welcome to the welcome to the program. the headlines today from around the globe. earnings lead the agenda. apple crushes the forecast as the company continues to sell millions of iphones in every corner of the globe. numbers out of the big banks stand out in europe. spain's second biggest bank bba shows its balance sheet is in better shape than many had expected. a cnbc interview after the giant gets slammed on toned down

revenue giants. showing whether to move downside or upside and he urges the government to do their own bit to boost growth. yep, plenty on earnings. you're watching "worldwide exchange." i'm ross westgate along with christine tan. jackie deangelis joins us later. shares rallying more than 8% in germany later this morning. we've had the likes of credit suisse, siemens, and bbva. we've got patricia and carolyn. first let's kick off with you. they're pretty flat at the moment. >> they're pretty flat, actually dipping into ted nieve territory

down to around 0.1%. as you pointed out, ross, credit suisse posting a surprise profit in the first quarter. we were expecting a loss of around 400 million swiss francs. it was a profit but still a string of misses after the last couple of quarters. what you've got to be looking at is the underlying result of 1.4 billion swiss francs. that was definitely better than expected. it was partly driven by cost-cutting which was ahead of schedule but also bank-setting revenues, specifically the income revenues. the improved market sentiment we saw in the first quarter. ross, the big question is whether credit suisse was able to carry some of that momentum over in the second quarter. i put that question to brady dugan.

>> we have a lot of faith in the business model. we're going to be able to meet our cost targets and that will lead to a business that will hopefully have very good returns over time. >> there were some letdowns. the ceo said the margins are at a cyclical low. overall, pretty flat. credit suisse unchanged. patricia, over to you. >> thanks very much indeed. whenever did you see a stock trading up almost 2%. whenever did you actually see that stock then being upgraded by a broker to a buy, also increasing the price tag to 82 euros? well, you see it today with siemens because what they actually did manage to do is

manage expectations when it comes to that profit warning saying profits for the full year will be anywhere between 5.2 and 5.4. the net up down about 66%. still above expectations. revenues up about 9%. interesting to see some of the competitors siemens looking a little bit more buoyant, china, less boy yamt. i asked the ceo of siemens about hisographic assessment. >> growth dynamics off the emerging markets appear to be intact. we know all about sovereign europe. but germany is doing well. so overall siemens is also benefiting. >> we also heard in frt ceo that

says it will be up. but let's have a look at bba and see how they're performing. >> it's better than expected, patricia, if we take a look at the headlines today. they're propping the first quarter down 30%, 1.01 billion euros. this was better than expected. the market haddet tipped down. in terms of its solvency target, it's ahead of the june setdown to lift capital climates bee beyond 9%. it's sitting on a capital ratio of 10.7%. up 13% on last year. this tells more about it. it has a huge exposure in latin america. and even in its press release, it's talking about excellent pricing in all regions. you've got to think it's because interest rates are coming down which means the pricing for many

of these banks. in fact, contributions from latin america for bbva were more than 5%. just how bad the numbers look here in spain because this is the core of the eurozone crisis. well, 229 million euros was the number in terms of profitability, down 52% year on year. the npa says the number-forming assets were 4.9%. the coverage ratio, 43%. it's not completely rosy in bbva's books but certainly better than average which shows nonperforming loans around 8% in the spanish banking sector. over to you. >> thanks for that, karen. great to see you. and it was also a big day for earnings over here in asia as well, including a disappointing outlook from baidu and a swing. our reporter's standing by. we have tracey chang.

trac tracey. >> thank you. let's start with google's main rival in china. printing outits overnight numbers. they were in line with market expectations but a squanld quarter projection was at the low end of street's forecast. it showed a 25% to 28% increase in net revenue for the second quarter. they're seeing this by a significant acceleration since baidu has never had quarterly growth beyond 35%. it was up nearly 23% for the year thanks to better financing margins. the lender is known as their arm for big infrastructure markets. they were one of the bigger projects since the other projects usually bring in lower rate income for the banks but

they were still the most profitable lenders in china last year. to quickly sum up some other earnings we're expected to see, we saw a wider loss and a steep income maker from the steel company. we're still waiting to hear from some companies. we'll have more analyst on ch a china's analysis later. over to rhie. >> its first profit in three quarters. beating street forecasts. the earning surprise came on the back of a revival in its mobile service. lg electronics' profits came in at around $215 million. overall sales did fall about 7%

on year. but operating profit tripled. in order to maintain its competitive edge, lg plans to sell more premium models that have l.e.d. the 55-inch l.e.d. flat television will be appearing next month. back over to you, ross. >> thanks very much indeed for that. so what do we make for the earning news and how does it affect everything else? and with us, welcome to you, lord lamont. what do the banks earnings mean for investors? >> good morning, ross. looking at the credit suisse earnings, they're looking at deleveraging. they know they've got job cuts. they've always announced. we're looking at the overall

numb numbers. they are healthier. they are pretty good. i think it reflects better than the broken sentiment. the investors are more bullish than some of the bigger banks are. >> what else is ahead. >> the earnings of bbva or a portion of the earnings coming from the spanish market declining quite heavily. something to look forward to tomorrow. it highlights the fact that some of the biggest spanish banks are in a position to perhaps benefit from the markets outside of spain, but my liting how bad their positions still is in their domestic market. >> hey, will, what do you make of the apple effect on the supplies here in asia? techs are guesting a lift. >> we've seen it in london as well. arm holdings for example. last night we had some guys for the u.s. market close and they

did say it was incredibly hectic, and we did see that big kind of jump. a lot of investors are looking into apple over the last few days after the kind of selloff we've seen. so i think obvious let's going to be incredibly good for the tech market. we expect that to reflect in the u.s. open. >> now, a lot of the tech sales are at a time when things are slow. our people start to look at the numbers and think, hey, maybe we're not going to be as bullish as the markets would be? >> yeah, there's a little bit of a contrast. some firms, for example, suggesting that i think it was siemens seeing a bit of a slowdown and perhaps looking to see how this comes out in q2 and q3, looking for a pickup. some of the other markets, they seem to be having a pretty good time of it in china. we're getting a mixed picture and it's part of wa we're gouge to. >> thanks for that. lord lamont, let's bring you in here.

