They rise for 20 straight months with all major markets showing growth. Asia markets take their queue from a record close on wall street and the promise of chinese reforms. The shanghai ending with the nikkei at a three week high. Welcome lets get straight to markets and the euro in particular which was soft yesterday but markedly soft today. Took a big leg down about half an hour or so. You can see its 1. 118. Down 1. 2 . This came after the ecb board member expressed concerns about the repettive of european bond sell off. He cited extreme volatility and reduced liquidity and added it will be front loaded ahead of the summer lull. What has this done to equities . They moved in the opposite direction as you can see. Across the board equities are looking strong. Ftse 100 lagging. Its up. 5 where as Continental Europe is up significantly. Italy up 1. 3 . Lets have a quick look at bonds as well which have also seen a little bit of a move. We can see the bond yields slide a little bit. Back below 0. 6. We have julia on set with us as well. It seems like the ecb is ahead again. What are they trying to achieve here . They seem to have done a couple of things. The Euro Weakness is one in particular. When hes talking about the concerns in the volatility of the market the ecb would like to talk those down. It raises all the usual questions about the omt and the things we have seen in the past and one of the other things 60 billion jurors rows worth of bond supply over the next four weeks. If you were the ecb wouldnt you want to adjust your purchases in order to smooth some of those buyings. The timing of these comments are interesting because we know investors have been falling out of low with the qe trades. Short the euro and go long european equities. Those trades have been unwound so perhaps these comments are coming to basically put those trades into effect for the longterm. I also think we have been trying to workout what has been the cause for the sell off weve seen over the last couple of months and that question of is it the ecb, qe bubble burst something id say this now underlines that that was the reason for the move. Look at the correlation were seeing. Equities and bonds going up together. It does highlight the driving force behind markets for the early part of the year and over the last couple of months where that has been unwinding. Three weeks ago we were talking about the scarcity of the bonds and concerns that the ecb wouldnt be able to make the purchases it wanted to. Imagine if we got to a situation where liquidity is lower and they didnt hit their purchase targets. Imagine the conversations we would be having there and freaking out about the scarcity of bonds. I think this is a smart move for a few reasons. Reassuring comments. European equities sharply higher in todays trade. I want to point your attention to the greek bond market. These discussions pertaining to greeces debt situation, to the imf as well as tread creditors, those talks continue to intensify and in response youre seeing the greek ten year at 11. 3 . Yield on the 5 year at 16. 5. The three year at 18. 2 . A number of greek officials expressed confidence that the country can come to a deal with its International Creditors in the coming days. Last night the finance minister insisted a default and return to the dragma were not an option but athens would reject any agreement it considered to be nonviable. Translator there is no one in our government no one in our government that will sign an agreement that wont forsee the restructuring of debt. It comes after the greek Prime Minister admitted that the country is in a state of financial strangulation. Greece is unlikely to be able to pay its upcoming debt obligations unless the next bailout money is released. However a group from the far left of the ruling syriza party called for a rupture with creditors. In a text published on a website and to be discussed today they say syriza cant become a party of austerity and this government cannot implemented a memorandum. Julia on one sense we have him suggesting on television that were getting close to a deal where as people in his own party suggesting were far from it. Scared we are pushing toward a deal and they dont like what it looks like. Are you crossing red lines we keep talking about. Pension reforms and deregulation of the labor market but we always knew it was a possibility here. When i spoke to him in february i asked him about this and the risk to passing policy and he said look they always voted with us and they will again. Will they be able to swing this again this time who knows as far as thats concerned. It does seem like were making progress. I talked about it as walking the red line. Some of the reforms they talked about suggest theyll scrap early pensions. Were seeing some adjustments to pension reform. I say walking on the red line and not crossing it but the other things is whether there was some negotiating going on to get them a softer deal and that excluded the imf so yet again it seems that we cant get agreement between the creditors over just what greece needs to do here. In the meantime, the hard left faction wants him to take a hard line with creditors. Could these demonstrations were seeing result in a slow down in the negotiations taking place between greek leaders and creditors . Its a good question. I dont think so in a sense. Theres enough that they could vote this through. It could be messy. Who knows what thats going to do to the government afterwards. A lot of them still ruling out the need for a referendum at this stage. That could mean more delays. Will a referendum actually work in their favor. Thats a great question. Whether they rally to him or accuse him of time wasting. We want a better deal. Very difficult to see how they argue. Julia for now, thank you so much. Its not all doom and gloom despite greeces dwindling finances the countrys firms are making pigbig bucks. For more on that visit our website cnbc. Com. Lets have a look at markets and a sea of green behind me. Not small moves. Most of these are up over 1 over 2 indeed. Where are we seeing so much green . The euro has fallen quite sharply today, particularly in the last 45 minutes off the back of the come menls wements we have been talking about. Quick look just to remind you of the moves weve seen. Ftse 100 up only. 5 . Lets dive into the interesting sector and stock moves were talking about today. Auto stocks on the back of european car sales which rose for the 20th straight month. April new car registrations were up by 6. 