Years were very, very tough. No one wants to spoil. We go whale watching. Gms david evinhorn and buffet raising his on walmart. This according to the latest s. E. C. Filings. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. Hello and a warm welcome to the last Worldwide Exchange of the week. Plenty to get through today. Well be in ireland and portugal and concentrating on the results of the indian elections. The bjp party looks for a resounding victory. 1 over 300 seats which gives them a comfortable margin over the 272 needed for a simple majority. The Ruling Congress party has been taking a beating with initial leads indicating its barely managed 60 seats. The market is up and coming back from a high. Well be in new delhi during the course of the show. The gamble that failed. Deutsche bank sold its Las Vegas Casino complex to blackstone following heavy losses. Monclair warms up and which have been stepping in to boost sales. Will the tournament be marred by protests for the world cup or will a solution be found. Jcpenney sales soaring. Well take a browse over the retailers revival. Progress made under the bailout is insufficient for sustained economic growth. This is the country prepares to exit the program this weekend. Julia is not here because shes in the portuguese capital of lisbon from where she joins us now. Exiting the Bailout Program. Growth yesterday in the First Quarter still very Much Negative territory. Absolutely and i think the underlying fact is the recovery is fragile, yes, a lot are anticipating growth between 1 and 1. 4 higher than the eurozone average but at the same time theres challenges for this economy, high debt level and unemployment for young people in particular at 35 so theres many issues they still have to address and actually the underlying message from the Prime Minister when i spoke to him yesterday was, look, we have elections coming up. We know the cost of funding for the country has come down. That doesnt make a difference to the reform process and for the challenges and how were going to address this going forward. But, yes, right now to bring it back to today and the next couple of days its about ex exiting the Bailout Program and moving away from the troika. Listen. Well, we have worked a lot to achieve result like this. Three years of tough measures and sacrifices for the portuguese people but at the end we have been able to reconstruct some trust on the Financial Markets, trust into people and finally we are in a sustainable path to come back to a growth road. Youve had some very Turbulent Times in the last few years. If i look back to just last year when there was concerns that actually the government may actually fall and wed have to go to fresh elections in portugal have there been types when youve wondered whether you would actually exit the bailout plan or whether youd actually need another one . Well, a lot of people during the three years didnt believe in the possibility to recover the situation and to exit the program in a successful way. But i think in the government everyone believes that this exit of the program is a result of the determination of the people because if the portuguese people didnt believe in the very capacity the result, the final result would be very difficult, indeed. Its something that we consider, though, if we look at the situation for portugal. Im talking outside now of portugal. We see the countrys cost of funding coming down, we see you exiting a Bailout Program so the surveillance is going to be less and then you say its a long way away but were still talking only a year till the next general election potentially. Whats the risk here that you pull back on the reforms because these are the questions that are being asked . Yes, of course, of course. I dont think there could exist a real risk to come back to any responsible government and to in prudent budget policy. I think the general people, the general citizen know very well the cost of responsibility. So we will maintain the fiscal responsibili responsibility, the necessary support to maintain Financial Stability and we will boost the reform momentum. He talked about balancing consolidation and austerity with also trying to get elected and have the parliamentary elections and fresh general elections in portugal next year too and also why he doesnt believe that qe is the answer for europe so plenty more to come but for now back to you. Thanks very much indeed for that. More to come from portugal as she said. We have comments coming out concerning the mining disaster in turkey. The mine operator there says no negligence on the part of the company, the mine disaster. They say the exact cause of the disaster is still unknown. They are still also unable to reach part of the mine. Well have more on that as we go through the program, as well. Now, from one country that was in bailout to another, Prime Minister kelly says markets have been rewarding the countrys financial discipline but that ireland has paid the price for austerity. Lets go to dublin. Steve is there. Hes been speaking to the people and are they surprised by how cheap their borrowing has becoming particularly when you compare it to the uk and United States . Reporter well, it is a pleasant surprise after all this country has gone flew after the last five years or so. I dont think they can believe their luck and not only fully financed the bond needs this year awe eight months covered for 2015 as well and spoke to the mtma back in february and said, look, you have to fill it to 8. 1 . I apologized them morning saying its 2. 68. Pessimism perhaps. 2. 6 and spoke to the t shark. When it was inherited we inherited an economic situation. They identify what the program is. Define a program and do it and were the first country in the eurozone to do that but came at a cost for hardship and Financial Difficulties and strained finances for hundreds of thousands of families in this country. Not an easy thing to do. But bond yields have fallen from over 15 to 2. 