good morning. cracked iphone. the f bhi breaks into the san bernardino gunman's iphone without apple's help, ending the government's legal battle for now. yellen to the rescue? investors awaiting comments from the fed chair. and march of the markets. stocks are on pace to break their month-long losing streak despite a continued decline in oil prices. it's tuesday, march 29th, 2016, and "worldwide exchange" begins right now. good morning and welcome to

"worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. a very good morning to you. let's have a look at u.s. futures this hour. they're called to open higher but only fractionally to the tune of about 13, 14 points for the dow. the s&p called higher by a couple points. the nasdaq by around about 7 1/2. >> show you the ten-year treasury note at this hour ahead of janet yellen. she'll be speaking during the noon hour eastern time at the economic club of new york. not moving but importantly sitting below 1.90 on a batch of economic data yesterday somewhat disappointing. more on markets in just a moment. but first, a developing story out of cyprus. a hijacked egyptair flight landing at an airport in cyprus early this morning, according to authorities. an egyptian hijacker claiming to have an explosive belt holding 11 of the passengers hostage over what authorities are calling a, quote, personal matter. flight ms-181 was on its way

from alexandria to cairo, according to the airplane. the flight had 82 passengers, including eight americans. we will keep an eye on this story and of course bring you any developing details as we get them. >> indeed. so that flight has landed, and the hostage taker has released the vast majority of people on the plane so far. we'll bring you any developing facts on that story. this morning's top corporate story. the high-profile legal battle between apple and the government is officially over after the fbi managed to unlock the iphone used by the san bernardino terrorist without the tech giant's help. according to the justice department, it has obtained the data from the device and is asking the court to vacate its order for apple's assistance in the matter. apple releasing a statement in response saying, this case should never have been brought. the firm also saying it would continue to increase the security of our products as the threat and attacks on our data become more frequent and sophisticated. this as the fbi may not reveal how it forced that device to

open. let's have a look at shares right now in apple and how it's performing. later in the show, we will be hearing more on this story. eamon javers will be joining us. >> really hasn't impacted the share price much, but it has spread into the public debate. and there's still questions. this doesn't feel like the end of the story. yes, the fbi managed to go about it itself, but i have a feeling this encryption debate has only been kicked down the road, can kicked down the road, as they say. >> you could also say this debate has been brought to the fore and it has to be debated. we can't ignore it because it's something that's going to have to be debated. that question of whether this is a win for apple, a win for the government. >> well, apple doesn't have to open its encrypted phone for now. it's a minor win, but the question is, how did the fbi do it? who's the third party that helped the fbi open the phone? how did they do it? is it possible for other people

to do? does that make the apple iphone less secure? >> certainly that debate is out there. is the phone breakable by anyone, albeit with months worth of expertise and focus on doing it, but also even though apple has not been forced to do it themselves, had they lost that sort of moral debate because clearly in the grand scheme of things, they didn't want to the, -- the fbi to crack this phone. >> we're going to talk a lot about that today. first, we want to to get to the fair amount of fed speak topping today's agenda. janet yellen will be the hallmark delivering remarks on the economy and monetary policy at the economic club of new york just after noon eastern time. that will then be followed by q&a with the moderators. that will be important. san francisco fed president john williams is speaking in singapore at this hour. we'll bring you any headlines as they hit. dallas fed president robert kaplan will be in front of the mike this afternoon.

then we have economic data. the monthly s&p case-shiller home price index out at 9:00 eastern time. that will be followed by march consumer confidence at 10:00 a.m. home builder lennar reporting results before the bell. we'll also hear from david & buster's after the close. let's check in on global markets this morning. first up, another look at futures, which are ahead, as we said earlier, but only slightly. we're up by 15 points on the dow. so we're taking some strength from the european session, which at the moment is green pretty much across the screen. only norway earlier was weighed down in part because the oil price is low. as you can see post that long easter weekend in europe a bit of a sugar rush for european markets. france up 1%. germany up 0.8%. asia, however, saw predominantly red across the screens. the hang seng index up fractionally, but both shanghai and the nikkei down. shanghai down by 1.25%. >> let's show you the broader

