tv Worldwide Exchange CNBC April 1, 2016 5:00am-6:01am EDT
good morning. comeback kid, the dow posts its biggest quarterly rebound since 1933. >> all eyes on jobs. the global market countdown to today's big jobs report. >> and power up. tesla reveals its electric car for the masses, and thousands are already shelling out cash. it's friday, april 1st, 2016, april fools' day, of course. "worldwide exchange" begins right now. good morning. happy friday. happy april fools' day. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> happy friday. i will say it again myself.
i'm wilfred frost. thanks for joining us. let's have a look at stocks right now. they are selling off hard. asia closing in the red, which has seen europe follow suit and down in early trade as well. >> let's show you the morning action, as we speak. first up, u.s. futures. first day of the trading day for the second quarter. starting off in the red. we're not looking at sharp declines compared to some of the action we're seei ining oversea. dow futures down 19. s&p futures down four. nasdaq futures down 11. overnight in asia, selling in china even with some positive manufacturing data in china. though, the shanghai comp managed to close flat. also reaction to standard & poor's cutting the credit rating one notch. japan's nikkei closing down 3.5%. the survey measure there disappointing. in china, that better read on manufacturing. couldn't manage to lift shares
more than 0.17%. the hang seng in hong kong down 1.3%. >> i think asian markets generally responding more to that downgrade in china than the fundamental data that we saw. the pmi slightly better in china. quite a disappointing reading on the underlying economy. what does this mean for european trade? we're seeing that slide to very much china exposed names that are suffering. again that, downgrade, which we've had the first chance to react to that, weighing on things in europe as well as asia. germany down 1.3%. the ftse 100 down just shy of 1%. let's have a look at broader markets as well. oil prices suffering a little bit. not too much. we're back around the 38 level for wti. 38.2. keep an eye on that. we're just edging away from that 40 level. still, largely maintaining a bit
of stability. the ten year treasury note, this is interesting. seeing quite a lot of buying, quite a lot of yield compression in the last couple days. we're below 1.8. on a day where we're seeing stocks sell off, the fact you're seeing bond buying is a little bit of a bearish signal. one being sold, the other being bought. >> we have a jobs report at 8:30 a.m. eastern time for the u.s. going to watch the treasury reaction to that. also have to watch the u.s. dollar reaction. we're just coming off the worst quarter in years for the u.s. dollar. a quarter where the dollar index moved lower by 4%. very unusual and a big move when you see that kind of move. we started off with the dollar versus the chinese yuan, which has really turned around over the quarter with the chinese yuan marching higher. the dollar got a bit of strength today, weaker yuan. check out the euro. overnight, over 1.14. strong euro, weaker u.s. dollar. that's been the trend lately.
stronger yen adding to some of the anxiety, certainly in the japanese market, where you saw that more than 3% decline overnight. >> couldn't agree. the euro back around 1.14 is crazy stuff begin the actions we've seen from the ecb over the last cup months. a quick look at gold prices as well. we're looking at 1235. range bound now in those low 1200s for the last couple weeks after the strong rallies in the first part of the year. now, that's the picture for today. red across the equity market screens. let's recap what happened yesterday and how that closed the quarter out. q-1 saw a stunning turnaround for stocks. the last time the dow had a quarterly gain like this in a single quarter was more than 82 years ago. we started off the year with the blue chip average down more than 11%, but it managed to stage a comeback, posting a 1.5% gain for the quarter. the s&p 500 rising 0.7%.
