sony confirms it is slash over 10,000 jobsed worldwide and consider possible spinoffs as its grand plan. >> banesto boastses a higher q1 profit even after a raft of real estate losses. >> in the united states, a top fed official makes the case for the central bank that it can

keep interest rates low until 2014 or beyond. >> italy returns to the markets for a second day in a row attempting to sell up to 5 billion euros worth of paper. welcome to "worldwide exchange." latest monthly report for the international energy agency. says crude futures regained the early 2011 highs of march underpinned by concern over current as well as potential supply disruptions. global demand largely up changed. notable in the uk and canada. opec supply held near 3 1/2 year

supplies. crude revised down slightly. totals fell in february compared to the historical average of 38.8. oil supply holding near the highs. spare capacity at the lowest level since between you 8. all of those to keep oil prices at he's extended levels. our guest coming on says ongoing supply worries will keep supporting the oil price. also coming up in today's program, google prepares to relax its first quarter earnings. we'll have a look at how it will shape the earnings season. black rock is reportedly planning to launch a new electron being trading platform.

and we'll find out the lodge willic behind the timing of the launch in 30 minutes. first up, let's bring you up to speed with global markets. >> take a look at the asian session. positive handover from europe and also the united states was one thing and the interesting thing is that the world bank skied to trim its growth expectations to about 8.3% from an earlier forecast of 8.will%. yet the markets took in vid. and the property sector seems to be turning around in the way that it has been performing. if you take a look at some of the major developers, domestic sales numbers for march as well, even though there was one small bankruptcy happening. so take a look it at the huge price action as we gear up for the big data are radio lease from china.

shanghai composite running up 1.8%. nikkei higher by 0.7%. central bank governor saying there will be powerful easing. so they better not disappoint later this month. australia to the up side. kospi playing catch up also options expiring. so it looks like the markets are setting themselves up in a positive fashion. >> dax up about a percent, you can see right now one hour into the trading day, bouncing off the session low. 2:1. so this is where we stand the early prices. ftse 100 down 16 points.

xetra dax up 19. flat for the cac 40. ibex being weighed down. spain, we fell 11 basis points in yields yesterday. 584 is where we stand and that's pretty much where we started the session. germany, yields rose. demand was weak, so it signatured we got rather toppy. yields did fall. focusing on the auction today, we'll have a reopening of the three year auction. really the key test. yields on that 3.91%. the last auction, her 2.8% a month ago, so certainly higher today. and we have off the run issues in 2015 and 2020 and 2023.

we'll get those auctions off during the course of the program and look at the reaction. but we should have high yields but still fairly okay demand. as far as euro-dollar is concerned, still in the ranges around a the 131 levels is where we is an this morning. dollar-yen, just coming off a six week high for the yen this morning. and the aussie dollar has bounced up 103.86. strong employment report today out of australia. jobless rates a low level. we had been pricing in another aussie rate cut. sterling has sledged up against the dollar this morning trying to get back to the 1.60 level. >> sony a big concern and focus here in asia trying to regain its past glory.

there's been a press conference all afternoon. and what do you think? >> well, this is one of the most recognizable brands in the world. and sony says it will change over the next three years with the ceo outlining a blueprint that was honk on numbers, but short on details and how to get to the numerical targets for fiscal year 14. at the end of that fiscal year, he says sony will be generating sales of 8.5 trillion yen and an operating margin of 5% and a return on equity of 10%. here's what he had to say. >> we 23450ed to face reality and quickly implement the solutions to sony's problems. >> but the biggest problem is its huge television operations which has lost 10 billion u.s.

dollars over the last eight years. they on that front sony will be cutting the number of models by 40% over the next three years and he said he was exploring options about what to do in the future and he did not rule out alliances with other competitors. hear's what he had to say on that. >> outside our core operations, we will restructure our business portfolio and that may include spinoffs or mergers. >> in some ways he contradicted himself during the press conference because on one side, he was saying sony would focus on their core operations, which he identified as the digital imaging business, the gaming business, and the mobile business. so that means television is considered noncore. so why is he not spinning that off entirely at this present time? however he did not deny the possibility of perhaps merging the operation and there have been rumors that he may do so

with sharp and panasonic with some government backing. and that would be a very interesting scenario for the television operations. but he gave us no details on any possibility of such a move. >> this grand alliance has also been highly speculated in the media, as well. even if they do it, they may achieve the numbers that they hope to, but ultimately you end up having hundreds of thousands of job losses among the three companies there. this typical hollowing out problem in the manufacturing sector in japan, how are they going to delve in to that delicate situation in japan? >> well, i don't think that's necessarily the case. we had a case like this and there's an entity surviving called japan display which put together three iconic companies making flat lcdtvs. and the job cuts there were fairly minimal. and why they engineered such a move with the government backing which of course is very sensitive to the issue there you raise, the so-called hollowing out of japanese industry and the potential job losses, a

government backed entity coming into form such a group would minimize such an effect. so if this is the case in season any's television operations, some of those risks will be mitigat mitigateded. but he did not give deand i wills when those discussions are ongoing. he went on to say in the press conference that the television operations is the core part of sony's dna. so if it is core, then why isn't he including it in the top three businesses that he has highlighted for the next three years. >> do you think they have a growth strategy plan? >> it's difficult to say. he roll out a lot of anybodies in terms of some of its core operations, focusing on emerging markets, doubling sales in the next three years. they're trying to add medical operations and double sales there. so this is interesting because

there has been talk that they're trying to bid for the medical operations for olympus which of course is undergoing a huge accounting fraud scandal. >> all right, we'll check in with you again. certainly a fascinating story. whether they achieve their targets and take on the likes of samsung and apple. that will be a huge part of this jigsaw puzzle. >> yeah, not just sony. shares at nokia sharply lower for a second day. its phone business to fall around 3% in the first quarter followed by larger losses in the second. nokia also admitted it found a software glitch in its new phone just three days after it went on sale forcing to effectively give it away until can be fixed. and banks very much in focus again today. the bank announced a 1 billion euro capital hike. issues up to 2.5 billion new

shares to help boost capital levels. thes move will take ratio. and tbanesto has been made to cover potential losses on real estate assets, following the spanish government's introduction of tough new capital demands for banks. the rest of the sector is again weaker this morning across the board. all those you can see by a percent or more. carolyn is in madrid looking at the state of the bank sector. >> yeah, banesto kicking off the spanish first quarter. and gave us a good flavor of what this spanish reporting season will be dominated by. it will be all about the provisions that the banks will have to take to account for potentially bad property loans.

