tv Worldwide Exchange CNBC April 29, 2013 4:00am-6:01am EDT
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hello. you're now watching "worldwide exchange." i'm ross westgate. investors cheer italy's new government. the new prime minister meets his specially sworn in cabinet members. and the a record seven women. stocks in europe are starting higher. the fed has been continuing its dovish approach and the ecb
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could be cutting rates. plus, jpmorgan, the latest management shake-up as the bank is trading up. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> welcome to the start of a new week here on "worldwide exchange." kelly is off today. we've got the fed, the employment report out of the united states and what the the ecb do? today we're focusing on italy as they try to bed in the new government. if you have any thoughts or comments, e-mail us, worldwide@cnbc.com. the italian prime minister and his new cabinet were sworn into office yesterday. the new add men administration is comprised of technicians and
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technocrats from the center right and center left. the former deputy of italy's central banks marney will be the economics minister. the new government is expected to pass a confidence vote at 3:00 p.m. central european time today. one piece that remain necessary a serious condition in hospital after a gunman opened fire in a square near to where the ceremony was taking place. another officer was also injured. the government said he was targeting politicians, but italian police say they consider the incident to be an isolated one. italy may have made it out of its political dead lock, but moody's thinks the country might end up asking for a bailout. and besides all of that, the italian treasury is tapping the market today by selling two issues of five .ten-year bonds.
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the ten-year now back below 4%. it goes down to about 3.94 last week. we're only about 60 basis points away from the all-time low on the italian premier yields which is back in august 2005. joining us for more, pavel. thanks for joining us. >> good morning. >> what do you think of the makeup of this new italian government? >> it's a blend of youth and experience. it's a blend of politicians and technocrats, so it's interesting to see if it can avoid the mistakes of the last government which didn't have the political legitimacy. >> it's actually the main factor that we've got a government and we haven't gone to elections. >> exactly. i think in the short-term, it was a lot of much needed stability to italy and to the fnlt market.
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the challenge very much remains. >> because they have a history of short-lived governments, so what, right? deja vu and it doesn't make any difference, does it? >> well, because of the eurozone, the way there's a political economic interdepe interdependence in the eurozone, previously they would have been issued safely. now the impact on other eurozone numbers, as well. >> yeah. what's interesting is it is still very much a euro file and, therefore, he'll presumably still try and implement the eurozone agenda. but if there's one country that could change the relationship, presumably, it is italy. >> it is likely.
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italy is not like the others. it is a larger country and has far more political clout in the eurozone. the question is what kind of europe? because people understand in germany and the other countries, more europe at this time would mean greater control over spending and over reforms whereas in the south, it would mean more solidarity which in effect means more austerity. and the potential for burden sharing. >> exactly. >> what this government does do is -- grill low as the opposition. >> exactly. >> so there is a danger in that. if this doesn't work out, as you
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have indicated, the chances exit for its failing strengthen grillo. >> i think it will strengthen grillo. with the exception of a few small parties, he is the main opposition. however, we did see small fractures within the last couple of months within the movement. which is a very new and unique political experiment, actually. for example, the way they left their cabinet online and their candidates make youtube video toes respond to seats for them. and there were strong distances within the movement. do they try to use that policy to try and change things or will they juxtapose things?
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>> let's bring in james butler, as well. james, we saw discounting of italy things wouldn't be so bad. the fact that they've managed to get new elections, what does that do for risk assets? >> i think it's very positive. we've got a younger coalition. i think it's important, though, to remember that it's untested. can he don't know what's going to happen. they have been earning italian bonds when there's no government and now there is a government. we're considering whether now is the right time to sell. conversely, in the opinions around 9.6 times in italy is exceptionally low. average pe is around 11, 12 times. it might be the right time to get into italian gains. >> the ftse upper row 600 is up
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3.5%. the ftse is up more than that. i can see the rationale for switching out of the bond into the stocks. >> yeah. there are options and it's about platinum. if you look at sentiment, it's really low. the number of upgrades versus downgrades, i think it's only 19% of people upgrading at the moment. that's an exceptionally bearish stance. that could be quite positive for the italian elections. >> just before you go, one view from the story we got on friday about the bundes bank report challenging the ecb guarantee, and where does this leave the constitutional -- is this actually there's no way they're going to allow the constitutional court in germany to upset the omt? is that how it should be viewed or is there more to it? >> i think if you look at the late judgment, we see the general pattern is that they approve it, but there were additional strings. so, for example, with the efm,
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which actually this is the second part of this -- the original complaint, they approved it and session rights for the bundestag. so, for example, for it to be activated, the bundestag, the german parliament, needs to approve it. that is the political road block. >> so that's the more important point. >> exactly. >> if it's an option between letting europe fail or getting together, one would view that they maybe put a -- okay. we assume. maybe not. i don't know. thanks for that. they might fudge it, as well, mighten they? james sticks around for a little bit more. pavel, thanks for joining us. has italy turned a corner or not? that's what we would like your views on.
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worldwide@cnbc.com, tweet, @cnbc wex or directly to me, ps@rosswestgate. we'll have announcements on that at 10:40 cet. oil prices have rebounded, but don't expect more anytime soon. and we'll take the pulse of the u.s. housing market ahead of today's pending house report. that's around 11:30 cet. sticking with the u.s., based on america will continue to dominate this week. last night, gdp numbers failed to match expectations. they revealed the u.s. economy expanded at a 275% rate in the first quarter.
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we have fomc meetings on tuesday and is wednesday. also on wednesday, we've got the latest manufacturing ism report and come friday, of course, we get the nonfarm payroll figures for april. the forecast is expected around 150,000 jobs to be added. in europe, meanwhile, the ecb takes its decision day on the road this month and a meeting in slovakia on thursday. more sign of inflation and weak economic data. many believe now is the time for central banks to cut rates, but they will wait. james, what are your expectations? and what does it do if they cut rates or not? because, i mean, it doesn't matter xkly. it's not either here nor there. i wonder what it does for sentiment. >> yeah. i suppose three-month yields are around 0.112%. it might have a larger impact on, say, mortgage owners that is around 78% property ownership there. so it could beef that.
