tv Worldwide Exchange CNBC April 17, 2015 4:00am-6:01am EDT
it's friday a particularly warm welcome to worldwide exchange. i'm wilfred frost. >> these are your headlines from around the world. >> staying firm on greece. the german finance minister keeps the pressure on athens to reform in return for funds but he says he won't be compromised. >> asian markets pull back with a mixed session in europe so far. this as two fed officials say the central bank should wait to raise rates. >> syngenta weighs ins.
>> accor leads the french market as they see strong demand in the first quarter but cautious on brazil and it's domestic market. so welcome to the show. we have been getting news that bloomberg terminals have been hit by a global outage. it's under investigation. we'll continue to bring you updates on the situation as soon as we know more. of course this does of course effect people's ability to discover prices in most across europe and the u.s. >> it's a big day for price discovery. remember what happened yesterday with the greek yields. we saw 350 basis points surge. he equities didn't move much but bloomberg is perfect for price discovery in the bond markets as well as the credit markets.
also bund yields at 7.5 basis points so obviously that's where people want to be looking at in terms of the data. >> absolutely. michael houston there saying it could well effect trading volumes volumes. you're going to have liquidity taken out of the market. no doubt about that. for now stay with us and we'll bring you as much as we can. let's look in on the greek yields elevated once again yesterday. fears of a grexit coming back in recent days. the ten year has been more like 9 to 11% so the fact that we're looking at 12.7% highlighting that elevated level of fear toward greece and of course we remain an inverted yield curve on the greek monday market.
speaking he struck a depined tone. >> we will compromise we will compromise we will come promizepromise to come to a speedy agreement but we will not be compromised. >> wolfgang is not backing down. >> i would never change my job with him. i have a much better position. much more comfortable. but as long as they are telling the problem is today i have to move in ways that greek economy is becoming a little bit more
effect effective. the greek economy can deliver what greek people want. >> this comes as the head of the imf revealed she refused a request to he delay a loan repayment. joining us is mark farber. thank you for joining us this morning. >> it's my pleasure. thank you. >> the chances of a grexit is that above 50%? >> that depends from which side you look at it. i think it's not so much a economic issue as political issue. europe and in particular nato and the u.s. do not want greece to leave the eu because if they leave the eu there's other people going to knock on greece door like the russians the chinese maybe, and so it's a geo
political game of chessing being paid. greece is bankrupt. we better face the reality and not kick the can down the road. greece should default. >> but if they default then they will leave the euro zone surely. >> yes. and what is the damage if they leave the eu? they can still use the euro dollar -- the euro as a currency and have a parallel currency inside their own country. >> are you not worried about the contagion effects we could see stemming from a greek default and exit. >> yeah maybe there will be contagion, but, look at the end, we have democracies in europe. if the majority of italians do not want to be part of the eu. let them vote so. if the majority of spaniards
don't want to be part of the eu then let them be free. this is my argument. but in general, i don't think that people want to leave the eu because then they lose their pension hes in euros. >> that's your argument. what's your expectation on greece. do you think this is a likely outcome? >> i think the ecb and european banks will have to take huge losses on their loans to greece and on the bond purchases they have made. i think greece is in a very strong negotiating position. if they don't want to pay. what do you want to do? hang them up? >> do you think it was a mistake. >> huge mistake. >> why do you think it was a mistake? >> first of all i believe that central banks, as you know in the u.s. the economy is not
doing particularly well. despite all the stimulus and zero interest rates for now six years in a row row and i believe central bank assets known to be bond have encouraged governments not to cut down on government spending but to continue to live essentially in extravagant spending. >> but my point was do you think it was a mistake with regards to greece because european equity markets and bond markets are propped up artificially by ecb's qe. that means we worry less about any contagion effects about greece. >> there's a disconnect between real economic activity and financial markets. in the u.s. the s&p is at a record high and globally we had the huge bull market in stocks. in china the market is up 80%
over the last six months so the liquidity injections of central banks has been very successful at boosting equity prices. that's no question and bond yields are at the record low whereby they will bring about a new set of problems for the pension funds for the insurance industry. >> we'll talk much more about that but also the asian markets. we'll get your take on that. mark farber. speaking of markets, how are we looking this morning, will? >> well carolyn it was a lackluster lend for what's been a disappointing week for equities. a decline of .2%. germany was up .7%. one of the reasons for this lackluster week greece elevated fears of course. we had a few disappointing company earnings but overall we've had a strong couple of
weeks leading into this week. interesting to see germany down again. only fractionally today. the ftse 100 is up fractionally but markets are either just above or below flat today ending a slightly disappointing week. let's have a look at rates. a particularly volatile week for the euro heading into the ecb meeting. it was as low as 1052 this week. it's finishing at 1079. that's more on the u.s. dollar side than euro side. disappointing this week. the u.s. dollar just give up ground against most currencies in the week. so the euro shy of 108. the aussie dollar has too been soft during the course of the week because of weak chinese data at the start and sterling bouncing back today. that was weak earlier after
inflation came in. pushing back rate rise expectations in the u.k. relative to where they are in the u.s. let's look at commodities. oil has recovered over the last couple of weeks but always with pretty big moves up and down highlighting the level of volatility highlighting that level or lack of level of conviction that we can have that this is a meaningful rally in the oil price. wti which did close on wednesday night at the highest level for 2015 is sitting relatively pretty at 56.3 compared to earlier in the year and brent at 63.7. gold hovering around that 1200 level as it has been for the last week or so. carolyn back to you. >> meanwhile, it was a session in asia with markets off 7 year highs. on the week the rally did continue. take a look at the shanghai this week. up by 6.3%. the nikkei off by 1.3% but it was the hang seng that was the out performer last week raising by almost 7% this week. still higher but less so only up
by 1.4%. let's get back to mark farber editor and publisher of the boom, doom gloom report. you touched on asia before. do you think the chinese he equity markets is an accident waiting to happen? >> well, yes and no. every equity market is an accident waiting to happen because one day the bull market is over and then it's not going to be just a 5% correction but i'd like to say this about china. first of all it's a huge country. people don't realize, 1.3 billion people suddenly wake up and want to buy stocks and there's a lot of new accounts being opened. the market has been weak since 2007 and has under performed the u.s. by something like 80% over that period of time. so the chinese stocks became relatively inexpensive as of july of last year. then the asian fund managers and
global managers looked around and they saw the philippines is up thailand is up india by then rallied already 30% and the only market that was essentially depressed was china and to some extent hong kong. so money started to flow in although everybody knew that the economy was slowing down. my view was, yes, the economy -- you have to believe in father christmas to believe that gdp in china grew by 7% this year. >> what is it really? >> the true growth is maximum 5%. i would say between 3 and 4. >> now the problem with china and the rise in the equity markets is the fact that so far it's really just predicated on stimulus. the problem is we had some stimulus and it's not showing through in the economy. here in the euro zone we had stimulus and it is showing through in the economy. so it's not going to help.