remember two months ago, the spanish government introduced new reforms saying that the banking sector will have to take an additional 50 billion in provisions to account for the loans and that's why the plunge in net profit for the first quarter because it's setting aside 470 million euros for the property assets and it effects to set aside another 500 million to ask the for those loans. again, the housing market is a big concern here for the spanish banking sector and analysts say hasn't bottomed out yet. citigroup says that houses prices could fall by a further 25%. housing of course is one big concern. the other is the funding issue. and that was highlighted by a report saying that high funding costs and access to the market a key pressure for the spanish

banking sector for some time to company. and just remember that the majority of the spanish banks do not have access it to the the wholesale funding market. they're mainly funded by the ecb. >> all right. thanks for that. joining us now, russell jones, west bank institutional bank. good to have you this side of the world. give us your own views of spain. the problems is either they're not going to deliver the austerity measures, and if they do, they won't get the growth to offset it. >> i think spain in many ways is the linchpins of the european sovereign crisis at the moment and if we don't get over this particular hump, the implications for the rest of the euro are extremely troubling. my sense is that it's the debt

deflation option we're facing. there's just too much fiscal austerity. fiscal austerity can't answer all the questions. in many ways it's making the situation worst at the moment. they need a circuit breaker. bond purchases or perhaps a bailout of the banks. but we need something along those lines to turn sentiment around in a sustainable way. >> we did see yields fall a bit. ecb executive board member came out and said we could restart the smp. but how effective is that going to be if the markets decide yields got to go higher? >> depends how aggressive the ecb is and also what they do in terms of other monday aspects down the line. but some firewall is necessary

to stop this crisis because it feels at the moment like sentiment really is notwithstanding whatever over the last 24 hours, sentiment is where spain is concerned, the linchpin for the whole process. >> when do you think that timing might happen in terms of applying that sir ket breaker? >> the change in the attitude could happen anytime. it could happen today. i wouldn't be at all surprised if at some stage over the next few days the ecb did turn up and start to buy. but it's a question of howing a yes, sir sif it is. if it's a sursry cursory buyin bonds because members are reluctant to go down this path, if it's not an aggressive approach, the market will once again selling before too long. >> what's going to happen to the banks if the ecb doesn't step in

really? >> the real concern in my mind is two fold. decline in real estate prices and also the very high level of corporate nonfinancial debt in the economy. both of those considerations have to be addressed and if they don't, the feedback will be extremely concerning down the road. my sense is that there's no ol ter in a difference down the road to some kind of banking sector bailout either by the esfs or by some additional might be difference which one would hope to see before too long. >> there's a good piece in today's ft says europe futures -- basically says that the bundesbank is starting to prepare -- protect itself in case there a euro break up.

do you think actually the ecb should be pursuing loose monetary policy, weaken the euro, is that part of the program? >> absolutely, yes. what's required in the eurozone is much greater symmetry in terms of the policy response. you've got all this austerity in the periphery. we need a bit of fiscal stimulus and we need the ecb to take a much more holistic approach. >> what are investors to do? bonds record low yields. and you've got concerns about rising yields in the periphery. i'm not sure what you're supposed to do. >> you stay with the core, bonds and gilts. and if you can get exposure to sweden and norway, you do that, frankly. for the time being, it's too volatile, too many risks out there to do anything else. >> we'll continue to focus on spain later in the show.

joined by ubs head of european. he's warned that the adjustment in spanish property prices far from over, he says measures introduced may not be must have. he'll be with us in around 15 minutes time. it. >> our next guest says prices in oil are likely not to fall much further from here. find out why. [ male announcer ] this is the at&t network.

a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪

demand for oil threatened as economic growth accelerates. thanks for joining us. with a do you make of the iea's current projections? not a huge change. >> not much change. the story is still actually iran and supply disruptions. we've seen problems in the north sea, there's of course problems in sudan, problems throughout the middle east and risks to further potential disruptions, particularly from iran. but also throughout the wider middle east as a result of the ongoing political issues there. so i think it's still a supply

question ultimately and, yes, demand will grow towards the second half of this year, but not at the rate it has been in the the past. >> we've had this sort of idea that other asset classes have benefited from the liquidity rush that we've had from central banks around the world and that may be coming to an end. and some people have thought there's a lot of that has been in the oil market. what's your own view? >> i think some of it has. i think supply and demand still always gives a correction direc. mainly quliquidity being accele that. the reason we're at this price is opec is producing as much as it can and still keeping a little back, but not that much. >> saudi is pumping about as much as it has since the early '80s. how much really in your view have they got readily available of the right stuff for the market?

>> they're prepping storage. so maybe not all will get placed, but a very thin margin compared to where we've been in the past and that's why prices are the level they are fundamentally. >> the world bank growth forecast for china saying maybe we could be seeing a level level of somewhere around 8.2%. how much is really priced in to how energy prices are trading now? >> a lot of it people are still expecting demand for grow in year, but certainly not at the rate it has in the past. at the moment it's very much on the supply side where the issues are because we're not expecting huge amounts of demand. and in fact the iea might be optimistic in some sense on how much demand we're going to get in the second half of the year. we think it might be a little lower. but nonetheless, ultimately this

is at the moment a supply issue rather than a demand issue. nand over the past couple of years. at the moment, it's really a supply problem. >> we also heard overnight -- go ahead. >> -- so difficult for central banks and frankly drive interest rates higher precisely he wrong moment, at a time when the global economy needs those low rates. so do you really see -- what kind of possibility do you see this big positive shock in world prices coming down is this. >> of course it depends on what happens with iran, how that scenario works itself out. there are signs of dialogue opening. we have views the economic sanctio sanctions are working effectively. but about if it doesn't end in some way that the iran backs down and gets their oil back on to the market, then the risk of a shock at least for a a little while even if it's just a limited time increase.

it's how does the iran situation play out. that's key. >> and just when we thought that the gap between nymex and brent was is the a lofty level, we also heard how u.s. gasoline stocks fell overnight. if the iran story does not get resolved and we also see gasoline stockpile supplies diminishing, are we going to see brent and nymex trading at a lower level? >> i think there's still an infrastructure issue in the united states which there are pipelines which will get reversed and ease that a little bit, but not enough to offset the huge growth in production which can't get to global markets. and the reason why the disconnect is simply because we have oversupply and no ability to get that oil out to a market at a rate where it would be

commensurate with brent. >> if you're an investor, what do you do with oil and natural gas? >> well, it's tough for me to say. we think prices will stay relatively high, but we don't think they're going to surge. there's certainly a risk of a spike, but we don't think prices will fall either. they're pretty much suck in a band for a while to see how the situation plays out. once the iran situation works itself out, we should start to see prices moving down rather than up. >> that is a big if and when. thanks so much for that, simon. and russell, great to have you as our guest host. coming up on worldwide can x. change, all eyes on the skies as north korea prepares to launch its controversial rocket. but will the weather change plans. ♪

♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism.

headline, sony confirmingle slash over 10,000 jobs and consider possible alliances or spinoffs as part of its grand restructuring plan. >> spain attempts to gain control over its regional budgets with a law giving the ability to rein in local

spending. >> in the united states, a top fed official makes the case that the central bank can and should keep interest rates low unit 2014 or beyond. >> and another day and another auction test. italy returns to the markets for a second day in a row attempting to sell up to 5 billion euros worth of different issues. focus very much on the three year. we're also keeping our eyes on spain. before that, a little data out of the uk. uk global goods trade balance widened out to minus 8.7 billion pounds bigger than the expected 7.7 billion deficit. the noneu goods trade balance widening to 5 billion, again, bigger than expected at minus 3.8. not a huge reaction on the pound to that. but the pound has been --

sterling index has been gaining strength. and governing council member said spain canceled out its public finance despite recent uncertainty in an effort on assure their k34i789, they due to sign off on new laws which allow the country's budget to be more slightly controlled. spain is made up of 17 autonomous regions. the new laws will allow each of their budgets to be overseen by the central government. joining us is head of economic research at ubs. good to see you. you wrote this report back in spain. they're now less -- how much more pessimistic are you about what's going on in spain?

>> there are a number of problems. the budget problem is this one. so it low presented is very important because what's happening this spain is the the central government has presented a budget that is credible, but the local authority can overstate the budget. so this law in it passes and if it's credible will be a good step in the right direction. the thing missing for me is the banking secretary it to ing sec. we still have reform of the banking system, capitalization and et cetera, et cetera. as long as you don't have that, i think the market will not be -- >> what is the best solution? >> at some poents you need a merger of the banks because the banking system is still oversized in spain. you need to remove the toxic asset.

could be a bad bank, could be a recapitalization, but you need something like hundred billion of recapitalization of the banking sector. >> where will they get that money? >> that's the issue. if you look at 100 billion, that's 10% of the spanish gdp. so in terms of fiscal stability, it's a number that's manageable. but the problem is how do you get this money. at some point you will need external support in the form of esf, esm, i don't know exactly. but if indeed the government was to do this 100 billion in the near future, i don't think the market will be able to provide it. it's way too big. >> i think what worries me more than anything else, and this applies to a lot of the peripheral countries, it's the social and political anxiogle t we're facing. unemployment is 23%, nearly double that for the youth is it

strikes that the antipathy toward reform will only increase from here. and difficult for the governments to survive in that con test. >> we heard this argument a lot last year. if you look at what has happened in europe, in italy, you have a lot of reform and given what he's doing, she have zero raso zero rating. you have to remember the campaign saying we're going to tighten the budget, it will be helpful and a huge maturity. and the level reform has passed italy in spain. the general strike was not that big. you also have a support iing et cetera, et cetera. so very difficult forecast political anger and all will

kind of thing. the truth is all the reform support has been much higher than anyone expected. >> so they have a window here. there's sort of an assumption that yields follow austerity. or are actually bond investors going to follow growth? >> i think the yields are increasing because i think actually the government in spain is not doing enough. we were hoping that the first 100 days of government, they would do a lot, present the budget, do banking reform and et cetera. and i think the government has not been quick enough. so little by little, will kind of good will we have is eroded and the market is losing passions. so if anything, i think spain should do more and quicker. and especially again for me, the missing link is the banking

sector. >> thank you so much for that. well, ross, certainly a big sigh of relief after all tsunami warnings across the indian ocean were lifted following yesterday's magnitude 8.6 earthquake and after shocks offer the coast of i said i can't. >> frightened residents ran for higher ground after two massive earthquakes triggered a tsunami warning. that warning was later lifted. many too vividly recall the tsunami of 2004 which he on kurd in the same region and killed more than 200,000 people. >> my child was sleeping and i grabbed her and ran. i didn't have time to take any belongings.

i went back later to take these things. >> a horizontal shift in a he can tonic plate was the cause. what it helped to prufr was the effectiveness of warning systems put in place after the 2004 tsunami. official ts appear satisfied wi the level of response. tremors were felt in sri lanka, as well. another area badly hit eight years ago. >> we came here because we were told that a tsunami was headed will this way. there was a tsunami in 2000 you 4, as well. we lost everything. >> and it was a similar situation in a popular tourist destination. this time the authorities were much better prepared. >> staff was very good. they got us all moving pretty quickly. so we feel pretty safe.

>> officials are still assessing the full extent of the impact of the earthquake, but it will serve as a grim reminder to ensure those early warning systems are fully operational. >> indonesian officials have confirmed five deaths you caused by the earthquake. in the meantime, the u.s. geological survey has reported a series of earthquakes along the western coast of north america of late wednesday including 7.1 quake off the coast of mexico about an hour ago. of course these locations also sits along the pacific ripping of fire, as well. >> and moving on, asian markets were on tenterhooks following reports that pyongyang has plans to launch its controversial rockets sometime today. but then again today is only the first of a guy day window. government source says the launch has been postponed due to bad weather. north korea has said it wants to

lift off the rocket this week despite international condemnation. let's get perspective on will developing story. about six weeks ago, north korea said they will limit their nuclear activities. are we running out of diplomatic options here? >> it might seem controversial, but not from the mort korean perspective. because the launch of a satellite and the testing of a long rain about a lnge about ba two different things. this month is particularly important because this week under 15th of april, north koreans will have the centennial university of the founding

father of the democratic people's republic kim jong-il's grandfather. so it has been a long preparation for the celebrations. also dramatic ending when kim jong-il died suddenly before announcing the agreement with the united states. >> and when's also interesting is that we've seen an array of steps in what appears to be the run up of the significance moment for the regime. they've appointed a new defense chief, first secretary of the workers party and also chairman of the coalition. key figures of the regime. does it dispel any notions of internal strive that had been speculated and would ultimately lead to self destruction of the regime? >> i don't think so.