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but overall, we had initially thought that it would be around a 50 basis point cut. givenlg merkel's stance, it's reminded us that germany should adopt a hard line against periphery europe and perhaps more likely a more -- for the bundes bank and maybe for a 25 basis point nos the 50 basis point cut. >> how much are the german elections messing things up a little bit? >> i think the outcome is fairly certain. but it's certainly from a hard line. that will create some form of uncertainty. and i think from a risk market perspective, it's likely to keep equities volatile until the election is over in september. >> in terms of another big week, we're in this period where we've been for the last three years we've seen the highs for the
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first half of the year in march and then april the last two years and a big correction. and we're coming into may wondering are we going to see the same thing again, is it time to lighten up? >> i think it's more reality. if you run the numbers in 1989, if you had held cash from may to september, and then held equity et or the rest of the time and annualized the terms with the market by about 1.4%. but now in the last decade, it's been around 1 is.7%. so yes, it's been proper selling property. i think there's a larger impact at play here. particularly the ecb. if they cut rates, they're going to have potentially a much greater impact than equities. i think that has probably a greater influence than sell in may and come away.
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>> thank you so much. we'll come back to you in a few moments. >> we're an hour and 20 minutes into the trading day here. around about 7 to 2 advancers outpacing decliners. down at the session low at the moment. the ftse 100 up around 2.2%. we had the dow jones up 11.1%. the ftse 1100 today, ftse absolutely flat. the xetra dax up 0.6%. the ibex is up 1.2%. the ftse has been a real underperformer this year, up 1.5%, outperforming today on the back of the government being put in place. a couple of stocks worth looking at today, asset solutions seen its shares down quite a lot. 21% plunging after the norwegian company says it's incurred losses at two of its major
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divisions. it's suffered increased costs at one of its north sea operations. stock boosted by a reported jump in first half revenues. the company announced an increased dividend payout. besides a couple of stocks, we are focused, as we said, on the italian debt curve today. they're both reopening. yields on the five, it says the last reopening have rallied around nearly 74 basis points and on the ten year today, we're currently trading 3795% on the cash ten year, so it's the last reopening of this particular issue, as well. yields have rallied some 60 odd basis points. we've done pretty well and say only about 60 basis points away at the moment. so an all-time low on the italian ten-year yield and that was around about, what, august 2005 or mid 2005. >> on the currency market, the real move has been the pound.
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sterling/dollar is 11.5542. we're up at two-year highs in cable. better than expected gdp numbers last week has boosted the pound once again. and the dollar is broadly lower, as well. dollar/yen, 97el 83. china is off until thursday. aussie/dollar, 1.0342. euro/dollar, can't get above 1.31. 1.3092 is still very much in the range. number of holiday necessary asia. let's find out what is going on. li sixuan joins us for the first time this week. >> thank you, ross. asian markets are trading mixed after that down beat u.s. gdp data. as investors eye up ecb is and set meetings later in the week, many sat on the sidelines as
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japan and china markets are closed for holidays. the hang seng added a modest 0.2% after the strong 2.4% value last week. but h shares, which are hong kong listed mainland companies shed at 0.5% today. among mainland banks, icbc and china construction banks ended in the green after posting solid first quarter results. but china coal miners were under pressure. china coal energy tumbled more than 6% as the company saw its q1 net profits down 38% from a year ago. china saw a decline in its q1 earnings. in south korea, the kospi down 0.2%. banks and ships owners met the losses, but automakers bucked the down trends. hyundai motor climbed 1.6% today after union workers agreed to resume duties. kia and ssangyong saw some good gains today. australia's asx 200 outperformed
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asia ending higher by 0.6%. banking shares ended up in the green on hopes they would report rising profits this week and next. but we faced the upside due to weaker commodity prices last friday. back to you. >> thanks for that, sixuan. we'll catch you a little late. spain's finance minister is heading to germany. if he's going to get knit help with his growth strategy? we'll have more when we come back. welcnew york state, where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses,
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outside the greek parliament yesterday, ministers approved an emergency bill paving the way for job cuts in over a century. the move means assets will approach 8.8 billion bailout in the emf. it was backed by the three-way coalition with 168 votes to 123. senior eurozone officials will meet today to approve the fed's bailout payment of 278 billion euros. and a french president francois hollande says he's confident he
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can weather results in opinion polls and that his policies will achieve results over time. what else is he going to say? today the president meets entrepreneurs at the palace. he's expected to announce a cut in capital gains tax for independent owners. the socialist party is in damage control mode over a party document that attacks angela merkel's selfish intransagainst when it comes to her push for greater austerity in the eu eurozo eurozone. the party says the wording will be removed. angela merkel played down any tension saying there was no change in germany and france working well together. any coalition has been ruled out with the consensitive cdu. the group says they'll race taxes on the rich and move
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further to the left in a bid to try and attract power. >> stephane is in madrid, joins us for more. for this discussion of growth strategies, is that presumably government stimulus? >> well, basically, spain would like the support from germany after the announced -- including the new growth target for this year under coming one and the new deficit target. that is the most important point. that's where spain needs the support from germany. the target is at 6% of gdp, which is much wider than the original plan. that was agreed with the european commission. the european commission indicated that it was about to give its green light, but a fourth comes from the european
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partners and, therefore, the region of om germany. the city in the south of spain. we'll have a press conference in the afternoon. probably we'll have the details of the private decisions between the two ministers. but they will make some comments about the spanish new austerity new budget plan regarding the target, the growth target for this year of 1.3%. but the good points is that government believes that the spanish economy will grow out of recession from the end of the picture.
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>> at the end of the fist quarter, the spanish unemployment rate was at 27.2%. that was a record low. and if you look at the target, 27.1% at the end of the year. so also this means that the government believes that the association has reached a record number that will not climb any further. >> i think the point being is that government numbers are worth it. thanks for that. james butler is still with us, as well. >> germany wants spain to become more like germany, i.e., become
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more competitive. and there are signs that that is happening. the labor activity is wisening and labor costs are falling. they are becoming more competitive and markets are very cheap. the problem is if you want to take advantage of that thing, you have to be locked into equities for perhaps a couple of years to take advantage of that. >> and right now, if you had to choose europe over the u.s., is there a debate going on about regional allocation? >> in are a very short time. it looks like the ecb is going to cut rates. that should boost european equities. but in the long run, i think the u.s. is on a stronger economic footing. so it's about timing. in the united states, it's certainly in the coming few months it's going to be quite clear that its retailers are going to hurt and the sequester is going to have an impact. if you look at the gdp data, it's certainly clear to us that
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it was about -- it was the payer tax cuts have an impact and cut in government spending. >> yovrn whether it's coincidence that's happening in recent years. >> it has been a pattern. james, thanks indeed for joining us. still to come on the show, european carmakers are struggling to keep their heads above water. with german brands like bmw and daimler particularly struggling. we'll discuss what they can do next in this competitive market.
