a warm welcome from worldwide exchange. >> good morning, everybody. these are your headlines from around the world. >> european stocks hold multiyear highs after a run of positive data following a sharp fall in jobless claims. sentiment lifted by the nasdaq closing above 5,000 for the third time ever. >> barclay's shares the lender sets aside more money to cover litigation costs. >> glencore also in the red.

>> and president obama and netanyahu clashing over iran's nuclear ambitions ahead of netanyahu's highly criticized speech happening today to congress. >> you're watching worldwide exchange. bringing you business news from around the globe. >> hi everyone i'm seema mody live from barcelona and it's all about the survival of the fittest. we have coming up on the show ceo of blackberry, john chen talking about how he plans to keep the company relevant as it shifts focus from hardware to software. plus the cofounder of htc joining me in around 30 minutes to talk about the latest flagship smartphone and the move into virtual reality hardware. where will the next google or facebook come from?

europe? i'll be getting more from phillipe. you're watching worldwide exchange. bringing you business news from around the globe. >> hi everybody. officially good morning. welcome to two hours we have together. we have a lot going on. >> we do indeed. >> good to be back on the show. >> lots of coverage coming. we're manning the fort here. >> exactly. there's a lot taking place this weekend. of course it's march. can you believe it. >> time flies. >> yeah and now we're in marchand it says here it's roaring in like a lion in the u.s. markets which it is indeed. yesterday's rally helping the nasdaq to lose above 5,000 for the first time in 15 years. now it's only the third time ever that we've seen a close above 5,000 for this tech heavy composite. the other two just happening

before the.com bubble burst. in an exclusive interview with cnbc the billionaire investor says he doesn't think that stocks are overvalued. >> stock prices are high by historical measures. having said that we have the most aggressive monetary policy we've had since the founding of the federal reserve in 1913. so stock prices should be high. so if you look at stock prices relative to rates, they're probably exactly where they should be. >> so there's been a lot of debate and i'm glad that we can have a quick comment before we throw out to someone i have a feeling will take a positive view on the nasdaq breaking the 5,000. the question is does it really matter. it's not even is this an all time high itself it's a purely new her cal target. the next could be 5,017, or 5,072. >> we see the dax going to 11,000.

ftse closed at 7,000. i tend to agree it doesn't matter. if anything you should be looking at the index saying i can buy really expensive stocks. >> seema it doesn't really matter as far as we're concerned. what's your view. >> listen i have been having conversations here in barcelona with various international leaders wilfred and for them even if their company isn't listed on the nasdaq they do look at the index as a way to gauge general interest around tech and the health of the overall health sector and speaking to some of them they think that positive sentiment helps when trying to raise funds and it's easier to point to success stories like apple and facebook that are seeing strong growth. not just in the technology space but specifically in mobile. that's where we're seeing the most growth percent year over year. >> i do agree and a valuation change makes a difference and

we're in a very different situation than we were the last time we hit the 5,000 mark. there's other variations of other tech areas. perhaps that is a bigger area for concern. >> you and i have discussed this a lot that perhaps the bubble is not in the public market. the bubble is potentially in the private market. when you look at silicon valley and the big companies there, uber and snapchat some of the investors here are saying that's pushing some of the money from u.s. investors over to europe because just valuation alone is sending them to look for tublts overseas. so the private market we'll have to keep an eye on. the nasdaq debate will continue throughout the show but let's also talk about some of the big themes here on mobile world congress and one is smart cars. the innerconnectivity between the car industry and the tech industry. i'm delighted to say i'm joined by the cio of volvo.

thank you for joining us. >>s it's a pleasure. >> they're trying to unveil the a autonomous car by the end of the decade. when do you unveil yours? >> we already have. we are putting them driven by normal people. so it's tremendously important for us to actually put that in place driven by normal peel on normal roads. >> i know volvo is trying to play a more pivotal role in the space. you're partnering up with the likes of transportation regulators to enhance the user experience so when i'm driving to work i know not to take this one road because there's icy patches on the road. tell us how that technology actually works. >> absolutely. what we see is when our customers are connected we can

enhance their experience. we can gauge road friction and bind them with information about slippery roads but the good potential is also that now we can communicate and share this data with road authorities which we're now doing in a pilot in norway and sweden including the traffic authorities in those countries. >> and the cloud-based system that will empower this technology, who is providing that? >> we are partnering up with eriksson when it comes to the cloud based technologies. >> if all goes well if the success is there, when do you expand across to europe as well as the u.s.? >> the first expansion will be in norway and sweden and then

we'll evaluate further including u.s. and canada. >> it sounds like a great idea but also extremely expensive. you need the infrastructure to provide the sensors and the system that will allow your team to figure out which technology to use and also which technology to relay back to the customer. >> but we can also clearly see that now that the automotive industry is enjoying the journey, that they have taken on we see that the unit cost is significantly decreasing that gives the automotive companies an opportunity to provide these type of technology features including cloud communications for the whole system around a vehicle and a customer today. >> so one day i'll be able to automatically sensor and assess the conditions over road and share that data with other consumers out there.

>> absolutely. >> tell us when that autonomous car will go to the dealership and i'll be able to buy it. >> a lot of companies are pursuing that in various forms. the starting point is to put these cars in the streets driven by normal people on normal roads. that is the starting point to see when this can be rolled out further in europe and the u.s. >> we talked about smart cars as well as autonomous. those are two of the interest points when talking about technology and the auto sector. i'll send it to you in studio but coming up we have a special interview for you all. the ceo of blackberry on the new role out of a phone geared toward us, young professionals. that interview coming up at 10:15 cet. >> extremely young professionals. brilliant seema. brilliant. thank you very much.

plenty more from the tech show in barcelona. you can head online to cnbc.com for more on our tech transformers special as it's call called. including ford motor's plan to help navigate the safest way to work. you can see a video there online online. >> that was a bit of a weak day yesterday particularly in the afternoon as the oil price came back. it dragged the energy sector in europe down. but that followed a very strong february. it was up 6%. so unsurprising the last two or three sessions that we just paused for breath although today having opened flat we strengthened about a quarter of a percent so we're up in the green at the moment in europe but nothing too significant. let's see where that has spread

across: it's across all the main european markets. germany and france are fractionally more than that and italy leading the charge just shy of .5% in the green. one stock we have been watching in particular is barclays because the earnings have been hit by an increase in legal costs but adjusted pretax profit for the year rose 12%. the u.k. lender there setting aside an extra 750 million pounds for potential finds relating to allegations of market manipulation. it's down 2.4%. we had light misses on the core retail earnings which have been crucial since the financial crisis. we'll discuss it in more detail later but weighing in down 2.5%. let's look at bonds and we have seen some moves in the market in europe yesterday. we had record lows from the likes of italy and spain as we