actually corporate earnings, particularly in the u.s. is going better than we might have thought which is going against the economics, which is still pretty weak. is that a trendy thing that can keep going snit's been going for some while. >> it can keep going. it's very encouraging but in a different climate, companies can cope, they can strengthen their balance sheets, they can get rid of labor, improve productivity, but it can't go on forever. but it's encouraging that people go on with encouragement and demand. >> we've heard from draghi. he's once again -- he says the ltro's bought time. he's once again firmly put the governments must come up with structural reforms in europe to get growth going. do you see with the political discord we've got at the moment in europe that that is actually

going to happen because the fiscal compact itself seems to be urt thread. >> no. i think whoever wins the french election, that is going to bring issues between france and germany. but even if sarkozy won, he has pledged himself to look again at the ecb. you have a political crisis in holland with the coalition falling apart there. you have elections coming up in greece all the time. politicians in the marketplace are getting squeamish about what has been agree and the austerity that's been demanded. and i concede several opportunities with the am cart getting upset. >> we'll come back to explore what those possibilities are. we've got to moved on an take a short break. will the latest gdp pictures continue to support japan? we'll have the first reading of

qe1. can we avoid a recession? rue put murdock is taking the stand in london today. we'll be outside the royal courts of justice. and further north in london, donald truch is giving testimony. he's particularly complaining about plans for a super offshore wind station about a mile outside his new luxury development he's upset about. we'll bring you more on that as well as 11 cet. christine. >> the toned down revenue guide amounts created quite a share. they took a sharp dive as investors focused on its mooted forecast, which pretty much went beyond expectations. they expect lower revenue growth ahead.

well, in a first-on cnbc interview, we're joining by a party executive director and cf o live. what are you seeing? is demand pull back or because your clients are taking a longer time to make decisions because of all the uncertainty we're seeing in the global markets? >> i think we've been able to hold onto the market and despair on the headwinds. so far as one guideant is concerns, it has two things. a, the indian geography. it's weeker in quarter one than

quarter four. we're looking for a much more weaker for quarter one because of the overall sentiment being not very investment-friendly. the interest rate had been higher so we're seeing holdback from the government as well as in the telecom sector and other sentiments too. second, there are other sectors like the capital market and investment banking that seems to stay weak. and, third, there has been some deals that were put on the table where we had expected this em to be closed last quarter, but that is taking a little longer than expected and we expect some of that in the third quarter. >> and just to follow on that -- just to follow up on the last point made, what sort of deal in the pipeline are you looking for in quarter two then? >> it's far higher than what we

had in september and november before and the quality of the deal looks good, largely driven by the shares with the obligation services and pretty much across the geography and most of it like the retail, oil and gas, retail banking, manufacturing and health care, life sciences. so from that point of view, they are looking solid and good. and it's a matter of time that we are expected a decision to be taking place here. therefore, as we go into the next quarter, we should be looking much better. >> a lot of debates around when wipro is going to turn around. can you give us some sort of look when that is going to happen? >> i think when you saw the december and march quarter, we have growth rates. as you see the quarter one

guidancguide an guidea guideants, there are some. but, of course, the sentiment looks positive than what we have guided. a, it has to bear out. i don't think we're saying we'll necessarily be delivering anything than a growth rate as far as the whole fiscal quarter is concerned. but it may be it may not look so strong. >> as far as quarter one is concerned, a lot of competition. growth is slowing down. what impact is it going to have on your pricing? >> i think you're seeing year after year and quarter after quarter we've been seeing a lot of pricing improvement because as we see the advancements becoming more and more outcome based and fix priced and total end process we do with customers and mixing with high end businesses, we're able to drive

and see a modern expansion. so we saw in quarter four about 1.4% increase in the oil price. 4% in the onsite price. as we go forward it will be whether it will be stable and we have it that we'll be able to drive much more. >> productivity is very important at a time like this, sureshs is senapaty. live from wipro. ross? >> here in year we've moved away from three-month lows. 9 to 1. ftse 100 up half a percent. ibex up 2.5%. that is all helping bond yields in the peripheral. so just calming down a little bit in spain. remember, we were touching 6% on

friday. gilt looking ahead. and in nerve netherlands, looki high. moving away to two-week highs. breached the 132 level. yen, it's a little weaker. aussie dollars we covered from the trough we hit on monday. and euro, it is up to a 2 1/2 year high. how would gdp figure into what sterling does? as we await for the numbers coming out in about 10 or 15 minutes' time. plus we'll get more on the euro crisis with lord lamont.

the fed wraps up its meeting this afternoon. they will release their updated economic forecast at 2:00 and ben bernanke holds a conference at 2:15. why they pledge to keep interest rates low at least till late 2014 and leave the door open for further easing if the economy takes a turn for the worse. you can follow all the coverage on cnbc. starts at 12:15 eastern. lord lamont is with us. what is your end view of what the fed does in an election

year, growth ticking along over 2% but still very high unemployment? >> well, i think up until election, i thinks are not going to change. obviously that's a very short time horizon. i myself am skeptical about the fed's claim that they'll keep the interest rates on hold until 2014. i would not be surprised if rates didn't rise earlier in america but that shows i'm a bit of an optimist. i think the economy is actually quite strong. >> how much will that depend on whether job creation becoming more meaningful? >> i think it's going to pick up in america. i think there are signs that the housing market really has bottomed. it's not as sharp a recovery as we've seen in previous recessions for the united states, but it's still compared with everywhere else in the world it's quite a good recovery, and i expect it to

gather momentum. >> there's a difference, i guess, between bottoming and actually making a recovery. >> yeah, but the american economy is recovering. i use the word "bottoming" in relation to the housing market. >> that's what i meant, yeah. >> but the housing market, i think, isn't as big a weight on the u.s. economy as in other economies. i think the united states can grow, even if the housing market is just bottoming. >> christine? >> lord lamont, how do you feel about the slowdown coming from china? is that a big threat to the global economy? >> well, i think it is, yes. i'm not a great expert on china but my instinct is it's going to slow down in general more than people think. i think the property situation there is quite serious. as a matter of fact, i understand that the finances of many of the local governments in terms of taxation and revenue

from property development, a hard landing is difficult to define in chinese terms. that might mean just going down to 6% growth or something like that. but if that's what one means by hard landing, i think we might well get one in china. >> meanwhile in uk we're wondering if we'll get 1.1% growth. we'll take a pause. when we come back, we'll have the first estimate of gdp numbers. of course, the sterling index up high against the euro. that data when we come back.

exchange." the headlines today from around the globes. earnings dominate led by apple as they continue to sell millions of iphones in every corn ore f the globe. numbers out of banks now out in europe. credit suisse surprises us with a first quarter profit and bbva show its balance sheet is in much better shape than had been expected. >> a first on cnbc with wipro's ceo. they get slammed on toned down

giants. >> drawgy ready to deal with both downside and upside risks. he's also urged governments to do their best to boost growth. >> right. i'm afraid the uk is in recession. preliminary first quarter gdp minus 0.2%. it had been for an increase of 1.2%. it was suggested that it would be stronger than that. he thought it might be on the upside. so after the minus 0.3% con trarksz britain has entered into a technical recession. q1 services sector out 0.1%. industrial output, minus 0.4%. the biggest drop here is in construction output down 3% on

the quarter, minus 0.2% on the fourth quarter. the biggest options, qe1, 2009, that's knocked sterling off and heading lower. gilt rallying after uk fall back into recession. they've done very well. jeremy stretch and lord lamont still with us as well. your reaction to that. i mean it seems to be down to the construction component, which is a very volatile component. >> indeed it is. we have to treat this number with relative caution. it is based on relatively complete information. i think we also have to be very mindful of the issues related to construction because i think the bank of england made it.

