. it's over before you started. >> there's a lot of analysts that cheered this report they got from netflix last night. jp morgan upgrading the stock, credit suisse among others. they're upgrading to $461 from $417. so the bull run continues. we'll have to see how the stock trades in today's trade but you can imagine it will be one of the big movers on the nasdaq
which closed above 5,000 yesterday. 5011. >> you love the nasdaq as much as i love the 10 year jeredgerman bund. >> not love. it's an index we follow closely to get a good gauge, especially in terms of tech stocks. >> talking of tech stocks. >> should we talk about google? >> i don't not. >> they're calling on the u.s. federal trade commission to investigate alleged unfair practices related to its android product. two people say rivals claim the smartphone operating system is unfairly used to gain online advertising. this comes after europe's regulators opened a probe into google's android system over a competition and investigation into it's search engine practices. google's head of european economic policy tells cnbc this is not about the u.s. versus the eu. >> operate by the rules where ever we do business and we respect the rules that
regulators have to pay here. we're a big company and extremely successful and with that comes scrutiny. there's a lot of speculation. frankly we are going to have a discussion based on the facts. based on our business and we'll do the same in europe. >> and coming up later today, a first on cnbc with the eu competition commissioner. a day after of course she filed antitrust charges against google. he sits down with sarah in washington ahead of the imf and world bank spring meetings. that's at 10:00 a.m. eastern time on squawk on the street. >> another tech story, chinese mobile manufacturer huawei unveiled the new flagship phone yesterday. i spoke to the ceo at the launch yesterday where he told me about the company's ambitions to target high end zone users in
western markets. >> from the industry and we also increase our market share on high end. not just middle tier. >> and on hah note trying to expand into the western world specifically where the iphone and the samsung galaxy phone had done quite well how do you do that if you don't have the partnerships with mobile carriers in the u.s. like at&t. >> you know consumers, styles always like that. some new selection. and at huawei we can bring more beautiful and more better premium of products and also at a reasonable price. i think that's innovation.
i think that's the difference. >> we'll see if they can make the push into the western world specifically here in europe as well as the u.s. despite the dominant role that apple and samsung are playing in the two markets. while attending the presentation it was very clear that they were putting a lot of focus on their photo capabilities. they spent a lot of time boasting the features of the photo quality and featuring how easy it is to take a selfie as well as a group selfie. they call it a grofie. it is a term being used. >> despite the features you're mentioning the price are 499 euros and 599 for the premium verse. you're you're up there and western markets doesn't have the same cache and it's very different
now what they're targeting now than what others are having success with. low end. emerging market consumer trying to get on the smartphone ladder. >> they're trying to strengthen their brand equity in these markets where they don't have such a strong brand name as apple and samsung but what's the one thing you just can't stand about phones right now? >> i like my phone right now. >> battery life. this phone can be charged for over two days. two days of battery life without having to charge it compared to apple which is over one day. >> which i think is good. we'll see howell huawei does with the pa. it's an expensive phone relying on android as well but we'll see how it does. >> let's switch focus to real estate. it's a hot topic in the u.k. election particularly the high cost of housing in london.
our next guest says investors are looking to central and eastern europe for value in the property market. joining us is eric managing department department. >> i think the overall central european markets. you're seeing debt to gdp ratios so fundamentals are good in the market. investors are seeking yield and the economies have solid foundations and opportunity where is where our investors think it can return good capital. >> what is it having on eastern european markets. >> it's impacting the banks. they're significantly overleveled. they asked them to reposition 138 billion positions. you'll start to see deleveraging
where you have seen that today in italy and spain and western european economies. >> so the risks are elevated but are the yields high enough to justify that? >> there's probably between a german market. 2 or 300 basis point spread and secondary cities are becoming quite interesting. you know all the way down. the other thing is these economies were primarily manufacturing based economies. that's shifting to highly skilled multilingual university graduates so you're seeing the growing outsourcing industries increasing in these regions. so university cities in these markets are doing quite well for them. >> clearly the strong demand the big question is will this demand change depending on who wins this u.k. election? >> i'm not sure it's going to change in my part of the world. so i think everyone is watching the u.k. election. everyone is talking about property in the u.k. and it's a
place a lot of investors are parking capital and you have to have an allocation to that and at the same time higher yield strategies and they provide a safe haven for that and, you know, good return risk reward. >> what's been the spill over in your central european markets? has that started to disapate a little bit? >> we looked at the markets when this first happened. putin is happy with crimea and the eastern part. it's all of europe. i think it comes across all the boarders. >> outside of poland what's your top pick. >> we're invested in slovakia, hungary, romania. we're actually seeing growth in a lot of these markets which is quite compelling. so our first closing of our
second fund is coming up this week. investor appetite is there so we're pretty pleased with that. >> those fears of a bubble brewing, have those been subsided by a recent fluctuate in prices? >> from an american perspective, 2-thirds of the capital comes from america. europe is on sale now. it's quite cheap. we look at the bubble and sort of specific -- i'm concerned about the property bubble. so it's understanding the specific markets there. >> thank you for joining us today. >> the managing partner. now the russian president is calling his annual call in show later today. what question would you put to putin particularly if you were told he would be honest with the answer. get in touch with us and e-mail us worldwide at cnbc.com.
