Skip to main content

tv   Worldwide Exchange  CNBC  April 11, 2016 5:00am-6:01am EDT

5:00 am
good morning. let's make a deal. the uk's daily mail reportedly in early talks on a yahoo! bid. new this morning -- blackrock ceo larry fink warns negative rates for saving and spending. we'll bring you the highlights from his letter to shareholders. and the meltdown at the masters. englishman danny willett wins the masters after jordan spieth fall as part on the back nine. it's monday, april 11th, 2016, as "worldwide exchange" begins now. ♪ welcome to my house a very good morning to you a and a warm welcome to "worldwide
5:01 am
exchange" on cnbc. i'm wilfred frost joined today by seema mody. good morning, seema, sitting in for sara eisen. let's go to action, u.s. futures have taken a positive turn in the last hour or so, following european markets making a similar turn. higher by about 50 points to the dow. 53 to be precise. s&p by 6.4. nasdaq by 20 points. it follows a 1.25% decline last week for u.s. equity indices. let's look at the u.s. ten-year, we're seeing buying over the last week or so that did actually take the yield below 1.7% briefly on thursday. we're just above that level right now. but as you can see, the move in general over last week has been one of yield compression. 1.718 on the ten-year note this morning. breaking overnight, bank of japan governor kuroda says the boj is closely watching how unstable global market moves
5:02 am
could affect his country's economy and prices. speaking at an animal meeting of trust banks today, kuroda said, quote, the boj won't hesitate to take additional easing steps needs to achieve its inflation target. other market headlines out of asia, the stronger yen continuing to put pressure on japanese stocks it did close off its lowest levels of the session. as you can see indicated down .4%. down 1.3% earlier. the yen, let's have a look at what has softened just over a week, above 108 right now. around a 3.5% move just over a week which is quite extraordinary. today, we're pushing flat. and the consumer price figure was unchanged in china. also prices remained in deflation, down 1.3%. but the pace of the decline
5:03 am
eased. as you can see there shanghai bucking the trends seen in other parts of the yasasia. and that was really a lesson from last week, we saw the nikkei and other parts of asia continuing to decline but the chinese marketing managing to shrug off the concerns. and we're looking the early gains across the european nation. the german dax, up .75%. today, we get german trade, french production and auk make sure to keep an eye on the reports. commodity markets has been a big reason for the turn around. oil was down 1.5%. it's now down only .75%. in fact in the middle ground of its best part of the day and worst part of the day. that is on european trade.
5:04 am
39.42 for wti. it was 6 .6% last week. let's have a quick look at gold prices and see where that's trading at this morning. 1249, up. 05%. >> now to our colleague, sri jegarajah. >> a solid move at the close. that's really on the inflation metrics that we saw for the month of march. so the market's interpretation of all of this is that, yes, the policies in terms of monetary policy have room to maneuver if need be to see more consolidate growth in china.
5:05 am
then the very strong correlation with the strong japanese yen the closing off 15,771. in my mind, yes, kuroda is saying additional easing is possible and available. what form does it take, april 18th, the boj meets. not a great deal left in the arsenal with the exception of equity purchases. are they going to be outright equity purchases in escalation of the 3 trillion yen a year, hsbc that we could see escalation of equity purchases. up to 13. that would be very, very bold. it's been rude and very elusive. that back to you. >> yeah, kuroda expectations are
5:06 am
high. we'll see if he can deliver. in other news, the imf says it supports the banks in some. the organization argues a move to negative rates would help deliver extra monetary stimulus and ease lending conditions. blackrock ceo larry fink warns negative interest rates could hit consumer spending and undermine economic growth. in his annual letter fink says not enough attention has been given to negative rates on saving habits. the largest says the central bank actions are severely pushing investors into less liquid asset classes and increased levels of the ring. >> it could easily electrify the
5:07 am
