Transcripts For CNBC Worldwide Exchange 20150424

We have also got the overall number at 108. 6. That was forecast at 108. 4. Thats the Business Sentiment index and the Business Expectations. Lets have a look for that has come in at 103. 5. The forecast was 104. 4. So lets just have a look. Overall the expectations just below forecast the Business Sentiment and Current Conditions just ahead of forecasts. Of course this follows yesterdays pmi where germanys came in at 41. 9 down from 52. 8. So mixed set of data coming out of germany over the last couple of days. We saw the euro dollar there bouncing in fact in todays session. Lets get a comment. He is chief economist. Good morning to you. So slight contrast to yesterdays data but still mixed this morning. This ifo sentiment. A bit mixed but not very much. If you look at it the key thing is that Current Conditions have improved a lot and then of course expectations where people are asked whether it can get much better than what the currency is are no longer as stellar as they used to be. That doesnt mean that expectations are being scaled down. Its just that you think having had the improvement of last month its not going to get that much better. In other words germany is doing fine but this is sort of as good as it gets. Its not going to get much better but if youre growing at the pace germany is growing, thats good enough. Some is with the pmi yesterday which fell below the previous reading but still above 50. Yes. All in all. We have to say the acceleration phase is probably over. Germany has likely reached that state. So expectation it would get ever better, better and better. Thats not coming true. So were probably revising up forecasts for germany. One other further thing on the pmi, though i suppose particularly the Manufacturing Index with the euro so weak should it have been a bit better . Do we need to see greater effects of quantitative easing now to think its definitely working . We should see better manufacturing pmi again in coming months. Manufacturing is the sector which is very sensitive to swings in global mood. So some of the less stellar data out of china, some of the recent data out of the u. S. As well as this never ending discussion about greece may have had a bit of an impact there. But i do expect that the Global Outlook seen from a german or european perspective will continue to brighten again with the hope of the currency staying very competitive. Thank you very much as ever. Well have to leave it there. We have breaking news on hsbc. But thank you for joining us. Lets bring you these latest flashes on hsbc. They have said they have started to work to look where the best place is for their headquaters. Of course current headquaters, londons canary wharf where i was filming yesterday. Theyre saying its too soon to say how long the process will take. Shares climbed 2. 6 on the announcement that theyre looking at relocating their headquaters headquaters. Lets get straight out to Catherine Boyle who joins us outside londons headquaters. Its interesting if youre being bothered by things like the bank levey in the u. K. And what is increased government interference you might want to relocate to china which is not known for having the government stay out of Companies Business but it looks as though the speculation that hsbc is looking at this move for months now and they have finally confirmed it. The obvious piece a lot of people will be talking about and relocating to a new city is hong kong but there are other options in asia where hsbc has a substantial presence. Singapore is another one thats been mentioned too and of course theres always new york but it also has substantial operations but the heart of the company has always been between asia and london. So it will be interesting to see what management can say in this. This news coming out two hours before an annual general meeting at which management is set to come underattack. Its quite interesting that its coming out now that management know theyll be facing tough questions and they may want to turn the news agenda around to focussing on something that could potentially be a positive story and potentially add a little bit more. Add potential good benefits to their top line. Thank you for that. A very interesting move in those share prices given that it hasnt kicked off proper yet. What does that move and Everything Else mean for European Equity markets . Well, as you can see a little bit more green than red at the start of trade today. The broader stoxx 60 index is up. 2 . A little move around the open and a little around the german ifo sentiment data but all in all its a rebound from the weakness we saw yesterday. That weakness stemming from france and germany given the pmis we also mentioned just five minutes ago but this week in general has been similar to last week. Its been traeding water. A little volatility around the margin. Its following Strong Performance year to date and, indeed, quarter to date for european equities. As you can see, a little bit of a bounce across the board. Yesterday was a little soft as i said. Ftse 100 up. 3 . France up a little more than that. Italy leading the way up. 9 . Lets look at bond rates. They continue to tell the story of policy diver jens across the world. The ten year pushing close again. When does that imply rates will go up . Probably sometime around june or september. September generally what people are saying at the moment. Germany at. 16 . The u. K. Has Seen Movement after the bank of england minutes suggested that raise rises are once again more likely than any rate cut but expectations pushed for that rate rise over the next month or two into next year. Greece remains elevated. Lets look at the euro. A little bit volatile this week. Its recovered significantly. Some distance in the past as we look at things now. Pushing 109 up. 5 today. The u. S. Dollar losing a little ground. Aussie dollar up. 78 and the pound rallied since the bank of england minutes but of course the trend over the last month or two has been one of sterling weakness against the dollar and that of course slightly referring to the election. Lets have a look at asian market which is have been overall strong today. This paints a mixed picture but in general they have been strong particularly following that record high for the nasdaq in the u. S. Yesterday. Shanghai is giving up. 5 but of course it continues to be the amazing story in asia. Its up some 40 since early marchand that rally just seems like it wont stop. Although its given up. 5 today. Lets just mention the u. S. Markets as well. Taking a look at them the nasdaq closed at its highest level in 15 years. Well above the 5,000 mark and surpassing levels last seen at the height of the. Com bubble. As investors eyed a slew of earnings analysts attribute the gains to higher oil, weaker dollar, and low volatility. The s p 500 also hit a new high before falling back while the dow is within 1. 