good morning and happy friday. welcome to "street signs." i'm nancy hulgrave, and these are your headlines. data dull drums? well, the nikkei sees heavy losses, triggering a selloff here in europe. and britain's laws. just days after announcing plans to exit the u.k. china's anbang backs out of the bidding war over the bidding

war for starwood. >> even the base model 3 will do 0 to 60 miles an hour or 0 to 100 kilometers an hour in less than six seconds. at tesla, we don't make slow cars. >> elon musk finally unveils tesla's highly anticipated model 3. at $35,000 a pop with orders now surpassing 137,000. good morning and welcome to "street signs." we are just an hour into trade here in europe, and sentiment has turned sour on this first day of april. as you can see, the stoxx europe 600 is off just about 1.5%. this will be its second straight day of losses despite some improvement towards the end of the quarter. overall, the stoxx europe 600

did end in negative territory. quite a different story from what we saw on wall street with that dramatic comeback. we'll talk about that more in detail in a little bit. meanwhile, let's get a view on how this loss is playing out. we have seen some concerns once again over basic resources, financials, some of the sectors that really picked up towards the end of the quarter. ftse 100 off just over 1%. the xetra dax and the cac 40 off by 1.6% to 1.7%. we've been watching data throughout the morning. a lot of data coming out here on the eurozone manufacturing as well. we'll get into that more in just a little bit. when we talk about the data coming out, we're also keeping an eye on the individual stock movers to zurich insurance among them, now slumping to the bottom of the stoxx 600. this comes on the back of reports that it may be in the running to buy mutual business.

a report that tata steel could be in talks to buy a stake in its european steel unit. this comes according to a german newspaper which says negotiations are already at an advanced stage. meanwhile, the political blame game is intensifying in the wake of tata's decision to pull out of the u.k. senior officials say britain blocked attempts to defend the eu against cheap imports of chinese steal. well, u.k. prime minister david cameron has now promised to take action in order to save the 15,000 jobs at risk. >> we're going to work very hard with the company to do everything we can, but it is a difficult situation. there can be no guarantees of success because of the problems that the steel industry faces worldwide. but the government will do everything it can to help working with the company, working with the communities to try to secure the future of this vital steel making import business and elsewhere in the u.k.

>> the ratings agencies are taking note here. moody's now saying it thinks tata's plan to exit the u.k. actually make sense for the indian company. the ratings agency says it will ease pressure on its operating performance at tata. let's get another look at what's moving in italy. we have banco carige to reject apollo's bid for majority stake. this comes according to the investor's lawyers. the newly appointed board will ultimately decide on whether or not to accept the bid from apollo. and getting a look at kering now moving to the downside. the creative director is leaving the business after four years. she's been credited with the undisputed success when it comes to repositioning that brand. no replacement has yet been

announced. and meanwhile, let's get a check on how home retail and sainsbury are trading. the board has now accepted the 1.4 billion pound takeover offer. this announcement ends the negotiations which began all the way back in november. the acquisition is expected to be completed in the third quarter of the year. as you can see, investors selling sainsbury, off about 1.6%. and investors continue to keep an eye on the manufacturing data we've had out from china and europe here today. we look at the data coming out of china. the manufacturing activity actually picked up last month. this has helped ease some concerns over the health of the world's second largest economy. it's the first time the

manufacturing sector has expanded in nine months. meanwhile, a disappointing data out of japan. a much gloomier picture, suggesting that sentiment among big manufacturers actually worsened in the first quarter of 2016. the index halved to six in the first part of the year. let's get out to akiko fujita. investors trying to work through this data. exactly what it means here. the reaction has not been very favorable, especially on the nikkei. >> exactly, nancy. we saw a huge selloff on the nikkei, dipping more than 3%. i want to start with the big picture first in asia. you mentioned the negative start to the day over in europe. not a pretty picture here either on this first day of the second quarter. we see some positive patches here in the chinese markets. we'll get to those in a second. starting over at the nikkei, closing below that 17,000 handle, extending their losses

yet again. down more than 3% on that data, on that survey coming out of the bank of japan showing that business sentiment among large manufacturers dipped to their lowest in nearly three years. big firms also cutting their capex plans to start this fiscal year. when you combine that with the other weak data that's come out over the last few days, you talk about industrial output, retail numbers also down, certainly adding to pressure to prime minister abe to introduce some kind of fisca stimulus to get the confidence back up, to get these companies spending again. also, cementing the sentiment within the markets that the bank of japan's negative rate policy simply hasn't worked. the nikkei 225 you saw ending the day in negative territory there. not just on the survey though, but also on the currency. the japanese yen strengthening against the dollar again, coming in around that 112 handle. you look at how the index has done so far this year, down more than 10%. we're seeing some positive news