get nearer to the kick off date of qe. that big meeting coming on thursday. italy 1.35%. the u.k.'s 1.8. germany is is going to benefit significantly from the bond buying program at .35. last week it did dip below .3 for a few trading sessions and the u. s. is very close to 2.1% again. pretty much where we were before janet yellen's system which was taken as dovish sentiment from the bond market pulling yields back down to 1.9%. decent data since then. that's pushed us back to the 2.1% area. u.s. dollar yesterday pushing toward a high. it's been particularly strong since last thursday when that data started to improve which puts us below the 112 and we

have seen some u.s. dollar weakness in asian trade this morning. the japanese general strengthening after they suggested it was getting too weak and the aussie dollar boosted today after they failed to cut rates for the second time running which some people are pricing in oil prices sold off yesterday yesterday. that's up 1.6%. >> thank you wilfred. thank you. listen, coming up we're going to be crossing live out to geneva where the 2015 motor show is underway. it's all about connectivity. what tech features do you want in your car? you can find us on e-mail and twitter as well. both of us are on twitter. what's your twitter handle again? at wilfred frost and on top of that the blackberry ceo coming

up at the mobile world congress in barcelona. be speaking to seema. blackberry announcing they'll be launching four new devices in 2015. lots of new speculation about that. we'll get details on that in a bit too.

>> hi everybody. welcome back. you're watching worldwide exchange. >> lovely to be here. >> in the last half an hour or so blackberry is announcing it released a smartphone aimed at the young professional. that's you. >> i'm a super junior professional. >> i'm super, super junior junior. the blackberry leap features a five inch edge to edge screen and a battery that will last hours of heavy use according to the company. hi john good to see you. tell us more about this release i'm here with john chen. you announced the leap.

you also talked a lot about software which you're staking your future on. let's start with the hardware. we heard a lot about low end hardware. sub $200. lots of downward pressure there. as you as confidence in the hardware business and your restructuring of the risk of that as you have been in the past given the downward pressure? how does that fit into that? >> it's the mid range product. it's retail for 275. so it's not low end and it's not high end. i think the high low, end, and mid range are all moving together. we have a lot of innovation coming in the hardware side and we show a couple of conceptual ideas. so i'm really hopeful our business will do well. in the last couple of quarters our business actually makes money. that was the big thing for me.

we have good logistic. good factory arrangement. so i think we have a good handle on it. >> tim long over at bmo, an analyst, said to reach your software goals for 2016 you need to take 7.5 million mobile device management customers from your competitors, sell three quarters of a million enterprise bundles. you announced some new bundles here in barcelona. are you confident in being able to hit the targets and steal the customers and get them paying on blackberry software? >> i'm reasonably confident. i'm still on that. the interesting part is about channels. so the more important thing. we have all the products and all the know how and we release the road map of different suite of

products but it's the channel. we're deepening and broadening our relationship with samsung for example that's now supporting the galaxy s 6 launch. we have a new arrangement in germany taking security software and make it available for enterprises and it's about that. it's about the reach. sprint is going to resell our software. so those makes me more confident. not only just because we have great products. we always do. >> on best 12 how is that going? that's the core product that's going to get you toward that goal of what is it half a billion dollars in software revenue. you don't get there without it gaining traction but not just large business and enterprise but also small and medium where you announced this cloud product.

how important is small and medium business up tick of cloud going to be in reaching that goal? >> i always believe that small and medium business is a there's a lot of them and b, it's going to be the future of big business. it's important that we get in the door early. i feel good about it. our cloud is very competitive, the pricing is quite competitive. we are seeing tractions. i can't really give you the numbers so to speak but we feel good about where we are. >> what proportion of best 12 do you expect that cloud product targeted toward snb to be? is it going to be a quarter? a third, a fifth? >> i don't know the answer to that question. for me to reach the goal that you mentioned, the subscription based of best 12 or enterprise is important. that's going to be the calendar

2015 or fiscal year 2016. >> q and x, want to talk about that of course. that's got a lot of potential, particularly in cars. how is that shaping up? how many of the conversations you're having have to do with that? >> a lot. if you recall a few months ago, a lot of people are talking about iot. and iot starts with cars. that's are where a lot of the money is going to be in the car business but we branched out to medical. the iomt of the world. so a lot of conversation going on. in fact i'm going to see a bunch of partners about that today and tomorrow. a lot of consolation iot which is good. not going to be that much of a factor in our, you know the next 12 months business but beyond that we feel good about it. >> how are you feeling about europe? it's been a key market for blackberry in the past. it's been having some rough

climbs economically but on the upswing a lot of folks are saying things bottomed out. are you seeing that in your business? >> yes. we see a lot of investment from vodafone. that must be driven by their clients and customers. so yes, i think in that sense we feel good about the economy. in fact this is kind of our strong hold. one of our strong holds and this is -- europe is important to us. >> last question security software seen as a big potential positive but different enterprise players had mixed results as far as how they reported software. do you feel like you're get a strong uptick in that? and is samsung more important than ios given the partnership there? >> samsung is a huge player in android as was google. i forgot to mention this

morning, we signed a good agreement with google on android for work. best 12 supporting android for work and just last week i believe. so that was a good announcement so the system are more embracing of partners today than i could see. so it's definitely a good business area for us. >> well blackberry ceo john chen very much in the fight. >> it's not just about the mobile world congress in barcelona today because european auto makers are rolling out their latest models at the motor show with car connectivity stealing the show so far. nancy is live with all the latest. over to you. >> thank you. that's right. con conductivity is sure. they're rolling out a gadget

safety element that all goes back to technology. we're seeing partnerships now as well with tech companies and the automakers as well. we caught up with the infinity president. and we asked him not just about connectivity but we asked him he's brand new on the job. he's the fourth president to take over in under a year and we asked him what he needs to do to convince the dealers and customers that they're committed to growth going forward. >> success of a brand in this case is hinged on a very strong partnership between the dealers and the company and i reached out to the dealers. and we already have meetings in the u.s. i'm looking forward to close

cooperation. this is part of the success of infinity and this is part of the heritage of where infinity started out in the u.s. >> okay and you come into this job with very substantial goals set by your parent company nissan. 500,000 vehicles is your sales target. when do you think you can achieve that? >> i've been asked this question many times before and my answer is the same. we will not go into the forecast but we will make sure that these cars are launched successfully and that we bring business success to infinity and our business partners and dealerships in the market. >> that was the president of infinity there talking about how they plan to really take a larger chunk of the luxury piece of the pie from audi bmi, mercedes. and we'll be speaking to the ceo coming up very shortly. they retained their position in the china at the moment and really trying to take on their other rivals in the u.s. we'll ask them about the

