Transcripts For CNBC Worldwide Exchange 20150401 : vimarsana

Ready to walk away from the negotiating table but teheran says Good Progress is being made as the deadline is extended by 24 hours. Easter comes early for the swiss chocolate maker. It bounces to the top of the stoxx 600 despite kurncurrency head winds. Good morning. Lets kick things off with Economic Data in terms of march economic numbers. They have risen rising to 52. 2. Meanwhile the forecast was around 52. 4 so maybe this is a little bit of a disappointment for some but we have seen improvement in the german spanish, french figures and this number points to further improvement as well. Factories benefitting from the weaker Euro Dollar Exchange rate which is sensing its worst quarter on record. Down by around 11 and firms barely cutting prices last month. That is a really good sign and yesterday, remember the data confirming the deflation nary pressures for the euro zone, they are easing. Yes were still in deflation nary territory but that pressure is definitely easing so once again 50. 2 versus an official flash estimate of 51 p 9. If we take a look at the region they showed improvement as well. Lets wrap up what manufacturing data were looking at across the region starting with spain. Spains Manufacturing Sector continues to show signs of improvement. It did fall short of expectations but we saw them at the fastest rate in 18 years. Italy, italian factory activity hitting an 11 month high in the month of march. When you look at france march final pmi rising to 48. 8. Thats higher than the estimate of 48. 2. Lets focus on germany. Manufacturing accounts for one fifth of its economy. Pmi rose from 52. 8 to 51. 1 in the month of february. Thats growing in march at the fastest rate since april of 2014. Not the Biggest Movement when looking at the eurodollar trade at 104. Up about a quarter of a percent. But its also the softer dollar feeding into that picture. Lower this morning after the big fall in the First Quarter. Moving on Iran Nuclear Talks crashing through a midnight deadline after the u. S. Reportedly threatened to walk away. Diplomats have agreed to a one day extension to end the 12 year standoff. While stumbling blocks do remain irans foreign minister claimed Good Progress was made as the late night negotiations concluded. We have been working since 7 30 in the morning and its been a long day for all delegations. We have accomplished quite a bit but people needed to get rest and stop over early in the morning. I hope that we can finalize the work on wednesday and hopefully start the process of drafting tomorrow. And joining us now is david, managing director and hadley is also with us. Meantime, the French Foreign minister he left. He was down beat. So we take all of this with a grain of salt . He essentially youre saying this extension that nobody wanted. Nobody had to come to the table to say we need to extend for another day and behind that is the pressure the u. S. Is facing. Theyre basically saying any delay here will show that teheran isnt serious. Theyre not serious about coming to the table and getting something done here. Thats not good for the u. S. Presence in swit serzerland at the moment because the u. S. Is waking up and theyll have to hear more from capitol hill and thats not something the white house wants but at the same time, the other powers theyre just not facing the same time crunch. So its difficult for the french. They have come out and said were worried about giving too much away and youre under the time constraints and pushing this forward. Is that necessary. We do know theres major sticking points to workout and hopefully there will be a frame work to walk away with today but thats not going to keep the white house from hearing it. These are normal negotiating tactics. They want the maximum concessions from both sides. Its a good sign that these talks have been extended past the deadline. What is your take . You cant take the deadlines too seriously in the negotiations. Clearly the fact that theyre still there and havent walked away is a good sign. They con semied to reach an agreement. So they want a good deal rather than a bad deal. They want to keep talking until easter if need be but im convinced theyll come away with some kind of a deal. Both sides will say theres been a victory. Adding to all of this is the continued tensions between saw day rab i cant and yemen. The u. S. Fighting with and dpens iran in different areas of the middle east. It is but theyre trying to project were here. Were in charge of our own arena. Im hearing from folks that the tvs are just blasting with these very patriotic commercials and every few moments youre talking about this new defense minister and isnt he great and you have 80 billion worth of weapons theyre stock piling and finally using them and the question was can they use them or make any use of them and theyre doing that today. For them this is a show of of force in response to the nuclear negotiations. And this would be a Historic Deal as it would end a 12 year standoff between iran and the west. What are the crucial sticking points . Why havent we seen a deal come together already . Israel needs to be brought into this. Theres the wider issue of how this plays into russia as well. I see this in terms of the overall tension over the oil price and energy more generally. So this is more than simply the United States and iran. Theres huge implications here. The fact that the two sides are talking and were near it is indeed to use that overrated word historic. This is a historic sign of achievement and this will be one of the few Foreign Policy successes that obama can chalk up in his second term and i think he will despite the israeli point of view that makes the middle east a less stable place. It will make the world a more stable place. The world is watching to see what happens between World Leaders and iran. Will a deal come together . He sticks with us. Hadley thank you as well. Lets look at the markets. Were one hour and 50 minutes into the new trading day. We ended with Massive Gains of 16 and were inching higher after a wobble at the start of the trading session but then we have the improvement of the pmi from germany from spain from italy and thats helping the stoxx 600 hedge higher in morning trade this morning. Once again were up by a third of 1 . Lets have a look at the european markets one by one. Dax higher by third of one percent. The manufacturing pmi will be out in about 15 minutes time. In the currency markets were seeing some dollar weakness and the dollar is weaker wietquite a bit against the japanese yen. Some of the data there, that has been some what disappointing. Euro dollar not really moving too much on the back of the pmi numbers and the aussie dollar is benefitting from the slightly better than expected official pmis out of china. In the currency markets im sorry, Commodity Markets were seeing brent crude and wti continuing to edge lower. Brent crude off by a quarter of 1 as traders continue to price in that iran deal whenever it does come. Wti off by 0. 9 . Of course also weighed down by the stronger dollar yesterday but surprising to see that despite the weaker dollar today, well, brent and wti is not moving to the upside. Theres mixed messages over the list of economic reforms. The greek government claims progress is being made and an agreement could be reached with creditors next week but eu and imf officials have dismissed the reforms suggestions as ideas rather than concrete proposals. Now executive Board Members told cnbc greece must stick to its reform path in order to achieve a quote sustainable primary surplus. In an exclusive interview, annetta asked if he expected greece to require a fresh bailout. Thats not a decision bank versus to make at all. What is important from our point of view is that greece stays on a path of reforms and that greece continue with Structural Reforms in order to achieve a sustainable primary surplus. Mario draghi thinks that qe is actually helping implemented Structural Reforms. Do you think that as well . Every country and every nation has to do their own Structural Reforms and there are different reforms needed in Different Countries so thats a statement which is a very broad statement and i would not direct this to greece. But would it be that bad . The oracle of omaha warren buffet seems to think not. Its not ordained that the euro has to have exactly the members it has today but it is ordained that overtime the countries in the euro zone will have to have some what compatible labor laws fiscal deficits general management of their economies that dont result in outlyers that arent playing the game the way the rules are supposed to be. We may find out soon about greece. He very long held the trump card. We are seeing yields move in higher. Equity markets racking up stellar gains. Theres no contagion. Thats true. He used the phrase house of cards and if the greek card were to be taken out then the rest of the house would come tumbling down. That doesnt seem quite so likely. Its going to be a messy outcome. I dont think anybody wants an exit. Least of all angela merkel. The german chancellor. That will go down as a defeat for her despite what buffet says which is right. The leaders in europe do think this club needs to stick together. So i could easily imagine that greece could default within the euro area on some of its debts. Youd have a rather messy debt rescheduling but they would remain in the euro for the time being. They might have to reduce capital controls as allowed under the rules. So were going to see a halfway in halfway out solution. But what would tell you that markets right now are being come place complacent about the euro. Or greece only makes up 2 of gdp. Its getting smaller all the time. Thats the tragedy. Both of you are right in a way. I think well be testing parity. Thats what draghi wants. I think equity markets are too high and theres a bubble developing because of qe. It could be that we will have this break between the euro getting weaker and the stock markets getting stronger. I can see the euro stock markets correcting by about 10 . Whether its because of greece or Something Else just the view that valuations are ahead of reality because its all poked up by easy money. What germany needs is a stronger euro because its already far too high. The weaker euro would increase the imbalances in the euro area which are really at the heart of this problem. But the market is focused on the positive benefit or of the weaker euro helping exports. That works up to a point and thats what is being wished for but sometimes reality will have to come back and take over again. Were seeing a bubble in bond markets and the beginning of a bubble in equity markets but thats not what the euro is supposed to be about. The euro is supposed to be about longterm stable money so you know he where you are and were in a very awkward situation where the market is also being drugged by cheap money and i do ask myself how long this will go on for. Mind you, i have been asking myself that for about two years and it may go on for a bit longer but it will all come to a sticky end. David one last month, you write the greek debt approach that will increase German Government bonds. What exactly do you mean by that . Basically theyre having to scour the world to buy up the german bonds. The domestic holders dont want to sell them. Most people are doing it for a valid reason. So clearly some Central Banks are selling even german securities. Theyre becoming scarce and this leads to an interesting technical problem that all the high rated security whether from