have adopted a little bit more of a euro viewpoint. we're not worried about necessarily the end customer as much as you are, you know, you're protecting industries at times. you're protecting employees. i don't know. >> but that's what's so interesting, right? saying, oh, we're doing this for the consumer. when you look around, is that who benefits the most? >> exactly. that's a deal. i guess people would say 20 years before that there was no antitrust. anyway, staples will pay a 25$2 million breakup fee to office depot. >>> in political news, bernie sand issers claiming victory in west virginia. in an interesting twist, 39% said they would volt for trump over sanders in the fall. let's bring in john harwood. sanders voters said they'd vovol vote -- what was that again? >> people talked about a cross-over appeal all primary long both dealing with a people disaffected by the system. west virginia is a very conservative state. it's just the kind of state that bernie sanders has done well in against hillary clinton because it's an almost all-white state. very rural state. he's done

pmis out of the euro zone this morning, weakest in 16 months. simon is here. >> some disappointment came through. this is the composite pmi so it services and manufacturing of 52.9. expectation was it would rise. maybe the underlying strength of the economy is 1.5% growth for the euro zone, not 2. relatively quiet start to the week other than that. it is very much the corporate stories that are dominating. the unicredit, one of the big italian banks, the ceo at a news conference in madrid suggesting there's nothing wrong, no dramatic changes are about to happen despite it being widely reported that he could be on his way out as the bank looks to become more profitable and potentially raise up to $10 billion in order to strengthen its balance sheet. another move, chrysler, a german magazine reporting that it -- alleging over the weekend that it too may have used illegal software on emissions. they are suggesting there's no problem with emissions, though the stock is down. the biggest faller is bayer as it prices the bid for monsanto at $62 billion in cash. it's a cash offer that they

the rest of the euro zone. that's after the break. olay regenerist renews from within... plumping surface cells for a dramatic transformation without the need for fillers. your concert tee might show your age... your skin never will. olay regenerist, olay. ageless. and try the micro-sculpting cream you love now with lightweight spf 30. >>> coming up, markets might be higher but we will talk about the bearish call on stocks that has wall street buzzing today. plus, what berkshire's apple buy really means for that stock in the months ahead. and conflicting calls on lululemon today. we debate who got it right today. see you in ten minutes or so. >> sounds good. see you then. >>> we are close to session highs on the dow, up 145. rick santelli has the santelli exchange. hey, rick. >> thank you, kayla. why the june 23rd exit vote? i'll tell you what. it's surprising to me that it isn't more overwhelming in one direction or another and i do think the direction i'm surprised isn't larger is the vote to leave. they say it's a close call but nobody knows for sure. things like this are diffe

index which is heavily eurocentric, and the level of the euro and how many handles it has move and the dollar yen, and even the australians and the central bank, and the cut rates was surprising to many, and face it the commodity economy, and don't confuse the economies bottoming with the fact that they don't have sell-offs, because bottoming means a lot of volatility, but you u won't revisit the lows burk maybe consolidation. and build a wooden base which is what the technicians say. and i believe that is what is happening. but the more traders i talk to, the more large bs institutional heads i talk to, when it comes to fx, it is better in confidence building. whether the central banks are playing with the currencies or actually trying to control the outcomes in the way they have historically, i can't tell you to answer, but what i can tell you is that it seems though as if you wonder what is happening on in the stocks or the dow or what is happening in japan although the markets are closed there today, and the more increased activity in fx, the more nervous it shows up on the inv

crossed 100%. 100%, and 1.1 trillion euros or 1.2 trillion of debt. think china thinking spain. sometimes, the medicine that you take is going to make the certain symptoms is different than others. back to you, kayla. >> and rick santelli in chicago, thank you. now, the housing market is back and should continue to grow for the continuing year, and ceo and design company of "house" will tell us u why. you won't see these folks at the post office. they have businesses to run. they have passions to pursue. how do they avoid trips to the post office? stamps.com mail letters, ship packages, all the services of the post office right on your computer. get a 4 week trial, plus $100 in extras including postage and a digital scale. go to stamps.com/tv and never go to the post office again. narrator: sometimes it's the things that the rest of us don't see that can make all the difference in california's classrooms. it's part of my responsibility as someone who's experienced to allow the door to be open for younger teachers. the teamwork between the teachers is essential. when we collabor

billion euros in new funds for greece. in return for fiscal reforms the euro form offering athens debt rerelief. and put this altogether, once again joining the eurozone in the bail jouout of greece. it's a better buy at 60%, i think, but -- what's that? >> i can't believe a two-year note yielding 60%. >>> talking about the executive edge. fireworks expected on the hill this morning when the tsa administrator peter nevffenger takes the hot seat. after airports testing the new security system that will hope to move you through the line faster. phil lebeau joining us this morning. good morning. >> reporter: hi, we're going to get a look at the automated screening line opening up we have a sneak peek from tsa as it was open a few hours yesterday testing the system. essentially how it would instead of one person going up and unloading their belongings so it goes through the extra machine and they go through the screening process. five people will be able to do it at once. if you're already done, unloaded all the metal out of your pocket you can put your stuff in hop scotch the person in fr

