Transcripts For CNBC Worldwide Exchange 20150514

Japanese electronic giant secures a 1. 9 billion bailout. Lets have a look in on european markets. The stoxx 50 is flat. We did have weakness across europe yesterday. It was only pronounced weakness for the dax in germany off more than a percent. Partly because gdp figures were a little disappointing. Its a continuation of the unwind of qe trade dom natd market trade throughout the year so far. Lets look on what the rest of the european markets are doing today. The ftse 100 below flat. Germany and france managing to stay just in the greece. France just ticks down into the red. Italy also just below flat. Of course there has been a continuing sense of volatility of weakness in the markets. We were a little weaker earlier. We found a little bit of strength over the last half an hour or so but in general certainly nothing to write home about. Lets have a look at bond rates. They continue to be one of the key drivers of the unwind weve seen highlighted by the 10 year in germany. We look at things from the near 0 levels we go to around a month ago. The ten year in the u. S. 2. 25 . That remains elevated. Of course disappointing retail sales yesterday. U. K. We have been hovering in and around that 2 level. Mark carney yesterday just lowering gdp forecasts for the u. K. And were looking at 1. 89 in italy. Seema. Currencies continue to be a factor that investors are trying to digest. Whats really behind the move were seeing in the dollar which is now at a fresh low losing strength against the euro as the weaker than expected retail sales number weighed on investor sentiment. Right now were looking at the euro at 113 against the u. S. Dollar. Lets talk more about currencies and what that means for your portfolio. Sheila is joining us here in studio. A pleasure to have you on the show. Thank you. That retail sales number caught investors by surprise. This is the 5th straight month retail sales has come in shy making it the longest streak since 2001. Do you think this number could change the feds timetable . I certainly think it will be a factor in how the fed looks at things but there are numerous other factors to consider. From a retail sales perspective people expected that Lower Energy Prices would translate faster. We want to see that translate were still positive on that segment and still expect the fed to be increasing rates in the 3rd to 4th quarter. Crude oil is down 40 . You would think that would be putting money back in the consumers wallets. Shoppers arent feeling the benefits and thats not reflected in the retail sales number. Theres two parts. One is shoppers are taking their time. People want to see the income is month after month. Theyve seen volatility in Energy Prices before. Spending that money doesnt make sense as it comes in. Secondly we have to remember the Energy Complex is an important part of the u. S. Economy even though Consumer Spending is 70 of gdp. A lot of energy jobs have been hurt by Lower Energy Prices. That has an impact as well. Were have the u. S. Dollar strengthening which is converse to conventional wisdom. Is this an unwinding of the qe trade . Qe programs in europe and japan have a big part to play and theres just a Monetary Policy among various countries. This is impacting investors directly in currencies but also how they look at markets in a fixed income perspective. But if we talk about the european bond trades weve seen weve seen yields rise, the u. K. Has been included in that as well yet yesterday mark carney lowered gdp forecasts so yields in the u. K. Shouldnt be rising, should they . Well, yields in the u. K. Are responsive to more than carneys statements and people look at how the economy is doing. Rising home prices now for the first time on a more consistent basis. Seeming that even though he lowered gdp a good trend overall in terms of growth and contrast that with continental europe. When looking at europe, sentiment has really changed over the past couple of months. We got that gdp number yesterday and surprisingly europes growth appears to be coming from nations that have been underperforming. Italy, greece, even bulgaria was up. What are your thoughts on the growth and the rebound in terms of the economy . Its a fascinating time. We have been talking to clienlts about european equities for at least three years. This is the first time weve seen more consistent interest in putting more money to work in european equities because they see the dollar move as a beneficiary to many export led countries theres still a lot of caution about europe but from the impact perspective id watch european equities. Stick with us and well talk more about greece next. The finance minister says athens Debt Repayment due to the ecb over july and august should be pushed back. He made the comments in the last 30 minutes during a keynote address at a conference in the countrys capital. This comes after the greek government ruled out a referendum over a package saying it is working toward an honorable compromise with lenders. Meanwhile theres increasing speculation that greece will have to impose capital controls. Any deal between athens and its creditors is likely to come at the 11th hour and increases the risk of the government collapsing. It suggests the referendum would then follow with capital controls, a consequence of that scenario. Morgan stanley says if greece introduces capital controls the chance of an exit is is 60 taking a 12 to 18 month view. It adds the country needs a third bailout. An issue that is quite underappreciated in the marketplace. Lets bring in julia with us on set. Is the risk underappreciated at the moment . It is. We have to remember were talking about finishing the old bailout deal. We have until june to sort that out that goes back to when he mentioned 6. 7 billion jurors rows worth of cash we need to be paying. If we imagine a best Case Scenario and thats that they get the 7. 2 billion euros at this stage, its effectively going straight out the door to pay the ecb so theyre going to need some other solution be it taking that cash that was reserved for the banks with 11 billion euros in there. Also profits are coming due in july. This is all assuming good will and things being allowed that havent been allowed up to this point. Its very difficult and the concern being raised is capital controls. Great stuff. Stick with us. Just a reminder as well that you should get to cnbc. Com for all the latest weve got an explainer on how athens is paying its bills at the moment. Still with us of course is sheila, ceo at Goldman Sachs asset management. Weve seen this correction over recent weeks. What part has greece played in that correction. Greece is an important part of the correction. People are watching it closely. Its one of those conundrums for investors and clients i speak with. They all ask how seriously should we take this . I think we tried to look positively and constructively on some of the signals coming out of greece. Behind the scenes. The willingness to change the Negotiation Group which seemed to indicate an accommodation effort to meet halfway but of course the noises were hearing this morning and the timetable concerns that were just said were all of major concern to investors. There will still be caution. Weve been seeing this greek risk, the grisk. Its been around for a long time now. In order to see a stark negative reaction to the market do you think we need to see the greek default of some sort . People will have to have growing confidence that the risk are much much higher. Even statements that they could be 60 or so on. People arent quite ready to accept that its going that high or higher. It may be high but thats just pressure on everybody to come to some resolution. So its still early enough, people are still hopeful for resolution. If we get toward late in this month and theres no clarity and no further sense of Movement People will get increasingly nervous. Arent we moving a bit late . We had him saying we have two weeks left of cash. He couldnt have speld it out anymore. Whether or not thats a negotiating tactic which you said yesterday, but it doesnt seem to really have changed the approach they seem to be playing as far as negotiating with them. Yeah, i think youre right in that its leading it late. I think the trouble that investors have and this is a bit of a cry wolf problem is every country and every situation has a been solved and b left to the bitter end. So whatever people are seeing in Global Markets whether its in the u. S. Or europe its wait, wait, wait. What about capital controls then if capital controls are needed. Weve seen the example where everybody was quite surprised by how little damage happened relative to what we were expecting. Do you think the situation is similar for greece or is it because its that much bigger of a country. Its a bigger country and it could be perceived as leakier in terms of its interaction in the eu oriented scenario that greece played a more pivotal role in what the ecb and eu tried to resolve but ultimately i think investors do come back a bit as well to why is the tail wagging the dog here . Are we sure this is so meaningful it derails the other things we see. Just a quick further one before we go to break. Lots more topics to talk to you after the break. Is our investors more concerned about a brexit or grexit . Probably a brexit in some ways. Some of the elections and noise there, thats a big deal. Concerns dont mean probabilities. What would they say is a bigger deal . Brexit. What do they think is more high probability scenario although still not likely i think is a grexit. Thank you. Well be chatting more with sheila after the break. All right. Coming up on worldwide exchange, the u. K. Burger battle heats up as smash burger gets set to test the appetite of the british consumer. We speak to the managing director of the Better Burger chain. It may be dark days for u. S. Retail but are there gains to be made online . Find out how walmart is stepping up his gain against amazon. Is he or isnt he running for president . Stay tuned for the answer. I hate cleaning the gutters. Have you touched the stuff . Its evil. And ladders. Awwwwwww they have all those warnings on them. Might as well say, youre going to die, jeff. You hired someone to clean the gutters . Not just someone. Someone from angies list. But were not members. We dont have to be to use their new snapfix feature. Angies list helped me find a highly rated Service Provider to do the work at a fair price. Come see what the new angies list can do for you. Welcome back. European markets predominantly in the red today. Not too significantly but theyre below water. Lets look at the biggest individual stories today. Generali up 1. 