tv Street Signs CNBC April 4, 2016 4:00am-5:01am EDT
good morning, everybody. welcome to "street signs." i'm louisa bojesen. these are your headlines. telecon stocks in paris suffering double-digit drops after line hangs up on talks and disagreements with the french governments. more than 1 million files disposing now dozens of leaders and apparently vladimir putin is in a circle. in a circle to hide the wealth of what is being called one of the state police ever. simply nonsense. negotiations over a new bailout.
and a new warning from donald trump who says that the u.s. is heading towards a, quote, very massive recession. hi, everybody. good to see you. good morning, a fresh start to the week. it's monday, of course. i'm glad you're here with us on "street signs." i've got quite a lot of news this morning. european markets are relatively flat at the moment. flat to a couple points lower if anything stock share to 600. we had had a solid week last week. a mixed and very strong mark. jobs numbers we'll talk about that later in the show. european markets, flattish, stoxx 600 with the trend a couple of outliers. and cac and ftse a little lower at the moment. speaking of things trading a bit
lower. tie-up talks have collapsed sending telecom shares in paris sharply down. they had to be going to buy the french euros. and the price slashed by 25%. a number of banks have done similar moves as well. pierre-gauthier is calling in from paris. pierre, good morning. we're on track for the biggest one-day loss in 17 years. what's your reaction to this deal falling through? >> well, it was a highly politically charged discussion that bouygues has had.
with the collapse here really in the last few minutes from late last week on the total disagreement with the french government, wait they were looking at things. the drop that we're experiencing for the likes of bouyuges. we have found orange to be different, to the extent they remain the largest player and really know how to drive the compensation situation in france. >> so you're saying that you think the deal collapsing, it was purely political, purely on political grounds? because you had other companies that were ready to step in and one could have argued that from
a regulatory prospect, you could have found a solution? is. >> well, as far as we understand, the regulatory standpoint has not been addressed, it was not officially addressed as of last week. and the real point was, wait, that buoyeus would have had anothers and would have been partly in shares from orange. that obviously changes, orange and the french government seems to be not so happy with the outlook. for the situation with orange. that what is i said was the angled rate. >> what do you think happens next. as you yourself mentioned there's still quite a lot of valley to be. orange one of the biggest players out there. how do you think things are going to progress in this particular place? >> well they have a big smile on their face because it looks like
this will be for quite a bit of time, therefore, prices in france should remain low. the other side of that coin is that price, already very low. so we do not expect a sharp drop in telecom prices in france in terms of the compensation has not done a lot of work. the big question mark is very much if if bouygues can find a french buyer, across borders or across european borders for noneuropean buyers. and then there's a big question of india. so the position in france, will not invest more in france, but might just choose to go for assets which could be from '02 and 03. >> so they'd be venturing over
here into the uk? >> they could. >> how about a company the other mentioned. >> that one looking quite good from the point of view from the outflow. it's a hugely geared company. and it's prime company even more geared. the way it has been for the look of it for this year looks pass can extract at current tell low comprises. so it doesn't look like the one that's suffering the most. with the stock markets, they may react because they're highly geared. >> pierre, thank you very much for your time here. pierre gauthier, foundingpalpha.
11 million newspapers shared have revealed how the world's richest people hide their wealth. 12 have been complicated including russia's vladimir putin as explained on cnbc earlier. >> we found a network of people around vladimir putin. they are moving approximately 2 billion through offshore companies and banks. and it's extraordinary. they're moving hundreds of millions of dollars at a time. they're taking money from a subsidiary of a russian-state bank. they're grabbing interests in major russian companies. and although we never see vladimir putin name in the documents themselves, these are people who are very close to him. and who the u.s. government have identified in one case as putin's cashier. >> now, iceland's prime minister
has been identified. and it shows the prime minister and his wife have an undeclared interest in iceland's banks. he said he hasn't broken any rules and he and his wife, they did not benefit financially. now, richard kelly is here at the top of the hour, he's head of global strategy at td securities. good morning, richard. quite a big story. 11.5 million documents, the biggest leak ever. do you think it's going to how we view the world leaders? how we view vladimir putin and other institutions that are being mentioned in the documents? >> and certainly from a geopolitical perspective, it's a huge issue, reinforcing what's going ton try and find a lot of these offshore deals with these issues and increase their profit. >> it's no secret, the wealthy move money. that's what wealthy people do,
they move money, they try to figure out what's the best. there's a difference between doing things that are illegal and things that are legal. and just finding new polls. and pointing out that they've been accused of this and we haven't found anything wrong at this stage. >> i mean, it's just a complicated system. we learned that the day-to-day becomes very complex. trying to hide it. and to move it into a gray zone, whether it's legal or illegal. >> get your e-mails through. we'll talk about this throughout the day. get your e-mails through and let us know what you think is going on with the secret documents that have been leaked. we'll float the twitter address and e-mail on the screen. let's talk about the markets, though. you're much more geared towards. we've had a pretty phenomenal first quarter. quite mixed. a very strong march.
