good morning. it is 8:00 a.m. at linkedin headquarters in mountain view, california, 11:00 a.m. on wall street, "squawk alley" is live. ♪ ♪ ♪ look in my eyes what do you see ♪ joining us john stein burg ceo daily mail north america,

jon fortt, kayla is off getting married, congratulations her. great show for you. imf managing director christine lagarde will join us in a little bit. first up talked linkedin moving lower after the company said it would acquire on-line learning company linda.com for $1.5 billion. the biggest by a factor of 10 and a lot of discussion about how the era of growing only organically, jon fortt, may be coming to an entsds. >> it's been over for them for a while. they've done acquisitions, they did slide share, card and others. this is big on a different scale. linda has been around it for 20 years, lots of people have used it. my mom used it to learn photo shop and illustrators and it charges individuals 25 bucks per month to learn things. they got a track record for providing a pretty good experience for that. they only took vc cash, about three years ago, for the first time. it was bootstrapped until then. they're based outside santa

barba barbara. what this will allow them to do potentially is take advantage of their user base that's professional. it gives professionals a reason not only to engage, not necessarily looking for a new job, maybe looking to gain skills to help them with their current employer and get a better salary and mop tize that. people with your background were able to take these courses and get these kinds of better jobs. that could be enormously powerful. >> all about content. dan roth launched that linkedin influencers platform to get people to blog on the platform. i'm a content guy. linkedin needs people to come back to do something other than actually update their job or look for a new job. what's nice about this is, 35% of the costs that go into the sale right now or sales and marketing expenses thee cletsically should be able to cut that number because everybody on linkedin wants to do something professional. 250,000 individuals, 6,000 courses linda has, to engage people. >> under appreciation factor for

linkedin will that change. >> i think it will. they have to do something similar to what adobe was able to do with be enhance. a community for artists able to show off their work, learn new things and create markets for themselves. linked in has to create a marketplace of skills here, but they have -- they're in a unique position where they have all the tools and infrastructure to make that happen. jeff weier and his team have a pretty good track record of being able to execute on these things. they did it in content pretty well. they've been building that out and in marketing also. we've see how they do. >> stock is down modestly when i looked at it. i think the issue with the deal, paying ten times revenue, did $150 million, ten times revenue, whenever i say ten times revenue what the deals get, people give me a hard time about it. time and time again, ten times, the issue only 20% annual revenue growth. you want to be growing 50%, 100% to get that robust multiple on revenue without looking at ebitda. i think that's why people might

not be thrilled about it. >> i wouldn't necessarily worry about that so much. it's because linkedin based on what it has already, has the rocket fuel for this sort of thing. they're not looking at linda to create a platform and create momentum for itself. linkedin, if they play their cards right based on its professional network has the momentum built in. >> let's move on to intel. shares well off the morning lows, despite the fact that dow has come down. our own david faber reporting the company will drop its bid to acquire altera and david joins us with more. what else do we know? >> what's interesting, of course, here, karl, the move in altera's stock. one would expect after the report at 9:00 a.m. talks between the two companies ended, ended as much as a week ago after they could not agree on price. altera shares would have been down and were down in the early going but they've come back largely as you see to almost flat on the morning. perhaps something of a surprise as i reported intel after months of talks, a lot of due diligence

and negotiation, simply could not come to an agreement with altera on a price that it was willing to accept for intel to buy it. my sources close to the situation indicated a low 50s price. i've heard that price could have been as high as $54 a share in cash. that's a multiple to ebitda that gets you to the low 20s on altera seem to be in the opinion of shareholders i'll spoken to a high multiple and something the company should have thought about accepting. we'll get a better sense of its financial earnings in a couple weeks. intel said see you later and have not spoken in at least over a week. they are done at this point. altera for its part not trading off greatly, perhaps because there is a view some shareholders may pressure them to go back to the negotiating table if that is seen as possible. not clear that is. you never know. or that just given how high intel was willing to value it the stock price even at a

discount should not be discounted that much. but it would have been a very large deal for intel, at least $16 billion in cash and it does reflect according to my sources the willingness of management to consider significant large acquisitions for growth opportunities, not just for cutting cost, not a cost cutting story as much as a growth story. altera one of its largest customers with its field programmable gate rays. >> one of the things, latsist, micro semi, xilinx haven't moved that much. some of the same businesses that altera is in. also that based on what intel is, it's got this advanced manufacturing process and the kinds of programmable semiconductors that altera does, are able to take advantage of that in a ways other methods haven't been. seems like intel needs to own something like this because they can get margin on the foundry business down the line a lot

