Good morning. Im mike santoli today in for wilfred frost. Lets get to the markets. Glad to have you today. A lot going on. U. S. Equity futures after a record close did not take much yesterday, but the s p and nasdaq finished at record levels. Dow futures are looking up more than 10 points this early morning. S p futures up a half point. Nasdaq futures up almost 2. As for the tenyear treasury note yield. Yields ticked a bit higher that boosted the dollar a bit. Still were hovering below 2. 40 on the tenyear. I guess thats an improvement from the 2. 30 level from last week. Its grinding slowly higher like the equity markets. Asian equities overnight, generally a mixed picture. We have the markets in south korea closed as they elect a new president. Japan was down, hang seng was up. The korean vote comes after the former leader was ousted on briarry charges. Polls close there at 7 00 a. M. Eastern time, in a couple hours. A live report in a few minutes. We have a chart issue. Why dont we have our markets closed on election day. Very good point. Wouldnt he would see better turnout . Not just markets, but its a holiday or done on a weekend. In europe this morning. German enindustrid industrial o trade data topped forecasts. We would go through the markets now, we can do oil. Lets show you oil. Oil prices having some trouble with the graphics here. Theres the wti chart. Its higher this morning. 46. 61. Up 0. 4 . Brent hovering below 50 a bar rem. 49. 53. As for the currency boards, the dollar getting a bit higher boost this morning as i mentioned from the yield play. 1. 0907. Strong dollar against the euro. Stronger against the yen as well by a third of a percent. And stronger against the pound. 1. 2936. As for gold prices, going the other way. Down 0. 2 . Double line capital ceo Jeff Gundlach offering a bearish call yesterday at the sohn conference. He spoke to cnbc exclusively about the call. The valuation of emerging markets is half the valuation of the s p 500. When you look at things like price to sales, price to book. Doctor shillers cape ratio. I think part of that valuation difference has been based upon, one, the dollar had been strong from 2011 until 2015. Usually correlates with em underperformance. Thats part of it. The rest is that i think passive investing is something to use a word i dont like, bubble, where people greatly over believe this idea passive outperforms. Theres a birth right to outperform all active manager. Theres incredible cyclicality. It has been similar to how long theyve lasted historically. Jeff gundlach an active fund manager saying maybe indexing has gone far. Its an interesting call, not a doomsday call, because if you thought everything was going to fall apart, you wouldnt say own emerging markets. Its a valuation spread between those two regions. He accurately called for the weakness of the dollar at the peak when everyone was piled into that trade. This is also a play that that continues that weaker dollar. As for the overall market, mike. Explain the vix below 10. A lot of people are hand wringing over this, complacency, calm before the storm. Its the lowest point in ten years . Its touched the lowest point in ten years. The lowest close since the early 90s, though the calculation changed of the vix. It reflects other things we already know about the markets. Its been extremely slow grind, daytoday volatility has been low. Thats the main input to the vix which is what people are willing to assume about volatility over the next 30 days. Yes, its extremely low on the chart. Typically the next big move will be higher. I dont think its delivering that much more information than what we already know, which is markets a tt a high, high liquidity. People in agreement as far as the macro picture and global growth. All of those things can be upended. The fact we ticked below 10 is not a point. Sort of a reflection that we have gotten through some of the biggest risks in the market unscathed. The french election, and the price of apple. Apple prices surging to a new high yesterday passing 8 800 billion in market cap after what was considered a softer quarter, but a lot of enthusiasm now. Warren buffett came out packing it. Theres the chart. Reflects this sentiment if i have some money, might as well let it ride in some stocks. Even if you dont have a particular edge, its these companies that will be growing for a long time. Again, that idea that weve gotten past all the possible bad catalysts might be dangerous if it gets to be too engainerained. People were saying after the french elections, it doesnt look like anything is identi identifiable as a problem for the markets. We can see if well see this rebound in the Second Quarter like everyone is expecting. Theres a lot of fed speak, but it doesnt seem the market is focused on that. One argument is that the market is underpricing how fast the fed might go. Heres whats on todays agenda. We will get a read on Small Business optimism at 6 00 a. M. Eastern. Thats interesting lately with the surge post election. At 10 00, the job openings and Labor Turnover survey along with wholesale trade data. Three fed speakers, regional president s neel kashkari, Eric Rosengren and crobert cap lynn. Lots of earnings. After the close, electronic arts, news corp. , tripadvisor and the big one is obviously dow component disney, plus dont miss disney chairman and ceo bob iger in a first on cnbc interview, closing bell at 4 00 p. M. Eastern time. Disney reporting. The question is are the espn woes lately, the layoffs, subscriber losses going to overshadow that wla hwhat has b story at the parks. Comes at a moment when you are having investors freak out about the tv business. Another big mover this morning, shares of hertz down sharply after the Car Rental Company posted a bigger than expected loss. The Car Rental Company reported a loss of 1. 