we know the dynasty ruling the country, and an up kell of kim jong-un, he is supervising the decision making process. we saw yesterday the big event in north korea, the conference of the korean workers party, but the last congress in north korea to play 33, 32 years ago. so kim jong-un is being further promoted, but not general secretary of the party. his late appear is remaining to be the general secretary while his grandfather remainses to be the president, eternal president of north korea. so we live in a virtual reality of north korea. >> and even if you perceive will this from the point of nuclear

proliferation, how important is it for this north korean rocket slash satellite launch to succeed and how much more power -- how much of more upper hand does it even give iran as it is looking to resume nuclear dialogue with the five permanent u.n. council members given that there is a murky relationship between these two countries? >> exactly north korea was once called the part axis of evil. one part is gone. but for north koreans, the launch of this satellite or the ballistic missile is very important domestically and internationally. domestically to consolidate support to celebrate the big event, but overseas, it is important that north korea looks good, it looks like an advance technologically advanced state which is capable of developing

rocket technology which is self proclaimed nuclear state. and relations between north korea and pakistan, iran, syria, maintain to be quite strong and secretive. we still don't know whether they exchanged the technology, in what way, which direction, what is going on still is about mystery to be unraveled. but this year they invited international journalists in for the launch. it didn't happen today. pretty sural take place in tit place in the next four days. >> thank you so much. we appreciate your thoughts there. obviously a big concern as a parliamentary battle in fact ended in the victory of the national frontier party.

>> yeah, that majority for the ruling party may not be enough to muscle through new legislation. still an important precursor for the president hal elections coming up in december and they will continue to see a slew of plig for large conglomerates and social welfare programs aimed at the middle class. >> it was her leading endorsement the new frontier might have hope pod. a simple majority compared to 55% of parliamentary seats before. but considering there were two scandals in the government in the run up to the poll, the ruling part i was just glad for a win. the opposition, though, was sorely disappointed. >> translator: the democrats of united party failed to turn the public's wish for punishing the current government and ruling part i into reality.

we are sorry to disappoint the people. >> but with the main opposition presence in the national assembly jumping from around 27% to 42%, the stakes will be raised in the upcoming december presidential election. also pressuring the government, higher voter turnout. t 54% voters which is below the 60% hoped for. still, it was more than the 47% we saw in the 2008 election that seems to suggest more people want to be heard. >> translator: someone that can provide us a good living is what we want. >> i'm for the opposition because we need change. people's livelihoods have deteriorated. we need to change that and divide out the resources. >> reporter: some political analysts peel politics is disrupting what should be the

true focus of the government. >> the single biggest problem the government has to tackle i think is the growth. the growth potential of the korean economy is tapering off since the outbreak of the financial crisis in 1997. >> he also says the welfare policies are inefficient and do not roly redistribute wealth in the country. while the ruling new frontier's party presidential candidate has been credited for helping the party keep its vote on parliament, it's clear she will have her work cut out for her in the months ahead. after the victory, she's boosted her chances of succeeding the president early next year. chloe, back to you. >> but a single presidency, so a lot at stake.

well, thank you so much for that. take care. still to come on the program, volatile session for the euro ahead of another crucial italian did debt auction. david bloom from hsbc will join us. úú]úñ

bank will pursue powerful monetary easing as it reinforces its commitment to combat inflation. the governor insists japan is headed for a moderate recovery suggesting it is its readiness to keep its ultra loose monetary position, the boj holds its next review meeting on the 27th and a lot of people are betting there will be big easing ahead. so letting the public know there will be major you powerful easing. what remedies counseling do you

has in mind? >> it's for real here. the bank of japan really fundamentally changed in my opinion in february. zero inflation is not an option any who are. sure the can deliver something new every month, but there are more tools available. an additional move at the end of the month is quite lakely. >> what and he happened to sony and panasonic is a reflex of how strong the yen has been and how it is too competitive to keep up with other rye vels. >> you naed a little bit of luck and cyclical tail winds. and that's what's coming.

clearly the yen's exchange rate, one part of the equation is the outlook for america, is this generally ability for the decide to they think then. that's why the sweet spot is developing. recent data was weak, but that was just a one off. dollar strengthses together with the bank of japan creating additional tail winds, that's where yen depreciation is going to be coming from. >> we've been looking at japan for a long time now and we've been down this track a few times. i remember well talking to economists at the boj 10 or 15 years ago and they didn't really believe in quantitative easing. this they saw it as a public relations exercise rather than something they thought was grounded in the heretical economics of such. so is this really a game

changer, can we really trust them on this occasion, are they really going to shift the goal posts and launch more aggressive style of policy making? >> it's quite something because obviously lots of things have happened since then, mostly in the united states of america and in europe, quantitative easing has done its work. but your point is very well. the bank of japan is at the limits. there's very limited additional channels of transmission, of additional monetary easing coming through, but you are in the sweet spot. sick cyclic cyclically, levels are low. it's the combination of the real economy ready to expand and the bank of japan showing the pro-growth attitude. it's a pr exercise to some extent, but it is important, tail winds are being created, policy is being pro-growth.

>> thumbs were mixed, about but it was a bright sign, some of these retailers plan to up dividend or issue a dividend, as well. how long can this situation continue especially in the bank of japan eases in a big way is this. >> the key issue, and that's a good point that you're making here, the domestic economy is recovering. it's recovery partly because of the reinstructiconstructiorecon boost from reconstructing northern japan, but it's not just that. it is a positive wage dynamics that is being unleashed by the democratic sweet spot. i'm talking about the younger generation of japanese now being in short supply. their wages beginning to be bid

up. that creates the money for domestic spending abouspending. >> thanks so much for that. appreciate. and, ross. >> final thought from russell. before we go, just your thoughts on the u.s. and treasury market. how will that play out? >> yields can stay low for a considerable time to come. i think that with the fed very much on hold, at least out until, well, probably the end of next year, the very least, that anchors yields. so we can stay in this historically very low rate environment for an extended period. >> anymore fed action, is growth going to be weak enough to warrant anymore fed action? >> i think we need another shock really to knock the economy out of kilter a bit. it that happens, maybe from china, maybe europe, maybe the dollar rises too much, it would take something else to go wrong to bring qe-3 back on the agenda. >> russell, good to see you. thanks very much for joining us.

we have the italian auction coming up and it's also time of day when jackie joins us from the united states. what's coming up? >> good morning. still to come on the show, spain's industrial output hasn't his positive territory for over a year, but what about the rest of europe? we'll have eu production data after the break. [ male announcer ] this is the at&t network.

