Transcripts For CNBC Worldwide Exchange 20150327 : vimarsana

CNBC Worldwide Exchange March 27, 2015

For its biggest acquisition yet. Yahoo shares move higher after the board approves a 2 billion stock buy back. This as it prepares to spin off its stake in alibaba. What a weekend itsz beens been for markets. Yesterday we did see it strengthen against the euro. A lot of focus for yemen as well. A lot to digest. Thats been one factor but if we look over the last four weeks last week was the first week of gains for u. S. Equities. We thought that might be the turn around and this week once again very volatile and negative for u. S. Markets. It was one of the biggest underperformers this week. A lot of that having to do with bio tech. A little bit of a rebound yesterday. Lets take a look at premarket trade. The dow jones indicating a higher open up by 9 points. S p 500 down fractionally on the day. Well keep an eye on free market trade throughout the show. Take a look at european markets. A lot of focus has been on the currency market. We did see the euro gain ground over the last couple of days. Its a two part story. Manufacturing at a four year high. That pushed the euro higher but analysts still expect the euro to continue to weaken against the u. S. Dollar over the next couple of months. In fact steven joined us yesterday on Worldwide Exchange. He sees the euro trading in parity in the next six to 12 months. Yesterday a down session for european markets. Today we are higher. The dax, cac 40 o, italian markets in the green. The u. K. Market slightly lower on the day. Indeed. Ten days ago janet yellen had dovish things to say. We saw the u. S. Yield fall below below. 9 . But yesterday disappointing auction of ten year notes saw the u. S. Ten year yield back up above 2 . Its just below that level today. 1. 98 but how short lived is the move paced on rhetoric. A good indicator of where rate raise expectations are. Contrast to europe. 9 in germany. Lets look at the sentiment over the hast tenlast ten days has been u. S. Dollar weakness. Thats not the case today. We see dollar bouncing back. You can see the euro weak to the tune of. 6 . The 1. 08 handle and is that a sign that the recent ten day u. S. Dollar weakness that weve seen was just a blip or is this something more pronounced . Thats been the question over the last ten days or so. Lets look at commodities as well because the oil price very much in focus. Yesterday we saw a 4 bounce roughly or so speaking after we saw those issues in yemen. The geo political issues today. Well see of course the oil price has weakened after a strong rally yesterday. That will geopolitical driven bounce be short lived or not. Wti and brent 57. 9. The price of oil on the slide after the sharp gains following the launch in air strikes in yemen by a saudi lead coalition. Theyre saying the assault would have only a impact on supply. It sits on the bab elmandeb straight. War planes struck an air force base just five kilometers from the oil field. Meanwhile yemens president is expected to attempt an arab summit this weekend. The leader of the group accused them of a campaign aimed at occupying the country. Lets get the latest from hadley gamble with more on the story. Lots of different sides making their stakes in the public arena but this is a saudi versus iran fight on the surface. Absolutely yes. We talked about this yesterday about this being the soft underbelly of arabia and youre not going to allow them to take over iran and you heard from the u. S. Yesterday and theyre saying the same thing but what i think is interesting and fascinating to watch is the fact that the arab countries, for so long the arab league was so toothless and they would make these big grand pronouncements and nothing would happen because they couldnt get everybody on board but its interesting now to note what were seeing with the negotiations with iran were closer now than ever to drawing these guys together in terms of the gcc countries and egypt as well. That iranu. S. Deal deadlyine fastly approaching. Today slightly lower but yesterday quite the rebound back above 50. We know theyre far away from the eastern part of saudi arabia where the oil deposits are but its strategic location of yemen could result in the transportation of oil being disrupted. On average tankers carry about 4 Million Barrels of oil through the red sea to europe. At this point what do we know about if they he have a force that could disrupt transportation of oil. Theres not much to speak of in that arena. So in terms of the actual ability of the rebels to close that straight they dont have one but they worry that since they have the backing of iran that some major problems can happen. You wouldnt see that in the persian gulf because thats how they get it out to markets but theres worry there would be reaction to supporting these guys but i dont see that happening and they dont have that capability themselves. Its more interesting if you look at the fact that the gcc allies egypt sending warships they have come out and said were going to secure the entire arabian Arabian Peninsula without the backing of the United States. Theyre doing this on their own and its a huge psychological shift from what we have seen in the past from saudi arabia. Now, karen caught up with David Harding at last nights investment Choice Awards in london and asked how the Lower Oil Price was impacting his portfolio. Were still short oil and still long dollar. I wouldnt say that constitutes a forecast. It doesnt. When the markets turn we usually lose money but what we do has worked over the last 20 years very well. You mentioned the bull markets in bonds which was terrific for us. The bare market in oil was also terrific for us because as a big futures trader we were short. That doesnt mean we have that because we had been long in the previous five years and we lost lot of money i can assure you. We paid our dues. By the time the market goes from 100 to 50 in a Straight Line