Service, but jay z has been successful because of apple and youtube and all this stuff. What is the criticism hes talking about . Just the fact that its not doing as well as others is that right . Hes trying to move all these premium artists on to his service, some of the other services obviously would like to keep them so theres a big of a scrum going on. Were separated here. Its almost like we need somebody in between us. Keep them separated. Its weird. You stay over there with your views and we know what they are and ill stay over there and well have a point, counterpoint. You are on the left there. Camera right. All day long were a Business Network but there are general news stories that happen and right at the top, i was a little bit uncomfortable. I talk about nepal and i go right to apple, but, you know theres no really elegant segue to go back and forth, so well just do what we do and just excuse the juxtaposition of these stories. Here are some of the big stories that were watching today. Now well talk apple so i can smile and a little bit happy. Because its a business story and obviously the worst business story never compares to what people are going through over in nepal right now. Apple set to report Quarter Results after the open. Analysts are looking for earning to grow 30 over last year. The numbers are absolutely staggering on revenue of more than 56 billion. Its a quarter. 56 billion. Its amazing. Its absolutely astounding and a quiet start to the week on the data front. Weve got services pmi and the Dallas Fed Survey on the docket today but the big story is the fed is the fmoc begins a twoday meeting tomorrow with a policy decision set for wednesday afternoon and all the related commentary is it June September . You saw some news out of beijing almost a pseudo qe starting to occur in china which you would have never thought. People said they have become a western economy and if you are a western economy, i guess you got to do qe. In Corporate News boeing is holding its annual meeting in charleston, South Carolina the first Quarter Results were handily over estimates, can it keep machinists from getting a foothold at the nonunion plant that it has in charleston right now. How close were you to nepal. I was in bhutan in the himalayas, they did feel the earthquake. You saw the avalanche video. Thats incredible. Terrible. I dont know if you can tell the difference between an after avalanche if you were up there and that it was caused by the earthquake. You won know what it is. Its frighten to talk about and to watch, but you dont necessarily think of nepal, something that up in the himalayas, but apparently there were plates that were hundreds of years that were unstable. When i was in bhutan they talked about they have earthquakes apparently. Third century buildings, structures since the third century were lost. Its incredible. As joe was saying this is our big developing story this morning. It doesnt have anything to do with Business News its an important one nonetheless. This is the real world here. Disaster in nepal. An earthquake now killing over 32 o people ive seen the numbers even higher. Devastating the heart of nepals capital, kathmandu. We report on the lives lost. This is what remains of one of the terms in the square which is the heart of old historic kathmandu which seems to have born the brunt of the quake. The buildings here vulnerable fragile couldnt withstand that 7. 9 shaker. Its dusk now and people are gathering in open spaces around the buildings here. They are too afraid to spend the night at home. There was another big after shock here and they are terrified the buildings may yet collapse and they are afraid to go back inside. We are establishing shelters for people and especially also providing water and logistics, trying to arrange that people are safe for the night and with food, et cetera. While this area appears to have born the brunt, its unclear whats happened in other parts of the Kathmandu Valley in and areas closer to the epicenter of the quake. State department confirming now that three americans died in an avalanche in the himalayas. Victims included a google executive, a medic. The google exec was dan freddenberg. He climbed everest last year several of his guides were killed in an avalanche. He was climbing with three other google employees. They are all safe. Technology is playing a big part in this story. Families and friends worried about people in nepal in that area are turning to a relatively new facebook app called safety check, it asks users in an area affected by a disaster if they are safe . The app allows friends get notified about their status. Googles person finder is a similar tool and some of them were stuck above a certain level where they could be rescued and some have been rescued in the meantime many i dont know how many people are still left on the mountain unable to get down and some are talking to their loved ones. Im not here and im not sure its weird. Youve seen the shots of helicopters coming to pick people up. Its a terrible story. Talking about weird transitions and how hard it is to go from that back to business world. Corporate news Applied Materials in tokyo cite problems getting approval but u. S. Anti trust regulators, it was announced back in september of 2013. Amat says theres no termination fee for either party. Cap gemini is buying u. S. I gate for 4 billion. That deal has been approved now by both companiess boards and shares in Deutsche Bank this morning under a lot of pressure. The company posting a bigger than expected drop in First Quarter profits. The european banking giant is unveiling details of its new Strategic Plans today, this includes the sales of his post retail sale today. Corrine theeian College Operator is shutting down all its remaining campuses and stopping all other operations. The company has been hard hit by multiple federal and state investigations into whether it misled students and investors. Corinthian agreed to shut down its campuses. Bristol myers squib says its experimental drug combination succeeded in a study and it cured hepatitis c in combination with a commonly prescribed anti viral drug. Another headline gasoline prices rose about 5 in the past two weeks. The will you understandberg lundberg Industry Survey puts the price up 13 cents per gallon. Prices are significantly below where they were at this time last year. Lets check on where the markets are. Indicated this morning about 24 points on the dow jones. The s p up 3. The nasdaq continues to outperform as technology continues to shine. Thats indicated up on a bigger percentage basis than the other averages. Well take a quick look at europe and asia. Europe showing some red, but, you know less than a point everywhere percentage point. France down about. 