as for commodities, gold had its best quarter since 1986. wti broke its two quarterly losing streaks and rallied 13% in march, which is its biggest monthly gain since april 2015, but it wasn't all pretty. the nasdaq seeing its first negative q-1 since the financial crisis. the dollar rally, of course, dissipated with the index pseeig its worst quarter since 2010. risk assets bounce back from a terrible start to the quarter. >> i would add the emerging markets picture in that. that was really the stunning, e are markable rally for the month of march. just the general tone for emerging marks picked up, whether it was the rebound in commodities, whether it was the weakness in the dollar, which is a real pressure point for these emerging markets as their
currencies were selling off hard. a combination of factors came together, including a stronger chinese currency mid quarter. it all started in the middle of february and led to a rush into emerging markets. can that continue? have the fundamentals really changed for some of these eme e emerging market economies? or is it just financial conditions being alleviated in the near term and has janet yellen really just created a window, as jeff rose reason berg of blackrock, told us. how long does that window last? that's when investors have to figure out on this first day of the second quarter. >> i think this bounce back has happened incredibly quickly. we declined sharply and rallied quickly off the back of that. i'm concerned not just about the pace of that rebound, about the sentiment we're getting from people in the last week or so. many guests have sat here and told us their clients are
starting to buy stocks again. i feel like there's a sense of extrapolating from the second six weeks of q-1 and forgetting what happened in the first six weeks of q-1. i don't see the fundamental reason for that optimism. the only real change we've seen, of course s a change in fed sentiment. now, that's important, but only in short term. >> the chinese data has got an little better. >> it has improved. >> it's not all clear. >> the monetary policy was not enough to improve the situation there. they've eased the monetary policy significantly. it is starting to see a bit of delivery. i don't think that's good for them in the long term. >> it'll be a test of the central bank's efficacy and the long lastingness of their policy. if you think about q-1, we got easing from japan, easing from europe. we pretty much got easing from the u.s., even though they didn't make any policy change. she really changed the tone and the scale of what the fed was looking at doing, really pulling back on interest rate increases. we'll see if it has a larsing
effect. >> are we still just rallying on central bank policy? >> we're going to talk to our guests about that. we're going to wrap up the trading week with a slew of economic data. at the top of the list, of course, the march jobs report. nonfarm payrolls due out at 8:30 a.m. eastern time. that's followed by another key indicator here, the march ism manufacturing index. we'll also get consumer sentiment and february construction spending at 10:00 a.m. if that wasn't enough, march auto sales will be trickling out throughout the morning. more fed speak as well. loretta mester talking about the economy and monetary policy this afternoon. and blackberry reports results before the opening bell. the ceo will be on "squawk on the street" to discuss those in the 10:00 a.m. hour. it is jobs friday. just about three hours to go before the numbers are out, which could set the tone for trading on this first day of the second quarter and beyond. our landon dowdy joins us with more of what to watch within this report. always a big one. >> hey there.
that's exactly right. although it falls on april fools' day, it's no joke because it looks like we'll see another solid month of hiring. here are three things to watch. first, the numbers. the unemployment rate is forecast to hold at 4.9%. the consensus estimate is for an increase of 213,000 jobs to nonfarm pay trorolls last month. there's a chance plouemployment comes in on the soft side due to the warmer weather from el nino. seconds, the sectors. we should continue to see solid hiring in most sectors, but watch for more layoffs in the energy sector. and the third thing to watch, the risk while unemployment is low, there's still underemployment. back over to you. >> thank you. i'll be watching that labor force participation rate, which has started to tick up.
it's remained stubbornly low throughout this recovery. last month it went up to 62.9% from 62.7. that was good. will it continue to rise? >> i just think if we get a number that beats expectation, do we suddenly lose the confidence in the rally we had? because of course it was based on dovishness. >> maybe janet yellen will have to go faster than she wants. >> certainly one to watch today perhaps more than ever. today's corporate stories. late last night, tesla gave a sneak preview of its lower priced electric car known as the model 3 sedan. the automaker announcing more than 130,000 people had already ordered the car, even though it is more than a year away from production at least. >> so when are deliveries? well, they're next year. [ applause ] so i do feel fairly confident that it will be next year.
