and the dollar at a 17-month low against the yen. it could have been worse, you could say. that's the takeaway from marks &

spencer. and samsung eyes a 10% jump in first quarter profits on stronger smartphone sales. good morning and welcome to "street signs." well, this is the picture in europe after the strong rally we saw in the united states. once again, the fed really fueling a rally on wall street, but here in europe, those gains are more muted. you're looking at the stoxx europe 600 just hugging the flat line there, dipping into negative territory, up about 0.05%. yesterday it was a positive session on the continent overall. the index was up around 0.8%. let's look how the markets are faring one by one. we have seen the u.k. market get at boost. the xetra dax higher by 0.4%. similar story for the french

main market. the ftse mib in negative territory along with the spanish main market. let's get a look at oil prices. key data in the united states, surprisingly talking about the draw down in inventories. that boosted energy prices overnight. wti crude still in positiver it, up now just about 0.3%. brent crude pushing higher by just about a quarter percent, holding just below $40 a barrel as well. let's get you a view on that data point which really got the equities rally going. that was the fed minutes out yesterday as rate hike expectations once again have been pushed out. this following the minutes that showed only one policymaker voted for a rate hike in march. while any hopes of an april rise now seem to be off the table as well. the minutes also revealing that the fomc thought that, quote, raising the target range as soon as april would signal a sense of urgency they did not think was appropriate. of course, these minutes coming

after we heard janet yellen just last week saying they want to proceed cautiously. altogether not a different message than what we had heard from janet yellen. just reinforcing a lot of dovish expectations stateside. that of course boosting the equities markets and having an impact on the dollar trade, as we were just discussing a little earlier. let's give you a look at how the u.s. markets closed. it was the nasdaq that led the charge, up about 1.6%. that was the highest level for the nasdaq of 2016 thus far. the dow jones closing higher by about 0.6%. that was its highest level going back to mid-march around that dovish fed statement. the s&p 500 up by 1%. well, the fed minutes the focus yesterday, but now all the attention turns to the ecb. this comes with the release of the european central bank minutes due at 1:30 p.m. cet. investors will be looking to gauge the level of support in favor of last month's stimulus package. this alongside any clues on mario draghi's next policy steps

as well. well, speaking to the committee on economic and monetary affairs of the european parliament a bit earlier, the ecb vice president expressed his willingness to tackle the eurozone inflation problem going forward. >> ecb has done and will continue to do whatever is needed to pursue its price stability objective which now implies also trying to foster growth in order to close the negative output gap that is putting negative pressure oin fla -- on inflation. however, other policies must also act to deliver a lasting and sustainable improvement in economic growth prospects. >> well, joining us now for more discussion of the ecb ahead of those minutes is otmar issing.

sir, it is a real pleasure to have you with us. thank you for joining us this morning. a lot of people looking for exactly what the central bank could do next, but in your opinion, should the ecb take any additional action? >> i wouldn't expect too much new information from the minutes. as we have seen in the past, the minutes explain in more detail what was already presented by the president in his press conference. so i think all in all, the expectations of the minutes should be limited. >> and during that press conference, many read draghi's statement to say, this is as much as you're going to get for a long time. do you think the ecb is running out of tools when it comes to tackling the low inflation problem?

>> before we talk about additional measures needed, i think we should start with the right diagnosis. i don't share this excitement about too low inflation. it's mainly the fall in oil prices, and this is a benefit for the euro area economy, which is heavily dependent on oil imports. so why so much concern? my advice would be to be more relaxed, to extend the time period over which the inflation should be brought back to target, so the focus should be on that and not too much excitement on monthly deviations in the expectations inflation rate. >> does that mean you think the ecb has already gone too far with their extraordinary measures? >> i think the last measures can be debated a lot. i think, for example, buying corporate bonds is another step of selective measures.