15 . Posted the best operating profit in 7 years boosted by strength in its Life Insurance business. Results were driven by higher premiums that rose 8 on the quarter. Itv is down 1. 6 . It got off to a strong start to the year with a 14 jump in advertising revenue but it expects strong growth for 2015 though it didnt disclose full profit for the current quarter. So overall, all of that together, market is not taking it well, telefonica is down the best part of 1 thanks to solid results in germany and latin america which helped offset the downturn in the home market but signs of the contraction in spain weighed on sentiment. Now lets get a check in on markets in asia. Sri is standing by as ever. Once again, theres a move higher surge in u. S. Bond yields. That seemed to affect sentiments mostly but not in some quarter of the market. We saw the shanghai and hang seng as well. Remember the clear and present danger for a lot of these net importing sovereigns and their markets is this rebound in the price of oil from the lows up some 50 . Let me talk about the nikkei though because theyre closed at near a one week low. There were some positive stock specific stories here including their shares up by well over 10 after it announced a higher shareholder payout. A little bit on the shanghai composite. Telecom stocks were gainers after they announced they were going to celebrate the roll out of the high Speed Broadband network. Although that was offset by weakness in the industrials. One of the big underperformers today underperformed closing at the lowest level in almost three weeks. Foreign investors were big net sellers today of the financials and the tech stocks. All in all fairly mixed but sentiment up because of the back up in german and u. S. Bond yields and more broadly in the bond markets. Thank you very much for that. Now indian Prime Minister modi landed in china today for his First Official visit to the country nearly one year into his first term. He is expected to discuss close economic tie with the chinese president and top Business Leaders in beijing. Modi who took a strong start in china is expected to strike a softer tone on issues such as the long standing border dispute. Meanwhile Indias Sensex hovers in negative Territory Days after a decision hit sentiment. The stock Index Trading down about 7 . We have sheila patel still with us here on worldwide exchange. As we were discussing during the break, india was one of the most favored emerging markets in 2014. Thanks to lower inflation. The prospect of an economy break down. The market cooled off a bit. Its down about 8 from its record high. Has the bull market lost its steam . From our perspective shortterm trading in india is always going to be a losing game but from a longterm perspective in terms of investment its still potentially quite a winning game. We remain confident in the modi reform package. This visit to china is a great example of the developments we see and if you compare peoples views on china and take india in the same scenario today theres a lot of developments that are quite interesting. If you look at the Online Businesses in china that measure their transactions if the billions companies in india measure in the millions. Our people online, they have smartphones, so many things are changing in india, we see a lot of tuns. Youre pointing to some of the structural attractions of the indian market but they have been there for the last decade and we often have run ups like we saw at the back end of last year and early this year on hopes that a new government or whatever new change is is coming in is going to be able to execute. Will modi really be able to see that through . Because we convenient enough of that hope in performance yet. Thats the con none drum. Investors, this time although always cautious when it comes to india after 20 years of getting burned are actually expressing more confidence. We had more clienlts from around asia. From the u. S. From europe, the middle east arranging trips with us, spending time in india really Going Company by company than at any time in the past. I think modi from an outreach perspective whether its the visit to china or other meetings with dignitaries and important issues coming to see him in india expressed and has shown more development. Its great to have big splash news but at the end how do things get implemented. When you try to turn a big ship its the small changes that add up. So we look at the 700 million indians getting i. D. Cards meaning they get Bank Accounts and theyre able to transact on smartphones. Changes like that as being what ultimately longterm changes the economy for investors. The other big head wind could be when we do see the fed raise rates how do you think that will impact emerging markets . Specifically india . A raise in rates is going to be an impact on india but the things investors focused on more is the oil price because modi couldnt have asked for a better tail wind to help him out. The expenditures on energy were quite high. The subsidies were quite high. So if Energy Prices stay favorable from that perspective i think youll see rates have some impact on concerns about india india. Lets move on and talk about china. At the same time we just had chinese lending data thats slightly disappointed. Does that give us cause for concern that their liquidity taps are no longer having a real effect in the economy . We definitely have some concern and some reserves about china. Not in the longterm but in the shortterm you do see Slower Growth and companies in the more general sense having some issues keeping up with their numbers. That said you see pockets of strength. We were just talking about a pocket of strength in tech and Consumer Spending generally. So i think we see china at a different point. Not always a macro story. Consumer discretionary is the great place to look for positives. Its one of the best slow downs in the chinese economy put you look at alibaba 71 jump in the revenues. The consumer is spending. Absolutely. You see the spending and activity in online transaction and you see the activity in some of the retailing numbers such as the apple numbers. I think that the key point in watching china is the slow and steady reform progress. You saw a very slow start to hong kong, shanghai connect. People were worried and then you wait a couple of months. I think one of the challenges with reform in china is that people wisely wait to see every component of the change before they act. The reforms are very complicated so we need to see them act slowly. We need to see them trickle through the market and then you see the boost as you saw with Hong Kong Shanghai connect. We were talking earlier about the impact european qe had on the markets. What impact has had that had on china . I think it has increased some of the pressure. The way we look at japan versus european qe is on a relative basis to the size of the market japanese qe is bigger. So we see it have impact in our fixed income views and despite the moves in the bunds and germany. We see more attractive tunlts in opportunities in japan. Is this just an exporter play in japan . Certainly i think the exporter play is critical and we have seen clients most interested in being involved in the exporter play. But i think in japan its more than just exporters. Its another place where youre seeing abe make significant reforms. In general were following reformers. Theres some companies not just in the retail or export sector that are making some significant changes changes. We see an opportunity for active investors. Its been a pleasure to have you with us. Thank you for joining us. Now Sharp Electronics secured a 1. 7 billion bank bailout. Second time in six months the company needed a cash injection. In return, sharp will continue restructuring measures and the bailout will give it time to attempt a turn around of its struggling Smartphone Display business. Taking a look at price action in tokyo today, down 1 . Down some 33 over the last six months. Shares in toshiba rose today as the company had investor fears following an accounting probe. The company may have to write down three years of profit by about 7 . Much less than some analysts had feared. Honda will recall 4. 