3 of its own record high. Now seema mody is among a very excited Tech Community at the next web conference in amsterdam. Seema, 5,000. Your favorite number. It is it my favorite number. Im just a little livid. The fact that i wasnt able to be in the studio. I do all of this research on 50 day moving averages bullish trends on the nasdaq. Its worth nothing because im never there when the nasdaq hits new highs. You get to experience it in the studio. Its a milestone for the tech heavy index. Its a good gauge of valuations of whether we are perhaps in a bubble. I know i use that word often but that is a concern. Last night i was at a Network Drinks event and i was speaking to fred dustin a partner at excel partners who you and i have interviewed before and talking to him about valuations and he is telling me it is getting scary out there in terms of what entrepreneurs are commanding in terms of valuations. So listen, we look at the nasdaq. Its obviously which houses a lot of the Big Tech Companies but even in the private market it does have an impact. Were working through all the possible scenarios. First of all, this is not like a traditional drawing as we know. Most of the drawings i steer by distance. They need to be autonomous. They need to be able to find their way to the customer autonomously and be able to come back. So thats number one. To take of course and next to that and safety of course is most important. Were working through all the scenarios and all the things to make sure the drawings are safe. How do you manage the delivery process to ensure these drones arent hacked. Well we have a long history in insecurity. It will protect our infrastructure. Ten years from now do we see amazon drones flying all over the place. Who knows. Might be. Definitely it is our intention to drive the time to delivery. We do half an hour off your order. By whatever means. Drones is one of the ways were experimenting in innovation. Its a clear and obvious one. Theres many other different ways were experimenting as well and there may be other surprises in stock there for you. We rolled that sound a bit too early but that was the cto of amazon speaking to me in an exclusive interview about the opportunities in drones but the main focus is amazons cloud opportunity. The company reporting earnings last night beating expectations and the main focus on cloud revenue, it broke out cloud revenue for the first time in history and we found that aws is a 5 billion opportunity. I was speaking to analyst at morning star and they say over the next three years aws could be a 15 to 20 billion opportunity for amazon Going Forward. So a lot of focus on the cloud. It will be interesting to see if amazon shares continue to push the nasdaq to new highs. Indeed seema. I think breaking out the aws erngs earnings is a big story for the markets. But overall the story is the same. The sales rising. Earnings negative. Loads of projects theyre working on and people wondering whether theyre spreading themselves too thin. What do you think . Listen you have to keep the end game in sight. Eye on the prize. Overall the Company Continues to show that while theyre making a lot of investments theyre seeing results. They also saw a significance rise in q1 2015 revenue for aws. Theyre showing that the investment is being put into place and it does have results, if you will. But of course that will be an on going concern. The amount of investment that amazon is making and how thats impacting profitability. We should point out cloud is a highly competitive space with the likes of google and microsoft competing and trying to get a piece of the cloud pie. Coming up ill be speaking to a variety of different investors and start ups about what they have to say about the cloud. Also be speaking to uber about their expansion plans in europe. Evernote as well including a couple of other guests coming from the next web conference in amsterdam. Were back in two minutes. Stay with us. The Home Appliance maker issued a profit earning earlier in april citing weakness in north america. This bounced back from the lower share price it moved last month. Well be speaking to the companys ceo on a first on cnbc interview within an hours time. This is thanks to strength in european auto sectors. The french car maker raised its full year forecast for european demand and the market taking that well. Now theyre basically flat. Sales did beat expectations and they reported growth across all regions theyre on track to meet targets of 4 like for like growth but flat overall. Hsbc is up 2. 6 as we have been reporting in the last few minutes. Its launching an immediate review into whether it should move its headquaters outside of the United Kingdom. Catherine joins us outside their headquaters headquaters. Thanks wilfred. Im joined by a shareholder thats been a thorn in managements side. What do you want to hear from the chairman today . His resignation. I want him to resign. Im fed up with his lying and cheating Share Holders and providing false and misleading information. But while he has the support of the big institutional shareholders theres only so much small Share Holders like yourself can do. We can expose their criminal and illegal acts. The big shareholders hide behind blank screens to turn around remove directors responsible for the illegal and criminal activities of this bank. Do you think the announcement today hsbc is considering relocating its headquaters. Is that something that might change your view of Home Management screwing the company . No they have threatened this before. No Descent Society can afford either the principles of this board of directors or hsbc if they want to leave our country and put thousands of people out of work then let the politicians come out and truthfully and honestly say they will turn around and do a criminal investigation into the bank. They talk about its to do with costs and Everything Else. Part of it is. But what country can they go to in the world where they have not committed illegal and criminal acts. But even if as you say theres in countries where hsbcs activity has come under question surely for the big institutional shareholders what really matters is whether the board are continuing to deliver profits and pay out dividends. Let us look on it. Since they were forced to actually clean up their act and stop committing criminal and illegal acts around the world profits have fallen by 29 in the last two years. Is that because they cant do any more illegal laundering of drug cartel money or illegal transfers with iran which totalled over 16 billion . Mr. Flint asks the world to believe that he knew nothing about this in the 17 years as finance director. If we are to believe him, hes negligent. Well, thank you very much for your time. He is one of the leaders of a Class Action Lawsuit against hsbc in the u. S. Thank you for that. A very interesting perspective. Lets stick with the banks. They agreed to pay a record 2. 