Transcripts For CNBC Worldwide Exchange 20150427

100. Rescue efforts in nepal are hindered by after shocks following a massive earthquake that killed thousands of people leaving thousands sleeping out in the open. And welcome, everyone, to the show. You are watching worldwide exchange. A lot to talk about this week but first, wilfred, nice to have you back. I know. Weve been on different schedules last couple of week. There was a lot of konkl from the deutsche capital. I love it. It was great coverage. Having been away for a little bit whether it was holiday or election focus, it does make you think again about where markets are and im pretty bearish is. I dont see what there is to be positive about in the markets around the world. The shanghai market this morning hit a 7year alltime high and weve got the european markets on a tear as well. I dont think thats justify. The nasdaq stole the spotlight last week. Hitting a new high, sur parsing a level back in 2000. The sector continues to move higher. On your point, i think there is a lack of investment and yield in the market and thats pushing equities to the up side. The nasdaq had impressive results on the tech side of things. Im looking forward to apple. The worlds most Largest Company in big tech. What do you expect here this morning dear viewer . Get in touch with us. On this money morning monday morning, lets start out. Overall markets are a little bit of flat. Voek wagon volkswagenen is up 3. 7 the markets have been up since announcing the chairman has resigned. Hsbc is up the best part of 3 after it reported its considering plans of spinning off its british retail bank. This has come after a biggest review has been ordered. Beal have well have more on that story. Deutsche bank is down 3. 2 . It plans to significantly pare back its business. The press conference kicks off in under half an hour and this report was filed detail. It was one of most important days in recent history as they will update investors and analysts alike about their new strategy. They are planning on shedding a huge part of their retail bank which they started to buy in 2008 and also they are planning on shedding areas in Investment Banking which are not very profitable. I think the mantra which they had all the time to deliver all services to everybody everywhere in the world is clearly over. As they concentrate on profitable areas in the back cities as they were saying in a press release, which was released earlier today. Also, their new targets are quite challenging. Liquidity ratio of 5 and also their aspiration to actually have a payout ratio of more than 50 might make the shares more attractive for investors, but of course the devil is always in the details and the details well get from 10 30 during the press coverage which is about to start. Lets have a look broadly at the rest of the markets. As you can see, red, not too significant for the major bosses for the ftse 1 hundred is down down. 4. But clearly a little bit of surprise that that confidence in markets hasnt carried through to europe this morning. Bonds continue to sell the same story weve been pedaling for a while and thats of course rate rises might start in the u. S. And the same is true. And the yields telling that story as well. Germany,. 145 and the u. S. 1. 9. Its not clearly on a tear across all current sis. The youre yo has your youre yo has the dollar up against the yen a bit,. 0003. Lets have a look at the markets in asia. Good to see you, sir. With danger of sounding like the proverbial broken record the meltup in the mainland equities market in china continues today. Were up by 3 . The beneficiaries of further reform, some euphoria associated with those stocks. I think its really down to a lot of these investors over here jumping on the liquidity bandwagon. It looks as though were going to see furthermore forceful easing. Well gel the efficient manufacturing pmi for the month of april. Mixed fortunes very stark contrast when you look at whats happening in jakarta, the companies have been reporting, bank theres a heavy weight stock but investors wanted to see a bigger number there. Its going to be a busy week. Weve got the macro data in focus. You have Economic Data coming out of taiwan and of course is the meeting as well. It will be interesting to see how the dollar reacts. If we do see dollar continue to push higher then we could see some asian currency depreciation. Thats where we stand right here. Ten days until the u. K. Election and the race is still too close to call according to three polls published over the weekend. U gov put the conservatives aahead. Over the weekend, i saw them tide at 33. Promising more help for first time buyers. The conservatives call that quote, call that policy quote, panicky. David cameron has secured the pack backing of 5,000 new businesses warning that it would pose a risk to the economic recovery. Good morning to you. Pleasure to you with us. What do you make of the plans to abolish the nondom status. Its very popular in britain. Its popular with both main parties and certainly all the smaller parties and the first thing to say about it is whether its a good idea or not for the economy, whether you approve it or not from an ethical standpoint which i think most people do its almost certainly going to happen or some very significant changes in the nondom status are going to happen more or less i think regardless of the outcome of the election but obviously particularly if there is a labor led government. That is going to have a major impact on Financial Markets and particularly on sterling because there has been such an enormous inflow of foreign capital into britain because britain has become the strongest, most reliable tax haven in the world for extremely wealthy people who are not taxed on any of their Global Income if they establish residence in the u. K. So if the nondom status changes, there will be a reversible of the capital flow. That policy causes some people to say that it will be bad for labor. It will be bad for some markets. The currency probably also the bond market. The impact on the stock market will be somewhat mixed, because if im right, that will boost certain stocks but i must say that im astonished as i think are a lot of people who are observing the Foreign Exchange markets in particular at the complacency about this election. I think it could have a very negative effect on the sterling. Many say its the Scottish National party who has a deciding factor in who governs the u. K. No. Its almost certain that there will be no clear outcome from this election as wolf said at the beginning, the two main parties are neck and neck and neither of them can have a reasonable Coalition Government like the liberals. Therefore these regional parties, they are going to determine who governs britain in the next few years or possibly even few months because quite likely there will be another general election before the end of this year. I want to go back to your call that you think theres a complacency in the value of sterling at this moment. Well, Monetary Policy is certainly the most important impact has the most important impact on currencies its not the only factor. What ultimately drives it is the capital flows which respond to monetary differentials but they dont just respond to monetary differentials but they also dond to respond to things in different in tax policies and this is what were seeing in the euro dollar the i think were going to see the same story in britain, in addition to which, of course if you get a weakening of Business Confidence in investment and so on after the election and i think thats quite possible where the labor or conservatives are ahead, the bank of england is even more likely to preserve the very, very low Interest Rate environment for longer. I think on the monetary side the election is going