the euro at 1.12. the pound is trading at 144.74. and gold prices are under pressure, 1251.80 an ounce. >> that's a big take in the journ journal. wait until june, we could be back to 108 on the euro. >> that's the big question. the currency issue, not the fed. the traders need to figure out up this, figure this out. >>> the dow coming off the first losing streak since 2014. joining me to talk about that and where the markets are headed from here, peter boomfar, chief market analyst and cnbc contributor. and peter, we'll start with you. the markets are ready for a fed rate hike. >> the skittishness in the markets that we topped out with a month ago is sending a signal maybe they are not. the markets won't be ready f for -- both bond and stock markets, we are seven year and is a bull market. that's elevated by fed -- >> do you any the markets will decline? >> i don't think the market is expensive, low rates, low growth, if rates back this up, then the market will be exposed as being somewhat expensive. i'm very skeptical that is going to happen. the. >> what kind of raan impact? >

euro and yen. the euro is trading at 1.1146. the yen at 1.1105. gold prices look like down slightly. >>> the dow and s&p are coming off their best week since march. let's get more on this holiday-shortened week on wall street. julian emanuel joins us now director of u.s. equity and strategy at ubs. along with don sciutto. are either one of you june or july in terms of a next rate hike? >> more likely, july. >> if you're going to do it, you might as well do it in june. >> might as well and doing it are two different things, do you think they will? >> i think they will. they've laid the groundwork. i've on an advocate of they should be doing it. british is not going to affect the yen and euro as much as people think. it's going to affect the pound. i think holding monetary policy back because you convince xi to move rates -- >> we're talking about how sensitive the fed is to the notion that they surprised someone. what is that all from? are they -- generally, are they too worried about the slightest market tremors or whatever happens? do they watch it too closely? and then do they tak

basically back to where we were a year ago versus the euro. so a lot of the corporate numbers that have this headwind and foreign currency are going to start to have a tailwind. if that went the other way, i think that would be a problem for a lot of things, for oil, for commodities, and for the market as a whole. >> stocks may have been in the red today but gold and oil prices do keep moving higher. let's get to jackie deangelis with more on this. good afternoon, jackie. >> gold trading, getting a little bit of a bid, certainly looking like it's going to make a run for 1,300. it's a safe haven. as you see them rotating out of equities, they're buying into gold. the anticipation is the dollar will remain weak and the fed will stay dovish to keep gold prices supported. 1350 s it in the cards? consensus right now says yes, although, when we hit these key technical levels we see a little resistance and a slap back but oil could continue to move higher. meantime continuing in the after hours session. we haven't seen these prices since last october. it's a story of supply right now, but

like maybe it's found footing bhou is the euro going to be impacted down the road and a strength in the end is going to show us a few more negatives and continue to hear from bank of japan officials. saying we could do more. and makes everybody nervous and all of this is metastasizing. the lower revenue seems to be what most are talking about with regard to the stock market. and finally we had minus 1% on productivity. back to back negatives. first quarter this year and fourth last year. it was the same last year. first quarter of 15 and last of '14. those are two examples. i only have four examples of back-to-back going to '84 and the other two or 93 and 86. so not a good thing. low productivity is taking the toll. think japan. >> okay. brian jacobson. they are giving you litany of reasons not to invest in the u.s. and your investments you feel are outside of the u.s. right now. right? >> i do. i think if you look outside of the u.s., especially in the emerging markets those are one of my favorite areas. the biggest reason isn't necessarily because i this i the politics are good or

board. euros trading 111.8 and the pound is 147.04. >> and i'll applies. brent crude prush pushing above $50 for the first time in several months. and were some people right just a couple months ago that made that trade. also shares of takata. kkr expressing interest in taking control of the japanese firm. this coming a it is air bag supplier facing billions in cost due to the recall of those faulty parts. and u.s. foods raising a billion dollars in its ipo making the second biggest of the year. shares are trade on the nyse today under usfd. >> stocks to watch this morning. hp, inc. reporting better than expected second quarter profit. cost cutting offset a drop in revenue. amid continued weak demand for pcs and printers. outlook is below and lower degree not much watch in that stock. and costco, a pull back in spending by high income consumers who make up cost key's business base led to weak sales in april. and pvh is raising guidance after posting better than expected first quarter results. phillips van huesen. >> strong results from tv operations including orange is the new blac

. we'll debate this. the euro is at 1.1266. the yen at 109.41. >>> we've got top stories including political news, bernie sanders winning the oregon prime but nbc news is reporting that hillary clinton is the winner in kentucky. 99% tallied. she's now within 100 of the delegates needed to clinch the democratic nomination. >>> goldman sachs downgraded its equities in europe and japan. overall, goldman saying it prefers credit to equities, as valuation is not a stretch. the note citing that the fed's less aggressive tone is one of the reasons for upside in the u.s. and calls to offer a more upbeat view on commodities. saying that the fed southwest chinese data should support oil prices in the next three months. joseph. >> no, negative interest rates in a third. world, a flat yield curve here but credit is not stretched. what would constitute stretched valuations at that point? if you're actually negative -- i've been reading a lot of stuff on the effects of negative interest rates. it is say bizarre upside down situation. and it's hard for us to do the right things in this country wh

