Transcripts For CNBC Worldwide Exchange 20150420

Closing at 4,218. This as investors fear further crackdown from regulators who are tighten irthing grip on beijings soaring markets. It was very toll avial and the emphasis of course was on the Greater China markets. Yes, we saw that action by the authorities in beijing over the weekend with a rrr and they cut it more aggressively than most in the market did expect. 100 basis points and the aim here is to encourage credit growth, to encourage bampings to to get liquidity going. Initially we did see a positive reaction. We saw china stocks up by 1 . They did reverse course and as you pointed out, down by 1. 6 at the close. Lets net forget as well that the authorities in beijing, the securities regulators are trying to take the steam out of the market rally. They clamped down on margin financing. Lets not forget this very staggering statistic, we have now surpassed the 1 trillion yuan mark. It could be a brutal one if it is corrected. That is probably the overriding factor here. That is probably why it shook out some of the speculative activity. How long is it going to last though is the big question . Remember, seema, the last time we saw them trying to prick the equities bubble was january 19th. The mainland market lost about 8 . It came storming back in the ensuing weeks to rise up to 30 since that mid march action. The point im trying to make here is that it seems thats speculators, the retail end of the market which has been very active on the hong kong stock connect is relatively immune to these restrictions that beijing has repeatedly tried to place to remove some of the excess in the market and in all case in all likelihood it looks like the shares still have the momentum with them and investors could use this to recharge and push the market back up high again. Absolutely. Thats one of the reason markets have been on edge. You can read plenty more analysis to our website cnbc. Com. Lets take a look at european equities. Last week we saw them lose 3. 7 . Here on monday perhaps investors putting those fears over the greek dilemma to the side focusing on the moves that we saw last week perhaps seeing that as an opportunity to get on european stocks. We havent seen this bull run on better than 25 . A good gauge of stocks across the euro zone right now up about 3 4 of a percent. Looking at the youre yo stoxx, also seeing a gain of around around. 8 . Lets break down where were seeing the gains and losses. German stocks losing about 5 . Tomorrow will be a big day for germany. We have a survey for the month of april, a good indication of Business Sentiment and economic confidence. That will be in focus. Ahead of that were looking at the dax trading 11 rk 816, up about 1 quite the rebound here across the european forces. On the ftse 100 trading 1,060. Keep in mind the stocks also moved lower, brits did get some encouraging news on the jobs front, were seeing an acceleration on jobs growth over the past couple of months. Currencies continue to grab headlines. This week the focus will really be on the stronger dollar and the impact its having on some of the big multinationals that make most of their revenue overseas. We have 150 Companies Reporting this week. Ibm,ocacola among others. The weaker euro against the dollar. Its showing some weakness down about 2 points. Greek fears keep pushing investors out of the bond market pushing yields higher. Keep an eye on the greek three year its down 25 . The greek 10 year is is at 12 . And the idea of cutting off bits of the euro zone and hoping the union will remain intact according to tsipras. However, when a colleague caught up, he was devient on the outlook for the cash strapped nation. Five minutes, these days is worth a treasure that would fail at least what will be the future of greece . Bright prosperous and virulent. The chairman of the euro zone has warn that the group should not get into a game of chicken with athens over negotiations with greece. Cnbc julia chatterley asked if that is what is happening right now. Listen in. Thats the reason why i want not to go there. I think we can find compromise which we can. We said in february and agreed with the new greek government we can resign the new redesign the new program and still maintain the program on track. I think its possible. Progress very slowly. It is very slow. We started, of course, directly after euro Group Agreement of february and a lot of times lost on the organization side getting the right da da put together, we really need to organize it better. Is that still a problem . Are we still having trouble getting hold of the right information . Pulling out the facts and figures that we need . As you know we did some adjustments to the regular process of the troika and factfinding missions et cetera. The greeks asked us to do it differently and we were willing to do that but in the end we still need hard data to understand the situation in greece. We need to have realistic designs, reforms and plans so we can work out what they will do and how they will work into the budget and what they will do in economic terms. We still need those basics to put an agreement together and thats proven to be quite difficult. Because youve given them more flexibility, actually its complicating the issue . The redesign of the process has been a complicating factor. The very Strong Political will of the new government wanting to go in a completely different direction which is only in part possible, i mean some of the issues, the real issues in the Greek Economy and in the functioning of the Public Sector of course havent changed because theres a new government. We still need to deal with those. So they are still on the table. No deal expected end of the week. Is the best we can hope for is we can get some kind of agreement by may 11th . Its hard to say. I think we can work more concentrated 24 had7 as far as im concerned, pick up the pace. The situation in greece and the real economy is deteriorating, awaiting the new deal awaiting the new approach and we need to deliver that quick. What about the financing . I mean for many people we werent expecting them to be able to make the payments to the imf that they have made. What about pushing to may . Its hard to predict. New money seems to be found in different places in government, in Public Sector but there comes an end to that approach at one point, so that also stresses the urgency that we should feel and should put into the process to get it done. And the greek story continues. How closely should you be watching the greek negotiations . Lets bring in the chief european economy at ibs. Pleasure to have you here. It was said in washington said there was more than enough risks to deal with if the greek situation escalates. Is he being overly optimistic to blow out any potential fires when it comes to greece . No, i dont think so. I think he would have a very good grasp of the situation, but its not in his interest to spread panic here so i think he wants to keep things calm and not add to the sense of urgency in the markets. Of course ecb president does care those bonds mature this summer. A lot of pressure on more action to come perhaps from the syriza party, speaking of that if its unable to agree with its creditors on the funds, how quickly do we see a greek default . Last week after its rating was downgraded it warned that it could imply very Serious Problems for the greek treasury. Given the state of the economy, the prospect of a greek default, there is talk that alexis sip tras will push fosh a referendum of some sort. Citizens will vote whether they will exit the euro. Will it hurt or help the current negotiations . Its a fact that i think many difficult decisions will have to be made by the greek government. Whether its you know just the tsipras to convince his government to do it. I wouldnt want to comment here but its clear that significant sigses have to be made in order to get the process moving. Were going to leave it here. Thank you so much for joining us here on worldwide exchange. He sticks with us. Hes the chief european economist at ubs. As negotiations between greece and its International Leaders hang in the balance, were told the outcome is still uncertain. Coming up on this show global car makers shift down a gear in chinas price pressures weigh in. We hear from the ceo of renault later on this show. Shop till you drop a buying frenzy brings a website to a halt. Who will be san franciscos next top wax model. We take a look at the contenders. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated responsive support. With centurylink as your trusted Technology Partner youre free to focus on growing your business. Centurylink. Your link to whats next. Welcome back everyone. Lets take a look at the european bond market. Weve been seeing this massive rally in the bond market, sending yields lower, particularly the german 10 bund has been the biggest focus. Were looking at the german bund at. 067 . The ten year french at. 35 . Interestingly enough fears over a greek contagion sending investors out of peripheral debt, thats sending yields higher, the 10year spanish at 1. 4 . Italian bond at 1. 4 . Speaking to cnbc low Interest Rates in europe are truly harming Pension Funds. Julia asked him for his message. Our Monetary Policy stance is being designed according to our mandate which is to ensure price stability, and thats in a sense given the present situation, thats, we believe thats the best service that we can make to the economy and to both consumers and savers. Also speaking to julia at the imf meeting, axle fava was much clearer about the impact of the. The schemes that are still out and almost predominant in europe are finding it very hard to deliver those returns. Promises made in the past. And weve seen it before. I mean when we had the burst of the dotcom bubble many were not really invested in equity. They asked for an increase of their quota to be invested in equity and they went into the equity markets just as they reached their peak. When they fell valuations were stretched and a round of problems developed. So again, you know theres been an example of this. Investors got burned last time around and thats why some of them are cautious to actually move more money into equity despite the fact that maybe now the ability to do so is higher. Some of them are tied down by regulation to have sort of a fixed income environment in which they invest. Others arent. Remember there is a home buyer in many pension Regulation Fund they can invest in sovereign debt but its very often the sovereign debt of their own country or region and not global sovereign debt instrument and equity is much more restricted. What were seeing is really an environment where our investors that are free to choose i mean wealthy clients that have been investing money in equity in real estate, in you know even private equity have been doing pretty well. Have they pushed down the credit quality curve as well . Absolutely. There is no equity mentality say in germany and so a lot of german retile clients miss the boom, they have already missed that boom. Investors that are free to invest in Asset Classes and be globally diversed across all equity classes have actually gained. Fixed income have dominated. Its part of the side effects you will see and this will continue. For how long because i spoke to mario draghi earlier, and i asked him what the risk is. I think the risk is more that they will continue to have this kind of policy in place and therefore it looks like a lot more than the dax policy because its the dominant policy but i do think thes carry a lot of side effects. The longer they are in place, the side effects become more pronounced. A fixed Income Investor pension fund can survive a list. But it becomes two years, three years, a more persistent outlook, it becomes more. Were looking at insolvencies . One thing has to give. What has happened in the past was this defined benefit schemes were scaled down so what is defined benefit might not hold up. Ultimately, i think its not sufficient to look at Pension Funds or Insurance Companies. You have to look at the clients behind these institutions and ultimately if those institutions cannot deliver on those promises, they will have some adjustments in the Regulatory Environment to allow them to not move toward insolvency and then it is about scaling down the promises that they have made to their ultimate clients. If you look through the institutions its actually the pensioners. The savers who are getting squished. That are being crushed. They are being crushed anyway. Were in an environment that favors debt. Savers have a bad environment to start with. Once it goes beyond that and touches Pension Funds, Life Insurance policies and all of that, a large part of pension promises actually take a hit and i think that will be a very bad environment for consumers and pensioners, in particular for the older part of the population, because the younger part of the population can actually react. If you are already in a pension or at the end of your working lifetime theres very little you can do about these entitlements, their real impact on your ability to consume and therefore a big need for adjustment in that particular part of the population. Its going to be unpopular with these people. You are still with us here on worldwide exchange. Negative yielding bonds arguably going to be one of the big stories of 2015. What do they tell you about the investor mind set . Does it tell you theres this desperation for yield or that theres just an interest in investing in safe haven assets . Expectations are fairly low. It also tells you that the ecbs qe program is very big. The buying of the ecb is really driving down thele yields of the fixed income world. Would these type of bonds look attractive to you . Do you think investors should be paying the privilege of owning debt of the germans and even in denmark and switzerland, what were seeing there . I think in the sthort term yields might go lower, over time well see that growth and expectations will move higher. Then we can expect it move into positive territory again although it may take some time. Do you think well see the tenyear german bond dip into negative territory . I won rule it out in the short term. Its very difficult to say. In the medium term yields should go higher. Not a lot lower. Some analysts say negative yields are actually good for the economy. Someone wrote its helping to keep Mortgage Rates lower. Are they ultimately good for the economy . I think negative yields are a piece of an unprecedented degree of monetary accommodation and that should help the economy to recover. Although we heard in great detail there are some who dont like it savers pension end Insurance Companies and so forth. Another part of the story is the greek drama. Do you think that contagion fear is also another reason were seeing this flight to safety specifically in the german bund . Specifically yes. I think the concern about greece has certainly increased over last couple of weeks and this concern might grow even further over the next couple of days and we will have crucial meetings in the european sphere this week at the end of the week the Euro Group Meeting, if that does not create positive outcomes i think the pressure and concern will rise a lot more and that ultimately implies the risk that markets could get more concerned. In the meantime keep an eye on the german bund. Interestingly enough another analyst was saying the german bund that trade is becoming crowded and ubs also points out that investors should be careful if greece were to exit the euro zone the germans would have to issue more bonds and that could send prices lower. Perhaps you dont want to go along with the german bund at this point. If greece were to exit, the ecb would have to bear some of the losses and there might be a recapitalization need. In the short term were clearly facing more uncertainty. I guess the story could change if theres a meaningful rise in inflation . Thats right over the course of a year. Inflation should rise a lot closer do 1 and further in 2016 so the Inflation Expectations certainly contribute to somewhat high yields over time. Despite potential despite a potential decline in oil prices from what weve already seen over the past one year . I think so. We believe that over the course of this year and then certainty over the course of next Year Oil Prices might well rise again and then help to lift inflation upwards. Not downwards. Whats your target for the end of the year . We see inflation 1 and 1. 