who decides which bonds should be bought, which not. i think this is a dangerous field for monetary policy. we should not discriminate between different kinds of assets. . >> so the expansion into the bond purchases perhaps dangerous in your view. how do you feel about going further into negative interest rates? is that also a dangerous experiment, in your opinion? >> there's not much room left. the smith's national bank has gone farther so far, and i don't think the ecb will go in deep negative territory. this will open a new scenario, which is really unchartered waters. i would not expect the ecb would go further in this direction, but it's up to the ecb to decide, of course. >> once again, we've heard from an ecb member in this case saying that monetary policy

can't go it alone. they need more help on the fiscal side. but what will it take to encourage governments to step up on the fiscal efforts? >> you know that the fiscal situation in some member states is still dire. debt ratios have not really come down in some countries with high depth. so there's limited room for maneuv maneuver. it's not so much a question to spend more money but to spend money more wisely. the managing director, christine lagarde, two days ago gave a speech in which she referred to a study by the fiscal department of the imf in which their search delivered clear results that it's much more important to increase the efficiency of public spending and not so much the sum which is spent by

governments. >> to what extent do you think there's a division now? will the minutes reveal perhaps disagreement among the hawks and doves here when it comes to the decision we had last month? >> you would not expect me to comment on that as a former member of this group. i think i will not go in this territory and speculating about hawks and doves. it's enough i was called a hawk. so leave it to that. >> all right. well, thank you very much for that view, and we'll take that into consideration as we await those minutes breaking here at 12:30 local time. that's the former chief economist at the ecb and now president of the center for financial studies. we now want to bring you some breaking lines coming from peter prett, the chief economist over at the ecb currently. he has been saying that the stimulus can be ramped up to fight new shocks. this is a line we've heard from

him repeatedly. the ecb is running out of tools, they're saying that's not so. we have room to go further. however, he has issued a warning on the persistence of negative rates. saying is for two to three years if these negative interest rates were to exist on that time horizon, then that becomes quite worrisome for the banks. of course, that's a line we have heard from several banks across europe, warning on the negative impacts of negative interest rates. now we want to bring you up to speed with one of the biggest trades this morning. that's what's happening with the dollar-yen. after the fed minutes we had, another dovish view, the dollar continuing to lose ground. off now by about 1% against the japanese yen. that, of course, is not good news for the japanese korp corporates. let's get reaction from sri in singapore. great to see you. walk us through exactly how the asian markets are perceiving this move. >> yeah, let's start with japan and tokyo equities.

quite right to highlight that one, nancy. we are seeing a continued move lower below that 110 handle. a lot of people saying that 110 is being valuated on the dollar-yen. some saying look out below. quite right it's having an impact on corporate japan. look at where the yen is right now. we're below 110. we're below 109, in fact. this is very bad news for corporate japan, for corporate profitability, especially for companies that have an externally facing business. so there are issues. interestingly, that correlation still firm between a stronger yen and a weaker market. the fact that some defensive sectors rallied today seemed to draw the sting from the overall impact. flat on the day, let's call it,

for the nikkei 225. the real loss leaders were in mainland china. equities under pressure because of a three-month ban on share selling. that expires tomorrow. the market trying to front run the idea that we could see a barrage of selling on the market. also front run the idea of softer economic data. quite a fragmented market. not a great deal of conviction in either direction. back to you, nancy. >> thanks for that one, sri. for another view, let's bring in the managing director and head of g-10 fx research at credit agricor. i want to get your view specifically on what we were talking there with the dollar-yen trade going on. do you think 105, 100 is even in reach here? >> you mentioned central banks. i think in the case of dollar yen, it's really the lack of policy activity investors are betting on when buying the yen. the yen seems like such an attractive currency at the moment just because investors

believe the boj is out of options. an fx intervention seems less likely for the time being. at the same time, we see support from exporters having to hedge their dollar exposure by selling dollar-yen. so the combination of those two facto factors. in terms of levels within that to the extent the yen is still seen as undervalued and ppp value will give you something like 105, 100, there may be still some scope for further outperformance. it's quite important to note that on previous occasions where the boj on behalf of the ministry of finance was intervening, the yen was quite overvalued. so there was a justification for their actions. at the moment, it seems like given where yen is, there may be less to stand in the way for further outperformance, at least