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the fed meets first time this week and is widely expected to deliver eight rate cuts. another member of jamie dimon is in a sickle leaving jpmorgan. we're an hour and a half into the trading day in europe. european stocks on the front. first thing this morning. up by much for the ftse. it was up over 2% last week. just up 0.2%. the xetra dax up 0.5%. the cac 40 up 0.89% and the ftse mib up 1.6%. on the bond markets, italian yield, 3.96%. we have an atial auction coming up, they're raising up to 6 billion. they've reopened five and ten years and japan is closed today. we'll take that out a little later. the pound is doing pretty well. we're up to two-month highs against the dollar. there we go.
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1.5539 as you can see. and the dollar is down across the board. of mean we have, we have the bga saying the forecast in export is set to rise. exports in the u.s. rising up to 15% on the year. meanwhile, the italian prime minister was sworn in yesterday. sylvia berlusconi's angela defarno taking the position of former deputy minister.
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the new government is expected to partake in a confidence vote at 3:00 p.m. italian time today. and analysts appearing on cnbc earlier say confidence is returning in italy after the formation of this government, but they warn that hard times aren't yet over. >> the government knew why they could possibly get. the elections was a mathematical perfect. there was no government that was going to be formed from both sides of the coin. berlusconi's allies had to be in there and some very senior ones have been nominated. >> i don't think he's going to last five years, but it will be probably enough to have some reforms both in terms of change of the italian political structure and some economic reforms. also, they might have a stabilization of domestic demand
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and some structure measures to gain competitiveness versus the other european countries. >> and italy releases its fist quarter numbers at 1530 cet. the company is focused on buying the 41 % of chrysler it doesn't already own. at the same time, a slump in european car sales hit volkswagen and daimler learnings last week. sales in march with all european carmakers fell by nearly 13%. there's a sign of any improvement down the road. the counter is an automotive analyst at credit suisse and joins us for more. eric, thanks for joining us. for european carmakers, is it a case of trying to balance out a negative europe with sales and growth elsewhere in the world? >> good morning, yeah. absolutely. i would think this is really the order of the day. and you've mentioned fiat and volkswagen before. i think in both cases, certainly in the case of fiat today, since we're going to see an even
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stretch between the performance of this business in europe, it is rather scary, to be honest, and the performance of its operations in north america and in south america. and i think the biggest -- the european operations is the kan cash consumption in this business which we expect to reach by 1.5 billion euros in the past quarter alone. and, of course, when you start running through that much cash in one single quarter, dow need to ask yourself, italy and the italians take much reflection in the operation. >> yeah. i mean, as far as some theories, because it's interesting, talk to some of the guys that look after their brand. they seem to be putting@of focus into the maserati brand. is that a way of sort of -- do you see a big push for maserati coming? >> absolutely. fiat i think is starting to realize that the fiat brand, certainly in europe, is really being challenged. and what i think the country is trying to do in the absence of
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being able to take drastic measures on the cost rate, i think they're trying to use the upscale of things that they have. there's a big push on the maserati brand. they've also started talking about remeo in the attempt to break into the higher price point of the market. we've heard a lot about the maserati. here is a premium brand trying to expand its reach in the hopes to -- if you want to see another big, it's the face of the european markets particularly the fiat brand. >> yeah. are we in the process of still cutting capacity for european manufacturing in europe, eric? how much more has that process got to go through? >> unfortunately you haven't
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seen all that much exiting the system. a number like volkswagen is adding the capacity in europe because they're taking market share and adding capacity valuation with more production value. capacity exits from the likes of fiat, pewo, renault have been very, very slow and i think it's very surprising, the overall capacity in europe would have been decreased at all. the only visible efforts of taking the capacity have both come from ford and, of course, from saab. just over the weekend, we heard they're permanently shutting down operations in one facility by 2014. there are some signs that things are starting to move. but these are very, very slow movements. ultimately as a whole, they're upsetting what volkswagen is doing. >> right now, as you look at the european auto sector, eric, what's the pick? what do you do?
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>> i think despite a strong overall market environment it has been the right call. still, the quarter back to the operators that have been mentioned, fiat, i expect we'll see something similar in the first half, as well. on the other hand, we're seeing some share price collections from the likes of volkswagen and bmw. it's going to be the structure in this game. if you do see some form of improvement, particularly for something like volkswagen, this improvement is going to come with higher levels of capacity and higher levels of market share. ultimately, i think the european car market is not permanently broken. it is in a very, very difficult sports now. you can speak with the long-term winners, i think it's probably the best you can get here. >> eric, good to talk to you. have a good week. >> thank you very much. other earnings news we're following today, tnt express beat market expectations with
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its first quarter earnings and revenues. it was helped by its brazilian unit. the ceo said he still expects this year to be challengeling. >> segments such as health care and lifestyle are up. having said that, affect and tech is down. what we also see is the weight is down which st typically a bellwether of a weak environment. boeing has entered its shareholders meeting today on a better note. the commercial flight of the 787 dreamliner since the faa lifted the grounding of the jet went off without a hitch this weekend. youth openan airlines flew to nairobi on saturday. an executive on the flight said the boarding had a party-like
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atmosphere. the dream liner began test flights on sunday with commercial units on board. aaa and jal expect to resume normal flights in june. boeing stock in frankfurt down marginally. and another top executive is leavi leaving. the co-coo will become in charge of data. matt zames is seen as a strong candidate to replace the current ceo jamie dimon. he's been serving as the bank's chief investment officer since may. nano played a key role in getting the bank back on track after losses. he's the ninth executive to leave jpmorgan's operating committee in the last 18 months. jpm stock down 0.5%. also, a few m&a stories
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we're pointing out. we've got shares of indonesian leader btpm. it follows reports that mitsui banking is wrapping up talk toes pick up 40% of the company in a $1.3 billion deal. the japanese lender is expected to operate a 25% market price premium to private equity firm tpg capital for the stake. btpm is in indonesia's seventh biggest bank the. we have a potential merger in the drug sector running into a red light. they've been seek to go buy u.s. rival activist. now reports suggest the deal is on hold at the company's first term. both are products of previous mergers. activist changed its name from watson pharmaceuticals in january after buying actavis before it bought valeant and assumed its name. that's all terribly clear. meanwhile -- i'm sure it's clear for you. bayer health care says it's to
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buy women's health care concepted for $1.1 million. bayer says the deal should be complete by the middle of the year. it's part of a merger with procedure which offers surgery free permanent birth control. and british bank -- nothing to say there. british bank lloyd's -- in exchange for a 1..8% stake in the spanish lender. stephane rejoins us. i like to get our money's worth, stephane, when you're in madrid. >> so, ross, there is some speculation on the market about this m&a story since the earnings report. the ceo of the bank indicated that the bank was about to announce a medium or even small size acquisition. it's been consumed this morning, to buy the resale spanish banking operationes from
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lloyd's. that includes a 28 offices and mostly in madrid. also in the region of barcelona. they will pay the acquisition. it's going to give lloyd's 53 million shares. worth 84 million euros. that's about 1.8% of the capital. lloyd's agreed to keep these shares for at least one year, which is something important, giving the tension from the sannish banking market and some of those, depending on the upcoming performance would pay up to 17 million pounds on top of this transaction. depending on the mortgage margins in the future. after the prices, spanish banks are talking m&a again. perhaps it's a signal that the situation is improving. and it's also enjoying to see that the british bank is accepting as a payment shares from a spanish bank >> all right. stephane, thanks for that. catch you again later. still the to come, d.c.
