ubs down by 4.5%. they missed estimates on a range of numbers, the new net money figure looking positive, but it wasn't enough to take the negative story out of the headlines. 2.45%, stronger in the asian session and stronger here as well. commerce bank was weaker this -- commerzbank was weaker this morning, halved as market turmoil hit the numbers. earnings beat analyst estimates that revenue did decline. it's really what they have to say about 2016 and what they will achieve this year versus last year that takes the edge of the share price. let's get the first word news juliette saly. juliette: thanks. the chief investment officer of one of america's biggest pension funds joined warren buffett in scorning money managers who gains.20% of their broken.d the practice >> as an investor of capital, we negotiate hard. and i have said very clearly, the20 model is broken; large institutional investors are off the table. we're negotiating much lower management fees. the english premier league was clenched by

what's more, ubs would only have to give up 4,450 tax evaders out of 19,000. there was no explanation as to who decided which names were divulged and which ones got conveniently buried. mr. birkenfeld: why wouldn't you get all of the names? sharyl: in essence, the secrecy has been allowed to continue, instead of being stopped? mr. birkenfeld: well, that's precisely it. it's a continuation of swiss bank secrecy, american-style. this was not a real investigation. this was to cover up for the rich and powerful people in this country, the millionaires and billionaires, and politicians who had accounts in switzerland. sharyl: clinton and the state department and the justice department declined comment for this report. earlier, clinton defended the deal by saying the swiss helped the u.s. on many difficult diplomatic fronts, including in iran and turkey. not long after the deal was sealed, president obama was seen enjoying a round of golf with ubs chairman for the americas robert wolf. wolf told us he didn't know about the deal beforehand and the u.s. businesses he

we have ubs coming out. manus is all over this one. ubs? manus: thank you very much. yes, let's get into the numbers in terms of ubs. money is coming into the bank in the first quarter and america and they are taking additional responsibility to cut costs. this is what drives the heart of , $15.5 billion came in with a net income of 7.7 million swiss francs. wealth management, pretax profits. that is the wealth management number there in terms of that. they are taking responsibility for cost cuts. this is the big piece of news. the investment bank, pretax profit there up 253 million swiss francs. so, it is a myth on the net income numbers. the estimate was for 735 million swiss francs. the pretax profit was 178 million swiss francs. the wealth management pretax profit was expected to have a 20% drop. if you are a customer, the conversation is there on your top live, in terms of the rates. ubs says low rates and a strong franc continue to present headwins. -- headwinds. back to you. >> rba cutting. the ubs, as the trifecta of bank earnings. we hadof that earlier, the i

this is the picture for ubs and pnbnp. the stoxx 600 for the banks overall are under pressure to you can see commerzbank. one of the worst performers after disappointed earnings, earnings that ubs did the same. bnp was better than expected and so was hsbc. we have a lot of concern about the italian banks. banco populare has just been halted. i believe the italian banks under pressure because media ca put out a note saying that the problem with the new is that it will exacerbate some of the losses or will bring losses to the forefront. we will be watching the banks closely. up next, has puerto rico defaulted? we will look at what is happening in the commonwealth and what its latest missed payment could mean for the u.s. ♪ proto-we go has warned bond investors they face a cascade of default -- puerto rico has warned bond investors face a cascade of defaults. let's be to michael mckee. what exactly did puerto rico do? it there seems to be some confusion as to whether a defaulted or not. were government development bonds but

ubs said its first quarter drop it -- his -- ubs said its first-quarter dropped in the first quarter. it was a great interview, because he put it very simply. one thread in, for the first quarter, and that was risk aversion. this is why bloomberg clients have read this the most here in europe, because they know what is going on in the banking sector. they want to know what happens next, and this is what sergio had to say. >> it looks like we are seeing a very challenging environment because none of the issues in the last few quarters are disappearing. macro issues -- microeconomic issues, geopolitical issues, are now coming on, and we are going to brexit, theote on escalation coming from the u.s. elections. potentially uc see a lot of factors that may affect the markets. in that since you see volatility , but it is not the kind of volatility that is translating client activity. it is a paralyzing volatility. they have never seen transactions this low. clients are simply not doing any business right now. this was an abnormal quarter, but that is the big question. does it become abnorma

it is a tough quarter for ubs. says europeribas is a showing resilience, but it has been a challenging first quarter. >> but of course, there was a marketlarly unfeasible environment, particularly at the start of the year. hsbc has seen profits come in at $6.1 billion, despite loansrs forbads for bad doubling. the inflation outlook, meanwhile, has the yen surging. welcome back. this is "countdown." i'm anna edwards. we have had a host of numbers from the banking sector and plenty of other numbers from the airlines and carmakers. there is a lot going on. let's have a look at the futures at the start of the european trading day. numbers are stronger across the european futures, or across the european equity scene. up by acks are fraction. the ftse 100 is up by .5%. yesterday, we saw a decent stock rally in the u.s. there was some speculation about just how much support there would be from different banks. all of that is feeding into the trading environment. will we see those kind of futures turn into reality in an ho