strategy in the u.s. market coming up. >> before you go. before we let you go what's important for you in a car? >> it's funny, this huge push for technology and rolls royce came out with this car they call serenity and it had special silk features inside. that's the car for me but you would need a chauffer for that. do you have your eyes on vehicles here? >> for me important thing is size and i saw the rangerover sport yesterday. >> the range rover sport, you don't want the big original range rover. >> it's a middle ground for living in london. >> i'll see what i can do. >> thank you for bringing that. >> okay. >> those people have been writing in already. >> absolutely. >> yeah we have been asking what's important for you to have in your car or your truck out there. he writes in and he says my new

truck has internet and it's fully loaded with everything and he then goes on and says he's in alaska, i think. so it's important for him to have all the conveniences and to watch out for the moose as well. we won't to know what kind of tech items you'd like to see in a car moving forward. e-mail us worldwide at cnbc.com. we'll get in touch. @wilfred frost. they're there for you. >> i like the surround sound in the car. >> that's not new tech. >> but really good huh? >> surround sound, if you're listening, get it in. >> a little early morning show. >> more on this discussion and much else coming up in a couple of minutes.

welcome back. we're awaiting some pmi data out of the u.k. it has come in and surged in february unexpectedly. the february data is 60.1 coming in against january's reading of 59.1. and that follows a strong move yesterday of manufacturing pmi that was at a strong high. both of those datas pretty strong. we look at things sterling at 1536. it's flat on the day. >> growth in construction

accounting for just over 6% of the economy. it's slightly recovering at the moment. it will be interesting to see how they go back on the data in may. >> i'm sure it will be a free for all on that topic. >> definitely. let's get back to the headlines today. european stocks hold a multiyear high after a run of positive data including a sharp fall in spanish jobless claims. sentiment also lifted by the nasdaq closing above the 5,000 mark for only the third time ever. barclay's shares slumping after the british lender sets aside more money for potential litigation costs and glencore in the red after they take a $1 billion charge as the global comod ti route bites and blackberry announces a new midrange phone as it tries to woo young professional. the ceo said the firm is still

very much focused on the software business. that's going to be the mainstream for the calendar 2015 or fiscal year 2016. >> let's have a look at european markets. strong february. stoxx 600 up 20% and now we're on the upward trend again but nothing too meaningful as you look across we're up around .3% with italy up only just a little bit more. >> just looking at the exetra dax, would you rather buy that having gone through 11,000 or nasdaq at 5,000? where's the most opportunity? >> what would you buy? >> i would be long the dax but

short the euro. >> long dax but short the euro. >> you have to factor in the currency as well. >> what about a market that's not so slightly overbought but would you rather go for betting on technology and nasdaq in what's seen as a safer market? >> there's a lot of factors to discuss on that. tweet us or e-mail us on your views on that. >> what's yours? >> @wilfred frost. let's have a quick look at the individual stocks on the move today in europe. adjusted profits did come in slightly ahead of expectations. expectations for 5.3 billion but they have to set aside 750 million pounds for finds

relating to allegations of market manipulation. it's taken charge of $1.1 billion on lower commodity prices and it's posted 2% fall to $12.8 billion. that's broadly in line with expectations but shares down 1.7%. travis perkins has reported an 8.4% rise but it was confident it would continue to outperform over the coming year. it was down 3% today. the u.k. home builder announced a 53% rise and says it's well positioned for 2015. the group declared a final dividend of 1.32 per share and the company ceo told us fears are overblown. >> i don't think we should be too concerned. people tend to see things in the short-term. if you look over the last two or

three years, to be fair the governments actions around house building and the housing industry have been positive. >> barclay's down 2.8% and the core pretax earnings number was ahead of expectations. but surprise 750 million provision. how much longer do these have to go on and actually the core retail earnings were disappointing as well. >> that's the bit they tried to beef up. they got a new boss in. the head of barclays receiving a bonus pay out which brings his package to 5.5 million. at the same time they reduced the general pool of bonuses by 22% to 1.86 billion.

>> which is a big drive. you say he's been pushing that very hard. >> but i think that we -- we talk about barclays with the provisions that are set aside but other banks have to go through the same thing. the allegations and the alleged riggings as well taking place in other banks too. you could also argue the way business was done at one point or trading was done at one point which we no longer see as being correct. not that it ever was correct but it was accepted. >> the things with barclay's share price today is we know investment banking is under pressure and if you do want a core u.k. focused retail lender why wouldn't you be going to rbi that reported reasonable results last week and are cheaper in terms of valuations. because that core part of the business came in soft that's why the share prices is down even though overall earnings were better.

>> people are speculating as well that there could be more looking under the covers at lloyds for example or the other u.k. banks. >> exactly and increasing the provision for potential charges but it highlights so much regulatory pressure. >> sticking with the banks let's talk about portugal because shares in the portuguese lenders bpi are trading higher today. they're not worth all that much per share either but this happening amid a report that the second largest shareholder is to propose that the two banks merge. so some of the merger speculation continuing in today's trade. this is a below penny stock. but that's what we're seeing with regards to what's taking place with the portuguese banks. more news? >> indeed. breaking news on north carolina. we have got some headlines saying that joint military exercises are being staged by south korea in the u.s. and they

are provocative is what the use is coming out of north korea. they're saying they will not spare efforts to bring about great change in relations this year and saying that they cannot bolster their nuclear deturnt capabilities. so these statements coming out of north korea in response to what they're saying is provocative actions staged. it's rhetoric but not positive rhetoric. >> htc has launched it's flag ship 1-m-9 at the mobile world congress in barcelona. it's competing against the iphone and samsung's galaxy s6 also announced this week. i was looking online this morning. a lot of speculation about why it's called one.

>> three years ago it would have been easy to say there's three players. there's many from the emerging markets that are all trying to steal market share in a fiercely competitive market and 2 billion people in the world own a smartphone. that's expected to reach 4 billion by the end of the decade. many different companies unveiling new products to stay competitive in this market. they were now joined by the chair of htc. thank you for joining us. >> thank you for having me. >> you unveiled the m-9. tell us about this phone. i believe there's a 20 megamixel rear camera and strong battery life. >> this is the most beautiful phone. if you see this you anemic body design it's like jewelry. it's a dual speaker that the speaker has to face you.

