Transcripts For CNBC Worldwide Exchange 20150429

Reuters poll. Just seeing a little bit of a march higher. The reason why its important is because it tells us a little bit about the ecbs Bond Buying Program and whether or not that Bond Buying Program and the money in it feeds through to the real economy and the real lending. Thats the big concern. We know it impacted the financial economy when you look at the record low yields. The question is when does it feed through to the real economy. When do we see a boost in lending to small and mid sized businesses that need that capital in order to grow. Im glancing to see whether or not they say anything else but not right now. 0. 1 versus a completely flat one. Its pretty much as anticipated right . Interesting to see the euro dollar trade at session highs. Looks like there could be other factors at play heading into that too. Also we have a lot of earnings out and we have the twoday fed meeting too. Thats the big driver where we should be hearing more later on today about what they have to say. Hence on hikes. Hence on hikes. Janet yellen will be getting more news today. Fed Statement Due at 2 30 p. M. Eastern. Barclays under pressure after pretax profit dropped by 20 . They set aside an extra 800 Million Pounds for alleged currency markets. The firm impressing investors with a dividend hike and plans to extend its chain. Some european autos on the move after reporting earnings today. The First Quarterly revenue up by 5 due to higher pricing and improving demand in china. In Germany Volkswagen included operating profit of 3 billion euros. So a lot of stock specific action. Particularly interesting to see that move up. 6 . Lets talk more about the trade in autos. We have the senior managing director and partner at head of Automotive Research. Quite the lengthy title. I dont know. You keep repeating that. Head of autos is enough here for today. When we talk about autos, specifically volkswagen theres an active discussion about the management shake up. Was that warranted . You say yes and you actually upgraded the stock. Tell us why. Well i think what happened is really a monumental change in the powers within the company. He has done a great job over the last 30 years within volkswagen. Hes the man developing audi to what it is today. He recovered them from almost bankruptcy in the early 90s so great job but time for change now. Vw has to consolidate the 12 different brands really more effectively that they accumulated over the past years. Were hoping for more change and independent chairman. But your earnings estimate is about 10 higher. What are you expecting in the coming months . Were bullish on european autos and demand. We see a recovery taking place. The currency. Its a positive thing for german exporters so naturally my numbers would be a touch higher than consensus expectations for the space. Volkswagen is a company with chronically high costs. Labor costs are the highest from 1997 within volkswagen. Material cost, 132 billion. The highest ratio to sales since 1990. So theres a lot of upside if they tackle it. Weve seen a lot of recovery in the share price just as weve seen across the auto sector within europe. You mention the changes that you think have to happen. He is going to take over the chairman position now that he is gone im sorry. My pronunciation is not as good as yours and the new ceo, will that be from the inside or somebody from the outside . Big questions and hard to answer to be honest. The current ceo wants to be the next chairman. He made that clear. The question is since theyre still on the Supervisory Board the family still needs his support. He needs to come back to the table and the question is whether it hasnt become something in the power struggle between the families. Vw would probably be best advised from a Corporate Governance perspective to have an external chairman and the ceo question they have enough internal talent to find a good ceo. Looking across the other erngs in the past when weve seen upturns in the auto sector or downturns they all follow each other and then some outliers where theres too much focus on the high end or low end. Are there any auto makers at the moment that fall outside the general trend. The only one i can think of is Fiat Chrysler because their earnings momentum lagged pretty much every other global pier. The others are recovering step by step. But the reason he is calling for industry consolidation is the problems in his own business. When you look at vw, what theyre trying to do reducing costs when it comes to their battery innovation are they following the lead of tesla here . They all have better battery technologies. Some go for larger scale stacks and the other in smaller scales. Theres differences in technology but whats very clear is the industry is moving electric. Its an electrifyication. So were positive. Consumers will save money from less petro consumed. Thats a good thing. When do you think the switch will happen . More than 50 hybrid . Probably about 25 to 2030. Were getting closer to the next lag in european emission regulation and by then its almost impossible to comply without a step up in it. You go to amsterdam most of the taxis are teslas. I didnt realize that. You cant hear them. Completely quite. Thank you for being with us. Senior managing director from Automotive Research at isi group. Other Corporate News in europe sainsburys rejected claims that the ceo was sentenced to jail in egypt. The story stems from a collapsed egyptian business in which sainsbury once invested. However in a statement they said the charges relate to a historic commercial dispute in which he had no involvement. In fact he was not even employed by sainsburys at the time of the original business deal in 2001. You can see sainsbury just down by about. 8 . Now the European Market update. Lou over to you. Hi again from the wall this time. Yesterday on the close we were looking at our European Markets trading in negative territory. We saw quite a late session sell off yesterday. Greece still hanging on above that flat line. This morning we recall higher in our European Equity markets at the moment right around flat. You the stoxx europe 600 indicating this. A whole raft of erngsarnings hitting the wire. Twitters numbers surprising investors and causing chaos in the last half an hour of trade before the nyse closed. The ftse dax, and cac 40 all lower. Nothing to write home about. We have bigger themes that are carrying us this week. The feds two day meeting wrapping up today. Well look at what yellen has to say, whether or not shell be referencing the weaker data and if that will give us more of an indication on when the fed decides to hike rates and the bank of japans policy meeting on thursday as i have been saying too. Its a big event worth watching. When it comes to the fx markets the euro dollar hanging on at 10992 at the moment. Well be talk about cross trades later on on the program. You have the pound against the green back right there to the corner. Higher by. 3 . We had that lending data out just here at the top of the hour coming through relatively in line with expectations. The aussie dollar against the green back a little bit lower but we had a whole bunch of erngs outerng earnings out. Also out of samsung electronics. Theyre worried about the second half of the year particularly. Sri has a full wrap. Samsung has been a big story . It is a big story. Investors like the numbers and the key question for me is whether they can keep up the pace off of operating margins at 10. 6 given that they are still in this very fierce competitive smartphone marketplace. Ill leave that for you to dwell on. Were backing off 7 year highs. If you look at the broader stage. Speaking of japan youre not seeing any quotes to the nikkei because its closed due to a Public Holiday so its taking out a big chunk of liquidity from these markets. Maybe thats why some of the moves to the down side are quite sharpish. I want to start with indonesia and the benchmark over there. It was down by as much as 4 earlier on the session. Still deeply negative but recooping some of the losses. That was the steepest loss in the market at 4 since about august 19th. Some are attributing this to the execution yesterday of the 8 convicted drug traffickers. There may be blow back on the trade front. I dont think thats the convincing reason. The main reason in my mind is that a lot of Foreign Investors are cashing out of the big cap stocks especially the financials because of earnings disappointments. All disappointment associated with the earnings numbers are coming out of indonesia. The other factor here you were talking about that firm aussie dollar so thats hurting some of the companies with international u. S. Exposure and that brought down the s p x 200 down by 1. 