i wouldn't be surprised if these numbers are revised out cle. clearly at face value, it's not surprising. >> the pmis in the last two months was not very strong. >> indeed, in essence, i think that's one of the concerns the bank of england has in terms of the reading of the uk economy because of the issues relating to the official data. i thnk we also saw that in term os testify retail sales on friday. >> lord lamont, where does this leave the chancellor and the government at the moment because they were hoping to avoid a technical recession? >> i think it is obviously a disappoints figure. it's a surprising one because as you say the surveys indicated otherwise. there were quite good figures on manufacturing at one point. it is disappointing. but, of course, there is the very, very difficult external environment with large individual countries in europe being in recession as well.

britain just can't stand outside all this. the disappointing thing, i think, is that despite our having had a depreciation, notwithstanding the depreciation in sterling, i'm disappointed or exports have not done a lot better, and they've done badly with other countries in europe actually. >> hey, jeremy, this is christine in asia. all of us are looking at the olympics that are going to be going on in london. how much of a lift is that going to be for the uk economy? >> that, of course, doesn't come until materially into the third quarter. i think the problem the uk is going to have is in the second quarter we get the queen's diamond jubilee extended bank holiday weekend. so it may well be the case if we don't get the outward revisions of this q1 number that we expect, if we don't, we may find we get three quarters of

negative groukts by the time we get to qe2. >> necessarily, if we stay with this figure, does qe remain on the agenda, and, therefore, is the sterling rally that we've had over? i don't thifrg it puts it back on the agenda as of yet. i thrng we need to understand whether it's the number we actually think it is. we know about the structural issues that will impact on the second quarter. so i think we need to look forward to the second half of the year to get the better picture. and i think the other underlying concern is the stickiness of the inflation in the uk. i think that will be another factor that will preclude it. >> going against the dollar, we've seen the best of that trade. >> i think we have. certainly i was recommends to our guys this morning that you wanted to fade cable sterling. i think there's always going to be the risk we came low. >> that trade's worked beautifully. >> jeremy, thanks for that.

jeremy stretch, we'll let you go. lord lamont, we'll get more reaction from you in a moment. let's see where we're at with trading in asia. christine. >> earnings tough so support some of these markets. but guess what? uncertainties coming. nikkei up 1%. the techs getting a lift on the apple effect. that's giving some of the lift in sup mys of of the japanese. tech supplies getting a lift as a result. this particular market up 0.9%. in shanghai, 0 ppt 8%. we have banks earnings out. that's going to be key. it rose on a report that equity funds have increased their exposure to the center. so this is giving this particular market a lift. somehow they're not filtering through into the hong kong market.

pretty weak. failed to hold on. as well as the problems in the eurozone. kospi is pretty much flight and the sensex is pretty much interesting because we had s&p, standard & poor's cutting negative to stable, warning that the country stands one in three chance of a downgrade in two years. they say the government will face headwinds in implementing policy reforms. the news sent shock waves throughout the market sending the sensesensex. as yo can see, it's up. >> we're trying to move away from the 3 1/2-month lows we hit on monday. earnings certainly helping us order today. ftse 100, gdp coming back a little bit.

the contact coac cor40 as well. we're low at the moment. 5.8%. yields there heading lower, 0.27 on the ten-year. still an ultra low levels. euro/dollar that's been firm back to 1 3g 2. we're still in that tight range. as far as the yen is concerned we're really expecting an increase in asset purchase from the bank of japan on friday. that's weakening the yen across the board. aussie dollar just recovering from the lows we had at the beginning of the week. sterling as we saw falling back against the dollar, post up, very disappointing second quarter figure. just a reminder if you just tuned in, coen tract 0.2% in the first quarter, mainly down to a

big weakness in construction, which is at odds with the rest of the area particularly for that sector. back to you, christine. >> ross, of course, we're talking about earnings and is the height of the season over in china? this could offer important clues of course about the impact of china's slowing growth. so far we've seen stellar reports. there have been other disappointments. pretty much a mixed bag. we're joined by dicky. as we go through the week and get next week's earnings reports, is this going to be the start of signs that the slowdown of china is going to start to impact corporate earnings? >> definitely you can see bai baidu's warning to give big pressure to the share price.

i do expect that the stock market will remain in a range trading pattern. we'll find a key resistant after 50 days' moving average. also from the feds' announcement and also invest ters are still expecting -- still expecting that. the central bank of china may have an outer cut of 50 basis points after a reserve requirement ratio, but we are still waiting. basically bad news. >> so we could be getting some policy support. but the state chinese banks are very interesting. remember, tomorrow and friday we'll have them reporting aerpgs. what do you make of what the outlook is going to be given once previous comment about

shaking up the economy and all these risks slowing the banking sector coming from the local government side? >> well after premier when ja bow comments on this and the share price drops significantly. i believe they may find some kind of support because they're already down for quite a bit and current valuation is relatively attractive now because just 1.1 on average, and i also expect that if those state owned banks and the future, they lend more money to those medium sized, even the smaller sized firm, they won't just simply land money to those state owned company. it will give some kind of support at this level. i think. >> dickie, we have the beijing

auto show at the moment. what's your outlook because we know they're not that big a market on the auto world. how big are you on the chinese automakers? >> not only those chinese brand. we can see there's such a high demand for suv, especially you can see lamborghini now, the italian sports carmaker, that's in the china market. the long-wheelbase make their debut and the beijing show for the bmw. so i'm quite bullish on the outlook on some of the major bra brand. >> such as? >> brilliance, 1114 because they made the bmw in china and they always launched a new one, f-30,

long-wheelbased sedan only made for the chinese market. i think it was -- sell very well in the future. >> great, dickie. thanks very much for your views. dickie wong talking to us about chinese earnings. still on the auto sectors, china rocks its show. despite higher fuel prices and a strong interest rate policy, experts believe the road ahead for india's carmakers look good. we have this report. >> reporter: navigating india's roads in the past year has been tough for both domestic and foreign automakers. during the fiscal year to march, carmakers were hit by a triple whammy. interest rates shot up by 220 basis points and the cost of vehicles rose by 5 rp. this took the biggest story on the small car segment which

accounts for 75% of all cars sold in india. >> if the prices keep going on, we'll have a big problem. suppose the government is not able to control the deficit, then do some growth to invest in the plan. >> reporter: there are signs of growth. the final quarter of the last fiscal year saw record sales for more auto producers. the india society expecting car sales in the current fiscal year to grow 10% to 12% held beloser monetary policy. that's after the reserve bank of india slashes interest rates by 50 basis points. >> we expect it will go better for the auto industry for the simple reason that we have seen it because of an increase in interest rates and fuel prices going up. so if the economy gross 7%, 8%. it's my perception the industry

should do better. >> reporter: they projected double-digit dwroukt. so is the india's car market going nowhere fast? not necessarily. they expect the indian auto market to go from the world's sixth larger to the third by 2020. it will be crucial whether it translated into lower rates for financing. meanwhile it could also help sales this year. for cnbc news 18 in new delhi. india's auto mareks have been gaining ground since they cut their lipiding rate to 8% last week. switching gear as little bit, no pun intended, there's a meeting. we have a story live from tokyo. >> thank you, christine. after the bell, canon posted a