germany or france or other areas are needed for collateral and theyre all ending up at Central Banks. This is why there will be starting a security Lending Program from april. It will try to overcome that problem. And as soon as you solve one problem you end up causing another one. Thats what theyre finding out. Theyll have to be lending out the securities they just bought back and probably not against cash but treasuries or some other securities. An urn of worms has just been opened. Never heard anyone speaking about a potential Lending Program. You heard it here first. You heard it here first on cnbc. Coming up on worldwide exchange, go daddy gets set to go public welcoming the 34th firm to ipo this quarter. Later we take a look at how some of the other stocks have been performing in the ipo space. It may be april fools but this is no joke. Amazon launched a real life click button where you can hang anywhere in the house. Stay tuned for the details. Walmarts puts the pressure on arkansas as its the latest state with the religious freedom act but will it make a difference . We discuss. With the smart phones locked away. Its time to unleash the awseome power of these hands. You got it booking right. Booking. Com booking. Yeah lets bring you the latest on the iran talks that are on going. According to reuters a german delegation course said nothing is agreed at the Iran Nuclear Talks. An agreement is possible if there is good will on all sides. This morning a chinese delegation source said talks were going well but yesterday the French Foreign minister left the talks early so still a lot of confusion as to where we are in terms of those talks. All right. Lets focus in on asia. The nikkei underperformed following the low 25 day average. This after a weaker than expected survey from the bank of japan. It suggested Big Companies would cut spending in the coming months forecasting lower demand inside the country and globally. Softer Global Demand also taking its toll on Chinese Business activity according to fresh pmi services out this morning. Theyll be forced to launch additional stimulus measures. Same old story, isnt it . Manufacturing pmi came in at 49. 6. Slightly better than forecasts but still in contraction territory. The governments official pmi rose to 50. 1 in march but showed that businesses continue to face weak demand. Meanwhile the official services pmi fell slightly from the previous month. Now the u. S. Administration is making a slight about turn on the chinalead Development Bank aiib. Taiwan and nor bay wereway applied for membership bringing the total members to 40. That includes britain, germany, france, and australia. Japan and canada opted out for now. The white house warned over Environmental Concerns with the organization. But speaking off a trip from beijing yesterday, they appeared to be taking a softer stance. We made clear the United States was ready to bring new additions to the architecture including the Investment Bank provided these institutions compliment existing International Financial institutions and share the commitment to Decision Making and improving standards. David there is a very very strong link between this setting up of the aiib and chinese efforts to have it included in the by the imx. These are two separate but interlinked matters. The matter that links them both is that americans have been caught rather unprepared by this success of the chinese official tif s. America thought this could be popular among its allies. Its failed in that and been a blunder by the American Administration and not seeing earlier that for their own selfish reasons france would want to join up. Now the other issue is also connected to the whole question of who runs world money. The chinese are quite keen without really amounting a full scale campaign. Theyre quite keen. Its hugely political. Its for the International Monetary fund and the bud of honor for any country that needs to be taken seriously in the world. So to get into the crs even though its not something that anybody would worry about is important because theyre there at the top table with the dollar sterling euro and japanese yen. Thats why he has not ruled it out all together. He simply said very sensibly you chinese have to do more opening up in your account. He is applying a few seasons. Could this be a transformative change in global power if the bank is successful . When we look back at this in probably 30 or 40 years time when youll still be running this program, im sure. It will look like a historic turning point. This is the first time that a new Development Institution with a new worldwide capability is being set up without the u. S. Giving it its blessing. Going ahead with 40 members without the u. S. Being on board. Youre still seeing western allies with the bush back. Well when i used to be on the Financial Times the secret of writing an editorial is find out whats going to happen and then write an editorial backing it. America could have taken a laep out of this book. Why not take a slightly softer stance just as jack is now doing. It seemed silly to put all the pressure on these allies that anyway said look we thought very carefully about this and were going to ignore your advice. It just seems rather senseless to do it that way. Luckily jack is sensible enough to be able to come on board and from the contacts i have with the chinese they have been remarkably statesmen like on this. We recognize you have maneuvered yourself into rather awkward corner. We the chinese rule out years of experience to help you the United States get out of this awkward spot. So how about that for sophisticated statesmen thinking. Keep your friends close and enmys en enemies closer. Thank you. Up to speed for news coming out of standard charter. The Good Progress<\/a> is being made as the deadline is extended by 24 hours. Easter comes early for the swiss chocolate maker. It bounces to the top of the stoxx 600 despite kurncurrency head winds. Good morning. Lets kick things off with Economic Data<\/a> in terms of march economic numbers. They have risen rising to 52. 2. Meanwhile the forecast was around 52. 4 so maybe this is a little bit of a disappointment for some but we have seen improvement in the german spanish, french figures and this number points to further improvement as well. Factories benefitting from the weaker Euro Dollar Exchange<\/a> rate which is sensing its worst quarter on record. Down by around 11 and firms barely cutting prices last month. That is a really good sign and yesterday, remember the data confirming the deflation nary pressures for the euro zone, they are easing. Yes were still in deflation nary territory but that pressure is definitely easing so once again 50. 2 versus an official flash estimate of 51 p 9. If we take a look at the region they showed improvement as well. Lets wrap up what manufacturing data were looking at across the region starting with spain. Spains Manufacturing Sector<\/a> continues to show signs of improvement. It did fall short of expectations but we saw them at the fastest rate in 18 years. Italy, italian factory activity hitting an 11 month high in the month of march. When you look at france march final pmi rising to 48. 8. Thats higher than the estimate of 48. 2. Lets focus on germany. Manufacturing accounts for one fifth of its economy. Pmi rose from 52. 8 to 51. 1 in the month of february. Thats growing in march at the fastest rate since april of 2014. Not the Biggest Movement<\/a> when looking at the eurodollar trade at 104. Up about a quarter of a percent. But its also the softer dollar feeding into that picture. Lower this morning after the big fall in the First Quarter<\/a>. Moving on Iran Nuclear Talks<\/a> crashing through a midnight deadline after the u. S. Reportedly threatened to walk away. Diplomats have agreed to a one day extension to end the 12 year standoff. While stumbling blocks do remain irans foreign minister claimed Good Progress<\/a> was made as the late night negotiations concluded. We have been working since 7 30 in the morning and its been a long day for all delegations. We have accomplished quite a bit but people needed to get rest and stop over early in the morning. I hope that we can finalize the work on wednesday and hopefully start the process of drafting tomorrow. And joining us now is david, managing director and hadley is also with us. Meantime, the French Foreign<\/a> minister he left. He was down beat. So we take all of this with a grain of salt . He essentially youre saying this extension that nobody wanted. Nobody had to come to the table to say we need to extend for another day and behind that is the pressure the u. S. Is facing. Theyre basically saying any delay here will show that teheran isnt serious. Theyre not serious about coming to the table and getting something done here. Thats not good for the u. S. Presence in swit serzerland at the moment because the u. S. Is waking up and theyll have to hear more from capitol hill and thats not something the white house wants but at the same time, the other powers theyre just not facing the same time crunch. So its difficult for the french. They have come out and said were worried about giving too much away and youre under the time constraints and pushing this forward. Is that necessary. We do know theres major sticking points to workout and hopefully there will be a frame work to walk away with today but thats not going to keep the white house from hearing it. These are normal negotiating tactics. They want the maximum concessions from both sides. Its a good sign that these talks have been extended past the deadline. What is your take . You cant take the deadlines too seriously in the negotiations. Clearly the fact that theyre still there and havent walked away is a good sign. They con semied to reach an agreement. So they want a good deal rather than a bad deal. They want to keep talking until easter if need be but im convinced theyll come away with some kind of a deal. Both sides will say theres been a victory. Adding to all of this is the continued tensions between saw day rab i cant and yemen. The u. S. Fighting with and dpens iran in different areas of the middle east. It is but theyre trying to project were here. Were in charge of our own arena. Im hearing from folks that the tvs are just blasting with these very patriotic commercials and every few moments youre talking about this new defense minister and isnt he great and you have 80 billion worth of weapons theyre stock piling and finally using them and the question was can they use them or make any use of them and theyre doing that today. For them this is a show of of force in response to the nuclear negotiations. And this would be a Historic Deal<\/a> as it would end a 12 year standoff between iran and the west. What are the crucial sticking points . Why havent we seen a deal come together already . Israel needs to be brought into this. Theres the wider issue of how this plays into russia as well. I see this in terms of the overall tension over the oil price and energy more generally. So this is more than simply the United States<\/a> and iran. Theres huge implications here. The fact that the two sides are talking and were near it is indeed to use that overrated word historic. This is a historic sign of achievement and this will be one of the few Foreign Policy<\/a> successes that obama can chalk up in his second term and i think he will despite the israeli point of view that makes the middle east a less stable place. It will make the world a more stable place. The world is watching to see what happens between World Leaders<\/a> and iran. Will a deal come together . He sticks with us. Hadley thank you as well. Lets look at the markets. Were one hour and 50 minutes into the new trading day. We ended with Massive Gains<\/a> of 16 and were inching higher after a wobble at the start of the trading session but then we have the improvement of the pmi from germany from spain from italy and thats helping the stoxx 600 hedge higher in morning trade this morning. Once again were up by a third of 1 . Lets have a look at the european markets one by one. Dax higher by third of one percent. The manufacturing pmi will be out in about 15 minutes time. In the currency markets were seeing some dollar weakness and the dollar is weaker wietquite a bit against the japanese yen. Some of the data there, that has been some what disappointing. Euro dollar not really moving too much on the back of the pmi numbers and the aussie dollar is benefitting from the slightly better than expected official pmis out of china. In the currency markets im sorry, Commodity Markets<\/a> were seeing brent crude and wti continuing to edge lower. Brent crude off by a quarter of 1 as traders continue to price in that iran deal whenever it does come. Wti off by 0. 