♪ pimm: welcome to "money clip." where we tie together the best stories, the best interviews, all with business news. apple joins the dow jones industrial average. but it won't be king. find out who rules the blue-chip index. in motors, richard branson of virgin electrifies racing. literally. and it sounds different. it is luxury -- getting it for less in the far east. a weakening value of the euro means more chanel bags.

pick your teams, fill out your brackets. you will meet the investors and business leaders who are competing. it is all for charity. it is a gamer and golfer's dream. rory mcilroy, super mario. well-known superstars -- they get more screen time. but a look at top stories. first, oil prices drop again. a race in gains from yesterday as investors focused on the supply glut. which is at 830 year high. -- a 30 year high. u.s. dollar turning again today following yesterday's selloff after the federal reserve cut interest rates. also in underwhelming economic news the philadelphia fed , factored in fell to its lowest. it dropped 2/10 of a percent in february. swiss national bank resident is pledging to keep interest rates at a low. he wants to weaken the frank with the economy facing the biggest plunge in prices in six decades.

>> very short-term term. we have to accept inflation now below zero. that will change. we expect that inflation will be back in positive territories early 2017. pimm: jordan says the swiss franc is overvalued. the swiss franc soared. -- soared after the swiss national bank moved the cap over the euro. european leaders are gathering in brussels. topictopic -- -- the key -- the greek bailout situation. here is greek prime minister alexis tsipras. >> the greek people need initiatives that respect both democracy and the treaties. to leave behind crisis and to move toward growth. pimm: german chancellor angela merkel says the public should not expect a breakthrough at the talks.

she says the decisions are being made by the finance ministers and it will remain that way. tunisia has arrested nine people because of an attack on a museum yesterday. four of the suspects are directly linked and five are connected to a wider terrorist cell. tunisian officials are still searching for accomplices. website hosting company godaddy.com was acquired three years ago by kkr and silver lake for $2.3 billion. go daddy posted a net loss of a net loss of hundred $43 million last year with revenue of $1.4 billion. meanwhile, philips plans to carry out an initial public offering for its lighting unit in the first half of next year. phillips wants to focus on consumer health technology. that is as the lighting business shift towards led bulbs.

that is the news for today. we will update you every quarter hour. let's take a closer look at an about-face in the markets. right after the federal reserve dropped its pledge to be patient on raising interest rates, stocks, bonds and oil rallied. the federal reserve pushed back its guidance right to the end of the year. here is janet yellen following the decision. >> just because we removed the word "patient" from the statement does not mean we are going to be inpatient. an increase in the target range for the federal funds rate remains unlikely at our next meeting in april. with continued improvement in economic conditions, we do not want to rule out the possibility that an increase in the target range could be warranted at subsequent meetings. let me emphasize that today's modification of the forward

guidance should not be read as indicating that the committee has decided on the timing of the initial increase in the target range for the federal funds rate. we cannot provide certainty and cannot -- and it shouldn't provide certainty because economic developments that will unfold are uncertain. what market participants should be doing is looking at incoming data just as we are. pimm: fed chair yellen at her news conference yesterday. to understand her words, you have to go back in time. here is market watcher jim bianco. definedcember, yellen patience. by her.s a mistake i in february she came out in her testimony and said patients does not mean what i said it meant and that -- she pretty much told us going to get rid of the word. it was about a correction of a mistake. removing patience has no

meaning. everything else had meeting -- the lowering of the fund rate target, the downward assessment of the economy, pushed off the idea that there is going to be a rate hike anytime soon. the takeaway is not with the new york times or wall street journal said, the takeaway is the fed pushed it off to the end of the year 2016. that is what you saw the markets take off. pimm: today, that trend has reversed. stocks are lower. bonds are down and oil prices are falling. the dollar also reversing course. at first, the dollar weakened after chair yellen acknowledged a stronger dollar has hurt exports and inflation. the u.s. dollar has resumed its stronger uptrend. morgan stanley has said we are only in the middle of a bullish super cycle. we asked him if he stands by that call now. >> absolutely.

when we developed this u.s. bullish dollar in we called for 2012, a move between 45% and 50% in the dollar index. what you have seen so far is 31%. we think in the long term what is going to matter, the better growth potential of the u.s. economy. when the year 2016 comes, the fed is going to be in a full-blown hike cycle. that is going to be dollar supported, but for now we are looking at it wasa pause. pimm: the dollar goes one way, the euro goes the other. you see that move that happened yesterday? it jumped four cents on the fed decision and fell back down by that amount today. the weakening euro means a sale in hong kong. why fans of chanel are lining up. that is coming up in luxury. apple joins the dow jones industrial average. but it is not going to be king. find out who is going to rule

the blue-chip index. these are not the northern lights. these are the southern lights. aurora australis. time lapse video taken outside christchurch new zealand. a severe solar storm hit earth on tuesday and put on a light show. it put on a show in both the northern and southern hemisphere.

pimm: this is "money clip." we are streaming everywhere, online, on your phone, your tablet, your amazon fire tv. i'm pimm fox. today is a big day for apple.

the stock everyone loves to talk about is joining the dow jones industrial average. scarlet: it means that the dow jones industrial average starts to look like what the real economy does. apple is the heaviest rated stock and it was not in the dow jones at all. in terms of money, i was surprised, because there is not as much money -- very little money benchmarked to the dow when you compare to the s&p 500. directly indexed money is about $33 billion as of the end of 2012. $1.87 trillion contrast that with the s&p 500 -- $1.87 trillion benchmarked. mid-caps.illion for the s&p small-cap 600 has about $31 billion. that is about what we are comparing the dow with. according to our senior etf analyst at bloomberg, they will

probably buy maybe $500 million worth of apple shares. that is a drop in the bucket when you consider apples market cap is $600 million. >> starbucks is another company you are watching? i know their race together campaign is getting controversy. the announced the stock split. scarlet: a 2-for-1 stock split. what is interesting there is that you have not seen a lot of stock splits over the last couple of years. back in the 90's, stock splits were all the rage. people liked it when a stock is lower price because it makes it more viable. but if it is a big rice tag like priceline, you might shy away from it. now we have a stock market that is dominated by institutional investors. they care less about the absolute price of the shares rather than individual investors. it was stock splits that paved the way for apple to join the dow industrials.

apple split its stock at seven for one last year. visa earlier this year split its stock. visa is waiting and the dow jones industrial average goes down as a result. that opened the door to bring it apple. pimm: the dow jones industrial average is keeping up with the times by adding apple. does that still make the index relevant? here's the conversation on surveillance. >> google has a service we can look at the number of appearances a word makes in its massive corpus of books. i looked at nasdaq, s&p 500, and dow jones. these are mentions of these indices in books and newspaper articles. what you see is from the 30's there is not that much mention of financial indexes until the late 1960's. is good"d peak "greed in the 1980's. people stops talking about the

dow and started talking but the nasdaq. now we see the slow growth of the s&p 500. the question to you is, do you miss the dow? >> when i look at the chart that you are prepared, it is an interesting chart. all of those indices, they have all grown sharply overtime in terms of dimensions. that is alongside the phenomenal growth in financial wealth in the global economy. in terms of falling out of favor, i cannot say what that means for which once people will decide to invest in. i do not know that households do it like that. tom: is apple a blue-chip stock? what is a blue-chip stock, how do you define it? scarlet: blue-chip stock is widely held by people and people feel that if they do not invest missed out. we put together this chart that

put together what the dow jones industrial average would have looked like if the index compiler added apple way back when. there is a percentage point difference of 59 percentage points. dow with apple and without at&t would've gained 221%. this is versus the 162%. tom: is the dow an anachronism? the s&p is worth that. >> the dow is not used by index funds or etfs. > it is somewhat of an anachronism in terms of actual use. pimm: it does not mean apple is going to be king of the dow. now that these are just visa isg, -- now that splitting, goldman sachs will have the biggest weighting. reports of agents crashing a car into the white house barrier are overblown. in prepared testimony, joseph clancy will tell a subcommittee there was no crash and that the car entered the white house

complex at a speed of one to two miles per hour before hitting a plastic barrel. clancy says this is all on surveillance video. citigroup shareholders will vote on a new pay proposal. it would defer a portion of top executives pay for 10 years and use the money to pay for fines if the bank violates the law. ae proposal was submitted by group who says citigroup's policy to cancel pay does not go far enough. citigroup advises shareholders to reject the move. japanese internet giant is expanding its e-book business. the company is paying $410 million in cash to the e-book distributor overdrive. cleveland-based overdrive as a distribution platform of two -- 2.5 million books along with relationships with thousands of libraries and publishers. those are the latest top stories. we will have more headlines for you, coming up. still to come, luxury for less.

