Transcripts For CNBC Worldwide Exchange 20150302

Pressures continue to weigh on the manufacturing sector. Unveils a radical plan to undate the Monetary Policy . And has reignited . Unveiling the most sleek phone yet and makes a play into the mobile space. And the eurozone pmi data has just broken. It come in 51. 0 for february. That is just in line with what was in january. 51. 0 fractionally below expectations in 51. 1. Germanys pmi came in at 51. 1. Slightly up from january 50. 9. We had italy and spain earlier today both of which were solid and strong new order components. All in all the data pretty positive. The eurozone number has come in 51. 0 basically in line where it was expected. You see the euro dollar strengthened a bit. Its at session highs. It was flat for the day and now session highs. Weve had some italian jobless data, which just looking for as well. Its come in well ill bring you up it has come in. 12. 6 . The forecast was 12. 9 . So that has come in better than expected. Theyve fractionally revised decembers data. That is januarys data. Lets discuss this further now. Joining me is the chief european economist at uvs. The pmi data coming in pretty solid territory. I suppose now qe is coming it should be good news the market. I think thats right. The latest Economic Data as you said have shown some encouragement. I think theres a chance well see more of an economic upsing. We see a number of growth drivers. First of all, the external improvement continues. Secondly, the ecbs policy has the euro has weakened a lot. Inflation has come down a lot. Oil prices as well. It helps to boost consumer purchase power. Fiscal austerity. It should imply that we see a better growth in the second half of this year and next year. As we talk about the Bond Buying Program we see yields hit record lows. This morning because its about to kick off this program. How much difference can it make to the fundamental. I think lower yields would help. A sign of greater overall we think that qe will come the weekly which is exports across europe. Is the Exchange Rate 111 handle today. I think a lot is priced in there. We see some further Downside Potential of the next couple of weeks. Yes. Lets talk about the situation with greece. Of course, we have around four months of breathing space. Four months is nothing in the grand scheme. If we look down the line three or five years, they need a deevaluation to be able to compete. If that cant happen through the currency they dont seem to go through the painful process themselves. Thats true. The road has been difficult. We still think that a comprise will involve out of these negotiations that we will see over the next four months based on the lower Interest Rates. Also great fiscal flexibility. The next couple of weeks will be difficult. Thank you. Brian will stick with us. Lets get to jeff and hadly who are live in abu dab bee with more on the interview i mentioned earlier. Good morning to you. We are here at the major investment conference. You know this part of the world pretty well. Were in the emirates palace. Its a large hotel. Its the center point here. What is exciting i have to say, the amount of people we see internationally coming to the conference. Theyre interested in the market here and getting involved with the region particularly with saudi arabia opening up soon. A lot of interesting conversations happening here. I think for the first time in awhile the focus is coming back here. A lot has to do with negative news stories about the energy price but its creating some opportunities as well here. Absolutely. Its interesting that some of the people weve talked to here specifically have told us that the projects are going to go on as if nothing is really happening in the energy market. Theyre saying despite the plunge in oil prices theyre going to be building. Its exciting. A lot of focus, clearly, on market levels this morning. Obviously given what we saw in february a lot of analysts concerned that markets are getting a little bit for Goodness Sake in the Government Bond markets and elsewhere we have negative yields now. We had a chance to catch up with Senior Adviser and get his take what is going on in europe now that the ecb has engaged in qe. His view mario an drojy is another player in the game. Over the next year were going seat qe involve. Were going to see a bigger set of instruments being brought by the ecb as it continues, unfortunately, to be the only game in town. You have written extensively on why we have negative yields on some government curves here. Fundamentally, it seems to me the bond market still has a different view where were going economically this year. Do you think that there is any credibility in that view where were at these negative yields because there is still too much liquidity globally created by money printing . The ecb is no longer a referee but a player. If youre another player on the field the dynamics change. Thats watthat the ecb is now. The major buyer of securities. Having said that i think the bond market is expressing some concern about gdp in europe. Its saying the risk is on the downside. Both in terms of the real component and in terms of the inflation component. I think thats something to that. I dont buy as yet, and i dont think thats going change. This is global deflation. The real issue is when u. S. Yields continue to be pulled down by european yields as pushed out of europe into the u. S. Or will u. S. Yields start to to a world that looks very different. Thats what a major battle is going to be played. I think youre going to be gradual repricing. We will not see a major backup in yields nor collapsed yields. Youll see the tug of war playing out but so mohamed there talking about the ecb being in the game here. I think very interesting that his message to investors at the moment is look for liquidity or at least if you are going to get involved in the game of chasing markets higher be in liquid investment so you have a chance to make it to the exit before the door shuts. Absolutely. We asked him about jipt andegypt and the investment there. In two weeks time theyll be descending. What do they get out of this . They seemed pretty positive. Theres a lot of liquidity that has been created by central banks. And we know the ecb is in the game. Were waiting to see what happened with the fed. The money is out there and it is looking for destinations. Whether it comes to this part of the world, there are some issues around that. But clearly its coming back into europe in in spite of sluggish growth rates. It might. And saudi arabia theyre opening to Foreign Investment in a couple of months and major interest here to people weve been speaking to about getting in the market. All right. Were here at this Financial Market forum. We will be back in a few moments. Lets send it back to london. Thank you very much. Were going have a look at markets in europe. It was a strong month in february for european markets. The stocks 600 finishing up the better part of 6 . Thats what were doing again today after the strong month last week. The stoxx 600 is flat today. Weve had the encouraging eurozone pmi positive data out. Germany and spain on the right side with expectations but above 50. Positive overall. Lets looking a the individual european markets. The ftse 100 and the dax up about 1. 3 . Weve had fresh heist with the ftse 100 in particular this morning. And the equity markets dont hit new highs both because that data is starting to get better and we know the policy coming from the central bank is accommodative and we get to see it going into action later this week. France just below flat and weve got italy up 1. 7 . Lets look next at rates where weve got the euro at 11193. Below the 112 handle. It did strengthen last week as we got the four month extension to the Greek Program and continued to weaken throughout the week. Below 112 at the moment. The u. S. Dollar strengthening against the yen today 119. 9. Aussie dollar sliding a little bit. And sterling which had a strong rally since early january. Pausing for breath today. Lets have a look next at commodities and, of course oil prices have continued to struggle to find that meaningful flaw. We lost some ground this morning on supply concerns. They recovered a little bit when the chinese pmi data slightly surprised on the upside. 49. 2. Brent 62. 14. The biggest news coming out of asia was the rate cut coming 25 basis points cut following a 40basis point cut we got in november and cuts in between. Lets have a lack at the asian markets. The session its been a strong session. Shanghai up 1. 8 . Hong kong up. 25. Australia benefitting from loosening policies in china. Also worth mentioning that india is up today after the Budget Review weve been talking about in more detail in about 15 minutes time. Now at last we said manufacturing pmi for china climbed to 50. 7 in february. Export demand fell and that added to the view that saturdays rate cut might not be the last well see over the course of the year. But this report from hong kong. Thank you. After a surprise cut by the Chinese Central Bank at the end of a lunar break. On monday a barometer of activity in the factory sector. The hsbc pmi added that more cuts are needed. It did climb to 50. 7 to 49. 