5 billion to u. S. And u. K. Authorities to settle allegations that it manipulated liable rights. Annetta has the story. Well, thank you very much. Its a record fine for them and also the biggest fine of a single bank and thats because they did not cooperate very close closely with the authorities and mislead the u. K. Authority by saying they dont have a special report from the german regulator which they actually were assumed to be passed on to the u. K. Regulator. So its not the best picture theyre actually painting of themselves so now we have that record. Its off the table for them. Its more than we had previously anticipated and also the bank was guiding you us when it comes to the legal charge but more importantly actually is todays Advisory Board meeting when the super shape of the bank will be discussed and most likely also decided. Most likely were heading into a situation where theyll be a lot leaner. Probably have to die vest and more of that during the course of the next week. Back to you. Thank you. Now when sport and art combine. Brazilian legend pele was in london yesterday to promote an exhibition celebrating his upcoming 75th birthday and sporting achievements. I sat down with the brazilian legend and began by asking him if he had a favorite player among the current drop. No doubt. The players less and less and it was messi and ronaldo. Now we have neymar. Good player too but no big one. No big favorite. Were here in london and theres a lot of great english players but the english team always seems to underperform. What do you think is the problem with the england team . Its difficult to say because we always point the english teem as the best team the team thats supposed to win the tournament and then they have problems. Its difficult to understand that but no doubt is the strong most difficult league in the world, you know . Yeah. The best player youll see all the brazilian players now in europe. They had a lot of players in england. The best player here. But the english team the National Team doesnt have a lot to give one step more until the world cup. And pele my final question were coming up to a watershed moment for World Football with the fifa elections. Do you think its time for a change at the top . The problem is its not easy to change. There has to be a reason for that and this moment i think in my point of view no reason to change. What an absolute legend an an honor to have sat with him there. Sticking with sport, ticket prices for boxings biggest fight in years are reaching super bowl levels on the secondary market. The average asking retail price for the may 2nd bout between Floyd Mayweather and pacquiao are shy of 11,000. Thats higher than the super bowl and tops any boxing match in the past five years. The most expensive seat 5th row ring side is priced at 77,000. Wow. Well thats got us thinking here on Worldwide Exchange as we head into the summer peak sports season, if you could attend any one sporting event regardless of price or Ticket Availability what would it be . Get in touch with us by email worldwide at cnbc. Com or via twitter at cnbcwex. My personal handle on the screen wilfredfrost. I have to say it would be a soccer World Cup Final with england in it but given thats never going to happen im going to keep thinking to see if i can come up with something else. Get your tweets and emails in to me so we can discuss it. The greatest sporting event you would attend if price and availability wasnt an issue. An independent review says u. K. Debt could be 90 Million Pounds higher under a labor government. Thats coming up here on Worldwide Exchange. Dont go away. Ion kids everyday in our country lack access to healthy food. For the first time American Kids are slated to live a shorter life span than their parents. Its a problem that we can turn around and change. Revolution foods is a company we started to provide access to healthy affordable, kidinspired chefcrafted food. We looked at what are the aspects of food that will help set up kids for success . Making sure foods are made with high Quality Ingredients and prepared fresh everyday. Our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. Working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. We are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. Until every kid has built those lifelong eating habits, well keep working. Hsbc rallies to the top of the ftse 1000 as they launch a review of whether to move its headquaters out of the United Kingdom. European stocks push into the green. Grease greece extends an olive branch. This is germanys ifo Business Survey rises in april. And electrolux shares heat up as they eye improvement in north america. We speak to the cnbc first in the next hour. Lets have a look at european markets in the green. Not too significantly today. We did have weakness of course yesterday in europe. In particular in germany and france after the pmis were a little bit weaker than expected although todays german ifo Business Sentiment climate was better than expected overall although the Business Expectations were slightly below Business Sentiment and Current Conditions were both higher. Anyway, the sum result is were finishing the weak in europe with markets in the green. This follows a mixed week. This week and last week although the broader picture year to date is strong european markets. The broader stoxx 50 up ending the weak with a positive tone. Bonds continues to tell the same story weve seen for a long time and that is that rates are expected to rise at some point this year where yields are 1. 96. Rates in the u. K. Are expected to rise rather than fall. Thats not likely to happen next year. Rates are at 1. 7 where as in europe rates staying very low with bond buying continues a pace. Yields. 16 . All of that means that forex has the euro recovering ground. It was 1. 