debate. continuing to suggest that it continues to be squeezed by the negative rates. perhaps central banks will rethink whether this monetary experiment is actually working. >> actually, commentary that we may get from the banks this week on interest rates although last week, jamie dimon said he wasn't that concerned about it in his own annual shareholder letter. but the interest rate aspect is one point to focus on in bank's earnings, as it loans, energy sectors, and capital markets is the area that's going to be hit hard. in washington today, president obama will meet the fed chair janet yellen to discuss the u.s. economy and wall street reform. as for the rest of the week, earnings season kicks off as we were saying and there's plenty of economic reports to keep an eye on. on tuesday,en inflation gauge closely watched by the fed. on wednesday, we get march
5:08 am
sales, producer index. on thursday, it's march cpi and we round out the week with march industrial production on friday. earnings season kicks off today and is expected to be the worst quarter in tellers of declining profits in seven years with a more than 9% decline in earningses for s&p 500 firms. alcoa released the first results. landen dowdy joins us with three things to watch. >> analysts will be watching to see if the aluminum make letter set the stage as what is projected the fourth declines. beyond the numbers here are three things to watch, alcoa stock price is heavily correlated with the price of aluminum. so projections from the firm on where the commodity is headed. second, aerospace. aerospace sales have been their saving grace. the company expected to see that trend continue projecting 8%, 9% growth this year. the third thing to watch, china,
5:09 am
the world's largest aluminum producer. so look for any comments on global macro economics there. don't miss alcoa chairman and ceo klaus kleinfeld who will be on after the report at 4:00 p.m. eastern. yahoo! could have a new bidder. the parent of the uk's daily mail is in talks with several private equity firms about a possible bid for the company this corning to "the wall street journal." a private equity firm could either acquire all of yahoo!'s operations with daily mail take over its news and media properties. or a private equity firm would acquire yahoo! and merge and media properties into a new firm that would include the daily mail media sites. that would be controlled by the mail. the mail reportedly joins a long list of companies interested in ya hoop including ia interactive, cbs and verizon.
5:10 am
yahoo! has set an april 18th deadline for preliminary offers. shares of daily mail and general trust you can see up by 0.2%. sap with the quarterly results miss estimates. and volkswagen is reportedly pushing for big reduction in the firm's board. this comes from criticism about the intentions to pay big bonuses why the company pays for the fallout from the diesel scandal. and according to the financial time, the bank has given up plans for a deal. it's up to .8% in london. >> let's take a look at toll brothers they could potentially have a 40% upside according to a barrons report.
5:11 am
another barrons report on apple, apple stock gut $150 a year for of a 40% dividend. because of strong occurring revenue in its growing business. still to come, the good, the bad, the ugly. that's coming up first. first, twitter and facebook question of the day, will earnings steer stocks this week? we'll hear from you. get in touch with us here at "worldwide exchange." we're back if just a couple minutes. what's going on here? i'm val, the orange money retirement squirrel from voya. we're putting away acorns. you know, to show the importance of saving for the future.
5:12 am
so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com. it's more than a nit's reliable uptime. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated, responsive support. with centurylink as your trusted technology partner, you're free to focus on growing your business. centurylink. your link to what's next.
5:13 am
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions.
5:14 am
get better internet installed on your schedule. comcast business. built for business. welcome back to "worldwide exchange." if you're just waking up, a very good morning to you. let's get you up to speed on market action. u.s. equity futures pointing high tore the tune of about 50 points for the dow, around six points for the s&p and 20 points for the nasdaq. comes after a week about a percent and a quarter for all three indices last week that is despite oil rising 6.6%. just taking profits in the gains in the oil market, 39.5 for wti, down 6%. as oil has moved around so has the oil market. seema. let's take a look at the dollar.