5 by the end of next year. Could it be higher than what were seeing in the u. S. . Thats the basic scenario. But you cant rule it out entirely. Its a pleasure to have you on and discuss europe and the situation in greece that continues to be a developing story. Lets switch focus at tech. Google is set to unveil a new algorithm on tuesday that will change how websites are rank when people search for something on their smart phone or tablet. The formula will favor sites google defines as mobile friendly. That makes them more likely to appear at the top of search results. Now, google has been urging sites to indicator cater to mobile devices. It is up 12. 5 over the past three months. Up about 1. 3 in frankfurt. Were looking for the next big thing in tech but what about the next big thing in wax. Madame tussand is looking for who should join them. The winner will be announced on may 26th. Were asking you dear viewer if you are up with us early for the u. S. Not too early 4 00 for of those of you who get up early. With who do you think should be in wax form . Get in touch with us. Those who were on social media this morning, tweet us at. My personal is on the screen. Still to come on the show the latest u. K. Election polls put labor and conservatives neck and neck. Were on the road with analyst with one of the labors flapship policies, the mansion tax, thats coming up next. Something for the bulls and the bears, asian markets close in the red after the pbocs massive cut is tempered by regulators on margin financing. There will be notagion on a greek exit. I think we should work more concentrated, 247 as far as im concerned, really pick up pace and also because the situation in greece and the real economy is of course deteriorating. Ecb president mario draghi tells us theres no alternative. The average man on the street is suffering. If you look through the institutions its actually the pensioners, its the man on the street the savers that are being crushed and savers are being crushed anyway. Price action here in europe telecomes is a bright stop in europe after the mobile phone unit is sold for 1. 3 billion euros. Now, the greek drama continues and thats one of the reasons we saw european stocks move lower last week. Keep in mind german stocks losing about 5 in last weeks trade. Today, were seeing labor of a rebound, if you will the dax trading below 12,000. A key psychological level but up about 1 here. The french markets showing a bit of green. Were look at the ftse 100 also up. 9 . An ernling couraging market when it comes to the u. K. Jobs market. Top movers here in Europe Telenet topping the. You can see telenet up about 4. 6 . Its a subsidiary of liberty global. Kpn investors also cheering the news. Sika pushing higher after reports that the kpp wants to buy out the companys major shareholder. And Oil Field Services petro fac is plunging after the group says it expects a further 194 million pretax loss on a gas Plant Project in the shetland islands. Its been delayed by bad weather. Its down 14 in todays trade. Now, were counting down the days to the u. K. General election with less than 17 days to go now. The you gov puts labor slightly ahead on 36 , with the conservatives at 33 . Apology is still polling is still split. The conservatives ahead with labor in second place. No clear indication who will be forming a government after polling day on may 7th. Housing of course a key issue playing out in the election debate. Asking prices in england and wales at an all time high. One of them is a mansion tax on properties between 2 million and 3 million pounds. Lets get out to wilfred who joins us with a special guest. Over to you. Hey, seema, thank you very much. As you said for months its all been about the economy and about europe. In the last week housing has really come to the fore in this election debate. The conservatives outlining the extension of their right to buy scheme to include housing associations. Labors mansion tax attracting a lot of headlines. Thats what weve been focusing on so far today. Earlier today, we go out and about what they thought of labors mansion tax. Its typical labor really. Why do you say that typical labor . Ive always voted torey, work for yourself, work hard. And labors phrase that those are the broader shoulders should carry the heaviest burden, do you know not think thats a good policy overall . Within reason but you got to work for yourself as well. You cant rely on everyone else all the time. Rich keep getting richer the gap seems to be getting larger. Taxlinging those time people could be fair. Absolutely. Do you think that could damage property prices in london. No, i dont think so, in this area the prices are ridiculous anyway. They have gone through the sky. I dont think people are quite aware of just how much these properties are worth here. I think a lot of hard working people like me dont actually have a decent place to live obviously. London is expensive to rent a place. You work very hard pay a lot of taxes, and theres people out there who actually benefit from the housing system in this country by not actually working and they claim housing benefits. They still have a decent place to live in because they live in onebedroom flats. I live in a room. Its very unfair because i pay a lot of tax. So the reaction is mixed from the voters perspective on labors mansion tax. Lets get a take now on what it means for londons Property Market and prices in Central London. Im joined now by loosian cook. I think if we do see a mansion tax come to fruition we are going to see something of an adjustment in prices to reflect the additional liability which we have. Weve seen the introduction of high rates, prices in prime Central London fall in the order of 5 in the period of the last six months. In addition the uncertainty around the mansion tax means the transactions levels are lower. Who do you think they are trying to target . Theres some suggestion that there will be some higher rates for foreigners in the u. K. Labor is talking about people being able to defer their liability. What we have to consider this is not a massive income producing opportunity. This is much more about politics and where they sit in relation to the politics of housing. As you say, its clearly targeted to win votes. As a lot of people are saying its the conservatives plan to extend the right to buy, to include housing association. All right. Well well fix that Technical Glitch and perhaps get back to wilfred in a bit, but of course another big issue playing into the u. K. Election is pensions. We have analysis of changes to u. K. Pension rules which allow savers to raid their pension pots when they reach 55. Could it mean some savers splurging it all in one go . You can read more on that on line at cnbc. Com. Still to come down but not out, thats the message from the shanghai auto show where global auto makers are staying optimistic on china despite those price pressures. We get the full story after this break. Were back in two. Welcome back everyone. Lets get out to will who is in Central London talking about the housing issue as part of the u. K. Election will. Thanks very much. Seema. Im with lucian cook. Weve already talked on labors mansion tax. Lets talk about the conservatives right to buy scheme. Its attracted a lot of criticism. I think theres an underlying concern is a depletion of the housing stock. Clearly in the london area theres some sectors of society with difficulty. The difficulty being if it doesnt, more people get pushed into the private renter sector and the housing bills goes up substantially. Both of these policies seem to lean toward the demand side of the housing problem of the u. K. Its really the supply issue that needs to be tackled. How big of a problem does u. K. Have on the housing front in. Generally, the lack of House Building and housing transactions because of restrictions on availability of Mortgage Finance are the two big things that affect the market. The great difficulty is those two things are interlink. If you dont have the transactions, its very difficult to have the market capacity to build the houses and that perhaps is where the politicians need to be concentrating their efforts or opening up a new market. The big new market that they could look at is Institutional Investments into the private renter secretary which is growing. You think housing policy could be a factor in deciding who wins the seats. If you look for example at the mansion tax policy there are a number of seats where either party has a relatively small majority. We know that mansion policy is a real policy. All of the problems that the u. K. Housing market are if you like much larger within london