dollar let's check out currencies and you will see the dollars up against the euro. dollars down against the yen at 109.66 and gold prices down slightly by less than $2. >>> crude oil back below $50 a barrel this morning. we had another analyst on -- we don't go right to 60 at this point. do we think we test 40 and even below that. >> we're at the critical junction right now. the high back in october was 50 minneso 50.92. so if we get a failure here we would have a double top on the chart from a long distance. like i said we're at a critical juncture. so technically yeah i think we could go back down. >> cologne, sneezing -- >> i don't have any cologne. >> do you use soap? >> yeah. >> wait a minute. you're complaining he uses soap. >> no joe namath stuff. brut joemt so the funds have moved up with the move back to 50. >> the drop in u.s. production, we're down 800,000 barrels now from last year. it's been a heck of a fall and there's been heck of an aband abandonment of shale plays in the u.s. there were counts that have zero. and you have done good jobs f covering things that ha

gain for the first time since all the way back to march of 2015. dollar is down against the euro and up against the yen. gold prices down 1.5% yesterday. right now up about 1$1.60. >>> some averages are down now for 2016, right? some are negative again. >> we were very close to the dow, yeah. >>> when we come back, retailers hit hard this week. find out if there are better days ahead for the sector and what names should be in your portfolio. "squawk box" after a quick break. we'll be right back. ♪ in new york state, we believe tomorrow starts today. all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov >>> kentucky derby winner nyquist will attempt to claim the second race in the triple crown tomorrow, the preakness. nyquist starts at post position 3. i think he was in lucky

u.s. dollars, especially after this decline. >> you know, you mentioned euro, brian. what's happening with these banks? they're still saddled with underperforming loans. look at the euro. you've got to imagine mario draghi's frustration here. >> absolutely. that's the trillion-dollar question for everybody. how can they do more. the european banks are unique in the sense they're financing major financiers of the commodity boom. most is coming from the european bank nchl the world they're a unique type of species. now, ubs in and of itself, you can refer to several other things. they're horn't. their wealth management was horrible and they didn't say it was getting better, so the operating environmental for financial firms is just terrible. there's no growth driver for them. so this is not surprising. and even if the ecb does something more, i'm not sure it's something that file turs like ubs. >> it comes back to the u.s. banks. so much of that was predicated operates going higher. now they're kind of casting around for direction. >> only predicated on that. i know everyone has another

rates and you had a short rally. and then draghi comes in with his bazooka, and lo and behold, the euro happens. the currency starts to go up dramatically right to the opposite of that you're having the exact same thing happen here. what we're doing we're actually immunizing ourselves from the global pressures and it's something that will continue on an ongoing basis. purchasing and currencies and devalues our currency and that just gives our environment where we get a little natural benefit from that, but we don't have strong enough global growth to correct everything. and we're not going to be the leader on the growth side either. >> you talked about how weak it looks in the united states. but where else in the world do you go? >> we've got a problem right now. >> i dmiernmean, do you go to f income? >> from an s and l global allocation point we're sitting at a bond rating of 60%. we've got a lot more cash and bonds than normal. joe opens this by saying phil's a lot more nervous than normal. he's absolutely right. we're still in the correction camp here and we could actually see stock

look at the same day for the euro versus the dollar. it looks like it is popping to the upside. that makes sense. it's part of the dollar index. look at gold. not exactly the same pattern. but it looks like it's about trod clear the zone towards the 20 yard line, doesn't it? and last chart, the dollar-yen. this is a bit different. this doesn't look like it has as much runway. the left side is flat. that might have run out of runway. let's see how it cross spreads trade later in the session. back to you. >> all right. rick, thank you very much. a bullish call on jcpenney sending that stock higher today. what is the call? how much higher could that stock go? the company once left almost for dead. that's ahead on "power lunch." 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. ♪ >>> hi, everybody. here is your cnbc news update. a special administrator

dollar was once again i think the yen was back to 1.08 in euro below 1.14. now the latest concern in the wall street journal is the concern for the weak link in all the recent recoveries around the world, it's now a weak dollar. now we worry about the weak dollar. >> you've got to be kidding. >> no, i'm not. it's right there on the front page. >> the dollar is too strong, oh, my gosh. the dollar is too weak. >> investors are worried that a falling dollar could prove to be the weak link in the rally in stocks. >> make up our mind. what do we want? >> we are never happy. sounds like "seinfeld." we are never happy. weak, strong, we need a perfect dollar just like the perfect weather. >> 70, sunny. >> just right. >> 73 and -- >> i think we are going to hit that today. >> finally. >>> joining you to get you ready for the week, we have the chief u.s. equity strategist and deutsche bank's chief u.s. economist and cnbc contributor. guys, thank you for being here today. >> thank you. >> why don't we pick up where we just leftoff with john. he's concerned about demand and what is happening rig

that could send some people away from the euro currency into the dollar which is a natural place to go and the problem and what we've seen in august and january is when the dollar strengthens the chinese go, hey, wait a minute, we don't want that so they loosen the beg and we get this nasty side effect of dollar strength. >> i don't want to call it a currency war but maybe a currency water fall. >> we which will is chexit, the chinese exit from the dollar and china is linked to the u.s. in the zone and trying to break that and it's very difficult in the market. for us the brexit trade triggers the risk of the chexit trade. >> could you see euro dollar parrot. >> i think we could and the question becomes what does the ecb do about it because it would like a weaker euro but they don't want to be seen as a manipulator and they don't want to do it and with a brexit they get a free right. the upside it brings a lot of financial instability and relive august and january and not very good. >> and that's the point, so if you're sitting at home watching cnbc, i don't care, own shares of ge b