better. i wonder to they end up coming back to this, end up taking a look at any of these rivals also? >> i think you can say given their willingness to consider large acquisitions they may take a look at others. they certainly believe strategically this was the right property for them. they were willing to pay what many would argue was quite a price. i'm not certain where altera was in terms of price. was it 60, a bit below that, but whatever it was the gap was large enough that after quite a long time of trying to get something done intel said you know what, it's not going to happen. >> i guess three, four years ago altera got near 50 bucks. maybe they kind of remember being close to that before. >> that does happen a lot. companies and their management teams can be wedded to their all-time highs and want a premium above that. >> thank you. david faber. finally facebook among teens it's still king. a new survey by pew research center says facebook still the number one social network among 13 to 17. 71% use the service, instagram

52%, snapchat 41, and teenagers have a phone, 88% have access to one on a regular basis. watching the action on facebook stock, it has been above the 50 day for almost two months. not quite 86 where it was late in march, but pretty nice. >> we have to be very careful about these surveys. you know we were on air whenevers the surveys come out teens aren't using facebook because three teens told some reporter they weren't using facebook any more. a rash of those reports. now reports showing what i believe to be the truth, there is no issue there. if there was they're going to instagram by and large. teens don't tell you the truth either. that's another thing to be aware of as well. >> really? our kids are not there yet. >> not at all but a good sign for facebook. >> i remember not always telling everyone the truth when i was a teenager. >> wow. >> either. but i never really believed these survey numbers either. you see teenagers back away from facebook, use it less, maybe they're using instagram a bit more also but we just had

michele fon on that's seeing huge engagement with her videos which we know to be a hit among the teen and millennial set and she's putting more resources into facebook. >> can we put a moratorium on anyone asking facebook if they're no longer cool because their parents use it? >> yes. the number to pay attention to is the daily active over monthly active users quarter after quarter go up. at some point that has to stop and interesting to see how investors react but i think we can put a moratorium on the kind of questionable reports. >> we're going to get earnings from them and from a lot of the other big social companies in just a few weeks. going to be interesting to watch. let's check in on the markets this morning. right now dow down about 40 points. s&p is down about back to 2078. shares of costco falling after same-store sales dropped a bit more than expected. march sales down 2%. alcoa falling after revenue below estimates but the bottom line profit did top analyst expectations. when "squawk alley" continues this morning, one of the most powerful women in the world, imf managing director christine

lagarde live in a first on cnbc interview. a familiar face returning to zynga. we'll see what he can do to turn the company around. and ahead of the sunday premier some of the stars of hbo's "silicon valley." "squawk alley" continues in a moment. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are.

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we have a news alert for you. phil lebeau in chicago with the details. good morning, phil. >> hey, carl. every month we get from the department of transportation a report card on how the airlines did, going back over a couple

months. we're looking at february from the d.o.t. and for the month of february 72% of the flights on time. we had a series of snowstorms particularly in the northeast that were creating a lot of travel problems. the top three airlines in terms of on flying or on time flights, alaska at 85%, followed by hawaiian at 82% and delta at 78%. the bottom three when it comes to on time arrival, the old american eagle, frontier airlines and jetblue at 59.7%. i'm not surprised by the jetblue given the fact that their hub in boston was hit hard in february by a number of storms. there were five flights that sat on the tarmac more than four hours in the month of february and five other flights that sat on the tarmac for at least three hours in the month of february and again, all of these were related to storms somewhere keeping those aircraft from taking off and, therefore, parking them on the tarmac for three plus or four plus hours. one final stat, guys, the percentage of bags delivered or

complaints baggage, 3.92 for every 1,000 passengers. that's actually an improvement compared to february of 2013 or 2014. guys, back to you. >> all right. phil, thank you very much. phil lebeau. let's talk zynga the stock hit hard after ceo don mattrick stepped down as the ceo. zynga announced founder will return effective immediately. mat tick took over in july 2013. stock still down almost 14% currently. that's a two-week low. what does this mean, john? >> i think it means we have a clear failure to disrupt here. this is bad news. don mattrick came from microsoft, deep experience in gaming supposed to be the adult supervision and fix this. apparently that didn't work. pin cuss coming back, look, the market cap now for zynga is around $2.5 billion. compare that to king which is $5.5 billion. both have underperformed, both i believe below their ipo prices,