>> yesterday tesla believers queued up outside showrooms around the world to put down a $1,000 deposit for the car. starting price is $35,000. a viewal product for tesla as it seeks to grow and maintain its lofty stock price. >> that's near us. it's on west 25th street. >> is that right? >> in manhattan. when i think is interesting is it's not just tesla believers, it's newcomers. the price point is so much lower at $35,000. now more people can afford teslas. it was sort of an apple moment. >> shares rallying in anticipation of that launch, up another 6% in premarket trade today. a nice looking chart over the last month. >> oh, yeah. stocks to watch today besides tesla, marvel technology says it will miss the deadline to file its annual report and warns it will post a big loss. last month the chip maker, which is under investigation for its accounting practices, said an internal probe found a series of issues tied to when revenue was
actually recognized but hadn't found any evidence of fraud. keep an eye on that one. the fcc says it won't investigate netflix for throttling or lowering the quality of video for some at&t and verizon customers. chairman tom wheeler says netflix's conduct was, quote, outside the net neutrality rules adopted last year because the fcc really isn't regulating websites. last week netflix admitted to degrading picture quality for mobile customers because of data caps. urban outfitters says same-store sales in the first quarter are positive so far. in february, the retailer reporting flat fourth quarter sales but expressed optimism about the spring season, giving the stock a nice little 2% pop here in the early action. more stocks to watch. sanofi and regeneron say their experimental drug have proven positive. if cleared by the fda, it would be the first approved systemic
treatment for the skin condition. boeing has won a $326 million contract from the u.s. air force to build 15,000 smart bomb kits. the kit adds precision guidance to conventional bombs. the contract also covers technical and field support. american airlines is dropping its policy of allowing customers to hold a reservation for 24 hours without paying. instead, customers who buy a ticket will have 24 hours to cancel it without being charged, which is already standard at other u.s. airlines. the switch goes into effect today for tickets bought over the phone. both policies much better than you get for european airlines. >> are they? really? when we come back, happy birthday, apple. the tech giant turning 40 today. have a look at what the firm has achieved. 1 billion active apple devices in the world. and our twitter and facebook question of the day. what would you wait in line for? the tesla model 3, as we just
saw, iphone's new se, krispy kreme's new donut sandwich, or perhaps something else. >> don't limit yourself to that. let us know what you've queued in line for before. as we head to break, the dow components that rallied the most last quarter. verizon, a nice 17% bounce from the bottom. stay tuned. we're back in a couple minutes. much more to come. legendary filmmaker. are you a film buff, watson? no, but i am studying the visual storytelling in your movies. you know, it's amazing how much information is contained in a single image. one visual can make or break a film. i am analyzing images for factory managers, sales people and healthcare professionals. that's good watson. but not exactly movie material. perhaps the healthcare professional could be played by matt damon. you're learning, kid. you should have quit while you were ahead.
32 years at this place and i've got 9 days left before retirement. look jim, we've been planning for this for a long time. and we'll keep evolving things. so don't worry. knowing what's on your mind and acting accordingly. multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.
welcome back to "worldwide exchange." the bidding war for starwood looks set to be over. in a surprise move, china's anbang insurance walking away from its $14 billion offer, clearing the way for marriott to take over the hotel and resort operator. any idea on why anbang is walking? >> reporter: what a surprise move, sara. it was really surprising for many people here after a three-week-long bidding war with marriott that anbang would suddenly pull the plug on its bid. overnight, basically late yesterday for you guys, the company said it made the decision because of various market considerations. overnight in china, we had a little bit more clarification. the funding partner of anbang said that the company just didn't want to get into a long, drawn-out battle. he reassured everyone who was reading this e-mail that the company does have a very strong financial position and could
continue to pursue these large types of deals. however, he said they had to be done in the right terms and in the right way. investors generally have been concerned about the funding of this deal. whether or not they could even verify the financial position of anbang. anbang in china is really known as this very secretive, politically well connected company. the chairman is married to the granddaughter of the paramount leader here. he was trying to actually address some of the concerns about the finances by speaking in a very rare interview with chinese media this week, saying that the company had assets in excess of 1 trillion. still, many investors are concerned about the murky nature of the financial structure at anbang. one other concern that has been raised here has been the regulatory issues that anbang can face not in the united states but here in china.
