Galaxy s6 but may not be able to keep up with demand. First Quarter Sales beat expectations driven by growth in latin america and its home markets. Nsh nsh. Hello its friday. Lots to talk about today. Good morning. How are you . Fantastic. Always good on a friday. I know. I know the feeling. Been a good week. Been a fantastic week for asian markets. I know. I cant believe all the new highs were hitting and whether or not its going to continue and our colleagues on squawk were talking about whether there was a bubble going on lead by some of the comments out of asia and the finance minister talking about that and whether you can contain a bubble in general. He said we welcome a small bubble. Have you ever heard an economy minister say that . I dont think that would happen here in europe. No but then you get into the definitions of what is a bubble right . And werent you mean an actual bubble or whether or not you mean that things are growing. Were looking at a market environment where weve had gains for the last months. Is that a bubble or recovery. Speaking of markets, lets look at the asian markets. The shanghai composite high by shyer than 2 but we had a real run heading into the year. So it closed above 4,000. A high that was last seen back in 2008. The nikkei meanwhile, breaking through the 20,000 level for the first time in 15 years and theres hopes that larger shareholder payouts could be seen in consumer demand. The economy minister said that hes not worried calling the small stock market bubble manageable. The hang seng continued its week long rally though. Gains moderated from yesterday. Chinese investors have been piling in as the Shanghai Hong Kong stock opens up market access. Brokerage companies are leading the way with securities shooting up 40 in its trading debut today. Lets talk more about chinese equities and if they have further to run. Charlie audrey is the fund manager at Henderson Global investors. Weve seen all the mainline investors piling into hong kong shares. Can that continue . If we see more of them piling in valuations are going high too. Good morning. Thank you for having me on. Yeah i think it can continue because they have quota to use and its only this week that those southbound investors started to use their daily limit of what they can buy. I think longer term it makes the Hong Kong Market more volatile which is probably going to mean i get less sleep but more and more investors into that market for sure. Yesterday we were talking to steven roach and he observed that taxi drivers are buying stocks in hong kong and china. What is the competition of those buying both chinese mainland shares . Is it the mom and pop investors or Retail Investors or smart money, institutional investor. If you look at the volumes being traded what you can clearly see is theres more participation not just from the mainland ib vesnvestors but everyone else. Those are foreign Institutional Investors ourselves. Theyve been closing in underweight positions and hedge funds covering shorts and getting long and hong kong Retail Investors. Your point about securities being up so much on day one, that illustrates to you that Retail Investors are back in the Hong Kong Market for sure but quantifying that is quite difficult. Charlie, hi, there are a lot of people speculating about the connection between being a broader part of the msci index versus not. How much further investing do you think well see if the links with the msci index, if thats increased. Good morning, hi, yeah. Thats a good question. Theres really important practical issues around that. Im not sure how all the passive markets will be able to access this and whether that could be a hindrance to them being included in the index. Thats something for them to think about but longer term if you take a five year view theres a very real chance that shanghai shares will be in the emerging market index and theres examples of this happening in the past for example like taiwan many years ago. And charlie, just to carry on with the discussion you were talking about the difference between Institutional Investors and the mom and pop investor the flows, were following closely the flows of money from the u. S. Are you seeing these levels being hit now . Is it because were recovering from such a low base rate or are you actually seeing real new money flows entering into the market. Its an interesting question because if you look at some of the day athe on specific fund flows into china funds you actually see through the tail end of last year and this year net redemptions which seem to be to do with massive funds invested in the asian market but if you look at volume in hong kong theyre at record levels this year. That shows more participation across the board. Thats showing increased participation from i think, all types of investor. Charlie, good to see you. Thank you for being with us. Charlie audrey Chinese Equity Fund managers at Henderson Global investors. And a steady reading for chinese inflation this morning but analysts are concerned prices should be set to fall. Should we be waiting for more stimulus. That cpi rate was flat on the day and that tells you they have plenty of room to move. Now in celebration of this weekend were asking viewers if Global Markets were a horse race where would you be putting your money . If you want to join the conversation on Worldwide Exchange feel free to get in touch. Find us on email at worldwide at cnbc. Com or find us on twitter as well at cnbcwx. Our personal handles also appear appearing on screen. Were both on twitter as well. Lets have a look at narcotics. Its friday and were seeing a valley. The stocks europe 600 up higher than 1 . The dax hit a record high half an hour ago. The ftse not too far away from its record high. Sentiment has gotten a boost, in part, because of better data out of germany and the smaller than expected rise in jobless claims. The dax another record high higher by 0. 