in the near term. further down the line, we have obviously the boj meeting at the end of the month, presumably further fx appreciation will increase chances of more aggressive policy action. >> and it's interesting you note that investors are perceiving the bank of japan is running out of tools because we also heard from kuroda this week saying we still have the tools. so where is the disconnect? is this simply their way of talking to the markets? >> two things. one is negative rates were seen as a central bank tool to cheapen the currency. one reason the euro is so strong is actually the assumption that investors make that the ecb has hit the target of the negative rates. a big chunk of, say, the household wealth in japan represents deposits. so further cuts in the deposit rate may trigger a negative wealth effect, which could

derail the recovery. they assume that qe, in terms of boj's ability to expand their balance sheet, is certainly not available anymore. we disagree with that. we think the boj will result in direct purchases of stocks. really, nikkei stocks. that will give them the opportunity to really boost their balance sheet on a sustained basis for many years to come. as a result, i think the results price action could indeed trigger a rally in the nikkei, which will be accompanied by selling of the yen. >> does that happen as soon as this next meeting? >> depending on the price action in the japanese yen and presumably if, indeed, the selloff in the nikkei, which just came to a hold. but ultimately if that selloff continues, we cannot exclude more actions being taken as soon as april 27th. >> let's go back to the ecb.

we are waiting on the minutes today. you touched on that. perhaps the ecb is watching the negative interest rate experiment in japan, noting it's not having much effect. looking at where the euro level is now, what is the ecb to do next? >> a lot of plans do think if we move toward 116, there will be some sort of form of verbal intervention. if anything, the euro is still a significant driver of the headline inflation, at least for now. if anything, i would think that may come or there may be some indications of that to come before long. today i think the minutes will be interesting to see to what extent we had consensus on the easing measures from here. i guess the discussions of further accommodation need not be asked concrete or the details may be missing to encourage a sustained selloff in europe. >> just quickly, do you agree with our previous guest, the

former ecb economist saying low inflation is not as bad as many fear? >> the thing what the ecb is hoping now, with the measures they took, clearly they shift away the focus by trying to support the recovery and domestic demand by propping up the credit channel. the thing is that worked only for a couple of days. right after the march meeting, bank stocks rallied. indeed, the banks are the ones that should be supporting the domestic demand recovery. the fact is, however, that since then, they've been selling off. i guess that's not really the verdict. the market's verdict the ecb was hoping for. miss point is, if indeed that policy was not to succeed -- i wouldn't call it fail, but let's say it doesn't succeed in due course, the ecb will give it

some time. three months from now, if banks are still not lending and stocks are under pressure, the ecb may have to once again resort to weaker currency to boost growth and inflation. so we're not done yet. >> all right. fantastic to have you with us. we want to hear from you on the ecb, on the fed. the great central bank debate. e-mail us. the show address is streetsignseurope@cnbc.com. and you can get in touch with us on twitter. that's @strtsignscnbc. and get in touch with me directly. we'll be reading your questions and responses. still to come here on "street signs," while the new m&s boss steve roe hands in his first report card, and we'll find out how the retailer fared. stay with us.

good morning and welcome back to "street signs." let's bring you an update on one of our top corporate stories today. that's marks & spencers. clothing sales fell less than expected. joining us now for more analysis is tony shiret, senior analyst for food and retail at haitong. investors liking what they see here, but as you pointed out, it's really game on for the new management and exactly what they can do to improve the general merchandise division. what are you expecting? >> i think figures today are really not so much about the new manager because he only took over fully a couple days ago. but he was sort of in charge of executing figures across this quarter, working to a strategy that was set by the previous ceo. you get some early signs, but we're not really going to know

very much about his specific strategies until in may when we get the prelims. but there's enough in here, i think, for people to be happy. fist of all, numbers were not as bad as expected on clothing. minus 2.7 in the quarter. food was okay, flat. big market share increase to 4.3% of the market. and overall, profit forecastings within the market, i think, probably go slightly up for march 16th. so what's not to like about that? >> one thing investors might clue in on is m&s has still warned it's got ongoing currency pressures. what are you expecting when we talk about the food side? you mentioned that was flat, although it did come in a bit below consensus. >> that's exactly right. the food was expected to be up about 50 basis points. i sort of think that's within