7 in january. It was the strongest reading in seven months. A sign of uneven overseas demand emerged as new export orders shrank. Employment in factory was down for the 16th month in a row. Commentators on cnbc widely hold the view that quarter percentage point cuts will have a largely muted effect. In fact it could end up benefitting the banks more than anyone else. As they avoid a squeeze on bank margin. The rate reduction will benefit bigger state controlled firms able to borrow at the benchmark. For the rest lending will be done at the premium to the official rates and for them the move was more symbolic than substance. It was a third move on rates and a Bank Reserve Ratio cut a month ago. Coming ahead of the Parliament Meeting this week the people bank of china showing signs of desperation or trying to show its on top of things. Coming up plenty more interviews with the congress in barcelona. Including an exclusive with the president of cat loan ya. Also coming up the race for the car heats up. Seema will bring us an interview. Well be back in a couple of minutes. They marge in memory of Boris Nemtsov who attracted tens of thousands to moscow on sunday. They walked through chanting russia without putin. Authorityings a russian president putin has called the moment, quote a provocation and vowed to bring the killers to justice. Supporters are blaming russian authorities for the murder they suggested the opposition could be behind the killing in order to create a martyr figure. Lets get to jeff and hadly who have more on the discussion. Thank you very much for that. I was in moscow a few weeks back interviewing the finance minister, and obviously, the story then was focussed on what was going on with ukraine, the prospect of further sanctions. What damage that would do to the russian economy. Where we were on the Interest Rates, and, obviously, we got a cutting Interest Rate and the desire to stimulate the economy. It felt as though the ruble had stabilized and even though obviously, problems over the ukraine were going to continue it felt like there was some kind of stability at least in the Financial Market. This latest story, i think, is a very, very difficult one to analyze. The death of Boris Nemtsov clearly very deeply felt by a lot of russians who have taken to the streets here. My fear is that what this ultimately brings is further entrenchment in russia of hard liners around the president , and a tougher style from the opposition and you end up with a cycle where violence begins violence and protests and demonstrations become repressed very aggressive. Its interesting were here because theres some developments around that story. Absolutely. We saw a couple of weeks ago some interesting developments. We saw the uae and the Defense Agreement signing an agreement. We understand that they have a close relationship with a putin. A long standing relationship. We understand over the weekend they were having talks on saturday and bilateral ties and that kind of thing. We have to look at the broader regional question surrendering oil prices and what its doing to the perceived enemies of the gulf state. Saudi arabia pushing for change in russia. The russians have been backing syria for a long time. Theres a question when they decided to stick to their guns in saudi arabia in terms of out put. It didnt have a broader implication globally. I mean, the piece as fragile as it is appears to be holding at the moment in the ukraine, and there has been some pull back of heavy weaponry. So we hope at least, that is an area of progress but it is concerning that we now have this development around the death of this Opposition Leader. Its definitely concerning and i dont think your fears are unfounded. When you look at the fact 140 million people. Apparently mr. Putin has an Approval Rating over 80 percent. Youll see lines drawn, i think. Unfortunately these kind of actions by whoever is responsible for this gentlemans death, unfortunately this is sort of par for the course in russia. As you know youre a man in moscow. Youre there often. Yeah. But, i mean, its a difficult one. The markets give us a sense of what the underlying from the international and domestic investors. As you look through the prism of where the ruble is going, or where the russian stock market is going, at the moment if feels as though the risk attitude is improving not getting worse. Again, this is another area we need to keep an eye on. When it come dountswn to the reaction from this death. Lets send it back to you. Thank you very much for that. Stanley fisher the vice chair of the feds board of governors said it is quote, about time for the central bank to consider raising rates. Speaking exclusively on friday said it should rise in couple of months time. He was asked to give his take on a probably of a hike in 2015. I think theres a probably high probability. Can you walk us through the reasoning behind it in terms of why would the fed raise rates . We have two goals, as you know inflation around 2 and employment and estimated somewhere around 5 to 5. 3 5. 5. Were at 5. 7 . Inflation is a situation its low because of oil prices but we expect it to go up once. It is about time. Weve got used to thinking of a zero Interest Rate. Its far from that. Still with me is the chief european economist at ubs. Lets look at the situation compared to the european situation. The u. S. Bond market reacted in a number of week says. The euro falling below 112. Expectations because of a u. S. Rise or about to have bond buying start again . I think the bond buying in europe has been present for some time. I think it had more to do with the u. S. Part of the information, yes. And what does that change the outlook for you in terms of europe. When the u. S. Stocks tightening rates . I think it will be important. I mean, we at ubs expect the fed to start hiking in june. This would certainly be important for europe as well. Overall we see a significant decoupling between the u. S. And europe. The ecb will not be able to normalize and tighten Monetary Policy any time soon. The wedge in the perception between u. S. And european monetary policies are going to widen Going Forward. This week is a big week for europe. European central bank. What details are you expecting to hear and what are you focussing on . We think that the ecb meet willing focus on three areas. The first is the staff microEconomic Forecast released by the ecb. Secondly, greece certainly. And thirdly, we think we are going to hear more Technical Details about the qe program. I mean personally im quite focussed on the new stock market Economic Forecast because for the first time the ecb will have to tell us they expect it to be influenced by qe. Then since the microforecast will also include forecast for 2017 for the first time this will kick start the discussion on whether or not qe will have to go beyond september 2016. And provisions in the macroforecast. Weve had pretty good data. I think on the growth side were likely to see upward divisions. On the Inflation Numbers were likely to see downward revisions. On the third thing theyll be talking about the exact Technical Details of quantitative easing. What might move markets . I think people are trying to figure whether the ecb will be successful in buying 60 billion euros per month. Were looking forward to get more Technical Details on how theyre doing this trading. And the taxdax highs. Are you a buyer of European Equity . We do and germany. We think theyre likely to be keys for a weaker europe. Thank you very much. Now it seems warren buffet has a plan for his company. When the day comes hes no longer heading it. The ceo confirmed in annual shareholder letter that the Company Found a success per. He failed to reveal the identity of the person. It should be of note that vice chairman wrote in a separate letter that greg able both executives will most likely receive the job. Buffet joins cnbc for today. Still to come here on Worldwide Exchange. A landmark budget it moves to give more control to local government might stifle investment. Well speak to our next guest in a few minutes time. Preferial yields sink to record lows as the ecb gets ready to release the quantitative easing interview. Mario draj gi is the player in the market. Next year were going to see the qe evolve. Were going to see a bigger set of instruments being brought by the ecb as it continues, unfortunately, to be the only game in town. China steps up the quantitative easing measures as deflation their pressures continue to weigh on the manufacturing sector. India stops short of overhauling unveils a radical plan to june date the policies with 4 . Has samsung reignited the smartphone wars with apple . They unveil the most sleek phone yet make the play to the mobile payment space. Now were getting the u. K. February manufacturing pmi. Its come in at 54. 1. Thats the highest since last july. And it comes in against a revised number for january of 53. 1. The january number originally had been 53. 0 and the consensus expectations had been 53. 0 for february. Coming in at 54. 1 is a significant beat. The new export orders have come in at 49. 2 versus 51. 12. Thats a new low. Ahead of expectations. Weve also had u. K. Mortgage lending. The data coming out 1. 