>> i agree but in europe it's showing through after several years of very depressed economic activity. in china we had, since he essentially 2000 the economic boom and it was interrupted in 2008 and 2009 briefly but then it bounced back very strongly driven by credit. now the credit injections will not have an impact on real economic activity but they'll have the value on the rmp and equity markets because the money will flow somewhere. it won't flow into the housing market because that's yesterday's game. home sales are down prices are down, money is down. the money goes into some speculative activity. it doesn't flow into the casinos. it flows into the stock market.
>> let's touch on another major economy in asia. has the stimulus measures there worked? is the outlook better now? >> well depends for what. stocks have gone up. the yen has gone down. real incomes are down because japanese households spend roughly 50% of their food on imported food so that has all become more expensive so economically it hasn't lifted the standards of people but it's lifted the profits of corporations. but i'd like to introduce one thought about japan and this is the following, if someone tells you that the money printing will go on and you're about to invest $10 billion you know the yen is going to go down. where would you rather build
your plans? overseas or in japan? i think the policies are destructive for capital spending in japan and encouraging capital spending outside japan. >> places like southeast asia. >> yeah southeast asia mexico the u. s. in states that are labor friendly. but they're not going to build additional plans and equipment in japan. plus japan, despite of the yen weakness is still relatively expensive. it's not the bargains that vietnam is or parts of china or parts of india. >> mark thank you for now. we'll hit the pause button and come back and talk a bit about the u.s. in a few minutes with mark. editor and publisher of the boom gloom, and doom report. we'll update you on the issue we're reporting earlier. some reports coming through that blool bloomberg terminals are back on. they can't confirm for everyone.
>> still coming up on worldwide exchange, we go fishing. yeah, we go fishing for the next big thing in mobile apps. we'll tell you about a company making a splash with anglers around the world. >> mobile operators with a decline in texting but is there a white night that could save the old fashioned sms? we speak to the ceo. >> and the force is is with disney. the stock pops as it releases it's trailer for the star wars franchise. we hear from the ceo later on in the show.
the u.s. dollar is back off it's recent rally but is still up over 8% this year alone. julia spoke to the deputy and got his take on the stronger green back and lower oil prices. >> our view is that the movement of major currencies we have seen strengthening of the dollar and weakening of euro and japanese yen are consistent with global events and supportive of the global recovery. what they come from is the decline in oil and commodity prices but the economy is stronger in the u.s. and weaker in europe so you have monetary policy makers in europe pushing on the gas and the united states
thinking about tapping the breaks so we see the movements as going in the right directions. we don't see them as creating major imbalances so we see this as a positive development. >> it's time to play the rate hike waiting game. a pair of fed officials said the central bank should consider waiting longer before raising rates. he says the u.s. labor market needs to improve further and inflation shows signs of heading back up to 2% before taking action. that was echoed by atlanta fed president who favors a hike later in the year versus june given the cloudy economic data in recent months. you don't forsee a rate hike in 2015. >> correct. >> if they did would that be a
mistake by the fed? >> no they made so many mistakes it wouldn't be the biggest. the global economy is not strengthening. it is weakening. china is weakening. the u.s. economic statistics recently have been on the weak side. i basically -- i think they should have increased rates a long time ago. i don't think they should have cut it to zero. >> but then they would have killed the recovery mark. >> well that is your view. that is the view of interventionists that there's no substance. but there's no proof this would have been the case. it's an assumption. >> so you think when rates go up the economy should be able to continue on its current path. >> i believe if rates haven't gone down as much as they did, the housing market for instance would have gone down further and become affordable for poor
people like you and me. now the housing market in the u.s. is unaffordable for a large number of people. especially for students who just finished their studies and have large student loans. do you understand? there's two things to consider in economics. affordability. is something affordable and not affordable. the monetary policies have created a lot of unaffordability in the system and it would have been better to create aaffordability. in other words real incomes would go up where as in the last 15 years real incomes have gone down in the u.s. >> so u.s. equities all in all, long or short of them? >> well you know it's dangerous to short when you have money printers in power and professors and academics that
are bound to bankrupt the world. the short side has to be treated stock by stock but i will say the market in the u. s. from valuation point of view and relative to other markets in the world is completely unattractive. european stocks represent much better value and it's not true that europe is slower than in the u.s. in the u.s. you have a slow down. europe you have an improvement in margins. so i think european equities will continue to outperform. they have better outperformed. asian equities will also outperform the u.s. in the last 10 years. >> europe already outperformed. would you be buying them today? >> i'm not saying i would necessarily buy european stocks today. but if you give me a million dollars right now and my choice is to buy french government bonds ten years yielding 0.35%
or spanish government bonds yielding 1.34% or swiss government bonds with a negative yield then i buy the stock market yielding in some countries 3 to 5%. >> what's the biggest bubble out there? do you think in line with many other investors out there that the biggest bond bubble out there is euro zone government debt? >> there's a big bubble in debt period. in financial assets period. but the biggest bubble is the belief at a central bankers know what they do. that is the biggest bubble. the industry bailed them out. when you print money, financial assets go up. your fees go up. your performance fees go up. but as an economist and also benefitted me and you.
we all benefit to financial sector but as an economist and social observer i have to tell you that these policies are a complete disaster and you will see the consequences in the years to come. >> mark let's try and find some bright spots if you can ignore the volatility and take a long-term five year plus view what would be your top pick in the world today? >> well i think the asian markets look quite attractive. there's some value in russian bonds and russian equities. the europeans will one day wake up and see the way the world looked like to someone like bismark who had a much closer relationship to say russia than to the rest of the world. russia is part of europe and the
trade lengths will be established across the u.s. if you put yourself into the chair of mr. putin it would not have been acceptable to have eastern ukraine. not acceptable. the way for the u.s. it wouldn't be acceptable to have russian troops chinese troops on the border with mexico or canada. >> indeed mark we're going to have to say thank you there. we have run out of time. a real pleasure to have you on. mark faber, editor and publisher of the boom, doom and gloom report. >> we hear from one company that says there's still money to be made from the sms market. find out more after this short break. ss? some say buy gold. others say buy soybeans. i say, buy comcast business internet. unlike internet providers that slow down when traffic picks up, you get speed you can rely on. it's a safe bet.