cnbc wex is our handle and use the #ask vlad. what's your next question for him? >> does he ever see russia as an ally of the u.s.? can we ever find a way to have those two countries work together. >> similar train of thought which international leader do you most respect? >> he might say himself. >> but might well be one that's an enemy of his. even though an enemy might respect him and say that's his most respected. >> keep your friends close and enemies closer. >> will you miss an interview in english. >> if you do please join us. >> they're protected by translators so you've never seen the real president vlad. >> we'd like to see him. >> get your questions to us.
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>> it's adopting new technology at a rap police department pace as players try to stay ahead of the competition. let's get to nancy who is at the summit with a special guest. hey, nancy. >> hi, seema. that's right. arguably one of the most interesting places to invest is in the online travel e-commerce phase. it's barbara. thank you for joining us. you are launching a service that people can get paid to write customer reviews and plan their own itinerary. can you explain how it works and someone who wants to leave it actually gets paid? >> sure. 65% of travel bookings still happen off line and the reason for that we think is because human experience is the most important thing. what we created is a platform where people can share their human experience.
the experience about the places they visited and get most of the commission we make on every sale because of the content. >> 70% of the commission goes to the user. are you making a profit currently? and if not when do you expect to be profitable? >> no we're investing everything we make into the progress of the platform. we're not expecting to really make any huge incomes in the next year at least. >> you mentioned fun raising. you're 40% self-funded correct? >> correct. we are now securely financed at least for the next three years. >> what size of investment? >> this is a typical. >> how many users do you have at the moment. >> we're growing at 500% every two months so 250% a month. >> the broader picture for
online travel and e-commerce is growing competitive. we have seen consolidation with the like of orbit * and expedia coming together. does this present an opportunity or make the pricing environment more difficult? >> this will be an opportunity because we want to own the dream and memory spaces of the people. we are mostly a content distributor which has an online travel below. >> how key are partnerships for your business? you recently did a partnership and could share via facebook but do you have any official partnerships? >> we're honored to be one of the companies chosen for the incubator program. it's terrific because they have some of the best travel knowledge in the world. we expect fantastic stories from them. >> do you see future partnerships going forward with other companies? >> yes, sure absolutely. >> thank you very much. that's a real example of the innovation we're seeing taking place this year at the world
travel and tourism council. a lot of smart ups getting into the game for the online travel agency booking. seema back to you. >> good stuff. thank you so much. >> as we have been hear it's one of the big talking points at the world's travel and tourism council show in madrid. a host of ceos have been telling us how lower oil prices have been effecting it and how they're edging that. >> we have about 50% of the next 18 months hedged and we do that whether we think the price is is high today or low today. overtime we'll pay the market price. we'll be slow to see that when price goes down and slow to see it when it goes up. >> most of europe's headlines are hedged but as oil prices fall our hedge prices fall they expect to pass that on in the form of significantly lower air fares for customers. >> although lowering the cost. lowering the yield. so 2008 if you remember full price went up.
make good profit. 2009, went down it's crisis. we make good profit. >> all right. let's switch focus to ipos. etsy pricing at $16 a share. the top end of the range. it raised $267 million valuing the online crafts marketplace at $1.8 billion. now unlike other ipos they're setting aside 5% of its shares for individual investors including sellers on the site. it will trade on the nasdaq today. to learn more about the company, julia filed this report. >> etsy isn't just another e-commerce website. the 10-year-old brook lib based company wants to reheimagine commerce. it gives a platform and tools to connect with buyers. selling a handmade felt fox and
cinderella dress. they charge 20 cents to list an item for four months. if it sales the company takes a 3.5% cut. they also charge for placement in search results for payment processing and shipping labels. >> these guys are focused on a niche that is growing very nicely. it should be a lull bit expandable. the reason their value crew wagsation is not quite as high is it is a smaller company but i like the growth of the company. >> etse is the biggest ever ipo of a certification for companies that meet certain social and environmental standings. etse says it's to change the way the global economy works by empowering entrepreneurs. the company also composts food wastes at local community farms, offers employees used bikes and maintenance and uses reclaimed office furniture and it's expanding it's community oriented approach to its public
offering. setting aside 5% for its vendors and another 10% of shares marketed to other small investors. >> i have no problem with a company that has a social mission as long as while they're being social they're generating cash flow which this company is. >> the question is whether inversus tos will think that being a good business is good for business. etsy grew it's revenue 56% to $196 million but it's net loss widened to more than $15 million from a loss of $800,000 the prior year. as the company invests in marketing. >> all right. etse getting set to go public today on the nasdaq. wilfred, you know those cute antique shops that you visit at the beach or when you're at the country, those stores that have little knickknacks, homemade soap this is the online version of that. >> exactly. we were talking about it yesterday and i get it a little bit but as it gets bigger i don't see how they can really
defend their market share that effectively. this is a pretty steep valuation. i want to bring you us back to the valuations in this area overall. this was a point on squawk box earlier today, 64 times earnings. he was likening these much like 1999 and you have the nasdaq crossing 5,000. it's worth taking a step back when you see more of these types of companies getting rich evaluations. >> they're not profitable yet but growing it's customer base which is what wall street is focused on right now but at some point investors want to see profitability or a path toward profitability. that will be the question and the other question is can they scale and maintain their identity as this online marketplace for crafts and goods. >> absolutely. if you want to know more about etsy the ceo will be on squawk of the street at 10:00 a.m.