6 . The ftse by third of 1 and were seeing broad based ones as well. We also got production data this morning and thats better than expected in france and spain. Looking at the bond market very interesting action in the u. S. Yesterday we saw yields going higher quite a bit. Currently just below the 2 handle at 1. 95 . It was because of the better number in term of the jobless clal claims but the ten year german yield record low 0. 153 and the 10 year italian at 1. 243 . Thank you qe. Lets have a look at the currency markets. Another fresh three week high for the u. S. Dollar and the euro is down against the u. S. Dollar. Were off by a third of 1 . This year the eurodollar pair has fallen by 2. 5 . At the start of the week we did see trading so that has played a major part here. In terms of cable, pound against the u. S. Dollar down by 0. 2 but what we did see yesterday was the spike in volatility and that has got to do with the he election in about 27 days. Dollaryen lower by 0. 2 . Oil prices once again under pressure. Wti by 1. 2 . Brent crude off by. 3 . Brent and wti are on track for a 3 rise. Its hard to believe given every day we seem to be he seeing those declines and lets talk a little bit more about am. Indeed. Its a big day. The apple watch is finally here. Customers have been lining up to get a first glimpse of the new product. Its available to preorder today and potential customers can tryon the device at selected apple stores and some High End Department shops around the world. The smart watch will only be available for actual purchase on the 24th of april. Seema is in london. Seema, i mean its exciting. Hello. What are people saying because the reviews are slightly mixed, no . Reviews have been mixed. So far we have been speaking to a couple of customers that have been waiting outside to get in. Doors just open at 9 00 a. M. To enter the High End Department where apple is show casing its apple watch. Theres three different collections. It starts at 349 one. I had an opportunity to wear the 549 apple watch. Its trying to be high fashion. The queen is can it penetrate this highly competitive market . Just steps away is rolex, cartier. All the brands youre familiar with. This is apples attempt to establish a footprint into this market. Can they really do so . Customers are excited. They want access to the apple watch. They want to be able to wear it and see how it looks on their wrist. Thats the big question and what theyre trying to achieve here but what is interesting from the customers we have spoken to so far those that are here are saying were going to walk away today with an apple watch. You can preorder the apple watch. It will then be delivered by april 24th. A lot of excitement but this is a crowded market. A lot of the high end players as well as tech peers also in this space. So it will be interesting to see if am can clear its path way and hold on to this market. It can be a big opportunity for the company. Expecting 4. 4 billion in sales in 2015. Expected to be billion in 2016. We havent seen anything like this since the ipad launch. First new product category in five years. Exactly. Well be checking with you throughout the morning and the day. Much more to come from seema. Coming up here on the show we have a new name for the show. Do you know that . What is it . Slime slug slosh. They were suggesting that we call the show that. I cant say it. So here on slime slug slug slosh well be getting into the swing of things as the master tees off in augusta with rory mcllroy and the hunt for a career grand slam. Could sunday be the day . Hillary clinton could throw her hat in the race this weekend. And Christine Lagarde telling policy makers to shape up. Well bring you that also after the break. The pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Lets take a look at the stocks on the move today. First Quarter Sales beat expectations. This thanks to strength in its french markets and latin america. Meanwhile the brazilian tycoon is planning to raise his stake and could take a seat on the board. Now theyre higher by. 1 despite reports that they could pay record 1. 5 million to authorities. Its one of the banks that hasnt settled yesterday. Originally in the New York Times the jered ran bank may face the penalty this month and might accept a criminal guilty employee. This is in an investigation into labor malpractices and the u. K. Group jumping after they created priority review for its eye disease drug. It cuts the process from 8 months to the standard trail. This is shares higher by 4. 6 . Shares are high by 1 and the board of that firm has given the green light according to the ceo. Lets get more detail on that story with claudia from milan. This has been talked about for a long time. No surprise is it. No but its good news because it obviously is helping them move in the right direction. Theyll pull together with the private equity firm expected to begin in weeks time. Theyll put together 2 billion euros worth of funds. The hope is by combining the problem theyll be able to either benefit from outside expertise either in selling these debts or recovering the debt. So this is lets say a pulling together of the stronger bad debt of the sour debts but to note in italy this is a problem for all baiks. Regardless of this moving forward they grew innks. Regardless of this moving forward they grew in january. So this continues to be an issue as they struggle to grow. Impaired loans are worth 10 of italian gdp. Its hard to recover the bad debt. One of the topics on the agenda is the idea of a bad bank from the government so not moving forward on that so far but that certainly is something that banks are looking for in order to try to get rid of this very very huge problem that impairs lending but for today its good news as this much talked about deal moves forward for the two biggest banks in italy and were seeing them trading up on the heels of that higher by 1 point. Meantime i want to bring you up to speed with some of the yield levels here in europe. Lets have a look at the five year in france. It has now turned negative for the first time ever. If we take a look at the ten year french yield thats still at 0. 