out of the chinese markets today with the pmi index coming out better than expected. certainly adding to hopes that the manufacturing sector may have finally bottomed out. but that was overshadowed by news that s&p downgraded china's sovereign credit outlook. the rating agency cut the outlook from stable to negative, though it did maintain that doubaa negative rating. factory activity picked up in china to 50.2 from 49 in march. overall, china and hong kong stocks fell more than 1%. back to you. >> thanks for that, akiko. have a great weekend. and akiko was just mentioning the ratings actions when it comes to downgrading china. the vice minister saying the s&p outlook downgrade overestimates the difficulties in china's economy. the vice finance minister also

saying that the downgrades underestimate china's ability to counter risks. there you have it. china's vice finance minister really rejecting some of the ratings action we've seen. meanwhile, the big data point in foe kaus today, of course, will be the nonfarms preview. the dollar is holding steady after falling to its lowest level since october. this all comes ahead of the big jobs report for march set for release at 14:30 cte. the median increase is for 213,000 jobs. while strong, that number is expected to come in below february's huge reading of 242,000. joining us now here around the set in london is rob mccreery, founding partner at libra investment services. pleasure to have you with us. what a quarter it was. >> yeah. as we were just saying off air, that is about as crazy as it gets. >> almost seems like an april fools' joke, keeping with our holiday today. i want to get into the next data point everyone will be watching,

which is the nonfarm payrolls report out of the u.s., coming after what some more sooperceiva dovish statement from janet yellen. if we get a stronger than expected report today, does this provide even additional downward pressure to this month? >> yeah, i think the biggest problem recently has been trying to tie in understanding what is happening with the economic data, understanding the rhetoric from central banks, and then the currencies as well. so up until last week, we saw the dollar beginning to strengthen. we saw some weakness beginning to come in through commodities, commodity-related stocks. on that statement from janet yellen, everything changes in a heartbeat. all bets are off all the sudden. i think it makes investing exceptionally difficult at this moment. >> how does that play out in your view of the mining firms here, the commodities linked stocks? with this uncertainty still weighing on the so-called central bank put, both from the fed and here with the ecb, are you reluctant to get into some

of these mining names? >> ironically not now. we have been since the beginning of the year. i know they rallied strongly. but they rallied off extremely low bases. at that moment in time, i don't think anybody knew what they were worth. they sold them into oblivion. now they've bought them up the other way around. we've seen a bit of a selloff lately. now we understand where the value trends are for these companies. although they're not particularly attractive, at least now you've got some sort of correlation, relevant correlation, between prices and value. at this moment in time, i think given an opportunity to buy every now and again, i think we'll take it. we did that last week when we started buying rio tinto. >> is that your preferred name in the sector? >> yeah, just because it's screened better for us than anything else. obviously there are people who believe it's not what we do. in actual fact, we picked it up

because it screened better than anything else. this morning when i was writing the note, i noticed another is now screening. so this is becoming a trend. >> when we look at the relief from emerging market linked firms, especially when we look at the asset managements. do you think this rally has legs? >> i have to say, i think it doesn't on the basis that share prices have already discounted very quickly an improvement in sentiment as far as emerging markets are concerned. no sooner do we sense that the dollar starts to move and these stock just race up 10% plus within two days. so i think stocks get ahead of themselves extremely quickly. it will be a question of being patient. seei ining what happens to stoc prices now, and then take a view from there. >> a lot of wait and see on the

macro factors. we're already on the verge of another earnings season. >> what we do is we look at analysts' expectations data, and we draw our conclusions on value trends from that. actually, there's a sense there's stabilization here. there's a sense that we may even begin to see a slight pickup. actually, it's still very muted. and actually, that was the problem we saw in the beginning of the first quarter when everybody said, well, where's the growth? and there wasn't any growth. >> fundamentals themselves haven't really changed. >> there wasn't anything to invest in. then sentiment and risk took over. before you knew it, we were sort of spiraling south. so i have to say, as we stand here looking at markets, we wouldn't anticipate things getting any better. we wouldn't necessarily anticipate markets going higher until we come out of this earnings season. >> is flat as good as it gets then? >> i think flat is as good as it gets in terms of value trends.

