i don't even remember which firm that was. >> rbc. >> rbc.-- they're out in front of this, meg. and something that -- something concerns them, with the company, to lower the price target. add that into your quiver. when you're deciding what to do with the stock. rbc has changed. they've no longer outperformed. >> to watch these analysts deal with what happened at valeant, they were such supporters of it. and you see them coming to terms with the fact that you just can't get a grasp on how to value this company. yesterday was michael pearson's first day back. everybody thought when this day came, it was going to be a great time of sort of knowing what was coming for the company, fewer shoes to drop, and the shoes kept dropping yesterday. from the news that they were splitting the ceo and chairman roles, people thought that was good in terms of governance. but withdrawing the guidance, postponing their earnings call. later in the day, as analysts were clamoring to talk with mike pearson, scheduling an impromptu analyst call, and withdrawing tha

just to put that in context, rbc is saying apple will generate about $240 billion in total sales this physical year so they see only a modest bump from that. also the expectation is the new ipad and updates to the apple watch. this event on march 21st, the very next day we know apple and the government are going to be squaring off in court in riverside california so a busy week. back to you. >> we'll be decoding for the next couple of weeks. what loop you in is supposed to mean as well. >> today plus the g-20 meeting in shanghai this week is marking an inflection point. this is actually a big deal but it's being telegraphed in a subtle way so a lot of investors are not quite there yet. we saw draghi from the ecb, they have to be seen through a new lenses and more of the focal point. europe would love a weaker euro but if the euro weakens too much they say we could have much more negative rates well then it's going to react. the chinese currency and if you have a weaker rand worries of capital flow out of china, europe knows that now. so i think that we're morphing into a new world whe

the european insurance sector strategist at rbc. thank you for joining us. we just heard the ceo there really define concerns over asia, china specifically. they had a good quarter just recently, but what's the outlook in this crucial market? you have highlighted some concerns over reliance on business from hong kong. when we look elsewhere in asia, what's your view for prudential? >> sure. it's an exciting time to be looking at prudential. its first full-year set of results. the company is an opportunity as well because it's the u.k.'s biggest insurance company. very diverse business. they've been talking a lot about asia. i think what's been going on in asia and what's been driving that is it's been the chinese coming over to hong kong, and hong kong has been driving the whole of the asian business. while that's been good, the market has perceived it as a very much one-off trade. they're unsure how long that's going to be sustained. >> and specifically in asia, prudential reported a strong performance in its asset management area. this has been an increasi

rbc out with a new note, calling it their biggest, their best megacap idea in the space.nalyst that wrote that note will join us next to discuss. before the break, a look at where we are with the dow intraday. we'll be right back. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >> rbc out with a new moet calling coca-cola it's favorite mega cap idea. he says 20% total return over the next 12 months. coke is actually trading at a record high right now but so are a lot of the other defensive consumer staples. why do you think coke will out perform that group? >> i think there's a couple of things. from a valuation perspective if you looked at mcdonald's and the other fast food companies you have seen multiples inflate because you're going to a higher return on invested capital type business but on top of that the market is underestimating coke's volume growth potential over the next couple of years and there's a couple of things behind that. so you are seeing volumes turn to double digit growth. the second thing is marke

i'm sure it's a similar number for rbc.ut to all of the banks as to whether there are concerns rising across the board. scarlet: all right, pamela richie, thank you so much. alix: coming up, we are going to dive deeper into bernie sanders's economic plan, which he says will create 26 million new jobs. ♪ alix: welcome back to "bloomberg markets." presidential hopeful bernie sanders vowed to take his campaign to the already convention in july, despite only winning four states in super tuesday. he will also be bringing his controversial economic plan that he claims will create 26 million new jobs and increase real gdp growth by 2026. "the new york times" says that those numbers are based on faulty math. ofspoke with the university amherst professor, gerald freedman, who defended the plan yesterday. there is a difference in perspective. i'm using a keynesian model. it's a difference in perspective . we recognize that there is involuntary underemployment and when you increase the growth of the economy and absorb some of that une

joining us with some insight is analyst atcurrency rbc. i think what has changed since the start of the year's people are scaling back their expectations for how fast the fed is going to be hiking. if you go back to december, the fed was telling us they were going to hike four times in 2016. now the market is only priced for one hike. that led to the dollar pulling back a bit and it gives the fed a little more room to act. betty: does it seem justified to scale back this much? guest: that is not our call. we see a lot of reasons why the fed would want to hike several times this year, at least twice, possibly three times. betty: your call is what? guest: three hikes for 2016 and a stronger dollar across the board. betty: the doj just scrambled your call on the yen. guest: not at all. this is a call and how fed policy will handle japanese investors. we know a lot of japanese investors are hedged. the cost of hedging is fairly cheap at the moment. as the fed hikes rates, that is going to change and we will see the cost going up and a hedge co