you have to be pretty bad not to make money. We managed to make lots of money out of that trend in oil and we also made a lot of money out of the bull trend in the dollar which was one you couldnt miss. It was like shooting fish in barrel to be a trend follower last year. The trend followers deserve it because they had three or four pretty tough years so they deserve, they deserve a reward for their patience. So of course one of the big investors using computer algorithms. He said the momentum followers deserve it and at the end they get a reward for their patience. That would worry me if someone is investing on the basis of i deserve things to come back in my favor. Momentum can work for you on the upside but kill you in the down side. I would point out the currency market grabbing headlines. A 10 dollar appreciation takes about 1 off of u. S. Gdp. Just to put into context the type of dollar not just on export growth but specifically gdp is something to keep in mind. Specifically on the fundamentals is what youre saying because as a momentum trader when it changes direction they get hit hard. Yeah. Different ways of investing. U. S. Dollar trade is a tough one to pick apart. Something well continue to watch. Lets get you a run down of what to watch this trading day. The final estimate of 4th quarter gdp is out. Growth is forecast to be revised from 2. 2 to 2. 4 . At 10 00 a. M. We get the final reading on march consumer sentiment. That will be interesting given the drop we have been seeing in oil prices. Janet yellen speaks right before the closing bell at 3 45 p. M. Eastern. Stanley fisher is speaking again in germany in the next hour. Blackberry reports Fourth Quarter results before the opening bell. In fact the ceo will be on squawk alley today at 11 00 a. M. Eastern to discuss the smartphone makers latest earnings. Now still to come here on Worldwide Exchange the mystery surrounding the germanwings crash continues as investigators look for answers into the motive of the copilot. Annetta joins us live after this short break. Welcome back. Oil splits back in the red. The dollar rebounds. Yahoo tries to appease shareholders with a 2 billion stock buy back and tim cook joins a list of billionaires pledging to give away nearly all of his fortune to charity. French prosecutors are looking for a motive after receiling thursday that they reveal the copilot of a german wings plane deliberately brought the plane down. Officials say the pilot was alone in the cockpit when the plane crashed. Lets get more on the story with annetta outside of the airport. Well we also here in germany have investigators looking into the case and they have been looking into the apartments of the copilot. Only 27 years old and he is reporting they have found evidence for a mantle disorder of the copilot in his apartment. Thats not con if i recalled by the official side but thats what theyre reporting. At the same time the biggest tabloid here in germany is saying that they had a look at his Health Records and also that those Health Records are saying that in 2009 he was diagnosed with a severe depression. Having said that theyre still saying he was actually really fit to fly according to the checks he had to undergo at the airline and they are also saying that he has passed of course the very secure health check at the beginning of his career. Currently in germany the discussion is also flying high that we should have also regular checks regarding the Mental Health of pilot which is is not the case yet. Theyre only checked for their Mental Health at the beginning of their career and also at the same time the search for the second black box is on going in the french alps. For the moment im sending it back to you wilfred. Thank you very much for that. Live breaking news out of amsterdam. A major power outage hit amsterdam and several hours. They had an overload on the power lines. Well get you more on that story when we get it. Now at least 19 people were swrur injured after an explosion. They were installing a new gas meter moments before the explosion. More than 200 firefighters responded to the blast and will continue pouring water on the reminisces well into today. Still to come well get on to twitter as well be chatting about parascope and streaming the whole thing live. That will be coming up shortly. And is he a good apple . Find out how tim cook is spending his millions when we return. under loud music this is the place. Their beard salve is made from sustainable tea tree oil and kale. You, my friend, recognize when a trend has reached critical mass. Yes, when others focus on one thing you see whats coming next. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. Welcome back. A growing number of tech entrepreneurs are looking to shake up finance vowing to reduce transparency and reduce customer relationships. Theyre changing the way Institutional Investors do hedge funds. I asked who the company is appealing to. This is for Institutional Investors. Theyre spending a lot of time effort and capital to find these funds. So at this point its for large pensions big Asset Managers that really need a platform that allows them to go through massive amounts of data to help them find whats good for their portfolio. How are you able to find the right people to build this platform that have the expertise in tech but also understand finance . This is a unique question because the way i thought about solving this problem was not to take traditional people that have been working at banks. What i wanted to do is do a multidisciplinary approach. I wanted to take technologists working for google and paypal and other Big Technology companies and match them with Capital Markets and blend those two together and bring another group of people scientific people that are experts in computational path or Behavioral Finance and bring them together to build a novel and innovative platform. How do you ensure the data is safe and protected given that the data on returns and size