09. As we look at things together sterling has rallied a bit after the second half of the week after they reported to a rate rise being more likely than a rate cut. That rate rise likely to come next year and not this year. Sterling is up a little bit at. 51. Now greek finance minister is offering concessions in debt talks as euro zone finance ministers meet. He says current disagreements with lenders are not unbridgeable adding that greece is eager to make changes to the Pension System and proceed with partial privatization and address nonperforming loans. However varoufakis said the government did not agree of the scale of reforms needed. Meanwhile theyre stepping up pressure warning that time is running out. Its a matter of urgency for the greek side to get the deal and Financial Support and make sure theres money available. Joining me now is the managing director. He joins me in the studio now. This issue continues to rattle on. What is the key date for us to focus on in the next couple of weeks and months . 11th of may meeting. Nothing will be decided today. Im not even sure whether theres going to be much of a discussion about are greece because progress has not been achieved. Can we actually really put money on the fact that the greeks will deliver something realistic by that date . No. Theres still not enough pressure for them. They managed to squeeze it from their government system. They might get to the end of may. I think that once the greeks will only move once they are on the edge. They are not on the edge yet. As it is now were just going around in circles. As you suggest there needs to be some movement by at least one of the sides. Probably both if were ever going to reach an agreement. Politically is there any chance well see any concessions from the greeks . It would be political suicide domestically wouldnt it . It depends on what the overall package looks like here. I think there are some concessions that they can do that they can try to sell to the party. Its not going to be an easy sell here. We need to look at the overall package. The issue is that were still not there. Were still to the point where the greeks are proposing reforms that are not attainable because it requires implementation capacity and theyre still refusing to meet some of the red lines specifically commitment. The commitment is still not 100 . He writes about partial pry vietization and we need some movement on the pensions. Until were able to overcome the two key obstacles i dont think we can talk about meaningful progress in the talks. We know what Public Opinion is in most of europe. Germany in particular on this issue. We knew Public Opinion in greece back at the time he got elected. Whats Public Opinion toward him today in greece. What we are seeing is a decline in the support for the Government Strategy in negotiating. So it went down to 45 . The only at this point is his own people. His own party. Rather than the . And just quickly im trying to think of what could spook Financial Markets between may 11th. What likelihood do you put on the charts of capital controls being imposed . At this point were at around 40 . Mainly because we see we dont see a quick hand to these on going conversation and we believe that if he moves he will only move the last minute raising the risk of capital control so at this point were around 40 . Thank you so much for joining me as ever. The managing director at tenao intelligence. We have quotes coming out as well from the finance minister meeting. Lets get these for you. Weve got a quote coming from the finance minister of austria who said she quite annoyed with the lack of progress on greece. Were not expecting huge progress from that meeting and its likely to be the next major meeting coming up in a few weeks time thats going to be important. Now 13 days until the u. K. Election and a new poll puts the conservatives 4 points ahead of the labor party. Going into the week of campaigning a poll has David Camerons party at 36 ahead of labour with 32 . U. K. Polled with the liberal democrats trading on 8 . Joining me is the u. K. Shadow business secretary. Very good to have you here in studio. I want to kick off with the assessments of all of the parties manifestos. They say debt would be more under labour plans. The conservatives will be borrowing and have borrowed more than 200 billion plans. They failed to balance the books as they promised 6789 thats because we did see at the beginning of the period a lack of demand. Very little growth but also wages stagnating because wages have stagnated over the last few years. Income tax, National Insurance receipts have fallen and its been very hard for them to balance the books. The institute for fiscal studies produced their assessment of some of the things we would do. They dont take into account that what were aiming to do over the next five years, if the Labour Government is elected, they dont take into account that our aim is to get the current budget into surplus as soon as possible into that parliament. Were aiming to balance the books and they also pick an arbitrary date at which we will balance the books. Now of course whether the state of your finances your public finances will depend on the state of the economy and no doubt the Global Economy but look these polls make for interesting reading every day. They go up and down and we would go insane if we obsessed about them. They do go up and down. The only poll that matters is the one in 13 days when the British Public vote. I agree and the polls still up and down. Lets talk about the fiscal and Spending Plans of the s p. They will increase spending every single year of the next government. What do you make of those plans . Theyre quite confused. But also look i could characterize the position of the parties thus. If you have a mortgage and Household Finances are not the same. But if you have a 25 year mortgage you dont try and pay the whole thing off in four or five years if thats going to compromise your ability to put food on the plate for your family and frankly if you look at the public finances that is George Osbornes approach. He is going for the most extreme spending cuts we have seen in a generation. The kind of cuts are twice as deep of anything over the next three years is twice as deep as anything weve seen in the last five years. Take the snp and lets put the green party there as well. With that 25 year mortgage they are just electing they think you can just deny the need to actually pay it off. What we will do if we are elected is not only pay it off