they are magnified within london and we know housing has moved up significantly up the political agenda. Its something of a red herring. They will be looking for a complete solution for the London Housing crisis. That means delivery of a substantial homes. Weve learned how the Housing Market is suffering a little bit of a blip. Long term your forecast still significant prices to come . Weve got prices figured in. Mortgage regulation will limit the number of transaction levels and will ak as a constraint on that growth and an increase will also be reflected in our forecast. Thank you for joining us. Seema, 17 days to go as we hear in London Housing is important. Volkswagenen shareholders are reportedly scrambling over martin winterkorns future. Rite roithers reuters suggests that its been weakened. Lets get out to aneta. Actually there were reports that other Supervisory Board members have even asked the very influential leader to resign as all of the others were against the criticism. He was surprisingly in an interview a week ago. But now what were hearing from the company is that everybody is back pedaling and while the major aim is to get mr. Winterkorn and the ceo and the head of the Supervisory Board to Work Together theres reportedly a meeting of the Supervisory Board ahead of their agm on may 5th to actually sort that out because shareholders will ask about that spat during that agm, and they want to have a decent answer to the problem. The head of the Supervisory Board was allegedly and reportedly not happy about the performance of volkswagen in the United States. Perhaps an answer to that problematic area when it comes to Product Development could be something which might apiece him lability. On the other hand, mr. Winterkorn is speculating he might succeed him on the advisory board. In turn could actually get a contract which runs longer than the one he has right now. Perhaps that might sum it up but thats back to you. Thank you so much. Now, toyota plans to launch two hybrid cars in china this year in a bid to offer new models to help tackle the countrys pollution problem. Meanwhile, rival honda tes says it aims to sell 20 more vehicles in china in 2015. Local they are at the shanghai auto show. We are here for the long term so you want to make sure that if you push too much incentive you destroy your brand because the Chinese Consumer is extremely picky. Hes attentive to whats taking place and if he sees a lot of consistency in pricing, youll end up damaging your brand. This is something which has put a limit on how much maneuvering or how much tactic there is for pricing in china. For us, its about coming into new products and segments that we have not been in before and from this standpointsize about capitalizing on this momentum and taking advantage of that growth thats in the market. Weve been focusing on the health of the european economy but lets focus in on portugal. Their economy has slowly recovered benefitting from a weaker euro. Our own julia chatterley caught up with portugals minister of state and finance. There is clearly evidence of this reduction in Interest Rates. The impact in terms of credit flows, sizeable credit flows is still lagging somewhat but for many companies, theesque of Interest Rates coming down is already being felt so it is clearly positive to the economy as well and also for the cost of funding of the treasury. Its almost more important in term of confidence now, is that the point . The main issue is about confidence because for investment you need confidence that things will improve and when we see the ecb putting in place this kind of policies that did boost confidence that has been helping as well. Portugal was seen to be one of the key beneficiaries of qe. Were talking about a quarter being bought. Giving me a sense of financing how well you are doing . Xingt in respect to the treasury itself we have a significant cash proffer. We have reimbursed part of the imf loan which is very significant cost savings which is important for the budget and to demonstrate we are fully back in the market able to tap it at longer maturities the impact on both the sustainability of the debt, the redemption profile and the interest costs has been very positive. Yes. Were now five months away from a general election from portugal. A number of analysts out there are asking whether or not you are giving up on certain reform. Liberaling the transport seconder. Is that a hoyer criticism Harsh Criticism . We dont see a slowing of the pace of reforms and we know that criticism is being made but indeed when you look at the labor market for example, we were able to have an agreement with the social partners and it is very important because you want to have this labor market reforms in a context where there is social peace. So we want to take this we have this approach gradually so that we can do it in agreement with the social partners and a lot has been done already. And when it refers to reforms, we also need to observe the effect of such reforms, see if they need to be recalibrated. There are still reforms to be done. We continue to do reforms and we continue to announce reforms Going Forward so we do reject that criticism. We think its simply not valid. Its not you taking your foot of 0 the pedal because of qe. Actually qe provides an opportunity to continue to do reforms while we have these advantages in the financial front or the financial conditions being supported by qe. So this is indeed an opportunity to continue to pursue reforms, not an opportunity to lay back. Otherwise, when qe is over and it will eventually be over we would have benefited a lot less than we could have otherwise. What about risks on the horizon now . I think we have to talk about greece. The general consensus i hear ultimately is that we are going to reach an 11th or an 11th and a half hour solution here. Is that your best case too . Its difficult to predict at this stage. At this particularly point its really up to the greek authorities to decide how they want to position themselves. The euro Group Partners continue open to a solution and continue to be constructive so we continue to follow those discussions and participate constructively in such discussions but its mostly in the greek authorities hands more than anyone elses. Now the impact of the stronger dollar will be the folk as First Quarter earnings season kicks into high gear this week. A quarter of the s p 500 reports and the dow. Its expected to report after the bell today. Wednesday, we hear from boeing and coke cold la. Thursday is the inl heaviest day of earning season with caterpillar, pepsico, Procter Gamble and gm and amazon google. We close out the week at american, blogen. Lets take a look at how its reporting in now. You can see dollar index right now at 97. 69 up. 2. Joining me now. Great to have you on. Weve been seeing this bull run in the u. S. Dollar but given the recent bout of disappointing da that weve been getting, does that derail the u. S. Dollar run. Not necessarily. We are still bullish dollars. We think the weather impact has had a significant dent in u. S. Economic data. Were expecting in the Second Quarter of this year for a rebound in u. S. Economic data. Ultimately that should help support the dollar. Weve been focusing on the negative impact the stronger dollar will have on some of the u. S. Multinationals many of which are reporting this week but perhaps a bigger question should be around how these companies can hedge against the stronger dollar and weaker euro trade . Is that a discussion we should be having . Absolutely. I think the rhetoric over u. S. Corporates about the strong dollar is obviously going to have an impact on their hedging requirements. The stronger the dollar the increased hedging requirements and obviously were starting to see that in the Forward Guidance from u. S. Earnings reports. In the meantime, were waiting for greece to sort out its financial woes. How are you from a currency position factoring in the greek contagion, the potential risk of a greek exit into your models . Our baseline is that greece will remain in the euro. However there are significant hurdles as you just heard. The ball is very much in the greek court. There was some discussions that the Euro Group Meeting at the end of the week would be the decision day. Obviously that has been pushed back. We still continue to see this kind of drift in the markets where the likes of euro swiss are under pressure euro yen is under pressure and the euro is skating on ice at the moment. Some very crucial days for greece negotiations. Mr. Draghi over the weekend said it was pointless to short the euro. Do you agree . One of the most dominant themes in investors minds has been this idea of policy divergence and what that means for capital flow. Were starting to see the reverse. Is were seeing the impact on negative bond yields. Im so glad you brought up negative yielding bonds. Its one of my favorite topics. Many say that this is due to the desperation for yield but many say its actually a bet on the currency. If you are buying negative yielding bonds, you are expecting the euro to appreciate in the coming months. Its really the fact that european foreign Central Banks are more sensitive to negative yielding bonds. We estimate on a monthly basis currency unhedged that we see about 10 boil of euros selling by Foreign Investors who are selling their wonds back to the ecb and moving back into high yelled assets. What does it in parity with the dollar. Year end. Were also talk about what happened in sterling it just hit 1. 