eastern time. one to make sure you catch. etse isn't the only ipo on today'sal today's calendar. virtu planned to go public last year but pulled the ipo. >> now, if you could ask russian president vladimir putin one question, what would it be? we'll cross live to the annual call in show. that's coming up 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. 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
all of the problems of the world could be settled easily if men were only willing to think. all of the problems of the world all of the inefficiencies could be settled easily all of the opportunities could be realized if we were only willing to see patterns in data we could never see before. to design a machine that thinks like
we do. track epidemics. predict breakdowns before they occur. to become smarter every day. if men women machines were only willing to think. >> welcome everyone. you're watching worldwide exchange. >> here are your headlines from around the world. >> u.s. markets pause for breath after hitting a three week high. this as investors eye another round of bank earnings with goldman sachs and citi group reporting before the bell. >> richmond fed president said soft data shouldn't deyou are the the central bank from lift off. >> tuning into netflix. this morning it's aggressive expansion pays off. >> etsy counts down to its market debut. the online arts and crafts
marketplace prices it's ipo at $16 a share. the top end of the range. >> so seema we're at the start of u.s. earnings season. we had a volatile couple of months so it's important that this earnings season justified valuations. so far, so good. >> we'll get a better sense of the earnings sector. next week we have 150 companies then. we will really get a sense of how ceos are fairing given the dramatic drop in the price of oil. >> will the energy sector weigh things down across the board. >> financials are a source of leadership on the market.
jp morgan trading at a high among others. that's one of the reasons the s&p 500 striking distance of the all time high. >> focus will turn to goldman sachs and citi group today. >> let's look ahead of the key reports. dow down about 10 points. mixed trading day interestingly enough. the tech heavy index closed at 5,011. it's up about 5 points in premarket trade. much of that having to do with netflix and after reporting what wall street is saying is a good report. the equity market coming off the multiyear highs we have been trading at the past couple of days. just wanted to point out the losses. the xetra dax down about 87 points. cac 40 which we're also seeing record low yields. down about 12 points and in the u.k. a loss of just about five points.
wilfred. >> yeah, indeed. let's also have a look at rates as well. >> before i toss it to you let's take a look at currencies. we have been looking at the u. s. dollar trading up by 25% over the past one year. in today's trading action the ecb policy meeting yesterday rates will be left unchanged. pledging to fulfill it's 1 trillion euro bond buying program. 106 right now. a lot of focus is on the japanese marks and the volatility we have been seeing the past couple of days. the u.s. dollar slightly higher against the japanese yen. >> let's have a look at bonds. starting with the greek yield curves because over the last week we've had elevated fears once again of a possible grexit. we have a very important meeting coming up and at the moment it's once again on the cards. you can see elevated bond yields. the ten year 12.8%.
