Transcripts For CNBC Worldwide Exchange 20160323

Right now. Good morning. Welcome to Worldwide Exchange. Im sara eisen. And im wilfred frost. Lets have a look at what futures are doing here in the u. S. Right now. Of course, yesterday basically trading flat. The dow losing about a quarter of 1 . In essence, pretty resilient in the face of those attacks yesterday. Today also looking fairly flat but just the other side of flat. The dow called to open higher by 23 points. Here is the latest from brussels this morning. Investigators are carrying out raids as we speak. They are looking for one of the three suspects caught on surveillance tape as they pushed luggage carts through the airport before yesterdays blasts. Nbc news has confirmed with Police Sources that brothers khalid and Ibrahim El Bakraoui have been identified as the airport suicide bombers. During raids in a brussels neighborhood, police did find a bombmaking factory, which had nails, bolts, and chemicals used in explosives. An isis flag was also found in the home. The terrorist group has claimed responsibility for yesterdays bombings at the Brussels Airport and at a nearby subway station. The blast leaving at least 31 people dead and scores of people injured. Lets show you the Global Market reaction this morning. Resilience in the face of terror attacks. We saw it in europe yesterday with some major indices even closing in positive territory. U. S. Equity futures, as wilfred just mentioned, showing a higher start after the dow closed fractionally lower yesterday, as well as the s p and the nasdaq, which did outperform. Early trading in europe suggests the resilience in europe as well. Green arrows in germany with a more than 1 move higher on the german dax. Well keep an eye on that through the trading session. In asia overnight, modest reactions as well. Green in shanghai. The shanghai comp closing up about 0. 4 . Modest losses in japan and in hong kong. Less than 0. 3 . That, of course, asias first reaction to those terror attacks yesterday. Oil prices off a little this morning, but in general maintaining their resilience of the last few weeks. Were at 41. 15 for wti. The tenyear note, interestingly, seeing a little bit of selling overnight. You might have expected buying in a safe haven type trade in the face of geopolitical concerns. The yield ticking up to 1. 94. Also, some debate on fed speak. Some people being slightly antiyellen in terms of her dovishness. Thats likely whats moving that more than anything else. Well discuss that later. A quick look in on currencies. The big mover yesterday, of course, was the pound. Bear in mind, 1. 4181 is some way from the lowest level it hit. A quick look at gold. It caught a bit of a bid yesterday but nothing too significant. Belgian authorities are now facing criticism about why it was not already on the highest level of alert. Reporter a lot of developments already this morning here in belgium. Nbc news now confirming that the man seen on cctv footage yesterday wearing a white jket and dark blat hat pushing luggage through the airport just moments before two explosions left 11 people dead is 24yearold najim laachraoui. They also confirmed the other two seen walking with him through the airport are two brothers, ka hid ahalid and ibr bakraoui. They were known to belgian authorities. More on this man being sought by belgian authorities, what we know about him so far is he was working under an alias, that he rented an apartment here in connection with the three brothers who planned the november attacks in paris. We also understand that theres dna evidence now linking him to those attackers. We also understand more now about just how much involvement he had in those attacks. Apparently he traveled to syria back in 2013 as well. So belgian authorities still looking for najim laachraoui. Theyre searching across brussels and across the country for him. Meanwhile, people here in the city are trying to get back to their normal lives. This is the first day of National Mourning for the victims of yesterdays tragedy. Vigils have been set up throughout the city over the last 24 hours to honor those victims. People are very uncertain, very worried about their transport system and how safe it is to get to and from work. We know the trains, the metro, and also the buses are running on a limited schedule. Hadley gamble in brussels there. Check out the Financial Times. Isis strikes at the heart of europe. Joining us now is the Financial Times Brussels Bureau chief. Thank you for joining us. Tell us about the fallout on the ground in brussels about the question of why the Terror Threat level wasnt more elevated in advance of these attacks. Well, the belgian government came under a lot of criticism after paris when they raised the level to four. You remember the weeklong lockdown here. There were questions about whether they were doing it for political reasons, whether they were trying to cover themselves. Whether they raised the terror level to four and that helped things, i find that a bit dubious. Now that we know the identities of the two men who allegedly committed the attacks at the airport, these two men were known to police for at least a week. It