9 . Thats the biggest drop so far this year for the aussie market. At the end of the week well have china data. This is the official manufacturing pmi number for april. Thats going to be a key test for the china markets. Back to you now. All eyes on that pmi number. For now, thank you so much. Twitter shares plunging on tuesday as the companys First Quarter erngarnings leaked early and showed the weakest since the ipo. They tweeted the results after finding a link on twitters Investor Relations paid. Twitter fell by 18 in regular trade and another 1 in after hours. Twitter ceo will be on squawk alley today in a first on cnbc interview at 11 00 a. M. Eastern time. You wont want to miss it but is it time to dump twitter stock or is this a goodbying opportunity . We are active on social media, twitter and facebook. Email too at cnbc. Com. Our personal handles on the bottom of the screen. Yesterday you and i were discussing how weve seen this big run disappointing photo right there. Us during the break. We have a little fun during the breaks. Keep it light but on a serious note twitter shares up about 40 this year but clearly so much positivity and expectations that the company is inturn around mode. Last nights Earnings Report highlight the fact that theyre still in this turn around phase and theyre still trying to understand how to make advertising a big part of their core strategy. I think everybody is though. Its getting people to click on the ads. Theyre trying to figure out how do we monetize the revenue model. Twitter is always beat so far. They have always beat on earnings so maybe there was extra expectation on the twitter results and when they didnt hit that high expectation then people just sold off because a 20 drop im not sure its justified and also remembering half an hour before the market closed. If you have very limited time to figure out exactly what the number said and what was happening you might just hit the sell button and reevaluate things the next morning. It was a mistake the Earnings Release came in before the market closed. That brings me to the next point, why cant twitter handle their Investor Relations. Youd think they have it all covered. I read up on that. I was curious about the thing. Apparently this company is a web crawler. They have algorithms that troll the web to find Financial Data and actually the Nasdaq Stock Market they host twitters Investor Relations page through shareholder. Com and theyre taking the blame for the early release. No nothing was released but its down to alabama gortechnology that they found it. Anyway more on that story throughout the show. Tweet us your thoughts as well. Excuse me. Bit of a cough there. No problem. Coming up on the show trading ideas at the white house. President obama hosts japans Prime Minister abe as they get set to sign the ttp. And we hear from Front National leader marie le pen as she talks about everything from the euro zone to racism. Also from the war zone to the ward we look at amazing military technology thats transforming health care. We will rock you anthem call 1800royal caribbean or your travel agent today welcome back. Youre still watching Worldwide Exchange. Were still getting flashes through from the lufthasnsa taking place. This is after a very long dispute taking place over pay which has, as you know resulted in a lot of strikes over the last couple of months. The firm says theyre also backing their full year financial forecast. This just hitting our wires here as we speak. Now, frances Front National leader has struck a scathing tone over her nations membership of the euro zone block in a cnbc exclusive interview saying economic sovereignty is the key. Stefen has been speaking to Marine Le Pen. In the last four years since Marine Le Pen became the president she worked hard to make it more acceptable in france, she tried to change the extreme party into something and changed the economy program. The founder of the party was more liberal and she is closer actually to the extreme left ideas when it comes to economic policy. She would like to set up some protectionist members to tackle the negative impact of the globalization and she also believes that france should exit the euro zone. Does it really make sense . Actually last week the president said it looked like an old flyer of the communist party from the 70s. I caught up with her here in strasburg and asked her if it would be very realistic for france to exit the euro zone. Do you think its realistic for france to remain in the euro zone given the results of the past 15 years in term of unemployment poverty, Unfair International Competition and loss of competitiveness . Translator i think Financial Markets only look after their own interests. Im here to defend the interest of the people. A country that creates wealth and regains employment. Its the best guarentee for the market to be refunded for the loan france made. Do you think france would be able to borrow money from the bond market . Translator i think we have to go back to a vision of economic sovereignty and in the context of this vision of economic sovereignty the bank of france needs to be reestablished in its prerogative. Given its reluctance to negotiate with europe do you think it would be in the interest of its members for greece to exit the euro zone. Translator i think that greece by stating that it will not quit the euro is making promises that it cannot keep. For the simple reason that the euro and austerity are undeniably linked. Its either both or neither one or the other. But its clear today that the European Union is showing its face. The face of the euro dictatorship. It mocks the popular wish and seeks to impose austerity that the greek people no longer want. Confronted with the choice who will win, its up to the greek government to take up its responsibilities. So this economic approach is more similar to the one of the extreme left party in france. Now when it comes to International Policy she still has some very controversial position. For instance, she confirmed support to Vladimir Putin, the russian president. She said on several occasions that he should be a partner of europe and repeated to cnbc that she shares some common values with him and said clearly she disagrees with the sanctions from europe to russia. Back to you. Stefen thank you so much. Now, 8 days to go until the u. K. General election and the latest poll puts labour on 35 . One point ahead of the conservatives. Another major policy pledge expected from Prime Minister david cameron. Today he will promise a five year tax lock if reelected with no rise in income tax, vat or National Insurance until 2020. Quite the pledge from the conservative party to come today wilfred is staying fresh at the billingsgate fish market. I did a Little Research billingsgate is the u. K. s largest inland fish market and east. Quite far from london. Is that right . It is, indeed. We have been talking about what an exit would mean. They worked very early hours but were still here talking about that issue. What does a potential brexit mean for this election . Im joined by Andrew Hilton to explore this issue a little further. Now you carried out a survey of city professionals to see how they might vote in the instance of an eu referendum. What did you learn from that . Overwhelmingly theyll vote to stay in. We also learned that overwhelmingly they have no enthusiasm about doing it. As far as theyre concerned its the lesser of two evils. And overall, though despite what they might vote whats their enthusiasm for the European Union in general . How do they view the eu and the regulation that stems from it for their industry . They like one or two things. They like the idea of Capital Markets union because they feel the u. K. May get more than its fair share of the business if there is a Capital Markets union but other than that there isnt much enthusiasm at all. They think the European Union is a drag on their business. Brussels is negative on the u. K. They undermine the position and our representatives dont work hard enough to promote the city or Financial Services sector. So its deep deep, deep skepticism about europe but it is as far as they can see the lesser of two evils. So would a fair conclusion be that they would rather leave but theyre scared about the intermittent uncertainty that process might bring . Well i think theres a split. A very interesting split. The older people in our survey tended to be rather more skeptical about europe and more willing to consider brexit. The younger people were very good europeans. Overwhelmingly, over 80 said they would stay in the European Union even though they dont have much enthusiasm about it either. They do see the future of being europe and not a wider world. Thank you for joining us. Much appreciated it. Andrew hilton from csfi. 8 days to go. Still polling in double figures in this election and holding on to a portion of the vote for much longer than some people had expected. Wilfred, any chance of bringing back salmon for lunch. Sea bass maybe . I will see what i can find. They have sort of backpacked up but theres nice cuts of fish we can find for you. They supply more than half of londons fish i think or it comes through billingsgate. I think thats right. I think a huge portion and earlier this morning our first hits were about 5 00 a. M. U. K. Time. It was thriving. Much nicer and quiter now. Wilfred thank you very much. Well be back with you very up to scale. There you go. Well talk more about the elections. Sorry i couldnt help it. Now meanwhile sticking with the elections the u. K. Opposition leader has gone a bit showbiz. He sat down for an interview with russell brand. He expressed his anger on companies that dont pay their fair share in tax. The full video is set to be released today saying the interview was an attempt to engage with youth disengaged in politics. Coming up on Worldwide Exchange we get the details as the greek finance minister is attacked at an athens restaurant. That bizarre story is coming up next. Hi everybody, welcome back to Worldwide Exchange. Leaked and losing value. The twitter stock plunges after its disappointing First Quarter results are released early. Barclays takes an 800 Million Pound hit to cover potential fines. Dragging down quarterly profits. Europes auto makers continue to impress. Quarterly revenue is on the rise