7% rise that ended in march. it raised its four-year forecast expecting the weaker yen to lift the bottom line. previous forecasts were based on expectations of a lower yen. also helping canon's bottom line is its strategic focus on digital imaging. strong demand for higher end digital cameras helped offset digital printers and office equipment. in other news the nikkei reporting that it's expecting to post a 3% increase in its fiscal 2012 group operating profit compared to last year's upticks. it was in line with market expectations. the popularity of its smartphones is expected to drive up its data communications revenue, but the flip side of

the coin is the revenue from voice communications. that's expected to slip as most smartphone users take advantage of cheap communications software and social networking software sights on the internet. back to you, christine. >> thank you. mayor draghi has warned he's ready. the ecb chief has repeated calls for governments to pursue reforms but they must now address growth. >> they must understood take policies to address major weakens in the fiscal, financial, and structural domains. these measures need to be complemented now by growth enhancing structure reforms, the

start-up of new firms and job creation. >> and another one that's emerged that's come out with kmejt as well. he's rejected the finger-pointing. he says it is rebuilding deps and he says bank capitalization mustability be put off. the leveraging process still contained and oorderly. lord lamont is still with us. mario draghi also says the main political parties in europe understand policy discord is not good for the eurozone. they may understand it, but they keep delivering political discord. >> they kept politics away from it, but, of course, you don't have a currency without a government. you've got a currency with 17

governments, and furthermore, those governments are subject to re-election all the time. so there is arguments between the countries as well as their own zone. >> what's the next leg of this crisis in. >> the next flashpoint is the next election because he says he's going to renegotiate the fisc fiscal pact which is unacceptable to the jer manns. and then you have holland. but, you know, even in spain where the prime minister there has been unable to meet the fiscal target and there is growing discontent, so everywhere politics is intruding into this and making it very difficult to hold the line on austerity. >> all right. we'll take a short break. still to come, rue put murdock

is preparing to testify in london just after a day of his son james. we're outside the korld next with a preview of what we might expect today. wñwñwñwñwñwñwñwñwñososososvycyíy

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reached the door of number ten after he detailed the relationship between the british government. testifying yesterday murdoch jr. outlined the company's bid to take a role, even implicating prime minister cameron. today his father rue put murdock will take the stand and will be pressed further on his relationship as well as his own knock of the hacking. nice to see you're wrapped up there. the story moved firmly on to the relationship with the british government yesterday. what do you expect to happen today? >> well, ross, i expected a higher level conversation will continue. rupert not only brings the knowledge of what happened before james got to the news

international which is a point he tried to drive home that what happened did not happen on his watch. rue put should have some knowledge, otherwise, being at the top of that organization when some of those acts were alleged to have taken place. he also brings with him five decades of experience in the media experience in the uk, in australia, and in the u.s., and that knowledge will be key here because the relationship between jeremy hunt yesterday really served to exemplify the stranglehold that the murdoches are said to have over the uk government and their influence as evidenced by their relationship with jeremy hunt, with other politicians, especially during that hostile takeover of bskyb. this could be the mosecond most humble day for rupert murdoch since july. that being said, the answers we

heard from james murdoch yesterday took a matter-of-fact tone. this conversation is likely to be more dramatic than day-by-day, minute-by-minute-type events. it will be quite the show, quite the political theater, and we'll be reporting live outside the royal courts of justice to bring you all the details. >> kayla, thanks for that. sorry about the british weather you have to put up with there. >> there are always relationships and other things. i suppose the question is how much out of the ordinary was the murdoch relationship compared to others with the british government? >> i think we have to wait to see what jeremy hunt says. i think labor in danger of jumping the gun on this because what has come out is that the

lobbyist mr. michelles was freely using jeremy's name when on occasions he hadn't been talking to jeremy. whether he was purr vaiing the views of jeremy hunt, we'll see, but think a completely wrong perception has been used by jchlt h. when you haven't talked to him. as hunt emphasized, he sought, as he did not need to to, the advice of independent regulators. >> where does this leave the murdoches themselves and the corporation internationally in your view? how far is this going. >> well, i think the whole thing has been immensely damaging, and i think there's a big question mark over the newspaper empire in this country. >> and media ownership is -- i mean are those rules -- we've seen they obviously didn't end

up -- they pulled out of the deal for bskyb anyway. do you think the rules of the ownership will be changed or the policing of the media needs to be changed or actually are the rules good enough and they need to be enforced? >> i think the rules are good enough. they need to ben forced. i think saying for example some people are saying there shouldn't be any foreign ownership of newspapers in this country. some countries have rules like that. but, you know, newspapers aren't exactly profitable activities. and getting people to buy them is not an easy thing. >> no. that's a fair point. let's leave us with your final thought, your optimistic thoughts on the economies. how much is the eurozone or the recessions that we're getting in europe going to offset the rest of the global economy? >> i think it is very much going to do that, and i don't really see an end in the near future to the eurozone crisis, and i see

political events, coming up, that's bringing added uncertainty and i think austerity is going to bring more to come. >> lord lamont, thanks very much for joining us. christine. >> great to have you on, lord lamont. no crunch for apple. the tech giant once again blows past concerns. we'll discuss right after the break. stay with us here on "worldwide exchange." [singing] hoveround takes me where i wanna go... where will it send me... one call to hoveround and you'll be singing too! pick up the phone and call hoveround, the premier power chair. hoveround makes it easier than any other power chair. hoveround is more maneuverable to get you through the tightest doors and hallways. more reliable. hoveround employees build your chair, deliver your chair, and will service your chair for as long as

