good morning, everybody. welcome to worldwide exchange. >> hi everyone. i'm seema mody. here are your headlines from around the world. >> credit suisse shares slipping into the red despite stronger than expected earnings. the bank has made big strides tackling regulatory issues. >> in london sky shares hit a 14 year high after net profit jumps 14% after apple chip designer also helping lift the ftse 100.

>> s.a.p. gets a boost after they lift the first quarter profit. >> the ecb is considering a plan to increase hair cuts on greek bank collateral if athens fails to convince it's international lenders on reforms. >> hi everybody. good morning. >> good morning. >> nice to be back. a lot going on still and this week crucial in regards to greece. >> earnings. 150 companies on the s&p. >> some of our guests are optimistic with regards to earnings but most people are saying we could be in for disappointment. the outlook is going to be harder this year. >> i don't know. i think the expectations are so low that it give mrs.s more room for

companies to meet expectations. >> it depends on which sector you're looking at. the tech sector has been quite buoyant but then you have other sectors where there's still some nervousness with global growth and cyclicals out there. we've seen a pull back in them. >> energy. oil price $60 barrel but they're going to have to compensate for the dramatic drop we've been seeing over the past couple of months. something we'll get a better eye on over the next couple of days. >> speaking of earnings though credit suisse. >> yes. profits drop 20% in first quarter thanks to tragd gains from market volatility. this as they took in an additional 7 billion swiss franks during the period. carolyn has more on that story. >> good morning to you seema and louisa. according to analysts the results from credit suisse were mixed. better than expected and a very

strong first quarter driven by volatility and the rebound of equity and fixed income trading. but that said that was an advisory and underwriting, those were some of the areas where it was a little bit weaker but we're seeing an upward trend going into the second quarter. secondly shares in this company dropped well since the first of the year. especially since the ceo was announced. since then shares higher by 16%. maybe what we're seeing today seema is a little bit of profit taking. this morning i spoke to the ceo about what's in store for the rest of the year. >> we certainly continue to have very strong backlogs in terms of the business that's out there to be done. i think that the money flows continue to be strong into equities. obviously some of the fixed income markets, that continues

to underpin markets around the world. there certainly are big risks out there whether it's greece or other geo political issues and the question of if and when interest rates go up. there are a number of concerns out there but the market does seem to continue to shrug those off and we see a lot of business to be done between now and the next couple of quarters. >> what about equity markets? >> again it's a question of when you have negative interest rates across lots of sectors of the fixed income side a lot of the money ends up moving into equities. so whether or not that means that those -- that money is moving into also an overvalued sector is the question but i think our view is that it's probably going to continue. >> all right. there's been so much debate about whether this decline in the investment bank whether it's been a structural one. you have taken that view because you've been cutting a lot of your underperforming businesses there. or if it's just a cyclical one.

what is your view on that? >> they're both elements in the business obviously. there will be cycles so some quarters some years, you'll see better environments from investment banking. some less good. we have been of the view that we have been in the lower part of the cycle and we will move into the better part of the cycle but even within that a lot of structural change has to happen. with the leverage ratios out there it's impacting different parts of the business differently and there has to be a response to that. we've really tried to change the structure of the business in a way that it is much better suited to the current regulatory environment which is more of a sector. >> is there a sense that this drive to pull back the investment bank will that be intensified under the upcoming ceo. >> quite obviously that's a question for him to look at when he comes in.

i think obviously the structural issues within the industry will continue to be porn issues that are going to have to be addressed. so i think different parts of the business will be impacted by the additional regulatory requirements coming in and everybody is going to need to respond. >> that was brady dogan. we saw high quality in areas they don't want to be growing. and low quality in investment management. the bank will want to put more focus on wealth management and that's probably also why we're seeing a little bit of disappointment throughout the trading session today. >> yeah down about 2.7% in today's trade. carolyn, thank you. head to our website for the full break down of credit suisse's q-1 earnings at cnbc.com.

>> german software provider s.a.p. benefitted in the first quarter. the net profits have been squeezed by it's transitions to profits based in the cloud. annetta joins us this morning. >> that's the first time in years we got good numbers from s.a.p. when it comes to the cloud business. the shares are also reacting so positively that it's transitioning to more internet based solution for s.a.p. is bearing it's first fruit. looking at the performance, it's up more than 130% while at the same time their bread and butter business from the past but still the biggest revenue generator, software licenses is also up by 12%. surprisingly looking at it mea is doing stronger double digit growth there.

saying across the board, germany is very strong s.a.p. in the statement. the region is adding more than 100% and also asia pacific for license and the cloud revenues and that is mainly also on the back of the lower euro. of course that is helping s.a.p. tremendously as a worldwide organization. very big in the states and that is here to stay. s.a.p. is also saying that the lower euro will add more than or roughly 30% in revenues for this year and that is only because the euro is so cheap. back to you. >> annetta, thank you. mixed picture for u.k. earnings with sky leading the pack. shares hit a 14 year high after reporting a 12% rise in 9 month operating profit to more than a billion pounds. now they signed more than

240,000 new customers in the quarter. a 70% rise over last year. arm has 30% rise in first quarter profits boosted by strong demand for smartphone. arm also expects 2015 revenue to come in line with expectations. the company beline brans like silver spoon, sugar, suffered a 4% fall in pretax profit. that stock trading down and bad weather has hampered information at the world's second largest mining company with production rising 12%. that rise was less than what analysts were expecting. let's talk more about u.k. earnings with richard hunter head of equities. thank you for joining us here on worldwide exchange. out of the numbers on the wall which one do you think gives us a good indication of what to expect going forward from stocks on the u.k.?