9 . Of course also weighed down by the stronger dollar yesterday but surprising to see that despite the weaker dollar today, well, brent and wti is not moving to the upside. Theres mixed messages over the list of economic reforms. The greek government claims progress is being made and an agreement could be reached with creditors next week but eu and imf officials have dismissed the reforms suggestions as ideas rather than concrete proposals. Now executive Board Members<\/a> told cnbc greece must stick to its reform path in order to achieve a quote sustainable primary surplus. In an exclusive interview, annetta asked if he expected greece to require a fresh bailout. Thats not a decision bank versus to make at all. What is important from our point of view is that greece stays on a path of reforms and that greece continue with Structural Reforms<\/a> in order to achieve a sustainable primary surplus. Mario draghi thinks that qe is actually helping implemented Structural Reforms<\/a>. Do you think that as well . Every country and every nation has to do their own Structural Reforms<\/a> and there are different reforms needed in Different Countries<\/a> so thats a statement which is a very broad statement and i would not direct this to greece. But would it be that bad . The oracle of omaha warren buffet seems to think not. Its not ordained that the euro has to have exactly the members it has today but it is ordained that overtime the countries in the euro zone will have to have some what compatible labor laws fiscal deficits general management of their economies that dont result in outlyers that arent playing the game the way the rules are supposed to be. We may find out soon about greece. He very long held the trump card. We are seeing yields move in higher. Equity markets racking up stellar gains. Theres no contagion. Thats true. He used the phrase house of cards and if the greek card were to be taken out then the rest of the house would come tumbling down. That doesnt seem quite so likely. Its going to be a messy outcome. I dont think anybody wants an exit. Least of all angela merkel. The german chancellor. That will go down as a defeat for her despite what buffet says which is right. The leaders in europe do think this club needs to stick together. So i could easily imagine that greece could default within the euro area on some of its debts. Youd have a rather messy debt rescheduling but they would remain in the euro for the time being. They might have to reduce capital controls as allowed under the rules. So were going to see a halfway in halfway out solution. But what would tell you that markets right now are being come place complacent about the euro. Or greece only makes up 2 of gdp. Its getting smaller all the time. Thats the tragedy. Both of you are right in a way. I think well be testing parity. Thats what draghi wants. I think equity markets are too high and theres a bubble developing because of qe. It could be that we will have this break between the euro getting weaker and the stock markets getting stronger. I can see the euro stock markets correcting by about 10 . Whether its because of greece or Something Else<\/a> just the view that valuations are ahead of reality because its all poked up by easy money. What germany needs is a stronger euro because its already far too high. The weaker euro would increase the imbalances in the euro area which are really at the heart of this problem. But the market is focused on the positive benefit or of the weaker euro helping exports. That works up to a point and thats what is being wished for but sometimes reality will have to come back and take over again. Were seeing a bubble in bond markets and the beginning of a bubble in equity markets but thats not what the euro is supposed to be about. The euro is supposed to be about longterm stable money so you know he where you are and were in a very awkward situation where the market is also being drugged by cheap money and i do ask myself how long this will go on for. Mind you, i have been asking myself that for about two years and it may go on for a bit longer but it will all come to a sticky end. David one last month, you write the greek debt approach that will increase German Government<\/a> bonds. What exactly do you mean by that . Basically theyre having to scour the world to buy up the german bonds. The domestic holders dont want to sell them. Most people are doing it for a valid reason. So clearly some Central Banks<\/a> are selling even german securities. Theyre becoming scarce and this leads to an interesting technical problem that all the high rated security whether from germany or france or other areas are needed for collateral and theyre all ending up at Central Banks<\/a>. This is why there will be starting a security Lending Program<\/a> from april. It will try to overcome that problem. And as soon as you solve one problem you end up causing another one. Thats what theyre finding out. Theyll have to be lending out the securities they just bought back and probably not against cash but treasuries or some other securities. An urn of worms has just been opened. Never heard anyone speaking about a potential Lending Program<\/a>. You heard it here first. You heard it here first on cnbc. Coming up on worldwide exchange, go daddy gets set to go public welcoming the 34th firm to ipo this quarter. Later we take a look at how some of the other stocks have been performing in the ipo space. It may be april fools but this is no joke. Amazon launched a real life click button where you can hang anywhere in the house. Stay tuned for the details. Walmarts puts the pressure on arkansas as its the latest state with the religious freedom act but will it make a difference . We discuss. With the smart phones locked away. Its time to unleash the awseome power of these hands. You got it booking right. Booking. Com booking. Yeah lets bring you the latest on the iran talks that are on going. According to reuters a german delegation course said nothing is agreed at the Iran Nuclear Talks<\/a>. An agreement is possible if there is good will on all sides. This morning a chinese delegation source said talks were going well but yesterday the French Foreign<\/a> minister left the talks early so still a lot of confusion as to where we are in terms of those talks. All right. Lets focus in on asia. The nikkei underperformed following the low 25 day average. This after a weaker than expected survey from the bank of japan. It suggested Big Companies<\/a> would cut spending in the coming months forecasting lower demand inside the country and globally. Softer Global Demand<\/a> also taking its toll on Chinese Business<\/a> activity according to fresh pmi services out this morning. Theyll be forced to launch additional stimulus measures. Same old story, isnt it . Manufacturing pmi came in at 49. 6. Slightly better than forecasts but still in contraction territory. The governments official pmi rose to 50. 1 in march but showed that businesses continue to face weak demand. Meanwhile the official services pmi fell slightly from the previous month. Now the u. S. Administration is making a slight about turn on the chinalead Development Bank<\/a> aiib. Taiwan and nor bay wereway applied for membership bringing the total members to 40. That includes britain, germany, france, and australia. Japan and canada opted out for now. The white house warned over Environmental Concerns<\/a> with the organization. But speaking off a trip from beijing yesterday, they appeared to be taking a softer stance. We made clear the United States<\/a> was ready to bring new additions to the architecture including the Investment Bank<\/a> provided these institutions compliment existing International Financial<\/a> institutions and share the commitment to Decision Making<\/a> and improving standards. David there is a very very strong link between this setting up of the aiib and chinese efforts to have it included in the by the imx. These are two separate but interlinked matters. The matter that links them both is that americans have been caught rather unprepared by this success of the chinese official tif s. America thought this could be popular among its allies. Its failed in that and been a blunder by the American Administration<\/a> and not seeing earlier that for their own selfish reasons france would want to join up. Now the other issue is also connected to the whole question of who runs world money. The chinese are quite keen without really amounting a full scale campaign. Theyre quite keen. Its hugely political. Its for the International Monetary<\/a> fund and the bud of honor for any country that needs to be taken seriously in the world. So to get into the crs even though its not something that anybody would worry about is important because theyre there at the top table with the dollar sterling euro and japanese yen. Thats why he has not ruled it out all together. He simply said very sensibly you chinese have to do more opening up in your account. He is applying a few seasons. Could this be a transformative change in global power if the bank is successful . When we look back at this in probably 30 or 40 years time when youll still be running this program, im sure. It will look like a historic turning point. This is the first time that a new Development Institution<\/a> with a new worldwide capability is being set up without the u. S. Giving it its blessing. Going ahead with 40 members without the u. S. Being on board. Youre still seeing western allies with the bush back. Well when i used to be on the Financial Times<\/a> the secret of writing an editorial is find out whats going to happen and then write an editorial backing it. America could have taken a laep out of this book. Why not take a slightly softer stance just as jack is now doing. It seemed silly to put all the pressure on these allies that anyway said look we thought very carefully about this and were going to ignore your advice. It just seems rather senseless to do it that way. Luckily jack is sensible enough to be able to come on board and from the contacts i have with the chinese they have been remarkably statesmen like on this. We recognize you have maneuvered yourself into rather awkward corner. We the chinese rule out years of experience to help you the United States<\/a> get out of this awkward spot. So how about that for sophisticated statesmen thinking. Keep your friends close and enmys en enemies closer. Thank you. Up to speed for news coming out of standard charter. The Group Executive<\/a> director has resigned. The Group Executive<\/a> director has resigned from the group to pursue other interests. Now he is appointed as chief information officer. Appointed group head of financial markets. So some Management Changes<\/a> taking place at standard charter. The stock although up about. 