thanks to higher prices. And a cnbc exclusive, frances Front National leader Marine Le Pen speaks out on pushing her father aside, supporting Vladimir Putin and her distrust of Financial Markets. Hi everybody. Welcome back. Glad that youre with us this morning. Theres a rotlot going on today. A lot going on. The swedish central bank. European markets called slightly lower this morning and were now looking at a slightly mixed picture out there. You cant see that on this screen but our main European Markets trading higher at the moment. You some red going on in northern europe. You have portugal trading in negative territory. Some of the other smaller markets also trading slightly lower but thats what were looking at. We have the feds two day meeting coming up to an end later on today and a lot about that later on. We had the euro zone lending data out a bit earlier too and this afternoon the flash reading of the First Quarter gdp data. It will be very important. Expectations are for 1 or lower than that. Well see what the u. K. Is deliver. But to our top stories in terms of earnings twitter shares plunging as the companys First Quarter earnings leaked early and showed the weakest Revenue Growth since its ipo. Ada at a Gathering Firm tweeted the results after finding a link on twitters investors relation page. Nasdaq hosts that site. Twitter fell 18 in regular trading and another 1 in after hours trade. You can see the stock in frankfurt. It is down by 17. 4 . Twitter ceo will be on cnbc squawk alley today. Its a first on cnbc interview at 11 00 a. M. Eastern time. We want to hear what the ceo has to say about the future growth strategy. Now another big topic of discussion the fed is due to finish its two day meeting ahead of the policy statement tonight amid a slu of weak First Quarter data. Theyll be look out for any indication on the timing of a rate hike. Steve brings us the latest survey on the economy. The u. S. Economy has been buffeted by a bunch of trouble in the past couple of months and that created a weak First Quarter outlook here but the cnbc fed survey showed that respondents, including economists, analysts and Fund Managers think the economy is going to plow through these problems. 66 say what were going through is a temporary slow down. 32 say its a combination of temporary and permanent factors. Only 3 say its a sign of a for perm nanlt permanent weakening in the economy. Growth is pretty much the same as it was in the march survey. 2. 7 . A touch higher for this year and 2. 8 . Just a touch lower for next year. Part of that lower outlook is a result of how economists think that the stronger dollar is going to bring down economic growth. The probability of recession though came down a bit. Just 14. 7 in the next 12 months. Thats the recession probability. Lets look at the outlook for the market and Interest Rates. You can see here that for december 2015 a bit of a gain here. Not a lot but from the current level of 2109. The s p is seen closing the year 2156 and a little bit more if you look at 2016 up to 2259. All of this happens in an environment of low Interest Rates. You can see over the time period that weve had here go back to july 2014. We were looking for an end 2015 yield of 3. 4 but with each successive survey thats come down. Come down with inflation. Come down with the issues we have been talking about. Now its seen at 2. 3 up from the current level of 2 and 2. 9 in 2016. You can read all about this on cnbc. Com. Its a full story of the cnbc fed survey. Ahead of that important decision the dollar is continuing to lose value. In fact were looking at the euro at session highs at 110 against the u. S. Dollar. Lets bring in the head of macro strategy at aviva investors. Quite the interesting move in the currency market. Does it have to do with the data showing were seeing a modest improvement in loan growth in the month of march or does this have to do with disappointing data out of the u. S. . Short answer is both actually. The story the past couple of months as your story just eluded to has been the u. S. Data has been undershooting expectations and well get confirmation of that today with the First Quarter gdp. It continues to run softer than people were anticipating. Meanwhile, admittedly coming off a very low base the European Data is slowly starting to improve. Now thats not to say that were on some phenomenal recovery path for the euro zone but the big driving factor for the dollar was this expectation that they were going to be raising rates while the euro zone ecb was going to do qe and that was driving the currencies but obviously thats being questioned with this data run. Do you think its a chance that it might have to do with the bank in sweden leaving rates on a really surprise and we saw it soaring and pushing the dollar lower. Could that transfer on the euro dollar trade as well . Partly. Rather than cutting policy rates further which there has been some speculation about in the euro zone they have done more qe. Theyre buying an increased amount of bonds. If policy makers are embracing the unconventional then the ecb will continue to buy bonds but rather than necessarily cutting rates and further undermining the currency its argued we have a flaw where rates are right now and if there is anything it will be on the qetype side and there by not such a negative impact on the currency. Its going unconventional but the data run weve had. Does some of this have to do with what were expecting from janet yellen . Although many say expect no surprises. Theres no reason the fed will feel confident enough to see a rate rise in june or september. Or even the gdp data. Well i think theyre going to provide the perfect platform for them to just leave things as is and t yeah theyre worried that about sending any wrong message because they want to leave the door open. They have gone through a long process of getting us to the data dependent psychology. Its first live meeting but just because its live doesnt mean they have to do anything and the market is happily pricing the fed sometime between september and december and i think that thats the most likely timing even if we do get a descent rebound. After all the stimulus that the fed has put to work in the u. S. , u. S. Gdp supposed to come in at 1 isnt that disappointing . Especially here in europe where were expecting it to provide the rebound in growth and resurgence we need in the euro zone. Theyre two separate things. Filtering through to the real economy versus buying up bonds for example. Absolutely. We have a normal seasonal q1 weakness and were quite used to that. People are expecting something of a improvement Going Forward but it highlights the strength of the dollar and the impact thats had on the economy. Thats why the fed previously never mentioned the and have been talking about it. Charles hang on one second because we cant have you in the studio without talking about greece. Okay. Just the latest update on greece, greek officials now met with european creditors today in on going negotiations still continuing over the bailout program. In an exclusive interview with cnbc, the far right leader was asked about the possibility of a grexit grexit. Translator i think that greece by stating it will not quit the euro is making promises it cannot keep for the simple reason that the euro and austerity are undeniably linked. Its either both or neither one or the other yet it is clear today that the European Union is showing its face. The face of the euro dictatorship. It mocks the popular wish expressing the elections and seeks to impose a policy of austerity that the greek people no longer want. When confronted with the choice who will win, democracy or euro dictatorship its up to the greek government to take up its responsibilities. Talking about democracy or euro dictatorship. Are the two necessarily linked . Austerity and the euro go in the same basket . Do a being, yes . Thats part of the construct of the euro zone. You obeyed criteria and lets be honest they havent obeyed them except possibly for germany on any longterm basis but its more to do with the fact that opinion polls in greece are equally related to the euro. So yeah i think to play ball is something the greeks have to do but also the euro zone needs to think more about how does it stimulate growth . How does it help countries like greece while theyre undergoing this painful austerity stuff and i think thats where things like that plan need to start to be emphasized more and enacted so that we start getting infrastructure spend and support. There was a lot of intrigue and excitement when he was named the finance minister of greece. Hes provocative, this rock star style but now that intrigue seems to have termed to discontent with his inaccurate statements to the press. Not allowing them to come in and inspect greeces financial books. Do you think he is a drag on the administration . I wouldnt go so far as to say that. I think what i would say is politicians empowering greece are faced with almost an unsolvable conundrum. They have a population that doesnt want austerity; but clearly his approach isnt providing the steps and tools needed to reach a deal. Thats the european way is very wasnt quite prepared for that. But they need to focus on how do they get a compromise that the europeans will accept. Theres this given and theres increased talk about a thank you so much. More trouble actually. The greek finance minister has released a statement saying that varoufakis was attacked at an athens restaurant last night. A group of selfproclaimed anarchists threw broken glass at varoufakis. His wife shielded him from the as its getting violent. A solution has to be found and everybody is getting ant sysy. They owe the imf money and the number that were talking about that needs to be released this is from the last bailout. Yeah. Were not even looking at the future you money they need. Thats right. Thats why almost a fresh approach is needed. The europeans need to bring something to the table as well as the greek side. They need to compromise. They need to keep the europeans happy with some form of austerity and some form of monitoring if you like but equally i think the european side needs to start focussing more on how they support the country such as greece you know, maybe some of the other countries as well. Charles, in the meantime when looking on whats going on in the oil markets and saudi in particular saudi arabias new king appointed the countrys interior minister as his new heir. In one of a number of leadership changes closely watched in america and across the middle east were looking at a number of key moves including the promotion of the current u. S. Ambassador to the role of foreign minister. The ceo has been appointed as Health Minister but will remain at the oil giant as chairman. Hes also replacing alnaimi in that role as he remains oil minister. The price of oil, 64. 