to lead to an easier Monetary Policy than people have been expecting. Coming up on worldwide exchange, ebay rushes to googles defense saying the websites are direct competitors, we get the full story on what it means for the case in brussels. Comcast loss could be time warners gain. Plus we breakdown which cities are winning and losing on the back of the oil price route. Find out why london and mumbai could come back out on top. Were back in two. More than 3,200 people have been confirmed dead after a huge earthquake hit nepal on saturday. Thousands more are still without home or shelter after large after shocks continue to damage buildings in the region. Ian williams is in kathmandu and filed this report. It starts now when people gathering in open spaces around the buildings here. They are too afraid to spend the night in home. They are terrified the buildings may yet collapse. They are not willing to go back inside. This area appears to have borne the brunt, its hard to find out what other areas have been affected in the area. Google has confirm one of its executives among the dead from the massive earthquake in nepal. The company says dan freddenberg was in the country with three other employees hiking in mount everest. He served as product manager and head of privacy at google x. Greek Prime Minister Alexis Tsipras and german chancellor Angela Merkel have agreed to remain in contact. A Financial Times report suggests the finance minister is being increasingly isolated as officials seek to negotiate directly with the Prime Minister. Its not inevitable, but the way the greek government negotiates, without basically show that it really wants to carry out the reforms which are necessary, it makes it more likely, and i would say in the end, it is also desirable because if one accompanies this exit with help from the european community, with the promise to keep the gate open for greece to return at a later point in time this may well be a chance to regain the competitiveness of the country by devaluation. Anatol is still with us. Weve heard over the weekend the greek finance minister is being increasingly isolated. What do you make of that . I think thats probably true. If true it is a positive development because my view is that he has been a big obstacle to trying to come up with a negotiated solution to this. He has miscalculated miss judged both the relative power of the two sides, namely greece obviously being the weaker party and the rest of the e. U. Being the stronger and the appropriate tactics in that situation, hes done all this grand standing all this threatening so on and so on if true its more likely that tsipras could come up with a solution the fundamental problem is i think theres a change in the negotiating position of the e. U. Until a month ago or so greece was threatening the e. U. With the possibility of a breakup of the euro if it was forced to exit. I think what subtly happened on the european side is that they realized a greek exit would not necessarily follow from a greek default and what they are trying to do now is forcing greece into a position where it has to do a deal in order to be able to keep paying its domestic civil service, its domestic pensions because greece is now domestically running out of money as well as running out of money to pay its foreign creditors. If greece defaults it will punish itself because it no longer has any money to run its government. 48 per share. Cap gemini has acquired i gate. Lets cross out to steven with more on the story. Morning. 48 per chair share thats a 5 premium on fridays closing price. That make a total transaction of 4 billion in total cash for cap gemini. It will reinforce cap gemini on its core business and also it will increase its market share in the United States and it will actually make the United States the largest measuring for cap gemini as a result of this acquisition its also probably going to improve the operating margin because i gate this u. S. Company is much more profitable than cap gemini. It had last year a margin of 19 . Thats twice the margin for the french company. This acquisition will have a positive impact on the Balance Sheet from the next year. Cap gemini says its expecting an eps accretion for at least 12 of next year and 6 in 2017 and the Company Announced its revenue for the First Quarter of this year and raise its target for the full year to 5 growth at least for the revenue on that Constant Exchange rate. Its had quite the run over 49 over the past one year. Several gdp the worst sequence since the financial crisis in 2008. Investors are now turning to the fed to see how the committee will interpret the number later this week still with us is anatol. The concern going into the march meeting was the stronger dollar and the oil prices and how those factors have impacted the meeting. Since that meeting, do you still expect janet yellen to reference these two factories and how they have been negatively impacting the economy . In the statement, they will certainly recognize what they have said. Perhaps the dollar pressure is perhaps easing a a little bit. The rebound in the oil price makes the Economic Outlook a little worse rather than better. In the short term Falling Oil Prices is hitting durable goods and so on. I think its pretty much a balance. I dont think the fed is going to be shocked by the weak figures for the First Quarter. Theres a weather effect and so on, but on balance it is going to delay a rate increase i think beyond june toward september, october. If Stanley Fisher is right and the fed is planning to raise rates in june what type of risks could ensue . It it raises rates in june it will be a modest surprise to the market and i think the kind of risks would be a fall in stock prices you know a correction in some of the other asset prices. I dont think fisher was actually as clear as to say that they are going to move in june. I think he confirmed that they will consider it seriously, but in my view the weakness of the figures that weve seen over the last few months makes an autumn rate movem move much more likely. Overall, the u. S. Equities, are they still a good buy . I think in the very long wrong, probably okay. Its an interesting point considering the runup that they have and the fact that were facing rate hikes. Relative to the rest of the world they are not a good buy. Its been a rotation out of the u. S. In equity markets toward the rest of the world. I think the big question that investors are rightly asking is not so much should we rotate out of the u. S. But should we prioritize europe or japan or emerging markets or which emerging markets and that will continue to be the main story for the next few months. We thought when q. E. Ended in october, since then the stocks are up 5 . Its low Interest Rates that are keeping investors invested in the stock market. Stocks are up in the u. S. And they are considerably above the rest of the world. Cofounder and chief economist. Its another big week. Today the big focus will be on apple coming after the bell amid expectations that they can announce a Share Buy Back or a dividend hike. How should apple put its 78 billion cash pile to work . If you want to get in part of the conversation contact us. I think the company should not issue a bigger dividend. I think they allocate that money toward research and development and continue to grow their pipeline with innovative products. But they dont need all of it for r d for the moment. I dont think they should succumb to the pressure by investors. Were going to have to wrap that conversation there. Get in touch with apple. Much more to come still on worldwide exchange. The end of an era at volkswagenen, shares drive to the top of the german measuring after the chairman resigns. The lender plans to scale bank Investment Banking. Hsbc announces its deal to sell off. After shocks following a massive earthquake which has killed more than 3,200 people leaving thousands of nepalese sleeping out in the open. And you are watching world wide exchange, lets take a look at london markets this monday morning. Last week a mixed week for european markets. The german index did lose. 4 . The french gaining 2 . A greek default continues to keep investors on edge. The italian markets faring the worst right now. Euro stoxx now down. 6 . Bonds, increasely low yields across all of europe. You are looking at the german bund nonetheless, very low. French yield at. 4. Spanish and italian above 1. 