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tv   Worldwide Exchange  CNBC  April 18, 2016 5:00am-6:01am EDT

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good morning. oil prices plunging after producers fail to agree on a freeze. and new this morning, brazil's impeachlment vote in congress moving one step closer to remove iing rousseff from office. and we are looking at the u.s. political primaries. it is monday, april 18, 2016. "worldwide exchange" begins right now. good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen.
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>> i'm wilfred frost. good morning to you. we'll get straight to the market action and have a look at futures at this hour. they are pointing lower, albeit not too much given decline elsewhere in the morning. the dow is down 38 points. the s&p 4 points and the nasdaq down by 6 points. we'll have a look at numbers elsewhere in the world. europe is down to the tune of about .2%, .3%. not too significant. germany down 2% after gaining 4% last year. we should keep that in mind when the ftse was up. oil-producing nations failing to agree on a supply freeze at meetings in doha over the weekend. some are blaming tensions between aussie arabia and iran for the impasse. crude prices sharply lower but off the worst levels overnight. wti down 3.2%, 39.07.
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brent the international benchmark down 2.6%, 41.96. we are expecting those to be worse. we'll take you to doha live in a moment. japan dropping 3% in the market after suspension in production after another earthquake in japan. in other global news, the lower house of brazil's congress voting last night to impeach the country's president, dilma rousseff. this is setting off a loud response on the floor of the house and a wild celebration outside the legislative building. rousseff is accused of using accounting tricks to maintain spending in the budget and shore up support. the measure now goes to the senate and we'll go to brazil live for more on this later. we'll get back to the top story of the nations failing to agree to a supply freeze in
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doha. brian is there to break it down for us. >> reporter: wilfred, sara, good morning. thank you. the oil would be a little more bearish this morning if it wasn't for a major strike by oil workers in kuwait. we'll get to that in just a second. but here in doha it is hot already but it was a lot hotter yesterday in a meeting that one of the participates described as hot and very tense to stretch on more than 12 hours. 11 of the 12 opec nations along with russia failed to reach any deal to cap oil output or put a freeze on the limited output. and that is sending oil futures down this morning. basically what happened is this, in the morning everyone woke up with optimism. it was a draft deal going around that the ecuadoran patrol minister told us before the meeting began, gave him reason to be optimistic. people thought the meeting would be quick and easy. that was a description given to us earlier in the day. the meeting was certainly anything but. after the meeting ended, just moments after it ended, cnbc
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landed the first interview with the energy minister for nigeria and he told us that what happened is that the draft they had seen before the meeting was not the draft they had seen when they got to the meeting. >> it was the initial draft that everybody has sort of seen and came to the business of a draft. there was no consensus around that. and this morning there was a different draft, which tended to create a link to iran's compliance. >> reporter: i think in different terms they had seen the old switch-a-roo. without iran being at the meeting, the minister said they could not go for that even if it benefited them. >> how much, brian, with us this because of saudi arabia and
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saudi arabia not agreeing because of iran's lack of participation? and i just wonder what it means for the kingdom after this. >> reporter: well, nobody's going to directly put the finger on saudi arabia. believe me, we asked a number of direct questions and people on and off the record just said, listen, the deal they had seen tried to limit iran without there being participation by iran. they felt they could not go for that. of course, saudi arabia and iran have been engaged in a strong war of words. so you can make the assumption of maybe what was put in the draft deal. what does this mean for saudi arabia that? they may increase the production. remember, guys, saudi arabia could now effectively raise production. if this is a battle for market share and a lot of participants say it is every country for themselves. even though kuwait may come down
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and the united states has come down, we could easily seesaw dee arabia ramp up production. iran wants to get back to 4 million barrels a day, just under 3 million barrels a day right now. you have the counterforces in the fear term of an oil strike in kuwait, but the saudi arabia oil production is likely to go higher. venezuela is in dire straits. you'll talk about brazil later in the show. i will give you this anecdote, the saudi minister came in with a smile on his face and the saudis left by the back door. it was a very intense meeting, especially toward the end. >> brian, thank you for joining us this morning. brian sullivan reporting from doha. we have seen a big percentage in the oil price today but we are close to 40. we have come a long way since those depths back in february. and i suppose it's not a surprise to see a bit of a falloff after the decision. but it is not like we have wiped
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out all the gains in the last few weeks and months anyway. >> the question going into last night with the futures open, with how much of the sharp relay was dependent on talks of oil freeze. and a lot of folks were saying this is extremely bearish because a lot of those -- that rally was fueled on the hopes, brian mentioned the kuwait workers' strike. according to reports, crude production in the country falling as low as 1 million barrels per day versus the 3 million that it typically does. so that is taking a big chunk of oil out of the market. a very bullish factor that's bumping up against this very bearish no deal in doha. >> but not only the move in oil prices, if we look at the reaction to equities or for good week we had last week in europe, we are only down 2%. the ftse is down not quite .40%. australia, very energy heavy.