coming up, we're going to talk to rbc's head of retail trail.he call on oil to influence the rest of the market. that's coming up on "worldwide exchange," here on cnbc, first in business worldwide. >>> new this morning -- why a top fed official says the u.s. is doing fine. but the world isn't. >>> deal deja vu. new reports that microsoft could now be part of a bid for yahoo!. >>> and a bunny hop gone wrong. a viral view of peter cotton tail jumping out of an airplane. it's monday, march 28th, 2016, and "worldwide exchange" begins now. ♪ >>> good morning. welcome to "worldwide exchange." on cnbc. i'm sara eisen. >> and i'm wilfred

the is perspective is global fx strategy at rbc capital markets. he joins us from london.al is 8% the overvalued. how did you come up with that? >> one of the things in brazil is that there has been a significant decline investment and productivity as the policies of the admonition has taken over the years. this is really the main reason the cost is so overvalued. and inflation is very high. they still have inflation over 100%. alix: to talk about the rally in the riyal. what about you seeing? >> the underlying factor, if you have a change in regime, then clearly you are going to see a very significant improvement in investment spending going forward. all models do not detect those changes in regime. the market you are seeing here is a higher probability to keep falling within the next few weeks. scarlet: but you don't see that happening. you say the only way for brazil to get out of this mess is by higher inflation to lower real yield, and that means a weaker riyal. >> correct. you think that even if there was to be a change in the regime, to fallriyal were tomorrow, you

scarlet: we want to now bring end tom from rbc capital markets. two fed rate hikes are being applied. do you see this as happening or an aspiration, according to richard clarida? tom: in a of ways, we are guided by them. if they tell us they want to go twice this year, on going to change my forecasted twice this year. i think they should have done four times this year. it, she isighlighted going to be continuously worried about what is going on in china and japan and europe. spread widening is what she is concerned about. for things she specifically mentioned for considering a lower path. then you have to wonder whether they will even be able to go to times this year. a lot of the global issues we are doing this year i don't see going away in a material way. high.two is too so we will stick with it but it is a massive question mark at this point. mike: looking at the cpi core and the pce core, the fed likes to look at pce. the white line runs a few tenths lower. but both are rising significantly recently. do you dismiss that as an issue? tom: let

pi think that's a bond that's pgoing to the special and carry pon with them for rbc the rest pof their lives. p>> you better believe those pshared birthdays are going to pbe epic. pgoing to have the biggest best pblowout that they parties paround. p>> i know what you're thinking pknow this was not planned again pyour luck by the way liam seven ounds eight ounces. p>> fantastic thank you so much pjosh. p>> good for them but maybe if pyou try to plan it i'm not sure pwhat are the odds. p>> the fact that he rushed in pand got her just in the nick of ptime. p>> love those wacky odds when pthey come true. phow about this winning streak pweekend was good good timing ptake a look outside today guys pthis is pretty good stuff. psunset tonight clearwater beach plooks like a bill of gold with pthe sun in the middle palm ptrees love that photo. pexcellent work by roseann rosin pdorn. pgood job roseann and the second pone susan brooks sunset tonight pat saint pete beach that's retty good and the third one pfrom cheryl the neck he plongboat key tonight. pfew high clouds when the pdistance this one'

rbc's head of energy resource joins with the call on crude. wti just below $40 a barrel.ur facebook and twitter question we want to hear from you. we've asked what is going to break the lull in u.s. stock? data, fed speak, earnings, international news? send your comments. thank you for calling. we'll be with you shortly. yeah right... xerox predictive analytics help companies provide a better and faster customer experience. hello mr. kent. can i rebook your flight? i'm here! customer care can work better. with xerox. wait i'm here! mr. kent? (gasp) shark diving! xerox personalized employee portals help companies make benefits simple and accessible... from anywhere. hula dancing? cliff jumping! human resources can work better. with xerox. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you,

now, rbc estimates that phone could generate sales of nearly $6 billion this fiscal year. of a total of $230 billion. so a modest positive impact there. also expected a next generation ipad and selection of apple watchbands. we should point out that apple saying it declines to comment on rumor when we asked them about what could be unveiled at this event. also, as you mentioned, melissa, the very next day on march 22nd, that's when apple and the u.s. government square off in court in riverside, california, over whether the tech giant can be forced to help the fbi access that phone used by one of the san bernardino terrorists. that fight has become a lot more heated in a court filing just today, the doj calling the rhetoric false and corrosive. lots of apple news on the way. stay tuned. >> josh, i think most investors are focusing on the new products. when you mentioned the smaller phone, i mean, i can't think of another word except that sounds kind of lame. the innovation in the 6 cycle was the larger phone and now it's going back to the phone of a size similar to the 5s.