it's what happens around that, that we now need to be vigilant. >> all right. well, rob, thank you very much for joining us. that's rob mccreery, founding partner at libra investment services. get in touch with us. we want to hear your views as we kick off the month of april. what are you expecting for markets? our address is streetsignseurope@cnbc.com. you can get in touch with us directly on twitter as well. the show handle i is @streetsignscnbc. and reach me directl directly @nancycnbc. so much to come here on "street signs." tesla unveiling finally a more affordable model. a lot of hype around this one. but will it be enough to get people racing to its stores? stay tuned. we'll have all the details after this short break.

welcome back to "street signs." china's anbang has walked away

from its $14 billion offer for starwood hills hotel in order to avoid a drawn out bidding battle, this according to one of the insurance groups. this all coming from reuters. now, other media reports just that anbang was struggling to obtain deal financing. anbang's withdrawal opens the door for marriott to proceed with its bid. starwood shares dropped by over 4% in after hours trade. and the big event we've all been waiting for came as tesla ceo elon musk unveiled the much anticipated model 3, which will go into production in 2017. musk said that over 115,000 people have already paid a deposit to reserve the latest tesla. we now know that number has reached over 130,000. now, the new vehicle can fit five adults, get to 60 miles an hour in under six seconds and has a minimum range of 215 miles. the price tag as expected comes in at $35,000.

speaking at the unveiling near los angeles, musk had a message for all the doubters. >> even the base model 3 will do 0 to 60 miles an hour or 0 to 100 kilometers an hour in less than six seconds. at tesla, we don't make slow cars. we just don't. >> joining us now for more reaction is autos analyst at evercore isi. great to have you here. there's been so much hype around the tesla model 3, and yet they're really exceeding the hype when we look at the actual orders here. what exactly were investors expecting, and how much has this launch gone above that? >> yesterday we actually conducted a survey of around 80 investors. the average expectation for model 3 orders was only 55,000. in fact, cumulatively by year end investors only expected 117,000. so to have achieved north of 130,000 in the first 24 hours

clearly is way above where investor expectations lay. >> a strong beat when we look there, but as we were discussing, it takes about $1,000 to put down for the order. on the surface of things, within 24 hours, that's a remarkable number. but i want to get into the other element here, which is the giga factory and how crucial the model 3 is to the success of that factory. can you tell us more about that? >> clearly a large percentage of that is going to go to the tesla vehicles. within that, tesla are looking to produce 500,000 supplied by the giga factory. we would expect north of 300,000, close to 350,000 to be model 3. >> so that kind of scale will undoubtedly bring down the cost of some of these battery packs. how important is that to the

actual stock performance here? because a lot of investors who are reluctant to invest in tesla are concerned about the cash burn, the great level of investment. >> it's hugely important. one of the arguments we've always made with tesla is effectively they are subscale. so the gross margins on the model s have been around 25% to date. that's extremely strong for a product which is really only sells about 50,000 units per ann annum. one of the things we find attractive is tesla's promises on battery cars aren't built around technology that are difficult to determine. it's really just down to the company achieving economies of scale, which is what drives the auto industry. >> speaking of some other oems here, how are they reacting to this launch? we know production for the model 3 is still more than a year out. yet, you have to wonder if audi, bmw, even chevy with their volt are standing back saying, wait a minute, this could really impact

us. do you think that's a real concern there? >> i think it is a concern. i'd be extremely surprised if this morning other oems aren't looking in detail at what tesla are doing and what they've achieved. we can't think of any other auto product ever which has seen north of 100,000 people put down a thousand pound deposit 18 months before they'll take delivery and in many cases even before they've seen the reveal of the specification of the car. >> and just the sheer visuals we had of people lining up outside tesla stores. i have to wonder what that means for the tesla sales model. we know, especially in the u.s., they've been putting great resistance up towards the traditional model of selling with dealers. if they can make this mass-market car a huge success, does that build additional pressure on that dealer model? >> i think it endorses the dealer model that they actually have. a lot of people will testify that one of the worst parts of buying a new car is the dealer experience. so being able to go directly to the company and get the customer

service directly from the company is hugely appealing to a lot of consumers. >> and looking back to the stock performance here, there was a lot of buying ahead of this launch. do you think now we could see some selling, or will it continue to be positive for the stock price, considering that we've had a pretty significant rebound from the mid-february lows? >> yes, i think the big beat toward expectation really suppresses those bears out there who are really questioning demand for tesla products, in particular tesla's ability to appeal to the mass market. the numbers we've seen in the last 24 hours would suggest the product has huge appeals to the mass markets. there's tremendous brand equity there. they've attracted 100,000 orders on this car, yet they haven't spent a single dollar on conventional, traditional automotive advertising. >> and what is your rating on tesla then? >> we have a buy rating, a target price of $310. >> $310. so currently about $220 to $230. all right.