4 . The euro recovered ground a little bit today, 1. 08 today. Sterling, 151 and were looking at the aussie dollar. 78. A report considering a spinoff of its british retail bank the sunday times suggests a deal for the business could be worth 20 billion pounds this comes as europes biggest lender ordered a review as to whether its headquarters should be moved out of britain. Meanwhile reimburse rbs is taking a sell of 5. 6 billion to mizuho. Hs bc i dont think any of us were interested in the 1990s. Back then it was still headquartered in hong kong. It made this huge acquisition of midland bank here in the u. K. And that gave its u. K. Banking arm and it moved its headquarters in london. Now, it looks as though hsbc is seeking to reverse those changes a couple of decades later, of course, theres a lot of chatter of them leaving hong kong when i spoke to the chairman he definitely wasnt ruling that out as an option for the bank. And theres this chatter about potentially reversing that midland bank tank over. Also estimates out there suggesting that hsbc could be saving itself 14 billion by moving to hong kong. This is a good explanation as to why share prices are driving so much higher in this mornings trade. Is rbs trying to row focus itself on domestic lending . Its trying very hard to it. They have been very keen to get rbs really boosting the british economy by focusing on domestic lending. I think both of these stories are telling us that post credit crisis, a lot of these banks which particularly rbs are really trying to go after Global Presence in the heyday of banking are now having to kind of roll a lot of that back and get back to basics. Of the teenage mew tant turtles, which was your favorite . Michaelangelo. What about you . Rafael. Dontello. How could you forget . Leonardo. Who is your favorite teenage mutant turtle . The lender expects the Investment Bank delevering costs from the euro. They sadie leveraging is going to total 130 to 150 million. Do stay with us with more. Later on cbnc we will be speaking with the coceoanshu jayne next. The u. K. Government to bipartisan it would oppose any government to bp Energy Companies battle remain profitable against a backdrop of lower oil prices. Moving on. Meanwhile, tullow oil remain higher. Wti crew posted its sixth gain. A new report finds that the longer term collapse in oil prices has caused a sharp decline in employment in cities reliant on the energy sector. The report also forecasts a decline in commercial rent prices and socalled Energy Centric cities. With richard york head of Global Occupier research at tdz. Help p us understand why is london one of the cities that is being positively impacted by the volatility in oil prices . London is a huge city its the worlds global city. Its clearly headquarters for major oil players like shell, bp and others. Because its got a very broad base of occupiers, its going to benefit from Falling Oil Prices. Its a tax cut basically. If you look at whats happening in the London Real Estate market, youll see a tremendous amount for office space, youll see record levels of investment going into commercial real estate in london. So so far london is actually benefitting from that. This is a simple trade because Energy Prices are down companies can afford nicer premises and spend more on that kind of thing . Its part of the stimulus that london is enjoying. Its effectively a tax cut. Clearly london is also enjoying tremendous Economic Growth for a whole host of other reasons. The Falling Oil Price is one of those and you can see some of those from the demand data. Multiple buy mumbai india. Its one of the larger Oil Importers of the world. Its going to have an impact on gdp and employment. Theres very large cities like mumbai will benefit from that. Were seeing huge amounts of office stock being brought to that particular market which is going to keep rent fairly stable or even a bit lower. That will be beneficial to all kinds of buyers. Lets talk about the flip side. There is a high correlation you believe between the oil price and property prices and the general economies in those cities. Sure. We identified six or seven Energy Centric cities which have benefited from Strong Oil Prices in the past but now suffering the flip side of that oil prices started to decline. Were see impact in terms of reduced investment job attrition, emerging acquisitions in the oil sector. Cities that were exposed to the oil price are cities like houston, calgary, aberdeen and perth. With the collapse in the oil price, were seeing demand slacking off and that have an impact on rents. I didnt realize there was such a strong correlation between the Real Estate Market and energy sector. In the u. S. Which cities are most cities are impacted . Houston has probably being the most dynamic city in the u. S. Obviously. Its seen tremendous growth in terms of people working in the city. Must much of that has been due to the oil boom. The city hads enjoyed really strong growth. Clearly with the oil price where it is were seeing investment beginning to be rained back reined back. Well see an impact on absorption as well. What happens when Oil Prices Continue to move to the up side and that means for these cities in your research. Well bring you back then. Do continue to get in touch with us on the show. Google finds a friend in ebay. Ten days to go before the u. K. Election we speak to former British Ambassador sir nigel sheinwell after the break. Ten days to go until the u. K. Elect and the race is still too close to call according to three polls published at the weekend. The u gov put the conservatives ahead. And David Cameron has secured the backing of 3,000 businesses warning that a labor government would pose a risk to the recovery. To discuss that and more joining us now is the former British Ambassador to the u. S. And the European Union. Thank you for join using. Is it plausible to leave the European Union but keep the Free Trade Agreement and all the other things we like at the moment. Is that at all possible . I dont think it is. I dont think what David Cameron wants. I think David Cameron wants to renegotiate our status and for us to stay in the European Union because of the advantages for the u. K. But i dont think there are any plausible alternatives which give us roughly the same economic and trade deal which we have at the moment. Thats one of the weaknesses in the u. K. Case and thats one of the reasons i hope their supporters peaked last year and. David cameron says we dont want the referendum for a couple of years because that gives me time to negotiate what we have with the European Union. Frankly. Theres a lot of interest and support in the e. U. For change and reform beth for economics and welfare and migration. They are on a crisis of their own. They dont want much if any treaty change. Thats going to be a real problem to change the fundamentals, the constitutional fundamentals of the eu but of course he has some support in the e. U. He needs to be very careful in not overplaying his hand and not assuming that people want the u. K. In so much that they are prepared to give us everything. Because clearly the message from Angela Merckle was there were limits to german support. The limits have