5 billion. Thats coming in versus 1. 7 billion forecast. As you can see sterling has reacted slightly positively ten down about ten basis points on the day. Mortgage approval edged up overall in january to the second monthly rise and a decent set of data. Particularly the manufacturing pmi. Lets have aing loo klook at european markets. Thats what were doing once again today. Weve got ftse 100 up. That is another fresh all time high. The dax around all time highs around a quarter of a percent today. Well across the 11,000 mark which continued to pull away from. France is just below. Italy is up 1. 6 as well as the u. K. Pmi. We had eurozone pmi earlier today which came in with line with expectations and a few individual markets beating expectations. That number was 51. The bond market because we see preferial yields hit record lows. The Bond Buying Program starts later this week pushing the yields to 1. 33 . The german yield last week of course, as we get closer to the start of qe did fall below 1. 3 . Its above that at 1. 34. We had the sevenyear yield in germany fall below zero. The 10year u. S. Treasury about 2. 1. It fell below 2 as some people took Janet Yellens comments as dubbish. Now moving on. Japanese firms increase spending on factories equipment in the period between october to december. Lets get more on the story. Joining us like from the nikkei in tokyo. Thank you. For all industries excludeing the finance sector ordinary profit, which is a metric commonly used in japan that is equivalent to operating income was up by 11. 6 increasing for the 12th consecutive month. Capital spending wasnt as bright. It rose 2. 8 on the year increasing for the seventh straight quarter. The growth was down compared with the previous. And this Capital Spending will be taken into calculation for the revise october to december gdp figures. Scheduled to be announced next week. The market consensus that the gdp data will unlikely revise much. If we look at the break down the Manufacturing Industry grew by 8. 0 or the nonManufacturing Industry was up by 0. 3 . This is not a positive sign for japan as a Service Industry accounts for 70 of the economy and over years low productivity in the Service Sector has been the major issue of discussion. Today Prime Minister abe stated that the government has raised it to one of the top agenda items. He also announced to implement a new barometer for measuring productivity in the Service Sector hoping to cultivate management and investment in new technologies. Thats all. Back to you. Good day. Thank you very much. Now indias finance minister has pledged greater Infrastructure Spending as he presented a 290 million budget to parliament on saturday. It includes a key promise to cut Corporation Tax to 25 percent from 30 over the next four years. Meanwhile Indias Central Bank introduced a new inflation target of 4 with a band of plus or minus two Percentage Points either side. The move which is being supported by the government marks a significant shift in the companys policy as governor tries to stabilize prices amid growth concerns. Joining me now to discuss india in more detail is edwin. Head of emerging markets at Asset Management. Good morning to you. Thank you very much for joining me. Lets kick off with a budget. We can come to the Central Bank Action in a minute. The Corporate Tax fell to 25 over four years. Is that important . Yeah. We think so. This is all part of modis make in india program. Trying to make india competitive and to enhance the competitive advantage visavis the neighbors in the region. Lets talk about not just the Corporate Tax change but a general tax change as well. Yes, they set a guideline that will be rolled out april 1st, 2016. In the meantime theyre dissolving some of the revenues to the states. And thats interesting. That is part of their pledge to have the states have more responsibility for their own spending, but, of course that comes with a risk and how wisely and efficiently the states will spend that. But the big picture is the bond that comes with the next fiscal year. Talk about the relationship between the Central Government and the state government. Its so important for seeing these big Infrastructure Projects which is part of the budget. Its important to see them enacted. Over the course of last five years even when Infrastructure Projects have been announced they havent been enacted. What gives you confidence that this time around the infrastructure announcements will be seen through. Its a risk. India is not alone in failing to follow through with the infrastructure plans. We see it as a problem in a number of countries indonesia and thailand included. At least with this budget we have more flexibility to pursue these Infrastructure Spending programs. And that flexibility comes from the reduction in fuel subsidize which is come about as a result of the drop in oil prices. Its a risk. Always is. But at least from a overall budget perspective they have more flexibility. And the fuel subsidize card as you mentioned was taken positively by the market when it happened a few months back. We didnt today see any cuts in some of the other subsidize which is you had hope for. Yes. Thats a bit of a disappointment. We see one, you know, youre going to be skeptical and cynics would say its because we have upcoming state elections and some rural oriented economies in india. And, yes, it could be the case. Thats the problem being the Worlds Largest democracy. Youre never too far away from a state election in india. Edwin, lets touch on that. The new delhi state elections were pretty bad for modis party when it happened recently. Why is that . Well, it was the Anticorruption Party that did very well. It is their strength the stronghold is new delhi. When you look at the detail its particularly the rural poor, the outskirts of new delhi. That could be part of the reason why we havent seen any mention of fuel and sorry food and fertilizer subsidizes in the past budget. Since the budget weve had some significant announcements on the Monetary Policy front. Is that a major change in your eyes . Well, no, i think its going to be a continuation. What youre seeing with rbi a gradual reduction of Interest Rate s rates that bodes well for the future in india. We have in the budget remarks of the transition toward informal inflation targeting. Details for that to be announced next year. It is promising. And india is joining the club of central bankers who is committed to driving inflation down to international norms. Edwin, thank you very much for joining us. That was edwin gutierrez. Now the mobile World Congress kicked into high gear with automakers showing how their cars play into the internet. Tech giant apple has been rumored to been getting in the auto game. Lets get to seema who is at the congress in barcelona with more on the topic. Seema . I love your discussion now around the annual budget in india. I wish i could be a part of it. It was interesting to hear your guests perspective. Were at mobile World Congress with 90,000 people here in the heart of barcelona. Discussing the opportunity of mobile and what is so interesting about this year as you highlighted its not just mobile operators and carriers that i are attending the conference. Theyre executives and leaders from the auto world. As we know the direction of the Auto Industry is going to change with the entrance of the likes of apple and google. The question is, will it steal market share from knee is anissan. I spoke to the head about that as well as specific markets does he see weakness in russia being a concern for the Company Going forward. Here is what he had to say. Nobody really knows exactly where the market is going to be in russia for 2015. We all know its going to be down. Now it goes from minus 20 to minus 30 , the month of january has been minus 25 which is the middle of the window. Its going to be tough in russia, and were preparing for a period of decline, which may go beyond the year 2015. At the same time this is also implication of the futures. Carmakers can localize their production. Theyll have an advantage. Theyll have a advantage on the short term and the longterm. We think we can really make this an advantage to our inventory. That was carlos ghon talking about the challenges that russia is is facing and how it will impact the country. Of course, the bigger question apple car, google car how does it impact established Companies Like nissan . Here is what he had to say about the proliferation of technology in the Auto Industry and whether that will be a concern or a challenge for players like nissan. You know its a lot of interest the fact many people not in the car industry are willing to get into the car industry. Somehow, the statement made by apple about the car is somehow has a sweet side of it. Because i remember when i launched the Mass Marketing of electric car in 2005 and 2016. Not a lot of people wanted to engage. Somehow i think its part of its interesting. Do you think with the likes of google and apple trying to enter the auto space, will that steal market share from the more established players . I dont think its going to happen on the short term. I think its much more the perspective in the mid to the longterm. But i dont think that there more technology could