5:15 am
trading slightly higher against the japanese yen last time i checked. yep. 10816. the euro at 113 against the u.s. dollar. let's talk about currency with kitt juckes head of global exchange at stockgen. the way i see it japan has two options to offset the stronger yen. one, unveil an even more aggressive stimulus plan or perhaps intervene and devalue the currency? although many skeptics say they would never would do that. is that anxious option on the table? >> yes, they've lost credibility with failed move to help weaken currency or help anything to the move to negative interest rates. i think there's a licking of
5:16 am
woundi ins going on and waiting see what happens on the japanese authorities. i don't expect much, certainly not intervention yet and certainly not without a coordinated move. i think this could be long and drawn out but the markets are getting increasingly, i think, ahead of themselves on the news and positioning so we can't keep on going this way for that much longer. >> kit, if we're at a point of view where we don't think the central bank can weaken the currency as proved with the latest interest rate experiment. and we also have the outlook that growth in japan is pretty dire, why does it continue to trade as a safe haven? is there going to be a moment where suddenly sentiment switches and confidence in this economy and currency and government goes the other way and suddenly the currency could fault opposite direction? >> yeah, i was sitting here thinking and i wouldn't rule out 120 on a three-month leave by any strep of the imagination. on a day like today when on the
5:17 am
front page of one of the newspapers telling me record outflows of foreign investors from japanese equities. you think, you know, how much yen strength is foreigners selling equities and removing the currency that it had which would rise the currency stronger. which would be entirely a short-term factor. and then you see positions growing. but it's a safe haven currency, we'll always benefit from safe haven flows in the sense that the japanese are the biggest owners of foreign assets and they bring money home rather than putting money offshore. this morning, you just told us that u.s. equity markets are in a broad move, they're likely to be higher. and the yen is still strong. so, it's looking a little bit bonkers to me, frankly, than where it is now. if the currency strength in the japanese equity weakness and the japanese economic weakness feed
5:18 am
on themselves for many more weeks we'll get a snap at a low. i just which i knew what level of dollar/yen that was going to start at. >> kit, let's touch on brexit. fears of a brexit in the sterling markets than anything else. do we start to see the euro soft as we approach june 23rd or is this a uk currency story? >> so far, it's a uk currency story. the uk, with the euro area's biggest trading partner so it certainly has an impact, you know, does -- would brexit represent an existential threat to europe and all of europe? yes, because the precedence would be scary throughout. that doesn't mean anything happens but i think if the uk were to vote to leave the eu, that would be negative for
5:19 am
european growth and currency. i think it would be weeks before or days before the vote itself before it remains to be disclosed. that might be something that people talk for. but for the moment, we're seeing short euro positions gradually get squeezed out. we might have to wait a few weeks for that to become a factor. but the uk leaving the eu would be bad for europe. >> kit juckes, thank you for joining us this morning from london. still to come, headlines from the campaign trail. weekend wins for bernie sanders and ted cruz. but the real focus is on new york today. we'll tell you why. but first as we head to break, here's today's national forecast from the weather channel's kelly cass. good monday morning, wilfred and seema. we are tracking some wet weather in the middle of country. we've already had damaging winds and power lines knocked down with severe weather in okay
5:20 am
okay. we'll be watching this area in the red for more severe storms today. especially large hail, damaging winds but we can't rule out the possibility of isolated tornadoes. the rain stretches up the ohio valley, new york city, it's going to be wet later today. temperatures in upper 50s. rain for pittsburgh and philadelphia as well and we're seeing spotty showers as well. los angeles, san diego drying out after much needed rain over the weekend. temperatures cool across the north. 49 in chicago. hot stuff in texas. look at dallas getting up to 88. 76 degrees in atlanta. 59 in new york. that's a look at your national weather.
5:21 am
5:22 am
ashley bryant, you are a teacher of small children. that's right. i have read it is the hardest job in the world. that's why i'm here. can you... i can offer advice from the accumulated knowledge of other educators... that's wonderful but... i can tailor a curriculum for each student by cross-referencing aptitude, development, geography... sorry to interrupt. but i just have one question: how do i keep them quiet? (pause) watson?
5:23 am
there is no known solution. welcome back to "worldwide exchange." we'll get you up to speed on market action. u.s. futures pointing to a higher action as arsian and european stocks rebound. s&p up 6. you take a look at oil, last week, a lot of focus on oil prices gaining about 9%, thanks to a drawdown in u.s. crude stockpiles. a big move in the commodity complex. here on monday, wti crude slightly below $40 a barrel trading down by 6%. now to politics, new york is a popular place for presidential contenders as candidates campaign ahead of the empire state's primary. nbc's tracie potts joins us live from washington with the full story. tracie. >> good morning. well, the full story starts with