the realms of forecasting error. so i didn't look at that and think, god, that's a really bad figure. it was okay. but in terms of your question about the consumer generally this year, yeah, i think we've had some indications already in terms of early year trading across the retail sector. they're expecting it to be a bit tougher. i have to say, you know, in all my time kovi covering the secto clothing does tend to go up year on year through sort of recessions and boom times. so i'm not really expecting a huge degree of variability. i think if there is variability, then steve roe is probably the right guy to be mentioning it because he's got a sort of lifetime of managing these ups and downs and knows how to run a pretty tight ship.

>> and just before we go, what's your top pick in the sector currently? >> currently it's marks & spencers, on the basis i think he's going to do a cracking job over the next two years. i think it's one i particularly like at the moment. >> what's your price target? >> 550. >> okay. thank you, tony. shifting the focus now to fintech. blythe masters is best known for helping credit default swaps at jpmorgan. those instruments which featured very prominently in the financial crisis to say the least. now she's pioneering a new product with the potential to change wall street all over again, as she says. i caught up with her at money 2020 and asked about the big

banks interest specifically. >> your average financial institution will be trying to squeeds in any given year 5% or 10% out of its cost base to reinvest in new technologies in order to grow for the future. in an environment where you are consistently and structurally returning r.o.e.s that are below your long run marginal cost of capital, 5% or 10% per annum is just not going to cut it, especially when revenues themselves are structurally depressed and capital requirements are exponentially rising. in that environment, you're looking to cut tens of percentage points of cost, and the way that this technology facilitates that is to allow institutions to imagine a fundamentally new operational post trade work flow where many of the zero value add eed functions, including reconciliation work, which

involves checking that information that's kept here is the same as information kept here, as the same as information kept here. some of that internal to institutions and some across entitie entities, for the simple reason that nobody thought to keep that information as a single shared prime record or golden source, leading to the need to reconcile these multiple instances. the reason people in the past didn't do that is you couldn't responsibly rely on other providers or other record keepers of your own precious information. >> the trust. >> so the fact that the security environment here has been fundamentally modified so no one has unilateral access means you can actually genuinely think about sharing infrastructure. that leads to the opportunity to cut 30%, 40%, 50% out of your post-rate process. well, still to come here on "street signs," wisconsin may be

over, but the new york presidential primary is just around the corner, and ahead of that, donald trump has invoked the heroicism of 9/11 to take another swipe at his gop rival. >> we all know people them who died, and i've got this guy standing over there looking a the me, talking about new york values with scorn on his face w hatred of new york. so folks, i think you can forget about him.

good morning and welcome back to "street signs." i'm nancy hulgrave, and these are your headlines. driving home the message. ecb vice president says the central bank will do whatever is needed to ensure price stability ahead of the minutes due later today. in the u.s., fed officials seem to be backing away from an april rate hike, pushing the dollar to a 17-month low against

the yen. and, well, it could have been worse. marks & spencers trade higher after clothing sales fall less than expected, but the new ceo says performance is still unsatisfactory. and samsung eyes a 10% jump in first quarter profits on stronger smartphone sales. good morning and welcome back to "street signs." well, it was another fed-fueled rally overnight on wall street with all of the three major indices ending sharply higher. let's take a look at how we're set to open. just off slightly. relatively flat when you look at the implied open here. but remember, the nasdaq did close with its highest level of

the year. so a lot of renewed optimism when we heard the fed is not even really considering an april rate hike and pushing it again to expectations that june could be the next rate hike, if any, coming from the fomc. meanwhile, this is how those gains are playing out into the european market. we are seeing continued strength on the ftse 100, up just about 0.5%. the dax higher by 0.8%. a similar move for the french main market. the ftse mib now in positive territory. we are seeing basic resources, energy, and gas back in the green. this is taking a cue from the revival in commodity prices as well. meanwhile, we continue to watch the fallout over the panama papers scandal. now we've learned iceland has named a new minister and deputy leader of the party. this comes after the previous prime minister was forced to step down in the aftermath of the panama papers offshore

finance leaks. early elections will be held in autumn. meanwhile, the u.s. treasury is set to issue a long-delayed rule forcing banks to seek the identity of people behind shell company accounts. this comes in the wake of panama paper scandal, which exposed the global wealth hidden through offshore vehiclingesvehicles. the scandal, of course, extending its reach to all sorts of corners here. this comes with the police having raided the headquarters of european soccer body uefa in switzerland. they're seeking information about a contract that was signed by the new boss at fifa. the panama papers show infantino signed off on a tv contract to two businessmen. those businessmen are now facing bribery charges by u.s.