8 million cars to replace potentially fatal air bag inflay tos. It comes only a day after toyota and nissan recalled vehicles. Six deaths have been effected so far. All in cars made by honda. Price action flat today, honda and over the last 12 months up 22 . Still to come on the show, the dollar bulls shy away as disappointing retail sales data knocks the green back. What does this mean for emerging markets . Well discuss that after this break. Stick with us. Delay the debt, greeces finance minister says athens should be allowed to push back bond repayments to the distant future. Generali puts in its best performance sending shares higher. A fresh start. Sharps ceo is optimistic of a recovery after the struggling japanese electronic giant secures a 1. 9 billion bailout. Lets get a check on this thursday morning. Stocks did end higher after a volatile couple of days as the uncertainty in the fixed income market tempered investor enthusiasm. Thats the case at least in todays trade. Were looking at the ftse 100 down. 3 . In general the euro zone gdp forecast did come in at 0. 4 slightly below what economists were expecting but again much better growth than what were seeing in the u. K. And in the u. S. The euro stoxx 50 a good gauge of stocks across the euro zone. The pressures were seeing are weighing on the index right now. The euro as its gaining ground against the dollar. A brief reprieve yesterday but theyre back on it today. It did fall below 0. 65 today. Its back to 0. 73 . The ten year note in the u. S. 2. 256 and the bank of england and governor mark carney lowered his gdp forecast slightly. The u. S. Dollar continues to weaken from the ram panlt surge at the back end of last year. The euro in particular has strengthened. Were looking at 11412 at the moment. Sterling at 157 and the yen 119 against the green back. Now emerging Market Growth slumped to the lowest level for six years in the quarter and it could be getting worse. This according to the institute of finance. Latin america came in the weakest while emerging asia out performed. Joining us now is david at bank of America Merrill lynch. Thank you for joining us. Pleasure to have you with us. Were in a risk off environment at the moment but were also in a weakening dollar environment which is typically good. Which of the forces is going to win out . Were going to be positive on yen equities. We have been and we continue to be so. The key thing is that theyre still cheap. They are at ten year lows comparatively and of course theyre really expensive. Meanwhile investors are still searching for yield and Investment Opportunities in fixed income are obviously at this stage a very very bad risk reward. So em is going to win out. It has to go somewhere and the evaluation gap is closed. Lets talk about the move were seeing in the bond market. Its the volatility in the bond market casting a shadow over stocks. What do you think is behind the move . Is it a fundamental reason or technical reason for the implied volatility in bond. Its both. Negative ten year yields in an economy is recovering and its priced in for ten years. But then a whole number of technical reasons that crystallized this adjustment. One is coming from various companies. A number of prominent investors talking about the bull market and then of course the liquidity situation in the market where regulations straining and the qe is very bond sided marketplace. If they continue to rise its a problem. It leads to the situation here as well. And then we can get another taper tantrum and that is bad for currencies and bad for all ems but thats not the baseline. Our strong conviction is that the increase in rates has actually run its course but our view is it will come down again and em currencies are not cheap but we think theyll be balanced here and Central Banks can focus on it and thats going to be for equity markets and local bond markets. David on a regional country perspective whats your preference in emerging markets at the moment . You know going into the year it was what im responsible for. Most exposed to oil prices and most exposed to europe. Now oil has stage of recovery and euro is in a phase of recovery so at the moment it has been out performing. Its likely going to be the story as long as the european recoupling with the u. S. Continues to be the case. So we continue to like equities particularly in Central Europe because its the play on western european equities and in a lot of these local bond markets we like the yields lower in russia as well as in africa in europe as well. Now speaking of Africa Nigeria is set to inaugurate its new president at the end of the month against a backdrop of on going Economic Uncertainty and Persistent Security threats. Meanwhile, outgoing president good luck jonathan that was praised for accepting defeat warns his ministers could face persecution when the former military ruler comes to office. We have seen a lot of volatile till in the nigerian stock market given the political uncertainty. We didnt know who would be leading the country. Now that we do, do you guy nigerian stocks . Not too. Its too late. Theyre up 50 . Stocks actually out performing oil. Yesterday has been a pretty good change. Yes we believe hes going to be more reform oriented but a lot of this is priced in. We can see in india that its going to be more difficult to implemented reforms than it seems initially. So were waiting for the new government that comes in by the end of this month and then for the reforms that should be announced by october and then if oil is still strong we can see another round of performance in nigerian equities but currently its a wait and hold period. How strong is your conviction in his ability to carry out the necessary reforms . When we look back at this moment in years to come and see it as a watershed moment in nigerias history . Going by his own history he definitely has a strong record in terms of implementing a corruption drive and thats key to the reforms. Its key in terms of getting the bands back on the oil money that keeps disappearing and he has a strong record on the security side. So we have strong conviction but a lot of good news is already in the price at these levels. Lets talk about the currency because nigerias nera slumped from 120 in 2008 to 160 in most of 2014. Whats your long end call Going Forward. Our view is that the nariira will fall to 220 but thats priced in. The black market price is 220 as well. We think when this happens then it should rebalance the Foreign Exchange market. For the moment its revictimed in a restricted in a number of ways. That means theyre dropping out and would be negative. Would you say its similar to the russian rouble that its highly correlated to the price of oil. Absolutely. Theres more Exchange Controls but overall yes and we think it needs to go to 220. Fascinating market to watch. Holds a lot of promise put of course larger issues like geo politics and terrorism continues to be a head wind for this country. But enjoy hearing your thoughts on where the opportunity is. Head of economics and strategist at bank of America Merrill lynch. Thank you for joining us here on the show. Moving on, investigators say the amtrak train that derailed in philadelphia was going faster than 100 Miles Per Hour hitting a sharp curve and crashing tuesday night. Thats twice the speed limit for that section of tracks. At least 7 people were killed while 30 remain hospitalized. Joining us to get us more on the story is chris in philadelphia. Reporter yeah, good morning, seema. Work has continued throughout the night on this scene as investigators try to catalog any type of evidence that might still be out there and then prepare this area to clean it up so this section of rail traffic can reopen. As you mentioned, yesterday afternoon, we learned that investigators have a pretty good idea of what happened during this train crash. Now the big question is why it happened and thats what theyll be focussing on as the hours and days from now continue on. Investigation into the event data recorder which records all of the data about the train as it was traveling revealed yesterday that it was going 106 Miles Per Hour. Thats more than double the limit as the train approached the curve here in northeast philadelphia. Now investigators say that the engineer a man from new york named Brandon Bostian has given over his cell phone to police and submitted a blood sample for any type of toxicology report but federal investigators have not interviewed him yet and they would like to talk to him in the next few days to see what recollection he has if anything of the events leading up to the crash. Were also learning more about some of the seven victims that were killed in this crash on tuesday night. Some of them include a Navy Mid Shipman heading home on leave from the naval academy. And another executive ap executive jim gains a 48yearold father of 2 as well as a bank executive. More information coming out as the days pass by about thiezese victims. They have no idea if any people are still missing but the focus continues on why this crash happened and trying to reopen this stretch of track in philadelphia. Chris, thank you so much. Still to come on the show, its game on for london. We discuss how the city is becoming the tech hub for gaming start ups. Thats coming up after this break. Amazon Prime Minister costs 99 a year. Walmarts service will be invitation only for now and will ship select products to customers within lee days. Walmart is reportedly teaming up with alibaba to start accepting its Alibaba Alipay in stores in china. They are planning to open another 115 stores by 2017. Lets have a look atwal mart in frankfurt today. Another retailer in focus jcpenney. The First Quarter beating forecast on solid demand for apparel and womens handbags. Growth slowed in april but the retailer raised its full year forecast. Thats right. The ceo does say some departments such as home goods are not seeing the level of spending they once did. Jcpenny, shares down 1. 