5. A lot of people saying we should be factoring in labor of Political Uncertainty ahead of that may 7th elect. Absolutely. We still believe the path of sterling will be lower heading into the last two weeks in the election. The polls are still very close and we think that the uncertainty, currency markets normally dont like uncertainty. Still to come on the show. Volatility is impact. The vix when we come back. Welcome, everyone to the second hour of world wide change here on monday. Im seema mody s its the asian markets we have been talking about a lot over the past [ no audio ] announcer s you mentioned over the week we got that rrr cut by a greater than expected 100 basis points and prior to that late on friday, the security regulator workeds announced that they were clamping down on margin financing. So the way many people looked at it was that the two with would ultimately just offset each other because they were really both positive and negative forces, but in actual fact we saw a great deal of volatility in the Mainland China equities market. We finished quite deep by down by 1. 6 . It looks as if the forces tried to restrict the speculators and all the retail money thats been flowing with some ferocity on the Hong Kong Shanghai stock connect have really been victorious. How long its going to last for, how long they are going to meaningful shut out the speculators is really a big open question. Remember weve seen this story before when beijing tried to prick the equities bubble back on january 19th. We saw a persistent decline in the market about 8 . In the ensuing weeks we saw a 30 rally in subsequent weeks. In all like hood theres still momentum associated with the h shares so this could very well be an opportunity for some of those investors who missed the boat the first time round to recharge in order to get back into this market. Well have to wait and see. The next big test for the china markets will come on thursday when hsbc release their flash pmi numbers. This is the first blush look at manufacturing for the critical month of april. A china slowdown weighing on investor sentiment. Right now, investors positioning themselves for a potential rebound on this monday morning. The dow up about 120 points. The nasdaq remember the tech bonanza starts today. A number of tech Companies Reporting this week. Taking a look at european markets, the greek drama continues, but for now, european markets at this moment seem to be brushing off those fears. We did see a selloff last week. In fact, the euro stock index losing 3. 7 , its biggest fiveday decline since december. Keep in mind the german dax lost 5 last week. Well watch it closely. Were looking at the dax up about 1. 4 . So we are solidly in the green here in europe but of course a bigger part of the story is the move that were seeing in the currency market. The focus this week will be on the stronger dollar the impact on some of the multinationals that report this week. The other part of the story will be the euro which of course European Companies have been cheering. The weaker euro, a benefit for european corporate earnings. Euro right now at 107 against the dollar. They see it trading in parity against the u. S. Dollar by the end of 2015. Lets focus to come odd its, another theme that we will see play out this earnings season, specifically this week, we have a lot of the energy, oil and gas majors reporting. M a another big part of the story. I wont get into that. Brent trud trading higher despite the supply demand. Right now, the international gauge for oil, were looking at it above 60, a barrel up about. 6 of a percent. Investors are still keeping an eye on the feds rate timeline amid doubts that a june rate hike is still on the table. Julia spoke to axle. Im not concerned about a taper tantrum. I think what the fed has made very clear is that the pace of changing rates will not have a historical pattern and they will be very data dependent. Our economists expect the fed to start sometime in september. I think they are going boeing and consumer giant cocacola. Thursday is the single heaviest day with early season. We close out the week with American Airlines biogen and xerox. Joining me now to discuss is joe kalish. Thanks for joining us here on worldwide exchange. My pleasure. Lets talk about this earnings season. We have 150 s p 500 Companies Reporting this week. Earning will be the driving force behind the movement that we see in equities. Dupg were sitting here on friday well see stocks higher or lower from where were trading today. Its always a guess on a short term basis but i think as we go through the week were going to see these earnings impacted by a number of narcotics. You nction factors. You mentioned dollar. We have to remember also weve had poor weather in the u. S. And thats going to impact a number of companies. We had the problems at the west coast ports, thats going to impact some companies. On the energy side weve had the Weak Energy Prices which is going to result in earning impacts. So probably when we get through the First Quarter, we will see earnings down year over year but a lot of that think maybe has already been factored in as a temporary factor. By the end of the year we should earnings beginning to move up and it wouldnt surprise us to see for the full year 5 to 7 earning growth and in fact a median company, we expect to show 6 to 7 Earnings Growth for the full year. As long as we dont get too many disappointments, equities might be able to hang in there. Perhaps the bad news is already priced in. In fact, negative preannouncements are at a 10year high. Does that give more room for these companies to beat expectations . I think there is. When you look at the indicators that we follow we were off some of the peak levels that we have seen at the beginning of the year and a number of investors have begun to brace themselves for some of these weaker earnings reports. How closely do you think the fed and the fed officials will be watching this earning season to get a good indication of how the stronger dollar is impacting some of the u. S. s biggest multinationals like ibm and mcdonalds . We have to keep in mind that they are most concerned about the overall u. S. Economy and they are not overly concerned with the earnings of the individual companies and i think they already addressed the fact that the dollar may have gone up a little too much too quickly and the pace of the dollar appreciation is what has them most concerned and that seems to have stabilized since their last meeting. So not as focused on earnings, more on the economy which is expected, but talking about the earnings weve seen poor retail sales, slowing job creation, all raising the question as to whether the fed will impact raise rates in 2015. What are you expecting . I still think the fed wants to get started with the normings process and probably not going to see a rate hike before september. We think a lot of these factors have been transitory as we move back into the second and latter part of the year well begin to see the economy picking back up again. What does that do to the u. S. Bond market because many are expecting a 3 yield on the tenyear by the end of 2015 is that possible . I think thats a bit aggressive. If we get the economy back on track, we can think we can maybe see yields modestly higher and if everything goes well, maybe we can get back to 250, but i think 3 is a bit of a stretch at this point. Were going to leave it there. Talking about u. S. Markets. Thanks so much. Have a great day. Weak russian growth data adds more pressure on moscow. We speak to the ceo of the n plus which manages the holdings of a russian billionaire. Thats coming up. Stick with us. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Rebound as a stronger dollar threatens to weigh on a humg week for earnings. Comcast and time warner are reportedly meeting with the department of justice in a b. I. D. To keep their merger alive. Lets given i aw rundown on what to watch this trading day. Its going to be a big week for earnings. We will be listening to comments for new york fed president bill dudley. Its a huge earnings week with 40 of the dow and a quarter s p reporting. We hear from Morgan Stanley, halliburton, m t, royal kraeb and sun trust reporting. We want you to bring you whats happening in the european bond market resulting in a rally in german bonds, sending yields to a record low. Were looking at the german bund moving closer to zero. A yield of. 07 . Speaking to us on friday low Interest Rates in europe are truly harming Pension Funds and Insurance Companies. Julia asked drghi for his thoughts. Its being designed according to our mandate which is to ensure price stability, and thats in a sense the given the presentation situation, we believe thats the best service that we can make to the economy and to both consumers and savers. Also speaking to julia at the imf meeting, ubs chairman axle vava was much clearer about the impacts. Insolvency and some of the defined benefit schemes that are still out and almost predominant in europe are finding it very very hard to deliver those returns. Promises made in the past. And weve seen it before. I mean when we had the burst of the dotcom bubble many were not really invested in equity. They asked for an increase of their quota to be invested in equity and they went into the equity markets just as they reached their peak. So when equity markets then fell, valuations were stretched and a round of problems develop. So again, you know theres been example of this. Investors got burned last time around and thats why some of them are cautious to actually move more money into equity despite the fact that maybe now the ability to do so is higher. Some of them are tied down by regulation to have sort of a fixed income environment in which they invest and others around. They are skeptical of the sustainability, particularly in the European Equity dynamics because there are home buyers that they can invest in sovern debt but its very often of their own country and region and not global. And equity is much more restricted. What were seeing is really an environment where our investors that are free to choose wealthy clients that have been investing money in equity in real estate in you know even private equity, have been doing pretty well. Have they pushed down the credit quality curve as well . Absolutely. There is no equity mentality say in germany so a lot of german retail clients will miss the equity boom and they have already miss the a big part of that boom because 25 of that has been quite an outstanding performance. Investors that are free to invest in Asset Classes have actually gained if they hadden equity in the past. Fixed income driven or dominated investors have suffered and its part of the qe side effects that you always see and i think this will continue. So how should you position yourself in the bond market . We have joe kalish still with us. Joe, of course european government yields are incredibly low levels. Should we see this as an opportunity for a reason to buy european equities given theres more yield in that market . Absolutely. If you look at what the ecb is trying to do they are trying to push yields lower and push people in risk assets whether that be in european equities or to foreign bond markets, were seeing that policy being implemented in other places. What does it mean for the high yield bond markets . I think that was something we saw, the taper tantrum back in 2013, what ive been focusing on here of late is what weve seen in the oil market and we think the oil market has bottomed and that is actually a very good sign for emerging market bonds which half of the index is in oilproducing or oilexporting countries. Weve actually seen a nice rally in russian bonds from the december low and we saw the brazilian bonds bottom in march. Weve actually seen emerging market bonds doing a little bit better here because they do have such a strong oilrelated influence. Its a fascinating discussion. Something of course well continue to be at the forefront of the investor discussion begin quantitative easing around the world. Thank for joining ug here on worldwide exchange. We cross live to boston ahead of the 119th marathon two years after the terror attack at the finish line. Were back in two. Welcome back. Its race day this morning in boston. 30,000 runners and more than 100,000 fans will take part in the 119th boston marathon. This years competition comes two years after the terror attack at the finish line and on the eve of a jurygathering to decide if the man responsible should be put to death. Lets get out to jay gray who joins us from boston ahead of that marathon kicking off. Over to you. Reporter good morning, seema. Yeah last hour preparations getting ready for this race thats scheduled to start in just over two and a half hours. In many ways the marathon run each year on patriots day is at the core of what makes Boston Boston for so many. This community determined that never changes. They want to make sure this is a celebration despite the fact as you talk about were on the eve of the penalty phase on the bombing trial beginning here. There are expected 100,000 people cheering on scpiet whats predicted to be a rainy day here with temperatures not reaching 50 degrees. Great for runners, but not so great for fans. They will be here in full force were told as the city celebrates, there were at least 18 people who wont be part of the race. The judge asked the jurors to stay away. Thank you for bringing us the latest. Lets take a look at the other top stories at this hour. A source familiar with the situation tells cb cnbc have said that comcast and Time Warner Cable have a meeting at the department of justice to discuss their merger. They had not met facetoface in more than 14 months since the deal was announced. Staffers at both the Justice Department and fcc are reportedly still concerned it will give the combined company too much power in the u. S. Internet broad band market. Comcast has argued the deal is not anti competitive. Comcast down 2. 3 . Time warner down about 3 . Targets website has was overwhelmed by demand on sunday morning for the debut of the retailers partnership with luxury designer little little lilly pull lit zer. The web sales started before people could buy the items at target stores. Remember in 2011 targets site crashed when it launched a collection from italian knit wear designer misoni. It became the action film has taken in 1. 15 billion world wide, topping jur rasic park. The movie has made 250 million just in china loan. Making it the second highest growing film. Starting vin diesel and paul walker in his final roll. It cost 107 million to make. Five years from the devastating gulf of mexico oil spill, find out why ceo bob dudley still has a way to go on the road to recovery. And well focus on the stronger dollar impact on multinationals. A big week for earning. The dow up about 127 points. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. 30 minutes to go till we hit 6 00 a. M. Eastern. You are watching worldwide exchange. Im seema mody and here are your headlines from around the world. U. S. Futures point higher with earnings in focus as a quarter of the s p 500 gets set to report this week. All impact will be on the u. S. Dollar. And comcast and time warner meeting with department of justice representatives on wednesday to keep their merger alive. And targets website overwhelmed after offering a designers line. And the b. P. Oil spill, five years on. And if you are just tuning in thank so much for joining us here on worldwide exchange. Take a look at futures. Of course, we did see a big selloff on friday. The dow fell more than 300 points from its high on friday but get ready for earnings bonanza, more than a fifth this week . Remember technology generates more revenue overseas than any other sector when we talk about the dollar and erpgs, this is a sector you want to watch. Right now, when looking at futures, the nasdaq the tech heavy index indicating a higher open by 25 points Dow Jones Industrial opening up 125 points. Last week european stocks fell about 4 due to greek default fears. At this point, it seems like investors are putting the greek concerns to the side focusing on Equity Movement right now many were looking at the ftse is 100 up about. 