hello, you're watching "worldwide exchange." i'm ross westgate. headlines from around the globe. divergence from the eurozone, france reports no clothe at all for the first three months of the year. and the ecb president says the central bank is not ruling out more policies to battle low inflati inflation. another day, another deal. a 3 billion-pound merger. and clashes erupt to cause turkey grief turns to anger

following the soma mine collapse, the country's worst ever industrial disaster. death toll now sitting at 282. you're watching "worldwide exchange." bringing you business news from around the globe. a warm welcome to today's edition of "worldwide exchange." we focus on the gdp numbers. we're getting the latest data out of italy. we're trying to bring that to you. gdp contracting down 1% on the quarter. it was forecast to up up 0.2%. the drop driven by the industry secretarier. the italy service sector growth flat in the first quarter. the agriculture sector grew into

q1. nevertheless, the italian number disappointing. it's in contraction. first quarter gdp down 0.1%. that's taking euro/dollar around six-week lows. 1.3675 is where we stand at the moment. it is worth pointing out on tuesday we got down to 1.3685. we are a bit below that as well. six-week lows for euro/dollar. this follows news around gdp elsewhere. germany beat forecasts first quarter growth in the period, it doubled the pace recorded for the closing weeks of 2013. berlin says it expects domestic to drive growth around 1.8% for the year. a very stark contrast with france which failed to record any growth. france will need 0.5% growth each quarter to reach the

government's 2014 target. joining us with immediate reaction, david owens, chief european economist at jeffries. david? >> yes. >> 45% of the eurozone have got no growth. >> we're thinking the number would be weakened expectations. we had a weak ip slowing. obviously the country, we have a 0.2 overall for the eurozone in the first quarter. and the ecb is living in a world of erasable numbers. today we may get a downward revision to the inflation prints for april from 0.7 to 0.6. in may, the ecb could be facing 0.5. this makes it much more likely that the rate may be negative. >> are they fiddling? >> from our perspective, as you remember, we thought they should be doing qe when draghi took over in 2011. at the end of the day, the story

has moved on. it's more about talks and measures to try and anchor down interest rates along the curve as well as maybe trying to get the currency down which is a priority, particularly for france. obviously, france exchange rate matters much more than it does for germany. >> they've been vocal about that as well. >> they've been very vocal. france is running a large trade deficit as well. >> how much does it matter for italy? it matters hugely. >> if you look at macro measures of profit, 20% of the peak, 20%, they've basically been killed over the last few years. this obviously includes a lot of small, medium sized enterprises. >> the pmis have been better than the gdp. >> they're a diffusion index. they are reliable, interest, the gdp number is what matters. the ecb is more concerned about what the gdp is doing than the evidence themselves.

at the moment, the pmi is slightly overrigging it. we will see further improvements in the eurozone economy. it is growing. you can wind the clock back a year or so. the concern was, are we going to see recovery at all? the eurozone printed higher. today at 10:00, we should get confirmation. >> only 0.2. >> it's not strong at all. they blame the weather even though gdp was down 1.4 in the quarter. impacted netherlands but didn't impact germany. it's interesting. >> how do you figure that one out? >> exactly. netherlands is much more open. there's a potential possible impact. >> stick around, more to come from you, david. we had the latest ia monthly oil report out. supported by the continued tensions between russia and ukraine. forecasts global demand growth

201 2014 has been raised. global supplies up around a little bit to 2.1 million barrels a day in april. after hitting five-month lows in march, opec crude oil production rebounded as well to just under 30 million barrels a day in april as well. there's been a seasonal low in april as well. that's the latest from the iaea. the cartel has told him they will cut existing output to make space. he was speaking to reporters in moscow where he says the current oil price is fair. neil atkinson joins us now. every time we get the monthly oil report, i feel lake i'm moving around on the margins here. >> the thing about the oil

market is simple, global oil demand is only moving ahead sluggishly. we're showing signs even of weaker growth in china. meanwhile, as you eluded to a second ago, there's plenty of supply. not just from the united states but from canada, russia, to some extent, some other countries. and certainly the estimates for this year is that growth in nonopec oil supply should exceed the growth in global oil demand. now, on top of the nonopec countries you have opec countries. you just mentioned iran in your introduction there. they think they should have space to have oil production. iraq is expecting to increase its production later this year. we don't know what's going to happen in libya. >> big question is how much will oil production exceed demand? >> at the moment, it would appear that supply will exceed demand by 500,000 barrels a day. it could even be more. as we move through the year and as it becomes more obvious what

the real supply numbers are going to be talking. as they were talking on "squawk box" before 9:00, this wave of supply against sluggish demand growth should indicate prices should start to fall. >> presumably, sandy rehberg will manage that. >> saudis want to keep oil just below brent, but the saudis can't do it all by themselves. >> we'll read this as well. pro-moscow separatists were not represented. ukraine's interim leaders discussed plans to give eastern regions greater autonomy ahead of presidential elections on may 25th. the absence of pro-russian voices are to doubts that ongoing tensions can be diffused. how is ukraine and russia

impacting? >> hardly at all. >> if you look at prices since originally the crimian kriss erupted earlier this year, now we moved on to ukraine, you'll see that brent, you quoted the iaea saying that ukrainian tension has helped support prices at higher levels. not by very much at all. quite frankly, very few people expect any sanctions or extension of sanctions against russia are going to seriously affect oil and gas exports. which would be bad for the russians because it's a source of their earnings. also, if there is a major fall in supply from russia, of oil and gas, that is inevitably going to raise prices at least in the short term and of course we're talking at the beginning of this "worldwide exchange" today about weak economic growth in europe and in other places. rising energy prices as we know have a dampening effect on economic growth. western governments don't want that. >> they certainly don't. neil, good to see you today.

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we're just an hour and 12 minutes into the trading day in europe. we're weighted to the downside, moved lower by that gdp number. coming out, disappointing for both italy and france this morning. right now decliners currently outpacing advancers by a ratio of 5-4. it's weighted to the down side. we were up earlier. the u.s. equities finished lower. we saw a sharp decline in the u.s. treasury yields. the ftse 100 was down 5 points yesterday. fairly flat at the moment as is the xetra dax as well, the cac current is off 0.1 and the ftse mib off 0.4%.

flat for the french economy as well in the first quarter. german economy doubling its growth to 0.8%. as far as asia markets are concerned, the spx up. the sensex, we'll get the final results of the polls of the world's biggest election. nikkei down 0.75%. individual stocks to look at in europe, shares in both car phone warehouse and dixons. they were up first thing this morning. they are now down. the two firms announcing to emerge. dixon's retail down 0.27%. they call this a merger of equals. it's worth about 3.8 building pounds. it's an all-share deal. dixon's car phone plc will likely find a place as well in the ftse 100.

