my account app. welcome to "worldwide exchange." surviving the answers that congress was looking for, mary barra set to appear for a second time on capitol hill about gm's massive recall. >> i cannot tell you why it took so long for a safety defect to be announced for this program, but i can tell you we will find out. and investors continue to pull money out of world's biggest fund as more than $3

billion outflows were posted for last month. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. hello and welcome to today's edition of "worldwide exchange." it's hump day. we're going to be halfway through the trading week during the program. as for where we stand right now in europe, one hour into today's session, advancers just about outpacing decliners, the dow jones stoxx 600 by 5 1/2/4. some kind of ratio like that. the ftse 100 yesterday was up, what, 0.8%. we're up at a three-week high on the ftse. today, about 0.1% lower. the xetra dax is up 0.2%. the cac 40 is flat as is the the ftse mib, as well. we take a look at bond yields. the 30-year up the yield at

3.62%. the ten-year, 2.76%. auto sales surging from march a year ago, the ism factory, just shy of what we were looking for. and we'll keep our eye on gilts, as well. the construction pmi is coming out around 28 minutes time. on the currency markets, the yen has been down to a one-week low. we've been down at 103.93. stocks are up. the yen had been benefiting from safe haven flows. plus there's mounting speculation the bank of japan is going to act at some point post sales tax hike, as well. it has been up at these four-month highs of 93.10 on hopes of more chinese stimulus. euro/dollar, 1.37 was the

one-month low we hit on friday. we've been looking to see if we get anything out of the ecb tomorrow. that's where we stand right now in trade in europe. what about the session in asia? sri has the update for us out of singapore. hey, sri. hello, ross. let me pick up on what you were talking about in regards to the japanese currency. that weaker yen against the dollar, certainly constructive for the equities market helping the exporters and helping boost the nikkei. we're up by 11%. but we were up much higher during the trading session by almost 1.7%. but a little bit of giveback towards the close. but still, this the is the highest close since around march the 11th. there were some stock-specific stories i wanted to talk to you about. that stock was up by almost 19% during the session. that's because it jumped on this report that apple is in talk toes buy a stake in its chip

design unit. elsewhere, a fairley reasonable day for greater china markets. interesting developments with regard to the data, to the pmi, that's fast in the backward mirror down the rearview mirror. still, the markets are getting a lot of support from a lot of talk that we can see some stimulus, what form it will take remains a topic of debate. but in the meantime, it was really a property stock that led the way higher on the shanghai market on the hang seng, as well. that was after the state media reports of that home ownership restrictions may be relaxed in some cities. worth pointing out that the hsi, the subindex was at its highest since mid-december. we get the feeling that all these markets are in something of a holding pattern and they're treading quite cautiously. so we get a bit more clarity on where we stand with the u.s. data, of course, with the nonfarm payrolls at the the end

of the week, ross. >> yep. big data week to get through. sri, for now, thanks. catch you a little later. we sort of match today. that's good. you got the memo. >> great minds think alike, sir. >> they certainly do. and if i find a great mind, i'll let you know. and in fact we're joined by one now, andrew goldburg from jpmorgan asset management. good to see you. >> you, too. >> stocks up at a three. week high here in europe. we've climbed lots of worries. kind of flat, though, on the year. >> yeah, kind of flat. it's funny, going into the year, we're still there. but overweight relative to the safe stuff. the tart of the year didn't go that way. it's important to remember that's going to happen. it's okay. this cycle is going to be a little different with this bull market in that previous fair value within.

this cycle is going to go well beyond short value. you've got very little competition in the form of fixed income in terms of what those rates are offering. i think the market has plenty of room to run. i think this will go on two or three more years. >> you shouldn't -- you're not getting assets a long way beyond fair value. you're always at risk of a pullback. >> there is definitely a truth to that. one thing to remind you, the markets are more susceptible to a shock. there is no doubt that future returns can be well predicted generally based on valuation. if you buy cheaper stocks, the future returns are going to be

better. if i buy a stock down here and you buy it down there, no matter where the market goes from here, it will be better. consumers are looking better. i would ride this wave. we're tolerating the wiggles. >> how are you riding the trends? >> well, the best way to be invested is still in overweight risk assets in particular. we like the u.s. stock market. the other way to do it, and i think it's important, is there has to be some rotation within that the equity allocation. in our view, it's time to -- well, i think you still have to be rotating towards the cycle stuff that's going to benefit from a stronger consumer and a better economy. >> stick around. good to have you on board. more to come from you. meanwhile, the kremlin has threatened to retaliate after it says jpmorgan blocked a payment from a russian embassy. the u.s. bank prevented the

money transfer from the embassy in kazakhstan because it's part owned by bank loftia. in a statement, they said any act is likely to lead to countersteps. this comes as capital outflows from russia could hit $100 billion this year, while the world bank has warned that the russian economy could contract by 11 is.8%. the ukraine crisis led to a sell-off in the micex and it currently lags the market index. geoff has landed in moscow and he sends this report. >> as the russian business starts to count the cost of the ukraine crisis, the latest comments from the central bank downgrading growth estimates for 2014 to around 1% or less will not be welcome news. this comes on top of the news from moody's overnight that they

have put ratings on negative review for moscow and st. petersburg. 2014 was always going to be a slower economy, but putting the ukraine crisis on top of that means that confidence about investing in russia has also been damaged, which is why some of the fdi outflow figures now look in the hundred billion dollar range for full year 2014. whichever way you look at this, russia is going to have a difficult year. the ukraine crisis is only going to make things worse here. >> that was geoff in russia. meanwhile, european lawmakers are under pressure to relax their policies. some are questioning whether france and maybe italy might ask

russia for more breathing room. at the very least, measures for growth and jobs are higher on their agendas and are expected to remain a hot topic at the meeting of finance ministers. jules is there. she's in athens. jules, everybody always talks about growth and one wonders what that translates into in terms of policy. >> you're right, ross, good morning. they talk about it, it's on the agenda. the question is whether or not we get the follow through and is what's fixated a lot of the buzz going on here in athens is whether or not francois hollande is going so gain more from brussels. we've seen two extensions for them. he said over the last couple of days that growth needs to be considered when they formulate the budget. we've had the industry minister saying that brussels and the ministers have absolutely no idea where growth is concerned. it echos what we've already

heard from the new prime minister who said again that growth in jobs needs to be at the forefront. yes, everybody has a lot of optimism about their reform process, but two crucial elements, i think, on this. one, that's perhaps not going far enough and the second one, perhaps the larger issue here is financing. i talked to italy's economic minister yesterday and asked him exactly that question. how will they finance reform. >> not all reforms have to do with refinancing. i guess what you have in mind is how we finance past cuts. the answer is very simple. we're going to finance tax cuts with permanent spending cuts. a new approach to public spending. >> and have you had the green light from brussels to allow you some fiscal slippage if you need it. >> we don't need a fiscal slippage. we're going to be keeping with the targets and with the commitment. both europeanes and italians due