the range of the ten year has been more between 9 and 11%. now that we're touching 13% is a good indicator of where the fear gauge is over greece. remains inverted the yield curve and particularly elevated at the short-term at the moment. the opposite is true of the rest of the european bond market. the french five year has gone negative for the first time ever. the ten year is around .35% today. the german ten year below .1% astonishing low yields. there's no plan to taper the bond buying program at the moment. that pushed it below the .1 level. u. s. the only major central bank talking about potential tightening at the moment is relative to europe. 1.9% today although expectations being pushed back from june. perhaps in september. but a possible rate rise to date. oil rallied over the last couple
of weeks. it continued to do so this week but it does that in volatile fashion. a strong bounce yesterday offset by a decline today highlighting the volatility. wti at 55.97. last night it did close at its highest level for 2015. brent at 62.64. see he ma. >> wilfred, the russian president is holding his annual phone in. russians were invited to submit questions to vladimir putin by he e-mail text or social media. of course we have been looking for your thoughts on this topic. what question would you put to vladimir putin and we have been getting your responses throughout the morning. david asked when will he start taking his shirt off? if you wanted to join in on the conversation here at worldwide exchange get in touch with us. wilfred you're coming up with a couple of questions. if you had the opportunity to sit down with him and ask him your questions, specifically around foreign policy. >> i wondered if he wished he
lived in a different era. an era with less international discussion and more brute force. he would have thrived a couple of centuries ago. i would be interested to hear what his view is on that and my top question is which international leader today does he respect most? i don't think it will be an ally. he'd probably choose an enemy because he likes fighting force with force. >> i think he would pick himself. he has a big ego and probably thinks he's been doing a fine job as the president of russia. i also think on the economic front what else is needed to combat high inflation. >> that's such a boring question. >> that's not boring. that's very important and he needs to answer that. i hope someone asks him a question about inflation and will you take the recent drop in oil prices as a reason to diversify your economy going forward. because it's clearly not the answer. we've seen the volatility in the
rouble and slow down in the economy. diversify your economy. >> will it take a strike from isis on the cremlin before russia joins the fight against terror. join the conversation on the worldwide exchange. e-mail us at cnbc.com or get in touch by twitter at cnbcwex. our personal handles have been on the screen as well. now let's move on and take a look at some of today's other top stories. netflix shares hit a record high in after hours trade on wednesday. the streaming video service added more subscribers than expected in the first quarter. netflix benefitted from its aggressive international expansion and aims to be in japan later this year. investors didn't seem to care about that. shares rising 12% in after hours. as you can see up some 14% in today's trade in frankfurt.
>> a lot of anlalysts upgrading on the back of that report. >> jp morgan upgrading netflix. up to 509. quite the upgrade for netflix from jp morgan. $625 is their price target. it's not just jp morgan piper jaffray to $487 and credit suisse to $461. >> this stuff has a huge reaction to its warning. >> it gets me worried when people are so bullish on a stock are they missing something and is that positivity already priced into the stock. >> the real shame is we haven't got another series of house of cards for at least 12 months. the last one came out and i finished it in a couple of days. >> can i ask you to give us your
impression of mr. underwood. >> even the finest furniture needs a good poll lishish every once in awhile. >> i can't believe you put me on the spot. >> we're being told to move on by our directors. now sandisk missed forecasts as it fell on restructuring charges. it's projecting it's first full year revenue decline as it struggles to meet demand. it plans to cut about 5% of its nonfactory jobs to reduce costs. shares fell about 6% in after hours. >> goldman sachs reports first quarter results at 7:40 a.m. eastern. forecasted to earn $4.26 a share on revenue of 9.35 billion. they will also focus on the trading business after jp morgan reported a 9% jump in trading revenue. >> citi group reports q-1
numbers at 8:00 a.m. eastern. forecast to earn $1.38 a share on revenue of $19.8 billion. last month citi's cfo warned trading revenue would be down and the bank suffered a modest loss from swings in the swiss frank. well the market is hopeful but the results will be good. citi group in the green. goldman up the best part of 1%. >> the debate over whether the fed should raise rates in june continues and this time around it's jeff lacker that says a good argument can be made for raising rates at the fed's june meeting. lacker says even though there's signs economic activity has softened there's still a strong case rates should move up from the near zero levels by the june meeting. i guess he's not even looking at the disappointing data out over the past one month. >> meanwhile, new york fed senior vp says the central bank is confident it can smoothly lift rates when the time comes
but he says the fed is ready to make changes on the fly given the uncertainty over how investors may react. i have to say i think we hear from mario draghi too often. it's absurd from how often we hear from the feds. >> a lot of noise coming from the fed and various officials. even more importantly now ahead of the potential rate hike. that's why we're paying so much more attention to it. >> we have to ignore what they have to say and look at the data. that's the only thing we can get a good handle on. >> they continue to be data dependent. that would make sense. ignore what the fed officials say and focus on the woman at the top, janet yellen. she knows what's going to happen. >> let's bring in the global strategist. what is your expectation for the first rate hike? >> we had seen lacker last week in my hometown making the case for the june rate hike. we think september or december.
data dependent. we'll have to see how the data comes in. our expectations is data will improve and a lot of this was tide tied to the weather. >> overnight we heard from the imf that increased concerns that when we do get the rate hike that there's the risk of another big taper tantrum. is that your view? do you think when rates do two up we'll see a big correction in he equity markets? >> no there's still strong he demand coming from europe. it should keep the long end subdued so we don't see it is as big an issue in 2012. >> and of course will you say this is the bull market until proven otherwise. i could think of a couple of other reasons why we're not going to continue to be in the bull market. you take a look at higher evaluations. the deflation environment we're living in but arguably japan as well as the u.s. what do you think will keep the bull market going?