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only down .40%. the reaction this morning, yes on the headline crude down 3% is significant, but we're still at 39.14. the reaction not as negative as it could be. goldman sachs expects more volatility as far as the weekend news in oil. this leaves the market reaction uncertain. risks skewed according to goldman sachs for a sell-off, but the kuwait deception could be much smaller than perceived. we have corporate news to tell you about. today is the deadline for potential bidders to buy yahoo!'s core business. verizon is topping the pack of suitors of those who decided not to bid, comcast and at&t. verizon's competition is from private equity firms. yahoo!'s core business could attract between $4 billion and
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$8 billion on auction. but it is still unclear what the assets can fetch overall. a packed agenda today. the national association of home builders will release the results of the april housing market index at 10:00 a.m. index. we'll hear from fed presidents from new york, minneapolis and boston. and pepsico, hasbro and m&t bank are reporting before the bell. ibm and netflix will report after the bell. netflix will also be reporting after the closing bell today. landon dowdy is here with three things to watch in what was last year's best stock to watch. >> netflix is expected to report record revenue growth at nearly $2 billion and earnings of 3 cents a share. beyond the numbers, there are three things to watch. subscriber numbers. wall street expects more
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subscribers to be the main drivers of growth for the quarter thanks to daredevil and house of cards. the second guidance is a biggie. grandfather subscribers still pay $7.99 a month. that will rise $2 on may 9th. subscribers could be impacted to lead to service cancellations. still at more than 35% the past few months. will all of that change once consumers have to start paying up? i can't imagine you two canceling your subscriptions. >> i agree. they could get away with quite a lot more price rises but we'll have to see. a lot of focus on that. landon, thank you very much for that. netflix has other competition. amazon launching a new stand-alone membership for prime video. you can sign up for prime for a year to access streaming
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content. users can subscribe for $10.99 a month or just prime video for $8.99. >> they have built up quite a library of their own. this is going straight at netflix. with a cheaper price tag. other shots for you to watch, astrozeneca has head talks for medivation for the last six months or so. intel could rise 25% over the next year. this as the firm shifts from higher growth businesses like server chips and embedded chips for cars. barron's also says shares of ford could surge 25% over the next year as u.s. auto sales are likely to come in stronger. and that is all getting a lot of attention over the weekend. stocks to watch, sealed air, the bubble wrap packaging, could rise 30% according to barron's.
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the stock over the next year could achieve growth targets and shares have more than doubled. you can see the nice rebound there, 50.03 share price. and mcgraw-hill agreed to sell j.d. power to the xio group for more than $1 billion. and sunedison is looking to file for bankruptcy. the firm was under $117 million. coming up, your trade of the day. oil prices plunging after the doha meeting disappoints. we'll tell you what stocks could benefit from oil's fall next. first as we head to break, this is the twitter and facebook question of the day. does the doha no deal change your view on where oil prices are headed this year? wti only down 3%. it was down 6% last night when futures opened. tell us what you think and we'll bring you the results later in the show.