strong jobs, strong data. the vix fallen to the lowest since october. and the manufacturing data is okay both in the u.s. and china. what do you think the second quarter is going to look like in comparison to the first quarter? >> i think it's going to be much more interesting. we started the quarter with the fear factor. the fed tightened. everything came off. and now you're going to see how the roller coaster continues. if we can actually sustain what's going through. the positive side of what you've seen so far, the commodities rally, the equity continues to be sustained. and as of right now, it's suggesting that emerging markets is having one of the most phenomenal months and recoveries, look like they can sustain that into the next quarter as well. because the economic fundamental side has also swung in their favor. i think the caveat to that is
that they're still very captive to the flows that are going on to the financial conditions themselves. just as they can o'clock as phenomenal performers, they still have a very high data if that starts to come off. we're still very much tied to those positions. >> what's achanged for lows to come back into commodities? you can also turn around and say -- i mean, nobody has anticipated the 16% rise in gold, for example over the quarter. the gold up and some of the other commodities, china's story of the pullback in the economy there. >> well, we think there's downside in gold, downside in oil from here, those are two different stories. but from an em and perspective, you continue to get that devaluization. after three years of deleveraging of what's going on, there's still this question of how do you deleverage with value. then the fed tightening. and when you get to that point, a lot of tightening that comes in tends to work itself out to
about ten months of the fed cycle. you can sit there and say the fed started since december and realize it was tightening and say we're actually much deeper into this and that's why thing, so bad. i think that's part of the question. you've got a valuation story and the short term, you have a fed whose message teams to be we're going to be tightening at a slower pace than expected and a more protracted period of time. >> okay. you're with us for the first half of the show, half an hour. by all means, get involved. end questions through e-mails. streetsignseurope. and @streetsigns. @louisabojesen. we'll tell you why wikileaks support is raising tempers in greece. also, we're talking about the tesla, they're shifting the fast lane, shifting into high
hi, everybody. welcome back to "street signs." orders for the new tesla model 3. they've gone past $10 billion. that equates to 276,000 cars. now, you need to put that up against, right? it's a huge milestone for tesla because their total revenue for 2015 came in around $4 billion. the vehicle is not due to hit the road until 2017, though. but there's a lot of hype surrounding it. tesla having had a little bit of a run as of late here. in the past , this year on its own, i should say, since the
beginning of the year were pretty flat. and time to team up with a private equity firm to buy yahoo!'s income assets. the firm is looking to boost and seeing yahoo! as one way of doing so. sources cited by the new hampshire say that softbank is in talks with yahoo! over asian assets. good morning, jeremy. >> good morning. >> tesla, they look like they completely underestimated the demand for this new vehicle. a lot of people saying that tesla still has a lot to do with the cash flow. how do you view them? >> first of all, i view them as an automotive company. i've spent a lot of time looking at it. but turning that data up on that head, and actually the sector where there is a lot of staid
old companies, they've actually had innovation. and they've done very well so far. >> and again, $10 billion is the amount for the new model. $4 billion that was the overall revenue for 2015. do you feel we have more to go here? are we looking at bubble territory for some of the stocks? >> it's certainly interesting, within the automotive industry this should be a blue time. if there's one area that doesn't benefit, you're seeing that sort of demand, even with buys situated in the longer term future. >> and there's a big switch taking place in the sector, i guess you could read this demand as being that, right? >> what we're seeing here in the markets isn't going to persist. this is the still the long-run answer, long-run answer for the industry. >> how about yahoo! and the
changes they've been making. they've been going through the change with the management. >> it's been long. >> what i struggle with yahoo! other than the alibaba assets. i mean, they were one of the original internet darlings. but the internet has moved on and demographics has moved on to using newer platforms. google, facebook, and i just wonder what the value of yahoo! against alibaba actually is. and i imagine, they've got an older demographic user base. the point of having an older demographic user base, unlike some industries where as we get older, we start to outside what older demographics use, we don't do that on the internet. i think we stick with what you use, what you like bhaund have a good experience with. so there's no way for them to grow their user base. >> you're a fan of google,