61 a share in the latest quarter, far worse than the 4 cent loss that the street was expecting. Revenues falling to 1. 92 billion down from 1. 98 billion. Hertz blaming tough year over year comparisons pointing to a later easter and leap year falling last year giving them that extra day. The mits comss comes after avis budget posted disappointing results. Hertz ceo addressing the miss last night saying we are executing on a turnaround plan. While we are mindful of todays headwinds related to use car residual values our commitment to investing in the business remains steadfast. Shares of hertz plunged 88 since reaching a record high in 2014. The stock is down 17 this morning. Back over to you. Its stark. You see airlines and hoe ttels having a great time. Look at marriott yesterday. The car rental business in general seems like it has some challenges. Thank you. Some stocks to watch today. Amc topping the streets expectations. Admissions revenues surging more than 69 in the latest quarter. The stock bouncing after a tough start to the year. Shares up at marriott. Those are getting a pop after the company beating on the top and bottom lines. The Worlds Largest hotel chain reported a nearly 67 rise in quarterly profit as more people booked rooms at higher rates. Pandora reporting a smaller than expected loss in its latest quarter but guidance was weak. Shares trading higher as the streaming Company Announced a 1 150 Million Investment from kr and a boardroom shakeup as it gears up for a potential sale. Few other stocks to watch. Commerzbank reporting a 28 jump in net profit topping analysts forecast. The german lender helped by an increase in income from trading securities. Dialog semiconductor posting better than expected earnings but Current Quarter rev ni wenu weak. Apple, their biggest customer s developing an inhouse solution to replace the Power Management ships. Elliott advise seniors lunching legal action against akzo nobel. The activist investor says the paintmaker breached duties to shareholders by rejecting ppgs third takeover offer yesterday. Elliott is asking for a dutch court allow a vote to oust the chairman. In financial news, Goldman Sachs making the biggest changes to Investment Banking leadership in a decade. Greg lemkow and mark nakman will join john walder as coheads of the Investment Banking unit. Waldron will sit down at 11 15 with cnbc this afternoon at 2 15, a conversation with lloyd blankfe blankfein. In other news, technology, amazon is preparing to launch an improved echo. The new device features a seveninch touchscreen and a camera for video calling. The paper says an announcement could happen as early as today with the new echo going on sale as soon as next month. The new device is said to be above 200, an increase from the current price of 150. I need to get one. I dont have one of these. You need to get something that can spy on you in your house . Im not that much of a privacy alarmist at all, but they have to work out the bugs. Everyone i talk to who has one, has a different use for it. I need to know the weather when i wake up. Target is taking the fight to amazon prime. The retailer will test a nextday Home Delivery services called target restock in the minneapolis area. Household essentials like laundry detergent and coffee will be packaged at a nearby store and allow for delivery the next day. Why celebrations could be short lived for newly elected french president emanuel macron. Well talk about the tough battles ahead for europe. Youre watching Worldwide Exchange on cnbc. These birds once affected by oil are heading back home. Thanks to dawn, rescue workers only trust dawn, because its tough on grease yet gentle. I am home, i am home, i am home welcome back to Worldwide Exchange. If youre waking up, lets get you up to speed on the market action. Chinese market flat lined. The hang seng up about 1. 27 . Slight losses in japan. South korea is closed today for an election. In europe, strong jeegerman exp data. France with a modest rally two days after the elections over there. Vday celebrations are underway in russia. Today marks the 72nd anniversary of the defeat of nazi germany in 1945. Dozens of russian cities are staging military parties to honor the event. For the first time russia rolled out president putins youth army for its parade in red square. Now to france. Emanuel macron will be sworn in as the countrys next president this sunday after winning the bid to lead the country. The political outsider faces a new battle, gaining control of parliament. Joining us to discuss frances future is peter spiegel. Good morning. Welcome. Thanks. Good to be back. From a Global Markets perspective, clearly a sigh of relief when macron won by a bigger margin. The euro is safe. Hes pro eu. Pro euro what is the next risk or catalyst for france that investors need to Pay Attention to . Was interesting. After the first round of the election, huge round in french equities, in the euro in bonds. A huge relief rally. Yesterday, as you said, theres a modest increase in the cac. But yesterday it was a selloff. Cac down, french tenyears down. The euro down. And so i think markets are trying to adjust to the new reality, which is france is relatively safe. Youre not going to see le pen or melenchon, the far left candidate. You do actually have good Macro Economic news. Suddenly the youre rov zoeuroz grow again. You do have some geopolitical speed bumps. You have the french legislative elections. That comes next month. Its unclear whether macron can get his new party enough seats in the new National Assembly to push through his reform agenda. You head to a state in france where you will get the legislation not through the National Assembly. That could be a problem for french growth. The other thing hanging over everyones heads are italy. Elections probably next year. But their populist party, the five star movement, they