2 in todays trade. Thats of course in line with the big Management Change<\/a> at the top. The ceo. Exactly. Coming up soon. Still to come on the show deal or no deal. The Iran Nuclear Talks<\/a> get a one day extension after the u. S. Threatens to walk out but will more time on the clock really do the trick . Were going to discuss. European markets turn positive after pmi surveys say Manufacturing Activity<\/a> is picking up across the clock. Also firmer against the dollar after reporting its worst quarter on record. Chinese stocks shrug off a number of surveys suggesting manufacturing remains week but the nikkei closing lower after a disappointing business survey. Oil trading lower amid mixed hopes against iran. The u. S. Is ready to walk away from the negotiating table but Good Progress<\/a> is being made as the deadline is extended by 24 hours. Lets get stock specific. Easter coming early for the swiss chocolate maker Barry Callebaut<\/a> after earnings beat expectations despite currency head winds. Lets get to more Economic Data<\/a> out of the u. K. Britains Manufacturing Sector<\/a> growing at the fastest rate in 8 months in the month of march. We have got a number of 54. 4. That is just a tad below expectations but it is an improvement from the month before where we saw a print of 54 and that already had been the highest level since july 24. So strong domestic demand thats the story. Pick up and export orders. The u. K. Economy has all things going for it. They really are banking on a strong recovery in the economy. They need this right now. They do need it. Lets have a look at how sterling is doing on the back of this. Were some what high though this is just a very very small move to the upside in terms of the sterling dollar move. It was unchanged before. Now just an inch higher. The manufacturing data is the key focus for markets today. Lets look at the other currencies and how theyre performing. The focus on german manufacturing growing at the fastest rate since april of 2014. Remembering manufacturing makes up one fifth of the German Economy<\/a> rising to 52. 8 from 51. 1 in the month of february. Were looking at the euro gaining a little ground against the u. S. Dollar. Big picture is the euro lost about 12 against the u. S. Dollar in 2015. Taking a look at european markets were seeing double digit gains across the board when looking at year to date performance and todays action well were higher actually across the board probably having to do with that better than expected manufacturing data we have been getting. The xetra dax up. 4 . Green in the u. K. France and italy. Lets look at the stock on the move in europe today. Delivering an early easter treat. Yes easter coming up shortly. Shares have hopped to the top of the stoxx 600 after they posted stronger than expected growth. Shares higher by 7. 72 on the mid cap market. The fashion retailer posted a 10 fall in profit hid by lower prices and investment but that figure managed to beat forecast. The group was confident Going Forward<\/a> saying it would be in line with expectations and shares jumping earlier this week after they struck a deal to buy high end fashion site. Currently high by 6. 5 and head to our website so read more about why luxury retailers are showing more interest in online sales. Thats on cnbc. Com. Lets take a look at oil prices after three days of consecutive declines. How are oil prices paired today . We are lower across the board. Brent crude down marginally on the day at 55 barrel. Wti crude down about. 7 . It was interesting to hear from the manager director earlier today on cnbc that says expect oil prices to stay low due to the likelihood of a deal which would lead to new capacity in the market. The u. S. Reportedly threatened to walk away. Diplomats agreed on an extension to end the standoff while stumbling blocks remained. They claimed good prodepress was made as late night negotiations concluded. We have been working since 7 30 in the morning and its been a long day for all delegations we have accomplished quite a bit but people need to start early in the morning. I hope that we can finalize the work on wednesday and hopefully start the process of drafting tomorrow. Joining us to discuss is nbc news from iran. The talks are yet again extended as they work through the night and another extension today. The iraniams were reluctant to get to sign anything specific about what to limit and converse and give up where as americans want a specific quantifiable numbers on key issues on paper. Iranians have a rep queuation of being tough negotiators and the team in switzerland want to reflect that image back at home. Mostly to hard liners here. Having said that diplomacy seems to be working otherwise they wouldnt have extended the round of talks. To extend the round of talks and not have it in hand would diminish their landstanding and would allow congress the weigh in on them. They think a bad deal is being made here and they want to weigh in on a final decision. From switzerland were getting mixed messages. They agreed on all key issues and as we just heard the Iranian Foreign<\/a> minister said they could start drofting today. Afting today. But others said theyre not that close and the chinese said if the two sees dont meet in the middle right now all right were going to pick it up. Yemen is on the verge of total collapse. Overnight saw some of the most severe fighting on the saudi saudi yemen border since the start last week. However forces appear to be in closer to securing rebels in order to achieve their aim of restoring the government. Lets talk more about this hot spot. Joining us know is a dubai based geo political analyst. Good morning to you. This increasingly sounds like a very protracted drawn out conflict. I guess month solution is in sight. What do you think . I dont think theres a quick solution in sight simply because of the resilience on the ground. They are continuing to push towarded aen. Theres urban fighting occurring inned aen as we speak. On top of that is the fact that theres a humanitarian crisis beginning to brew. The operation was supposed to last for six months. We think there will be a direction to go on the ground with special Operation Forces<\/a> so this is going to be a battle that will be on going for quite awhile. Got an impact on oil. Oil in the last seven days has been trading around talks. Now with the lacking impact on oil do you think that the west will very quickly lose interest in the yemen story . I dont think so because of the nature of the maritime trade. We have to remember that its not just about oil. Its about supply chain economics and if something happens in the red sea and the flow of goods and services is interrupted this is going to have an impact in europe and beyond and i think that its in everyones interests to make sewer that the straight where the influence of the indian ocean and red sea meet as well as along other routes to and from remain open. I think that the price of oil is going to continue to be low because of the anticipation of the iranian agreement and theres more open in terms of trade lanes. When looking at the economy, its currently in a dire state and internationally isolated. Does iran have any choice but to sign the deal to get sanctions lifted . I think from the iranian point of view they can continue to be under the sanctions regime as long as possible. The nationalism if you will is very robust. Never theless rouhani was elected under the premise that he would get the sanctions lifted. I think that everyone particularly major corporations are all gearing up for going into the Iranian Market<\/a> once an agreement is signed. What will be announced is an umbrella agreement with a lot of appendices and it will give the green light for European Companies<\/a> and Asian Companies<\/a> to go into iran soon. Part of the problem is if anything is held in america in term of assets or American Products<\/a> this is going to have to come in later. This gives the europeans an advantage over their american colleagues in terms of entering the Iranian Market<\/a> which is about 30 years behind so across the board there should be trade on going soon. There is of course a power struggle between iran and the gulf arab nations and the u. S. Is essentially playing both sides. Is that your interpretation as well . Not quite. I think the u. S. Is trying to have iran as a partner while at the same time the u. S. Is trying to have the gulf arabs stand up on their own which is why saudi has taken the lead in this coalition. The u. S. Is a normal u. S. Role in any Coalition Operation<\/a> both of the air strikes are being done by the saudi lead coalition. The Obama Administration<\/a> desperately needs this when with an agreement because its part of obamas legacy. At the same time the u. S. Wants arab allies to stand up on their own and thats whats happening now on the arabian peninsula. Hanukkah for joining us today here on worldwide exchange. Dubai based geo strategic and Political Economic<\/a> analyst. Nigerias new leader pledged to Work Together<\/a> with the ousted president. He vowed to try and heal the political wounds during the campaign. He praised jonathan for handing over the leadership as supporters took to the streets to celebrate the victory. Its the first time a nigerian politician ousted a sitting leader in a group. Business leaders have come out in support of another conservative lead government. They warned a labor government could put them at risk. Responding to the letter labor shadow business secretary said no one will be surprised that some Business Leaders<\/a> are calling for low taxes for big businesses. Thats new new. Labor has turned itself attention to what they call exploitdex exploited contracts. New rules abolish 90 of the contracts. I want to show you once again what we have had in the papers. This is not an april fools joke, is it . This is a very key thing and the Business Community<\/a> backing the conservative party is a story as old as the heels. This is very traditional jaentagents. Theres a number of quite wellknown names in there. You have bob dudley. Shortly to be at credit swiss but what is really interesting about this is whether it actually effects voters or not because this is the stage where you get people whether you call them low information voters or floating voters people who usually dont care about politics and who might be welcome welcoming it and does this mean there wont be an investment . On the flip side they might say i dont care what big business thinks thinkssor disrupter parties for the election. How much of a set back is this for the labor party currently leading right now. Its interesting because everything at this stage, you still have so little to call between the two major parties and all of these new stories can be read in two ways so unless in one way it can be read as a bit of a disaster if it means that a lot of traditional voters make sure that they get to vote on polling day to try to keep it but on the other hand it could be a good thing if it means that more Traditional Party<\/a> voters maybe more people that own zero tend to be younger or maybe not have even voted before. Whats the Corporate Tax<\/a> rate in the u. S. Right now . They lowered it to 20 or 19 . Labor wants bring it back up to 28. 