as you rightly pointed out another tough quarter for ubs. the ceo describing low price action volumes pronounced risk aversion. and i got no real sense from him that anything is going to change. stark contrasts from duchl bank and bnp paribas as markets have rallied. what we've got is obviously adjusted profit before tax. and when i spoke to the ceo, he talked about the asset management business and said this is the worst quarter for equities in 18 years. the bright spot was the wealth management division. 29. swiss work of inflows which is great. but what do you do when clients with risk, you're holding huge cash balances and you're fighting negative rates. i'll tell you. you lose money. list ton what the ceo had to say. >> management is suffering. traditionally when you would see historically such a transaction of activity. clients would go into cash and a as a bank, you would make some money usually out of your deposits, right. in this environment, zero or negative rates you make no money or you lose money. and in addition to that, throug

ubs among them. i think you will continue to see those plans come through that you will also see more pressure from investors to go beyond those initial plans if the markets don't pick up. a lot of the sentiment we've hasd orbital last few weeks been, those plans were great for the environment we had at the time. if that is significantly worse you need to readjust. megan: how much further than -- can they cut? we have seen massive job losses. how much further pain can they withstand? the point about the divergence between the u.s. and european banking systems -- they are in very different places. the u.s. did a lot of the hard work coming out of the crisis. they raised capital, transformed their business lines and today they're in a much more stable situation. the european system is still going through that transition. i think the european system does need to think about capital and business lines and strategy going forward. the u.s. has already done that transition and i think that is responsible fo

ubs, first-quarter profit falling greater than estimated, 64%. market turbulence a running earnings at the world's water management securities unit. this is an intraday chart. hsbc propping in the first quarter, rising more than estimated. the chief executive paring back costs. hsbc down 1.4 percent. bnp, france's biggest bank posting a surprise increase in first-quarter profits. a decline in provisions for bad loans helping offset a slump in trading revenue. bmp was higher. looks like it will finish the day down by three quarters of 1%. last but not least, it almost was last, the bottom of the pile on the bloomberg banks index, the stoxx 600 bank index, 9% lower today. earlier, falling as much as 9.8%. the most since 2011. germany's second-biggest lender, first quarter profit harping market turmoil once again causing a drop in revenue. that is the bank. this is aberdeen asset management today. the scottish firm reporting a further 7.6 billion pounds of net outflows in the first three months of 2016. climbs continue to withdraw money from equitie

ubs profits fell greater than estimated. market turbulence eroded earnings and the wealth management division. ubs shares are down 8% today. first quarter profits rose more than expected. the chief executive is paring back costs. shares are down 1.5%. there was a decline in provisions and bad loans that helped upset a slumping tape -- trade revenue. it still down by a fifth of percent. commerzbank, germany's second against lender, market turmoil causing a drop in revenue. a quick peek at what's happening. aberdeen reports 7.6 billion pounds of net outflow in the first three months of the year. clients are withdrawing money incomeuities and fixed funds. the had the biggest drop since 2008. shares are down 9.6%. u.k. manufacturing has contracted. we haven't seen this the last three years. this is a worry for the economy as we approach the big referendum on june 23. coming up next, david stern joins us from the milken conference in los angeles. he talks about running a professional sports league. that's next. ♪ mark: live fro

it is credit suisse versus ubs. it has been normalized, so the column to your right shows the percentage decline in 2016, clearly conceived ubs has outperformed credit suisse but still ubs down 18%. credit suisse down 33%. what does it take for james bevan to change his view on european investment banks? james: i want to see a real advantage. on to see a reason why these two players can be winners. the only exposure that we have two goldman sachs are the investors -- technology will give them a cutting-edge. they will get better margins. they will succeed. mark: who is doing best in europe? if you had to pick one investment bank, does one stand out against the group lack of james: -- against the group? james: i would be thinking about credit suisse in the european context, because they do have a very strong franchise. the have great people. new problem is if cost-cutting involves significant job losses, we don't know if the good people will be the ones to leave. mark: let's talk earnings. ea function, earnings analy

news about ubs. she, negotiated shortly after becoming this. they deal with ubs. 40,000 of their clients that were basically going to get convicted of trying to evade taxes, they got off the hook. you know, a short time later, the oakland in has his biggest speaking of a year. one and a half billion dollars from ubs. they may not be connected. if you are the secretary of state and your husband is taking speaking fees from an organization that you are working on behalf of, that should raise one red flagged. >> it certainly should. talking about running for president eight years. let's not do that. making certain commitments. i think that the foundation is far more scandalous than anyone else. i do not know if it is time to get into it. i think at the end of the day, that is where that. >> he certainly does. the research will go hard and fast. trish: ed rollins, thank you very much. his relationship with women will all be addressed in making kelly's exclusive one on one interview with the republican nominee. here is a sneak peek without donald tr

alix: that was the ceo of ubs. of bankingthe topic blues, canadian western banks tumbled the most in seven years after the lender said it would take about 26 nine dollars in provisions thanks to oil and gas loans. amanda lang joins us now from toronto with more. the bank is in good company when it comes to hear and the u.s. as well. moneyhey put aside enough to cover those loans? >> the question is that. the canary in the coal mine of how bad this could get, canadian western bank is pre-announcing. it took the trouble to say it would set aside more. on annual basis, double what it had previously guided two. the name actually tells the story. it is a relatively small bank based in alberta. it has developed deep ties in the region. that has meant for great success. 40% of its loans have exposure to the weak price of oil. we see it show up here in the numbers. the question will be, is it conservative enough, what are the assets looking life -- looking like? works hardank that to diversify regionally. it knows this is