is less i think an issue of raising the alert level than questions of shoddy police work now. They had been searching for these guys for over a week. They were able to slip through that net. Thats a bigger question for belgian authorities today than when they took any other sort of symbolic measures to raise threat levels. Lets talk about the symbolism here, peter. The heart of europe and the Financial Times, brussels the de facto capital of the eu. This really hits home. I know you talked to some of the european policymakers who work at the eu near that subway station. How do you think its going to reshape the debate right now going on inside europe, the existential debate about immigration and migrants and the unity across europe . Yeah, i mean, its left people very rattled here. Again, even the veteran diplomatic types that work around here. One of our colleagues that was on that very metro line just seconds before the bomb went off, hes a little rattled himself. So it has shaken us here. I guess the question is, look at what happened after the paris attacks. There was a huge amount of talk about unity, about changing eu policy, and what we saw almost immediately after that was a complete disintegration of consensus on how to approach these things and actually sort of very angry infighting between normal allies like germany and austria, between greece and some of the other countries. So i think once again, it will restart this debate, but im not sure we have a consensus on what needs to be done. If it didnt happen after paris, im not sure its going to change now just because its brussels. Frankly, there is no consensus on how to approach this. There is no consensus on whether open or closed borders is helpful, hurtful. If were going to have open borders, how to monitor them. So it will certainly supercharge the debate, but again, this has been going on since the november attacks in paris, and we have to consensus thus far. Im not sure this is going to provoke one. Peter, certainly very hard for policymakers to find a consensus. What is the net emotion, though, in the minds of voters and the people on the ground, particularly, i suppose, across the channel in the u. K. As well . Its very relevant. Is it one of protectionism, or is it one of solidarity . Well, i mean, it remains to be seen. Certainly people ive talked to over the last 24 to 48 hours have been very, very concerned that this comes just three months before the Eu Referendum in britain. The assumption is that those who are on the fence will look at europe and say, what a mess, even in the eu capital, they cant control these jihadis. Lets get out of there. Now, again, you can talk to any number of people who would argue as well this is kind of an illogical argument. Britain is not leaving the eu is not going to give britain any more control of the comings and goings of joihadists into the u. K. Its an emotional question. Even people who arent prone to kneejerk emotional reactions on such questions are openly discussing the fact that, you know, they wonder whether this eu project is such a mess that it might be time to jettison and get out. And youre referring to the policy of open borders, passport free travel. Give us a quick rundown of what that means. Schengen is a treaty signed is by almost every member of the eu and some European Countries not in the eu, like norway and switzerland. As you say, dropped all internal borders. If you travel, for instance, from belgium to france, up until yesterday, theres no border checks. Theres no border control. This is also seen as one of the great achievements of the eu. This is a continent that not too long ago you had to constantly stop and show your passport when going from france to luxembourg to belgium. Now its like driving from pennsylvania to new jersey. Theres no stops. The problem with that is, as one security official said to me, if you are french and your border is greece, very hard to secure your border. So there are questions about whether this passport free travel within europe is contributing to the problem. So britain is not part of that. Other countries are not, ireland as well. Its not an issue for britain when it comes to the brexit debate, but its becoming an issue here on the continent, where its not only the farright leaders who are questioning. We have evidence that isis has used this influx of refugees from turkey into greece as a way to infiltrate operatives. Peter, thank you very much for joining us. Investors will get more data on the housing sector today following disappointing numbers on home sales. Landon dowdy joins with us more. Sales are forecast to rise 3. 