looking at the euro dollar. having been under a little bit of pressure heading up to the date due to the overall fed story. >> the u.s. fed was the story pushing that dollar higher. new home sales since 2008. >>> anyway, let's check in on the european markets this morning. we're trading slightly higher as nancy was just saying we have a strong finish in the states yesterday. the dow and s&p both higher by 1.5%. nasdaq jumping 2% yesterday. nice gains in asia as well. high of just shy of a percentage point at the moment. as the main european forces you can see yourself. shy of 1%, though. all of europe, though, is in green at the moment. >>> investors also welcoming good news relating to greece. policymakers are hailing a great deal in brussels this after marathon talks resulted in good deals for greece. they asked them to back down and participate in a rescue plan that would release another 10.3 billion euros for athens. dijsselbloem. >> so i think the ministers have stretched their political capital to put this on the table. >> but european chief of the imf paul thompson said that t

the weakness is. in our view the resilience of the euro that's causing this problem. >> i was going to say that. when you talk about the euro level, of course the dollar has seen a winning streak here. do you think we're still going to see this resilience in the euro? >> the does tend to sell off after if first rate hike. and it is doing that. we believe they should hike in june but probably won't. they will probably wait till september and that will lead to further weakness in the dollar and strength, unwanted strength in fact. cpi data in germany has been weak. they are importing deflation to some extent. >> domestic car makers. still valuations you could argue are cheap for some firms. some concerns other stuff. questions over whether we should see more consolidation in the sector. what is your view? >> properly, with the exception of other retail sectors. there was some pent up demand from emerging market countries. where the weaknessness of the dollar has let to some --. there really are the exception to the rule in terms of -- the rest of the retail sector being fairly weak. >

things we handicap, some of the contracts, euro/dollar future, fed fund futures doesn't look like it's anywhere near a tightening. with regard to the rhetoric, with regard to certain voting numbers, you know, holding out or voting against the crowd, is this just theater, peter? i mean, at the end of the day i don't talk to any traders that i've seen historically do pretty well trading the short end, trading the fed, so they have a proven track record, they just don't think it's in the cards. >> well, first of all, it's what yellen wants is what yellen will get. irrespective of the opinions and thoughts and comments from all these fed presidents. the fed is in a major problem that the economic data on the growth side doesn't necessarily support more rate hikes. but the inflation data is becoming more sticky. so i think they should be raising interest rates, but there's pain to that. there's pain in terms of the market response. there's pain in terms of the economic response. but on the other hand sitting there doing nothing at near zero has created its own problem. so either way th

. >> home depot. >> that's right. home depot. a ten-year, 1.76. take a look at the dollar. the euro down to 1.13. against the yen, the yen has been down, 1.06. that doesn't look like brexit to me. but who nose. the gold treading water, had a great beginning to the year, that's for sure. up for one of the best performing asset classes for the year. the question now, is it headed back up to 1500, 1600? >> stocks kicking off the week strongly as joe mentioned with the broader markets each finishing about 1% higher yesterday. economic data changed this week's market course. joining us is alison dean she's a consultant at dean advisory. and karen kindrow. i think you're both more optimistic. karen, you say all. black swans we've been watching could be surprises? >> that's right. the sentiment is pretty bearish. i think we're coming down to where the positioning is shaking it out. i'm not saying i'm predicting that but i'm saying if i had to be surprised or the market had to be surprised it's more likely to the upside than the downside. >> meaning oil price either stabilize and continue to gro

brazil, increasing severance cost by a hundred million euros. >> and unicredit is looking into sale of a stake in one of its businesses in attempt to raise capital. italy's biggest bank is reportedly considering reduction in holdings in turkey and poland. this as the lender faces shareholder concerns about its financial strength. claudia joins us now, great to see you. it also comes at a time where the ceo of unicredit is under more pressure. >> as you were mentioning the asset sales could also mean a sale of a stake of fineco bank which is a investment bank they have a stake in. there's been a lot of talk about whether unicredit does or does not need a capital hike. the market's talked about the possibility of 5-7 billion euro capital hike but that could be avoided to come with these asset sales. the big news also is the idea that this could also involve a change at the helm of unicredit the ceo that's been guiding the bank for last six years and it's implemented a plan that's wanted to avoid the capital hike may in fact be stepping down. there are rumors that a board meeting could be

terms but primarily in yen and euro terms. now i'm turning fundamentally bullish of gold in dollar terms. i am not a gold bug. i don't think the world is coming to an end but i think inflation is picking up at the margins. you are starting to see strength in the grain markets and strength in the livestock markets on a consistent basis. you have the monetary authorities almost everywhere except for perhaps the united states saying that they're going to do what they can to expand reserves in the system. all those things being equal, all those things being summed up, have to argue for stronger gold prices. gold has been strong for the past several months. likely to continue. >> the move could actually be emboldened even more if the fed gets gu-- gundlach today sayinge thinks it's unlikely they'll raise. people are saying it won't happen at all. that would theoretically help out gold. >> it helps out gold if you see commodity prices in general continue to rally. thus far the problem has been that people, because we have negative interest rates, people have been taking currency out of t