7 of a point. And japan, hang seng and shanghai mix with japan down slightly and handing send shanghai up a little bit. Oil, piece in the wall street journal today about a lot of investors exiting those who invest in oil. Its short lived. We know about 50 , i dont know what that would be 90 to 45 then you add 22 so that would be what would that be 67 with a 50 retrace many on energy. Well see whether that happens. Then check out the tenyear. Well talk about the tenyear in just a moment. 1. 91 . The dollar with some weak economic numbers last week has been going down in relation to the euro. The fact that 1. 08 thats really low with what weve seen in recent years and finally gold which had a horrible week last week is still below 1,200 but up 7 today. In our monday our morning strategy decision the feds decision will be one of the key drivers this week. Lets bring in Deutsche Bank chief economist and contributor joe lovornia and alison dean and a contributor and consultant at aa deans advisory. Thats your name . Advising myself. Taper has to do with tapering qe. Thats just now, now its just an acronym i guess for additional what would be perceived as tightening, one of the things you point out is in the past 20 30 years, you look historically at comments from the fed that have noted a change up coming change in direction. Youve had really big moves. Here is the thing. You point out, you go back and look. They were scary but rates were much higher on percentage basis, the average move you said is 2. 28 . At 1. 91 what kind of basis points are we talking about . Thats nearly as scary because rates are so low. What would it be . Heres the thing. Its really a shift in Market Expectations of where the fed is going. So take 96, fed doesnt raise rates in 96. You had a huge back up in rates just because the market didnt think the fed would be cutting rates. These moves actually occur, they are large and we dont even log adjust. We dont adjust for the percentage change. Take the tape ner 13. Tenyear yields went up over an eight week from 160 to 3 . Even though rates are low, you still have to look for a pretty large move and the super taper tantrum tantrum, i took that from an imf piece that came out earlier. It was their phrase. But they were my numbers. Is this something that would finally cause us to say this is the comeuppance that were going to get from all this . Like were wondering now, its like a free lunch. Everything has worked. The measuring has been. Weve done all this stuff and there havent been any negative. Some would say the weak economy is all this stuff has been happening. Is this when the roosters come home . The problem is that with the fed doing qe theres this issue of whether they are going to reinvest, they have going 200 billion maturing. All these other central bampings are pursuing some same sort of policies the comeuppance may not occur this coming year or the year after. When that changes, nobody exactly knows. I can assure you when the market reprices it will not be seemless it wont be easy and theres nothing yellen will do to keep those markets from changing because the market will be based on its expectations. They havent done it yet either. Right. I will market its really been a story about the market coming to the conclusion that the terminal fed funds rate the rate as which Monetary Policy will peak in the cycle, that rate came down 200 basis points last year. That allowed sovereign yields and emples to rally significantly. The inflation adjusted rate will implicitly be zero. Thats when monetary cycles begin not end. We have no idea when it occurs. The other person used to run the fed green says you dont know what the bubble is until it starts bursting. Everything has been so orderly so far with the way this has worked. Its so slow and we get so much advanced notice. We havent raised a quarter yet and weve been talking about it for years already. Will it get disorderly . I think once it starts to happen, people go into panic mode. So even with all of the talk they will still freak out . I think because people well, theres a lot of talk people will go well, it will just be a little bit and were not seeing enough corporate growth, i dont think theres that much conviction thats whats going to be done is going to be that drastic and that significant and so if it winds up being something and the drend is going to be a little bit more i think the markets could overreact. Right now, were not in an environment where anything looks cheap. This is arguably the most dovish fed weve ever had to get yellen and the others on board to raise rates, think about the Economic Conditions to be present to get them to move when they finally do it whatever year it is they are going to move slowly. It doesnt make any sense to me. When you get down to 5 unemployment, that still might not be enough they will stay no, we dont have the inflation we need. Eventually you gel the banks are raising capital. You are seeing lending improve. Eventually, you get some inflation pressure, eventually. You saw the i mean if japans insurers cant get any yield, that means people cant get yield anywhere. So this 2 rate we have here is attractive to everyone in the withhold world, right . This is one of most attractive yields. I saw it somewhere that japan germany, switzerland. But the insurers in japan, how do you run an insurance operation if theres negative yields . You cant you know the assets and liabilities dont matchup right, for what you need to come here and buy even at 1. 