31 at the moment. Off by shy of 1 . We could be look at changes to inventory basically and the timing of the fed rate hike and geo political tensions thrown into the mix that we saw yesterday in particular. Price of oil commodities. Ill separate oil out from commodities. Theres stuff going on thats quite different. I think that with respect to the oil price, one, you are seeing some destruction of productive capacity in the u. S. The high cost producers are you starting to look under pressure. But obviously theres factors like iran and whether sanctions allow them to start exporting somewhere down the line in agreement with the u. S. There isnt a supply concern with oil. Theres plenty. The only real swing factor i can see at this point over the next six months is the demand side and the question then is do we get a strong driving season in the u. S. . Are we looking at an improvement in u. S. Growth over the next three to six months and certainly over the next three months we probably will. Well probably see better data than in q1 and on that basis you could see the demand side pick up a bit but as i say theres plenty sitting on the offer so to speak so i dont think oil prices are going anywhere. Although speaking to an oil expert recently he was saying the amount of oil we know in the ground at current levels equates to 53 years but depends on how you take it out and use it and things like that but its interesting. Some people thought we reached peak oil in the 1980s but they found some more. Iran when that oil potentially comes back online. And iraq as well. On going discussion on oil. Charlie, thank you so much. Thank you. Now moving on Sweden Central Bank kept its repo rate unchanged at negative. 25 . Its lowered the path significantly though. Slow increases are not expected to begin until the second half of 2016. In a policy statement the bank said tolerance for low inflation is very limited and that the central bank will purchase an additional 40 to 50 billion Swedish Krona worth of government bonds. Thomas joins us. The global head of ficc research. In plain english they surprised the markets by leaving rates unchanged but theyre increasing the amount of stimulus that were seeing. What do you make of this move . No its an interesting move. It was a little bit less than the market expected in terms of rates but obviously more qe. I think theyre still extremely concerned about the currency. They do mention that the economy and inflation is picking up but they dont want to lose the inflation battle so the currency war here is definitely completely on still an they also said theyre willing to do more if you see the currency appreciating again. And the Swedish Krona soared after this move. How much higher would you anticipate it could go . I think not that much higher. I think in euro swedish terms or euro stock terms i think its in this range between 910 and 950. If we get close to 920 youll see the market get nervous. At the moment theyre successful at keeping it that range. The most natural conclusion is the volatility in swedish so it can come down again. Can others be used to mitigate the down side risk from easy policy pursued by the ecb . What they said clearly is the preferred mission now is qe and that is i think where we could see potentially more steps. They are still saying that they would refrain from currency intervention intervention. Qe is the name of the game and that theyll continue to do. If you see more pressure on the currency theyll do more. What are the implications of rates being in negative territory for a prolonged period of time. Concerns is the Housing Market. The Housing Market is on fire in sweden sweden. Its been something theyre very concerned about. They mention it again in the Statement Today. These are clearly some of the obvious concerns that you get these in housing prices but i think the division of labor at the moment is that has to be solved. Its a political decision. Its not risk banks mandate to solve that con serns about housing prices. Thomas if you were to speak to the Central Bank Governor of sweden what would you ask him . Id be interested to see how he was concerned about that issue. I would definitely also ask him about how much are they what alternative measures do they think about in terms of mitigating that in term of appreciation pressure. It would be the same questions all of us ask but as it is now theyre very targeted on the qe program and it impacting the currency indirectly. Thank you very much. Krona. Krona. Well thats danish. Sweden its krona. I learn so much from you lou. I learn so much from you seema. Thank you. I do. All right. From the war zone to the ward we look at some amazing military technology, a combination of robotics transforming health care. You to stick around. Were back in two minutes. Do you suffer from. The debilitating condition of jetlag . Not in this room you dont. You got it booking right. Booking. Com booking. Yeah. Now from the battlefield to the world of Medicine Technology development to help soldiers carry heavy loads is finding a new use in helping patients walk. California based exo bionics brought them a couple of years ago and now they launched the latest version, an exoskeleton for rehab. Joining us is the ceo and cofounder a military veteran. Thank you for joining us all today. Nathan a pleasure to have you on. Help us understand the use of robotics in the medical field. Particularly interesting especially for patients battling a debilitating disease. How are you helping these individuals with their recovery. So its a wearable robot that surrounds the patient and it can help anyone walk. Someone who is completely paralyzed from a final cord injury or partially paralyzed like from a stroke. Its used in Rehab Centers throughout europe to train people usually try to retrain them to walk after they had Something Like a stroke where theyre trying to do a little walking every day and get back to where they know how to walk and can walk in their daily life. Whats the demand been like . Our customers are Rehabilitation Centers. Were in top Rehabilitation Centers and they use it there in in patient rehab but its also available to people post stroke. Maybe they had a stroke a long time ago and they can come back in. We just want to see how the Technology Works as well. So we have julian and dale with us as well. How is it wearing it . Comfortable. So its not heavy. No its heavy device but i dont feel the weight. All the weight goes to the feet. How does the technology work. Theres various sensors throughout the suits. It has four electric motors at the hips and the knees and a computer at the back. I have full control over it. So it sees what he is doing and knows whether hes put himself centered over his foot and in dales case he has a little bit of ability left in his legs and he puts it in a thing called prostep plus which looks for him to try to move his leg and helps him to move it. It doesnt completely move it for him. That way hes always training. So youre able to walk with it essentially but you still need skruchs. I do. How much would Something Like this cost . How much would it cost to roll it out on a more regular level. So rasp is around 100,000 to Rehabilitation Centers. Dale is part of what we hope is a growing trend. Where dale and the legal case surrounding his injury they got dale essentially an exo for life. And that can be provided at much lower cost. Theres also a roll out of a bionic suit. Tell us about that nathan. So were working with the special Operations Command in the u. S. In a project that thats effort to get as close as possible to the Iron Man Suit in a period of about four years. Are hospitals readily carrying your technology right now . These robotics . Yes. At the end of last year we had 110 units out in the field treating patients and a little more than half of those are in europe. And people might be wondering well how is it like to walk with it i mean yeah. Thats amazing. Were talking about the sensors. That will make it walk. Its extraordinary technology. Fascinating. When was this first invented . How long has it been in existence now . Well we have been working on exoskeletons since the early 2000s. We were working as part of defense funded research in the United States at u. C. Berkeley and weve been in the medical market since 2012. We have to go. Thank you very much. Ceo and cofounder. Amazing technology. Well see you back just after the break. The dollar takes a tumble as investors weighed on First Quarter gdp data and fed announcement. Ready for ten . A big day for microsoft as it prepares to take the wraps off the latest version of windows. Barclays takes a hit to cover fines over manipulation dragging down quarterly profits. Seems Like Central Bank holding the attention of investors but still negative rates that is a Concept Investors have been trying to get used to here in 2015. You have the u. S. And fed policy statement. No surprises but their reaction to that u. S. Gdp number will be interesting. 