a living, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪

globe this morning in the u.s. you can top fed official makes the case that the central bank can and should keep interest rates low up 2014 or beyond. >> another day, another auction test. italy attempting to sell up to 5 billion euro worth of bonds. focus on the these year issue. >> and sony confirms that it will slash over 10,000 jobs worldwide and consider possiblef its grand restructuring plan. good morning and welcome to the show. let's take a look at the u.s.

futures. see how we're setting up for trade. does look like it's going to be a higher open. dow by nearly 53. nasdaq higher by 11 1/2 and the s&p 500 higher by 5.3. this of course after a little bit of a rally yesterday up 89 points on the dow. the u.s. markets did quite well, the dow and s&p breaking a five day losing streak. the dow having its best day in fact in two week. also seeing that nasdaq close before the critical 3,000 level. ross, how does it look over in europe? >> we had modest gains yesterday after the heavy losses on tuesday. and we are slightly weighted to the up side in terms of individual numbers at the moment. we have the ocd coming out with a few interesting thoughts. at the say a sales tax should be extended to pnks services and the fiscal gaps out of their member status are larger in japan, u.s., uk, ireland and

luxembu luxemburg. industrial output down 1.8% on the year. january output revised to flat on the month. industrial output forecast minus 0.2%. in fact a little better than we might have thought. stefan, do you take any comfort from that data? >> not really, because if i read correctly, there is a big increase in energy output. that's weather related. so that mean that if you strip out the energy sector -- >> biggest rise on record. >> exactly. so you're probably left with the manufacturing sector being still quite weak. we have negative number for q1. i think it's -- >> how long is that negative growth stay? >> we have a negative number in q1 and small negative in twchlt 2, as well. >> and plenty administer to come from stefan. what's greece up to? they'll have a snap election. i actually have what they're

saying. january unemployment at 21.8% from 21% in december. so still getting worse in greece, as well. let's remind you what's going on the u.s. federal reserve believes the monetary policy is the right one for thousand, but left the door open for more qe. janet yellen described the current, as appropriate given the risks and said the fed is quite willing to do what is necessary. >> prepared to adjust my policy views in response to incoming information. in particular, further he'di i g easing actions could be warmed. while a significant acceleration in the pace of recovery could call for an earlier beginning to the process of policy firming than the fmoc currently anticipates. >> and we also have with us david bloom, global head of foreign exchange strategy.

nice to see you. what did you make of -- serve the world if the dollar did strengthen actually. all do us a bit of a favor, wouldn't? >> i'm not quite sure would do the u.s. a favor. >> wouldn't it help their bond market? >> i don't think it will make much difference if it's a marginal weakening. that wouldn't make any difference to the bond market. but it's not what should or shouldn't happen, as usual, it's what will happen. and what will happen is the dollar will weaken. >> weaken against what? >> yen, euro, everything. in europe, yes, we have there are problems in the uk, but we're addressing the problems and perhaps not in the way you would like them to to be addressed. but in the u.s., tell me what they're doing about deficit reduction. nothing. dollar will weaken in the second half of the year and the reason

i think it will weaken is the u.s. presidential election will show the plans of both parties and the market will be -- >> stefane is wincing. you did disagree? >> our view is exactly the opposite. >> perfect. that's what makes it interesting. >> yeah, one person being wrong and me being right. >> we think the dollar will go to 120 against the euro. >> how long have you been looking for this view? >> for a long time. >> thank you. >> but the euro -- >> wait a minute. if i can -- >> euro has gone down. >> absolutely. but not the way people out it would. >> and what i agree with you is very much a negative context. if you don't like the euro, you don't like the dollar. and the question which one do you dislike the most. >> haven't we had the maximum poison there europe towards the

end of last year and we have the french election which could be poisonous if the fiscal pact looks threatened. but second half of the year, politics in the u.s. is going to be the big issue. >> i think on the french election, i think the fiscal part is not an issue. >> is it all plus it ter? >> threatening to do so. >> if you really listen to what the fiscal compound, he has changed his view thousand. it will remain, but -- >> he said it's not complete. so how does he complete the fiscal -- >> because you will have -- it's exactly the same situation as '87 when he says unacceptable. so i think there will be a lot of posturing. >> the fear is all the market

needs -- >> my father is you have the election on 6th of may, and then another election. in june. and so you have one month where president is campaigning for the next election. >> gentlemen, if i can just quickly jump in. it almost seems like the ugly sisters game because you have the ecb running a much bigger balance sheet than the fed. and we also had comments from the boj governor this morning said there will be major powerful easing. so how do you know which currency is really going to weaken? >> japan as a percentage of gdp has the most massive qe in terms of a balance sheet than anybody else. and the yen a strong currency. so the idea of qe in a currency, they don't really fit in terribly well. the question is what are you

doing to solve your indebtedness and your debt problem. and we found that every election that we've seen, and when we have an election, it's generally pretty bad for the the currency. and i think there will be would be wobbles of the french collection. this will be a month of uncertainty. but once you see the packages and what is promised by both presidential campaigners in the united states, i think we'll look at it and be abhorrent to it and i think the dollar will come under pressure. >> david, that's my question exactly about the presidential election here in the states. if the republicans were to take over and we were it see a little bit of a changing of the guard, you don't think there's anything on the table that will add certainty to the market from their policy standpoint? >> it's exactly the same as we're talking about in france. once you get elected and you put in policies, it's very possible. but before the election, the market takes the root that everything is going to be evil, they did it in the uk election. everything was selling sterling.

it took the coalition quite a while to establish themselves. so i think in the run up to the election, things will be pretty poor. then it depends who gets voted and what they actually do. >> okay. well, we'll leave it there for now and we'll talk more in just a bit. great to have you as our guests for this hour. and we'll talk more when we come back right after this short break. still to come, sony says it is pressing replay and that means massive job cuts and possible alliances. details from tokyo. [ male announcer ] this is corporate caterers, miami, florida. in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a whole new way. using real-time photo sharing abilities, they can create and maintain high standards, from kitchen to table. this technology allows us to collaborate with our drivers to make a better experience for our customers. [ male announcer ] it's a network of possibilities --

helping you do what you do... even better. ♪

welcome back to the show. time to take a look at the u.s. futures. slightly higher open. we saw a bit of a rally yesterday, breaking five day losing streaks. the dow having its best day in two words.