officials. well, let's give you another check on how the dollar is trading after those fed minutes really reinforcing dovish expectations here. the dollar off some 1% against the japanese yen. that's a fresh 17-month low. we were just speaking to sri earlier about how japanese corporates are keeping an eye on this. that is not good news for their profit expectations. and raising a lot of confusion as to whether or not the bank of japan is running out of steam. the dollar still on the back foot, off about 1%. the overall dollar index is gaining ground too, but relatively flat after the gains we saw overnight. and this of course coming after those fed minutes, which have rate hike expectations now pushing out further after the fomc minutes showed only one policymaker voted for a hike in march. any hopes of an april rise seem to be off the table as well. the minutes reveal that the fomc said, quote, raising the target range as soon as april could signal a sense of urgency they did not think appropriate. in many ways, this also mirrors

what we heard from janet yellen a few days ago, insisting we need to move on cautiously when it comes to future rate hikes. i caught up with the ing ceo at the money 20/20 conference and asked him whether the negative rates policy was having a diminishing effect. >> last step was the one where they went into the other area where it is not helping anymore. now we get into such a low interest rate environment, if not a negative interest rate environment, where our consumers basically start to worry. a lot of them start to spend more. if you get negative interest rates on your savings, we think it works in reverse. you save more because you are afraid of what the future brings for you. so you actually start to save more. not necessarily with the bank. it will actually take money out of the economy. that's one. secondly, it will and it does

influence banks' profitability. that means that banks may no have sufficient capital to grow their balance sheet and give the loans that the market needs. so i actually think the last step was one step too far. >> joining us now is member of the german council of economic experts from frankfurt. sir, thank you for joining us this morning. it's a real pleasure speaking to you there in frankfurt. and you just heard there, we were listening to the ceo of the biggest bank of the netherlands saying that the ecb has gone too far. do you agree? >> well, i agree with the statement. i have somewhat different reasons why i think they've gone too far. not that the policy would be ineffective. i don't think we're quite there. we do see increases in consumption. look at germany. look at the rest of the euro area. also in the u.s. consumption is strong. but i think this policy is not

needed. if you look at a country like germany, output is at a high. in germany, gdp inflation is 2%. in euro area, it's 1%. so there's no reason to panic. that's why i think this policy has gone too far. >> and that somewhat echoes what we heard earlier in the show from the former chief economist at the ecb. he's saying there's really nothing to worry about on the inflation picture. he's pointing out the great factor that the oil price is having. if we get a sustained pickup in oil prices here, do you think the ecb will start to take notice of that? >> well, i think they'll have to. even if they focus on the cpi, once it rises, they'll have to take notice of that. they'll have to adjust. that's why i think there are

risks to the policy we have. we have now pushed the banking system into giving rates -- loans at very low rates. if at some point short rates rise, deposit rates, these banks will have problems because they'll have all these loans long term at low rates. that's the kientd of risk you build up the longer you stay with such a low interest rate period. so you shouldn't stay longer than needed. i think right now we're pushing too far and we're building up risks for financial stability. not so much now, not so much about the profitability now, but about the dangers in the future. >> given these concerns you flagged it here, do you think it's likely that we will see some sort of division here within the ecb, perhaps revealed in the minutes today? but do you think president draghi has a real problem on his hand when it comes to dissent? >> no, i don't think so, because i think the majority of the ecb