2 following a sharp decline of nearly 10 in the previous month. This data often swings but has struggled to hold an annual rate of 5 . Kb home reports First Quarter results after the closing bell. The street is looking for earnings of 11 cents a share on rev now of 634 million. The builders strong backlog at the start of the year should drag revenues. The stock is trending higher though, up 21 in the past month. Back over to you. Well see what those results look like, landon. Thank you. Philadelphia Federal Reserve president patrick heart attaark the central bank should, quote, get on with rate hikes. He said while he supported the feds decision last week, they should start considering another hike as soon as next month if the u. S. Economy does continue to improve. Harker says he would prefer at least three rate hikes before the end of the year. Speaking last night, adding to the fed debate over whether janet yellen has a consensus. We have some stocks to watch today we want to mention. A jury in california ruling in favor of merck in a lawsuit against rival gilead over patents for new hepatitis c drugs. Wa oracle is suing is hp enterprise. Oracle requires customers to buy tech support from it rather than from outside companies. The hedge funds that have launched a proxy fight with United Airlines are now calling on the company to immediately appoint one of its new Board Members as chairman. Park Capital Management and ultimator Capital Management said uniteds board is under qualified because of a lack of experience. More stocks to watch. Krispy kreme projecting fullyear profits below analyst estimates, warning international samestore sales will remain negative. Red hats fourth Quarter Results beat results and theyre offering an upbeat outlook on 2016. Subscription revenues jumped 18 , although billings or deferred revenue came in lighter than expected. Five below reporting strong fourth Quarter Results that beat forecasts, but the retailer is projecting 2016 results at the low end of analyst estimates. Long term, the Company Expects annual profits and revenue will grow 20 through 2020. When we come back on Worldwide Exchange, the latest on the massive manhunt under way for the remaining suspects in the Brussels Airport bombing. And nike stumbling on sales, sending Company Shares lower. Is it a buying opportunity . Well break down those results for you next. Youre watching Worldwide Exchange on cnbc. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Welcome back to Worldwide Exchange. If youre just waking up, heres the latest from brussels. Investigators are carrying out raids right now. Theyre looking for one of the three suspects caught on surveillance tape as they push luggage carts through the airport before yesterdays blasts. Nbc news has confirmed with police that brothers ibrahim and Khalid El Bakraoui are being looked for. The terrorist group has claimed responsibility for yesterdays bombings at the Brussels Airport and a nearby subway station. The blasts leaving at least 31 people dead and scores injured. Lets switch back to see what markets have done in light of this and what were looking at this morning. Yesterday, slight losses. About a quarter of a percent for the dow. Today were pointing at slight gains at the open but very, very small gains. The dow called to open by 16 points. One factor that could move the dow, its our Corporate News mover today. That would be nike. Third quarter profit rising 20 , beating forecasts, but it was the sales number that missed estimates as the strong dollar cut into sales from some of its overseas market. The stock falling sharply, down 6 here in after hours. Joining us now on the cnbc news line is the retail analyst at morning star. Paul, ive covered nike for our while now. I went through these results thoroughly. Where else in retail right now are you seeing 8 sales growth . Yeah, and id also point out we look at the long term and what the brand is doing. Thats what we really see as the source of longterm value. This is a solid result and theyre growing really, really stro strongly in emerging markets. Now, your question is why is it selling off. The futures numbers they reported have been really strong, and sales growth has lagged. Two reasons. One is that some of the futures dont line up exactly with their retail and wholesale numbers. The other is that converses is off. Converse is not included in futures because its just brand nike. Interesting. I was thinking perhaps this disappointing sales was due to the strong dollar. If you strip out the impact of currencies, you would have seen 14 sales growth for nike. I guess the question is, is it a buying opportunity with the stock down 6 . Yeah, and we just what the value of the stock is today, and i think its worth about 55. So its going to come down. If it settles at 6 lower, its going to come down to where we think its fairly valued. Id point out nike we rated as a wide mode stock. Its also the least undervalued in the sector. Ds is trading at over 100 euro, maybe 34 times earnings in their growth and comp is weak. Under armour is also strong as a brand, but its more highly valued. Nike as a company we like. Its getting the point where its not cheap, but its at least not overvalued. And overwhelmingly bullish analyst sentiment on the stock as well. Paul, thank you for joining us. Potentially nike being too expensive there. Up next, donald trump and Hillary Clinton trade wins with their chief rivals in last nights caucuses and primaries. Theyre also attacking each others world views as the race for a white house turns into a clash of wouldbe commanders in chief. As we head to break, heres todays National Weather forecast from the weather channels januaen carfagno. On this wednesday, we