but do so in a responsible credible fashion which is achievable and fair. I dont think theres anything responsible about paying more on housing than transport infrastructure. So your view is very different. What do you make of the comments last night on news night . The comments earlier in the week that he would write labors budget. Are they dilluted . It slightly insults the public because ultimately the function of Political Parties in our democracy in the u. K. Is you put your best foot forward. We are going for a majority government. The National Party is and then the people have their say and then each party deals with the hand that has been dealt to them by the public. You dont seek to preempt that by say weg knowing we know whats going to happen. Were already going to call the result and this is what is going to happen. I think that results the electors in the u. K. And, you know, were going for majority and well deal with what happens after that. Lets move on to business policy. Your area of expertise of course and talk about this bank of bonus tax that you plan to introduce. Now im a big fan of performance incentive pay. It gives people incentives to work harder and boost worker product productivity and the employer more flexibility. Why is it good . It will just lead to higher based salaries and lack of flexibility in our economy. The starting point is that were still recovering from a Global Financial crisis. If it started off in the Banking Sector due to irresponsible practice. We still see some of those practices with the scandal around fx and that cost the u. K. 1. 23 trillion pounds and were having to repair our economy coming out of that. Now in light of the recent history its not unreasonable to ask those that work in the Banking Sector to make a little bit more of a contribution to help us sort out our economy in the shortterm and structural problems and what well do with that Bank Bonus Tax is use it to put in place a job guarentee for young people. We have just under three quarters of a million young people out of work. So they can get into work and we can invest in the future generation and ensure that our economy goes forward as we speak to move into a quite different era that we face right now. I dont think its unreasonable. I agree with the sentiment behind why youre doing it but we dont know the details of how youre planning to do this. We just got one line. That could lead to imposing on Companies New ways to pay their staff which will make their businesses harder to run. Well the last time that we implemented the Bank Bonus Tax we were able to do it in a straightforward fashion. I think it applied to the overall bonus pool before it was paid out. Obviously well set out the full details this time around if were elected but well put in place this Bank Bonus Tax. In part because there was one fundamental difference between us and the conservatives that were the only other prospect for leading a government here. That is they want to consolidate and reduce the debt and the deficit. Thats an absolute must. Pretty much purely by going for spending cuts and were looking at the most extreme spending cuts among the 33 most advanced economies in the world. This is really different from anything we have seen before. We intend to deal with three ways. Getting wages up. Asking the very rich and the top 1 were talking about here to pay a bit more of a contribution and of course there will be efficiencies in cuts too. So theres three ways to do it which doesnt involve massacring the support that people get as individuals, families and communities but is fair or you can do it all by way of hacking off chunks that so many of our business tell me they need. One more on that tax. Bankers is a loose term used liberally by the media. Which sectors will be included . Were looking at those in the Banking Sector. So i agree with those that say its unfair to lump in this square mile those that work in accountantcy law and insurance. All into that bracket. Were talking about the banks here. Lets talk about hbsc. They might be planning to move their headquaters away from the u. K. Would that be a big blow to londons financial district . Of course we wouldnt want hsbc to move away from the u. K. When i used to sit on the u. K. s Treasury Select Committee in the house of commons i had discussions about this with Douglas Flint and others when they gave evidence to us but i read the statement that is going to be delivered by the chairman of hsbc Douglas Flint today and theres two important points to make about this. First of all he says in light of the Regulatory Reform over the past few years it is sensible to carry out a review which they periodically do on a regular basis at hsbc. It would be quite surprising if the Regulatory Exchange in this sector. So im not that alarmed by that if im honest but secondly he was very clear about what the biggest uncertainty is for hsbc on the horizon and that is the prospect of the u. K. Leaving the european union. This is really quite significant. You have one of the biggest banks in the world. That will be a significant adverse event. You take what we have seen with hsbc and you consider the prospect of the conservative government and referendum and i do not believe this will be the only Financial Institution but institution we see in the ftse here in london making these kind of statements. Of course you know in the risk registers when annual reports and accounts are produced i think when we see the conservatives continuing off this theyll make this and were absolutely clear if were elected in 13 days well ensure that the u. K. Remains a member of the european union. Thats the best thing for our country and our people and i believe in this square mile that were sitting in its the best thing for the city of london and im determined to keep it that way. Ill have to leave it there. Thank you for joining us as ever. Good luck with the rest of the campaign. Still to come here on Worldwide Exchange, amid growth fears for the worlds second largest economy we discuss the globalization of Chinese Company coming up next here on Worldwide Exchange. Amazon broke out results for the first time saying revenue rose. The cloud is now a 5 billion business. Seema mody is in amsterdam with all the latest. Over the you. Thank you so much wilfred frost. Yeah that was one of the big takeawaist from the earnings report. Breaking out that Cloud Business and how much it was making excuse me. Let me use that microphone for a second. Amazon reporting last night and the big takeaway was how much money amazon was taking in its Cloud Business. Thats the first time that amazon has broken out its cloud revenue. 