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>> staying firm on greece. they keep the pressure on athens to reform and return for funds but he says he won't be compromised. >> asian markets pull back from a 7 year high with a mixed session in europe. this as two pedestrian officials say the central bank should wait to raise rates. >> syngenta weighs on the smi. >> accor leads the french market as the biggest hotel group sees strong demand in the first
quarter but cautious on brazil and the domestic market. >> we are waiting for u.k.'s february unemployment data. the data is now out. u.k. jobless claim down 20,700 versus a reuters poll of a decline of 29,000. so that job that was lower or less than expected. we are seeing the u.s. earnings up by 1.8% year on year through february and the poll was for 1.7% so that is a slight positive surprise. u.k. average weekly earnings up by 1.7% year on year in the three months through february. what we were looking for is a number of 1.8% so that is maybe
a slight disappointment here. in terms of the overall unemployment rate. >> 5.6%. down by 1% from 5.7%. it's the lowest since 2008 and some way one must say ahead of the election from the peak in 2012 of 8.4% and there's been lots of political posturing as to whether these jobs have gone to the right people but headline figures down from 8.4% in 2012 to 5.6% in february this year. >> not a huge reaction in sterling dollar right now. still 149 by a quarter of 1% on the day. really not a big move but this data is obviously very important as we are looking for any signs of inflation in the u.k. economy and that's why we're watching the average. weekly earnings up by 1.7% year on year through february. all right. let's have a look at european
markets as well. we are a little bit lower for the xetra dax. the cac 40 close to flat line. the ftse 100 is out performing a little bit. prices did rise overnight in part because of the weaker dollar and that seems to be supporting some of the minors but we're seeing a little bit of profit taking after the recent run up to 15 year highs and concerns about greece. >> this was a look at some of the biggest individual stories today in the european stock markets. accor europe's largest hotel group up 1.6% but remains cautious about brazil and france. nestle with a .5% rise in sales. organic sales jump 4.4% beating forecasts but nestle still hopes to complete an 8 billion swiss
frank buy back later in the year. syngenta is up 3%. they reported declining first quarter sales blaming the strong dollar and currency head winds for weaker than expected results. the group cfo expects business to recover in the second quarter. let's look at skf which makes bearings. it's down after the company forecasts flat demand for its products in the second quarter. down sharply. 6%. this comes after q-1 operating profit came in line with estimates. >> we want to show you greek bonds once again and that accelerated when we saw the yield jumping 350 basis points. that was the biggest jump since greece's debt restructuring in 2012. let's have a look at the three year yield. it's 26%. we've seen that inverted yield curve for quite a long time. the greek ten year yield at 12.067%. denying request to delay
repayments for greece. it seems that neither side is budging on these talks. >> absolutely not. continues to have sufficient mixed messages and crucial meetings coming up and yesterday we had talks that the creditors don't plan to release the funds and speaking in washington along side the german finance minister she struck a defiant tone. >> we will compromise we will compromise and we will compromise in order to come to a speedy agreement but we're not going to end up being compromised. >> this comes as head of the imf revealed she refused a request to delay a loan repayment. however he denied that ever happened. earlier this week standard and pores cut greece's debt rating further. we spoke to moritz kraemer about
that move. >> we're seeing very little progress and greece is running out of time. we kanltcan't be sure how much more liquidity there is left but we're talking about a matter of weeks and not months. we're starting to get liquidity from pension funds, et cetera. it's a race against the clock. >> you have given them until the middle of may. if not resolved by then they could have trouble passing this through parliament. we only know they can meet payments up to the end of april and they have $3.8 billion in t-bills and payments to come in the first half of may. incredibly precarious. >> it is. and while it's a matter of time when the government will actually run out of money, it will happen. it will happen in the summer
when there's big redemptions being due to the ecb. something needs to happen. something needs to give. there needs to be an agreement so european partners will be willing to disclose more funds to athens. >> a couple of ipos yesterday. etsy shares more than doubled before settling up 88%. they raised about $270 million and the ipo priced at $16 per share. the top end of the range. meanwhile, party city and virtu financial also made promising debuts yesterday closing up around 20%. etsy nearly joined the ranks of three other ipos that came to market this year and doubled in their first day of trade. that includes shake shack and spark therapeutics. cnbc spoke to the ceo of etsy about the global expansion plans. >> 30% of the sales on etsy are international.
we're focused on a few sets of countries and our strategy is to build marketplaces globally. we're really focused on those countries. >> great work on the etsy ipo. they have done well but i'm war riwary to these stocks. they haven't got any earnings. over here in europe asos does have earnings but on 60 plus price to earnings but overall i don't think tech and the nasdaq is overvalued but there's pockets in these online commerce companies where valuations are steep. >> i think the stories so not so much about the business model although i do agree on some of the aspects but it's about the lack of ipos out there for various reasons because of market volatility and many of of the tech companies can get
better valuations in the private market but it show warehouse there's so many investors out there that still want to buy he i canties even if everyone says get out of used equities they still want to be part of this ipo because there's been a lack of ipos. those coming to the market they're going to be better quality. >> you're right. very few of these have come to the private market but is it not an aspect that worries me it has a cut following for the stocks and that might not be people so financially aware. they haven't got clear earnings yet and i think great play to them and great valuation. but i'm worried about certain sub sectors. >> do you know who was leading the three ipos. which bank? >> goldman sachs. >> goldman sachs.
nice segway. >> indeed. citi suggests the sector turned a corner. goldman's quarterly profits were at the best in four years while investment banking revenue came in at a 2007 high. goldman benefitted from increased trading when the swiss central bank removed it's cap on the frank. >> meanwhile citi group with a 16% jump in profit as legal infa infrastructuring costs dropped off. text messaging or texting is a declining revenue base forand data players continue to grow. 81% of operators citing
decreased sms as their main concern. how can players make money in the sms market. you don't talk so much about the p to p texting. you talk more about the a to p. what is that? >> that's right. so what the operators are talking about here and their concerns in relation to the decline in revenue from text messaging is in relation to person to person texting. so me sending you a message, you sending me a message back. what isn't focused on or looked at by the operators is application to person. so this is where your airline or your bank will send you a notification or even in the case of what's app or google they'll send activation codes using text messaging. >> and your business is able to help the networks monetize that latter type of texting. >> precisely so. what happens at the moment is the networks are already moving this traffic through their
network but there's a loophole today and as a consequence the operators are missing out on a substantial portion of the revenues from that application to person texting so that's the area in which we work with the operators to help them capture that. >> so person to person texting is on a decline as you have already said the likes of what's app doing well. >> absolutely. >> even if you start managing to help them monetize what stock has that been moving? >> to a large extent you have to look at sms as a technology as opposed to an application so when we're talking about sms and p to p declining you're comparing that to what's app and their application of a technology. sms is a technology itself. it's a channel from the operator's point of view and there's multiple ways in which you can apply that and one of them is on the application to person. one of the advantages for users of it is that it is a -- it's a
very robust and very mature technology. so everybody with a mobile device has text messaging on it. you have connectivity to the entire global market and there's going to be uses of what's app in relation to it but it's recognized by the users of it so the enterprises and end users as well. >> how does your company make money? are you profitable? >> we generate our revenue by selling technology and we run professional services around mobile network, core network technology. >> and you're profitable. >> we're being funded at the moment. we look to be profitable over the next two years.