>> we see rates subdued still. you can handle a much higher level of valuation. also look at the technicals and the market. the tape remains strong. we need to see a lot more before we get more cautious in our outlook. >> are higher valuations tolerated in a low rate environment? if so why. >> we find that historically. you typically see bull markets top out somewhere in the mid 20s and we're nowhere near that yet. so still room for valuations to move higher. >> you say in your notes, will that indicators will warn us in a bear market is developing. what are those key indicators you look at and did they warn you correctly in 2008? >> we were kwietd defensive going into the financial crisis. we saw broad deterioration so less stocks participating in an upside move. we're not seeing that right now so we're looking at is there still broad participation in the market? we're seeing that so we need to
see less stocks participating. >> let's talk about the oil market as well. you see quite a few similarities between the current situation today and back in 1986. >> yeah both were supply driven declines in crude. we look at that as our guide as to how the current collapse in crude might play out. we think maybe a bottom is in place but we don't see much in the way of upside for crude oil. probably fairly priced at this point. just trading through the remainder of the year. >> qe sent u.s. stocks higher over the past couple of years. how long can qe here in europe send stocks to the upside? that's the big question. we've already seen a rally in european stocks. >> that makes this a little different that you do have the fed tiptoeing toward the exit but you have a boj and ecb committed to providing more liquidity to the margaret.
it's -- to the market. you have an ecb and boj with quite a bit of liquidity. >> in your note you say europe is losing it's post crisis momentum and will fail to revival nominal growth in europe. >> yeah we're cautious. we think there's an inflationary trap that will remain for a period of time. >> we always like a contraryian view. >> let's bring you flashes from the russian president vladimir putin. he says i see nothing catastrophic in capital outflows in 2014. he also says he'll expect western sanctions will be lifted. this of course relating to the annual national call in show which has received we're told a record of number of questions
this year. i hope he's looking at the #s ask vlad on twitter as well. but thus far he sees nothing catastrophic in capital outflows recorded in 2014. >> the imf and world bank spring meetings are in washington this weekend. ahead of that sarah speaks to jim yong kim today at 9:45 eastern time and sits down at 10:00 a.m. eastern with fed vice president stanley fischer and speaks with the eu competition commissioner a day after she filed antitrust charges against google. lots to look forward to.
all of the problems of the world could be settled easily if men were only willing to think. all of the problems of the world all of the inefficiencies could be settled easily all of the opportunities could be realized if we were only willing to see patterns in data we could never see before. to design a machine that thinks like we do. track epidemics. predict breakdowns before they occur. to become smarter every day. if men women machines were only willing to think.
etse prices at $16 a share. the top end of the expected raise. it ranged $267 million valuing them at 1.8 billion. unlike other ipos they're setting aside about 5% of shares for individual investors including sellers on the site. chad dikerson will be on squawk on the street at 10:00 a.m. eastern time. >> virtu financial pricing it's shares at $19. the upper end of the range. that values them at $2.6 billion. virtu planned to go public but
pulled the ipo amid the fire storm called by the michael lewis book flash boys. >> social media took the travel industry storm. whether it's consumers attracting new customers themselves. how much bigger of a role can it play? let's get out to nancy in madrid at the world travel and tourism council summit. nancy over to you. >> thank you. the climate is excellent at the moment so industry leaders are looking forward to how to innovate and adapt technologies and incorporate social media in their business. thank you for being here. >> thanks for having he me. >> you have been referred to as a social media guru. do you think the travel sector has been too slow? >> i think every sector that is featured on this network is too slow to adapt to what's going on right now. we're living through the biggest shift of marketing we've ever seen and the travel industry is
another sector that hasn't made the move quick enough. >> where do you see opportunities specifically in this sector? >> the lack of understanding of how good of an ad product facebook actually is. when you think of the travel sector seo and sem were such a big backbone facebook dark posts the capabilities are underestimated by this sector. >> you were an early investor in twitter and uber. you haven't had an investment in the travel industry yet. you didn't invest in airbnb. do you regret that decision? >> of course. an incredible company and one of the unicorns of this generation. >> do you expect to see it sometime soon. >> wrote think it will be this a year thing but i think next year, early the following year. >> let's shift to uber of
course. do you think we could see an uber ipo any time soon. a 40 billion dollars market cap mean thes have to go there next. i don't think it's this year but late next year wouldn't surprised me. >> uber continues to face regulatory barriers. how concerned are you about that as an investor. >> i'm not. i grew up in the liquor business. regulation is something i'm comfortable with. travis navigated the harder part of that. they have the momentum and leverage to be able to navigate. >> he's talking about potential opportunities for travel and tourism in the entrepreneur start up sector. >> thank you so much. coming up chinese smartphone maker releasing it's phone and will it be a game changer and how will it stack up against the iphone? we'll discuss that 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. we enacted the lowest corporate tax rate since 1968.
welcome back. let's talk tech. chinese mobile manufacturer huawei unveiled it's new flag ship phone yesterday with the company boasting of the handset's professional camera features. i spoke to richard, ceo of the consumer business group at the launch yesterday here in london where he told me about the company's ambitions to target the high end phone market in western markets.
