these are your headlines from around the world. >> european markets bounce back as bond markets move lower. german gdp misses expectations but france puts in the best quarterly performance in two years. >> chinese stocks snap a winning streak after disappointing data. fears from further crack downs also weighing on sentiment. >> a bright spot on the london market as the world's largest

tourism group says profit targets are on track and take steps to simplify it's business. >> the shipping giant trades lower as the volatile crude price weighs on the business. this despite posting a first quarter profit beat. welcome to the show. i'm seema mody. italy's gdp number just growth beating expectations of 0.2%. this following the pick up in france's growth. better than expected gdp numbers out of italy up quarter over quarter. seems like aided by oil prices and weaker currency helping italy's growth. the euro very close to session highs. 112 against the u.s. dollar. >> let's recap the other data.

france surprised the market by posting it's best quarterly performance. gdp at 0.6% ahead of expectations. germany missed forecasts printing growth of just 0.3% trade. that was a big drop on growth in the first quarter according to the data office. now the external numbers for germany have always been a little weak. capital orders were a little bit disappointing but consumption has been quite strong. i wonder how sustainable these data points are given that in the second quarter we've seen the rebound in the oil price and we've seen the rebound in the euro as well. >> that's the big question. is this growth sustainable for a long period and is growth impacting it. it's of course been one of

the spots for this bond market sell off is whether or not this increases the result for mario draghi to keep going or not. germany just behind france. they're not knockouts and not blowouts. is that going to be enough to pull back? >> let's get to other data points. we have the report from the international energy agency.

we want to bring you highlights here. that's unchanged. that's quite interesting after yesterday we saw in the opec and in the eia report that demand was revised up and that's why in part we saw the big rally in oil price. also because of the weaker dollar. some other highlights. despite slowing u.s. output global oil supply growth at a steep 3.2 million barrels per day year on year in april and they note once again oil prices did rally in april and early may despite persistently high global supply and continued stock builds. we had a couple out over the last couple of months or weeks saying this rally is premature and not going to last. how are the markets looking? >> let's have a look at the sea of green behind me. quite strong markets that mask the volatility we've had so far this week and over the last few weeks to be sure but today bouncing back as you can see up the best part of 1%.

really throughout the day. yes we had some gdp data and cpi data all of which in line. probably beat expectations. this rally isn't fundamentally based on that. it's a little bit of a rebound following what we've had but also because yields are moving down today and not up for once. that's helped equity market in general. that's spread across pretty broadly. continental europe doing slightly better than the u.k. as you can see germany, france all up over 1%. the u.k. just shy of 1%. let's look a little bit more at some of the individual movers today. danish shipping and oil and gas company has warned of the impact of low oil prices across the business as it continues to strip out cost. revenue fell 1.2 million. the headline first quarter net profit was higher than expected after the group sold it's shares in deutsche bank.

mediaset returned to profit in the first quarter of 2015 after last month's euro loss. but the company disappointed by predicting flat ad sales in the home market for the second quarter. up quite significantly today. down over 5%. let's look at bonds. as i said at the top, we've seen a little bit of positivity in equity markets today because we're seeing a little bit less volatility and a little bit less of a spike today in the yield in the bond market. it's been the european bond market that sparked the global risk off sentiment we've seen in recent weeks. the ten year german yield elevated levels. the german ten year -- the u.s. ten year at 2.24%. yesterday it did touch 2.37%. that was a six month high since early november but settled by the end of yesterday's trade and we're looking at 2.24%.

bank of england inflation report today. important to watch at the moment the ten year yield just back before 2%. we'll be listening later in the show. the u.s. dollar has been weak in general over the last few weeks and months relative to where it was at the start of the year. it's up about .3% but in similar fashion a little bit more calmness today in markets. april output and retail sales missed expectations. let's go out to sri to see what that means for asian markets. >> when you do see the mack kro deterioration across the indicators the market starts to

front run the idea of more stimulus and that hasn't changed but what's affected sentiment is the prospect of more ipo activity. that could bleed some of the volume and liquidity away from the main boards. that's one of the reasons the shanghai composite is on the offense. you can't take away the fact that the april numbers, investment retail sales and industrial output all coming in below forecast so it does build the case for more stimulus. we were talking to them early on today and they were telling us expect to see another cut in june. another cut in a main lending rate in july to try to consolidate economic growth above 7%. elsewhere it's quite interesting. fairly resilient day for equities despite the fact yesterday in your markets we saw that renewed bout in the bond markets and spreading through and infecting inequities as

well. we seem to be impervious to that. up by .7%. so investors back in the market buying up some of those stocks and also the indian markets underperforming as of late. it coming back by about 1%. 8,203 is where we're standing. back to you now in london. >> thank you for that. let's get context on the gdp data we had out this morning. joining us is the chief european economist for morgan stanley. thank you for joining us. good numbers out of france and italy also beating expectations but germany that was a little bit of a disappointment. your reaction? >> yeah i think the first thing to note is really that for the euro area as a whole the

forecasts are on track. we expect a 0.4% print to be released at 10:00. that's what they have put in the staff projections. previously we thought there would be upside risk to that number and now the risks are probably balanced. so on the whole it comes out in the wash but when we look at the individual countries we need to dive deeply into the details. >> when looking at the italian gdp number coming in at the highest level since the second quarter in 2011 levels. is this aiding the economy or do you think it's the structural format play here? >> it's a combination of the factors. it's on the italian economy. we think that's the next turn around story that's happening right now. and that is driven by cyclical

factors. the weak currency but also more expansionary physical policy fallen oil prices and of course the impact of monetary policy. >> to what extent is the recent rise we've seen in european yields undo the work that quantitative easing was starting to achieve? >> i don't think that's the major factor. that was always to be expected. on the back of qe based on the experience in the u.s. and the u.k. that bond yields would at some point start to rise. for the ecb this is very much as expected. the violence of the move obviously is a concern. if anything what slightly could start to raise some concern is the fact that the euro is no longer weakening. >> what about oil prices too? >> you know oil prices to be

honest that's one reason you might be thinking the ecb could revise up it's near term inflation projections at the june meeting but, you know they have fallen much further than we expected. they're starting to normalize again. i wouldn't read too much into that but the currency was clearly one transmission channel that the ecb wanted to use in the qe program and to that extent the weakness we have seen in the u.s. data recently and push back from the federal reserve against the stronger u.s. dollar is something that could potentially cause a rethink at the ecb. >> yeah all the qe inspired losses in the euro dollar have now been undone. thank you for your time. chief european economist at morgan stanley. >> all right. coming up on worldwide exchange.

would news junkies like the instant article feature? we discuss. plus indian prime minister modi heads to china for the first official visit. we ask what's in store for the crucial trip nearly one year into modi's term. and potato deemployee ma sy. you're watching worldwide exchange. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business

we showed these kids some items from a nearby store, whoa!

