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

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a very warm welcome to worldwide exchange. a chemical reaction. shares in syngenta are good and there's a bid for the swiss firm. >> a roller coaster ride for chinese equities which close at fresh 7 year highs after falling as much as 5% after the session. >> greek prime minister is making a counter offer to creditors after late night debt talks failed to resolve pension
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cuts and tax hikes. >> yahoo! secures the rights to the nfl's first game to be broadcast only on the internet. coming up we hear from the firm's cfo. a very good morning to you carolyn. >> good morning. >> i'll talk straight up about the moves on the back of the ecb announcement. we have another big unwind of the trade but i'm not sure why. mario draghi underlined his commitment to see through until 2016 and that saw a reinflation of the qe related trade so i don't see why things moved in the opposite direction. >> he said get used to the volatility. that's the first time he admitted that we're not going to help you out every time we're seeing a spike or fall in yields but if we do see a further
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tightening of conditions if we see yields surpassing 1% and they're attempting to do that this morning i think that's when the ecb might get worried again so at some point the ecb may come back and step in again but why didn't we see the big moves in the yields yesterday to 0.89%? it's also because of the inflation expectations. they raised their expectation upgrade. and also because we're expecting a greek debt deal. >> well the greek debt deal has less particularly to do with this. this is more ecb related and they did increase the inflation data but that came a few days later after the actual data came out. it for me overall highlights the lack of liquidity in this space. the fact that the ecb is sucking everything up but it still surprised me the direction of the move. >> do you still believe they're rational? i would have never expected
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that? >> no i think that the bund market is now acting like an equity. but surprising moves. >> we'll have to move on. our top story this morning shares in syngenta are trading higher on talks basf is considering a bid for the firm. spoke to syngenta this morning and they have no comment on the story. if basf goes ahead with an offer and they're currently talking to bankers to see if an offer would make sense but can they top the offer. >> which has already been turned down. >> according to a number of reports what syngenta wants is a higher cash offer as opposed to the cash share mix we have seen and also can they overcome the regulatory hurdles and that's been one of the key obstacles
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for the tie up because under a basf syngenta tie ups that have to be cig any can't too. >> that's what people were saying about the monsanto one awhile back. would it then have the syngthings they need for the prices. it is still sticking up since then with various other suitors hovering around it. now shares in deutsche telecom are on there. the fourth largest carrier has a market cap of $31 million while dish is 33 million.
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he could become ceo and charlie would be chairman. >> among just media deals m&a totals up 55% on the year. >> overall is that because there's huge growth available in the world or people are desperate to seek it out artificially. >> i don't know. maybe a little bit of both. anyway roller coaster session for chinese equities which closed at a fresh 7 year high after falling as much as 5% for the session. sri hopefully has an explanation for us. what is going on sri? >> i'll tell you what is going on. get used to the volatility in german bunds. you can apply the same draghi comments to the chinese equity markets and i was saying this last week what we saw around this time 6.5% slide in mainland equities in shanghai
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and that's really because of the margin debt. 3% of china's gdp and what they want to do is try to ring out some of the excess leverage in the system. that's what happened today. we had small, medium sized brokerage that said they are going to be enforcing tighter conditions on trading. it's the market jumping at its own shadows really. remember the slide also aggravated aggravated. very sharply closed in positive territory by just around .8%. more of this to come. >> the chinese market maybe experiencing volatility but the ibo market continues it's hot streak. china national nuclear power attracted $273 billion bid.
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that is the highest and almost equals the entire economic output of hong kong. >> sorry. you go on. >> we're now joined by alan higgins, chief investment officer. you have sold 8 shares. the pe levels are close to the u.s. and europe. does it still make sense to buy chinese shares. >> china is a very strange market. we were in asia before the market doubled. it still has deep value. you're talking about a pe ratio of 7 and yield of o5. it seems absurd.
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is there an argument to say we can play catch up by buying these undervalued versions to similar feelings. >> a little bit and moving away from the really overheated areas. the high pe stocks you're mentioning. the ipos, brokerages et cetera et cetera and when we first went into asia nothing is happening. we held the position for awhile and all of a sudden it explodes and the work that we have done indicates that it's not policy. it's clearly not economic growth. there's no correlation. it's the ultimate gamblers market. >> let's bring the chat back to europe and talk about greece in particular. you take a view and think their debt is sustainable. >> yeah we do because not enough focus on the time value of money. it's like this is not an
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official offer but if i lend you money for 100 years at a very low interest rate then the size of the debt you could probably take a bigger debt and not enough focus that much of the debt is long-term. they already focused on the bonds and the issue is the ability to issue bonds. for example if thinking laterally, greece is running out of money, right? so is the u.k. the u.k. needs to find 38 billion in huge bond redepositionredemption. 500 accounts put in 10 billion orders for greek bonds. so it's all about the ability to issue bonds. >> but they're not because the yields are so high. >> that is the issue so why could they issue bonds a year ago? because they were just developing a primary surface and
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confidence coming back. that's all that needs to happen because the debt owned to germany is very long-term and very low interest rate and i expect that to be extended again. >> but you still don't want to take a bet on greece. >> they may burn the bond holders. the bonds are trading about 65. what they did last time was extend the bonds. so by extending that's an issue. so the risk with greece is that. so that is the real risk. but most some kind of deal and we would expect a deal then we'll look carefully at greek bonds. >> maybe opportunities then. more broadly you still favor equities more than bonds. within equities what we have seen is people getting out of
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bond proxys. does that to some extent apply to the u.k. even though the rate rise is further out. >> i think you're right. the rate rise is further out in the u.k. i hope it's not a crowded trade. you said that you're hearing other people talk about financials financials. but more importantly credit growth. it's working in japan and the united states. that's like the oxygen for bank profits and of course it's still in some markets quite devaled. maybe just value in the states. so put those three things together we like financials. we're overweight financials in japan and europe and the states. >> thank you for your time. appreciate it. alan higgins.