been in top of mind for investors. Do you think this potential britikt. I think thats likely the case. It stands to reason if you look at the number of companies british and international, small and large which have said over the past couple of years that they are worried about a british exit that they believe its in their interests as well as our interests for the you can to stay, i think there wouldnt necessarily be a freeze on investments but Big Companies thinking about putting investments here for the first time will at least pause before they go ahead. It will have at least a partly Chilling Effect on investment if were in for a year or two of negotiations following by referendum. Do you think those concerns are exaggerated given it might not happen until the end of 2017 . A lot of people would bet it might come a little earlier. I dont think its exaggerated. Thereby would be at least some reduction in investment over that period. How do you weigh up their successes and failures in the Foreign Policy front . I think David Camerons instincts were right in libya. I think they are right. I think his instinct on syria was to do more earlier in the process and try and nudge the United States and other allies into doing more, i think it was the right instinct too. I think his europe policy has suffered from uncertainty and ambiguity because he hasnt been able to explain to the British Public or International Opinion enough that he believes that britains future is in europe and thats created doubts bhis negotiating strategies. I think there have been some problems. Foreign policy isnt the key issue in this campaign but i certainly believe we need a bit of a debate in the u. K. About our place in the world. Thats taken a knock partly because of the recession and iraq and afghanistan and we need to wake up as to whether were going to be a International Force in the world, which we have in history. How do you know he would stand up in an important discussion with Vladimir Putin . Im sure he would represent the u. K. Competently and well and he would have good support from the british system. When you look at a Prime Minister, that Prime Minister represents the u. K. Its not all about personality, but of course thats something he has to learn. Hes been in government before. Of course its a very different thing being Prime Minister. U. S. Secretary of state john kerry will meet with the Iranian Foreign minister in new york today. The talks will occur on the sidelines of the Global Nuclear treaty conference. Iran is still in discussions. Sir nigel well get your thoughts. Theres a lot of skepticism attached to the pursuit of a nuclear deal with iran. What are your thoughts . There are risks in this. I actually think that my former colleagues and the British Government are right to believe that this is the right deal and overall a very good deal for the international community, and the best way that weve got in the foreseeable future of doing two things. Number one of containing the Iranian Nuclear program and getting it on to a track which is acceptable to us and to irans neighbors, but secondly beginning the very very slow but necessary process of reintegrating iran in the international community. They have been outliers and outlaws for over a generation now. I think the current leadership in iran does present us with a chance to begin that process and i think that would be historic and a gamechanger and could happen over a period of time but not instantly. You mentioned there are risks. Is one of them the possibility of an elevated clash between the saudis and the iranians over this . I dont think theres a risk of a military clash instantly as a result of the deal. Its more that the deal has been reached without there being understanding either between iran and saudi arabia directly or between the United States and saudi arabia on where iran is going to sit in this region. I think thats one of the tasks for american and International Diplomacy is to try to bring the temperature down a bit in relations between the shia and sunni in the region and also particularly between saudi arabia and iran because there must be room in that region for both of those countries if they can both moderate their ambitions somewhat. It doesnt seem like iran will be changing its Foreign Policy unless sanctions are lifted. I dont think that iran can expect sanctions to be lifted instantly all in one go. Its going to be a staged process as it was inputting the sanctions package together in the first place. We touched on the u. K. Election. Are you keeping a u. S. President ial race . I have been watching that very closely and continue to watch it. It seems a long way out at the moment. Its going to be a very interesting ra race and like in 2008 you wont have a president running, an incumbent president running. It will be very interesting indeed. Lets talk tech ebay ceo is gagging google in its defense against the eu anti trust case. Brussels does not understand how consumers buy items on the web. The eu. s complaint focuses on claims that google has favored its own results over rival shopping searches. Those recent anti trust charges against google have brought a lot of concern as to whether this will result europe being a less favored destination for u. S. Multinationals. Ebay and google are effectively competitors, ebay is stepping up and saying google is not being treated right. Its rare we see those types of companies coming together and agreeing on something. Its in their interest to try to avoid this anti competitive policy weve seen focused against google. They have been arguing ebay maybe they have got dominance in Search Engines but they dont in other areas, this highlights the feeling in Silicon Valley this is what we can expect going forward. Expect a strong united voice from sillicon valley. More than 3,200 people have been confirmed dead after a huge earthquake hit nepal on saturday. Large after shocks continue to damage buildings in the region. Reporter it starts now when people are gathering in open spaces around the buildings here. They are too afraid to spend the night at home. There was another big after shock today and they are verified and terrified and their buildings may yet collapse and they are not willing to go back inside. This area appears to have born the brunt its unclear what happened in other parts of the valley and areas that are closest to the epicenter of the quake. And switching focus to Corporate News a big focus for tech today will be apple which reports erpg after the bell. Ahead of earning, were asking how should apple put its 178 billion of cash to work . Hawkins says they should invest it into new Product Development including tv and car developments and put excess into the dividend. I like what he has to say. I like that mr. Hawkins is suggesting apple tv being a focus for its r and d but 70 of that 178 billion. That would be a huge amount. Outside of that in order to develop the products they have like the iphone and the tablet which have both revolutioned their product categories youve got to put cash in innovation. They should create schools, Colleges Universities and Business Schools, share the knowledge wealth. Im not too sure investors feel like. Join us in the conversation. This weekends show down between Floyd Mayweather and Manny Pacquaio has been billed the fight over the year. This comes after rapper 50 cent says he will be betting over 1 million on a mayweather victory. Its a little bit vulgar throwing the numbers around but it makes it more exciting. I am im not a massive boxing fan. Theres so much hype over this fight, its going to be awesome. Theres so much hype. A slightly different stories and one of the strangest news stories in the decade. The Stephen Hawking said the band may still be together in an alternative universe. There may well be proof of one multiple universe one day. What is going on . If you have to pick two pop artists, which one would you pick . Im a big swifty. I knew you were. Still to come on the show yes, apple could follow in the footsteps of other major corporates. Whats the real impact on shareholders . Were across to the u. S. For a live discussion. Futures right now indicating a higher open. Happy monday everyone and welcome to worldwide exchange. Im seema mody. And im wilfred frost. Apple reports results after the opening bell. U. S. Futures point higher so can the nasdaq maintain its momentum after closing at a record high on friday. Ebay backs google in the search giants european anti trust case. Rescue efforts in nepal are hindered by after shocks following a massive earthquake which has killed 32 people 3,200 people leaving thousands sleeping out in the open. Thanks so much for starting your day with us here on worldwide exchange. A lot to look forward to. Yes, earnings but we continue to keep an eye on greece and that fed statement coming out this weekend, aside from fed and greece i argue that apple will have a larger impact on the markets than greece or the fed. Just saying. Just saying. Thats whats going to happen. Well i will have to go the other side lets take the bet, ten pounds. Here we go ten pounds. Apple earnings they are going to be important, but the big earnings for them was last quarter because they had the iphone out and everyone was focusing on that. Of course that will continue to be a trend, but were in between when the watch is going to make a real impact and the iphone it still continuing to make an impact. On top of that relative to last week we had some Big Tech Companies making a big impact on the market. I think apple, the fed, as soon as they give us any indication, is it june or september . They are going to continue to kick the can down the road. Because of april he will i will argue that expectations are even higher for apple to really deliver another record breaking quarter. Can they do that . Thats really interesting. Im not sure how were going to mark this bet. I think we can look after the apple reports. I was looking for spending your ten pounds in the pub on friday. Green across the screen at this point the dow up 14 points in premarket trade. Investors responding positively and we did see the nasdaq push to a new record high right now suggesting a higher open in todays trade. Lets take a look at the ftse. Lets switch over to europe because a lot of focus will be on that u. K. Gdp report that we get later this week and also oil earnings we hear from bp shell, as well. Keep an eye on the index. Right now at 7,042 down by 28 points. The dax Still Holding on a loss of 26 points. Over the past week french stocks have been the outperformer. Outperforming the german index. After the u. S. Record close on friday and chinas well a sevenyear high. That optimism not quite carrying through to the european markets. Lets look at bonds. The u. S. Will be in focus when we hear from the fed. Were at 1. 9 on the tenyear that might suggest a rate hike. Well see what they have to say later this week. Germany, 0. 14 . Were looking at 1. 6 in the u. K. Rate rite expectations. Lets look at broad u. S. Dollar world is still here. The strong u. S. Dollar world is not rising against all currencies regardless at the moment. Weve got the euro giving up 0. 35 today, its been strengthening the last couple of weeks. Sterling, its off 0. 3 . Its giving up land against the u. S. Dollar this week. People have been questioning whether it will affect sterling. A quick look at commodities, oil prices have been recovering the last couple of weeks. Weve got wti. 12 and brent. 06. Starkly mixed fortunes in our region today. Lets start with china. Were looking at fresh sevenyear highs for the shanghai composite. Up by 3 . Theres expectations that we can see more consolidation. The beneficiaries of report having a strong recession in shanghai. That positive over to the hang seng. Stock up by more than 5 during the session. Elsewhere, on the losing column jakarta composite ending at its lowest level since january the 21st. Bank man deerry was a big drag on the broad index. Down by 3. 5 is the quote we have right now. Its going to be a very busy week for this month. I like the fact that we have the bank of japan as well, the bank of that i would meeting, and the next big test for the great Chinese Markets is going to be the macro data later on this week. The official figure comes out and if thats not give you weve got data a lot of local factors, Economic Data, policy meetings to digest with these markets. Lets also get you a rundown of what to watch. Theres no major Economic Data today but the big highlights of the week are the report on First Quarter gdp on wednesday and the feds two day meeting which begins tomorrow. Its another week of major earnings set to report. We hear from Restaurant Brands international before the bell. After the close, its apple, bear rick gold, rent a center and the container store. Apple wont likely top the previous quarter which saw the debut of the iphone 6 and 6 plus during the holiday season. What will it do with its 178 billion in cash. The company has returned most of the plan to shareholders through buybacks and dividends and is expected to disclose a revised plan. Thats how its trading in frankfurt, up by 1 . Lets talk more about earnings season. Brian, what are your thoughts . Is apple going to be a big market mover for tech today . Theres a lot of headlines this week between apple and the fed but the big picture to me is that companies are buying their stock back. If they are, then they are doing mergers. Were seeing more buying from companies, but stocks have been flat for four months. That tells us that investors have been selling stocks. Thats kind of been like a wash over the last four months. To me that means theres going to be more Financial Engineering from companies designed to lift their stock prices up in the next few months. Brian, do you think markets have only been supported by this sort of Financial Engineering in the last couple of months as opposed to to anything fundamentally positive . I think markets have been supported by this Financial Engineering not for the last few months but for six years. Most investors have done nothing. They have sat on their hands for six years. Retailers put some money into etfs but Pension Funds have been net sellers for the last six years. The main buyer of stocks over the last six years has been companies themselves what were seeing is that trend is accelerating this year and its probably going to accelerate even more as we get deeper into earning season. Brian do you think thats because companies are basically living in fear of the activist investor scare that if they dont allocate money into near term monies via share buybacks that they are going to get a angry call from mr. Carl icon . I think most ceos are incentivised to get their stock up. One of the big trends is activist funds have been bringing in more money and that means theres going to be more money targeted to companies that are under performing and if a ceo isnt buying his stock aggressively, then youll see the activist doing that. The big question is what happens when raise do in fact rise . Will that curtail the amount spent on buybacks . Historically when rates begin to rise thats when credit booms accelerate because the funds that mimic john matter merry weather, which rates go up that suffer losses thats when they go from ten times leverage to 50 times leverage in order to make up for the losses. The best stock price gains have come after the feds begin to tighten. One trend weve been seeing in order to fund these buybacks is a lost these companies have been raising money via the debt market to fund their buybacks. You are saying history says it will. Well leave it there. Lets take a look at some of the other top stories. More than 3,200 people have been confirmed dead after a huge earthquake hit nepal on saturday. Large after shocks continue to damage buildings in the region. The 7. 