>> yesterday we clawed back some of the losses. we're flat on the xetra dax. down half a percent for the cac 40. banks are pressuring the ibex again today, so that market down 2%. big banks off once again in italy. we keep our focus on the bond markets. ten year yields still low. fields in spain 587, near away from the 6%. and in germany, a little higher after we saw a record low auction yield yesterday. but as a result, demand very weak. today the focus on the italian august. focus on the three year. yields on the march 2000 btp, substantially higher in the cash market.

whether demand still be strong as a result. c chloe. >> and today a positive session with the exception of the kospi. playing catch up after coming back from parliamentary elections. pretty strong bounce over this greater china. shanghai composite up 1.8. this despite the world bank, plus gearing up for the big data released tomorrow. sentiment seems to be that the tied has turned around for the important property sector, as well. nikkei closing up 0.7%. comments quite critical and a lot of eyes focused on what exactly he intends to do when the boj con vevenes its meeting

the 27th. sony a bid to regain its past glory as one of the world's most recognized consumer electronic companies. let's find out more from kuri. you attended the press conference. seems like they're handing out a lot of numeric targets. do you think they have a profitability plan in place? >> they're trying to break into the black. they outlined those plans quite earlier on. what we want to know is what they'll do to their television operations. and at the end of this press conference, everyone was scratching their heads saying, yes, they gave us he's these targets, cut back on mum of models and exploring options of a merger or tie up with other competitive firms.number of

models and exploring options of a merger or tie up with other competitive firms. could be teaming up with government support to try to keep their tv operations alive. so he doesn't deny that possibility, but he doesn't give us a whole lot of detail on whether that is a viable option. what he does give sus a call th company really does need to change. >> we do not have the luxury to take our time, we need to face reality and quickly implement the solutions to sony's problems. that's the only way left for sony to change. >> new targets for 2014, 8.5 trillion yen in group sales. roe of 10%. hoping to generate double the sales in the emerging market, but they give us numbers, but not really a strategy and a product plan to bring it there over the next three years. but here is what they had to say

about the problematic television operations. >> translator: season anything "'s television operation runs deep within our dna. and is one of our central products. we will continue our television business especially now that profitability is within our sights. >> mobile businesses and dinlg tail imaging, television not included in their main operations. so sounds always con are a difficulter to to me. >> yeah, it looks like they may need another strategy session judging from what you're telling us. thank you so much for that. certainly a long day for you. appreciate all the effort there from toek i don' from tokyo. and i'll be back with much more with all the news moving markets here in asia. >> good stuff. thanks for that, chloe.

we have the latest italian bond auction out this morning. they've sold -- a number of different issues here. 2.84 billion of the march 2015 bond. yield probably what we were expecting was 2.76% at the mid march sale. we need to know the bid to cover. so the yield has risen as expected. i'm waiting, we need to have more detail before i can tell you what demand was like which is going to be the key thing really. people would have also had redempti redemptions. what do you make the appetite like at the moment? >> one of the worries when talking about spain half an hour

ago is i understand why the market is organized in spain, but the worry is now you have recorrelation between spain and italy. so it's pot only spanish problem. the market is also telling that you italy should follow. so that is declining. >> italy, the net issuance is more compared to gross. >> hasn't spain done a lot of its issuance front loaded it? >> no, they've done almost half of the issuance for the -- >> for the year. >> no the year. which is very good news. but you still have half -- >> bid to cover 1.435.

that's okay. >> yield higher than before. >> yeah, but the yield is trading in line a little bit lower than the cash market. so we could have expected that. >> what i really like is the curve steepened a lot in italy, so the short part of the curve was low, issue at the low rate. thousand it looks like the short part of the curve is setting up, so it means that the financial cost with debt service will go up in italy. >> when it's less than one, you go get your shot gun and you hide it under your bed. that's happened in the uk, happened in germany. these things have happened. and the market is scared that for some technical reason or something, we could drop break one. so that's the first danger signal. >> just remind you, the march 2015 btp yield 3.89%. bid to cover 1.43.

yield to cover a little lower. last time they had this issue, she sold 2.88. we haven't got the other results because the auction pages aren't updating. and the spain ibex has hit a three year low. bank stocks selling off again. we'll can back with more on that. plus we'll talk more about the norwegi norwegian krone and more on spain.

today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities.

siemens. answers. ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism.

a billion euros in the first quarter to cover potential losses on real estate assets, this after fitch warned of a number of challenges facing the spanish banking sector. carolyn is in madrid. good morning. >> so, yeah, fitch highlighted the funding concerns, but also of course another big problem here for spanish banks is the housing market. you mentioned it, banesto reported an 88% drop in net profits because it took provisions to the tune of 475 million euros to cover -- or to account for potential loan defaults for the property

sector. now remember, that two months ago, the spanish government has implemented a new reform as saying that the spanish banking sector must increase its provisioning or its provisions for the housing market by an additional 50 billion euros. whether this is enough, that's a completely different question. it all depends on what the the housing market will do. a lot of analysts will say the housing market hasn't bottomed yet. in pact goldman sachs says home prices could fall by an additional 25% before a floor is found. and if that's the case, that means these provisions certainly not big must have to cover those lines. . case, the spanish banking sector would likely have to be recapitalized. but again, the bigger question is who would they be recapitalized by. because the spanish government has repeatedly said, no, we're not going to inject more capital into the spanish banking system. so that really only leaves the private sector or official funds

by the eu. butoo that no one wants to break. spanish officials have said they do not want to take funds are from the eu for its spanish banking sector. back over to you, ross. >> joining us -- still with us is stefan. and david bloom, as well. david, just measuring the results of the italian auction yield what's the key driver for whether -- this correlation between italy and spain at the moment, is there any chance of breaking it up? mario monti complained about it on a plane trip yesterday, that we're being dragged down. anyway of divorcing the two? >> i think there should be a divorce because it's quite ugly

for spain and that's what we were expecting. the mayor i have for itanarrati quite -- will i think the market should differentiate between the two countries. also if you look in terms the net debt issue for italy is very small compared to spain. so i think the market should differentiate. >> the amount they raise toward the upper end of their range. ten year government bond yield spreads tied back in this morning at 379 basis points. we've had the norwegian governor, as well, talking this morning about the eurozone debt crisis. and nokia was one of those raids up they cut rates. investors have piled in to along with the swiss franc as a way of avoiding. is it still or not? >> absolutely. this is a structurally strong