to the new budget law in italy, which is -- believe it or not, that what the european commission requires of us. >> there are talks that there will be allegiance between germany and italy to push more for more room is entirely wrong? >> the issue is that all members of the european union are in a single currency. we need to look more strongly at growth and expansion issues. this is not just for italy alone. it's for all of uts. >> what makes this different? 50% of the measures passed by monte's government were not implemented. why is this government going to succeed? >> the energy of the prime minister. >> he threatened to resign if this the senate reform doesn't take place. is that a sign of instability or a sign of his passion? >> italy has been growing at a rate of zero for ten years. with a huge debt mountain, you

need to give some shocks. >> that was italy's prime minister adamant that they're not going to need any room for fm fiscal targets. more stringent than the mission will retire. the question is, are they going to stick to their own laws, ross? >> that's a fair question. stay there. looking to return to the market with a long-term bond. this is the first time since its bailout in 2010. according to some reports, the country is hoping to raise as much as $5 billion euros by the end of the year. we've seen this pull in the cash markets, interesting what they get away at cash markets. they're re-entering the market. does that mean that their debt is on a sustainable path? >> that the is the crucial question. right now, the troika, ross, think that the debt sustainability metric takes them down to 125% at 2020. so in around six or so years

time. this reinforcing property in that they do actually manage to engage in getting others to buy the debt and that brings yields down. what i'm hearing is european officials have said look, if you think the market is willing to take this, you go right ahead. although the finance minister did deny the 4 to the 5 billion euros that seems to be doing the round right now. what i'm hearing is perhaps they'll look to do this sooner rather than later. so rather than looking to issue debt by june time for tend of q2, they could look to test the market over the last month or so. require respective of your key question, ross. >> jules, for now, good stuff. thank you. catch you a little bit later. andrew. what we have seen is a huge investor appetite for peripheral debt. ireland has been trending for

those on the uk and the u.s. still a huge demand for spanish and italian paper. now greek paper is getting a bid. >> at the end of to 12, greek paper was trading at 30%. now after the end of that year, after mario's big countdown to 1011, now it's 6.5. i think you're right, there is a demand for this. part of it is there's still this need. our clients need income. there's an appetite for it. and so that is one of the reasons that people are going to look at this. this particular debt, that will be interesting. that will be a true test as to whether or not the market things that these reforms that have been implemented so far have been sustainable. my hunch is that is that auction is going to go the really well and be hit with plenty of appetite. it's really interesting. >> because the key risk, the biggest risk was that -- not a

default. was there a break-up risk? >> sure. >> and if i believe that as genuinely has been taken off the table -- >> i believe it has. >> -- then you go and look at 3% or 4% or 6% yield, whatever it was? >> i think it's pretty clear that you've got the backing of the european central bank if you're buying greek debt. so that risk has been taken off the table. i guess the question now is are these yields so low that you're not getting paid for whatever volatility risk that there is. but i think that auction will leave with plenty of demand. >> is that the the reason why the euro has been held at such good levels, because international flow into -- you know, in some ways the ecb has been a victim of its own success. they've done a good job stabilizing the region. some of it has come back from emerging capital. that's the thing, there has to be some threshold for pain at the ecb with respect to how high

the euro is going to be allowed to the climb. i don't know where it is. is it at 145, 150? i don't know. but we have long said i think the ecb should do something to counter balance that. they need a little help. >> okay. stay there. also still to come on today's show, we're going to head out to portland, oregon. we'll find out how they reinventing the golf ball. meanwhile, google launches its stock split. a new class of c-shares with no voting rights. that leaves the firm's founders with even more power. we'll take a look at that. after the break, asop has posted a drop in profits. the ceo is now putting his focus on markets outside the uk. we asked people a question, how much money do you think you'll need when you retire?

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open 254 shops worldwide over the next three years. he is considering the company's strategy in china. the stock today, up 1.3%. it's down 7% over the last 30 days. and the online fashion retailer in britain, asos has posted a 34 jump in retail sales. the last 30 days, the stock down 26%. asos posted a 22% drop in profit, in line with last month's guidance. speaking first to cnbc earlier, the ceo nick robinson said the retailer remains a stock in growth. >> asos has been a growth story for nearly 14 years now and, you know, even the business in the uk where we have been established for 14 years, we're

still producing growth numbers of 30 odd percent. i think the stock market respects that. >> joining us now, helia and andy goldberg is here, as well. hahul, is the drop in key profits regarding growth or is this about an online bubble bursting? >> i think the thing with all of these businesses is they had pretty good growth prospects. i think what asos shows you is that it's bumpy. it's the fact that we've got lots of growth coming, but we're going to put a heck of a lot of money behind them and that's how we're going to keep growing. then they're saying we have no more growth left. >> this is a company that's had a bit of margin compression today. they were talking about the investment they're doing in their new warehouses and how that's affected their chargins in russia and australia.

its businesses in the uk opened a bit for them. they're a very popular brand and they've been incredible growth. i think 1600% in the laugh five years shares have gone up. but the question is how far can that growth go as you see today? when we talk about rookie results from companies, you don't normally mean a 34% rise in growth and top line income. but, you know, with asos, it is, as you said, a lot of people are banking on this doubling in size, really. >> i think the tricky thing is essentially they've got the awareness out in the uk. the problem is how do you get that awareness going in china, how do you get that awareness going in the russia where you are to spend money both in terms of getting the product to consumers, but knowing for them

to get out there. i think you're going to keep getting that from time to time as they're going to new markets. >> when they -- in the uk, it was the stuff -- you know, they sort of used the -- to get the brand going. now they're starting -- >> well, of course, that is the the irony is the company that was created in order to market these clothes that celebrities are wearing and nobody was interested. all these big brands didn't care about asos or as seen on screen. and it morphed into this the incredibly fashionable -- >> but still, how do they get the brand known in china? he talked today, look, it's a tough month of the -- as we know. we're going to double the sales for the uk, germany and china. how do they make that return on investment pay in china? >> and i think it's very early in that you have to put in even

more investment before you do that. the brand doesn't even register in places like china. they're missing sales in china. so i think there's a whole lot of work to do over there. you do it the way they built the uk, brick by brick. but you don't start with the advantage you had in the uk. >> you've got announcements from prada. they've consolidated results for january 31st, 2014, net income amounted to 607.8 million euros, up 0.3% retail. sales growth, 7% compared with the year-ended january 31st, 2013. full year net revenues, 3.59 million of 8.8%. >> as they're saying, again, how consistent. prada has maintained that 7% sales growth all year last year. which was pretty strong, actually. >> there's a big difference between luxury and where we are

with asos. have you got any views about the retail aels space? >> yeah. one of the things we're thinking with the retail space is despite the slowdown with china and some of the questions about reform, it's not luxury. we think it has a lot of wind in its sails. you know, i know from a macro level, it's easy to say we're concerned about china because of x, y and z. but the underlying fundamental consumer story is still there. i think it's going to continue to ramp up over time. especially with these luxury brands. there's more millionaires being created in a country like china every day. >> i always remember the burberry story from last year. you make one slip and we get killed by investors. >> because everyone loves the

