Ups, we saw safety stocks but you can see the headline market moves not that dramatic. That is something we will be watching for. When you look at the big mover, cocacola was the biggest drag on both indexes. It fell as much as 5. 5 , about 18 months were 18 months worth. Exceed analystt estimates. Investors want to see more evidence of a turnaround and did not edit from the latest set of results. Andut its year to date gain half and is only up 4 . Joe we keep saying this every day new lows in japanese bond yields. Again, hitting a brandnew low. An opposite story while equities were quiet, we saw a decent jump up in the curves with a twoyear yield hitting. 8 percent and the tenure jumping up to 1. 85. Lets check in on some currencies because even though everything has gone quiet in the stock market, there is quite a bit of volatility in currencies, specifically emerging markets currencies. The turkish currency is at its highest level after the Central Bank Governor cut rates in line with forecasts. There was some concern about political influence on the central bank in turkey. Take a look at the swedish currency it in a pretty big high just last week. A lot of people talking about whether they will have to embark on stimulus measures but they have already done quite a lot. Joe check out oil. It has been the story of the week. The kuwait strike for why oil is buoyant. Up nearly 4 ,lly, helped by oil data out of the u. S. Showing production continuing to decline. The theme is that it has just been going up. Thatet we have qualcomm just reported earnings, beating analysts estimates. . 96 on average, but revenue missing the consensus for when you look at the current quarter, they are getting a current forecast that could go higher than analysts were looking for. , when itnsus estimate comes to Third Quarter etf forecasts, it comes in a little light, looking for as much as one dollar. Qualcomm perhaps disappointing investors with its outlook. We have some headlines about how it says it has resolved in arbitration dispute with lg. Lets take a deep dive into the bloomberg. Function at this the bottom of the screen. Im going to playoff on the japanese 40 year bond. We have to build off of it. The 40 year bond yield is in good company. The white line is this swiss 50 year yield, both yielding 30 basis points. Both countries adopted a negative interest rate. A good article talking about how the Central Banks are feeling the pain because they cannot put money into securities and reserve managers have to act aggressively. Some investors will find that very ironic. I am looking at iron ore. Remember in march, there is a big iron ore spike and every analyst said it was unsustainable and cannot last . Up two dollars per ton, higher than it was at that level, so this broad commodity commoditieslk about everywhere doing really well and this huge spike, iron ore was in the 30s and now at 64, so we are expressing some optimism about chinese demand. Scarlet and that turnaround came in december. Joe we were on here and we were like this cant last. It is amazing how much it zoomed up again. Tracy i think i have something slightly more pessimistic. Have exchanged traded notes and we see this massive rally over the last couple of weeks. We see the vix fall and theres not so much fear out there. Meanwhile, we have seen inflows and these two Exchange Traded notes really explode. This is people betting the vix is going to come back. It seems like theres a lot of sentiment were people dont trust the rally or at least need to head their portfolios. Likepeople are still theres a reservoir of skepticism. Its the last moment when everyone capitulates. Scarlet you can see all these charts and more on twitter. Our first guest is the Deutsche Bank director of Foreign Investment strategy. Begin, lets get down to the big news in u. S. Currency. Scarlet the Treasury Department announcing Harriet Tubman will be replacing andrew on the center of a 20 note. She will be the first woman featured on u. S. Paper currency. Alexander hamilton will stay on the 10 bill. It is kind of funny as we talk about the transition to a paperless world that we are fixated on who is actually on these dollar bills. Sebastian a currency is a symbol of our past and future. You talk about the values of standing up when everyone is asking you to be on your knees and its only a positive message. Is something you should essentially cherish. Currency analyst, are you interested in the physical appearance of the currency . Sebastian i love collecting currencies from around the world. Russia, brazil, free much anything. It is fascinating. It essentially gives you a sense of trust that there is a unit of account and is used for exchanges. Its also highly relevant because most of our transactions are on a nonpaper basis. Of paying forct something is very important. You cannot pay your taxes with one cent coins. Go back to the Digital Space where we look at lines going up and down the screen. One of the big surprises has been the weakness of the dollar. See further dollar weakness . Has turnedthe dollar around in the right direction and is in the process of correcting stop what we have learned is currency can become quite unstable as like the dollar and on the yen side. You are starting to see the first elements of that normalization. Scarlet a quick interruption because we have earnings from American Express. Earnings per share of 1. 45 to beat consensus estimate of 1. 