charlie dunston will take the chairmanship of the board. the dixon's ceo will become dixon's car phone ceo as well. during the session yesterday we had a yield of 2.52%. 30-year down at ten-month lows as well. we saw the biggest single fall for around about two months. bund-year-olds lower. and gilt-year-olds back below 2.6%. as we work out whether the ecb will obviously come up with from action next week, the euro has been under pressure, the euro/pound back down to 0.8162. sterling/dollar, 1.6737. following the inflation report we got yesterday. what was clear about the unemployment data was still no pickup in wages earnings. not by the amount we thought we

were going to get. and dollar/yen, just below 1.02. euro/dollar, 1.3660, about a six-week low. that's where we stand with the markets. let's turn our attention to world news. this looks to be set at the worst mine disaster in the country's history. the blast at the soma mine has claimed the lives of 282 workers while dozens remain trapped underground. richard engel has filed this report. >> reporter: there is not a lot of activity at the mine right now. the rescue operation has been suspended overnight. the hope is come morning, the flames will have died down to the point where the rescue workers can keep dig. at this stage, there's not a lot of hope of finding more survivors. as that hope fades, anger is growing. today there were violent con front takings in the towns close to this mine as wellative atre

confronting police. the prime minister came here, gave a national address, several press conferences and a lot of people thought he was being dismissive. the government's line was accidents happen, mining is a terrible industry and these things just sort of happen and we have to accept them. a lot of people here as soon as that was said, went out into the streets, they surrounded prime minist minister's car. after that, violent clashes in the capital ankara, riot police called in with tear gas and people were setting fires in the streets. istanbul, more violent clashes. water cannon, tear gas used there. last night, people were watching, hopefully they would

see some positive result but after nearly 300 people have been confirmed dead, now the question many turks are asking is how violent the reaction will be to this horrible incident. >> that rescue operation is continuing. these are the latest shots around the mine. elsewhere, according to reports, five vote ma me-- votie workers have died. the protests began after china placed an oil rig in waters claimed by both beijing and hanoi. protestsers are seeking to ask thailand's government -- he was meeting the election commission to fix a date for new polls. the disruption came just hours

after anti-government protesters willed three. california's governor declared a state of emergency in san diego area where nine wildfires are burning. thousands of residents have been evacuated. the local amusement park is closed due to power outages in the area where a golf club and taylor-made offices are also closed. the central bank has not ruled out further easing and they are determined to act swiftly if needed. he did say he sees no distinct signs of deflation in the eurozone for the time being. the euro moved lower on those commentses awell. the ecb is expected to unveil a package of policy options for its june meeting. david is still with us, chief

economist at jeffries. how far are they going to go? >> given what we heard last week at the press conference in particular and given the weakness of gdp and potentially a very low inflation imprint in may, they cut the rate, to 0.15 and take the rate negative to minus 0.1. the other thing about introducing, say, an ltro for basically for lending to smes. you can link that very clearly with the forward guidance. what you can effectively say in terms of selling the story, we're doing this for four years. the banks will, let's say, pay an average interest rate over that four-year period. that rate will basically be 0 over the four-year period. it really does reinforce the market. >> how will this money actually get into the pockets of the smes. >> only if the banks use the

facility. it has to be directly lending to smes. at the end of the day, it gets diverted among the banks, i don't know. the idea will be linked to enlding to small, medium size enterprises. you can link it in with forward guidance to further ratchet down rates at the shorter end of the curve. also try and get the currency down. >> can they get the currency down? i thought we gave up targeting currencies. >> when you talked about our colleagues in foreign exchange, they think a key reason why the euro had gone up is because of the central bank's balance sheets. a . >> i thought also there were not sellers. european banks are not sellers of the euro, are they? >> no, no, there is a view that you need quantitative easing to get that down. >> do you think the end game has

moved on. >> it's probably moved on. cutting rates, taking the depo rate negative and doing more forward guidance linked to sort of lending type thing would, you know -- >> it's interesting what would help if we had u.s. yields going up and a sign of things in the u.s. ten-year treasury kbreelds are at 2.52%. >> there is an argument, obvi s obviously, for example, u.s. ten-year treasury yields cross over with other yields. maybe a lot of investors will say, that's it, i'm buying u.s. assets now. no longer buying into the eurozone. the ecb will take a view that later this year the currency will fall because rates in the u.s. -- >> i wrote an article saying that, david. we're still a long way away from it. is there a question of ecb doing the minimal it can and buying time? >> it's certainly buying time.

at the end of the day, it will try to do more talks and measures as well as cutting interest rates. they'll buy time in a sense that later this year the currency may fall and we don't want to do quantitative easing. >> is the only reason to do quantitative easing to weaken the currency? >> one of the key reasons, yes. you could argue it would be helpful for other prices. spreads have come inside the system. the other thing which is key is the aqr, asset quality review. what they want is by the time we get around to the publication, the banks that need to raise the capital have basically raised that capital. we're not surprised on the huge capital shortfalls around the system. what they need are conditions to remain -- >> they might have to offset again. >> well, if conditions remain favorable and banks are able to raise capital relatively easily. then from their perspective, slightly job done. if you get a tension where tensions will flair up between now and the publication of the

quality asset review, the ecb will have to do something else. that will be important in terms of the next few months, also understanding what's on the bank's balance sheet. banks are so important in the eurozone. >> yes. >> over three times eurozone gdp and most of the borrowing is done by the banks, by the capital markets. >> i'm less surprised we're in the mess we are. thanks for that, european economist at jeffries. back to the story in turkey, a blast at a coal mine claiming the lives of 282 workers, dozens remain trapped underground. joining us on the phone is burak ozcan. we've heard about the anger emanating from the families of the victims towards the prime minister. do they feel enough isn't being done? >> yes, actually, the prime

minister was at soma yesterday. he went to the mine and he investigated what happened at the mine. when he came to the venue and made a speech about what happened, after that speech, same came there to protest him. at that point he was faced with some criticizing. but then like in 15 minutes he left the scene. >> what is happening today? what is happening at the moment? >> search and rescue operators still couldn't put out the fire. still we can't see this rising from the mine. the rescue operations halted for

like three hours. they started again like four hours ago. i saw that from operators carrying blankets and probably it will be all used by -- who died in the mine. already 282 people died but we are expecting that number to rise. >> how many do we believe are still trapped? and do we know whether they are still -- how many of those might still be alive? >> it's hard to say that if there is anyone in the mine still alive or not. but yesterday that question was posed to the prime minister and how many people you think that is still in the mine. and he gave the number that he said nearly 120 people still trapped in the mine. but after that point, we saw

that like 20 miners pulled out from the mine and probably still there are 100 miners in the mine. >> burak, thank you very much for joining us. burak ozcan, ntv reporter. will it strengthen the government's hand in ge's battle for alstom? having the cloud allows us to rapid prototype a lot of ideas. being able to pay as we go is crucial for a start up. having to fork out a lot of money up front was risky. we can launch a feature really quick, and if the feature doesn't work, we haven't lost anything, and we can have something up and running in days. and this would not be possible without the cloud.