have a big system that crosses all the way from the rockies right through the great lakes and actually extends out into the northeast. This is going to be a longtrack winter storm that will bring blizzard conditions potentially to colorado, blizzard warning in effect for denver today. Some snow to areas in minnesota. Minneapolis on the Northern Edge of that. And chicago in classic spring fashion, were going to start with some rain, maybe have a Little Thunder overnight tonight, and end with snow tomorrow. How about that, chicago . There will also be Severe Weather issues across portions of the plains today and tonight, stretching from st. Louis to kansas city and then back into parts of texas. A lot of warmth too. A lot of wind. A lot of wind all across the southern plains. Temperatures warming up in dallas to 85. Atlanta, 74 degrees for today. Thats your latest coasttocoast forecast. Im meteorologist jen carfagno for the weather channel. Worldwide exchange continues after this. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. Like in buffalo, where the largest solar gigafactory in the western hemisphere will soon energize the world. And in syracuse, where imagination is in production. Let us help grow your companys tomorrow today at business. Ny. Gov plumping surface cells for a dramatic transformation without the need for fillers. Your concert tee might show your age. Your skin never will. Olay regenerist, olay. Ageless. And try the microsculpting cream you love now with lightweight spf 30. The latest from brussels at this hour. Belgian investigators are carrying out raids. They are looking for one of the three suspects caught on surveillance tape as they pushed luggage carts through the airport. That image on so many front pages of global newspapers this morning. Nbcs tracie potts joins us from washington with more. Good morning, tracie. Reporter good morning. They are looking for now identified as 24yearold north America Najim laachraoui. He was also connected to the paris attackers. Theres an urgent manhunt across europe this morning for this man. Authorities believe hes the third attacker at the Brussels Airport. The other two, they say, blew themselves up. In a new communique, isis is warning of, quote, black days across europe. I dont feel secure. I dont want to go home now. Reporter one of the last flights out of brussels before the attacks has landed in theist amid increased security at airports and mass transit here. U. S. Authorities say they knew weeks ago an attack was being planned. They just didnt know where or when. We will stand as a nation with our allies and our friends and people all over this world. Reporter the brussels attacks have created a political rift in the u. S. Donald trump says close the borders. Ted cruz wants police to patrol muslim communities. Where there is an expanding presence of radical islamic terrorism, we need Law Enforcement resources directed there. Reporter what donald trump, ted cruz, and others are suggesting is not only wrong, its dangerous. Reporter john kasich and Bernie Sanders also disagree. Meantime, theres concern this morning for four american missionaries wounded. And theres also concern about an american couple still missing. Okay. Were back live. As we noted there, there are still americans out there and possibly reports of a few others who have not yet been accounted for. That is part of the investigation. Tracie, of course the other big political story overnight, the results coming in from last nights primary and caucuses. Whats the main takeaway for us on that . Is it that trump and clinton continue regardless, or the utah victories for their rivals more significant . Reporter utah and also we learned early this morning idaho for Bernie Sanders. He ended up taking two states. Utah for ted cruz. Is it going to slow them down . Its just not clear at this point. Hillary clinton and donald trump have such large delegate leads. We focus on that because the votes that happen in these primaries translate into delegates. It is the delegates. We cant say that too much. Its the delegates that will term who becomes each partys nominee. Hillary clinton way out there, more than 700 delegates ahead of Bernie Sanders and donald trump even though he split those contests yesterday. Still quite a bit ahead. Several hundred delegates ahead right now of ted cruz. They widened their leads, and they have a couple other big contests coming up. One this weekend for the democrats and then wisconsin, the big one in early april for both. Tracie, thank you very much. Tracie potts in washington. When we come back, more on the search for the suspects in the brussels terror attacks. Plus, well be joined by ian bremer this morning who says the implications of this latest event ar overwhelming. Youre watching cnbc, first in business worldwide. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Breaking news, a manhunt across europe. Authorities now searching for one of the three suspects involved in the brussels terror attacks that have left at least 31 people dead. Global Market Reaction. Stocks shrugging off the Terror Threat with green arrows in early european trading. And new this morning, Hillary Clinton and donald trump winning arizona, picking up more delegates in the race for the white house. But Bernie Sanders and ted cruz show no signs of backing down, capturing utah. Its wednesday, march 23rd, and Worldwide Exchange begins right now. A ver good morning to you. Welcome to Worldwide Exchange on cnbc. Im wilfred frost. And im sara eisen. U. S. Equity futures pointing to a higher start yesterday, remaining resilient in the face of terror attacks in brussels yesterday. Dow futures now up 12. S p futures up 1. 5. They were stronger a few moments ago. Nasdaq futures up five. Yesterday the dow did break an eightday winning streak. However, marginal losses, limited reaction. Here is the latest from brussels this morning. Investigators are carrying out raids as we speak. Theyre looking for one of the three suspects caught on surveillance tape as they pushed luggage carts through the airport before yesterdays blasts. Nbc news has confirmed with Police Sources that brothers khalid and Ibrahim El Bakraoui have been identified at the airport as the suicide bombers. During raids of houses in a brussels neighborhood, police did find a bombmaking factory, which had nails, bolts, and chemicals used in explosives. An isis flag was also found. Joining us now on the Cnbc Newsline to discuss further, ian bremer from the eurasia group. Ian, a very good morning to you. As we sit here to try and dwell on what the main conclusions are going to be of this terrible attack yesterday in brussels, is one of them going to be a much more disjointed europe . It certainly is. Unfortunately, thats not news, right. Its been going on now for a couple of years. The crisis the refugee crisis, which is only getting worse, the terrorist threats, as well as the potential for brexit coming on the june 23 referendum date. All of those things are bringing countries to make decisions for themselves and refusing to think about europe as a whole. The markets are eventually going to be recognizing this. My question is, what is the Economic Impact of all of this . What is the impact of more disjointed europe, as you say . At the eurasia group, a lot of your clients are hedge funds and investors and turn to you for the geopolitical analysis to figure out those longterm investment decisions. What are you telling them . Its going to be a hit to tourism and a hit to trade, right. One of the things that europe has been based on has been the ability for open and free transit across borders. That clearly isnt coming back any time soon. The walls are coming up, and we dont think its likely that this turkish eu deal on refugees is going to hold. Again, the brussels attacks makes that more challenging, in part because the willingness of eu countries individually to accept a liberalization of turkish travel without visas is going to be much, much harder. Its not going to be supported in the aftermath of these attacks. Ian, that recent turkish deal, which you just suggested might not hold. Angela merkel had put a lot of her future on that, as with of course the refugee crisis over the last year or so. Is she now increasingly under pressure . Yes, she is. She didnt want to have to do that, of course. She wanted to take the lead in accepting refugees and have lots of other countries join her. That wasnt popular almost immediately. I would say frankly the biggest news on that was not the brussels attack but rather was on new yeas eve when over a thousand german women were sexually assaulted by young muslim men in three cities across germany. But this certainly adds fuel to the fire, and she was forced into this turkish deal precisely because she saw no other alternatives. Its not as if turkey is moving towards democracy and rule of law any time soon. Unfortunately, that last option for her is being made much more challenging in a security environment where everyone is going to be pointing the finger at muslims within their borders. Ian, lets talk about the u. S. Political implications. We feel solidarity with our european friends as we did in november in paris. Youve heard the rhetoric from the campaign trail. Do you buy this idea that these kind of attacks and this fear and increased specter and risk of terror is good for donald trump, who talks of building walls and who talks of closing immigration, tough talk about waterboarding. Does this all help him . I think its good for him among his base, sure. There is a segment of americans who clearly want to blame someone for what they feel to be a trajectory that theyre not happy with at home, both economically and also from an identity politics perspective. I think thats why hes done as well as he has. But the negative he gets across the population as a whole are almost historically unprecedented. So we come away from yesterdays arizona, utah primaries with trump still looking like he might be able to secure the nomination. Its just about a coin flip. I think the likelihood he could win the presidency as a whole if he did is extremely low. I dont think frankly that terrorist acts are helping him in that regard one bit. Ian, can i just quickly use what you just said there about donald trump to ask about brexit . You said this could be good for