our focus is on the signally layer and mobile network. >> when you see the valuation in the market they're sky high. >> i was so fascinated. i was interested to hear what you're saying. >> is there any incentive for you to even look at the public markets? >> i don't think so. to be honest with you, i agree with the point you were making is that it is -- there is a lack of reality to some of the valuations but that said you know, some people it works for them. for a like that at this moment in time it doesn't make sense. >> pleasure catching up with you. ceo of anam technologies. and you can read more about disruptive technology on our tech transformers special report page with fintech proving popular with investors. head to cnbc.com to check that out. >> still to come u.k. opposition leaders trade barbs
chinese lead asia infrastructure investment bank. david told cnbc why he believes it's a positive step. >> i don't believe we should overblow what this is and what it isn't. they're doing a good thing. they have a high savings country. they have a lot of resources and a lot of interest in investing not just in china but throughout asia and the world. this is an institution that will allow them now with quite a large number of countries that join in to do something necessary in the world and finance infrastructure development. they spent the last 20 years saying one of the greatest needs in the global economy and in particular for developing countries is more infrastructure spending and that requires finance. now it's important that the institution has standards of
governance the world has come to be accustomed to and they heard that message from the many countries that decided to join but we see this as a positive step on their part to try to contribute to infrastructure. >> julia, he said he was committed to supporting the new institution although questions remain about the governments. >> translator: the asian people came up with a forecast stating that in asia when it comes to infrastructural investment there would be about $730 billion on annual basis to be invested. however as you know they do not have the resources to finance this project and this is a gap and it appears that's where we are headed with aib.
however there remains many issue such as the governance and safe guards and these are some of the areas we he need to ensure that aib fulfills and it's not clear how the insty tugs will shape out but i know korea, united kingdom, australia and other partners will be working hard closely to make sure that there are transparency in this institution and aib would become asia infrastructure funding institution that can do its job as it has been chartered and in that regard korea is committed in providing whatever support we can to the institution. >> switching over to u. kfltk. politics there's signs of preelection jitters in the bond market. international investors reduced their holding of gilts by more than 14 billion pounds.
their share of the market is the lowest since the financial crisis. as it continues about which party and parties will form the next governments. interesting that we've seen the reaction in the currency markets and bond holdings but look at the equity markets. two record highs in the space of the last 7 days. >> but the ftse 100 is not a good gauge. >> every time we have a guest on the show that talks about u.k. equities he says sell u.k. equities because of election uncertainty. >> overall i don't think it's lead by. certainly sterling has been selling off but then again also 0% inflation earlier this week relating to expectation of o rate -- rate rises as well. last night operation leaders clashed in the last series of debates. there were heated exchanges between the labor leader and
scott campers national party. he was pressed on the possibility of forming a pact to take power after the election. >> i can help him be bolder to deliver the change that we need because that's what this election is about. for me it's about making scotland's voice heard but secondly it's about delivering real change. not pretend change but real change for people right across this country. don't turn your back on that and let david cameron back into -- >> we have profound differences between us. that's why i'm not going to have a coalition with the snp but i'm never going to put at risk the union of the united kingdom because i care too much about the work people of our country and it would be a disaster for us to start competing against each other. driving down wages. dismantling the basic state pensions and dismantling our country so it's a no i'm afraid. >> joining us now is head of political research. good morning to you. thank you for joining us.
the incumbent government members weren't involved in it. who would you say was the winner? >> i agree with that. there was a different dynamic to the debate two weeks ago. if you look at the instant polls it suggests that probably ed ed milliband was probably seen of doing best. she maybe didn't quite hit heights but she will still be reasonably happy but it's not just about the instant reaction. it's about do any of these have a long-term impact in the race. >> absolutely and interesting as you're saying that some of the flash polls and headlines saying he came off well. i had a different take and that was that milliband seemed to have lowered himself to the second tier. along side the people that can't be prime minister. is that a sense you felt as well? he was separated away from the prime minister who was not
taking part? >> there were different reactions to it. that was one of the risks, that he might be ganged up on by the other leaders and that happened to a certain extent. at the same time it allows him to be different to the others and reinstate the fight against labour and conservatives. they all had ups and downs. he did well talking about immigration and his approach to immigration which might be a bit surprising but he did less well when talking about economy and cuts. labour had a bit of a credibility issue on that target. >> it's interesting what this he election campaign is missing in a way is a game changing moment for either party. for either candidate. we haven't seen any major blunders. we haven't seen any major attacks apart from the usual ones on a daily basis. the debates are not really moving the needle. what could move the needle? >> you're right. that's why it's such an
unpredictable election. if you look at the indicators there, they're pointing in different ways. say for example if we look at the important issues we know the conservatives lead on the economy. and their leader image but labour lead on the party image. you have a large proportion of people around two in five saying they might still change their mind. but it's been pretty deadlocked so far. >> what do you make of the quality of the campaigning overall. what they're saying doesn't add up and it's a debate in my mind to who is lying and who is telling the tuthruth as opposed to who do a agree with? and that's is that a by product that we have seven voices instead of two. >> one of the stories of the debate -- of the election campaign is the rise of the other parties.
the rise of the s&p, the greens and of course perhaps the pig story in 2010 but for most members of the public of course they're not following all the ends and outs of every campaign. they're concentrating on what are the big issues to them. whether that's the nhs or economy or immigration, who they see as a credible leader which party they like. just those key issues and it's quite difficult then to get cut through on that. >> who wins the most seats? >> just too close to call at the moment. >> very good. thank you for joining us. gideon skinner head of political research. >> now this is the story that you like. >> i do. i'm excited about it. >> the force is with disney. shares of the media giant popped about 1% right around the same time as the new star wars trailer appeared thursday afternoon. that's the equivalent of $2 billion in value added to the stock. the 7th movie in the franchise will be out in december.
disney got the rights when it bought lucas film three years ago for $4 billion and this could be the most valuable property once the movie comes out. >> no predictions. star wars films did incredibly well but there hasn't been a film out since 2005. the movie going audience is much larger than it ever was. there's markets today nonexistent in terms of movie going. china being a great example of that. we're confident the film will do well but way too soon to make predictions and probably will not make any in public. >> fans can also expect star wars attractions in disney theme parks. trading higher by 0.4%. yesterday we did see a little bit of a pop. star wars back in 2012 disney shares rallied 132%. wrote think it's down to lucas film.
