Transcripts For CNBC Squawk Box 20140410 : vimarsana.com

CNBC Squawk Box April 10, 2014

Internet and biotech names lead the way. It added 7 points. In europe right now, markets around the globe taking cues from what theyve seen right now. I take that back. You see red arrows. The dax in germany down by 0. 4 , the cac down by 0. 4 and the ftse down by a few points. Dow futures down by 52 points below fair value, s p 500 futures off by just over 6 points and thes that dock down by about 15 points. The bond mark set where a lot of the attention is being paid. The tenyear is 2. 545 . The markets get the weekly jobless claims report coming at 8 30 a. M. Eastern time. Economists are expecting a reading of 320,000, down from last weeks reading of 326,000. Right now lets get over to andrew. He has some of todays top corporate stories. Thank you, becky. Big news this morning. This may weigh on some of the regulators in washington. At t is in advanced talks to bring ultrafast internet to six North Carolina cities with speeds up to 1 gigabyte per second or ten times the current fastest options. The wall street journal reporting that the Telecom Giant has been exploring the initiative for months. The cities which include chapel hill and raleigh issued a request for proposals for which at t responded. Google announced in february it, too, was considering North Carolina among dozens of areas to expand its fiber network. They began offering upgraded service in austin with speeds up to 300 megabytes in december. When i said this matter for washington, it matters in the context of the comcast Time Warner Cable deal. Comcast, the Parent Company of this network. Theyve argued that in fact theres more competition out there constantly and this is going to be referred to as one of those. Also this morning, becky, a little bit of news for you, blackberry, though youve given up on your blackberry. Im using it right now. I have not given up. They may be considering exiting handsets completely. You may have an antique there. I knew thisay the ceo says would consider such a move if it remains unprofitable. A time frame for such a decision would be short. Blackberry is looking to expand its corporate reach with investments, acquisitions and partnerships and take a look at shares of blackberry given that news. 8. 10. Thats up its up on that news if you can believe that. What else do they do . What they do, they have servers. The secure servers. The secure servers push everything to these devices. Also, a key departure coming from apple. Greg christie, a Vice President in engineering that helped develop the software for the original iphone plans to leave the Company Later this year after being with the company 18 years. His group is credited with developing the slide to unlock function that we use every single day. For those of us with an iphone. His departure comes from the company as johnnie ive increased his roll in the company. He had organizational control over the Software Group before. This may be removing a longterm executive who apparently has bristled at his authority. Thats a bit of the inside dope, inside the Corner Office at apple. That stock up to 530. 12. Is a gig gigabit. Different than a gigabyte. I see one times ten to the ninth. Its very complicated. A gigabyte gigabyte. This was a bit. I think a bit is more than a byte. For you its a byte. Were being told it was a byte. It was spelled bit. Eight bits per byte. This is bits, isnt it . This story involves bits. Its not a gigabyte. That would be an error. We dont like errors. What is your verdict, if you are talking on camera and its running out of your nose, do you a, pretend you dont feel it or see it. Hide under the desk. I get it. I understand. Which do you do . I think you do what you do. Pretend you dont see it. You do what you did. Otherwise part of it is youre on three hours a day. Youve been doing this for a long time. Its method acting. I pretend and let it drip. Do you remember how in g1 theres a kleenex box right there. Whatever he was feeling at the time. I think youre right. You cant expect im not going to make fun of you. Its method acting. My ass itches. Aaah too much information. We had to walk in and see this. We had to walk in have you ever seen someones butt crack on the cover of a newspaper . Is that what weve come to . I think we have. They dont normally do that. Thats elaine. I dont want to see i dont want to see bidens ass, do you . Why do you keep saying that word . Youre not allowed to say ass . I think you are. How about butt. Ive had it stream down my face on the air. You dont think people at home see and go, whats wrong with him . Im hoping it drips down. Let me read this walmart story. Then i want to talk fed. Did you see the tenyear today . 2. 654. 2. 65. At this point what im surprised about is that we can still get a bump from the fed. I thought at this point the fed, theyre getting out, we need the economy to validate the stock market. Do we still bid it up because of an accommodative fed . Thats what i dont understand. Its not tapering in this case. Now you know what were hanging our head on. How long they stay with low rates. Maybe theres validity to that. I think this is the cup half full or half empty . I think not getting inflation above zero or 1 , thats what japans problem has been. When the stronger economy comes theyre going to raise rates. If you read the fed is worried about low inflation, i dont bid it up 180 points. I think there will come a time when its like were not going to do 3 . Do you think people will realize today . Were flat on the year. Were up a little. It only takes us one day to put it flat again. Were getting nowhere in 2014. Its tough. If it was the fed that did it and theyre getting out, its going to be tough to make any more advances until the economy does. Im not convinced. He sent me something. Did you see this in france . Bill miller today. He thinks everything is a screaming buy. Well talk to him. Sterling sent me something yesterday. I dont know if weve do an executive edge. A new Labor Agreement in france, where its a 35hour workweek, theyve gotten an agreement where no emails or telephone calls can be made after work. So to be more you cant rely on you most of them