when you watch a video you -- it's fantastic and we actually incorporate surround sound and give you different music. >> and your industrial design team said you want this line-up to be the most luxury in the world. is that the market you're going after? the consumer going after luxury devices? >> well i think htc phone is such a beautiful phone that it approaches the top tier of the market and it incorporates into it. people are just going to love it. >> it was interesting to see how the m-9 looks even though it's completely updated in terms of features when in comparison to the m-8 but many say they brand the brand strategy some what similar to the auto players out

there that produce cars that are recognizable and easy to associate with their brands. is that also part of your brand strategy? creating these phones iconic and easy to recognize as an htc phone? >> yes. i think htc is the first company that start smartphone in the whole world. we are leading innovator. the first 3-g phone and the first 4-g phone and how we tell our story that we are innovator. we still produce the best phone to make the best phone and virtual reality. it's something that htc is leading. >> so tell us about that. you unveiled it here at mobile world congress. it's a virtual reality head set. when i pass your booth it looks like aliens wearing the head sets but clearly it's what

consumers are interested in having a more enhanced user experience when consuming data as well as entertainment. >> yes, i think it's different. i want to break the walls between people. a lot of people are underprivileged. they cannot travel to all over the place. different culture. they want to experience a different culture and if you are in this virtual reality world, you can actually experience what people cannot experience and for example you go to china and you go to the museums and you can actual actually have all of those artifacts. >> and the experience. >> and the culture. it's fantastic. >> some analysts are saying this will allow htc to enter the gaming market with this virtual reality head set. is that a part of your company strategy going forward? >> we're glad to collaborate with the best gaming company.

they have the gaming community. that's something they want to break through. for sure it's a good market. >> what would you say about the china market? we have been focussing on a slow down in the economy but clearly there's a lot of robust demand for mobile devices. >> yes yes. i think chinese market is a very important market. >> india as well. >> yes. we have been growing a lot with 11% of the market. that's something exciting. >> it will be interesting to watch especially as we see a new entrance in this market. thank you for joining us here on worldwide exchange and guys it's a great debate to be had given that there used to be two players that dominated the space. now you have lower priced entrants. we'll be speaking to micromax later today and the question is can these companies maintain

market share and grow market share when you have the likes of apple and system sung that encapsulated the smartphone market. many companies are unveiling these new devices. >> thank you very much for that seema. we have got lots more to come live from seema on the ground but we've also got lots more on cnbc.com. our tech transformer special at the mobile world congress. lots of information including aishaa look at the sony tablet. well worth a look. >> people still writing in and telling us what type of technology they would like in their cars. you can also find us on e-mail if you're not on twitter. the e-mail is worldwide@cnbc.com. you're @wilfred frost. john writes in and says i want my next car to have an in dash expresso machine.

>> that's asking for trouble. >> we need much more innovative things. we don't want to bolt something on from the kitchen. >> but often times it's the basic stuff we want. you want the charger. you want the drink. we've got to go. >> we've got to go but we'll continue this debate. we're both at the auto show and mobile congress. >> still to come on the program, have investors adjusted to a world of low returns. this might just be the case. we have more details in a moment. heroes charge! ♪ (explosion) ♪ (explosion) ♪ (explosion) ♪

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>> they have cleared the provision of aid and funding support until 2020 to greece. the main headline is no upper limit on greek lending from the ebrd at all. it depends on the specific projects. this is a positive development for greece. we were awaiting this decision. of course it's not make or break in terms of the overall lending but it is a positive development. you can see the greek ten year yield 9.7%. just below the 10% mark so

continues to be at elevated levels of course but slightly better before the four month extension about ten days ago. >> yeah. now moving into the fx markets from that, the australian dollar jumped against the u.s. dollar after the reserve bank of australia took some by surprise by announcing it would leave rates on hold. the central bank said there might be room for further easing in the coming period. good morning. what do we make of the aussies? we thought they would make a move and they didn't. >> there was some chance they would hike rates and forecasts were for a rate cut although there were risks around the particular view that kept rates on hold. that doesn't mean this is the end of a short rba easing cycle. they'll cut rates again in may after assessing a string of data

from the labor market. so overall our views remain clear. we're still bearish. >> how much of a move is there to the down side? should we continue to sell the aussie? >> our year end forecast are at 473. we made recent revisions to our 2016 forecast to 268. we're seeing a continued decline in the australian dollar based on the gross national income recession that we're seeing. trade impact and rate differentials. >> it's moved a long way since 2013 already. >> it has. but if you look at traditional valuation measures it was seen as an overvalued currency and you had a significant structural shift highlighted in the terms of trade position and while we have seen a big move in the aussie dollar they're concerned about the broader move.

>> let's move on and talk about the euro. i'm interested in your notes that you say this meeting is a nonevent. aren't there still a lot of details on what's going to take place that could move the euro? >> i think it's enough to believe it's a medium term seller. we think 110 by the end of the year but the impact has bought the currency a little bit of time. we've seen the traditional post quantitative easing announcement effect where we have seen foreign investment interest to buy european equities and surprise on the upside as well and the market has been very short euro. we don't think the mechanics will alter the markets on the euro. obviously policy between the fed and ecb means lower euro. >> i read into the last move as

being they were back to looking at a dollar story now and especially as we have the feds meeting on the 18th of this month. does that mean we anticipate a rate hike is around the corner and we should be long dollar? >> we expect the fed to move in september. the current rhetoric coming out is one of data depen den sense. we see a slight shift now. the u.s. economy is a strong economy. that will be highlighted in another strong job's report but the key is the extent of inflation expectations in particular and actual inflation numbers continue at a relatively robust level. we saw core inflation numbers lead to the dollar to rally. >> you're bearish on the u.k. why is that? >> we think having general election the uncertainty is never good for a currency.

we think the pound will come under pressure in line with our forecast. we think it will end up at 149. we think that volatility will start to rise further into the elections. >> thank you for joining us. much appreciated. g-10 strategist at bank of america meryl lynch. now expectations of 10% returns from hedge funds are a thing of the past. that's according to a survey carried out. it also found that asset growth continues to be concentrated in larger funds and it's more difficult to select outperforming managers. they spoke to investors representing assets. we're joined by the european head of prime finance. thank you for joining us. >> good morning to you. >> allocation to hedge funds you found have risen among many

investors recently. particularly the all important pension fund sector. >> if you look at them as a whole they make up 2-thirds of a $3 trillion industry this year and we saw the flows coming in last year. that's a record net in flow since the time of the crisis. so they're an important investor group and 90% of investors said they were looking to maintain or grow the hedge fund allocation in 2015. that's really important. >> how much of the strategy is more about the increase in volatility. >> that's a good question. that's exactly what institutional investors are focussing on. that's not a surprise to hedge fund managers. they have understood that for awhile now. they are looking for them to produce returns. they can get them elsewhere at a much cheaper price. we have seen it go for 4% allocation to around 7% now as well. so increasing the amount they're giving to these guys.