33. I have to wonder if we are comparing like with like. At first blush, it does look like a beat. Revenue also higher than anticipated. We know that American Express has been facing some struggles because it has not been able to generate a stronger build business. You can see the stock ticking lower and now hire moderately. Scarlet it also reaffirmed its fullyear outlook. When you look at what the next big trade will be in currency come along dollar has become a faded trade. Long yen is too overcrowded. What would be the catalyst for the next trade . Sebastian on the shorter term, as the consolidation of the dollar and the yen. That may last for a while because u. S. Data probably wont be good enough for the feds reprice. Once it does, you will get more of a dollar strength. The reversalm is of that process. Scarlet and the reason we are showing that swedish currency chart is people are looking very hard for the next big when her. Topped inflation data analyst estimates. Maybe that is the way to go. This seems to be the big debate. What exactly can Central Banks do in the face of rising currencies . What can they do to drive it down . Guest the answer is difficult once the currency is cheap. Its much more efficient to hit it when it is expensive. Helps to some extent. It becomes cheap, it is much more difficult to move it. In the case of the dollar, the fed wanted to weaken it and to some extent, it wanted to be a little more dovish. Central banks are efficient and pretty good at doing what they need to do. Tracy always nice to have you on. Scarlet yum brands earnings out in just a moment. Mark lets get to first word news. U. S. Authorities say a nearly halfmile long tunnel leading from mexico to san diego, california has been discovered with more than a ton of cocaine and seven tons of marijuana seized. The tunnel extends 300 yards from house in tijuana to the yards tor and then 500 a fenced in lot in a san diego industrial area. With als say it was a real system, ventilation, lights , and a large elevator. Six people have been arrested. The death toll from flooding in houston, texas is now eight. Major highways remain close after the rains that started sunday overwhelm houstons bayous. Suggests most people are not facing the urgency of mobile warming because it has made the weather more pleasant. 80 of u. S. Population lives in places experiencing utter weather than 40 years ago, but the study notes that if he trapping gases are not controlled, nearly nine out of 10 americans will have noticeably worse weather by the end of the century. Obama met with the saudi king today as part of the visit that includes a persian gulf summit. The white house has said the region will focus on stability and the fight against Islamic State and al qaeda. Global news 24 hours a powered by our 2400 journalists in more than 150 news bureaus around the world. Newset we have breaking from yum brands. First quarter adjusted earnings per share of . 95, higher than the consensus estimate and better than the most optimistic estimate out there. In terms of its First Quarter china unit comparable sales, that was up 6 for the quarter. China sales of percent when the consensus estimate is for a 2. 1 increase. This is a big beat on the china side and China Matters so much because yum gets half of its revenue from china. You were looking at the china separation and how that is on track. Track to be spun off by the end of the year. Overall, sales of 5 and kfc unit sales are a bit behind estimates. A little bit of negative news there but the big beat on china, sales seems to be the headline. Scarlet and they are raising their Profit Growth guidance to 12 as well. It is all about the china numbers and comparable sales, isnt it . Is. T it its half the revenue and almost half the prophet. As does china, so goes yum brands. Everyone is looking to see when they split this off, what does it look like. Tracy we know that china has been on a buying spree. Is there something in particular about the yum brands that attract china to that company . Theres more local competition, but is still a huge player. It has been around and is an established brand. Its a wellknown player in the market. Scarlet because it is wellknown, it is not the sexy brand at once was when it launched in the 80s. Guest ucf, when there is a new shake shack that is open. Thats part of the reason they have struggled in china. Theres not that buzz, but phil very big. Kfc does extremely well in china. Read through these results to tell us about anything in the economy there or the Chinese Consumer . Tough. I think it is the big thing is the supplier scandal. It is tough to separate that out. Likestarting to look supplier thing is in the past. Thats the biggest news to me. Assuming they get money from china, theres talk about a Dividend Increase or share buyback. Guest those are things that they have said. Theres the question about whether its a good use of capital. The big thing is how they do in the u. S. Taco bell has been a good thing, pizza hut, not so much. I think they have to turn their attention to getting kfc and pizza hut back on jan back on track. Coming up, a lot going on in the Global Markets after the meeting in the Oval Office Old without an agreement. Scarlet president obama arrived in saudi arabia and met with the king as the kingdom faces economic pressure from the fall in oil and a costly proxy war with iran in syria and yemen. At the companyeo that uses analytics to address some of the worlds challenges. Chooserabia appeared to politics over economics when pulled out of the dough hot discussions. Is that a canary in the coal mine in terms of how an oilproducing nation can reach an agreement in the future . It is a kind of canary in the coal mine. But this has not been anything new. And is basically a cartel for a cartel to court made anything from production to a quota, they need to be able to trust each other. Because they dont trust each other, they fail to reach an agreement. What we see going on with opec is nothing new. This has been a high point in their failure because of some of the stuff saudi arabia has been involved in politically. But it is nothing new. Joe the question of his opec said it feels like such a cliche at this point. Delhomme talks failure and oil has strengthened and than we saw the story about a kuwait strike and the kuwait strike ending. That did not seem to have any effect on the market. On relevant tong the market in the short or medium