market picture this hour. wilfred mentioned oil prices, down almost 1.5% for wti. this ahead of two days of inventory data. first we get that word from the api after the bell. then tomorrow's official government report. brent also under pressure, below $40 a barrel, down 1.7%. nat gas continues to fall as well. we showed you the ten-year treasury note kweeyield sitting below 1.90 this hour. let's show you currencies. the dollar actually weakening yesterday but back to strengthening this morning. the euro below 1.12. stronger dollar against the yen as well. marching toward that key 114 level. the british pound is getting a little bit of a boost. as far as gold, which is heading for its best quarter since 2007, it has been weakening over the last few sessions. we'll show you the action this morning. continued weakness by about two buck. nothing much to speak of. still, as i mentioned, overall a

pretty banner quarter for the price of gold. >> indeed. this week continues to be lots of data coming out, but the focus very much more on janet yellen. yesterday when we looked at that pce deflated data, a little bit soft but only at the margin, i would argue. the main reason being, it wasn't soft enough to derail the idea that domestic situation in the u.s. is strong and the fed would hike if that was the only thing on the cards. international is weak, and it's that weighing them down. this fractionally soft pce deflated number yesterday i don't think changes the domestic side of that. >> what i think it does is proves janet yellen correct, who a week and a half ago in her statement in her news conference as part of the fed meeting said that she was a little bit weary prices. it could be due to temporary factors. and she really needed to see a sustainable, meaningful pickup in inflation. what it shows is that we're not getting that. the fed is not meeting its 2% objective. and her cautious outlook is completely justified.

i think what she needs to do today in this speech on this podium before the economic club of new york is get her fed in order. she speaks for the federal reserve. they're entitled to their opinions, all the regional fed presidents, which we heard from last week, but make it clear she's in charge. her view is the core view of the federal reserve. and that's, i think, what's going to be key to watch. >> i agree. i think that's why the foe ku again comes down to that debate between the international and the domestic situation as opposed to the my knew that of the little parts of inflation data. >> the other question is she going to jolt the markets. yesterday was the lowest volume day of trading. so what's it going to take? maybe fed speak. we asked yesterday on twitter. the response overwhelmingly was earnings. so watch for preannouncements here, guidance, lowered expectations on earnings. maybe that could mean we'll get something. >> let's move on to this morning's corporate news.

a former partner at the unit of the boutique investment bank pjt partners has been arrested on charges he stole $25 million from investors and tried to take $70 million more. he posted bail of $5 million on criminal wire and security fraud charges. he was an employee at park hill group, which is owned by pjt and is a spinoff of blackstone. pjt has fired him for cause and has initiated an internal investigation. shares tumbling on the news quite significantly. basically flat in premarket. >> some other stocks to watch for you today. berkshire hathaway closing in on an s.e.c. filing. it raise the its stake in wells fargo to 10%. berkshire owns more than 500 million shares, worth nearly $25 billion. in the filings, warren buffett saying the company has no intention to change how wells fargo operates. "the wall street journal" reporting the s.e.c. is looking into sun edison's disclosures to

determine whether the solar company exaggerated its liquidity last year. at the time, sun edison said it had more than a billion dollars in cash, but the journal says most of that was cash that the company couldn't actually access and the balance had dropped to less than 100 million by last november. origin technologies has pulled its takeover offer for affymetrix. the maker of the gene sequencing products said the bid wasn't superior. a little share reaction there. down less than 1%. more stocks to watch. virgin america has reportedly received takeover bids from j jetblue and alaska air. analysts say it could make sense for jetblue, which is looking to expand on the u.s. west coast. synnex revenues miss forecasts. the company issuing down beat

guidance for the second quarter. foot locker is being added to the s&p 500. the retailer will replace cameron international after the close of trade on friday. c well, paying at the checkout got a little more complicated when smart chip cards were introduced to u.s. consumers last year. you may have noticed on your new credit card. the deadline for merchants to make the transition to new card readers was october 1st, 2015, but a new survey is out showing retailers and consumers still aren't exactly happy about the change. our landon dowdy joins us with more on this story. landon? >> hey there, sara. good morning. most financial institutions have been responsive, but retailers haven't been as quick to make the transition. a survey finds that 42% of retailers still haven't updated the terminals in any of their stores. chains such as pizza hut, tj maxx and niemann marcus haven't provided their upgrade

