Down. Musk wants to commercialize space flight and hopes reusable rockets will reduce costs. Well get you up to speed on the markets in terms of the futures. Of course things will change in a big way but the dow looks higher and its surprising because well explain why in a moment. 48 points higher now. Nasdaq up 48 points and s p 500 up over 5 points. Its official. This mornings big corporate buzz story, the eu is just now announcing the antitrust moves expected against google. These are just crossing the wires at this point. European regulators are likely to accuse the company. They could face massive fines of 6 billion. Something like 10 of its worldwide sales are liable to be fined doing this and theyll be forced to change the Business Model. The eu has been looking at google for about five years now. Whats interest as good the company only gets about 10 weeks to respond. Its a different rule of law over there. Lets tell you about other big stories were watching this morning. New numbers out of china overnight. This is what i thought would impact the futures in the opposite direction. The economy growing at the slowest pace since the financial crisis. Expanding 7 from the year ago. Thats in line with estimates. More from our colleagues in beijing in a couple of minutes and then our special news maker on set this morning. Former treasury secretary hank paulson is out with a new book all about china. Hell join nus 30 minutes. And the ecb meeting today policy makers there seen sticking with the qe program. Now this despite recent pick up in the economy. Well get a policy announcement around 7 45 eastern time and well hear from mario draghi. He does that at 8 30 eastern time and corporate earnings are in focus. A couple of names reporting before the bell. Well get bank of america, u. S. Bancorp and delta in this afternoon. You have to watch for numbers from netflix. There you have it. Certainly not my favorite media company. Do you have to ask yourself if its your favorite media company. My real favorite media company, comcast. Nothing gets by you. Are you going to be coming to my party tonight. Huh . Its april 15th. I know that. We have to celebrate. Bring your checkbook. We have a special postmaster that comes to the party so you can still get it right on the stamp. Right before midnight. Everybody puts the checks in. We all high five. Are you done with your taxes for real . Right after the show i have to send down to the wire. Yeah. This is like we got close. This is basically your july 4th. Your Independence Day. We do fireworks. Its a different kind of fireworks. But its a celebration. It is. Its a celebration. Because the money is always i can only hope that viewers appreciate the sarcasm here. Among our stocks to watch this morning its official nokia is buying alcatellucent in a deal. Will it really be nokia alcatellucent . It rolls off the tongue. 16. 6 billion. Remember earlier we said its a 40 billion deal. Thats not. 16. 6. Alcatellucent ceo talking to cnbc europe earlier this morning. Everything is there in order to make this transaction successful. One is bigger than the other in terms of market cap which is nokia so we need very transparent, easy governance in order to avoid the mistakes of the past. Im going to have to check on this deal. I want to go over there and get this firsthand its the least i can do in june at some point. The Companies Say the deal will be finalized. Thats a good idea. Dont you think . Shares of intel trading higher this morning. Current quarter revenue in line with consensus and intel also announcing plans to cut capital spending. Well talk to an analyst in a couple of minutes and then csx looks to be an early winner. The Railroad Company with better than expected earnings on increased freight volumes. Also announcing a Dividend Increase in a 2 billion stock buy back. Right after larry said dont do this stuff anymore. Right in his face. Everybody is doing it but hes going to come in here tomorrow and i think while the letter was meant to provoked hes more measured on it. With ge hes okay with the buy back program because he says look, youre getting rid of ge capital. A substantial reason to do it. For him it will be about balance and well see how he talks about it. In the meantime Economic News out of china, a big po cuss of the Global Markets this morning. Eunice joins us this morning to tell us more about it from beijing. Good morning eunice. Good morning, guys. Well chinas gdp came in at 7 for the First Quarter. This largely came in line with expectations but it is the slowest level of growth this country has seen since the depths of the Global Financial crisis. The focus was on the march data because instead of the pick up that everybody was expecting we saw a tapering and that suggests to many people here that the economy is decelerating and headed for even Slower Growth so the data was suggesting to many economists and raised many expectations among economists that the authorities are going to have to come in and take some action. Some combination of Interest Rate cuts or cuts to the rrr. The level of cash that bank versus to have on hand. The authorities, though didnt seem to be pushing the panic button just yet in the run up to the release of the data the chinese premiere actually came on state radio and spoke to the public and said that there was downward pressure on the economy but this is something that everybody has to get adjusted to and say that the country needed to prepare for even further economic challenges. Now the employment number came out today in 5. 