5 billion is how much it generated in 2014 and it continues to see cloud as a big opportunity Going Forward. They say Going Forward it will become a bigger part of the core Growth Strategy and ten years from now it might be bigger than ecommerce. We have been a Technology Company from the getgo. So enabling others to use our technologies was another step in building platforms. This is a huge opportunity. Jeff besos has said several times that he believes the opportunity is so big they may be overtime become bigger than the retail company. Now one of the tech disrupters that is using the cloud is evernote which is becoming a popular tool used in the work place. Im joined by the general manager here at the next web conference and i was speaking to an executive that says she is so reliant on evernote she sees it as the digital brain. Talk to us about the tools youre offering to the audience. Good morning. And thank you for having me here. Evernote is an Intelligence Platform that allows you to write, collect, and present whatever it is thats important for you. It is crucial today. Were always on move. Today im in amsterdam and tomorrow im moving to stockholm but it doesnt mean have to stop work. Where ever i am evernote is with me and its my workspace. It anticipated what i need and whatever information i want is just there. And its built off of the cloud. So cloud is an important part of your success Going Forward but there are a lot of players now trying to offer the same tools effectively that evernote is offering. Drop box making an announcement today. What do you do to stay relevant in the space if youre going to see more competition from cloud players . Evernote plays a big role with offering context. When we launched Evernote Business a couple of years ago theres a lot of Hidden Information inside organizations. Its not possible for you to know what your colleagues know even if youre sitting next to each other and its one of the greatest things that can happen to you inside a team. When you start working on a project, keyword and youll see all relevant information there in the Company Saved by your colleagues in ever note coming back at you. The same way push it forward and we had major partnerships with media to offer you real life information without going out of the platform. So its really in the same interface. Evernote anticipated what you need. More people try to store their data in the cloud. Its other truly interesting. Thank you for joining us on cnbcs Worldwide Exchange. General manager for evernote. Wilfred back over to you. Seema, thank you very much. Were going to switch focus and talk about china which must quote reform and open up to the second largest economy. They added it should do so by using Macro Economic policy tools. Joining me now is the director of ceibs Research Center on globalization of Chinese Companies. Thank you very much for joining me. Small Chinese Companies across the world. What we see from this trend is quite different from the one we saw among the european giants because you see that china still has one of the largest markets and the market is growing. So most of these when they go out they want to reach out and acquire some resources to help them to better compete in the market. This we saw among our companies that and then its very different. They require resources like brand or technology or know how or the rnd capacity and try to apply them in china to be a better or Stronger Company in china. We dont see that much of the market seeking approach for many chinese firms. Which sectors are the most globalized within china. We saw the first wave after the financial crisis mainly in the Natural Resources and then we see more and more companies in the manufacturing following the instructions. A lot of them want to be a better more cost efficient innovative manufacturing firm. We see a lot of acquisitions in germany among the small and medium German Companies in the automotive industries. Its been a pleasure. Im sorry well have to leave it there. Director of the Chinese Companies. Well leave you with a look of how u. K. Futures are trading. Its did day after the nasdaq closed at a record 15 year high. Were expecting another positive open. Well be back in a couple of minutes. Futures point higher the day after the nasdaq hit the highest level since the dot com era. Positive results from tech giants google amazon and microsoft. A major media merger could be headed for a break up. Courses tell cnbc that comcast may drop the bid for Time Warner Cable as soon as today in the face of strong opposition from u. S. Regulators and hsbc begins the search for the new country to call home. The bank could be moving its headquaters out of the u. K. Im seema mody live in amsterdam. Happy friday everyone. Im reporting to you live from the next web conference and coming up on Worldwide Exchange were talking to one of the biggest restructures out there in the travel space. Yes the first engineer of uber joins me in around 20 minutes time. Plus it was amazons break out into cloud that stole the headlines but i also asked about the innovation in drones. Stay tuned to hear what he had to say and were getting reaction from top names in tech as the nasdaq closes at a record high. The nasdaq closed at the highest level in 5 15 years on thursday and surpassing levels last seen at the height of the dot com boom. It was up. 4 . 5056. 06 and seema mody is among a very excited Tech Community at the next web conference in amsterdam. 5,000 and counting. Whats interesting is the timing and were in the earnings season now. Technology as a sector makes about 44 of its revenues overseas. This is a sector highly exposed to head winds but despite the head winds and a mixed set of earnings from the Technology Space the nasdaq has been able to check out a new record high for the tech heavy index. That also speaks to the fact that this is not just about a rally in technology. Were talking about social media and bio tech also playing a big role in this bull run that we have been seeing in the nasdaq. Lets have a quick look at futures as well because theyre expected to continue upwards. S p up 6 points and nasdaq up 43 points. That does also relate to positive earnings after the bell. Amazon Google Microsoft included. Well be discussing those through the next hour. Lets also have a look at european markets. The positive sentiment yesterday from the u. S. Fed through here in europe as well. Ftse 10 up. 5. Germanys rally up. 9. Thats undoing a similar size decline yesterday. Why . We had pmi data out of germany yesterday but today we had ifo Business Sentiment data out of germany which did come to a positive surprise. So yesterdays decline being unwound. Similar story for france up up. 76 . Italy is up 1. 