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you're watching "worldwide exchange," bringing you business news from around the globe. and the headlines from around the globe, divergence in the eurozone, german growth doubles in the first quarter, beating estimates. france calls for no growth at all, italy is negative. the euro drops on that news and comments from ecb vice president talking up further stimulus, saying the central bank is not ruling out more policies to battle low inflation. another day, another deal. british electronics giants car phone warehouse and dixons sign off on a 3 billion pound merger.

and grief turns to anger, following the soma mine collapse, the death toll sitting at 282. european equities an hour and a half into the trading day. we've come back down to the flat line and into negative territory following the posting of the latest gdp figures from italy. the country contracted in the first quarter, down 0.1%. france is fairly flat. that constitutes 40% of the eurozone. all eyes will be turned to the ecb will we'll get the latest print of inflation in a half hour. that may show it ticking down once again. it's possible we might get a 0.6 print as well on that number. on the bond markets, yields are low. treasuryi i treasury-year-olds currently down.

german-year-olds 1.36% and gilt-year-olds below 2.5%. italian yields down 2.9. we're currently at 1.3671. the dollar/yen steady, the sterling to 167.52. more earnings to focus in on as well today. investors are dialing up the british telecom's operator, talktalk this morning. they say they signed up over 1 million customers to its popular tv service. the london stock exchange group also on the up after reporting a near 50% rise. the group puts the growth down to the economic recovery, encouraging companies back to stock markets. in a first on cnbc interview, the ceo was asked if the exchange was open to russian companies in light of economic sanctions. >> russian companies, of course, very welcome, just like chinese,

india, american companies, latin american companies. african companies. we see growth everywhere. very much right here at home in the uk as i said earlier. that's very good news. london remains extremely attractive to global companies that have global strategy that need not only to raise capital to fund their growth but offer the possibility to investors based here to tap into that growth. >> and in sweden, h & m sales rose well above analyst expectations. budget fashion retailer posting sales growth of 17%, this after a 13% increase in march. they expected a rise of just 10%. and deutsch post in the red by around 3% after a lower-than-expected increase in first quarter operating profit. let's get more. annetta is in frankfurt with the details. hi, annetta. what's the proper for them?

>> currency fluctuations in emerging markets, that is what the company was telling us early on today. of course one has to say the dhl freight unit is the biggest freight company of the world. they have a very big footprint in emerging markets and latin america. with the euro strength, there's a fact on revenue and also triggering down on their bottom line. they are saying without those currency effect, revenue had actually been up by 5%. but, of course, also other factors are not going down to investors such as the negative cash flow the company is posting as their debt pile is quite huge and also the outlook is in line with expectations but nothing really to cheer everybody up here on the market site. looking at the shares, they had a huge rally on a year basis.

they have been outperforming the market substantially, so there might also be a little bit of profit taking taking place right now. looking at the ebit, it rose actually by 2.3%, which is a little bit shy of expectations. also revenue came in a little bit shy of expectations. but really nothing to trigger that more of a sell-off for those shares today. when we look at the individual division, the dhl unit is doing really well. we have a rise in operating profit of 14% . the e-commerce, the eletter post division here in germany is not doing very well. with that, back to you. >> annetta, thanks very much indeed for that. the gdp numbers keep coming here in the eurozone as we work our

way towards the collective eu or eurozone number in 20 minutes or so. portugal, first quarter gdp, flash estimate contracting 0.7% on the quarter, up 1.2% on the year. so the portuguese economy still contracting, flash estimate is minus 0.7% for the first quar r quarter. these numbers going into the eu composite number. we think that will come in at around, potentially, plus 0.2%. back to earnings, cisco reported better than expected third quarter figures and it's fairly updata about the future. josh lipton has more from silicon valley. cisco reporting and charging higher in the after hours. the tech bellwether which makes equipment that directs data traffic across the internet reported q3 results that bested expectations. analysts were looking for eps of 48 cents on revenue of 11.4 billion. cisco reported 51 cents on 11.5

billion. the stock really popped in the after hours though when ceo john chambers gave guidance on the conference call. he guided for q4 revenue to be down 1% to 3%. that still implies revenue better than what the street expects. analysts were curious about the guidance. he chalked it up to a strong backlog and bookings growing faster. he talked about cisco's commitment to capital return. the company returned $3 billion to shareholders in the quarter. josh lipton, cnbc, silicon valley. the latest on cisco, ge meanwhile says it's pursuing constructive talks with the french government on an alstom deal. it also says its plan is to create a world leader as well as creating jobs. those comments come as the french prime minister manuel vols.

the decree adds energy, water, transport, telecom and health care to an existing narrow set of strategic secretary ares. the new legal powers might happen the economic minister block a takeover of alstom. stephan has the latest in paris. do you think that's what's going to happen? >> sorry. >> do you think that is what is going to happen? they're going to use this new law -- are they going to pass this new law in time to block this? >> it's a decree. they won't need a vote of the national assembly. this is where the government is surprising. we knew it wanted to interfere in the negotiations. this decree was not at all expected. it's basically an extension of an existing law. so far in france, the nuclear sector, the defense sector and the encryption technologies were considered for being strategic. now, there are plenty of other sectors that are strategic, including water and energy transport telecom and health

care which means clearly it gives the economy minister a new tool to at least talk about the negotiation, also perhaps block a potential deal between ge and alstom. the economy minister says the outlook is not positive. the french government asked a few days ago for ge to include some of its transport activity in the deal. the economy minister says the discussions with alstom were extremely constructively. that's a clear indication about his preference. we knew that it was in favor of the german solution for alstom. not general electric. even if officially the french government has no preference in that story. >> actually, stephan, is there a german solution? do siemens want to do anything? >> siemens wants to submit an

offer to alstom. it was given two weeks ago access to the nonpublic information in order to prepare an official deal, an official offer for the time being. there is no bid on the table. siemens is still working on it in connection with the french government. there's almost no doubt that the german company will make an offer at the end of the month. this is when also alstom is expected to make a choice. alstom is looking currently at the offer from general electric and the panel of experts is looking at the offer and will bring its conclusion at the end of the month. we'll talk about that story a bit more. >> i'm sure we will. i'm absolutely sure we will. good to have stories to talk about. for now, stephan, thank you. it's that time to talk about access middle east. on may 26th egyptians go to the polls to try and elect a new president. the former army chief is the