3 in frankfurt. Italian Luxury Fashion group moncler is falling today. Thats after they confirmed the sell of 19 million shares or one third of the stake in the company. Moncler is from italy. Making sure you got that. Why didnt i get that. You had a tough time with that. Just remind me what that city in scotland is called. Edenburg. I butcher way more names. What are those things on the sides of a website. Oh yeah, advertisements. Advertisements. Adverts. Its the whole american u. K. Thing. The viewer gets both. We can ask our next guest. Theyll give us the final decision. Thats right. Lets talk more about another italian luxury firm tods taking a dip after a bigger than expected fall in First Quarter profits. They have all cut their price targets on the stock and you can see its up about. 6 . Shares in sis coe trading lower despite the top and bottom line. Cnbcs josh lipton has the details. Cisco is at a positive inflection point. Thats how they described the position on the latest earnings call. Cisco who directs data traffic across the internet reported 54 cents on revenue. The street was looking for 53 cents on 12. 07 billion. Looking ahead cisco expects q4 revenues to grow and q4 up 55 to 57 cents. Analyst expected 56 cents. Chambers did announce he would be stepping down from his role as ceo this summer and will be replaced by chuck robins a veteran that sounded a strong note of optimism on the call as he takes the reigns of his 149 billion company. Investors have been optimistic too that stock is well in the green this year. They face real challenges including rivals. So robins does have his work cut out for him though hes at least one big fan on the Conference Call saying no one was more excited than him about his successor. Im josh lipton in San Francisco. Now speaking earlier on cnbc, ciscos european chief outlined his views on the new ceo. I worked with him as a colleague and indirectly as well. So i think he has great qualities and, you know, very much around. Great listening skills. Understands the market. Is a great execution machine. Im excited about it. Its interesting because obviously this was a beat but after hours the share price came off a little bit. I wonder if its that transaction to the new ceo or just the fact that as we know like traditional tech the nonhigh end is there. The stock is out performing. Up about 28 over the past year. A lot of that having to do with the fact that it offers a dividend. So investors say tech names that offer a dividend is a good bet. You get the growth the Tech Companies see or witness and also, who is going to say no to yield in the low rate environment. Indeed, cisco was off 0. 7 after hours as you can see off 28 in the last 12 moss. Want to keep an eye on when the market opens. Shake shack with a surprise First Quarter earnings. Better than expected revenue as same store sales rose nearly 12 . Well above the forecast of 5 . It also raised its revenue outlook. Shares rose 9 . Investors were hungry for this one, up about 14 in frankfurt. Sounds good. Thank you wilfred. Very very good. Coming up later on the show, the managing director of smash burger u. K. Will join us to discuss the fast casual food appetite in europe. Thats at 11 30 cet. Shake shack i havent been to. Its come to the u. K. As has five guys. When you go to shake shack you dont just order, you order off of the secret menu. You heard it right here. Im glad you told me that. Thats something i wouldnt know and i would order whatever was on the normal menu. Exactly. Its a secret Peanut Butter sauce on your hamburger. Im not sure i like the sound of that. Its actually really good. What kind of taste do the people out there watching have on their burgers. What is the best burger out there. Let us know worldwide cnbc. Com. Twitter. Which restaurant, what type of burger. Anything you want. Burgers all around. We want to hear what do you want. Who does the best burger . In and out maybe. Shake shack is great. New york versus london. Here in london ive only been to the one thats close to where we live we just happen to both live in a similar area. We happen to live nearby. That is really funny though. Byron burger. If you havent been and youre watching its not too expensive. Around 12 pounds for a burger. Thats so expensive. 18 or 20. Yeah, about 20. Thats ludicrous but youll pay top pound for a good burger wont you. Or a cheaper version, hard to beat, a quarter pounder with cheese from mcdonalds excellent. It can be. Theres still the whole shift to healthier choices. Mcdonalds fries are impossible to beat. Mcdonalds fries back every time. They know how to make their fries. Get in touch with us about burgers. Europe is the best place to be for a gaming start up. Better than the u. S. West coast. Thats according to our next guest. Whose samurai sage grossed more than 28 million in just over a year. John earner is joining us in the studio. First tell us more about space ape. How do you differentiate your games versus what is a very competitive landscape. You have others in this space. Sure. Its a 3yearold mobile gaming start up based here in central london. Our mission is to make the highest quality and most commercially successful games in the world. We want to be the in and out burger of mobile games. High quality but huge success. Everybody uses them. Samurai siege went live. It was our first success. We had a fail before that. We learned more from the failed sports game than we learned about anything else. We learned how important sit to make a game your consumers are passionate about. Are they hanging around waiting to know what your next product is or do they not know who made the game behind it . They do. Our next product went live a week ago. Its called rival kingdom. A massive chunk of our players have been waiting for that game for months. Its been live for a week. Its editors choice. Top five download around the world. Generated over a million installs in the past week and a huge chunk of them learned that space ape stands for something about the quality of the game, the nation of the multiplayer experience. Theres a brand involved in this business. Youre seen as one of the fast growing start ups out there. You raised money from Silicon Valley bank. Why did you pick them versus going to the bank and getting a loan . We raise money from the best investors in the world. Theyre one of them. Also excel partners. The folks that invested in our company backed other companies. As for Silicon Valley bank its great to have a connection to the west coast. Im from california. Silicon valley bank brings a lot from the start up scene in San Francisco and theyre also very flexible but in general we want to bring investors who can add value to our company. So youre based in london. We are. Funding from Silicon Valley. Why do you stay based in london. We believe and i say this as a californian, i think london is the goldilocks zone to make mobile games. Its a larger market like other places in europe. You can build a Large Company with great talent. All of europe and asia come to london for great jobs and its smaller than San Francisco and less overheated so its affordable and people will stay at companies for a long time. But when looking at the gaming industry is the future of this industry dependent on Innovative Technology or celebrities backing these games . I think there are multiple successful strategies in a platform thats growing as quickly as the app store. 