status. some have experienced data breaches in the past few years. but the bigger issue, under the new rules, merchants that haven't implemented the new payment terminals become liable for fraudulent purchases made in their stores. about 43% of retailers that have experienced data breaches in the past five years have not updated their point of sales terminals. with roughly $8 billion in fraudulent purchases in the u.s. each year. how do consumers feel? about 56% say they don't care for it. a big reason is because number one, they don't know if they have chip enabled credit cards and don't understand it. if they're anything like me, they just get so frustrated with how long it takes whenever you stick the card in. >> i think it's good. europe is way out in front of us. >> we've always had -- well, feels like we've always had the chip. >> and you don't have to sign. >> don't have to sign, which is much easier to forge than knowing a p.i.n. code. you guys have got to get on

board. might be frustrating in the transition, but you've got to et go on board. landon, thank you. still to come, t-mobile admit what is so many of us already know. no one is actually using their phone as a phone anymore. >> so true. >> that is so true. occasionally for quick calls home. but that's about it. stay tuned. you're watching "worldwide exchange." that and much, much more coming up. hey dad. hey sweetie, how was your first week? long. it'll get better. i'm at the edward jones office,

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exchang exchange". a very good morning to you. let's get more on the action in markets across the world. first in europe, trading following the long easter holiday. nancy hulgrave joins us with what's going on in europe this morning. nancy? >> hi, wilfred. well, european markets are off to a solid start for the first day of trade after the easter holiday. overall, the stoxx europe 600 up about 0.6%. remember, going into the long weekend, we had a drop of more than 1% across the major boerses here. these gains should be kept in perspective. also, they continue to be muted due to the dropoff in commodity prices. no surprise that oil and gas and basic resources are the only sectors in negative territory. especially look at the ftse 100. u.k. minors on the back foot there. losses of more than 3% across the key miners. as you can see here, all off in the neighborhood of 3%. investors continue to keep an

eye to the commodity space. also the declines in oil prices as well. for the rest of the day, the big focus will be gearing up for janet yellen's commentary. guys, back to you. >> the world awaits janet yellen. thank you, nancy. hong kong also returning today from the easter holiday on monday. akiko fujita joins us with a roundup of the asian session. good morning. >> good morning to you, sara. well, weaker than expected data out of the u.s. certainly weighing on markets across asia today. a lot of investors here also sort of staying on the sidelines, waiting to hear from janet yeln to get a better sense of when the fed will hike rates next. locking over to australia, asx 200 down about 1.5% there. heavy selling driven by increasing fears of mounting bad debts. over in japan, the nikkei 225 staying above that 17,000 handle but ending in negative territory, down about 0.2%. new data out of japan today.

investors certainly not impressed. household spending rose for the first time in six months, but government officials coming out and saying that was only because of that extra day in the leap year. the jobless rate rose slightly about 3.3%. retail sales fell below expectations. that data putting more pressure on prime minister shinzo abe to delay the sales tax hike that's scheduled for next year. although, prime minister abe came out and said he has no plans to delay that hike unless there is another shock on the level of the lehman brothers collapse back in 2008. one more interesting note out of japanese markets today. one of the biggest movers on the day, sun corp. that share up nearly 5% on speculation that its israeli subsidiary was behind the fbi's phone hack of course, in that legal battle between apple and the department of justice. wilfred and sara, back to you. >> akiko, quick question. the shanghai composite has had a stunning rebound from its january lows.

we were all worried about china when we began the year. is there a sense that the authorities have managed to take control of the markets and the economy? what's actually fueling the rebound, and is it sustainable? >> well certainly yesterday we saw a big rebound, although we're seeing it end in negative territory today because of the new numbers out over the weekend. industrial profits up as well. then also these measures that the government is taking to basically cool down the housing market as well. there is a sense that the government may finally have a handle on the economy and perhaps that the monetary easing and fiscal policy that was set in place earlier is finally starting to have an effect there. >> akiko, thank you very much for that. what does it all mean for u.s. futures? let's have a quick look at the board. we are called to open higher, although not quite with the same confidence as europeyou'reurope. called to open by ten points higher for the dow. the s&p basically flat. the nasdaq call kd higher by

about five points. the only other point to make with markets, yesterday again unbelievably low volumes. the lowest volume day of the year. as suggested by the direction of markets and the volumes, people unsure, not having much -- >> we do have home prices, consumer confidence. we have yellen and other fed speak. maybe it's just waiting for that. >> indeed. let's get back to corporate news. yahoo! has set a deadline for april 11th to submit preliminary bids for its internet business and asian assets. "the wall street journal" reports that means yahoo! could close a deal by june or july. the company launched an auction of its core businesses in february after shelving plans to spin off its stake in alibaba. last week, starboard value, which owns less than 2% of yahoo! launched a proxy fight to overthrow the board. t-mobile is acknowledging that many of us don't actually use the phone part of our phones anymore. reports saying that the wireless carrier will launch data-only plans later this week called simple choice data only.