facebook and apple? >> yes the three largest holdings. >> why should we continue to buy into these story, the one-trick pony, apple time and time again? >> yes. >> why do we know like apple? >> apple has been a great investment for years. year in year. but they continue to deliver good products. they continue to hold on to their market share. i do believe that they actually gain market share with that. and the risk of can balancizing that that low base is a relatively small risk in the big scheme of things. valuation-wise, it's very attractive box of the base and they continue to give some consumer results. i think they continue to deliver good results maybe not what they have in the past, but certainly
good returns. >> google, alphabet, that we know as google, it's a completely different company now. a company with a lot more heads. a lot more prongs? >> yes, and they've also grown up. they've started to deliver a lot more results, earnings to investors. and they've gone from being that hobby-like project that was going on in the silicon valley tie real company. and i think the market is starting to appreciate that a. and we saw that in the stock returns last year. >> continue to buy in the big cap tech stocks? >> yeah, sort of my area of expertise. but you look at where technology is at this point, i don't think you're down in terms of where the innovations are coming from. i think you've seen the destructive phase of it and innovation phase. >> gentlemen, thank you very much.
jeremy thanks a lot. the latest poll ahead of the uk's referendum with eu membership has put the leave campaign ahead of the vote. with the remaining votes at 39% with 18% the voters undecided. now, among the 18 to 34 year olds, 53% backed staying in. are we underestimating the risk of a potential brexit? >> i think we are. i think there's a natural sort of inclination to just say it's not going to happen that it's go to be too scary, people at the last minute are going to come through and say we're just not going to do it. but i think when you dig into a lot. nitty-gritty side of the polls, there's obviously a deep-seeded reluctance to buy into the sort of run on regulation. the question of how it benefits the country. you look at the natural
inclinations in terms of elections. those polls tend to be run by the turnout. so i think it sets up for it it to be closer than some realize. >> what's the trade, though in there? because, again, if i look at sterling, for example, and i think that sterling is going to continue to suffer, everybody hops in on that train. isn't there a countertrade that i should be thinking of at the same time? >> the easiest one for the uncertainty side of things from now until june that you have the under performance of sterling against a broad-based side there. i think my worry of concern you'll see markets continue to be somewhat complacent until you get to the action. you have this nonnational election where you tend to hide more extreme voters coming through. that could drive home, look, this could really happen. i think that comes from where the uncertainty comes through. from that underperformance, you're still getting rallying
government bonds. i don't think you're going to see investors fleeing the uk. it's just the question of the disruptive side of it. >> i think you've seen the bank post down. i think what's interesting from where the markets have priced the boe, there are two paths. if that referendum goes away, you'll very unlikely see that q-2 come back whether q 1 or 2, it starts to hike the deal with complete. whereas if that disruption happens the drag that you have persists and you're likely to have to cut rates and move back to qe. >> do you think we could see a bank of england stall? >> i think november is probably the most likely time. >> do you think all the central banks are waiting to see what happens and based on their hiking cycles when it comes to the u.s.? >> i guess there's only one out there trying to hike which is
the u.s. i think the issue they have, it's one week before the vote. i think that if it looks like this vote is nowhere close to going through, and it remains as easily in the lead. i think the fed probably will have no problem hiking in june. given what we're seeing in the u.s. economy side. i think they'll very likely do it. they know while it doesn't necessarily have a direct contake jcon t contake yum. we're just going back into the speculation. >> what do you think the wildcard could be here? looking back to last year. last year, the euro. and nobody anticipated either what was going to happen with regards to the china story coming back up again. greece. do you think there's anything that kind of stands out for this year? >> i think it would be the continuation of what we saw in march, in terms the inflation
on. >> caller: m. the valuations were hurt. we know that the u.s. economy looks very solid. we just know that the global economy needs time to catch up. that has come through faster than we expected. underneath the surface, thing, much better you can see things come up. for the amount of u.s. growth you can get it's very difficult to get upside there. and in the eurozone, it's very hard to get upside. it's very easy to get upside on the e.m. side of the universe knowing how low expectation. >> richard clerks head of global strategies td securities. greetings to all of you out there. you're tweeting like superstars this morning. fantastic to have you with us. more to come on the show, u.s. sales base for march showed falling shares for automakers. bmw saw 87 knew drop 13%.