the president of the euro group was talking about the short term, the medium term and the long term, about how the debt profile can be adjusted. and he wouldn't really decipher the short term or medium term or longer term. day greece gets under the program will be a miracle. >> i think if we go back to the markets on this, we've been here before, and as recently last summer, i think the key point to focus on here and what's interesting here the market has moved away from a concern, stressing greece is bearish. in fact, quite the opposite, remember, last summer when we had a potential greek exit, the euro rallied. i think the reason for this is the euro has seen as risk on currency. on bad news, the euro actually rallies. >> what's the target? >> a high of 1.16. >> steven, thank you for now. more to come from steven from bnp paribas. >> julia, thank you. >>> coming up, isolation means trouble for the uk? from the former ceo there, we'll tell you more of what he has to say coming up after the short break. >>> good morning, and welcome back to "street signs." i'm nancy hulgrave. >> hi,

hear interest you. e-mail at "street signs" euro europe @cnbc.com. we don't bite. and we're also on twitter. >> @nancycnbc. >> and @louise isabojesen as we. >> showing you live pictures coming from their agm here. and called for a revolt of sorts taking issue with the bank's conduct fails and remuneration policies. other shareholds representatives have asked for investigation into deutsche's legal finds. we'll bring you any news as it comes out. >>> and if you are just joining us an egypt air flight vanished from radar early this morning. we'll provide you the details ne next. >>> hi everybody, welcome back. we're watching very closely the development of the egypt air flight that disappeared off radar in its flight between paris and cairo. what we know so far is that at 2:55 local time this morning. egypt air ms804 entered greek air space. and you had pilots communicating with the pilot at 3:05. and approximately 15 minutes after that air traffic controllers attempted to communicate with the pilot but to no avail. the story is still developing. at 3:26 the flight left greek air spac

at 1.705%. taking a look at currencies, the dollar is down against the euro trading at $1.13. the yen is at $108.87. and looking at gold prices this morning, you'll see they are up $11. 1,283.70 an ounce. >>> the markets are opening for a firmer week after three straight weeks of not so great action for the bulls. but the dow and the s&p was three in a row, but the s&p is doing better than the dow. here now with a look ahead, christina cooper from allianz gobl inve global investors. and the bow tie is back. remember last time he had on the -- >> he had on a straight tie and we thought something was terribly amiss. >> the market was toppy. >> was that strategic? >> strategic. >> if i was going to wear one, i want one to spin around. they don't make those, but that would be so great. talk about stocks and have it spinning around. that would be so -- it's monday. we have a 3:45 wake-up every morning. anyway, so hans, no recession. and a couple of numbers that came out, retail sales and -- both of those convince you this is pretty good where we are? >> yeah. if you look at the numbers

summer, greece is facing another round of billions of dollars, euros worth of debt payments. it is going to be another summer of trouble? joining us now to discuss is the greek minister state. minister papas, great to you have here. do you see any trouble making a payment? >> well, no. we're very close to concluding the agreement with our partners. this is our message that we keep getting from both sides of the atlantic. i think that we're at the stage where there is a need for very few steps of convergence between basically the imf and now european partners on the debt issue. i say that because you're giving me the opportunity to explain that we have achieved much more than what everybody was expecting. in july last year, when the agreement was reached, the estimation was that greece would have a recession of minus 2.3. however, gdp has only fallen by .2%. we pushed to parliament reforms that reduce red tape, create stability and make up a stable environment good for investment and business. >> we do manage to do. that now, it is the time, i think, that all sides take a few nor st

because they have bought their german rival from kkr for just over 1 billion euros. now, the firm expects to get regulatory approval for that deal in the second half of the year. investors cheering the stock up higher 11%. >>> and kingfisher of dr "y" retailer saw sales up 3% in the first quarter. the company did see weak innocence russia but it's keeping its overall financial targets on hold for the year. >>> let's get another look at ftse 100 at old mutual. the group is confirming several assets in its stake in new york's am. >>. this is part of old mutual's broad restructure. we know they are intending to split the company in four units as well. let's give you a check of deutsche bank trading in higher about a0.8 percent. this as moody's has moved to downgrade it. the rating agency said the lender's outlook is stable, reflecting potential benefits of the five-year plan. yes, confidence coming from moodies. still concerns for the short term. however, investors pushing the stock higher. louisa. >> yeah, thank you, nancy. people tweeting in already. fantastic to hear from you. i w

times. the pricing implies valuation of 3 billion euros for the division. let's get to steve cedric from amsterdam and this has been a long time coming. off to a solid start. >> yeah absolutely. and van outen who's the hub of the --. and for years we've been talking to him. saying are you going sell this unit to a trade seller. loom leds is still owned by philips. not part of philips lighting so it has been a long time. yes the shares have rallied a little from that 20 euros share price ipo. but let's face it. raw philips still owns something something something. other concerns about low cost rivals and the product and china etc. if you add in debt it has enterprise value shy of 5 billion euros. he seemed pleased with the deal and how it lets the company go forward as a stand alone lighting company. let's listen in to eric ronda larks t. >> a special day in the history of innovation and global leadership that started 125 years ago. i can tell you we invented. we technology districted the world by doing something. and today when we are having the birth of our new company we can make