>> more market share from the industry. and also we have increase our market share on high end. not just middle tier. >> and on that note you know trying to expand into the western world specifically where the iphone and the samsung galaxy phone had done quite well how do you do that if you don't have the partnerships with mobile carriers in the u.s. like at&t. >> consumers sometimes get tired of the phones always like that. peel they need new selection. and huawei we can bring them for competitive, more beautiful, more premium products and price. that's the differencie.
>> and welcome everyone. if you're just tuning in thank you for joining us here on worldwide exchange. there were all the worries about the earnings season. the negative impact of the stronger dollar but we're looking at the stock market in striking distance of its all time high. premarket trade right now suggesting a mixed open. the s&p 500 down just less than 1 point. dow down about 8 and the nasdaq which did close above 5,000 yesterday indicating an open by around 6 points. what does this mean for european markets? the focus has been on the equity market where we have been seeing stocks slightly lower today coming off highs. we want to point your attention to the xetra dax. this has been the out performer this year. shiethly lower by around 72 points. the cac 40 at 5,250.
oil commodities still a big part of the story. yesterday we should point out energy stocks moving to the upside because we did see a big move in oil prices to the upside. wti crude in today's trade we're lower so that volatility in oil continues in the oil price. wti crude down about 4 points. what about the international gauge for oil? brent crude trading at $62.93. down about .6%. want to take a look at gold. given the volatility in equity markets. fear over a potential rate hike has been sending some investors into safe haven assets. we have been talking about the move in bonds. up about 3 on the day.
>> lest bring more flashes from putin. he is taking place in the annual national call in show where there's a record number of questions posed to him. he said he doesn't expect western sanctions will be lifted. the russian economy may return to growth in sooner than two years and says we're doing everything to fulfill the agreement. he says russia acted in an optimal way in addressing the economy crisis and he says the peak of the problems have passed and the rouble is now forming. that's an annual event in russia. now etsy prices it's ipo. the trend of the expected range. the offering raised $267 million
valuing the online crafts marketplace at 1.8 billion. unlike many ipos they're setting aside 5% of shares for individual investors. etsy ceo will be on squawk on the street after shares begin trading at 10:00 a.m. eastern time. >> etsy is not the only ipo on today's calendar. virtu financial. that values the high speed trading firm at $2.6 billion. they had planned to go public last year but pulled it's ipo amid the fire storm caused by the michael lewis book flash boys. let's talk more about the landscape. thank you for getting up early with us. >> thank you. >> when i look back at go pro, shake shack, do you many times see companies that have a strong cut following perform well just because they're popular?
because that's what seems to be happening with etse and looking at the demand we saw yesterday pricing at the upper end of its range. >> yes in addition to it being an interesting company there's a strong cut following because they have such loyal customers. mostly women actually. there's data that says that almost half of the buyers and sellers in 2011 are almost active buyers and sellers in 2013. >> looking at the financials sales jump about 56% last year. the big question is when looking at etsy can it scale while maintaining it's identity as this platform where you can find unique customized goods. >> that's the key question i think all investors are looking at. the existing business is very good. it makes sense to spend a lot of money on marketing if you have this loyal customer base but can
this company scale and not sell out to a more commercial operation when etsy is about unique goods, hand crafted and vintage. so can they do that? that's going to be a question answered over the future quarters when the company reports and shows us how they can do that. >> let's talk about virtu financial. they delayed the ipo for a year. was that purely due to the flash boy's book? >> it certainly was. obviously that book caused regulators to look at our market. nothing much has happened but obviously investors with virtu they love the company an it's cash flow but regulation is an issue for the company and if they change the landscape it has to adapt. we think the company is able to adapt but it would have been harder for investors -- too much uncertainty caused the company to wait. so that book did have it's impact. >> let's talk about the ipo
activity pick up we've seen recently and more generally. we're still below last year's levels. particularly in the u.s. what is the reason for that? >> a couple of reasons. one is the energy sector is not as active this year and some of the technology ipos have not performed very well and etsy is going to be important for technology ipos and for that reason there's a lot of capital that's been able to have these -- able to help these companies survive without actually having to go public. so they have been able to wait. so i think that's the main reason -- it's not easy to go public. and for that reason the returns to investors of the ones that have gotten out the door have
been pretty good. you may be able to see from our ipo index. the returns have been good. investors that have held the ones already outstanding have done well. setting the stage for what we're seeing right now. >> another trend we're seeing is in terms of number of ipos more in europe than here in the u.s. something we haven't seen in quite sometime. do you see he this trend continuing? >> we do see this trend continuing. i think that europe has been on a very slow pace for ipos. it does help that the stock markets are improving in europe and we expect to see a continuation of europe taking it's rightful place having a lot of ipo activity we've seen this year. we expect that to continue. that's true of asia as well. >> we'll leave it there. thank you for joining us on worldwide exchange. that's kathleen smith. ipo manager at renaissance. now madrid plays host to the biggest names in travel and tourism this week as the wttc