mercedes-benz a drop of 1%. and the u.s. banking, statisticoil, repsol, omv also with a drop there. and ryan air has reported a 28% rise in traffic in march. it has boosted its overall traffic to over 126 million customers. coming up here on "street signs," smashing it. a dramatic finish to cricket at the world 2020 final in india. more to come, stay with us here on the program.
hi, everybody. welcome back. you're still watching "street signs" this morning. happy monday. i'm louisa bojesen. these are your headlines. telecom stocks in paris suffering double-digit talking, after orange drops talks to buy bouygues. more than 11 million secret niles exposing how a dozen world leaders and apparently vladimir putin's inner circle use their offshore profits to hide one of the biggest ever. and simply nonsense, a wikileaks. and new warning from donald trump who says that the u.s. is heading towards a, quote, very massive recession.
welcome back, everybody. we're starting off a fresh week, incidentally, also saying good-bye to a first quarter which is behind us now. a mixed first quarter. a strong march as i've been saying with pretty strong showings especially towards the end of last week. we had that better than anticipated payroll data for the u.s. very solid for the month of march. and speaking of march, just glancing at the state coming through the wires at the moment, uk march construction pmi unchanged at 54.2. it's coming in at 54.2. uk house building seeing a little bit of a pullback during the month of march. construction growth in general moderating. so edging towards the lowest in the month of march. that's construction of new homes in britain. showing that the overall expansion in the building trade held to its weakest level in
almost a year. sterling against the green back, 152. and a bit sterling by and large being driven by this refuerendu coming up on a potential brexit. and a little open on the right-hand side of your screen showing a couple of green arrows there. some bit of strength being shown on the u.s. and europe also seeing the majority of green at the moment, the ftse, the dax, the cac, all hanging on to very slight gains. now, one particular sector that got off to a very soft footing this morning, the telecom sector. tieup talks between orange and bouygues have collapsed sending telecom shares in paris is sharply lower. orange has been looking to buy their french rival for 10 billion euros. and they would have taken on agreed assets they're suffering
heavy losses as well. deutsch bank has downgraded orange from buying to a hold. and bouygues 25% as well. we've seen steady trade overnight. and still hovering around one-month lows. this after a survey revealed that the japanese company is now expecting inflation to reap further. the nikkei's thnakiko joins us. we're expecting more downside according to the companies survey. >> that seems to be the case. the result of a japanese survey shows that japanese companies expect this to be a fear 8% higher in a year's time. this is lower than the 1% from back in december. expectations don't rise much with time as the forecast in annual inflation rates 1.1%
three years later. and 1.2% in five years' time. both have inched down since december and show their results. it was the survey art the central bank adopted negative interest rates in january but figure, far from the bank's 2% inflation targets and shows that the drastic measure didn't have the desired impact. the company's inflation expectations have been mostly flat or on a decline due to falling crude oil prices and the yen becoming somewhat stronger. also markets in china and other places losing steam. but the results were the same along manufacturing and along manufacturing sectors so domestic demands may also be slowing down. three, four years have passed since the boj began its massive monetary easing. and expects to reach its inflation target sometime by 2017. obviously firms are seeing a much slower rise. some claim if the boj wants to
meet its 2% target no matter what, it will need to take action although the available are becoming limited. >> thank you very much. christine lagarde has denied the imf plans to push greece closer to default as a negotiating tactic on a new bailout deal. it follows reports of elite transcript which suggests i am mf staff may threaten to leave the program to encourage european lenders to expend more cash. the greek prime minister saying that talks should continue but she viewed the deal as, quote, still a good distance away. meanwhile, the first vessel transporting migrants has dmokd turkey. it means that refugees have reached greece and sent to turkey. the co-president at premier
intelligence. g to see you this morning. let's start with the imf. christine lagarde denying that the imf is trying to push greece closer to default. she set it's nonsense. >> it is nonsense. they're able to make decision when we are close to the precipice. but in the past, there is nothing to suggest imf wanted to go down that way. i think the transfer is interesting. overall, the transfer doesn't tell us anything new, first of all. the position by the imf, it's interesting to show there's a little area between the increase if greece. apart from that, this story was made much bigger than it is just by the massive political consumption, and it's already coming to an end. >> however it does show, like you say, you have this route