9, you need to keep buying our ten years, right . I wouldnt be caught dead owning a 10year at 1. 9 . Im with you on even a bond at 250. Or even a taxfree at 2. 8. We dont have to worry like big institutions. We can put it in the mattress. They cant. They cant just leave it sitting there. Xingt this is why they are buying back stock. The buyback should be going into plant and equipment and employees and preparing for, you know, long term. It shouldnt be going thats one of reason maybe the economy is not its funny. You look at the cbo numbers and the fed stopped publishing this data ten years ago. Its only about 1. 5 . Theres been no capital deepening in the corporate level. The irony is the weak growth we have actually has the same effect on reducing unemployment as it has in the past. My guess is some day the economy will improve. Well get some inflation pressure and the market is going to have that aha moment and it will to reprice. Well be worried about causing financial crisis or contagion because all of a sudden people actually see fed raising rates for the first time in nine or ten years. Allison deans, what are you advising to do with money . Stock market still looks relatively cheaper but the mark crow top line trends corporate Profit Growth is going to be very challenging in the u. S. So i think stick with your equities but start moving some of it overseas to europe. The countries where you are starting to see them doing what we started doing two or three years ago, you have better valuations there. The trends are more positive. Here things are fairly valued. While its on a relative basis its one of the more attractive Asset Classes to be in equities i think you need to diversify overseas. If you were selling your stocks over here and didnt have the wherewithal here would you put it in a money market . I would put in an a money market. I will go long term municipals. Its not a great interest rate. Some people say this could be a decade that was the other article over the weekend about the global savings glut of everything, that its never its going to be like turning around a cruise ship. Its going to take ten years are of rates like this really . Theres other people who think weve got wamg growth this year. When Interest Rates go up, the bond are going to come down and people on fixed income are going to freak out in their minds. They definitely will. If you look at the flows, fixed income versus equities youve gotten about a trillion dollars into fixed equities. People will definitely freak out. Youve got markets that are much less liquid than they were before because banks dont have the warehouse in the inventory. Then theres going to be people on fix income and its going to blow the other way. Thank you, guys. You are welcome. Appreciate it. Mplings coming up were going to talk about hackers, remember news of the russians hacking the white house . It actually turns out the situation may have been worse than first thought. Officials now say hackers actually read president obamas unclassified emails. Weve got details about that. Heres a look back at this date in history. S e financial noise financial noise financial noise financial noise introducing the new canam spyder f3. With a cruising riding position and the most advanced vehicle stability system in the industry. Youll ride with a feeling of complete freedom and confidence. Visit your canam dealer and test drive the spyder f3 today. A story in todays wall street journal grabbing attention this morning. Farma companies are buying other Companies Drugs that are under valued and raised its prices. Its duty is to shareholders and to maximize the value of its products. What do you think of that joe . Are you okay with that . Its the way the market works. Its a free market thing. Well, you know is it i dont know enough about it. Is it a drug thats under patent protection at this point . Yes. Thats why they are able to do it. Procter gamble planning to significantly cut the number of ad agencies it uses. The story is notable because Procter Gamble is the Worlds Largest advertiser. They cut about 14 of their ad budget earlier this year. Well talk p g later today. You are going to talk washington. We can talk a little. Ill tell you a couple of the president s jokes i like the best. I didnt like them all. In Washington News officials now say that Russian Hackers read president obamas unclassified emails. Hackers breached the system last year and also got into the state departments unclassified system. At this point, hackers do not appear to have access the servers that control message traffic from the president s blackberry. My understanding they only got the emails they got other peoples emails who received his messages. My hope is i dont think hillary is going to give us the emails on her server. Maybe the russians have all of her emails and we can get a look at what was going on from her email. Boy, with all this stuff thats come out recently there might have been a really good reason to have your own server dont you think . After all this stuff . You have your own server yet . What any favorite thing is over the week was washington George Stephanopoulos grill the author of a little hillary book. Is that fair that hes hes now a journalist. Hes doing good solid journalism. It seems weird that he would be in a position where we assume hes objectively conducting the interview and he was. He gave him a hard time. Right. He gave the guy a hard time who wrote a negative book about the person he used to work for. The point is hes going to ask be a little cynical. Ive seen him really ask tough questions on the people on the other side. Hes a real tiger. Joining us from washington. That tie you had on john that bow tie, it wasnt the formal bow tie. What was the sign on that . It was cool. It was a political bow tie, it was my 40th birthday from my friend Jill A Bramson