currency. this is not a currency for flim-flam. you hold it, it's a real sovereign. if there's anything going on on with europe, you sleep like a baby at night. it's beautiful. they're opt cutting rates because the currency is stronger. the currency gets stronger, puts down pressure on inflation and they cut rates. but the problem is the latest stability report is that the automatic mechanism is not really there because there's too much easing in norway. so we're getting to the point where it's strengthening and the central bank cannot cut rates. we've raised the question could they do a euro swiss eventually. >> that was my next question. >> yeah, i'm sure it was. >> no, because yesterday -- this week the swiss went below the 120 floor. >> and we wrote a piece on this caution the slippery swiss

floor. and eventually the swiss franc will strengthen. they won the battle, but lost the war on the trend on the move. because norway over time is only going to get stronger. this is a country with a current account surplus. you couldn't make up a better currency than norway. and it's one of our top picks and you don't care what happens in the european crisis. the u.s. election. what happens with the uglies. this is a beauty among the uglies. the rose among the thorns. >> we agree on that one. >> that's a first today. >> it was a nice one. but i think you have this small country which have none of the problem that facing the -- >> ocd says the problem with italy is that they're issuing debt in a currency that isn't

theirs. >> that's part of of the problem, but if it was their own currency, you would be talking about monetization of the debt, expectation much muhigher -- >> in italy's case, a lot better than the uk or u.s. or japan. >> can get yourself into a higher inflation environment where people lose complete confidence in you. you have to address the real structural change. >> okay. we'll take a break. just to remind you, italy this morning has sold the amount of money that they were looking to do. so that's sort of gone, yields higher bmpt tps, the spread -- just the yields edging up again. we'll keep more reaction on that when we come back. stefane, good to see you today. jackie. coming up later in the show, the u.s. markets resume their winning ways as investors breathe a sigh of relief after a sharp five day losing streak.

is this the start of another led higher for stocks some insight coming up next. ddddddddd

welcome to "worldwide exchange." headlines from around the globe, here in the u.s., a top fed official makes the case the central bank can and should keep interest rates low until 2014 or beyond. >> italian bond yields rise to the highest level since mid-january. >> and sony confirms it will slash over 10,000 jobs worldwide and consider possible alliances or spinoffs as part of its grand restructure i restructuring plan. good morning. nice to have you with us on "worldwide exchange." it does look like we'll open slightly higher, although we have pulled back a little bit. dow would be higher by 25, nasdaq higher by nearly 6, and the s&p 500 higher by about three and change after a good day by the markets yesterday. dow and s&p breaking five day

losing streaks. the dow having it best day in two weeks and nasdaq crossing above 3,000. >> we're wading through the results of the italian auction. looking to sell 5 billion. they've sold in total 4.885. so that's okay in terms of demand. they sold the maximum of the two billion of the run bonds. so italian btps lower on the ten year before the auction result, they've just gone up. worth pointing out in the auction, we hit yields of around about 3.89.

it was 2.75 previously. so against expectations probably what we thought was going to happen, although it's going in the wrong way, jackie. >> here in the states, the dow and s&p 500 get back on the right track or seem to snapping a five game losing streak yesterday hangs to alcoa's results and easing in european bond yields and the beige book which says regional economies are expanding at a moderate case. joining us to talk more about the markets is senior vp at ubs. and david bloom is still with us. frank, what we're seeing in these markets, short term correction or start of a longer term trend?

>> the market has a lot to digest certainly going into the sum cher is tippic areally a very difficult time. but i think right now we're having a little pause. some of the economic data of late, for example, the jobs data on friday, was a little shocking because everybody was off. but long term trend is looking higher. >> europe becoming much more focused. we started the year saying it was about u.s. fundamentals. we'll kick off earnings season and get a bit of a sense of those fundamentals. how do you balance the two, what we're seeing in europe and some of the troubles there versus the states? >> well, i think if you look at the way our firm is looking at what's going on in the world right now, europe has a number of structural issues and obviously will tthe ecb has put little bit of a safe drop behind that. i don't think you can ignore what's going on in places like spain and italy. but i think a number of people are expecting this.

the difference here is that spain and italy are very big economies. so we have to be wary of that. having said that, the u.s. having gone through its difficult time seems to be recovery. despite the jobs numbers, we've had good additions to jobs. so i think the two places we're interested in looking at is the united states, which seems on be in recovery, and then even some of the emerging markets where they have had some of the same structural problems. >> and here in the states, earn positions season kicking off to a good start with alcoa. what are you expecting? some saying it's expected after long term double digit growth. >> expectations aren't so high. so when you had a number like yesterday and you see the stock respond to 6%, i think our bar

was pretty low. some of the sensitive stocks might have a difficult run, but we're looking at areas of growth like technology, apple is in its own class, but mike kroel soft or other big tech names, those are names we like to own because you're seeing companies right now really not spending but still hunkering down and doing the best they can to control costs. >> we seem to be in a situation where the economic data isn't strong must have to sort of warrant yields backing up -- or a change this policy, but equally not weak enough to warrant anymore sort of stimulus measures. i wonder what asset prices will do in that environment. >> equities are going up.

>> i think about the opportunities that our clients are looking at in fixed income. and you know the concept of riskless return has left us. what we're look at is opportunities to see spread and credit of some credit issues and taking opportunities like this we can find entry points to get into fixed income. >> what will drive earningses in the u.s. that makes you so bullet on the u.s. equity market? you're calling this a recovery. you must be one of the few who think this is a recovery. usually after the mess that we've been through, you get 400,000, 500,000 payrolls with zero rate, fed spending 3 trillion. it if this is the recovery, what's going to be like when it turns down again? >> i think this recovery is a

muted recovery. and i wouldn't call myself a raging bull by any means. what we look at for our clients is the opportunity set. and right now it would be very difficult to lock into a treasury, for example, at 2% and when we look at, for example, the dividend yield on the s&p or some maims that we think have the ability to increase dividends, i'm not talking about chasing yield right now, in a very mundane economic environment that you're describing, i'm very happy to clip a coupon. once again, i'm not a raging bull, i just look at the opportunities right now globally and for our clients, we need to understand risk. and to that end, i like owning dividends. and whether that is corporate bonds or whether that is blue clip equity, those are an interesting place to be especially in the united states. >> all right. we'll have to leave it there, but of course we'll get more from both of our guests. coming up on the show, news corp is reportedly facing more phone hacking lawsuits in the u.s.