i think it's frozen. >> it could be some of those things. it's an important topic. we want to hear from you on this. which movie franchise are you most looking forward too. after james bond which movie franchise are you most looking forward to. e-mail us email@example.com. we are about to run out of time but we will debate this in full in the next hour of the show because as you all know james bond by far the most important movie franchise. still to come here on the show goldman sachs and citi bank recording one of the strongest quarters. more on that and so much more after this short break.
u.s. futures point to a lower open as the dow and s&p 500 try to push out a third straight week of gains. this as two fed officials make the case for waiting on rate hikes. >> staying firm on greece. the german finance minister and imf keep the pressure on athens to return and reform for funds. but he he won't be compromised. >> etsy shares nearly double leading a solid day for ipos also delivering for investors.
>> general electric steps up to report earns before the bell just a week after announcing it's major buy back. >> good morning. it is 10:00 a.m. here in london and 5:00 a.m. on the east coast. if jouryou're just waking up thank you for joining us on the show. stocks were higher in the morning but we failed to hold on to those gains. why? i really wonder why. we had three very very successful ipos. yes we had a little bit of fed chatter. we had better than expected earnings from the banking sector. why can't we be pushing higher on the u.s. markets? why is it in europe we're seeing profit taking? >> different reasons in different markets but in the u.s. we're still worried about valuations and earnings have been good particularly a couple of investment banks but less so the commercial banks. if we're really trying to say is
there fundamental strength in the economy i don't think you can draw that from goldman sachs. this is based around volatility and not fundamental moves in the market. in europe as you say, odd that we have seen markets pull back this week when the ecb continued it's bond buying program. that's off the back of two or three weeks previous to this of strong gains. >> meantime, let's check in on the u.s. futures which are pointing to the down side. we are seeing the s&p 500 off just a fraction. the dow jones off by 7.5 points and the nasdaq expected to open lower to the tune of two points. so we're not expecting big moves to the down side. for the week major indices still positive down the s&p on track for a third straight weekly gain. the nasdaq looking at a back to back gain. let's have a look at european markets as well. the cac 40 trending slightly higher. the athens market high by
2-thirds of 1%. but you're not seeing great moves in these european markets. still close to 15 year highs. ftse 100 seeing out performance higher. copper pricing rebounding in this trading session. let's have a look at asian markets and what a week it's been again for the shanghai market. higher by i believe 6%. the hang seng up by 2% this week. 1.4% that is. but really the shanghai and hang seng are the two big markets to watch given that we're hoping for more stimulus. >> i can't believe these markets continue to rally when the data is so poor and they haven't got the same flexibility. we can talk about that in a little bit. let's look at bond markets because this is another massive story once again. week after week we see yields compress further and further in the european markets. the german ten year, 0.074% and
it's extraordinary yields. of course that's all off the back of draghi confirming that the ecb bond buying program continues at pace just yesterday or two days ago. the ten year of course in u.s. telling a different story. 1.86%. yes we expect rate rise this year but probably a little later than we had done when yields were around about 2% a month ago. the u.k. has seen yields down over the last few months. we week we got 0.0%. pushing back rate rise expectations. greek yields remain elevated. 12.76%. commodity prices oil has rebounded over the course of the last few weeks. wti finished on wednesday at its highest level for 2015. we've seen them come off a little bit. for brent 63.3.
>> let's give you a run down of what to watch this tadrading at a. march cpi is out at 8:30 a.m. eastern. they increased modestly last month. right before 10:00 a.m. we get a report on april consumer sentiment which may show americans are feeling a bit more upbeat about the economy and their finances. ge fresh off it's big announcement shed most of ge capital reports earnings before the opening bell. we also hear from honeywell, seagate technology and synchrony. the focus is going to be on the key industrial business now that it's gotten rid of media a long time ago. gotten rid of the capital arm. are those margins in industrials is that really going to hold up and how is it going to be impacted by the slumping oil price? >> absolutely. it's nice that the market can once again start to focus on the
core area which has not been the case for many many years. i though have to say, am still interested in the buy back story because this has been a big area of buy backs. buy backs have spiked across the board. i'm a little critical of them. there's two issues. first one is they're temporary. if a pane is strong and going for it why don't they reinstate a repeating dividend and why isn't it a special dividend rather than a buy back. that's cash in hand rather than a slightly engineering employ which is aimed to increase eps which management bonuses are often based on. >> first of all sometimes they do it to offset the compensation for employees so that's one reason they do it. secondly because they want to crank up the eps but the more worrying part is the fact that they don't know what else to do with the money because they don't see investment opportunities out there. remember that report out over the weekend saying that for 2015
they'll be hitting the highest record ever. that tells you they don't know where to put that money because the economy is slowing. growth is not visible in the u.s. the energy market is slowing down. >> right and as you say march is the third strongest month ever with $257 billion recorded year to date. and i agree if companies were really confident that growth was here to stay they would be reinstating permanent dividends but that fear they take dividends is they don't touch that. still a small magnitude relative to the cash piles. it's a one off boost and if you see a 5% share buy back over market cap you never see a 5% in the share price. >> we're underlining the reason why companies are doing buybacks. the markets still like them. when we got a statement like the one from ge last week. we love it.