could win there. They are similar to a lot of populist movements in europe. Calling for referendum on euro membership, potentially leaving the eu. Again, sort of the Third Largest economy in the eurozone. So i think the markets are trying to absorb these things. Everyone was making sure le pen didnt win. Now that we are assured of a macron victory, it goes back to are we now safe . Or do these geopolitical risks reassert themselves in six months. Just quickly, doesnt seem as if Global Markets are tensed up in advance of those italy elections as they were for a while with regard to france. Youve seen the vix, the fear index that comes out of chicago. Thats now at record lows. So you have seen the markets as weve said before. Globally theyre relaxed. Its just been a surprised to that you have not seen the rally since macron had a huge victory. We are talking to analysts about why we did not see the rally we saw two weeks ago, and the thought is, yes, the mcenroe amk good, but is mario draghi forced to end things earlier. And merkel was not inclined to give a pass on french fiscal policy. So there are a lot of questions that renewed themselves. The cac did, to be fair, run up 6 in the last two weeks ahead of this election. The markets were unlike brexit and trump all over the results of this after the first round stre voting. I wanted to ask about the populist wave. Is it over . We saw it in the netherlands and in france. Is europe done with this wave . Can we stop worrying about it . Thats the other thing the markets are trying to decide. Our view here is that, yes, obviously in france and the netherlands, we didnt see the results that we saw in the u. S. And the uk in terms of the break through we saw for the populists. But remember, the only reason mark ruzzo won in the netherlands is because he moved to right to occupy some neighborhood where wilders was. And in france, even though macron won with 66 of the vote, onethird of the french people voted for a candidate who was overtly against the euro. Thats a huge result what r in one of t in one of the core economies of the eurozone. Suddenly, people have been hurting of late, but afd is still a political force, they could get a seat in german elections. I think its naive to say this is over. Its still a factor. As you say, there has been profit taking because of the runup to the cac, but this is still weighing on markets, the extent to which the populists could disrupt the efforts, the euphoria weve seen postmacron. Theres still a nonzero chance these populists could ruin the plans of all these eurozone bulls right now. Thank you for highlighting some risks for us. Great color from the ft newsroom in london. Peter speiegel of finance finance. The the financial times. Well have more Worldwide Exchange. Exchange. [vo] when it comes to investing, looking from a fresh perspective can make all the difference. It can provide what we call an unlock a realization that often reveals a better path forward. At wells fargo, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management firms in the country. Discover how we can help find your unlock. Welcome back to Worldwide Exchange. To politics, former acting attorney general sally yates telling congress she warned the white house about a trumps insider ties to russia. Tracie potts has all the details and the fallout from that testimony yesterday. Good morning. Reporter ae acti5 good morn. The president says sally yates testimony is old news, but it seems to indicate this white house knew early on they had a problem with the National Security adviser. You dont want your National Security adviser compromised with the russians. Reporter former acting attorney general sally yates tells congress she warned the white house its then National Security adviser, general mike flynn, wasnt telling his whole story about the conversation with the ambassador. That created a compromise situation. A situation where the National Security adviser could be compromised by the russians. Nbc learned that president obama warned mr. Trump about hiring flynn two days after the election. President obama was truly concern the about general flynn, why didnt he suspend general flynns security clearance. Flynns clearance was renewed before the white house learned that he was paid 34,000 for a speech in moscow. The additional cia clearance he needed was never happened. Sally yates did the right thing. Reporter president trumps firing back on twitter calling russian collusion a total hoax, old news. Backed by no evidence. Sally yates declined to answer a question about collusion, but James Clapper said he saw no evidence that the russians and the trump team were working together to influence the election. However he also said at the time he had no idea that the fbi was investigating, so it looks like there are still lots of questions to be answered about russia. Tracie potts, thank you very much. Coming up, the top stories and a round up of the Global Markets, and ibm cant catch a break. First buffett takes a step back and now someone is calling watson a joke. Worldwide exchange will be right back. Right back. New roads and bridges. New mass transit. New business friendly environment. New lower taxes. And new University Partnerships to grow the businesses of tomorrow today. Learn more at esd. Ny. Gov i love you, basement guest bathroom. Your privacy makes you my number 1 place. To go number 2. I love you, but sometimes you stink. New febreze air effects with Odorclear Technology cleans. Away odors like never before. Because the things you love the most can stink. And try febreze small spaces to clean away odors for up. To 30 days. Breathe happy with new febreze. If you want to stay on top of your health, one simple thing to do is take the pledge to go and get screened for the cancers that might affect you. So stand up to cancer and take the pledge a