1 and the interesting part was the commentary around it because the officials here said that the jobs market was stable and the government has been indicating for quite some time now that one of the key factors in determining how aggressive they are is going to be the jobs market. So the jobs market is holding up which suggests we dont see any massive stimulus. Instead going to continue on this path to try to tweak the economy and keep the engine going. Guys. All right. Thank you very much. Now back to intel earnings. Matching lower expectations but sales were hurt. Ceo stacy smith was on cnbc yesterday and talked about the growth in the weak pc environment. We saw a little bit of weakness in the desktop pc segment. What i think is interesting is you can really see the expansion of our end markets playing out in our results. We had a enough growth in the data center and internet of things in memory to keep the company flat and grow earnings year on year. Joining us to break down the quarter is technology analyst. And this is the one thing we noticed for awhile is this is going to open at 32. 5 today. It will be up probably a dollar or so and 32. 5 is a multiyear, not necessarily a high but much better levels than before pc started slowing down. In the face of what we thought was the demise of intel was greatly exaggerate sod they transitioned to something. What is it . The internet of things . Id say the first thing is they executed really well. They missed their numbers but Gross Margins came in better than expected. Theyre cutting capex and managing inventory as well. So they have done a great job in terps of terms of execution and they have a data center that has grown to 38 of sales. Its a big business and profitable business. What do you mean a data center . Equipment today at a centers. Theyre selling a High Performance processor into servers that go into data senors. Google and amazon. Google, facebook and amazon are buying these by the boat load to manage their internet traffic. So its a specific microprocessor that goes into that type of server . Well all of their processors are based on a specific architecture and then they scale that architecture based on the device its going into. So the processor that goes into a tablet is going to have a lot different horsepower than the server. And then the server theyve got roughly 100 market share and its a Good Business for them. It still has to do with how much it costs to make these really sophisticated things. They cut it up into individual microchips, right . And the yield makes a difference on how they do as far as execution, right . The yield determines the cost they incur to develop the chips. To develop them and not just to make them. As well as to make them. The big chunk of that is the manufacturing costs which comes back to yields. It used to be buy intel when margins are coming up. So margins, their normal business is what . Usually like 55 to 60. Its 55 to 65. You sell intel when margins are at the higher end of that range and buy them at the lower end. Today theyre right in the middle. Let me ask you this too, you said they have about 100 market share in particular areas for some of these high end things. Its roughly 98 . How did that happen. Its a great business like that how come nobody else is jumping to get into it . You moe, they really struggled and that has given intel some market share gains but there is more competition theyre trying to develop a low cost alternative to intels server offering and its early but they are getting some traction. Maybe the eu can throw intel into usually with Something Like 98cent market share. Attach a rider to the google complaint . That business is way too going for intel too. We have to cut them off at the knees dont we . Over in europe . Its possible. Theyre so successful. They need to be much more mediocre. Thats a hard question to answer. They still have a pc business that is 60 of sales. Just please, someone buy it so we can just keep our employees. Anyway, we appreciate it. Thank you. Thanks for having me. Coming up when we return could in Flight Entertainment systems be putting airlines at risk of a hacking attack. A new warning that could scare you. And then late you are our news maker of the morning, hank paulson is going to join us right here on the set. But first take a look at this day in history. This is brian. Every day, brian drives carefully to work. And every day brian drives carefully to work, there are rate suckers. Hes been paying more for Car Insurance because of their bad driving for so long, he doesnt even notice them anymore. But one day brian gets snapshot from progressive. Now brian has a rate based on his driving, not theirs. Get snapshot and see just how much your good driving could save you. The eu announcing antitrust moves against dpoogel. Google could face massive fines. More than 6 billion and could be forced to change its Business Model. The eu has been looking into google for five years now. Its charged specifically over the Comparison Shopping service and announced its looking into the android operating system to see if theyre using market power there to hinder rival systems. A frightening warning today. A new report says that airliners could be hacked in flight by passengers using a planes wireless Entertainment System to access flight controls. The Government Accountability office warns its one of several emerging Cyber Security weaknesses that the faa has to address. We heard a lot of things. This might be the most frightening aspect to date. I dont know how easy or difficult or complicated but this is one of the worst warnings in a long time. What could they do exactly . If you could access flight controls you could fly the plain plane. But you could override the auto pilot though . Im sure the pilots have ultimate control of the plane. The captain of the plane has to have the i dont think its like just all of a sudden wow, i cant do anything. The other pilot was able to lock the other pilot out of the room. If youre in there i dont know. I dont want to go through hypotheticals. I dont know enough about it but i could imagine the person in the cockpit has probably the ultimate i would hope the ultimate control. Thats true on a boeing because its mechanically controlled but on an airbus its called fly by wire so if the computer was controlled by somebody else we need that guy thats always