2 billion people have smartphones. That number will go up to 4 billion in a few years. If you can have a license maybe you make it yourself. Maybe you bring it from Kim Kardashian and combine it with games that retain players for years thats how youll create the next blizzard. Thats just astounding the type of growth her mobile game has done. This is Kim Kardashian. The game isnt that great but the fact that she has a strong following is the reason theres so much demand. Im astounded but if you talk to people in games we did a deconstruction of the Kim Kardashian game. When they get into it they say its a really good game. Its compelling and oddly addictive. Did she design it herself . Well have to speculate wilfred. Do you play it . Do you have it . Im not a big gamer. I used to play a lot of soccer games but i never got into gaming on a mobile phone. I cant imagine and this is i should experience these games i cant imagine the experience is as good as if youre playing on a big screen with a controller in your hand. The experience is different. Its the sort of player often over 30 often male although all genders and ages now play that used to play games like fifa and world of war craft. They no longer have times. They have busy jobs, theyre looking for games they can play in 30 second chunks on the weekday on the bus but equally indulge in on the weekend when they have a hall pass. You should try them out because it will allow you to indulge in something you no longer have time for. You basically described me there. People can go to cnbc. Com instead and learn about whats happening to the markets. Stocks are better than games. Either option im sure exciting. Thank you for joining us. Still to come on worldwide exchange, it may be dark days for u. S. Retail but are there gains to be made online . Find out how walmart is stepping up its game against amazon. Thats coming up on worldwide exchange. The dollar falling versus the euro as the retail sales number continues to weigh on sentiment. Delay the debt. Greeces finance minister says athens should be able to push back bond repayments to the distant future. Shaken and stirred. Shares in shake shack rise as they beat with the first set of earnings since the ipo. The amtrak train that derailed in philadelphia was traveling double the speed limit when it crashed. We bring you the latest on the investigation. It is the bond market that continues to garner a lot of attention. What does this mean for bond markets. There has been defensive sectors like utilities with out performing growth sectors Like Technology because they have the dividend yield. Now its up for sectors about which parts of the market lead Going Forward. This did stem from the bond market. It has spread across a lot of asset classes. Lets just rewind and think of the traditional relationship usually if equities are going down then bonds are going up. Risk off generally you might assume the u. S. Dollar is going up. That is broken. We have the u. S. Dollar weakening and we have bonds in high correlation for equities. Those rates have done well. We have also thrown oil in there. You typically buy bonds to get deflation from inflation. Thats something to watch. The Oil Price Rebound is linked to whats happening with the u. S. Dollar as well. Theres the fundamental supply and demand balance. That Goldman Sachs that we reference earlier in the week calling into question whether that demand supply rebalance can happen. What does this all mean for futures after stocks had a tough time holding on to gains. The dow is indicating a higher move having to do with the weaker dollar. The multinationals have been hurt by stronger fx head winds and stronger dollar. Nasdaq expecting a higher open by 26 points. This is justc keep in mind what we have seen in futures is very different than when stocks open for trade. Keep an eye on futures and what it tells us about when stocks do open at 9 30 a. M. On wall street. Take a look at the euro dollar trade, stocks reacting to what we see in the currency market. The dollar lost about 6 over the past one month. Thats resulted in the euro strengthening. Thats not good for european equities but were looking at the euro now off of session highs but still at 114 against the u. S. Dollar. A level we havent seen before the ecb unlaunched quantitative easing. What does this mean for the bond market . Investors watching yields rising but the implied volatility we have been seeing which is at a two year high and the story continues with a ten year treasury yield at 2. 25 and the ten year german bund at 0. 72 . Remember the buying spree drove the german bund at an unprecedented low of. 075 in april but a very different story given the sell off we have been seeing in the bond market resulting in yields. Ticking higher right now 0. 73 on the german bund. I wonder if well get to 1 or 1. 5 for the german bund and what that will mean Going Forward. Thats an interesting question. We have moved pretty far so far. Lets have a look at european markets and a little bit of repreve today although that hasnt been the case throughout todays trade. Yesterday was a weak day for european equities. This particular for the dax up more than a percent after german gdp slightly disappointed. We managed to bounce back but not in any pronounced fashion as you look at the performance here. France and germany up 0. 1 and 0. 2 . Lets look at commodities. We have seen the oil price recover over the last couple of weeks, including this week as the u. S. Dollar allowed oil up. Brent is basically flat at 67. 7. Seema. Lets take a look at some stock specific stories. Jcpenneys First Quarter loss narrowed on beating demand for apparel and handbags. Sales growth slowed in the month of april. The he are tarl raising the sales forecast. The ceo does say some departments such as home goods are not seeing the level of spending they once did. Jcpenney will start selling Sephora Beauty Products Online this month expanding that space. Were down by around 1. 3 in frankfurt frankfurt. Cisco beat forecasts as demand offset sluggish spending by tele telecom customers. Revenue rose above 5 . The Fourth Quarter outlook is in line with analyst estimates and if you just look at shares we were up about 1 in after hours trade but the stock down about. 2 . Ciscos ceo stepping down in july also dispelling rumors the company bid 9 billion for Cyber Security firm fireeye. Lets have a look at shake shack which reported a surprise First Quarter profit. The first set of earnings since its ipo. The burger chain posting better than expected revenue as same store sales rose nearly 12 . Well above forecast of 5 . Also raising its revenue outlook. Shares rising around 9 in after hours trade. Lets get you a run down of what to watch this trading day. Weekly jobless claims out at 8 30 a. M. Eastern. Expected to rise modestly but Still Holding at levels that suggest the labor market is improving. They arent expecting to change. After the close we hear from Applied Materials nordstrom candy crush maker king digital and party city. Greek finance minister says athens Debt Repayment due to the ecb after july and august should be pushed back. He made the comments in the last 30 minutes during a keynote address in the countrys capital. This after a referendum of possible measures saying it is working toward an honorable compromise. Lets get an update on the latest situation in greece. Julia. Thanks, wilfred. Thats very different from what we heard an hour ago. Theres been a clarification on this. Not that the payments that come in july and august and were talking 6. 7 billion euros would be not paid or pushed back. This is when to make the payments and push back later payments. If we go back to what we were saying earlier on in the show they can get 7. 2 billion euros in the door. We know that they only have two weeks worth of cash left and what weve had in the last 24 hours is a number coming out and Morgan Stanley saying if we have to go to capital controls a 60 chance we see an exit of the euro zone. Thats now a 60 chance of capital controls. So an increasing level of concern among analysts out there so its very interesting. Now i want to talk about this in more detail. Great analysis there about the whole situation in greece and explain it on how athens is managing to pay its bills at the moment. Also with us on set is the Global Equity Portfolio Manager. Good morning to you. Good morning. Thank you for joining us. 60 chance of capital controls being implied. What do you make of that . Why are people surprised . Im so sick of this story. Not being rude to greece. Why are people surprised . The story hasnt changed. They have run out of money. What do you expect. So theyre just pushing balances around. Theyre shuffling the debt chairs around. Give me a break. They need the money. They need to agree with the ecb and the European Union and need to have done it yesterday. Does the titanic go down before. Thats the risk. Who knows . I sincerely hope not but the problem is despite the best efforts of politicians, theyre human beings and human beings are prone to error and once the errors are made these things can spiral out of control very quickly. That is the risk. The next question is if a deal isnt reached are they headed toward political suicide. Do you want me to answer that . Sure. Either way theyre going to struggle. They cant reach compromise in the euro zone they have a real problem. If they do reach a compromise its because they crossed the red lines on pension and labor reform in which case they come into trouble with the more extreme parts of their own party. This decision needed making weeks ago. It played a factor in the recent sell off weve seen. Its only 2 of euro zone data. Its still a side show because if you look at equity market volatility, its still low. Its still surprisingly low when you notice that Foreign Exchange and bond market volatility have been rising steadily. Equity market volatility hasnt yet which is the surprise. That suggests to me that people may say they always say if greece leaves the euro zone, we know were fine. This is expected. Nonsense. Something will always go wrong there will still be more down side. Great stuff so far. Well come back a little bit later. If you havent been watching greece over the last five years you know that its not the 11th hour, its the last five minutes of the 11th hour when we make a decision. Great stuff. Edmond, thank you for now. Julia, thank you for joining us on set. Well