9 quake was felt as far away as india and china. It also triggered deadly avalanches on mount everest. Coming up on worldwide exchange, with teslas twitter compromise we investigate what drives hackers to take on the big brands. Thats coming up in two minutes. Welcome back. Remind you of the headlines, the death toll from the earthquake in nepal continues to climb with over 3,000 confirmed dead. Investors countdown to Apple Earnings waiting to hear how the tech giant will put its cash pile to work. And volkswagenens chairman resigns. Time warner cable may already have another potential suitor. Reports say Charter Communications is seeking talks on a possible merger. On friday comcast, the parent. Cnbc dropped its bid for Time Warner Cable. Charter has been contacting recent weeks to arrange financing even before the comcast deal fell apart. Time warner up 2. 5 and charter down almost 3 . Ebay ceos is backing google. John donahue tells the Financial Times the two companies are direct competitors. The e. s complaints focuses on google as favorite of its results. Teslas was hacked over the weekend. This is an interesting one. I mean it doesnt look like this was a malicious attack. It was just some people having fun and its amazing that they managed to do so. Its still a hack. The fact that these big fastgrowing Companies Like tesla which say they are allocating a lot of cash toward security are still being hacked. And has is huge technically advanced and they are still a target for these type of attacks. He love his twitter account. Lets move on. This weekends showdown between Floyd Mayweather and Manny Pacquiao is the fight of the century. Mark wahlberg and p. Deadly are betting 250,000 over the fight. This comes after rapper 50 cent said he will be betting over 1 million on a mayweather victory. Exciting stuff. Japan has been down graded to a, staple stable. Fitch down grading japan to a. It says that japanese did not include sufficient structural fiscal measures in the fiscal year budget. The issue ratings on japan unsecure foreign and local currency. Still to come on the show here on worldwide exchange, u. S. Gdp estimates get a hair cut. Are we blaming it on the weather . Well zut all the details after a short break. Theres some facts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. Welcome back to the show. I just want to get you up to speed on a story that just hit the wires. Fitch has just down graded japan, down graded to a, to stable. It includes the japans government did not include in the budget to replasce. Fitch down grading japan. Lets take a look at u. S. Futures ahead of the market open. They are continuing the trend from friday. Thats contrast to european equities which are a little soft today. Absolutely. And a focus will be on the u. S. Gdp report. Several banks have resides down their estimates after fridays soft durable goods reports. In march, the sixth successive negative reading since 2008. Investors are turning to the fed to see how they will interpret the number later this week. Brian reynolds is still with us and brian, i would argue that its the stronger dollar that will administer of a negative impact than it will be gdp. I think its funny you how the fed think they can tighten when every other bank in the world has been easing and that thought tightening while everybody else is easing is causing tremendous Dollar Strength which may boomerang. Whats your expectation . What are we going to see a rate rise in the u. S. . Probably not till late this year but i think its going to be very difficult to raise rates, period. Weve been through a number of phases over the last six years where people were certain that the fed was going to be able to tighten very soon. 2010 2011 it was fully priced and the fed would be raising rates and they werent able to do that. In fact they had to do quantitative easing instead of raising rates. Thats because we have a debt overhanding from the last cycle. That debt overhanding hasnt gone away so its going to be very difficult i think for the fed to raise rates. I still size with the dove which is charles evan who says rates cant rise until 2016. I think something this year. September looks more likely. I think, yes, were unlikely to see them raise too early because they have waited this long why not wait a little longer. They are looking at Inflation Expectations forward looking measures as well. Its possible in june small chance. Otherwise, at the present time. If the fed does wait until 2016 to raise rates, does the central bank and janet yellen lose credibility . Well, the fed had no idea about how bad the crisis was until the crisis was almost over and so the fed doesnt really have a lot of credibility because they have been reacting for the last seven years instead of being pro active and thats to be expected because most fed governors are academics and politicians and professors. They are not market practitioners and weve got in a situation where our Pension Funds have levered up tremendously and that dictates what happens to the economy. Thats out of the textbook which means the fed is playing a catchup game whether they were in a recovery or recession. Aside from the fed, we have earnings which will be a focus. Greece continues to be top of mind for investors. The government is trying to find a billion euros to pay pensions and subsidies this week. How worried are you about that . Greece has already defaulted. It wasnt a big deal for the macro environment. When they default again, it probably wont be a big deal either. Greek yields are already approaching 20 , the market has already discounted that they are going to default. If they dont default, thats a positive surprise. If they do default, thats already built into the markets. All right. Brian, were going to leave it there. Thanks so much for joining us here on worldwide exchange. Heres a look at some of the top movers here in europe today. Markets are reacting positively to the announcement from volkswagen chairman that he will resign with immediate effect this after losing out in a power battle with Ceo Martin Winterkorn who is expected to take over the chairmanship as well. Deutsche bank plans to significantly pare bank its Investment Banking business cutting 200 billion in business. Its part of a 3. 7 billion euro restructuring program. Coming up on cnbc well be speaking with anshu jain you wont want to miss it. Will it be a juicy quarter for apple . They report after the bell. We get the details coming up in two minutes. And that question has got us talking. What is going to happen to that cash balance or is that not the top aspect for these results . Will you be looking for iphone sales or guidance on apple watch sales or something new, apple tv and the rest of it the internet of things. Get in touch with us. Email us world wide at cnbc. Com or via twitter and our personal handles are on the streen screen as well. Before we go to the break, were going to look at u. S. Futures. Were looking at a positive open. S p up 2. 