shares were up 9% or 10%. >> better than a profit warning. but let's move on from share buy backs. there's been mixed messages from greece about it's willingness to reform and bid to unlock funds from its international creditors. he struck a defiant tone. >> we will compromise, we will compromise and we will compromise. in order to come to a speedy agreement. we're not going to end up being compromised. >> his german counter part showed no signs of backing down. >> today the greek government has challenges. huge challenges. i would never change my job with him. much better position. but today the problem is today's
since i have to move in ways that greek economy is become a little bit more effective that greek economy can deliver increasing part of what greek people want. >> let's take a look at some of today's other top stories. it's time to play a rate hike waiting game. a pair of fed officials said on thursday the central bank should consider waiting longer before starting to raise rates. boston fed president says the u.s. labor market needs to improve further and inflation shows signs of heading back up to 2% before taking action. that was echoed by dennis lockhart who faces a hike given the cloudy economic data in recent months. >> they ensured they have enough cash during a credit crunch. the wall street journal reports the fed had muni debt when it approved the rules last year but
regulators also plan to oppose allowing certain types of highly liquid securities to qualify as a sellable asset. >> american express's first quarter profit rose 6% beating forecasts as they spent and borrowed more. however revenue missed estimates hurt by the strong dollar and the loss of several tie understand. most notably a partnership with costco. they expect 2015 earnings to be flat and lower. shares fell more than 1% in the last hours. >> schlumberger's first quarter profit fell. they're cutting another 11,000 jobs. that brings the total lay offs this year to 20,000 or 15% of the work force as lower oil prices slows drilling activity. the company is also cutting it's capital spending plans this year. revenues fell 9%. rising nearly 3% in after hours
trade and germany higher by .3%. >> the sector finally turned the corner. goldman's quarterly profits were the best in four years helped by up surge in trading activity while investment banking came in at a high. goldman benefitted from trading when the swiss central bank removed it's cap on the franc. >> meanwhile citi group with the highest corporate earnings in seven years. revenues came in roughly in line with forecasts at $19.8 billion. banks are doing very very well in fixed incomes currencies and commodities. goldman leading the pack in all of this. it's incredible what they're doing at the moment and that begs the question and i think an important one for the entire banking industry not just goldman and morgan stanley and citi bank but the slow down we've seen in fixed income
trading, i think what goldman showed yesterday is that this slow down is cyclical and it's not structural and other banks like ubs and they have been chopping off many fixed income arms. they thought it was structural and now they're not going to be benefitting as much from an up surge. >> that's right and goldmans is benefitting this quarter and since the financial crisis almost all the other investment banks particularly in europe raised the white flags we're stepping out of these risky areas of business and now that it's coming back goldman has blown them out of the water. roe, this is just the u.s. ones. roe of 14.7%. that's the best in 18 quarters. destroying their positive equity and it's astonishing how the roe compares just to the other u.s. banks banks. the real one to look at there is the trading revenue.
5.5. that's over 50% of the revenue which is another question to point out too of course. some people trying to say this points to a bounce back overall in the economy but it's trading revenue that benefitted. >> take a hook at advisory. that's where many of the banks, we just talked about the three ipos yesterday. the lead bank is goldman sachs. >> i think it's going to go forward. one other big area which could be interesting going forward over the next three years is if it really picks up in china, the big investment banks are going to get involved. that's huge market capitalizations. it's going to see some form of dispersement of assets and it's an interesting area. cyclical bounce rather than structural in the economy. >> we don't know. the jury is still out. that's the point i'm trying to make. we don't know. one quarter doesn't make a trend. >> exactly. but fair play to goldmans. they benefitted this quarter.
>> it is at the top end of its range. cnbc spoke about the group's global expansion plan. >> it's important to understand that 30% of the sales on etsy are international. we're really focused today on a key set of countries and our strategy is to build local marketplaces globally. the countries have balanced buyer and seller ecosystems so
canada u.k. australia, we're focused on those countries. >> meanwhile, party city and virtu financial made promising debuts yesterday closing up around 20%. 2015 is kicked off as a solid year for ipos. three of the 40 firm versus doubled on the first day of trade. now etsy is an online marketplace with it's own niche but i don't see how it gets bigger and how it gets better. that it doesn't get consumed or face bigger pressure from the likes of amazon and ebay. fantastic ipo and great valuation but if i was them i would be thanking my lucky stars because i can't see how they can hold up that position. >> he made a smart move. he allocated 15% of the ipo to retail investors. that means it wasn't just the big funds or the big management
companies out there and they can participate in the stock move to the upside. this is certainly a product that you can identify with. >> i'm not sure i can identify with them. >> i certainly can. it's a great idea. >> fair play. very very successful ipo. >> the other ipos were good as well but we mentioned the factors before. there haven't been any others this year and people are dying to get their hands on ipos right now. >> they went for it with full force. >> oh, come on wilf. should i read that story or do you want to read it? >> why the force? the force is with disney. shares of the media apology wrant -- giant popped about 1% at the same time the star wars trailer premiered on tuesday afternoon. the 7th movie in the franchise
will be out in december. it picks up where return of the jedi released in 1983 left off. disney got the bought to star wars when it bought lucas films. the company is planning 3 movies as well as three spin offs. the disney ceo says this could be the most valuable property once the movie comes out. >> no predictions on how big this will be. we know that you know star wars films did incredibly well but there hasn't been a film out since 2005. the movie going audience in the world is much larger than it ever was. there are markets today that were nonexistent before in terms of movie going. china being a great example of that. we're fairly confident the film will to well but way too soon to make predictions and we will not make any in public. >> fans can also expect star wars attractions at disney theme parks.
last i checked it was higher by 0.4%. we want to hear from you on this. which movie franchise are you most looking forward to? which one is your favorite one. we know yours is bond. >> james bond 007. no doubt about it. it is incredible. it has such longevity. as i said earlier i think this question should be other than james bond which is your favorite. but what's yours? >> spider man. i thought it was really good. >> i think they milked it too much. i forget the name of the actor and they repeated the same story lines. they're overmilking those ones and growing up as a kid along side james bond i love the superman movies but the originals. not the new ones. >> shall we have a look at the most successful movie franchises in history? we have a great art chart for you. guess who tops the list its marvel. i'm not a big fan of this at all but doesn't matter. >> it's confusing.
it doesn't focus on one hero. superman doesn't make it. harry potter does very well. >> superman is somewhere in there. >> done take it to the top 7. lord of the rings obviously a big one. james bond should be at the top but we will see what happens. >> it's because you're bias because you're from the u.k. >> i don't deny any bias on that. but it's still my favorite. >> do get involved. you can join us on twitter or send us an e-mail firstname.lastname@example.org. we had a little bit of interaction and we'll get that out to you in a couple of minutes. still coming up we reel in the information on a fishy app that is making a big splash. find out more after this short break.