but they didn't know they were all tobacco products. ooh this is cool. it smells like gum. yummy. this smells like strawberry. ooh, are these mints? with colorful packaging and fruit and candy flavors that kids love, who do you think tobacco companies are targeting? do we get to keep any?

welcome back. an amtrak train from washington to new york with 240 people on board derailed in philadelphia tuesday night. at least five people are dead and several more are injured. eyewitnesses say the train that runned through the heavily travelled northeast corridor was going through a turn when it started to shake before coming to a sudden stop. philadelphia's mayor calls the scene horrific. >> it is an absolute disastrous mess. never seen anything like this in my life and most personnel will say that as well. >> the cause of the accident is unknown but amtrak and the national transportation safety board are investigating. amtrak says there will be no service today between

philadelphia and new york and modified service throughout the rest of the northeast corridor. >> no quote, major break through with russia. but john kerry talked about the merit of working together after 8 hours of talk with vladimir putin. in an effort to repair relations with moscow the two nations could make progress but held firm on ukraine. >> i reiterated america's view that the minsk agreements are, absolutely, in our judgment by far the best path the principle path to peace and those agreements must be fully implemented. the sooner the better. >> jeff they managed 8 hours together but did they make any actual progress? >> that's the point, isn't it? substantial talks but no substantive break through. but i think the news really here

wilfred is the fact of the talks themselves because this is the first time kerry has been here in two years and they were able to hold this dialogue on ukraine, syria, iran in a fairly diplomatic way. the language was positive. there wasn't any of the old cold war rhetoric and it seemed generally civilized engagement. so perhaps on the face of it it does mark a step forward in relations between washington and moscow. the other slightly amusing aside to it i suppose is the gift giving that took place here as well. maybe we can draw something from that. mr. kerry was presented with a basket of tomatoes and potatoes. by mr. lavrov and a t-shirt about the victory day celebrations or commemorations

for his part john kerry gave a briefcase to lavrov. when it comes to what was disclosed publicly, as you say, no significant break throughs but i think possibly more interesting developments privately given that john kerry has come away from this meeting and as he goes into two days of nato discussions has talked about making progress on iran which would have been one of the topics that was discussed fully here and whether the russians are on side when it comes to the u.s. negotiations over denuclearization. >> greece managed to repay it's loan payment on time however they put a tap on an emergency account to secure the cash for the payment.

they took 650 million euros from the emergency account and made up the remaining from the own cash reserves. they're due to pay 1 billion euros in public sector salaries. >> the ecb raised it to 80 billion euros in total. julia joins us to talk all things greece. there getting creative in finding cash in certain municipalities. how long can they keep on doing that? >> this is a key question. when you're starting to look at them taking them down all countries have got this reserve fund rainy day fund if they need it. they're scraping the bottom of the barrel. various estimates suggest they can get to the end of may. perhaps to the early stages of june. they have to make a further 300 million euro payment on the 12th of june. another 330 million euros. the suggestion from the greeks yesterday was that by the end of

may they have another huge chunk of cash. 1.5 to 2 billion euros to pay in public sector salaries wages, pension payments and at some point they have to choose just who they pay. >> to what extent have they made any structural progress with this? although this payment has been made and we have another couple of weeks breathing space, is this just pushing money around? it's moving cash balances from one pot to another? they're not generating the funds to allow them to come out for the long-term. >> this is exactly what we're doing. we're expecting very little growth from greece this year. if we go back to november-december time we're anticipating 2.5% growth. they are not collecting the revenues. they haven't been since the election. tax revenues are also a problem. they were hoping for relief from the government. it's a double whammy and they have taken some money from the municipalities but some of the mayors said we're not going to

give you the cash until you turn around and say we have a real problem. even some of the mayors said at that point we'll hand over our salaries because we understand there's a problem. there's a lot of pressure on this government to you know give out the goods but not to back down on their red lines which they're still refusing to do but we have two weeks left. the liquidity situation here is critical and this points to that too. >> julia, thank you for now. and the popularity of greece's left wing party looks to be losing steam amid on going debt talks. this after the u.k. independence party secured one seat at last week's general election. so has the tide peaked? head to cnbc.com for the full story on that. >> facebook is launching a knew feature today called instant article. it's partnering with several news publishers to let them post

articles directly to facebook's mobile app. they can either sell or imbed ads in the articles and deep the revenue or let facebook sell ads. they'll also let them collect data about the people reading the articles and this is a fascinating move by facebook. entering the publishing space or allowing them to upload continent on book welcoming the one stop shop for con siermssumersconsumers. >> you know guys what i find really frustrate as good when you click on a news article on social media it takes a couple of seconds. i'm not talking about one or two seconds, sometimes ten seconds to load. that makes that experience very tiring. >> what are you trying to load? >> just a simple article. apparently under this deal the loading of articles will be ten times faster and that way for the consumer it will be a lot better. >> for me, reading news on twitter -- i'm not on facebook but it's a similar experience.

someone will tweet a comment and you'll click on the article and it will be firewalled. for us here it's the financial times, those one which is are firewalled rather than the telegraph or bbc. it's that disconnect where you can have free access to the person publizing the article and hidden behind sit a firewall. but overall the question we want to hear on this is how do you like to consume your news in this digital age? do you get it straight from the publisher's site or through your pages. get in touch with us and all the twitter handles coming up on the screen now but for me if you do have a firewall -- i'm more than happy to pay up for good content rather than the freebies. for me there's also a psychological view that the quality of the news once you paid for it is better. it makes you want to stick to

that even though you paid for it. >> as more publishers offer their content for free that model is quickly changing. this move to launch instant articles, big attack on twitter. they're trying so hard to also be the one platform that consumers use to consume news and among other articles. watch that battle heating up i should say between the two. >> but also against google. facebook has already overtaken google apps as the biggest referrer of news items. so essentially with this deal they're building on to their dominance in the referral of news pace space. a lot of it is through mobile. >> one further point on the subscription point. i get that it's moving and we're moving toward free consumption but i wish they would do two options on twitter. it drive mess mad when it's not a tweet from someone you choose to follow. i'd pay a subscription free for zero ads. they should offer both models.

some people should pay and then other people not willing to pay that. >> hopefully they're listening to you. >> they should create that option even if it's just for me. i'd be willing to pay up to $10 a month. >> wow. good business model. i like how you say adverts. advertisements. >> tell us how much you would pay to have zero ads on twitter, facebook and the like. >> still to come on the show just an hour to go before the bank of england governor mark carney delivers the quarterly inflation report. we get the latest u.k. unemployment figures straight after this break. we're back in two minutes.