space. and i think to a large extent, they are. you have to recognize that they were affected incredibly over the last three or four years. you've got to select your winners. the other thing is, china domestically the luxury consumer looks like it's flurrying. a lot of people in europe are now increasing by the nation. if you look at overall demand, 30% comes from china. >> it has just hit a 15-month record going up-and-up and up. >> good, that you can, helia. thank you for that report. nice to see you. andy, stick around. more to come from you. also still to come, google's stock split comes today. investors will get both class a and c shares. c will trade under the classic

goog symbol. but the class c shares won't have voting rights. essentially it's boosting the cofounders to maintain control by stepping up their class b shares from being diluted. so how do you feel about buying shares with no voting rights? join the conversation with "worldwide exchange." e-mail us, tweet @cnbcwex or direct to me @rosswestgate. more to come on "worldwide exchange" right after this. righ.

the headlines from around the globe, a poor start to the bang, european stocks are up but going to cap despite strong numbers out of spain. the italian economics minutester tells cnbc exclusively, policymakers should be going for growth as european finance ministers meet for a second day in athens. >> we don't need a fiscal cliff. we're going to be keeping with the targets and with the commitment. both europeans and italians used to the new budget law in italy which is -- believe it or not what the uk commission requires

of us. >> the ceo of gm says sorry, but fails to provide what congress is looking for. mary barra is prepared to appear for a second day on capitol hill. >> i cannot tell you why it took so long for a safety defect to be announced for this program, but i can tell you we will continue to find out. >> and investors continue to pull money out of the world's biggest bond funds. they posted outflows of more than $3 billion last month. we have this some data out of the uk. i'll get to that in a second. first, the latest french government lineup in france. it's going to be announced at 11:15 cet. uk march construction pmi, 62.5.

similar to february's 62.6. strong growth amongst house builders helping to maintain construction of a rapid pace of expansion in march. so in the 60s. a pretty strong pace, highest level in more than seven years is what we're seeing at the moment. some economists expected a higher rise. after being in the doldrums for quite some time, the construction industry appears to be back. european equities, meanwhile, have been up to flat. the ftse 100 is just up 0.2%.

on bond markets today, we did see yields kick higher on treasury yields as far as the consensus of bund goes. and on the currency market, the yen was the one that's been affected, down to ten-week lows against the dollar. we hit 103.93. the nikkei up today, currently 103.84. euro/dollar, just below 1.38. we hit 1.37 last month. more u.s. data today, got the ecb tomorrow and, of course, employment reports on friday. emerging markets are staging a big turn around. seema mody is looking at what investors are saying about these markets in the new quarter. >> a big turn around for the emerging market index currently having its best nine-day winning streak since september of 2013. so what's behind the move? experts say the market has begun

to assume that the worst of the geopolitical risk is over. plus, investors are resetting their growth expectations for china and other emerging markets. the big question is will emerging markets continue to outperform. well, a mixed opinion on the street while ubs sees the emerging market index gaining 10% by year-end. when it comes to emerging markets, it's hard to find a compelling story. there are signs the growth story in the u.s. and europe more exciting. now to the four bric markets, brazil, russia, india and china, dgig's dan greenhouse says he favors india. the country still faces high inflation. its current account deficit is narrowing. plus this is an election year for the country and market participants are growing confident that the opposition leader, who is considered pro business will win and become india's next prime minister.

india's election results will be announced around may 16th. experts say it will be a decisive moment for the country. >> meanwhile, capital outflows from russia could hit $100 billion this year. the bank has warned that russia's economy might contract by 1.8%. ukraine crisis led to a sell-off and it currently lags the msdi emerging market index. it's down nearly 7% over the last six months. and geoff has arrived in moscow where he's been asking how russia can address its outflow of funds. >> maybe it is a good case for us. we have a lot of -- on russia. because i think the economy is out. so we need to support the local economy and maybe it's okay for us. maybe it's a case for the start up. but a lot of my friends move out from russia because they don't believe that they can build any business here. and i'm afraid that we have 70% to 75% of people who would like to do their first business in

russia, they're out of russia. fdi is not a russian strong site. and that -- the scent of gdp. we expect them to remain alone. >> the miex ex is a pretty lousy indicator, i'm afraid to say, because the volumes are so small, a better indicator of what's going on in the bond market. and now we're facing a reality that corporate board rooms are going to have to assess whether it can make sense to continue to reinvest in a country that's quite possibly going to be isolated for a very long time. >> right. and you said this to me. that was a detroit hockey badge? >> it was a logo with the detroit red wings hockey. good old usa. >> you're not a fan of them? >> a fan of the detroit red whippings? no way. new york rangers. >> good.

that sounds more like new york -- -- >> and totten ham hot spurs. >> that's interesting we have another guest from the states who is a big fan, michael bursa. >> oh, great. >> emerging markets, i think the difference clearly now is there was an overall emerging markets trade. now it's gone back to being judged with merit. >> every quarter, we send the document around the world. one of the keys we're highlighting in this the document this quarter is the differentiation happening in emerging markets. over the last 12 months, one of the charts we'll show is the best performing markets in the country was up to the 25.

that's a huge spread. now, what's interesting is recently, some of the best performers are the ones that got hammered the hardest. the big current blth deficit countries, countries working on reform, we just talked about india. one of the best performers, interestingly, poland has been a good reformer. so there's differ rination team has been important. if you look historically at different valuations, roughly 75% of the time looking forward a year, that's going to net you a strong double digit return. the problem is, 25% of the time it nets you a really nasty one. if valuations were to move any lower from here, it become almost, at least based on history, a full proof display. that's kind of where i am. if i'm a long-term investor, i'm

accumulating emerging markets right now. >> the question is can you hedge that 25% risk that you talked about or not? >> well, are you just saying the percentages i'm putting in take that head on? >> first of all, when you think about what em could be in yoe your overall portfolio, it's not going to be 50% of the portfolio, anyway. so in that sense, it has just because -- >> but one thing you can do is be a little bit more selective. if, for example, there's a country -- one of the ways people are differentiating right now is, for example, commodity importers versus the exporters. the exporters will be in trouble for a while. but you have to bounce that with the harder they fall, maybe the bigger bounce. they say it's always darkest before the dawn. rush yeah has priced in a lot of bad news. and it's start to go become really attractive if russia decides that they're going to play ball with the diplomacy that the west wants to engage in

and start to put back a couple more battalions, you could see a pop in that market. but for a long-term investor, i think it's time to start accumulating exposure little by little. >> andrew, thank you so much for joining us. nice to say you, as always. andrew goldburg joining us from jpmorgan asset management. geoff has an exclusive interview with the russian minister of economic development. you don't want to miss that. meanwhile, investors continue to pull money out of the largest fund posting $1.3 billion in outflows of march. investors withdrew more than $411 billion last year, the largest ever annual outflow from any u.s. mutual fund. it was down 0.5% in march, trailing 95% of its peeres and has a return of 1.3% this year, trailing 85% of its rival fund.