6 . Thats an extraordinary shift in such a short time. It requires sacrifice. Your midterm now. We have elections coming up, local, plus european parliamentary elections but moving into 2015, 2016 is the appetite for the stringent austerity, this sacrifice and indeed of course with what happens in the runup to election, is the appetite going to be there from both your party politically, your government politically and indeed from the people . I think austerity is a much abused word and prefer to call it fiscal discipline or financial competency. The mandate give ton me was twofold. One sort out public finances and get your country working. We have 90 of the adjustment done. The last big imposition and challenge for people has been the bringing in of charge, the last country to do so. Evidence shows an extraordinary wastage of water through leakage and inferior infrastructure and so on so the government are focused. Absolutely focused on finishing the job that the people gave us and thats to have our deficit below 3 by 2015 and move on. Have it eliminated by 2018 but at the same time to use the flexibility in an economy that is now beginning to grow to show flexibility for taxpayers, remember, in ireland, the rate of 52 is the number and its much too low. If the economy continues to grow, if hes got the flexibility, hes got to show a response to people who have put up with a lot of challenges in the last three years. So comments saying you do not have the flexibility for fiscal retrenchment as well. High levels of taxes and increased levels, water tax, high marginal rates of income tax, as well have to stay in place because of this catastrophic huge level of stock debt the country has. This is part of the program we signed on before we exited the Bailout Program. 90 of people plus are compliant with the property charges. And despite the sort of fears that there were in the beginning this was going to be an extraordinarily high level of payment people have been accepting of the ranges that have been set by government for the contribution to be made here and the change has been brought at local government meaning locally elected politicians will make the decision about how thats spent. Publish those audits so that people in this country will see what theyre getting for the taxes that they pay. They will know the services and the quality of thaem them that is being provided for them. That is ta ocearch talking to us. The problem we know, we had that in ireland and other countries. Nearer to elections and further away from the event and people need to loosen the purse string and the problem for ireland and all these countries with over 100 debt to gdp and a big fiscal deficit no room to loosen off on Purse Strings but, of course, as you get into election cycles near in the medium term with the big parliamentary election in 2016 its tough for the government to stay the line. Thats what theyll try to do and find a little bit of extra money but gets politically problematic and theyre being put under a lot of pressure under local tax, property, water. The large marginal rate of income tax, as well so, yes, things are better but not out of the woods yet. No, not but a long way. Steve, thanks for that. More to come from cub lynn later in the show. Join i joining us with his thoughts, tim, good morning to you. Good to see you. Good morning. Two days in a row theyre coming off record highs for the dow and s p. The russell 2000 on the other hand has been very weak over the last couple of months down off 10 . And weve got u. S. Yields down at sixmonth lows on the tenyear. 11month lows on the 30year. Whats going on . Yeah, you certainly have small caps doing not as well as large caps in the u. S. You also have momentum stocks have been suffering recently. You start to hear more and more bearish voices. Some coming on later in the show. The reality is its very hard to be bearish in an environment where as you say in the last week the s p 500 hit an allnew high, so did the global 1200 and in europe, the europe 350 is, you know, at a better place than it has been at any point in the last six years. A difficult environment in which to really support a bearish sentiment. Yet must be very hard to find anything you want to buy, as well. I think, well, opportunity is definitely hard to find. Volatility is down in every mark we look at. Bear in mind volatility, the swings in the markets, thats how traders make money. Yeah, volatility is incredibly low and not just whats happening but what the market expects to happen in terms of yields and our measure of volatility, u. S. Policy, the vix very, very low. In terms of yields no one is expecting them to dip back below 2. 5 and might have been a bit of a move yesterday when there was a story there would be retrospective tax giving it impetus but broken technicals and no one is expecting that and that presumably shakes everybody up. It may. I think, you know, youll always find bulls and bears and no one expects them. Some people there will be some people yes. Could have been a big short squeeze. When were in an environment which i think we are in hard to identify one particular risk that can the great risk facing market, most markets are up in europe, you know, weve heard about two Great Stories today. What can you do . Well, theres still things you can do. The first thing you can do is diversify. No particular risk you want to manage against, then why not spread your bets and the second thing that you see and we see our clients doing, just cutting costs doing simple is better. As costs come is a big thing actually. This particularly markets like this. If you have the lowest possible fees, makes an enormous difference when you compound that over time. It can do and weve just seen the uk advise local Pension Funds that actually, you know, if they move to a low cost simpler investment style they can save in the uk 660 million per annum which is extraordinary. More than the london just finally we have indian shares up a record high clearly a majority of the vjp has been bolstering that. Do you think that is a market thats priced in too much . Good question and we heard earlier do markets anticipate or react . They certainly anticipate a wind for mody. Is it priced in, i think thats the role of the market. Of course, its priced in all those who have a view have taken their view and it does look very much as if mody will not only win but gain an outright majority. Tim edwards of index strategy at S P Dow Jones indices. All right. Weve been talking it and lets show. An hour and 17 minutes into the trading day here in europe. You can see were weighted to the downside following the selloff regarding the states. Dow around 1 , s p off 0. 