fears of further crack downs from regulators also weighing on sentiment. >> qe earnings the bright spot on the london market as the world's largest tourism group says they're on track and takes

step to simplify the business. >> a shipping giant trades lower as the volatile crude price weighs on the business. this despite posting a first quarter profit beat. >> let's have a quick look at where your dollar is trading right now. we got a quick look out of germany. only 0.3% quarter over quarter. we recovered quite a bit since then. changing hands at 11223. just a tad higher on the day and we have u.k. data. >> we have indeed jobless data coming out and we have unemployment at 5.5% we have

seen sterling risen off the back of this. 15713. it's up about .31%. the rate was forecast at 2.2% and bonuses that has come in at 2.2%. let's bring in germany. of course the u.k. market versus been focused quite significantly on the election in recent weeks and months but the fact is going to drive markets in the short-term. is mr. carney going to be focused more on the employment data we just had in line with expectations or the inflation report we'll get shortly? >> that's a good question. i think the last 18 months he came in to be governor he was first of all focused on the unemployment data but that's been a lot better than expected

to be and he was hoping originally there will be a long delay before he needed to raise interest rates. as you look forward now then inflation becomes more important and in particular wage inflation and that's the driver toward wanting to raise rates at some point in the future but they're still some way from that. >> we've seen this pick up in yields in the u.k. bond market. that's more because of contagion from the rest of europe and the rest of the world. is that move justified given where we are? in the short-term is there an argument for traders to be buying these bonds again? >> i'm not a trader but if i was a trader i'd be tempted to buy some i think. but given the likely levels of gdp growth and inflation in the economy we should expect them to normalize toward 3.5 or 4% over some long period of time but i think you're right. in the very short-term it's been very sharp moves in bond yields and if i was a trader i might be

tempted. >> before we continue the discussion about the u.k. first quarter gdp grew at 4.4% on the year. i want to come back to earnings and that's a key data point for the boe in terms of the timing of the first rate hike. we're seeing average earnings up 2.2% but we have been grappling with this product activity puzzle in the u.k. can it rise unless we see movement on the front. >> they shouldn't rise sustainably. if they do its because companies are paying their staff more and feel they have to pay their staff more. that's going to hit corporate profit margins. so i think product activity growth has been negative the last few quarters. it's a real issue in the u.k. economy and you cannot sustainably grow wages without product activity growth in any economy. >> germany, you're going to stick around for a little bit.

i want to show you what european markets are doing. we are higher today bouncing back from the sharp losses in yesterday's trading session. that was a result of the spike we saw in bond yields. ftse 100 higher by 0.6% that is. xetra dax higher by 0.8. cac 40 gaining 1.3%. how are we looking in term of the individual stocks? >> let's focus in some of the individual movers today. that's up 1.83%. the u.k. travel company reported a rise in second quarter profits saying it's confident on the rest of the year. they're looking to deliver profit growth of 10 to 15% in 2015. sab miller is up 1.87%. it beat on full year profit of more than 6.3 million. sab warned it will be hit by currency volatility going forward. speaking to cnbc earlier the ceo said the trading environment remains challenging.

>> developed markets we see more fragility in the economy. europe australia, united states, it's under pressure so we're having to expand as is the industry quite rapidly into a variety and move more into premium. we have over 70% of our business in the developing world. so africa china, latin america, the volume is holding up as of the economy. we've seen growth rates well into the mid single digits in those regions. >> now, bouygues shares struggling off a net loss in the first quarter. also warning that 2015 will be a difficult year but as we said it's up 2.5%. vivendi is up 3.1% after reporting first quarter earnings that beat estimates. it's also offering to buyout the rest of the french unit of the broadcasting arm. let's get out to stefan with more on that story.

>> let's pick up with them unprofitable in the first quarter. the first quarter was impacted by sales in the construction sector because of the weak economic activity in france and it was also impacted by the price war in the french telecom sector. talking about this unique concern, it's a stand alone strategy after years of speculation. it was up 2.5%. it is the top gainer after the company posted a 24% rise driven by it's media, of its universal music business which benefitted from the weaker euro against the

dollar. also concerned with full year outlook. it plans to buy the group that it doesn't own yet. they explained it was a good strategy to use the cash accumulated after the disposal in france brazil. back to you. >> thank you very much. nice to see you. >> swedish medical technology group, elekta among the worst performer today after delivering a profit warning citing weakness in the u.s. the group also announced that it's ceo would step down. >> retail investors are expecting average returns of 12% over the next year. that's according to the latest global investment survey from

schroders. we also asked him for his take on what the survey said about the direction for markets. >> overall, they're going to increase by 8.5%. the size of a portfolio. so additional capital. that is consistent with our experience in the last decade where capital formations have been increasing by 8%. it's followed by facts. it's more essential sentiment of what they want or aspire to do and if you go through the report there is a very significant disconnect between their expectational return and attitude to risk. >> what the results could mean. head online to cnbc.com. >> let's have a great look at what bonds were doing today. they're a little bit more

subdued but significantly elevated from three or four weeks ago. the ten year note in the u.s. hit 2.37% yesterday before settling back at 2.22% today. ten year in germany back below 0.7. let's get back to germany who is director of u.k. manager research. we touched on it briefly. does that undo the work qe was starting to do in the rest of europe or not? >> to a small extent that's true. it was extraordinary. that really tells you really get an extreme level so i think we rebound from an extreme. the long-term qe the ecb is going to be there for another 18 months or so so i would expect that continued buying pressure in european bonds and probably they're going to stay at low

yields and maybe lower than they are today for the next year or so. >> but deflation or disinflation was expected to be around for a long time but the picture is slowly changing given the sharp reversal we're seeing in oil prices. is that contributing to the sell off in the bond market? >> i'm sure because one of the reasons the bond yields did so well last year the oil prices was falling and it's bouncing back. that feeds upwardly to a small extent but it's all still small numbers. >> what kind of move are you expecting in inflation now that oil prices are slowly coming back? especially because we're expecting the inflation report. >> it lags a bit. in the next few months it will be near zero in the uk. and it will gradually pick up and this time next year it will be 1.5%. >> do you think by next year it can reach the central bank target of 2% on inflation.

>> it could. >> do you buy on the dip? >> well it depends how long an investor you are. you're going to lose money in real terms. >> how do you know that? >> some people say don't fight the ecb. that trade might not be over just yet. >> if you have a ten year perspective, but if you are a one year perspective it may be a trading gain that you can make and pocket that. >> do you think there's enough liquidity to send the u.s. ten year yield up to 3% even? >> there's enough liquidity in the market. >> it's a real issue and there's much more volatility in bond markets than we're used to. that's a function of a lack of liquidity in the bond markets absolutely. >> the director of u.k. manager

research at morningstar. >> the recent rally has left many investors scratching their head. it's not the time to buy is the message from some analysts. head to cnbc.com for the full story. >> an amtrak train from washington new york with 240 people on board derailed in philadelphia tuesday night. at least five people are dead and several more injured. eyewitnesses say the train which runs through the heavily travelled northeast corridor was going into a turn when coming to a sudden stop. several cars flipped over. philadelphia's mayor called the scene horrific. >> it is an absolute disastrous mess. i've never seen anything like this in my life and most personnel will say that as well.