george, pleasure to have you with us. and u.k. house prices rose at their fastest pace in over 12 months in march. up 5.7% according to nationwide. joining us now for more on that data is gemma actin. not only was there a sharp increase, but better than many expectations on an annual base at a time when a lot of people are wondering when the housing market will cool here. walk us through the key points. >> i would think it's really important to look at southern versus northern england. the question really is -- because quite clearly london drives southern england. this is the 28th consecutive quarter where southern england price increases have outpaced that of northern england. we've had some comments in the market recently, notably out of sables this week, that the prime london market is going into reversal. so the top end of london property. the question is whether that would feed through enough to affect house prices.

that doesn't seem to have been the case at all. >> london the key story here then. we know that the government is putting through new measures to try to cool the market, especially at the higher end level. those, of course, kicking in here in april. so when we look at this data, some of this due to people really speeding up their purchases, bringing them into march, if you will. >> there's much evidence in the market to support that. firstly, the bank of england. their mortgage approval data shows january and february for this year is at the highest point in two years. and indeed two years ago, that was the highest point ever. suddenly seen in terms of the financing that's suggesting that. we've also had suggestions from the surveyors that they've seen a ton of activity recently, and they're expecting a slowdown according to their surveys going forward because exactly that reason. some purchases may have been front loaded. >> so there's the tax changes when we talk about the stamp duty. also some measures going into place to try to reduce the buy to let situation here, to try to make that an easier environment.

some criticism that the measures aren't going far enough. what is the real effect we're anticipating? >> it's very difficult because what the government would really like to do is to target landlords but not necessarily own occupiers and certainly not hit renters. the question is, will the changes that are happening that are directly targeting landlords feed through and have negative knock-on effects on renters. this may indeed happen. if landlords are having to pay more to acquire the properties, it's likely they'll put up the renting charges, thereby hurting renters and making it difficult for them to save for a deposit. furthermore, if there is a negative effect on house prices, that would also obviously consequently hit occupiers. >> sure. and the other thing people are watching is perhaps those trying to get into the market, get their purchase underway before we get closer to the eu referendum. some concerns that the brexit threat alone could have a real effect on the housing market. is that something you're seeing? >> it certainly is, but it tends

to be the opposite effect. people are so nervous about brexit and what it might entail, they're actually postponing. we've seen evidence of brits buying into europe and people from outside of the u.k. buying into the u.k., asking for clauses to be inserted in contracts saying that if the brexit goes ahead, they can either withdraw entirely or move down the purchase price. >> so looking for safety there amid the uncertainty. gemma, thank you so much for walking us through that data. meanwhile, we're looking at live shots now of emergency crews that are clearing debris from the overpass collapse in india's kolkata. an ongoing situation with emergency crews on the scene there. still to come here on "street signs," well, rousseff on the ropes. the leader vows to fight against impeachment. your path to retirement...

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welcome back to "street signs." i'm nancy hulgrave, and these are your headlines. data dull drums as the nikkei sees heavy losses, triggering a selloff in europe. zurich insurance leads the way lower amid reports it could buy old mutuals italian wealth management unit. britain's loss could be a gain. tata eyes a stake in the german steel unit after announcing plans to exit the u.k. china's anbang backs out of its bid for starwood hotels. >> even the base model 3 will do 0 to 60 miles an hour in less than six seconds. at tesla, we don't make slow cars. >> elon musk unveils tesla's

highly anticipated model 3. at $35,000 a pop with orders now surpassing 137,000. z good morning and welcome back to "street signs." we want to give you some data breaking out of the u.k. for march manufacturing. that is on pmi with a reading of 51 in march. that compares to 50.8 in february. so a slight uptick from the previous month. that also compares to a reuters poll of 51.2. so the manufacturing pmi for the month of march coming in just shy of forecasts but more or less in line there. as you can see, sterling/dollar relatively flat against the greenback at the moment. sterling, of course, one of the weaker currencies on the quarter. part of that due to concerns over the brexit threat as we get closer to that june referendum. overall, again, we're looking at