they include unlimited texting but no actual voice service. the plans range from $20 a month for two gigabytes of data to $95 a month for 22 gigabytes, which is true, i rarely use my phone, though i like that capability of having it in case you need it. >> presumably that plan would still allow you to make a phone call through whatsapp or skype. >> that is just like way, way too cool for me. >> you've never used skype? >> i don't use skype. >> you've never used any of these programs? >> i also live in the country where i'm from. >> you'd still be able to make calls. it's just down a different app. >> good point. still to come, some tense moments at the u.s. capitol building after a gunman faces off with police. we have the latest on the story from washington. plus, it was on this day in 1999 the dow reached a new milestone, closing above the 10,000 mark for the first time. it took the dow just about a year to go from 9,000 to 10,000. it's now well back above 17,000.

but furs as we head to break, here's today's national forecast with the weather channel's jen carfagno. >> sara and wilfred, good tuesday to you. we've got a big spring system out here in the west on the move. this is the weather maker for the week ahead. for today, it's bringing more mountain snow. in fact, could see another 10 to 20 inches up in the mountains in utah. we're going to be looking for a lot of warm, windy conditions ahead of it. overnight tonight, thunderstorms start to return to portions of the plains. most of today will be pretty quiet. in the east, still another day with thunderstorms in central and south florida. the northeast still breezy but nowhere as windy as it was yesterday. speaking of winds, very strong winds across portions of the east yesterday swels into the west, where winds in vegas were gusting over 50 or 60 miles per hour. the heat was on in miami. set a record high of 91 yesterday. it'll be much more like average today in the 0u. that's your latest coast-to-coast forecast. i'm meteorologist jen carfagno for the weather channel. "worldwide exchange" continues

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you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy. welcome back to "worldwide exchange." very good morning to you. we're learning more today about the man who was shot at the u.s. capitol building on monday afternoon. he survived and is facing charges this morning. we're discovering this isn't the first time he's had a run in with the law. tracie potts joins us now from washington with all the details. >> reporter: hi, wilfred. good morning, everyone. by the way, the capitol visitors center is expected to reopen on time this morning after that

shooting, but you're right. turns out this man who was shot is someone who police already knew. larry russell dawson is stable but critical this morning after surgery, shot by police after brandishing what sources later told us was a pellet gun at the security entrance to the capitol visitor center. >> there's no reason to believe this is anything more than a criminal act. >> reporter: authorities cleared and moved his truck overnight. dawson had been ordered to stay away from the capitol after this outburst last fall. >> i am a prophet of god. >> reporter: a warrant was issued after dawson wrote the court, claiming he's exempt from the law. dawson's listed online as a pastor from tennessee. records show he's been arrested there twice before. neighbors describe him as friendly. >> never in my wildest imagination would i have pictured this, which makes me think maybe this is not the guy. or if it's the guy, then he's got two separate lives that he leads. >> reporter: dawson is charged

with assault with a deadly weapon and assault on a police officer while armed. and there is also a woman, a bystander who was hurt during that shooting. as of this morning, we are waiting to get more information about not only if there will be any additional charges but also whether he remains stable but critical. >> tracie, thank you very much. in sports, what kid doesn't dream of meeting their favorite player? well, one young man decided to make that happen at the knicks, pelicans game last night. in the final minute of the game in new orleans, he ran on to the court to give knicks' star carmelo anthony a hug. it took carmelo anthony by surprise a bit, but he did give the kid a nice pat on the head before he was then ushered off the court by the referee. it was a nice moment. >> that was a nice moment. i imagine if i ran on, i don't think i'd get such warm treatment from the umpire. >> no, they'd probably tackle you. >> if you do that in an english

soccer game, you get sort of aggressively tackled to the floor and taken off to prison. >> not that you would know. >> exactly. right. still to come in the next half an hour, we'll have mike moran, head of economic research at standard charter, with his global growth outlook. and our twitter and facebook question of the day. the fbi did manage to crack the iphone with no help from apple. who really wins, apple, the fbi, or both? let us know and we'll share the results later on the show. "worldwide exchange" will be right back. the world 2116, you can fly across town in minutes or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪

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good morning. cracked iphone. the fbi breaking into the san bernardino gunman's iphone without apple's help, ending government legal battle for now. a new test today for concussions that could eliminate the need for an mri. and common sense says donald trump could win the election against hillary clinton this fall, but common sense hasn't dictated anything in this year's race for the white house so far. it's tuesday, march 29th, 2016, and you're watching "worldwide exchange" on cnbc. good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. let's get right to the market action, have a quick look at u.s. equity futures. we have been called higher over the last hour or so, but only slightly. we've just lost that impetus and now called lower. again, only slightly. the dow expected to open down by

about 20 points. >> yield on the ten-year treasury note, not a lot of movement but sitting below 1.90. some of the weaker economic data like personal spending, incomes, and inflation numbers yesterday adding to some buying of treasuries, pushing yields lower. we'll keep an eye on that. they are moving slightly lower. more on markets in a moment. first, a developing story out of cyprus to tell you about. a hijacked egyptair flight landing at an airport in cyprus early this morning, according to authorities. the airline tweeting the news. flight ms-181 was on its way from alexandria to cairo, according to the airline. the flight had 82 passengers on board, and the hijackers have released everyone, including the crew, except frp the 11 foreigners on board. details are still coming in early this morning. of course, we will keep you posted as we learn more. right. to this morning's top corporate story. the high-profile legal battle between apple and the government is officially over after the fbi managed to unlock the iphone

used by the san bernardino terrorist without the tech giant's help. eamon javers joins us from washington with more on the story. eamon? >> good morning, wilfred. it was a stunning development late yesterday when the u.s. government took steps to drop this case in this very high-profile battle between apple and the fbi over whether or not the u.s. government could force apple to write new software that would unlock the cell phone of syed farook. he was the shooter in the san bernardino terrorist attack last december. the apple folks argue they shouldn't have to write that software, they shouldn't have to open that phone. the u.s. government said this is a terrorist investigation, we need access. well, late yesterday what the u.s. government says was they had found another way into that phone. not clear exactly how they did it. they said not only that, they'd already gotten the information off of syed farook's phone that they'd been looking for. so they took steps to drop this case. we got a couple dueling statements here. first from the fbi on apple

saying, during the past week, to include the weekend, extensive testing of the iphone was done by highly skilled personnel to ensure that the contents of the phone would remain intact once technical methods were employed. the full exploitation of the phone and follow-up investigative steps are continuing. now apple on the fbi, saying, from the beginning, we objected to the fbi's demand that apple build a back door into the iphone because we believed it was wrong and would set a dangerous precedent. as a result of the government's dismissal, neither of these has occurred. this case should never have been brought. that's apple on the fbi. now, guys, this raises a whole bunch of questions, including wether or not the u.s. government is going to tell apple exactly what exploit it used. there's some tension here because this is now a security weakness in the apple phone, whatever it is. apple will want to know what that is. the u.s. government, though, has incentive to keep that information private in case it want tos to use it in other cas.

the government was not commenting on what they did or who brought this information to the government's attention. >> i guess, eamon, we also don't know what is on the cell phone that they've managed to unlock. >> right. i asked a senior law enforcement official last night who was briefing reporters exactly that. they simply declined to say. they say they're going through the information on farook's phone to figure out whether anything there is useful for their investigation. they had said there was sort of a dark period after which farook had turned off some of the settings on his phone that indicated there might be information on that phone that was relevant to the terrorism investigation. we'll wait and see now whether or not they introduce any evidence in court that came from that phone. that'll be the focus of a lot of speculation. >> it's only a matter of time before we have this encryption debate again, and it will eventually go to court and maybe all the way to the supreme court. it sort of just got punted. >> yeah, absolutely. this is the end of this fire over this phone. but this is definitely not the end of this debate. the whole question over security

versus privacy taking place in a very high-profile way. apple, the biggest and most powerful company in the country, perhaps in the world. the fbi conducting this investigation against the backdrop of ongoing terror attacks and scares. we saw the brussels attack last week. we saw a shooting incident at the u.s. capitol, as you guys have been reporting on this morning. all of that raises tension, raises fears, and raises the government's argument that it needs access to this kind of technology in order to get into people's phones. >> yep, certainly a twist there. eamon, thank you very much. eamon javers in washington this morning. there's a fair amount of fed speak topping today's agenda. fed chair janet yellen will be delivering remarks on the economy and monetary policy at the economic club of new york just after noon eastern time. then that will be followed by q&a with the moderators. we'll bring it to you live on cnbc. san francisco fed president john williams is speaking in singapore at this hour. we'll bring you any headlines. and dallas fed president robert kaplan will be in front of the mike this afternoon.