5:24 am
ted cruz, he's not going to be in new york today like most of the candidates, he's polling third there and he's move to get west coast focusing on the next big state which is california. then there's donald trump who is now complaining that the system is stacked against him. >> this is a crooked system, folks. i've won twice as much as cruz. i've won millions and millions of votes more. >> reporter: but ted cruz swept all of colorado's delegates in the past week, including 13 more over the weekend. cruz is in california today, where he's polling much stronger than next week's new york primary. john kasich got his biggest crowd ever in new york this weekend. 3,000 people. and the democrats, here's bernie sanders' new ad targeting new yorkers. >> brooklyn born. >> reporter: and he's targeting hillary clinton. >> she may have the experience to be president of the united states, no one can argue that. but in terms of the judgment,
5:25 am
something is gone. >> reporter: today on gun violence, clinton fights back, hammering sanders for voting against holding manufacturers liable. >> there's no other industry in america that gets that kind of free pass. >> reporter: and in his first fox news sunday interview, president obama is promising clint will be not get a free pass on her e-mails. >> nobody gets treated differently when it comes to the justice department because nobody is above the law. >> we could end up hearing more about that this week. the democrats' next debate is happening thursday in new york. >> tracie, if hillary clinton failed to win new york, would this be a much more worrying loss than perhaps some of the recent ones we've seen? would it mean that this momentum that sanders has is meaningful? >> no question about that, it's her home state. it's traditionally a democratic more liberal state. much of that due to new york
5:26 am
city which say large part of the vote. absolutely, if he's able to make inroads and she solutions new york, no matter how much she solutions by, he's going to claim that as a victory and it could change the shape of the race from here on out. let's get to sports news. final round of the masters appeared to be in the bag for jordan spieth who was look fog win his second straight green jacket. he had a five-shot lead for 11 holes with certain victory in sight. and then disaster strikes. he hits his tee shot in the water, par 3 12th. spieth hits it fat and shanks it in the water again. he cleared the creek but ends up in the bunker. he would get out of the sand and score a 7 on the par 3 losing the lead. spieth's struggles allowed brit danny willett to move ahead to go 5 under. on 18th, willett taps in to par to go into the clubhouse three
5:27 am
shots out. willett almost didn't play the masters because his wife was due to give birth this weekend. spieth did have a chance after two birdies on the 17th, he needed his par putt to stay two shots mind willett but tide for second. danny willett celebrating with both his caddie and his dad. >> it really was. i don't even watch golf. i was glued to the screen watching willett come back. coming up, this morning's top stories including reports the uk's daily mail early talks on a yahoo! bid. plus who is your best friend at work? we'll tell you why one company is asking this. stay with cnbc.
5:28 am
e*trade is all about seizing opportunity. so i'm going to take this opportunity to go off script. so if i wanna go to jersey and check out shotsy tuccerelli's portfolio, what's it to you? or i'm a scottish mason whose assets are made of stone like me heart. papa! you're no son of mine! or perhaps it's time to seize the day. don't just see opportunity, seize it! (applause)
5:29 am
great time for a shiny floor wax, no? seize it! not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend,
5:30 am
if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. good morning. monday deal talk. the parent company of the ugg's daily mail reportedly in el talks on a yahoo! bid. new this morning, gasoline prices raising 8% in the last weeks. and video gone viral. a chinese wind suit creates a stunning feat. you're watching "worldwide exchange" on cnbc. ♪ a very good monday morning to you. on "worldwide exchange" here on
5:31 am
cnbc. i'm wilfred frost joined by the lovely seema mody this morning standing in for sara eisen. u.s. futures pointing higher. last week we lost around 1.25% for all three of the main u.s. indices. today we're expected to bounce back high per. s&p by 6, nasdaq by 20 points. let's have a look at trade around the world as well. europe is higher up .8%. had down .3% at the open. but has rallied. asia was next, we saw the japanese market suffer because of the high yen. shanghai and hong kong managed out. shanghai in the last couple weeks managing to outperform yesterday's. a big change in sentiment. one of the reasons we've had intraday improvements. oil prices yes, down half a
5:32 am
percent but down more like one percent earlier on. last week we had strong gains. wti was up 6.6% for the week. 39.5 for wti. among the stories to watch today, president obama will meet with fed chair janet yellen at the white house. they'll discuss the longer economic outlook and wall street reform. vice president biden will also attend the meeting. the imf says it supports the move of negative rates by central banks. this comes ahead of the meet information washington. move would help extra stimulus and ease conditions. blackrock ceo larry fink says in his annual letter to shareholders not enough attention is given to the effective negative rates on saving levels.