nick nelson of ubs is still with us. nick, investors are waiting on the fed today. but here we're still waiting on the ecb waiting for action to take effect. one of the big one corporate bonds in a few weeks here. how is that going to impact trade? >> well that's a good question. we've seen spreads tighten dramatically so. an aggressive program given the parameters they're suggesting we would highlight this massive gap in dividends and corporate credit yields. equities have got dividend deals of 3.5%. the dividend is more attractive than the corporate credit. >> and just before we go, any favorite sector at the moment? >> well, i think cap goods industrials are pretty right especially domestically exposed. >> that is the word of nick nelson head of european strategy at ubs. a real pleasure to have you with us today. thank you. that is it for today's show. i'm nancy hulgrave. "worldwide exchange" is coming up next. >>> good morning, breaking overnight, japan gdp growth surprises the markets. >>> new this market, goldman sachs threw up a caution flag. we'll tell you w

first quarter earnings and they drop by two-thirds at ubs as market volatility bites. >> in this environment, zero or negative rates, you make no money. or you lose your money. and in addition to that, with new regulations, you have used capital requirements. so it's a double whammy. >> but hsbc and "b" bnp-paribas. >> particularly domestic markets and international financial services have held up well. >>> pricing pressures, ground shares have lufthansa and the german airline reporting at lowest capacity for the year. >>> this right here, that's the moment leicester city players become champions for the first time in the club's 132-year history. what a celebration, against all odds. what a celebration. incidentally, our.com team has written up great stuff on that victory. if you're interested on the football details head online and take a look at the piece by our cnbc.com team. an hour of trade. we've got a lot going on. our stocks lower by 6 percentage points at the moment. we're trailing a little bit. we're being led down by basic resources stocks down. after the likes of lufthansa pullin

ubs telling cnbc it is the right decision. >> in my view, it's likely going to happen reflect be a stronger u.s. economy. and in that case, i don't think it's a mistake. >>> shares in seb met a record high by german rival wmf. >>> deutsche bank has been downgraded over its massive strategic overhaul. >>> and oil refineries shut down across france as protesters protest overall labor reform sparking widespread fuel shortages. >>> hi, good morning, everybody. welcome to "street signs." very glad that you're with us. we've got an hour together. packed show, jam-packed show this morning. >> that's right. >> we're trading a little bit higher on european equity markets as seen here. a little bit of a half a hump this morning. >> we did open in the red after the softness on the asia markets. about 30 minutes in, we got positive territory. >> asia, we'll have that report in a minute. here in europe, hanging on to that little bit of green. let me just show you some of the european equity markets. cac 40 up by 0.7 percentage point. and the ftse mib and the ftse and dax a bit higher, too. a lot going o

we had the swiss banks credits bounced up higher and ubs four shot below. there is more stock specific. here similar themes across them. for bank of america, the real theme is interest rates. such deep sensitivity. we know the cost cutting. descent but cost to revenue ratio high and without interest rate rises thanks needs to come down if they hit the target which is 10%. >> thanks for coming by. >> pleasure. >> such a tight turn around. catch wilfred frost at 5:00 a.m. >> early. >> plenty of time. we have time for a drink in between. >>> shack shack surging. the company raising the full year guidance. what's the shack doing differently and a look at net flex? one trader that has gotten much low tore go from here. how low? we'll tell ya when "fast money" returns. ♪ amazing sleep stays with you all day and all night. sleep number beds with sleepiq technology give you the knowledge to adjust for the best sleep ever. it's the semi-annual sale! save $500 on the memorial day special edition mattress with sleepiq technology. know better sleep. only at a sleep n

a former ubs executive who joins them in 2016. that is the bloomberg business flash. francine. francine: nejra cehic there. go short is one of the big ideas of one of the hedge fund industries. billionaire stander could miller says bull market in stocks is done. oh-fer gold. -- go for gold. borderline phil state -- fail state. as john kasich follow ted cruz bowing out of the race, jeff gordon lack says prepare for debt. you are going to get a reagan response with donald trump. he promises a wall, ring jobs back -- bring jobs back, let's face it, trump is extremely comfortable with debt. let's introduce our guest. pau great to have you on the program. there are a lot of big ideas. there is uneasiness. equities need to have a little bit of a correction or he cannot go much further from here. pau: -- doe you go it hasee back up pau: been going up since the 11th of february. at the time when profit margins has been disappointing. there is a bit of catch to do. equity prices need to make sure they wait for those earnings to react. if the margins have been better, the expectations ha