term . Guest i dont think so. I dont think what is going on in the region is that relevant with some of the global macro trends we are seeing. If they were able to coordinate some type of quota, we would see a better rebound on the price of oil. I dont think the things that are going on in the region have a significant impact. Scarlet mentioned politics driving saudi arabia. What are the levers the country can pull in terms of offsetting declining oil prices . We have seen it cut back on markets and cut International Debt markets. What else is there . Guest one of the levels they could have pulled is coordinating a quota price. That means they would have to sacrifice the market share. That would have required for them to reduce their production doubles which they are unwilling to because iran is entering the market. The iranians are willing to set a vote of that they do not feel like they should be party to reducing their production as they are just beginning to reenter the market with relief from sanctions. Joe that seems to make sense from irans perspective. If you are under sanctions, why would you want to immediately outputnds joining this phase . To your point, that is exactly what is going on. It is the classic case of the prisoners dilemma. Because they dont trust each other and it would require a shortterm sacrifice for certain members for a longerterm price stability, we do not see that happening. Scarlet you talk about how oil prices and violence to really have a correlation. Talk to us about that. Guest that is absolutely true. We looked at the price of oil going back 15 years for all the major producers and exporters and we showed that as the price of oil goes up, violence goes up. If the price of oil goes down, violence or down. Instability, it is for factors other than the price of oil and declining prices are much more likely to reduce prices rather than increase it. Tracy thank you for joining us. Scarlet coming up, is corporate debt in the Energy Industry reaching unsustainable levels . You shouldnt have to go far to get the help youre looking for. Thats why at xfinity were opening up more stores closer to you. Where you can use all of our latest products and technology. And find out how to get the most out of your service. So when you get home, all you have to do is enjoy it. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Shoshow me more like this. E. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Scarlet breaking news on united First Quarter adjusted earnings were higher than analysts were looking for. Revenue matched consensus bang on. The metric use measures profitability for down at 7. 4 . For the second quarter, united season down between 6 and 8. 5 . Continued deceleration there. Lets get to Mark Crumpton with first word news. Mark two michigan regulars and a municipal employee in flint face evidence tampering and other charges in connection to the citys lead tainted water crisis. They failed to discharge their duties. They failed in their responsibilities to protect the health and safety of families of flint. They failed michigan families. Indeed, they failed us all, i dont care where you live. Mark when asked if there would be more charges, he said i can guarantee you. Have taken aakers step in directing another 126 million to deal with the water crisis in flint, including 25 million to replace underground led types. Five new Orleans Police officers pleaded guilty to lesser charges of the deadly shootings on the danziger bridge following hurricane katrina. Most will be released between one and six years. The guilty pleas come after the shooting deaths of two unarmed people and the wounding of four others on the bridge less than one week after levee failures swamped the city. The Trouble Department of Veterans Affairs is a new chief watchdog. President obama nominated him to be the v. A. s Inspector General in october. Lawmakers have long sought a permanent Inspector General to provide timely decision on benefits. The sweltering heat that has gripped india for three weeks has killed more than 160 people. Temperatures are as high as 113 degrees in some parts with relief from monsoon rains likely weeks away. India is also dealing with severe water shortages and drought affecting more than 300 million people, about one quarter of the countrys population. Global news 24 hours a day powered by our 2400 and lists in more than 150 news bureaus around the world. Lets get a recap of todays market action. When you look at equities, at one point, the s p 500 was at its best levels since july. That rally faded in the afternoon. Sinceat its best level december but nothing like the gains we saw earlier. a big day for oil today it might come as a surprise because of the kuwait strike. Some Industry Data and production data. Balanceback into despite the failure of the talks. One thing i was looking at was the high yield etf. It has been following the direction of oil and is up today, but not as much as you would think given the price action in crude. Scarlet whatd you miss . Where one company succeeds, another fails. Lenders lifeline from when it comes to bankruptcy. Lenders have yanked 5. 6 billion of credit from oil and gas reducers, making it the most severe retreat since crude began tumbling in mid24 team. Companies struggling to survive by more time . Our next guest has decades of experience. He joins us now. Tracy im going to jump in right here because when i feel we talk to distressed debt investors, they are always talking about the next wave of opportunities being on the horizon. We see all the pain on the Energy Sector and its now time to come in. Obviously, there was a temporary slump in high yield bonds a couple of years ago and theres been a nice many recovery. But if you look at the default rate, it is obviously moving up and not down. Longerterm, you are going to want to wait your turn but it is too late in the oil sector. Its obviously time to go into the sector. Last y