and interesting i was looking at electronic arts the company they were supposed to disrupt it's been outperforming zynga for 2.5 years. that stock has soared. the business model was based on the idea that zynga and king would not have to pay as much in marketing and endorsements to get attention to their games because social media and mobile were supposed to create a different kind of engine. that hasn't born out yet. i think they need to kind of recreate their reason for being this data driven approach that pincuss pioneered see if he can retool that. >> the issue, everybody ultimately is in a hits driven business. even apple is in a hits driven business. the problem is the saving grace of this company right now is two upcoming games basically called empires and allies and dawn of titans which are exact copies of clash of clans from super cell, routinely the number one game grossing in the app store and game of war from machine zone. their strategys to copy games very strong incumbents, rich greenfield has a note out this morning, investigated both games, done channel checks, very

negative on them. that's pretty scary. >> the name of that note by the way be careful what you wish for because they wanted mattrick gone but not everybody assumed it would be pincuss who returned. >> they didn't want the guy back they put them in the position that they needed somebody new. >> this is the company that did farmville which for its time was very exciting. people loved. did do words with friends. you can't lose track of the success. even disney animation had a weak period before they bought pixar. comebacks do happen in creative media. it does happen. >> people remember the era of condor and the devil in max -- that wasn't toy story -- >> i have no idea what you're talking about. i don't remember that, no. >> as a disney aficionado you should. >> i'm going to look it up. >> you went through a falo period. >> the most successful investment in the past few years is the building in san francisco, $230 million in value to $500 million between cash and real estate the stock 1.78 according to stern aggie.

relatively limited downside at this point. >> but real estate has always been a big story with these guys, real estate and cash. >> not a big floor to the stock but a floor none the less. >> all right. >> coming up, we talk to some of the stars of hbo's "silicon valley" ahead of the sunday premier and our conversation will be with you in just a moment. plus, in a few minutes from now, sara eisen has a great interview for us in washington, sara, what can we expect? >> well, christine lagarde the managing director of the imf is on stage now giving a speech here at the atlantic council. notable headlines she says the global economic recovery is quote moderate and uneven. she said it's going to be a bumpy ride for the federal reserve or for the markets. until the federal reserve lifts interest rates. she also warned about dramatic swings in currencies. you know i'm going to go there. we're going to talk about all of these topics when "squawk alley" returns live with the managing director of the imf, christine lagarde.

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all right. ins case you've been under a rock apple watch reorders start tomorrow midnight pacific, 3:00 a.m. eastern. you might not want to do it in an apple store. retail chief angela ahrendts saying in a press release to provide the best experience and selection to as many customers as we can we will be taking orders exclusively on-line during the initial launch period. previews will be available at stores tomorrow. customers who preorder watches can have them shipped starting april 24th. i think it's more complicated than they're lining it up in the press release. if you go to a store we are hearing from apple you might be able to kind of get an appointment to try one on without preregistering on-line and they might actually help you

preorder from in the store but it will be the same on-line process you do at home anyway. if you really want one do it on-line. >> i have some tips that i'm going to give to everybody right now. first of all make sure your credit card is updated in your itunes account. don't want to log on to the apple store and not have the credit card. there are two band sizes for the cheapest model. measure your wrist in advance. last thing you want to be is at crunch time when the orders are going through and not know which size band. sells fast, i will be up at 3:00 a.m. refresh, refresh, always get it up late. my guess 3:15, 3:30. >> is this like a concert ticket, first five minutes gone over game over. >> i think they will be sold by the time you come on air tomorrow morning. >> i think that's obvious. >> we will see these on ebay. >> i think you have to do it within the first hour. it's risky to not be on in the first hour. >> you will be? >> my alarm set for 2:45, at my