5:33 am
the head of the world's largest group said the central bank's actions are quote severely punishing savers pushing investors into less lick quit asset classes and increased levels of risk with potentially dangerous financial and economic consequences." many analysts say one of the reasons gold has had such a good year, up 15% to date, a lot of that having to do with interest rates. >> interestingly, last week, jamie dimon said i'm not concerned about negative interest rates that's because he doesn't expect them. he would have been worried if he thought they were coming but hi just doesn't think the fed is going to that outcome here. that's something that we'll hear from other bank ceos when they start to report. coming back to the markets i think it's interesting to see that the u.s. indices all declined. yet we continued to have a
5:34 am
dovish drive last week. we saw oil up 6%. have we seen a little profiting, regardless of how oil is doing, and that people are losing sentiment, positive sentiment, and i think that comes down to earnings. we're just taking profits ahead of that. and if we don't get more decent earnings we'll see that again. >> especially analysts on average are expecting a 10% decline on most majors. what's interesting if you look at the u.s. stock market a tremendous recovery despite last week over the past eight weeks, financials have been left behind. earnings could be a game-chan r game-changer. >> s&p financials down 7%. absolutely right. let's break down which companies are reporting earnings for you this week. among the highlights, alcoa after the closing bell today. wednesday, jpmorgan chase
5:35 am
reports. thursdays bank of america and wells fargo. we'll get delta airlines reports and friday, results from citigroup. and it will be corporate profitability that drives markets as opposed to oil prices and the like. to corporate news, yahoo! could have a new bidder, the new parent of the daily mail apparently in talks. "the wall street journal" says the private equity firm could either acquire all of yahoo!'s u.s. operations with the daily mail taking over its news and media. pros. or a private equity firm could acquire yahoo! and merge into a new firm that would include the daily mail's other sites. controlled by the daily mail and trust. certainly getting attention back in the u.s., dmj is up 2%. s&p warning first quarter results would be weaker than
5:36 am
expected because of a slowdown in sales of software licenses. the stock up 1.2% now. volkswagen's chief is reportedly push for a big reduction in bonuses. this comes from criticism of one of the automakers major shareholders about intentions to pay with the fallout of the diesel situation. bank of scotland will close its banking operations in india according to the financial times because of concerns because of an extended regulatory approval process for a deal. it's up .9%. according to barrons report, toll brothers pushing to luxury condominium development will help drive shares. and another barrons report on apple, apple stock could hit $150 a year for return on
5:37 am
dividends. the tech giant according to a report because of strong recurring revenue from its growing services businesses. up .6% in stock. the weather may not feel like it, out but the summer driving season kicks off this month. and u.s. consumers are already forking over more dollars to fill up their tank. landon dowdy joins us on that. >> latest landburg survey is out, the average price of unleaded gasoline drop up 8 cents. but the increase has little to do with oil prices. lundberg says it's to increase in demand, days are longer. and gas station, hiking prices twice as much as they're raising wholesale prices. los angeles at $2.80 per gallon of regular unleaded but in tulsa, oklahoma, $1.67.
5:38 am
back to you, guys. >> landon, thank you for that one. >> are you going to get your license? >> no. what's the point? no need to drive in manhattan. >> drive out to the hamptons for summer. let's talk movies. batman and superman, melissa mccarthy is the new boss at the box office "the boss" narrowly edged out "batman versus superman." she place a mogul after being convicted of insider trading. it's not a total knockout as "batman versus superman" took in an estimated $23.4 million. despite poor reviews and word of mouth, the warner brothers system has made $300 million in u.s. and canada. musician steve miller joined
5:39 am
throck and recaoll hall of fame. he spoke to "the wall street journal." miller is blasting the music business saying nobody cares about artists. record companies are thieves and they should all be put in jail. because studios are gone and it's become more like a video game. miller says in 20 years, musicians will need rich people to sponsor them for their private conner ises. strong views from the new rock and roll hall of fame member. let's get to today's top trending stories. "the boston globe" published a satirical page. dated april 9th, 2016 with deportations to begin and markets sink. the trump campaign has not yet responded. that's a pretty extreme opinionated piece.
5:40 am
barclays wants to improve culture by encouraging staff to be friends with each other. the bank will ask, do you have any friends name your best friend at the top of a survey distributed in the next few weeks. a little absurd to ask colleagues to outwardly say who they're friends with or not friends with. >> particularly, i'm friends with everyone at work, i'd like to think. but if the ceo sent out a letter to say you should be more friendly with people. i don't think it would make a difference. perhaps a negative impact. and the new tallest tower until dubai. the company will announce plan this week but it will be much more taller than the burj
5:41 am
khalifa. and the wingsuit flyer jumped 2,000 feet from a helicopter before opening his suit to coast along the bridge. for about 30 seconds he luckily landed safely. any feeling you want to do that as well? >> not at all. pretty epic. still to come on "worldwide exchange," today's "must read" stories and david cameron talking taxes. stay with us. we'll be back in a couple minutes.