everyone wants to post their catches because they can brag about it. it's a mobile app and social network for the world's biggest hobby. sports fishing. >> what do you do with the data? >> we collect an enormous amount of data and we can have recommendations on when where and how people can fish so they can catch more and bigger fish so they can brag about it. >> you have just under 1 million users so far and they're using it in order to find fish or a social media site to brag among fellow fishermen? >> they want to brag about their catches. they want to brag about their catches and experiences and while doing that they're collecting all of this data so it's a great way for them to get going. >> do they pay a monthly fee? how do you make money? >> it's a free remodel so the majority of features are free. so you can download the app today on app store and google play and use it for free. then we have some features
behind the pay wall so if you want to have access today at a, see the real secret the good spots and looking at when is the right time of the day, what's the right air temperature, water temperature, stuff like that you have to pay for that so then it's subscription. >> it's obviously a bet on big data but there's a lot of investment that goes into it too from your side. >> yeah. >> fantastic. thank you for joining us. are you going to be going fishing this weekend here in the u.k.? >> the plan is to go back to sweden to do fishing. >> probably a better place to do fishing. >> this is super big in the states. 16 million people fish in the states. >> it's a big market. >> it's a big market. >> thank you for joining us. much appreciated. that was the ceo of fish brain. >> you can't wait to do that this weekend. >> a bit of fishing? maybe. he has given me an incentive to do it but i also have tickets. this weekend i'm afraid i won't
exchange. >> here are your headlines from around the world. >> u.s. futures pointing to a lower open as the dow and s&p 500 try to push out a third straight week of gains. this as two fed officials make the case for waiting on rate hikes. >> etsy shares nearly double on the first day of trade leaving a solid day for ipos with party city and virtu also delivering for investors. >> general electric to report earnings before the bell a week after announcing it's major buy back. >> investors sense a great force is with disney. a new trailer is released for the latest star wars film. >> thank you for joining us on the show. the nasdaq the dow jones and s&p 500 all seem a touch lower but this is after markets really range bound in yesterday's
trading session. just fractionally down. couldn't hold on to the early gains. for the week the major indices still positive. the dow and s&p on track for the third straight weekly gain. the nasdaq looking at a back to back gain and focus obviously today. cpi and ge. let's look at european markets. a little bit choppy here. the dax seeing further profit taking off by 0.1% back below the crucial 12,000 handle. the ftse 100 with relative out performance today because copper prices have rebounded and that's helping some of the minors. the ftse 100 close to its recent record highs but european markets still close to 15 year highs. maybe greek uncertainty also weighing on sentiment. >> thank you. now it's time to play the rate hike waiting game. that's according to a pair of fed officials that spoke on thursday saying the central bank should consider waiting longer before starting to raise rates. boston fed president said the u.s. labor market needs to
improve further and inflation shows signs of heading up to 2% before taking any action. that was echoed by the atlanta fed president who favors a rate hike later in the year as opposed to june given the cloudy economic data in recent months. let's have a look in at the oil price up by about a percent today. brent at 63.35 and wti at 56.15. wti just a couple of days ago closing at its highest level for 2015. let's talk more about oil. joining us is mike the research analyst. thank you for joining us. as i was just referencing there the oil price has recovered in the last couple of weeks but it has done so in volatile fashions. massive data moves to the upside and down side. does that suggest this recent bounce back is only temporary? >> sure it's going to continue
to be volatile but we do think that oil is showing signs that it's in the early stages of a real lasting recovery. >> what about the investment case here? i've seen a couple over the last few trading days. you have some coming out and saying go and buy oil services now. what about exploration? what about production? >> we have been constructive on the emp group since early part of this year and we continue to be -- we think you need to be a little bit more selective now. stocks have done well and recovered up an average of 40% from the lows end of last year. investors need to take on more risk to look for more value and we still see value in a lot of stocks. >> but i would think for some of the stocks the bounce back that we are expecting in terms of oil
prices, that may come too late because their funding doesn't look great. their debt levels are too high. >> for sure there's some that need to be avoided and they need a lot higher oil price and it may not as you said come soon enough to fix those balance sheets. the equity markets have been open for some of the companies and they have done some equity raises to improve balance sheets but we think there are still some stocks in the group that are too risky at this point. >> what's the top pick for you at the molt? >> mobile space mid cap energy and on the small cap side pvc
energy. >> it's been up about 24% over the last 12 months. what's your target and why do you like it? >> we like it for a rebound in oil like all the others but that one is lagged because of an issue with offshore israel discovery, antitrust committee has wanted noble to sell down their position there. we're starting to see a resolution there. possibly it could be sanctioned if not this year maybe early next year. that would be a big positive for that stock. thank you for joining us. >> first quarter profit fell 39% and the oil services company is cutting another 11,000 jobs.
that brings the total layoffs this year to 20,000 or 15% of the work force as lower oil prices slows drilling activity. the company is also cutting it's capital spending plans this year. revenues fell 9% but still beating the forecasts. schlumberger rising after hours. >> american express's first quarter profit rose 6% beating forecasts as card holders spent more and borrowed more. however revenue missed estimates hurt by strong dollar and the lost of several tie ups. most notably a 16 year partnership with costco. american express expects 15 year earnings to be flat and almost lower. they are town just less than 1% today in frankfurt. >> first quarter sales fell less than expected as an up tick helped with the stronger dollar. however the barbie brand continues to struggle overseas.
mattel fired the ceo after the holiday season. >> the u.s. and japan have agreed that the world bank and asian development bank could work along side the new chinese led infrastructure investment bank. he told cnbc why he believes it's a positive step. they have a lot of resources. they have a lot of interest in investing not just in china but throughout asia and the world. this is an institution that will allow them now with quite a large number of other countries that decided to join in to do something that we think is necessary in the world. after all the g-20 said one of the greatest needs in the global
economy in particular for developing countries is more infrastructure spending and that requires finance. it's important that the institution has the standards of governance the world has come to be accustomed to and the chinese heard that message from the many countries who decided to join. >> still to come a new trailer for the star wars movie gives fans a glimpse into a galaxy far, far away. we get the details after this short break.
the force is with disney as investors and fans get another reason to be excited thanks to a sci-fi movie that's expected today beau later this year. let's get out to cnbc hq where we have a report from the president of the darth vader fan club. that's landon dowdy. >> the force is with me. fans were gidy when the trailer hit the internet thursday afternoon. disney stock popped about 1% as the trailer showed up online. that's about $2 billion in value
added to the company's shares. the trailer a little more than 90 seconds long gives us a sneak peek into the upcoming film. the 7th in the blockbuster franchise is set to be released in december. the movie picks up about 30 years after where return of the jedi left off in 1983. it's directed by j.j.abrams and brings back original cast members. disney is planning six more new star wars movies starting with 7, 8, and 9 and three spin off films. he is confident the new movie will do well at the box office. >> no predictions on how big this will be. we know that star wars films did incredibly well but there hasn't been a film out since 2005. the movie going audience in the world is much larger than it ever was. there are markets today that were nonexistent before in terms of movie going. china being a great example of
that. so we're fairly confident that this film is going to do well but way too soon to make predictions and we he will probably not make any in public. >> the trailer got a huge and enthusiastic response from fans that gathered at a star wars convention in anaheim california on thursday. they can also expect to see star wars attractions at disney theme parks. although he wouldn't divulge many details, they bought the fran franchise for $4 billion in 2012. it's a positive move for everyone involved. >> we are confident it's a good deal for us and a good deal for george lucas as well. because he took cash in disney stock and the disney stock has appreciated significantly since less than 3 years ago when the acquisition was made. i think in the end the
shareholders will be quite happy about the investment that was made. >> as if that one enough excitement check this out, they announce a cross promotion thursday. the airline painted one of its boeing 787 jets to look like r2 d2. >> thank you for that. breaking news on volkswagen. the steering committee will propose extending the ceo's contract next week. it says winterkorn is the best possible ceo. he has the steering committee's unreserved support. he's part of the supervisory report and there's been a big battle around leadership after the chairman last weekend in a press report said he had distanced himself from the co. there was a meeting in austria yesterday but no statement after the meeting. but now the steering committee has come out and said he is the best possible ceo. let's have a look at shares in
volkswagen. they've seen a rally on the back of this statement. higher back 2.2%. >> the founder of cirque du soleil is in a deal to share most of his company to a private equity group. that would value the circus at $1.5 billion. this would mark the end of the control of the company he created more than 30 years ago although he will reportedly keep a 10% stake and board seat. they currently stage 18 shows around the world and will have another one based on the movie avatar. >> all these movies you like. >> pretty epic. etsy shares skyrocketed on the first day of trade on the nasdaq more than doubling before settling up 88%. the online draft retailer raised about $279 million on the ipo.