we have ubs down 6%, there is credit suisse down 3%. two of the biggest name certainly suffering this morning. insuranceide, zurich is trading up custom nevertheless, the banking sector is front and center today. some fairly significant losses being generated. 4.22, but ubsdown is down this morning. let's find out what is going on around the world. here's the first word news. shery: nissan has confirmed it will purchase a 30 force -- 34% stake in mitsubishi murders. -- motors. be shee comes as mid to motors has been rocked by a fuel economy testing scandal. earlier shares jump by 15%. the bank of england hold it penultimate meeting before the eu referendum today while all economist at a bloomberg survey predicted no change to the interest rates, merrill lynch of thene or two nine-member panel may vote for a rate cut. where mark carney will be scrutinized by both sides of the brexit debate. that is the concern the outcome taking a toll on recent services. investor looking for 30 year bonds has made them, they were to one manager, the mos

let's bring back in our global macro strategist from ubs. debt that deal fails -- if that deal fails, the impact for germany is huge; the impact for the french presidential election is substantial; for greece, substantial. this is a serious, serious development from the european point of view. >> and also for the u.s. the u.s. is obviously partnered trying to quash isis. for them it is a big strategic relationship, and they will be very worried about will happen to that relationship, given this development. and i was in the office late on wednesday -- we watched in horror, the strategist who has been there for a while -- it devalued by 4.5% in a matter of minutes. the market impacts will be large initially, but as you say, the centrifugal forces that occur as a result of the migrant crisis would much more damaging, particularly for the brexit campaign, but also for marine le pen. guy: and we have elections coming up. talking turkey more specifically, wednesday night, big move. it came out the little but the next day. the market is clearly ne

coming up next, ubs is betting on two rate hikes at the fed. hear more from its global economist coming up next on "first up." ♪ angie: 8:16 in hong kong. here are the stories making headlines. the wildfires in canada's oilsands region have knocked out more than one million barrels a day of production and are threatening to spread to neighboring saskatchewan. at least 80,000 people have left their homes in the town of fort mcmurray, further damaging an economy suffering from cheap oil. canada's biggest energy company suncor and phillips 66 have pulled workers out of the danger area. north korean leader kim jong-il and has told the party congress he would not order a nuclear first strike. he told delegates that the north is a responsible state and would only use such weapons if attacked. kim announced a five-year economic plan, north korea's first since 1980. it is intended to revive a stagnant economy and improve agriculture and light manufacturing. he called for better relations with the outside world. authorities have asked interpol to issu

er,s is a tough blow for ub but they say china may be their biggest market. so they won't be giving up anytime soon. anna: thank you very much for joining us. selena wang. up next, his strongest warning yet. mark carney rings the alarm on break that, causing controversy. ♪ anna: welcome back. this is "countdown." 7:20 this friday morning, 8:20 in frankfurt or paris. day; we will talk about brexit in the moment, but first, let's get the bloomberg business flash with the yvonne man. yvonne: thanks. apple has invested $1 billion in the ride healing service didi. it is the second largest investment they have ever received. apple will help them build their data driven ridesharing platform as they serve a 300 million users. other investors include alibaba and tencent. european market share has narrowed for an eight month in a row. the automobile manufacturers association says vw's form of market share was 23.9%, of lowest level since 2011. the german carmaker has been losing ground against rivals since it's emissions test cheating. japan's biggest banks may forec

nicole: ubs missed quarterly numbers and that's putting pressure on bank stocks we have seen. germany dak down, cac quarante down 1.5% and ftse in london down nearly 1%. lauren: yesterday the stock market had up arrows for the nasdaq, look at this, selloff 102 points, s&p down 12, nasdaq down 29 points this morning. nicole: here is a look at oil and gold, 44.50, barrel down 28 cents, gold is gaining 12.99 a troy ounce. lauren: if you flip over to the board you can only see mexican peso is downing on the value of the euro, the canadian all trading higher versus the dollar. nicole: here is the yield in ten-year treasury. lauren: apple shares are down in a row, if the stock is down today it would be the longest losing streak and shares are down about one half and 1% in premarket trading. iphone sales fell for the first time ever in a quarter and revenue fell for the first time since 2003, apple shares are down 23% in the past year. nicole: jury in missouri has paid johnson&johnson to pay $21 million. and she had to undergo a hysterectomy. a jury order it had company to pay i'm so

thank you to julian emanuel of ubs. a quick reminder that fed chair janet yellen is due to speak at harvard university today. you can catch our coverage of her speech at 1:00 p.m. eastern. still to come, questions are swirling around apple's media ambitions after report reveals a consideration for a bid on time warner. ♪ mark: live from london and new york, i am mark arden. shery: -- i am mark barton. y ahn. i am sherr gdp rose 8/10 1% in the first three months of the year, up from one half of 1%. damagee the flex last from trade and inventories. household spending rose more than estimates. eight automakers are recalling more than 12 million vehicles in the u.s. according to documents posted by the national highway traffic safety administration. the inflator is a responsible for 11 deaths and more than 100 injuries worldwide. the japanese transport industry is recalling 7 million vehicles with takata airbags. and the world's largest private sell thevestor will blackstone hotel group hotels that operate under the hilto