5:42 am
5:43 am
atand that horrible smellstee are really good at hiding.vice, oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. ♪
5:44 am
welcome back to "worldwide exchange." now to today's "must read" stories catching our attention. one in the financial times titled david cameron and the great tax kerfuffle. it comes off the back page using every sunday paper in the uk. i picked this one specifically because it it's one of the few that gives the opposite side. the prime minister has done nothing wrong, apparently there's factors that make him seem elitist and out of touch but no indications that he's done anything illegal. that saying what the fallout might be all of this might cause bright yuvoungsters knowing how frustrating a political career would be wondering if it's worth it. and having his personal life suffer. and how it might wear on his career in politics long term.
5:45 am
and it says, perhaps the prime minister's position has been weakened. the fallout has been huge. i still maintain that i think it's a temporary fallout, and the pr side of it is doing more than than the fundamental factors that will bring him down. and the swing vote that may bring him down will be the brexit. >> timing nearly not working for david cameron. this is a time, two months before the referendum where he really needs to bring people together. that's one thing to keep in mind. how this will impact potentially the brexit vote and his campaign. >> brexit vote still the key to his future. my pick is also in the financial times, larry somers writing global trade should be remade from the bottom up. he says it's been the pillar of the international order yet a revolt it under way in the west.
5:46 am
citing the presidential campaign, all four leading candidates opposing the transpacific partnership. also seeing trade as a hot button issue. we're just talk about the brexit there. front and center is trade. but the shenzhen treaty in view with the free flow of business across europe. so that continues to be a big issue and one that has been highly debated amongst economists. >> absolutely right. a key factor in this election. one of the few that sanders and trump do fact align. we're getting ready for the top of the hour. "squawk box," joe joins us for a look at what's coming up in new york city, joe? >> you know what we've got to talk about. if danny willett would have won after a brexit, would that still be a european winning the masters?
5:47 am
>> that's a good question. joe, as you bring up both, i wonder what will happen to the ryder cup if we left the european union? would britain have to play on their own? >> okay. now, you're getting me worried. you can't leave. that's a good reason to stay. but congratulations on this englishman. first englishman since nick faldo. >> since nick faldo, 20 years ago, exactly. i can't believe how much that dates it, 20 years ago it was faldo. >> it's cool to have him there, obviously talking about things with jim nantz. as well as danny willett played. they'll take a masters win no matter what, a lot of times, this is unfortunately in the past, epic collapses, you don't remember the guy who won playing so well. this is going to be remembered as what happened to jordan spieth on number 12. you know, it's almost sha
5:48 am
shakespea shakespearean. his life has forever changed and the downside, the pathos, is what happened to him yesterday. he's got a special needs sister that keeps him grounded. he'll come back from this. that was painful to watch. a very tough hole, wilfred. >> crazy. as you're right, saying he is a young man himself. he's got a bright, bright future regardless. i've got another question, do they fit the jackets ahead of time? that tempts fate, at the end of the thing when they put them on, they always fit so snugly. it's like all the front-runners have to be fitted for the jacket the night before. is that what happens? >> i wonder, wilfred, they probably have a 42, 44, 46. if i ever won one, i know it would fit tight. >> maybe there's a tailor onsite. >> if i could even swing a golf club, mine would come out with
5:49 am
incredibly short sleeves. >> what a great four days. it's like the greatest venue possible. it's amazing to watch. i don't know how much you got to see of it wilfred. let me see, we are going to do a business show today. i got a look at what's coming up. i felt so bad. i was hoping -- i would have cried, you know, but i would have never gotten -- jason day, you saw that the very first day, number one golfer in the world shot 31 on the front and 41 or 42 on the back. so, you know, this happens. and it's amazing that he led for seven straight rounds. so, there's a lot, i think, he can work on with that, but that was really, really painful. and you know, the newspapers aren't very nice. they love to build you up and they love to tear you down. then when he comes back, they'll build him up even more. that's the way the world. keep that in mind. >> joe, great stuff. we love the green tie with the
5:50 am
masters and "squawk box" coming up in 11 minutes' time. the next guest, the financial markets will likely to be volatile with little upside. alison deans of aa deans advisory is up next. you're watching cnbc, business worldwide. 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, you just wait. ♪
5:51 am
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 live the 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. it's more than tit's security - and flexibility. it's where great ideas and vital data are stored. with centurylink you get advanced technology solutions from a trusted it partner. including cloud and hosting services -
5:52 am
all backed by an industry leading broadband network and people committed to helping you grow your business. you get a company that's more than just the sum of it's parts. centurylink. your link to what's next. welcome back to "worldwide exchange." a quick look at futures at this hour. higher after about a 1.25% decline last week. most of the u.s. indices were up. you 47 points for the market. 6 for the s&p and 19 for the nasdaq. joining us now to discuss the market is alison deans, cnbc contributor. good morning, alison. thank you for joining us. if we took your view last week we saw some losses, profit taking to the tune of about a percent for most of the major indices. this is despite undovish sentiment from the fed and strong gains for oil. so why was the market a little worried last week?