>> you said the price there of a hedge fund but point to the fact that only 7% of hedge funds outperformed last year. can they justify their fee still? >> there's a few things that go into outperformance. one is what the is the target set for hedge funds last year and the targets they chose at the end of 2013 we hoped 2014 would be easier than it turned out to be. part of the misalignment was more about where expectations were. but 60% of pension funds said their targets were met and that's about what they're looking for is uncorrelated returns and consistent returns over a long period. >> the current number of hedge funds is close to all time highs. does that mean we'll anticipate a lot of the ones with not heavyweight managers to go under in the near term future? >> we estimated that the top 200 are running 2-thirds of the

assets. so $2 trillion out of the $3 trillion. they're the winners in terms of assets since the crisis. they have gone up like 140% for the funds over $5 billion. it's less about the funds that aren't realizing assets at the moment. it's more that the focus is about building partnership and alignment interest. we've seen an increase in the nontraditional products. >> thank you for joining us. much appreciated. european head of prime finance. >> coming up we continue to bring you coverage from the geneva motor show. we have a first on interview with the ceo of audi coming up after the break. we'll see you then.

>> welcome to the second hour of worldwide exchange. lye from london and the mobile congress here. >> i'm wilfred frost here in london. here's your headlines from around the world. >> the nasdaq closes above 5,000. the tech heavy intex just 1% away from an all time record but today futures indicating a lower open. blackberry in focus announcing a new mid range phone as it tries to woo young professionals. the firm software business is

still key. >> subscription based of our best 12 for enterprise is important. that's going to be the mainstream for the calendar 2015. >> barclay shares slump after they set aside more money to cover potential litigation costs. the ceo says it could reach a deal this year with new york relationship gators regulators over rigging. >> they clash over nuclear ambitions ahead of netanyahu's criticized speech today to congress. >> you're watching worldwide exchange. bringing you business news from around the globe. >> and welcome everyone to the show. we are here at mobile world congress. speaking to different leaders about the roll out and launches of different smartphone devices

we're looking at the tech heavy index. closing for the first time in 15 years. pleasure to have you on our show today. let's talk about what nasdaq 5,000 means. some people say when you look at a stock like apple it's up 20% this year. amazon up over 24%. does that tell us -- we're starting to see valuations a little overstretched but you look at price to earnings ratio and that's telling us a different story. >> overstretched compared to what? . this is an entirely different nasdaq than 15 years ago. it's not anchored in the promise of the internet. it's anchored in the reality and mobile and cloud expansion. so i think could you make the argument that we're due for some sort of a correction in tech? certainly in mybio tech? of course you could. >> especially when you have a company like apple reporting

record profits. facebook makes 2-thirds of their advertising revenue. success stories also boosting sentiment when looking at tech and earnings as well. >> absolutely. mobile is all the range here and look back 15 years. europe owned mobile. they were really the names to beat. people had huge doubts that the u.s. or certainly silicon valley would make a dent in mobile. maybe they were just the rulers and that the spoils of mobile would go elsewhere. now you have a situation where these names at the top of the nasdaq are trying to expand even further into the globe and bring the internet to areas that haven't had anything before. not only haven't they had pc based internet but even voice service. the potential is enormous. >> it's a competitive landscape. they're trying to maintain or gain market share in the smartphone space. a couple of years ago used to be

blackberry but then came the iphone. that changed the dynamic when looking at the smartphone space: they have been trying to turn around the company. you got to see it. was it a game changer? >> no. i don't think it's supposed to be a game changer for them. the hardware, the phones are a side dish. >> then why even focus on it? why not devote themselves to software? >> they need the phone. not only for revenue because that is their revenue base they still have services based revenue that flows in from the phone. while they try to build up their software business they still need that. i should mention business in europe in particular seems to be -- >> i found that interesting. he said it was good. >> he did. take a listen. >> subscription base of our best 12 for enterprise will be important. >> q and x, want to talk about

that of course. that's got a lot of potential, particularly in cars. how is that business shaping up? how many of those have to do with that business? >> a lot. a lot of people are talking about iot. it's where a lot of the money is going to be in the car business but we have branched out to medical, the iomt of the world. so a lot of conversation going on. in fact i'm going to see a bunch of partners about that today and tomorrow. a lot of conversation which is good. not going to be that much of a factor in our -- you know the next 12 months but beyond that. >> how are you feeling about europe? it's been a key market for blackberry in the past. it's been having some rough times economically but on the upswing, a lot of folks are

saying things have bottomed out. are you seeing that in your business? >> yes we he see that in our business. we see a lot of investment from vodafone driven by their clients and customers. telefonica building more and more infrastructure and spending money. in that sense we feel good about the economy. this is kind of our strong hold. one of our strong holds and europe is important to us. >> he also announced the cloud. this is a web based interface you can use to get into the server. good for small and medium business. that will be key to getting the goal of half a billion dollars in software sales this year. so when you consider that and you consider the fact that this phone is $275 a mid range phone when you have apple and samsung at the high end. micromax and others at the low end. there's risk here but blackberry is able to mitigate it.

>> still have some of the enterprise market as well. >> they do but they need to steal about 7.5 million mobile device management customers. that's a tough road. >> i feel like even in indonesia they still play a dominant role in some of the secondary emerging markets. >> they do. that's an important position for them. that's where the low end gets challenging because you have this coming in. are they going to keep their blackberries? will they be able to make the premium market there? you're hoping so. >> back over to you. >> thank you very much seema. it's amazing how big this show has grown over the course of the last couple of years. just looking at what u.s. markets are imlying later on. implied open of a couple of points lower after the nasdaq broke the 5,000 level in

yesterday's trade but you know what some might say today? they might say forget nasdaq going through 5,000 for the third time. how about india's index going through 9,000 for the first time ever. in fact the indian index is up 45% over the last 12 months. the strongest performing market. >> exactly. a good boost over the weekend. >> exactly. >> back to the european markets for the time being. you're behind us on this lovely wall. slightly mixed right now. more green than red out there. a few more cucumbers than tomatoes. up a bit. the cac 40 higher around a quarter of a persen tajh point. so light buying taking place in this morning's trade. >> it's a strong february and we're edging up again since the start of the month. yesterday is a weekday and we're offsetting that today. let's look at bond markets as well because the big mover yesterday was the european periphery when the bond buying program will finally start.