ubs and credit suisse have normalized at 100. these are the 2016 performers. deutsche bank shares are down by 28% and barclays is down by 17%. sse's lower.ze hiui an interesting support from switzerland. swiss watch exports have suffered a second month of a double-digit decline. it is widening well beyond hong kong to europe. exports have fallen for the last 10 months. exports to hong kong, the world biggest market for swiss timepieces, fell for the 15th straight month. shipments were down. shares of richemont are lower earlier. i've done a little chart showing to big european watchmakers and how they have fared. swatch down 24% and richemont down 32%/ i. i want to finish on mark carney in the referendum. the euro continuing to fall today to 76 pence. we are at the lowest level since february right now. it is further evidence that the remain camp is gaining ground. older voters in the u.k. previously found to be backing leaving the eu are switching sides. afteralso showing concern mark carney today telling lawmakers the referendum is creating substantial uncer

guys, back to you. >> for ubs anyway. >> nothing like confused rich people. >> yeah. bob, thank you. we'll see you in a little bit. our bob pisani. our apple shares are up right now. they're trying to avoid the session losing streak. hate an eight session losing streak. apple ceo tim cook telling jim cramer last night that india poses a great opportunity for the tech giant. >> this is another huge one. >> okay. >> india will be the most populous country in the world in 2022. india today has about 50% of their population at 25 years of age or younger. it's a very young country. people really want smartphones there, really want smartphones. and this year the first year, lte begins to roll out. huge market potential. >> well, despite apple's uptick today, tech stocks overall are dragging the nasdaq lower. bertha coombs is in the middle of the action site in times square. bertha? >> that's right, bill. we're seeing weakness particularly with small caps. biotech is off 1%. the big caps are weak as well. the fang names, facebook, amazon, google, and netflix all lower and a

versus ubs falling quite significantly. i think the individual company issues still rocking what the european bank themes in general across both side of the atlantic. the other area -- >> weak trading. >> weak trading. and m & a number is not too bad. even though that's an area that the business is moving away from. less bad than what people expected. >> it's a relatively light day for earnings in economic data. the national federation of independent businesses puts out their report at 6:00 a.m. eastern. that's wholesale trade and job openings. joltss at 10:00 a.m. norwegian cruise line reports results after the opening bell, we hear from disney and electronic arts. landen joins us. >> wall street is looking for earnings of $1.40 per share on revenue, 13.2 billion. but beyond the numbers here are three things to watch first, succession plans this will be the firm's first fall since the resignation of the ceo. and it's not expected that we heard the name of a replacement, iger plans to leave the firm in 2018. second, espn, c

potential candidates including ub boss, and aitaly's head marco morelli. joining us to talk about this is a senior analyst. good morning, welcome back. >> good morning. >> why have things taken this thing for the worse with unicredit? that's the way it feels it's been a long way coming. >> yes, indeed, it seems that investors have lost patience in the way that the previous management was actually dealing with a number of challenges. >> and now we hear there are possibly three people who could be in for the top job. what's going make the decision for them? is it going to be based on nationality? is it going to be based on potential m & a activity, in which case the ubs executive might be the one? >> it's difficult to speculate. a discussion process has started. and we'll know by the 9th of june, we'll be taking over. it comes down to this strategic plan that unicredit will put in place after that. typically, investors are looking at the amount of potential issues. 5 to 9, 5 to 10 is the rough record of the new money that could come into the company. so ther

you have the ubs saying we have to cut but not too far because we will look silly. deutsche and barclays are still on the wrong side of the cost base. francine: it seems that we do not really know at all who is going to take over as the but ubs has a cloud of great managers. the names i have heard , there are a tenet of names that are not from ubs and they are not just investment bankers. what we saw with standard charts with crime moving, with staley, just bringing a banker with good investment experience to something like unicredit, the problem is bad debt. we need somebody who has proper experience of the italian retail and corporate sector. tom: john, you are a noble guy. we had a noble experiment yesterday and it went worldwide. fold in on negative interest rates and how it affects your analysis at bloomberg intelligence. jonathan: i think one of the problems with negative interest rates is the trading book. the ecb is about to give the banks another few hundred billion paid in 40 basis points to lend. banksve banks and swedish saying, we do not want to pass th

emily: ubs analyst steve. still with me is alex webb. he couples -- covers apple for us. what is your take away he said? it makes sense that the iphone 7 would have increased demand of about 8%. alex: is probably reassuring to investors. the question has been to extend to which there is pent-up demand. he seems to think there is. if you look at what we have in the system, there is a fiscal year sales decline predicted but i think it is a 4% decline. that is the current consensus. that is far less the sort of 20% decline few have seen in the quarter so far. emily: there is a narrative going on. carl icahn sold all his shares. there is some questions about whether apple really is a growth stock in the future. when we look at the services, and this goes back to apple music and the idea it will ultimately make up for some portion that hardware will not account for the future, how much growth are we expecting in the services business? like how much potential does , apple music have if they get it right? alex: your got to think about this in a few different ways three of. as a