1 , nothing to get excited about. No nothing to get excited about but maybe something to get excited about because it might mean bad news is good news for the markets meaning that the fed will keep rates on hold for longer or that might be the thinking. We could see a pop in markets maybe if the print comes in weaker than anticipated and with regards to the negative Interest Rates does that mean continuing to buy into equity markets because with negative rates thats usually a positive for equity markets. Yesterday we saw the u. S. Ten year rally. It will be interesting to see what happens there if low rates in europe sends more investors into the u. S. So perhaps greek debt which is 23 on the three year. What did you think of the technology we just saw . Amazing, right . A little story here when i was in college for the summer i worked for a heart surgeon where he specialized in Robotic Technology where the heart surgeon was in one room and he was in a different room conducting the surgery via it looked like a video game. From a separate room. It was Robotic Technology. Wow. Thats impressive. That i havent seen or heard of. Yeah. I wondered whether they continued with that or whether they decided it was a better idea of to the have the surgeon in the room. It depends on every scenario but its less invasive. You dont have to break owe open the ribs. You just insert two little areas and you can get the surgery done from inside apparently so the Recovery Process is much shorter. But when you look at technology and how it can help people and how it can make the quality of life higher for people that have suffered injuries as for example was the case here. Its just extraordinary and i wonder how the world is going to look in 50 years from now and where that technology is going to take us. The Cross Section of technology and medicine will be very fascinating. Especially with the use of wearables. I used to look at the correlation between pupil size and alzheimers helping in a lab as well. I had no idea. When was this . A couple of years ago. I enjoyed my time in the lab, did you . Loved it. It helps you in any field that youre in. I wonder where that research is now. We need to go back and research that. Lets get to futures and get everyone a look of what were expecting. The nasdaq ending lower. The dow indicating a higher open ahead of the u. S. Gdp print and fed policy same due later this afternoon in the u. S. Dow up 22 points. Nasdaq up about 2 and s p 500 indicating a higher open by around 3 points. Lets check in on European Markets. Interestingly enough we trading in positive territory. Yesterday was a down day for European Markets. Particularly the ftse 100. It suffered the biggest one day fall in a month after witnessing a sharp slow down in u. K. Economic growth in the start of the year. A lot having to do with the slow down in the construction area as well as the services sector. Of course any Economic Data this week for the u. K. Very important ahead of the general election on may 7th where polls are looking very close but right now green across the screen. Ftse 100 up about 9 months. The german index with a gain of about 7 points but the german dax is tracking for its first negative month in four months. Remember so far this year its been the german markets outperforming its european peers given the strength in its Manufacturing Sector and auto sector as well. Investors taking this as an opportunity to take profits off the table. Right now dax up by around 7 points. Lou, arguably the bigger moves are being seen in the bond market. I know. Were seeing yields pushing higher again. A bit of selling taking place across the ten year bonds on screen for you. The italian, u. K. German bonds all being sold off just a tad. A bit of repositioning ahead of the feds rate position and head of gdp figure as we were talking about so could be trades today versus bigger picture, longer term moves. When it comes to the fx markets were seeing a pretty substantial move in the euro dollar of late. A lot of fx analysts have been saying this is a pretty substantial move or level. You have the euro dollar higher by. 2 and again that 110 level having been breached. The dollar against the japanese yen will be worth watching. We have been in a rangebound trade for quite sometime. Bank of japan through with the decision thursday tomorrow and the pound against the dollar a little bit higher. Data out earlier today. Lending data coming in line with expectations. Now we had earnings out of samsung electronics. While the First Quarter looked positive the maker of the galaxy s6 smartphone is worried about the second half of the year. Straight out to sri. Hi again. Hello. I think theyre rightly worried because of all the currency head winds that we have been seeing and whether thats going to persist in the second half but on the whole its a good set of numbers because theyre diversifying beyond smartphones. The s6 does seem to be helping them though and this seems to be behind them. Elsewhere, the Broader Market has retreated from 7 year highs if you look at the broader stage the market is closed for a Public Holiday. Thats taking out a chunk of liquidity. May explain why the markets reacted to the downside. Off by almost 2 . Thats the worst loss so far this year for the market. Theres more concern about the firmer aussie dollar and what that could do for the earnings. A lot of these companies have footprints in the us. Markets. The market was down by as much as 4 . Still deeply negative territory at the close. Now some are ascribing the weakness to the decision yesterday to execute 8 convicted drug traffickers. Come believe its going to go beyond diplomatic backlash. We could see backlash on trade and sanctions. I think its a bit of a stretch an i think the main reason was disappointment associated with the earnings numbers which have under underwhelemed dragging down this index. Weve seen the sharpest loss at 4 since about august 19th. Its going to be porn data still with the end of the weak we got chinese pmi this is the official manufacturing number for the month of april so if it is down beat then that could build the case for even further easing to consolidate growth at 7 in mainland china. Thats where we stand. Back to you ladies in london. Thank you so much. Now to our top story this hour twitter shares plunging on tuesday as the companys First Quarter earnings leaked early and show the weakest Revenue Growth since its ipo. A data Gathering Firm tweeted the results after finding a link on twitters Investor Relations page. Nasdaq took the blame as it hosts the site. Twitter fell 18 and another 1 in after hours trade. Right now youre looking at a chart of how twitter is trading in frankfurt down 7. 2 . The twitter ceo will be on squawk alley today. Its a first on cnbc interview at 11 00 a. M. Eastern time. Get involved. We want your thoughts on whether the sell off we saw in twitter shares yesterday if that presents a good buying opportunity or were they reason to stay out of the stock. Many people tweeting through already. And just looking at one of the tweets. Richard talking about he says in one word disappointing. The twitter results. If there is some contagion we might be able to pick up cheaper facebook shares. If he had to choose between facebook and twitter he still puts his money in facebook. Interesting. The social media battle continues. Go pros First Quarter profits surge by 52 beating forecast on continued Strong Demand for its wearable cameras including its flagship hero four device. The companys Second Quarter outlook is also topping expectations. Go pro going to buy a company that allows them to put content or mobile devices. Rising 12 in after hours trade. German trade up by almost 13 . When i was ice climbing in iceland, this is a true story, everyone on our little hiking team had one of those on their helmets. I was the only one that had to take out their phone to take a picture. To take pictures. You attach the camera to your helmet so it records what youre seeing. But you could just be seeing the wall in front of you. You can show the height. Its pretty amazing. But do you ever watch it . Do you ever watch it back . Because i had that from a helicopter once. It was really daredevil stuff. People do want to see it. Those that are passionate they juan to be able to capture that content and share it with their firemens and say look how cool i am when i got back. I was like lou, guess what i did. I look forward to watching it. All 18 hours of the wall. Another story we have been watching is Microsoft Holding its Developers Conference today. The ceo is giving the keynote address at 11 30 a. M. Eastern. Hes expected to take the period whereas off a demo version of the new windows 10 software after that which is expected to be released this summer. Now coming up all eyes on the fed. It concludes the twoday meeting later today. Investors are eyeing a time frame for when rates will be moving. See you in a second. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Rebuilding baltimore. Kmunlts begin the clean up following violence in the city. The fed is due to finish its twoday meeting ahead of the policy meeting tonight amid a slue of data. Fed watchers will be looking out for the timing of a rate rise. Ahead of that decision the dollar is continuing to lose value or weakening against a basket of currencies. The euro is now at 110. Lets now cross over to the managing director at b. K. Asset management. Boris, were seeing a significant move in the currency market. So early in the day. What does this tell us about how investors are positioning themselves ahead of that u. S. Gdp report . Weve been seeing this move against the dollar for the last couple of days and i think its been a function of the fact that the market is becoming incredibly frustrated with the whole notion that were going to have a rate hike in june. Thats already been pushed back and now the market is look toward september as a possible rate hike number. I think earlier in the year when everybody was pro dollar and plowed into the dollar trade it was almost a guarenteed fact that the fed was going to begin to start tightening policy sometime in the summertime. Now with the economy starting to slow down thats been pushed back and youre basically seeing an antidollar trade. Its not been so much a question of why the euro is so strong but why the dollar is so weak. How long does this antidollar trade continue . Especially if the fed does deliver a dovish statement . They indicate that yes because of the disappointing data theyre going to keep rates steady for september or december. Thats going to be the critical question today. The market expects the fed to say theyre going to stay stationary. The more important question from is whether theyre going to say theyre going to look through the First Quarter or whether theyre really taking the weakness in the First Quarter seriously and now reconsidering their whole postjurors Going Forward. Thats going to determine whether we have a move in the dollar at the end of the day on a pro basis or antibasis in many ways. Hi, if its a weaker print in this First Quarter gdp data is it a given that well see a boost on equities . Well thats been the story that the longer we delay theyre taking it positively. Its whether theres any growth there at all. Were all except for the weather related issues and also other issues in q1 but whats happening now is we need to see the rebound and ramp up in consumer demand and business demand in order for the market to gain confidence that were back on a growth trajectory and so far thats not been clear. We need to see the fresh set of data coming up in the next month or so in order for the market rally to continue. In terms of trades at the moment what do you think is interesting . Its hard to call trades at this moment. I still think the euro at 110 here probably reaching the upper end of its range. Theres really nothing great in the euro zone thats happening. Its just been a pure antidollar trade and probably around these levels its going to present a very Good Opportunity to relay those dollar longs to lay down those euro shorts again for a move back down toward 105 as the year progresses. Boris, thank you very much for being with us. Managing director at b. K. Asset management getting up early to talk to us. Yes. Now frances Front National leader Marine Le Pen has favored protectionist measures in the economy. She rejected the idea of total free trade saying it resulted in disaster. Stefen has been talking to her. So free trade is a bad thing, stefen . Well thats her view. She believes the country needs more measures to tackle globalization. She says it also means Foreign Investment in france. Also means thousands of jobs created by companies in france. She believes that sovereignty is the key and we should protect more the french economy. This is what she told us in this exclusive interview here. Is it incredible that 95 of countries apply protectionism and it is they who are wrong and we who are right when clearly total free trade have resulted in dramatic results at the economic level. We have no more factories. Our Unemployment Rate has never been so high in decades. Our youth is migrating because they dont see the possibility of getting work. Entire sectors of the economy have fallen. The garment and shoe industry domestic goods, the watch industry. We have seen what free trade results in. Disaster. Of course protectionism is necessary. Its what everyone is doing. That would not improve the image of france in the Financial Community which believes that the country lives in its own economic bubble and thats actually quite far from the position of the french president although hes not the most liberal person in the world. Last week he were talking about the extreme right party that it was similar to a flyer of the communist party from the 70s. So on that line the extreme left in france and the extreme right represented by Marine Le Pen are of the same ideas. We need more protectionist measures. Thats one of the key points. Stefen thank you very much. Still to come shinzo abe the first japanese Prime Minister to address congress today. More on that coming up. Photos are great. For capturing your world. And now. They can transform it with the new angies list app you can get projects done in a snap. Take a photo of your project. Or just tell us what you need done. And angies list will find a toprated provider to do the job. The angies list app is the simple, new way to get work done on your schedule. The app makes it easy, the power of angies list makes it work. Call, click or download the app for free today. Lets take a look at u. S. Futures. Right now investors expecting a positive open for the dow and s p 500. The dow indicating a higher open by 14 points. The nasdaq was under some pressure yesterday given the move we saw in apple. Interestingly enough despite the blowout core we got from the tech heavy company it did see a sell off in its shares. Nasdaq down there it goes. Its flat on the day. Forecasts call for growth of 1 . Down from 2. 2 in the fourth quarter. Thats due to bad weather which hurt consuming spending. The impact of the west coast port strike and stronger dollar. At 10 00 a. M. We get the march pending home sales which are expected to rise but at a lower pace than in february. We have fiat mastercard time warner reporting earnings. After the close well hear from the Chinese Internet Company as well as yelp. Now the first night of a curfew in baltimore. Police in riot gear and National Guard troops are patrolling the city. Some protestors were dispersed with pepper spray and rubber bullets a day after the city was shaken by the worst rioting in the u. S. In years. Lets get out to tracy potsie potts with more on the story. Yeah the curfew lifted 25 minutes ago and there was a big difference last night compared to the night before. About a dozen people were arrested last night. Less than a dozen compared to 200 the night before. They described last night as relative calm. There were incidences where they deployed smoke can nisisters but after initial resistance they complied. Its what they described as a calm night. We did see the night before a lot more unrest. Theres going to be more protests. Were hearing this morning theres another big one planned for the weekend. But they got the National Guard out here. Theres one reason why were at city hall and its one reason why the downtown area is very quite. Other areas like west baltimore with so much unrest on monday. We havent heard of any major incidents overnight with the curfew lifting. Looking forward today theyre reopening the schools, the city schools here in baltimore. They were closed. The Facebook Team the Baltimore Orioles had problems playing the first two game of this week. They to postpone those. They are back today although in an empty stadium. It was their choice. Were expecting to get an update to see if this comes in around noon or midday today. Very spirited people still want answers about what happened to freddie gray. How he got what ended up being this fatal severe spine injury. Why he was arrested and whether there was any police misconduct. Three investigations are going on right now. A lot of questions and developing story to say the least. Tracie potts thank you for that report. Now japans Prime Minister shinzo abe and u. S. President Barrack Obama expressed their confidence that an agreement over the transpacific trade pact can be reached. Abe will become the first japanese Prime Minister to address congress. You have one saying completely free trade is a bad thing and then the trade pact talks continuing. It will be interesting to see how abe addresses the u. S. Congress. Well bring you that as it comes. In the meantime the sec is set to propose new rules on executive pay. The part of dodd frank financial reform law would force companies to tell shareholders how they pack their financial results. Theyll have to include a new table in their annual reports disclosing the actual pay of top executives. Still to come on the show getting its teeth into sluggish sales. Mondeleze updates the markets and were looking at its growth strategy. A mixed session. We higher across the board at this hour in premarket. Stay with us. Were back in two minutes. 