we're look agent the moment as you can see greece at 9.6. that didn't move too much yesterday. but it was the likes of spain, portugal and italy yesterday. germany at .35 and the u.s. pushing up toward 2.1%. of course ten days ago that's where it was. janet yellen's comments interpreted as dovish but then some wage growth. yesterday it was positive and that's taking us back to 2.1%. let's look also at rates because the u.s. dollar had a strong date yesterday. it got up close to an 11 year high. particularly since last thursday. it's moved strongly against the euro. but today's trade in asia in particular we saw a little bit of u.s. dollar weakness. we had comments from an economic

advisor saying that the currency was probably too weak and that saw the yen rally a little bit and the aussie dollar. it's now up half a percent after they failed to cut rates for the second month running which many forecasters had expected. quick look at commodities as well. the oil price was weak yesterday. now bouncing back today. of course continuing to find it very hard to find a meaningful bottom but above 50 today. brent 60 plt 8. they're both rallying quite significantly after a sell off yesterday. back to you. >> thank you, wilfred. jim russell is the portfolio manager and joins us to talk more about positioning in our portfolios. first of all we have been talking about the nasdaq going through 5,000. how big a deal is that for you? do you look at tech stocks differently in the light of this happening? >> that's a good question. we think it's a pretty exciting

development and we're glad to see nasdaq and many of the stocks that compose nasdaq be part of the rally. we i thits extremely constructive. of course it's been a 15 year type of base that's been formed and we do feel like today's nasdaq is much different than it was 15 years ago. the valuations make sense. the balance sheets make sense. the dividend profiles of these companies make sense and of course the car and internet are exciting developments for the companies. >> how much do you worry about the business cycle? now more than 67 months old? do you think that it's time for the business cycle to kind of expire? and we could be looking at a correction? >> it's a great question as well. the business cycle we think we'll maybe take a little bit different shape because of the financial crisis which was a

global development. we think we're probably in the 7th or 8th inning of a meaningful business cycle here in the united states but we do think that we're just getting going perhaps in europe. china is slowing. japan is showing signs of life. this is some global legs to the business cycle and nasdaq and the tech stocks are tied to the business cycle as well. so we think the global scene is actually fairly stable and is as constructive as we have seen for the last six or seven years so we think that things move ahead. >> should that mean you're shift yourg allocation away from the u.s. into other areas. europe is just getting going. if that is the case would you not put money into european equities over u.s. equities? >> we think there's a very constructive case for many of the developed market economies

outside of the united states perhaps outperforming the united states this year. certainly policy is front and center both in japan and soon to be in europe as well. the fed is likely to tighten rates either in june or september here in the united states. so there are many tail winds to the other countries outside of the united states. valuations are also a bit cheaper in japan and europe and the earnings eckxpectations are higher as well. there's several things that are probably constructive developments that would argue for selected developed international markets doing much better in the united states this year. earnings growth valuation and policy being front and center. >> thank you for joining us. much appreciated. jim russell. now coming up here on worldwide exchange, u.s. auto sales expected to show another strong month of gains. after the break we'll be asking the ceo of audi about the car

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welcome back. president obama is criticizing china's plan for new rules on u.s. tech companies. the president is concerned about the proposal for a counter terrorism law that would require

tech firms to hand over data that would give authorities access to their systems. in an interview president obama urges china to change it's policy if it wants to do business with the u.s. >> those kinds of restruck tifictive strategies would hurt the chinese economy over the long-term because i don't think there's any u.s. or european firm or any international firm that can credibly get away with that wholesale turning over of data personal data over to a government. >> president obama says he has raised the issue directly with the chinese leader. beijing sees the rules as crucial to protecting state and business secrets. >> got a bit ahead of ourselves there. but moving on to another big story a lot of people looking at this one. the israeli prime minister benjamin netanyahu will address

congress today. he plans to use the speech to criticize international nuclear talks with iran saying he has a moral obligation to speak up about the dangers of the program while there's still time. he was invited to speak by the house speaker john boehner. a move sharply criticized by democrats in the white house as it comes two weeks before israeli he elections. >> before we go let's remind you of the headlines. the nasdaq closes above 5,000 for the third time ever. futures indicating a slightly lower open. barclay's setting lower as they set aside more money for potential litigation costs. benjamin netanyahu prepares to address congress in a highly criticized speech. we'll be back in a couple of minutes. ♪ building aircraft,

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hi everybody. welcome back to worldwide exchange. just a quick look at the u.s. markets. they're slightly lower in today's market open after the nasdaq went through 5,000 for the third time. but the first time in a very long time basically. first time in 15 years. european markets this morning have been slightly mixed, a little bit higher at the moment. just a couple of points higher so we're looking at a little

green on our screens. when it comes to auto sales, auto makers reporting february u.s. sales today. they're expected to maintain the strong pace despite the snow and cold weather in much of the u.s. they anticipate a sales rate of 16.7 million vehicles matching january. >> yeah, that would mark the 12th straight month of sales rate above 18 million. a very interesting topic. let's get out to nancy that is live. over to you. >> thank you. as you said that u.s. growth story is crucial for these european auto makers here at the motors show. we have seen a bit more optimism around the european recovery. about 17 straight months of gains however volumes in europe are still about 20% below precrisis level. so a lot of room to improve here in europe but the story goes a lot of manufacturer versus been able to offset a more sluggish recovery with gains in the u.s. and china.

i'm joined by the ceo that's really seen a success story in the u.s. he joins us now. thank you for being here. >> hi. >> i want to start off talking about the u.s. market. you continue to see record sales last year. a strong market for you obviously however you're still trailing your european rivals bmi and mercedes. what's the strategy to play catch up there? >> it's very clear. we're very strong in china and very strong in europe and there's a big potential for aweudi in the u.s. markets. we are investing into the u.s. market. we invested also in capacities in mexico to serve the north american market as a whole. >> but there is concerns about margin pressures and price competition. how is that effecting your business? >> i would say it's still a good

one and we don't want to buy market share so we're trying to control the incentives so this is important. the better it is to sell one car less and then you are good in the market. >> understood. in china you have been successful in maintaining your number one position among the european demands there. do you expect to defend that position going forward? >> we are sure it was a record year. we are seeing continuous growth in the chinese market. whatever is decided in the politics in china, we see a growing market on the long run in china and audi is aiming for staying premium brand number one in this market. >> you mention the politics in china. one issue is the anticorruption probe. has audi be impacted by that probe? >> no there was only a small impact from some dealers but we see that the ecological discussions in this country is

much stronger than ever and whenever you are coming with new technologies, in this country i think you will make your share. >> okay and political factors also having a big influence in russia of course and uncertainty there weighing on demand for calls as the rouble falls. how is audi in the russian market? >> the whole industry was heavily effected in the coming months so the biggest impact is probably the currency and deval you wags of the rouble and we're maintaining business on a stable and low level to keep dealerships alive and running and we see the russian market as a strategic market but at least in the next two or three years we will see only very small growth. >> will that weigh on your overall european performance this year? >> this year performance as a whole you mentioned? audi is always trying to grow

further. we want to sell more than 2 million cars. we sell $30 billion in product and new capacities. we keep running for further growth. >> one last question the ceo of your parent company asked you to step down next year. there's some speculation you could be one of the top successors. is that a promotion you would welcome. >> this was a nice try. i'm at home at audi and we have to let's say fight strong. very strong competition. this is my job and i'm really happy. >> a quick one on the products here. you just introduced the r-8 behind us. it could be the biggest push yet into electric technology. is this the sign despite the resent drop in gas prices? >> we should not be sure about the actual gas price. it won't stay where it is. all the investments we're going

to do. >> is demand for a price woefrlell over 100,000 euros. >> it will be. >> thank you so much. that's the ceo of audi and lots of excitement here. it's one of the big auto makers unveiling the most models yet. everything from high end super cars to other cross overs. but back to you. that's it for now. >> thank you very much for that. >> sorry. just a couple of flashes coming out of iran. the foreign minister says iran will not accept the quote ex excessive and illogical demands but will continue nuclear talks. they're being critical of what they say were unacceptable remarks by president obama regarding the suspension of teheran's nuclear policy. >> coming up where will the next google or facebook come from? could it be here in europe? we'll discuss with a partner at

the venture capital firm excel. that's after the break. see you in a section.