high speed trading firm virtue financial has reportedly delayed the start of its ipo road show for a week. this amid the negative attention the industry has received from michael lewis' new book, "flash boyd." the agency has several active investigations into possible abuses by high speed traders and other stock market structure issues. the fbi is conducting a wide ranging probe, examining whether high frequency traders are getting material ahead of other investors. >> i think people would agree that there are advantages of speed by what's the impact of the advantages of speed. is it harmful is in the? is it not harmful? but these are all issues we're very much reviewing intensively. >> in his book, lewis contends

that high speed traders have rigged the stock market. the debate over the pros and cons got heated tuesday as one of the an tag insists of those books past global markets went back to the ceo of iex, a new exchange that lewis touted is a more even playing field. i think it's really hard to put a -- >> you said it in the book, that's when i knew the market was rilgd and you're trying to pars your words now. you can't say that and -- >> you were quoted that way in the book. >> let's walk through -- >> do you believe it or not? because you said it. >> let me walk you through an example. >> do you believe it or not? >> i believe the markets are rigged. >> okay. there you go. >> and i also think that you're a part of the rigging. if you want to do this, let's do the this. >> i really do. >> good exchange. if you want to catch more of it on cnbc.com. o'brien calls lewis's book a sales pitch for a business model and a 00-page commercial.

meanwhile w, deutsche boers is being probed by the u.s. over iran links. the do you have ya boerse is trading lower on the news. and in japan, apple is in talks with a japanese manufacturer that specializes in smartphone displays. makiko has more for us. >> yes, this controls the smartphone that displays quality as well as its response feed. appearing is said to be considering buying their entire stake for about $480 million.

it's considering many options, including a handover of its unit. it seems as though the chipmaker unit has dropped a profit and apple currently buys all of its iphone display chips from the country. the quality is becoming a crucial selling point for smartphones and this acquisition would allow apple to incorporate the design of core display components into its overall product development. now, meanwhile, renesas is likely to have stayed in the red marking its ninth consecutive year of losses. following the report, renesas soared nearly 20% today. >> thanks for that, makiko. staying in that region, stores in japan has soon a 6% right thanks to strong demand for the spring products. uniqlo stores profits come from

japan. the nikkei closing up 2% today before the release of the sales figures. just a reminder what's on the agenda in asia tomorrow, australia is reporting its retail sales and its trade figures at 8:30 hong kong time. the rba governor is speaking in brisbane. the currency so far this year, we'll get china services pmi out, as well. that might impact the australian dollar and japan's seven and i will post their full year results. the company's is the parent of 7-level and is the world's biggest retailer. that's all tomorrow. meanwhile, still to come today, gold prices sitting at multi week lows. will more of the economy continue to hurt the yellow metal? we'll continue with that in a few moments. few moments.

the new french government

lineup will be announced at 11:15 cet. stephane is in paris. stephane, who do we think is going to be in and out? >> we probably won't have the -- in half an hour at 11:15 when they were the make a short statement. according to the french media, only the minister's provision will be announced today and we will have to wait until the next week to get the full list of the secretary of states, which are the equivalent of junior minister, the first cap net meeting will tapes tomorrow. it will be a limited meeting because we will have the full tomorrow yet and the new prime minister will appear before the national assembly probably next tuesday. that's a crucial event, ross, because in france, each new prime minister must appear before the national assembly to make a statement to present a

political strategy and to seek a vote of confidence from the national -- from the national assembly. it might be a bit tricky because manuel is much more centrist and he's not very popular with the left wing of the socialist party. therefore, he might not get this report from all socialist at the national assembly. the deputies may not vote the confidence to the new prime minister. he has to prevent the socialist party. one thing before, the finance minister will be simply fine. we had a budget minister, a finance minister, a digital

minister and that big finance on economy ministry in france. we will probably keep at least two or three persons. and it's among the speculations. the second is that pierre is unlikely to keep his job at the french finance ministry. but, ross, within 25 minutes, we'll have a first read and, obviously, we'll have the name of the next french finance minister, so stay with us because, of course, we'll give you the full list on the comments in less than half appear hour. >> okay, stephane, you have warned us. we will be back with you for that. thank you. nato's commander saying he's working on proposals by april the 15th to reinforce east european allies by air, land and sea. this is after he says the situation with russian forces on the ukrainian border remains incredibly concerning.

nato commander says russia all the forces on the ukraine border that would be needed for inincursion into the ukraine and it could encompass ukraine in three to five days. meanwhile, chilean mines appear to be unscath despite the 8.2 magnitude earthquake. it triggered a tsunami and took at least five lives. they had evacuated some workers to be with their families. most mineral rich nations are designed to with stand tremors. meanwhile today, gold prices are nudging higher after two consecutive days of on losses. but the yellow matter is still sitting near seven-week lows. strong data is boosting optimism by economic growth in the world's biggest economy, which means gold is losing its appeal among investors.

joining us with his thoughts, jeff. we've been swinging around the 1300 mark for gold. what do you think now? >> well, i think, you know, we've had two factors driving this softness. one, you've had tensions between russia and the west kind of simmer post the crimea incursion. second, we've had the fed sounding pretty hawkish a couple weeks ago. you know, the next catalyst is really what happens on friday with the nonfarm payrolls. that's a strong number. i think that's going to continue the trend where we see gold struggling to perform. >> yeah. and are those -- some, if you get up towards 300,000, which would be quite a number, and obviously negative for gold, as you say. now, there are those who obviously have been saying it for a long time. weep expecting we are going to get a higher inflation. if that comes through at the enof the year, does gold benefit or not? >> well, i don't know if we

necessarily see gold benefit from that. our house view is a little more conservative on the outlook for gold. we haven't factored in a big pick up in inflation. but if the opposite were to pan out, potentially that could give it a bit of a boost. >> how does this translate into the gold miners? >> i think gold miners where it's interesting is moving somewhat away from the price. you can't decouple that, but it's looking at what they're doing at the cost levels in terms of trying too tack costs. there's a case we made that gold miners might be lagging the rest as sort of a general mining states by maybe six months or a year in terms of china attack costs and improve margins from within. >> yeah. and it really is all about the cost basis that he's got. and what is happening on that? >> well, i think, you know, you're seeing -- like we've seen across the mining sector, a lot of costs taken out, easy, low hanging fruit. trying to renegotiate contracts

asking for 15% or 20% off, those types of things. you're seeing a focus on trying to -- well, you know, high grade or to try and run more efficiently, maybe push back on some not so necessary maintenance, that type of thing, just to kind of ease the cost inflation or, you know, control costs and try and, again, help the margins. >> and just as far as you're -- we have the leading miners here, glencore, angelo american, rio tinto, bhp billiton and lonmin. is what is your leading pick there right now? >> bhp billiton. it's not only because of the diversification and the balance sheet and the probability of a share buyback being announced in august. it's looking at some of the speculation that emerging yesterday about bhp taking a look at its portfolio and potentially looking at more structural options to try and spin off underperforming assets.