be back with edmond in a few minutes. Now more details have been emerging on the final moments of the amtrak train that derailed in philadelphia killing 7 people. Well have a live update after this short break. En you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. With the tools and the network you need to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. If you want to succeed in business, mistakes are a luxury you cant afford. Thats why i recommend fast reliable comcast Business Internet. They know what businesses need. And theres a nomistake guarantee. If you dont like it, you have thirty days to call and get your money back. With comcast Business Internet you literally cant mook a mistick. I meant to say that. Switch today and get the no mistake guarantee. Comcast business. Built for business. Welcome back. U. S. Stocks set to break a three day losing streak but the dollar is down sharply after weak u. S. Retail sales. Another day, another delay. Greeces finance minister looks to push back Debt Repayments to the ecb and walmart takes on amazon with an unlimited shipping membership. Investigators say the amtrak train that derailed in philadelphia was going faster than 100 Miles Per Hour before hitting a sharp curve and crashing tuesday night. Thats twice the speed limit for that section of tracks. At least 7 people were killed while 30 remain hospitalized. Lets get out to chris of nbc news live if philadelphia. Set the stage for us. What have we learned this morning that we didnt know yesterday on the back of that train derailment. Work has continued around the clock on the track a few hundred yards behind me as investigators try to collect any evidence they can and look for any other potential victims in this crash. Theyre also trying to get that work done so that amtrak can go in and repair the tracks and get this section of railroad reopened. This is the busiest section of computer rail in the nation the northeast corridor and train traffic between philadelphia and new york is still shutdown. No telling when that might reopen. What we started to learn yesterday afternoon and overnight is that this train was going really fast. It was going 106 Miles Per Hour. More than double the speed limit in this area as they approach the curve. Focus now is turning toward the engineer of that tlan. A 32yearold bostian that was apparently driving the train. He has spoken to local Philadelphia Police in some form or fashion. He gave them his cell phone and also did a blood test so they could check his toxicology but at this point the National Transportation safety board has not spoken with him. They said they want to do that in the next few days. Obviously its going to be pivotal of what he remembers if anything and what was going on inside the train cab as the train went toward the curve at more than 100 Miles Per Hour. Back to you. Thank you for the update. Lets take a look at todays other top stories. Jeb bush appears to have let slip he is a white house candidate. In a conversation with reporters in nevada the republican said im running for president in 2016 and the focus is going to be on sustained economic growth. However a few hours later he delivered a speech in las vegas and said im not a candidate. He has previously said hes only considering a bid at this stage. Hes confused. Its getting interesting on the republican side while on the democratic side we just have hillary clinton. This will be a late challenger. Who . I dont know. Well have to see. It will be interesting. The president ial 2016 race. Now sticking with politics the u. S. Senate reached a deal to move forward with legislation key to a pan pacific trade agreement. The compromise sets up another procedural vote today on Fast Track Authority and includes aid for workers that lose their jobs due to trade. Two other bills will be considered separately but cant be amended. It will move to full debate in the senate next week. Still to come on the show, fans of the simpsons will be in shock after a surprise departure from the series. Find out more after this short break. New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business welcome back. The dollar has been weakening in recent days and weeks in particular against the euro as that qe trade started to unwind. Lets have a look at the euro dollar which crossed the 114 handle. Up another 0. 6 today and as you can see there significant moves throughout today and it was back a few months ago. Thats one of the reasons we were looking at european equities lower in todays trade. Look at the treasury market. The u. S. Ten year treasury yield six weeks ago was around 1. 8 is nearing its high for the year. Currently yielding 2. 25 . Lets talk about bonds and what to expect Going Forward. The Global Equity Portfolio Manager is still with us here in studio. Edmond, the eye of the storm has moved from the currency market to the bond markets. What do you make of the yields ticking higher . What i think most of all is that bond volatility is going higher. I notice that volatility is definitely going higher and that illustrates a couple of things. The most important thing is that liquidity in the secondary market for bonds is disapointing fast. So in other words, we are going to see more extreme moves because Central Banks have been buying so many bonds there are fewer left for the rest of us. Now if you argue that insurance companies, banks everyone else all the investors out there are buying the same amount of bonds but you have the Central Banks bank of japan Federal Reserve ecb, all are buying up huge chunks of their bond market theres not much left for the rest of us. So that means we get bigger movements in both directions and of course as magnified by the fact that yields are in absolute terms at historic lows. Do people and investors across europe think that qe is going to end sometime soon or sometime sooner than it was or do you think that people thought that the trade has gone too far. Its simple as that. We all know that qe will go for a long time. If you look at the Balance Sheet, its been shrinking. It should be expanding. Theyre supposed to be helping the economy. The ecbs Balance Sheet today is only 21 of euro zone gdp. Look at tokyo. The bank of japans Balance Sheet, 66 of japanese gdp. Rising Interest Rates a head wind for stocks Going Forward . Of course. They always are but are they really going higher . Its gone up but still way under 1 . Were still at levels we have never ever seen before. Certainly not in my lifetime. But you would think that weaker than expected retail sales number yesterday which really came in much lower than what we were expecting. The only bright spot restaurants and bars at 0. 8 . People are drinking and having food but not spending as much on household goods. You would think people would be buying bonds because they want more safety in this type of environment. Yes but thats the real question. Are bonds giving you more safety . You could argue through traditional safe haven value of bonds is no longer there because you dont get the yield. You dont get the income and youre getting a lot more volatility than youre used to. Why are bonds safe anymore. Do those weak retail sales put to bed the myth that Weaker Oil Prices are good for the consumer . No, they are good for the consumer. What they dont do is force the consume tore go down to the shops. Theyre just saving all of that money. Exactly. Youre seeing the u. K. Consumer deciding to save the money and rebuild their savings ratios. Lets face it. If you think longterm and logically, im not saying that everyone does but i need to save for retirement. I need to think about my pension. I need to put more aside. Thats something that people are starting to think about in a time of aging populations. Does u. S. Gdp, does it surprise on the upside or the down side . The second half of the year is difficult to judge because i think q2 gdp, the consensus is still above 3 annualized. The First Quarter was disasterous. Theres a good chance a Second Quarter will not be near 3 . So yes, mechanically i would say as the dollar weakens youre going to get some of the head wind disappearing. The low oil prices are still feeding through but it takes time. Do you think well see stronger growth in europe and in the u. S. In 2015 . No. Never ever focus on one number. 0. 6 everyone gets excited. A lot of it came from inventory growth. That could be reversed from quarter to quarter. I think theres a larger story as to whether its coming from Monetary Policy or Structural Reforms. Have you been to france recently . I live in france. Im waiting to see the Structural Reforms. I would love them. Its true in countries like spain and ireland and maybe to some extent italy were seeing the Structural Reforms but it takes a long time. The euro zone is a slow moving animal. Thank you. Global equity Portfolio Manager. Now moving on. The simpsons may be losing one of its key cast members that voices mr. Burns, ned flanders and principal skinner tweeted wednesday night that his contract will not be renewed. Hes been a cast member since the show began in 1999. Fox ordered two more seasons of the simpsons on may 4th. Fear not because we have found an immediate replacement. Oh my goodness. What does he say, mr. Burns . He does. How did you know . I didnt realize there was a resemblance between the two of you. The shame is im 29 and i look like a cartoon character. I dont know how i keep this job. I hope our bosses werent watching that. You have a young coanchor that keeps you on your toes. You offset the old man image i have. After the break well be talking about burgers and weve been asking you the question throughout whats your favorite burger and where do you like to eat your burgers . Best shop for them. Email us on that topic worldwide cnbc. Com or at at cnbcwex. Well be talking about shake shack owners and smash burger. Smash burger gets set up to test the appetite of the british consumer. Well speak to the director of the Better Burger chain. Thats coming up. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. U. S. Odds look set to break a threeday losing streak but the dollar following as the number continues to weigh on investor sentiment. Delay the debt. Greeces finance minister says athens should be allowed to push back bond repayments to the distant future. Shares in shake shack rise as much as 8 after hours as they beat with the first set of earnings since the ipo. The amtrak train that derailed in philadelphia traveling double the speed limit at 100 Miles Per Hour when it crashed. Well bring you the latest on the investigation. Thank you so much for joining us here on worldwide exchange. Despite yields moving higher stocks stabilize a bit in the trade but its the state of the u. S. Consumer thats the question after the lackluster retail sales data. The dow up 78 points. Nasdaq imlying a higher open with 26 points. Zap s p 500 up about 9. We see the euro strengthening against the u. S. Dollar. Close to session highs at 114 against the u. S. Dollar. A lot of that on the back of better than expected data out of europe. Yesterday euro zone gdp at 0. 4 . Higher growth than what were seeing in the u. S. As well as the u. K. So investors cheering that data but stronger euro not good for european equities and thats why were looking at stock. Lets look at how european markets were fairing. They were trading in negative territory. Now come taufg loesing off the lows of the day. The xetra dax, this is a German Market that you have to focus on given that its the power house housing a lot of the companies that sell their goods overseas. They have been the big winner of the weaker euro and now the trade is unwound. Will the trade continue . Quick check on the ftse 100. The underperformer now. Below the 7,000, a key psychological level that traders watch down about 4 points so thats weighing on investor sentiment. Lets have a look at stock news. Sis coes profit beat forecast as demand for new switches, wireless gear offset sluggish spending by customers and weak sales in the emerging markets. Revenue rose 5 above the companys previous projections. The th quarter outlook is in line with analyst estimates. Shares fell by 0. 7 in after hours. Down about 0. 2 in germany today. John chambers who is stepping down in july also dispelled rumors that the company bid 9 billion for fire eye which is up about 0. 9 today in frankfurt trade. And another stock on the move is shake shack. Shake shack reporting a surprise First Quarter profit. The first set of earnings since its ipo. Better than expected revenue as same store sales rose nearly 12 . Well above analyst forecast of 5 . Also raising its full year revenue outlook. Shares up about 9 in after hours trade the founder plans to open two stores in the u. K. By the end of this year. They now have over 300 stores in seven countries since being founded in 2007. Joining us now is the managing director of smash burger u. K. Pleasure to have you on the show. Good morning. The end of the day a burger is like pizza. Anyone can make it. Howdy differentiate your brand from the rest . Actually making a burger is more technical than that. We smash our burger on to the grill on a hot buttered grill and it creates a caramelization on the bottom of the patti and what that does is keep all the delicious flavor inside the burger so that when its turned over we can deliver a product and burger thats absolutely amazing every time. I almost have to stop you there youre make megaso hungry. Does it come down to the quality of the beef or other ingredients sf whats the number one factor . Its all of those things. Its the quality of the beef itself. We use cows in the u. K. And its the environment. We have a fantastic urban design in our restaurants. Its the service style. You can come up to the counter and order and well serve the food to you and well serve our hand spun milk shake, the rosemary fry which is are absolutely delicious. All of those things add to make the experience at smash burger unique. Broadly speaking the consumer is shifting to healthier options. Were seeing that being one of the big challenges facing fast food chains. What do you make of that . How are you making your products more appealing to that consumer . Its important to appeal to all consumers. We do have a fantastic product at the top end of the range but we also have a rage of salads. Theres an opportunity for people looking for something more Health Conscious to have a salad or have a delicious truffle mushroom swiss burger with all of the trimmings. I want to reference shake shack. The stock prices soared since the ipo. Are people pumping too much money into it . You can take a look at the results of shake shack and realize there is still a huge appetite for burgers and across the board theyre doing very well. Smash burger when we launch in the u. K. We have the first two restaurants before christmas and well move to open four or five in the beginning part of next year and were aiming to take that to really 30 Stores Within the next few years and once we got to that point well be able to rebalance and look and i think actually the market in the u. K. Is stronger than that. Whats the price point going to be in the u. K. . Because burgers seem to be priced the same in numerical values but the currency is different. We have to pay more for them in london. Its about 10 or 15 pounds. Paying 12 pounds for a burger is too much. We wont be charging 12 pounds for a burger. Well be looking at the price points to be competitive within the market here in the u. K. And were looking at locally sourced and produced products which are different to the pricing structures you can have in america. Whats the price of the burger going to be. 10 pounds for a meal. So burger fries and drink. So you get delicious rosemary fries or sweet potato fries and the hand spun milk shake or craft beer as well which is doing localized craft beers in each of the towns. Thank you for joining us. Much appreciated. Uber poached googles longterm pr chief to help improve its business. She will replace former obama advisor who was hired less than a year ago. He now joins ubers board. He is a former political operative in the u. S. Working for michael howard. She helped manage antitrust and privacy battles with regulators in the u. S. And europe. Any news around uber we cover because of the big valuation. 50 billion an hour apparently. So any move, any change to its employer or staff. Its a big story isnt it . Yeah. Now, coming up still here on worldwide exchange, its a battle for your retail dollar as walmart gets set to mount a challenge to online rival amazon. Well bring you that story after this short break. Welcome back. The amtrak train that derailed in philadelphia was going faster than 100 Miles Per Hour before hitting a sharp curve and crashing tuesday night. Thats twice the speed limit for that section of tracks. At least seven people were killed while 30 remain hospitalized. Joining us now is chris in philadelphia. Chris, what else have we learned this morning on the train crash. Yeah in the last couple of hours weve seen one of the train cars be removed from the scene here. It was on a flat bed truck and wrapped in plastic. It will be taken off site to be investigated further. Work continues behind me a couple of hundred yards away as investigators do a few things. One, theyre looking for any more clues that can give them some idea of what happened during this train crash and also looking for other potential victims. Its not clear how many other people are still missing and theyre trying to get the debris out of there. This is one of the busiest sectors of travel in the United States states. Now focus is turning here. Theyre trying to figure out what exactly was going on in the train cab that lead it to be going at 100 Miles Per Hour. More than double the speed limit heading into this curve. Philadelphia police say they have spoken with him in some form or fashion and they got a blood test from him and they have taken his cell phone but federal investigators have not interviewed him yet and they would like to do so to see what recollection he has if any of what happened during this crash that might give them answers of exactly what happened here. Were also learning more about the 7 people that died in this crash. One of them was a navy mid shipmen he was on break from the u. S. Naval academy and heading home to queens new york when this train derailed. Also there was an executive here in the u. S. And employee killed in this crash. Well learn more as the hours pass later today. Thats story in philadelphia. Back o you. Thank you. Lets switch our attention to earnings because were getting close to wrapping up earnings season and technology was expected to be a bright spot but so far the quarter has been mixed. Much of that having to do with the negative impact of the stronger dollar on some of the big multinationals that make a lot of their revenue overseas. Now we had some winners, some losers cisco beating expectations but i wanted to keep an eye on go daddy with a 17. 