popular front-runner. can he convince international investors that he's got what it takes to turn the economy around after three years that ousted the former president, hosni mubarak. we have an exclusive interview ahead of egypt's biggest investment bank. good to see you. what are the thoughts of the investment community on these forthcoming elections? >> likewise, ross. great to see you. egypt's macro economic story is characterized by weakness. this say country, remember, that depends on fdi, depends on remittances from abroad and tourism. the latest tourist arrivals, down some 32% year-on-year. a great opportunity for to us go to cairo and sit down with him to get a sense of where this country is going. just for context, efg hermes, i

asked him whether the return of a military man to the presidency meant the return of old ways of doing politics and business. have a listen. >> no. i think the situation has definitely changed, you know. there is more activity that is on the street. and there is also an intention to participate in the democratic process a lot more actively than before. i think the situation has changed a lot since 2010 for sure. >> talk us through then what types of investors are willing to put capital to work in egypt? who comes to play the game? >> a lot of the people that are looking at egypt today are looking at the consumer driven industries. so anything from food to cars to anything that has to do with consumer staples. i think the main reason behinded that, you find a country of 80 million plus population that

needs different products from food and beverages to medicine to clothes and so on and so forth. >> now as much as he has faith in egypt's economic story, the potential, efg hermes is looking to invest outside of borders pft coincidentally, those are the two countries thatproven to be the biggest financial supporters. they were officially upgraded to the emerging market list. opportunities here. take a listen to what he had to say on those opportunities. >> they're huge markets. saudi arabia is one of the largest markets in the middle east. and the wonderful opportunities that are there for new capital

are just huge. that mark set definitely difficult. it's highly competitive and it's not easy to operate. and for sure, especially for an independent investment bank. ue is a market coming back for sure. you see positive sentiment about it. it's always been a region for the entire middle east. these two markets seem to be quite suitable for us to grow in over the coming period. >> interesting to point out here that he made it clear to me that the saudi branch of hermes had not lived up to expectations, the market had proven difficult, competition was stiff and regulators have been slow to open up the mark tote foreign investors. i'm going to try to not give away too much of tonight's conversation. it's definitely worth tuning into the full edition of access

middle east. we'll be looking at opportunities elsewhere in africa. again, he's supporting sentiment in terms of africa being the next frontier for banks. also how he sees charges and allegations against efg hermes for alleged misconduct. see what he has to say on that. of course, we'll get the broader take on egypt. make sure you tune in for that, ross. also want to tell you that just knowing that you make it for the show just gives me an extra incentive to make the most out of every interview. >> that makes me feel very good about myself. thank you for that. "access middle east," tonight, don't miss it. program it into your epg, electronic program guide. also still to come on the show, a spending frenzy helps japan gdp up to a two-year high. we'll get the latest from tokyo after this.

you're watching "worldwide exchange." japan's economic growth for the first quarter this year come in stronger than expected. an annualized 5.9%.

we have more from the nikkei in tokyo. >> hi, ross. yes, an increase in domestic demand was the main factor as capital investment rose sharply during the runup to the consumption tax hike that started on april 1st. the number of workers and their wages also increased. and consumer spending for durable items leaped nearly 40% as pricey items were snapped up. the durability of the recovery remains a challenge as the effect of these factors lessen over time. an economic minister said a rebound in spending after the tax hike had been within expectations and was moving at an ideal pace. however, he also said exports were below expectations. he stressed the government will strive to realize its growth strategy or the so-called third arrow as effectively as

possible. that's all from uk business report. back to you, ross. >> speaking to cnbc exclusively from the kazakhstan, the governor kuroda said he expected the outlook to be brighter. >> in the last five quarters, positive growth continues. of course, growth rate fluctuated and the second quarter, april, june, maybe quite low. this fluctuation is ineffabvita. but the trend has been always above japan's potential growth rate. as far as negative shock of consumption tax hike is concerned, it is as we anticipated. we have a japanese economist at hsbc in hong kong. zumi, good to see you.

there was a better than expected gdp number, though. how much are we going to give back in this quarter we're now in? how much consumption did we bring forward because of that sales tax hike? >> yes. i think the contraction in the second quarter is inevitabinevi. i do think that the anecdotal evidence from retailers discuss ing april sales suggest that the fallback in spending is no worse than expected. i think contraction is inevitable but it will not be a repeat of the previous tax hike which saw a sharp fall in gdp in the second quarter. >> capital spending up 4.9% on the quarter. is that a sign that firms are starting to invest in future growth? this is the key point, isn't it? if we're going to get the third arrow working. >> absolutely. i think from the boj's

perspective as well, corporate revival is key to sustaining recovery after household spending slows down. after looking at the fairly impressive gdp print, the upside surprise was by far the biggest element of surprise. i do think it does show firms are starting to be more constructive aboutablying capital spending forward. >> where is that capital spending? does it come from manufacturing or nonmanufacturing firms? >> yes, actually so far it's been predominantly the nonmanufacturers that have been driving this pickup in capital spending. i think the manufacturing spending will pick up but not until the second half. we need to see a more convincing recovery in exports before we see a boost in manufacturing capex. >> how much is down to the currency, how much is down to things picking up in the eurozone or china or elsewhere? >> yes, almost none of it is the recovery so far has been based on the currency move.

that's because japanese exporters have not changed their pricing strategy, passing on the benefits of a weaker currency. so it really comes down to whether global demand picks up. we do see a brighter picture for the global economy in the second half. >> when you add all of that together then, do we or do we not get more stimulus from the bank of japan? >> we don't see the bank of japan moving for the rest of the fiscal year. i think this gdp print is another data point that adds to their confidence that the japanese economy can weather the impact of this tax hike. and as long as growth remains fairly firm, i think they're going to be confident that inflation will move towards the 2% target. so i think the bank of japan will remain on hold and the earliest timing of additional easing will likely be the second anniversary of the quantitative and qualitative easing program. april 2015. >> look, where does that leave us as well with abe and more

stimulus and his third arrow? >> it means that the ball is in the government's court. the most important, i this i, policy move coming up is the second round of growth strategy reforms that are going to be announced in the end of june. i think given that the bank of japan has delivered on its policy easing is up for the government to sustain excitement about the japanese recovery story. so i think you're going to see the government try to push forward more reforms in june. i also think if -- this is not our base case but if growth surprises on the down side in the second quarter, i think it will be the government that offers stimulus in the form of another supplementary budget package. >> finally, zumi, what is your team at ecb saying about what happens with the yen? >> we see the yen, you know, going back down towards -- the dollar/yen going back down towards 1.01.