7 percent. We did get that better than expected jobs report from the u. K. Last week. The dax up about 1 trading at 11,820. Taking a look it the france the cac 40 up about 22 points at 5,165. Were to keep an eye on the greek index, which is seeing a grain of 1 the. 5 . Asian markets, ending todays session in the red, despite the pboc cutting the Banks Reserve requirements by the most since 2008 this as investors fear further crackdown from regulators who are tighten their group on beijings soaring equity markets. I want to point to india, they are headed for their biggest single day fall in over a month. Remember, we have been seeing this rally in indian ects over the past year. We come off the highs of the session, but right now the sensex closing down. Today marks the fifth anniversary of the deep water horizon explosion in the gulf of mexico which killed 11 people and led to the worse environmental disaster in history. It has incurred costs of 15 15 billion. Weve been following this story very closely. Its been five years since that Devastating Oil spill. Of course, when something so horrific like this happens up to make sure that it doesnt happen again. Have there been transformative change when looking at the oil rigging industry. Its interesting. Theres a humg appetite as you can imagine for 2010 for change and then everything changed soon afterwards. Of course, the World Economy continue to be struggling and oil prices were firm. The appetite in the United States pretty much evaporated. There was talk that the United States would shift to a system of regulation that was very similar to the north sea model which is more flexible less rulebased approach but one that people think in the north sea is better and safer. That wasnt adopted wholesale, although there were some changes aimed at improving the situation. You followed tony hayward closely as you wrote your book particularly during the 2010 oil spill. How do you say present ceo bob dudley is doing when it comes to containing the oil spill and the ram i have kegs. Dudley made some very significant changes to bps structure in the mod after. He change bps decentralized management model and bp stood out compared to rivals like exon and shell and said pretty much you are ceos of your only oil field. It was just measure on costs and production levels. Now, medical analysts said that was something that contributed to this more buckcaneering spirit of bp but also contributed to some of the risk. That has changed. The problem hes had since then most recently is that the oil price, but before that, we had the russian situation and bp was much more exposed to russia than its rivals. In your book you say that Corporate Culture of risk you say that the Corporate Culture of risk taking essentially led to the Massive Oil Spill in 2010, so five years has passed. Do you think bp has changed its ways in how it handles safety precautions . One of the things the consistent state investigations of bp in the u. S. Was the incentive structure gave people per verse inconveniencetives. Its very hard to see inside companies. We dont really know the nature of a managers contract at the moment. Some of the change that were made sufficient addressed these problems that these incentives that managers had. It seems execs this will always hang over their head. Bp had an interesting safety. Safety was off the top of the list more managers performance. It was something that wasnt measure. The price of costing, the production levels they were measured very closely. In terms of a manager, where do you look to focus your efforts. When talking about oil and energy, a big part of the story will be earnings this week. Halliburton reports earning before the bell today, revenue for the Oil Services Giant is expect to dip over last year hurt by its north american business. What are you expecting in term of halliburton earnings . Has all of the negativity already been priced into these companies . In terms of halliburton, they often have greater leverage in some ways because they are more of the front end of it. We saw the Oil Price Drop pretty much the second half of last year but halliburton and other Service Companies werent immediately impacted. The expectation is this year will be a lot tougher, i think the expectations will be twb down a quarter. So halliburton and its rival is certainly going to be hit. Halliburton being exposed to the shale market in the United States probably has more risk to the down side than the European Companies. Weve seen consolidation across the oil industry. Just last week another. Is this a story that will continue as prices continue to drop . In looking at the oil complex. Absolutely. The big oil companies, the customers of these Service Companies like halliburton and trans ocean have said they will slashed it massively. They will be less need for rigs and oil services generally and that can one impact on both revenues and margins. And thats still a big thing. Pleasure to have you on. Author of spills and spins and a reporter at reuters. Speaking of earning, Morgan Stanley is reportedly in talks with new yorks attorney general to pay 500 million to settle allegations it misled investors about mortgage bonds that lost value during the financial crisis. The wall street journal says the deal would include some cash and refor consumers. Morgan stanley basically flat on the day when looking at frankfurt trade. U. S. Companies are a bit more upbeat about the coming month. 3 4 expect sales to rebound in the Second Quarter after a sluggish start to the year. That was due to a harsh winter. Labor disputes at west coast ports, and, yes, the stronger dollar. Companies also plan to increase hiring this quarter and nearly half expect to boost pay. Coming up, addressing concerns. Reports say comcast and time warrener cable plan to meet with u. S. Regulators this week as they try to get the green light for their merger. Coming up after the short break. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. Lets talk ooze. Toyota plans to launch two hybrid cars in china this year in a bid to offer new models that help tackle the countrys pollution problem. Honda aims to sell 20 more vehicles in china in 2015. Global car makers are lawnkling their latest designs at the Shanghai International auto show. Weve been speaking with top executives about the strength of the worlds Fastest Growing car market and concerns over price pressures. We are here for the long term so you want to make sure that if you push too much incentive you destroy your brand. The Chinese Consumer is extremely pick kbr. Hes attendancetive to whats taking place he sees a lot of inconsistency in pricing, this is damaging to your brand. This is something that puts a limit on how much maneuvering or tactic there is into the pricing in china. For us its about coming in with new products into new segments that we have not been in before and from that standpoint, its about capitalizing on this momentum and taking advantage of that growing thats in the market. Here are some of the other stop top stories at this hour, the john corzine has reportedly considered launching his own hedge fund. Hes also a former u. S. Senator, new jersey governor and cochairman at Goldman Sachs would start the fund with his own personal money and cash from outside investors. A focus on tech. Google is set to unveil a new algorithm on tuesday that will change how websites are rank when people search for something on their smart phone or tablet. The formula will favor sites google defines as mobile friendly those that load quickly on mobile devices. That makes them more likely to appear at the top of search results. Now, google has been urging sites to cater to mobile devices for years, taking a look at prices google up about 1. 