couns counsel. >> will you periscope it? >> yeah. >> last night the official screening of "silicon valley" in san francisco. cnbc was live on the red carpet and josh lipton joins us with the highlights. josh? >> well, john, "silicon valley" is the butt of a lot of jokes and you're about to hear a lot more of them. a-list tech celebrities like mark pincuss of zynga, jereny stoppelman of yelp came to show support of mike judge's hit comedy "silicon valley." he tells us the show isn't that far off from reality. >> i think we try to make the actual stuff that they're doing in the tech parts, the technical parts of it, pretty accurate, and then just, you know, we sort of exaggerate comedy and personality, you know, to make the show funny. but i think the show is better for being more realistic when it can be. >> now, the comedy follows a

house of it tech geeks going through their series round of funding for their technology start-up, pied piper. thomas plays richard hendricks the leader of his crew that lives and codes together. >> i say that the show hits pretty accurately and a lot of the times you don't have to like crank up -- >> goose it. >> you don't have to goose it, don't have to put a lot of mustard on all the little, you know, bits you're seeing in the show because it's like, well that's just like almost borrowed straight from the real world counterpart. >> tech titans, they are following the hbo series as well. last season featured a cameo with google's eric schmidt. snapchat spiegel's is set to appear in a episode and legendary vc mark andresens is a self-admitted super fan of silicon valley. so what can viewers expect from season two? you will have to wait until

sunday. that's when the first of ten new episodes airs on hbo. but, of course, you can now watch "silicon valley" without cable thanks to hbo now. the company's service that's available on internet connected devices. guys, back to you? >> my favorite, josh, was the tech crunch disrupt episode where they used the actual space and all the actual, looked like disrupt. they kind of say the things that we hear tech execs say with a smirk and it is hilarious, about changing the world. >> i know. the changing the world that to me is the line where they're like, make something app to find music lyrics and our mission is to change the world and every start-up you meet with can have groceries delivered, we're changing the world. >> it's not the only debut. obviously "veep" and "game of thrones" sghoo i got hit with hbo now ads. they're pushing it hard. all the people for the shows are

geeks that don't have cable. >> josh lipton out west. simon hobbs to count you down to the uk and european close on a day where the greek nightmare deferred for a while. >> absolutely. the greeks have made this payment to the imf and we'll hear from christine lagarde in five, six minutes time. this is a standout session for europe. check out the figures. look at the strength of the rally we've had today. of course the backbone to this is that you continue to see the european central bank engaged in massive quantity of easing forcing the yield down further on sovereign debt. yesterday, not that switzerland is in the eurozone but the swisz was selling at yif yields. today the german bund we're down there at 0.16. we've come below that during the course of the session today. the bond market, sovereign bond market, is rising across europe and supportive for equities as well. as the corporate news. take, for example, france where you've got la farj surging it can do its deal with holson,

vivendi, bowing to activist shareholders. the french market the pink line here, is catching up as you can see on the german dax for the year. they're up 23, 22%. the bigger story overall with qe. the energy plays following through again today. yesterday, of course, we had the big deal with shell buying bg or indicating it would and the question as to where next you might see big oil buying to be really honest with you, the one that keeps popping out, will they, won't they, as a small fry that might get bought. these are the other names you can see around europe and sweden and so on that have gained today. the luxury goods sector in europe has also done well in a broad-based rally today. credit suisse is talking about 3% organic growth for the first quarter. there's also some widespread chatter, i mean just reported everywhere, with goldman name attached to it maybe a private equity group might move in on burberry. nothing specific but widespread

in what people are writing. richmonth has done well on watches. reflection of the aftermath of the launch of apple watch or orders coming in. thank you very much. >> when we come back our conversation with one of the most powerful women in the world of finance. managing director christine lagarde will join us in a first on cnbc interview. dow down 52 points. back in just a moment.