a forecast between 51.2 from reuters and 51.4 from dow jones. so that coming in just shy when we look at the u.k. manufacturing pmi. this after a strong pmi out of china. of course, the big data point on everyone's mind today will be the u.s. nonfarm payroll report as people still try to figure out exactly what is going on within the fomc in terms of their future rate hike plan. let's give you a look at how u.s. markets are set to open. as you can see here, looking at softness across the board. you'll remember the nasdaq was the only major market to end the quarter in negative territory yesterday with the s&p 500 and the dow jones making a remarkable comeback. in fact, the dow jones looking at its biggest comeback for a quarter all the way back to 1933. so you've got to remember when we had those february lows there, huge comeback for u.s.

markets. let's give you a look again at the european markets here. it is the first day of trade for april. this softness is continuing. we saw the stoxx europe 600 end the quarter in negative territory yesterday. off by 1% or more. the xetra dax lower by 1.5% along with the french cac 40. the ftse mib lower by 0.8%. let's give you a view of how this is playing out into the sectors one by one. all major sectors in negative territory here. we did see basic resources blip into positive territory just briefly. now back in the red. insurance weighing to the downside. we'll take a look at zurich insurance, which is dragging there. household goods off by 1.8%. oil and gas continue to be on the back foot, off 1.7%. this going in line with just a slight negative move in crude prices we've seen. we have brent crude back above that $40 a barrel level. mean while, donald trump has

now pledged to, quote, bring the republican party together. this after a surprise meeting with the party's chairman, reince priebus. let's get out to nbc's ed lawrence, who is standing by in washington. ed, we've been watching these various meetings with republican leadership. what do you know about this meeting? >> reporter: we know that the meeting was about unity. donald trump is trying to look like the presumptivive front runner that he is. he talked about unity within the party. there's an opening that other candidates sense now because of donald trump's, what he calls a misstatement about women, saying that women need to be punished for having an abortion. the other candidates are now piling on. governor john kasich is now criticizing donald trump, something that he has not done in the past. so trump is trying to now turn the attention again. while in washington, donald trump also met with his foreign policy advisers.

he also stuck to his stance on nuclear weapons. trump says his advisers all agree unanimously that you cannot take nukes off the table when you're president. pivoting a little bit, meanwhile, on the democratic side, hillary clinton is trying to show that she is the front runner, turning to try and attack donald trump, but she still can't shake bernie sanders. bernie sanders hitting hillary clinton about her campaign contributions, specifically the amount of money she's collected from wall street for those speeches there. so both the front runners on the republican and democratic side would like to shake off the competition, but that competition just won't give up. nancy? >> ed, thank you for that report. that's ed lawrence, nbc news, in washington. well, speaking exclusively to cnbc, canadian prime minister justin trudeau gave his thoughts on the race for the white house. >> what makes an open and free society is the defense of the principles and values that lead

us to be an open and free society. i think that in times of elections, there is often polarization around discourse, but i have tremendous faith in the american people and in the american political process. >> and you've said before that you will work with whomever wins the white house. but this seems to go against all of your ideology. how do you find common ground? >> you know what, the common ground between our two countries go far beyond any individual relationships or even leaders. we have an extraordinary integrated economy, goods and services and individuals flow back and forth across the border for work, for family reasons all the time. we know we have a great relationship that is indeed a model for the world, and we need to continue to work on that, and that will be a priority for whoever occupies the white house like it is for any canadian prime minister. >> well, when we look back at the quarter, the quarter that was when we talk about all this

volatility, it may surprise you that brazil's bevespa was the best performing sector. a lot of people wonderingfinalle a change of leadership. we wanted to look back over rousseff's second term in office. re-elected in october of 2014. that already was by quite a narrow margin there. shortly after that time, we got news of the police raid. a lot of her fortunes in the second term have been closely tied to this operation car wash, the massive scandal investigation that is still under way in brazil. in february 2015, it all kibcke up a bit when the ceo was forced to resign. you'll remember rousseff served as chairman at one time. then things got more concerning

for the government in march 2015 when nearly a million people took the streets across brazil to protest. this, of course, raising pressure on the government to take action. a more aggressive posture when it comes to this investigation under way in the country. and if we can fast forward to december in 2015, congress actually decides to launch impeachment proceedings against the president. now, this was separate from the investigation into the corruption car wash scandal. this tinkering with the budget. that is a proceeding that's still under way. then we come to more recent history. on march 4th, 2016, former president lula de silva who had been celebrated by the country, is detained. that sends shock waves around the country. also a concern for his close

ally, president rousseff. just a few days later, lula is named chief of staff by the sitting president. this was seen as an attempt to kind of get him out of prosecution, out of the legal system. then again, that was rejected on various grounds. then it all hit off again. march 28th, just a few days ago, when the pmdb party left the coalition. that was seen as a major obstacle for president rousseff. yet, this case is far from over. just over the last few days, we have seen tens of thousands of pro-government protesters taking to the streets of brazil in support of rousseff. lula de silva also in focus here. he's been calling the impeachment proceedings against rousseff a coup. >> translator: brazil is living in a historic moment. on the one side are those who want to run over democracy, approving an impeachment without legal base. the president has not committed

any crimes. impeachment without legal base is a coup. in the streets, in the school, at work, on social media, in churches, the brazilian people are showing how much they value democracy. >> joining us now for a look at brazil is the head of emerging market research at commerce bank. peter, thank you for joining us here. brazilian assets, a key focus, especially as we got to the end of the quarter there with all this action kicking off against the brazilian government and questions surrounding rousseff's position. when you look at the moves we've already seen in th real against the dollar here, is it as good as it gets? do you think investors have been premature in accepting an end to her administration? >> i think we've basically priced in near perfection at the moment. a huge rally in most emerging market currencies. that's largely been a dollar story, as a result of markets repricing the fed. but from here, if we look at the

particulars of the real rally, certainly there are some things to say. you've got external accounts which have adjusted. so there's some good reason there is to actually become, let's say, less bearish on the real. that said, i think at the moment markets are getting ahead of themselves. i would certainly think about taking some profits at current levels. >> you make the point it's not just about the political situation in brazil. we've seen similar moves in singapore. yet still, when we look at the equity space, there does seem to be this sentiment of an anyone but dilma vote as a positive thing for markets, which strikes as a curious situation, when that does not ensure any sense of stability. >> i think what investors are missing in that regard is if we have a change of administration, that basically implies we're

going to see pretty severe austerity measures brought in, which haven't been brought in here before. that basically implies lower government spending and more fiscal rectitude. how that's a positive thing for equities is a mystery to me. i don't see how that works. >> i suppose on the other side, you could say at least it gives some sort of conclusion to the situation. at the moment, with the government, with the president so tied up in this case, with the impeachment proceedings under way, there's a concern that nothing is et going done in the country. >> and that's a very fair point. nothing has been done for quite some time. that's really, i would say, the main point of the last five or six months. as long as this scandal has been going on. you have not actually had a government that's been able to make these difficult decisions because all their time has been taken up with the various scandals and so on. that's an entirely fair point. >> on the restructuring side, and also we have to think of these construction firms who basically have their hands tied among those who are under investigation. but i want to get your thoughts

on the situation around the central bank as well. we've heard some concerns that perhaps the government has too much influence on the central bank. just yesterday we heard the central bank saying they don't see a case for starting to cut rates here. >> i think they have a fairly difficult job in this respect. if we look at the inflation profile, it's starting to decline. there's a reasonably good case for starting to cut interest rates in brazil. that said, if the central bank come out now and say, okay, we want to cut rates immediately t kind of would look very bad from their perspective because it would look like there's quite a lot of undue government influence. my view would be they'll want to see sustained consecutive declines in cpi for at least another three or four months before they even consider cutting rates. but probably engaging in a rate cutting cycle by year end is not an unreasonable thing to say. >> so the stronger real gives them some wiggle room when it comes to the inflationary pressures, helping out a little. again, this depends so much on what the federal reserve does when we talk about the dollar trade. what are you expecting from the

fed? >> two rate hikes from the fed. one in june and one in december. if we look at markets, they ascribe a 3% chance to an april hike. it's kind of -- that basically makes june a more binary call. not only is that the case for this year, but next year you can see the dot plot has declerease as well. what that's saying is this fed rate hiking cycle is going to be a modest one been that's good news for emerging markets as a whole. >> all right. we'll get your thoughts a bit more toward the end of the show because we're going to be looking ahead to the all-important jobs number. meanwhile, u.s. president barack obama called on his nation's allies to stand united against nuclear threats from north korea. this after meeting with international leaders at a nuclear summit in washington, d.c. john harwood filed this report. >> reporter: president obama and chinese president xi jinping met at the white house today. their main top you can was