global summit returns to europe for the first time in seven years. nancy is there for us in madrid. over to unanimous sy. >> thank you seema. we've been talking about the role travel and tourism plays in big business but also plays a crucial value in helping to develop parts of the world that doesn't have the advantage of other places we talk about normally. now i'm joined by petra. thank you for being here. you were here at the council talking specifically about the role that travel and tour riffle has in rebuilding parts of the world destroyed by natural disasters. tell us more about that. >> travel and tourism industry can a powerful engine to not just recovery but long-term recovery and they have been already doing it through job creations. they embrace communities helping to rebuild homes and schools and i think one thing to keep in mind is very important when you rebuild you have to rebuild in
disaster proof way because of reoccurring natural disasters and increase in natural disasters. you have to rebuild in a smart way but also the other way i think travel and tourism industry has ability to help with the more long-term recovery and sustained response is to use their platform and ability to communicate their trusted clients and customers to share the importance of a sustained response because when you -- it's not only about first response. it's about sustained response. when natural disaster happened what we see, first responders they come and after they leave the support leaves as well and we find children without a school four or six years later waiting for this school to be built and in the first few weeks and the first few days and weeks when natural disaster happens if there is that education about you need to help in the first response and allocate a percentage for rebuilding of homes, schools, hospitals, that
can help the communities to get back on their legs faster and when the community go back fast the whole economy goes back faster. >> and you of course famously lived through the disaster the 2004 tsunami. following that experience you were motivated to start happy hearts. >> wres. >> can you give us an idea of how crucial your partnerships are to the success of happy hearts. >> they're crucial. we call them smart partnerships. they're the same values and same goals. one of them examples from tourism industry is the united airlines that get us where we need to be able to rebuild schools in nine countries around the world. we go to build one school in thailand and we are opening 114 school in a little over 8 years. so united is one of the partners and it's all about the strength in the partnership and we can really -- we've seen an incredible result just by partnering with like minded
organizations. >> thank you very much. that's petra nemcova talking about the real benefits that travel and tourism provide and philantropy around the world. >> thank you so much. still to come netflix gets a big boost from its rapid expansion outside the u.s. shares soar after the video streaming service reports strong numbers of new subscribers. >> and later, the ceos of the latest drug makers are meeting in washington for the annual summit. we have an interview with ian read on power lunch. that's followed 20 minutes later by another exclusive interview with ken frazier.
. >> netflix shares hit a record high after hours as they signed a record number of new customers to binge watch shows like house of cards and orange is the new black. let's get the latest from landon standing by at hq. >> netflix reporting mixed first quarter results after the closing bell on wednesday. profit fell to 38 cents a share hurt by higher spending and the strong dollar excluding items it earned 77% above forecasts.
revenue was in line with estimates but investors are shrugging that off as they added 4.9 million new subscribers bringing the total to 62.3 million worldwide. netflixs expects to sign up 3 million customers this quarter. they have been aggressively expanding outside the u.s. they're in 50 international markets launching in australia and new zealand in the first quarter. it plans today beau in japan this year. the ceo says fresh contents such as the third season of house of cards and shows helped lure in new customers. those subscribers spend a lot of time glued to their tvs. the company says they streamed a record 10 billion hours of shows and movies in the quarter. they have tried to fend off competition from the likes of hbo, amazon prime and hulu as well as offerings from cable and satellite providers.
they continue to build the line-up of original content and will be able to add and gain more customers. they plan to be in 200 countries for next year. it's working on plans for a modest service in china. chinese consumers are used to watching entertainment for free. that's either supported by ads or is illegally pirated. they also plan to ask the board to approve a stock split. they're up higher again today in europe. back over to you. >> landon thank you very much. >> we want to bring your attention to black rock earnings. they just hit the tape. q-1 gap revenue of $2.72 billion versus $2.67 billion last year and net income $822 million versus $756 million it reports last year. they're also seeing a 13% increase in quarterly cash dividend to 218 per share. it says active net in flows of $32 billion and index net inflows of $38 billion in the
first quarter. >> aum of $4.8 trillion. amazing. >> pretty amazing. >> all right. we'll keep you up to date on blackrock and the price kaction. >> let's remind you of the headlines at this hour. that's the call from the rich richmond fed president. the streaming video service adds more subscribers than expected and etsy ready for the market debut. we'll be back in a couple of minutes. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu.