i'm mary thompson and here's

your cnbc news update at this hour. a man opened fire inside a court in milan killing three people including the judge. the suspect caught by police while fleeing the scene on a motorcycle. police say he was in the courthouse for a bankruptcy proceeding. a suspect ins last week's attack on a kenyan university arraigned in a court. police say the suspect along with five others supplied guns to the four gunmen who carried out the killings. climate prediction center raising its forecast for change 70%, up from 60% last month. el neo the warming of pacific sea surface temperatures and can trigger droughts and flooding. if you live in a state where salt is used to clear the roads of snow and ice, get your car washed. the national highway safety traffic safety administration urging motorists in 20 cold weather states to get their cars under carriaging cleaned to prevent rust in the brake

linings after concluding a five-year investigation into rusting pipes can carry brake fluid in about 5 million older vehicles. your cnbc news update at this hour. back to "squawk alley." looking for something to watch this weekend, you will have a ton of new options, netflix launching a series from marvel as the rivalry with hbo steps up and now that its hbo now app is for sale, julia boorstin joins us with that story. daredevil may be a lesser known hero but he could be a key player in netflix's battle for subscribers as it faces hbo now. daredevil's 13 episodes hit netflix at midnight tonight. it's the first in a five series partnership with marvel. netflix chief is telling me he expects the show to appeal not just to fan boys but marvel's

broader audience that makes its films blockbusters at the box office. if these netflix series on marvel characters are hits disney could develop them into movies as well as more seasons for netflix. the head of -- ahead of netflix's earnings shares rose 4% yesterday, down slightly today but the boost yesterday was on analyst expectations that the company will beat guidance when it reports next week. now daredevil launches days after hbo now. hbo stand alone app goes head to head with netflix. hbo's looking to draw subscribers to its new app with the new season of "game of thrones" which debuts sunday. the app costs $15 a month compared to netflix at $9 a month. hbo is giving its first month away for free. hbo now is also working to appeal to millennials. they're less likely to pay for cable and the network is giving away an episode of "silicon valley" on twitch, amazon's live streaming platform ahead of that

show's season two premier on sunday. which company will win this content face-off? netflix calls hbo now a validation of the internet tv model. he told me he doesn't think it's a winner take all situation and predicts that consumers will subscribe to multiple services including, of course, netflix. carl, back over to you. >> interesting. julia, the media picture continues to be cloudy. reports from the street.com that disney and apple in dispute about how much is going to be given or not. >> and that youtube is going to roll out their subscription offering. to creators to go into their account for people to be ready to buy content. are you hearing a lot, people talking about licensing content to youtube. seems youtube is not in the high quality game and i'm wondering why they're sitting on the sidelines on this? >> what i'm hearing about the new youtube subscription service and we have to remember that we did hear about this from youtube ceo back last fall at the code media conference is that this is about their premium content

subscriber. not premium content the youtube content creators, individuals who have huge followings on youtube. what youtube did is they reached out to them and said we would love to include you in some sort of original content package for youtube. but this is not the same kind of content that hulu sells or netflix sells. this is more about the youtube creators, people who have their big followings but not creating the kind of content you find on tv. what this would be about, though, is having no ads and also potentially being able to watch it when you're off-line, like when on the subway. >> all comes back to michele fon every time. thank you, julia boorstin. when we come back, christine lagarde with sara eisen. she is running a bit late. as soon as we gettler to the camera she will join sara eisen in a moment. who are we?ncer ] we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work.

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coming up, jpmorgan's jamie dimon issues a warning to shareholders saying there will be another crisis and no investor will be safe. we will talk about what it could look like and best ways to protect yourself and the halftime energy summit continuing with fidelity fund manager john dowds his best bets in the oil space right now. zynga founder mark pincuss retaking his role as ceo as the current chief exits. can he save this company and the stock? the traders weigh in. see you in about 20 minutes. >> sounds good.

thanks. from the masters this weekend to the start of baseball season fans rushing to get the hottest it tickets in sports. many turning to on-line ticketing site seatgeek who boasts investors like peyton manning, ashton kutcher, raised $62 million in funding. joining us is the co-founder jack groetzinger who joins us at post nine. good morning to you. >> thanks for having me. >> boxing, baseball, final four, like christmas in april for you guys. >> lot going on, yeah. >> is this the most active time of the year? >> it's up there, yeah. it's cool because boxing is an example of something that doesn't happen every year at this time but it's become a huge event. >> arguably making a comeback in this country. what's pricing like overall? >> for boxing specifically it's nuts. the cheapest ticket to get into the mayweather fight is $5,000 and then if you want to sit ringside, 30,000, 30,000 plus. off the charts. we've never seen anything like that for any fight. >> when you compare your business and you and stub hub or ticket master, is it always best to check the original source