council, you know, does not agree with me. the majority of that council is, you know, pushing the policy they're implementing. they're buying now more asset, not less. they're buying lots of government assets. that process is likely to continue for quite a while until the data they look at will force them to abandon it. unfortunately, i expect these risks will continue to build up. >> and in the last decision, it was really read as the fact that the ecb was targeting more the credit markets here rather than the level of the euro. how do you perceive that? >> well, they're deploying a range of instruments. so in the last package, they increased purchases off assets to expand to private sector assets, corporate debt. they gave long-term money to the

bank. they allow banks to take loans at negative rates if they just follow fairly modest targets in terms of increasing or not decreasing their lending. so they are -- with those measures, trying to influence bank lending. but i think at the same time, they're going too far, and we don't need as much. >> and when you look at the credit area as well, there has been a great flow into the bond markets here. not just in sovereign bonds, but corporate as well. in some ways, is this exacerbating liquidity concerns when you look at a lack of supply? >> well, i'm not so worried about the lack of supply. basically what the central bank is doing, they're buying to push up prices. when the price is high enough, somebody will sell to them. that will usually happen, and people migrate to other assets. that's the portfolio balance effect they're trying to

achieve, and that will put downward pressure on the euro because eventually people migrate out and buy, you know, shift portfolios to outside the euro area. if you step back to last year, you know, if you have to do qe, i would prefer if they do private assets before they do government assets in the euro area because the euro area doesn't have a central government. back then i thought, for example, the purchases of bank bonds are less damaging because what happens with all these government assets they're buying is they influence also government's commitment to the consolidation and reform strategy. if they get easy funding, which they do now, they're reluctant to undertake political measures which are costly in political terms. >> which the ecb of course keeps demanding as well. real pleasure to have you with us, sir. thank you for joining us.

well, jamie dimon is out with his annual letter to shareholders. wilf joins us with all those details. hi, wilfred. >> hey, nancy. yes, indeed, this is his much watched annual shareholder letter. it's a little longer than normal. among the headlines from the letter, dimon says he's not worried about negative interest rates in the u.s. he's more concerned about rates rising faster than people expect. the banking ceo also warned lower liquidity and higher volatility are here to stay. he argues the fed's bank stress tests are flawed and suggests jpmorgan could absorb the theoretical losses of the nation's 31 largest banks. even in a worst-case scenario on those tests, jpmorgan would be fine, he said. as for jpmorgan share prices, dimon says he's not proud of the stock's performance over the last decade, though he notes the bank has outperformed its peers during a difficult time. now, it's also worth pointing out he did mention the political

situation, not overtly, but of course with veiled comments towards the debates going on. he says, i do not want any american to look back in 20 years to try to figure out how and why america's banks lost the leadership position in financial services. if not us, it will be someone else, and likely a chinese bank. of course, banks remain very much in the spotlight with the ongoing presidential campaign here in the u.s. nancy? >> very interesting, wilfred. strong words there from jamie dimon. interesting to note, he's also commenting on the political situation here in the u.k. and had words on brexit. >> he absolutely did. i'm particularly interested in this because so far many banking ceos, despite having a clear stake in this debate with huge numbers of head counts, they've been reticent to make clear comments, partly because they fear if they come out on either side, there might be a backlash among voters. in the same way that someone like hillary clinton wouldn't seek the endorsement of the one of the banking ceos because it

might hurt their campaign. i think the banking ceos have been careful not to be too political. this is a pretty clear political comment. he says that the best case would be uncertainty if britain voted to leave. he said the worst case, or the bad scenario, would include trade retaliation against the u.k. by various eu states. he did describe the european union has sometimes dysfunctional but said -- and i understood why some people would argue that britain is better untethered to the bureaucratic and sometimes dysfunctional european union. however, his overall view pretty clear. he says the european union began with a collective resolve to establish a political union and peace. these two goals still exist, and they're still worth striving for. he added that sterling would likely fall sharply on the event of a brexit, leading to a substantial rise in consumer price inflation, thereby eroding consumers' purchasing power. so a pretty clear view that the

jpmorgan ceo wants britain to remain within the european union. >> we'll have to see if other wall street executives follow suit as we get closer to that june referendum. wilfred, i'm not sure whether you're a golf fan, but either way, you should put augusta on your bucket list. as you know, the masters is upon us, and the flowers are blooming in georgia. that means one thing, it's masters time. the best golf players are in the world are in augusta for the 80th edition of the tournament. so wilfred, i don't know, you're probably cheering for one of your home country favorites here, european favorites. we'll be pulling for the americans. >> well, i have to say, nancy, on the subject of golf, i've made a big effort to get into lots of u.s. sports from watching the ncaa recently and going to some knicks games.