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>> let's get a quick look at the european markets that have taken a leg down and now of course yesterday european equities did hold up relatively well. they were in the green despite the fact that most other european qe related trades were unwinding. we saw bond yields rise and the euro rise but equities did hold up. they clearly reacted to the down side. we're looking at 1.4% of declines on the broader stoxx 600. >> the saudi oil minister played down fears of a spare capacity in crude market saying the supply of oil is actually declining speaking at the opec meeting in vienna they pointed out that saudi arabia isn't the only producer in the room. crude is lower which is expected to keep output on hold. strong global demand is preventing it from falling
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further. in a note analysts said unexpected strong first quarter demand proposed a risk to its bearish output on brent. steve, before this morning you were talking about the fact that too many people are focused on the official output levels. you say we should be focussing more on sentiment. explain. >> what they're actually doing, when they put it up to 30 million in 2011 how much do you think they were producing beforehand? they weren't still producing 24.5. they were producing 30 million. so, you know when they cut it in 2008 over three meetings in the tail end of that year through 24.5 you don't think they were waiting for those official announcements. they were doing it already. it's about sentiment and real flows. he's executive of peer energy group. people are getting too hung up
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on this aren't they? >> they're doing over 31.5 right now. it doesn't really matter because the market is absorbing it. we built stocked in the first half but we're not going to build stocks in the second half of any major amounts. there's not a lot of spare capacity in the world. that's the amazing thing about this. 10 million barrels they spare capacity. how much do we have today? a half million to a million and yet we have prices? so we have the magic of prices working to increase demand and supply. >> people are worried about the next leg. they're worried about iran a lot as well. why don't you tell viewers what you told me about iran as well. you think we're overhyping the ability of iran to ramp up production short and medium term don't you? >> we're not going to get a deal so fast. maybe by the end of june but i doubt it and then full
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implementation of the deal. so we're talking about in 2016 before you see any oil and now 3 million barrels a day. where are they going to go? maybe they can ramp up 5 or 600 a day. by then the market is going to need that oil. >> you've been around a little bit longer than that. i would have known but you have been around since the oil embargo in the 70s as well. people are going on about volatility. i don't think this feels volatile compared to what you have seen over the decades. >> no it's not but prices have halved and people lose the magic of price. we're seeing demand growth. 2 million barrels a day in the first quarter. price works and look at the middle east. the middle east is on fire. this is why the financial guys looking to the future are
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constructive on price. the physical guys looking at storm are less constructive as they see high inventories and the rubber meets the road every day for them. you have this situation where the physical market has to accommodate the fact that you have relatively high storage. the financial guys buy the front, narrow the spreads but you need oil and storage. it's like an accordion and goes back and forth but basically the market is directionally tighten tightening. >> who is running this market? the oil producers of the financial guys that you mentioned? >> i think it's both the financial guys and the physical guys. financial guys are driving the flat price and the others the relative price. one other thing i'll tell you this the market in the back of the market doesn't work. it's not signaling the world that we need more oil. we will need more oil. people think demand is not going
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to grow 85% of the world's population is right at the point where demand growth accelerates relative to income. walk on 5th avenue in manhattan. all you see is indians and chinese. the reason that these guys are investing in oil around the world is they know their oil consumption is going to grow rapidly in the future. >> always good to speak to you. let me hand it back to carolyn in the studio. >> thank you for that. still coming up on the show yahoo! gets in the game securing an nfl game. seema will be speaking live to yahoo!'s cfo about the deal and much more. unlimited concert tickets for a low monthly price. we're talking to the company trying to breathe new life into the music scene. plus walmart changes it's tune. the store is set to get rid of annoying music to boost employee morale. which tunes are most likely to
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put you off your shopping. we'll be back in two.
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we are lower across the board. the ftse 100 off and the cac 40
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going lower to the tune of 2.2%. we have some of the utilities playing off as we're seeing bund yields climbing higher. some m&a speculation pushing us higher. >> let's have a look at the euro which spiked in the last few moments. it's crossed 113. also moving sharply higher against sterling and the yen. don't forget this follows a big move yesterday in the euro to the upside as various qe related trades started to unwind off the back of increase in inflation forecast. 11338 on the euro dollar at the moment. >> why do you think we're seeing that move? it could be a lot of things. it could be greece. there's been so many headlines this morning indicating some progress is being made between them and the official creditors talking in brussels and others argue there have been a lot of
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disagreements. it's hard to say whether this could be pinpointed toward greece. >> it's hard to say if it's greece or not. let's bring up the bond yields. that tells an interesting story. if this is positive news that might have drich theven the euros higher. particularly like spain. so for me this looks like a bigger unwind of qe related trades because equities down bond yield up euro up and those things all together suggest it's a very extraordinarily large move but one related to that. if it was greece i don't think we'd see euro up and bond yields up. >> regardless of what it is and it's very difficult to say what it is at this point you're seeing very low liquidity in these markets. that's exacerbating the bonds. >> it's unsurprising off the back of the come mepts
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yesterday. he might be regretting saying that yesterday. we're up .5%. 1335 on the euro. back to markets shortly. we're getting word that the geneva public prosecutors office will provide an update on the case against hsbc bankment. we'll bring more information when that comes in. >> walmart is hosting media members in arkansas today. on wednesday they held a meeting with thousands of employees unveiling changes to try to help boost morale. they include a relaxed dress code and raising the temperature to address worker complaints that they're too cold. they're also ditching music that's been on loop on the store for months. so we want to hear from you on this. what music drives you up the
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wall in stores or what music would you like to hear if you want to join the conversation on worldwide exchange get in touch with us. your pet peeve in terms of music in stores. >> i don't hear the music in the background. bun song that got on my nerves recent recently is the song fifa plays in the background. >> can you sing it? >> i can't but i've heard it so many times and listening ahead of the press conference i thought god this music i've heard so much. i can tell you the name that fifa likes to play it's called shake your body with a dd, by d.j. optical. but that's what they play. >> that's interesting. i hate when there's no song because it's always eerily quite
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in the store. maybe not music that's really loud. maybe we're too old for that. >> the other kind of music which is terrible quality when you're waiting on a telephone with a big company and the quality is not good and then it gets intermittently your call is important to us. >> that's for another day. >> infuriating. we have to wrap that discussion. still to come on worldwide exchange banking on financial disruption disruption. let's also have a quick look at european markets as we head to break. a sea of red and european equities. we'll discuss why the stoxx 600 is down 1.8% coming up.