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lawmakers are calling for action against syria over the use of chemical weapons. is it time for president obama to get tough? we'll talk about that when we come back. lets you talk face-to-face and share whatever's on your screen. blackberry z10 with bbm video. built to keep you moving. see it in action at blackberry.com/z10
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use trail ya's government has found itself caught in a new bind. the prime minister has confirmed there will be a 12 billion aussie dollar budget hold this year because of weaker tax revenues pes the high dollar as well as exporting jobs squeezes the profits of exporting firms with lower profits to these companies comes lower company tax going to government. we can't assume that this will change soon. >> as a result, australia is now expected to introduce extensive spending cuts in its coming budget on may the 14th. gillard says the cutbacks won't be so harsh as to stifle growth or hurt the needy. and while top money pouring into asia has helped the region to be an economic growth leader, the imf has seen some risk. boosting credit growth potentially to the point of
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overheating. the imf is cutting its asia pacific growth outlook to 5.7% citing slower growth in china. and the japanese prime minister shinzo abe is in moscow meeting with the russian prime minister. it's the first top level meeting between the two country necessary a decade. the two leaders have a pretty good laugh. they're trying to settle a long standing territorial dispute that has hindered trade efforts. japan is looking for a cheaper source of natural gas. rush na has plenty to export. south korea pulled workers out of kaesong after north korea withdrew its 53,000 workers and rejected talks on the industrial park. let's get more from seoul with chery kang. hi, chery. >> hi, rots. now, the last remaining 50 south koreans want to return to the south clearing out of the district complex at 5:00 p.m. korean time, which was about 48
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minutes ago. but the latest i hear was that they weren't able to do just yet because they haven't got the clearance from the north korean side and certainly keeping an eye out on what's going on up there. this looks like a stage for the two koreas to save their own faces somewhat and stay in control. now, north korea is start to go banning south koreans from entering the business park about a month ago since south korea suggested working level talks and north korea rejects the talks. and now south korea is pulling all of its people out of the park. this leaves virtually no trace of inter-korean cooperation at this point. we've had such efforts in the past with a joint tourism business at a north korean mountain, but that's been suspended since 2008 now. and we have another pressure point that north korea has in its hands. a korean american tour operator whose name is known to be dengt
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bae has been detained in north korea since december for what north korea calls trying to overthrow the regime. and north korea says he will face judgment soon. so that's another development that i need to keep an eye out. so, ross, basically, you put kaesong and the detention of another american together and we get nothing new and fresh. north korea, that's very unpredictable and opaque. now back to you. >> oh, yeah. chery, absolutely thanks for that. a reminder of what's on the agenda in asia. japan's markets reopen and china and vietnam remain closed. we get a slew out of march data from japan. that includes industrial output on retail sales. a couple of large banks report returnings in australia. anz and ocbc. talking of the states,
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capitalmakers are urging the oh bam in administration to take vigorous actions against the assad regime on suspicions that chemical weapons were used on the rebel army. with pressure now mounting on the white house to take the cuts, republican senators calling for military intervention without u.s. troops on the ground. joining us for more is david reese, director at ihs james consulting. david, thanks very much, indeed, for joining us. this is the proposal intervention without troops on the ground. how would you practically go about that? >> to be honest, i don't really think that's a seasonal solution to the problem we're facing. at some point, the weapons mass destruction program was going to have to be dealt with. there's not a foreseeable future where post assad regime continues to have chemical and biological weapons. so at some point, some international presence or u.s. presence is going to have to be there to deal with the weapons of mass destruction. >> that seems to be opening up a
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whole hornest's nest of issues. >> it is. as they're trying to withdraw from afghanistan and are completing the withdraw from iraq, this is the might mayor situation where any kind of successful outcome is going to require at least some people on the ground. >> mccain says obama went too far with his red line comment because he drew a red line about chemical weapons. that gave a green light to do everything else but. is that fair or not? >> i don't think it's terribly fair. again, certainly senator mccain has a lot of problems with things that president obama says. i think it was certainly the case that the obama administration has less interest in getting actively involved militarily in syria than some parts of the republican party, including senator mccain. but it's really -- you can't do the right thing in this. there's no real easy answer out of this. so i think saying that that red line was a problem and now that
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it's been crossed is really kind of the crime over spilled milk at this point. what we have to deal with is the current situation and the regime going forward. >> how does this situation then evolve right now, david? >> certainly we're seeing attempts too try and create an international solution to this. but it's quite clear that russia and china ma have no interest in active involvement in the u.n. so it's probably going to come down to a nato action or even a u.s.-led action to deal with this situation. and it will be very interesting to see what the obama administration is able to do with western europe as all these countries want to avoid a grouped conflict significantly. >> does that mean they -- actually, all that happens is the civil war continues and the opposition force gets armed by the west? >> i think the tough part about that is that one of the main fears out of this is that while they're doing that, they can't control the weapons once we get
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into the opposition. some jihadist elements can't control the elements and pass them to hezbollah and parties and they would end up being used against western europe or the united states. >> there is no easy answer here, is there? >> there is not. >> david reese, from ihs james consulting, thanks for that. it was six months ago today that hurricane sandy slammed into the northeastern u.s. flooding homes and businesses. this is a video of a ground breaking ceremony in new york that a two-mile boardwalk has been completely replaced. sandy affected people in the northeastern states and cost $21 billion in damage. it's the second costliest u.s. storm after hurricane katrina. makes me want to go there. oscar winner daniel day-lewis is to play barack
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obama in steven spielberg's next venture or not? president obama rounded off the evening introducing a poof video featuring the director of lincoln. >> in the middle of the night, it i i woke up and hit me. obama. the picking the right actor to play obama, that was the challenge. who is obama, really? we don't know. we never got the transcripts. so i needed somebody to dive in and really barack obama become. and it turns out the answer was right in front of me all along. daniel day-lewis. >> yeah, i was. what? what? let me be clear about this. it's the challenge.