5 in frankfurt. Were looking for the next big thing in tech, you no he that. What about the next thing in wax . Madame tussaud is trying to determine who will should steve job and mark zuckerberg. The winner will be announced on may 26th. Were asking you dear viewer on monday morning who do you think should be given the honor of joining them in the wax form . If you want to join in on the conversation here on worldwide exchange, you can get in touch with us by email at world wide cnbc p. M. Cot. Com. Larry larry page from google. Others say Sheryl Sandberg would be a good pick. Jack dorsey of twitter and jeff bazos of amazon. Now, prologis has struck a deal to buy ktr capital, a Real Estate Private equity firm for 5. 9 billion. Prologis has 600 million square feet of Industrial Property in 21 countries. Ktr has about 60 million square feet of space in the u. S. , primarily in southern california, florida and chicago. Take a look at shares and how they are trading today. Prologis in frankfurt up just about 1 . Now, its been more than a year since comcast, a parent of cnbc announced plans to merge with Time Warner Cable. Now the Companies Set to meet in washington with a facetoface meeting with regulators. Sources familiar with the situation tell cnbc that comcast and Time Warner Cable will meet with the Justice Department to discuss their 45 billion rernlinger. The deal was announced more than a year ago. It would give the combined company control about 1 3 of the markets in u. S. It is still concerned that there would be an unfair advantage over Television Programmers who negotiate fees as well as Market Players that offer video demand content on line. Time warner disputed a report that there was an expectation that the deal would be blocked. It could prompt regulators to push for more concessions from the companies. The wall street journal says the fcc is considering an option to designate a hearing and that put it in the hands of an Administrative Law judge. U. S. Lawmakers, consumer groups and content providers oppose the deal, saying it would lead to higher prices for consumers and fees for those content providers. Comcast has said the deal isnt anti competitive and is necessary to compete against the hosts of pay tv models such as april he will and netflix. If the deal falls apart, it could have repercussions across the country. Charter Communications Acquisition of comcast customers could be in doubt as well as the 10 billion deal to buy another network. Targets website was overwhelmed on sunday morning for the debut of their retails partnership with a designer. They delayed the online two hours and took the site off line. The web sales started before people could buy the items at target stores in 2011 it crashed when it launched a collection by italian designer misoni. U. S. Futures pointing for a rebound as a huge week of earnings. Comcast and time warner are meeting with the Justice Department on wednesday. And targets website crash as consumers rushed to get their hands on lillys designer line. Welcome back everyone. You are watching worldwide exchange. Take a look at the price action were seeing in european equities. Remember quite the sharp selloff we saw last week halting the bull run european equities had been on. Much of that has to do with raised concerns about a greek default but at this point investors seem to be brushing off those concerns focusing on the Economic Data the dax up 1. 2 . Talking about greece the chairman warned over the weekend that the group should not get in a game of chicken with athens over negotiations with greece. I think Prime Minister tsipras has a very strong mandate and high level of trust in his country and sometimes as a policy to lead you must use the mandate that you have. You must lead your people into a future even if that means taking tough measures in the short term. There has to be a perspective in the long term. I think Prime Minister tsipras has already proven when he came to an agreement in february that he is that kind of politician that can lead greece into that kind of future and i think thats the way it has progressed. Lets get you rundown of what to watch. Theres no Economic Data. Market will be listening to comments bill dudley. A quarter of the s p 500 reporting. The greenback is expected to weigh on export focused firms including ibm. Wednesday, we hear from boeing and cokecacola which has significant foreign exposure. Thursday is the single heaviest day of earnings. You wouldnt want to miss it. We close out the week with American Airlines biogen and xerox. Im about out of breath here. Lets bring in bob. Weve got companies on the s p 500 reporting. If you had to pick one report that will move markets, what do you think it would be . Honestly i think its going to be ibm. I think its the first one of the week. Its the most important ones the stronger dollar is going to have an impact on earning but theres also things that companies sometimes use as an excuse and ive been watching the show this morning and i think multiple times youve mentioned a lowered bar in terms of the earnings leap that the corporations have to make. These big corporations are very good at managing dollar expectations and the beginning of the strong dollar move probably took a lot of people by surprise including some of these corporate hedge desks but i think they have balanced that out, the dollar rally has sort of slowed. Its gone sideways for quite a bit of time now i think they are going to manage it very well and they are going to leap over that lowered bar in total, but ibm is definitely going to decide the week. What about the broader tech sector . When we take a look at the 10 s p sectors, Technology Makes more of its revenue overseas. Is this the time to sell tech stocks, ahead of facebook google, and others reporting this week . I dont believe so. I think one of the things is if youve look at what the market has done especially the nasdaq youve seen sideways to slightly up for most of 2015 at this point its a great time to be looking to be in the measuring and to again get in the market. Earnings drive short term moves in the market. Expected earnings drive long term moves and unwith of things that i know we havent come out yet is that easy money means stocks go higher and if the numbers come out really bad, the dollar will weaken and that will put people back in the stocks looking for q 3 earnings. I think its going to be a good time in the market. Its a good time to load up. I think the year is still intact. Lets focus on global markets. Asia having a negative. And india down 2 . Are you a bull or bear when it comes to asia . I think im neutral really. The qe lets call everything qe now, the qe that asia is embarked on japan of course going really crazy on theirs now buying equities, i think im neutral there. In europe im bullish in the u. S. Im medium term bulish china talking about Global Quantitative easing i think you are going to see china rebound but china is trying to rebound over a much higher bar than the u. S. And europe is. It will be an interesting week. Shanghai composite closing down by 1. 6 . Were going to leave it there. Bob iaccino, thank for joining us here. Lets take a look at u. S. Futures before we end the show. Wall street indicating a higher open, its all about earnings guys. Keep a look at what we digest this week. Thats it for dae des todays show. Im seema mody. Squawk box is next. Xxx. Good morning. Global market alert. China launching more stimulus flashing slashing a key reserve requirement in an attempt to spur bank lending. This is the biggest cut since the depths of the financial crisis. Cable execs are heading to washington. Comcast and time warner set to meet with the Justice Department over the 45 billion merger. And john corzine is reported launching a hedge fund. Holiday road air fares are actually falling. Its monday april 20th 2015. Squawk box begins right now. How dare you i miss you. This is squawk box. Good morning, everybody. Welcome to squawk box here on nd cnbc. Guys, welcome. Nice to have a packed table at 6 00 a. M. There you go. Bright and early. You were putting out your email i saw that add at midnight . 4 45. I finished it at 4 15 this morning. This is the middle of the day for morning money. No naptime today. Were going to take you right through. Its going to be a big nap time this afternoon. After the show is over. We were just listening to a little bit of Miranda Lambert this morning. She had a hug