>> crews have been working ever since then to comb through the wreckage trying to find any potential victims that they can. as you mentioned, five people are confirmed dead. six others are in critical condition. there's 240 people on board including five crew members. 65 of the people have been treated in local hospitals. most of the injuries are bruises, broken bones, concussions, things of that nature. they had to stop a short time ago in philadelphia and the train was going down the tracks. it appeared that the train was going into a curve. everything started to shake and that's when luggage and people started flying. everything came to an abrupt stop according to the people that were on board the train and that's when they all tried to get out and people kicking out windows and trying to pry open

doors. helping anybody conscious to get out of the train. within moments more than 200 first responders were out here on the scene. police officers were taking people to the hospital in their police cars not even waiting for ambulances to come get them. a team from homeland security did come out to try to see if there was any connection to terrorism. at this point that's not believed to be the case that there's any terrorism ties to this. of course that will be part of a larger investigation. right now they're starting to look at the idea that perhaps train was going too fast but the national transportation safety board will be coming out here later today to lead this investigation. live in philadelphia, we'll send it back to you. >> chris thank you so much. a devastating scene and we're still trying to get all the details. and still to come on the show modi is off for his first official visit to china. we ask what's in store for the crucial trip one year into modi's term. stick around.

>> india sensex stabilize after they deferred legislation on land and tax reform designed to boost investment. the delay strikes a blow to

prime minister modi that completes his first year in office this month. meanwhile, modi is set to make his first official visit to china on thursday where he's expected to discuss greater economic ties with top business leaders. what can we expect? let's bring in senior global economist. a pleasure to have you on worldwide exchange. for india there's no other bilateral relationship more complex or challenging than the one it has with china. what are you expecting between the two leaders tomorrow when they meet? >> clearly there will be further discussion about how ties can be strengthened. what more can be done to ensure that the trade in investment is there. and modi's been trying to go abroad and ensure international investors that india is open for business and they need to invest more and i think he'll be trying

to seek a little bit more of that even from china. >> we talk about modi approaching his one year anniversary as prime minister. he was promising so much in terms of reform and growth and while we've seen some progress on that front many investors i speak to say it's still not enough. what are your thoughts there? >> we have to be cog anyaware of the fact that markets were expecting too much. the new government doesn't have a majority in the upper house of parliament. it's a democracy. you have to get the laws passed through both houses. while there have been powerful reforms which are more silent the big bank reforms a lot of international reforms they're expecting have yet to come through. if you look at the ease of doing business easing the rules for fdi investment. if you look at what's happening

in terms of getting these, they have all been eased. you have improvements in fiscal balances by not increasing the minimal support prices and even the government support for the new monetary policy frame work has been very crucial. it's positive. of course the big, big reforms are still to come and you're right that they're maybe getting a little bit impatient. i think when you talk to indian clients they're still looking for these reforms to come through for growth to pick up and really the name of the game now is patience and trying to take the entire progress together to get the reforms passed. >> we've seen the dollar come off the rampant surge it was on before that but at the same time we have a risk off sentiment globally. can you weigh those two factors for us? should we be in markets like

india at the moment or are they going to face a tough period in face of risk off sentiment? >> we've done a lot of work on this. this is clearly something that you know is quite key for how the global economy itself performs. we've had the taper tantrum of may 2013 which was particularly bad for five or six emerging market economies. this time around the impact should be much more muted. if you look at countries such as india they are not as wonderful as they were before. you have an improved position and more monetary policy more credible and of course you have certain other improvements coming through which we also discussed in terms of the government and it's initiatives. there are a few companies which will face a little bit more of volatility. if you do see either the u.s. dollar strengthening too much or if the u.s. yields go up too

sharply or if you start seeing a very sharp increase in the fed rate. and indonesia and turkey in particular stand out as countries that are wonderable and they'll come through the exchange rate and that will take the main brunt off any impact of these volatilities but a country like korea on the other hand would actually benefit and would actually strengthen. >> i want to take you back to india very briefly. hsbc downgrading india stocks from underweight to overweight today because of fading hopes of a rate cut in india. inflation has come down quite a bit. do you think the central bank will cut in june? >> we are expecting further monetary easing to come through from the indian central bank. that's in line with the wider asian economy. if you look at china over the weekend, you had further, you know indications of other

central banks wanting it. so we're looking for india, indonesia, and vietnam to cut monetary policy rates further. >> thank you for joining us. much appreciated. the senior global economist at standarded charter. now the u.s. senate democrats dealt president obama a block for the fast track trade bill. this would allow lawmakers to either approve or object but got amend. president obama met with a group of senate democrats late tuesday to discuss how to move things forward. >> john kerry is hopeful of successful negotiations on the iran nuclear deal. speaking in turkey he also said cooperation between the six nation gulf council and the u.s. is crucial to fighting terrorism. this as four of the six monarchs declined their invitations to attend president obama's summit.

let's get more insight on this with hadley joining us on set. the problem is the leaders obama will be speaking to is a whole new set of younger leaders. >> it's a bit of a general shift. >> that's true. they'll be attending the gcc summit. quite frankly what we know already is the united states isn't going to be presenting anything new to the leaders meeting in camp david and that's one of the reasons they declined the invitation. if they're saying it's not a snub but you can't look at it in any other way and quite frankly all the flutter in washington yesterday not just from the statement department but white house as well demonstrated how they said this isn't a big problem for us but it clearly is. we already know the interior minister, now the crowned prince, he is very familiar in u.s. circles. he's been fighting terror for ten years. he was the guy right after 9-11

going after ristterrorists in saudi arabia. he's also in charge of the rehabilitation program for terrorists. they do have the own home grown terror problem and it's something they continue to deal with. >> this snub comes as john kerry just managed with vladimir putin. is there a sense that world leaders prefer talking to mr. kerry than mr. obama? >> se see morethey see more of him. he's here and there. he's never in washington but what is he getting done? we understand from jeff's reporting in moscow he has been key to talk about terror with vladimir putin. it's an easy topic for both of them because it's something that they both face and it's a problem for both countries but in terms of the way forward in ukraine, nobody wants to touch

that. so what are the foreign policy wins for mr. kerry? that's open to debate. >> thank you for joining us as ever. let's get back to markets and have a look at bond yields. we have just come off the spike in recent weeks. yesterday we were looking at 10.37. and above 0.7 in germany. both have come off of the peaks. 2.326. >> we're also seeing a normalization. the dax also seeing steep losses yesterday to the tune of 1.7% today. bouncing back up by 0.7%. all eyes on the data points we got out today. >> is europe growing at the

expense for the u.s.? that's something we'll discuss. after stocks did move lower yesterday, just modestly to the down side the dow is indicating a higher open by around 75 points. yields coming off the highs as well. the tech heavy nasdaq is at 5,000. right now up 26 points in premarket trade. >> remember to get in touch with us on our viewer exchange. tell us how you like to consume your news in the digital age? subscription models or advertising instead and get it for free? join the conversation. lot of discussion on twitter coming through and we'll bring you all of that after this short break. e-mail us worldwide@cnbc.com or on twitter.

here are your headlines from around the world. at least five people dead and several injured after an amtrak train derails near philadelphia. we're live on the scene for the latest. >> european markets bounce back. this is german economic growth. euro zone gdp data due any second. >> decision day for dupont as the battle comes to a head at the company's annual meeting.