left tail. you could get some very large moves including euro. that could translate into a dollar surge. you could potentially have difficulties with the global banks based in the uk. you could also see contagions start to express itself in terms of breakout risk in the eurozone. again, not in the base case but in the tail. back to the points, what i would say is the following. the only thing you give up if you wait to hike in july is a credible option to raise rates three times. so why, steve, would i not wait to delay in july if i wasn't sending some signal about the probably of perhaps having to go a third time? >> there is a matter of credibility here where the fed has signaled rate hikes. it's been six months. at the end of the day it doesn't matter a whole lot, but you get to crying wolf. you didn't do it in june. you may actually create more risk and more volatility by waiting than if you just went ahead and did the inevitable. >> i don't see that at all, steve. right now the market is priced. it's all set. the dollar isn't doing anything crazy. we're all nicely set for a j

of the stronger yen today. not too much movement against the euro and the pound. also a quick look at gold prices. how is gold shaping up this morning? it is in the green and up half a percent, 1277. >> today's top corporate story. and this is a big deal. apple investing $1 billion in didi chew shiuxing the deal comd speculation. the company has hired automotive experts and although the firm says it is looking to focus on the incar experience, some are wondering if apple is looking to build a self-driving car. that is one speculation. apple shares dropped below $90 a share yesterday for the first time since 2014. concerns about slow demand ahead of its next iphone launch which is expected in september. that is the iphone 7, weighing on the entire apple economy and share price. there is the overnight action. watch out for stocks like these. interesting son so many levels. we care about the apple angle with the stock at 2014 lows. they don't usually do investments like this. the last big deal they did in the billions was -- but they usually fold in companies. this investment in china, i

, and grade on the curve just like we don the dollar index, and the dollar against the euro or the dollar against the yen, and look at the dollar on the stretch of 1913 to today, and in an isolated fashion and benchmark it against gold, and there, you will get the honest answers. simon, back the to you. >> well, gold did have a certainly good quarter. rick santelli in chicago. >>> as the summer movie is season kicks off, could disney be on track for four billion dollar blockbusters this year? we are talking to our next guest who says it could happen. and now, captain marvel's latest is going to hit the hit the theaters this weekend, and now joining us on the phone is the fund managerer erik davis. you saw this franchise coming again? >> yes, the marvel films are getting better and better and bigger and biggering and i spoke to a lot of the film analysts prior to the film coming out, and looking at the year that disney is lining up, it is adventu adventure-sized ensemble cast, and the avepger po i haves have crossed over $1 billion, and this is the potential, and if you are looking

pressure off emerging markets. now putting pressure on the euro and yen. commodities and oil prices coming back and settling the market down. china did a trillion dollars of monetary and fiscal stimulus in the first quarter, that lifted commodity prices. corporate earnings is the red flag. negative for the fourth quarter in a row for q 12016. that's what the fed are looking at. how come corporate earnings are so negative. i don't like that. >> how long has it been since we've had four quarters of corporate earnings do that? >> 2009. >> i don't think we should forget why we did have the drops in earnings, right? it was exactly the points you were mentioning about commodities and the dollar. we have had a lot of stability since then. we'll see we had a bottom -- >> why was the market so attached to oil? >> is that still the case? >> you are seeing the correlation come down to more normal levels between the market and oil. i think what we learned is that low oil is good until it gets too low, then we start having concerns -- >> $50? 60. >> more around that level. otherwise we start getting co

the future, but not for you at home if your wi-fi connection is cutting out, and euro is hoping to the problem. the company is announcing additional $50 million funding round. and nick weaver is the founder and ceo of the company, and you are saying that people should buy three of these units across the home, and it is $500 where the standard wi-fi is between $100 and $200 and how do you convince people that they can spend $500 and solve the headaches that we have had with the home wi-fi? well, the big change that people are experiencing in the homes is that we are streaming video and connecting to devices more than ever in our homes, so when you are trying to get the perfect coverage, the only solution is going from the single router to multiple routers throughout the home. that is what we are delivering with eero wi-fi system. so instead of buying one device that you put in the corner of the home, you buy our system of three, and you plug these units in around the housement. so you will have perfect coverage whether or not in the kilt ch -- kitchen or the living room or up in the bed

points with the steepening of the euro curve. we're not seeing that. people are getting excited and you might see this rally here a little bit and just like, you know, when the banks rallied in december, they all traded off in january and february. >> do you expect the recent gains that we've seen and by the way, there's some gains a lot bigger than the ones i've mentioned along the smaller and regional banks are overcooked to the upside and are likely to reverse? >> one the things you're missing, really sold off in january and february and you're still trading where they were back in november and december so they are still below that level and they have come back, the first quarter this year, especially february, was pretty bad for the institutions, yet they have come back. people will get excited about the fed raising rates. they like it and want to hear the commentary. are they going to do it again before the election? do it one time after the election. that's what they want to hear and however they just want to think that the fed will get rates up at some point but it will take 12 t

lagarde, they're in the euro. when we were contemplating the euro a dozen years ago. it was the same call. the department of ministry was in favor. the financial times completely in favor. most economists completely in favor. the prime minister, in favor. it was the same thing, the euro doesn't work. but so cost sophisticated, people couldn't see for a currency, you need a government. and look what's happening now. real trouble. so, this group think amongst and the great and the good is very dangerous. democracy works. what mark carney thinks, he thought that when unemployment in britain got down to 7%, interest rates go up. it's 5% and they still haven't gone up. he won't get a job as a clairvoyant. >> what better place to discuss the brexit today than at the bar there. that was louisa talking getting another view on brexit. but we are serving on one more pint today. you can head to our website to find out if craft beer has lost its flavor to globalization. that's on our website on cnbc.com. >>> taking a look at global activity, volume at its lowest year-to-date level since 2009. th