welcome we're live from london and barcelona.

i'm wilfred frost. >> i'm seema mody live here in barcelona from the mobile world congress and the debate is who is in the battle for the fittest? we have the nasdaq breaking 5,000 for the first time in 15 years. the tech heavy index just 1% away from breaking it's all time record. the focus also on blackberry announcing a new mid range phone as it tries to woo young professionals. the ceo of blackberry said the firm software business is still key. >> the subscription base of our best 12 for enterprise is important. i think that's going to be the mainstream for the calendar 2015 or physical year 2016. >> barclays shares set aside more money to cover potential litigation costs. it could reach a deal this year with the new york regulator over allegations of market rigging. president obama and israeli

prime minister netanyahu clash over iran's nuclear ambitions ahead of his highly criticized speech today in congress and iran fights back labeling president ball balm's remarks unacceptable. >> you're watching worldwide exchange. bringing you business news from around the globe. >> welcome to the show. let's have a quick look at u.s. futures. what are we expecting the day after the nasdaq hit 5,000? we're expecting a slightly negative open but of course it has been a strong couple of months for markets in general and those declines those implied opens nothing too significant. the s&p down 3 points and dow jones down 30 points and nasdaq down 6 points. let's look at the chart. a nice strong move yesterday. the best part of 1% taking it just above that 5,000 mark.

the question is now will it push on regardless of those levels and continue it's rise. it's only about the third close above 5-k for the tech heavy comp sit. the other two were before the bubble burst. he doesn't think stocks are overvalued. >> they're high by historical measures. we have the most aggressive monetary policy since the founding of the federal reserve in 1913 so stock prices should be high. if you look at them relative to rates they're probably exactly where they should be. >> so lots and lots of focus on the nasdaq and it's tech components and seema is at the world congress in barcelona. over to you. >> well nasdaq 5,000 reignited this debate over whether we are in a tech bubble but factors to

consider, first one being valuation. back in the early 2 thousands they were trading at 1,000 times earnings. fast forward and we're looking at it 7 to 8 times earnings. telling us a different story as to whether we're in a tech bubble. the private market a different story when you look at uber at 40 billion. snapchat at 19 billion. valuations in europe and the private market are also moving higher. we'll continue to keep an eye out on the private market but given the out performance in the technology space, that's attracting a lot of attention from the auto sector. that's one of the biggest themes. yesterday they were telling me we could see an autonomous car by the end of this decade from his company. >> i don't think this is going to happen on the short-term. this is much more a perspective in the mid to the long-term. but i don't think that will

enter the current industry as much. more technology evolution into the current industry. >> you're starting to see it on the show floor today. we started with model cars just coming on the lot. today overwhelmingly large amounts are going into the market today and you're seeing the reality. >> we can enhance their experience in the vehicle by using sensors and technology in your vehicles. for example, to measure friction and we can guide the user and the driver with information about slippery roads but the good potential is also that now we can communicate and share this data without other volvos and road authorities. >> the big question is how big of an opportunity is connected cars. consider this the auto industry will earn $152 billion in global revenue from connected car products and services by 2020.

it could be a big opportunity. we'll discuss that more with accel partners. what does it mean for valuations? are we in a tech bubble? that's an exclusive coming up with. now for, back to you. >> thank you very much. >> meanwhile in switzerland the motor show is well underway. auto makers have been looking to the future of connected cars. the impact of the crisis is being felt as well in the sector. take a look at what ceos are telling us about that. >> >> it's a short-term element. i'm sure we'll see a recovery in russia coming. >> we see the head winds as the new news for our guidance: last year we lost $1.1 million. that was better than the previous year. we're committed to improving

that despite the head winds. >> we expect decline in russia in 2015. our forecast for total demand down from around 2.3 million. so we are seeing a contraction in the marketplace. everybody is impacted by the volatility and exchange rate. we put a big investment in st. petersburg. we have a production plant that can produce 100,000 vehicles. we also have a strong investment in the domestic brand in russia and we have capacity opportunity there. we are playing a long game in russia. >> in separate news earnings are hit by an increase in legal costs. they set aside 250 million pounds for potential fines relating to allegations of foreign exchange market manipulation. shares trading off 2.5% on the news this morning. our u.s. business editor is joining us with more.

we were talking about this earlier about how big a deal it is and what it means. >> they added 750 million pounds in the fourth quarter. if you put ppi on top of that and take the whole annualized provisions talking about 2.3 billion pounds so this morning the chief executive may be going on the airways talking about how the bank turned the corner but i think you'll see investors would beg to differ. why is that? barclay's is a bank that used to see half of its profits from the investment bank. now that's not sustainable in an environment where regulators and politicians neither want to pay the type of bonuses that banks used to pay nor want to accept the behavior we've seen barclay's do. it hasn't signed a deal with u.s. regulators. there's been stumbling blocks there. but the issue is can it shrink

it's investment bank down in time. when you speak to analysts what are the concerns today? because it beat on pretax profits coming in at 5.5 billion pounds. fourth quarter wasn't so great for core businesses. >> and particularly if you want exposure to the core u.k. areas there's options that reported resources at much better valuations. >> that begs to differ. it's the market leader in the credit cards. it's been a major driving force within barclay's group over the last six years but there's so much attention on it that analysts really are expecting it to grow. core business grew 29% but it just missed on those earnings. the question is can you shrink the investment down fast enough to make the u.s. earnings which are all about the consumer and recovery in the u.s.

palatable. this is is a time when barclay's is still paying bonuses in the investment bank alone of 1 billion pounds and today watershed moment because the chief executive said he was worth it. 1.1 million pounds and a pay package that's worth over 5.5 million pounds. >> it's relative -- not that high percentage terms but anyway. >> i think some investors would say you have to prove you have done the job and if earnings at the investment bank are still falling by 32% you probably still have a way to go. >> we'll leave it there. thank you very much as ever. >> coming up president obama and benjamin netanyahu are at odds over how to deal with iran's nuclear program. the white house weighs in as the leader gets set to join the joint meeting of congress later on today.