some data as well. the monthly s&p case-shiller home price index out at 9:00 eastern time. consumer confidence at 10:00 a.m. lennar reporting before the opening bell. we'll hear from dave & buster's after the close. we want to talk more about the markets as we see futures looking up. the dollar strengthening again. well, futures actually just making a turn lower. joining us now is mike moran, head of economic research for the americas at standard charters. mike, good to see you. >> good morning, sara. how are you? >> so on this dollar question. the dollar has resumed strengthening. do you see that as a major head wind for the overall equity market? >> i still think it will be a head wind. i think we've seen this before over the last certainly 12 to 18 months. i think the issue with the dollar and how it relates to the fed, i look at it as somewhat of like a circularity trap. as much as the fed is focused on

the domestic conditions, as soon as the market starts to get wind that we're preparing for another rate hike that obviously supports the dollar, and that then actually exports some of that financial condition tightness or tightening to other markets. that's where we've seen, i think, some stressors, whether it's in currency marks or credit spreads. that has kind of held the fed back from being too aggressive. so there's a circularity loop here, which has made the fed's job much more difficult. if they're really serious in terms of getting on with normalization, that is a major headwind for the time being. i think it's not quite as bad as it was, say, 12 months ago when we came from very loose policy and we got the first rate hike through. the bond markets, credit spreads have adjusted. the dollar has rallied significantly. i think at the margin, we're talking about the next, say, six

months, i think there's this circularity which prevents the fed from being more aggressive than it would like to be. i think that was one of the stories we got from the march fomc. the market was just a little too optimistic, perhaps. >> mike, is global growth, though, slowing regardless of what the fed is doing, regardless of if they're fig tightening and the dollar is going higher? >> i think fed policy and signaling is part of the story. i don't think it's the only reason. looking outside of the u.s., it's quite clear that aggregate demand has been soft. it's not contracting. we're also seeing global trade. nose numbers have been quite poor. it's not just the u.s. to be. it is a broader issue. we've been addressing monetary policy from a global central bank standpoint, but frankly the evidence so far suggests that the efficacy, the marginal impact of that is probably

diminishing and really, i think central bankers are beginning to start thinking about other policy measures to complement what monetary policy has done. >> mike, very quickly, get us set up for the events about to come today and through the week. if you were talking to traders and they ask, what do we expect from yellen, from some of the economic data leading into the jobbing report on friday, what would you say matters most? >> i think yellen today is very important. i would say that certainly since the fomc, we've had quite a number of fed speakers, as you know. i think most of them have been trying to walk back that kind of dovish undertone that the market took away from it. it will be interesting to see what yellen does. i don't think she's going to come out outright hawkish in that sense. she will give this cautious message. obviously april and june are all on the table. i don't think april is that significant at all. there's a risk of june. really, the data has softened a little bit.

pce, the corporate profitability number from the ge report on friday. i think that's also a real warning flag there that the economy may not be as robust as many think. we still think the economy will grow maybe 1% this year. >> we'll see what that wages number looks like friday. mike moran, thanks for joining us this morning from standard charter. now for today's top trending stories. alaska airlines canceled more than 40 flights after a volcano erupted in the state yesterday. a cloud of volcanic ash rose more than 30,000 feet in the air, covering more than 400 miles. cancellations have affected 3300 passengers so far. >> wow. >> disruptive but stunning photo. >> did you see this on twitter yesterday? beyonce, jay-z and their daughter made a surprise visit to the white house for the egg roll yesterday. the family was among the 35,000 other guests gathered afternoon south lawn for the obama's last

easter egg hunt in the white house. no doubt social media exploded when they saw beyonce, jay-z, and their child, who you never see. >> very cute. a simple blood test may be able to detect con suggestions. researchers from orlando health found a protein released by the brain during injury that stays in the bloodstream for up to a week. the testing help doctors detect delayed symptoms and lower the need for scans like mris. >> huge, especially for children. parents don't want their kids exposed to radiation. could be a game changer. still to come here on "worldwide exchange," today's must reads. trump and the media, and can he beat hillary? two interesting op eds coming up. much more still to come here on "worldwide exchange." sed to the smell of lingering garbage... ...in her kitchen yup, she's gone noseblind. she thinks it smells fine, but her guests smell this. ding, flies, meow febreze air effects heavy duty has up to... ...two times the odor-eliminating power to... ...remove odors you've done noseblind to