>> obviously arm's rise in terms of profits in the share price has been expoints higher nennential. in terms of sky this is more interesting as much as the media sector is very much transforming. it would have been quite a shock five years ago to imagine sky being like the same place but with the consolidation we're seeing with quad play and stocks specifically having the quality in german and italian businesses some of that has continued to wail the market consensus as of late but today's numbers showing the strong customer growth and concerns. >> the ftse 100 houses

multinational names. 22 report their earnings in dollars. another five report in euros. how much of an impact will the ftse 100 have based on currency head winds given the exposure overseas. >> it's an interesting one. as much as we expect to see strong quarter earnings in europe because of the weaker euro and head winds in the state in terms of the strong dollar, you have a bit of both. it depends where the companies are trading. sterling has been strong against the euro and not so strong against the dollar. a lot of those companies are u.s. facing. >> a pretty standing figure here too, you talk about the opec decision to keep oil production despite the growing demand that

it's wiped about 80 billion pounds off the oil and gas sector on the ftse. >> yes, that's right. we've seen that echoed in the mayors majors. both bp and shell have had to say we will maintain and protect the dividend and on the other side of the coin that's been a boost. almost a tax cut for the consumer. >> is it too early to get back into some of these oil and gas companies? many of them have been sold down quite substantially. is it time for a come back? >> depending on your attitude to risk, of course the oil majors are continuing to consolidate the operations and where they see opportunities as we see with the shell bg deal. they're going to look to what they perceive to be making long-term investment buys at slightly cheaper prices. so with the -- baring in mind

that you're being paid to wait nor the dividend for the likes of bp and shell they're toward the lower end of the risk spectrum. >> a mix of about 10% of the ftse 100. our focus will turn to tesco that reports tomorrow. we want to continue to discuss the u.k. stocks as well as the impact of the general election coming up on may 7th. and dear viewer what do you think? is this the time to get in on stocks on the ftse 100? you can e-mail us or tweet us at cnbcwex. but for now, an update on the market with lou. >> we saw this announcement coming into the session yesterday with more economic stimulus measures and we've seen the asian markets overnight relatively steady to stocks steadying on the back of the move to cut their requirement ratios. here in europe higher by over 1% at the moment.

so we're maintaining slight gains in today's market session. moving on though and showing you what's happening to some of the main markets out there, the ftse, xetra dax, cac 40 all hanging on to gains. a little bit of a pull back in athens in yesterday's market trading. we continue to see that in today's session without athens off by 2.5% or so. we continue to have these greek debt negotiations taking place. the imf, creditors all talking to greek officials this week and it's an important week to keep our eye on greece. we continue to see moves in the bond yields. speaking of bond yields in greece we've seen this inverted yield curve taking hold. a lot of investors still fearing you could be look at some type of default. we'll be talking to one of our guests later here that says buy greek bonds at the moment. it will be interesting to hear what he has to say and looking at the ten year in the u.s. a

yield of 1.9%. you have a yield in germany continuing south as well. we did hit a level of 1.05% not that long ago. we have come back a bit but still some arguing that we could be looking at negative german yields at some point here in the not too distant future. the 10 year in the u.k. yielding. they're almost at 13.5%. the fx markets, you have a euro dollar right now hanging on to 106, 107. we're a little bit lower on that. it's interesting to see we haven't had more reaction in the euro given these concerns of a possible greek default. a lot of that has to do with the fed and speculation about when we could be looking at the fed hiking rates. you have wti crude hanging on around 55 or $56 barrel. brent off shy of 1% around 62 or

$63 barrel. spot gold and spot silver flat to a tad higher. also not to forget the asian markets because you would have noted lower for their fifth straight session in a row. there's a lot of concerns of a softer corporate earnings season. you have some pretty significant drops seen on the indian market. nikkei 1.5% and hang seng index higher by 3% seema. >> coming up on worldwide exchange happy birthday to your majesty as the queen celebrates her 89th birthday we're getting your messages for the world's oldest monarch. is an early break up on the cards for yahoo! and microsoft? we bring you the latest news ahead of its earnings release. plus if you have around $25 million in spare cash we can tell you how to spend it. stay tuned to find out. there's a hint right there.

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welcome back. we're very glad you're with us this morning. 16 days to go before the u.k.

election. the latest icm pole has the conserve tifrs ahead conservatives ahead. >> wilfred frost has been taking a look at the possible outoutcomes. >> the prize moving into the house behind me and becoming prime minister of the united kingdom but what's the process in order to be able to call number 10 your home? well in a u.k. general election voters cast a single vote for one candidate in their local constituent sys. each of which gets one member of parliament that is in the house of commons. it's been convention that the leader of the party that wins the most seats is invited to form a government by her majesty the queen. 326 is the number of seats that

would allow a party to operate without support of anyone else. for the most part majorities have been common place. neither of the two main parties the conservatives and later look likely to gain 280 seats. aural of this means a coalition will be formed. that's likely to be much harder for conservatives this time around than in 2010 with most of the other parties fed up with the main incumbent. it's possible that no coalition or alliance is formed in which case a minority government would result. it could well lead to the need for another earlier election. either way the potential decline of the liberal democrats and rise of the u.k. dependents and scottish national parties drastically changed the u.k.

political landscape making the outcome hard to forecast. they still claim an absolute majority is in their sights the 2015 u.k. general election is the closest and most unpredictable for over 20 years and that is what makes it so exciting. wilfred frost, cnbc 10 downing street. >> it's super exciting. he's born for that world. u.k. politics. richard is still with us. 16 days to go. it's going to be close regardless. it does seem like the polls are changing on a day by day basis. what do you think is going to happen with regards to market reaction? >> i think we're looking on an international stage. i won't go as far as to say it's a side show but it's an event and has less of an impact even

though a damaging coalition would not do much for it but in terms of stock specifics you'd probably look at it as being a better barometer of the u.k. economy. but of course it tends to be a currency story in as much as what's it going to do to the u.k. economic recovery depending on who gets into power of course. >> why do you say it could be a side show? because you're not the first-person that said that. a lot of people are saying that and i find it curious because there's still a lot of uncertainties, especially if we're to see a referendum for example which conservatives are opposing. both could be detrimental to the business. >> having said that in the round in terms of the ftse 100 at any given stage even as we were discussing today we're talking about european earnings u.s. earnings, the slow down in china. what's going to happen with

greece. there are so many global events that are going to have an impact on the ftse 100. >> which would have a larger impact on markets? grexit or if they push forward for britain to leave the eu? >> the brexit. i hope we can come up with a better word for that. >> but the market is obsessing for greeks now, for months i should say. >> the greece thing is punching above it's weight. it's 2% of viewers own gdp. in normal circumstances it shouldn't have become the issue it has become but it's the fears of contagion and a knock on effect and even in terms of the renegotiation of its debt. it's also the possibility of other countries coming to the

table. >> i want to get your thoughts on the currency. the pound was at a one month high last week but how much political uncertainty do you need to factor in ahead of the general election? >> i think we're up to events at the moment in as much as it's increasingly looking like a coalition. that can change as we start to countdown and you can pretty much guarentee volatility on the back of that. >> richard thank you for being with us. happy birthday it's the queen's birthday today. >> happy birthday. >> her majesty's 89 years old making her the oldest monarch in the world. royal watchers are also firmly fixed on kate the dutchchess of cambridge as her baby is due in april. >> they would love if her daughter was born on the same day as the queen's birthday.

>> but then the pressure would be on. >> a fifth great grandchild could make an appearance early to coincide with this birthday. incidentally, they're speculating about what the royal baby will be named, the favorite names are alice and charlotte and if the baby is born today it could be elizabeth in honor of the queen. >> i have to say, at 89 the queen looks good. i want to know her secret? is it flaxseed? what does she eat every day. >> i don't see her eating kale every day. but i think it's a rich life with t los and lots of family. four children 8 grand children -- director says she doesn't have to work. 4 great grand children and then again the fifth great grandchild is due any moment. >> she's been on the thrown for 63 years and in november she'll be the longest reigning monarch in british history.

>> she's also been married for 67 years. can you imagine that? that's three times my life. >> anyway we want to hear from you. if you have a birthday message for the queen join the conversation or ask about markets as well. on e-mail worldwide on cnbc.com. our personal twitter handles. you can see them on screen. you can find the show twitter handle as well. >> is it time to buy greek bonds? we tell you how to play the greek crisis after this short break.

>> credit suisse shares slipping into the red. the outgoing ceo says it's made big strides. >> i think credit suisse is well positioned to be able to cope with those going forward. >> sky shares hit a 14 year high after net profit jumps 20%. >> s.a.p. getting a boost as the

lower euro lifts it's first quarter operating profit. a move into the cloud hits margins though. >> sources confirm the ecb is increasing hair cuts on collateral if athens fails to convince it's international lenders on reform. >> hi everybody. welcome back. we have a lot going on this morning. we have greece flex. center stage once again. we opened in positive territory. we are slightly higher on the open this morning. hanging on to gains in the xetra dax having been one of the underperformers in yesterday's session. >> also want to draw your attention to the currency market. right now the euro is lower as investors remain concerned about the prospect of a greek default and greek exit. of course we're also getting that survey number at 10:00 a.m.

that could also have an impact on the currency right now. we're looking at the euro trade at 106 against the u.s. dollar. >> greece has been scrambling to avoid bankruptcy be tapping into cash reserves. they will move any spare money to the central bank for up to 15 days after which it's returned with interest. local officials threaten to defy the government's order which still needs the approval of the parliament in order to come into full effect. it comes with this $1 billion payment due in may. now short-term greek debt currently trading close to record highs. the 3 year at 18.25%. 5 year at 19.5% and ten year moving toward 13.5%. >> greek banks are also under pressure in today's session. this as ecb sources tell cnbc the central bank could consider propoelzs

propoelz proposals if athen fails to convince it's lenders on reforms. let's get more on this story with annetta live in frankfurt for us. >> cnbc sources are confirming that the ecb staff produced a proposal for scenarios. one is to say with the treatment as it is right now. the other scenario is to go back to the treatment before november 2014 when they had greek collateral. one is that greece could default in an orderly fashion on their program which would then mean that one would have to apply 75% on the collateral right now and another scenario is a disorderly default if greece cannot have the institutions or that as it was known before.

if you're heading into a default ecb staff is saying one should apply 90% hair cut on greek collateral. that would mean they would run into a bankruptcy scenario. currently they're handing in their bank loans as a collateral for emergency liquidity assistance for the bank of greece without a big hair cut. they can get quite substantial cash for the ecb. they're increasing every two weeks by some million or so. not a tremendous amount but now it's over 70 billion euros. >> thank you very much. see you very soon. now in line of what annetta is talking about is a grexit becoming more and more likely.

he said it would be great. >> that would be an amazing event for europe. it means the beginning of the end for the european union. it's not a very happy picture and i'm sure theof that. >> you're arguing that we should be buying greek bonds at the moment. is that correct? >> yeah it's on a three month basis so it goes on the other side of the summer and basically what i'm seeing is that the passes involved in the discussions and european countries have a strong interest in coming to an agreement and it

would be quite large politically, economically in europe. they're making a serious attempt to try and break a solution here because it's been raised at both the u.s. and other parts of the world economy to get to an agreement and exit from the euro zone. >> the greek debt play hasn't been to the contrary. a lot of people lost money on that if they have been long greek bonds.

some may argue we don't know what type of solution can be found if indeed a solution is found and that it is hair cuts as well. is it too risky to get involved in the greek debt market not knowing who is going to be taking the pain and when. >> yeah i think it's true that it's a lot of risk involved in the play and you'll have to be very careful about when you entered. it will be interesting coming when there is a lot of that will be impacted. and it's exposed to greece and it's certain there will be any hair cuts on it. >> you know many skeptics say the unpredictable nature will continue as greece faces some crucial payments and that in itself will lead to prolonged

volatility. not just in the greek bond market but the equity market as well. do you really want to get exposure to that? >> well i think certainly it's not been too easy to play with. however we're also seeing they are doing the best to avoid adverse scenarios by calling in deposits and therefore being able to pay the imf. so they also realize that this could be quite serious if they default. so they're generally trying to press as hard as possible to try to fulfill some of their promises and europe on the other side of default also trying to push and they'll have to scale

back and come to an agreement. >> i spoke to a guest recently arguing that we could be in a situation where we're not in default with regards to greece but we're not solvent either and then i said something like we're going to be negotiating things on a month to month basis and he said no on a week by week basis. do you think we could be heading toward something like this? >> in the next month i think we could easily see this on the week by week basis and a lot of that in the system. i think ultimately the involved parties would try to get over this because it's not good for the euro system or greece either. i think both sides have some interest in getting over this period of week by week and day by day negotiations because it takes the focus away from the important issues like getting a

sustainable euro zone recovery and growth in greece again so at some stage we will see the parties try to break a bigger agreement that will help create stability again. >> thank you for joining us here on worldwide exchange. always good to get a contrarian view. >> you can read our piece on cnbc.com for that story. actions are louder than words but could the opposite be true when it comes to the fed? they're arguing the u.s. economy slowed in the last few months because the central bank already tightened through it's words. he adds this is the most evident in the rise of the u.s. dollar over the last six months as the quote drum beat of chatter from the fed made it clear rates will

rise this year. let's bring in ian to talk more. do you agree with the comments that the fed already started to tighten through the use of the currency market? the stronger dollar? how that impacted the us. economy. >> certainly the comments we're seeing coming from the fed have increased market expectations that the point of lift off for rate hikes in the u.s. that has had an effect on financial markets or on to the dollar as well and we can make the case that some of the dollar strength we have been seeing is in preparation for the u.s.

they're starting to talk about the impact of the stronger dollar on to earnings and so on. so these are starting to have an impact but i believe it comes down to the pace of the move at the end of the day and how that impacts a policy. so as long as we continue to see a very gradual increase in the dollar going forward i don't think that's going to worry policy makers too much and is not going to blow policy off course. i would expect a continuation of dollar recovery more gradual than we've seen over the course of the past six or nine months or so but it's set to remain throughout this year and next year as well. >> needs to see an acceleration in jobs growth and meaningful

rise in inflation. let's talk about how oil prices are in inflation. now up about 18% since the start of april. how much do you think we could see a meaningful rise in inflation over the next couple of months given that we did give a better than expected cpi number last week. >> yes, our economists are expecting globally and certainly in the developed markets inflation to start out. that's due to many factors including base effects and stabilization that we also believe is going to have an impact. we think we are at a stage where in several countries we're going to see inflation starting to bottom out and maybe starting to move gradually higher. so again, this does suggest that in several countries we could see -- >> it seems we just lost ian. we'll get him back up.

but in case we don't get you back again. thank you for being with us. >> still to come on the show the price of oil as we were just talking about right now under pressure in today's session but one investment bank is ragzising price targets for wti and brent. more details after this break. stick with us.

welcome back. you're watching worldwide exchange. >> loads of you have been writing in. you can find us on e-mail. worldwide on cnbc.com. you can also find us on twitter as well. either -- >> seema@cnbc. >> many of you are talking about the ftse companies and how so many of them don't report in poun pounds and also they're asking why does the queen have two birthdays. why is it different days in different countries. that i don't know but she has two official birthdays though. >> i have something to say. her actual one is on april 21st today but her official one is in june which is celebrating with the color parade which i'm not

going to pretend i know what that is. >> basically it's a parade but they give her two birthdays because there's more of a chance that it's good weather in the summertime. so if you have a royal that doesn't have a birthday in the summertime. >> we should have two birthdays. i want to have a birthday when it's nice and sunny outside. but that's not the case. >> still doesn't explain why in australia. >> but it's nice to have two birthdays. she's very lucky. loads of other comments coming with regards to it. >> everyone agreed. >> it's in regards to the different ways of looking at greece and the greece issue at the moment.

yes it's completely defaulting too. >> a happy medium. >> or role over stage. it's pushing the can down the road. >> that's what's happening. >> he writes in more volatility capital controls a new vote and then an agreement. so still no grexit. >> we'll see. the story continues. billionaire investor says stocks are too high if earnings have peaked in a letter to investors. green light capital says he's reducing the exposure. versus a nearly 2% average. he notes the impact of falling oil prices they're having on earnings but also says labor costs are rising faster than out put. >> now he also has some harsh words for general electric. in his letter to investors he calls the company's decision to

exit ge capital a victory for proponents of the financial reform law. he says that ge's $16 billion after tax charge will drain 5 to 7% from s&p 500 earnings adding to the debate about the integrity of reported results. >> speaking of earnings ibm, do you know the nickname? >> what? >> big blue. >> i thought it was going to be something funny. >> no. >> big blue posted it's 12th straight fall in quarterly revenue with sales down 12% for the quarter. our own josh lipton filed this report. >> ibm is undergoing a powerful transition pivoting to faster growing businesses but that transformation brings it's own set offel cha challenges. they have revenue of 19.6 billion. wall street wanted to see revenue of 19.64 billion. ibm faced a range of headwinds

in the quarter include a rising dollar and challenged hardware business. they did reaffirm the full year guidance. the hope is that the tech giant continues moving quickly to what it calls it's strategic imperitis. they're expected to hit 40 billion by 2018. the ceo is banking on those business lines to reignite optimism in big blue. the stock fell hard last year though so far this year it's edging higher. for cnbc it's josh lipton in san francisco. >> here's another story that we're watching. reports suggest the european union's antitrust regulator is planning to file charges against russia's gazprom.

reportedly the matter was put on the back burner when the crisis in ukraine escalated. >> russian firms are suffering after being cutoff from international capital markets. julia spoke exclusively with the russian finance minister and asked him how difficult it would be for companies to refinance their debt this year. >> well as i mentioned we see a decrease in capital outflows and the first quarter was worse for us. now we see improvements in financial markets as well. the demand for local currency has increased significantly. demand out numbers supply by 2 or 3 times and i know some corporations, some of the big russian corporations are currently raising funds on the international capital markets. we see that yields are going down and are almost at precrisis

levels. so the first step as we see it, our corporates will borrow funds from capital markets and we will monitor the situation and possibly we shall not refuse to take into account external borrowing in our plans. >> russia recently joined the aiib. it's a big topic of discussion here. given that the u.s. is effectively cutting you out of the dollar funding markets is this now a time for the likes of russia and china to be looking at some kind of alternative? >> we are always open to new markets. china is one of the largest investors in the world and we also see some of the projects with the world bank are suspended and these, their social projects that is why the participation in such a new strong organization has the aiib

is a very positive step for us. to attract additional investment into infrastructure with the resources of this asia investment bank which will give a boost to the economic development in the region and to our bilateral relationships with china. >> julia asked the russian finance minister about the pressures on the nation's economy. >> the most complex part of it was the end of 2014 and beginning of 2015. we experienced two kinds of external stocks. one from the oil price. the plunge in the price of oil by 1-half and second on restrictions of capital inflows and trade. as a result inflation went up and interest rates went up so we had to cut the expenditures and redistribute them this year. >> do you believe now if you look at the economy and you look

at the environment do you believe the scope now for rates to go low to support the economy? because the currency is under pressure today through speculation that the central bank will cut rates so this already concerns about the currency if you lower rates. >> well i wouldn't say that the ruble appreciated because of speculation. we see main trends. capital out flows decreased as people started to sell their dollars to buy rubles and we also forsee a slow down in capital outflows by 50% compared to the first quarter. we took some measures and we cut expenditures. we decided not to index public wages to inflation and that is why monetary policy was quite tough. we see this stabilization will give grounds for the central bank to review their current interest rates.

>> oil prices have stabilize. they revised up their 2015 forecast to $95 barrel and $52 barrel for wti. brent trading higher than that target at 63.15. the medium term outlook improved citing better cuts. the near term volatility could persist with saudi arabia and iraqi production on the rise but analysts see global demand picking up by the end of the year helping to offset the supply. we vn seen an 18% rise in oil prices since early april. >> if you don't want to invest in oil there are other options. marilyn monroe saying diamonds are a girls best friend and this big rock could be yours for the right price. this 100 carat emerald cut.

it's expected to fetch $25 million. it's a flawless stone. they're likening it to a pool of icy water. if you want a pool of icy water on your finger. the record for any diamond sell. >> you wouldn't want to mistake this one as a pebble. look at the size of that one. there's been pictured if you actually put it on your finger you'll see how actually -- how big it actually is. >> well i'd rather have roses on my table than diamonds on my neck. >> forget roses. give me diamonds. let's look at u.s. futures as we head into the second hour of wex. we're back in two.

welcome everyone. thank you for joining us. you're watching worldwide exchange. >> these are your headlines from around the world. >> got to take a look at markets. another day and another rally. u.s. futures point to a positive open after major indices have their best days in week with the s&p 50 back in record high territory. >> ibm makes more money from the cloud but revenues rose with a strong dollar. that's as the billionaire investor warns that stocks are too high suggesting that earnings have peaked.

>> a break up could be on yahoo! and microsoft well before the contract runs out. this as yahoo! gets set to report earnings. >> and sources confirm the ecb is considering a plan to increase hair cuts on greek bank co collateral if athens fails to convince international lenders on reforms. >> this is the economic sentiment survey coming out of jeredny and for april we're looking at sentiment at 53.3 points which is below the average pole estimate for just above 55. it's also below what we saw in the previous month where we had a reading of 54.8. current conditions that index is 70.2 versus 55.1 in the previous month and a lot higher

than the 56 that had been anticipated. current conditions a lot stronger than anticipated. economic sentiment has fallen for the first time since october of 2014. the german economy is in good shape and a stable labor market. rising wages. both strengthening confidence and boosting consumption too. down by .5% in the euro against the green back. >> we should point out the euro was slightly lower even in the beginning of today's trade ahead of that number. a good gauge of sentiment in germany. let's look at u.s. futures. a strong session on wall street in yesterday's trade. the nasdaq just below 5,000. right now we're looking at the tech heavy index seeing a gain of 23 points in premarket trade. apple did trade below it's 50 day moving average on friday. it's back above the key technical level seeing a gain of 2.5% in yaesd trade. posting the best day since

february 10th. let's put your attention to the european markets. we did get that number how are markets responding? the dax is seeing a gain of 1.14%. right now above 12,000. a key psychological level that traders look at. last week that was a tough week for german stocks in general losing about 5%. cac 40 above 5,000 seeing a gain of about .5%. greek default concerns. negotiations continuing between the party and it's international creditors. right now the athens afc down 3.1% but the bigger moves are being seen in the greek bond market. quick look at the ftse 100, better than expected earnings seeing a gain of around 21 points. this after a positive session yesterday lead by the mining companies. a quick look at asia. that's when a big story given china stimulus i should say. yesterday we looked at chinese

stocks moving lower today a little bit of a reboun.drebound. the shanghai composite up. a particularly weak session for indian stocks over the past couple of days, in fact we have been on this bull run given the economic promise that prime minister mody has been promising investors but some investors saying corporate earnings not looking that great. that's resulted in taking money out of the indiana state yand markets. that's a look at asia and we'll have to see how the positive session on wall street helps european stocks going forward today. >> yeah and also who we're taking our queues from at the moment. are we taking our queues from greece? or on what we anticipate the fed to do? when looking at the bond markets one thing is sure. we still see the lower yields across the board. we see the skyrocketing of greek yields there and showing you

what's taking place on the ten year almost 13.5% now. you note the inverted yield curve in existence and still a lot of speculation about how a potential deal could look for greece. when it comes to the ten year in the u.k. 1.5% pushing higher. you have germany, 0.07% now. bob parker from credit suisse saying we could be looking at negative yields in germany before too long and that's the direction we're heading. we had 0.05 here a couple of sessions ago in germany and in the u.s. a yield shy of 1.9% now. the fx markets we were showing you what was taking place with the euro dollar on the back of the data coming through. the pound against the dollar off by a quarter of a percent now and we'll be look closely at what's going to be taking place with the pound heading into the last stretch before the u.k. general election on the 7th of may. you have the u.s. dollar against

the russian rouble and the euro dollar right around 106. off by .6% now. commodities, we have been seeing the price of oil stabilizing as of late. but over here you have wti crude pulling up a bit. you have brent off by .4% now. spot gold we're seeing slight gains around 1195. and spot silver higher by .6% seema. >> let's get everyone a run down of what to watch this trading day. it's another huge day for earnings. dow components travellers united tech and verizon before the opening bell. also baker hughes fifth third, harley davidson lockheed under armour. and yahoo! and chipotle. another big day for earnings.

>> it's only like ten meters. but i know and we have heels and things alligator around the floor. >> it's a good workout. >> a great workout. you kind of have to walk around. listen dave einhorn is saying stocks are too high if earnings have peaked. in a letter to investors the head of the hedge fund green light capitolal says he's adding more shorts. it fell by 7% in the first quarter. einhorn notes that the impact of falling oil prices and the strong dollar that they're having on erngarnings but also says they're rising faster than output as they hire more people and hike pay. >> he has very harsh words for general electric. in his letter to investors he calls the company's decision to exit ge capital a victory for proponents of the dodd-frank

law. it will drain 5 to 7% adding to the debate about ge's reported results. it added a position at general motors a year after selling it's stake. but they believe gm put the ignition switch recall beline it and will begin it's buy back soon. shares up 1.6% in frankfurt. >> do you respond to action or words? >> both. it depends on the situation. i would say actions. you can say everything but if you don't deliver you lose credibility. >> but i still think we women, many of us are more susceptible to the vocals first but they do say actions are louder than words. could the opposite be true when it comes to the fed? he's arguing that u.s. economy slowed in the last couple of months because the central bank already tightened through the words he uses. this is most evident in the rise

of the dollar as the drum beat of chatter has made it clear that the rates will rise this year. >> welcome. >> good morning. >> good morning. >> do you think the fed already hiked through it's words. >> yes. i think when the rate hike comes it will be a surprise for people. people have gotten used to listening to economists and strategists saying it's going to come at a certain time or certain quarter and it's delayed and delayed. so i think maybe watch markets rather than listen to the strategists on this one because no one really knows. >> the markets though others would say the markets are getting ahead of themselves. the markets are driving the central banks now whether it be the fed or ecb and guiding them in regards to what they want. >> i think that's right. i think what david is looking at here is that essentially the cost of capital is going to

start to edge up and that's going to make equity valuations look rather more expensive than they do now. when you start the cost of capital that makes a significant difference to valuations and we inquiry equity markets looking that way in the u.s. people have to have a little bit of caution here. >> in the meantime a lot of volatility in the equity markets. one day we're up. the next day we're down. is this the new normal as we approach a normalization in rates? >> i don't know. whenever i see a rise in volatility, my first thought is markets are getting toward the top. at the bottom of markets you don't see the volatility. one of the things that i noticed recently is the dow jones transport index which you would think would be continuing to make new highs. hasn't been making new highs

lately and if anything it could be breaking to some porn lows behind 8,500. if that happens that would be a classic one. >> yeah because they're seen as a leading indicator. >> correct. >> correct. a similar sort of index people use. i have always liked following it. you know when there's many measures you look at but i think we're beginning to see our signal here. >> let's hit the pause button. stay with us. the justice department wants five banks, jp morgan citi group and barclays to reach a joint mega settlement of charges they manipulated in markets. they'll pay $1 billion each and it's set for mid may but it's unclear whether the justice department will be able to resolve all the probes at once. >> the largest u.s. outbreak of bird flu is found at a chicken

farm in iowa. the usda said the stock was quarentined. they are one of a dozen states that detected bird flu in a year. in wisconsin there's a state of emergency after three flocks were infected over the past week. hormel foods based in minnesota says it's likely it will sell less turkey this year but can't say whether prices will be effected. you're looking at some of the food groups there that could be feeling an impact. tyson foods, pilgrims pride, sanderson farm all trading lower in yesterday's session. not by much though. >> obviously a scary story and one that continues to garner a lot of attention. coming up on the show the ecb could be getting tougher on greeks. the central bank is preparing tough measures if athens fails on reforms. the greek drama continues. stick with us. don't change the channel.

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>> an early break up could be in the cards for yahoo! and

microsoft in their ten year web search partnership well before the contract runs out. now greece is scrambling after cash reserves. they're asking them to move any spare money to the central bank after which it is then returned with interest. they have threatened to defy the government's order which still needs the approval of the parliament to come into full effect. it comes ahead of a $1 billion repayment due to the imf in may. short-term greek debt close to record highs. we've been talking about this. close to 18.25% on the three year. five year moving up toward 20%. >> and also take a look at greek banks. also under pressure in today's session. this as ecb sources tell cnbc that the central bank could consider proposals to increase

hair cuts on greek bank collateral if athens fails to convince it's lenders on reforms. let's get more on the story with annetta in frankfurt. >> essentially that ecb, that proposal is suggesting that actually looking at the risks horizon of greece and also what happens in the country, there's four possible scenarios. one is disorderly default and that would mean that one should apply a 90% haircut on greek debt. another one is a 75% haircut which would be the case under an orderly scenario of default of greece meaning the country has to be in the program which is rather unlikely and the two other scenarios, it goes back to a treatment before november 24 20 14. looking at what happens in

greece the situation is deteriorating as we speak. the banks are relying on the emergency liquidity assistance. they can't get into the ecb in order to get liquidity of cash. what is under discussion inside the ecb has not yet been discussed. i have to stress that in the governing council is that there will be more hair cuts of four greek debt which they then hand into the bank of greece but of course currently according to my sources that does not find the majority in the governing council but most likely also the governing council will need to address that during their next sessions when they meet here in frankfurt. with that, back to you. >> annetta thank you very much. once again. charles is still with us here in the studio.

divisional director. what are your clients worried about at the moment? what are they saying and what are you advising? >> the first question is about general election. our thoughts are on that in the u.k. you talk about greece and our thoughts are we will move toward some sort of exit but it's going to be a lot of headlines in the way. i think that. >> you have pretty attractive yields when looking at greek debt. greek three year at what 18%? do these type of yields make you want to get bullish on this bond market? given the desperation of yield we're seeing right now. >> in greek bonds, no. in a word. there's too much risk there for our type of customers. but i think people have thought

about it. we don't see much value in sovereign bonds within europe at all. >> negative yielding bonds. >> not attractive at all and i think people who invest here -- it doesn't offer any great scale of return so i think we'd be patient and look at better assets here. >> briefly you said that most of your klines were asking about the u.k. market. what are you advising there? we have 16 days to go before the general election. >> we don't know how the election is going to go. it's becoming increasingly tighter and for most people it's become a dull general election with not coming up with anything new. the u.k. market is a very international market. it has a lot of dollars in euros and therefore overall it's not going to effect the markets so much. it is going to effect sterling i suspect. >> all right charles. thank you for joining us here on worldwide exchange. always good to get your views.

that's the divisional director. still to come on the show, u.k. finance minister george osborne takes the stage as the polls are too close to call. wilfred frost will bring us all the details later in the show.

>> shares in the red even after profits jump more than 20% in the first quarter this as the private bank took in 7 billion swiss franks during that period. let's get more from carolyn. >> the reason why the shares are down, first of all profit taking here. shares of the company have risen 16% since the nomination of the new co joining the firm at the end of june. the numbers were mixed. we did see the rebound in trading at the investment bank but the primary business that underperformed and also profitability and it's wealth management unit that disappointed some analysts and even if the investment bank was a big profit driver in the first quarter the incoming ceo is still under a lot of pressure to scale back further in the more risky parts. the more capital intensive parts

of that business. it could be hitting swiss banks by the enof the year. he felt about leaving after 8 years at the helm. >> 25 years here. the last 8 years as ceo has been a very significant period over the past 8 years. a lot has happened. you've seen it all and i think we have done a pretty good job of managing through that. i feel like when i look at our record of defiance and any other private bank over that period we view it as a safe haven over a period where it is uncertain in the market. we have out performed by about 25%. underperformed some of the u.s. but some of it has to do with some of the issues there but i

do think we have done a good job of reacting and done a good job of working together with regulators. we have done a good job through that. the challenges will continue through the industry. >> that was the outgoing ceo for credit suisse speaking to me. he has been a very loyal guest for cnbc. the work has been cut out for him. >> a bit of hawking in the background too. carolyn, thank you very much. now of course it's the birthday. >> happy birthday to you. her majesty. >> she is watching. absolutely. >> of course.

she is 89 years old today making her the world's oldest monarch. many of you writing in among other things asking why does she have two birthdays? she has the official one today and of course one this summer and it's because they do this parade and there's a better chance if the queen's birthday isn't in the summer there's a better chance the weather is good in the summertime. >> she is spending her birthday at the windsor castle. i have visited my parents castle in the country but i also want to point out this morning. >> why are they there? >> guess what because the king's troop royal force artillery in full dress uniform. they're going to ride their horses and go back into the palace at midday today to high park and have a 41 gun salute. you can still make it. >> so they're saluting her even

though she's not at the palace today. >> you get saluted all over the place. but you can go see it. >> i might. >> be a tourist. >> i'll send you pictures. >> what's your birthday message to the queen? get in touch and let us know on e-mail at worldwide on cnbc.com and find us on twitter at cnbwex. >> some people are saying god bless the queen and how do you look so great at 89? she must have a secret. she is so active and in the public eye. she is doing pretty good at 89. >> it's called four children, 8 grandchildren, 4 greatgrandchildren. >> s&p 500 up in premarket trade. more on earnings and what to expect from yahoo! coming up after this break.

it's 5:30 a.m. in new york. 10:30 a.m. in london. you're watching worldwide exchange. i'm seema mody. >> these are your head fliens around the world. another day and another potential rally. major indices have their best day in weeks with the s&p 500 near a record high. >> ibm beats and makes more money from the cloud. revenue suffering from the strong dollar. that's as the billionaire investor warns stocks are too high suggesting that earns have peaked. >> an early break up could be on

the cards for yahoo! and my vo soft in their ten year partnership well before the contact runs out. >> cnbc sources confirming that the ecb is considering a plan for greek bank colallateral if athens fails to convince on reforms. >> if you're just tuning in thank you for joining us on worldwide exchange. it was a strong day for wall street. stroks getting stroks -- stocks getting an early lift. tech a big leader in yesterday's trade. google and amazon later this week. apple shares also in focus. we did see a rebound in yesterday's trade gaining about 2.5%. that sends the nasdaq higher since february 10th. premarket trade suggesting it could be another positive day for u.s. stocks. so let's switch focus to

european indexes. of course the ftse 100 has been a bright spot trading at 7,500. we did get that better than expected report from sky so media earnings pushing the index higher but we should point out that london copper has also come off the lows of the day and that's sending some of the mining stocks and oil and gas stocks higher up about 18% since early april. still holding on to a gain of around .6% and in asia i want to draw your attention to the moves we're seeing in asia. we have been seeing some volatility over the past couple of days. yesterday chinese stocks were down. today they close up by 1.8%. nasdaq seeing a gain of 2.7%. also i want to point out what's happening in japan. the nikkei closing below 20,000

at 19,909 but still a gain of 1.4% thanks to better than expected earnings from toyota and panasonic. >> thank you. the billionaire investor david einhorn says stocks are too high if earnings have peaked. he is reducing net exposure by adding more shorts. green lights main funds fell by 7% in the first quarter versus 2% for the average u.s. stockbrokers fund. he notes the impact of stronger oil prices have been on earnings but companies hire more people and hike pay. >> einhorn has harsh words for general electric. he calls the company's decision to exit ge capital a victory for proponents of the dodd-frank financial reform law. he says the $16 billion after tax charge will drain 5 to 7% from s&p 500 earnings adding to

the debate about the integrity of ge's reported results. green light capital added a position in general motors a year after selling it's stake. the firm believes gm put the massive ignition switch recall beline it and will begin it's buy back soon. let's take a look at gm shares up 1.6% in frankfurt. let's discuss more about earnings and what to expect with the ceo here in london. welcome. >> thank you for having me. >> the big story is the stronger dollar and the impact on the multinationals that make so much money overseas but we're in the second week of earnings and many of these companies faired better than what was expected? >> tech is doing well. while the s&p 500 is high and einhorn is correct we're seeing huge dispersion on how companies are doing.

different industries and sectors. technology is doing well if you look at return for some stocks it is performing well this year. >> even though tech has the most exposure to foreign revenues. let's focus on social media because mobile revenue in focus. >> the u.k. finance minister is giving a key speech. wilfred is asking a few questions. >> are you concerned that you haven't gotten greater traction in the polls at this stage. >> look i make a -- this is a close election. this is absolutely a close election and people face a very clear voice. david cameron or they can have

the chaos of an ed milliband system. that's the two options on the ballot and i think as people focus on that choice they will realize they want to stick with the plan creating jobs and prosperity and security for families. they'll look at the positive agenda for things like child care and they will want to stay with the plan that's working rather than plans for the economic insecurity and the chaos for the alternative. that's the choice. that's over a couple of weeks to go and people will focus on it but the conservative party is upbeat and positive about risk campaign also confident that we can take seats as well. we're not just thinking we have to defend what we have got.

we are confident we can take the conservative message as well. >> so the finance minister just speaking there answering wilfred's question. we were just joined here in the studio just before this took place. let's talk about the technology sector and social media as well and what's happening there. >> yeah so this is again, going to be another quarter about mobile monitorization. we're seeing the consensus by the analysts that contribute to the platform surge into the reports here. that's a good sign that the reports will be strong. specifically we're seeing the mobile install ads are operating really well. so many companies are figuring out how to monetize mobile on the apps and are pushing a ton

of money into that. >> what do you do? >> collect estimates from publicly traded companies from a broad community of backgrounds. hedge fund analysts, industry experts, students. we run a lot of algorithyms. >> is it high considering the earn around the stronger dollar and impact of oil prices? >> you can see the s&p 500 is basically flat but there's a loft opportunities. it's a stock pickers market and you'll have some companies performing extremely well like twitter and facebook and some companies not performing well like ibm. this is where our platform shines. it's based on the fundamentals of the individual companies. >> there's been a debate brewing as to whether this is a stock picking market or you shall put your money into the s&p health care sector which continues to

lead this market higher. >> that's where i think it's a stock picker's market. the bio tech index has done incredibly well. huge growth in that index. erngs up over 15% for that sector this quarter versus something like financials or energy which are going to be down 10 or 15%. >> how does football compare to twitter? >> book is about a year and a half ahead of twitter in terms of the mobile monitorization. not in terms of scale. facebook has mass i havive scale and twitter is small but in terms of them turning on the monitorization it's ahead and twitter is doing a great job. the market has started to understand that twitter is going to monetize. even away from how much it's user growth is taking place. they're starting to pay more attention to that. >> twitter shares have been rebounding so far. last year wasn't such a great

year for the stock. >> think of the longevity. i can't remember some of the social sites we were all members of years ago. thank you. now coming up david einhorn weighing in. stay tuned to hear his take on the markets. ge's decision to shed it's finance business and what he's betting on now. you're watching worldwide exchange. find us on twitter or e-mail. we're happy to hear your comments.

>> they say action is louder than words. could the opposite be true when it comes to the fed. they argue that the central bank has already tightened through the use of its words. he adds that the most evident is seen in the rise of the dollar over the last six months as the drum beat of chatter from the fed made it clear that rates will rise this year. landon dowdy joins us now from hq. having a few word difficulties this morning. hi. >> that's okay. we all have them. good morning, when david einhorn talks investors listen. the markets have been paying

attention to einhorn ever since he bet against niemann brothers months before the bank collapsed in 2008. he says there's a good chance earnings will strength this year and the market is too high if earnings have peaked. he knows the impact on oil prices and the stronger dollar is having on earnings but also the effect of the productivity bust on margins. companies cut labor faster than output and higher connectivity lead to better earnings and stock prices. labor costs will likely rise. he also has harsh words for ge and his decision to shed most of its finance business. ge capital -- ge's $16 billion charge will drain another 5 to 7% from s&p 500 earnings adding to the debate about the integrity of the country's reported results.

einhorn says that ge chose to exit rather than face it's first fed-supervised stress test is one of the first real successes of the dodd-frank reform law. it fell 1.7% in the first quarter versus a nearly 2% gain in the average u.s. stock fund due to a 23% drop in chip maker micron technology. an engineering and construction company chicago bridge and iron. it sold it's stake and exited position. green light added a new stake in gm nearly a year after selling it's position. the firm believes gm has it behind it and should begin it's $5 billion stock buy back soon. we're all tongue tied today. >> i swear i want to do a two hour show where it's nothing but gibberish. >> you can count me in. >> yeah and also once you do it

once then you do it again. >> do it again. >> all good landon. good to see you. thank you very much. >> you too. >> all right. let's talk oil. hopefully this will go well. oil prices have finally stabilize. that's the call from gp morgan analysts that revised their 2015 brent forecast at $59 barrel. 52 for wti. the medium term out look improved substantially citing better than expected cuts to u.s. producers cap ex. interestingly enough i guess my big question here is if we are going to see oil prices continue to move to the upside what this all does for inflation. deflation has been the big concern here in europe and arguably even in the u.s. but we did see that cpi number come in better than expected last week. >> what does it do for inflation and growth as well?

>> lower oil prices is supposed to be good for everybody. they say they anticipate it could lift gdp by .5% in 2015. a lot of countries would be happy with that. >> analysts have been downgrading u.s. growth over the past couple of weeks given the stronger dollar and how that's impacting export growth. >> but coming into the year there's so much focus on the price of oil, it's the wildcard nobody is anticipating and it's not like we're super high in the price of oil but we're going to stabilize a bit. >> take a look at the wild range that oil prices have been trading at. at the lows in the early 40s or the low 40s here in 2015. so quite the wild ride. >> yeah. the largest outbreak of bird flu in the u.s. has been found in iowa. the flock have been

quarinteened. they have declared a state of emergency. >> hormel foods admitted it's jenny o turkey division will be impacted but they can't say whether prices will be effective. the stock is trading higher by around 1% in hormel foods. that's the share price right now. >> if you're just joining us these are the headlines today. futures pointing higher after the nasdaq has its best day in more than two months. david einhorn warns of stocks that are too high suggesting earnings could have peaked and an early break up could be in the cards for yahoo! and microsoft well before the contract runs out. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions.

the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪

we're looking at a mixed picture there. the ftse 10 flat. athens off by 3%. speculation of whether or not we're going to see some type of a debt deal debt restructuring deal happening with regards to greece when it comes to the u.s. futures. >> interestingly enough we did see a rebound in yesterday's trade despite, we did see the sell off last week but yesterday investors taking that as a reason to buy stocks. the dow up about 59 points in premarket trade. interestingly yesterday, tech and utilities. those were the two bright spots that led stocks.

>> they could end it well before the time runs out. companies can terminate the deal any time of october 1st. before that they could only mark walk away if they failed to reach benchmarks. what can we expect? let's bring in the portfolio manager at jacob asset management. great to have you here. it's been alibaba driving earnings over the past couple of years but soon to be spun off. how is yahoo! going to fair given the challenges it's been facing? >> i think it's going to be another block order for the company. that's been the case for probably several years at this point and obviously the main driver of their stock price has been their stake in alibaba. i don't see anything that's happened here in the first

quarter. this is just a change in that. we do like the direction that she has taken the company. she has increased the revenues in some of the faster growing revenues. they're going to show up in the actual profits and statement for the company. so we believe the quarter will be you know again -- i'd like to see any revenue growth would be great but i don't think we're going to see that. >> revenue from advertising -- revenue from display advertising has been sluggish for quarters now despite a string of acquisitions that yahoo! has been making to gain more market share in advertising. at what point do you think investors will say they juan more from marissa meyer. >> at the end of the year that's when all the pressure is going

to be on yahoo! to show there's value in their core asset. again we believe there is. we made an acquisition awhile ago now in tumblr approaching half a billion users. they are dealing with pretty significant head winds in the display advertising business as you mentioned. pricing has been a real problem for the company as advertisers are looking more to these advertisements on the web and that's going to continue to be a head wind. so i believe the honeymoon period is certainly approaching an end and people are going to want to see more results from correa other but for the next six months the stock is going to be driven primarily by how alibaba performs. we're comfortable with that. we believe alibaba is a promising company in it's own right. has more market share than

amazon does in china than in the u.s. so we're comfortable with that but certainly yahoo! needs to begin to show revenue growth. >> thank you for being with us. thanks a lot. portfolio manager at jacob asset management. loads of people writing in this morning. thank you for all of -- >> to celebrate the queen's birthday. happy birthday. >> most people writing in evaluations talking about whether or not it's time to invest in europe or the u.s. a lot of people saying we're going longer in european equities. it goes back to the conversation of whether or not it's going to be over edge this time around. >> also the wide card in all of this. >> we'll be back tomorrow. seema and i. double duo. that's it for today's show. >> always fun working with you lou. have a great day everyone. thanks for watching worldwide exchange. next up is squawk box.

good morning a strong start to the week for stocks. why is one well followed investor warning it's time to get out of u.s. equities? we'll have the word. also a developing story this morning. bird flu outbreak in the midwest. one infected farm is home to chickens and it will hurt turkey sales. >> the gop backing coke brothers are picking a favorite and it's wisconsin governor scott walker. the race is picking up steam. it's tuesday, april 21st, 2015. squawk box begins right now.

>> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with andrew ross sorkin and steve. joe will be back tomorrow. welcome steve. >> thank you. >> there is media buzzing as well. full house is coming back. netflix is buying 13 new episodes from the popular sitcom. fuller house will premiere next year and star the grown up characters of d.j. stephanie and kimmy. john stamos will guest star. netflix is also talking to other full house stars about appearances including bob sagget and mary kate and ashley olsen. let's bring you up to speed on the u.s. equity markets now. we saw the markets pick upmost of the