we don't see further depreciation in the yen. >> fair enough. thanks for joining us. reminder of what's on the agenda in asia tomorrow. big story, india's election results, we'll be in delhi as we get those. we'll find out what they mean for investors. the sensex up at year highs at the moment. an awful lot has been put in on mr. mody forming a government. has too much been priced in hong kong releases its gdp focus as well, so will malaysia. fast food workers are staging a one-day protest in 150 u.s. cities in more than 30 countries, including britain, brazil and japan. they're seeking $15 an hour in the u.s., more than double the federal minimum wage. businesses are generally opposed saying that would cut into their profits, reduce hiring and force them to raise prices. mcdonald's, says it offers

competitive pay and benefits with opportunities for advancement. take a look at the highest minimum wage levels. the u.s. sits below australia, france, new zealand, uk, canada and japan. is the minimum wage in the u.s. too low? let us know. join the conversation. e-mail worldwide@cnbc.com, tweet @cnbcwex or directly to me, @rosswestgate. we're off 1.3 in italy. remember that gdp a short while ago showed the italian economy contracting in the first quarter, minus 0.1%. the french economy flat. german gdp doubling.

v divergence continues for the yaur eurozone. we will get the latest gdp and the latest inflation number as well. might it tick back down? there is now a wide perception for investors. the ecb in june will cut by 15 basis points and maybe take the deposit rate negative. we'll get into that. as we do so, u.s. futures are currently trading, after the falls yesterday, we're pretty much on fair value at the moment as pell. fairly flat forecast for the u.s. plenty more to come in the second hour of the program.

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you're watching cnbc "worldwide exchange." divergence in the eurozone, german growth doubles in the first quarter, beating estimates. but france records no growth at all. and italy contracts. euro drops as well as the ecb vice president talks up possible further stimulus, saying the central bank is not ruling out more policy easing to battle low inflation. it's nervous time. david tepper rings the alarm on the rally, warning that the market is getting dangerous.

clashes erupt across turkey, grief tornados to anger following the soma mine collapse, the country's worst ever industrial disaster. the death toll now sitting at 282. you're watching "worldwide exchange," bringing you business news from around the globe. welcome to the show. if you've just joined us, we start this hour with data out of the eurozone. inflation data all important for the ecb has remained steady at 0.7%. that is the consensus. we just thought there might be a chance it would take down to 0.6%. it has remained at 0.7% on the year. the annual rate inflation ex energy and unprocessed food up

0.2% on the month. that's as expected as well. inflation has stayed steady. as far as gdp is concerned, the flash estimate first quarter gdp has come in at 0.2%, quarter on quarter. that is below the consensus forecast for a print of 0.4 and 0.9 on the year. the consensus for that was for 1.1. so eurozone fourth quarter, 2,000 gdp growth revised down to 0.2 perfect the previously reported 0.3. the flash estimate for the eurozone, quote, unquote, growth 0 .2 below consensus. currently around 1.3669 the euro/dollar. we're down at six-week lows at the moment for the euro. the inflation may have stayed at that 0.7% mark after taking back up from 0.5.

just to remind you as well this morning, french gdp flat in the first quarter from the previous quarter. italy still contracting and that is 40% of the eurozone. yes, we had a good number out of germany this morning. it doubled its growth to 0.8%, quote, unquote. there is pressure on the ecb to act and indeed comments out from the ecb board suggesting they are ready to go. there's a thought that we'll get an ecb rate cut of 15 bases points. joining us for the next part of the show, antoni chen. it's a weird time for you, i know. thanks for joining us. do you have an expectation the ecb will act in june? >> i think everyone is starting to feel as though the ecb will be ready to act. i think these real gdp numbers that we see in the first quarter are certainly going to motivate

them further. we've been hearing comments from mario draghi, constancio and others that the ecb is prepared to act. i see every indication out there that they won't disappoint. >> do you think it would make any difference, i suppose is the next point? >> yes, i do think it's going to make a difference. i do see a little bit more coordination along the way. i hear messages from janet yellen and the federal reserve that the economy in the united states, because of the labor markets, are going to need a little bit more support. that doesn't mean they're not going to continue to taper on the bonds. it may mean the federal reserve in the united states may stick around a little bit longer. we're hearing more and more noise out of individuals out of china, whether it be policymakers or investors that

somehow they're very much focused on trying to stabilize that economy. we've seen some actions already with lowering reserve requirements for regional banks with stimulus packages. we see different kinds of stimulus around the world supporting the economies. pretty much we'll see these things add up to a lot more stimulus. i'd have to believe all the stimulus is going to have some impact. >> of great concern to companies in the eurozone and to the french and the italians has been the relative strength of the euro. here we are, it is weaker against the dollar at 1.3672. last week we were up at 2.5 year highs, anthony. there's a thought here that the ecb will turn around, hopefully it will push the dollar higher an they won't have to do much more. how long will they have to wait for that to happen? >> believe it or not, we are starting to see that happening.

as you mentioned correctly, we saw the euro close to 1.40 when mario draghi talked about the possibility of easing as soon as june. we've seen the euro gradually coming down. i think that weakening euro is certainly going to stimulate economic growth in europe. we've been hearing that, that sort of noise from france and now it's encouraging to hear that other central bankers like in the bundesbank in germany are joining the chorus, even though they're joining the chorus quite slowly in the direction of more action. and the more the european central bank moves, that should have a dampening effect on the euro and, therefore, be supportive of growth. remember that one of the most important factors out there for determining exchange rates are relative interest rates. to the extent that the united states tonights their tapering process and eventually results in higher long-term yields and you have the european central

bank moving in the opposite direction, that should have an impact on the euro own that should support economic growth in the eurozone. >> well, let's come on to treasury-year-olds. let's combine it with what we had from david tepper as well. this is the man that made the most money from any hedge fund manager last year. talking at the conference in las vegas, tepper says investors should approach the markets with more caution. i'm not saying go short. just don't be too long right now. this is probably a time to think about preserve something cash. among thinks concerns are weaker-than-expected concerns. tepper says now i have a position where i'm long enough on exposure where i can bring it up or take it down. i am nervous. i think it is nervous time. those comments helped push treasuries to a session high. ten-year-year-olds then hit the lowest level in more than six months. anthony, we saw treasury-year-olds hitting

six-month lows of 2.52%. so while we're talking about we're going to get the changes in relative rates, as far as market rates are concerned, it's very hard to see why the dallas will move up against the euro. we have-year-olds in the u.s., particularly at the long end, still falling at the moment. and have we broken through some support levels? are people going to change their minds about the treasury market yet again? >> well, i'm actually encouraged when i hear large investors suggesting that they're nervous about economic growth if the european central bank doesn't move. the more noise we hear, whether it be from government officials or large investors, the more central banks will listen. if there's one thing we learned, in the last several years since the financial is kroo is, central banks are more attuned to what's going on in financial markets. if someone of the caliber or the

status of david tepper makes noise and says he's worried about the european central bank not moving quick enough or aggressively enough and already you have mario draghi basically almost preannouncing something that many central banks in the past have tried to avoid, all this seems to be very encouraging to me. the fact that these-year-olds are coming down is indication that, again, there's nervousness. once you start to see some action, and a catalyst for economic growth, we know david tepper is talking about the fact he would like to see economic growth at 4%. we know that in the first calendar quarter it was a very cold winter and many parts of the country in the united states, unlike in europe, where it was a mild winter, bar basically frozen. that slowed down economic activity. we did see towards the end of the quarter that economic activity came back. we saw car sales in march coming in at levels in the united states that we haven't seen in seven years. obviously in april you couldn't see another breaking record. it was still very robust.