first or do you often have lower prices and a right timing to go to your site to buy secondary? >> no right answer. broadly speaking sure you will want to check both. but on the secondary market you usually see cheaper prices than you will primary. from a timing standpoint usually see things sort of decline as the event approaches. if people are willing to take a little bit of a risk, we usually encourage folks to try to buy, you know, as short as a few days before. >> what have you seen mobile do to your business? people engaging more, buying more, using mobile devices, how has that changed the marketplace? >> mobile has been the biggest trend in ticketing the last few years. the paper ticket stub everyone is used to seeing is becoming a thing of the past. if you look forward a few years, everyone is going to be getting in by scanning their phone at the gate. >> not their watches? >> maybe their watches. but not paper. and for us we see already over two-thirds of sales on seatgeek happening on phones. >> raised little money until august last year, raised $35

million, just raised $60 million, raised all your capital in under a year. what is going on in the private markets relative to the public markets? did you have hedge funds coming after you? is there a problem that you think that there is so much capital flooding the private space right now? >> our financing isn't necessarily emblematic of a larger trend. we spend four plus years to build the best product on earth and trying to build a wonderful product for our vertical and we felt like kind of four years in, we figured it out, had something that people loved and it was time to scale it. >> finally people curious obviously about fees and pricing power. is the sky the limit there? >> no. i think, you know, consumers will push back against fees. one thing important for us, is to make it fees transparent and not have the bait and switch where you had them at the last minute, this what is you're going to pay, no surprises when you get to checkout. >> you must get the best seats too. thanks for coming in. >> thanks for having me. >> jon steinberg, thanks to you

for an active day. when we come back christine lagarde finishing her speech at the atlantic council and with us in just a moment.

greece completed its payment to the imf but lots of uncertainty remains. sara eisen in washington with the managing director of the international monetary fund, christine lagarde. hey, sara. >> hey, carl, thank you very much. madam lagarde always good to see you and have you on cnbc. >> good to see you too.

>> start with the news, another close call for greece but appears you have received the payment today. >> yes, we have received full payment that was due today and i'm glad that that was done in an orderly fashion. >> by no means the uncertainty over with. another biggy may 12th. do you have any assurances you'll get that one? >> what matters is now for the greek authorities and the three institutions, the imf, the ecb and the european commission, to get on with the work. and to really see how we can together identify the measures that will take greece out of the very bad economic situation it could be in if those measures were not taken. it's a matter of restoring the economic recovery, restoring financial stability, and independence, and at the end of the day, making sure that greece's full sovereignty over its economic fate. >> they have reforms they need to lay out in the next few days

to get another bailout. i know you recently had a meeting here in d.c. with the finance minister. is there anything you can tell us about that when it comes to them making good on these reforms? >> a good productive meeting on easter sunday, which only goes to show how dedicated and determined we are to helping greece in the process. we talked about how we can improve that process because it's been difficult on almost a daily basis, how to, you know, sit down, compare numbers, look at measurements of the proposed reforms, see how it contributes to the fiscal position of the country, how we aim at reducing the debt going forward, and what will unclog the economy. >> do you think this new government is fully committed to staying in and not defaulting on a payment? >> i think that we're elected on a political platform which has to be respected but yawly the

objectives put together and agreed by the company with the european partners have to be pursued. economic stability, financial stability, independence of the economy, and membership within the european union and eurozone. >> i wonder, so much has changed since the last time we spoke about this, in the last few years, you don't see contagion anymore, don't see as big problems systemically with greece, do you think europe would be okay, be able to handle if greece does default on its payment and has to leave? >> i think it would be a terrible situation for the greek people. equally i think that the firewalls, the banking union, the strengthened fiscal union, have put the eurozone in a much stronger and better position than where it was four years ago. >> yeah. i want to get to your speech. you called the global economy, the global recovery moderate and uneven. i know this is a setup for next week, the imf world bank

meetings but can you give us more color how you're characterizing where we are 6 1/2 years after the financial crisis? >> well, first of all, there is recovery. but as i said, moderate and uneven. and it has shifted a little bit. advanced economy is doing a bit better. emerging markets and low income countries, particularly emerging markets economies doing not as well and being much more all over the place. india, bright spot, china moderating but in a sustainable fashion. on the other hand, russia not in good position. brazil, completely flat. and a lot of middle eastern countries in a difficult position for geopolitical risks. what we see is that the scars of the financial crisis have left a big mark. if you add to that the aging of populations, in advanced economies as well as in some of the big emerging markets and the