what we are watching here is citigroup shares taking a leg lower after comments from the cfo at the rbctutions conference in new york staking place right now. according to wire headlines from righters and bloomberg they are citing weak innocence their investment banking business. overale citigroup says that shares -- again, the company is now seeing equity and fixed income markets in the first quarter revenue headed down by about 15% from the same time a year earlier. they also see investment banking revenues down 20 percent year on year. in february, around the 3rd or so, j.p. morgan made similar comments. again, citigroup the latest big bank with diversified securities operations to come out and say that the quarter is chap shaping up weaker than it did last year. in this case here, citigroup basically saying the investment banking business at least going to be lower than last year. >> thanks for bringing that to us. city shares sell off. steve wise you own it. >> i do. >> this is a lot of time talking about the commodity comeback. the banks have done well since the jamie dollar volum

joining us is helima croft, global head of strategy at rbc capital markets.ou don't want to miss that. you're watching cnbc, first in business worldwide. we're back in a couple minutes. . all across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. like in rochester, with world-class botox. and in buffalo, where medicine meets the future. let us help grow your company's tomorrow - today - at business.ny.gov cathy's gotten used to the sme...in her kitchen rbage... 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 [inhales] mmm. use febreze air effects, till it's fresh and try febreze small spaces... ...to continuously eliminate up to two times the odors... ...for 30 days febreze small spaces and air effects, two more ways... [inhale + exhal

at least in rbc's view.this new iphone to apple, though? remember, there are iphone fans who prefer smaller 4-inch screens. that's why they now use the iphone 5s which is becoming outdated. remember, that phone hit the market in september 2013. so apple could be looking to offer those users a new 4-inch phone with the latest bells and whistles and that way these users remain loyal to apple rather than jumping to a rival. apple also expected to introduce a new smaller version of the ipad pro as well as new bands and colors for the apple watch. and remember, tomorrow apple goes head to head with the u.s. government in a court room in riverside, california, over whether apple should be forced to help the fbi break into a terrorist iphone. so will tim cook use today's product announcement to again make the case for his company? we'll soon find out. guys, back to you. >> okay. >> all right. thank you, josh. >>> when we return, jim cramer joins us live from the new york stock exchange. his we'll get his exchange o

wells fargo securities research analyst is here and the rbc managing director both join us.strength today despite the warning on profits and lower sal sales, is that an encouraging sign for the stock? >> no. the thing to keep in mind, two things in the retail space worry investors and the market. that's a lack of visibility and deceleration. in terms of lack of visibility, this is their fifth guide down in 12 months. they guided down after two months. i don't think there's a lot of visibility there. in terms of deceleration, it's the worst u.s. comp in six years. honestly, i'm not impressed by the numbers. >> you do have a sell rating with a $70 price target. brian, you, interestingly, have a hold rating on tiffany but a lower price target than ike at 66. are you not as impressed as well? >> you have to remember that short interest in the stock is at the highest level in three years. there's a ton of negativity. i don't think anyone is surprised to hear about what's going on with tourism and the high end. the company is having an analyst meeting for the first time in several

rbc updates target for verizon. 58-50.e wanted yield and grouchlkt we need to see it involved with tech. we need to watch nxpi. a lot of downgrades. and don't forget broad come, which is now veanother. the university of women celebrating. t tv land's first. let's get back to the markets again. if you're just joining us, welcome. hello in bali. we're waiting for some of these clearing prices. i can't say it enough. this is going to be one of the best months for the u.s. stockmarket in five or maybe ten years and there's all these stats going back to the '30s. >> what do you make of it? >> it's a weak dollar. we said, hey, should we change stocks? they defi fivfine ge why? it's not good stocks. it's like verizon. you don't chase up. you get ate ber opportunity. but janet yellen is basically saying, listen, all the things that have hurt -- kb holmes wasn't up. they had a $19 book value. i'm sorry if i said this before, for those of you just waking up, apple is up that. i like the i foeciphone 7. they call it the echo effect.