donald Trump Supporters within his existing base. On the brexit debate, does this just strengthen the conviction of people that were already going to vote exit, or is it something that could change swing voters minds . I think thats exactly the right question, right. Most brits recognize they want to stick with europe, but theyre not passionate about it. The alternative seems to problematic, right. Thats kind of the way a lot of americans feel about Hillary Clinton. So when i think about what brits are going to do, its not about changing the numbers of who does and doesnt think that britain should stay part of europe. Its all about turnout. The question for David Cameron is going to be whether he can convince a larger number of brits that they really need that this is important. They really need to get to the polls. The people who oppose britain in europe are extremely passionate about that issue. The brussels bombing and what will surely be a much more problematic looking europe by the time we get to june 23 is only going to make them more certain in that position. Ian, thanks so much for joining us this morning. Ian bremer, president and founder of eurasia group. The transportation sector in europe is facing heightened security this morning. Nbcs claudia lavanga joins us from the Brussels Airport. What can you tell us, claudio . Reporter well, the Brussels Airport is closed all day today. We dont know when its going to reopen. We saw a couple planes landing, but we believe those are the exception. Yesterday, 600 flights were canceled. 600,000 passengers were stranded. We expect as many to be stranded still today and flights to be diverted to other places. In the meantime, there is a manhunt going on for the third man seen in that cctv camera footage and stills in that airport. He was the third man that accompanied the other two. The two brothers, el bakraoui. Despite this, theyve woken up to a fairly normal functioning ty. Subway lines and buses are running. Claudio, thank you very much. Claudio lavanga, who is outside the Brussels Airport, which remains closed this morning. The world is responding in solidarity to the attacks in brussels. Buildings from cities from paris to dubai are lit up in the colors of the belgian flag. We have some great imannages fo you here. Thousands of people are tweeting the phrase that first emerged after the Charlie Hebdo attacks. We saw it in paris as well back in november. We did indeed. Facebook ran a program that asked users to live in brussels to check in as safe. The site then shares their status and locations with friends. Vigils overnight in brussels. People writing messages of hope in chalk on the sidewalk. Lots of outpouring of love and solidarity for the people of belgium. When with e come back, todays must reads, discussing the implications of the brussels attacks. Some really smart commentary this morning. Worldwide exchange will be right back with that. Cathys gotten used to the smell of lingering garbage. In her kitchen yup, shes gone noseblind. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblind to [inhales] mmm. Use febreze air effects, till its fresh and try febreze small spaces. To continuously eliminate up to two times the odors. For 30 days febreze small spaces and air effects, two more ways. [inhale exhale mnemonic] to breathe happy. Investigators are carrying out a manhunt in brussels at this hour for one of yesterdays airport bombers. During raids of houses overnight, police did find a bombmaking factory, which had nails, bolts, and chemicals used in explosives. Were going to continue to monitor this developing story and bring you the latest. Lets get to todays must reads, which focus on thes situation in brussels. This one in the Financial Times titled brussels attacks show that terrorists can strike at will. It asks, is this the start of a regular diet of such atrocities. Sadly, it concludes it will be ever harder for Security Forces and politicians to ensure that europe maintains its values in the face of the terrorist threat from within. The keyword there, sara, for me is within. I think thats really what were all waking up to. We have been for the last year. When domestic passport holders, which of course also can travel freely, not just in their own country, but across europe, are the ones now carrying out these attacks. Its so much harder for Security Forces to stop them. The question which it rightly asks at the end, does it then threaten the values europe was built on that led to this Free Movement of people, which was so celebrated for so many years. A particularly good piece, i thought, on the questions that we all sadly have to wake up to this morning. And mine is on a similar theme, which is just how widespread and daunting this task really is. In the wall street journal, reporter from london, brussels attacks show that terrorists can strike at will, laying out a timeline of attacks over the past ten days. Its really a calendar of jihad deadly attacks. Its all around the world. They just go back ten days starting with sunday in africa. This is a global threat. They start with this african ivory coast terrorist bombing monday. Palestinians firing on israelis in the west