lack of productivity, that's a pretty toxic combination and we need to encourage policymakers to take the right decisions. because we can get out of that risk of new mediocre. it doesn't have to be the new reality. >> are you saying -- i mean the phrase is secular stagnation, this whole debate. >> my phrase is new and mediocre. secular implies you're stuck. >> larry summers is wrong? >> i'm not saying he's wrong. he's very often right. what i prefer to use is this new new mediocre risk. i believe that if the right measures are taken, if the new multilateralism is embraced we can get out of it. we can have better growth. we can include more women in the economy. we can stabilize the financial system and make it stronger. but it needs determination, courage and measures -- >> i know you're calling for action. on the u.s. for a moment, you describe the developed world as a bright spot.

both ground to a halt in the first quarter in the u.s., the improvement that we have seen in the jobs market, sort of backed off a bit because of the weather? do you agree with that assessment? >> you know, just as a swallow does not make spring as we say in french, i suppose you say that as well, i don't think that one lower number should gray the whole picture which is otherwise quite rosy for the u.s. economy. so i think that if you combine the bad weather, the strike in the harbors on the west coast, you have a few ingredients to have low growth in the first quarter. we had that last year, remember. >> i remember. we talked about it. is it rosy enough we are ready for an interest rate increase? >> whatever -- whenever it happens, i certainly hope that -- and i'm sure -- that the phasing communication, the analysis, will be at the top. >> you warned of a bumpy ride for markets when liftoff does happen.

what is your biggest concern? the impact internationally? >> i think i'm concerned about two critical issues. one is very low, if not negative interest rates, for longer period of time than we think is necessary to kickstart the growth. that could really create the compost for some potential, you know, asset class overvaluation risks. and the second one is, the situation of particularly the corporate and emerging markets market companies, that have significantly borrowed in dollar denominated loans and could find themselves in a tough spot if the dollar continues to be high, the interests become -- begin to rise. >> yep. >> and if they are trapped by, you know, low commodity prices and have not hedged, that's a -- >> dollar here getting too strong for comfort? >> i wouldn't say too strong. it's something that, you know, is going to adjust depending on

the strength of the economy and what it tells us at the moment, is that the u.s. economy is doing extremely well better than many others. >> you have the two most major central banks going in opposite directions. that's unprecedented. and that creates a big gap and all sorts of volatility on foreign exchange. that has to be sp somewhat of a kwern. >> qe by the fed was also unprecedented. let's face it, the monetary policy authorities are in unchartered territories and they're going to have to talk to each other as much as they can to order to anticipate potentials. >> i want to ask you, since we're on the markets, the stock market, not such a moderate and uneven recovery for stock prices. european stocks at a record high today. u.s. is not far from it. japan, 15-year high, is that disconnect between the global economic fundamentals and the markets troubling? >> you know, it says that there is a shift, there is very low cost financing. the bond market is changing

enormously. if the rise in equity prices and capital markets is indicative of economies that are beginning to rise and do better, that is great. if it means that this available financing is directed at buyback schemes, for instance, that's more worrying. >> you're against the corporate buybacks? >> i'm not against it. i think that financing should be used to fuel the economy, to create value, and to stimulate demand than job creation. >> you're not going to call it a bubble what's going on in financial assets? >> i think that the monetary authorities, supervisors of various markets have to be very attentive and very granular to see whether there is bubble developments and if so take the macro and micro measures that will be necessary to address them. >> speaking of bubbles i'm curious, what do you think when you hear that a company like uber, private market, gets a $41 billion or pinterest $11 billion valuation or palcle tear, many have never heard of, for $15

billion. >> i say that, you know, those are clearly new markets, new approach to demand and if it can help unlocking some of those very protected turfes and areas of the market, hey. >> you don't think that sounds a little bubbly? >> you know, i've lived through the internet bubble some, you know, now 20 years ago, and i'm not sure that we are in the same moment. >> you mentioned the bond market and you did raise this in the speech, this idea of liquiditity concerns from some of the regulati regulation. jamie dimon warned about this in a shareholder letter yesterday. in the event of another crisis it could be very troubling because of lack of liquidity. he mentioned once in 3 billion year flash crash in bonds on october 15th. where do you see this? >> we warned about that liquidity potential risk about six months ago now and i'm very pleased that it's becoming sort