billion euros. that's the size of the nonalcoholic ready-to-drink category. and unlike some fmcg categories it is growing. and we have certain pockets that are really growing like energy drinks and wareters. we're very excited about the category. and as said, the real function of this combination is to increase growth. we think consumers are becoming increasingly positive. it's still a macro economic market that has somal chas. we think there are more green chutes out there frankly. and we'll make the point that our customers are becoming increasingly more positive about the future and that's important. because we need to have this very strong customer relationship. whether it's big grocery stores or whether it's up and down the street. and one of the things we bring so strongly to customers is a value creating proposition to both grow our business and their business at the same time and to create mutual value. >> john, thank you for joining us. john brock, ceo of coca-cola european partners. >>> to the fun stories here. walt disney is vowing action against a chinese theme park o

the dollar's also relatively weaker against the euro. things like that certainly help american exporters, companys that are looking to sell their goods overseas when you see a weaker dollar that's a much bigger gain for them. it's a tailwind versus the headwind that the stronger dollar had been for most of the last year or longer. now, buffett talked about berkshire's relationship with that too. and when it comes to berkshire, its relationship with currencies it's a little more complicated. >> we have exposure to -- we do business so much all over the world that i don't really know whether it's good or bad for us when a currency moves because we have lost reserves for insurance that are payable in euros, pounds, yen. and we have some foreign currency investments and then we own stock in companies like ibm or coke that do a lot of business abroad. so i've sort of given up in trying to figure out when you tell me what currencies have done whether i'm richer or poorer. >> that doesn't mean that he hasn't spent a lot of time thinking about some of those trends. berkshire does not h

this morning. as for euro picking up a bit of strength. the pound stronger as well. gold selling off sharply on the back of the stronger dollar yesterday. gold and silver. down almost 1.5%. >> back to today's breaking news story. egypt airplane carrying 66 passengers and crew on a flight from paris to cairo disappeared from radar this morning over the mediterranean. hadley gamble joins us from paris with the latest. >> reporter: good morning. here in paris the french foreign minister is expected to speak any moment now regarding the fate of missing egypt air flight m ms8 ms804. they are also in the contact with families of the least one british national believed to to have been on board. in operations search and rescue is under way. 130 miles off the greek island of karpathos. they lost contact with the flight earlier today when it disappeared from radar. carrying 66 people on board and one of two non stop flights per day to cairo. at this point nothing's been confirmed and even egyptian authorities have slammed social media for miss reporting the situation saying wait for our press

the problem. >> since they went negative in europe the dollar has weakened and the euro has strengthened with negative rates. same thing in japan. the european stock market has underperformed the u.s. since they went negative. the japanese stock market's been terrible since they went negative. one of these days they are going to realize that negative rates are a problem. but if negative rates are a problem. and positive rates are a problem, you have a problem. so the solution has to be on the fiscal side. >> any theme is helicopter money. the fed and u.s. should do some stuff to stimulate the economy. >> we're along the path and i think helicopter money has taken on the connotation of the bernky or milton friedman dropping cash from helicopters. we're talking about paying for things not with private debt but with debt that is basically held within the central bank and is that costless? no it results in higher inflation and ultimately savers in terms of negative restaurants it is the savers that is being taxed. but somebody has to be taxed and that is the way i see it going.

leaders met over the weekend. the euro/dollar is weaker. the japanese yen is putting pressure on the japanese stocks overnight. >> i would say even though we didn't see a huge reaction in equity markets, we saw a big reaction in the u.s. dollar with the broader index up 1% in response to the fed minutes. the g7 finance committee is wrapping up meetings in japan. they are issuing a warning against japan and currency marke markets. u.s. secretary's opinion is different. >> it's interesting what we have been hearing from the japanese over the week. >>> it's a busy day on the data front. look for new april home sales tomorrow. thursday we'll get april durable goods and pending home sales. then on friday the second estimate on first quarter gdp and may consumer sentiment. most of the big earnings are out of the way. if we do it, we have to look at the earnings session, which has sort of been -- it's felt lousy, but overall things are only down 2% to 3% and revenues are actually higher for this overall quarter. >> it's the guidance. the oil prices haven't recovered to the sentiment gauge.

, the dollar not doing too much today. a little soft. but as you can see, the euro only moving by 0.5%. against the yen, we've got a 0.5% move. and pounden an interesting one to focus in, 1.445. it was up as much as 1%. you can see that on the chart. that was basically the poll that came out earlier talking about the brexit vote. and then on the less watched internet poll, but on the more watched telephone poll, it was eight points ahead. that gave sterling a boost earlier. but 0.3% in april expected to be 8.5%. that's led to a slip in the pound. gold prices very quickly as well, and we're looking at declines today by 0.15%. >> yeah, other prices like factory gate inflation i guess as we output price by 1%. it is interesting, online, it's a higher voting out. i wonder if that's a younger demographic. >> yeah, i don't know the details. the ft has a poll of polls always that brings all of these other ones together. at the moment, that says 46% stay. 44% leave. >> it's a big factor. >> on the exit camp we'll see high turnout. those people who have wanted his referendum for years and year