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welcome back to "worldwide exchang exchange". show you what's happening with u.s. equity futures, which just took a leg lower. dow futures down 23 points. nothing extreme. still, they were higher about 45 minutes ago. europe still higher, has lost a bit of steam. oil is lower and the dollar is stronger. now for our must reads of the morning. i went to "the washington post," where eugene robinson wrote a piece called "no, the media did not call trump." robinson writes, the news media operates in what should be every conservative idealogs

environment. outlets compete every day. actually, in the internet age, every hour to provide consumers with information they need and want the fact is that audiences have decided that they need and want to know about trump, directing this issue that we, the collective we, there is no such thing, by the way, and also that when there's a major rally with so many people, that is a news event and audiences want it and it does show ratings. media is not just doing it. >> it's that age-old debate. does media respond to opinion or start to shape opinion? i think definitely it responds to it. definitely he gets a lot of air time. in fact, he's also half of the subject of my must read. it's in "the wall street journal." it's titled "yes, donald trump could beat hillary." the common mind set is if they're the two candidates, hillary has the best chance. the author writes, first

presidential matchups do not score like oxford union debates and mr. trump scores his own game. that's one of the reasons the author lists in terms of examining the common consensus views for why hillary would. the democrats can't take for granted the coalition that sent obama to office. it's not one that mrs. clinton can take for granted. and it's an interesting view on why a trump v. clinton race might not be as predictable as people suggest. >> i just can't wait. if they are the nominees, those debates. >> the debates will be fantastic. >> you thought a lot of people tuned into the republican debates. i bet those debates will be very good. i wonder how effective he's going to be, how disparaging he's going to be. >> we'll have to wait and see. the other point to make as well this morning in terms of the titles of our two must reads, yours began with the word no. my began with the word yes. a little bit of insight into the

deep personalities of the two "worldwide exchange" anchors. all right. we're approaching the top of the hour. that means the "squawk box" team is getting ready. becky joins us from new york. >> great to see you both this morning. you've been talking about a lot of the major stories we'll be covering as well. it's a story of good news, bad news for apple today. the good news being that the department of justice says it is stepping back. it's pulling that case. it's not going to be asking them to help break into the phone. the bad news is they've already broke into the phone. it leaves questions as to how they got into it and whether or not they'll share that information with apple so they can improve their security. we have walter isaacson as hour guest host today. he'll be with us for two hours from 7:00 a.m. to 9:00 a.m. eastern time. he's the author of the biography on steve jobs. we'll get his thoughts on everything happening there. also, we're going to be talking taxes and trade today with grover norquist. grover, as you probably know, is opposed to taxes, increased

taxes of any kind he's got a very interesting take on tariffs. he sees this as just additional taxes on consumers that the government takes in. we're going to talk to him about that, get his thoughts on trade and what he thinks of each of the candidates when it comes to that. plus, we'll be talking ahead of jobs friday about a small business index that will give us an example of what's happening with small business jobs. and of course we're going to be talking an awful lot about janet yellen. obviously the markets on a little bit of hold, waiting to see what comes out of janet yellen's mouth. that's all stuff we're covering oncoming up in about ten minutes. >> becky, thank you very much. coming up, we'll get you caught up on the markets. the president of the wells fargo investment institute will join us with his take on what to watch today. don't go anywhere. "worldwide exchange" will be right back.

welcome back to "worldwide exchange." joining us now from new york is the president of the wells fargo investment institute. very good morning to you. thanks for joining us. now, it's a data heavy week. we thought that would be the focus, but we're also hearing from lots of fed members, including janet yellen today. which of the two are you watching more closely, data or fed speak? >> actually, wilfred, fed speak. i'll be at the luncheon today. so it'll be interesting to see what janet has to say. i agree, i think she will try and walk back some of the more hawkish comments that some of the voting and non-voting members have been talking about over the past week. we do think that april is off the table. as a matter of fact, we think the federal reserve probably only raises rates once this year and not twice as the fed is currently indicating. >> wonder what you're making of the volumes this week. very low. yesterday the lowest of the year. some of the other interesting factors at work.