446 so youre getting a yield on that. Keep in mind that were seeing maturities of up to 7 or 8 years in germany trading in negative territory. Meantime the u. S. Treasury is warning europe against relying too much on exports for growth. Treasury urging officials to make more use of physical policy saying stronger demand is essential and calls chinas currency undervalued but says theyre less heavy handed in the market inventions. Speaking of the imf, the Global Economy risks falling into a long period of low growth if policy makers dont take action. Thats the message from the imfs managing director. She sat down with Christie Lagarde and asks her where she thinks the Global Economy stands 6. 5 years after the beginning of the financial crisis. There is recovery but moderate and even and it has shifted a little bit. Advanced economy is doing better. Particularly emerging market economies doing not as well and being much more all over the place. India, bright spot. China moderating but in a sustainable fashion. On the other hand russia not in good position. Brazil completely flat and middle Eastern Countries in a difficult position. The scars of the financial crisis left a big mark and if you add to that the aging populations in advanced economies and markets and the lack of productive thats a toxic one and we need to encourage them to make the right decision because we can get out of that risk. It doesnt have to become the new reality. So are you saying the phrase is secular stagnation. I think that implies that you cant do anything about it. Youre stuck. So Larry Sommers was wrong. Im not saying he is wrong because he is very often right but what i prefer to use is this new mediocre risk because i believe that if the right measures are taken, if the new lateralism is embraced we can get out of it. We can have better growth and include more women in the economy. We can stabilize the Financial System and make it stronger. I know youre calling for action. Just on the u. S. For a moment i know that you described the developed world as a bright spot. The improvement in the jobs market backed off a bit. Is it all because of the weather . Do you agree with that assess assessment . Just as a swallow does not make spring i dont think that one lower number should grey the whole picture which is otherwise quite rosy for the u. S. Economy. If you combine the bad weather and the strike in the harbors on the west coast, you have a few ingredients to have lower growth in the first quarter. We had that last year. Its true. We talked about it. Is it rosy enough that were ready for an Interest Rate increase . Whenever it happens i certainly hope that and im sure that the phasing communication, the analysis will be at the top. You warned of a bumpy ride for markets when lift off does happen . What is your biggest concern . Is it the impact internationally . I think im concerned about two critical issues. One is very low if not negative Interest Rates for a longer period of time than we think is necessary to kick start growth because that could really create the compost for some potential overvaluations risks and the second one is the situation of particularly the corporate and he emerging market economies that have significantly borrowed in dollar denominated loans and could find themselves in a tough spot if the dollar continues to be high the interests become begin to rise and if they are trapped by low Commodity Prices and have not hedged. Dollar getting too strong for comfort. I wouldnt say too strong because its something that is going to adjust depending on the strength of the economy and what it tells us at the moment. The u. S. Economy is doing extremely well. Lets change track. Supreme leader demanded all sanctions to be lifted when a final agreement is struck on curving Irans Nuclear program. France hit back at the comments saying it showed there was a lot more work to be done before any deal could be concluded. In his first speech he neither supported or opposed the deal adding no agreement was better than a bad deal. Maybe an agreement is better than no deal. He didnt say that. Yeah. Anyway moving on the un chief has called on the International Community to use political negotiations to bring an end to violence. He warned it could turn into a full blown sectarian curve. The u. S. Security council is planning to vote on a resolution to blacklist the son of the former president as well as impose an arms embargo on rebels in the country. A defendant in a bankruptcy trial fired 12 shots inside before fleeing. He was later arrested. The attacker may have carried false identification and used a Side Entrance reserved for staff where there is no metal detector. A fourth person was also wounded in the attack. Get your emails, keep them coming. Weve also had some correspondence on twitter. We talked about some of the multiyear highs on equity markets. 8 year highs for european markets and seven year highs for asian markets. The japanese economy minister saying he would welcome a little bit of a bubble. Always appreciate your correspondence. Some of the gains you see on world stock markets when you convert it into dollar they become nothing. Its just the currency effect and thats a good point because of the strength of the dollar. 10 against the green back. You need to be hedged in these markets. You do. Have to say ive been surprised by how many people have been saying in the show th