nuclear security, which has brought leaders from around the world here for a two-day summit. that's a shared concern for china and the united states in particular because of the nuclear program of the unpredictable regime in north korea. the two leaders also discussed their efforts to combat climate change and big subjects they disagree on like cybersecurity and human rights. >> we'll have a candid exchange on areas where we have significant differences, issues like human rights, cyber and maritime issues. like china and other countries, the united states has significant interests in the asia pacific region. we have deep concerns about our ability to protect the intellectual property of our companies, and we care deeply about human rights. >> reporter: white house aides called this meeting another step in the high-tempo engagement

offici with officials. back to you. still to come here on "street signs," a very happy birthday for apple. the company turning 40. and in order to celebrate, tim cook is showing off his best sales techniques at an apple store in california. we'll have more on that story after this short break.

welcome back to "street signs." let's bring you up to speed on some tech earnings here. huawei's 2015 revenue jumped 37%. that's the biggest rise in seven years. its consumer devices division led the charge with nearly 73% growth. they shipped more than 100 million smartphones just last year. this comes despite a slow down in the broader chinese market. the company has attributed the strength in its carrier business

to heavy investment in his core business. and apple is 40 years old today. in that time, it has shipped nearly 1.6 billion computers and is responsible for about 2 million jobs in the u.s. alone. the company went public in 1980, and on a split adjusted basis, the stock has gained 28,000% since its ipo. josh lipton looks at some of the new apple products in store on this birthday. >> reporter: he's an engineer by trading, but apple ceo tim cook is also a skilled salesman. he was here today putting those skills to use here at this apple store in downtown palo alto, california. he was here talking to customers, posing for some selfies. obviously talking about the new products. the star of the show today that we've been talking about is that iphone se. small, powerful, relatively cheap at $399. cook is targeting a few different groups with this new device. one, we know there are apple iphone fans who just prefer that

four-inch form factor. at $399, it could also appeal to more price conscious consumers. i'll also tell you guys i caught up to android fans. they were at the store today. they heard about the se because they're thinking about making the switch now to apple. >> for the products, i think it's really cheap. it fits better in my pocket. i use the phone basically also for everything i do, like going skiing or going running, going biking. the smaller size fits better in the pocket. >> reporter: now, i'll tell you guys, whenever i do talk to ceo tim cook about the health of the iphone franchise, he does bring up that record number of android switchers he's seeing. so maybe he thinks he'll convince a few more android fans to make that switch today. back to you guys. china's anbang has walked away from its $14 billion offer for starwood hotels in order to avoid a drawn-out bidding battle. well, i think the big question

here is why now, why the decision to back out just days after increasing the offer. >> reporter: exactly. such a surprise move. anbang pulling the plug on its bid for starwood after a three-week-long bidding war with marriott. so it raised a lot of questions. overnight in a statement, anbang said that it made this decision due to various market considerations. today in china, we got a little bit more clarification. that is because one of its funding partners, a private equity firm called primaer ha v said it didn't want to be caught up in a long, drawn-out bidding battle. he reassured people saying the company does have a large financial position, but at the same time, he said they only want to pursue these deals at the right terms. now, there have broadly been questions among investors about the funding of anbang. the problem that a lot of people

have is that they just can't verify the sources of these finances. so the company here in china as well as in other parts of the world has this reputation for being very secretive, highly connected politically. in fact, the chairman is married to the granddaughter of the paramount leader here. in fact, the chairman was trying to address some of those concerns by talking to the chinese media this week, saying that anbang has well over 1 trillion in assets. still, investors are very concerned about the murky financial structure that this company has. >> thanks for that one. that suggests the story is far from over. you can bet it'll be good news for marriott as we look to the u.s. open. thanks for joining us and have a great weekend. let's give you a check on the nikkei. we did see a sharp selloff in the nikkei today in the japan trading session. off some 3.6%. this actually sinking to a one-month low.