they've been trying to sell assets, what they consider noncore for some time. they've struggled to find buyers who are willing to pay a decent valuation for these prices. i think maybe the next natural step is looking at some of these exiting through a spin-off. >> jeff, it's good to see you. thank you largely for that. still to come, meanwhile, on today's edition of "worldwide exchange," we're going to go inside nike and find out how the sports giant is trying to, once again, reinvent the golf ball. i think it's still going to be round. apart from that, we'll have to find out. the second hour of southbou"wor exchange," coming up. ange," com.

you're watching "worldwide exchange." i'm ross westgate. the headlines from around the globe, april starts with a bang. the s&p hits an all-time high. european stocks capped despite numbers out of spain. france's new prime minister is going to unveil his new brand. a new government in 15 minutes' time just one day after waking up his position. the gm's ceo says sorry, but fails to provide the answers that congress is looking for. mary barra is now set to appear for a second day on capitol hill

to answer questions about the automaker's massive recall. >> i cannot tell you why it took so long for a safety defect to be announced for this program. but i can tell you we will find out. and investors continue to pull money out of the world's biggest bond funds. morning star says pimco's total return funds posted outflows of more than $3 billion last month. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and a very good morning to you. if you just joined us in north america, welcome to the start of your global trading day. the dow yesterday was up 0.5%. right now, we are called higher by around about 24.5 points. the s&p up at a fresh record high. first time we've been up three sessions in a row for a while.

and the nasdaq higher by around 9 points, as want one up 11.6% during tuesday's session. as far as the ftse cnbc global 300 is concerned, we are fairley flat. this morning, we've been a little bit more mixed in european trade. right now, the ftse is just up 8 points. the xetra dax is up 0.25%. the cac 40 is fairley flat. the ftse mib is down 0.75%. no major data to look at except from in the uk. just below the 63 level. as far as bond markets are concerned, we're seeing longer data yields on treasury rise a little bit. the ten-year above 2.76%. nearly up to 2.7%. strong sales during the session yesterday. ism manufacturing activity, 53.7

in march. there was some in the employment gauge. today, we look at the u.s. durable goods and the adp report, as well. elsewhere, yields are a little higher across the space in europe, as well. and on the currency markets, very much focused on the yen has hit ten-week lows against the dollar. we hit 103.93. currently trading at 103.78. increase in appetite. the euro/dollar, just below 1.39. 1.37 was the one-month low that we hit on friday. and the aussie/dollar, not far away from its four-month high easy. we had been up at 93.10 boosted by the tapers of chinese stimulus. how is all of this playing into what happens in asia today? sri is the the man with his finger on the pulse in singapore. sri. >> ross, let me just pick up on

japan. we have the tankan survey. what that told us is that inflation still needs to get high higher before it gets to that 2% target that the boj aspires to. for more work to get the right type of inflation to get the economy going in the broader economy. now one mentioned the japanese yen. yes, at a ten-week low against the u.s. dollar. so that helped produce the broader market and the forces settling at 1% higher. but worth pointing out, it was higher during the session. so a little bit of give back towards the settlement. the stock was in focus today up by 19% at one point. that's because there was a report that apple is in talks to buy a stake in its chip design unit. so some stock specific factors helping the nikkei, as well. over on the greater china markets, fairley subdued. in positive territory for the

shanghai comp and the hang seng. its really the property counters that led both of these markets higher, especially on the hang seng. the subindex for the property sector was at its highest point sips mid-december. that was largely on a report in the state media suggesting that the home ownership restrictions may be relaxed in some cities. so the property developers having a reasonably good day. broadly, the tone is quite cautious. there's still a lot of risk event in the system that we need to get out of this week and digested by the markets. the ecb where you are is one of them, ross, of course and then the big mother of them all, of course, is the nonfarm payrolls at the end of the week. so these markets treading aushusually just ahead of those two key themes. back to you now. >> yes. we will over the globe. sri, thanks for that.

have a good evening in singapore. now, sri a while as, it was said that the nato commander has been working on a package of investors to reinforce east european allies for air, land and sea after saying russia has all the forces it needs to make an incursion into the ukraine over the bid of three to five days. russia has responded to that comment by accusing nato of using language that echos the cold war and says neither it nor nato gains from nightso's cooperation or suspension of cooperation. meanwhile, don't forget to tune in tomorrow. geoff has an exclusive interview with the russian minister, as well. sri mentioned the data coming up in the week in the united states. today, we get the employment report out at 8:15 eastern.

forecasts call for 300,000 in private sector payrolls. at 10:00, we get february factory orders expected to rise 1.2%. the atlanta fed president dennis lockhart speaks about the economy this afternoon. as for earnings, look for results from monsanto before today's opening bell. right. now, of course, the adp number is usually seen as a gauge for friday's labor department jobs number. stronger data out of the u.s. could send short-term rates higher. our next guest suggests this would be positive for european equities. joining us, peter oppenheimer from goldman sachs. when you look historically at what happens when we get a flattening yield curve, what does history tell us? >> to some degree we can look at history to give us some kind of a guide.

when you get a flattening yield curve -- you had long rates yesterday. >> and we're expecting a bit more of a further rise in the short-term for the yield, particularly in the u.s. as economic activity begins to pick up again. particularly, that seemed positive for equity markets. remember, these are the first rises for rates in a low level. they normally come at a time when growth is accelerating. and equity markets respond quite well to that. >> 1994, is that an aberration? because it was shock? >> yes. >> we had this move higher in rates. >> 1994 stands out as being quite an exception in this regard. you had a very unexpected rise in interest rates. it had a very negative impact on bond markets both in the u.s. and globally. and equity markets were not prepared for it. it was coming before you got a strong rise in growth. and you had a negative shot pretty much across the world in

asset classes. >> and there's nothing here, the fed has gone out of the way to not do anything that's shocking to anybody. i think that's fairley clear. you say here that what is a more important drive for concerns is valuation. but the stocks have performed very well and valuations have gone up. >> yes. two things here. you've seen a sharp rise in valuations in europe in particular because you have yet to see strong profit growth. that is not surprising. the initial the recoveries in equity markets from very deep bear market lows is nearly always driven by multiple expansion. the question is when does profit growth really take over as the driver. normally, that starts to happen as you get these initial rises in short-term money market rates. and it is, indeed, our expectation that profits will

grow reasonably this year. >> a rise in short-term ratio is seen as an inflation should help drive profits is the -- >> right. >> indeed. you know, the offset would be that the all of that recovery is already in the market and, as you say, valuations have gone up. but we don't think they have yet stretched enough, given the margin and revenue growth expectations that we have to really prevent markets from continuing to rise at a reasonable level. in addition what makes it different from previous cycles is that, of course, rates are still incredibly low and the opportunities in other asset classes are still fairley limited. >> peter, good to have you on board. we'll come back to you in a little bit. some of the other stories the we're following today, the gm's ceo mary barra will be back n on capitol hill looking into the