of the hedge funds is pry rat information. Yeah, so this is something thats really evolved since ive been in the industry over 20 years is that 20 years ago this data was so difficult to get but today you can, because of some regulatory things that have changed, you can get some of this data so for instance now any hedge fund that is over 150 million in the United States has to register. So they have to register and they have to fill out an adv. You have a lot of regulatory documents. All of their long positions you have to report to the fcc so theyre able to pull that data down and the data based companies we use are good about making sure that the data is precise. With that the aum, the performance data the Regulatory Data and other data sources we can pull feel very comfortable around the data. Now part of the Cyber Security is very important so we go to extra lengths to make sure the data is protected and private and no one has access to it except for the people that are credited investors. The social network or the tender of hedge funds helping Institutional Investors connect with hedge funds. It has over 16,000 funds on its site. Can it disrupt the Hedge Fund Market with their technology because this is a part of the world, if you will that isnt so used to using technology to find perspective hedge funds to invest in. They have the right expertise to do it. Its not just can they disrupt the Hedge Fund Markets its can they disrupt the prime brokerage markets that the longterm investors use to find hedge funds and the like. Very interesting the raised money from different banks as well as carlos slim. The wealthy mexican business man. Well have to keep a watch on it. Great stuff. You can check out all of our coverage on our social reports page. Head to cnbc. Com. Switer launched its own Live Streaming video app after last month blocking mere cat from tapping into its community. The new app is part of a major push for pictures video and interactive content. Twitters periscope launching the live video app today and the question is whether they can catch up with merecats first mover advantage. It alerts twitter followers and starts a public live stream. Its differentiated because the videos are available for 24 hours. They can be saved for a personal library and you have the option of broadcasting privately to a small group. Periscope is faster making posting commentsor sending hearts more engagement. If youre watching me and im giving you a tour of my office you say take me to that room over there and two seconds later i take you there. That makes you in the director stream. Its like a teleportation device. Its part of twitters network. Its what twitter is but through 140 characters rather than live video. When we realize that alignment was there we realize that the marriage of these two companies can help us make our vision a reality put more quickly. Periscope is launching without adds but theres potential for brands to interact just like they can pay to promote twitter accounts or tweets. Back to you. I have to say, this is pretty awesome. We started playing around with it. You can watch what were streaming as well on periscope on twitter. There you go. You can see it. Thats a little bit delayed to what youre watching live and i think its pretty amazing. As you can see its still quite jittery and not fantastic quality but its easy to do. One of my friends was just jogging and already this is picking up quite a lot of followers. Its fun but does it add value to society. Do i want to watch your friend jogging . Im not sure. So theres a little bit of a delay here but just so you know wilfred is Walking Around the studio streaming the show through periscope. Will it add anything to society we dont know. Is it cool and fun . I think it is. So you can see what we have a look at every day from behind the scenes as you can see a few of the other shots. I think its cool. Im impressed with it. They had to oust the previous app in doing it and some people in the background well get away see, there we go. This is twitter, periscope in action. But the big question is who is going to win the video streaming battle . Merecat had a massive following. Specifically the millennial audience. They made the acquisition of periscope but theyre still late to the game. Can they still get a strong following if you will in the video streaming space despite the lead and the presence that merecat has. Absolutely. Youre like i dont care. Im having fun with this ap. No they were a big leader on twitter and its trying to blow them out of the water a little bit. Twitter is up 40 already this year. Quite the come back. Last year the big discussion was twitter versus facebook. Twitter was down about 40 in 2014. Facebook was up 42 but just this year yes, were only in mashlg but the stock is up 20 . We should move on. Yes, but take a look at futures. What we could potentially see on wall street. A wild ride over the past couple of days. The dow indicating a lower open. S p 500 down by 2. Oil prices right now trading lower. Were back in 2 guys. Stick with us. Ad. Our experienced investment professionals are one reason over 85 of our mutual funds beat their 10year lipper averages. So in a variety of markets we can help you feel confident. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Happy friday everyone. Youre watching Worldwide Exchange and im seema mody. Im wilfred frost. Oil prices right now back on the slide as the dollar rebounds. This despite continued tensions in yemen where war planes hit an air force base three miles from a key oil field. The instability in yemen helps push u. S. Stocks into negative territory for the fourth straight day yesterday but futures point to a higher open on wall street today. Amazon goes shopping. The ecommerce giant is in talks to buy the online luxury retailer in the biggest acquisition yet. Yahoo s board approves a 2 billion buy back as it prepares to spin off

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