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the euro rallying to a two week high versus the green back. >> a roller coaster ride for chinese equities after falling as much as 5% during the recession. >> a chemical reaction. shares in syngenta get a boost on reports that basf is weighing a bid for the firm. >> greek prime minister is making a counter offer to its
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creditors after late night debt talks failed to resolve differences over pension cuts and tax hikes. >> let's get straight to markets. a big sell off in european equities. down 1.4% in london and down 1.6 in germany and over 2% down in france. yesterday when some of the european qe trades started to unwind off the back of the meeting european equities did remain in the green for the most part. today certainly reacting in the opposite direction. >> let's have a look at bond markets as well. we're seeing the ten year bond yield creeping higher to 1%. let's get the bond yields up. 0.971%. that's a huge strike over the last three trading days. it's driven by a lot of things. it's driven by optimism around a greek debt deal. it's driven by higher inflation
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forecasts and mario draghi's comments that said get used to volatility. we're seeing a big spike over the last 20 minutes or so. we're changing hands at 11328. a lot of discussion as to why the spike in euro dollar is happening. some people say it's driven by progress in terms of greece. remains to be seen what ultimately this is driven by but certainly a lot of volatility. >> let's move on. challenger banks and financial tech firms are attempting to take on the high streak apologygiants with online banking. joining us to discuss this is ceo of frees. alex good morning to you. thank you very much for joining us. i mean this kick off more broadly, how are they changing the way consumers bank? >> the truth is at the moment
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it's not. the aspiration is to change the way consumers bank and it's to have a significant impact. let's be realistic. the banks are huge organizations and they have huge imbedded infrastructure and change is going to have to come as much from within as from without. >> if we look at the u.s. market for example as the four big well set out banks and loads of challenges, how long will it take to change that? how long will it take to have much smaller market share. >> i like to use the example of ibm. so what's going to happen to the banks is parts of their business parts of their business will be changed. personally i believe that the current isaccount is one of the easiest to change. it's a spreadsheet operating on top of a spreadsheet. and they can come in and make a difference and change the
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business model but what are you doing differently then? >> people talk about digital as being apps and online -- and i think the banks do it well. what disruptors like us do is say if we use a platform which is a way of accessing all of the infrastructure through modern technology. we can do it cheaper, better quicker and that attacks the underlying business model but they cannot change that. >> we have to leave it here. thank you for coming in. >> are you ready for football on the web? yahoo! has won the rights to the nfl's first game to be broadcast only on the internet. yahoo! will make the october
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25th game between jacksonville jaguars and buffalo bills available on all digital platforms with a streamsinging device. people are meant to be at their desks working. it will only be broadcast on tv in the jacksonville and buffalo markets. let's go out to seema in monaco and she is joined by someone on that topic. >> wilfred thank you so much. there is an active discussion around the changes that we're seeing in the media landscape and of course the question is what does it mean for some of the existing players in the content space. let's talk about that as well as the broader discussion around innovation with the chief financial officer of yahoo! as well as part of the cnbc cfo counsel. thank you for joining us. >> great. nice being here. >> there's a lot of excitement about the innovation at this conference and it's also evident there's a new generation of
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leaders taking aim at the heart of what the big companies are making billions off of. what does this competition mean for the incumbent players of silicon valley. >> well i think, frankly it's just vibrant. i have been doing this now for, i don't know 30 years as cfo and i have never seen so much vibrantcy. it's great to be part of the game. i love it. >> what's some of the innovations we're seeing here can it cannibalize existing technology or is it seen as an odd on. >> disruption has been part of what creates innovation. great companies know how to keep on disrupting as well themselves. so we see that constantly but i tell you i once did 15 or 20 different technologies going on today in a number of areas. you can talk about computing, security, social mobile video,
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there's so much going on today. >> absolutely. of course one of the other big trends we have been talking about are stories when it comes to silicon valley is whether there's a bubble brewing when you take a look at valuations. how would you characterize the mood and what we're seeing in silicon valley? >> it is a little crazy. someone told me they hook at t you know some of the late roun rounds where the enterprise value is great and it's an interesting perspective of how real and the prior evaluations. my own sense is the public market was reasonably thoughtful. you look at the nasdaq 17 18 pes so it's not like the 2000 period where it was actually only 100. i think in the private area there's a lot of nothing can go wrong perspective in some of these valuations and things do go wrong from time to time. so i think in the public
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valuations they are higher than i've seen. there's a change that's going on. a few years ago people saw the phenomenon phenomenon. today that's not as prevalent. what's happening is very late stage. public institutions mutual funds, investing in many companies so you have a different group that frankly have different hurdle rates as they think about going investing. very different phenomenon that three or four years ago or ten years ago. one last thing i'd say is you as a company, you can stay private longer because you have the ability to have investors in the private round as opposed to public. >> does this rise signal confidence among corporates or sign seeking inorgan aic growth
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opportunities. >> one is confidence. companies will tend to do big acquisitions when they're confident about themselves and acquirer and acquiree are more nervous. i also hear this thing, it is easier when the cost of money is basically zero. so if you're using cash in your balance sheet which is earning almost 0 and you're acquiring a company that has some earnings it's much easier for that to be with your earnings than otherwise so the fact that money is available, the cost is relatively low and certainly helping the acquisition phenomenon we see today. >> washington is cracking down on tax incentivized deals. what does that mean? >> i'm not going to comment on washington taxes. i'll stay away from that. >> another part of the story is the irs looking to perhaps change tax rules around spin offs. what do you think the impact of that is. >> i'm going to stay away from
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irs and taxes right now. >> fine, let's talk about the innovations in the technology space. it's been gaining a lot of traction with the likes of merecat and periscope. what are your thoughts on them. >> mobile broadband and video changed hands. we talked about the whole phenomenon and the fact that content is always on. it's very differ. now you have broadband pervasive and people think about how to do video and you have people creating content and user generated content so video is exploding and when mobile people want to see video so you'll see much more of this when we go forward. >> do you think that was at the root of the verizon aol deal. >> clearly they see value on both sides. >> as we see the shift from desktop to mobile how is that
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kanging the changing the advertising model for content players? >> you'll see mobile -- i can't remember the exact statistic but mobile is gaining about roughly 20% of viewship and in terms of advertising it's like 5 or 10% so it's much lower. so based on -- water gets a stream so you'll find overtime that advertising and digital will end up getting closer to the amount of usage that you'll see on mobile and video. so overtime we see that and you'll see much more content, video content, sports content, over the top in mobile and so forth. >> and more deals in m&a in that space. >> maybe. >> we have been talking about fed policy and the rising rate environment. do you see that as dangerous for some of the companies fuelling growth through cheap credit. >> not really. people have been talking about the fed raising rates. they have been talking about that for three years.
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i think it's probably going to happen. my own opinion is it happens late this year. i think as long as it's gradual and it's not big, as long as you don't see inflation all of a sudden go way, way up very quickly, i think it's healthy actually and i think we have had now a number of years of frankly very strong economies and that's done when frankly the economy doesn't overheat. so the fact that the economy is growing 2 or 3% is very healthy. >> but when janet yellen does say we are raising rates will we see fewer buy backs and deals in the tech space? >> you'll see people thinking about capital allegation very thoughtfully. you'll see buy backs and dividends and investors look at the combination of the stock as well as dividend as a way to think about how they can make money. >> pleasure to have you on the show. >> thank you. >> your thoughts on innovation and macro factors.
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>> great to be here. >> enjoy your time in monaco. >> fantastic interview. thank you for that. let's get you caught up on the equity story in europe. we've seen this big sell off. let's have a look at the bond yield. 0.981%. we're seeing bunds selling off for the 4th consecutive session. we have mario draghi saying get used to that volatility. secondly an upgrade to inflation expectation and thirdly there's optimism about a greek deal being struck. let's have a look at euro dollar too. it's also very closely linked to bund yields. is the euro driving bunds or are bunds driving the euro. we've seen that big strike roughly 20 minutes ago. we're higher by 0.8% on the day. quick look at european markets. the equity markets that is.
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we're seeing the sell off continue. ftse 100 off. the dax losing .18 and the dow down by more than 2. >> still to come deal or no deal as greek uncertainty weighs on europe. we speak to france's economy minister in an exclusive interview. worldwide exchange is back in a couple of minutes. heroes charge! ♪
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greek prime minister is preparing to make a counter offer to creditors. this after european lenders made concessions in debt talks overnight but the two parties still have proposed pension cuts. speaking after a working dinner he still struck an optimistic tone. >> the dialogue was in friendly climates. we exchanged views and at the end of the day i think we have a base to discuss and this is optimist thing of the discussions. we're very close in an agreement
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agreement. that means that all the sites a agree to go further. >> it lead the oecd to cut the global outlook. also citing investment and high unemployment over the move. he has been speaking to france's economy minister about the impact surrounding athens. he joins us now. >> we have been discussing the greek situation here at the oecd meeting although it was not officially on the agenda. everybody here is very cautious when it comes to greece being able to strike a deal. however when we talk about the timing, about the deadline everyone seems -- at least the ministers i talked to over the last two days that's the case for the dutch prime minister and
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french economy minister. he published a joint statement with his german counter part in which they express their vision of europe. the future of europe. some sort of lighter eu membership on one hand and more integrated euro zone on the other hand. why does it make sense? i caught up with him in an exclusive interview. >> you have to look at the euro zone and all of these corporations you have a multi-speed europe. but my strong view is when you have all of this grexit discussions and brexit discussions the key conclusion for me is that you have a lot of people with sort of an interest to dismantle europe. or people doubting about europe.
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so what we need now is first stability. that's key. reform. that's national. that's what we're doing in france and that is what we will keep delivering. third investment and solidarity at the european level. >> do you think that creating some sort of low definition member status for the european union would help to keep the u.k. in the european union. >> i don't think so. i think -- i mean it depends on the u.k. proposal but if they want more simplicity there's more rapidity that's a good proposal and something we can accept. if the requirement is just to stop with europe or to decrease
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our ambitions or to stop initiatives on freedom of movement and so on its definitely not acceptable but what we propose is not less europe at 28. it's more europe for a few member states which progress and which already go further in terms of solidarity, in terms of common responsibility. >> so that's the french economy minister minister. i have known more difficult places to report from. back to you for now. >> what a lovely shot and a great interview as well. thank you very much. now switching focus, russian
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foreign minister accused kiev of threatening the ceasefire in east ukraine. this comes after five servicemen were killed and 39 wounded fighting. russian backed separatists tried to capture the town according to ukraine's defense minister. this marks the worst violence since both sides agreed to stop fighting in february. good morning to you valerie. thank you for joining us. i wanted to get a sense really of what we have seen in the oil price move. we've seen the rally. to what extent is that down to the politics? whether russian or ukraine related or middle east related. >> if we had seen the instability five years or four years ago there would have been a huge upswing in the price with the fall out from instability in libya and iraq and syria it's all over the place and we haven't seen that so i think
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there's much less of a connection than there used to be but that doesn't mean that should instability really increase, we might see an upswing in price but i think it's not as tight as it used to be. >> last year within the middle east the focus was very much on islamic state and what was going on there. this year developments over iran and whether they start to export more oil. does that add more instability to the region as a whole? >> we don't know exactly how that will play out? it will play out a lot behind doors. we'll never know the full extent of that rivalry but when iran comes back to the market it will be slower than the game it's saying right now in opec saying a million barrels of extra crude in six months. it will be less but there will be a big pressure on saudi arabia and other gulf producers and big strain within opec as iraq and iran rises there's a huge rivalry in competition for market share within opec.
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they're not just competing with shale. they're competing with each other. >> we're seeing renewed fighting in ukraine. do you think that's in the water. >> i can't comment on ukraine. >> just coming back to the oil story, russia is not part of opec but it's not intent on cutting output either. to what extent are low oil prices still hurting that even though oil prices have come up a little bit. >> russia is hurting like venezuela and nigeria. they're among the worst hit by the low prices but they haven't indicated they're make anything changes to their production outlook. they're still courting a dialogue with opec. so that will be an interesting development. but i don't see it materializing. >> thank you for that. >> let's bring it back to markets here. quite extraordinary moves we have seen both yesterday but particularly today.
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let's have a look at the german bund yield which is flirting with 1% for the first time in a long time. it did touch 0.985 moments ago. it's just below that level now. september 2014 was the last time the german bund yield crossed 1%. perhaps we'll do that during today's session. significantly elevated deals across all of europe including the likes of spain and france. >> that's having a big impact on the currency markets. we're seeing another spike in today's trading session. we are higher on the day by around .75 of 1%. 11346 approaching that 1.14 level. a big short squeeze there. a lot of question marks about the actual reason this morning. it might be greece. it might be the continuation of the bund sell off we've seen in the last four sessions. >> now shares in nestle india
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hit a low. they banned the product amid allegations of a dangerous level of led. nestle says it's own tests showed the noodles were safe to eat. >> some analysts are worried that the recent heat wave in india coupled with below average rainfall may have a negative impact on the rice crop. current forecasts predict a 4% fall in rice production from the year before. joining us now is the chairman of nature foods a major rice producer in india. how detrimental is the weather to the crop? >> it's still early times and especially where you have the five rivers flowing out of the great american mountain. the majority of our business should not be impacted. it uses less water than ordinary rice and as a matter of fact
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institutions have been guiding the farmers to plant more of that and like i heard you guys say right now, 4% decrease i think that's still a long way off to be actualized and any rain fall which would come in even on the later part would make up for it. reason being, rice is a transplanted crop. as we sit right now the transplantation process is about beginning. and secondly the majority of india does have a goodwater system and those are going down. but i think right now there's very locon certain. >> of course we have to talk about the elephant in the room. the allegation of corruption of the misuse of company funds by the ceo accused of overstating revenue by more than 116% in 2014. which of these allegations is
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true or not? >> we made our statement very clear on that. we believe all these allegations are baseless. there is court so i'm restricted on my ability to talk about that. we are a real company with real revenues and real products. as a matter of fact even in the last one year right here in the u.k. we have our brand and we're doing very well. we have countries in the u.s. where we are listed but we announced major tie ups. so it's business as usual. this is just a process in making our own space.
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we're very few companies in the emerging markets. >> thank you very much for your very clear position on that. i'm sad to say we're running out of time and don't have time to discuss mr. mody's first year in office. thank you for joining us today. now let's have a quick look at u.s. futures. they are weighed down of course with this very soft day of european equity performance. s&p expected to open down 10 points. dow down 90 and the nasdaq down 30 points. >> still to come on the show sewing the seeds of a deal syngenta reacting positively to the possibility of a tie up with basf. we discuss after the break.
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implts welcome to worldwide exchange. >> here are your headlines from around the world. >> european equities turn lower as yields march higher with the cost at an 8 month high. >> also weighing on sentiment is lingering uncertainty over athens. the greek prime minister is making a counter offer to his nation's creditors. this after late night debt talks failed to resolve key differences. >> syngenta's suitors line-up. the german chemical's group
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relays an offer for the swiss group. >> dish network is in talks for a tie up with t-mobile u.s. >> good morning, everyone. it's 10:00 a.m. in london and 5:00 a.m. on the east coast. the s&p 500 seen by 10 points. the dow jones seen off by 85 points and the nasdaq seen lower by around 30 points or so. this is after stocks were higher for the third time in 8 sessions yesterday. there was a little bit of optimism about a greek debt deal. the transports index and the russell 200 up by more than 1% but dow utilities at a three month low as yields rose. also taking a look at european markets. the xetra dax off of session lows and we're seeing the ftse
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100 off by 1.4% as well. all of this is linked to bonds. >> absolutely s. big sell offs but a slight pick up because the tax had been down over 2%. bond yields tell a similar story. we're looking at 0.96 on the german ten year. it did hit 0.99 flirting with 1% which it hasn't touched since september 2014 so a big correction upward in yields and downward in bond prices. an extension of the unwind we started to see late yesterday afternoon after mario draghi spoke even though he said he was committed to european qe next year he did increase them and say volatility is here to stay. that has pulled up the ten year yield in the u.s. as well to 2.41% but the spread has
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narrowed. thus we've seen the euro move because of the change in spread up 0.66% because the german yield is moving higher. it's continuing today. let's get in a check in on markets in asia. another big volatile day out there. sri is standing by in singapore for us. >> volatility is here to stay in the china markets as well. i have been saying this for quite sometimes but nobody listens to me. but remember what this market did today. some wild rides. some very choppy moves. we're down by well over 5% in the afternoon session. the buyers flooded back into the market and this is where we close. .8%. this just underscores to me how sensitive the mainland equities market is to any kind of news of
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clamping down on margin debt. that's about 3% of gdp so that's exactly what happened today. we got news that one brokerage was clamping down on margin debt and margin trading and the market sold off. remember the other dynamic here is that few ipos are coming to market and that's bringingly quiddity away from the main board. expect more volatility in china stocks. get used to it as i have been saying for quite sometimes. back to you. >> thank you very much for that. let's just sum up some of these thoughts about market moves because even before the exat a sell off today happened we were expressing surprise that a muted sell off happened yesterday because yes mario draghi said he was increasing inflation expectations but all in all he said he was committed to european qe which would have potentially suggested we should see the qe trade ibnflated but
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it's being deflated. >> i think it was about his statement of saying jus deal with the volatility. we're not going to help you out here quite a lot. that was a little bit of overreaction but maybe this has got to do with greece and maybe this is something that we have underestimated if a greek deal actually comes through it could be a massive positive risk event for the markets and that's in part why we're seeing euro dollar moving higher. >> i disagree with that. if we saw a greek deal come through we'd see the euro recover but given that we're seeing bonds sell off that would suggest a market. the only thing that ties them together is a qe related sell off. the unwind of the qe trade and that is also backed up by european equities selling off sharply. down 1.55. it had been down close to 2%. >> interestingly enough u.s. markets were higher with the
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rise in yields. mean tile one of our top corporate stories this morning, shares are trading higher amid a report that german chemical's group is weighing an offer for the firm. it comes after the swiss chemical maker rejected a $45 billion bid from u.s. rival. so maybe this is a big positive as a bidding war emerges. the question is who has the bigger pockets? are they willing to offer more in cash? but then the other big question is the regulatory hurdles. that's a big obstacle. >> it is. do you think they'll get involved in this party. >> hard to say. >> slightly different beast. >> yeah. maybe we see other companies getting involved. buyer is another big player. maybe we see a three way tie up. question is whether these companies through these bids are betting on a super cycle and
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soft commodities coming back and whether they're buying at the right price. >> or they're desperate to do some kind of deal. what by the way does basf stand for. >> i don't know. it's a very long german name. i'll tell you after the show. >> fine. we'll see what happens on the deal. >> dish network is in talks. the price and the mix of cash and stock that would be used hasn't been agreed upon. t-mobile has a market cap of $31 billion while dish is 33 billion. deutsche telekom moving higher in german trade today. clearly bucking the trend. dish network up by 2.67. t-mobile up by 4.7. >> three german stocks in the green today. what a surprise. saudi arabia's oil minister insists supply is declining.
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we're live with the latest on opec's meeting after the short break.
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>> welcome back.
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german borrowing costs at an 8 month high. dish network is in talks with t-mobile u.s. and yahoo! wins the rights for the first game to be broadcast only on the internet. >> let's get you some commentary. the oil minister says they'll have a budget deficit in oil stays below 77 dollars barrel. other economies will have significant problems too if prices stay where they are. meanwhile the saudi oil minister played down fears in crude markets saying the supply of oil is actually declining. speaking at the meeting, he also pointed out that saudi arabia isn't the only producer in the room. trading lower ahead of the opec decision expected to keep output on hold. we know that the official targets are actually just a farce. do you think there will be any movements on those? >> i don't think so.
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they barely moved in the last several years of the financial crisis. there were three big cuts in production and then the big increase in production in 2011 but both of those sets of moves adjusted by levels already being produced. there are those within opec that would take that as a very bad signal of course. and many want a cut in production rather than emission the 31 is now the official production level. that's very interesting.
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it's budget deficit. most of these are dependent on oil and gas but they have taken an absolute battering over the last 12 months and it's exactly 12 months since we saw the new bout of volatility. before that three years. geo politics has had some effects on the oil price. do you get a sense that people are more concerned about it this time around or is that not having any influence whatsoever on the oil price at the moment? >> i think there's continual concerns as well. i asked this very question to bob dudley because he has a lot of these in the south of iraq for instance and i put it to him that the is group was only 70 kilometers away from baghdad now
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and he said there's a lot of interest out there globally that would prevent or let further advance of i.s. get to it. do you worry about improving relations with iran if you're an oil producer or worry about worse relations with iran if you're an oil producer that isn't iran because the point here is if iran gets it's nuclear deal which someone of the biggest geopolitical issue on the planet that say dovish signal in terms of price and will mean more physical in terms of the market. so geo politics can work both ways. very interesting to see there's concern among other producers about what happens when iran comes to the table but gary ross telling us he's not concerned about that. i've been writing about the differentials between the actual
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price and stated production levels and what actually happens on some of these moves. you can have a look at the piece or get in touch with me on twitter as well. >> thank you for that. still to come on the show music lovers listen up. we're talking to the company trying to breathe new life into the concert scene with an unlimited subscription service. find out more after the short break.
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welcome back. let's take a peek at u.s. futures. they're looking soft this morning. we're expecting the dow jones to fall by 82 points. s&p 500 by 10 points and nasdaq lower by 30 points. quite a lot of volatility in weakness in the european session too. >> one of the reasons we're seeing weakness is the soft european equity market as you can see. significant declines across the board. we have paired some of the worst gains. is dow is now down minus 1.4%. further unwinding of european trades. european equity markets very soft indeed. i want to bring you some flashes on greek jobless data. march unemployment rate was
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25.6% versus 25.6% in february. incredibly high still overall but not worsening from february to march. greek prime minister is preparing to make a counter offer to kred tors after they made some consensus overnight. they at odds of proposed pension cuts and tax hikes. >> we have comments coming from the ukrainian president that says there remains colossal threat of large scale military operations by russian backed separatists. more than 9,000 russian service member are on ukrainian territory. >> are you ready for football on the web? yahoo! won the rights to the nfl's first game to be broadcast
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only on the internet. they'll make the october 25th game between jaguars and bills being played in london available on all digital platforms. web browser, mobile phone or tv with a streaming device. >> if sports isn't your think maybe you're looking for the next hot music act instead. an online subscription service is launching in europe that gives access to an unlimited number of concerts by lesser known artists. we're joined by the co-founder of jukley. >> what do you do. >> it's a real world concert subscription service. so for 25 pounds a month you can go to one concert per day. two days before the event. so we're going to launch in london about half an hour 11:00 and on thursday's at 11:00 you'll see thursday friday saturday. friday you'll be able to see friday saturday sunday and you can go to these events. >> how big are the events we're
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talking about? the taylor swift concerts or something below that. >> we're designed for artist discovery. it's not designed to get you into hot sold out shows for cheap or free. it's for discovering new or emerging artists now and getting the opportunity to see them in an intimate environment before they blow up next year. >> you can hold one ticket at a time. >> yes, for 2545 a month you can bring a person with you as well. >> the problem is the number of concert visitors is finite where as when you say for other subscription based models like netflix for example there's an unlimited amount of people that can watch the show. is there a big factor of disappointment for people that sign up and go to the concert and can't attend because it's full? >> that happens sometimes but we have a wide selection. there's some hot artists. it's not always just unknown artists either. so you'll see a really great
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selection and once you're unable to get into one of them because it's full the next one is that's when you make spontaneous decisions. >> tell us where it stands at the moment. how many subscribers have you got and you raised money as well. >> we don't discuss subscriber numbers publicly. we just closed another $8 million. so we have the opportunity to grow the music business. the question is why is it not hundreds of billions. our competition is tv. why aren't people going out to more live music where artists make most of their money from live music. >> how long until you're profitable? >> who knows. it depends on how vigorous we are in our growth strategy but hopefully within a year or so we should be profitable. >> thank you so much for coming in. meantime hedge fund manager john paulson made a $400 million
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donation to harvard adding to the schools $36.4 billion endowment but it's rubbing some people the wrong way. best selling author took to twitter to rant about the donation suggesting he would have been better off helping the poor. it's going to be named the john paulson school of financial engineering. he tweeted to his 285,000 followers. he added apparently $200 million is earmarked for a satellite campus in st. barts but he says the gift is his way of thanking harvard for giving him a quality education. >> i have to say i think some of gladwell's tweets were written well but i disagree. he is dpifinggiving money away and if he wants to give it to that particular institution he may. perhaps he gives money to others and doesn't sutbout it. it's better than spending it on
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a new apartment for himself. there's other causes out there as well. perhaps he is donating to them as well and we don't know and i think the attack there was totally unfounded although sit witty with it. >> let's get to some of the tweets. next up volunteering on the store on madison avenue. let's make this truly world class retail outlet. >> his money and he can do what he wants with it. >> i disagree but commend him for some of his comedy. >> walmart is hosting media members in it's home state of arkansas today ahead of the shareholders meeting on friday. on wednesday the retail giant held a meeting with thousands of employees unveiling changes to help boost morale. these include raising the temperatures in stores to address complaints workers are too cold. they're ditching a music cd on loop in stores for months filled with silver celine deon and justin bieber songs.
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>> what music drives you up the wall when you're in stores. e-mail us at cnbc.com or get in touch with us on twitter. i have to say i'm not sure i've even noticed music in shops. do we have that in u.k. stores very often. >> abercrombie and fitch, loud music. >> no, i get more annoyed by the music in the background when you're on hold on phone calls but do get in touch with us and let us know your thoughts on that debate. >> we'll leave you with a look of how futures are trading ahead of the open on wall street. s&p 5 o00 off by 10 points. we'll be back in two.
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there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see.
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in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.
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market sell off, stocks are
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set to follow european equity lower as yields rally with the german cost at an 8 month high. >> also there's lingering uncertainty over athens. greek prime minister is making a countier offer after late night debt talks fail to resolve key differences. >> syngenta suitors line-up. >> signaling a mega merger. dish network is in talks for a tie up with t-mobile u.s. good morning everyone. it is 5:30 a.m. on the east coast. s&p 500 off by roughly 10 points. the nasdaq set to lose 30 points after we saw a positive session for u.s. markets yesterday. s&p climbing 0.2%.
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stocks were higher for the third time in 8 sessions. why are we down today? we're seeing that continued sell off in the bond markets and the ten year bund yield climbing higher, ever close tore 1%. these asset classes are closely intercorrelated today. it is off the session lows. we have got some mna speculation fuelling the stocks. t-mobile in the u.s. these markets are driven by the rise in yields. let's get to those yields. let's take a check of the ten year bund yield. it's off from the 99 basis points we saw earlier on in the session. that's a huge climb just over the last three or four days. the ten year u.s. yield sitting at 2.83%. we're at the highest levels since last november and let's
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have a look at how this is impacting the euro-dollar pair. a big spike today. 11342 is the level we're trading at higher by 0.6% on the day. massive short squeeze. >> thank you very much. extraordinary moves we're seeing today. don't expect a new apple tv box at the company's worldwide developer's conference last week. apple was planning to show case a redesigned version of the device but the company has changed it's mind. earlier this week apple said they would be unveiling it's service as it works out licensing and technical details. let's look at tam price so far in frankfurt. down 1.5%. >> are you ready for football on the web? yahoo! won the rights to the nfl's first game to be broadcast only on the internet. yahoo! will make the october 25th game against the jacksonville jaguars and buffalo
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bills available on all digital platforms with a streaming device. it will be shown in the u.s. at 9:30 a.m. eastern time and only will be broadcast on tv in the jacksonville and buffalo markets and seema had a chat with the cfo of yahoo!. seema. >> hey carolyn. yeah it's always good to get perspective from various tech leaders on the trends that we're seeing in the technology space. ken goldman himself talked about in the digital space sports being a big opportunity but we also wanted to talk about what's happening in silicon valley. the ultra sized space trags in the market also record high territory in the nasdaq. if that indicates irrational exuberance, some might be concerned but ken goldman season concerned. >> someone told me they look at some of the late rounds where the enterprise values are great and it's an interesting
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perspective that how real and some of the private valuation. the public market is reasonably thoughtful. not like the 2000 period where it was almost 100. in the private area there's a lot of nothing could go wrong perspective in some of these from time to time. the private valuations are higher than i have seen. there's a change that's going on. a few years ago what people saw in the private is this second market phenomenon where companies, employers, investors were trading on secondary markets. today that's not as prevalent. today you have very late stage. you have public institutions mutual funds investing in many companies and so you have sort
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of a different group that have different hurdle rates. very different phenomenon today than ten years ago. one last thing i'd say is you as a company, you can stay private longer. >> sure. >> because you have the ability to create liquidities for yourselves and some of your investors in the private realm as opposed to having to go public. >> a flurry of multibillion dollars tech deals. does this rise signal confidence or a sign of desperation seeking inorganic growth opportunities to fend off competition. >> one is confidence. companies do big acquisitions when they're confident about themselves and the relative evaluations. if people are nervous you see less acquisitions. the other thing is i always hear this thing about creative. it's easier when the cost is
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zero. if you're acquiring a company that has some earnings it's easier for that to be to your earnings than otherwise. the fact is the cost is relatively low. it's certainly helping the acquisition phenomenon we see today. >> of course external factors like raising rate environment could result in fewer deals a cording to experts but when i asked him about that he didn't see that having an impact on the number of deals we're seeing in the tech space. also of course the clamp down on tax incentivized deals. he remained tight lipped on that topic. he said we could see deal activity in the mobile space. gentleman other has been on an acquisition hunt over the last two years. over ten deals they have been seeing. something we have been watching in general in the technology space. >> stay with us. twitter could be an instant fit for google if they were to buy the company. that's the word from early
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twitter investor that runs venture capital investment firm. he tells cnbc google never understood social media and twitter would be a fantastic use of the company's cash. >> it's a fantastic use of google's cash. it's up to the board to figure out if that's something they want to pursue. i don't think there's any religion about remaining an independent company forever. that said i think a lot of to board members see these types of recommendation and see there's value for now. if they start doubting the prospects they'll look for the other options but from the google side it's an instant fit. >> he does have a point, doesn't he? google never really understood mobile. social that is. >> yeah in general we should take a step back and know that google has been making a series of acquisitions over the past couple of months and years.
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they have been expanding into new markets. we're still seeing a long-term decline in advertising revenue. that's at the core. that's the big challenge that google is facing. would an acquisition of twitter alleviate that situation. i'm not so sure. at this point, less is more for google. they need focus. >> that's a fair point because people don't want them spraying the cash around willie nilly. twitter aren't making money themselves. google plus and those initiatives completely failed and nailed it on video and starting to make money but they might be missing out if they don't have a social option in their ranks. >> at the end of the day you have to find a way to compete with facebook. they're winning the race when it comes to social media. you also have snap chat also taking a piece of the pie. so if google should be focussing
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on twitter maybe that's a discussion we should be having wilfred. >> thank you for that. we'll be with seema again in monaco. >> are you jealous? >> right -- i'm not supposed to say that word am i? i hope you have a lovely afternoon enjoying the weather, the boats and perhaps the casinos. i wish you luck. let's bring you a flash coming out of greece. the greek finance minister has been asked if a fifth june imf payment and he says the greek state always aims at repaying it's obligations. on going ups and downs of the greek crisis continue. now, still to come here on worldwide exchange signaling a merger. we'll bring you all the details on a possible tie up between dish network and t-mobile. worldwide exchange is back in two.
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welcome back. t-mobile u.s. shares are called to open up by 12.8%. landon has more details on why that might be. >> good morning to you.
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dish network is in talks to merge with t-mobile u.s. to combine the fourth largest u.s. wireless carrier with the second biggest satellite tv provider. the companies have yet to agree on the purchase price and the mix of cash and stock that would be used to pay for the deal. their market cap is about $31 billion while dish is worth $33 billion. following a potential mobile t-mobile chief would be the new company's ceo while dish co founder would be chairman. they still trail at&t and verizon by a wide margin. they have 13.8 million satellite customers and 591,000 internet customers. it hasn't built a network to put wireless licenses to use. deutsche telekom has been trying for years to sell or merge the company with someone else. t-mobile was if talks to be
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bought by sprint but that fell apart on concerts that regulators wouldn't approve the merger. they have become a disruptive force as the self-proclaimed uncarrier uncarrier. as far back as two years they were a possible merger partner. the company remains a potential target and dish was keeping all of it's options open. this would be the latest multibillion dollar deal to up end the industry. at&t is close to completing it's $49 million purchase of directv: if europe today, t-mobile dish and deutsche telekom are trading higher. >> basf is weighing an offer for firm. it comes after they rejected a
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deal a couple of weeks ago. >> let's remind you of the headlines. u.s. stocks set to follow european equities sharply lower. the german chemical's group reportedly weighs an offer for syngenta and yahoo! wins the rights for the first game broadcast only on the internet. we're back in a couple of minutes.