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so ubs down 7.5%. jpmorgan, wells fargo, credit suisse, all of them moving lower anywhere from one and two-thirds percent to nearly three percent down. but auto sales are on the right track. the winners and losers, though, are what we find most surprising. italian-based sort of new york company depends, fiat chrysler, actually did pretty well. ford, toyota, honda had a mixed bag here, but nissan, all of them together saw increases in sales mostly on their truck and sport utility vehicle side. gm, you have to hear this. gm saw sales fall about 3.5%. why? in very large part due to cadillac's disaster sales. cadillac's april sales fell 29%, but the company said that pickup truck sales remain very strong. volkswagen fell 10%, that's due to the residual effects of its emissionen scandals, but auto sales are usually a good indicator of consumer spending. does this give credence to the idea we might see a rate hike in june or some other indicator investors should be watching right now? the traders always have

drew matus from ubs. that's it for "worldwide exchange" this morning. "squawk box" is up next. >>> good morning, could it be? two in a hrow, stocks rallying answer the world with crude at highest level in seven months. >>> and st. louis president bullrd signaling that july will be a meetinging. we also hurt his comments on jobs and the brexit straight ahead. >>> and ant anti-trump protest turns violent in new mexico. police in riot gear use pepper spray and smoke bombs to disperse the crowd. it's wednesday, may 25th, 2016. and "squawk box" begins right now. ♪ the heat is on >> announcer: live from new york where business never sleeps, this is "squawk box." >>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernin and andrew ross sorkin. check out equity futures. dow futures indicated up by 85 points this comes after a big rally yesterday for stocks. s&p up by 11.5. and the nasdaq up by 28 points above fair value. check out what happened overnight in asia. again, all of this started kind of yesterday with

posen joins us on set today to we continue with ubs wealth management geoffrey yu. everything devolves down to this experiment of negative interest rates. you and professor rogoff had a lovely debate about negative interest rates. what is the key distinction viewers need to know about whether negative rates will work? dr. posen: the key distinction is twofold. first, is it a big economy with a lot of -- tom: japan, u.s., not denmark? dr. posen: not singapore, not switzerland, where the capital flows are not a big story. the second thing to think about negative rates is how credible is it that you can go a long way? we try to rationalize what governor kuroda did last week at the bank of japan, not doing anything. that people start worrying you can only go so far with things. tom: let's look at thing so far. let's bring up the two year negative rate in germany, leading the way in open economy. we're not near record lows but we are lower for longer. right now. yu what is the chronic nature of negative rates mean for our global financial system? geoffrey: right now it i

with all his titles, records and ub his popularity, ibra gave our club a fantastic international image. >> he hinted at returning at a management level once his career as a player is over. >> bra still is moving -- brazil s moving into the post ruzek era. the new head of state is expected to launch urgent economic measures. he also held his first cab neat meeting today. louis joins us from rio de janiero. michelle is in a tricky situation given he hasn't been elected to office yet plans to put the office through tough economic changes. does he have enough backing politically to implement his policies? >> hi, that's the major question everyone is trying to answer here. said sident before this to core dozea. michele needs to make a miracle nd we have this feeling. the country has been turned down several times and it's really bad. any sector you look at and he's immediate jobs. his official statesman said he will target tex, which is a very delicate issue here. basically the country doesn't have money in cash to pay the services and to develop projects. so he will attack the tax side of

and disappointing trading from commerce ban, and ubs, and others weighing on the banks, and ubw missed on q 1 and sees the continuing sales into the summer, and we will keep an eye on that one. and now, let's head out to the global institutes conference. >> yes, i'm joined by david solomon, the investment banking of goldman saks, and we were looking at the numbers, and european banks and reminiscent of the first quarter to get a tough environment to get anything done in the capital markets. and so are you concerned at all when you see the european banks getting hit like that? >> well no, doubt that there were headwinds across the businesses in the first quarter, but in terms of the banking business, in january and february things ground to the halt, and the capital markets close and very little equity issuance at all, and very few ipos and picked up in march, and again, get activity, and refinancing activity was okay, and in an environment where the confidence is shaken by markets, it is going to have an effect on the m&a activity, and we have seen it so far in the first four months of

know, few months later, bill clinton gets one of that million dollars to get a couple speeches for ubs. once again a appearance of total conflict of interest. she is working on behalf of the state department while her husband is taking out checks from the very organizations she is helping. ned, you know, i think that this is going to be a big problem because people are saying, is she ethical? >> we're moving into a summer that i think is going to be a rough one for hillary clinton. think about the story that just broke as well in regards to the foundation with 100 million coming to the foundation from middle-eastern countries. i think that will be a story. obviously emails and server and february by investigation. i think that will be a rough summer for hilly. hillary. i don't disagree with steve you have two flawed candidates. trish: two highly flawed candidates but on one hand you have a candidate been a member of the establishment. >> right. trish: for many, many years. who struggles in terms of being natural and we're not necessarily sure we're using. we don't know what accent we'r

ubs, profitory at falling to just 700 million francs. u.b.s. says it was hit by market turbulence at the beginning of year. hsbc saw net profit fall by between january and march for much the same reason and blamed the result on calls extreme levels of market volatility at the start of the year in january and february. the london-based bank said first quarter earnings fell 18% to 3.7 billion euros. let's take a look at the wired picture when -- wider picture in the european stock market today. we saw indices closing to the downside with the frankfurt dax almost 2%. way down commoditiesit, and took a beating, following a weak manufacturing survey out of china, increasing concerns that appetite for commodities like oil and minerals will weaken. down thises are also session for much of the same reason. comingnufacturing index out of china. the dow jones industrials around .75%.n it was worse earlier in the we're seeing the dow joan industrial average, a bleak picture, because of the chinese manufacturing data, pushing investors to safe haven assets