bank. Tuesday in somalia. Wentz wentz in nigeria. Thursday, friday. It goes on and on and on, leading up to tuesday in brussels. Doesnt say what to do about it, which i think were low on solutions and answers. You know, its up to the foreign policymakers and the intelligence gatherers, but theyve got an increasingly large problem. And not to be too desperately down beat, that doesnt even point to the attacks that were stopped as well, of course. True. And how many more that could be. Right. Switching focus, global Auto Executives are taking over the big apple this week for the new York International auto show. Phil lebeau joins us live from that show with a first on cnbc interview. Phil . Thank you, wilfred. Im joined by ian robertson, board member for bmw. Were going to talk about the m768 xdrive, but i have to start off with whats happening in europe. You left right before the explosions in brussels. You dont have a plant there. What are your thoughts about the impact this might have there . Clearly at this moment in time, the security is all over this issue. Our thoughts are with our own people as well. Yesterday i didnt know whether any of my team in brussels was involved. We had four of our team at the airport yesterday. Thankfully, theyre all okay and accounted for. I think its too early to say, phil, what implications this had, but clearly this is a very, very sensitive issue on multiple fronts. It could have quite an impact on the belgian economy. And in terms of dampening enthusiasm for new vehicles in europe, a little too early to tell . I think its much too early to tell. There have been these Security Issues over the last 12 months, but europe was still in recovery mode from precrisis levels. So the sales actually kept up quite solidly during last year. We have to keep a watch on this. Fortunately for us, your plane got off the ground before anything happened over there. Tell us a little bit about what youre going to show us right now, the m760 xdrive. This is the flagship model. All of the luxury and performance that you expect from the top of the line model. This one behind me, of course, is in a matte black color. I think itll be very popular. Clearly what we expect with this car is it really shapes the brand moving forward. The luxury market has been red hot over the last five years here in the u. S. Are we close to a peak . I think we already began to see that last year, that maybe 17 million, 17. 5 million is a peak for at least the time being. I think this year it will be low singledigit numbers that actually occur. I think thats a situation almost all around the world at the moment. We seem to have come out of a position of high growth into one which theres a bit of plateau, a bit of singledigit growth. Ian robertson, board member for bmw showing us the new m760i here at the new york auto show. Very nice. Thank you very much. We are approaching the top of the hour. That means the team is getting ready for squawk box in new york city. Joe kernen joins us with a look at what is coming up. Whats on your mind this morning, joe, as we all sort of look at the ramifications, geopolitical, political, economic of what occurred yesterday. Were thrust into the job of really probably talking about this more than we normally would. The markets are not the story, obviously. In fact, because of what happened and because there hasnt been a lot of effect on the markets. If we hadnt been interrupted by the auto show, which i know was something we wanted to do, i would have just done my article of the day, which is right across from yours, sara. I couldnt help but think of the juxtaposition. You went over the deadly calendar of attacks. On the other side, it was sort of the opposite end of the spectrum. That is do we have an inordinate fear of terrorism, that the president apparently often reminds his staff. This is an atlantic article. A lengthy profile of the president S National Security thinking. He frequently likes to point out that terrorism takes far fewer lives in america than handguns, car accidents, or even falls in bathtubs. He frequently tells valley jarrett or has told her isis is not coming here to chop our heads off. So thats i just wonder how should we really think about it. I guess some middle grounds. We dont want to be we dont want the terrorists to win and have us change our schedule, whether it be a baseball game or whatever. Then again, there seems to come a Tipping Point where when an sbur continent seems to have been changed entirely at its core, i think its not just adding up the number of lives. So i dont know. And its all in the prism of an Election Year where theres going to be a choice between someone that wants to go absolutely, you know, full force, full boor to maybe even go and attack isis at its roots, or someone that still has the idea theyre the jv team in the back of a pickup truck. Maybe somewhere in the middle. Couldnt agree more. The atrocities are one thing, and they are absolutely dreadful, but as you say, the political fallout is going to be something well perhaps focus on for longer. As you say here, its electing a president of course. Back in britain, back in europe, other votes of significant