>> facebook launches a new app partnering with big named publishers to bring a new stream of adds and articles to its mobile service. >> we have euro zone gdp numbers slightly below expectations. we were looking for 0.5% on the quarter and 1.1% on the year. so the number is not shockingly bad but it is just a tad below forecasts. let's have a look at euro dollar. it's close to 11224 but still higher by 0.1% on the day. not a huge reaction on the euro dollar rate but some of the regions have quite a lot of divergence. france outperforming germany and the u.k. with it's fastest growth in two years also this is

still fastest growth since second quarter of 2014. we have the lower euro dollar exchange rate in the first quarter and we had the effect of lower rates. >>ed aed by oil prices. wearer currencies. helping manufacturing. when you look at the individual gdp numbers for country, germany not good. france beating expectations. italy maybe labor market reform being put to use but also the reason we're seeing gdp come in better than expected overall is qe. we're seeing the benefits of it. >> let's bring in one of the other individual countries. greece's data also included in the latest flashes plus 0.3% year on year that's compared to

1.3%. 0.4% compared to minus 0.3% in q-4. it's improved slightly on a quarterly perspective but worsened on an annual perspective. giving us the time frame of where they stand in terms of their economy and what they're up to at the moment. >> it's interesting to see how markets are responding to the variety of data over the next couple of days because this gdp number is slightly below expectations at 24% but still better than what we're seeing in the u.s. or u.k. but is good news bad news for the markets because it tells us that mario draghi's quantitative easing plan will end sooner than expected. >> to me it stems from the bubble bursting relating to the latest bout of quantitative easing we've seen the u.s. dollar come back during a period of risk off sentiment now that

that type of trade is unwound the u.s. dollar is included in it and that's highlighting that it's off the back of too much loose policy and assets relating to that. >> but you're talking about this being good for the market i'm not sure that holds in the euro zone. yes there's a risk that data is better than expected and the ecb will pull back earlier than expected but is that reflected in the markets. >> why were european markets rallying. still the case now? it was a bet on quantitative easing providing the boost to the economy. >> it's all qe related because we've seen bonds and stocks correlated in the same way in recent weeks. that shouldn't be the case.

if equities go up you'll see bonds fall off. >> it's a question of quantitative easing as well as structural reforms or is it monetary easing. >> we'll have to move on an amtrak train from washington to new york with more than 240 people on board derailed in philadelphia tuesday night. five people are dead and several more injured. eyewitnesses say the train that runs through the heavily travelled northeast corridor was going through the turn when it started to shake before coming to a sudden stop. several cars flipped over. philadelphia's mayor called the scene horrific. >> it is an absolute disasterous mess. never seen anything like this in my life. most personnel will say that as well. >> we're joined live from philadelphia with the latest on the amtrak train derailment in about ten minutes time. >> let's take a look at futures. stocks ending lower in

yesterday's trade. similar to what we saw on monday. today perhaps markets will come back. this is just the implied open. we'll see what happens at 9:30 a.m. when wall street opens for trade. bonds really stealing the spotlight. that has been triggering a lot of market turmoil given the volatility in the bond market. yields inching to a six month high when looking at the ten year treasury note but it's come off the high of the day. 2.24%. that's the ten year treasury yield. this was seen as a leading indicator for the u.s. bond market. also higher at 0.65% and the ten year u.k.gild at 1.79%. in response to what we're seeing in the bond market stocks are higher today. we saw a big sell off in yesterday's trade. we'll get you a look at european equity is.

ftse 100 below 7,000. the xetra dax below 12,000 but up around 100 points. a triple digit gain here. a little bit of a rebound in european equities. >> i want to show you what the euro dollar trade is doing. we've seen quite a big drop. it is now dropping on the day. data was worse than expected. we didn't see the reaction just yet but that trade and weakness in the euro has just come through in the last minute or so. meantime we're still seeing a little bit of dollar weakness at least against the yen and we saw sterling out performing after we saw the labor data changing hands. in the commodity space let's have a look at oil prices after yesterday's big rise. today we're still seeing brent and crude prices moving higher

but at a lower pace. wti is higher by 1.1%. brent crude up by three quarters of 1%. the api data showing larger than expected job in crude inventories and revisions to demand coming from the eia as well. in asia we saw a lot of data points specifically from china. retail sales, fixed asset investment, industrial output. that was disappointing. we're seeing the shanghai comp down by .5%. japan posting the biggest current account surplus in seven years. >> thank you. let's get out to george. head of u.s. rate strategy. george, good morning to you thank you for joining us. i'd like to start by touching on the gdp data we just had out. underwhelming a little bit but the interesting thing now is you look relative to the rest of the world including the u.k. and

u.s. meant to be the bright spot and it's ahead of the those countries. is that the sell off we've seen in recent weeks? fundamental data is just not strong enough? >> it's the opposite. this is a technical driven market. you hope to see a further rise in rates and the fact that we're starting to see momentum is encouraging but it doesn't suggest they're going to stop the qe programs any time soon. it's really all about completing programs making sure you get the economies on track and not just getting too excited over a number here or there. >> what is the bond market telling us then? is this telling us that perhaps there's some more negativity around the fundamental story around european's growth. >> no, the market was

overstretched. people thought they had to amass large european bonds to sell them to the ecb. but you can't just buy the low rates and expect them to actually continue to perform or that you'll be able to sell them at the price you actually got in and created the situation which we call trapped longs and people were trapped for the last two weeks and really screaming to get out it was a shock. i bought at the wrong level. >> people were screaming to get out even. now that positioning balanced some what do you think there's still volatility in store or now do you think that with positioning evening out a little bit that volatility should fade? >> look it's unacceptable for the bond market to have these swings. we're supposedly the safe asset with the liquid market and we've