know, versus the euro 113, 114 range we'll be fine. >> back to the big deal itself of course positive reaction in the stock market both in your shares and cse shares, but some people saying how did you get to 8.5 billion? >> yeah. >> that's how you're valuing the enterprise services business. >> right. >> a lot of the old ede assets. >> well, it's a negotiation like any other deal, right? you know, how much is the e.s. asset worth inside hp? and how much would it trade for if it was a separately traded company? so you look at multiples of revenue, multiples of earnings, multiples of ebitda, and then you look at what you think the growth rate and earnings capability and margin expansion will be and it's a negotiation back and forth. >> of course. >> meg -- >> sorry, carl. >> i would like your opinion on brexit, election, what are you thinking? >> so brexit we hope britain will stay in the eu, it will be good for our business. in fact, i think it will be good for the eu. the fed hike, listen, you know, i don't know whether that will happen or not. obviously we have debt on a lot of our

on more easing talk for markets to rally. the euro, 1.1142, has some reprieve. gold prices recently, weaknesses by half a percent. >> dollar is strong, flip side, gold gets hit. >>> jim bullard said a june hike isn't set in stone. but in an interview with cnbc, bullard did argue that market data suggests it's time to pull the trigger. listen. >> obviously, we try to be data-dependent, i don't think there's any reason to prejudge the june meeting at this point. we can wait until we get to the meeting, see what the data say and try to make a good decision there. i think on the issue of press conferences we have made many moves over the years, without press conferences. so, i think we could make a move without a press conference in this circumstance. >> keep in mind, no press conference at the july meeting. yes, in june, opening up the suggestion as other regional fed presidents this week have for two to three rate hikes this year. as for the risk of brexit and the chance that the uk vote could give the fed pause in its june meeting. bullard says he doesn't consider it it quite the glo

wants currency weakness.dollar is weak, the euro is getting stronger. so increasingly, we're in a world of more and morme and mormon tear policy. >> as we get closer to the g-7, you can bet that's a topic of discussion. you made the point that ecb wants the corporates to level out and spend. in we get there how do you think it manifests itself? are we talking organic growth, m and a? >> i think the greatest success has to be an m and a cycle in europe. in monsanto, it's a great test case for how this may play out. if that deal transpires from a german company potentially that debt will be eligible and buyable by the ecb. we could have the first ecb helping us and taking over the world. >> barnaby, you're staying with us. by all means get involved. it's fantastic to get more people on this table. e-mail us @streetsigns cnbc. that's the address. >> i'm directly @nancy at cnbc. >>> now, i always thought i'd marry prince? >> did you? >> yes. i always thought -- there are so many of us massive prince fans. the types, the jackets, the cds. >> did you ever write him a letter? >> i didn't

expectations to post quarterly profits of 1.8 billion euros. >>> in paris, bucking the trend, revealing better than anticipated, and a rise in profits? >> that's right, louisa. in fact, it was a 10% rise in the net income of shareholders over the same quarter last year. so that is good news. i spoke to bnp-paribas, he told me that they were yabl to offset the first quarter largely due to lost containment. and loan provisions. that, of course, is good for the bottom line. i also saw resilience. but you can't ignore the corporate and institutional banking unit. a dropoff in trading revenues and also in the commodities and currency business. that's a double digit in the percentage region as well. for now, the bank is sighing they are managing to offset the negatives by containing costs. however, they were a bit cautious on the outlook. they wouldn't state exactly where they see profits and revenues going for the full year. overall, they hope to be on target, and they did get an uptick on the capital ratio just on the quarter as well. nevertheless, when it comes to predicting what's ahead. you hav

nine sessions. as for early trade in europe, let's see where we are on the board. that stronger euro with european stocks, looks like they're under pressure again with the german dax down 0.4%. overnight in asia, also a lower picture with some of the lower markets back open for trade and lower. in hong kong, down 0.25%. australia giving it all back today. at least some of it back today. the shanghai composite ending flat. >> energy sector taking the worst. declines in australia. particularly bpp. the the energy sector across the board is reacting to in australia. oil prices there for you today. we're down a little further for wti, 43.6. as we said, we saw declines of about 2.5% yesterday for wti. part of that was down to the u.s. dollar, which we'll come to in a moment. first, with the bond, let's have a look at the ten-year u.s. treasury note. we did see yield compression. we saw significant buying on a risk-off day pushing it 1.78. back to 1.8 as i speak. as i said, the dollar was an important factor yesterday. broke its recent trend of weakness. saw a bit of strength and that hurt

are seeing a stronger u.s. dollar against the euro. we're back in the $1.13 region after a weaker than jobs report out in the u.s. on friday to put pressure on the u.s. dollar. that's reversing this morning. >>> a weaker than expected headline number. but the markets didn't seem too spooked. we ended up slightly on the day. >> we don't have to worry about the rate hike. >> right. but the underlying data wasn't so negative it got to the point where we thought, we have a terrifying outlook on the economy either. >> and wages came in better. that was one of the better parts. >> interesting when we see this break either way to the stronger side very clearly or the weaker side for three or four months in a row like this, the only way i can see that the dollar reacts would be stronger on either outcome. because either you get global fears that growth is not going to be strong enough and the dollar becomes a safehaven again or you get the chance of rate hikes and get a stronger dollar again. so this weak dollar we have had has huge momentum behind it particularly against the euro, it's h