we spoke about the group's global expansion plan. >> it's important to understand that 30% of the sales are international. we're really focused today on a key set of countries and our strategy is to build local marketplaces globally. the countries have balanced buyer and seller ecosystem. canada, u. k. australia, western europe. we're focused on those countries. >> meanwhile brick and mortar retailer party city and virtu financial made promising debuts yesterday. 2015 kicked off as a solid year for ipos. three of the other 40 firms coming to markets doubled on their first day of trade. that includes biotech, shake shack and spark therapeutics. >> u.s. pufutures point to a lower open as they wait on a rate hike. >> disney stock pops as it
now let's get back to our viewer exchange off the back of the news on the latest disney release of the latest star wars trailer. we have been asking you which movie franchise are you most looking forward to and which is is your favorite movie franchise? we've had quite a few tweets. fast and furious is the best franchise. james bond a close second. blue horseshoe says bond. james bond. well i agree with that sentiment. it's definitely my favorite. follow quite closely by the original supermans and some of the latest batmans. what about you? >> spider-man is the best. but i didn't like the product placement in the last movie so i hope they do a better job on
that. but we had another viewer writing in and he said when are we going to finally see the first 3-d bond. that would be interesting. >> it would be although have to say whenever films come out and there's a 3-d option if there's a 2-d option as well i see that. 3-d for me still isn't perfection in the way hd is for a 2-d version. for me it's a little hazey. i am getting hold. >> in the spirit of cowboys and aliens imagine how much greater james bond could be if he also had the force. well, greg you're missing the point. he doesn't need it. he has the british charm and charisma and that's all he needs. >> he has the accent. we should probably leave it there on that chat. continue tweeting us throughout the day if you're still interested what your favorite
franchise is. switching focus, european markets are ending the week in lackluster fashion. it's been a relatively soft week of course. we've had a few worries. greek concerns elevated a little bit. a few earnings disappointed but in general it's been the fact hah the two or three weeks previously weren't so strong for european equities. the ftse 100 holding on today. a further decline of 0.37%. athens a little gain today but this has been a week as a whole that's been negative for athens with fears after a grexit. let's have a look at bond markets as well. it ain'ts a similar story. you can see grichb by more qe we've seen yields push lower. of course there will be no tapering as expected. that led german ten year yields
to record lows. french yields below 0.35 for the first time and the 5 year french yield into negative territory. spanish and italian still negative. i worry what they're going to do generally. the whole point is you get a coupon and you know whatever volatility comes if you hold it to maturity you get that return every single year. that doesn't work now. i don't think we're really waking up to what that means for financial markets globally. >> i don't think anyone knows. we're in unchartered territories yet at the same time many insurers still have the mandate to buy the bonds even if they're yielding negative. we're seeing maturity in germany. up to nine years i believe now in the red and maybe it's just a matter of time until the german bund yield will see a negative yield. >> i just think this is a
potential big positive and we were talking about themes from earnings season. we haven't heard this theme yet. last quarter we saw am issue debt in europe. incredibly low yields and i don't see why we're not seeing more companies do that. making use of these record low interest rates. kick the can down the road. refinance their balance sheets. if necessary in europe. >> people are doing that. >> people are doing it but i'd like to he see it more. this is an extraordinary opportunity to lower financing costs at fix rates and they do make use of this rather than just in the short-term doing a few buy backs and a few deals. now let's also have a look at greek wreeld greek yields. they're elevated this week. 12.7 highlights the elevated level we've had this week of fears around a grexit. we're looking at 26.7%.
these elevated yields come after mixed messages about the willing to unlock funds from its international kred tors. speaking in washington along side the german finance minister he struck a defiant tone. >> we will compromise we will compromise, and we will compromise in order to come to a steeddy speedy agreement but we're not going to end up being compromised. >> u.s. futures pointing to a start. the nasdaq lower by almost 8 points. this is after a fairly curious session yesterday. the s&p was off by 0.1%. the dow off by less than 0.1%. the focus was on earnings and ipos and both really strok. you saw goldman sachs hitting it out of the park. you saw those three ipo pops.
especially etsy almost doubling. it's a little bit of caution ahead of the rest of the earnings season and the big one, the elephant in the room the energy sector is still to come. >> absolutely and overall that will certainly pull down the session but you're right the other part of the market could have done better. oil prices let's look at them. they allied over the last couple of weeks on wednesday. wti closed at the highest level for 2015 but given up a percent or two. it's giving up 56.1 to wti's brent 63.4. >> and it surged in the month of march. let's give you a run down for this trading day. march cpi at 8:30 a.m. eastern. they increased modestly last month. right before 10:00 a.m. we get a report on consumer sentiment and ge. fresh off it's big announcement. most of ge capital reporting earnings before the bell. >> indeed. that's all we have time for
good friday morning. rolling out a new plan to let customers pick their own channel bundles. it's a move toward alacarte programming. mattel getting a boost as the company beat the street for the first time in six quarters. and the developing story right now, bloomberg trading terminals hit by a global outage overnight leaving many users complaining that they can't perform their normal trading functions, it's friday, april 17th 2015 and squawk box begins right now. ♪
>> live from new york where business never sleeps, this is squawk box. >> good morning, everybody. and welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. it's a big week for star wars fans. disney unveiling the trailer for the next movie in the franchise. first check this out, announcing an r2d2 themed plan. the airline says that the character is beloved by star wars fans and they're right. also people associate it with competent and reliable service. you can get a ride with r2d2. u.s. equity futures this morning look like they are -- yeah looks like they're weaker with the dow futures down by 30 points. s&p futures