that's because foreign investment for insurance companies is actually limited to 15% of a company's total assets. as you guys know, anbang has been on a massive shopping spree globally. >> we'll see if they go for another hotel chain in the u.s., potentially one that doesn't raise as much of a high-drama bidding war. it's apple's birthday. 40 years ago today steve jobs and steve wozniak founded apple computers, and the firm impacted the world beyond anyone's imagination. today there are 1 billion active apple devices around the world. there are 11 million apple developers. the firm is responsible for 2 million jobs in the u.s. alone. over 4 million in china. in terms of market cap at its current levels, apple is bigger than intel, ibm, cisco, and adobe combined. as for how products have changed over the years, take a look at
how the personal computer has transformed from the apple i to today's mac book air. remember, of course, ipods having all of your music in your pocket was all the rage. now you can basically do anything on your iphone. the first edition was released in 2007. look how far it has come. we've all got one. >> not everybody. a lot of people still have samsungs. >> i mean, 40 years. what an amazing history. still to come on the show, donald trump is struggling, perhaps, to regain footing in the gop race after a stumble this week. will it cloud his path to the nomination? we've got the latest from washington. but first, let's get to today's national weather forecast from the weather channel's jen carfagno. >> sara and wilfred, we finally made it to friday. we've got a strong front continuing to cross the country. heading over to the east coast today, bringing showers, thunderstorms to new york city, possible severe weather again to the south. had a busy day yesterday with a lot of wind and hail. that will be the kind of active
weather we see today. don't get fooled by this front coming through. it is april fools. we will see another chance of showers coming in. that into parts of texas today. after the front goes through, it kind of waves up through the southeast and brings more showers by tonight. so two rounds, morning and afternoon. west looks fantastic. fabulous weather in the northwest. temperatures running above average, in the 70s there. the cool air is in the midwest. and this is on the move for the weekend. enjoy these 70s despite the rain in the northeast and south. things are really cooling down, going well below average starting this weekend. that's your latest coast-to-coast forecast. i'm meteorologist jen carfagno. "worldwide exchange" continues after this. this car?
came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else livehe life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov. you can fly across welcome town in minutes16, or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing,
some sad and shocking news to pass along today. world renowned architect zaha hadid died suddenly in a miami hospital yesterday. her firm says she suffered a heart attack while being treated for bronchitis. born in iraq, trained in london. she was among the world's elite so-called starcitects. her work includes that sleek railway station in austria. zaha hadid was only 65 years old. so many more iconic projects, including one she was building in new york city, a residential project in chelsea. >> indeed, very sad news. let's get you up to speed on the market action. futures at this hour pointing lower, although only slightly lower relative to some of the
losses we've seen elsewhere in the world this morning. we're expecting the dow to open down by only about 17 points. the s&p by 3 1/2. the nasdaq by ten. as for those losses around the rest of the world, let's have a quick look in on trade in asia. sorry, europe first. down 1.5%. france down 1.5. very much reacting to the fact that china had its credit rating downgraded one notch by s&p late last night. this was the first chance for markets both in europe and asia to react to that. if we look at asia trade, you'll see japan was down sharply, over 3%. disappointing manufacturing survey. >> european stocks have just wiped out their entire month of march gains this morning, if this selloff holds. they only gained 1.1% in the month of march. right now we're down a little more than that. >> and they didn't get back into positive territory for the quarter as a whole. >> really lagged the u.s. let's get to politics. donald trump is trying to regain
his footing today after a verbal stumble earlier this week. trump's republican rivals are now attempting to capitalize. nbc's edward lawrence joins us from washington with the latest. >> reporter: good morning. in fact, the politics here is not even as stable as the markets there in europe. even governor john kasich is attacking donald trump, something he's not done in the past. the other candidates sense an opening. donald trump gave the thumbs up after meeting with the republican national committee, but he's in trouble with female voters over what he calls a misstatement about women being punished for an abortion. >> that's not the way that you should view women. >> i actually think he's an idiot. >> reporter: his republican competitors piled on. >> he's really been way off kilter and showing he's unprepared to be president of the united states. >> reporter: still, other wisconsin voters won't abandon the republican front runner. >> i think our country needs somebody that can turn things around. >> reporter: trump's meeting at the rnc focused on unity within
the party. trump also met with his foreign policy advisers in washington yesterday, sticking to his stance on nuclear weapons. he says his advisers agree with him. you don't take nukes off the table. meanwhile, hillary clinton remains focused on her electability. >> i have 1 million more votes than donald trump, and i have 2 1/2 million more votes than bernie sanders. >> reporter: but bernie sanders keeps hitting his message on corporate contributions. >> $25 million from special interests, including 15 million from wall street. >> reporter: both front runners would like the primaries to be wrapped up, but their competition won't give up. and donald trump says that he will release the names of the foreign policy advisers he's working with later on today. back to you, wilfred, sara. >> edward, thank you very much. an update on efforts to hike
the minimum wage. in new york, the minimum wage will go into effect by 2019, while phasing in the increase over longer periods of time in long island and westchester. california will increase by 2022. los angeles and san francisco already had plans to pay that level by 2020 and 2018. still to come, how will today's u.s. jobs report and the fed's overly cautious tone on raising rates impact global markets? particularly emerging economying. jeff dennis, the head of global emerging markets equity strategies at ubs gives us his take next. as we head to break, check out last quarter's best s&p 500 performers. "worldwide exchange" is back in a couple minutes. cathy's gotten used to the smell of lingering garbage...