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good morning and welcome to the show. the headlines around the globe. earnings dominate led by am. second quarter profits crush analysts' forecasts as the company continues to sell millions of iphones in every corner of the globe. britain slides back into a recession as austerity and sluggish demand take their toll. meanwhile number out of the big banks do stand out. credit suisse surprises us with a big first quarter profit and spain is in better shape than many had expected. shares of chinese internet search giant baidu plunge in

after-hours trade on its disappointing revenue forecast. good morning. you're watching "worldwide exchange" with christine tang in asia, ross westgate in europe, and i'm jackie deangelis. looking leak a higher open ri o now. the dow could be up by 90 points, the nasdaq higher by nearly 50 and the s&p higher by 12.5%. no doubt led by apple, of course. we saw a pliksed session in the u.s. markets yesterday, ending off the session highs windchill e saw good earnings driving some of those gains on the dow. apple dragging the nasdaq down before the close, and like i said, a blowout quarter of course boosting the futures and we'll look into those apples numbers and give you more analysis on that. ross, how is it looking? >> earnings have given us a boost. two hours of trading. tries to move away from the 3.5%

lows. the ibex up 2.7%. the ftse, a relative laggard. it is worth reminding that the uk is back in recession. very disappointing flash estimate of first quarter growth. minus 0.2%. the consensus was plus 0.1%. you have to remember that the pmi survey suggested a growth of 3%. it seems to have dragged it down was the construction number, big fall in construction output. down 3% on the quarter. but that doesn't -- even that doesn't sort of measure up with what they're saying with what the pmis have said and the bank of england had previously cast some doubt on just how much you could rely on the ons construction survey. so we'll wait to see what happens if we can get revision up. remember, in the last quarter we thought we'd get a revision up.

it didn't happen. anyway, at the moment as it stands, the uk in recession. george osborne has come out and said we're abandoning any economic plan. it would just make the situation worse. now, besides earnings and economic data, it's the day the big man steps up to the plate. ruepert murdoch is expected to testify. he's raised me questions. kayla tausche is on the ground, the very wet ground of the courts of justice. this is day two, two days. this is a very long time. what isn't going to be talked about? >> reporter: well, i think they're ruling nothing out, ross, and that's why you're seeing rupert on the docket for a potential two days of questioning. of course, it depends whether they should get everything out of him that they'd like.

remember, rupert last testified in front of a parliamentary committee last july in which he said it was the most humble day in july. in the meantime, there was testimony in front of the parliament committee and he had his day of reckoning in front of lever ison yesterday. now, this will be having interesting. of course, you want to get on rupert's schedule and you want to make sure when you have him in the hot seat, you have as much exposure as possible. they'll have questions about his relationship with the government, not only during the takeover of bskyb but also how that relationship evolved overtime, whether they strengthed, got cozier, that dinner of rebekah brooks was a big point of contention yesterday at which point rupert was said to have discussed the takeover with the prime minister at the time. it will also be a time to ask

him more of what he knew more about his take on the media industry as a whole. the inquiry ended yesterday asking james murdoch how he would police media, how if he were them seek to regulate industry. whether there should be a new body in place. james says he believes he would appoint an independent commission of source, both with members of the press and outside to be a self-regulating body. it will be interesting with rupert's experience in the industry what he expected. of course, this has been five months ofmont collecting it. no doubt those will be primary documents that will come into focus as rupert takes the stand today. ross? >> thank you very much. that start has been delayed, so we'll keep our eyes on it. we'll go back to kayla. we've got umbrella maker doing particularly well here in the month of april, jackie.

>> lots to watch out for, hoping she stays dry. meanwhile here in the state it's all about apple. blowing past forecasts on the sales of the iphone especially in china. revenues rose 54% and apple sold more than 35 million iphones, well above the estimates of 30 million. sales in other countries rose five-fold. ipod sales were better than expected. and macs were inlied. appling has a cash hoard of 1$10 billi billion. we saw shares rise here in the united states. in frankfort they're at 10%, 4.53 at 0.50. you can seaver i zon, qualcomm, broadcom up in the session. joining us now, our guest for the next hour, julia.

great to have you with us. let's go ahead and start out with the apple number. can't oig nor the results. it's if uny because the expectations were that there might be some -- potentially some problems with the iphone and ipad sales but clearly not. >> absolutely, absolutely. apple is blowing the roof off against it really highlights the key of branding and the importance of globalization. more successfully than anybody, they've tapped into the global marketplace and achieved the level of growth. >> it's amazing they add 40 million in market cap, but that swing we saw, that's like starbucks. >> it's incredible. every quarter you wonder how much further they can go. once again they've exceed order expectations. >> certainly one to watch. apple. the big, big story in the state. in the meantime, ross, we're going to send it do you.

>> he arrived late but they're making the in trow dukzs according to my monitor. we'll give you the start of this. >> considering the come meantary last night and this morning it's promote for me to say a little more. this necessarily involves explaining some of the judicial process. i understand entirely the reason for some of the reaction yesterday and in particular the i'ms about which mr. murdoch was asked. but i am acutely aware from considerable experience that documents such as these cannot always be taken at face value and can frequently bear more than one interpretation. i am absolutely not takingg sids

or expressing any opinion, but i am prepared to say it is important to hear every side of the story before drawing conclusions. in due course, we will hear all the relevant evidence from all the relevant witnesses. and when i report, i will then make the findings that are necessary for me to fulfill the terms of reference that the prime minister set for me. in the meantime while i have seen other requests and investigations it seems to me the better course is to allow this inquiry to proceed. when it is concluded there will be doubtless considerations to be given to any further investigation that is then considered necessary. >> sir, the witness today is mr. rupert murdoch, please. >> thank you.

i am very conscious that the material which mr. murdock doch has come in different tranches and having seen with regard to other witnesses, i think it would be very helpful if you could move from bundle to bundle, if somebody could help him do that. >> i swear by almighty god that the evidence i shall give will be the truth, the whole truth, and nothing but the truth. >> thank you. >> your fum name, please, mr. murdoch. >> keith rupert murdoch. >> i believe in front of you you'll see a witness statement you signed and dated the 12th of april of this year with 44 exhibits. there's a declaration of truth

on it. are you content that the inquiry receives your statement as your formal testimony? >> i am. >> mr. murdoch, as i've said to a number of other witnesses and indeed to many other witnesses, i'm very grateful to the obvious care you have takeen in the preparation of your evidence and the material that you've placed be before the inquiry, and i wanted to record that. >> thank you, sir. >> now, you are the chairman and chief executive officer of news corp. rags, a company incorporated in the united states. >> yes. >> total assets of $60 billion and a total annual revenue of $34 billion, is that right plrks murdoch? >> approximately, yes. >> for our purposes if we could be more parochial, approximately 8% of news corp.'s revenues are generated the united kingdom, 60% by news international. is that right? >> that is right. >> anyone who wanted greater detail may look at your witness statement when it's published in

due course. would it be fair to say that you have been following british politics for at least 60 years, mr. murdoch? >> yes, i suppose so. with a varying intensity. >> and you say that you welcome this inquirey and that rumors fr mr. cameron setting it up are untrue, is that right? >> did i say that in my witness stateme statement? >> you have said that in your witness statement. i'm putting in front of you rumors that you haven't for given him for setting up this inquiry. what do you say? >> untrue. >> why do you think the need,

mr. murdoch? >> i think the need is obvious. we can go into that at another time. you know, the state of media in this country is of absolutely vital interest to all its citizens. so i think -- frankly, i welcome the opportunity because i wanted to put certain myths to bed. >> yes. you used the term "abuses." is it your perception or understanding that abuses go further than the issue of phone hacking? or are they limited to the issue of phone hack iing. >> i'll thing on it. >> we'll come back to it. can i ask you about your business philosophy which you cover in your witness statement and can i crystallize out what you say in three main points. first you have an intuitive

instinct for acquiring businesses which you believe will be successful. secondly, you -- and perhaps more importantly, you have a long-term perspective. and thirdly, you have a deep flair for an understanding of the possibilities of technology. and mr. murdock, have i got that right? >> can i make very slight amendments? >> certainly. >> i would say all my interests have been confined the media, not just any business. long term i think you're absolutely right. i have just about everything i've done in terms of major moves by the company, particularly one we're in at the moment is very long term view and, you know, sometimes i've been right and sometimes i've been wrong at great cost.