economic activity is picking up. >> if it is, anthony, why are-year-olds down at 2.52%? does it surprise you? >> it surprises most individuals but i think it's, again, another sense of uncertainty as to whether or not these policymakers will act. once you start to see policymakers acting, i think the confidence will definitely come back. i think there's always nervousness because if you look at the track record of the european central bank over the last couple of years, mario draghi has constantly said, they're ready to do it. don't underestimate them. in fact, a lot of times, the markets have done the work of the european central bank. this time, mario draghi will have to act. i think the markets are a little nervous he may not come in and act as aggressively as rhetoric is suggesting. i think the markets will be presently srped. when june comes an you see the action from the european central bank, i think these yields will

start to pick up and more enthusiasm in the market. let's face it, if you look at the s&p 500 today and ratio based on market expectations were we're running around a 16.1 price earnings ratio in the united states. that's close to where we have been over the last 15 years on a historical average. prices for the u.s. equity market may be fairly valuable, which i agree with. they're not overpriced. if you start to see even better economic growth or more support from global central banks, we are in fact going to be encouraging. look at the numbers out of japan, very encouraging for the first calendar quart he. some people will explain they were so encouraging it may discourage the bank of japan from acting sooner rather than later. >> anthony, good to see you this morning. stay tuned. we'll come back to you for a little bit more in a short while. right now, let's show you where u.s. futures are ahead of the start of the session, a little bit later.

we saw a retreat from the record highs of the dow and the s&p yesterday. the dow down 0.6%. this morning, we are about, what, 12 points, 13 points above fair value at the moment. we are below fair value for the s&p 500 and 8 points above fair value for the nasdaq. european equities, pretty flat. the cac current is down 0.2%. off 0.1% for the ftse mib as well. treasury yields will move for you. we're yielding at 4.25% right now. gilts lower across the board in europe as well. on the currency markets, take a look at where we stand with euro sterling, 0.8162.

sterling is weaker against the dollar, moving away from that high. euro/dollar, 1.3675. down at six-week lows at the moment. still to come, the rescue effort continues at the site of what is set to be turkey's worst mine disaster. we have a report from the scene after this.

you're watching "worldwide exchange." recap of the headlines, trouble in the eurozone, first quarter gdp well below expectations. don't go short but not too long, either. leading hedge fund manager david tepper warns it's nervous time for investors. the rescue effort continues in soma. the death toll from the turkish mine disaster climbs to 282. staying in turkey, trade unions have called a one-day strike to protest at what looks set to be the worst mine disaster in the country's history. the blast at the soma mine has claimed the life so far of at least 282 workers. dozens more remain trapped underground. nbc's richard engel filed this

report. >> reporter: there is not a lot of activity at the mine right now. the rescue operation has been suspended overnight. the hope is come morning, the flames will have died down to the point where the rescue workers can keep digging. at this stage, there's not a lot of hope of finding more survivors. as that hope fades, anger is growing. today there were violent con front takings in the towns close to this mine as relatives were confronting police. it was triggered mostly by the prime minister. the prime minister came here, gave a national address, several press conferences and a lot of people thought he was being dismissive. the government's line was accidents happen, mining is a terrible industry and these things just sort of happen and we have to accept them. a lot of people here as soon as that was said, went out into the

streets, they surrounded the prime minister's car. his security detail seemed quite concerned and rushed him out of the area. after that, violent clashes in the capital ankara, riot police called in with tear gas and people were setting fires in the streets. istanbul, more violent clashes. water cannon, tear gas used there. last night, people were watching, hopefully they would see some positive result but after nearly 300 people have been confirmed dead, now the question many turks are asking is how violent the reaction will be to this horrible incident. >> cnbc's richard engel. rioters attacked premises on industrial parks in the south of vietnam that seemed to be chinese owned.

the protest bang after china placed an oil rig in waters claimed by both beijing and hanoi. he was meeting the election commission to fix a date for new polls. the disruption came hours after anti-government protesters killed three. california's governor declared a state of emergency in san diego area where nine wildfireses are currently burning in the town of carlsbad. several homes and businesses have been affected. thousands of residents have been evacuated. the local amusement park is closed due to power outages in the area where a golf club and taylor-made offices are also closed. still to come, not so fast food as workers stage strikes in the u.s. and cities across the globe. is it time they got your -- they

got a wage hike? we get your reaction after this. as we do that, into the break, just a reminder, we're weighted to the downside for european equities, flat to lower. [ female announcer ] there's a gap out there.

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after retreating from record highs yesterday, u.s. futures this morning are currently suggesting fairly flat start. the s&p just a point below fair value. the nasdaq up 8. on the agenda today in the states, weekly jobless claims are out at 8:30 eastern. forecast to rise by 1,000 to a total of 321,000. at 8:30, we get the cpi number. prices are forecast to rise 0.3. we have the latest philly fed and nahb survey. we get earnings from walmart, kohl's and jcpenney. anthony chan is with us this morning. when we look at the inflation number this morning, what do you think it will tell us and how will it need into the fed's

thoughts? >> i do think inflation will pick up a little bit. we can see a year-over-year inflation rate that will be closer to 2%, given the base effects on a year-over-year basis. we saw the producer price index the day before. that came in hotter than the market was expect. we are going to see inflationary pressures picking up just like we'll see economic growth in the second quarter. we'll be able to get rid of the problems that everybody is worried about, namely the treasury-year-olds coming down. when you see economic growth accelerating by 3% or more, my research finds that treasury-year-olds go up by about 34 basis points when the acceleration in growth occurs and another 11 basis points. >> you think this drop down in yield is unwarranted? >> i think it's unwarranted.

historically going back to 1990 when you see an acceleration of growth, remember after the revisions are in for the first quarter, i think the gdp numbers can be as low as minus 0.5% for the first quarter or 3% or more. historically, that's been extent with a 34 basis point increase in the ten-year treasury yield. >> we have the national association of home bullers survey. housing starts data scheduled for tomorrow. how much attention to we give this, bearing in mind this is the one area janet yellen has suggest suggested, housing activity, could offer downside risk to the economic forecast. >> absolutely. i think janet yellen's mentioning of the housing market will give these numbers that normally don't get more than a yawn from the financial markets, paying more attention. i think the home building index could pick up a point. over the next couple of months we are going to see the thawing

out of the winter chill. i think we'll see an increase over the next several months. tomorrow's housing start numbers will pick up, perhaps picking up 2% to 2.5% month over month. we already are starting to see people coming back to looking at houses. i think the sentiment in the home bullers index will pick up. >> good to see you. briefly before we let you go, what's your call at the moment for when the fed actually moves higher with rates? >> i think that the fed is probably going to move in the second half of 2015. i know a lot of people are focused exactly at the end of the second quarter. i think it will probably be somewhere in the third calendar quarter where they're going to raise rates. the key here is they'll raise them very slowly. >> thank you for joining us this morning, anthony chan, economist at jp morgan chase.

fast food workers are staging protests in more than 30 countries today. they are seeking $15 an hour in the u.s., more than double the federal minimum wage. businesses are generally opposed, saying that would cut into their profits, reduce hiring and force them to raise prices. we're asking what do you think the minimum wage should be in the united states? is it too low? does it need to rise? is it okay? evan tweeted and said no, minimum wage jobs aren't careers. want more? get the experience and get a better job. [ male announcer ] it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans.