. >> puts rbc -- they upgrade because -- >> they put it in play. >> united technologies in play. >> yeah>> let's put it on play. like mickey rooney and judy garland. who else would buy united technologies? >> nobody. >> nobody. >> no. no. >> nobody. >> moving on to apple, apple and the fbi on the hill today. apple's general council awill testify in front of the judiciary committee after a brooklyn judge sided with apple last night. here is ted boutros on "squawk alley" yesterday. >> if apple were willing to do that in this one particular case, every other country will say you have do it for us. create and let us use that software you created to access the data of citizens in our country. that is a very serious concern. again, i think it's inaccurate for director comey and others to say this is a one-time shot. they know prosecutors are lining up in the united states and around the world. so it's a very serious concern. >> this judge, ornstein, rejecting the argument. lowell mcadam of verizon is putting a post up on linkedin backing apple saying we support the ability of strong encryption

there was a bullish note from rbc and capital markets about apple's ability to generate more cash andeturn more cash to shareholders. apple trading up 0.25%. saying they may announce plans to boost buybacks to 40 billion to $50 billion annually. could raise the dividend to 2% plus. apple on news on apple tv, finally get nothing its own content with will.i.am, a show about apps. >> not sure about this one. it will be interesting to see how that does. a quick mention on two stocks that will join the s&p 500, we have pepco leading, being bought by epsilon. let's get to bob pisani on the floor with more on what's moving this morning. >> mixed open, japan we saw a fractional gain. most of europe is closed for the easter holiday. let's skip over that. go straight to what we're expecting here. we're coming towards the end of the quarter here. some very interesting gainers and laggards going on. let's take a quick look here. despite the talk about energy, materials rallying in the middle of the quarter that did happen, the big gainers here have been the telecom and utility stocks. put up the

. >> michael yee from rbc. >>> congress is scrambling to figure out what to do about the rise of selfriving cars. will this be the start of meetings regarding rules governing the road of the future. >>> and is tonight the night the trump race becomes more of a certainty? >>> self driving cars are indeed coming, everywhere except for the mathisen driveway. technology is being developed. but laws are not keeping up. it is now in congress's hands. >> ultimately the federal government sets the motor vehicle safety standards. it really comes down to one question, the question question that needs to be resolved if we are going to see self driving cars take off in the future. does driver need to be required? by that i mean somebody holding the steering wheel or having the ability to take control during an emergency. all the other rules they can be adapted to autonomous drive vehicles. we are on a time line where technology is moving faster than the laws out on the road. i did the tesla drive in new york. you saw how that works. fully autonomous models we will see those on the road by 2020. b

halima croft is here with rbc capital markets and a cnbc contributor.ad a nice run, a lot of it was short covering, opec chatter. now you say political risk could enter the equation. >> we're starting to see politically driven supply outages. the market hasn't priced this in yet. we're starting to lose hundreds of thousands of barrels out of stress producers like nigeria, like iraq. new concerns about security facilities in nigeria. we're starting to see potentially the return of political risk premium to the oil market. >> what is the biggest geopolitical risk in your view ? >> we were very concerned it would happen in 2013 in algeria when facility was attacked, it is worrying what happened on friday with the rocket attack on the bp facility. we watch that. but in terms of where we could lose volumes quickly, nigeria and iraq with the northern pipeline off line. >> is there any risk premium now? you foresee it, i'm sure traders in the pitch see it. we look at crude just below 40 bucks a barrel. how much is in that price already? >> i don't think the su

now, that said, the team at rbc estimates that the se is going to drive about $7 billion in sales thisr. that would be about 3% of the company's total sales. so, a modest financial impact. but the se does have certain strategic importance for apple. for one, we know the company did sell 30 million 4-inch iphones last year, so this se now gives those people a reason to upgrade. also, at 399 bucks, it could appeal to a price-conscious consumer, especially in the emerging markets where a new, smaller, cheaper phone could win over some fans. in addition to that new phone, we also do get that new, smaller version of that ipad pro today, starts at $599. we know the ipad's been a disappointment, at least for wall street, so the question for investors is do you think this new ipad could change that product's trajectory? this store behind me in palo alto's going to open up in about three hours. we will be talking to customers and bring you updates throughout the day. back to you guys. >> josh, thank you very much. we'll look forward to those updates. >>> still ahead, stocks seeing quite the tur