>> i'll ask you briefly about your political philosophy. would it be fair to say that you always have been a great admirer er of bear necessary thatcher and what she stands for? >> yes. i was -- i became that after she was elected. and i remain a great admirer er. >> the election, presumably your support for mrs. thatcher crystalized in your mind before that election. would that be right? >> well, i think all newspapers are much the same. we just come through the most terrible winter of discontent strikes, disruptions to the whole society. and i think we all wanted change.

>> can i put one quote to you? it's, indeed, from you, an interview by mr. william shorecross in "time" magazine, 25th october, 1999. we needn't set it up. is you speaking. what does libertarian mean? as much responsibility as possible. as little government as possible. as few rules as possible. but i'm not saying it should be taken to the absolute limit. so is the gist of that few rules but not no rules? >> clearly there are necessary rules in a working society, but they can be overdone. >> that is the testimony of rupert murdoch. if you want to keep listening to, that then, please, just go to cnbc.com. the rupert murdoch testimony

will continue. he's a fascinating man to listen to. clay h kayla has been listening as well outside in the rain outside the royal court where that's taking place. it's interesting. he immediately denied that he didn't want -- that he'd never forgive david cameron for launching this inquiry. it's going to be -- there's something about listening to rupert murdoch that i do find just quite interesting. >> reporter: it's definitely interesting. and, of course, what will be on the record from rupert is the witness statement that he provided to them. that will be online in its entirely. normally at these hearings they start with some corrections made to that statement, which rupert turned about in two weeks ago that the inquiry had provided him. what they're talking about right now is his political philosophy. his background into the brutish culture and seen for the last 60 years. he did say, interestingly, that

he does believe abuses of media and media power have been going on, even outside the scope of phone hacking that. will be important as well. one point they made that, of course, he'll return to. also interesting to note is up until now the uk media aspect of court has been estimated to contribute around 15% of the news corp. revenue. now it appears to be even smaller, saying that it's only 8% of news corp.'s revenue. so as far as the scope of the arm, news corp., it does appear to be getting small err and smaller and smaller. that being said. the scandal is becoming larger than life. we'll be looking to hear more from rue put later today and we'll have updates as the testimony continues. >> i just realized he's wearing a blue conservative tie. i think that's sort of

coincidental. jack jackie, what else do we have coming up? >> we'll have more results on the apple results p we're going to speak to a guest who says the stock looks like an opportunity to accumulate on the pullback the next two quarters. make sure you stay tuned for that.

good morning and welcome back to "worldwide exchange." let's take a quick look at the futures. looks like it's going to be open with the dow higher and the nasdaq higher been 12.25%. this after apple's blowout quarter yesterday definitely impacting the futures this morning. meanwhile the fed wrapping up its decision this afternoon. they'll release their forecast at 2:00 p.m. and chairman ben bernanke holds a press conference at 2:15. economists widely expect that the fed will pledge to keep their interest rates low until at least 2014 and leave the door open in case the economy takes a turn for the first. we're going to talk more about the fed. rick, we'll kick it off with

you. do you agree the feds are going to keep the same kind of tone? >> i think so. they're going to want to see the data. we've had what looked like a steady improvement in the employment market and last month's number was disappointing. i think they want to see the data before making a determination afterward. >> obviously we have the elections coming up. what's the bottom line? >> i think june is the most logical step. as you wait, you're going to see two more payroll numbers and a whole slew, you're going to get a whole lot of numbers. i think that's the most logical. but i think that's overstated to some extent. i think you can go after it but i think june's a pretty pivotal time. >> this is christine. oil prices, a big factor in the fed's decision?

any decision? >> 100%. gas price with where they're trending today, they have to be. they're in a bit of a tough spot, because payroll, they're still in a bit of an employment. trend down. unquestionably gas prices to going to weigh on it. thing they've talked about the cost of qu and that's pwhat they've been talking about. >> gas prices, they've had an unseasonably warm winter, so those are the upside of things. >> yeah. 100%. natural gas is something over the long term that's going to be of tremendous benefit for the u.s. economy. that being said it's much more of a long-term impact today than the u.s. economy. so much more dependent on gas prices, obviously on imported oil. no doubt it's a benefit but gas is going to be a factor. it's what people reported with regard to qe1 and qe2.

given where we we aare today, ts going to be on everyone's minds. >> what's the inflation risk? >> i think the fed forecast -- the fed forecast suggests by the end of the year, you're going to have inflation come off. we don't think there's durable inflation in today's economy. it's very hard to lift wage pressures of any significance other than creating commodity price increases. we don't think inflation -- we do think longer exit strategy from policy. we think they could bring inflation, but we don't think it's a tremendous impact or risk over the next couple of months. >> julia. >> i think the other thing the fed's going to keep a very firm eye on in mentioning it in their statements are straps and global financial markets. if anything those have intensify somewhat worries about spap and the swachlgts once again, front and center, something that the european recession ongoing worries them, what impact will that have on the broader global

economy and the u.s. growth. so i think there's a lot of things that have sort of bubbled to the surface since the march meeting. they're going to want to keep that in mind. >> i want to bring it back to rick. what about the u.s. housing market? obviously we've seen mixed data as well. it's sort of touch and go. what do you think on that? >> we've seen some of the data has clearly improved over the last couple f o months. you've seen home stock markets improve. we think it's going to be a long time. we're still flat, maybe a bit down in terms of house prices. it's a regional discussion, it's a wealth discussion in terms of warehouses vast improving. but in terms of broad scale improvement, we think it's going to take a long time. >> so out of everything we discussed and some of the points that julia brought in with the global concerns, what's the biggest headwind right now?