had pretty big intraday moves. this is typical that eventually things stabilize. we're in the process of doing so. however markets were stretched and you still have a buyer and you have a backdrop where for a lot of number of reasons have kind of caused any sort of big move in markets to kind of push back interest rates or widen out spreads that combination caused the big gap in rates. but the next step has to move back to the fundamentals which is the pure data. that momentum is still not clear to us that we have actually turned the corner and the data is going to be strong. until then bonds and stocks are going to trade closely to each

other. we're ultimately always going to be seeing some sort of volatility, you know? >> we will. for us we always believed that the tightening that the fed has to do or down the road will be less specifically because they have overregulated the system to a point where it's very safe and solid but any fast move shows it's fragile. that's a tightening of the system which is why we're not seeing the credit growth. the market actually does the adjustment for the central banks. >> we want to thank you for your time and insight. >> an amtrak train from washington to new york with more than 240 people on board derailed in philadelphia tuesday night. at least five people are dead and several more injured. let's get out to chris who is

live in philadelphia with more on this story. chris over to you. >> yeah it's been about 8 hours since this train derailment occurred here in northeast philadelphia and investigators and first responders have been busy all night combing through the seven train cars that went off the tracks here in the port richmonday part of philadelphia. from what we understand people on board the train said it was a normal ride. they had earlier stops at philadelphia and were on their way to new york city when all of a sudden it felt like they were going into a curve and everything started shaking and then things were tumbling luggage, laptop computers, people, all flying about and then there was a very abrupt stop and people that were still conscious and able to move were trying to help some of the other victims get out. they said people were bloody with broken bones. 65 people were treated at local hospitals. five are dead and six in

critical condition and right now as we speak investigators are still going through the wreckage trying to see if there's any more victims in this. as you might imagine the federal government is sending a response team to lead the investigation. they're expected to be here later on today. right now speed is looked at as a factor and the curve in the track. they'll be inspecting the train equipment to see if there were any problems with that as well but investigators don't believe terrorism was involved. but that will certainly be looked into in the days and weeks ahead. back to you. >> chris with the latest from philadelphia. thank you so much. >> still to come on the show facebook is making friends in the news business. will the social network's instant articles hit orbit. we'll discuss.

comes to a head at the company he's annual meeting and facebook launches a mobile news app partnering with big named publishers publishers. >> all right let's get you a run down of what to watch this trading day. april sales are out expected to continue their recovery from the

slow winter season. also out at 8:30 we get april import price which is are expected to have risen last month due to higher oil prices. at 10:00 a.m. march business inventories are out. macy's and ralph lauren after the bell. after the close cisco, jcpenney and shake shack. have you ever had a shake shack burger? >> i haven't. that's the kind of ads i get on twitter. food. it will entice me when i get to the shake shack. >> well you don't have them here from what i understand. whenever you go to new york you have to check them out. let's talk about another story catching the intention of investors. it's partnering with several news articles. the new york times and buzz feed let them post articles directly to facebook's mobile app. publishers can sell and imbed them in the articles.

facebook will also let them collect data about the people reading the articles. facebook has a new high profile employee today. kevin martin is hired as vp for mobile and global access policy. he has previously been advising the company on issues such as mobile connectivity and wireless spectrums. so facebook in the news. what do you think? a good or a bad move? >> for me it's still down to the fact new york times as i understand it currently charges people to read their news. does this mean they're going to release a few articles people can read for free or are you going to have to click on the link to facebook and then have a direct link? i'm not sure which way it's going but that's the crucial difference for me still. the best quality you have to pay for and i don't think those companies are monetizing things sufficiently when they offer it for free yet and advertising will generate for revenue before

the best content is available for free. >> carolyn seemamless technology is important. that's very important. the problem sits a bit of a risky experiment for the publishers because with this they might rely even more on traffic coming from facebook and some publishers say facebook already accounts for 70% of their traffic. now that percentage may go up to 80 or 90% maybe. and we are seeing a first quarter net profit of 6.88 billion. >> from russia with love.

this we're live in moscow with more on that story. ♪ call 1-800-royal caribbean or your travel agent today.

>> no major break through with russia but he talked about working together after 8 hours of talks with vladimir putin.

kerry said the two nations could make progress but held firm on the stance on ukraine. let's get more to jeff live from moscow. jeff. >> yeah, this was a fascinating event not least because of the gifts that were presented right at the beginning. i've had to dig around myself here and i can only find an orange and a banana in our fruit bowl here at the bureau but maybe we can engage in some diplomacy by handing these over because mr. lavrov gave john kerry a basket of tomatoes and basket of potatoes as they met for the first time in absence of two years here in russia. it's not so much what was achieved because there weren't any significant break throughs that either side wanted to talk about publicly. whether it was the issue of

ukraine, syria or iran but the fact that the meeting took place perhaps shows there is just a little thawing in this chill that sat over this relationship and if it takes the handing over of fruits and vegetables that's the diplomacy we can all appreciation rather than the rhetoric that characterized the relationship over the last 24 months. it was notable there did appear to be warmth and the talks went on for 8 hours so obviously there were areas of cooperation that were discussed at the bottom line though is where does this go next? what will be the outcome from this? already john kerry as he has moved on to this two-day nato gathering talked about how do we get progress in iran. he said this is a critical moment on ukraine. behind the fruit and vegetable

diplomacy does that indicate he had a signal from the russians that there's further steps that could be taken to make sure this agreement works. back to you. >> jeff thank you very much. we too do not have any potatoes in the office but i managed to find an apple. of course there's a lot of very important issues they have been juggling in these discussions. >> and we'll leave you with a look at how futures are trading. dow right now indicating that we could potentially see a rebound on wall street up by 74 points in premarket trade. we back in two minutes.

welcome everyone. you're watching worldwide exchange. >> here are your headlines from around the world. >> five people left dead and several injured after an amtrak train derailed near philadelphia. we're live with the latest. >> markets breathe a sigh of relief. a higher open and european markets bounce back after european gdp data. >> decision day for dupont. >> book launches a new app

partnering with big name publishers to bring a new stream of ads and articles to the mobile service. sterling daughter at 15722. this is after we got the labor data better than expected on the earnings front. we got the bank of england inflation report cutting it's growth outlook and backing the market rates the first rate hike will come in 2016. inflation should be back at 2% within less than two years. the government has a clear mandate to return to surplus. inflation should be around 0%. unlikely to endure because we're expecting oil prices to bounce back. energy prices are the most

important reason for the below market inflation. so there we go. the boe has for a long time said these factors are really just temporary so that's why inflation should be bouncing back. the forecast for inflation for 2015 is 0.6% but once again it's cutting it's gdp forecast to 2.5%. in other commentary it says that the strong sterling is weighing on u.k. gdp growth and we've seen that specifically over the last couple of trading days on the back of the election outcome. once again the first interest hike should be in 2016 but that's not news to the markets. the bank of england governor mark carney is delivering speech on the quarterly inflation report. we don't have the audio just yet. we should be getting it in just a moment. sterling dipping versus the u.s. dollar after that boe inflation report but let's just listen in. >> i have had to write today the second in what's likely to be a sequence of open letters to the