28. And that could take that is likely if they did get in that would likely come in quite soon because we would be calling a budge very soon after the election comes through. It will be something a lot of businesses will be looking at. Thank you so much for that. As european businesses look to broader times a head we look at how some companies survive the downturn. Thats part of the going for growth special report on cnbc. Com. Wall street ceo is asking the governor of arkansas to veto a new religious freedom bill that critics say would open the door to widespread discrimination against gays and lesbians. The pressuremeasure similar to the one in indiana was approved by tuesday and governor said he will sign it. In a statement he says the bill threatened to undermine the spirit of inclusion present in walmarts home state and does not reflect the values we proudly uphold. And the company is holding its analyst and investor day today at the New York Stock Exchange<\/a>. U. S. Ceo is expected to discuss his strategy and wall street journal reports walmart is stepping up pressure so it can regain its place as the low pies leader and help boost sagging sales. Off by 1. 5 in german trade. Still to come brazils government under pressure from all corners as the currency continues to slide and the scandal deepens. We have the full story after this break. Lets check in on corporate news. Sony halved its stake to olympus. The company said the Electronics Giant<\/a> is no longer the top shareholder. Sony bought its stake in 2012 providing olympus with liquidity following the big accounting scandal. Go daddy is going public. The company priced its ipo at 20 a share above the expected range of 17 to 19. The offering raises 440 million valuing the firm at 4. 5 billion. Now go daddy previously filed for an ipo in 2006 but with drew it due to market conditions. It will trade on the New York Stock Exchange<\/a> under the ticker gddy. Etsy is launching its roadshow today. They plan to sell more than 16 million shares for 14 to 16 each. Etsy has 1. 4 million active sellers and nearly 20 million buyers on the nasdaq. Lets stick with tech. Amazon launched a physical real life one click ordering button called the dash button. Yes thats right. It lets Prime Minister<\/a>s reorder items just by pushing the button. Its connected to the app by wifi and is tied to specific brands such as tide detergent and raisezors. If button is free for now but on an invitation only basis. Is this april fools joke. Im not so sure. I think it is. That would be too easy. How does the button know what you want to order . Maybe you can put your request online and then hit the button. I would be too gullible. Maybe it reads your mind. It is amazon. Theyre capable of anything. Take a look at the stock. Its a come back year for amazon shares up 34 in todays trade. Down 1. 5 in frankfurt. Now the brazilian was one of the most important currencies. The president is struggling to jump start the economy while fending off con trotroversy over the scandal. It downgraded the growth forecast earlier this year and predicted further rate hikes would be needed. Lets talk more about the opportunity in brazil with our senior analysis for latin america. Pleasure to have you on. Brazil used to be a favorite destination for emerging Market Investors<\/a> but given the recent political uncertainty, talk about corruption the depreciation of the currency, investors have been hitting the sell button. At what point does valuation alone make brazil an attractive trade . I think at this point brazil remains an attractive investment destination in the longer term but its the shortterm and medium term concerns that investors are focussing on at the moment and that has a lot to do with concerns over corruption, the ability to reignite Economic Growth<\/a> and the inflation concerns for the population will continue to push up the risk of unrest as we go through 2015 and into 2016. So when does the story improve . Because you say this is a longterm trade. The country barely avoided a recession last year. 2015 does not look that great. Add to that a potential rate hike from the fed. That could have massive implications as well. Absolutely. I think we will have to wait out and see in 2015 if the government is able to restore Investor Confidence<\/a> and to post moderate but positive growth. Reign in inflation and potentially removing one of the main drivers of societal unrest but looking further ahead i think the governments in ability to pass significant structural reform because of the political situation and Corruption Scandal<\/a> effecting the governments Approval Ratings<\/a> that will continue to prevent more positive growth in the medium turn. Its just striking isnt it . How so shortly after the elections he doesnt seem to be tenable anymore. Do you think well see the impeachment process against her . Its gaining a lot of support but i dont see the legal basis for it at the moment. And its unclear, even approximate the opposition did table a motion to impeach the president whether they would garner the twothirds majority vote they would need in congress. So i think at this stage its very popular but highly unlikely in legal terms. Can i just get your praft onforecast on what the central bank will be doing next . Facing the wellknown conundrum of high inflation, capital outflows, will further rate hikes exacerbate the picture . Their hands are tied arent they . Absolutely. Its a very difficult decision and were likely to see rate hikes in the shortterm in an attempt to sure up Investor Confidence<\/a> but i think if Investor Confidence<\/a> is regained and we see some signals that theyre returning to brazil there may be further lowering of the Interest Rate<\/a> in the medium term. Also i want to talk about venezuela because the sharp drop in oil prices that has really taken a toll on venezuela. Theyre the country with the biggest oil reserves in the world. They cant use the supplies theyve got. Will venezuela, if the Oil Price Decline<\/a> continues will it default on its debt . It is possible. The president has said that even if the oil price fell to 40 barrel he would still be able to maintain the current spending levels and ensure education and Health Care Spending<\/a> for all venezuelans. However and this is very tricky because theres no transparent figures on the level of reserves that venezuela holds and even though the government is willing to pay its debts its not certain it has the liquidity to do so. So default in 2015 should definitely not be ruled out. Whats your outlook on the currency . Because its set to continue depreciating as the u. S. Dollar. Thats the call by many analysts. What are you expecting this year . I would expect it to continue depreciating. Especially the gap between the official and black market Exchange Rate<\/a> to continue increasing which would lead to higher shortages in stores. The disapproval rating of the president continuing to increase and thats crucial because the government is heading into an election in december of this year. Speaking of the election are we expecting some type of extension . It shouldnt be ruled out. It would be counter productive within the wider region. We have seen in recent weeks and months that left wing governments within south america started calling on the president to respect human rights and respect political opposition and so in that context, i think the government is unlikely to suspend them but that is a possibility. Thank you so much for your time this morning. Appreciate it. And go daddy go. Will the internets largest domain be a hit . Well preview the ipos first day of trade coming up. Pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. From the smallest detail to the boldest leap. Healthier means using wellness to keep away illness. Knowing a prescription is way more than the pills. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. Realizing cold hard data can inspire warmth and compassion. And that when Technology Meets<\/a> expertise. Everything is possible. For as long as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Happy wednesday everyone. Youre watching worldwide exchange. Im seema mody. These are your headlines from around the world. Futures indicating a lower open after a lackluster First Quarter<\/a>. This after the dollar weighs on earnings but the treasury secretary says the strong green back is good for the economy. Godaddy goes public. The first day of trade after pricing its ipo above target. Walmart puts pressure on arkansass governor not to follow indiana with a religious freedom act. The retail giant threatens to undermine the spirit of inclusion in its home state. Oil trading lower. Reports suggest the u. S. Is ready to walk away from the negotiating table but Good Progress<\/a> is being made as the deadline is extended by 24 hours. And welcome to the show. Youre watching worldwide exchange. Its the first day of april and were kicking off the Second Quarter<\/a>, a volatile First Quarter<\/a> to say the least. Market gyrations, a lot of volatility. Triple digit moves to the upside and down side but you take a look at whats happening on this side of the pond in europe double digit gains year to date. Yeah now that the Second Quarter<\/a> has officially kicked off a lot of new money is being put to work and it remains interesting to see where that will be put to work because the material sector in the u. S. Has been lagging because people are coming out of the cyclicals and some of the people have been going into utilities. That is seeing better performance but were watching Economic Data<\/a> and of course good friday. I hope youll be watching. I know youll be on vacation but youll be watching the jobs report too. Its so important because it could dictate the fed policy we see in june. Will we see a rate hike or will janet yellen save that. Its one thing that wall street is watching very closely. On that note on the first day of Second Quarter<\/a> lets take a look at u. S. Futures. The dow is down for 2015. S p 50 o0 and the nasdaq in positive territory. They continue to be the outperformer despite the tech sector. Futures indicating a slightly lower open. The dow down about 11 points. Nasdaq seeing a little bit of red down about 3 points. Whats happening here in europe as we were telling you double digit gains for germany, france italy this year in term of todays price action. It has been better than expected manufacturing data. Its been lifting markets higher. Seeing a gain of 84 points. Were back above 12,000. France and italy also in the green and of course better than expected data out of the u. K. Pushing some investors into the ftse 100 up about 57 points. At this point an encouraging start to the Second Quarter<\/a>. Not so much for the dollar though. I know it had a really good quarter up by around 9 in terms of the dollar index. Take a look at the dollar rates today. Were seeing the dollar some what lower although the euro dollar has fallen off its highs. Were currently changing hands at 10728. Still weighed down by the greek uncertainty but safe haven flows into the yen and thats pushing the yen higher against the u. S. Dollar. The aussie dollar is benefitting from the fact that the chinese pmis were better but were seeing that turn around as well. Lets have a look at oil prices as we still dont have a deal between iran and six world powers. Wti crude off by 1. 16 . Brent crude off by. 54 . In the asian trading session the shanghai puckbucking the trend. Its worst than expected data points in the form of the mixed pmi we got and that bolsters more coming from it. Down by. 029 . Go daddy go. They priced the ipo at 20 a share above its indicated range. At that price it would raise 460 million and value the company at around 4. 