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same story for the oil markets overnight. when they opened last night, they were down 6%. now we are down 3%. that is slight improvement in the overall outlook to help equity futures, too. wilfred, on that note, today's trade of the day, while the global stock markets are falling alongside crude, there are stocks that stand to benefit if history is our guide. we crunched the numbers to find out which names tend to perform well when oil declines 5% in a week. well, american airlines, no surprise there. dollar try and walgreens boots alliance all rise. so watch for these stocks to lead any comeback in u.s. shares today if we continue to see oil weakness. and for more, go to to check out cnbc pro. the airlines like cheaper oil prices and so do dollar stores where you can spend extra. and pepsi will report before the bell. >> a nice one to watch. the drop in oil prices
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rippling today throughout the global equity markets. we are joined live from singapore with a look at the overnight sell-off in asia. pauline? >> good morning to you, wilfred. yes, we saw the negative pressure right out of the debate here in asia at the beginning of the session when news came out of doha there was no deal. so all the major indices ending in negative territory. but it was the nikkei 225 that felt the most heat. not just because of oil but because there was a second earthquake on saturday in a major manufacturing hub in southwestern japan to hit some of the major producers. also we saw investors going to the safehaven of the yen which strengthened the yen. we'll go to the big companies, the big japanese companies that were impacted today. we'll start with sony that closed down 6.8%. they said their image sensor plants in the earthquake region would be idled. also, toyota down 3.8%
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suspending car production because of supply chain issues. this will affect models such as the prius, the cruiser and the lexus. honda down 2.9%. they said the motorcycle plant in kumamoto will also stop production. the only industry to see gains today was the construction ci industry. pressure eased off but this is not where the boj wants to be. instead of weakening, the yen has strengthened 11% against the u.s. dollar. so wilfred and sara, we are looking at what the boj will do in ten days from now in terms of what they will say and do with japanese currency. >> they have been complaining a lot over the weekend meetings. thank you for now, pauline.
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when we come back, the race for the white house. just a day until the voters head to the polls in new york. all the candidates making a final frenzied push. the latest numbers from the campaign next. and here is today's national forecast from the weather channel's jen carfagno. >> sara and wilfred, on this monday we have two big weather stories. and that is big rain, in fact, flash flooding rain across parts of texas. and then the heat. and we have that in the east, we have it in the west as well. but looking at the rain, there's going to be big rainfall texass around the houston area. we could add 10 to 12 inches of rain on top of that. so we are looking at a tremendous flooding concern there. and the showers continue into the northern plains. we have snow left in the the upper elevation, but that's up above 10,000 feet. no more snow nfor denver. and day two of 80-degree april days in april, which don't come
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very often, actually. see it again today. and in the east warming up as well. back to the 80s in miami and atlanta. that's your coast-to-coast forecast. i'm meteorologist jen carfagno. "wor "worldwide exchange" continues after this. it's more than the cloud. it'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 - all backed by an industry leading broadband network and people committed to helping you grow your business.
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welcome back to "worldwide exchange." futures under pressure this morning certainly off the worst levels of the session with dow futures pointing to a lower start, down 45.
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s&p futures down 5.5%. nasdaq futures down 10 points. again, half hour ago, dow futures were down 100 points. we have come back a lot. the story in the currency market, the dollar weakness bid. the fraction against the euro and the japanese yen. we'll watch the stronger yen as it has been a point for markets lately. but the bigger story is the price of oil selling up after producers in doha over the weekend failed to reach a deal. wti below $40 a barrel, down 3.2%. that's half of what it was down from last night. the brent international down to just below $42 a barrel. and we'll watch oil recover as well as stocks. let's go to tracie potts for the latest on tomorrow's new
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york primary. >> reporter: hi, wilfred. we'll start where donald trump has a huge lead, 95 delegates at stake. he's really leaving john kasich and ted cruz in the dust. ted cruz is actually campaigning in maryland today. kasich could come in second but a very distant second as trump continues to complain that the process is not favoring him. cruz is trying to pick up delegates in states where they are awarded by the party and not all of the delegates are awarded by the popular vote. meantime, we're watching the democrats for tomorrow. they've got a lot, 291 delegates at stake. hillary clinton is ahead by almost 700. however, many of those are unpledged delegates. the game plan for bernie sanders, if he can pick up more of the pledged delegates, especially in new york, where he is behind but not by as much as the republicans, he's hoping to change the minds of some of those who are switchable, so to speak. they can change their minds once
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they get to this convention this summer. one of the latest issues to come up on the campaign trail, money and how much of it is being spent. george clooney has weighed in on this, bernie sanders is criticizing hillary clinton for how much money she's spending. and then, finally, one of the interesting things we found in our nbc wall street journal poll, the most candidates in terms of the ones people like the most aren't the ones winning. john kasich and bernie sanders are the most popular in terms of likability, but they are not winning on either side. >> tracie, thank you very much. as ever, a big week here in new york. we'll watch the u.s. politics. the other big story getting attraction, the chinese finance minister taking a bit of a swipe at donald trump, calling him an irrational type saying he wouldn't be entitled to world leadership. so another foreign nation weighing in on the current position.