$70.4 billion for the first quarter of 2015 representing a 6.5% annualized organic growth. you can see the stock is moving. it's up about .8%. eps of $4.89d. net profit of 822 murder in the second degree. >> that's the share price performance of yesterday of course before the close. we overall as you say exactly earnings 822 million. certainly in terms of a snapshot from last year with quarterly profit up 8.7%. these look on the surface like a descent set of numbers. let's move on and look at european marks. they're in the red today across the board. not too negative. the ftse 100 down about 10 basis points. germany down .8%. for the week we're looking at negative returns in europe. not massively negative but slightly negative. that follows two very strong weeks of returns in european equities. >> i would say arguably the attention being put on the
european bond market. we're once again seeing record low yields. record low yields in germany and in france. that continues to be the big story. the rally in bonds pushing them lower. >> german ten year below .1%. french yield below .35. both at record lows after draghi don firm confirmed there won't be any tapering to the bond buying program now. the exception is the ten year greek yield which is higher elevated. more elevated than normal. it's been between 9 and 11 so the fact that it's at 13 highlights that risks are elevated once again. >> i was talking about the three year greek yield which is also interesting because that yield now at 24%. can you imagine that? a bond that yields 24% and the
greek krau madrama continues. that continues to be the story. >> a quick look at u. s. futures. earnings have been the focus for investors. what will the energy players tell us next week. that's something that investors continue to debate. the nasdaq closing above 5,000. yesterday indicating a higher open around 4 points. now ben bernanke has a new job. the former head chairman will join the hedge fund group as an advisor. he'll meet with investors around the world and offer analysis on global and financial issues. he'll be paid an annual fee and won'10 have a stake in the fund. >> goldman sachs with first quarter results. forecast to be $4.26 a share on revenue of 9.35 billion. citi group reports q-1 numbers at 8:00 a.m. eastern. last month the ceo warned that trading revenue would be down in the mid to high single digits.
>> they're both up so positive results are expected. let's talk about this more with christopher who is the director of the rating agency. jp morgan gave investors a reason to dream big about goldman's trading activity although bank of america tempered that enthusiasm. where do you sit? a good trading performance from goldman sachs? >> it's not like the banking side of the business. it's really a crap shoot every quarter. so you get guidance and it's nice to hear that of course but there's no real basis for predicting predicting what trading is going
to do. there's so many variables it's an entirely speculative situation. >> the potential rate hike in the u.s. is supposed to be seen as a big positive for the banks. which one do you think will benefit the most from the rate hike. >> there's a broad misunderstanding about the benefits of higher rates. from smaller banks that fund themselves off deposit a rising rate environment is benign. big banks are like super tankers. it takes them years to see the benefit of higher rates in their earning assets so as a result i think that rising rates would be a negative in the first couple of quarters for larger banks because if their market liabilities replace immediately then their costs are going to go up but they're not going to see an increase in the earning assets during the same period. >> let's touch on citi. they're in a very different
position to where they were this time last year. >> they are. all the banks are. we have mostly positive results both on revenue and earnings and a blessed lack of surprises from institutions like bank of america. citi's big challenge i think for the ceo and chairman are to tell us why this bank should continue to exist. they have a very valuable payment processing and credit card business. the rest is a mix. the capital markets business foreign exchange is strong but is that really enough to support it going forward? it's an on going concern. i don't think they answered that question. >> thank you so much for joining us. that was the senior managing director. that's all we have time for today on worldwide exchange. thank you for watching. i'm wilfred frost. >> i'm seema mody. next up is walk box. have a fantastic day.
>> the former fed chief is going to work with a hedge fund. streaming success, netflix shares popping after the company adds more subscribers than expected and the world's highest earning super model retiring from the run way. giselle is calling it quits after a 20 year career. it's thursday april 16th 2016 and squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. ♪
>> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. we have black rock ceo larry fink. his asset managing company posting quarterly results this morning. $4.80 a share versus the $4.52 the street was looking for. we'll get his take on the markets and much more. he happens to know who sings the song. i am impressed. i didn't know. >> you wanted a record -- >> that was not -- >> no yes i did. >> record label. >> record label. >> i did own it and our first artist we signed up was maroon 5. >> wow. >> i didn't know that about you. >> this is george ezra though. >> okay. >> i like it. >> this with you a web -- this guy released this