importance as well. Well have to wait and see what the results are. Joe, were running tight on time. Squawk box up in nine minutes. Still to come on Worldwide Exchange, david stubbs of jpmorgan Asset Management joins us with a snapshot of the Global Markets. First, political news for you. Politico is reporting that jeb bush will be endorsing ted cruz today. Stay tuned. Youre watching cnbc, first in business worldwide. Welcome back to Worldwide Exchange and a very good morning to you. Join iin ining us now is david from jpmorgan Asset Management. First story of the day, we have to touch the Market Reaction to the brussels attacks. How significant is Political Risk in europe right now, both relating to that and more broadly, and how do you position for it . Well, in the short term, of course, we saw a rather muted reaction to yesterdays atrociti atrocities. I think investors need to think about the wider picture here of a European Union beset with a number of political tensions. You have the terrorist threat, the migrant crisis, brexit, and of course the struggles of some countries to former governments such as spain. I think over the medium term, this has got to question the valuation you place on things like european equities because there is a risk of major sustained political turmoil, which eventually starts to harm corporate profits. Our view is that this is just another reason why we favor european credit over equities right now. Do you have a view on u. S. Stocks . Im wondering because the dow, which is heavy multinationals, underperformed the nasdaq, the techfocused index, yesterday. As we continue to see dollar strength, buying of the safehaven assets, i wonder if you think thats going to continue and continue to be a headwind for Big Multinational Companies like nike, which strong dollar slashed those sales nearly in half. Sure. Regardless of where the dollar goes in the short term, its at an elevated level after a multiyear bull market. My personal view is well see the fed start to signal a june rate hike. That will eventually allow the Interest Rates to widen and the dollar to strengthen a little bit throughout the second quarter. But our view on u. S. Equities remains that its a key part of our portfolio. Its a highquality index. You have a very liquid index in a time where liquidity across assets is a concern for investors. And its not particularly a high beta play to the global economy. Given that our view is steady but unspectacular growth, its where we like to be. Where within the u. S. Equity space do you like to be give that point you just mentioned . Are you wanting more momentum within the u. S. Market or less momentum . Right now i do like where tech is. I think its at the fulcrum of two factors that are going to drive the economy forward. One is solid consumer spending. The other is eventual pick up in equipment and Software Expenditure by companies. We are near an Inflection Point for this economy where spare labor supply starts to dwindle. Wages start to rise. And margins come under pressure. Thats going to force businesses to invest. I think tech can be a part of that. Furthermore, i still like where some of the domestically focused financials are. I think at the moment we are in a period where people have taken down Interest Rate expectations. People have been questioning the health of some of the economy. I think there are some large names which also look good. David, were going to have to wrap it up there. Thanks very much for joining us. Thats it for todays episode of Worldwide Exchange. Squawk walk is coming up next. Youre not gonna watch it no, youre not gonna watch it we cant let you download on the goooooo youll just have to miss it yeah, youll just have to miss it we cant let you download. Uh, no thanks. I have x1 from xfinity so. Dont fall for directv. Xfinity lets you download your shows from anywhere. I used to like that song. Good morning. Breaking news. A manhunt across europe. Authorities searching for one of the three suspects involved in the brussels terror attack, that guy on the right that you can see not in the khakis and black sweater. A belgian newspaper how reporting hes been apprehended. No confirmation yet. And the latest from belgium, increased security measures are occurring here in the united states. The response in Global Markets, were going to look at that straight ahead, though its been muted up to this point. Back here at home, Hillary Clinton and donald trump win the arizona primaries, picking up more delegates in the race for the white house, but their opponents, Bernie Sanders and ted cruz, show no signs of backing down, capturing the utah caucuses. Its wednesday, march 23rd, 2016. Squawk box begins right now. Good morning, everyone. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. We should tell you the latests in brussels. This is just crossing from one source at this point. It is a belgian source citing that the third suspect has been captured in belgium. Again, this is just one source. Well continue to stay with this story and tell you more as we get updates on this. That manhunt had been under way for the third suspect. Youre looking at him right there. He is the suspect who