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>> no stranger to seeing japan punch back on the u.s. campaign trails, but donald is imposing or threatening to impose tariffs on the united states and calling china a currency manipulator. >> on the flip side, obama is going to the u.k. today to likely weigh in on the brexit debate as well. disney's live action "the jungle book" won the box office opening with $103 million in north america. that's the second biggest april debut at the box office behind universal's "furious 7." i love that, it was a child hood book, right? >> film originally? >> film but i just read the book. still to come on "worldwide exchange," the top stories including the big drop in oil prices. plus a live report from brazil
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where the country's president just lost a key impeachment vote in congress. stay tuned, you're watching "worldwide exchange" on cnbc. ha llovie where he fights with the girl. the one where he gets rejected by the girl. even stream the one where he creates the girl. with unlimited data, you can stream all the anthony michael hall movies you want. i wonder what he's up to these days maybe he's shopping in an at&t store? get unlimited data and your fourth line free when you have at&t wireless and directv. plus, up to $650 in credits to help you switch.
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good morning. no deal. oil prices under pressure after major producers fail to agree on a supply freeze. new this morning, brazil's president losing the key impeachment vote in congress moving one step closer to being
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removed from office. and a drone hit a british airways plane at heathrow airport. more on that coming up. you're watching "worldwide exchange" on cnbc. good monday morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. a very good morning from me as well. we'll get to the top story, plunging crude prices down 3.4%. as you can see, they were down 6% 12 hours ago. but they have had some of the losses head and they are down to 3% now. they failed on a deal to freeze output. meantime, in kuwait thousand of workers went on strike after government plans to cut wages. as a result, kuwait's production dropped by more than half yesterday. one of the reasons why the fall
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isn't bigger in response to the qatar story. >> it was a big question because mid-february oil bottomed as well as the global markets, which followed suit on hence and word of this production freeze. so it was a big question as to how much oil prices would fall. last night it looked like it was going to be very ugly and then this morning only 3.3%. really cutting the losses in half as news started to trickle through that kuwait was taking as much as almost 2 million barrels per day offline because of this labor strike. >> yeah, and i think that is a big point. and just generally as you were saying, we are down 3%, that's a big intraday move, but 39, we are still close to 40. we are much closer to where we were. >> a lot farther than 25, which is where we were earlier in the year. energy markets are sensitive this morning. here's what the u.s. equity futures are doing. they are lower but they were a lot lower an hour ago. dow futures down 50. s&p down 6. nasdaq futures down 11.