5 billion. This is a big mover. Julia takes a look at how go daddy has become ripe for listing. Transformed from a company that just registers domain names to a Web Services Company<\/a> for small and media size businesses. They registered about 21 is of the worlds domain names and also sells Small Businesses<\/a> the tools they need to run their companies. From Microsoft Office<\/a> and powerpoint to email along with invoicing and bookkeeping services. By offering more services has grown to 114 last year up from 104 the year before. This boosting the overall revenue 22 to 1. 4 billion last year. In addition to adding more different types of services the other key Growth Potential<\/a> for go daddy is overseas which now represents it is 28 of go daddy customers. When silver lake and kkr bought the company in 2011 for 2. 25 billion it had 9 million customers registering domain names. Now it has more than 13 million customers subscribing to a much wider range of businesses. Domains comprise just over half of its revenue last year. Well see what investors think its valuation now when it starts trading. One big potential threat to keep in mind google launched google domains in private data soon after go daddy filed to go public. Back over to you. Etsy is launching its ipo roadshow today. They plan to sell more than 16 million shares for 14 to 16 each. They have 1. 4 million active sellers and 20 million buyers. It charges a 20 cent listing fee and takes a cut from each sell and earns money from ads, Payment Processing<\/a> and shipping labels etsy plans to list on the nasdaq. We have go daddy and etsy but in general 2014 has been a lackluster year for the ipo market. 2014 a record year for the number of companies that went public in the u. S. Two reasons for the recent slow down in ipo market first the market volatility. The moves to the upside and down side. You to say i dont want to subject my company to that market volatility and the second is specifically in tech because tech was the best performing sector last year in terms of ipos. This year weve seen a drop off in the number of tech ipos. A lot of that having to do with the valuations in silicon value. If youre getting top dollar as a private company why go public. Thats right. High valuations in the private markets. Pinterest for example, uber snap chat why would you go public if investors in the Public Markets<\/a> and ipo markets are willing to pay less for your shares. So just stick with the private market. So to see it gain strength is to see some of the Tech Companies<\/a> maybe making their way toward an ipo. We may not see it in the Second Quarter<\/a> but we need to see the likes of uber snap chat pinterest and those companies coming to the market. Otherwise well see how they perform because performance of the ipo so far this year has been patchy. A lot of that has to do with the drop off in energy prices. Thats resulted in some of the Energy Companies<\/a> expected to go public and say were going to wait for the vulnerability in the public market. Interesting to watch wast happening in the ipo space. Amazon launched a physical real life one click ordering button called the app button. We have been caught on the wrong side of it. It lets prime members reorder items by pushing the button. Its connected to amazons app by wifi and is tied to specific brands. It comes with a hook and can be attached anywhere in the home. Its free for amazon prime members but on an invitation only basis. Price action in shares one of the outperformers in the tech sector this year. In todays trade down 1. 5 . I still think its an april fools joke. It remains to be seen. Its still early. Have you seen any other this morning . I havent. I have one on you carolyn. You just wait. Its coming. Okay. We have 45 minutes left seema. Turning back to the iran story Prime Minister<\/a> Bejamin Netanyahu<\/a> is to give a statement on the iran talks. As the dollar has strengthened overnight the dollar index high by 0. 2 were seeing more pressure on the oil market. Brent crude off by 0. 4 . Wti off by 0. 8. We will be seeing a deal between iran and the world powers. The world powers and iran continue to tlash out a deal on teherans Nuclear Program<\/a>. Talks have been extended for 24 hours amid some optimism that an agreement can be reached. However the u. S. House reportedly threatened to walk away from negotiations due to a stalemate including research. If they are breached. Lets get back to hadley gamble. What are you expecting from mr. Netanyahu . I guess he will criticize everything thats coming out of that deal. Certainly he has been quite the hawk on this for very obvious reasons. Obviously they believe iran is a threat to the existence of their state among other things so i dont expect that well hear anything different coming from netanyahu today but lets talk about what we do know. Thats that the republicans and Many Democrats<\/a> are worried about this deal. They dont want to be on the wrong side of history here. Theyre worried that the United States<\/a> is going to give too much away and unfortunately this extension which no one wants to call it an extension but obviously it has been an extension is going to do that. So the white house is going to have to work hard to keep the spin going in their direction as washington wakes up and as cap pal hill takes a swing at the white house. They have done a good job of keeping all the negotiations tight and secret. We have just seen varying degrees of optimism fromand the french have headed out and well and the russians. The United States<\/a> of course john kerry still in switzerland and his counter part as well. We saw optimism from the chinese and russians as well but the french werent too keen and of course they have been the most hawkish along side the United States<\/a> in terms of getting a deal as well. What do you think . What is Bargaining Power<\/a> is iran using here . Given the state of its economy it needs the sanctions to be lifted. What the is strategy in all of this . We saw a couple of years ago the conversation was about how do we create a system whereby Irans Nuclear<\/a> program can only be of civilian nature but unfortunately in the last year weve seen the Obama Administration<\/a> moving forward on that and saying we understand this is going to be a system that could change over. What we want to do is keep limitations in place so that at least we have a year break out time and unfortunately thats just become the norm in the International Community<\/a> that if iran were to move forward they could do that. Thats why you see so republicans and capital hill worried about this. This is no longer about putting a stop to the Nuclear Program<\/a>. This is about keeping them held in terms of the time frame whereby if they decided to go for a Nuclear Weapon<\/a> they could do so. Thank you so much. The dow finishes the First Quarter<\/a> in negative territory while the s p scrapes higher but our next guest thinks that the choppy trading is just temporary. Stay tuned to find out why. Well be back in two. In Small Business<\/a> you have to work hard, know your numbers, and stay focused. I was determined to create new york citys first selfserve frozen yogurt franchise. And now you have 42 locations. The more i put into my business the more i get out of it. Like 5x your rewards when you make select business purchases with your ink plus card from chase. And with ink, i choose how to redeem my points for things like cash or travel. Hows the froyo . Just peachy. Literally. Ink from chase. So you can. Lets revisit the terrible crash that happened in france last week. Were getting a statement from germanwings. They just concluded the statement but i want to bring you the highlights. The ceo says that it will take a long time to find out what happened to the german wings plane that crashed in france last week. The ceo also promising to help the victims families for as long as possible. He says we are very very sorry that such a crash could have happen happened given that we put so much focus on safety. Theres many question marks about why they didnt know that the pilot that downed that flight had a period of severe depression previously in his life. He also says that there are no words to express this and extends his thanks to those who helped locally. Lets get you a run down of what to watch this trading day. The march adp employment report is out at 8 15 a. M. Eastern. Private sector hiring is expected to have picked up last month and early signs of a jobs report due on friday. At 10 00 a. M. We get the march Manufacturing Index<\/a> and february construction spending. Auto makers report their march u. S. Sales today. Sales are forecast to be flat to slightly lower although on an annual basis are expected to be strong in the range of about 16. 8 to 17 million vehicles. Cold and snowy weather hurt sales in february especially near the end of the month. U. S. Markets turned in a lackluster performance for the First Quarter<\/a> of the year. The dow ended in the red with the s p 500 barely ending positive to make nine straight quarters of growth. The nasdaq also posted nine straight positive quarters out performing the other main indices. Weaker than expected earnings are partly to blame for the sluggish start of the year. During the quarter, 85 Companies Issued<\/a> negative eps guidance compared to just 16 companies delivering positive guidance. Joining us now to look at what q2 might have in store for investors is the managing director and head of institutional portfolio strategy. Thank you for getting up so early for us. Now this data is quite interesting. We could be seeing the lowest number of positive eps announcements going into this earnings season. Well sentiment around earnings is so negative were in for a lot of positive surprises, arent we andrew . I would agree with that. The bar is low going into the q1 earnings season which begins next week essentially. If you look at the First Quarter<\/a>, obviously we had the big slow down in Economic Data<\/a> in the u. S. A lot of that is largely weather related with the very cold weather we had. The big drop in oil prices and then you had the very strong dollar so those are the big three factors we frame the earnings season essentially. I think the marks being flat for the quarter giving all of those head winds to earnings essentially could be viewed as a positive. The markets held up reasonably well and i guess looking forward, you know the anticipation for the market is that you know the Economic Data<\/a> surprises are about as low as we have seen in a number of years here and likely to start to snap back and that koulcould begin as early as today with three important reports with adp and ism manufacturing and auto sales. But andrew there are a lot of things that are not going to go away. Such as the strength of the dollar or fears of a rate hike. Which sectors do you believe will be doing better . I mean i think the theme you want to look at as a u. S. Based investor is domestic companies. So weve liked more domestic Oriented Companies<\/a> and that would bring you to consumer, to retail, to Department Stores<\/a> merchandisers, things like that that generate a lot of revenue within the u. S. We also like the transport sector within the u. S. And certainly those that are largely domestically oriented. Some of the Domestic Airlines<\/a> as well. What about dividend stocks . The worst performing sector down about 6. 