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good morning. big reversal. the dow posts its biggest quarterly rebound since 1933. countdown to today's biggest jobs report coming up. and jay-z goes to court. we'll tell you about that. it's april 1st, 2016, april fools' day. you're watching "worldwide exchange" on cnbc. good morning and welcome to "worldwide exchange" on cnbc. april fools' day. more importantly, happy jobs day. i'm sara eisen. >> and happy friday generally. the weekend is here. i'm wilfred frost. thanks for joining us.
let me echo those wishes of good morning to you all. let's check in on global markets this morning. futures are pointing lower, although not to the same extent as we've seen declines in europe and some markets in asia this morning. the dow is called lower by 27 points. the nasdaq by 14. the s&p by five points. let's also look at asian markets. they're starting the new quarter on the back foot as japan's tanken survey disappointed. the market selling off, as you can see. >> one-month low. >> in china, we also had some decent manufacturing data, which has helped the shanghai composite, as you can see. in general, the chinese markets and lots of asia reacting more to the downgrade that s&p applied to china's outlook, which was yesterday. this is the fist chance they've had to react to it. quick look at european markets.
they're in the red quite significantly so. down 1.6% for the dax. bear in mind these markets did not end the quarter in positive territory. they're still down. they didn't have the bounceback that u.s. markets had. >> and today's losses wiping out the gains from the month of march so far. let's show you the broader market picture here at this hour. oil prices are declining, down 0.6% on wti, $38 a barrel. we're just hovering above that level. brent crude oil is above $40 a barrel, but just barely. down about 0.7%. nat gas under pressure as well. there's been a lot of buying into treasuries lately. we'll see what happens on the jobs report, but pretty much we're watching that 1.80 level now. the u.s. dollar continues to weaken. that's been the trade ever since janet yellen has come out with her new cautious tone. overnight, a little bit of strength against the chinese yuan. perhaps setting a negative tone there. though, the euro continues to rocket higher. look at that.
1.1401. it has shot up more than 4% over the last few months. weak dollar, strong euro. that's good for u.s. exports. the japanese yen, though, has strengthened. that could be one of the reasons why we saw that sharp slide in japanese exporters and stocks overnight. the british pound under some pressure against the dollar. sort of a mixed picture in currencies. gold coming off its best quarter since 1980s. weakening a bit today. we'll see what happens. everything could change at 8:30 a.m. that jobs report. it was quite the turnaround for stocks in q-1. the last time the dow had a quarterly gain like this from a quarterly slide like we saw was more than 82 years ago. we started off the year with the blue chip average down more than 11%. look at that run-up. managed to stage a comeback, posting a 1.5% gain. >> look at that chart. extraordinary. >> and the s&p 500 rising 0.77%. if you asked us when we were sitting here in january after the worst start to a year ever
for stocks, whether we could close in positive territory for the quarter, that would have been hard to conceive. the question is -- it was on low volumes, so it wasn't exactly a high-conviction rally. it was cautious. >> the first february bounceback was still higher volumes. i think the amazing thing is how quickly we've recovered those losses without clear reasons why we're bouncing back, other than bottom feeding. >> well, there was some fed data. we were sitting here at one point going, is the u.s. going to go into recession? it did seem like there was a fundamental correction there. as for commodities, gold, best quarter since 1984. wti oil breaking its two quarterly losing streak. rallied 13% in the month of march, which is its biggest monthly gain since back in april 2015. but it wasn't all pretty. two notable losers. the nasdaq seeing its first negative quarter. i did not realize this. since the financial crisis.