evolution into the car industry. Because generally, you know, when you deverse fie you move to areas that are more profitable than yours. Because youre always, you know your investment is competing between your business and your business. Car industry, unfortunately is not a extremely profitable industry. Its an industry that requires a lot of investment. Unfortunately doesnt have so much high return. I dont think its an area that is extremely attractive. Not very attractive for the hightech. Clearly maybe a partnership is a better opportunity. On that note lets say tim cook said we want to team up with nissan. Would you say yes . We work with a lot of Tech Companies already. I think its a question of you know what is in the Mutual Benefit . We, obviously, apple, google microsoft, intel, a lot of company are interested because they see but i think carmakers continue to be mindful of the important game. This industry dealing with the product lets talk about the battle of the dash board. Because we have apple, google blackberry trying to be the Central Operating system of the car. How do you see this shaking up . Well, you know, not clear for the moment. Not clear how its going to shake up. I think tough competition. A lot of technology coming. We know what our consumers want. We know that. Were going to be concrete about the benefits we are going provide. I think its going to be very confusing. Theres going to be a lot of competitions proposals, but we know what is the base for consumer benefit, you know, like in terms of connectivity, in terms of driving we know what we want to provide. How were going to provide it is a stale big mess. As you can see, inevitable at this point that Technology Players like apple and google will enter the auto space. But it still remains to be seen what kind of dominant role theyll play in the industry. Ill also follow up by saying that carlos said that nissan is still on track to launch the Autonomous Car by the end of the decade. It will redefine what the car will look like Going Forward. On that note another interview to look forward to on Worldwide Exchange well bring you the ceo of ee. Well be talking about the acquisition with bt. The partnership with bt and the roleout of ford gia across the country. What kind of opportunity will that be . Thats coming up next. For now back to you. Seema, thank you very much. We look forward to 0laf swantee. Well be back Worldwide Exchange in a couple of minutes. Its more than a network and the cloud. Its reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services all with dedicated responsive support. With centurylink as your trusted Technology Partner youre free to focus on growing your business. Centurylink. Your link to whanext. Welcome back. Lets have a look at the individual movers here in europe. One of the top gainers is up 4. 8 . Posted a 79 jump in net profit in the Fourth Quarter compared to the same period last year. They would also pay a 200 million cash euro dividend taking the news well. Tell come italia told the french newspaper that the two firms have been discussing a possible alliance saying it would be quote, an attractive consolidation opportunity. They denied any talk. But nonetheless the shares responding positively. Orange is down fractionally. And shares in france is higher after it agreed to buy the sfr stake. That announcement was made on friday during the earnings release. As you can see its trading down about 5 . There have been a number of broker downgrades on that stock. Mobile World Congress is not just about hand sets. The processfect of 5 g is stealing some of the limelight. It would cut down power demands helping expand battery life of devices. Seema moody is there. Seema . Hey, im delighted to say were joined by the ceo of ee olaf swantee. Thank you very much for joining us on cnbc. Weve seen major consolidation in the tel come space. When do you see the deal being approved by regulators . Its likely it will be approved by the end of the year. So this year will bsh but we expect to be with the beginning of next year. Still at lot of questions about what the deal will lead to. Youre a customer of ee. You heard that bt is buying ee. How will they change their User Experience . Its still early days. I cant tell you what new products will be coming out. We share a real vision about innovation. My expectations is and the expectations of the market should be we will have the best mobile products in the u. K. Well have great deals and more importantly, well have more products to offer to the same customer whether it is in business or in consumer. Talk to us about the rollout of 4 g. Youve been spending a lot of money to provide and the support and the infrastructure to roll out 4g. Will that weigh on profitability Going Forward . Well, today we have been able to increase our profitability to 18 to 25 until the end of 2014 and invested 4. 5 billion in 4 g networks. We have over 85 coverage and well just continue to roll out because theres any credible in the u. K. For mobile for smartphones for tablets, and for watching video and tv on the go. And that is driving the incredible demand. So we Just Launched yesterday the 400 Network Trial with 4 g. Thats just the start. Well continue to invest and make sure in the u. K. We always have the best 4 g network. As you have 4 g theres talk about 5 g. When will i as a customer be able to experience that . I think 5 g will be quite far away. 4 g, for the first time is a Global Technology that delivers on the promise of the mobile internet unlike 3 g. So 5 g is maybe 2020 and it really is going to be, you know a technology that builds up 4 g. In providing the mobile internet everywhere in even higher speeds. So as ee were working together with other players and universities to define standards and the products and technologies. Its a long way. I think with 4 g well still have the incredible exciting road map ahead of us. Do you think talk to us about regulation. Net neutrality a big discussion in the u. S. Tom wheeler surprising many about what took place with the fcc announcement. Do you believe more regulation is needed in the Telecom Space . I think first of all, we believe that everyone should have access to the internet. The second thing we really believe is that operators like ourselves. We should be able to differentiate the network. Already you have in the u. K. Nearly 50 of all new customers are opting for double speed 4 g. We want to maintain the differentiation. In the u. K. Specifically we have already adopt what we call a selfregulator regime. Were working with the others and with the others in the industry where we have a selfregulator regime around the topic. We dont need more regulation in this area. Youre talking about a networking sharing relationship between no. Its basically making sure that we have rules with each other around providing an internet to everyone in the u. K. Okay. Okay. Of course thats something i had to ask given its a big topic. Going back to what is happening in the telcom industry. Weve seen so many deals and massive consolidation. The fear is that you will have market dominance by two or three players and that will change the pricing power. Should we be concerned as a customer that will take place . Well, when we were allowed to merge orange and tmobile in the u. K. , we unleashed an Investment Program and we moved the u. K. From being a lagger in mobile networks to a leader. We now have 8. 5 billion customers. Consolidation can unleash innovation and investments. Thats thats what weve done in the u. K. 5 g requires a tremendous amount of investment. If we want to stay ahead in europe if we want to stay ahead with the networks we need to have that money available. I think consolidation can help in that regard. Now it is about the u. K. Im confident that customers of btne will have great deals. Olaf swantee, ceo of ee. Thank you. Back to you. Seema, thank you very much. Stay with me for a second of course, because i suppose the biggest story of all at the mobile World Congress so far has been samsung announcing the latest generation Flagship Smartphone which was the new s 6. It will come in two versions. The standard version and a higher model with a 5. 1 curved inch screen. Have you had your hands on it . Does the curve screen allow it to stand out against other android phones . Im glad you asked that question i have it right here for you. Here is the s6 edge samsung phone. The most visible feature being the curved screen. Im not sure if you can see it now. As you can see, it has the curved screen which many people are excited about. You can also if you see here you can drag your finger and pop up the top five contacts. Its a great way to basically get the top five you talk to easy access and call them right away. In general its glass on the front and back. Its a 5. 1 inch screen. You have a front and rear camera. 