on nbc. You know whats that guys name . He has a twitter account. I forget his name. He tweets out about it. If youre going to be on unfortunately youve been on a lot given the last 18 months or so with all the airline stuff. This is Internet Connectivity in the cabin should be considered a direct link between the aircraft and outside world which includes potential malicious actors. The threat will continue to evolve and is something at the forefront of our thinking. Even the guy flying the the plane needs instruments to know where he is. Right. Even if you did have control you still might. If you didnt have Internet Access it might be a problem. This is a real threat. Its what they talk about all the time. If you have a Nuclear Plant you dont want any access to the internet from the inside because that lets outciders possibly get in. What i dont know know is with all of these other services are those connected to the rest of the plane. I dont know. That would be the question. What you need to do is seal the cockpit so theres no way it has any access. And now the autonomous car. You dont want that theyre going to hack that and youre going to be like. But the flip side of all of this was two or three weeks ago when the awful tragedy happened when the german flight there was a conversation about whether you should be able to control the plane from the ground in case theres a malicious actor in the plane. Every solution presents a potential problem though. Yeah. Lets talk washington for a moment. Senate minority leader harry reid calling it quits. Announcing last month he will not seek reelection. John harwood got a chance to sit down with him. People make the obvious connection. Reid boxing washington. Has the fight changed. The fights are unfair. We have now 15 people in the country that basically control most of what goes on in politics. The last few days a bunch of people are saying reid he didnt have an exercise accident. He got beat up by the mob. It shows the credibility of limbaugh. Why in the world would i come up with a story that i got hurt in my own bathroom with my wife standing there. How could anyone say anything like that. I think a lot of people as i read, kind of dont like me as a person. I think thats unfortunate. Mitch mcconnell just sent out letters to states saying dont follow through with obamas plan. He comes from a coal state. I dont mean to be mean spirited but he is a slump of coal. I thought he did an outstanding job. Hes my man and loves baseball. Didnt he do pretty much what obama wanted. Well he was long before obama was there. I supported him before and after obama. Are you entirely comfortable with Hillary Clinton as the democratic nominee. Sure. Very, very much. I talked to her husband yesterday. Clinton, i love the way he ends his conversation with me and he was so sincere. How does he end his conversation with you. Harry, i love you. He says that every time. He says that every time. Will there be a democratic race and should there be one . Im not a big fan of primaries. I dont think theyre help. Especially when youre someone as noted as hilary. I love joe biden. Hes a wonderful human being. Would you advise him not to challenge her . Thats up to him. Hes been around a long time. He can make that decision on his own without my advice. How do you see the republican fight . Who is the republican nominee likely to be . You know i dont really care. I think theyre all losers. And of course the electoral question for the senate is do they hold that seat that harry reid is giving up in nevada . Harry reid says they will and the chances of democrats winning back the senate if 2016 are far better than 50 50. They probably do have a better chance of holding it now. I should have asked him about you joe. Yeah offered without comment. No thats all. I dont think he knows me. I dont know. He might be a squawk box watcher. Might be. Might be. Hope so. We want everyone to watch. We like viewers that like to watch. Joe i havent seen a politician leave you quite as speechless as harry reid seems to have done. He didnt leave me speechless. I offer that without comment. They have a better chance of holding the seat now that hes not running. Probably why he decided not to. You know im kidding but i just remember the senator that used to be a nevada senator. Do you remember him wait a second. That was in a movie. Oh that was godfather ii. He wasnt real or was he . No anyway. Thanks john. Two big events overseas. Will have an impact on the u. S. Markets today. Chinas Economic Growth numbers and ecbs decision on Interest Rates that comes later this morning. Steven is here and is the Senior Investment strategist with Wealth Management research. Thank you for coming today. Those numbers from china, theyre in line with expectations but disappointing none the less and some are suggesting they could be beefed up a little bit. What do you think . If you dig deeper you do see Industrial Production numbers also released weaker invest m numbers were weaker and the sequential growth is quite concerning and ultimately i think that its showing that the leadership in china is willing to have more shortterm pain. Theyre trying to cushion the decline but theyre not willing to boost the economy and thats what youre seeing in terms of the overall profile of growth. What does that mean for Global Growth . It does mean that you have more of this. You look at the shift with the u. S. And euro zone being the leaders. The pick up in growth and china and the plays being rather in a decelerating mode and its snag at least we as strategists are reflecting in terms of the markets we like. Meaning that you like the u. S. And euro zone better than asia. More generally. Which is better . The u. S. Market . The euro he zone and what are you focussing on . Equities . Bonds . We have a tilt toward equities globally in portfolios and in the First Quarter we shifted our emphasis which is our preferred market for a number of years in the euro z