5 . Health care the best performing. The relative attractiveness does come down a little bit. What do you do if you have them in your portfolio . Yeah theres a big difference between those two sectors so we do Like Health Care<\/a> but we dont like utilities. We do see growth in areas of health care. Health care has been the best performer in terms of earnings for the past spefrl quarterseveral quarters and utility has been lackluster. Its really more of the low beta classic defensive play and its also relatively expensive based on historical analysis where the sector generally trades. So theres a pretty big difference between health care and utilities. Id rather be looking for dividend plays in the health care sector. Another sector is Consumer Staples<\/a> which another one which is very historically expensive as well. If you look at the market evaluation and break it down by sector youll find more of the traditional low beta sectors like utilities and sectors are at the high end of the range and more cyclicals are the low end of the range. You were saying stay focused on the nails. Does that mean youll be bullish on the stock like the russell 2000 who makes the majority in the u. S. . Were neutral on market cap right now. There was a big trade in that last year but a lot of indicators have shown that valuation has come back into normal alignment for large versus small. At the margin i would be including if im underweight, small or mid, id be bumping that up. Maybe taking large cap exposure down a little bit but thats the play on the stronger dollar. We tend to get you more to regional smaller companies. And how important is this jobs report on friday . Do you think it could really help give more clarity to traders when we will get a fed rate hike . Yeah its really very important and, you know its just a huge gap between the Employment Data<\/a> and the rest of the economy right now. So the Employment Data<\/a> as you know has been running red hot well over a million jobs added in the last three months. Consensus expectations for another month are about 250,000 so with the low level of initial jobless claims we keep getting every week it continues to be pretty consistent with a 250,000 plus jobs number. I think if you get closer to 300,000 that certainly brings june into play as a potential for the first lift off for the fed. I think if youre 250,000 or below the market probably looks at that more of a september first rate increase. Andrew berkeley thank you for joining us. And still to come on the show americas biggest employer warns arkansas not to follow in indianas footsteps. We tell you about the latest backlash against the controversial religious freedom law after this short break. Welcome back. Walmart ceo Doug Mcmillen<\/a> is asking the governor of arkansas to veto a new religious freedom bill that would open the door to widespread discrimination between gays and lesbians. The measure that was similar to the one in indiana that sparked backlash was approved on tuesday and governor hutchinson said he will sign it. Mechanic mcmillen says it threatens to undermine inclusion present throughout the home state and does not reflect the values we proudly uphold. This is Doug Mcmillen<\/a>. This is the head of walmart. Headquatered in arkansas also speaking out against this law. Its a very powerful Statement Given<\/a> that its the biggest state employer in arkansas. One of the biggest employers in america but in terms of indiana and arkansas dont you think that the damage has already been done from the reputation side . So much investment is going to be pulled from these two states. I dont know if whatever governor pence is doing right now can undo some of that damage. Of course in the meantime we have been hearing a variety of different Corporate Executives<\/a> voice their concern. Well have to see if the push back will be enough to see some type of change. Lets move on. Still to come on the show theyre preparing to deliver the latest crop of earnings amid growing concerns about one of its best selling products. We discuss later in the show. 5 30 a. M. In new york. 10 30 in london. Youre watching worldwide exchange. These are your headlines from around the world. U. S. Futures indicating a lower open after a lackluster First Quarter<\/a>. This as the dollar weighs on earnings but treasury secretary says the strong green back is good for the economy. Go daddy goes public. The tech firm prepares for its first day of trade after pricing its ipo above target. Walmart puts the pressure on arkansass governor not to follow indiana with a religious freedom act. The retail giant warning it threatens to undermine the spirit of inclusion in its home state. Oil trading lower amid mixed hopes for a deal with iran. Reports suggesting the u. S. Is ready to walk away from the negotiating table but new progress is being made as the deadline is extended by 24 hours. An israeli Prime Minister<\/a> is due to give a speech any minute now on the Iran Nuclear Talks<\/a> currently taking place in switzerland. Well bring you the statement from jerusalem as soon as it gets underway. He has of course been very very critical of any deal that could be coming through. One of the very hawkish members in those negotiations. Its the first trading day for the Second Quarter<\/a> and the kick off to april. Happy april everyone. A historically strong month for investors as history has shown us. The question is will it continue . The nasdaq turning in nine straight quarters of growth for the first time ever. Its the outperformer when you take a look at year to date performance. Just about 4 . In terms of future here a mixed session. The dow up about 6 points. The nasdaq off about half a point. S p 500 down about 3 points. Health care the best performing sector so far in 2015. The worst performing utilities. Switching focus to Europe Europe<\/a> has been the big outperformer. German, french and italian markets up better than 15 so far this year. Thank mario dragi for that. Investors reacting to pmi data. German manufacturing growing at the fastest rate since the month of april in 2014. A triple digit move to the upside. The xetra dax up 112 points. Currencies continue to be a focal point for investors. The euro witnessed the First Quarter<\/a> on record about 12 against the u. S. Dollar this year. Mixed Economic Data<\/a> pushing the euro up a little bit. Better than expected data. Manufacturing the focus today. The euro trading at 10732 against the dollar. Lets have a look at oil markets. Brent crude off by a third of 1 off the lows of the day. 54. 91. Wti crude at 47. 07. This as world powers and iran continue to workout a deal on the Nuclear Program<\/a> in switzerland. Talks have been extended for 24 hours amid optimism that an agreement can be reached. However the u. S. Has reportedly threatened to walk away from negotiations due to a stalemate on key issues including Irans Nuclear<\/a> research. The lifting on sanctions and their restoration. As mentioned Benjamin Netanyahu<\/a> is due to give a speech any minute now on the iran talks from jerusalem. As soon as we get that statement well bring you all of that. Meantime, nbc has been following the story and he is in teheran. Is there a sense that the Supreme Leader<\/a> is not giving the iranian negotiators enough flexibility in those talks . Not really. He has thrown his weight behind the talks. Over the course of the talks in the beginning stages they were extremely critical because the Supreme Leader<\/a> had given them that to criticize them. He wants the deal to happen. Not because he has come on tv on the website. He said time and time again were not going to make a deal at any price but we want a deal thats going to benefit the countrys National Interests<\/a> and for that reason he has given the negotiators a fairly open hand. Theres no doubt about the fact that he has red lined. He wants sanctions removed. He doesnt want it to be incremental and those might be some sticking points. Another problem we have seen is that the iranians dont want to specifically sign anything that ties them down to specifics in this deal and that may have come from the Supreme Leader<\/a> as a negotiating tactic to keep their hands open in this deal. So not bind them to anything conclusive that the americans can backtrack on. His line is always in this country. Americans are our enemy. That they dont have irans National Interests<\/a> at heart but to get these sanctions lifted to get the economy revived it is doing a deal with the devil if you will to get the sanctions removed. But well have to see if they can bridge the gaps. Its going to be tough. Theyre trying to reach an accord because if they dont reach an accord today its going to be very difficult to revive these talks and reach a comprehensive agreement by the 30th of june. Im sure well hear Prime Minister<\/a> netanyahu be very critical of the talks and saying theyre not getting anywhere and if the two sides havent today then his voice will get louded and say there is no accord. Meantime the chief political analyst at city group joins us in the studio. Seems as if nobody wants to strike a deal for the sake of a deal. Once we get the deal whether its today or tomorrow in a couple of days do you think that deal will be long lasting . Well you mentioned a few things. First of all its perfectly reasonable and encouraging that we had the deadline for talks extended. That means both sides are serious. It shouldnt happen quickly or easily because both sides need to signal that they fought hard for National Interests<\/a>. Whether a deal thats reached is a good deal is a separate point. Last week when he was in london he was fairly cautious in the durability of a deal but this was always the difficulty in diplomacy because both sides have internal pressures. Congress is coming back from recess april 13th so as much as the white house wants to keep the pressure high on iran it has congress breathing down its neck. Will iran play by the rules if a deal is inked. If they fail to comply to these policies how quickly could the sanctions come back online . Thats one reason youre seeing so much debate around the un sanctions because one of the things the iranian side wants to do is have the sanctions lifted at the u. S. Security council because the thinking would be if you did have a republican president taking over after the 2016 u. S. Elections that the absence of un sanctions would make it difficult to reinstate it at that level. Theres so much momentum on the side of the two president s theyll work hard to try to get somewhere but its not going to be over. Does the u. S. Risk losing allies in the gulf if the deal this iran comes together . This is the kind of debate that we talked about quite a bit because if you look at the interests in terms of the regional conflicts and the alliances the u. S. And iran are on the same side on a number of issues. That worries long standing allies saudi arabia and israel as were about to hear and it makes for a continuing unfolding of a region influx. I wonder what this means for president obama domestically. Is there a sense that this could be a lose lose situation for president obama . They might want to up the sanctions . Theyll be accused of that deal not prudent enough . First of all there is some way for this to run. President obama is in the last years of his second term. So we really wont know if this deal stands the test of time for sometime but if you look at u. S. Public opinion its running strongly in favor. 