but golf i don't consider an american sport. it's an international sport, and it used to bore me when i was in europe and london. i'm not really a big golf fan. i'm afraid i probably won't be tuning in. >> maybe augusta will change your mind if you go there. >> it's not on top of my list. maybe next year i'll get down there in time. certainly still hope a brit wins. but i won't be watching every minute. >> all right. wilfred, great to see you. meanwhile, campaigning for the u.s. presidency has now moved on to new york with the important primary taking place on april 19th. speaking at a rally on long island, republican front runner donald trump told supporters it was great to be home and to, quote, forget about his rival ted cruz. but can cruz get a foothold in the empire state? peter alexander takes a closer look. >> reporter: ted cruz today trying to capitalize on his victory, invading donald trump's home turf. cruz and the anti-trump forces

touting the wisconsin win as a watershed. >> tonight is a turning point. it is a rallying cry. >> reporter: why? because donald trump's road to the nomination just got tougher. to clinch, trump now needs to win 58% of the 822 remaining delegates, up from 56% 24 hours earlier. cruz backers claiming renewed confidence. >> this is the guy who can bring the party together, win the nomination at convention, and go on to win in november. >> reporter: was it a cruz victory or a trump loss? exit polls reveal why trump had such a bad night. nearly 6 in 10 saying they're scared or concerned about a trump presidency. more than a third saying if trump's the nominee, they'd support hillary clinton, a third party candidate, or simply stay home, and those are republicans. after a rocky last week, dramatic erosion at the core of trump's coalition. conservatives, voters without a college degree, and men turning against trump. absent from the air waves, the brash billionaire releasing this blistering response, blasting cruz as a trojan horse being

used by the party bosses, attempting to steal the nomination. now the race moves here to new york. donald trump's town. with 2.7 million registered republicans, trump's counting on his home state's primary in less than two weeks to provide 2016's next turning point. the raelts mogul predicting victory here, positioned to sweep all 95 delegates. a new poll showing a majority of new york republicans behind hum. but even with a win here after last night's loss in wisconsin, the math may not add up to the magic number needed to avoid a contested convention in cleveland. one reason why trump's top aides today huddled privately with the campaign's new delegate coordinator. and brazil's president dilma rousseff is now moving closer to impeachment, some say. a congressional report released wednesday showed there was, quote, serious evidence of illegal conduct and recommended that the senate put rousseff on trial for manipulating budget accounts in 2014. the findings of the report were

expected but will now speed up impeachment proceedings. the special committee will likely vote on monday, and. cleared will go to the lower pous house of parliament. and a sad note this morning. country music legend merle haggard has died of pneumonia on his 79th birthday. he recorded 40 number-one country singles and was inducted into the hall of fame in 1994. still to come, samsung has reported first quarter earnings, but stay tuned for the details.

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the financial situation at yahoo! is becoming, quote,

increasingly dire. that's according to recode. the technology website says it has seen documents that were intended for prospective buyers of the company, which indicate revenue could fall by 15% just this year, while earnings are expected to drop by a fifth. and shares in the world's largest smartphone maker samsung traded lower in seoul. this despite a projected 10% jump in first quarter profits. ronan, thank you for joining us. taking a closer look here at samsung this morning. overall, the guidance really came in ahead of forecasts. so why the drop here in the stock? >> well, i think if we compare to last year, samsung launched the flag ship smartphone, the galaxy s-6. this year they launched it in march. so that inflated results for the

first quarter. also, they've launched it in more markets. >> inflated results because they brought forward the launch. also, bringing it ahead of competitors as well. >> yes, exactly. >> and this of course raises the question of who are they most concerned about when it comes to the smartphone wars currently under way. >> well, apple, always. samsung is really looking to compete with apple primarily, especially for high-end smartphones, which generates most of the profits. >> but here we had apple making a push into the smaller phone meant for emerging markets as well. surely that's a concern for samsung, or do you think they're quite happy to stay in that larger screen segment? >> that's a good question. for samsung, they've been in that segment for a long time. they've been leading that segment. they've lost a lot of market share in the last couple years.