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>> at least we had daniel to play obama, we had to get the rest of the team. i think we have some terrific performs. >> working with a ledge ynd like daniel is intimidating. without him, i never could have played joe biden, literally. >> trying to understand his motivations. why did you pursue health care first? what makes him tick? if i were him, i'd be mad all the time. but i'm not obama. i'm daniel day-lewis. >> in mind of our viewer exchange today, italy has a new government. get in touch with us by e-mail, worldwide@cnbc.com, tweet, @cnbcwex. still to come on the show, will the easy money keep on flowing, as well? we'll discuss what we can expect from the fed and ecb ahead of
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this is cnbc's "worldwide exchange." we're into the second hour. here are the headlines today. the euro on the ten-year bond falling below 4% ahead of a ten-year auction. italy swears in its new government. they face a confidence vote today. stocks are in the green. central banks setting the tone for the week. the fed meets first. all eyes will be on the ecb. could be deliver ago rate cut. and another member of jamie
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dimon's enner circle is leaving jpmorgan. the latest shake up since the bank's massive trading lowses. . >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. all right. if you're just joining us stateside, welcome tort stat of your week on "worldwide exchange." not a bad week. last week, we saw slim gains. we are called a little higher. dow up 42 points. the imply opening on the nasdaq at the moment is some seven points and the s&p is called up 5 points, something like that. the ftse cnbc global 300 is up 0.25%. right now, it's a fairly quiet start to the week, just up 4 points on the ftse 1100.
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the ibex is up 1.3%. the ftse mib today is outperforming, 11.6%. it's only been up about that amount for the year. we focus in on the italian debt market today. we've been auctioning up to 6 billion across five and ten-year bids. y50e8dz have come down on the five year. the last reopening was a five year down around 74 basis poi s points. we're only about 60 basis points, a little less now, 60 basis points away from the ten-year from the record low which we hit in 2005. the yield at the moment, 3.96%. as far as the rest of the yields are concerned in europe, take a look at gilt. spanish yields 4.23%. we did see them come out, again, downgrading the growth forecast for friday. so the year now, 1.6% is the contraction we're looking for. and as far as currency markets are concerned, dollar is weaker
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across the board, but pound was the mover last week, 1.6% against the dollar. currently at 11.5517. dollar/yen, 97.74. japan is closed today for the government holidays in china. china is closing sales today. aussie/dollar, a little firmer. very much in the rakes. so that's why we stand here in europe. to recap that asian session, sixuan is with us out of singapore. >> thank you, ross. asian stocks looking a bit mixed today as lower than expected qr reading on sentiment. volumes were right at the region's two big markets. china and japan are shut for public holidays. in hong kong, we saw don't gains in earnings shares. coal miners were under pressure.
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china coal energy tumbled over 6% as the company saw its q1 net profit down 38% from a year ago. china shenhua saw its earnings. banks and ship owners led losses, but automakers stuck the down trend. hyundai climbed 11.5% after union workers agreed to resume weakened duties. kia and ssangyong motors outperformed today. the miners capped the up side in that market due to prices last friday. back to you. >> sixuan, thanks for that. data from the u.s. will continue to dominate news flow this week. last friday's gdp numbers failed to match expectations, revealing
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the u.s. economy expanded at an annual rate of 2.5% on the quarter. little is expected in the way of policy change. the latest pmi northbounds are revealed. the forecast is expecting around 150,000 jobs to be added in april. at the same time, the ecb will make its decisions on thursday and friday. there are many who believe now is the week for the banks to cut rates. is it going to happen? mark joins us now. >> what do you think, then? the ecb, are they going to stand and deliver? >> it isn't in the balance until you think germany is hard to get. however, the balance is slightly to favor the rest of europe,
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finally say, look, we waited a long time for this rate cut. at least give us that. it's already well priced by the market. >> how about sentiment? >> the key thing is it will be helpful. to the economy, it's inconsequential. we've had the german finance minister and others, people pointing out that it will not do anything major. what could be, much more interesting, is whether or not they come out on s&e lending, following what we've seen in the uk. some form of buying corporate bonds or he's had his think tank. >> they talk about alternative measures. and i would like to see something, at least an outline of where they're thinking, where they're going. we'll get the markets on a lot more confidence. >> how much focus have we put on
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this friday report that the omt was exceeding the ecb's remit? is that something to say -- to take the picture so or to get seriously concerned about. >>? >> i think it's kind o amazing that the bundes bank missed it. yes, this was very blunt and to the point. >> just remind people, the reason europe stabilizes is because of the ecb/omt thing. >> absolutely. >> is it challenged, it's a big deal. >> yeah. i think the market is of the viewpoint the constitutional court has been quite friendly. and it's unlikely that the british bank will get its way on this. and what i think is quite scary, though, and that's why draghi has done an excellent job is that if the about you ndes bank
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does quite badly, that will give a lot of discontent the whole time. if ever to be kept just within the boundaries here -- >> and i think the manager of manchester city or chelsea. indeed, right? that's the trick. fair enough. talk about italian man city. italy's prime minister -- i don't think that's much of a leg. but anyway, his new cabinet was sworn into office yesterday. the new administration is comprised of technocrats to the center right and center left. angelina taking the position of pm and interior minister. the former deputy will be the economics minister. the new government is spec'd to part a confidence vote later today.
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at the same time, one police officer remains in serious condition in hospital after a gunman opened fire in a square near to where the ceremony was taeg place. another officer was already injured. the gunman says he was targeting politicians. italy may have made it out of its political dead lock, but rating agency moody's still thinks the company might end up asking for a bailout. this is according to the senior officer at moody's. and we've got an auction today, as i mentioned. the italian treasury still looking up to 6 billion euros in paper. results are due any moment now, really. in the next five minutes, we'll probably get those results. so we'll look at those. but it's worth pointing out ahead of that, yields are only about 60 basis points away from the all-time low. the question they're asking today for a young and diverse
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cabinet, has italy turned the corner or not? e-mail us or tweet. other stories we're looking at, we've got another top executive at jpmorgan leaving. it's the latest management shake-up following the massive trading loss. the chief operating officer will become ceo of pavement processing firm data. matt zames will if i fully resume the chief operating officer role. he's a top candidate to currently replace the current ceo jamie dimon. he is the ninth executive to leave jpmorgan's operating committee in the last 18 months. jp morgan chase stock is down 0.5% in frankfurt.