4. All in all not hugely positive. Just above flat. Similar to last weekend. This follows a long period of months of strong European Equity gains. Unsurprising that were traeding water for the week as a whole. Lets look at bonds continuing to tell the story weve been pedaling for quite sometime. Perhaps september people think the yield is just below 2 . Germany the opposite is true. Easing cons a pace so were looking at yields at. 17 . The rate rise expectations have been tempered over the last few months but they are expected to go up rather than down. Were looking at a yield of 1. 7 . Greece the exception to the rule. No easing. Significant country specific problems with the yield elevated at 12. 3 . The euro recovered quite a lot of ground over the last month or so. That 104 and 105 handle talk of parity is all we could focus on. Were at 10876. The pound a little bit of a rally over the last three days despite the election coming up. Its up another half a percent today. 1. 51. Over the last few months its weaker against the dollar. Now lets move on and talk more about markets and earnings. Joining us is the senior partner at Cornerstone Financial partners. Thank you for joining me now. Lets talk about earnings season as a whole in the United States because all in all Energy Sector aside, there has been predominantly expectations beaten. Yeah, its been fairly mixed, though. You have got the earnings, they have been mixed but you have to remember they have been lowered from previous months so its been fairly mixed. Nothing id kind of say unimpressive overall. You mentioned the multinationals. Some of the biggest things im looking at earnings is the multinationals have certainly seen the effect of the strong dollar and when you look at those companies that have over 50 of their earnings and rev newcombing from overseas the revenue is down from 1 to 6 right now. Is the u. S. Dollar the main story from this earnings season again . It certainly seems to be the big the strong dollar continues to be headwinds. The dollar is up about 12 to 14 for the year. We know over the last 52 weeks its risen almost 40 . We look at probably the dollar to the euro going to parity so maybe were seeing well see some stabilization of the dollar fairly soon. But its something to be careful of. Great to be in overseas assets now. Lets talk about valuations in the u. S. Its become consensus year to date that the u. S. Is overpriced relative to europe but weve seen good returns for u. S. Equities despite as you said mixed earnings. Overall sum up where we are. Are they justifiable . And which sectors do you like on the valuation front . Sure. When you look at the u. S. Right now the valuations were not its not 2009 or 2010 almost so valuations are no longer fairly valued or undervalued. Were fairly valued. Many sectors are overvalued. Sectors i see overvalued right now would be utilities, consumer staples. Areas that still have opportunity to Grow Consumer discretionary discretionary. Were seeing the nasdaq hitting over 5,000 and continue to run strong so looking at being selective in technology but health care Consumer Discretionary seem to be great places to make money right now. Are you overweight or underweight . Underweight u. S. Equities. Overweight internationally. Especially Europe Germany and japan. But when were owning those position whether in a mutual fund or etf we want to be hedged against that currency. Thank you for joining us. Much appreciated. Lets move on and take a look at todays top stories. Sources say comcast could drop its bid for Time Warner Cable as soon as today. The news comes after companies met with Justice Department and fcc officials this week learning that regulators are set to challenge the 45 billion merger of the top two u. S. Cable companies. It was the strong start that tipped the scales to drop the deal which carries no break up fee. Lets have a look at a price action comcast in frankfurt today off slightly while they rallied 1. 9 . Lets give you a run down of what to watch this trading day. Match durable goods orders out at 8 30 a. M. Eastern time. They are expected to have recovered last month following a 1 decline in february as companies ramped up spending on transportation equipment. Its a lighter day for Company Earnings although do keep your eyes out for biogen state street and xerox. Brighter days ahead and north americas profits fall less than expected. Well be speaking to the ceo after the companys First Quarter results. Thats coming up in a couple of minutes. Welcome back. Lets remind you of the headlines. Futures point to a strong open for the nasdaq maintaining momentum from the all time high. Hsbc has begun a review of whether to move out of the United Kingdom and comcast may drop its bid in the face of opposition from regulators. Electrolux shares rallying. This comes after the Home Appliance maker issues a profit warning blaming weakness in north america but the company now sees improvement in that market. Joining me on the phone from new york is the ceo of electrolux. Keith, good morning. Thank you for joining us so early in the day. Sum up for us your view and sentiment on the United States market over the last one or two months because theres been confusing messages. Yeah so the market itself was up about 1 the total market demand in the u. S. Were Still Holding on to our guidance or forecast that the market will be up in three to five five . Theres Strong Demand in q 2, 3 and 4. In the Housing Market and Interest Rates Housing Demand and appliance demand rather for north america continues to be strong and good. Youre relating to our own performance in q1 wound upcoming in better than what the market expected based on communications we issued a few weeks ago. Thats what the market is responding to better than performance and expectations there. Indeed, exact lgly as you said. What do the u. S. Results today mean for your confidence in that qe acquisition as being the right move for your company . So the qe acquisition is a matter of a couple of things. One is the strategic fit is quite compelling in terms of complimentary products, brands and segments but importantly the financial fit is very attractive. Specifically the cinergy youre able to accrue from this combination. We have increased that ability to