5 and dow jones up and nasdaq up 8. Well be right back in a couple minutes. Its 5 30 a. M. In new york. 10 30 in london. Good morning, everyone. You are watching worldwide exchange. Im seema mody. And im wilfred frost. All eyes on iphone sales. U. S. Futures point higher so can the nasdaq maintain its momentum after closing at a record high on friday. The end of an era at volkswagen. Shares drive to the top of the german measuring after the chairman resigns following a lost battle to oust ceo Martin Winter korn. And a massive earthquake in nepal, killing 3,200 people leaving thousands sleeping out in the open. A record high for the nasdaq. Can the bull run continue . Right now, the u. S. Futures pointing to a higher open for the tech heavy index with all eyes on the Apple Earnings. In terms of earnings, 20 billion of revenue have been shaved off due to the u. S. Dollar and the negative impact for a lot of those multinationals, that will be key for apples earning report given its international exposure. Lets move on to greece. Greek lawmakers approved a decree on friday. Greece says it wants a rx deal with International Lenders to come to a final resolution in the month of may. The story continues and that continues to weigh on Investor Sentiment here in europe despite greece only making up 2 of the euro zones gdp. As we were telling you, the dax trading in negative territory. It was the german index that under performed. Its down about 40 points. The ftse still down. 4. We have bp reporting tomorrow. Its expected to announce further spending cuts and latest this week, we hear from others as well. We have a lot of policy meetings in the u. S. And switzerland, sweden and new zealand. Seema, thank you. Lets focus on apple which of course reports Second Quarter earnings after the closing bell today. Forecast 2. 16 a share. They expect strong iphone sales. They likely wont top the previous quarter. Also on apples agenda what it will do with its estimated 178 billion in cash. The company has returned the most of the 130 billion in shareholders through buybacks and dividends. The strong dollar may also hit results. Apple warn in january it could cut 2 billion from q 2 revenue. Frankfurt, up about 1 . Joining us now is angelo zino to talk more about apple. Good morning to you. Thanks very much for joining us. Its a tough act for apple to follow on two levels both following their last Quarter Results which were a blowout and also tech results in general over the last week. Can they meet expectations . So we actually think they will meet expectations. In fact we actually think they will likely beat expectations so our expectation is 2. 18 in earnings on revenue of about 56. 7 billion, so slightly above the street. Right now, were looking at 56 57 million in iphone sales. Thats going to be the key to the quarter. Apple is going to need to blow the number out given their recent success in prior quarters and i think investors for the most part are going to be looking at seeing if they can top the 60 million level. Still a drop from the 47. 74. 5 million. Nonetheless, its growth north of 35 . Overall, we expect a very good quarter from them. Angelo given its Large International customer base, how much of a negative impact will the stronger dollar have on apple which does have high exposure overseas . Right. It negatively impacted them last quarter and as you can see, they were still able to blow out the numbers. You look at the results here coming up this quarter, and, you know, the company gave their guidance in late january when we already saw a massive hit, you know in the euro relative to the dollar as well as our other currencies, we actually think a lot of that is already discounted in the original guidance they gave for 52 to 55 million in iphone sales. Overall, it will impact them but nonetheless we think its already reflected and in the numbers. China has become one of the most important regions for the iphone success, given currency fluctuations and some of the other devices being made. Does apple really have the brand equity to keep the customer vested in the Apple Ecosystem . We think they do. We think at some point china will actually surpass the u. S. In terms of being the u. S. s most important market. But if you kind of look at whats going on in china right now, you are just now kind of still relatively early in the 4 g adoption era and that as we continue to see the china market evolve apple will benefit as well as many other competitors but apple is a very strong brand out in china. Consumers appear to love them so we expect very good things out of china for them. Do you think that apple can get to one trillion market cap and if it can, whats the factor that will get it over the line . Yeah. I mean we currently have a hold recommendation on the stock, 140 target price so were not looking for that to happen here over the next 12 months . Do we think they eventually could get to a trillion market cap, thats an interesting question. Whether they can expand their measuring, i think it all depends on them but they definitely have the opportunity to get there at some point in time. We dont expect that to happen here over the next 12 months though. The iphone 6 in some ways monopolized the market. Can am do the same thing with the watch . What do you think . Our current projection coming out of the actual launch was about 10 million, given some of the early adopters that gained steam here early on. We actually think theres some up side to our expectation here but i think the i think when it comes to the apple watch, our belief is were looking at about 30 million in sales by 2016 north of 40 million in 2017. We remain under the belief that this will be a great product here over time it will take some time really before apple can really get the product right. Yeah. Absolutely. Angelo zino thanks so much for joining us this morning on worldwide exchange. I dont know, wilfred, i think the watch wont do as well in the highend market against some of these big names, these institutions like rolex and cartier. I think theres such a wide range of expectations for where the numbers could be and its very hard to put your finger on which is most likely. I kind of agree. I think its going to be under we will many initially. You cant have an apple watch without having an iphone to connect to blue tooth. Its the way they get into every part of your life is interesting about the watch. I have the feeling that the nighters the numbers will slightly under diagram underwhelm. They were all invested in the apple system. Ahead of Apple Earnings were asking you how should apple put its 178 billion of cash to work. Were getting your tweets. Hawkins says they should invest 70 of the cash into new Product Development, including tv car initiatives and putting the excess cash into its dividend. Another tweet has come in to say that they should create schools, Colleges Universities and Business Schools and share the knowledge wealth. Join the conversation here on worldwide exchange. Get in touch with us by email, world wide cnbc. Com. And john doneahue tells the two companies are direct competitors on line shopping. The e. U. s complaint focuses on claims that google has favored its own results over rival searches. More than 3,700 people have been confirmed dead after a huge earthquake hit nepal on saturday. Thousands are more still without home or shelter after large after shocks continue to damage buildings in the region. Ian williams in kathmandu filed this report. Its dusk now and people are gathering in open spaces around the buildings here. They are too afraid to spent the night at home. There was another big after shock today and they are terrified that their buildings may yet collapse. They are not willing to go back inside. Its unclear what happens in other parts of the kathmandu valley. Now, google has confirmed one its executives among the dead in nepal. The company says dan freddenberg was with three other employees hiking mount everest. He served as product manager and head of privacy at google x. Were going to bring you some flashes on the greek story. The greek government has said they will support the finance minister. Greek government officials saying thats not the case. There will be a Political Group to lead talks with lenders. Perhaps being pushed to the side a little bit but still apparently in charge of the ongoing discussions. Despite his combative approach i should point out that he