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and a potential merger in the drug sector has run into a red light. valeant is looking to buy actavis. the two companies have failed to agree on terms. both of these companies are products of previous mergers. and valeant was foremanerly biovale before it bought valeant. we'll see what the new names might be if the deal gets through or not. and president obama is expected to name three more members of his second term cabinet as early as today. reports say chicago real estate mowing ul and obama 2008 fun raidser penny pitsker will be the new secretary. and white house deputy security adviser michael foman could be the new u.s. trade
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representative. anthony fox, the mayor of charlotte, north carolina, is in line to replace ray la hood as secretary of transportation. still to come, italy is tapping the markets for 6 billion and 5 on a ten-year issue. we'll talk about the results of that and lit be a baptism of fire for the me premier? where cutting taxes for families and businesses is our business. we've reduced taxes and lowered costs to save businesses more than two billion dollars to grow jobs, cut middle class income taxes to the lowest rate in sixty years, and we're creating tax free zones for business startups. the new new york is working creating tens of thousands of new businesses, and we're just getting started. to grow or start your business visit thenewny.com
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all right. we have results out in the eye toolan auctions. the five-year, 2018 btp yield 2.84 versus 3.65 on march the 27th as well. just looking to see if they've done the -- if they've raised the amount -- they were looking for 6 billion in total. indeed, they did raise tamt they wanted. let's get some reaction with marcus. yields continue to fall. >> they do, indeed. >> did we hit the bottom? >> probably not for italy. perhaps it's spain which would make italy look extremely cheap in that context, on a relative basis, anyway. so i think the ten-year is up.
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it's really hard into this auction. though the coverage isn't great, it's slightly better than last time. >> 1.4 versus 1.3. >> the market would view this as being quite a successful auction considering that it rallied so hard into it. >> the five year was cheap relative to the -- the ten year, i think they're just cheap relative to shape. >> they have narrowed a lot against the core. and we're only about 60 basis points away from the all-time low for the ten-year italian debt. why sthant getting rich? >> it is rich, but it's a relative gain against spain and spain has -- they they were they would have a 15-year auction. it got postponed and there was a ramraid in the sense that a lot of the large insurance companies and long-term investors decided that they wanted to buy the 15
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year. and that caused spain to heighten dramatically. now with the advent of new government, average age around 40, a technocrat for finance minister, the markets have no real reason to look at italy again. >> so does that mean italian yields go lower or spanish yields go higher? yes, okay. >> yes, i would imagine exactly that. >> it's a key relief here that we've got government and we haven't gone into another -- i suppose the consensus might have been taking more elections. >> indeed. and i think we probably still are in italy. this is the short-term government is to get through the electoral reform passage and we'll see how, really, the pdls be kept on side. we heard from the pdl that are expecting this new government to enact what those party campaign on which is a -- essentially a repeal of the tax levy. this would cause etps some
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problems. and i wonder if it could actually get that -- >> how about the justice minister that may be? >> we have the deputy prime minister and i'm sure his beef is to make sure that there are no unnecessary legal -- >> and that surely -- i don't know, but i'm guessing that might be one of the key negotiating points. >> marcus, thanks very much for that. still to come on the show, brent crude dipped below $100 earlier this month. our next guest is charting 115 by the end of the year. don't expect a rebound to be easy. we'll find out why in just a few moments.
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as far as futures are concerned, we're implied higher today. the s&p 500 up 4 points. the dow jones up 43 points and the nasdaq up 6.8. yields on the ten-year at auction forming to their lowest funding costs since october 2010. the ecb up about ten points for the all-time eye toolan yields. yeelgz coming down on the ten-year, 3.94 in auction from 4.66 and on the five year, 2.8% yield from 3.63 in march. it looks rich, but there may be further to go because of the value in spain. and as far as quantities are concerned, brent having its biggest weekly ride in november. currently on that mark, although
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it's down on the session, nymex is firmer at 93.25. and gary clark will talk to us more on his thaults thoughts on oil. gary, good to see you. >> hi. thanks for joining us. >> that rebound last week, what was that down to? >> so, really, we've seen the war in syria and also the growing evidence of potentially chemical weapons used in syria as being feeding into the risk premium and in crude oil prices. and that's really been driving the rise in brent on fears of general instability in the region. that really compliments any intervention by the u.s. or the west in syria at a time when they're trying to come to a diplomatic solution over iran's nuclear program. >> on a demand basis, you look at the coppers space and you see
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the slowing, it's very different. >> absolutely. the commodities space is being hit by fears over weakening growth in the u.s. as the sequestration bites. also the slowdown in china is not looking particularly good. across the commodity space, we're seeing supply rise. with the oil, you have to factor in geopolitical tensions. we haven't seen a diplomatic solution yet to iran's nuclear program. so these upside risks which i think are yet to play out this year. >> so where do we go now then? what happens? you've got those two conflicting points absolutely. i mean, i think i'm bullish on brent. i think at the moment you're seeing we're going to a large period of refinery maintenance, may/june is typically a period of very low demand for crude oil. but crude oil demand will pick up again as we start moving into the summer. we're going to see continued
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negotiation over iran's nuclear program. tensions are going to unrest. i think there's a lot of upside drivers. we could see brent crude at possibly 1 month 5 by year-end. >> does it spread between brent and nymex widen out again? >> no. i see the wti widening. it's not only solely a result of the upside pressures on the benchmark that you're seeing the wti benchmark suppressed. we've seen pipeline capacity additions, which have brought more oil out of curbing. ultimately, the oil flow is going out of curbing, outpacing, outflows is going to keep that benchmark sa suppressed and lead to wti widening. >> and what forecast has rge got for the u.s. economy and how that plays into your wti forecast? >> so, i mean, crude oil will
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come under pressure for the next couple of quarters. we see growth in the u.s. weakening over the next couple of quarters as the sequestration. so that's going to hit crude oil demand. but we see growth rebounding towards the end of the year, effectively growth in the u.s. bottoming out this year. >> all right. good to see you. thanks indeed for joining us. just a reminder what's on the agenda in the united states, we've got march data out at 8:30 eastern. it's forecast to rise 0.4%. at 10:00 a.m., we've got march spending home sales. we'll talk about this, as well, in a few moments. that's expected to rise 1%. as for earnings, it's a big week of earnings today. we'll hear from today chrysler, lowes, hartford financial, herballife, and newmont mining.
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still to come on the program, the spring selling season is in full swing in the u.s. home sales for the most part have been rising in recent months. we'll get a pulse check of the market from the chief economist of the national association of home builders. more to come on today's "worldwide exchange." the recent increase in cafeteria prices is not cool. when you vote for flo, we'll have discounts. ice-cream discounts. multi-cookie discounts. pizza loyalty discounts! [ kids chanting "flo!" ] i also have some great ideas on car insurance. [ silence ] finding you discounts since back in the day. call or click today. i like her. how old is the oldest person you've known?