5:53 am
>> i think people were still worried about corporate profits. you know, you've had lower energy prices you saw tough comparisons, you still had the stronger dollar and growth overseas has been relatively sluggish. i think half of revenue coming from overseas and still some uncertainty over what's going on over there the earnings is not very strong. and the market is not strong enough to buy pure value. >> alison, it was a tremendous week for oil gaining about 7% or so. should investors, though, be suspicious of the rebound we're seeing in oil? it seems to be based on momentum versus fundamentals. >> issue on oil is more about weak demands and more about oversupply. when there's oversupply, we hear certain companies are reining in production. my sense is energy prices have bottomed you should see them rebound or stabilize.
5:54 am
>> you mentioned in terms of profitability, with the earnings reports later in the week, what are you looking for in terms of earnings this week? >> i think revenues will be flattish to slightly negative. and earnings prices, and i don't expect to see robust earnings growth. industrial cyclicals and more multinational companies will be the most challenged. >> we're in a weaker environment, shouldn't that been a boon? >> well, the dollars are weakening. but going to the second half year, that's when you start seeing improvement in nmore of the labor earnings. i don't think the market will give you volatility. the market is bowing to look at
5:55 am
trend and interest rates. as you look past the quarter and the second half of the year, it should start to do better but i don't think we'll see that going into a bumpy first quarter earnings reporting season. >> and then finally, u.s. dollar, we've mentioned it in part. what's your view on that? i mean, has it had its big correction now or will the current trend continue? >> my sense is it's had its correction. there's not enough on a relative basis going on overseas to think the countries will get stronger. while the fed looks dovish, my sense it is will stabilize. as oil prices stabilize, the fed might consider coming in and tighten again, that would give support to the dollar. >> alison deans, thank you for joining us. we've only got about a minute left. i want to highlight a few key things to watch today and indeed the week ahead. what are you watching, seema.
5:56 am
>> optimism, instead of pessimism seems to be on the rise. preeconomic reports inflation overnight trade and gdp will be watched. those numbers go to the upside, maybe this is a sign of a turnaround. >> indeed. china's market up this morning. nikkei is down. that's kind of the theme the last couple weeks as well. the main thing i'll be watching today is alcoa, kicking up earnings season. i think earnings is go to be absolutely key. as we started to tread waters in the last weeks there's been an lack of conviction. alcoa later today, later on in the week, banks earnings and jpmorgan on wednesday. on the facebook question, we asked will earnings steer stocks this week? 66% said yes. let's get a look at futures before we leave you. we are expecting gains of about 50 points for the dow, of course, comes off one percent declines last week. we're expecting an open 45 points higher for the dow.
5:57 am
>> that's it for "worldwide exchange." thanks so much for joining us this morning. wilfred, a pleasure. "squawk box" is next. ♪
5:58 am
great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business.
5:59 am
♪ good morning. a possible new bid emerging for yahoo!. the uk's daily mail is in early talks to make a deal. earnings season will be kicking off. we'll take a closer look at the expectations for the big banks that are set to report this week. and as it sometimes happens at the masters, an epic meltdown by jordan spieth. this time, it sort of overshadows and takes the thunder away from the champ, englishman danny willett has the green jacket this morning. it's monday, april 11th, 2016, "squawk box" begins right now. ♪ hello darkness my old friend
6:00 am
i've come to talk with you again ♪ >> announcer: live from new york where business never sleeps, this is "squawk box." ♪ good morning, welcome to "squawk box" right here. i'm andrew ross sorkin. becky's got indicate off. u.s. equity futures at this hour. dow jones looking like to open 52 points higher. s&p 500 looking to open 6.5% higher. nasdaq looking to open about 20 points higher. in asia, stocks rallied. the young yen on nikkei closed color. let's tell you what's going none europe. came up a little bit from what was going on there. the dax actually looking good. cac not bad either. let's take a quick look at the price of crude right now. wti trading at

56 Views

info Stream Only

Uploaded by TV Archive on