>> there's no doubt that european growth is the biggest headwind. spain is a primary risk, but it's not just spain, spain, italy, the whole periphery is something that's going to be a drag on global growth. you're seeing asia decelerate and china. we don't think asia is a risk. we don't think that's a tangible slowdown risk and europe is. credit creation is hard to stimulate in europe and that's going to dull growth. >> absolutely. a lot of issues to watch out for. rick rieder and thanks to julia, who who's going to stick around with us from bn par reba. also coming up cnbc's john harwood speaks exclusively to u.s. treasurely tim geithner. catch that interview at 4:00 p.m. eastern time. christine. >> have fun. that's it for your me. i'll be back tomorrow with the

news and moving markets here in asia. >> christine, thanks vchl a great evening there in asia. you can continue listening to rupert murdoch's testimony live on cnbc. you can follow the live blog as well on the site with the latest from inside the hearing. jackie. and still to come on the show, the apple effect pulling futures higher at this early hour as the tech giant blows out forecasts with its latest quarterly results. but our next guest, he's still bearish on equities. find out why coming up next. 

forecasts with its latest 

good morning and welcome to the show. headline, earnings don't nating, led by apple. the company continues to sell millions of iphones in every corner of the globe. britain slides back into a recession for the first time since the height of the crisis. flash gdp comes in with a negative quarter for the first quarter. and numbers out of the big banks stand out in europe. credit suisse surprises with first quarter net profit while the second biggest bank bbva shows that its balance sheet is better than expected? and mario draghi says he's ready to counter act the upside risk. the ecb president also calls for

a growth compact despite a europe-wide austerity push. >> these measures need to be complemented now by growth-enhancing structure reforms to facilitation entrepreneurial activities, the start-up of new firms and job creati creation. welcome back. nice to have you here on "worldwide exchange." if you're just joining us, let's take a look at the u.s. futures and see how we're setting up for the trade on wall street. the nasdaq up by 48, the dow up by 88, the s&p 500 up by 12. seeing a bit of a loss on the nasdaq, by nearly 9 points. concerns about the earnings report, ross. they came out with blowout numbers after the bell, and we saw the stock rise in the after

hours session. in terms of some of the sej tors we were watching, it was teleco industrials and financials that were the top gainers on the s&p yesterday. >> meanwhile earnings are helping us high today. a second day of bounceback from the 3 1/2 month low we hit on monday. ftse up a third of a percent, despite the uk being in a bit of a recession. foot see up, xetra dax up 1.30, the cac 40 up, ibex and smi. it was in contrast to what many of the surveys have been telling us, particularly the pmis, jackie. >> yeah. and as the fed meeting draws to its conclusion today, our next guest saying qe3 would be positive for equities and negative for everyone else. why is he bearish on the stock market. joining us is joe clark, founder and ceo of financial group and, of course, our guest host julia

coronado. joe, great to have you on the program. tell me, why are you a bear? >> we're poised, i guess, is the best way to put it. when one of my friends puts it that we have a 4% stock market. i think you're going to continue to see the fed come out today and talk about things that say qe3 may be there, but come on. the last few months we've been able to watch the unemployment rate tick down. it's the key thing that they're watching. it is very difficult in this climate for them to be able to come out with any more qualitative easing. and the bottom line is those of us who have assets have been able to see this money system create appreciation. i think at the end of the day, we all want to talk about the economy, but what most of us really want to see is an increased 401(k) statement, a brokerage account that's risen. and that's what's happened is the feds have had a qe1 and qe2.

they're going to talk about it. i don't thifrg they can do it yet. we all have the playbook. when the system starts to not add any excess capital, we look at an economy and we go, okay, it's time to pull back a little bit. thing that's what we've seen happen in the market the last few weeks. >> wait a minute. let me ask you a question about qe. because the market certainly isn't going to like it if we don't have a third round of quantitative easing. at the same time doesn't it mean that fundamentally things are improving and that should be a long-term positive? >> absolutely, jackie. but let's never confuse an economy and a stock market. an economy is about having reasonable growth over an extended period of time making measurable gain. stock markets are about trajectory. they're not just about, okay, we're having good earnings. it's all about trajectory and it only goes in one direction. if we do not continue to see

earnings rise and markets kb band, we will have problems inside of the stock market and i think that's the challenge. i have switched -- i believe the economy can actually hold its own here. i don't believe the market can hold its own without more qualitative easing and i just don't think it can happen right now. >> joe, i've got a question for you. something that our equity brings up, we've seen a lot of bond issuance that's taken out to buy back gears. that's a gearing that should help gearing growth and market expansion even with lackluster economy. what do you think of that? could that be something that's an upside in earnings in the months ahead? >> there was a very bright man on cnbc a month ago. i missed his name in the interview. but one of the things he was talking about in hotels is his

greatest asset five years from now may be the very debt he secures at this point in time, with the believe that you're going to have large rises in the interest rate, that they're going to have to be able to secure debt to buy more properties and expansion. i think that's true. i think as they look around at this climate as let's put as much money out there as we can, they're going, all right, now's the time to get our debt in order, get what we need. yes, they're buying stocks back and you're seeing that in some areas, but i really think they're trying to get their financial house in order for the next growth. we've been talking on cnbc, our newspaper column, about a segment in the economy for the last three years where you see clear winners, clear losers. apple is the flagship of the story but they're not alone. you're seeing, this is the winner, this is the loser. we're coming out of an economy where they're all together. that's the separation. i think the companies running their businesses, getting their bonds are doing that.

>> that's a good point. joe clark is going to stay with us. julia coronado also going stick around as well. meantime, lots more to come on the show. apple selling millions of iphones to a growing customer base, especially in china. what can tim cook and the company do for an encore? we're going to break down the numbers right after the break.

>> that's a good point. company do for an encore? >> that's a good point. company do for an encore?

the company earnings dominating on today's session. just to give you an karks apple, shares up right now nearly 9% on frankfort trade. we've also had figures out of some of europe's bigger companies. the likes of credit suisse, siemens, and bbva earlier on cnbc. we've heard that and many others. let's just listen to what they had to say. rocket dynamics don't be intact. we know about sovereign europe, but germany is doing well, so overall, siemens is benefitting. >> we think things are improving. they will improve over time. but in the meantime we'll see volatility around that, see the markets more optimistic and less

optimistic from time to time, but we believe over the long run, the right things are being done. >> we receive acceleration from them. major products being released ahead in q1 and on schedule. it's a pretty good outlook. >> the first quarter was a good reflection of them coming into the market in the beginning of the quarter and started to get worried again due to the spanish situation, and i think that will be the reality for the rest of the year. >> by and large, all those earnings taking fairly well here. elsewhere in china, the main rival baidu has put out its first quarter shares. tracey chang has got more for us. tracey. >> good morning to you ross. it's really the second quarter revenue projection was at a low and what the street wanted.

baidu is forecasting a 25% to 28% increase in revenue quarter on revenue. they see this as a significant deceleration since baidu has never actually gone below 35%. marking the fourth quarter growth. many market watchers in in china think the disappointing forecast has very little do with china's economic slowdown but has more to do with the competitor. what's worth noting here is baidu got to strengthen its position as the dom nablt search site in china after they shifted their engine to hong kong after a standoff with beijing over internet censorship. they became somewhat inaccessib inaccessible. experts say that was a big contributing factor to hire in the past few years. jackie, it's over to you in the u.s. >> thanks so much for that tracey. in the meantime the earnings in

the united states is apple. stay tuned for how the tech giant has managed to wow investors once again. stay with us.