the uq lawyer responsible for many of the suits wrought against the organization is reportedly flying to the u.s. this week as he prepares more legal battles. the full story on cnbc.com. [ male announcer ] this... is the at&t network. a living, breathing intelligence teaching data how to do more for business. [ beeping ] in here, data knows what to do. because the network finds it and tailors it across all the right points,

automating all the right actions, to bring all the right results. [ whirring and beeping ] it's the at&t network -- doing more with data to help business do more for customers. ♪

welcome back. janet yellen says the fed's highly accommodative policy is appropriate right how given continued risks in the economic recovery. speaking wednesday night in new york, yellen says that the fed has a number of options if it were to embark on another round of asset purchase, although she didn't advocate doing so. the fed could keep rates low past 2014, but that could change depending on how the economy performs. >> i'm prepared to adjust my policy views in response to incoming information in particular, further easing actions could be warranted about if the recovery proceeds at a lower than expected pace. while a significant acceleration in the pace of recovery could call for an earlier beginning to the process of policy firming than the fmoc currently anticipates. >> aside from yellen, another top fed dove is speaking came,

bill dudley talks about the economy first at 7:15 a.m. eastern and then again at 11:20. a fair of fed hawks step up to the podium, charles plosser and minneapolis fed president at 1:00 p.m. watch for those comments, as well. and frank when we look at quantitative easing, i feel like wall street really does want to see it on the table. but they're not really making any moves that they're going to grab the apple unless it's absolutely necessary. so what's going to be the catalyst there, whether they do or don't? >> i think you'd have to see a further deterioration of economic data. i think if you had a couple of months going forward with where the employment numbers look pretty bad, i think you would see a call to action. but there's a number of variables working in the economy's favor and one of them is the the consumer. look at consumer confidence numbers, they're looking pretty good. sales of autos isn't so bad. of course what you do have going and it's on everybody's minds is

what's going on with the price of fuel. so i think the fed will have to walk that line like they have in the past. i think the markets certainly love when you hear the qe-3 and there's certainly an argument out there that's where a lot of this rally has come from. so i think it will take the summer months to play that out. and i'm confident that the good news is that will in november, we'll have a president. whether it's a new president or the existing, there will be certainty in the marketplace and hopefully we'll get true the deadlock that we're having right now in washington. >> ross. >> yeah, i just want to say something. when the dove is dovish, we come in in the morning, we he had radio the comments and we give it the french hum like that. so it's when the dove is hawkish or a hawk is dovish that it matters. yellen being dovish doesn't matter. she's dovish. it's known. next. >> i just call that the shrug. >> it's all melty and --

>> okay. the sweaty breathe. not the sweaty brie. i'm not into smelly cheese. george soros wrote in the ft saying the ltro program hit the deterioration in europe and predicts a long period of stagnation or worse. the rules governing need to be reworked completely. what he it actually said here, as well, was that the bundesbank can't soft eurozone crisis. it wants to protect germany, but you've actually got to have a much weaker euro. you've got to have promise policies, but allow for much greater inflation in germany. what do you think of mr. sore

rows on chlt a soros' analysis? >> you have to have respect for the guy. he's the master. but his position has been negative. yes, they need a weaker currency, but the dollar also needs a weak currency. but only one gets their way. it's not that i'm negative on the dollar, it's that the u.s. will get its way. wants a weak currency and it will get it. you're roll, there's nothing they can do to get it. what is this bundesbank? it's the ecb, buddy. it's all the ecb how. and, you know, that's what matters. >> yeah, i think his point was bundesbank was starting to act as though it was protecting germany from a possible breakup. those actions might make the situation worse. >> all the strong influence of the bundesbank walked out last year in a if the of peak. some of help leaving the

bundesbank. i'll tell you something, look what happened to switzerland. strong economy, good public finances, 50% overvalued currency and it squeezes the life out of your industry. that's what would happen to germany. they cannot leave. they need the euro. >> we'll have to leave it there, but of course more from frank and david coming up on the show. lots of energy this morning. up next, investors have unemployment and inflation on their minds today. awaiting weekly jobless claims and the march ppi report and google reporting results after the close. will there be any surprises from the search giant? we'll look at the trading day ahead.

roche says its bid for i will lum that is a full and fair offer sand should be more than enough to start negotiations. >> "wall street journal" says black rock would be run by the company's solutions unit and would offer clients including insurers and sovereign wealth funds the opportunity to trade corporate bonds, mortgage securities and other assets. and a pair of companies set to make their public debut today. forum tech priced its ipo at $20 a share at the high end of the expected range. the company makes products for the oil and gas industry. it will trade on the myse under fet. and oak tree capital priced its

ipo at $43 a share. best known for its did it is stressed debt investments also cut the size of its offering. oak tree will trade undell the symbol oak. sflnd a weekly jobless claims are out at 8:30 a.m., forecast to rise by 1,000 to a total of 358,000. also at 8:30, we get the march ppi, producer rises are expected to rise about 0.3%. and the february trade deficit is also released at 8:30 a.m. so a lot of data this morning. this while google reports after the closing bell. expecting gains in mobile business, but weakness in search revenue. of course still with us, frank and david. frank, as we look ahead to the day on wall street, we were saying a lot of data out this morning. >> i think the google number will be very interesting because google encompasses so much of our economy. so people are looking at that as an ad firm and an economically

sensitive issue. and also a technology bellwether. so obviously weed had the alcoa numbers that got us off to a good start, but i think a lot of people are looking at the google. >> but google is interesting, too. it typically is a little bit volatile after it reports. do you think if we see that today, that's a larger sort of point that speaks to tech generally or more just something that we see from google and then it levels off? >> it's so much more than a technology company. they trade on their own merits or demerit. so i don't think it woulding something widespread to affect the markets. >> david, let's talk about correlations between the s&p and euro-dollar seem to have broken down. has it or not? >> still trading highly correlated. we've seen contagion where you

you had a previous guest that argued spanish and italian bond yields shouldn't be correlated. they're all correlated. it's the dollar that seems to be changing in its reaction. everything else is still risk on risk off. but the nature of the dollar and how it's reacting seems to be changing. we'll have to watch that because actually currencies are doing nothing. we had this massive blowout on tuesday, bond yields went up, and you wouldn't have thought anything was going on. the thing is not moving. >> all right. we'll have to leave it there. thanks to david and frank. great conversation today. and that wraps it up for today's show. i'm jackie deangelis here in the united states. >> and i'm ross westgate in europe. "squawk box" is coming up next. whatever happen, we hope you have have a profitable day. ♪

♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism.

triple threat of data releases today. jobs, inflation and trade. plus, fed speak. janet yellen says ultra easy monetary policy is appropriate right now. others disagree. it's thursday, april 12th, 2012. and "squawk box" begins right now. >> good morning. welcome to "squawk box" here on cnbc. the economy is front annt