are in that mode already. Dont dismiss this. They work long hours. I called cantino at 9 30 last night. He picked up the phone. Thats a thing of the past. Youll have to turn off your business phone now. Is that when you added donahoe . Potentially. Potentially. Potentially. I dont know what youre talking about. Ill send this to you guys. Lets go to walmart. Let me send this to you guys, this no afterwork email. He said he wouldnt buy another hotel in france. A new french labor deal, literally, unionists are hailing it as a milestone in human evolution. It will return society to move civilized practices where youre not allowed to get correspondence from work once you leave the office. Can i make a comment . Theres a great article about how how on wall street theyre making the kids cant work on saturdays and sundays. At least one day. What they discovered is that the kids work just as much as they ever did but they work at home. Not at home. It gets pulled to the other days. Right. They pull allnighters on the other days. If theyre not taking the calls after work, it will get expanded some other place. They will get to full employment because theyre divvying up the work for everyone. Unfortunately employment is like 11 . They thought it was a good idea to start. Walmart is partnering up with wild oats to bring more organic food to the masses. It says here at nonorganic prices, wild oats launch will roll out in 2,000 Walmart Stores and add about 100 items to the retailers 1,600 item organic food offerings. According to the organic trade association, sales of organic food and beverages in the u. S. Reached 31. 5 billion in 2012. Its popular. People pay more. They think its organic. I like gmos. If you can make it so you dont need pesticides. My idea is for chickens with like six wings. Thats a little weird. You like chicken wings . Yes. How about three breasts . Dark meat or white meat . How about three breasts . Huh . It makes sense to me. Made sense to me. To do it that way. Some people might not like that. I like the idea of something you dont need pesticides for. Then you wouldnt really be able to catch it. Thats a little weird. Let me tell you about more weak data. Chinese trade data showing that exports fell unexpectedly for the second consecutive month in march. That was the worst showing in more than four years. Exports fell by 6. 6 in march from a year earlier after an 18. 1 slide in february. And imports fell 11. 3 . That was their weakest performance in 13 months. All right. The reason hes here is because its the constitution and they got john hancock. Rolling stone doesnt known that john hancock signed the declaration of independence, not the constitution. It was an art director who im sure i messed it all up. You know what brian said last night . He thinks hes funny. He said no word on whether if they had known in hindsight whether they have have changed it. So to speak. Thats a cheeky response. Its a cheeky response. See what the yield was . 5 to 5. 5. Greek government planning a widely anticipated debt sale for the First Time Since 2010, cnbcs chief International Correspondent Michelle Carusocabrera joins us now. It wasnt that long ago we had 5 stuff here. It was like 15 years ago, wasnt it . Right, right. We used to sell 5 five years. So long ago, right. Its not that bad, though, for them. Its fantastic. The guidance is morning is 4. 95 . Its a screamer. This deal is a screamer. The original rank was 2 billion to 3 billion yesterday. Maybe 2. 5, now it looks like 3 billion euros theyll be able to borrow at a yield of less than 5 . The order book is huge. If you watch squawk box every day, you know when european bond deals price, you usually get it somewhere between 5 00 and 7 00 in the morning. This is so big and they have to many allocations, they think it will take several hours before we know the absolute number. Theyre thinking 4. 95 . Heres the head scratcher. Debttogdp profile is 177 according to citigroup. Why are people eager to lend money to a country that is still pretty much insolvent. Investors are absolutely hungry for yield. Thats a big one. The other reason is that weve got private sector haircuts are not necessarily popular with european leadership. Remember, they punish the private sector so brutally during the debt restructuring for greece two years ago, theres not much appetite to do that again. They also dont think it would help very much. Also, the ecb, dont forget, theyve got your back. We keep hearing about the possibility for quantitative easing when it comes to the European Central bank. Also, a really improved debt profile. When they did greeces restructuring they ended up with more debt than what they had before. Now greece owes it to the official sector. Other european countries, european taxpayers. Guess what . Greece doesnt have to start paying that back until 2023 with little interest deferred. Principal deferred. Its a sweet deal they got. If you do this deal pricing today, its only five years. By virtue of the calendar, you end up senior to all that debt thats pushed out to the future. This is why they are able to borrow at less than 5 . Its pretty incredible. Its a big milestone event for the country which, remember, set off the european financial crisis. Guys, back to you. I dont see, if youre covering this from over here, your credibility is i asked. I asked shouldnt we be in athens . Because it is 70 degrees there today. I think you should be in the general vicinity, like santorini. Live from santorini. Talking to the common man. Youre right. One of the reasons were here is because i have to interview the italian finance minister later this morning. Hes here in washington. Thats no reason either. Thats the excuse. Like the guy that catches the octopus in mikinos. This is clearly a loss. Were losing credibility. Every minute that youre here and not in greece. Im with you. I need to get paid. Tell nick. All right. Okay. Thank you, michelle. See you later. Coming up, much more on the market rally sparked by the fed minutes. Well figure out if thats a good thing or bad thing. Plus, todays executive edge. Could the color of your Conference Room ruin your next deal . Well talk to an expert who says the answer to that is yes. Shell