16 megapixel camera. A lot of features samsung is boasting. Will it be a gamechanger for the company . It has been a challenging time for samsung given the entrance of new players android power vendors with the like of china and india. And the success of the iphone 6. Thank you. It looks great. The question as you say, i wonder being android against Apple Ecosystem will it be a gamechanger. Thats the question we want to ask you viewers today. Join the conversation on Worldwide Exchange. Email us or get in touch by twitter. And still to come of course coming up weve got more from the mobile World Congress including an interview with mark. That will be a few minutes time. Hello and welcome to Worldwide Exchange. Lets give you some headlines. Has samsung reignited the smartphone wars with apple . South korean tech giant unveils the phone yet. Apple hasnt approached it about a connected as rumors swirl. The tech giant is getting into the auto giant. Ceo tells us it may not be a smart move. But i dont think that would enter the car industry as such. Entering more Technology Ev reduce into the car industry. Global markets continue to march higher with u. S. Futures indicating a positive open. Coming up we asked where he sees opportunity as he joins us for three hours. Russia without putin. Ten of thousands of russians take to the streets of moscow to born Opposition Leader Boris Nemtsov following his assassination on friday. Were going to data out of the eurozone. The preliminary reading for february inflation is minus. 3 . Its a previous improvement from the previous month and slightly better than consensus. But its still in negative inflation territory. Nonetheless, the euro has strengthened off the back of that 11213. Were back in the 112 handle. Weve been in the 111 handle since last thursday. Were. 2 on the day. We have january unemployment. Thats come in at 11. 2 compared to a revised figure of 11. 3 in december. The previous figure for december was 11. 4. So fractional improvement in unemployment at 11. 2 and a decent improvement in the inflation outlook. Though still below zero. You can see the euro as i said recovering positively off the back of that. Now lets have a look at what to expect for u. S. Markets today. Futures are pointing at the moment to a positive open. If we have a look at the futures when they come up. Were looking at a slightly positive open after, of course last week we saw markets end once again near highs. All though it was a low for the dow and s p which snapped a three week winning streak. The nasdaq was up for the fourth week in a row. And is only 37 points away from 5,000, as you can see at the moment. The implied open is up 14 points taking it closer to 5,000. We not quite that to level. Were expecting a positive open for u. S. Markets. Lets have a look at european markets as well. They were particularly strong in february. Stoxx 600 up today. Were up again but only slightsly. The ftse 100 is up 1. 36 . We have germany up a quarter of a percent around all time highs. France is below flat. Italy is up a half percent. Lets look at bond market. The italy 1. 32 . The ecb Bond Buying Program will kick off later this week that kept yields at low levels. We have the german yield below that. The u. S. 10 year is just above 2 as we look at things today. Weve seen the euro weaken over the last three sessions as we get closer to the start of Bond Buying Program. Also, we had a decent data out of the u. S. At the back end of last week. Thats part of the euro at 112. 12. It was as i said just below 112 until we got the data terms of inflation. 3 . As we look at it the aussie dollar slid today. Lets have a look at commodities. The oil prices slid significantly earlier today on the supply fears and a little bit with chinese pmi slightly beat expectations. Wti below 50. Brent at 62. 2. Now lets get to seema once again who is live in barcelona for the mobile World Congress. Hoping to win over emerging market with the operating system on flip and slide phones. Seema is about to talk to someone important from that company. Over to you. Hi. Absolutely. Were seeing 90,000 people here in barcelona attending it to talk about the latest and greatest when it comes to mobile innovation. As weve been talking about its not just mobile carriers that are here. There are individuals from the Auto Industry. The consumer packaged industry as well as those promoting internet innovation. That has been a topic over the past few weeks. Given Net Neutrality rules being allowanced. Were joined by Mitchell Baker head of mozilla. What are your responsing to the Net Neutrality . I think its a great step forward for the internet and maintaining opportunity for all of us to try new ideas. Do you think the regulation the ruling will change Going Forward . Yes. Because we were beginning to see access providers start choosing which traffic you could see or which traffic you can see quickly and what would be slower based not only what you want but the business arrangements. And that destroys the basic premise of the internet. Talk about why youre here at mobile World Congress. Mozilla foundation. You work closely with them. Our main goal to bring the kinds of openness and flexibility and possibilities that the worldwide web gave us of all to the mobile environment. Its the new computing era. We want that same freedom. And fire fox on the desk top helps. Youre focussing on emerging markets. Many people are saying that africa is the next emerging market and it is a big opportunity for mobile operators. Yes. Were focussed on the part of the world where people havent yet touched the network, the internet, or the worldwide web. Because when people come online for the first time we would like to provide a broad experience. Everything is possible. And were excited to announce our new partnership with orange which will be shipping fire fox os phone and starting in 13 countries in africa and the mideast. Its an innovateive idea. Its a six month data package at 40. Trying to bring it to people who havent had the opportunity before. What are some of the challenges you are facing with this new partnership entering africa which is an exciting opportunity but a foreign market . Yes. Challenges and opportunity goes together, as you know. One piece is local contact. And for us thats pretty good opportunity. Were a Software Hardware not hardware but phone vendor. We have change of communities around the world. Volunteer communities who are engaged in our nonprofit mission. We have a steady beginning for people dedicated to the content and engaged in technology. How do you ensure that every internet carrier out there, internet player like google yahoo have a fair sure or presence in a developing market like africa . First of all, in sharing everyone has a fair share for google and microsoft. Im not sure thats something we alone can accomplish. What we try do is make sure that all developers including the small ones have a fair share. So we try make a level Playing Field for businesses to innovate and compete. We do it by being open. Our ecosystem is open. We allow developers to build whatever they want. We allow the carriers to build the service in this case want. We try to be the neutral platform that businesses can compete on and consumers can enjoy. Thats interesting. What do you have to say about Mark Zuckerberg internet. Org project and what theyre trying to do in africa . There are a lot of challenges as well as opportunities. I think the question of how we provide access and data to people as well as hardware and software is unanswered yet. And zero rating is one idea. Maybe Baseline Services for whatever content you the user want is another idea. The exploration are important. I dont think we have a clear answer yet. Something well hear more about Mark Zuckerberg. His keynote tonight. Thank you for joining us. More interviews for come. Back over to you. Thank you very much. As you said more to come from mobile World Congress including an interview with the president of catalonia artur mas. Also, head to cnbc. Com for more on the special Tech Transformers special at the mobile world conference including a 7 smartphone. Check it out and more online. Now lets take a look at todays other top stories. The latest of the hack attacks has come out and this time its a ride hailing app uber. A security breechach occurred last spring but they didnt find until november. The breach may have disclosed as many as 50,000 drivers names and license numbers. The popular app that lets travelers book homes and rooms is looking to raise around funding of 1 billion according to tech crunch. The funding would value the company around 20 billion. Higher than many of the leading Hotel Companies across the globe. Now who will take over for Warren Buffett . The billionaire hints at the success plan. Well be asking him himself. Hes on cnbc for three hours later today. Stay tuned. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Welcome back. Lets give you headlines. U. S. Futures point to a higher open after markets in europe touch all time highs. Warren buffett hints to his successor. Hell make an appearance on cnbc today. Samsung unveils the new mobile at the mobile world conference in barcelona. Now it seems Warren Buffett has a plan for his company when the day comes that hes no longer heading it. The ceo confirmed that his annual shareholder letter that the Company Founded a successor for him. He failed to reveal the identity of the person. It should be of note that the vice chairman charlie wrote a separate letter will most likely receive the job. Buffett joins becky for a special edition of squawk box today. Lets give you a run down what to watch out for. At 8 30 a. M. Eastern well get a look at Consumer Spending number. The consensus for personal spending is a gain of. 4 . Then at 10 00 a. M. Well get the ism manufacturing data tap. The consensus there is for reading of 53. Any level other 50 signifies growth. There are a few earnings to keep an eye out for whichsothebys, Palo Alto Networks and caesars. Brian, good morning. Thank you very much for joining me. Good morning. Weve been looking at the reaction from last weeks testimony from janet yellen and the bond market interpretation was an odd one. Yields come back below 2 . Were back above 2 . And most people expecting a rate rise this year. Where do you stand on the debate . Well i think the fed believes they going to be able to tighten sometime in the second half of the year. We know its coming. Theyve been letting us know for over a year its coming. But the funny thing is that february set a record for new Corporate Bond purchases. Credit investors after a scare in january because the fall in oil prices stepped up to the plate massively and we shattered the record for february. We know that higher yields are coming and investors are prouding under the Corporate Bond market. Lets talk on the record issue in february. What is driving that . A bounce back from the lows in january . What is driving it our nations pensions need to make 7. 5 percent. Thats an outrageous number. It doesnt matter whether the fed is at one, two, three, four. 7 compared to normal rates is incredibly high. The pensions after the detroit bankruptcy are bringing in more money to try to get to the funding and that means theres not enough bonds to go around even though theres a record amount of bonds outstanding. And so, of course we had a correction in october. We had another correction in january which probably put off some bond purchases. Can we expect more constructions to come from what can we learn from the bond market for the equity market . This bond market is approaching the sixth anniversary this week. Its been a regular feature every two months to have a panicking correction. If the fed tightens when they do theres going to be a correction. Whenever the fed begins a tightening cycle theres been a correction. The other thing that can cause a correction is if oil prices wti specifically breaks down below 44. Ive been on this program for about two and a half years saying ive been an equity bull and commodity bear. Oil prices have bounced a little in the last couple of months. Were in a bear market for commodities. We sub prime and wrapped them in the same packages they did for sub prime mortgages in the last cycle. Once those structured deals unwind that asset class is down. So i think there is going to be at least a couple more corrections ahead this year alone. You talked about the Corporate Bond market seeing a lot of strong demand. What about in the energy space. Should we be shorting the bonds given your view on the oil price . Well theyve already their yield has already been hit. I cant say what people should do. But i know on the professional side the institutional side people have viewed this as a buying opportunity. They have poured a lot of money into high yields energy bonds in the last two months. They put a lot of money into oil futures. And if we break 44 on the wti contract, i think a lot of that money is going to be scooped and youll have another correction. And what is your view i would rather be anywhere but energy. What is your view on the u. S. Dollar. Gave up a little bit of ground after janets first day of testimony but strong particularly against the euro. Is it on a upward path . Ive been kind of making fun of the fact that almost every central bank in the world is lowering rates at the time when the fed thinks theyll be able to tighten rates. When you have other rates coming down and the u. S. Rates going up it leads to dollar scrapped. Brilliant. Thank you very much for joining us. Now still to come on worldwide exchain. Indian whys budget may not have the big bang investors were looking for. Is mod i dids longterm program . 80 of the poor in africa are rural farmers. 96 of them are doing rainfed agriculture. Theyre all competing with each other; theyre all making very low margins making enough to survive but not enough to get out of poverty. So kickstart designs low cost irrigation pumps enabling them to grow high value crops throughout the year so you can make a lot of money. Its all very well to have a whole lot of small innovations but unless we can scale it up enough to where we are talking about millions of farmers, were not going to solve their biggest challenge. This is precisely where the kind of finance that citi is giving us is enabling us to scale up on a much more rapid pace. When we talk to the farmers and ask them whats the most important thing. First of all they say we can feed our families. Secondly, we can send our children to school. Its really that first step that allows them to get out of poverty and most importantly have money left over to plan for the future they want. Heroes charge explosion explosion explosion lead your heroes in the hit mobile game download heroes charge now indias finance manager presented a 290 million budget to parliament on saturday. It includes the key promise to cut Corporation Tax to 25 from 30 over the next four years. Meanwhile Indian Central Bank introduced a new inflation target of 4 . The move which is being supported by the government marks a significant shift in the countrys Monetary Policy as governor tries to stabilize prices amid growth concerns. Lets get out for a further perspective on this development. Jeff and hadley are live in abu dab by. Welcome back and this global Financial Market forum were attending here. I have to say india is not far away from anybodys lips at the moment when you talk about emerging market opportunities. This economy is still enjoying the modi effect it seems here. Some say the budget didnt go far enough i think theyre prepared to give india the benefit of the doubt. And there reforms on the table. It might be longer than many people expected from him. We talk about the modif iing of india. We spoke earlier in the programming day here to Goldman Sachs Asset Management and this was a question for her. Were in a part of the world where Energy Prices are having some impact and reducing the attractiveness of some Oil Producing economies. Should be a beneficiary here. Lets take a listen. It is a time of divergence in emerging markets. Were looking specifically at the china, at the india. You have to take a look. Theres been lots and lots of disappointments over the years. But were at a interesting time in both countries. Ill focus on india specifically. With an average age of 26 it has such an amazing demographic boost where so many other countries have head winds. Modis reforms seem to be catching the eye of Global Investors and taking hold. There are huge opportunities ahead even in the differential between china and india. India is probably where china was in the early 2000. Do you think we might have seen more here on the budget it could have been more quickly . I think people look for the big bang. To some extent the boil the frog approach may make more sense in india. When i look at the moves in this budget particularly some of the underlying currents toward infrastructure, the spends that are planned, the support for the states, i think there are some elements in there that definitely go toward the longterm growth. Thats what they have to focus on. Not a big bang that makes Global Investors sit up. That was earlier on and just talking about the benefits to india where we are on the energy price. Youve been catching up with all sorts of people here and trying to find out what theyre doing around the challenges of lower Energy Prices. I know you spoke nigeria. He was quite positive. One of the reasons he was positive right now nigheria is not getting any money from the government because of what is happening with oil prices. One area theyre positive about is the infrastructure development. Thats because real estate prices have come down because the oil prices. He was telling me theyre expected to do at lot of investing this year. Thats mainly because of where the oil prices today. Yep. There you go. There are those here who feel that the opportunities to as a result decline in the energy price. I think the message from the headline Asset Managers remains look for the net beneficiaries of a reduction in this tax on consumption effectively in india. Its one of those that should do well here. Plus you have the modi story running alongside it. Back to you in london. Thank you very much for that. Now still to come here on Worldwide Exchange. Lots more from the mobile World Congress in barcelona. Including an exclusive interview with the president of catalonia. Well be talking about his ambition from independence from spain. The nasdaq just 37 points from 5,000. As we look at things expected to close 15 of those. Well be back in couple of minutes. Welcome everyone to Worldwide Exchange. Im seema moody live here in barcelona for mobile World Congress. And im willfred here in london. Global markets continue to launch higher with u. S. Futures indicating a positive open after a record february on wall street. Coming up we ask warren buffet where he sees opportunity as he joins u. S. Squawk box for three hours. Merger monday is back with nxp agreeing to buy in a cash and stock deal valuing the combined company at over 40 billion u. S. Dollars. And samsung reignited the smartphone wars with the s 6 and the s 6 edge. And apple has not approached it about a connected car as rumors swirl. The tech giant is getting into the auto market. More from carlos coming up on Worldwide Exchange. To the longterm. But i dont think that will enter the car industry as such. Theyre entering more technology into the car industry. If you are just tuning in. Thank you for joining us on Worldwide Exchange. Lets take a look how markets are expected to fare in the u. S. Today. Were looking at a positive open. A small positive open after last week we saw the dow and the s p end lower for the first time in three weeks. The nasdaq did push higher for the fourth week in a row and it stands 37 points away from the crucial 5,000 mark. At the moment, the implied open it suggesting it will close the gap of 14. 