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. good morning and welcome back. apple's second quarter profits blowing past expected forecasts. revenues rose 54% and apple sold 35 million iphones. that was well above the forecast and what wall street was looking for. meantime, of course, that was a blowout quarter. that sim pathing the futures as well. and, in fact, i also want to highlight the fact ipod sales were better than expected with apples. and the macs were in line. we were expecting weakness

there. they have a cash hoard of $110 billion with 75% parked outside the u.s. of course, some of that we know what they're going do with and some of it remains to be seen. mean whooim castro is resigning. he says he must devote his attention to his family at this point and protect his family and reputation. at metlife he served on the compensation, corporate gov najs. reports say that regulators have sent letter os to at least five studios including 20th century fox, disney, and dreamworks asking for information about possible inappropriate payments to government officials. they're tightly owned by the state owned china film group

which limits foreign films to 20 a year. but it eased up after china's leader visited washington. and south korean retailers are halting u.s. beef sales after the usda reporting the first case of mad cow disease in six years on tuesday. the government says it may suspend quarantine inspections. mexico saying it won't ban imports. and japan isn't taking any action for now. the dairy cow was discovered as a rendering plant in california. u.s. agriculture secretary says the food did not enter the food chain and there's no threat to hue manns. shares of chicken and pork producers, tie sop and smithfield foods closed higher. the parents of home plus are lower today as well. and here in the state, march durable goods are out at 8:30 eastern time.

demands for big ticket items like planes and heavy equipment rise. dow earnings for them are going be reported at the opening bell. we'll get numbers from others as well. we have northern drummond, sprint and u.s airways as well. a lot of big ones to watch. and the fed wraps up its two-day meeting with a decision due at 12:30 pchl eastern. updated economic forecast will come out at 2:00 p.m. and then ben bernanke's press conference will be at 2:15. you can catch it all with nbc's special coverage beginning at 12:15 eastern time. we're joining again by joe clark. he's the founder and ceo of the financial group and of course our guest host julia coronado. joe, i want to come back to you for the blowout earnings. tim cook, a pretty good run for him. how does he keep this momentum going forward. >> you've got seven people worldwide that want to experience apple and the things that are going on.

the per square foot, there is no retail never the world with the exception maybe in the jewelry side that can do what he has been able to do with retail stores when they opened up in china. they had to shut down right away because of the mass of people that rushed in. i think that's where it goes. the ipad just continues to get better. three years ago, maybe four years ago we didn't have an ipad. i run my company from an ipad today. and i think as long as they're able to have that technology continue to create the communications and get the story out, they're going to continue to sell goods. the problem with apple as with all companies, how do you continue to have that margin skpapgs or positive trajectory. right now because of the consumers and the growth, they're good to go, but he's doing an awesome job with the company. >> pretty remarkable how they're using the iphone and ipad for their business and personal lives. it seems china missed the

chance. why do you think it is? >> you guys reported this morning we're officially in recession in england. a lot of different people argue for different reasons. i think what propelled the economy for the last 30 years was really this dechl graphic congestion for people born between '57 and '61. doing things. they're now 50 to 55. they've got plenty of capital. they're not spending it the way they used to spend it. they don't have a lot of need bus they have a lot of wants. their wants are technology and they can pick and choose. i think we saw that slowdown in the united states. we looked and seen what's going on in china and possibly a hard landing where they're goinging okay, there's no way to spend money on the iphone. wrong. they bought it. they bought the ipad. i think they're going to continue to do it. but it's a deaf graphic story. >> joe, i have a question for you to. what extent is apple

cannibalizing other electronics retailers. to the extent you see them beat expectations, does that mean we should see disappointments from others? >> well, not necessarily because you begin to see this adaption. there are people in my office, for instance, that are going to try to find anything other than apple just because they know i like it so much that they're trying to use other technology that's out there. and i think you're going to see companies that are coming along and trying to create technology. the cannibalism is really going to be in in the old desktops. we're already seeing it. that's why people were worried about the macs themselves. that's going to continue. but the adoption in my mind is going to continue to go on. you're going to watch blackberry disappe disappear. it will continue to bible to expand in that way. when you start to see major producers of finer technology, you know you're there for the duration and able to stay. >> and julia brings up a good

point, joe, i want to follow on her question. obviously there's an issue with cannibalizing it and where they cannibalize itself and i think that's what some of the investors were worried about, that you might switch over and use the ipad and buying macs and other products p when do we have to start worrying about that? >> when i talk to the people at the apple store, when you can actually fit through the door because there's so many people. you know, i like to ask the kids because they seem to have a better handle on it. when you look at my world, e own 20, 25 ibm-type computer. the know v the novo. i am apple on the ipad, the mobile, and still on the other side on the computer. they still have the computer to pick me up as we get software that is able to work more and more throughout the system. there's a cannibalization that's going to oh dur as we want to

get smaller, more compact and more mobile. but i think you'll get the business people to go into the mac world. microsoft has got the challenge going forward in my opinion as a big user of the software. >> jewel yarks lulijulia, joe t. what's your measurement of how much sort of dispo de income there is at the moment in the united states particularly and where it's going to go or whether people are too worried and they want to save many? what what's happening on the side? >> we don't see a lot of disposable income growth in the u.s., and in particular that demographic he talks about is far more cautious approaching their retirement age, not seeing a lot of great returns. when we look at the apple

results, what we see is that the surprise comes from overseas, and that demographic, i think, is far more important to apple and other global retailers than anything going on in the u.s. i don't thing the u.s. is going to be the source of great growth in electronics or any other category now or in the next few years. >> we're going to have to leave it there. thanks to joe clark and to julia coronado, chief economist for north mesh at bnp paribas for joining us on the show. evidently an apple a day keeps a doctor away, so what could a cheeseburger pizza do for you and could a food like this come with a health warning? that's a good question. we're talking about food launching in the middle east. a new pizza from pizza hut with cheeseburgers on it. is that something that would interest you? >> that is a cheese bupizza wit

cheeseburger to be honest. >> it's a bit much, but there are days -- >> hang around long enough, you see everything. why not have a pizza and a separate cheeseburger? i'm not surprising they're looking like that. i would as well if someone served that in front of me. on that note, we'll wrap up today's "worldwide exchange," jackie. just to remind you, thank you, jackie. rue put murdock or pert rupert murdoch is still testifying. jackie, it means it's time for us to say good-bye. >> that's right. it was great to join you guys today. i'm jackie deangelis in the united states. lots more coverage of the west. >> coming up, "squawk box" with a countdown. whatever hasp, we hope you have a profitable day.

good morning. dispels iphone feefrms empire under attack. news corp.'s rupert murdoch facing a firing of questions today. and the ball is in ben bernanke's court. the fed chairman preparing to make a policy announcement today and then face reporters. it's wednesday, april 25th, 21 1 2012. "squawk box" begins right now.