explain why the color of your office might be whats making you feel bored at work. Squawk returns with that and a lot more, just a moment. [ male announcer ] when fixed income experts. Work with equity experts. Who work with regional experts. Who work with Portfolio Management experts, thats when expertise happens. Mfs. Because there is no expertise without collaboration. Its not easy being green it seems you blend in with so many other ordinary things have you thought about using the color, the psychology of color to help boost productivity in your office . Studies have shown that certain colors are better than others when trying to get the most out of your workers. The color green apparently inspires creativity and white makes people feel bored. Maybe thats why everyone is so bored, the walls are white. Our next guest is an expert in using color and psychology. Tell us about this, sally augustin. There are colors offices can apply that will enhance the performance of their workers. Environmental psychologists have learned that when people are in a space which is primarily green, theyre more apt to think broadly and that leads to creative thought which is something thats real important to all of us today in no matter what job youre doing. I have not been to many offices where the walls are green. What kind of green are we talking about . Bright green, dark green . All greens seem to produce this mindopening effect. The kind of green you want to use on the wall of the offices would be a light sage green because that green will produce this creativity related effect but it will also make the space seem larger and it will make people in the space feel more relaxed as well. Im relaxed looking at your coat. Look at my tie, sally. We are a great minds think alike here. Thats right. Thats right. Every meeting that ive ever been to, i cant make it through i put my head like this in these Conference Room meetings. Because theyre white. Every once in a while i fall like that. I fall like that or i drop my pencil. The white walls put me to sleep in the Conference Room. The one thing i disagree with is yellow. Its difficult with white. When were in a space with white or beiges, we tend to mull over the thoughts that are running through our head. Unfortunately for us as a species, lots of things that are running through our head really arent that upbeat. It produces this stress. I hear crickets. Thats all thats running through my mind in these meetings. Thats why i fall asleep. Whats orange . Is that something youd put in a store, the idea of good value . You wouldnt put that in an office, would you . Well, you could put it in an office if you have a retail section of the office. Every so often theres a retail area appended to more traditional workplace area. But you might use it in your say a call center if you wanted to remind the people who are working there that value was one of the important attributes of your brand. And pink, have you had a good experience with pink on the walls at the office . Well, pink has its place. When we look at pink, we calm very quickly and stay calm for about 20 to 30 minutes. It can be handy to have a space thats the color of peptobismol pink in your office. Thats a darker pink. You want a peptobismol pink. Very specific about the kind of pink. Thats more of a bubble gum pink as opposed to a light pink. Yes, thats correct. Its the color of peptobismol that has this great calming effect on it. Calms us for 20 to 30 minutes. For most of us if were calm down for 20 to 30 minutes, that gives us a chance to regain our composure, no matter what kind of argument weve just had an argument with a klein the or whatever. It gives us an opportunity to regain control and return productively to our workplace. And for colleagues that are meek, we should put them in a black room because that will make them aggressive . Particularly in uniforms, people tend to behave much more aggressively. I like yellow, though. I know you said thats the most disliked color. Yellow makes me happy. Were soulmates then. I really like the color yellow as well. For those of us whose favorite color is yellow, were much more attached to our favorite color than other people are to their favorite colors. So those of us who like yellow bond to it much more than people who say theyre favorite color is blue, for example. And there is a place for yellow in a workplace. You wouldnt want to necessarily put it in a Conference Room where you might be negotiating deals, because that might get the meeting off to not the best start. But warm colors, like yellow, orange, et cetera, do spur our appetite. It could be that you could use it in a cafeteria, for example. We wear blue shirts a lot. Look at cnbc. A lot of blue. Trust. Exactly. Exactly. Whats the color of your office, sally . My Office Actually is a warm brown, very light brown. You didnt tell us about brown. Brown is interesting because it can have warm attributes and when it does, it makes us feel warmer in a space. That helps us makes us link more to other people. Increases our socialability. Ive been arguing for a brown family room with animal head and a brown couch. Animal head . Maybe fake. Brown is it makes me want to watch football and youre losing that argument right now, i take it . I also have a joke. Pink no, i cant tell it. The punch line is i think im going to paint the ceiling pink. I cant tell it to you, sally. When you paint the ceiling make sure the lightest colors are overhead. Intermediate colors are on the walls and the floor underneath you is the darkest color in the room because that makes us comfortable. Were a species that developed on earth, gravity keeps us oriented with our feet towards the ground. The ground is darker. You can paint the floor white if you want or whatever, note it will set people on edge when they go into the room. No, no, no, white floors. I have had that feeling, i feel like a mouse and someones writing down. The markets are front and center after a big rally and a big pharma conference in washington this morning, eli lilly ceo and chairman, John Lechleiter will be our special guest. As we head to a break, take a look at yesterdays winners an

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