30 minutes to go until we hit 6 00 a. M. Eastern. Welcome everyone. If youre just tuning in youre watching Worldwide Exchange. Hi everybody. Here are your headlines from around the world. Got to start with twitter, earnings leak. Twitter stock plunges after disappointing Quarterly Results are accidentally released early by the nasdaq. The dollar takes a tumble as investors weighed on First Quarter gdp data and the all important fed announcement. Ready for ten. A big day for microsoft as it prepares to take the wraps off the latest version of windows. And barclays takes a 1. 2 billion hit to cover fines over manipulation dragging down its quarterly profits. There was a lot of stock specific stories that caught the attention of investors yesterday. Merck gaining 5 after reporting earns. Twitter with the second worst day ever after revenue slowed so Earnings Report dispiengt the street. We had the likes of microsoft rallying. Valuations still a big part of the story. The s p 500 stocks trading at their highest priced to earnings multiple in years. The s p 500 up about 2 points. The dow jones indicating a higher move by 17 points. We have been trading in record high territory for quite sometime specifically looking at the nasdaq which broke through its record high last week and continues to trade above 5,080. Well if youre just tuning us this is what our European Equity markets look like now. Yesterday on the close we saw pretty hefty selling in yesterdays Late Afternoon session. We saw some of the bigger markets flirting 2 lower. At the moment now were still lower for most of our European Markets. The ftse hanging on to flat line. 7032 on the ftse trade. You have the cac 40 also very flat. 5169. So we had a whole raft of earnings out in europe. Barclays shares they have seen some pressure after its pretax profit dropped by 26 year on year. This after this london listed bank set aside an extra 1. 2 billion in provisions for alleged currency market manipulation. Now some are look at barclays a little bit lower in todays trade. When looking at the auto zone they have been on the move after reporting earnings. French car makers First Quarter revenues up by 5 due to higher pricing an improving demand in china. In germany, you have vw higher by 1. 5 reporting First Quarter operating profits of just over 3 billion euros. Thats a jump of 17 . Another company in focus lou is is kraft foods. First quarter profit fell but still beat forecasts. However keep in mind revenue missed estimates as the Company Continues to suffer from a sluggish demand for its packaged foods such as yellow velveeta and oscar myer. Right now youre looking at the stock down. 9 in germany. Joining us to discuss kraft is the senior Equity Analyst for consumer packaged goods at morning star. When look at craft is this simply a victim of the stronger dollar . Theres a few factors at play. The company has raised prices to offset some of the pressures. So you subsequently saw volume weakness in certain categories including u. S. Cheese which reflected the pressures. The u. S. Desserts category has also been highly competitive and challenging and volumes were lackluster in that segment as well. Yeah also found that net revenue for cheese products increased 1. 3 due partly to a reinvention of the philadelphia soft cream cheese brand. I found that interesting when i was looking at the financial statement. Lets talk about the merger thats been the big story. Do you think this partly backed by warren buffet added a certain level of confidence among shareholders . Yeah i they theres confidence in the fact that this is going to drive further change and improve ms in the business. Both in the revenue line as well as on the profit line. I think there will be tuns to further focus the firms brand investments and stimulate top line growth but i also think the focus on improving the firms cost structure, taking excess cost out of the business. Something that 3g has been doing with heinz over the last couple of years will continue to proceed when the two businesses merge later this year. What do you think good morning what do you think is going to happen with regards to the new kraft leadership and precisely on the issue of taking the costs out of the business. Obviously, you know the areas in which the firm is going to derive those cost savings havent been discussed at great length up to this point. Obviously there are opportunities to improve the supply chain, the purchasing power. Leveraging the scale these two businesses afford are opportunities to realize some of those cost savings but getting further details in terms of managements expectations in terms of the specific areas where those cost savings will be realized are likely to be discussed down the road. Maybe you can talk a bit about the different scene in some of the marks. One thing is the north American Market in particular but then also you have brazil china, russia one of the other markets too. How are those markets fairing . Obviously krafts business up to this point is largely focused on the north american segment and thats one of the opportunities Going Forward is extending over heinzs international platform. They generate 60 of their sales in International Markets including 25 in faster growing, emerging and developing markets. In terms of the emerging market picture weve been hearing its kind of a mixed bag. Some product categories tend to be performing well. Overall, the space in terms of emerging markets have slowed but continue to out perform more mature developed markets. Lets talk about the stock. Its gained about 51 over the past 12 months trading at 86 or 87 a share. How much higher can it go . From our perspective we still think that theres additional upside after forecasting and accounting for some of the cost savings and revenue cinergies so we see the shares as modestly undervalued at this level. Thank you for joining us today. Senior Equity Analyst at morning star. Lets look at the other top stories at this hour. Microsoft is heldingolding its Developers Conference today. He is expected to take the wraps off the demo version of the new window 10 software. Walmart is expanding in china. Planning to open 130 new stores. It will spend 60 million to remodel its existing stores this year. Theyll also be launching a mobile app to connect stores with its chinese ecommerce arm to allow customers to order items online and pick it up in stores. Walmart in german trade lower. Hulu struck a deal for the streaming video rights for the 90s nbc hitcom seinfeld. Its under 1 million per episode or 180 million in total. The wind fall will be split by sony tv time Warner Castle rock studio and seinfeld cocreators Jerry Seinfeld and larry david. Netflix was interested but dropped its pursuit to buy the streaming rights to friends for about 500,000 an episode. I hear that seinfeld is quite popular here in london. I love seinfeld. I hear you dance like elaine. What . Just kidding. How many times have you fun yourself in a seinfeld moment . So many times. Thats the beauty of seinfeld right . They take very mundane and ordinary experiences and make them funny. A typical one is i arrive at the bus stop first. We take buses all the time in london. Theres nobody else arn me its a horrible day and raining and a ton of people. That he arrive over the next five minutes. I let all the ladies on people with children and then the bus drives off because its too full. Oh man, got to get in front. Youre too nice. No no. Whats a seinfeld moment for you . Im telling you. It is the dances. I can relate to those. Were going to rewatch them. Exactly. Twitter shares coming up. After the companys Earnings Reports leaks early showing disappointing Revenue Growth. Full details coming up next. Hello everybody. Welcome back to Worldwide Exchange. It was a challenging day to be a twitter shareholder on tuesday. The companys market value getting a 7 billion haircut after First Quarter results were leaked early. Kate rogers brings us the details from cnbcs headquater. A lot of the mayhem happening the last half hour of trade. Thats right. It was a tough afternoon for twitter. Stock fell more than 20 at one point on tuesday after nasdaq accidentally published the First Quarter results early showing it missed revenue forecasts. The release had been posted on twitters Investor Relations website. A data Gathering Firm found the leak and began tweeting out the news after 3 00 p. M. Eastern time an hour before the official release. Twitter was informed about the leak by selerity and asked the New York Stock Exchange to halt trading. They were down 1 before the leak and fell 6 on the news before the stock was halted. When shares resumed t before closing down 18 and then fell further in after hours. This is the second high profile earnings leak for nasdaq and shareholder. Com in the past year. Last october jp morgans Third Quarter numbers were released ahead of schedule. Nasdaq is investigating the cause and leak didnt impact other clients. As for twitter revenue rose 74 but that missed analyst forecasts and the companies own projections. Also disappointing guidance for the Second Quarter and full year. They blame the shortfall on direct response ads that havent taken off as expected. These help marketers communicate with customers in real time. Twitter is announcing a partnership with the doubleclick platform which could help to boost sales. Coming up later today twitter ceo will be on squawk alley in a first on cnbc interview at 11 00 a. M. Eastern time. Back to you. Thank you very much kate. Well talk soon again. Thank you. Of course we have been asking important questions. We have. Is it time to dump twitter stock or is this actually a goodbying