chancellor because inflation fell to 0 in march. two below target and the lowest since official cpi data began. as was the case in february the single most important reason for below target inflation has been the sharp fall in energy prices in march oil was about 40% cheaper and the price of petro was down by.10. sterlings continued to depress import prices. taken together these factors explain about three quarters of the short fall of inflation from target with the remainder reflecting subdued cost particularly wages. >> you can continue to watch that speech on our u.k. feed. meantime we're seeing sterling down a little bit against the dollar on the back of the boe inflation report. the boe cutting it's growth

forecast. >> now an amtrak train from washington to new york with 240 people on board derailed on tuesday night. five people are dead and several more injured. eyewitnesses say the train that runs through the heavily travelled northeast corridor was going into a turn when it started to shake before coming to a sudden stop. several cars flipped over. philadelphia's mayor calls the scene horrific. >> it is an absolute disasterous mess never seen anything like this in my life. most personnel will say that as well. >> coming up, chris will join us live from philadelphia with the latest on the amtrak train derailment in about 20 minutes time. >> back to markets, wilfred, let's take a look at u.s. futures and how we're fairing because bond volatility is casting a shadow over stocks. the reversal of global interest rates is a concern for investors. yields coming off the high of

the day but still above 2%. we're looking at the dow up about 70 points in premarket trade suggesting a rebound in today's trade. the tech heavy nasdaq also up by 25 points in premarket but of course the bond market moves mark a stark reversal from what we saw last year. a lot of traders are trying to get to the bottom of what is driving the sharp reversal in bond yields but the volatility not just in the european bond market but u.s. ten year as well. take a look at the german bund. it was 0.4% at one point. analysts were betting it would dip into negative territory given that the quantitative easing program is expected to push yields lower but that's not what we're seeing these days. the ten year german bund at 0.67%. it has been taking queues from the european bond market at 2.32%. that's one of the reasons when you look at stocks it has been the dividend paying sectors like

utilities that have been underperforming. watch those sectors as we continue to see yields rise. let's take a look at european markets. mixed gdp data. italy and france. really the bright spots. we saw a slow down in germany. the dax slowing off concerns. that data point holding on to a gain of 68 points but we did see a big sell off in european equities. the ftse 100 holding ground up about 40 points despite the boe cutting it's growth forecast. >> we're just getting flashes on a bond auction out of germany. they sold 2.5 billion euros of new 10 year bunds. so those yields relative to yesterday a little bit lower but this is the first time its risen since january 2014.

the ratio was 1.3. a little lower than the last auction in april and average yield 0.65% where as in april the last auction it was 0.13%. >> demand is waning a little bit. you have the ratio 1.3% as you pointed out. you have yields in the auction actually moving higher for the first time since january 2014. that tells you that qe -- the qe bit is no longer really working to the same extent that it has been over the last couple of months. >> they wrote an op ed saying global deals are low. this is just a short-term blitz. do you agree with him? >> it depends on your time frame. it's an extraordinary move in the last couple of weeks but a bond bubble driven by european qe was sort of known. we've had a correction. the correction was sharper than we have been expecting. it's interesting the way u.k. and u.s. yields moved also. we're looking at rate rises there and yields were in and

around 1.5 to 2% depending on which one you're looking at. they haven't been bid up to the same extent. i think if you're the guest earlier on the show if you're a investor would you want to be exposed to bonds at all at the moment? probably not. if you're a short-term trader would you want to use the sell off on u.s. and u.k. bonds? maybe. >> they're not supposed to see this volatility so that in itself is an interesting story. the erratic behavior when looking at the german bund. >> aol shares close sharply higher but verizon flat lined after they agreed to a $4.4 billion all cash buyout of aol. verizon will get control of the huffington post and tech crunch brands as part of the deal. according to sources, aol had been in talks to spin off part of the negotiations. meanwhile, a filing revealed that aol agreed to a $150

million break up fee if the transaction breaks down. >> if you look forward five years you'll be in a space with massive global scale networks and there's no better partner to go forward with than verizon. it's about setting up for the next five to ten years and, you know, we have spoken for years about this. our vision has remained consistent. the world is changing and for aol, for our shareholders today is a great day but more importantly for aol's talent and next five years for verizon we'll do a lot of meaningful things. >> let's get out to new york where angelo is ready to join us us. thank you for joining us. this is very interesting. what's driving it for aol? >> yeah well thanks for having me. so if we kind of look at what is

the two key drivers or trends going on in the world today it's mobile and it's a video and that's really what is driving this. we're seeing more and more consumers today migrating toward watching more video and content via the internet and the key to this transaction is really verizon acquiring aol's advertising platform. not -- also to mention they're acquiring other great assets as well. we heard about the brand content they're acquiring. like huffington post among others as well as the subscriber base that aol has which, you know, there are opportunities there for verizon as well to kind of shift toward you know their broadband offerings. so there's a lot imbedded within this transaction but really the key here is the advertising platform and leverage their video offerings in the future. >> i get that. i get that verizon wants to

strengthen its footing in advertising but in 2014 aol had only 0.74% of the digital advertising market. i mean is verizon overpaying for aol? 4.4 beside? >> it depends on how you want to look at it. for verizon it's a drop in the bucket but you're getting more than the advertising platform. they can do a lot with the other sass assets and you also have the subscriber base. so overall, i don't think they overpaid for the transaction. i think it was perfectly okay. we're looking at a 15 to 20% premium relative to the prior day's close. so overall i think it was fine. i think there's valuable assets within aol. so i don't think they overpaid for it. >> so they didn't overpay but it wasn't exactly the biggest gamble ever. would that also mean that verizon will never be in the

same league as let's say apple, google for example? >> yeah i mean you kind of look -- you can look at the advertising business here and there's no way they're near close to the share that we're looking at with regards to google and facebook but what you're getting here is you're getting some valuable technology from aol. you're combining that with the scale of verizon. north of 100 million subscribers that verizon has and when you put that together the resources with the great technology that aol has it at least puts them in the conversation and it gives them a fighting chance. that's all you can ask for right now. >> thank you very much for joining us. much appreciated. equity analyst at capital iq. still to come here on the show dupont versus nelson peltz. the long simmering gattis put over the future of the company could be decided today. we get to the tail of the tape,

next. building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.