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keep in mind, we are coming off the strong week for u.s. stocks fueled by better bank earnings. we'll get a lot more earnings this week, a lot of the big cat tech names like ibm, commodity producers like caterpillar later in the week and ge economy stocks. so earnings could set the tone if oil doesn't do something crazy. right now we are looking at the 3% slide. euro stocks opened lower 1.6%. they have since recovered their losses. the dow down .30%. a lot of comeback as we have seen the price of oil come back. overnight in asia, japan's nikkei took a hard hit. exporters had to close because of the earthquake over the weekend. the stock market dropped 3.4%. smaller declines in shang lye down 1.4% and hong kong down
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down .75%. >> we are not seeing a bigger decline given the 3% slide in oil prices. australia is energy heavy down 4%. and the ftse 100 is down. the tax is up 4% and the ftse went up 2%. we should be content with not bigger declines than we have this morning. we'll look at the broader markets. the first tenure note in the u.s. -- ten-year note in the u.s., the yen is up a bit, the euro is up a bit. the pound is just under, not moving much there. we'll look at the oil prices, they are up but not much, just less than 3%. among today's global
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stories, the lower house of brazil's congress voting last night to impeach the country's president dilma rousseff. this set off a loud response on the floor of the house and a wild celebration outside the building. rousseff is accused of managing the federal budget to maintain spending and shore up support. the measure now goes to the senate. joining us on the cnbc newsline this morning is the "financial times" joe lee. we are reading all sorts of wild and dramatic accounts of brazil this weekend. just walk us through the play-by-play of what led to this morning. >> reporter: good morning. we have just come out of a marathon session of the lower house. three days of debating and this vote overnight, in which 367 of the house, of the 533 lower
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house, voted for impeachment. it's quite a remarkable result. more legislators voted for impeachment than expected. so this landslide result is for the opposition. >> joe, where do we go from here? there needs to be one more vote to see outright impeachment? >> reporter: yes. next it will go to the senate. and that could appear within the next couple of days. and then the senate will debate for about ten days. and if the senate accepts this by simple majority, president you -- rousseff could be
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suspended. >> the stock market is up 23% this year, the brazil real has outperformed on hopes she will go and whoever comes in will be more business-friendly. is that going to be justified? and what do you do with the markets from here? >> reporter: i think we'll probably see a little jump this morning. or perhaps a considerable jump. then probably investors will take it forward as it may pick up later in the day. they have been buying up well ahead of this slowdown as you mentioned. there is some reason for optimism. the vice president should step up, michel terner. he has published a document called "a bridge to the future" which lays out a large number of reforms that the market has been demanding for a long time. the most important of which you're seeing bringing the budget deficit, which has gone out of control, back under
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control. the problem is whether or not he can assemble in these fragmented times a majority strong enough in congress to undertake budget reforms. >> joe, we'll have to leave it there. joe leahy of the financial times. certainly a big rally already in brazil over the last few months, whether or not a change, a simple change atop occurs. >> and this is a divided country, a country that has been in deep recession. of course, political chaos has to rebuild trust in the financial -- government institution. >> and very high inflation and very low oil prices. >> and the outbreak of zika. >> it's a tough agenda but they have the olympics. corporate news, it's sort of the end of an era for yahoo!. today is the day, the company set the deadline for potential bidders to submit preliminary offers for the ailing business and the asian assets. the wall street journal says verizon tops the pack of
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suitors. among those not to bid, time, alphab alphabet, comcast and at&t. joining me now is victor anthony from capital management. thank you for joining us. we just listed some of the names who reportedly won't be making a bid. but there's been lots over recent weeks of people that will be, from private firms to the daily mail in general and verizon. who do you think is the most likely suitor? >> it is looking like verizon is topping the list of potential bidders. i declare they are in the midst of a strike, so that is unclear how that impacts the bid process. but clearly verizon, daily mail and private equity firms and the tpgs do look to be the front-runners or the ones most likely to place a bid. so you're at the 40-plus for
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interested parties. i thought that number would be in the single digits of the people seriously interested in buying the assets. >> would you be buying the stock? it has climbed on reports of large interest. what do you hear about the actual value and is there run for it further her? >> if you look at the core business, the core business continues to struggle. there's been talks about metrics that have declined significantly for some of the web properties. such business has been losing share over the last quarter to google. so i think it is all about the sale process. i wouldn't necessarily chase the stock. i think it is property valued estimating anywhere from $5 to $6 billion. it may go as high as $8 billion reflected today.