opportunity . You can join in on the conversation on Worldwide Exchange. Email us at worldwide cnbc. Com. You can tweet us. Our personal handles on the bottom of the screen. We have been getting good tweets today. Im looking at an email. Robbie writes in and says expectations on twitter. Its important to sell the importance of character demand. Tough analytic trolling for trending economic and stock info. Create a Marketing Campaign for success and fan membership for the masses. So general comment about the use of twitter. It is nice that you can put a stock symbol and then see what people are saying tweeting about related to that one stock. But like for example yesterday when the initial reports regarding iran and the potential of them having seized or redirected a vessel surfaced went on twitter and look at what everybody is saying. Youre waiting for confirmation but you put together a whole bunch of feeds right. Thats what they want it to be. A communication platform where thought leaders can come together and users in general can understand and maybe talk about a topic to further extent through social media. Analysts are saying that the company is still experimenting with part of montieization across many different fronts. Thats one of the listens we saw revenues slow. But it will be interesting to see what he has to say about the core growth strategy. The acquisitions it made over the past couple of months and what else we can expect from the company. Theres also a lot of untruths on twitter too. You can find anything on the internet. You have to filter through and make sure that youre look agent the truth. We all want the truth. Do you ever find the truth . Im still in search. Ive stopped searching. I just flow. All right. Well continue discussion in the break. In the meantime you have to keep an eye on gopro as well. Beating estimates on continued Strong Demand for those wearable cameras including its flagship hero 4 device. The companys Second Quarter outlook is also topping expectations. Also announcing a deal to buy color. A company that lets users combine photos or videos produce panaramic content. That was one of fwigbig trends. We have to watch that space very closely. Thats virtual reality, no . In a way. In a way. Brief look at our headlines this morning if youre just joining us. All eyes on the fed ahead of the policy statement as investors gauge the timing of a rate hike. A big day for microsoft as well. Takes the wraps off. Baltimore begins clean up following violence seen in the city. 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. Some protestors were dispersed with pepper spray and rubber bullets a day after the worst rioting scene in the u. S. In years. The Baltimore Orioles postponed their games for a second day on tuesday. Todays game has been moved to this afternoon but it will be closed to the public while the team series is being relocated. Futures right now on this wednesday morning indicating lets bring the board up. Last time we were looking at a higher open. Right now dow jones up 14 points. S p 500 up two but the nasdaq seeing a gain fractionally at this hour. Lets get a run down of what to watch this trading day. First quarter estimate out at 8 30 a. M. Eastern. Forecast calls for growth of 1 down from 2. 2 in the fourth quarter. Thats due to bad weather which hurt consuming spending. The impact of the west coast port strike and yes the stronger dollar. At 10 00 a. M. We get a look at the housing sector. March pending home sales which are expected to rise but at a lower pace than in february. Fiat chrysler mastercard mondelez report before the bell. The fed is due to finish its twoday meeting amid a slew of First Quarter data. Theyll be looking out for indications on when the first rate hike will come. We want to point your attention to whats happening in the currency market. The dollar is continuing to lose value. Were looking at the euro very close to session highs around 109. It was trading at 110 half an hour ago. Lets get more on the story with tony he request ityequity strategist. Before we talk about the fed we have to understand whats happening in the currency market. The dollar weakening against a basket of currencies. Does that tell us investors are fearful of what the gdp report will tell us . I think so. Clearly theres a lot of weak Economic Data. The downward revision and all the Capital Spending numbers. As a matter of fact if you look at the citigroup economic surprise index its gone straight down over the course of the last few months and again its because of the port strikes. Its because of the weather. Were going to have to figure this out over the next month and whether you see a rebound. So the currency market is reflecting a possibility that maybe it wasnt just bad weather. Maybe there is something more sustainable and i dont think that. Our view isnt that thats the case. That we will see a pretty strong rebound but were out ahead of weak data and easy fed its hard to make the case that you have to get the dollar. Lets talk about the fed. The characterization of labor market developments will be interesting given the bout of disappointing data. There shouldnt be anything different from the prior statement. What i find amazing is the fed has yet to raise rates. Youre at a zero Interest Rate policy and if you look at Consumer Confidence which came out yesterday or the Unemployment Rate youre already well past where the fed would have raised rates in prior cycles. So to exapproximate ekt the fed to expect to fed to be patient theyre far more patient than they have been in the past. Theyre soft and weve had durable goods and manufacturing data and a lot of weakness in the u. S. Data. Wouldnt they rather air on the side of caution versus hiking too early which was the huge criticism toward the ecb when they hiked a couple of years ago if you go back and look at february, remember the data in february was extraordinarily strong. The Employment Data was revised upward. You had 300,000 jobs a month and to say that was sustainable is like saying the weakness is sustainable. Significant drop in Energy Prices which is a huge factor to both businesses and consumer and the offset again in the weather and the reverse of the port strike should help benefit growth. Youre very aggressive though in terms of equity buying reading through your research. Truly were looking for a 5 to 10 correction. We have been looking for a consolidation correction all year so far. It comes from our view that the fed should have already raised rates and are likely to raise rates. Now Market Expectations are for september or even december and we do think that july or september is probably more likely. We had been in the june camp and obviously that was wrong so we think market is going to correct but ultimately its very hard to make the case that theres any other asset class that should do well moving forward. And the direction of earnings should be higher. So far s p 500 Companies Announced 265 billion in buy back plans tony. Up 59 year over year. Buy backs on the rise. Is that traditionally a sell signal for the market . No i dont think so because ultimately what creates the buy backs is the openness of corporate debt. Youre having a near record level of corporate debt that is creating increased dividend payments. Increased buy backs and also increased Capital Spending so as long as credit is open thats why im so bullish on the market. As long as credit is open theres going to be money to fund procompany activity whether its via stock or Capital Spending and growth. Some say thats an indication that corporations are lazy with how theyre spending their money. Corporations should be spending or allocating more capital toward growth and innovation. Like many things you know the show myth busters on the discovery channel, you could do one on this. If you look back a couple of years you also had a record buy back. It depends on how much Corporate Credit is being issued and what companies are doing with the money they take in from that. Again we think until you shutdown the credit market which only comes from an inversion of the yield curve its not whether you should be bullish but when you should be more bullish. Pleasure to have you on. Love your insight as always. Fed Statement Today well see what comes from janet yellen. Thats it for todays show. Were back with closing bell a bit later this afternoon. Thanks for joining us. Squawk box is next. Good morning. It will be all about the Economy Today even more than normal. Early read on First Quarter gdp expected to confirm what weve seen in terms of the slow numbers. Well see but could be below what we used to think. Meantime fed officials are meeting in washington preparing to make a policy announcement on rates rates. Shares hit badly last night on disappointing Quarterly Results and weak guidance. Trouble in the cockpit. A glitch in ipads used by pilots. Its wednesday, april 29th 2015 and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning everybody and welcome to squawk box on cnbc. Im becky quick with joe and andrew. Big media news this morning and good news for seinfeld fans. Hulu striking a deal for reruns of the sitcom. Terms of the agreement were not disclosed but the licensing deal is worth 180 million. Well have more details later this hour. But if you are just waking up this morning, lets get you up to speed on the markets. Check out the u. S. Equity futures. Yesterday under pressure for much of the day but ending higher. At this point the futures are indicated slightly higher with the dow up to close to 12 points and