yes, i think they'll have to come back into that particular segment, but they need to be sure that the profit margins are still there. it's very difficult to make profits from that particular seg pmt. >> and what about samsung's other category outside of the hand sets? i was just at the fintech conference in copenhagen. samsung pay making a big push into europe here, although still playing catch up with apple. do you think they'll see any benefits from their activities in pay in the smart watch wearables field? >> yes, the services and their hardware are two separate things. for the services, by making people buy more samsung devices, and for the hardware, it's about making people spend more on samsung products every year. so rather than spending less on a smartphone, you buy a smartphone and vr head gear. >> all right. but as far as the headsets go

for now, investors are worried this could be as good as it gets. ronan, thank you for joining us. shifts focus here a bit. e-card is marking its big u.k. launch with a collection of cards, partnering with liberty of london. joining us now is the ceo and co-founder of paperless post. james, thank you for joining us. real pleasure to have you on set. here you are debuting in london. of course, new york, the u.s. it really your home market. what are you trying to achieve by partnering with a british brand such as liberty? >> it's part of a larger effort to bring our product to the u.k. we've been lucky to gain some early traction through our digital product in the u.k. with about 500,000 users as early adopters. so we've decided to create sort of an overarching effort to operationalize our business here, partnering with local design partners like liberty,

shipping our paper product. >> and right now you're in the u.k. what are the plans for going elsewhere in europe, and are you looking ea ining east? >> eventually, yes, but right now we're focused on the english speaking rest of the world. the u.k. is our first real international effort beyond the u.s. our next australia. >> let's talk about your fundraising so far. i understand you've raised around $37 million thus far. presumably some of your investors start to wonder what the exit strategy is. are you in discussions for a potential takeover? >> it's interesting because our two earliest investors come from different profiles. one of them is the family that owned chanel. the other is a board member from google, which is only a very big public company. the two of them have very different sort of perspectives on possible outcomes. we are currently -- you know,

our plan is to be a large, independent, profitable company. so we're really not looking toward an ipo right now or any time soon. >> what is your overall valuation? >> we don't disclose that. i'm sorry. >> and when you talk about investment, do you view yourself as a tech company? are you a luxury, lifestyle brand? mp >> it's a great question. we aspire to exist at the intersection of design and technology. we believe technology can be used to make life more personal, to make people more human, to make people connect. so we -- that's sort of our take. it's to use technology in the home human and design centric ways that we can. >> all right. and just quickly, it is interesting that you are online. now you've gone to paper. is this a sign that millennials still crave a bit of old-fashioned appeal as well? >> i think it's really interesting. the way we think about it often is paper is a choice now rather than a necessity.

you don't need to use paper for your wedding invitation or birthday invitation. so people still want it for certain occasions. and that sort of makes it a bit more special. >> all right. well, james, thank you so much for joining us. ceo and co-founder of paperless post. we'll bring you more on the ecb in a couple hours. for now, that's today's show. i'm nancy hulgrave. "worldwide exchange" is coming up next. the pursuit of healthier. it begins from the second we're born. because, healthier doesn't happen all by itself. it needs to be earned every day. using wellness to keep away illness. and believing a single life can be made better by millions of others. as a health services and innovation company

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good morning. jamie dimon warns, watch out. we'll tell you why the jpmorgan boss is confident volatility is here to stay. new this morning, the ge ceo speaking out strongly, disagreeing with what bernie sanders is saying about america. plus, history at augusta, and the masters tournament hasn't even begun. a record smashing nine holes in one during the par 3 contest. it's thursday, april 7th, 2016. "worldwide exchange" begins right now.