9 thanks to growth in major European Markets. You can see the moves across all the major european auto makers. Quite significant at the moment. Stefen has the latest on this story. The growth came from countries like spain up 24 . Italy up 16 . The month of april was weaker than the performance in march with almost an 11 growth but it remains the best performance for the car sector in europe and in terms of brands the french car maker was the best performer. Almost a 16 rise. This is due to the Strong Performance of the low cost unit which posted a 15 growth but not only even the renault brand did well last month in france and the rest of europe. For the other prench car maker we had a 2. 5 growth last month. That seems to be a weak performance compared to the rest of europe. Its due to that line which saw a 17 slump excluding this negative impact it grew by 6 in april which is quite good. The company was went through a very difficult period in the last three to four years and that seems to confirm the gradual recovery not only on the french markets. All in all good performance in europe and very good performance for renault which is now the Fastest Growing car maker in europe. Share price is up 3. 3 . Thank you for that. Thats what is happening in the markets in europe. Lets get out to sri for an update in asia. Yeah. That seems to be soaring up sentiment from your neck of the woods and off fears of a greek debt default. I wanted to talk about the shanghai market. A blistering rally at the close. Up by 3. 2 . Remember what we saw yesterday. Remember the message yesterday. Market was at a one week low because there was a sense that we could see this wave of new ipo issuance. We certainly din get that playing out today. What we did get was a little more clarity about the Reform Program and as you would expect theres a big emphasis on Capital Market liberalization. The markets like what had they saw. That encouraged a loss of buying of the blue chip stocks. Especially the banks as well. That propelled the markets higher. Where else has the chinese public got to put their money aside from the stock market and property as well. So its looking a little bit bubblish, yes, market valuations are still below the 2,007 peaks. Positive sentiment spilling over. Sri for now, thank you so much. Coming up on Worldwide Exchange potus, president Obama Joining twitter taking part with bill clinton. Well bring you that. Plus we break down the u. K. Telecoms results after the break. Plus overalls are coming back. Retailers try to make them fashionable again but we hear from one analyst that says the trend is just another sign of desperation. Thats coming up. Thats coming up. Shares in the red after quarterly net profit fell last year. They posted full year pretax profit over 1 billion pounds in 2014. Vodafone said stabilization in europe and increasing demand gave a boost to sales. Group sales are rising 10 in the year but the stock is down. Why do you think that is . The uncertainty ahead. You know, we are excited because. 1 organic growth in the last quarter is a symptom of the industry i think and vodafone is claiming they will have organic growth Going Forward but looking at the market i think thats a bit uncertain. I think we can predict maybe the next two or three quarters of some growth but beyond that we have still the competition between operators that is tough. We have the regulators and the players that still post tough competition. Interesting you say its still a very challenging outlook but the shares havent done much anyway. So these results slightly better than last set. Clearly not performing well. Of all the challenges that it faces is the competition in that sector still the main one. Particularly the consolidation in the u. K. Market. We only have a theory that three player markets are more theory than four player markets. But thats only a theory. In austria we could see that prices were increasing a bit. Thats a sign that it can improve but in finnland we had a three player market for a long period of time and thats still very tough price competition. We dont know if a three player market is better for operators. This deal between bt and ee how much of a threat is it to vodafone that theyll have this quadplay offering and being able to offer domestic broadband as well as video which they dont have the similar offering of. The trend there is quite clear. Most operators have figured out that they like to be quadplay operators. That would be the dominant player in this market. Vodafone has made acquisitions put in a position to be the operator but theyre only halfway there. 