retailer's recalls. barra says she didn't know why gm waited more than a decade to recall cars it knew had defective cars. she did promise to change the automaker's culture, putting a new emphasis on safety. >> it has taken way too long and we will learn from this and we will make changes and we will hold people accountable. the best thing n world would be as soon as we find a problem we fix it and it doesn't exist in the marketplace and doesn't affect our customers and doesn't create tragedies. >> and barra is bringing in an outsider to help look into the matter. ken feinberg. gm stock today is down another 1%, down around 5% over the last month. now, high speed trading firm

virtue financial has reportedly delayed the start of its ipo for at least a week because of the negative attention the industry has received from michael lucas's new book, "flash point." the agency has several active investigations into possible abuses by high speed traders and other stock market structure issue. the fbi is conducting a wide ranging probe examining whether high frequency traders are getting material information ahead of other investors. >> i think people are aware of the advantages of speed. is it harmful, is it not harmful? who does it harm? but these are all issues which are very much we're reviewing intensively. >> high speed traders have wreaked the stock market. the debates over the pros and cons got pretty heated. one of the an tag insists went

at it with brad carpiema, a new exchange that lewis touts is a more even playing field. >> i think it's really hard to put a word on it. >> you said it in the book, that's when i knew the markets were rigged. i think it's disgusting that you're trying to pars your words now. >> you can't say that -- >> you are quoted that way in the book, but -- >> let's walk through it again -- >> do you believe it or not? because you said it. >> let me walk you through an example of -- >> do you believe it or not? >> i believe the markets are rigged. >> okay. there you go. >> and i also think you're a part of the rigging. if you want to do this, let's do this. >> i really do. >> pretty good exchange. worth recapping on cnbc.com. o'brien calls lewis' book a sales pitch for a business model and a 300-page commercial. the discussion is going to ramble on, i think. now, we've got more flashes coming out considering the ukraine. the eu and the u.s. are considering joint efforts to address the ukraine energy

security situation. this is issued by the u.s. news in brussels, headed by captain achuthash ashton and john kerry. still to come, we'll get the latest from paris as the details come through. ♪ [ male announcer ] this man has an accomplished research and analytical group at his disposal. ♪ but even more impressive is how he puts it to work for his clients.

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a recap of the headlines, the gm of gm mae barra is on capitol hill. the french government gets set to announce its new lineup following disastrous local elections. and last month saw more than $3 billion withdrawn from pimco's total return fund. more to come on those stories. meanwhile, european lawmakers are under increasing pressure to relax austerity.

jules is in athens and joins us for more. jules. >> thank you so much, ross. you can see the ministers all leaving behind me. but the real buzz here is whether or not france and, of course, italy, perhaps, too, are going to be asking brussels for more leeway as far as their deficit is concerned. francois hollande, the french president, has been making moves towards that suggesting. i also spoke to the italian finance reform minister asking him if he's been given the green light to move on those targets if they need it. listen in. >> we don't need it. we're going to be keeping with the targets and with the commitment. due to the new budget law in italy, which is stricter, believe it or not, that what the european commission requires of us.

>> actually, the italian budget law now means their conditions far more stringend than the european commission. the question is with all the reforms that they're trying to do, will they manage to stick to it? ross, from an emptying out of the ministers meeting here in athens, i'm going to go and enjoy the day. back to you. >> it must be lunchtime. enjoy. thanks, jules. good to see you. still to come on the show, emerging markets are bouncing back, but can the rally be sustained? we'll have a perspective on that. they are weighted to the upside, not by much. not by much.

all right. the new french government is currently being announced. french foreign minister lauren fabian remains in his toast. those names are all being read out as you can see from these pictures. we'll get more on that and

reaction from stephane on the implications. what we really need to know is going who is going to be the economics minister. the futures, meanwhile, indicate ool pop higher today after the dow was up 74, the s&p up 13 points, the nasdaq up 1.6. right now, the s&p is called higher by nearly 3 points 37 the dow is called higher by around 29 points and the nasdaq called higher around at the moment by 10. meanwhile, fateo is using language that echos the cold war. that's the russian response to the organization's decision to suspend corporation with moscow in protests at the annexation of crimea. nato earlier said there was no sign that russian forces stationed on the eastern ukraine border were returning. and claims moscow still has all the forces needed for an incursion into ukraine. capital outflows at the same time from russia could hit $1100 billion this year. the world's bank is warning that russia's economy might contract by 1.8%.

ukraine crisis has led to a sell-off in the the micex down nearly 9%. emerging markets fairley off just off 0.2%. after what was a volatile start to the year, stocks and emerging markets have been staging a turn around. seem ma mody has been looking at which em stocks have contributed to this recent rebound and highlights what market experts are saying about these markets in the new quarter. >> a big turn around for the emerging market index is currently having its best nine-day winning streak since september of 2013. so what's behind the move? well, experts say the market has begun to assume that the worst of the geopolitical risk is over. plus, investors are resetting their growth expectations for china and other emerging markets. the big question is will emerging markets continue to outperform? well, a mixed opinion on the street while ubs sees the

emerging market index gaining 10% by year-end. when it comes to emerging markets, it's hard to find a compelling story. in fact, they find the growth story in the u.s. and europe more exciting. now to the four bric markets, brazil, russia, india and china, btig's dan greenhouse says he favors india. continuedan sensex, in fact, just hit a record high while the country still faces high inflati inflation. its current account deficit is narrowing. plus, this is an election year for the country and market participants are growing confident that opposition leader mody will win and become india's next prime minister. india's election results will be announced on or around may 16th. experts say it will be a d decisive moment for the country. back to you. >> meanwhile, the new french government reshuffles is being announced. we knew know that arnold ecamon

has been named the new finance minister. he was previously the minister of industrial renewant. laurent fabius is the foreign minister, so are they going to have any impact at all on the french economy? stephane joins us with his analysis. stephane. >> so there's one thing, ross, we've got less ministers than what we used to have in france. 15 ministers, the least of the ministers have been announced this morning. we will have to wait for the next week to ask the secretary of state position, which is the equivalent for junior minister. the key question for us, of course, what the name of the person who is going to replace the former french finance minister is not in the new team and has been replaced by two people, actually. michelle sappa, the finance

minister and the minister for the public account, some sort of budget minister. michelle suppan worked for -- he failed to reduce the unemployment rate by the end of the year like francois hollande wanted to do. he's a close friend to francois hollande and probably he will have to take care or to look very carefully at what arnaund, the former minister for the product team recovery that was the official title he had. and he was the nonminister for the economy recovery and the digital was announced a few minutes ago. you might have here that the former ex-wife of francois hollande, the former socialist for the presidential election in

2007 said she joins the team as she is the new ecology minister for france. no changes in terms of diplomacy is the head of the french diplomacy and what is also important, the interior minister that's important for france, the former budget minister is now the interior minister. so top story, of course, for us, new finance and economy ministers is now the of the team. >> stephane, thank you for that. and we'll leave you with a look at how futures are trading right now. we are called higher this morning, dow up by around 27 points, s&p futures currently about 2.5 points above fair value. value. ld save you fifteen percent or more on car insurance. everybody knows that. well, did you know pinocchio was a bad motivational speaker?