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you're watching "worldwide exchange." i'm ross westgate. the headlines, growth disappoints. gdp and the eurozone below expectations for the first quarter. weaker figures in italy and france taking the shine off a stronger performance in germany. it's nervous time. billionaire fund manager david tepper rings the alarm on the rally, warning that the market is getting dangerous. cisco beats the street. the tech giant says recovering demand in the u.s. and parts of europe has offset sluggish sales in emerging markets.

and clashes erupt across turkey. grief turns to anger following the soma mine collapse, the country's worst ever industrial disaster. the death toll now sitting at 282. you're watching "worldwide exchange," bringing you business news from around the globe. good morning. if you've just joined us state side, we saw an end to the record highs that we saw in the dow and s&p, a retreat from the record highs during yesterday's session. this morning, fairly flat calls for u.s. markets. the s&p off 0.5, the nasdaq off 0.7. this morning, the s&p 500 is currently just below fair value, not by much. the dow is some ten points below fair value.

the ftse 100 is flat, the xetra dax is fairly flat as well. disappointing gdp figures today. german gdp was pretty good, came in at 0.8% in the first quarter. the french number was flat on the quarter and the italian number was a negative minus 0.1%. those two countries are 40% of the eurozone. that dragged the composite number down to up 0.2% for the first quarter. consensus was for it to be up 0.4%. inflation was as expected. we thought that might tick down a little bit. that's the latest data and news out of the eurozone as well. what are investors to do? here's a recap of some of the thoughts we've had on the channel. >> the challenge right now is that some companies are announcing major transformational deals. i already own the bonds of that particular company. that's really what causes anxiety to companies. i would happily lend to one of

the larger corporations. i'd probably want to do it at a slightly higher risk premium or a slightly higher yield. >> i think nigeria, you can tell from all the stats, gdp growth is really strong. that economy is growing, will be larger and larger and larger. the insurance industry is really tiny in nigeria. there's a great opportunity, the companies that have the skill sets and we want to be one of them. >> it's already normal reporting. if anything, the banking sector, you know, that dead weight that's been holding us back from earnings has been okay. it's been fine. it hasn't been a complete disaster this time. i'm actually now thinking that earnings were men the to move, finally, two years after we thought it might appear, turning up here in europe.

some of the thoughts already today on the channel. meanwhile, cisco reported better than expected third quarter results and it's pretty upbeat. cnbc's josh lipton has more on the company's results from silicon valley. >> cisco reporting and charging higher in the after hours. the tech bellwether, which makes equipment that directs data traffic across the internet, reported q3 results that bested expectations. analysts were looking for eps of 48 cents. cisco reported at 51 cents on 11.5 billion. the stock really popped in the after hours, though, when ceo john chambers gave guidance on the conference call. chambers guided for q4 revenue to be down 1% to 3% but that still implies revenue that's better than what the street expected. analysts were curious about the guidance. it was the first question chambers fielded. he chalked it up to a strong

backlog and bookings growing faster. he also talked about cisco's commitment to capital return. the company returned $3 billion to shareholders in the quarter. josh lipton, cnbc, silicon valley. hedge fund and activist investors have set up their campaigns in recent years. one of the targets has been pepsico. jackie's got the details for us at cnbc hq in the states. good morning. >> good morning to you, ross. that's exactly right. a prominent activist investor is taking dead aim at pepsico, describing the company as having a culture of -- ed garden is vowing reform will come to the company, citing part of that change will have to be management strategy. it's not often that they can get on the same page with management and find common ground.

he said they built a huge corporate bureaucracy. it's demanding that the company split its drinks business from it's frito lay snacks division. they tried to outline the proposal but said pepsi has been dismissive. the company has tried to review the proposals but it wouldn't maximize shareholders value. chipotle, the top shareholder advisory firms, are also recommending that investors oppose the compensation plans. they criticize the restaurant chain for what they call a disconnect between pay and performance. it's not like the company is performing badly.

over the past five years, the stock has risen from about 80 bucks to more than 600 before dropping back to about $500 now. however, they have two co-ceos, tell ells and montgomery moran. they earn a combined $93 million last year, including large stock options and about $20 million each in performance shares. you know, ross, there's that issue about guac-pocalypes. >> not easy to say. >> say that five times fast. >> okay. no thank you. i was amazed i managed to get it out once frankly. guam mo guacamole prices going up. >> exactly. >> what will happen with the

dip? i'm shattered by that news. good to see you. we'll have to see -- what's the other dips, hummus or something. gm has reportedly hired a law firm to view how information about the faulty ignition switches were december emanated. they've call for a probe it ensure vehicle safety issues are brought to their attention more quickly. gm stock in frankfurt just off 0.2. this brings new meaning to the phrase well fed. someone is paying $70,000 for a lunch with ben bernanke. they go to the robert f. kennedy center for justice and human

rights. we're told mr. bernanke gets to choose the restaurant. and then presumably the bidder also pays the food bill as well. that all comes on top of the 70,000 that he's bid to have the lunch. still to come on the show, is the future full of bright lights for land securities? will they blow a bit of a fuse? i don't think so. we'll be speaking to the ceo first, right after this.