between the creditors that still isn't going away. how do you think that tsipras is going to be able to benefit from the new implications in the report and use it to benefit? >> at best, they can try to use it domestically to bring momentum. it flies particularly well with its own voters and party members, so on. it's starting at 4:00 this time, there's a long list of issues from the fiscal side, the tax report, so the reality will soon kick in. and i suspect the tsipras around this leak will soon come to an end. >> so you don't think that the imf staff are looking to leave the program in order to force the hands between the greeks? >> i think they're very
determined to make sure that the structured forms are actually approved and implemented. they are determined to secure a primary that say target for greece, looking into 2017. and it will be up to the european to decide. regardless of the position of the imf, whether they rejoin the program or not, the issue here is that negotiation will be protracted. and we might end up waiting in that june, july, when there's a hard deadline for a final conclusion. >> what happens if the talks continue all the way to the end of the s&p program? >> well, capital controls remain in place. sentiment will suffer. the banks will continue to not to lend to anybody. so it would be more of the same which is obviously with the impact of all of the economic outlook of the country. and meanwhile, we still have this refugee crisis on. so the challenges here for
tsipras are mounting. >> as yyou pointed out in the research, you said she continues to be key. do you think her position is going to change given the refugee crisis? >> i think it depends on how the refugee crisis will evolve. whether america will be able to go -- let's say in june and say, greece has done an amazing job about the refugee crisis, we need to help them, first. secondly, it depends how important it is for america to keep it merkel on board. is it to keep them on board and provide greece with higher debt relief. or let them go and provide greece with less relief. that decision is not a decision that merkel can take now. they can only take that decision as it somewhat calms down, which is why we're looking at june, july, essentially. >> stay put for just a second.
because the british government has also stepped up its efforts for the tata steel business. nationalization, though, doesn't appear to be on the table. the secretary of state for business telling the bbc that it's prioritizing finding a private sector buyer. >> i don't think nationalization is a solution to this. >> even for a few weeks or months? >> having said that, i also think it wouldn't be prudent to rule anything out at this stage. i do feel, though, for lots of reasons after talking to tata, many of those involved in this, there will be enough time to find the right buyer working with the government and able to take this forward. >> so saying nationalization is not the solution. we were just talking about the potential for a brexit with an earlier guest. we're coming up close to june
24th very quickly. how do you feel the knock is going to be felt? >> i think overall, we still have almost three months to go. it's a long time. nothing politics. 24 hours can be a very long time in politics. it's unclear to us who is actually championing the cause for the remain. because it's very easy to point out where the leader of the lead can. and we know air able to appeal to a different part of the public. and the remaining camp here is in the back door. the only thing they have put forward so far is about fear. the uncertainty that will kick in is whenever we'll get that out camp. that kind of argument doesn't fly well. it on gives you a certain amount of traction. so they need to come out with some effective messaging here. and need to identify who are
actually the leaders telling us in a credible and effective way that you're better off staying in the eu rather than leaving it. people have to take with a pinch of salt. we're talking about the web. are we talk about phone calls? so the numbers are a bit confusion. it's very early. >> do you think if we were to see a vote to leave, do you think it would be detrimental to british business? >> it would be detrimental by definition. there's going to be a huge element of uncertainty. nobody can speculate about how long it will take to disentangle the uk from the eu in terms of relations and everything and find a new arrangement. it might take two years, three year, five years. nobody knows. so these are certainly per se
will have department trtrimenta. somebody suggesting the day after it would be as good as whether, even better like suggested is certainly leading to a different reality. >> thank you very much. donald trump says that the u.s. economy is on the verge of a, quote, very massive recession. the candidate high the overcompensation and high employment and stock market has increased the risk of a serious downturn. meanwhile on the campaign trail trump criticized former republican john kasich for remaining in the race. and he also attacked his democratic rival hillary clinton. >> i think she's got terrible judgment. i think she's terrible as a person that made terrible mistakes like benghazi, like libya. do you know isis has taken over libya and they have the libyan rail right now. that was hillary clinton's baby.