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welcome to "worldwide exchange." the french government has announced a new lineup. april start to the bang, the s&p hits an all-time high. european stocks have been capped despite strong jobs numbers out of spain. the gm ceo said sorry. failing to provide answers congress was looking for, mary

bar ra is appearing a second time on capitol hill. >> i cannot tell you why it took so long for a safety defect to be announced for this program. but i can tell you we will find out. and investors continue to pull money out of the world's biggest bond fund. morning star says pimco's return fund posted outflows of more than $3 billion last month. a very good morning to you. if you've just joined us in north america, u.s. equities after the gains yesterday are called higher today according to the futures. today up 74 points, 0.5%. the s&p at the moment, after being up, what, 0.7% yesterday, currently called higher by around 2.5 points. and the nasdaq at the moment is called higher by 10.5 points

avenue being up 1.6%. of course, we had the first three-day move to the the s&p for a few weeks. the ftse cnbc global 300 at the moment is fairley flat. the ftse 1100 yesterday was up 0.8%. and today we have some slim gains for european stocks. right now, up 12 points on the ftse. the xetra dax is up about 0.3%. the cac 40 is fairley flat and the ftse mib down around 0.4%. another big day today, of course, with data coming out, including durable goods and the adp. here is a recap of the some of the thoughts we've had on the channel today. >> optimism around strategic investment. that's the important thing as the industry transitions to the digital business era, we're

starting to see a lot in that. we've talked about the forces before, mobility, cloud, social information, but these things are still driving. >> investors got spooked by what happened in emerging markets. we saw a lot of money come out of emerging markets. where is it going to go? it's going to go back into the u.s. and europe. frankly, that's where the opportunities are. less risk. there's potential upside. if we see stronger economic growth, we should see earnings start to accelerate and stock prices push higher. in the bigger scheme of things, i have to say that i'm not exactly -- for the russian economy, anyway. not necessarily because of the events, but surely russia is always a commodity supplement. and still with me on set, peter oppenheimer from goldman sachs.

one of the thoughts there was look, people got scared of emerging markets. they got scared and went into european equities. you were talking about how earlier a rise in bond yield is going to be okay for european equities. if you have to choose between europe and the u.s., though, right now on valuation and outperformance, where would you go? >> i think on a rel of basis, europe still sets up pretty well. the valuation is lower, although the differential is not as big as it was six or nine months ago. but there's still a relative valuation gap. we're looking at around 14% in europe as you get top line growth alongside the recovery. in the u.s., only around 8%. so the relative gap still faces europe. >> despite the total growth in the u.s. is going to be a lot stronger. and what about emerging markets right now in relation? you clearly now every emerging market is different.

today, a year or two, you could just buy emerging markets. they're very different. >> that's true. i think that there are some very different drivers. there's the economy's big deficits, external funding deficits which are gaul gradual seeing improvements in their final positions, but these have further to go. then you've got the chinese economy, which is a creditor. that way you've seen tightening of credit conditions and the hope is that policy will ease a bit. i think the prospects there, the better. then you've got the geopolitical risks in emerging markets. >> peter, good to see you today. thank you so much for joining us, peter oppenheimer from goldman sachs. now, for the first time in history, the s&p 500 will have 501 components. google's much anticipated share split will offer shareholders a one-time special dividend aimed

at halving the price of the stock. shareholders will get two shares for every one that they've owned previously. class a shares will trade under googl and retain their voting rights. the other, class c, will be listed under goog and have no voting rights. this means the influence over thing of the firm will hardly be affected. they will retain the same control as their class b shares, which are not traded publicly and the new share issues are worth voting wise. while they the do this, google shares have -- there we go. currently up 1.8% in yesterday's session. over the last five years, of course, up 226%. joining us with his thoughts, yusef from cantor fitzgerald. youssef, it's interesting

because we've been talking about this with facebook in the sense that we wondered whether the founders interested in becoming divergent with the shareholders. could we start to leverage similar accusations towards google as they -- as larry page says i've been retained their control and shareholders get less of it? >> well, i think that's a fair assumption. remember, they already owned a fair amount of class b shares and had super voting rights. ten votes for every share. so it's not as if this is really going to dramatically change the -- that assumption. these guys will continue to exert complete control over the boy and over everything that's strategic to the firm. you know, at the same time, i think you had a number of people since the stock moved about $500 maybe several years ago, several shareholders were asking for a stock split. so this is one way for them to

offer a stop stop split. making the shares a little more affordable, but at the same time, really, make sure that any shares given out over the foreseeable future don't dilute any of the class b shares. >> yeah. when you're buying google today, at some price, what exactly are you buying? compared to -- compared to the rest of the sector that you might be in. >> well, fundamentally, you're still buying the king of search, a business that's still a growth market, in our view, still growing mid teens. you're buying one of the top display advertising -- players in the space. you really only have facebook, yahoo! and google in that category. and that's a big, big market where we're seeing a fair amount of add dollars moving and eventually some tv ad dollars

will move there. and you also buy in a large gap name that's still in hyper growth, still generating 50% margins, trade in somewhere around 20 times peo 12 times cash flow, which we think is very attractive. >> you talk about product listing ads could be a real boom to google and might make them a bigger starting point to shoppers and they could take shares from amazon and ebay. explain why that might be the case. >> absolutely. i think plas are product list listeding ads are one of the best ways that google is playing into retail space. think of them as an ad format that are very intuitive. you go on google, you do a search and immediately you get not only just a blue link as they used to have, but you get a picture of the product, the price of the product, the different vendors. so it's comparison shopping right there in one screen.

google was the first to launch this a couple of years ago. we think from talking to a number of agencies in retail and conversions, that the conversion rates on this new format is very strong. we think that the cpcs or cost per click to google are much higher, which tells you advertisers love them. interestingly enough, earlier this week or late last week, we saw microsoft doing the exact same thing, so they launched something called pa, product ads. so we think this is really going to revolutionize the way retailers advertise online and, clearly, we think google is going to developly get the lion's share of that market. >> yusef, good to see you today. thanks for joining us. also in the secretarier, amazon is holding a media event today. and in other news, gm's ceo mary

barra will be back on capitol hill today in front ooh a senate panel looking into the automaker's massive recall of faulty switches. barra says she didn't know why gm waited more than the a decade to recall cars who had defective parts. she promised to change the automaker's culture, putting a new emphasis on safety. >> it's taken way too long and we will learn from this and we will make changes and we will hold people accountable. the best thing in the world would be as soon as we find a problem we fix it and it doesn't exist in the marketplace and doesn't affect our customers and doesn't create tragedies. >> gm is bringing in an outsider to help sort out the company's response to customers affected by the recall, which has been linked to 13 deaths. ken feinberg oversaw compensation funds for 9/11 vict victims, the bp gulf oil spill and the boston marathon bombing.