for instance, transports have been down five days in a row after a strong stretch. if you put some of these pieces together, what message are you getting from the stock market right now? >> actually, i think the stock market has been stuck in neutral here for a little bit of time, waiting for better economic data. unfortunately, the consumer data we saw yesterday and the durable goods on manufacturing weren't particularly robust and good for first quarter, sara. but i think that what you're getting is a little bit of a take back from this big move we've experienced, this 13%, 14% move since the february 11th lows. transports had been one of the leaders and one of the strongest elements. so i think you're getting a little bit of a reversion to the mean and normalization there. you're right, volume and breadth have both been extremely light this week. of course, a lot of people gone last week. a lot of people still gone this week. i would expect light volume through themainder of the week. >> as you're rightly saying,

we're treading water in the equity markets at the moment. are there any other asset classes that are worth getting into? if you look at the fixed income market, that seems anchored itself given the uncertainty over the feds. >> i think one of the more interesting areas is in the tips mark. certainly we've seen the pce deflator since fourth quarter of last year go from 1.3 annualized to 1.7. we've seen even a bigger pickup in core inflationary pressure, jumping to almost 2.2%, 2.3% annualized in the first quarter data. that's running well above the fed's 2% number. a bid in tips and a little bit of inflation protection in the fixed income markets we think makes sense right now. >> what about biotech? the ibb, the biotech index, fell another 1.3%. it's down 25% so far during the quarter. fears overblown? would you be a buyer? >> not yet, sara.

we still think that the biotech section of the market still looks a little expensive. it's been one of the strongest segments through this entire recovery. health care as a whole, but in particular, biotech has had some of the strongest earnings growth and price performance going literally back to 2009. we still are neutral on health care right now. we don't see it as an overweight in today's environment yet. but if prices come down further, maybe it would be more attractive at that point. >> you write in your notes that you're favoring technology at the moment. what are the reasons for that exactly? >> well, we still think that when you look at three sectors that have the opportunity and as the cycle ages and deepens, you need to be exposed to sectors of the market that can drive topline revenue growth and bottom line earnings growth in this challenging environment. we think technology is one of those. we still think there is nice earnings growth in consumer discretionary, double digits for q-4, probably double digits

again here in q-1. we actually like as more of a value play the industrial space right now. we think you're starting to see nice earnings momentum. you're getting cheap valuations there. we think that makes a lot of sense in port ffolioportfolios. >> daryl, thank you very much. >> my pleasure. >> i will be watching the u.s. dollar, reaction to janet yellen's speech. usually the currency market gets this right. if it rises after the yellen speech, could be a signal she has reset expectations, that she's going to move sooner than later. if it falls, could be the fact she goes back to her commentary a week and a half ago that there's reason for caution here. >> i think janet yellen's definitely the focus. also, home price data. keep an eye on that. just in the next few hours, keep an eye on european markets. they've lost steam. the answer to our twitter question this morning. we asked the fbi cracking that apple phone, who has won out of

this? the fbi the answer, 46%. that's it for "worldwide exchange." "squawk box" is next. into a n. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪

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good morning. the latest overnight. an egyptair flight from alexandria to cairo hijacked by a passenger who said he had an explosive belt. details straight ahead. janet yellen going to speak later today. we'll be listening to see if she addresses a course of hawkish comments in recent weeks from other fed officials. >> and the government says it has cracked the iphone of one of the san bernardino shooters without apple's help. now the doj is dropping the legal case that apple says should never have been braulgt. it's tuesday, march 29th, 2016. "squawk box" begins right now.

live from new york, where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. there is news breaking overnight that an egyptian air flight from alexandria to cairo was hijacked. officials in egypt say a hijacker claimed to have an explosive belt and forced the airbus 320 to fly to cyprus. most of the passengers have been released at the airport in cyprus after negotiations. the hijacker is still holding seven people hostage, according to egyptian officials. a high-level source tells nbc that the reason for the hijacking appears to be a personal matter involving a woman, possibly his ex-wife, who they think is cyprus. egypt's aviation minister says the hostages include four foreigners and seven crew members. although that, number is changing, it does look like he's released more people. we'll bring you updates as the story develops. >> what a