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>> what do you think of the entire sale of the business versus selling off in piecemeal fashion? >> well, i think selling it off in one foul swoop makes the most sense for investors. given some of the initial entrance into the property, it is really just the yahoo! mail process. so to talk about the break-up, i think it is unlikely to sell the whole thing. but you do have the alibaba assets. but those who access, particularly the alibaba shares, you may get a higher evaluation. if it declines, you may get a pull-back. but the best avenue for shareholders is to sell off the entire piece. >> thank you very much, victor anthony from axiom capital management. it's been challenging to see
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what happens to the price. we'll watch the top trending stories this morning. look at this, this is what we were worried about. police are investigating what is believed to be a drone hitting a british airways plane at the heathrow airport. that can land you five years in prison if they catch whoever's drone it was. that's why the u.s. made people register their drones so that they can have a whole list and be able to track it down. this is what is scary about drones. >> they there will definitely have more stories. i don't understand how somebody can fly a drone near heathrow. obviously the plane landed safely, nobody was injured. massachusetts senior elizabeth warren is starring in her own comic book. the 22-page book "female force elizabeth warren" rivals one by her democratic senator.
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it celebrates the lives of notable women. >> it is not about her politics, which are far left leaning going after financial firms, but more about her personal life. they have done one on hillary clinton as well and other political figures. >> a come i cic book is a good o do it. beyonce is posting a trailer for a world premier event. we know it's called "lemonade" and hbo will air it april 23rd. but no other details were given. fans online are speculating it could be an album film. she's expected to release a new album this year but hasn't given the date yet. and the reason it's considered an album is because back in 2013 she released a surprise album. so it could be interesting. >> we look forward to it. don't know what it is but everyone will be watching. still to come on "worldwide exchange," today's must reads. one on why tax reform is due and the other on china's dubious growth. first as we head to break, our facebook and twitter question of the day, no freeze deal in doha this weekend, does
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that decision change your view on where oil prices are headed for the rest of the year? get in touch with us on "worldwide exchange." we are back in a couple of minutes.
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welcome back. now to today's must read stories, those catching our attention. i went to "the washington post" because it is tax day. i got a cheerful why tax reform is doomed. writing up the economics here
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about why it would never work, he suggests a plan to take care of loopholes and he says, you know, if you get rid of things like taxable income of employer paid health insurance policy or state and local taxes, he says that if workers would have to pay taxes on their employee-provided health insurance they would scream. home builders and homeowners would denounce the real estate reduction and real estate values would be affected by that. and we'll have a charitable reduction. retirees would object to making all social security income taxable. in other words, why the tax system is so complex, it serves all sorts of interested parties like homeowners -- of course it still needs to be reformed, but he goes through why it would be so challenging if you get a new administration. >> it would be top of the agenda but a tough job for the president. my pick comes from "the wall street journal."
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entitled "why china's dubious growth." it says if beijing continues with stimulus, rising debt could lead the banking system vulnerable to a crisis. if it rains in stimulus, capital outflows could resume. behind the stable gdp growth figures, china's economic troubles are far from over. despite the gdp number last week, also despite the way the chinese stock market has recovered pretty well in the last few months as compared to the nikkei in japan, keep in mind how much is stimulus and how much is coming from higher debt levels. >> and that is really the message i heard from world leaders. i asked christine at the imf last week, yes, things are recovering and the communication is better and they stop devaluing their currency, but there is always a but in that equation. they are going through a very difficult economic transition
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and it is not always going to be smooth sailing. >> debt within the economy rose by 15.8% year on year. >> what did they tell us about a year, to a year and a half and the credit level will burst. with that note, we're approaching the top of the hour. that means the team is getting ready in new york. becky quick is joining us with what is coming up. good morning, becky. >> sara, thank you for the reminder it is tax day. i kind of forgot about it. we treated friday as it was the official day. we have a lot of things to be looking at this morning, you've been talking about the deal that never happened in doha this weekend. brian sullivan was in doha all weekend and it was like wait in forever, so he'll tell us what it means for the oil market going forward. i just said going forward and joe is sitting here, i'm in trouble. >> at the end of the day. >> at the end of the day, that's right. we'll also talk about what oil prices have in store for us and we'll talk to mohommad who is
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our guest this morning. and president rousseff in brazil. we'll talk about that and what it means for the markets. plus, we'll be talking politics. we have former new york governor george pataki just 24 hours ahead of the new york primary. and we'll be joined by larry linds lindsey. we'll be talking a lot about the first lady. and we'll talk about zika. the doctor from the national allergy and infectious diseases will be talking about that. >> wow, i think that is like 27 guests. >> that is one, two, three, four, five, six, seven. that is seven i teased and that
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is not all. >> joe said, happy patriots day for the left. >> that's right. that's what he says. >> very good. >> we look forward to it, becky. "squawk box" is in ten minutes. stay tuned, you're watching cnbc's "worldwide exchange." anka to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you.