now, investors continue to pull money out of the world's biggest bond funds. pimpco set a return fund of $3.1 billion in march. investors withdrew more than 41 billion in the fund last year, the biggest ever outflow from any u.s. mutual fund. still to come, how the debate on high speed training and whether the market is ready to jump to a new level right on the floor of the new york strong exchange and on cnbc. ♪

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headlines this morning, gm's mary barra prepares tore another day of questioning on capitol hill over faulty auto parts. the french government announces its new lineup following disastrous local elections. and last month, more than $3 billion was withdrawn from pimco's total return fund. and the chatter over the pros and cons of the risks and rewards of high speed trading is getting even louder just days after the release of their new book which questions the industry's practices. kayla tousche joins us from cnbc hq with a little bit more. i'm quite enjoying this conversation, kayla. i hope we get more of it.

it's certainly gotten colorful over the last few days. virtue financial has reportedly delayed the start of its ipo by at least a week. the company had been expected to start the markets process this friday. investors said you're not going to get a positive reception if you do this now. that delay comes from the attention the industry received after the new book flash boys. s.e.c. chair mary jo white told lawmakers the fbi has several agencies under way. earlier this week, the fbi confirmed it had been conducting a wide ranging probe, getting whether high speed firms are getting information ahead of other investors. i think people would agree that there are advantages of speed,

but what's the impact of the advantages of speed? is it harmful? who does it harm if it harms? but these are all issue that's we're very much reviewing intens intensively. >> in his book, lewis has confirmed high speed traders have rigged the stock markets. it gets heated tuesday between cnbc's power lunch. when added it was bass global markets o'brien. giving investors a more even playing field. >> i think it's really hard. >> you said it in the book. that's when i knew the markets are rigged. it's disgusting that you're trying to pars your words now. >> if you can't -- >> you are quoted that way in the book. >> let's walk through an example. >> do you believe it or not? because you said it. >> let me walk you through an example of -- >> it's a yes-or-no question. do you believe it or not? >> i believe the markets are rigged. >> okay. there you go. >> and i also think that you're

a part of the rigging. if you want to do this, let's do this. >> i really do. >> with that, the gloves were off and it turned into a no holds barred wrestling match pope brian and lewis. o'brien says lewis is scaring investors. he also challenged costiamus to repeat his claims from the books. >> in my exchange as a sign of corruption and it's his backing of his exchange is a sign of virtue. >> there's a difference. >> it's the same thing. >> the backing of me is bad and the backing of you is good. what is the difference? >> the investors in our exchange don't trade on our exchange. that's part of the problem, right? i say the sky is blue, bill says the sky is red, right? this company -- >> but this building is owned by traders for 22 years. . >> you can watch the whole match on cnbc.com.

but while it was going on, traders were stopping what they were doing. you could hear cheers and boos from the floors. a lot of traders are interested in the way this comes out because it could affect the way a lot of people on the floor of the exchange do business. >> great discussion. even if you did see it, it's well worth watching again on krnsz.com. i have a feeling it's going to keep running, don't you? yes, i do. this book is just coming out. there are a lot of claims made in the book that might be an issue with some people who actually work in the market. is there a rigged stock market? is there an advantage for certain traders over to others? certainly lewis lays out one story, but people will be drawing their own opinions from it. >> the book has got fantastic publicity. i think we can say that. kayla, thanks for that. have a good day. >> now, slightly different, it's

estimated that enough golf balls are produced each year to circle the earth. sports manufacturer nike is now looking to keep the edge over rivals with a new ball that claims to add length to your shot while reducing the risk of a hook or a slice. can it be? >> they call this the oven because it's where nikkei golf engineers cook up new golf ball innovations. the goal here? one new golf ball prototype per day. this the stand alone r&b facility is located down from nike's headquarters. these are made in oregon resin golf balls. they're going to eventually end up on store shelves. right now they're going through their final coating. if the thickness of that is off by a fraction of the thickness of your head, you can see the trajectory of that golf ball

change by yards. the key so this is the core. resin is lighter than the traditional rubber. they're getting this product from chemicalmaker dupont. it's supposed to deliver more energy with impact. that's obviously a good thing for pro golfers like tiger woods who is moving over to this ball later this year, but it's good for your average everyday golfer who maybe has an average swing. according to the usga, each year, enough golf balls are produced to circle the entire earth. the golf ball industry's biggest company is actually titelist. just a few more numbers from you. overall, nike golf pulled in

$791 million last year. that's that represented a 9% increase over on 2012. not bad, but the overall golf industry, $10 billion per year. so hopefully the oven will heat up more market share for nike. back to you.

the s&p called higher by 2.5, the dow by 27. but we get the adp employment report before the open. chris runky is managing director at bank of tokyo mitsubishi ufj. good to see you. how will we trade through this number, do you think? >> well, we're looking for a pretty strong number. you know, payroll jobs were pretty weak in december. i think it was 48,000. it came back a little more in

january. up about 129,000. last month, 175. the goal we're trying to get to is to 200. but adp last month was only about 130 something. this month the street is looking for quite a big number. i hope we don't get disappointed. but there's reason to believe that jobs are going to pick up and get back, if anything, maybe a little bit more than 200,000 in the month of march. >> we should be quite interesting. very briefly, as we get much more than 200,000, will we get much more of a response from the fed under their guidance? >> well, they're kind of locked and loaded here. they say they're not on auto pilot. we think they are. they're cutting in these drip

$10 billion steps for qe currently at 55. >> we have to go. thank you so much for your time. i'm sorry about that. "squawk box" up next. .

good morning and welcome to "squawk box." gm's ceo mary barra visited congress and they call the automaker's response unacceptable. the s&p hits a record high. next up, the adp employment report. and fired up over flash boys. the debate over high frequency trading gets kicked up a notch. it is tuesday, april 2nd, 2014. autism awareness day. we're all in blue and "squawk box" begins right now.

good wednesday morning to you. welcome to "squawk box" here on cnbc. joe is over here. i said it just mentioned -- it's wednesday, nonetheless, i'm andrew ross sorkin along with joe kernen this morning. becky, sadly, out again today. she's a little bit sick, but she's going to hopefully be back, we hope, tomorrow. joe was saying it is autism speaks awareness day. that's what all these pins and ties are about. but straight to our top story this morning, gm's ceo mary barra facing a congressional panel we're going to get to aman jabbers in just a moment. it was interesting to watch just what she had to say yesterday. i'm not sure she -- >> you were able to see the advantage of having a new ceo