it was a pretty tough quarter for the nikkei. so this will not be good news for investors in that market. a lot of this driven by negative sentiment after the business confidence survey painted a much gloomier picture than many had hoped, suggesting that sentiment among the big manufacturers in japan worsened in the first quarter of 2016. the index actually halved to the level of six, down from 12 at the end of 2015. we had seen a lot of yen strength in recent days, following the dovish comments from janet yellen, which pushed the dollar lower. now the dollar paring back just nearly 0.2% after that survey. zblshlg well, let's give you a look at how u.s. futures are calling the market today. we have the all-important jobs number ahead. as you can see looking at a bit of softness across the board. predicting just modest losses at this stage, with the s&p called lower by about three points. the dow jones called lower by 19. the nasdaq off by 11.

the nasdaq the only major market in the u.s. to miss out of positive territory on the quarter there. we did get a remarkable recovery, especially from the dow jones on that quarter. going back to the biggest comeback since 1933. well, taking a closer look at what investors are waiting on today. the dollar is now holding steady after falling to its lowest level since october. this ahead of the nonfarm payroll report for march, which is set for release at 14:30 cte. dow jones median forecast is looking for an increase of about 213,000 jobs. while strong, that number is expected to come in below february's huge reading of a 242,000 increase. peter is still with us. we were just talking about your various fed views just before the break there. as we look to this jobs number today, a lot of people will be wondering, does it make a difference in that rate hike timeline? >> in my mind, it doesn't, if i'm brutally honest. i think the problem here is it's one thing to come out and say,

look, we have decent job growth, et cetera, unemployment is where it is. really what we want to know is, okay, what's happening with wage growth? that's really been the missing ingredient, i would say, in this recovery in the last couple years. i think the fed would really want to see sustained pick up in wage growth before we reconsider the rate hiking path we have present. whether it has a big impact is a different story. >> wage inflation crucial because when we did hear janet yellen delivering what many perceived to be a more dovish statement than expected, she, too, said we want to see if the inflationary factors stay with us. are they prolonged? do they have lasting power? a lot of this depends on the oil price. we just heard from the bank of japan president saying the inflation situation is so closely tied to oil. what is your view on the oil price going forward? >> i think we'll see a little pullback. we've seen a decent recovery in the oil price from roughly $26

per barrel. if you look at it, that was mainly market sentiment story. it wasn't as if the supply/demand economics changed in a material manner. i won't be surprised to see the oil price come off a little over the coming days and weeks. more interesting on the inflation side, if you look at what's happening with inflation expectations, they're very, very low and continue to remain very, very low. if i was on the fed, that to me would be a much bigger concern. >> do you think that's unfair to say this is entirely an oil story or largely an oil story? there are other factors at play here. >> indeed there are. i think if you look at the trajectory of inflation rates over a much longer term, it's clear we're seeing a secular decline in inflation. i don't really get in a world of very, very low growth why central bankers as a whole are so worried about inflation. >> and when you look at the dollar index here, what is your view, if we get a stronger than forecast nonfarms payroll report? will any rally be short lived, or does it have staying power? >> i would say it's definitely going to be short lived, if you

even get that. if you get a weaker than expected payroll, markets will really sell the dollar more aggressively. >> does the bank of japan have a problem on its hands when we look at the dollar level here? a lot of disappointment in that survey probably comes down to fears over the yen's strength. also, they're battling with emerging market softness, which is an area you look at closely. >> about 60% of japanese exports go to emerging markets. that's a big area of concern for them. i think that the broader problem that the japanese has is this broad reinflation story. we've had this abenomics story, and it's spectacularly failed to increase any kind of underlying inflation. the question for investors, what's the next policy innovation from the boj? they've implemented this very tepid negative rates policy. what's next? are we eventually going to talk about helicopter money? that's where this debate is going to go. >> some reluctance there. just before we go, i want to get your top pick for the emerging market currencies for this quarter. >> this quarter, i would say

ruble should continue to do reasonably well for this quarter, but albeit longer term i think we see a weakening trend. >> peter, thank you for joining us. well, that's it for today's show. i'm nancy hulgrave. have a very good weekend. happy friday. "worldwide exchange" is coming up next.

good morning. comeback kid, the dow posts its biggest quarterly rebound since 1933. >> all eyes on jobs. the global market countdown to today's big jobs report. >> and power up. tesla reveals its electric car for the masses, and thousands are already shelling out cash. it's friday, april 1st, 2016, april fools' day, of course. "worldwide exchange" begins right now. good morning. happy friday. happy april fools' day. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> happy friday. il