shareholders learn if the company is able to fend off a power grabby a well-known activist investor. landon has the story for us. >> wilfred, this has been a long

running fight between dupont and nelson peltz. he has nominated four candidates to the company's board including himself. he has a 2.7% stake in dupont estimated to be worth $1.8 billion. he called for the company to cut costs, simplify it's structure and shed noncore assets such as the dupont country club and hotel dupont. she claims it would be destructive and hurt shareholder value and gut the company's research and development. the candidates support keeping the company on a path it claims has reduced shareholder returns of 160% better than it's rivals and the s&p 500. both sides discussed a possible compromise but prospects for that are now dim. analysts say most shareholders votes have already been cast going into today's meet chging which

begins at 8:30 a.m. eastern time. shareholders also have a chance to make a statement for or against the candidates. and both scored victories a head of today's meeting. three big proxy advisory firms endorsed one of the nominees for the boards and one of the biggest pension firms for all of the candidates. they're backing dupont's candidates and two giant pension funds say they voted for dupont's. wilfred back to you. >> thank you very much. >> let's take a look at futures and what we can expect on wall street today. yesterday stocks ending lower after the sell off we saw on monday. today futures indicating we could see a rebound as bound prices march to the beat of their own drum. >> let's have a look at european markets. we're seeing a bounce back after yesterday's sell off.

ftse 100 higher by 0.7%. better than expected numbers on earnings and the jobless rate. the lowest since 2008. also a rebound higher by .3%. how are we looking wilf? >> interesting to see the peak in yields just being tempered today. of course still elevated to where we were some weeks ago. the u.s. ten year briefly touched it. it's off at 2.22. the ten year which touched 0.7 is lower now but there was an auction just 20 minutes ago where we saw a big auction of ten years at the level of 0.65% which seems in terms of fresh auctions saw yields rise for the first time in quite sometime. >> now on to a sad story, an amtrak train from washington to new york with more than 240 people on board derailed in philadelphia tuesday night. at least five people are dead

and several more injured. let's get out to chris who is live in pennsylvania with more on this story and chris just set the scene for us. what are you seeing on the ground? >> yeah well we're starting to see the sunrise so that's certainly going to be a change here as investigators and first responders will be able to see what they're actually dealing with. in the 8 hours since this train derailment occurred investigators were out there with flashlights just trying to see whatever they could in the dark to see if there were any more victims in this. you mentioned that this train was going from washington d.c. to new york. it derailed here in northeast philadelphia shortly after stopping at the philadelphia downtown station, 30th street station and people on board the train describe a pretty normal experience until it approached a curve here in this neighborhood. they said everything started shaking and then things started flying computers and luggage and people and then there was a sudden stop as the train came to

a rest. all 7 cars went off the track. people got their wits about them. they were trying to help other people that couldn't get out on their own. they were breaking glass and trying to pry open doors to get out and get away from the train. we're told that 65 people were treated in local hospitals. six people are still in critical condition and as you mentioned five people have been killed in this train accident. the national transportation safety board is sending a team to investigate to try to figure out exactly what the cause was. >> horrible situation all around. thank you for getting us the latest. >> before we go to break, these are the headlines. at least five people are killed as an amtrak train crashes in philadelphia. u.s. futures point to a higher open as european markets bounce back and facebook launches a mobile news app partnering with big named publishers. we'll be back in two. 't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving.

i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too.

welcome back. macy's reports first quarter earnings before the bell. they're expected to post a slight increase in earnings per share. this after sales and profits in 2014 missed forecasts. joining us to discuss on what to expect from macy's is paul. research analyst at detsche bank. there's several external factors. weather and the strength of the dollar. despite these head winds do you think macy's can beat expectations? >> we're expecting a relatively in line print as you mentioned there were a number of hurdles of this first quarter. i could throw in an earlier easter as another factor that did impact first quarter sales results where macy's has been strong, however, over the years it's an amazing margin so we do

expect them to have balance, slower sales with strong expense management and they have a great balance sheet that provides support to the bottom line typically through meaningful buy back activity. >> what are you expecting in terms of international sales? could that be a source of opportunity for macy's as it expands to other locations? >> macy's has a unique brand that could potentially move beyond it's current footprint. as you mentioned it does have licensing agreements in the middle east. we don't know of any additional plans at the moment. but certainly macy's i think will be looking to move beyond it's current presence and it did just recently do an acquisition here in the u.s. through the blue mercury brand.

that's a small cosmetic company and we do see growth opportunities through that as well as the new off price format called macy's backstage which will open this fall. >> a more general question about the retailers and the job and the rise that we've seen in the price of oil. what really is the demand elasticity to oil and how will that effect the retailers? >> certainly it's very impactful to any core consumer in terms of having incremental dollars in the wallet there to spend on you know products like clothes and home items. that said our work really says that correlations over a long period of time are very minimal. so we do see it as a positive catalyst for the consumer but frankly we think the labor market is a much more meaningful

meaningful metric. add to that that wage increases is part of the conversation as we see from walmart, t.j. max and mcdonald's. and we are more optimistic as we think about u.s. retail over the coming months. >> that's real interesting. thank you for your time. research analyst at deutsche bank. >> facebook is partnering with several news publishers including nbc news the new york times and buzz feed to let them post articles directly to the mobile app. throughout the show we have been hearing from you on this story and how do you like to consume your news in the digital age? straight from the publisher or through social media. what do you think about what you have to put up with on social media. would you rather pay a subscription and not have to see them. he says publishers no longer go to publisher's brackets unless

they're old. it's all about twitter now. scott says go to sites afterward if i require information. we had one tweet indirectly to me that said someone put at gag at @wilfred frost's mouth before someone picks him up on it. clearly he doesn't want to be charged. >> that was your idea. >> i'll happily pay a little bit. >> i want free content. >> quite a response there. let's have a look at bond markets. we're seeing a little stabilization today. we're not seeing the sell off to the same extent we've seen in the last couple of days. the ten year treasury note 2.22%. that's down quite a bit from yesterday. ten year bund at 62 basis points. >> let's have a quick look at what this means for u.s. futures. a positive open. expected to open up by 9 points.

that's all we have time for on today's show. thank you for watching. i'm wilfred frost. >> all right. squawk box is next. we'll see you tomorrow.

good morning, breaking news. if you haven't heard a deadly amtrak train derailment in philadelphia on the busy northeast corridor. five people are dead. six more in critical condition and the search continues for more victims right now. in global market news a big loss for u.s.shale. the international energy agency says american producers have blinked in that battle with opec and facebook wants you to like your news feed. the social network teaming up with publishers to launch instant articles pushing stories right to you promising that they'll come faster than ever

before. it's wednesday, may 13th and squawk box begins right now. >> live from new york where business never sleeps this is squawk box. >> good morning, and welcome to squawk box here on cnbc. becky and andrew are off today. an amtrak passenger train carrying 238 passengers and five crew members derailed late last night. at least five people are confirmed dead. the train was heading from washington to new york when it went off the tracks just north of downtown philadelphia. passengers say everything started to shake luggage and people went flying and then there was a violent stop. >> we were sitting there and then it just -- you saw it go like that. you can feel it o