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welcome back to "worldwide exchange." sara and i are debating a topic we'll continue later. oil prices are putting pressure on futures this morning. joining us is tyler, global strategist. we'll quickly touch on the overnight story. 6% oil prices were down when they opened, now only 3%. stocks were acting relatively fine to it.
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europe is down .40%. not too drastic. >> let's take a step back and remember in the u.s. for wti, production is down year over year. up eve inventories have come in. that's happening at a time when refiner demand is picking up as well as demand for gasoline. >> as it relates to the u.s. stock market, the bottom reach in mid-february. that strong rebound we have seen 13%, 14% or whatever. there are two camps. those that say, yes, it's on the the backup oil price stabilization. higher prices of oil. or no, it's because we are not in a u.s. recession and earnings are coming in better. look at the banks, which one are you in? >> absolutely. earnings are front and center right here and i think that is a key fundamental driver to continue the rally in u.s.
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equities. we have been saying this dollar weakness does a lot to take the pressure off the top line growth in the u.s. that's going to flow right down to the bottom line and give us a follow-through fundamentally for the stocks. >> let's talk about stocks elsewhere in the world. the title of your note i have in front of me, "six reasons to buy european stocks." sum up the key point in that. >> i think the starting point for us was definitely improving economic surprises in europe. but there are other reasons why europe is a buy right here. we've got fantastic policy support, financial conditions have been relaxing in europe. we also have euro area lending that's growing. and the evaluations are compelling. i am talking about the high dividend yields. and that matters in the industry interest policy. >> so has europe turned a corner
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in growth? >> i think it has. when you look at things like the citigroup economic surprise index, even the manufacturing pi is above 50 and i think that is important. >> in asia we have seen china manage to rebound quite significantly since those lows in february. japan still suffering a lot. is there a case to buy asian stocks or other country specifics? >> well, again, if you just look at the improving economic surprises in china, i think that is another key reason to be positive on the area. i think to a degree, some market participants are underestimating the ability and willingness of policymakers to support the economy. >> if we look back here, last week we learned that if a sector does outperform in terms of earnings, the stock price will react. the banks really painting the picture last week. as we look ahead to the earnings season, which sector are you most upbeat about? >> we like the sensitivity sectors. we talk about technology that
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benefits from the generally improving backdrop. but also domestically, the industrials in the u.s. benefit as well. >> so how much upside for the u.s. stock market are you looking for for the rest of the year? >> we have a price target of 23, 25. >> thank you so much. i'll be watching pepsi results before the opening bell. a good gauge of the u.s. consumer consumption of soft drinks and frito lay. and we'll talk to the ceo on "sidewa "squawk on the street." and we'll talk more on goldman sachs tomorrow. it was that area under pressure. so watch the expense control, in particular, in the light of lower earnings. >> the results of the twitter and facebook poll.
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does the doha no deal on oil freeze does it change your view on where oil prices are headed this year? >> 65% said no. >> have a good day. 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.
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good morning. no deal in doha. crude prices are falling as a result. today is the deadline to submit bids to buy yahoo!'s core business. a new report says verizon may have less competition than originally thought. details ahead. and presidential candidates making one last push in new york ahead of tomorrow's primary. we've got the latest from the campaign trail. it's tax day, kind of, i don't know. april 15th, we're not changing that, but this happened to be
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the last day today, april 18th, 2016. and "squawk box" begins right now. live from new york where business never sleeps, this is "squawk box." >> that was good. good morning, everybody. welcome to "squawk box." i'm becky wiquick along with jo kernan and andrew ross sorkin. take a look right now, you see wti back below $40 a barrel, down by 3% this year to 39.16. some are blaming tensions between saudi arabia and iran at the impasse. saudi arabia said they will not do it unless iran will, too. in the meantime, last week was a strong one


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