tweeted that they are unanimous in their hatred for me and i welcome their hatred. There we go. He always knows how to get the media talking i should say. Coming up more on greece just as comcast walks away from its merger with Time Warner Cable, another suitor may be preparing to swoop in with a bid of its own. Well get you this story coming up after a break. The staff at this beautiful resort. Will stay with you forever. Especially if you dont leave. You got it booking right. Booking. Com booking. Yeah and it was a historic week for the u. S. Markets with nasdaq closing at a record high, spasing the record that it hit 15 years ago right before that tech bubble crash. As you can see, nasdaq closing at 5,092. The next resistance level for the nasdaq is 5,128. Thats a number to keep in mind for those who watch telks, we should point out yeartodate, the nasdaq out performing the s p 500. One driving factor has been better than expected earnings. April am i son amazon was one of the best performing stocks gaining 15 . As you can see its had quite the run having to do better than expected earnings. Its cloud revenue spasing expectations. Will be it able to perform as well as amazon and microsoft . The m a rumor mill will be circling the u. S. Regulator may be set to light a match under a major ernlinger for the tobacco industry. Lets get out to cbnchq time qarner Time Warner Cable could find itself back in play. Charter communications is seeking talks on a possible deal. Friday, comcast dropped its 45 billion deal in the face of strong opposition from the Justice Department and fcc. Charter has been talking to banks in recent weeks about lining up financing even before the comcast deal fell apart. Charter and Time Warner Cable would have more than 15 million u. S. Cable, and internet customers. Reports say the company is concerned about the level of debt the combined firm would have and believes charters shares are overvalued. Charter is down more than 2 while time warner is up by nearly 3. The New York Post reports the federal trade commission is expected to shine off sign on reynolds purchase of lorillard. Approval comes despite objections by some ftc staffers and concerns by consumer advocates about marketing tobacco to children. Checking in on those shares in europe today, reynolds and lorillard are lower while imperial up nearly 1 . Lets take a look at other top stories this hour. Starbucks is back to business as usual after a computer outage affected registers at all of its u. S. Stores on friday night. They were forced to give away free drinks at some locations before Closing Stores early. The system was restored saturday night. The glitch was caused by a Software Update and not a hack or data breach. Lets take a look at the board. Its basically flat trading at 155. 81. Quite the under performer. Indeed. Now, lets move on and talk about puerto rico. S p has down graded their debt down into junk territory. S p says the cut is based on the view the u. S. Commonwealths access to the waryk has market has weakened. And here are your headline right now, the death toll from the earthquake in nepal continues to climb with over 3,700 confirm dead according to the countrys home ministry. Investors wait to hear about apples cash pile plans as it reports after the bell and volkswagen shares jump after the chairman resigns. The greek government will continue to support finance minister in leading talks with the countrys creditors. According to reuters, it was reported by german chancellor and the greece Prime Minister. What does this mean for european markets . Well, they are in the red, not really specifically because of the greece story, its just pausing for breath after what has been a good run yeartodate for european equities. They were up last week. With a little bit of volatility in and around the middle of week pmi data. German off 0. 2 and both france and spain lacking a little bit behind. The other story moving markets, in japan are, the yen is moving lower against the greenback. Fitch is down grading it. Due to a lack of spending cuts in the delay regarding the tax hike. What can we expect on seema. [ right now, arrows pointing to the up side. S p 500 up around 3 points and nasdaq indicating a gain of around 8 points. Health care still the bestperforming sector up about 9 in 2015. Lets get you rundown on what to watch this trading day. Theres no Major Economic da da but the big highlights of the week are the First Quarter on wednesday. Another big week of earnings as well. More than a quarter of the s p 500 set to report. Joining us today is alan nufman. What will be it Apple Earnings greece, or the fed . I think its apple. Will thinks its the fed. I think apple is going to be the barometer of the week. They were left out of the rally last week. The options earnings are reporting in 5. 5 move. This push above 130, targets move to 140, still about 7 higher. Theres a lot more up side in the apple market and i think they want to play this game. But im really encourage and im very optimistic about how the market has been reacting when we had such low expectations for earnings. Weve come out better than bad and the market likes it and the price action has been very positive. Lets talk about what you are saying there because the only reason this earning season has been reasonable is because expectations had come down so much so all in all its not like earnings have been stellar. Are they good enough to justify the kind of market moves we saw the back end of last week . Well, its a good rule for life. Set low expectations. Its always easy to overcome and exceed them. You know if you look at it 70 of the stocks that have reported right now and were about halfway through if you look at market capitalization in the s p where we were at about 200 Companies Reported so far and a lot more this week but you know, the net net is the earnings per share is continuing to come in above expectations. We expect x, if we beat x, the market moves positive. The revenues are still a concern, but those have always been kind of lagging behind and theres a relief as there is pretty much every quarter over the last three years, theres a relief that we continue to chief. When you look at the pe ratio, were still only at 17. We have a lot more upside in my potential. The were not seeing the kplas sense si that we could see and im still encourage by the fact that theres still so many nonbelievers in this rally that this could continue to go go go. Ill prices is right around here at 58. Consolidation, i think its going to push to the up side. There you go. Brent crude down. 7 of a percent. Coming up later on cnbc annette will speaking to anshu jain. That is all we got time for here from london. Thank you joining for us. Squawk box is next. Have a great day, everyone. . Good morning, disaster in nepal. More than 3,200 people dead after a massive earthquake and major after shocks. Rescuers frantically searching for survivors. In wall street news apple ready to post results after the bell today. And information at risk officials now saying that Russian Hackers red president obamas unclassified emails. Its a breach worse than first thought. Today is monday april 27th 2015 and squawk box begins right now. Live from new york where business never sleeps this is squawk box. Good morning. Welcome to squawk box. Becky out sick today. We hope she gets better. Lets tell you whats going on this morning. Jay z launching a war of words blasting the streaming media status quo. The rapper found a title and he says Big Companies are spending millions to under mine it. If you are just waking up this morning, lets get you caught up on the markets. U. S. Equity futures at this hour looking at the dow higher it looks like it opens up 22 points higher and nas dag 8. 5 points higher and s p looking a little over 3 points. Joe, i know he