of main stream discussion because it is true that, you know, in the case of liquidity if everybody wants to exit at the same time it's going to be difficult. that's an area where authorities have to be extremely mindful of any -- >> did the regulators go overboard? >> i wouldn't, you know, draw that conclusion. i think the regulatory changes were called for, have to be implemented, they have to be implemented in a reasonable, consistent fashion, because we don't want to have this potential discrepancies between one part of the world and the other or amongst countries in a particular currency zone, and that's what is needed. we don't want to have another financial crisis. >> right. you did mention the gender gap and i know you've been talking about this for a long time. curious what you thought of the ellen pao case and what we learned from that? >> i'm always supportive of any measures that will help reduce

the gender gap. i think that it applies not just to our economies, to the advanced economies world, but also something that is critically important for the low income countries, and we have actually measured how we can gain growth by reducing the gender gap. it's mind boggling. >> what about this idea of gender discrimination? you've worked at the top of law firms, finance ministry, imf, male dominated industries and worlds. >> i -- >> can you sympathize with those claims? >> i think that's -- there are many areas, many measures that need to be taken to eliminate those discriminations and they are sometimes legal, very, very obvious ones, and sometimes it's in people's head and that has to change. >> always great to talk to you. thank you very much. madam christine lagarde, managing director of the imf. back to you. >> sara eisen with christine lagarde making a bunch of comments saying she's glad

greece made the payment to the imf in what she called an orderly fashion, said that the government there elected with its own mandate that needs to be respected in her words, did say, jon, monetary authorities need to be attentive and granular and look out for bubbles in various asset classes and then interestingly, referring to uber and pinterest's valuation said maybe there's an explanation it if there are truly companies that are disrupting protected networks of business, maybe some of these valuations are -- can be explained. >> saying this doesn't remind her of the dotcom bubble which, of course, she lived through along with the rest of us and pointing out that she's paying close attention to gender discrimination issues in the work place when sara asked her about the ellen pao trial, particularly in lower income countries where having equality is really important. moving on, many apple fan boys and girls are looking forward to the apple watch launch but it isn't the only device from apple making headlines. a first look at the newest 12

inch mac book that features a touch track pad, usb port. got it right here. what this strikes me as saying, it's -- give you a look at the thinness right there, the mac book is become the ipad faster than the ipad is becoming the mac book. i think if you're an apple investor looking at the company strategy, the hardware, they've always been very good at fine tuning the hardware. vertical vertically integrated there. the software challenge is rising more and more for them. how did they enhance the probability tifts of mobile devices like the ipad. with a mac book like this the ipad has competition. >> i agree. we had a chance to play with these in the week. it's fanless. no fan generating the ventilation. the keyboard is a new flat keyboard that responds to touch no matter where on the key you touch it and the word from apple is one of my questions was, are we nearing a point, here's a

look at you and your kids, are we nearing a point where the human eye can no longer appreciate the improvement in pixels and probably not the game now. it's more about responding to improvements in color rather than resolution. >> definitely. and brightness also. once you get that retina display, not just apple, lots of companies have it, lenovo has laptops that are this thin as does acer and several windows providers it's an it interesting age and era in computing with challenges. the performance of this is not going to be on par with your mac book pro. if you're doing a lot of video editing particularly in 4k and hd this isn't the machine you're going to want to carry. doing lightweight productivity even spread sheets at the level that most do them you could get it done with this and might choose to carry it. >> we have talked about the tablets challenges, right, and the ipad's challenges even tim cook called it a hiccup. improving on this maybe they are allowing the category of a tablet to continue to sustain damage. we'll have to see.

>> this costs more. >> that is true. >> that is true. asp all important. >> market has been steady here, dow down about 23 points. s&p is hovering around 2080, a busy afternoon. over to scott wapner headquarters and the half. about ♪ ♪ douglas lane and associates, dan gre house and randy frederick managing director of trading and derivatives at charles schwab. our game plan looks like this. crisis warning, why jamie dimon says another big one is coming. what it could look like and how to protect your money. crude reality, fidelity four star fund manager is john dowd joins our summit where he's