. >>> the growing popularity of ub somewhere lyft is forcing pennsylvania lawmakers to create state law regulations on ride sharing. creating a permanent legal framework for these companies, including here in philadelphia. supporters of the measure say it fills gaps in transit services for consumers. and creates economic opportunity for drivers. the bill now moves to the full house for a vote. >>> cracking down on illegal off-roading in the south jersey pinelands. more than 100 certifications. putting signs up to the entrances to the state forest. >>> the american civil war museum in philadelphia turning over thousands of artifacts to the gettysburg national military park. the museum closed eight years ago. the collection of 3,000 items including pieces of i flag lincoln raised at independence hall a few weeks before his 1861 inauguration. >>> next, setting the trap. those pesky mosquitoes could carry the zika virus. what's being done right now in lehigh valley. >> chilly, dreary wednesday. but it's only going to get worse. we'll let you know when that's going to happen. plus any improv

and ubs and the counterparty risks. we try to look at where the winners and losers are based on what is happening with these policies. clearly, these banks seem to be on the losing end of that trade. francine: -- vonnie: you were talking about the italian banks. carl: italy has a problem today. one of the things that came to me as i was writing my high-frequency notes this weekend is that ecb bond buying ends a year from now. i have run out the total amount bybonds that they will buy march next year. that means they will stop buying. with negative yields out to eight years, that as a result of the ecb buying. if the buying is going to start by -- it's the buying is going to stop by march of 2017, there has to be a correction. vonnie: it does not have to stop, though. carl: yes it does. it is law. it comes from bankruptcy law with europe. allowed to do that. tom: i have to rip up the script right now. renzirence, italy, mr. says he has discussed japanese investments in italy, and most abertantly counts on mr. for success

ubs with say it is difficult to see in the face of such monetary expansion. an explosion of monetary power. the yen can continue to strengthen. this goes back to here. japan isnetary base of relative to the u.s., it is the highest since 2006. it is that more of money, in many ways, people are talking about. it is that relationship. traders dubbed it a ratio, the soros chart. this is what george soros predicted in the 1990's. such a slush of yen that to the yen could do nothing but reverse trend. it is a huge debate. the one thing that caught my eye this morning is that leveraged funds, the net long positions on criticaln, that is the point. there you go. george soros, never knowingly in the fx conversation. i wonder what his bets are on dollar/yen. i would love to know what he has on this trade. if helet's ask vasileios buys into it. so many people talk to us about things that should weaken the yen. the comment overnight once again from the japanese government, designed to weaken the yen. what can they do to weaken the currency? vasileios: so many moving part

. >>> ub versiÓn que losadres encuentrnsto ante yicen que es completamentefals >>> ya que de la propia voz de los hijos escucharon todo. >> llegaba casa diciendo fulano m tocÓ... y le toquÉ la co y... entonces ahÍ fue cudo lo empiezÁ interrogar. >>> mientras se aclara el caso padres de otrosiÑos estamente abusado sexualmente y otros desaparecidos tambiÉn han decidido alzara voz para pedir justicia para sus hijos. >>> la prÓxima seman se tendrÁ respuesta de la denuncia penal prentada en diciemb pasado a parr dentonces el abogado que representa a los padres de los niÑos llerÁ a cabo la guiente acciÓn e cdad de mÉxico elena lozano para l moto saas telemund >>> una noche de terrorn parte deex las sirenas de emergencia por eso inundaciÓnes no pararon de sar y las aguas arrasaron con broenteros una abuela y cuatro nietos estÁn entre las vÍctas dacuerdo con las autoridades. la furia del aguaubriÓ la casa de la fil en minutos. esto rÍos de agua se deben a tormentas que golpearon las planicies el sur del paÍs durante este viernes y en las imeras horas delÁbado. desde conrad t

we are staying dry and a slight chance for something popping up in the sub ubs for this afternoon. temperatures are on their way up. 2:00 p.m. 88 and a high of 89 at 3:00. and 4:00 p.m. coming down from that warm with sun and clouds. by 6:00 p.m., 86 degrees and even at 8:00 at night temperatures in the upper 70s. by 10:00, 72. the afternoon and evening forecast looking good as long as you like it warm for this time of year. normally it's 77. hotter even tomorrow, 90 degrees for the high. our first 90 degree day, it's hot and humid and lots of clouds tomorrow and that is the difference, some sunshine and a better chance for a pop-up shower or thunderstorm. you may see a few of them tomorrow afternoon. how about the big forecast for the holiday weekend. the shore is looking great, head down there and dry sunshine and 74 on the beach and the poconos equally nice with a slight chance for a shower popping up and 74 sitting on the beach and a slight chance for a shower and most areas stay dry. in the poconos 82 degrees and monday is not a washout and mostly cloudy skies and a better cha

the chief economist for germany out of ubs. , low yiel high demand. next.art of the hour is banking stocks getting crushed in europe. more on that next. ♪ guy: welcome back, you are watching "on the move." chart of the hour. what have you got? nejra: this is about the fact that there may not be enough debt to go around. i know it sounds unbelievable; just wait. jpmorgan, the world's biggest bond over writer, is expecting record low global yields, basing this on forecasts of $1.86 trillion of net worldwide issuance this year versus $1.74 trillion of estimated net purchases. supply will be greater than demand for the fifth straight year. here's the key point; the gap, the amount of excess issuance, is set to shrink the most -- guy: this is goldman's? nejra: it is looking at government debt, i believe, and the reason is because it is falling government borrowing because of austerity and also increased bond buying by central banks. if jpmorgan is right, that eases concerns that a rate rise would drive up yields. guy: great chart. thank you. not enough d

we're hearing it from cs and ubs and a whole bunch of banks. q1. very tough that banks talk about the fact that transactions are done. they talk about the market being paralyzed, clients don't want to transact. what is it going to take to get the clients activity back up again? that seems pivotal. >> i think it is about growth. if you don't get real gdp growth, you won't get that up. if you look at the numbers, if you compare that to u.s. banks, it's different -- you have a massive risk aversion still going on. you can talk about brexit in u.k., u.s. elections in the u.s.. risk aversion is staying. there is not an animal spirit to buy things. i think it is all down to how the government -- what they are looking to do. we've come back to this annual ritual of running out of money and finance ministers having an emergency meeting. the fact is that if you don't have any kind of debt, you won't get that money back. it lets it grow and live, in it is going to be good. how does that change? does 2016 look like the reverse of 2015? does it finish better?

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. >> quite a good deal for stub had ub. >> a lot of exposure after it. >> i'm not sure how much exposure. the team only won ten games last year. >> let's talk about the nba. last night's western conference finals started out well for the golden state warriors. they were playing oklahoma city at home. the defending champs were up by 13 points at halftime. plenty of people thinking this game was over. >> but then russell westbrook of the thunder scores 24 of his 27 points in the second half. the thunder came storming back, ultimately claiming a six-point victory. >> so this is a first time the warriors have lost at home in this year's playoffs. game two is wednesday night in oakland. steve kerr there reacting to a play that was probably a mistake by the refs but that's a whole other matter. >> i'm sure there be a lot of people debating that one, as well. >> they thought it was a two-garret r quarter game. >> unfortunately, it was scheduled for four. >> they would have won if it was just two quarters. >> that's not how it works. >> good chat. >>> coming up later in the mix," play houses of

the white line is ubs. bank goingh deutsche back to what you were saying. is only marginally better. both deutsche bank and credit suisse have a long way to go to be more efficient at generating profits. i think we just had an ad hoc battle of the charts. mark: who won? betty: we both did it. mark: no comment. coming up, stocks could be headed for a downturn. how should people respond to a stronger dollar? that's next. ♪ betty: it is time now for our global battle of the charts. we take a look at some of the most telling charts of the day. we just had our own battle. you can access these. off, danny is coming on again for us. >> when investors start to get concerned about low-quality companies, we are going for loss in the market. at the risk of sounding too pessimistic, we might be in the midst of that now. this is tracking a goldman sachs basket of pork belly companies. but what's happened every time before we have seen a market correction. we get this downward sloping line. that means they are underperforming and a correction. the red circle at the end

and analyst joins us now from ubs's office in new york. he has a buy rating and a price target of $125. >> i think investors are questioning whether apple's reached a new level of maturity. in the last 6-12 months, we have seen disappointments in terms of upgrades. of 6000 consumers in five countries suggest that the iphone seven is likely to see a great demand better than the s, but not a strong was the six. we are thinking 5%-10%. the days of 20% and 30% growth are gone by, but we do not think it is necessarily peak iphone . scarlet: do we know anything about the iphone seven yet? do we know what the features are? dualn: there's talk of a camera, but it does not appear on the surface to have dramatic changes, like the six that gave you the big screen phone. let's say it does not have significant new features. is there enough pent-up demand to see people moving? my guess is there probably is. i would like to see real future differentiation. we do not think that is likely, but there are still 200 million iphone users who have not gone to a

ubs is better positioned in the european marketplace. they have done a very good job of taking out costs. , at their earnings announcement, they talked about the same thing. they are on their way, but ubs is further along. jon: david joy, thank you very much. coming optimistic and with banks. deutsche bank agm underway. we go live to frankfurt, next. ♪ jon: this isjon: "bloomberg ." here's the picture on global wall street. dow futures, -28. switch up the board. what a move in the bond market. the federal reserve aftermath, u.s. yields creeping higher. stronger dollar story with the euro at 112. stronger pound story. 146.22. an egyptian airliner has disappeared on a flight from paris to cairo. saysh president hollande authorities are refusing to rule out the possibility of terrorism. the flight was at 37,000 feet when it disappeared from radar. it was at 120 miles from the egyptian coast. it was carrying 56 passengers and 10 crewmembers. there was no distress call from the crew. in cairo, egyptian age asian officials -- egyptian a