chanel bags, they slashed prices because of a weakening euro. racket.he bloomberg b we have an all-star team of investors competing for our ncaa challenge for charity. but richard branson electrifies first, formula one racing. literally. and burning battery sounds nothing like also fuels -- like fossil fuels.

pimm: richard branson is electrifying formula one racing. bloomberg's olivia sterns went to miami to plug into the f ormula e. olivia: nothing fuels innovation like a little competition.

at least that is the idea driving formula e. richard: when you have tens of millions of dollars invested to win a sport, new breakthroughs happen. which will then be used in a normal cars. olivia: formula e is the world's first fully electric racing series. it is aimed to promote r&d of cars. the carbonation of glitz and read energy makes it a fit for richard branson. i tracked him down at the virgin racing garage in miami. richard: formula e fits in perfectly to our aspiration for renewable energy. 20 years from now, i hope people will walk on the street and if there is a diesel car pumping out lots of smoke, people will find it as strange as going into a restaurant and finding someone smoking cigarettes. olivia: formula e is a spinoff of the most popular motorsport in the world, formula one.

but there are a few differences. for starters formula e drivers , do not just change tires in pit, they change cars. the most notable difference -- the sound. richard: you hear the screaming of the tires on the road as there are coming. but yes it is different. , you do not have the roar some people like. it is just as exciting to watch. as people get used to these wonderful drivers vying for top place, the amount of people who watch will grow. olivia: branson's virgin racing is one of 10 teams competing. for now, teams all use the same electric car, but next year they will be behind the wheel of their own technology. olivia: is there a business

opportunity in here for you? are you going to take some of the technology you are developing and put it into virgin rockets? richard: we have virgin racing engineering on the side of the car. we have teams of people trying to develop and work on electric cars. we may find virgin competing with tesla in the car business as we do in the space business. we will see what happens. pimm: branson versus musk would be a battle of the billionaires. the goal of formula e racing is to inspire. olivia: the whole point of formula e is to invest in the technology and hope that it trickles down from the racetrack onto main street. a very sexy sport. it is the perfect location on the beach of miami. >> did you get behind the wheel of one of these machines? olivia: i asked to wave the flag. i was not allowed to. i have driven a tesla before.

the sound was a big difference. it was a hiss. everybody in the pit whistles so that you can hear that the car is coming. you don't have the deep roar you have on formula one. roar isile that deep missing a chain future driver , says you cannot compare formula one racing with fe racing. >> i don't think you can compare up formula e with formula one. with formula e, we educate the people. we also show that in big cities we can race. we have a show. at the same time, because it is a sport, we have some drivers. it is a nice race. it is almost an excuse to show what the technology is going to be in the future. right now, we'll have the same cars.

but next year we'll have all kinds of engines and batteries. olivia: how weird is it to watch these cars appeal out of here silently? -- peel out of here silently? >> the noise is not the problem. we have enough noise with the tires. it is like the noise of a small turbine. olivia: don't you wish you could've gone to the pit more slowly? >> it is not conventional. it is good not to lie to the people. we do not have the potential. but in three years, we will only have one car. we are going to show the potential. pimm: following in his father's footsteps as a winning racer, nicholas came in first. the next race takes place april fourth at long beach, california/ coming up, luxury, but for a lot

less. asian consumers have a weaker euro to thank for 20% off sales on chanel. ♪

♪ pimm: this is "money clip." we are fully digital. download the btv plus app. it is free. i'm pimm fox. this is vanuatu. this is the devastation from cyclone pam that slammed into the south pacific nation five days ago with winds of over 100 miles per over 90% of the hour. housing stock has been damaged or destroyed. survivors still need food, water and shelter. unicef estimates that nearly 5000 people across the island do not have access to drinking water.