you're watching "worldwide exchange." a recap of the headlines, trouble in the eurozone, first quarter gdp comes in well below expectations. inflation is kept low in april. don't go short but not long either. david tepper warns it's nervous time for the markets. and the rescue effort continues in soma. the death toll from the turkish mine disaster climbs to 282. we turn our attention to the british commercial real estate sector. land securities today, posting a strong set of full-year problems. pre-tax profit doubling in the period, this is britain's biggest listed property developer. it says it will end its strategy of building london offices

speculatively. it's served them well. joining us now, the ceo of land securities. the business took the decision to build up to 1 billion pounds worth of london schemes with no letting in place. >> about 2.5 billion. 3.3 million square feet we committed to in 2010. it was a bold call. the markets were in a very different place. we're now beginning to reap the rewards of the risk we took, we've let just outside the building here, a new building to the japanese bank. all going well. >> are you responsible for the hole in the ground that's been outside for the last -- >> we are. >> good. that's another new site though. >> yes. >> presumably you took that because you presumed there was a

shortage in space. >> yes. in 2010 we said listen, the world would come to an end if people stopped building. we had a conviction stem would still want to move. no one had access to capital to build. we did. we took the view if we started, we took advantage of the low construction costs and delivered into '14, '15 and '16. >> what happens now, though? what happens with the now future developments? is the central london market going to be saturated? do you leak at other things? >> not at all. we have a program that takes us out until late 2016. we have 28 months to go. what we're signaling today is the slight risk of profile in development which is why any new commitments will be prelet rather than speculative. >> we have shoing centers

outside london. >> i just want to -- you mention the walkie-talkie skyscraper. it was scorching panels and people were frying eggs on it and all sorts of other things. why was that happening? have you managed to come up with something for that? >> at certain points of the day in a limited time of the year, we got the focal point on sun reflection. >> i think one of our directors was done there this morning. he took a picture. you put sort of curtains or blinds, something, covering on it. >> there's a net on there at the moment. that's temporary. >> the net is temporary? >> yes. >> fine. talk to us about what you do

with the retail space. we have an economy that's supposed to grow 3% this year. >> economic growth and of course a return to real growth in wages is welcome news for retailers. it won't translate into retail growth right across the retail market. the way we shop, changing, the way we behave is changing. there are certain locations that will win out and certain ones that aren't. what we've been doing is selling out of those buildings that we think won't be fit for purpose in a few year's time and re-investing that into our development program. we developed trinity leads, for example. next year, we build on the success in oxford. >> i know that well. it bears my name. what is the changing nature of retail, the different needs you'll have to look for in the future. >> when we go shopping, we go less often.

but when we go, we spend longer doing it. you want to spend more time there. the mark set polarizing into shopping centers which are dominant and also which provide experience at the one end and the convenience local supermarket schemes at the other end. the high street is on a downward slope. >> i wonder if you think that has a reason why supermarkets are getting polarized and the out-of-town single stores maybe aren't doing what we thought we were doing. >> supermarkets, fashion stores want fewer locations, bigger stores. food stores want more longs, smaller stores. >> good to see you. rentals? central lon dan, fast for those? ever as we have been. >> ceo of land securities. some of the other stories,

protesters are calling for a one-day strike. dozens remain trapped underground. the incident sparked widespread anger with crowds mobbing the prime minister's car when he visited the mine. california's governor declared a stat of emergency in the san diego area when nine wildfires are burning in the town of carlsbad. five destroyed a condo building and damaged several homes and businesses. thousands have been evacuated. the lego left-hand amusement park is closed. and taylor-made's offices are also closed. still to come, earnings season attention turns to the retailers. both walmart and jcpenney reporting today. what's been happening with the ring of the tales? out to new york with a view

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we have numbers out of malaysia airlines. of course the airline is missing the mh-370 flight. the flight 370 incident has impacted forward bookings. a dramatic impact as well in its first quarter performance. sales from china down around 60% in march. the sales from china down 60% in march from malaysia airlines. u.s. futures are indicating fairly flat start this morning. we're pretty much on fair value for the dow. the s&p a couple points below it. the nasdaq mini 100 is above fair value.

tom wheeler will unveil his proposed plan for new net neutrality rules at a public meeting today. net neutrality is the idea that broadband providers treat all internet traffic equally. they'll allow some deals which netflix pays for preferential treatment. this plan doesn't reclassify. the fcc is voting on another item. morgan brennan has the details. it will vote on proposals that will affect wireless carriers. with them, consumers. the topic, spectrum. >> the way to think about this from a bigger picture is spectrum is the life blood for a lot of the wireless carriers. it's the connection point from the consumer to the network.

>> there are different bands of spectrum and the fcc has a screen prague ses to determine how much and what kind wireless carriers can use. up for debate is whether to expand the guidelines. the commission will take up another vote as well. whether to set aside frf the most sought after spectrum, low band that's expected to come to auction next year. such a propose posal would limi amount that some giants could purchase. >> if you can free up more pipes, the actual cost for the stuff that goes through the pipes could go down. it's a net benefit to consumers. the key question is how do they free it up in a manner that's supportive of a competitive environment. low band spectrum can travel further distances and it's used primarily for data plans. as customers increasingly turn to smartphones and tablets for

more media consumption. low band becomes more important. >> the more spectrum operators have, the more innovative services and faster speeds they can offer to consumers. >> that's why the details of the proposals will be important. they help determine what carriers participate in the 015 auction and whether the broadcasters think they're coveted wireless real estate is worth selling. for cnbc business news, i'm morgan brennan. david tepper, the maen who made the most money of any huj fund manager last year. now he's sending up a red flag, he says investors should approach the markets right now with more caution. he says i'm not saying go short. just don't be too long right now. he says it's probably a time to think about preserving some cash. amongst his concerns are

weaker-than-expected u.s. growth and the ecb which he believes is far behind the curve. now i have a position where i'm long enough with exposure where i can bring it up or take it down. i'm nervous. i think it's nervous time. the ecb will act in june with a small rate cut and taking deposit rates. walmart and jcpenney earnings out today. jerome martis, u.s. retail sales decreased in april, low consumer hit by unemployment. how does this feed through into walmart? >> walmart, that's troublesome because their core consumer is being hit by ohhigh payroll tax and more health care expenses.

you have the middle class consumer who used to go to walmart to buy staples. they're losing that market share to e-commerce giants like amazon. what's going to be key is to hear what walmart has to say about its traffic and e-commerce initiatives during the earnings call today. briefly, jcpenney, they have easy comparisons but what do you want toot look for? >> well, for jcpenney is what they're saying about inventory and changes in their stores and whether to introduce unique brands. they're trying to regain their core consumer and this will be key. easy comparisons is what's going to make them beat on enings. >> perfect in the time available. thank you for joining us. that's it for today's "worldwide

exchange." "squawk box" is coming up next. we hope you is a profitable day. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪

david tepper has a cautious message for the markets. don't be too friggin'long. that's what it says here. cisco's report card goes over pretty well with investors. stocks still down in the low 20s. thursday, may 15th, 2014. one month after tax day, the greatest day of the year and "squawk box" begins right now.

good morning. welcome to "squawk box." i'm michelle caruso-cabrera along with joe kernen. becky and andrew are off today. good to have our guest here. >> good to be here. we get weekly initial jobless claims expected to come in at 320,000. that's up slightly from the prior week. also at 8:30, we get the april consumer price index. headline number expected to rise by 0.3%. if you strip out food and energy, one-tenth of a percent rise is to be expected. we're expecting some big