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this is witness stand witness stand. a reminder of the headlines today. stocks in the green. central banks likely to set the tone for the week. the fed meets first. all eyes will be on the ecb. it could be delivering a rate cut this week. another member of jamie dimon's inner circle is leaving jpmorgan. and a new prmt in italy, enreacho aletta made up of central left members, berlusconi loyalty and technocrats, including seven women will be sworn in today. spanish yields hit their lowest levels at auction since 2010. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe.
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>> all right. if you've just joined us stateside, thanks for joining us today. let's show you how we're implied right now for the open after not a bad week last week, although friday watts tepid. the dow is currently called up 40 points at the hope. we are currently implied 5.5 points roughly for the nasdaq is implied a little less than four points higher on the open. the ftse cnbc have been closed. the ftse 100 gained last week of the.2%. right now, it's a little flat, basically. the ftse mib up 1.3%, the ftse mib has been an underperformer this year. outperforming on the basis that we have a government in italy
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and we haven't had to face new elections. mean while, another member of jamie dimon's inner circle is leaving jpmorgan. kayla tousche has more for us. good to see you. i hope you had a good weekend. >> thank you, ross. thank you. this is the latest high profile departure since the bank reported its massive trading loss, which was nearly a year ago. frank is leaving to become the ceo of pavement processing first data. mat zames will solely become the coo. that unique was responsible for last year's london wales trading losses which traded more than 6 billion. he and ceo jamie dimon have known each other since the 80s. he helps with the integration of bear stearns in washington
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mutual during the crisis. in 2011, dimon topped him to head up morgan's business. his seat on ta committee lpt be filled. it is the latest move in a major overall of the bank's executive suite. many members of the team helped the company dodge huge losses during the recession is now gone. those include the incident r former head of corporate government regulatory affairs and the head of investment bank. now paul compton will become chief admin traitive efforts. a lot of titles that are in a long time in jpmorgan. the firm announced losses last year. since then, the stock of jpmorgan has risen 32%.
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>> so it's another management change there. jamie dimon is not going anywhere for a while, though, is he? >> no, he's not going anywhere. i asked dimon about this on the company's latest earnings call. he bought an office in his office building. many speculated about what this was for. he said it was more for his wife than for him. but in a company this big, i am told that it is either the job of matt james or michael vacenaugh at this point it is the job of either of those two men. good opening statement you. if you want to come over here, kelly, you can come and -- summer is here now, right? i think we should do that.
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though what does summer mean, rain every day or five days a week? >> no. a little less than that. we'll work on that. >> we should talk to the man upstairs. >> good. thanks. have a good day. now, u.s. investors get a fresh snapshot of the housing market today as pending home sales are released at 10:00 eastern. they're forecast to have risen 1% in march. david, good to see you. i know it's early. appreciate it today. how much of a quarter have we turned? how real is the recovery? >> i think the recovery is real, but we're only about halfway around the corner. we're about halfway to our normal production level. we're about halfway to our normal sales level. so we have a long way to go to get back to normal. but we are start to go move in a much more consistent fagdz than we were, say, this time last year. >> what's the issue with keeping the coverage from being morrow
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bust? >> yeah. there's a whole lot of issues, unfortunately. i think leading them is credit. credit is still very tight, particularly for home buyers but it's also tight for builders. as a result, their inventory is very low. confidence is still coming back, but not completely back. employment is still slow to recover so, of course, you're not going to go out and buy a house if you don't have a secure job. and then we have some annoying things like it's difficult to get amaceals at the same level of prices. they haven't caught up with price krss. builders are facing significant changes in material prices. so it's costing more to build a home. yet the other side of that, consumers are very reluctant to pay more so they're getting squeezed. and we're having trouble getting the infrastructure of the housing industry reconnected, getting labor back in, getting
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lots prepared for homes. so there's a lot of just restructuring from this devastating recession that housing has been through. >> where is the construction the healthiest? you know, what sort of -- is it apartments, homes? what's the thing that's being most -- yeah. the apartment industry is much healthier than the single family industry right now. in fact, it's merely up to the levels it was producing in the early 2000s, a time when you might consider the last reasonable normal period. and that's due to the fact that most of the young families that had been form are becoming renters, largely due to the thakt that it's hard to get a mortgage. they're going right into rental and, therefore, the rental properties are doing very well. >> so i guess the investment market potentially is quite
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healthy if renting is good. >> yes. the investment market is very good, including buying single family homes that had been foreclosed and gone through the foreclosure process and are coming back out at rentals. so that is another very important investment component to housing right now. >> since though rs housing starts, what kind of reminder are we going to get this year over last? nowhere near the fiery start we used to have after a recession like this. >> good to see you. thanks very much, indeed, for that, gary cross. >> if you've just tuned in, markets are starting in anticipation of more easy money from the u.s. and european central banks. jpmorgan has heard heard is
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today feeling better. the first commercial flight of the 787 dreamliner since the faa lifted the grounding of the jet went off without a hitch this weekend. this is the flight. ethiopian airlines flew a 787 to nairobi on saturday. a boeing executive is apparently on this plane says the boarding had a party like atmosphere. there might be a number of reasons for that. the dream liner's launch company, meanwhile, what japan's airline was on board ana and jal now both expect to resume normal flights in june. boeing's stock in frankfurt is pretty flat. whemeanwhile, moody's and s settled lawsuits over ratings of
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companies. morgan stanley has also settled. investors including the moody's and sap collaborated with banks to assign high ratings of the investments even though 67 of the underlying collateral was subprime mortgage debt. moody's and s&p, moody's is flat and mcdraw hill down 1.3%. it was six months ago ta hurricane sandy slammed into the northeast coast in the u.s. this is video of the boardwalk at the beach has been replaced. this was the second costliest u.s. storm after hurricane katrina. and on a more serious note, president obama is expected to name three more members of his second term cabinet as early as
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today. reports say chicago real estate mogul and obama 2008 fund-raiser penny pritska secretary. she had been in the running for the job in the president's first term. the white house deputy security adviser michael foman, key to get can congress to approve trade deals with columbia, south panama will have the new trade representative. anthony fox is in line to replace ray la hood as secretary of transportation. so european stocks are start to go week in the black. we'll talk more about what's on investors minds today and this week when we come back. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ge has wired their medical hardware
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with innovative software to be in many places at the same time. using data to connect patients to software, to nurses to the right people and machines. ♪ helping hospitals treat people even better, while dramatically reducing waiting time. now a waiting room is just a room. [ telephone ringing ] [ static warbles ] [ beeping ] red or blue? ♪ red or blue? ♪ ♪
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oscar winner daniel day-lewis is to play barack obama and steven spielberg's next film venture or not? president obama used the annual white house correspondent association dinner to spoke fun at himself and his critics. he introduced a spoof video featuring the director of clinic. >> in the middle of the night i look up and it hit me, obama. i mean, the guy is already a lame duck,ve why not? picking an accounter to play obama, that was the challenge. who is obama, really? we don't know. we never got the transcriptes and they say he's kind of aloof. so i needed someone to dive in and really barack obama become. and it turns out the answer was right in front of me all along. daniel day-lewis. >> hello, ohio! i'll have your become. what? what? let me be clear about this.