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netanyahu's visit to washington this week could put their country's relationship to one of its most difficult tests. landon has all the details. >> good morning to you. netanyahu will step up his campaign against president

obama's iran diplomacy in a speech to congress today at 11:00 a.m. eastern time. he was invited by house speaker john boehner and the obama administration is weary of netanyahu using the forum to layout details from closed doors talks. they closed two weeks before israel's elections. and several democrats plan to sit out the speech. they offered an olive branch by saying he meant no disrespect to president obama. >> last thing i want is for israel to become a partisan issue and i regret that some people have misperceived my visit this week as doing that israel has always been a bipartisan issue and should remain a bipartisan issue.

>> they agreed to let iran keep enrichment technology. they want iran stripped of projects that could be used to get a boom. >> president obama strongly criticized netanyahu's stance saying they have a substantial disagreement over how to reach their shared goal. >> as a matter of policy we think it's a mistake for the prime minister of any country to come to speak before congress a few weeks before they're about to have an election. it makes it look like we are taking sides. i don't think it's permanantly destructive. i think that it is a distraction from what should be our focus and our focus should be how do we stop iran from getting a nuclear weapon. >> the president says iran must commit to a freeze of at least ten years on sensitive nuclear activity for a landmark deal to

be reached but the odds are still against ceiling a final agreement. back to you. >> landon thank you very much. >> looking at some of the other top stories making the rounds today, the sub prime lender springleaf holdings is close to a deal. the sale could be announced today. they make sub prime loans to u.s. customers. citi a little higher in german listing today. >> now target is holding it's annual investor day this afternoon in new york. the ceo and other top executives are expected to speak. they'll outline new goals and investments. target shares are are up 2% this year and more than 24% over the last 12 months. >> now before we go to break. let's leave you with a look at our headlines. if you're just joining us the

nasdaq closing above 5,000 for the third time ever. futures today indicating a slightly lower open state side. barclay's trading lower as they set aside more money to settle potential litigation costs around blackberry unveils a mid range smartphone but the ceo tells cnbc that the software business is still key. over the next 40 years the united states population is going to grow by over 90 million people and almost all the growth is going to be in cities. what's the healthiest and best way for them to grow so that they really become cauldrons of prosperity and cities of opportunity? what we have found is that if that family is moved info safe clean, affordable housing, places that have access to great school systems access to jobs and multiple transportation modes then neighborhood begins to thrive and really really take off. the oxygen of community redevelopment is financing and all this rebuilding that happened could not have happened without organizations like citi. citi has formed a partnership with

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>> thanks for joining us on word wide exchange. the main markets here on screen for you now. a little higher. ftse 100, 11,000 5,000 on the nasdaq. >> for the xetra it hasn't meant

much at all. now of course yesterday the nasdaq crossed 5,000 for the third time ever. the first time in 15 years and we're expecting a negative open for u.s. futures. the nasdaq was up shy of a percent yesterday. the dow down by 33 points and the s&p down by about 3 points itself. let's give you a look at what's on today's agenda in the u.s. there's no economic data but janet yellen speaking about bank regulations this evening. look for results before the opening bell. after the close we hear from smith and wesson and tivo. >> we will be keeping our eye on the nasdaq. the 5,000 level went through that for the third time ever. much of that has to do with apple and google. where could the next big tech

issue or tech theme come from tech giant even? seema is at the world congress in barcelona and she has been asking around. >> thank you. before we get to that we're now joined by accel partners which has $9 billion in assets under management. we're joined by the partner. thank you for joining us. to pick up on what my coanchor just said nasdaq at 5,000. there's fears we are in a tech bubble and you lived through the early 2 thousands. you saw the crash. does it feel like we're going to have the same thing happen this time around? >> things are very different. today we're in a different situation. if i look at the software

service sector which is one area we focused on the revenue multiple of the companies 5 x. it doesn't feel like a multiple to me at this point. >> but is the earnings growth that we're seeing from the likes of facebook and even you know twitter, apple, is that sustainable? can that growth continue? >> well you know i think right now we're seeing very long lasting secular trends and for this trend i'm referring to social network, to mobile and security and all of these trends are exhilarating. if we move to the private side we're seeing companies create value in a short period of time. let me give you the example.

this is quite unique. so we're in a unique environment where exceptional company deserve exceptional valuation. >> that's astounding going from 0 to 3 billion in a short amount of time. the company was acquired in 2013. it's is paying 3 billion for a company that magnitude above this number? you answer the question. >> you also look at an example that went from $1.1 billion valuation to $45 billion. what does that tell you about this appetite to invest in tech and pay these high price tags? >> as i say, the role of tech is getting global. you know in the past it was hard to reach to consumer.

it could carry application. you have the app store on your device. so you build one up and you have access to billions of users globally. so the value you can create with that in a short period of time is much higher than what you can do in the past. we have really seen a shift and as i said they he have been able to do it for a short period of time. they're deserving evaluation. uber, spotify. >> you don't think that's overvalued at $40 billion. >> only the future will tell. what people are seeing here is

huge potential for this category. the impact of this is that now many start ups thinks that they can create that amount of value in such a short period of time and what this creates is inflation even in the early stage where there's uncertainty about the future of the company. in had respect we're seeing the inflation on the private valuation side. >> and when you look at europe which of course is dealing with sluggish growth deflation, that doesn't seem to be stopping investors from investing in the public market in europe trading at a multiyear high but the private margaret private market value. >> people are saying it's not the u.s. but with access to global channels for every company where ever it's located. you look at super sell, started

from finland and access to the world as a market. the investors are getting this and that's why you're seeing interest in europe. >> thank you for giving us your perspective on tech. that does it for us from worldwide exchange. >> seema, thank you for the coverage from barcelona. that's all from us in london as well. >> yeah, we'll see you tomorrow. good-bye. wilfred, good-bye. >> good-bye. >> see you tomorrow. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

above 5,000 for the first time in 15 years. the index roughly quadrupling in value since the 2009 market bottom. figure out what that irr is in just six years. and mark zuckerberg is in hostile territory. it's all part of his goal to reach billions of people that don't have internet access. we'll tell you what he had to say and the surprising reaction. plus hilary clinton under fire this morning. reports said she exclusively used a personal e-mail account

to conduct official business as secretary of state. possibly violating federal rules. it's tuesday march 3rd 2015 and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning, welcome to squawk box here on cnbc. i'm becky quick with joe and andrew. we're listening to santana's smooth right now. it was one of the top songs in the billboard charts in the year 2000. we follow nasdaq's run back to 5,000. benjamin netanyahu is set to talk to congress. we'll have details on who