9 as well. The worst for about a month for u. S. Indices and decliners are outpacing advancers around 73, a little more than that at the moment. Yesterday the dow, the ftse down 27 points and the ftse is one that hasnt reclaimed alltime lev levels. This morning it is flat as is the xetra dax. Contact current off 0. 1 so going nowhere fast. Where we stand with the asian markets. Where theyve closed up for the week. The nikkei down 1. 4 and s p up a percent up 4 during the session. Pretty much on the session lows so we rally strongly. Lets see the initial buying. The s p sensex down 1 . In terms of individual stocks here on French Telecoms, here we go, up 3. 38 this morning and the french minister said that essentially talks are under way over it and bouygues and would reduce the reports and suggest that orange is considering a purchase of bouygues. Orange up 03 4 and numericable in talks to buy another firm. Up 11month highs against the dollar. There we go. Where is it, here well get into the indian Election Results and whether what the markets priced in can now be delivered. Snow. The hindu nationalist bjp led by the charismatic modi looks like a resounding victory in the indian elections. Now that you are in india, what do we think is the size of the victory for mr. Modi . Reporter the size is sizable and let me just say this, 272 is what was needed for a simple majority in the lower house of the indian parliament. You can see behind me on my left shoulder. What we know now is that mr. Modi and his Bjpled National Democratic Alliance have secured more than 300 so this is what you would term a super majority. This is good news. This is good news for the markets and thats why they are rallying. This is good news for the indian bonds, as well. Let me explain why. Because it means that they wont have to be involved with any horse trading. Any fractious Coalition Building which so much undermined the basis of structure reform and wont have to do that so the government will be speaking with one voice and that means that the reform momentum should be quite smooth. We were in the we were near the bjp headquarters in the capital earlier on and as you can imagine its a carnivallike atmosphere people chanting modis name and two elephants there and its symbolic but also highly important to note that these issue, the Structural Reforms turning the economy around is an elephantine task and many supporters realize this and look at a one to twoyear time frame and theyre confident heres the man for the job and the markets seem to think so, as well. The next step, ross, the composition of the cabinet and most importantly the finance minister. I believe its going to be aaron the markets like him. Lets wait and see if that does happen and could give further momentum to these markets now. Right now, theyre riding the modi wave. Thats for sure. Sri, thanks very much. Lets get analysis on that. Canty is here. Thanks for joining us. A lot of faith has been put in mr. Modi. Weve got the sensex up at an alltime high, 16 billion pounds has been poured into indian stocks and bonds in the last six months. So so the man that people think he is . Hes the man. Hes very decisive. I think the best analogy probably is to putin or to erdogan in turkey politically. He is a nationalist. He takes quick decisions. Hes bold but he can be scary, as well. All right. So is he going to be bold and scary enough . You know, hes going to start out i think fairly quickly. As soon as he has the cabinet going and has taken stock. He sees himself very much as someone who moves quickly. He listens to experts but he makes up his mind pretty much by himself and i think hes going to try and use things hes learn learned at the national level. Thats the promise, but thats also potentially a bit of an achilles heel for him. Now, as we heard sri say, look, its good news the government has an outright majority because politics would have been difficult. What control will they have over state governments because if you dont get that, youre still going to have difficulty implementing the reforms. Exactly. And thats my reference to the achilles heel really. Its one thing to run a good state but deal with 27, 28 fractious Indian States with all ministers think theyre hot so i think getting them to go along with him even if theyre from his bjp party or one of his allies is a challenge. There are economic nationalists within the rss, hindu militant organization thats behind him as well as other hindu front organizations going back to the 1990s. Theyve been quite troublesome on the economic agenda. What is the realistic expectation then and do you think investors got ahead of themselves . Well, i think hes got a good thing to begin on. Everybody is fed up with corruption and stagnation and hopelessness and so hes certainly going to have a year or more to get things going and i think thats really the good news. I think the other piece of good news is that he does bring a group of pretty good people in the bjp in terms of good administrators and economic mines so thats the good part of what he brings. Yeah, and hes going to need them. Hes certainly going to need them. Thanks, indeed, professor for joining us professorary bajpal. Portugal is prepared to bailout but the bankers warned on growth. Julia will have the latest for us from lisbon. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare