hi everybody, welcome. good morning. you're watching worldwide exchange. >> i'm seema mody and here are your headlines from around the world. >> u.s. authorities charge a u.k. traitor for contributing to the 2010 crash that saw the dow plunge by 1,000 points intraday. >> tesco reports the worst annual loss in history but shares rise as investors pin

their hoepspes on a turn around strategy. >> propping up the smi after quarterly sales beating forecast. >> there's no stopping the rally in asia. the nikkei set to close at 20,000 for the first time in 15 years. of course a top story today that we have. >> good morning, everybody. british authorities arrested a 36-year-old man for contributing to the 2010 wall street flash crash. he earned $40 million from market manipulation between 2010 and 2014. they're seeking his extra extradiction. he's expected to appear in court in the next hour. wilfred is joining us outside of court. >> let's just update you on what

we know. he is from near heathrow from the west of london. he was arrested yesterday. he was arrested based on charges filed by the department of justice in the u.s. calling an investigation from the cftc. commodities and futures trading commission. those were filed in february and they have been published because he was taken into custody. one count of wire fraud, ten counts of commodities fraud and one count of spoofing. it's that count of layering that's in the headlines. it relates to the 2010 flash crash you mentioned. it's putting on with an algorithm loads of sell orders before the market price so the volume of those orders helps push the price down but they never come into action. he's alleged to have made $1 million when it fell $1 trillion in terms of market value.

overall he's alleged to have made $40 million from these charges and u.s. authorities have frozen 7 million of his assets. now the 2010 dodd frank bill made spoofing or layering illegal. that came into effect in july 2010 although the flash crash was in may 2010. it's unclear what laws he has broken at what time. that might be why it's taken so long for charges to be filed. he's likely to come forward between 2010 and today here in 2015. what's going to happen behind me? well the magistrate's court just opened about three minutes ago and he zu tois due to appear at a hearing at 10:00 a.m. it's likely to be a hearing ahead of a possible extradition trial here in the u.k. which is going to need to be processed

for him to go out and face the charges brought by the department of justice. that hearing expected to take place in under one hour's time here. >> thank you. do keep us up to date on any developments. two retail stories catching the attention of investors. first tesco which reported a pretax loss is the worst annual loss in it's 96 year history. this after writing down the value of its stores as well as suffering an accounting scandal. shares are higher about 1.3%. investors betting on the turn around with dave lewis at the top. switching focus, richemont shares in the red after a profit warning. they expect full year net profit to drop by a third due to losses on financial instruments. >> taking a look at shares down

by about 1.3%. let's get a market update with lou at the wall. >> hi everybody. good morning again. we have a lot going on today. a lot to talk about. remember yesterday when we closed out the markets late afternoon we were look at our european equity markets closing in positive territory. for most of them the italian market and greek market lower on the close. we have opened slightly to the down side. taking a breather from what we said yesterday. we have a host of earnings out this afternoon and some big ones as well so do make sure to continue to watch programming for an update on that front. boeing coca-cola, facebook mcdonald's and speaking of reports we have a lot of reports here in europe as you're just hearing. tess tesco being a big one to dominate in trade this morning. european markets by and large

trading a little bit lower. ftse 100 down. xetra dax off by .3%. you have them shy by .5%. hanging on to the flat line for dear life. when looking at the fx rates and what we're seeing. we'll talk about where this trader is heading. we'll see wlnlt we're going to see a rate hike this year and whether potentially the discussion is overhyped. a lot of it seemingly already is priced in. that's what some analysts are saying. the dollar yen off by a couple of points. the pound against the u.s. dollar just shy of 150. commodity rates, what's been going on there? softness in wti crude and around

55 or $56 barrel. you have brent lower by .9%. you have these reports that saudi arabia now has ended it's military campaign in yemen. iran is welcoming that news too. however i have to say you go on twitter you're still seeing some people indicating that there's still silence is in yemen on the back of what we have seen of late. spot gold and spot silver also off by a tad. in asia the nikkei closing above the 20,000 mark for the first time in 15 years. it was driven by international demand for financials and other large caps so we're seeing a big level hit there on the nikkei. let's talk more about asia. he's in singapore and joins us as if by magic. how are you?

>> there i am. well indeed. thank you very much. multiyear highs not just for japanese equities but surprise surprise, 7 year high for the shanghai composite. so the melt up in the china markets continue. a little bit of statistics for you. the valuations are still quite reasonable all things considered despite the monster rally we have been seeing in mainland equities. they're nowhere near still the 2007 peeks. what's going on is we're still basking in the after glow of the supporting measures. the greater than expected cut. that frees up around 1.2 trillion of liquidity. a lot of that is finding it's way into the stock market and the macro picture will come into

effect tomorrow. we get manufacturing numbers for the month of april. these would be important statistics in my opinion because they will be relatively free from the distorted effects of the lunar new year chinese holidays which we saw in the first quarter. so elsewhere the hang sang not really matching. that rotation seems to be favoring the northbound leg of that program heading into shanghai as opposed to hang seng but i'll tell you this the momentum in the medium term seems to be favoring 8 shares. that's what we're hearing and a lot of people are talk about this level of 30,000 potentially before the year is done. back to you in london. >> thank you so much. coming up on worldwide exchange liquidize your assets. we bring you tips on how to invest in fine wine. the first is don't drink it. that's coming up.

is facebook the social media site for the poor? we ask why the rich kids are flocking to instagram and what it all means for r online marketing. plus how much would you pay to have lunch with apple ceo tim cook? right now it will set you back by around $80,000. stay tuned for that story.

hello, everyone. welcome back. let's talk about the stocks we're watching today. volvo shares have been trading higher hitting a four year high after better than expected four year results. the truck maker announced the appointment of a new ceo was taking place. currently at the top boss position position. another top stock is asml. this is after they agreed to deliver at least 15 extreme uv systems. the ever they're betting the new technology will be boosting it's chip making capabilities. the french luxury goods group is trading lore after sales at gucci missed expectations. several banks decided to lower the price target on the back of the disappointing first quarter

trading update from this group and roche slightly outperforming after better than expected first quarter sales and shares are seen here trading higher by 1.3%. let's cross out to carolyn that brings us more on this story. carolyn, good morning. >> good morning to you. they're really pleased by the first quarter report this morning. we got the sales number 11.8 billion swiss francs and that is a 5% sales growth. what's driving those sales in the first quarter? once again, roche can rely on its strong oncology franchise. particularly breast cancer drugs where sales rose 28% and one drug saw a massive growth of 82% for that quarter but there are still some concerns about roche and to what extent it has been

hit by currencies. a lot of the cost base here is in a strong swiss franc. export markets in the u.s. with the strong dollar. how is all of that feeding into the numbers? well the ceo was pretty relax relaxed. >> it's rather limited. so we grew sales by 5% in solid growth. in swiss franks it's 3%. that's only 2%. what it tells you is the sharp decline in the euro is actually compensated by the strong development of the u.s. dollar so overall the impact for us is rather limited. >> so you wouldn't have to take any measures to reduce our cost base here in switzerland as a result of that. >> we have to work on productivity.

but 80% outside of switzerland and such we're less exposed to currency fluctuates. >> one of the big trends that roche is betting on many other players in the market are very active in that field. their pipeline in this field which city estimates could be a $35 billion market is looking strong. at the same time the pipeline could be maturing some what. that's why city believes that roche could be embarking on more m and a in that field so stay tuned for that. >> we're looking at shares up about 1.3% but from one swiss firm to another, richemont issued a profit warning. they expect profit to drop by a third due to losses on financial instruments. you're looking at shares of -- how do you pronounce it? richemont down about 1.6%.

the firm does report it's full earnings on may 22nd. when you look at some of these luxury retail players the on going threat is weak sales from china. i'll be particularly interested to see how their watch division is doing. now new players including apple watch trying to fiercely compete in the luxury space. i was at that launch where it was evident the way they were show casing their product just steps away from cartier. >> they just sold net-a-porte. it's going to make one of the largest online groups. but i agree with you. interestingly i heard that apple has been poaching as you would

assume, some of the more advanced watch makers from within the luxury goods groups. the top end designers. a lot of them are joining apple. becoming the head of retail there. also executives from wsl joining apple over the last year. >> but also i think the exchange rates. the exchange rates are also hitting them. they're giving us a profit warning. they're saying full year sales but 1% if you're looking at it with the currency equations in there as well. >> big theme this season. >> another big earnings mover, tesco with a pretax loss of 6.3 billion pounds it's worst annual loss in it's history. this after writing down the value of its stores after suffering an impact of an accounting scandal and price war

taking place for quite sometime among u.k. supermarkets. shares trading up. you might wonder why. many think a lot is already priced into this stock. a lot of analysts that have come on to the show as of late they say look bad news already priced into tesco especially after the counting error. we saw a big management clean out. they're trying to get back on track and trying to figure out what is the strategy because you have a lot of lower end retailers doing very well in the u.k. especially in the financial crisis and then you have the high, high end and tesco in the middle. so they have gone through this big overhaul but they say still one pound out of 3 it is goes to tesco in terms of retail spending in the u.k. >> but how is that changing with the market players like aldi that have more competitive prices than what they're offering right now. >> but you also still have a

large part of the population in the u.k. that don't want to shop there. they think it's too low market would be the thinking and they might hang on to tesco. >> one of the worst performing stocks last year. this year investors betting on a turn around. stock is up but the question is when do we get to see that turn around in place and reflected in earnings. >> what makes you go back to a grocery store and shop there? >> brand and customer experience and knowing where to go. brand. i trust the brand and i know the products are high quality and the experience. fast seamless in and out in 20 minutes. >> i agree with the fast thing. i don't want to stand in line for 20 minutes to pay for milk or whatever but i do like it when they offer a little something to taste. it's a nice thing. >> a little shortbread. >> if i had to shop for sure just offering a little bit of something. >> entice their customers.

>> something else enticing. >> it's bonds. the german bund. now yielding .094%. some analysts calling for it to dip into negative territory in the next couple of months. speaking of janice capital tweeted 10 year bunds are the short of a lifetime. he later told cnbc that questions still remain about the timing of that trade. >> a nine or ten year bund has an upside if you buy it but it has a down side perhaps of 10 or 15 points and it's just a question of when. it's a trade that doesn't cost you anything in the short-term because it doesn't yield anything and it has an ultimate potential of 10 or 15% over a 1 or 2 year period. >> a particularly interesting

time when looking at the european bond market. let's discuss more with the professor of finance at duke university. thank you for joining us. >> my pleasure. >> do you think going long has become a crowded trade? perhaps it's time to go short? >> i would think so. it makes a lot of sense to me. it's hard to see a lot of upside and it's not so hard if tefrts of the ecb and fed work where they get the economies well stimulated and inflation going back up then they juan interest rates to go up and if that happens you'll have losses on bunds bought today and other bonds bought today. >> you think of some of the catalysts driving investors into the bond market. the hunt for yield and also monetary policy and what the ecb is doing and you don't want to fight the fed or is ecb but as investors continue to look r for

tuns specifically in the yield market i want to point our attention to what's happening in junk bonds. you buy these bonds because you're hoping that will be a good opportunity to get good yield but right now the average yield of junk bonds only 4.5%. you're not getting that much. what's driving the rally in those bonds? >> people are searching for yield. they say the yield on governments is solo. we can't invest in those and pay our -- if you're a pension fund pay our liabilities in 20 or 30 years so they're looking for higher yields and they're taking risk which seems like it's done at the wrong times in retrospect. they're not historically tight. it's more that the treasuries themselves are such a low

benchmark. >> you read my mind. where they're choosing to put money at the moment is that changing because of this trend toward negative yields? >> no doubt about it. there's many investors that think they can't stand to invest it at zero or negative yields so they're reaching for yield and whenever we find ourselves saying that that doesn't have a good history and when people do that they regret it later on but that is what people are doing to try to maintain the returns. >> what do you think happens once the fed starts hiking rates? do you think we'll see a big shift or is it priced in? we saw argument that pricing was already priced in because of the fed's wording. >> there's quite a bit priced in. certainly they communicated so frequently that no one should be surprised if they really did that. i look at option markets and the

pricing of options and it's disturbing to me that as you look out five and ten years on what's implied by option pricing and there's a lot of money bet on very low rates. on rates being zero to 1% five years from now. right now i can understand it but five years from now you would hope we would be moving away from that. the markets are bimodal now. and one part of what they bet is that things will normalize and then other people are betting or maybe they're fearing that rates will remain very low. so they're paying a lot for insurance on lower rates. >> that's interesting. thank you for being with us. professor of finance at duke university.

we appreciate it. thank you. >> how much would you pay to have lunch with ceo of apple tim cook? right now it's around $80,000. the ceo of the tech giant is running his annual lunch auction with a date last year topping $328,000. all proceeds go to robert f. kennedy center of justice and human rights. >> how much would you pay for lunch with tim cook. >> definitely not that much. i don't have that much money to spend but i would absolutely love to sit down with him and discuss innovation. >> yeah. how much would you pay for a lunch date with tim cook? is there somebody else you would pay to have lunch with. let us know. you can get in touch on e-mail and worldwide@cnbc.com or on twitter as well. >> that's right. we're here. tweet us. why do we do it? why do we spend every waking moment, thinking about people?

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welcome back. u.s. authorities charge a u.k. trader for contributing to the 2010 crash that saw the dow plunge. he is due to appear at a hearing in london in the next hour. >> tesco reports the worst annual loss in history but

shares prize as investors pin their hopes on a high end strategy. >> a profit warning sending shares lower this morning. propping up the smi after quarterly sales piqued forecast. >> the nikkei is set to close above 20,000 for the first time in 15 years. >> hi everybody. welcome back. we're just getting the bank of england the monetary policy committee voted to keep this unchanged. two policy makers decision was finally balanced as in marchand there's been a range of views also on the path for a bank rate according to the minutes. they say little material news on u.k. economy and bank of england staff.

they say first quarter household consumption of plus 0.8 quarter on quarter. the economy seems to be picking up and growth would offset any effect on sterling on the ecb quantitative easing. it's a good chance it will prove temporary. a note also on u.k. inflation. cpi likely to briefly turn slightly negative in the coming months which many might be anticipating they also talk about how a pick up in wage growth is needed for the bank of england to meet their 2% cpi target. sterling strength could be lowering cpi faster than expected and a big ir bounce back as well. basically 9-0 was the measure seen to vote to keep interest rates unchanged at .5% in april. good morning john.

>> good morning. >> so in regards to the bank of england, no surprise at this point? >> there hasn't been much changed. yields came off a bit during the month and sterling weakened a little bit and greece has become more of a worry over that period and also the u.s. data has been some what surprising in part. they're still in a holding pattern. >> we're seeing more evidence of wage growth here in britain but they're still voting 9-0 in term of raising rates in 2016. the u.s. that's seeing less wage growth than britain is looking at a potential rise in 2015. help us understand monetary policy. >> in terms of wages there has been a bit of a pick up and if you look in real terms it's been quite significant. the point the bank of england are making is they anticipate inflation rising again over the next couple of years which is

their forecasting horizon. if wages stay at the level they are now real wages will drop away again and be somewhere close to 0 in that environment where they remain on the domestic demand and consumer there's questions on whether they could continue to drive recovery. you're right. it's interesting that the rate hike debate in the u.k. is so different from the u.s. when the data held up better in the u.k. over the past few months. >> exactly. >> we have just over two weeks 15 days to go before the election what happens? >> you isolated one of the reasons why the u.k. picture is more dovish. the political backdrop is highly uncertain of course and we will know in a couple of weeks what the outcome of the election is. we're likely to have a fairly weak government. possibly a minority government of loose coalition so political

decisions will be hard to take and the bank of england has to set monetary policy in the context of fiscal policy and the politics so until we get some sort of resolution they're bound to stay on the back foot particularly when inflation expectations are so weak. if we get a weak government which finds it hard to get physical decisions taken it's going to see a relative cheapening because supply expectations will rise at the time. >> i remember when i first moved to london. it was ahead of the scottish referendum. are you expecting the same level of volumetyatility as we head into the election. >> nothing dramatic. as you look at the rates market there's a dovish outlook that suggests the uncertainty is priced in but the big question is whether a sort of political stalemate or situation where

politics is unable to operate in a very sort of effective way has a big impact on the u.k. recovery and at the moment as we're saying the data is holding up. sentiment indicators are positive and all the signs are that for all the political turmoil the recovery remains on track. if that continues after the election then the bank of england can probably start to get a little bit more upbeat and potentially more hawkish but we'll have to wait and see what happens. >> a general rally in bonds has been pretty awesome and continues to be so. do you see any indications that we're going to see a tapering off of buying bonds? >> that's still the big question. when you get away from the politics domestically and the data. why are yields still down at these levels? why are they barely yielding 1.5%? a lot of it is to do with the ecb, the bank of japan, the on going monetary accommodation and it's an on going question. you see bund yields still

setting almost every day record lows and heading toward zero seemingly. we do think that that's nearly run it's course and we'll see yield stocks edge higher over the coming months in the euro zone and that will probably see the anchor on pressures start to slip as well but what we don't know is how long they're going to keep the pressure downwards on these yields. >> do you think the supply could be an issue if people holding negative -- >> it seems happy to assume that the ecb's timing of purchases. they still have almost 18 months to go with very large scale purchases is enough to keep them in long positions. most investors still seem to be happy to hold bonds at the record low yields. the question is when they start to edge away from that because they think the ecb's impact has run it's course. it may only be a matter of time. >> do you agree with bill gross that it's time perhaps to short the german bund? >> i don't think we're quite as

imfattic but we would be short at these levels yes. >> thank you for being with us. fixed income strategist at ubs. as said, 15 days to go before the u.k. election. the latest poll giving david cameron's party a one point lead over labour. the liberal democrats are trailing on 7%. >> goldman sachs weighed in on the election warning that uncertainty over the outcome could be a source of significant market volatility in the short-term. goldman also sees potential for sterling volatility in april and may. the risk to equities would be restricted to specific segments rather than the whole ftse index and if the conservatives form a government a referendum would be a worry for equity investors which we already know of course. >> the 11 month political steal mate in lebanon continues.

they are scheduled to elect a successor having failed 21 times already to do so. the country's two main political camps failed to agree on a consensus president since may of last year with neither side having enough members to secure majority vote. i think they voted like 21 times. >> let's talk earnings. yahoo! says it hired advisors to look into selling it's yahoo! japan holdings adding it would provide more details on future earnings calls. they also reported results missing wall street expectations. our own josh lipton filed this report. >> yahoo! ceo marissa meyer says her country is in the middle of a transformation. as the latest earnings results prove it can be a bumpy ride. yahoo! reported first quarter eps of 15 cents on revenue of

$1.04 billion. wall street wanted to see 18 cents on $1.06 billion. so that was a disappointing miss on both the bottom and the top. drilling into the earnings release, yahoo! said search revenue was $432 million. a drop of 3%. analysts predicted revenue of 443 million. some financial analysts think the renewed search deal with microsoft could help search growth in the second half of the year. >> switching gears, display revenue was 381 million. a drop of 7%. that was in line with what analysts had forecast. trying to offset declines in desktop display by pushing harder into new areas such as mobile. yahoo! said q-1 mobile revenue was $234 million up from 145 million in the period. there has been a lot of progress in yahoo!'s culture, products

and user engagement but analysts are quick to note the stock can only start to work again if there's also a real pick up in monetization and revenue growth. i'm josh lipton in san francisco. >> it's interesting. you have marissa meyer having been brought in to revamp the company. she was talking about a hinting that they could be looking to unlock the value of their yahoo! japan stake. they have a 36% stake and could be looking at selling that and the market value there is something like $9 billion or so. soft bank spoken about as being one of the potential groups that might be interested and that would lead to a $9 billion gain and they'll be able to exit that division and put the money elsewhere to work. >> it's just so interesting because for years alibaba has been driving earnings but over

the past two years marissa myer has been trying to do whatever she can to revamp the advertising revenue which is struggling as of late given the competition in the space against google microsoft and others. she made a string of acquisitions. it's like over ten in the last year but still those have yet to be equated to earnings. so still a lot of questions remain as to the strategy going forward when it comes to strengthening advertising. >> definitely. more tech earnings today. social media so a lot to look out for in this particular space. we'll talk more about that a little bit later on. moving on. the brazilian oil giant is due to report 2014 results after the market closed today. that's almost six months after auditors failed to approve the results pending a corruption probe. they expect a write down of up to $30 billion tied to the

scandal. she's the head of infrastructure. what are you anticipating to hear today? >> well the main figure that everyone is expecting to see is the increment chart. very wide range between a billion and 30 billion. anywhere in that range. consensus seems to be about 5 to 15. basically what you know the stock price will react to whatever comes out. if we have to write down more of what we're expecting. >> there's still speculation of whether they would have to face potential default. >> the immediate risk was a technical default based on terms and conditions on their bond which if they can release their earnings by the end of this

that's technical default. they have very big assets. they're a very big company and have a big debt load but they seem to be willing and able to meet their commitments. >> how has it impacted sentiment? they're already trying to cope with the dramatic fall in oil prices? >> the main impact is a break of trust if you'd like. we've seen that up until sort of march. we haven't seen it spread around other countries in south america as such so those with the biggest problems are the

construction companies and engineering suppliers and supply chains in the oil industries. that's the ones that have really taken the hit. >> the other impact is politically. what that's done to the potential association that some say she did have with this scandal. >> absolutely. she already started her second term with a very weak mandate and this has already made that a lot worse. so it's an all time low. she needs to make a lot of very difficult economic reforms with the new finance minister. >> they account for 80% of the oil output. it's a really important company. is it having an impact on competitors now? are competitors able to benefit from their issues?

>> they avery careful to say their prized asset which is where the big oil prereserves are will not be up for sale. so they're still trying to fend that off. it could be a case where, you know bc or shell could take more equity in a lot of the fields. this might be an opportunity, as it were. but so far the government has been very clear to say we're not going to open the industry much more. >> thank you very much for coming in to talk to us. head of engineer and infrastructure at pmi research. >> still to come on the show. >> a lot. >> investing in fine wine. one expert says it could outperform equities as long as you don't drink it of course. that's coming up after this break. we're back in two guys.

>> at the three weeks of attacks means that they were not able to pose a threat to saudi arabia

and it's neighbors. iran welcomed the end of the air strikes as a step forward. >> oil prices marginally extended declines on wednesday. today on the back of the saudi arabia yemen news amid hopes for eased tensions in the middle east. brent crude still holding on to $60 barrel. wti crude at 5605 down 1% in today's trade. speaking of oil, bp ceo said the industry needs to prepare for oil prices for lowe longer. at an exclusive interview in houston he said crude could stay at current levels for, quote, several years. he also asked if bp had received any buyout approaches in light of the deal. >> absolutely not. i don't want to encourage anything like that at all. i think it's always at these times when prices change there's lots of speculations about changing.

there's been one big deal. i don't feel that right now unless oil were down lower for a lot longer. >> now we have been talking a lot about yield curves these days with negative yields seen or trend toward negative yields seen in a lot of european debt at the moment. a greek yield curve very different story there. inverted. you the greek three year yelding 3.25%. and 30 year at 10% at the moment. they're saying that a grexit is out of the question. he added that the central bank would continue to fund greek banks as long as they were solvent and had add kwet capital. >> meanwhile the greek finance minister says there's clear convergence. he said there will be a reform deal but not necessarily at this friday's euro group. elsewhere, the greek prime minister and german chancellor are set to meet informally in

brussels at the eu summit on the crisis. so the story continues. now let's talk fine wine. they're holding a fine wine auction in london. investors could pay up to 20,000 pounds for a case of petrus 1982. it can outperform stocks if you buy carefully. let's bring in tom. tom, paying such a large amount for one bottle of wine for me that's the sign of a potential bubble in the wine market. what would you say to that? >> it's a luxury product and if you look at top end you can pick up extremely good quality wine

for 50 or 60 pounds a bottle. when you look at that having fallen off 25 to 30% over the last three years now is a great time for buyers to be looking at undervalued stocks. so looking at the very high end of the market that you're going to narrow the amount of people out there looking for those wines but if you look at the broader spectrum there's still bargains to be had and with prices having fallen it's to get back out there. >> help us understand where there is strong demand right now. what's grabbing the attention in the high end market. >> if you look in the last couple of years burgundy has been strong. wines have performed very well. as i mentioned prices have fallen off the last three or four years. prices have come down 25 to 30%

but in the last 6 to 8 months we have seen a notable pick up in the indices. the liveex 100 has posted a 9% gain since august of 2014. what it show cases is a part of the market has actually been felt and demand is picking up looking at the 1982s and the 190s and 2000s. they have matured nicely. i just don't know which year i should be going for. which years are the pop years worth remembering? >> it's interesting point to bring up. i feel if you look at a wine list people serve wine far too young in my opinion. you're looking at a lot of the vintage 2009 2010 11 or 12.

they're far too young to be drunk. bordeaux 2011 and a 2001. at this moment it's drinking beautifully. if you wanted to go out and spend more money i was lucky enough a few weeks ago to go to a number of dinners and tasted a few wines from the 1990 vintage. so if you want to splash for cash 1990 or maybe 01s or '07 for bordeaux. >> to look at auction results in november 2014 we had the world record for an auction of fine wine. it was 114 bottles. maybe 118. i'm not specifically sure but

around 100 bottles of the top and it sold for over $1 million. there are some very expensive burgundy wines that can sell for 15 to 20,000 pounds. >> sorry. super fast how long can that keep? >> 25 to 50 years i'd say. >> okay. we have to go. thank you so much. >> have you ever wanted to return an item you bought online but just found the whole process of sending it back a huge hassle? well one company is trying to change that in a bid to disrupt the $300 billion shipping industry. josh lipton spoke to ship's ceo. >> ship builds itself as the easiest way to ship anything anywhere. here's how it works. let's say you need to return a bunch of items purchased on amazon. download the app. snap a photo of the items and request a pick up at your home or office and ship would take care of the rest for a flat fee

of $5 in addition to the cost of shipping. >> today we're aimed at just consumers but we're growing the market. so i think the existing opportunity is very large but thinking about expanding it is very exciting. >> ship works to find the cheapest way to mail the item whether that's through the post office ups or fed ex. it's available in san francisco, new york, miami, and will launch in los angeles next month. since the last funding round in the summer of 2014 the number of shipments has jumped 500% and customer growth remains steady surpassing 20% month over month. this growth is due in part to partnerships with banana republic and other retailers to beef up it's popular ship returns program. we don't know the margin of this business but we do know they need to run ware houses and pay a lot of workers to pick up and mail packages so it's hard to see how this could be a very profitable business. at least right now.

but the company's ceo insists that will change as ship scales. >> i don't necessarily say it's a business that when or if you would be profitable but for us it's all about growth and as much as we can continue to invest in growth we'll be better long-term as a business. >> at least one legendary investor is a true ship believer. john door announced he's joining the start ups board. for cnbc i'm josh lipton in san francisco. >> u.s. regulators make a move to extradite a u.k. trader. it's a top story today. more on that coming up after this break.

welcome to worldwide exchange. >> good morning, everybody. these are your headlines from around the world. >> u.s. authorities move to extradite a u.k. trader for allegedly contributing to the 2010 crash that saw the dow plunge by 1,000 points intraday. he is due to appear in a london court any minute now. >> no deal irish drug maker rejecting mylan's take over bid putting pressure on the u.s. giant to accept a $40 billion dollar from tevo.

>> a move that could raise $9 billion as the business continues to decline. >> the fall out spreads from the bird flu outbreak. mexico is halting imports of poultry and eggs from iowa. >> welcome, everyone. let's take a look at premarket trade. what can we expect on this wednesday morning? a mixed couple of sessions over the past couple of days giving a mixed set of earnings. mixed income data weighing on investors sentiment. also pointing out that while the broader market's direction is getting harder for many to ascertain, one thing is crystal clear. health care continues to out perform. we'll be speaking about the bio tech trade given the set of earnings out last night. right now dow is down about 87

points. some of that might have to do with what's taking place here in europe. the focus seems to be on the economic data plus the greek negotiations taking place with international creditors but it doesn't seem like we'll get that reform list on friday as some market participants were expecting. as you can see on the wall we're trading in negative territory. the xetra dax is right now trading down by around 100 points or .8%. we'll focus on the ftse 100. we're keeping an eye on the u.k. index trading right at 7,000. down about 58 points in today's trade but the bigger moves are being seen in the bond market. >> i know. they are. another day, another market right? what goes up must come down. we saw yesterday a bit of buying. today we're seeing a bit of selling in the morning. maybe no surprise given everything going on. the bond markets though a lot of focus there. still we have record low yields across the board. they're not going anywhere in

the near term future. we'll stay with low yields for the time being. the italian ten year yielding shy of 1.6%. a little bit lower this morning. in the u.k. we're now 15 days ahead of the general election as we were hearing from our guest earlier. a lot of focus now on the u.k. and on what's going to be happening with that. it all comes down to the election and even if the election is done and over with we'll see slightly messy aftermath. most people think that will be the issue with coalition formings and potential referendum as well depending on whether or not the conservatives come to power. germany yielding 0.09% now. we have seen the yield moving a little bit higher. hit a print of 0.05% just a couple of days back. you have the pound against the u.s. dollar higher. all members of the monetary policy committee voted to keep

rates on hold at this late meeting for the bank of england. the aussie dollar higher by 1%. dollar-yen 119.4 and the euro dollar still around 107. the markets in asia a pretty eventful trade taking place there. we've seen new levels having been hit. let's check in on markets in asia. sri rejoins us. hello sri. >> hello, you're quite right. action in the asian markets. multiyear highs for the japan and mainland china equities. fresh 15 year highs and we did see some considerable buying by the foreign investors in rotation back into the financials so it was a good day for the likes of smfg. both of them going up by more than 4%. so it's a relative value trade associated with those financial names when you contrast them with the defensives like the food companies and like the pharmaceuticals. another melt up in the shanghai

market. up by 2.5%. so what we are seeing here is still the aftermath and the feel good factor from that larger than expected lockup. a couple of basis points but consider this that move releases or injects 1.2 trillion into the system. most of that money is gravitating into the stock market. so the melt up continues and also consider this valuations are still well below the 2007 peaks. so the party continues for mainland china equities. the next big risk is the data side. the hsbc flash manufacturing pmi for the month of april. that would be the next big test for the market. >> thank you. back to our top story at this hour. british authorities arrested a 36-year-old man for contributing to the 2010 wall street flash crash. u.s. officials say he earned $40

million from market manipulation between 2010 and 2014 and are seeking his extradition. the accused man is due to appear in a london court in the next hour. wilfred frost joins us outside court for more on that story. wilfred. >> seema thank you very much. we're going to come -- i'll update you on today's hearing in just a couple of minutes. let's set the scene quickly first. he was arrested yesterday in the u.k. he's from just west of london near heathrow airport. he was arrested based on charges brought by the department of justice in the u.s. based on an investigation from the commodities and futures trading commission. in those charges is included one charge of wire fraud. ten counts of commodities fraud. ten counts of commodities manipulation and one count of spoofing. it's that count of spoofing or layering that relates particularly to the 2010 flash crash in the u.s.

it's using algoriths to load on lots of high volume sale trades just below the market price so they log the volume of sell trades but never get action. you can profit on how the market moves. on that particular day $1 trillion of market capitalization was knocked off the value of u.s. equities. thought to have gained around $1 million that day an overall relating to these charges around $40 million. the u.s. authorities are thought to have frozen around $7 million of his assets. of course these charges are bought by the u.s. they were bought in february. they have only been published because he has been arrested now. arrested yesterday and now we are due to have a hearing here behind me. this is just a prebail hearing. we would then expect to hear

when the extradition trial would be brought and that would let us know if it was enough to get him extradited over. if he pleads guilty he could be extradited immediately. due to start over the next 20 minutes or so. back to you for now. >> wilfred, thank you very much. we'll be checking here later on through the day. now eric is the ceo of converge x group. first of all being a new york based brokerage. what's your reaction to this latest news? >> this has been expected for some time. so the individual is news and i haven't had a chance to read the indictment or anything around that so i don't know all the details around it but in 2010 the cftc did identify that they were investigating the possibility of a single actor or single future's trader who had some responsibilities for the flash crash. >> you used to be nasdaq's

trading chief. if he did use spoofing tactics to manipulate the tactics doesn't that tell us there's a lot of room or progress to address regulation in this market? >> clearly there's concerns about the way the markets work and how they're established and most recently the sec established a market structure committee to look at some of these things. one of the interesting facts is this was driven from the future's market and not the equity markets. it had an impact on the equity market that was much larger than the impacts on the futures market but these were trades that came out of the futures side of the industry. however, since the flash crash there's been all kinds of changes put in the marketplace. new market wide circuit breakers. down protections. new investigatory techniques around spoofing and layering the things to limit the impacts of bad actors in the marketplace. >> you're also a member of the security and exchange

commissions equity market structure advisory committee. so links nicely with regulation right? >> yeah. >> we had just last week i want to say last monday but my memory fails me but we had some were saying a miniflash crash on the market. we had terminals. you saw quite a big reaction of all of our european equity markets. with everything that's been put in place you still can't prevent big moves from happening. >> that's true. they're identified only for the united states. it's not a global reform now. regulators have become much more cooperative about managing across boarders to help contagion from spreading widely. the changes made in the marketplace is not to prevent market move but really to manage it so that it is acceptable for investors to participate in it. what they want to avoid is the

market prices to change. stocks should go up and down. assets should be revalued. we want that to be orderly. not disorderly. >> eric of course -- >> i just want to clarify. it wasn't a crash. it wasn't a crash but it was a similar move seen in a move downwards of all markets at the same time. >> but stories like are this are not a vote of confidence for investors at home watching this unfold. 57% say markets are unfair. what would you say to that. >> that was our survey. >> right. >> and we are trying to address that in many ways. we help our clients manage how they are unfair and the people

sitting is they missed a huge upside move over the last couple of years. if these things scare people out of the marketplace. they actually hurt themselves financially so equities at least certainly in the united states have had a very nice strong performance over the last year. >> is high frequency trading a good thing or bad thing. >> it's hard to say in such broad sweeping terms whether it's good or bad. there's good actors and there are bad actors. that's probably nothing new in the marketplace. it's always been that way. so there are electronic market makers if i could call them that that provide really liquidity on a regular basis and then the bad actors that always use technology like the gentleman that was just indicted. so it's up to our regulators to continue to push on and capture and limit the effect the bad activities tors have while continuing to encourage the good

actors. >> we need liquidity. >> thank you for joining us here today. ceo of convergex. >> searching for results, yahoo! hires advisors to assess it's japanese business as they report disappointing earnings. stay tuned for a full break down of the numbers. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes.

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investors digesting earnings from yum brands as mcdonald's gets set to report before the bell and the irish drug maker perrigo rejecting a bid from mylan putting pressure on them to take teva's take over offer. >> let's get you a run down of what to watch this trading day. march existing home sales are out at 10:00 a.m. eastern expecting to have risen 3% last month following sluggish sales which was due to bad weather. the flood of earnings continue. we get results from boeing. coca-cola. bank of new york melon and d.r.

horton. let's take a look at today's other top stories. >> yum brand first quarter profits beating estimates. revenues missing as same store sales fell by 12% in china. the fast food giant, the parent of kfc, pizza hut, taco bell says it's confident it can produce produce strong earnings growth. rising by 4.3% in trade. >> you're going to get hungrier. chipotle rose 48% beating estimates. revenues were up 28% but that missed what analysts were expected as they rose 10% less than expected. the removal of pork from a third of its restaurants will likely hurt sales. that was due to its finding a supplier that did not meet animal welfare standards.

pork is a key ingredient in their popular carnitas dishes. shares fell about 5% in after hours trade. this year up about 7.5%. >> in other news mexico is halting imports of poultry and eggs from iowa due to a bird flu outbreak there. they're the largest buyer of chicken. they discovered a deadly strain of the disease on monday. shares of several u.s. meat producers falling in tuesday's trade. >> u.k. retail giant tesco reported a loss of 6.3 billion pounds. the worst annual loss in it's 96 year history. this after writing down the value of the stores after suffering an impact of an accounting scandal and price war against british supermarkets. shares down slightly in today's trade. over the past week it's down about 4%. it seemed to me when just reading the press release that dave lewis is trying to blame

the market landscape for tesco's disappointing results. not taking ownership of the fact that this is also a company specific story that is dealing with misdated profits as well as an accounting scandal which has tarnished it's brand. >> the accounting scandal and then the restructuring of management. they're still going through that restructuring at the moment. a lot of it being priced into the shares according to analysts out there and i have to say a lot of the calls that i have been hearing are a bit cautious on tesco as well. but they're giant here in the u.k. i think something like one pound in three is spent at tesco in regards to grocery store sales. it's a real household brand in the u.k. too. some of these german lower end chains are still newer and also not as present in a lot of areas like if you take a walk in london for example you see a lot of tescos.

brand recognition is important. >> exactly. but what happens to the brand going forward if the company isn't able to stage a turn around? that of course will be the focus of dave lewis over the coming months. >> i wanted pineapple from my grocery store and they didn't have any. >> tesco didn't have pineapple. >> i wasn't at tesco. yahoo!'s first quarter profit in revenue missed forecasts. the first time they have both fallen in several years. display has declined by 7% while search was down by 4%. the company also announcing it's hired advisors to explore it's stake in yahoo! japan. rising by just shy of -- its not even rising now in the german trade slightly lower. >> still to come on the show adding fuel to the fire. state owned energy company

petrobas is expected to report later today. will it leave investors looking for more?

hi everybody, welcome back. petrobras is set to release delayed earnings today. the focus will be a multibillion

one. just laying out the land. >> this is six months after auditors refused to sign off on their results. kick backs to various contractors and there have been a lot of optimism that once we get the rules the worst could be over. we've seen the stock up 30% year to date. you sense that people think the worse could be over. however we need to take perspective because the dimetiming couldn't be worse. they have gotten over $100 billion in u.s. debt and a lot of that is denominated dollars. so that's really not looking good for petrobras in a lot of instances but the focus is on how large that will be. estimates up to $30 million. on the lower end $1.5 million. morgan stanley forecasted.

i know you had a guest on previously that said consensus was 15 billion but the question is how do they cover it? that's everything from additional cuts to capex is on the table and also other assets that they own but as we talked about earlier they don't want to give away the assets at this time. the question will be how they cover it. whether it's recapitalizations or selling shares or converting the debt into shares. >> it sounds like we're avoiding default. we're not looking at default. >> for the moment but a lot of people say that's because of the backing of the government. of course the brazilian government is the controlling shareholder. that would be catastrophic for the entire country and administration of course. >> thank you very much. thank you. >> let's get to our viewer exchange. we have been asking you how much would you pay for a lunch date with tim cook or is there someone else you would pay that

much money to have lunch with? we have been get yourgting your tweets. he said he would may for lunch with jim cramer or myself. >> that's brilliant. how much would you pay? i was going to say you're for sale. >> wow. >> i'll take the money and give it to charity. >> sure. come on over richard. wanted to treat me to steak and fries. i'm good to go. >> who would you pay to have lunch with? mohammed ali, oprah, so many. how about yourself? >> i think -- i'll have to think about -- i'll let you know. i'll think about it. >> it's going to be good. >> james bond's next car may carry the made in america label. the financial times reports that aston martin is talking to several u.s. states about building it's first overseas factory. it's part of the plans to bring

an electric vehicle to market. they're looking at sites in the u.s. including the former jaguar plant in coventry. they're looking for land and tax breaks. still to come we speak to a foreman analyst amid a rush of news and results. >> we'll leave you a look at how futures are trading ahead of today's opening on wall street. the dow down 65. tech heavy nasdaq down about 19. we're back in two.

welcome to worldwide exchange. i'm seema modi. >> these are your headlines from around the world. top story, u.s. authorities look to extradite a u.k. trader for contributing to the 2010 crash that saw the dow plunge by 1,000 points intraday. he is due to appear in a london court any minute now. >> no deal. the irish drug maker putting pressure on the u.s. giant to accept a $40 billion offer from israel's teva. >> yahoo! is set to spin off it's japanese movement in a move that could raise $9 billion as the core internet business continues to decline. >> and the fall out spreads from the bird blue outbreak.

now mexico halts imports of poultry and eggs from iowa. >> we have now heard from 90 companies on the s&p 500 in terms of earnings and the worries about the dollar have been reconfirmed given the guidance from management citing the impact of fx head winds. not just in the past quarter but going forward as well. >> i'm still wondering about europe and i'm wondering what type of a year it's going to be for europe. we saw outperformers like the dax for example. we saw outperformers from the northern european companies but not the southern. i'm wondering if we'll see spain, italy. >> we're already seeing a move in the bond markets as well. greek concerns. default concerns sending yields higher in the greek bond market

but that's spreading. we have been seeing the italian ten year moving higher on concerns of a contagion. >> do you think it would have a big impact if greece were to go. >> you're more of an expert than i am. from what i can see they look back at 2010 and what it did to the bond market and fears and pushes investors out of that bond market. what will really happen it seems they just kicked the can down the road and find a minicompromise but it's not enough to get greece out of this financial turmoil. >> i am not sure. i am not sure. we don't have time actually right now. but briefly i'm not sure how much of an impact it would have on the european project yes definitely. but on the market impact i'm not sure there would be a huge impact. a lot of people saying the contagion would be limited because you don't have the same ties in the banks and financial sectors as in the past.

it's an on going story. get in touch and let us know what you think. find us on worldwide@cnbc.com. and we're also asking how much money would you pay to take tim cook out for lunch. this annual charity auction that's happening or who would you want to take out for lunch instead? how much would you pay for that? let us know. >> take a look at u.s. futures. we're expecting a lower open. dow down about 47 points. nasdaq down about 15 points although it did close above 5,000 in yesterday's trade. european equities gaining grown but it's hard not to realize how greece is becoming a bigger part of the trading discussion. it doesn't seem like we're going to get that reforms list on friday. that according to a euro group official. we're in the red. dax down about 92 points. french market with a loss of 27 points. a quick look at the ftse 100. we have been seeing a little bit of volatility in the equity market. in today's trade ftse 100 down

about 40 points. >> a number of upgrades have taken place for the company after it reported a 50% jump in first quarter earnings after price increases for best selling drugs. rising by more than 2% in after hours trade. >> they reported better than expected first quarter sales. carolyn asked the ceo about current valuations in the sector. >> they're very high and you're right, at the end of the day, we have to consider whether we can generate value for our shareholders and it's not only about science and strategic fit it is also about the price for such assets and, indeed many of the assets we look at they are not acquiring exactly for this reason. >> irish drug maker perrigo rejected mylan's $29 million take over bid saying it

undervalues the company. that could complicate their attempt to fen off teva's offer. they are urging the board to consider the proposal. taking a look at price action. you can see they're down about .7%. joining us to discuss the trade in bio tech is the head of sales and trade. thank you for joining us so early. we have already seen the massive run. a lot of that having to do with the mma we're seeing in this space. if you want to get in today do you buy the large caps that reported results last night or do you focus on the small to mid cap names that could be the next buyout target? >> i think that it's very difficult to focus in some of the smaller names if you're really unsure about this space. my lead is stick with the amgens, the names that really

had significant out performance and continue to do well. we saw the rules. they were solid across the board. it paints a good outlook for what is yet to come for some of the larger bio tech names. the space has been on fire over the past five years. you know we really you know think that the growing here is just superior. you can't find another sector around that has the growth outlook that bio tech has so here we're really sticking with this space and, you know being selective on the names that we like but we think there's a lot more room to go on the upside. >> of course it's been a big part of the bull run in bio tech. they made that key acquisition for $11 billion and at that time investors were saying they're paying way too much. now we look at how that's such a big part of their growth portfolio. what are people saying about the out

outperformance? can the bull run continue? >> they're due to report on the 30th and expectations are they're going to be fine. i think it's going to be a solid quarter. you know think about this. these guys vn evenhaven't even jumped in from an activity perspective. there's a lot more to come. the one thing to keep in mind we talk about growth right? we have said very clearly we don't think it's going to be a bio tech centric event. it's another sector that's going to force investors to lead the sector and go elsewhere to find better growth opportunities. we do a bio tech thermometer here and our analysts put a lot of work in this and they're doing polls and talking to investors in the space and the generalists that have pushed this space up over the past five years are the most comfortable right now with valuations and

outlook. so i think there's still more room to go to the upside. the ones that really supported this space are super comfortable in the space. so there's still a lot of very positive bullish outlook from the people that supported this for so many years. >> so having said that then what's your favorite trade at the moment? what's your favorite bio tech? >> i'd say -- i love the larger names. i love bluebird. that's a great name to take a look at and i like some of the oncology plays like incisive. i think that's a really interesting stock to take a look at here. i think it's trading around $103 a share and i think it's a name that i would continue to buy at these levels. >> david, thank you very much for your time today. thank you. head of sales trading at cohen and company.

>> now rich kids of instagram and online video executive says poor people prefer facebook. where is the money in social media? that's coming up after this break. [ 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. ♪ ♪

facebook reporting first quarter earnings after the bell.

the focus will be on marketing and advertising spend. eric is in new york. what should we be watching from earnings today? >> hi seema. you're right. facebook reports after the bell here in new york. so it's about 12 hours away. the three metrics to watch out for, first up user growth. this is not the facebook of old. you can't get double digit growth in user numbers. look for a 3% number there. revenues will be around $3.5 billion. that's what the street is expecting for this quarter and then finally look at the share of ad revenues that are happening on mobile. that's where all the growth is especially in developing markets. that number is around 70%. see if it can break above 70 rather than stay in the 60s and what a lot of people are now focused on as far as facebook's growth are their other properties. we know they own what's app and instagram. what are they doing with those? they can make money with the facebook property but they haven't been as clear so far.

look to see if there's any notes to the future of those two. >> eric you have also written about instagram and facebook having different audiences. explain that a little bit. >> yeah so it turns out there's some data that shows that when you look at the average household income of youth that use the different social media platforms facebook does the best with lower income kids and as you go higher up the income scale instagram is the winner. even snap chat and twitter do better but there's a clear distinction between facebook losing popularity as you get to the higher income households and instagram doing much better. >> but you would think that given rich kids are using instagram more than facebook that still works for facebook because they made the strategic acquisition of instagram a couple of years ago. are there any other companies taking advantage of this difference in term of preference? >> yeah so you're exactly right. this is part of the reason why

facebook bought instagram. it gives them a different audience they can't get. if you look at all the data whistle sports they're a good example of this. they're a youth focused digital online network of youtube channels with t los of different sports. they're trying to hit an audience for their lacrosse platform. they'll do that more on instagram because there are wealther youth on that platform but the basketball audience would be what they do on facebook. so a company like them moving to instagram to get a certain youth or kid, what does that mean for facebook as a company? they'll need to monetize it better to have the growth to augment what's happening on the facebook platform. >> eric thank you for being with us. >> thank you. >> the big differences. we were saying that instagram is more r for rich kids versus

facebook. >> apparently. >> aparentally. >> i'm on instagram. if you're young and rich, perhaps you like to communicate and express yourself on a platform that basically uses video and pictures because they want to show everyone what they're doing, the expensive clothes they have. >> how about like playing basketball or whatever. >> or doing charity work. >> you don't have to take pictures of that. it can be other stuff. isn't that a sad reflection. >> it is but when you're young perhaps you don't have that wisdom to not post these type of pictures of alcohol and bottles and models. >> i wonder if this is going to come back to hahn the people that do that because you also know that people looking to hire that they often will check somebody's instagram site or facebook site. you see pictures of people you're about to hire and this is their life do you want to hire

them? >> that's the big scare as more of the younger audience joins social media at the younger age they have the wisdom to make choices effectively those because photos will stay with you forever even if you take them down. still someone is tracking them. >> there's nothing wrong with having money and nothing wrong with being born into a family that has money. but if you're a child and teenager and watching this just know how lucky you are, huh? >> yes. >> yahoo! is still struggling to get out of a revenue rut three years into marissa mayer's tenure. landon has more of the first quarter results. >> yahoo! reporting first quarter results after the closing bell on tuesday. revenue from display and search ads show that's the first time they posted declines in several years. search ads fell 4%.

investors focus on the amount of money the company keeps after paying it's partners for helping to draw web traffic to its ads. those costs quadrupled from a year ago. marissa is trying to shift the focus from emerging areas grouping them into one category called maybens. this makes up a third of yahoo!'s total revenue and rose 85% 58% in the first quarter. they hired advisors to explore options for its stake in yahoo! japan. he unveiled plans to spin off the $40 billion stake in alibaba. the investment would be worth $9 billion before taxes. it rose 1% after hours and today in europe they're down fractionally. back over to you. >> landon, thanks a lot. >> landon.

>> should we do it again? >> landon. >> from landon to headlines. u.s. authorities are seeking extradition of a british trader for countryntributing to the flash crash. and perrigo rejects bid from mylan putting pressure on them to accept teva's take over offer.

>> trading slightly mixed. somewhere in the region of half a percentage point on the chart. >> we're now down about 40 points in premarket trade. s&p 500 imlying a lower open as

well by around 4 points. earnings will take center stage once again today. >> yeah, lunch is coming up. chipotle's first quarter profit rose 48% beating forecasts. revenues up 28%. that missed estimates as same store sales rose unexpected. they still see wage growth in the range of low single digit percent percentage wise this year. >> and yum brands first quarter profits beat profits as same-store sales fell 12% in china. the fast food giant is confidence this year. shares rose about 4% in after hours trade. right now trading up by around 4.3% in frankfurt. >> now mcdonald's reports first quarter results before the bell with analysts expecting earnings of just over $1 per share.

1.06 per share. they missed earnings amid head winds from chinese meat scandal and health conscious consumers. analysts are expecting the 5th straight quarterly fall for same store sales and slip in revenue. they're down by almost 5% over the last 12 months or so. joining us is steven anderson. senior analyst. good to see you steven. what are you expecting from mcdonald's? >> well i think it's going to be another tough quarter for mcdonald's. i think if they show any sign that they can have any eps upside to their $1.06 per share, shares can rally. this is a transition quarter for mcdonald's having new ceo fill in in the middle of next quarter. it will be the true test of what he will be able to carry out for mcdonald's. now i think we see that the

company is willing to take a few more risks. here in the state there's a test going on of a full daybreak fast in the san diego california market. i think for right now, you know with all the major markets i through the company will need to see a comprehensive strategic review similar to what was done a little over a decade ago on the plan to win strategy. >> steven since we're talking food how closely are you watching the bird flu outbreak in iowa and do you think any of the companies in your coverage will be impacted by this? >> certainly it's worth a look right now. what we have been seeing is it has had a limited impact so far but we are watching this closely. certainly the names that rely on table legs. there's certain names like mcdonald's, duncan we'll see that as well but also some of the full service names like cracker barrel, bob evans,

dennys ihop names with a strong breakfast legacy we'll be looking at those for impact. >> do you think consumers tastes are changing even when it comes to fast food? >> well that's certainly the case. certainly with mcdonald's near the core burgers, fries and shakes. that's something that in my view never goes out of style but i think we have seen in recent years a lot more competition for the american palate. that's what we have seen with the rise of names like chipotle and panera it's not necessarily healthier for you but at least they'll have alternatives that offer a choice between the usual burgers, fries and shakes with more healthy alternatives like salads. like naturally raised antibiotic free protein. >> it's a trend we'll continue to watch. thank you for joining us here on worldwide exchange. now back to our top story.

u.s. regular you lay tors made a move to extradite a british man for contributing to the 2010 flash crash. he is appearing in a london court this morning. let's get out to wilfred frost with more on that story. >> seema, thank you very much. we were expecting him about an hour ago. he hasn't actually appeared yet. he is now expected around 12:00 london time. so these relate to charges based from the u.s. the department of justice brought them in february earlier this year based on various financial charges ranging from 2009 to 2014. once he was brought into custody here in the u.k. including charges relating to that 2010 flash crash as you said. it's alleged he made some $40 million based on these counts of financial wrong doing. what's going to happen today? he's due to appear in the westminster magistrate court

presuming he pleads not guilty then the next step is to find an extradition date to see when he could have a hearing on that count to be moved back to the u.s. these things tend to take a lot of time. we're not expected to be extradited any time soon unless he decides to plead guilty. in which case things could move very quickly but at the moment we're expecting to hear from mr. sarao over the next hour here in court in london when we might hear a date set for his extradition trial. back to you. >> thank you so much. sharon says my kids stopped using facebook long ago. said it was too many ads and turned into an old folks thing. >> facebook is losing it's cool among teens. >> gary wants to take both of us out for lunch. thank you very much. we'll see you in an hour. >> steak and fries. >> fish. >> fish for you steak for me. >> thank you gary. >> thank you for joining us. >> we'll see you soon. bye.

good morning, google reportedly ready to launch a new wire lesser service as early as today. >> and a burito bust. we'll say this correctly because a lot of people don't. chipotle shares under pressure. the mexican chain posting it's slowest sales growth in five quarters in large part because of a shortage of pork. not the kind you're thinking about but we'll talk about that too. plus it's a long way from the pony express. the new postal service could include an all electric truck that's also a drone launcher.

it's thursday april 22nd 2015 and squawk box begins right now. ♪ >> live from new york where business never sleeps this is squawk box. >> good morning, everybody and welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. welcome back joe. >> on earth day no less. >> they haven't launched the drones. the postal service yet have they? >> no. >> drone launchers on a postal truck? seriously? i'm staying indoors. you can put an eye out with one of those things. >> you can do worse than that. >> earth day as andrew mentioned. about 1 billion people are expected to participate in events that celebrate the