ended down slightly but still lagged the other three. >> first negative first quarter of the year. >> good point. the dollar, worst quarter since back in 2010. >> the other negatives worth pointing out, europe didn't recover its losses. it was still down. the likes of japan as well, which i think highlights the central bank influence on the rally. the u.s., clearly the fed became more dovish. where we saw questions about central bank policy, particularly in europe and japan, particularly about the efficacy of what those central banks are doing, we didn't see a stronger rally, and they didn't end the quarter in positive territory. that's an important thing to bear in mind. yes, there was improvement in data in the u.s., which had something to do with it. elsewhere, where there wasn't good fundamentals, it's more central bank based. >> agree. and you had other factors line up with that, including stabilization of commodities.
oil really got off that $20 a barrel level. we were in the mid-20s. we also saw this emerging markets rally, which we'll talk about. we also saw the data coming in better. corporate profits are going to be the big question going forward. >> indeed. there's been lots of data already this week, of course. at the top of the list, the march nonfarm payrolls report comes out at 8:30 a.m. eastern time today. unemployment is forecast to hold at an eighty-eig-year low of 4.. also look for march auto sales numbers throughout the morning. cleveland fed president loretta mester is speaking about the economy and monetary policy this afternoon. blackberry reports results before the opening bell. so lots to watch today. >> one of the biggest questions going forward, what is the outlook for emerging markets? coming off a 13% gain in the month of march. the currencies are back on the rise. will it continue? joining us now is geoff dennis.
can you justify a rally in emerging markets continuing based on the fundmentals right now? >> no, we don't think you can, to be honest. we think a lot of this move that you've had over the last, in particular this month of march, but also since the low in january has got everything to do with the weaker dollar, bouncing commodity prices. that's tied, of course, to the weaker dollar. you were just discussing on the program some easing concerns about the global economy. we're not seeing any particular pickup in emerging market growth prospects. we see this more as kind of a typical knee-jerk reaction to a softer dollar and the rebound in commodity prices. >> in which em market has the rally been most overdone in the short term? you look at somewhere like brazil. is the rally there sort of presumptuous to political issues? a long way to go until we're confident that the political situation is sorted.
>> yes, i can't talk about the political situation itself in brazil, but we think both brazil and south africa are two markets which have benefitted from this move into risk. we think in both cases those rallies are overdone. i think that's particularly the case with respect to brazil, where obviously you've got a political angle to it as well. the brazilian equity market is up about 50% in dollar terms because the currency has rallied as well since late january, and we think that's overdone. the economy is still deep in recession. the political situation is not yet fully resolved. and we just think everyone's got too bullish. similarly, high-risk markets like south africa, which is very expensive still, and there's a risk of a downgrade of its rating, debt rating to subinvestment grade in our view. that's also gone overboard in
the short term. >> let's talk about china. there's a lot of confidence that the currency has rebounded. it's not falling every day out of control as it did at the start of the year. even though it ended the quarter up a couple of percent, is the fact that the currency is moving at all still a worry? ultimately, this is something that's meant to be pegged. >> yeah, but it's pegged now not to the u.s. dollar but a basket of currencies. this is what the confusion has been in the markets. in december, they formally moved the chinese from pegging against the dollar -- perhaps we shouldn't say pegging. fixing on a daily basis against the dollar to fixing against a basket of currencies. therefore, when the dollar is strong, the chinese currency will go down against the dollar. the gyrations we had at the beginning of the year, which were a big source of concern to markets, were probably driven by the fact that earlier in the year the u.s. dollar was strong still.
with the dollar weakening, china has strengthened against the dollar. the key issue behind your question, of course, is there going to be anything more dramatic than this? are you going to get a major devaluation? we don't think this at all. we think these moves reflect the overall trends in the u.s. dollar. >> geoff dennis, thanks for joining us this morning. a negative view there to start the quarter on e marriaging markets from ubs. today's top trending stories. we start with jay-z suing the original owners of his tidal streaming service for allegedly inflating subscribers numbers. the rap mogul brought tidal for $56 million as a challenge to spotify. now jay-z is saying they went through the numbers, and the norwegian firm grossly overstated. i think it was half a million. >> the need he has to bring this lawsuit, which if it's true obviously is fair to do, doesn't help his ability to relaunch it and gain subscribers.