5 jump in sale thanks to customer additions and increase in revenue per user. The stock which popped on its first day of trade rose post earnings and you can see over the past one month up about 4. 5 . Yes, indeed. Well stick with the online story next. Amazon has long dominated the Online Shopping world with its promise of free or mostly free twoday shipping but now walmart wants to become a prime challenger to amazon on the web. To deliver us all the details on that story lets get out to landon standing by in cnbc hq. Good morning, walmart is aiming to scale up its Online Business which has seen a slow down as it tries to gain share from Market Leader amazon. The retailer is planning to test a new unlimited Online Shipping Service this summer for 50 a year. Thats much less than amazon prime which costs 99 a year. Walmart says this is part of an overall strategy to serve customers increasingly searching for and buying products on their computers and mobile devices. For now the service will be invitation only and offer more than 1 million items including toys and electronic gadgets. Products will be shipped within three days and the service wont offer any free video or music streaming but that could be changed. Amazon launched amazon prime in 2005. Now prime is a key part of amazons growth. Prime memberships rose 50 in the u. S. Last year. Walmart is reportedly teaming up with alibaba. It will begin accepting the chinese ecommerce giants mobile Payment System called alipay at 25 stores in southern china. More than 400 other stores will join the program soon. Walmart plans to expand its operations in the country last month. It said it would open 115 new stores in china by 2017. Wilfred back to you. Landon thank you very much. Now the white house played host to leaders in delegations from the Gulf Cooperation Council last night with president obama seeking to dispel fears over Irans Nuclear program. The president also gave reassurances about u. S. Saudi relations. The United States and saudi arabia have an extraordinary relationship that dates back and were continuing to build that relationship during a very challenging time. And hadley joins us on the set now. Its complicated. That sound bite as to anyone thats interested in the mideast Peace Process is quite disturbing and who prepped the president quite frankly . Go out there and make reference to a historical relationship that started around the time of fdr but getting it so wrong. Fdr met with the founder of that country. He did not meet with the king responsible for the oil embargo. But talking about that its one gap of many in this relationship and it plays unfortunately into the broader narrative which is that the United States doesnt care about the relationship. Had they been caring about the relationship you would understand as president of the United States, especially one that made the Peace Process as part of the agenda this is one of the reasons that the middle east and arab countries in general question the United States because this all dates back to palestine and what happened with israel and quite frankly when youre sitting there and watching this as an observer as someone that spent years in washington its quite shocking he would open his mouth at all. What do we expect next . Certainly nothing really big coming out of this meeting. This was one of the things that was a Sticking Point for the arab countries was they werent going to get anything big or historic in terms of reassurances in the face of the Iranian Nuclear negotiations. Maybe theyll be working tougher on it together. But at the same point i dont think youll hear much news out of this and it hasnt done much for the relationship. Absolutely. Thank you for getting us the latest. Lets move on. The u. S. Senate reached a deal to move forward with legislation key to a pan pacific trade agreement the day after democrats dealt a blow to president obamas agenda. It sets up another procedural vote today on Fast Track Authority and includes aid for workers that lose their jobs due to trade. Two other trade bills will be considered separately but cannot be amended. If the bill clears a procedural vote it will move to full debate in the senate next week. Former Florida Governor jeb bush let slip he is a white house candidate. In a conversation in nevada he said im running for president in 2016 and the focus will be on a sustained economic growth. However just a few hours later bush delivered a speech in las vegas during which he said im not a candidate. Bush who has confirmed he will skip the iowa straw poll previously said he is only considering a bid at this time. Hes clearly a little bit confused at this stage. Now before we go to break, lets remind you of the headlines. U. S. Stocks look set to break a three day losing streak but the dollar is down sharply after weak sales. Another day, another delay. Greeces finance minister looks to push back Debt Repayments to the ecb and shake shack cooks up an earnings beat boosting the stock in after hours. Were back in 2. The goal tender held the caps soreless for the final two periods of overtime. Quite the celebration. The simpsons may be losing one of its key cast members. He voices popular characters including mr. Burns tweeted wednesday night his contract will not be renewed. Hes been a cast member since 1989. Fox broadcasting ordered two more seasons of the simpsons. Can the show go on without mr. Burns. The character can surely go on. I was going to say its not just one character. Its not like losing somebody and you write them out of the story. Its four characters. Its the voice, though. But the voice is iconic for that show, right . Is it . I dont know. Im not a massive simpsons fan. The story is around a dis dysfunctional american family. Its popular as it is in the u. S. These characters and the voices with them are pretty important i would think. But im not a fan. But four characters does the voice. Thats pretty impressive. Good word there. Thanks very much. Very nice wilfred. What do you think . You can email us at worldwide cnbc. Com. Tweet us at cnbcwex. Wilfred is trying to catch up in terms of getting as many followers as i have. Please follow him wilfredfrost. Ouch. But i accept the invitation to more followers. Thats very harsh. Were going to move on and the greek finance minister says athens Debt Repayment due to the ecb after july and august should be pushed back. He made the comments in the last 30 minutes during a keynote address this after saying it was working toward an honorable compromise. Lets have a look at the euro dollar. Its been one of the big movers and it is once again today up 0. 54 . The euro continues to strengthen as that euro qe trade started to unwind in recent weeks. 11417 is what were looking at for if euro dollar at the moment. Another sharp move in the bond market yields ticking higher. Lets take a look at what were expecting in the european markets. The ftse 100 down about 7 points. The xetra dax and cac 40. Italian markets up about 85 points. Its the treasury market catching the attention of investors. Theres now less certainty. Looking at the ten year note. Lets give you a run down of this trading day. Weekly jobless claims expected to rise modestly. Also 8 30 april ppi. Prices arent expected to change much from the previous month. Kohls before the opening bell. After the close we hear from Applied Materials in orderstrom candy crush maker king digital and party city. Taking a look at u. S. Futures indicating a higher open although the uncertainty in the fixed income space seems to be tempering investor enthusiasm right now as we are looking at yields higher but the dow brushing that off at this point, the gain in premarket trade. Lets have a quick look at the oil price as well which is mixed as you look at that. Wti slightly down. Brent slightly up. It recovered over the course of a week. Mainly because of the u. S. Dollar softening. Brent 66. 98. Thats all we have time for today on worldwide exchange. Thank you for joining us. Im wilfred frost. Im seema mody. Well see you tomorrow. Next up, squawk box. Ts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. Shop until you drop. Whats happening in the house. Walmart making a major move on amazon launching an unlimited shipping service to compete with prime. And a big win for the new york rangers beating the capitals in game 7 overtime, to advance in the nhl eastern conference finals. Its thursday may 14th 2015 and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning and welcome to squawk box here on cnbc. Im here along with joe and steve. Becky and andrew are off today. Tough news for simpsons fans this morning. One of the shows most recognizable voices is leaving after 26 seasons with the animated series. He is the voices for mr. Burns ned flanders and principal skinner. He tweeted the news saying this because i wanted what we always had the freedom to do other work. The comments suggest the departure is over a contract dispute. Fox renewed the simpsons through 2017 which is another incredible story in and of itself. Now to the business of the