rbc's bob wettenhall covers the home builders and joins us. you disagree with diana olick's thesis on pricing and affordability. how come? >> yes. hey, brian, good afternoon. i actually think it is the best time to buy a house because if you look today, you got a couple of things going on. number one, principle and interest payments on an inflation adjusted basis are now 15% of disposable income. down from 25% before the bubble. so affordability is very high right now. second point, inventory in the system of existing homes is down to four months of supply. usually sits at six when things are working correctly. what does this mean? tight supply, a lot of demand, prices are going up. if you want to think about it differently, you probably want to buy a house now before the prices move higher. >> you're on the radio, but i'm going to show our viewers and explain to our own radio listeners what we're looking at. if you have only been tracking housing starts for five years, you may say what are you talking about, we're building more homes. we're g

rbc, concrete work is following. central zone, it's into the rough in. the fireproofing, the stairs, and actually starting to proceed with normal construction operations outside of stealing and concrete. in the eastern zone, of course, the steel erection was completed january 8 and the trestles all gone and welding is a big focus their. as they progress as they complete the western and into the east. just a tally on how we're doing. we are over 90% feet on the fourth-fifth walk and down in western. ground-level tax 40% complete overall. activity in all areas seem with the bus level and the roof level. mostly as you can see the central zones are 100% complete. just some quick photos to give you some perspective. that upper left one is the north west corner of the project you conceal the decking for the eyebrow for. rapport was completed this week. the welding is continuing at west end and hopefully completed by the third week of february. give you a shot of the ramps. the vehicle and bicycle ramps and outcomes in underneath the future-the bus ramp and the

mark mahaney is lead internet analyst at rbc capital. you. >> good morning, carl. >> we had a sense this was coming. what do you expect the outcome to eventually be? >> we don't have the date yet for the annual meeting, probably late april. it does seem like the drama is coming to a close. i think the probable outcome here is that we have a sale of core yahoo! to a strategic buyer, something like a verizon. that seems like the most likely outcome, probably happens in the next 12 months. it's hard to imagine the current status quo continuing. >> mark, you know, there was really not much in the starboard letter. this time or in prior ones, that had very specific recommendations about how the core business could be fixed, as opposed to when starboard went after darden and they talked about the salt in the water for boiling the pasta. so, do you actually think this is all just tactically directed at sell rating a sale process? what happens if the dog catches the car here and they get their board in there? >> yeah, so, a couple of really impo

for more on what to expect, let's bring in rbc chief of capital markets, tom purcell he. tom: the short answer is, no. we are looking for a better than consensus number today, although mostly because of technical reasons. 2.25 to 2.50if materializes, for the fed it is really about what is going on around the globe, how it is impacting conditions. when the march meeting comes around, those are the themes that janet yellen will drive home. the headline data says things are ok at the moment, how do they communicate their way around that? domestic rates are still pretty solid. tom: we wrote about this in our most recent weekly, the idea that it is not about -- i think the notion of data dependency needs to be brought out to some extent. bill dudley did that in september, where he highlighted in the speech he gave that data dependency is not just about u.s. economic data, it is about these things going on around the world. when the march meeting comes around, those are good things janet yellen will highlight. the reality is that it is unclear, the stresses coming out of e.m. i

joining us now is rbc capital markets chief strategist and managing director and chief investment officerssemer trust. do we want a number that's just right. if it's too hot would the market not like it because it naens fed is back on track. too cold recession fears come back. is it important? >> this may be the least important jobs report that we've seen in a while. the economy -- >> something important people at home. >> listen. we're so far away from recession and i think that's been -- >> host important number of the month. >> yes. you want things move to forward. good jobs number will tell you thing will move forward. the fed wants to raise rates but the world economy needs to calm down. we don't need more jobs. we have low unemployment rate. they need tofrg chill. that's what's been happening. i don't think this jobs number will make a difference. >> we need some demand for workers and then people have to pay up and everyone benefits. you didn't mean that. >> of course we need more jobs. the stock market doesn't need a strong number. but more jobs is always good >> you're pretty sur

we're going to find opportunity with rbc next. you're an at&t small business expert? sure am.y staff could use your help staying in touch with customers. at&t can help you stay connected. am i seeing double? no ma'am. our at&t 'buy one get one free' makes it easier for your staff to send appointment reminders to your customers... ...and share promotions on social media? you know it! now i'm seeing dollar signs. you should probably get your eyes checked. good one babe. optometry humor. right now get up to $650 in credits to help you switch to at&t. >>> all right. welcome back and good morning, everybody. time now for the squawk planner. it is a big morning for economic data. you have got the government's retail sales report and the producer price index for february at 8:30 a.m. eastern time. of course, we'll have those for you with reaction. the federal reserve kicks off a two-day meeting today. tomorrow we will get that decision right around 2:00 eastern time followed by the live press conference with fed chair janet yellen about half an hour after that. after the closing bell