generate about 350 million a year. Lastly it gives us the balance sheet, horsepower and strength to further accelerate our global ambitions around being the best aappliance company in the world as measured by our customers, employees and shareholders. It has very significant and sound strategic and financial fit here. Keith, im interested to know in the way the industry is changing for Home Appliances and of course so much talk today about the internet of things and connectivity between all sorts of devices, where does that factor rank on priorities in terms of making sure youre selling the most attractive products along side the traditional competency of the products and Energy Efficiency and things like that. To your point, with the advent of broadband, and the advent of the cloud and smartphones and mobility we think the day of all appliances being smart, green and connected is not that far off so that day is coming. We also think consumers in developed markets will have up to 50 connected devices in their homes and cars and where they work and the notion of things being connected in the Digital World is upon us. Its high on our agenda and the challenge for us and others is to make sure that its not just technically can happen but how do you bring real Consumer Value through benefits of those connected devices. Thank you for joining me. Well have to leave it there. Shares are up 8 this morning following earnings. Lets look at the other big earnings mover in the u. S. Google did miss forecasts. Some analysts were bracing for those weaker results. Rising online add volume. Google gets half its revenue from outside of the u. S. Ad rates are typically lower. Google rose some 3 in after hours up 2. 8 in frankfurt. They beat forecasts as sales of hardware and Cloud Services offset a decline of its business. Revenue dropped 19 . Commercial cloud revenue more than doubled and the company says thats now a six billion a year business. Microsoft rose about 3 in after hours trade and is up 2. 25 in frankfurt today. Starbucks was in line with estimates. It beat on higher than expected same store sales due to strong sales of breakfast sandwiches lunch items and new drinks. While they expect the strong dollar to take a bite out of results this year its sticking with guidance overall. Shares rose up 4. 7 in frankfurt today. One of the reasons that futures are pointing to a positive open. Still to come here on Worldwide Exchange, lift off in portland. Uber and lift begin in oregon. They talk the second ever employee after the break here on Worldwide Exchange. I hate cleaning the gutters. Have you touched the stuff . Its evil. And ladders. Awwwwwww they have all those warnings on them. Might as well say, youre going to die, jeff. You hired someone to clean the gutters . Not just someone. Someone from angies list. But were not members. We dont have to be to use their new snapfix feature. Angies list helped me find a highly rated Service Provider to do the work at a fair price. Come see what the new angies list can do for you. Amazons First Quarter revenue beat forecasts as rising sales in north america and the companys Cloud Services unit offset higher spending on new investments. The much publicized Drone Initiative also in the spotlight. Speaking to cnbc amazon is trying to iron out the difficulties in getting the idea off the ground. We are working through all the possible scenarios for things that can go wrong with drones. First of all, this is not like a traditional drone as we know it. Most of the drones are tiered by distance. They need to be autonomous. They need to be able to find their way autonomously and be able to come back. Thats challenge number one and next to that safety of course is of the most importance. So were working through all the scenarios and all the things we can do to make sure that theyre safe. Now seema is at the next web conference. Who have you got for us . As we were just looking at what amazons cto said about drones, drones could shake up the travel industry but uber is changing the transportation industry. Were joined by the first engineer of uber. Thank you for joing us hereing us on cnbc. Thank you for having me. Uber took business from taxis. What are they doing to continue to drive growth. We have a number of initiatives. One is uber eat which is is in barcelona and various markets in the u. S. Where we partner with restaurants. Were also playing around with uber pool so this is basically an attempt to use cars more efficiently by sharing rides between people who didnt even know each other necessarily before the trip. Being able to play the music in the car. With spotify. With spotify. You played a role in that as well. Definitely. Things like that to make the experience more customized is basically the kind of ways were trying to yeah were trying to innovate. A critical component of ubers success has been the mobile app. What are you doing in terms of innovation with the mobile app . Customizing the experience to make sure booking a ride is fast and easy. The interesting thing about the mobile app is how customized it is for the different operations teams in the different markets we have. Basically rather than building one fixed mobile app we have a number of differ options and capabilities that our operations teams can use to make sure that the app is the best experience for like that particular market so that goes like all the way to selecting the cars people can order. What the icons look like on the map as well as the prices and that kind of thing. A lot of the audience using uber or is quite popular i should say but that surge pricing, that always gets me. What do we do about that . Its basically one of the key features of the system and its all about efficiency. Theres certain times of day where its impossible to get a ride. Particularly on evenings weekends things like new years theres so many requests on new years that no cars could fit on the streets to fulfill those. Cheers happy new years and then youre out by 12 15. Everybody is doing that right . Yeah. Lets talk about security because thats been a big concern. How do you structure the app to address concerns that uber is collecting too much data of consumers . So obviously security is a very important thing for us. So everything from like a rigorous security policy. All the proper auditing about where our data is collected and where it goes as well as our architecture reviews have a Strong Security come poen toponent to them to make sure that were being careful. You moved to amsterdam to help uber expand into europe. Tell us why