>> hillary clinton also campaigning in wisconsin ahead of tuesday's primary sought to distance herself from the republican rhetoric as she responded to trump's criticism on nbc's "meet the press." it's important to draw some pretty clear lines between what i think most americans and certainly what i know most new yorkers believe about who we are as a people. what the values of our country are. against some what we're hearing from the other side. you know, it's both donald trump as we are well aware but also ted cruz. >> nbc's ed lawrence is in washington, d.c. ed, we just heard clips from clinton and trump there. both criticizing the other. of course, a primary coming up around the corner again. >> a very crucial primary actually in wisconsin to show momentum at least on the republican side. the latest polls that came out yesterday showed that senator ted cruz is leading donald trump 43% to 37%, with governor john kasich coming in third.
the same polls show on the democratic side that bernie sanders is holding a two-point lead over hillary clinton. now, most of the candidates were in wisconsin to make that last minute pitch to try and get voters to vote for them. donald trump at a diner before holding a town hall, he turned to the issues during that. donald trump saying that he's the candidate who can make good deals for the country and break the gridlock in washington, d.c. his closest riefble, against, senator ted cruz, leading in the polls in wisconsin says that elect organize nominating trump as the republican dmaum me would ensure that clinton could win the white house. for the democrats, hillary clinton today will be in new york campaigning that primary is in two weeks. so her competitor, bernie sanders turned his attention to donald trump. saying sanders is the only candidate on the democratic side who can win a general election.
this is the last pitch to get the 42 delegates from the republican side is and 96 delegates from the democratic side in the corners of those respective candidates. back to you, louisa. >> ed longer from nbc news. you've been writing in, my goodness. it's brilliant. hello to you, gary. glad to have you with us bob writes in and says he's happy that the time zone, the daylight saving time in the now back to being on par with us which is great. peter says why pick on oligarchs, talking about the panama papers. he says google, apple, starbucks, microsoft, they're each engaged in assets hiding. buying up the west coast of u.s. and canada. the amounts low in terms of the
individual behavior. and also points out this is only one side of the story in terms of the leak. the law firm involved specializes in setting up offshore companies in tax havens. and they claim that they haven't done anything wrong. so important that we get all the details as this story continues to be rolled out. barry wants to know how much copper annually will be needed in the future to globally manufacture the growing number of electric and hybrid automobiles. i don't know, but it's a really good question, whether or not the price of copper going up because of, for example, tesla and the likes. coming. here on the show, f1 petro heads landing in bahrain as the season gets under way. find out which racer crossed the checkered flag first. that coming up in just a couple of minutes. you can't predict... the market. but at t. rowe price,
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hi, everyone. welcome back pop happy monday. a dramatic blastover from batsman carlos bratzwig. victory in calcutta. the match saw bratzwig hitting an incredible victory to snap it and defeat england. and mercedes neek co-rosberg clinched visibility 54 over kim my raikkonen. the win that marks a fifth pole position porrosberg as he won the last three races of 2015. and now the first two of 2016 as well. and it's the opening day of
the new baseball season. there's some crazy new foods making the rounds on a ticketed season as well. >> reporter: monday is opening day for baseball in america. a fresh start for teams, and a full slate of games as we begin a season that will stretch over six months. one thing that hasn't changed the growth in valuations. the average mlb team is now worth $1.3 billion. that's up 7% from a year ago. and it's 59% higher than 2014. the huge growth is driven by higher value television contracts. for the 19th year in a row the most valuable team is the new york yankees yank worth $3.4 billion. that's more than the s&p 500. with low value teams like kansas city royals winning the world series last year. >> i think that's what we all proved last year. no matter what the payroll is no
matter what any team is doing spendingwise, it's still possible pour a team to win a championship. >> reporter: rich teams like the yankees and red sox want to push their value higher. one way is controlling the ticket market. rather than getting scalpers getting it on the secondary market, both organizations have made locked down attempts. >> we don't make nearly as much money when we sell a primary ticket as when we do a secondary ticket but the goal is in the long run to have consumers have access to the full market dynamic. and i think the changes that the yankees introduce this year is the first step in that direction. >> reporter: finally, the new year means new eats. the trend in fancy and crazy stadium food continues in 2016. teams like the seattle mariners are now participating in profit sharing agreements with their vendors rather than the traditional royalty model.