5 of those 37 points. Lets have a look what markets are doing here in europe. February was a strong month for europe. We had the stoxx 600 closing up the best part of 6 . By the end of last week we started to pause for breath. Were slightly positive but nothing too significant. We have the ftse 100 up. 3 . It is touching another alltime high today. The dax up the same amount and touching new highs. France is down. 2 . Italy is up just under a half percent. Lets look at bonds. Weve seen significant moves in the bond market ahead of the start of the Bond Buying Program which comes later this week. And weve seen it hit 1. 32 a record all time low. The greek low back around 9. 7 . Its below 10 continues to be elevated compared to the rest of europe for obvious reasons. Germany at. 2 . It is now just above it. And the spanish yield 1. 24 . Lets have a quick look at what asian markets have done because we, of course had the budget out of india which pushed the market higher. We have a percent of gains in india on saturday. A special trading session because the budget was being announced and continued up. 3 . Were looking at thailand down. 3 . Weve got china up. 8 . Thats benefitted from the rate cut 25 basis points rate cut down to 5. 35 . It follows the 40 basis point cut in november and the triple cut we last month continuing to try spur growths. Australia benefitted from that. Thats up. 5 . How can investors make money in the market . Here is what the guests have been telling us this morning. Ting has room to go. I also think that specific areas in energy for example, that overshot as the paradigm has changed. I think as i mentioned earlier the currency trade the dollar has started to go. Its not going to be linear. I think its a much bigger question which is as we go through 2015 were no longer looking at a normal distribution. Looking very specifically at the china, at the india. You have to take the look. Theres been lots and lots of disappointments over the years but were at the a interesting time in both countries. India has amazing demographic boost. Modi modi modis reforms seem to be catching the eye of Global Investors and taking hold. There are huge opportunities ahead even in the differential between china and india. Everyone thought the oil price would drop. It goes up. I cant turn around and immediate ly immediately spend the tax benefit ive been given. I think thats a little bit of a lag. If Oil Prices Stay where they are, its a big consumer benefit. Greek Prime Minister he accused the two governments of leading a conspiracy amid fears of antiausterity forces. Lets get to seema at the mobile World Congress in barcelona with special guest. Seema . Thank you very much. As you know spain is one of the oldest nations in europe but given financial and economic here in europe and here in spain thats given rise to new leaders who are promising better times ahead and leaders here in catalonia feel theyre better off as an independent nation to get more about this if it will happen. Were joined by catalonia president artur mas. Thank you for joining us. Help our audience understand what does a separate catalonia from spain what does it look like if it happens . Well, if it happens, that will mean that the majority of the catalonia people want to have an independent country and to feel our own state for the future. This is not the real point nowadays. We dont know if it exists or not. Before we have to hold a specific referendum for that. There are questions that remain if a Economic Policy look like if catalonia is an independent nation. Help us understand what it would look like. In this sense catalonia would probably be comparable to austria or denmark. Denmark has a more of a population then catalonia. Austria the same thing. And both austria and denmark are a outstanding countries from the economic point of view. Catalonia could be at the same level. An open economy, as you can see today with the mobile World Congress foreign market reenter the economy. Thats the real situation of catalonia. Both cutting edge innovation and research system. One of the issues were of the big challenges spain is dealing with now is high unemployment. Thats right. We have high unemployment nowadays nowadays. How would you address that . How would you address the jobs situation . Were now underway to recuperate new jobs in catalonia. If we we would be independent we would have more and legal capacity to make decisions. And this is what you can do for your economic structure of the country country. What would you say the rise for support for indeponent catalonia is only adding to the Political Uncertainty and stopping spain from achieving economic success . I would say that that is not try. Spain is doing better from the economic point of view. In fact the economic recovery is right here we have suffered six or seven years after a Strong Enterprises but now were clearly overcoming the difficulty with the situation. And catalonia can help not only can help spain but all the countries of southern europe. In fact catalonia economy is the most open one. If you separate from spain wouldnt you take the growth away from the country . Why . Spain is also an important factor in the economic point of view. Catalonia makes up 19 . Im sure that pain is perfectly able to do a good job in the economic field in the next years. Even in the days if catalonia becomes a new state. How are you spending the next couple of months ahead of the election in september . As you know were trying to negotiate with a central Spanish Government an agreement to hold a referendum on independent catalonia. The central Spanish Government said no theres nothing to talk about. There is nothing to negotiate. There is nothing to agree. After that we tried to pass a specific law. There was a Central Government they blocked our law. So now we have only one way. Elections. This is what im going to do. Snap elections in september is to know the opinion of the people about the independence process. Well be waiting to hear and to see what your voters end up voting for. Thank you very much. Have a good time. Thank you so much artur mas. Thank you for that. Lets take a look at todays other top stories. Merger monday is back with two Semiconductor Companies agreeing to join forces. And xp will join with smaller free scale. That values free scale at 11. 8 billion. And xp is based out of the netherlands and reported revenue 5. 7 billion last year austin texas based free scale had net sales of 4. 6 billion. Nxp and free scale are trading differently over the course of the news. Now three of the highest ranking execties at citigroup could be asked to step down if the bank fails to pass the next stress test from the federal reserve. If it were to fail again, they could face pressure from investors. Still to come on cnbc. Warren buffet is at it again. A future successor to Berkshire Hathaway. Who will the person be . The story up next. The future of the market is never clear. But at t. Rowe price we can help guide your retirement savings. Our experience is one reason 100 of our Retirement Funds beat their 10year lipper averages. So wherever your longterm goals take you we can help you feel confident. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Xkc warren buffet wont be able to run Berkshire Hathaway whoever. Who is next in line as his successor . Morgan joining us with the story. Hi. As hard as it is to imagine, there is going to be a day when warren buffet is no longer the head of Berkshire Hathaway. All though we dont know the person now. We know there is a choszen one. He reiterated that the company has a name in mind and its not willing to reveal the identity yet. Buffett stating the board and i believe we now have the right person to succeed me as ceo ready to assume the job the day after i die or step down. If youre looking if are hint look no further than choice chairman charlie monger. Suggesting that jane an insurance executive at the company or greg able are most likely to receive the job. His future successor wasnt the only thing buffett laid out in his letter. He took the time to endorse one of the planets Fastest Growing start up which is eyeing a new funding that will value the company at 20 billion. The berkshire Shareholder Meeting taking place later this year. If they cant find a place to stay in omaha. They are making a special effort around the meeting. Make sure to stick around for squawk box to hear directly from mr. Buffet himself where becky will be live in omaha with him. Cnbc world headquarters. Back to you. Thank you very much for that. Now the latest of the hack attacks has come out. This time its ride hailing app uber. A Security Breach occurred last spring but they didnt find out until september that an Unauthorized Third Party access third records. The breach may have disclosed as many as 50,000 drivers names and license numbers. Lets remind you of the headlines. U. S. Futures point to a higher open after markets in europe touch all time highs. Warren buffett hints to the success success plan. Samsung unveils the new phone at the mobile World Congress in barcelona. Heroes charge explosion explosion explosion lead your heroes in the hit mobile game download heroes charge now lets have a look at u. S. Futures. As you can see theyre pointing to a positive open. The dow and the s p ended lower last week which was a snap for three weeks of gains before that. But the nasdaq continued for the fourth week of gains in the now 37 points from hitting the 5,000 level. Its expected to open up positively by about 15 points today. Lets give you a run down what to watch for the rest of the trading day in the u. S. We get personal income and Consumer Spending numbers. At 10 00 a. M. Well get manufacturing data. The consensus there a reading of 53. There are few earnings to keep an eye on today. Lets discuss the u. S. Markets a bit more with the chief market strategies. Todd, good morning to you. Thank you very much for joining us. Of course, as i mentioned the dow and the s p ended slightly lower last week. But were still near record gains. Are we losing a little bit of steam in the short term . Good morning. You know, i think when you look at the big picture, we are losing a little bit of steam but what we see more importantly is a drying up of volatility. Weve seen a drying up of volume. Weve seen a dryup of overall interest. As these World Markets continue to fight the currency war and try to push their currencies down to the bottom yes, there is an interest in the equity market. Thats right now the only place that you can go to get any yield on your money. But we are starting to see some slow down. We have a huge week this week for data. I would look for the market. As long as they stay thin i would not be surprised to see them tick higher. I wouldnt be surprised to see the nasdaq make a run at that all time high made 14 years ago. As you said such an interesting choice of where you can find yield. We did see the bond market yield below 2 after Janet Yellens testimony but finished the week back above 2 again. Did her testimony change your expectations at all when well see the first rate hike . Well, you know, i know i never thought and i dont think they can raise rates for right now under the current circumstances i dont believe they can raise rates for at least a year. The real problem is not our rates anymore. The real problem is the fall you raise throughout the globe which make the spread so much wider that raising rates here would be really a very bad thing for the entire global economy. It would immediately put the United States into a deflationary scenario because what would happen with raising our rates our dollar would go through the roof. Were already on 13 year highs in the u. S. Dollar. I think theres no way they can raise rates. What theyre trying to do now with the manipulation of currency here theyre trying to do the two step maybe well raise them and maybe we wont. At the end of day, theres no way way they raise rates any time soon until the rest of the global economies start raise up. We saw last week germany going to negative rates on the five year. We see jpmorgan in this country charging institutions for holding money. So thats a very ugly scenario. It does not lend itself well to raising rates any time soon. And finally the nasdaq 37 points from 5,000. Will we cross the market this week . You know, i think that the nasdaq again, as i said earlier. I think the nasdaq will probably chest the all time 14year high. I think it could cross it today. You know the markets are so thin. It wouldnt take much to push them forward. And the tech center. This time up its not different. I think were a little bit over value. This time Going Forward all the companies the nasdaq can have real earnings and it looks strong here. I think the tech sector overall looks solid and theres probably some great opportunities. Theres probably also a bunch that are probably a little bit bryce pricey here. Overall it looks pretty good. Todd thank you for joining us. Much appreciated as ever. Now the mobile World Congress has kicked into high gear with automakers showing how their cars play into the internet of things. Apple has been rumored to be getting into the auto game in recent weeks. Lets go to seema at the conference in barcelona. What have you been learning in the particular space of tech and auto . Well, inits inevitable that technology will transform the direction of the Auto Industry. The question is what kind of meaningful role will the players like google and apple play in the Auto Industry and should established automakers like nissan be scared or worried about the competition from likes of apple and google. I posed the question to the head of nissan who was outspoken about the future of the Auto Industry. I dont think is going to happen on the short term. I think this is much more a perspective in the mid to the longterm. I dont think that would answer the car industry as much. Theyre entering more Technology Evolution into the car industry. Because generally, you know, when you diversify, you move to areas which are more profitable than yours. Youre always, you know capitalizing on the investment is competing between your core business and your business. Car industry unfortunately is not extremely profitable. It requires a lot of investment. Unfortunately it doesnt have so much a high return. I dont think its an area that is extremely attractive. The man widely credited for changing the Auto Industry says apple car, well not so fast. Well see if hes right about that. Ly also say i asked him about the antonymous car if theyre on trend to deliver. He said yes at this point. Thank you very much. Before we let you go lets have a quick chat about samsung. It has unveiled the next generation Flagship Smartphone. And the big question is can it boost samsung share price in the way that the iphone 6 did for apple . The jury is out about whether samsungs newest phone the s 6 and the s 6 edge will be a gamechanger. I have to say from speaking to individuals here theres a lot of excitement about the features that the s 6 encompasses. A lot of people are saying its an evolutionary move by samsung not revolutionary. And interestingly theyre both models of the new phone are the same size. They havent done the screen different size that apple did. Right. Pricing is still something that were trying to get more clarity on and just of course the size of the phone thats not really something that people over here are talking about more about the curve screen of course and if it is more if its a gimmick or it will enhance the User Experience. Seema, thank you very much for that. And for all the Coverage Today from the mobile World Congress in barcelona. To get more on all of those stories head to cnbc. Com. Our tech special at the moble World Congress is up online including the looming battle of Virtual Reality technology as htc squares off with facebook. Were pointing to a positive open today in the u. S. It has been a negative week last week for the dow at the s p. The nasdaq did end up for the fourth week in a row. Were expecting a slightly positive open in the u. S. Today. Thats it for todays show here on Worldwide Exchange. Up next Warren Buffett is on u. S. Squawk box. Stay tuned. Good morning everybody welcome to squawk box live from omaha. Were at the National Indemnity company lunchroom. This is a company that Berkshire Hathaway purchased 40 years ago. This is where berkshire held the first annual meeting in omaha in 1973. You want to talk about humble beginnings, were sitting with the same table that was here those years ago sitting on the same chairs and looking at the same vending machines that are here as well. Our special guest today is the man behind it all berkshires chairman and ceo Warren Buffett. Thank you so much for joining us. Thank you for coming. I know this is 50 years since Berkshire Hathaway has been under your control. We have a lot well be talking about with that this morning. Well do it day by day. We will. 50 years its coming. We have a lot to talk about in a moment. By the way, you reached out across many social media platforms. Warren is ready to answer your questions. First, before we get to that joe and andrew are back in new york. They have a round up of the days top headlines. One day at a time. Youre right. We have the bro mans happenmance happening. I dont know why you havent taken beckys