it's a bit of negativity around it. we're not doing as well as we thought. >> though he does have kanye. that's the secret weapon. amazon is tripling the number of its instant order dash buttons to more than 100. the buttons are tied to a specific brand and let customers instantly place orders for detergent, paper towels, and razor blades. the latest brand additions include lysol, purina, and trojan. >> have you ever seen these in action? >> no. >> it makes it look so easy. you have to pay for the buttons, but then you get it back in your first order. krispy kreme is introducing a donut ice cream sandwich. it will start in jjapan. they always get the cool food releases. what could be better? they're starting with vanilla and raspberry. >> joe and i would be all over that, no doubt about it.
when we come back, today's must-read stories, including ge's attempt to make a great escape from being under u.s. regulators' thumbs. and as we head to break, let's show you the nasdaq. saw its first negative first quarter since the financial crisis, but some of its components still managed to rally. here are last quarter's best nasdaq performers.
welcome back to "worldwide exchange." now for our must-read picks of the morning. i went to "the wall street journal" review section by the ed board titled "ge attempts a great escape," talking about the financial stability oversight council after metlife was let out of its systemically important financial institution status. ge has aplid for one as well. this piece says the council should give it to them. the council has also consistently failed to tell companies exactly how to avoid the systemic tag and all the compliance costs that come with it. this is naturally fed suspicion that the bureaucrats are less interested. says the reason why metlife won the case is that the council could not make the legal reasons in court of why it should be systemically important. and ge has an even better case,
according to this piece, because it's managed to shed most of its financial assets and turned into an industrial conglomerate. >> i have to say, though, sara, this was a slightly lazy must-read pick, simply because it's the shortest article i've ever seen. it's like two paragraphs long. >> i didn't know that when i picked it. i just thought it was timely and topical. >> you basically just skimmed. >> lazy on a friday. >> on the eve of your bachelorette. you can do that. my picks is in the "financial times." you can be critical of me because, a, it's the "financial times" again, and it's on brexit. it's titled "a british breakaway would hurt its european partn s partners." so far the focus has been on the pound and what this would do to british business. i think as we get closer, the focus will also be on the euro and on the implications for countries in the european union as well. the big net beneficiaries to the european project are france,
germany, and the u.k. france and germany would have to pick up more of the slack. it wouldn't be good for their economies. more importantly, as this article outlines, what political pressures this could spark. if britain left, does it start to unravel the wider european project, and what does that mean? it's just an important extra factor to consider as we approach june. >> economic weakness in european countries. >> and political weakness more so. there are economic factors too. for exampl the amount of spending that france and germany would have to pick up. that balance of who is net fin fish ar -- beneficiariebeneficiaries. >> we're at 1.14 right now. for now, it's all about the dollar. >> true, definitely. but also look at the euro-sterling exchange rate, not just against the dollar. we're approaching the top of the hour. that means "squawk box" is getting ready. becky quick joins us from new york with a look at what's coming up. have you got more puppies today? we were so jealous of that yesterday.
>> those were my favorite guests of all toime. i didn't get to take any of them home. my husband's allergic to dogs. he's vetoing it. i think he's maybe allergic to walking dogs. that may be part of it too. we have a lot coming up. you've been talking about the jobs report. that's a huge deal for us today. it's at 8:30 a.m. eastern time. we have lots of guests who are going to be here ahead of that and during the jobs report and afterwards so we can get reaction to it too. it's going to be a big topic of conversation for us today. the other huge story is anbang insurance, what it's doing with pulling out with that bid it had for starwood. that's a huge story because it raises so many implications about what we can think from these chinese firms. are they ready for the big time with m&a? we have the ceo after marriott, which is now going through with its former bid for starwood before anbang got involved in all of this. he's going to be joining us today. he's very excited about this deal and thrilled they're going
through. but anbang, just by being in the race, managed to get that bid a billion dollars higher. so we're going to talk to him about that too. it's certainly been an interesting, intriguing story we've been following for the last couple weeks. we're excited to have that today too. >> what a surprise twist last night. that sounds good. >> guys, has anybody pranked you yet for april fools? >> don't remind sara. mine is coming up. >> no, we haven't so far. >> yesterday they sent us a guest list with every guest they knew would drive us crazy. and it did. >> i want to know who's on that list. >> i'm not going to say that. it wasn't puppies. let's say that. but they sent us a preliminary guest list. i was like, what is this? turns out we got pranked a little early. >> that was a good one. >> becky, thanks very much. coming up, the march jobs report expected to show another month of solid hiring. but there are plenty of numbers beneath that headline. we'll help get you ready with david rosenberg next on "worldwide exchange." new york ,