higher risk, higher returns. some of the favorite menu items include this sweet potato sandwich, and wash it all down with a bloody mary chicken wing. back to you. >> what's a burgeriso -- does anyone know? interesting food choices. u.s. futures checking on-n on where the u.s. could open this afternoon. it's a little higher than on the right-hand side of your screen. earnings season just around the corner again. are u.s. companies now bracing themselves for a hit. the new negative guidance in the year with i.t., consumer discretionary and health care sectors. joining us nice and early from new york, boris, good morning.
>> good morning. best time of the year. >> i know, i know. >> best time of the year in america is when baseball season starts and irish nachos are the greatest thing in the world. >> irish nachos? what's -- >> it's nachos made with potato chips instead of nachos. delicious. >> good. boris, what are we thinking avenue companies becoming a little more pessimistic with regards to their earnings outlook? >> yeah, i mean, that's been a significant trend. and perhaps that's been one of the reasons why i think the fed has been so cautious in backing off tightening monetary policy. they've been very, very concerned about the strength of the dollar on the profits of the nationals. they've been talk about that i think that's the reason why they backed off on hiking rates and you've seen the dollar rally.
in many ways i actually think that dwochevelopments that we'r hearing now is past history. i think that the dollar has weakened is going to help is going forward. as you see that in the pmi manufacturing which came in better than expected on friday. and i think big development is go to be one of the beneficiaries of that. >> how long can the fed continue to not hike? it remains relatively dullish when listen to what they had to say last week. >> absolutely. the fed is really coming up against a very, very strong ceiling in terms of all of the fundamentals are pointing to a necessary tightening, as we go forward. and the fact it held off so much, i tweeted the other day, facetious, i not the fed was running the chinese monetary policy in the sense they team to be much more concerned about the global risk, rather than the
domestic demand here in necessity to address monetary policy here. i think at this point, the dollar weakness is pretty much reached its end. when you look at it, uros has a lot of resistance here, 1 freerngs 115. cable has its own problems with brexit. i think all of the commodities have had all the bounce they're just about going to have. i think this is going to be a quarter where the dollar is perhaps going to even not, perhaps strengthen. especially if the fed has the last chance before the u.s. election to actually make that rate hike in june before you get into the political time in new york. >> it's interesting, when you look back at the chat of the u.s. dollar, one would argue, usually traditionally, that the u.s. dollar should have strengthened a long time ago, properly, given what's going on in the u.s. with regards to a potential hike versus elsewhere. we haven't seen that strengthening. there's a line of thought that
says because the larger players out there are tiring of this long-dollar trade and are switching out and switching out quite significantly. and they don't want to get back to a long dollar trade at the moment? >> no, that's exactly what happened. it's an alice in wonderland type market. i think this is one of the hardest markets for large institutional players and everybody else to trade because everything that's up is down. nothing really following a fundamental script since the central banks have just basically been driving policy and price ranges. having said this, it's precisely box of this, because everybody is kind of quitting on the dollar, it maybe a chance for the dollar to have a rally in this quarter. especially because the other side of the equation doesn't look very good. i think the euro is running into pretty much the height of its valuation. i think commodity prices are not going to go much higher and help the commodity currency as we go forward.
>> boris, good to see you. thank you very much for being with us. have a good week. managing director at bk assets management. our european markets are pretty flattish here in this morning's session. the u.s. said we're setting ourselves up for a slightly stronger start to the trading day in the u.s. we're still 4 1/2 hours away before the u.s. markets open. you've been an active bunch. i said a lot of you writing in. bob talking about there's nothing more impossible to britain right now than it leaves the european union. it's slightly longer. i'll save it for another time. thank you for your correspondence. we'll see you tomorrow for another "street signs." have a lovely day. that's it for "street signs." we'll hand you over to "worldwide exchange" in the states.
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