21 in favor. Theres a partisan divide with more republicans against but the president is reflecting the u. S. Public desire to make peace. The situation in yemen complicated matters worse. Oil traders watching the situation closely. But given its strategic location. You have nine gulf arab countries come together in a pretty Ground Breaking<\/a> Regional Force<\/a> to combat allege rebels in yemen. It is a geo strategic one so thats another wrinkle in these relationships relationships. The risk of a proxy conflict in yemen adding to a Regional Security<\/a> organization r o arms race are further factors to watch in this vierm. Always great to have you on the show. Appreciate your insight this morning. Coming up on the show ordering in a dash. Amazon is making it easy to restock your kitchen or bathroom with items with just the push of a button. All of those details coming up. Stick with us. Welcome back. Benjamin netanyahu is delivering a speech on the Iran Nuclear Talks<\/a>. Lets listen in. We just missed him but he has been kite critical of this potential u. S. Iran deal and well get you the highlights as they come out. All right. Lets switch focus to the ipo market because go daddy is going public. The company has priced its ipo at 20 a share above the expected range of 17 to 19. The offering raises 440 million valuing the web domain firm at about 4. 5 billion. Go daddy filed for an ipo in 2006 but with drew it due to market conditions. It will trade on the New York Stock Exchange<\/a> under the ticker gddy. Etsy is launching its ipo road show today. The online seller of handmade goods and craft supplies plans to share the shares for 14 to 16 million each. They have active sellers and nearly 20 million buyers it plans to list on the nasdaq. As were discussing the volume of ipos this year its gone down drastically. Its cut in half. Whats also notable is the fact that private equity backed ipos that number has fallen quite dramatically too. We only had five pe backed deals. Thats quite interesting because that was the main driver last year. Only five deals. That means it the least active quarter for private equity since 2008. Of course one of the reasons we havent seen as many ipos in 2015. Some traders say its because of the valuations that were seeing in the private market. All of this talk about this bubble taking place when you look at snap chat uber given the billion dollar he evaluations. Theres no need to go public when youre getting that money in the private market. Why would you . And then as you pointed out before, its volatility. If these markets continue to be as volatile as they have been why would anyone want to go public . Because for example, we had one of the bio tech stocks. It started trading on march 25th. Thats when bio techs got hit and of course its performance is down since the ipo. 17 . We have already seen a lot of volatility in the nasdaq bio tech index. Its up about 50 year to date but ipos continue to be some what strong accounting for roughly half of all deals. All right. Now, this may sound like an april fools joke but amazon insists it is not. The online retailer has launched a new ordering button so you never have to run out of coffee razors or trash bags ever again. Lets see what landon makes of this story. She is joining us live from cnbcs hq. Its no joke. Theyre taking it to the next level in the kitchen, the bathroom and the rest of the house. They launched a new push button device called the dash button to let amazon prime members reorder products. Theyre tied to specific brands such as tide detergent and gillette raisezors and can be stuck or hung throughout your house such as the washing machine. They will send order notifications to a smartphone and for now its only available to prime members that say an annual fee. Its by request only and limited to a set of three. This is the latest in a long line of ecommerce experiments by amazon last year. It tested another hardware device for restocking the home. A wand with a bar code scanner. Earlier this week amazon relaunched the Home Services<\/a> page which aims to compete against sights like angies list. They compete with price and availability. Amazon is already working with partners on the next step that will eliminate the need for buttons or wands. Its new Service Enables<\/a> connect connected devices to reorder goods when they run low. Theyre working on a washer that anticipates when you need new laundry detergent. So no need to ever leave your house again. Clearly. I dont know if thats good news or bad news. All right. Lets have a look at some of those april fools jokes which have been spread around the internet. Now heres a really good one from the independent here in the u. Kflt u. K. Arsenal and puma unveiled the worlds first left footed football. I dont know much about football but it doesnt seem that you need a lefty football to play. As our coanchor wilfred is out in australia hanging out with kangaroos we should play a prank on him. We should say theres breaking news. You have to cutoff your 2. 5 week trip and get out here. Come back right away. Maybe hes watching. Although i dont think so. Hes enjoying himself. Yeah he is. Before we go to break, heres your headlines. U. S. Futures indicate a lower open after a lackluster First Quarter<\/a>. Iran Nuclear Talks<\/a> continue but reports suggest the u. S. Is ready to walk away from the negotiating table and walmart puts the pressure on arkansass governor not to follow indiana with its controversial religious freedom act. Were back in two. Stick with us. T predict the market. But at t. Rowe price weve helped guide our clients through good times and bad. 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<\/a> risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Welcome back to the show. Its the first day of the Second Quarter<\/a>. Lets see how european markets are shaping up. We are seeing a lot of green. The ftse 100 higher. We did see an improvement in the pmi data this morning. Thats certainly helping market sentiment. Lets cross over to the euro dollar pair. Its little change this morning. We are changing hands at 10735. Weve seen a little come back in the dollar index just over the last one or two hours so an asian trading session though it was down. Lets take a look at u. S. Futures on the first trading day for the Second Quarter<\/a>. Right now were indicating a higher open. The dow up about 35 points. The nasdaq up about 7 points and the s p 500 up just about a quarter of a point right now. So indicating a higher open of course a focus will be on whether investors will buy the winners or buy the sellers and sell the winners. Thats what she was trying to say but well see how q2 shapes up on the first day. Earnings will be a focal point. Theyre due to report Second Quarter<\/a> earnings before the bell. Theyre expecting them to earn 2. 93 per share on revenue below last years levels. Lets talk more about what to expect with Mark Connolly<\/a> analyst at clsa. You know we have seen prices drop about 50 . Soybeans down about 30 over the past two years. How much is going to impact earnings this quarter . None of it matters. Theres a lot offing strength to the portfolio. The stronger dollar has been a major head wind and one of the big themes were expecting in earnings. Of course they make their products much more expensive in products products. How much are you expecting it to impact earnings this quarter. Its more expensive for the brazilians but its making farming more profitable down there so farmers are doing well. We dont think there will be an impact at all. The big worries are fx whether its going to continue to sell and of course all of that stuff and until yesterday corn acres but it came in fine too so it doesnt look like fx is going to be the head wind people worry about and of course we found out yesterday that farmers are very bullish corn. Causing cancer do they have a big image problem or do you think this is something that could blow over pretty quickly, mark . I think they do have an image problem and the negative news it just keeps coming but as far as an actual sales and revenue problem they dont. If you think about the way we have been using it we have used it for 40 years. Extensively for 25. Farmers in illinois practically bathe in this stuff. Farmers are not going to give a product that continues to work for them that has shown limited evidence and of course the epa had just looked at it two years ago. Its highly unlikely well see a meaningful change in demand. Do you still have a buy rating on the stock . We sure do. This is one of the great growth stories out there and ill tell you in the last couple of weeks with all the negative headlines mostly what were hearing is do you think the stock will be down so i can buy it. Thank you for that. Now in the last few minutes israeli Prime Minister<\/a> Benjamin Netanyahu<\/a> issued another warning on a potential deal with iran. Heres what he had to say. Yesterday an iranian general brazenly declared and i quote, israels destruction is nonnegotiable. But evidently giving irans murderous regime a clear path to the bomb is negotiable. I agree with those who have said that irans claim that its Nuclear Program<\/a> is only for peaceful purposes doesnt square with irans insistence on keeping underground Nuclear Facilities<\/a> advanced center fujfuges and heavy water reactor. Nor does it square with developing icbms and its refusal to come clean with the iea on its past weaponization efforts. At the same time iran is accelerating its campaign of terror, and conquest throughout the region most recently in yemen. The concessions offered to iran would ensure a bad deal that would endanger israel the middle east and the peace of the world. Now is the time for the International Community<\/a> to insist on a better deal. A better deal would roll back Irans Nuclear<\/a> infrastructure. A better deal would link the even lifting of the restrictions on Irans Nuclear<\/a> program to a change in irans behavior. Iran must stop its aggression in the region. Stop its terrorism throughout the world and stop its threats to israel. That should be nonnegotiable. And thats the deal that the world powers must insist upon. That was Benjamin Netanyahu<\/a> speaking earlier in jerusalem. Thats it for todays show. Thanks so much for joining us. Well see you same time same place tomorrow. Have a great day everyone. Next up is squawk box. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. Good morning, keep talking at least for now. Developing story, iran negotiations pushed past the deadline. The u. S. State Department Says<\/a> enough progress has been made to justify extending discussions. Corporate backlash now with arkansas. Lawmakers passing a religious freedom bill similar to indiana and now walmart ceo is calling on the arkansas governor to veto the legislation. And go daddy is going public. Gives us an opportunity to run some former ads. The Web Hosting Company<\/a> prices its ipo above the expected range. It is wednesday, april 1st. Yeah, april fools day. 2015. The 15th is coming up. Everybodys favorite. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick. Andrew is off this week. Its april fools day. Be on the look out for pranks from your favorite tricksters. Weve already seen from a few companies having fun. Google releasing its most ambitious update yet. Calling it pac maps. You can turn a city map into a playable pac man maize. And then theres tmobile. They push the family plans that arent available to whole family so tmobile is releasing its pets unleashed saying its extending cell phone","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia601307.us.archive.org\/15\/items\/CNBC_20150401_080000_Worldwide_Exchange\/CNBC_20150401_080000_Worldwide_Exchange.thumbs\/CNBC_20150401_080000_Worldwide_Exchange_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240621T12:35:10+00:00"}