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welcome back to the show. futures not looking too perky this morning. the s&p 500 seen off by 10 points. dow jones could fall by 80 points and the nasdaq seen buff a 32 points after modest gains in yesterday's trading session. the s&p higher by 0.2%. stocks higher for the third time in 8 sessions. >> part of the reason is the weakness in european equity
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markets. a sharp decline you can see across the board. >> why is this happening? much of the european qe related trade versus been unwinding over the last 24 hours. we have seen the german ten year bund nearly touch it and pushing up the euro significantly. a lot are turning around quite quickly. let's quick focus, a panel of experts will discuss that. at a public meeting today before discussing on whether to recommend it's approval. the drug developed by sprout has been rejected twice including low blood pressure and fainting
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bells. >> stocks have been given a boost this year. speaking to cnbc he praised the newest breast cancer product. it doubled the market share since it launched in the first quarter. let's get more on the outlook for the pharma sector with the senior analyst at credit swiss. thank you for joining us this morning. the biggest event on the pharmaceutical calendar just wrapped up. that's the conference happening every year. the buzz word, immuno oncology. which company out there is best placed to benefit from the new trend. >> thank you for having me. there's a number of big pharma companies active there. the one we like the best is bristol myers. they have a couple of drugs on the market. they have a broad and deep pipeline they're working in this
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very exciting area so we think overtime this is going to move more to combination therapies combining different drugs together and with that revolution i think bristol is very well positioned. >> everyone agrees that this is the next big trend in phama but the estimates vary a little bit. citi saying this is going to be a $35 billion market. do you think that's too conservative? >> yeah we've been in that ballpark before. it's probably bigger than that now. we saw very exciting data but we're seeing signs this is going to work across the board. but in some percentage of patience with the whole variety of tumors so probably 35 or 40 is getting on the lower side now is going to take time to get there but i think there's a good chance that we're going to see even bigger numbers come up for
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this market as we move forward here. >> let's talk about the sector more broadly. health care has done well over the last couple of years. two areas within it. you have the bio tech names and of course the bigger pharma companies with various protective aspects like big yields. which of those do you like the most at the moment. >> both sectors are exciting. we see a real blend especially between the larger cap bio tech companies and far pharma. a lot of the key products are biologic and a lot of the key products for biotech companies are bills which were traditionally pharma company forte. they have more growth to offer
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and buying back a lot of shares. both are attractive if you're looking for growth. but certainly there's a lot of overlap between the two now and pharma has a lot to offer as well. >> mna has been a key driver in share prices. i spoke to the ceo of roche and she have shied away from paying top valuations for their targets. do you think this could be topping out because of the high level of valuations. >> yeah there's still more to go. the larger names that we cover like pfizer and merck expressed interest in doing deals to boost their pipelines further to try to get more of the growth we pensioned is more in biotech so i would expect a lot more deals still. especially maybe on the smaller side. maybe not the mega deals we have
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seen before but i think that all the pharma companies are looking to buy more assets and bring them in house and even oncology, having full control of the assets will be important to getting them to the market the way you want and working with payers payers. you have a little bit more leverage and pricing power. >> thank you for joining us. have a lovely day. senior able list at credit suisse. i want to bring more flashes related to dish network and t-mobile u.s. potential deal. you can see the moves on frankfurt are some what more muted than what the u.s. futures market is suggesting but positive across the board. we're going to come back and
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have a quick look at what markets are doing in europe once again. sharply lower. they had been further down but they're now down 1.5%. france is down 1.8% and the ftse 100 down 1.4. this comes along side a sharp move upwards in european yields and upwards in the euro also. now mario draghi warned markets to get used to this type of volatility in an era of ultra low interest rates. >> one lesson is that we should get used to periods of higher volatility volatility. our prices tend to show higher volatility. in terms of the impact this might have on our monetary policy stance it is unanimous in it's assessment that we should
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look through these developments and maintain a steady monetary policy stance. that's a reason for why we're seeing volatility today but he also did outline his commitment to european quantitative easing right through to september 2016. all the moves we're seeing today. euro up equity markets down. that relates to an unwinding so it's an interesting stark move in markets today. >> it is a really stark move and mario draghi is pretty brave saying deal with the volatility. we're not going to come to the rescue every single tile is so telling the market that that is quite a brave move by mario draghi. if we see a lot more tightening
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through the move higher in bund yields we're moving toward 1.5%. i think they're going to come back into the market with more verbal intervention like they did a couple of weeks ago. >> the other interest thing as well to pick up on this is when we saw european qe kick off and yields on european bullet wounds come lower they started leading u.s. yields lower as well. now over the last month or so people said it's on us to lead the world bund markets and u.s. will lead again. once again we've seen the u.s. lift to 1.4% off the back of 1 history to hit 4%. those compressed but it's europe and european bund yields leading the charge at the moment. >> completely different about a
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year ago and more much of the last couple of years. interesting too that yesterday u.s. markets didn't sell off on the back of higher yields but that future could change a little bit. they're coming back on the back of the high year yields. utilities are being sold off. financials though they're moving higher on the back of the expected rising yield environment. let's see if that trade can continue. >> one final thing don't think it's the main factor at trade today but greece continues as an issue. ups and downs in those negotiations but the main driver for european markets has been the ecb meeting yesterday. that is all we have time for today here in london. thank you for joining us. >> i'm wilfred frost. >> i'm carolyn roth. next s'up squawk box. we're back tomorrow. bye bye.
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good morning, strap yourself in for an interesting session today. stocks selling off in europe as borrowing costs there absolutely soar and global markets are getting spooked and taking notice. u.s. equity pufutures pointing to a lower open at home. and fish in talks with t-mobile and nasa will try to launch a circular technology today that could some day help land humans on mars. it's thursday june 4th 2015 and
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squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box on cnbc. you'll see at this point the dow futures are down by 75 points below fair value and s&p futures down by 10 and nasdaq down by 32 points coming a day after the stocks rose for the third time in 8 sessions. there was optimism about greece yesterday but take a look at what is happening in the european markets today. europe right now getting hit pretty hard with the dax and germany down by 1.4%. london down by 1.

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