25 of their revenues are coming from fixed broadband. So if they wanltd to be at to be fully integrated they need to invest more in content. The animal spirits are alive in the Corporate Board room. What other tie ups do you see in this sector . This is a market being more comod tiezed year by year. We have ip all over the place. Beyond that we have 4g basically where every we move outdoors but that also means that the similarities between the offering of the operators are similar. So therefore price would be a very important weapon in competition and beyond that you have players that are, you know posing a threat to existing Business Models. You have whats app, you have skype, you have spotify and a number of players offering compelling services at the expense of operators. So i think that one key focus for operators is to be very cost conscious and look at you know what is the operational cost of my business and can i be more efficient than i am today. Its fascinating discussion though. Commoditization commoditization. Thats in some ways happening in the cloud industry as well. Utilities. Theyre essentially offering the same services so overtime how do you differentiate your product versus what your competitors are offering . Its a trend well have to continue to watch and what it means for different sectors. Absolutely. Pleasure to have you on. Thank you for joining us on Worldwide Exchange. Now sticking with telecom, at t chair pan and chairman and ceo took the stage in boston. Kayla caught up with him and filed this report. The buzz is over bundling or rather unbundling and whether the end is near for that traditional cable package. We sat down with the ceo of at t Randall Stevenson about his views on that subject. Youre seeing netflix and hulus gain a lot of momentum and its changing not just the tv distributors like verizon or comcast or at t and how we think about the business but effecting how the content developers are thinking about the business. Part of at ts strategy to build the over the top content product rests on the fate of its merger with directv. Its been delayed several times due to new rules over net neutrality. Stevenson told me he is optimistic about the deal but less so on the fate of those rules. We do think that there is general willingness to pass a sustainable path to net neutrality. The only thing certain in these industries is change. The world will look like a very differ place in just a years time. One executive familiar with that is Marissa Mayer presenting a closely watched keynote at this conference on day 2. Okay. Back to European Markets, everything is up as you can see or is it . Lets dive into some of the individual stock stories. Merck down 1. 8 after disappointing First Quarter results. This due to costs associated with the planned acquisition of sigma aldridge. Lets get to annetta with more details on the story. The numbers are disappointing and its the only share here on the German Market side which cant benefit from all the ecb or greece optimism. Let me run you through the numbers. Net profit down 13 . The company is because of financing cost of its biggest acquisition ever in the companys history. Theyre essentially supplying technology and instruments for laboratories for 17 billion u. S. Dollars. The financing cost caused a weighing on the results in the First Quarter but looking at the divisions also there, Health Care Unit is not doing well. They have drugs, like the drug against ms and those blockbuster drugs have suffered a severe blow in the First Quarter. Sales are down 16 where as sales for the cancer drug is down by 6 . Also is they need to invest more money into research for new drugs and new other drugs in general because of course they need to renew their pipeline here in the health care sector. The outlook 2015 really looks very good but looking through the side effects of the lower euro or strong us. Dollar where they say theyre benefitting from theyre looking into flat sales also for 2015. Thats the reason why the stocks are down despite the very Friendly Market environment. For that back to you. Annetta thank you very much. Unilever up 1. 3 . The cfo is leaving the company after five years. It was his decision and his replacement has been named. Markets are positive across the board in europe today but he is leaving and unilever is up today. Now dcc sharply higher. 10. 5 to the green after an 8 rise in full year pretax profit. The Business Support Services proposed a share placing and upgraded its profit and adjusted eps outlook and aveva is down 3. 25 after posting a 19 drop in full year net profit. This due to strength in sterling and weaker demand. We talk to lots of our competitors about partnering with them all the time but im not going to Start Talking to you about each individual case. Are you talking to any of those three companies i mentioned about a possible take over of your company. Absolutely not. Still to come on Worldwide Exchange following in the euro zones footsteps . U. K. Inflation is expected to turn negative for the first time in 5 years. We bring you the data coming up next. P next. The euro is on the slide after the ecb board member says the central bank will front load its bond purchases over the summer due to liquidity concerns. Concerns also weighing on a single currency. A chorus insists a deal with International Leaders is imminent but policy makers continue to suggest otherwise. In the fast lane european auto stocks drive higher as registrations show growth. Asian markets take their queue from a record close on wall street and promise of chinese reforms. The shanghai composite ending over 3 higher. Japanese nikkei also at a 3 week high. All eyes on the currency markets. The euro weakening further. A reversal of what we have seen this month. The ecb intent on easing financial conditions for europe so the weaker currency environment is seen as favorable and you can see that reflected in the equity market. The European Equity market moving up to the side. If you break down the major movers the xetra dax up almost 2 after losing 2. 5 last week so a rebound in the German Markets. Similar situation the ftse 100 up. 4 . Sterling right now moving lower. Indeed we have got the u. K. Cpi data coming in for april. Minus. 1 year on year. Plus. 2 monthly. So that monthly number actually a bit below expectations. Expected to be about 0. 4 year on year number. We are expecting it to come in at minus 0. 1 . So its negative territory for year on year inflation. Thats cpi for april. Sterling is down 0. 7 which is where it was before the data came out anyway. Lets get a reaction from henry dixon who is with us around the desk from glg. Minus 0. 1 . Are we staring in the face of deflation . I wouldnt worry. There was just a question of when. A big, big component of cpi is food. 18 of the cpi basket is food so regrettable state of affairs that we get a lot of our food imported from europe. I would