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welcome back to "worldwide exchange." let's get to what everyone will be watching today, the jobs report. joining us with his expectations is david rosenberg, chief economist and strategist at gluskin sheff. thank you for joining us. so much of the rally we've seen in recent weeks has rested on a more dovish fed. could today's number change that if it was much stronger than expected? >> well, i suppose that if it came in much stronger than expected and seeing it's still broadly a data dependent fed, that it could alter expectations. but my sense is that i'd be lining up on the under. i think it's probably going to end up ratifying janet yellen's extremely dovish tone from the other day. >> what about some of the other indicators that wall street is
watching within that report? february was a weak month for wage growth. is that set to pick up at all? >> well, you could find, you know, the wage numbers have sort of been bobbing around month to month. the year over year trend is locked around 2.5%. wages are going to grab some attention. as you mentioned already, the participation rate. i think the part-time, full-time split. we focus on nonfarm payrolls in the headline, but remember that the labor conditions index, which is janet yellen's baby, has 19 different ingredients in there. quite a few of them come up in today's report. i think the workweek is going to be really important. i'll tell you what really has me nervous about the data. this divergence between what the business outpresident the economy is generating and the labor input into that process. the fourth quarter, we had 3% labor input growth in total. only 1% business output growth. you go into this march number today, you got aggregate hours
worked. we know the gdp tracker is running at 0.6. there you have roughly minus 1%. i don't expect that ceos are going to sit back and allow their margins to get cannibalized by declining productivity. i think there's going to to be some realignment here between what the economy is actually doing and the labor market. so my sense is that even if today's number comes in okay, it's going to look a lot like the retail sales number we got for february, which is that it's going to contain some downward revisions. i would say the most important number today is probably going to be the workweek. that's truly the best leading indicator for what we'll see. >> very quickly, two spots of weakness have been manufacturing. we have also seen weakness in terms of hiring for oil and gas sector and mining. yes, oil rallied from 25 to 40 during the quarter, and the dollar weakened substantially, but is there a lag? are we going to see job
improvement as a result of those moves? >> as we've seen in canada just lately, we've seen a turnaround in manufacturing. that was after a three-year precipitous decline. the lag between the dollar and manufacturing is not measured in weeks or months. it's really measured in years. i expect the clouds will part. it's not going to to be, you know, through the spring and summer. it's going to take some time. >> david, thank you for helping us get ready for today's big jobs report. >> about a minute left in the show. we want to highlight what we're watching today. it comes down the nfb. >> jobs, jobs, jobs. so much under the hood. how about underemployment, that so-called u-6 rate. it has com down a bit. it's in the 9% region, which is good. best since 2008. needs to come down even further. >> futures at the moment pointing to a negative open. keep an eye on nfb. that will be live on "squawk box" at 8:30. i'm also watching sara's snap chat feed this weekend for her
good morning. it's jobs friday, again, groundhog day. we have predictions for the data and how it will affect the fed's rate hike plans or no rate hike plans. we'll have that straight ahead. and it's the first day of the quarter. the dow coming off its biggest rebound since 1933, but global markets are under a bit of pressure this morning following a selloff in japan. and tesla unveiling its electric car for the masses. more than 130,000 people have already put down their deposit, but i don't even think production starts until next year.
friday, april 1st -- yep, and i don't know if we have anything plans. they already fooled us with the rundown. "squawk box" begins right now. live from new york, where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we're counting down to 8:30 a.m. eastern time. that's when we get the march jobs reports. forecasters say the economy probably added 213,000 nonfarms jobs in march. the unemployment rate is expected to hold steady at 4.9%. check out the u.s. equity futures. they're down a little ahead of this. the dow was down yesterday by 30-some points. you can see this morning the dow futures are down by about 43 points. s&p futures off by seven. the nasdaq down by 17. that pales in comparison to what we saw in japan overnight. stock there is selling