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at least we had daniel to play obama, we had to cast the rest of the team. and i think we've got some pretty terrific performs. >> working with a legend like daniel is intimidating. without daniel, i never could have played joe biden, writ rally. hi, i'm joe biden. the hardest part? trying to understand the motivations. why did you pursue health care first? why don't you get mad? if i were him, i'd be mad all the time. but i'm not allowed. i'm daniel day-lewis. >> pretty good. i think we think that's pretty good. u.s. futures, meanwhile, i'm looking forward to david cameron doing a similar spoovr now. meanwhile, u.s. futures are being called higher. the dow is currently trading
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about 36 points above fair value. we're implied up by some 5 points on the nasdaq and the s&p 500 at the moment is implied up 3 points. a lot lower than where we were half an hour or so ago. the ftse flat down 5 points. xetra dax up 0.2%. the ibex up 1%. it has come off earlier highs, as well. so what are investors to do at the start of this trading week? here is a recap of what some guests have told us today on cnbc. >> there is a fear that the political stall we had seep over the last couple of weeks is now bullish. you saw that rather positive effect on the euro this morning, as well. so that's the fourth year, as well. >> you can't ignore the outperformance of the peripheral bonds, either.
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we like the lenders being long say germany and italy and short markets like france. there is a relative view rather than looking for one in an outright shift in direction in the year. >> where they can restructure them, or simply return cash to shareholders. the cash return is another very attractive prospect for investors. >> and we had an auction today, as well. it's the italians face the -- the new italian government face aes confidence vote and the auction was pretty well received. bid to cover ratio was a little higher in march. they raised 6 billion across the five and ten years. yields have come down, as well. the five-year auction yield came in at 4.84%, lower than the cash rate you might expect. you always get a bit of a discount. it was 3.63 in march. the ten-year auction yield, 3.9
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the 4. kind of trading at 3.96 on the cash market. again, lower from the 4.66% that we had in the march auction, as well. so all received fairly well. it's worth pointing out those italian ten-year yields at the moment are less than 60 basis points away from the all-time low on italian debt yields, which was in 2005. so the downward pressure on italian yields continues. although they might look rich as we head the markets out early uup might seep a spread whining in in spanish and italian yields. the five-year on the curve looked cheaper. and this all comes as the prime minister and his new cabinet were sworn into office yesterday. the new administration is comprised of politicians and technocrats from the central
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right and central left. the former deputy of italy's banks will be the economics minister and the new government is expected to pass that confidence vote. it takes place at 3:00 p.m. local time in italy today. at the same time, one police officer remains in a serious condition in hospital after a gunman opened fire in a square near to where the ceremony was taking place. another officer was sdwrurd. the gunman said he was tagging politicians, but italian police say they consider the incident to be an isolated one. and italy may have made it out of his political dead lock. the ratings agency moody's still thinks the company might end up asking for a bailout. speaking to the italian newspaper, larry publica. and a reminder of what's on the agenda in the u.s. today, march personal income is out at 8:30 eastern.
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it's forecast to rise 0.4%. at 10:00, we get march pending home sales, expected to rise 0.1%. look for numbers today from chrysler. it's still own ed by. so ben lichtenstein, president of tradersaudio.com, pen, a softer sort of friday after a fairly good week. how are we set for the start of trade this week? >> much softer. we're poised for a good rally here. the market is holing bid levels for the most part. still short again of that 1590 level. but really, right now what we're looking for is we're looking for a close up about 1564 in month to continue that strong push that we've been seeing basically since june 2012 we've been strayed straight up. i think we've seen one month there was a bit of a pullback. right around september, october,
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but for the most part, it's been higher highs and higher lows and that continues to be the case. >> we've got the fed earnings report. acb, as well. what's going to be a pick of things to focus on? well, we're going to be watching to the fed coming up later in the week. obviously, there's a lot of traders that are already looking forward to friday for the unemployment data. but, again, for the most part, we're looking at technical levels. you have to focus on the extreme and the balance that's been forming in the s&ps. 1530, that's the support. really, really what we're watching here is the dollar, as well. if you look at last week, specifically thursday we saw that strong run up in the dollar. that was associated with the strong bid in the stocks. normally, that's not what you see. normally, we're used to seeing the dollar come off to the down side while stocks are rallying and the dollar rallies while stocks sell off. so this correlation associated with the stocks and the dollar is another thing traders will be eyeing this week. but really, the numbers, a couple technical levels, we have
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to keep an eye on gold, as well, as it makes an attempt to get back to that 1500 level. clearly holing last week with some conviction and the yen as it continues to hold close to the level. but the dollar for the most part has had very little energy, very little conviction below the 83 level. a lot of traders we've been talking to are waiting to see what type of conviction and energy would show above that level. >> yeah. because that -- a lot of people talked about the dollar getting stronger. and with stocks rising, it becomes more of a growth story. we're still waiting to see whether that might pan out. >> yep. well, it has been holding good levels. again, for the most part, the one thing we haven't seen is a breakdown of the currency and the high correlation there. the euro/currency holding above this 130 level. so it coincides with 1.30 and the 83 level on the dollar. >> thank you, my friend. that's it from chicago and that's it today from "worldwide exchange." "squawk box" quicks off in just
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good morning. the day's top stories, a departure from game nigh dimon's team, one of the bank's operating officers are leaving. the faa says furloughs have been halted and economists are in charge this week. among the big events in the coming days, decisions from the fed and the ecb. also, no. is it jobs friday? >> it is jobs friday. >> i don't -- we just had one. it's monday, april 29th, 2013. "squawk box" begins right now.
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good morning, herb. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we've been watching the u.s. equity futures this morning. right now, it looks like we see some green arrows. those dow futures up about about 35 points above fair value. s&p futures are up by 3.3 points. in our headlines today, boeing will be holding its annual meeting today. on friday, ethiopian a lines became the world's fair vifrtier to begin flying 787 ddz dreamliner. it has cost boeing an estimated $600 million. and speaking of the skies, if faa says that it has suspended all employee furloughs. it's expected that the country's air travel system will return to normal. well, we hoped by
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