janet yellen about to come to the microphone for a speech. we're going to have that story and reaction from brock's chief equity strategist. free market capitalism is the best path to prosperity. created the natural gas revolution, which would transform american industry. we'll be right back. hey, did you ever finish last month's invoices? sadly, no. oh. but i did pick up your dry cleaning and had your shoes shined. well, i made you a reservation at the sushi place around the corner. well, in that case, i better get back to these invoices... which i'll do right after making your favorite pancakes. you know what? i'm going to tidy up your side of the office. i can't hear you because i'm also making you a smoothie. [ male announcer ] marriott hotels & resorts knows it's better for xerox to automate their global invoice process so they can focus on serving their customers. with xerox, you're ready for real business. introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's fr

we're heard from yellen and from dudley overnight, yellen had some interesting comments where she did could come back in with more easing. but she also gave herself a big room for an out by saying it looks like things have been getting better with set ago side of the march jobs number and if they continue to improve, they could pull back even more. would this throw your thesis off sm. >> it certainly could but that's not our central forecast. every time the fed tries to back away from their massive, easing policy, the risk markets react. we saw that with the fomc minutes. this is like a morphine drip. you give morphine to the patient, it makes the patient feel better, doesn't cure the underlying disease the moment you take it arngs the patient wakes up horrified if a lot of pain. i think they are get addicted to the fed policy, as they pull away, they ewill respond and it will put more pressure on the fed to act. >> jim chanos is our guest host today. on that theory of the patients screaming for more morphine, do you think that he holds true and is at play? >> observably that's the pa

yellen being dovish doesn't matter. she's dovish. it's known.hrug. >> it's all melty and -- >> okay. the sweaty breathe. not the sweaty brie. i'm not into smelly cheese. george soros wrote in the ft saying the ltro program hit the deterioration in europe and predicts a long period of stagnation or worse. the rules governing need to be reworked completely. what he it actually said here, as well, was that the bundesbank can't soft eurozone crisis. it wants to protect germany, but you've actually got to have a much weaker euro. you've got to have promise policies, but allow for much greater inflation in germany. what do you think of mr. sore rows on chlt a soros' analysis? >> you have to have respect for the guy. he's the master. but his position has been negative. yes, they need a weaker currency, but the dollar also needs a weak currency. but only one gets their way. it's not that i'm negative on the dollar, it's that the u.s. will get its way. wants a weak currency and it will get it. you're roll, there's nothing they can do to get it. what is t

yellen, i don't know. i got to get out of this segment. >> what was when the banks start to withdraw those reserves they talked to the federal reserve? what's the fed going to do? >> they should withdraw the excess money. will they? i don't know. >> retail investors need to always think long term. don't get too worried about the macro stuff. it's interesting to follow but that ten-year-plus perspective. >> thank you. we appreciate it. now we've got breaking news coming in to cnbc. nbc news confirms south korea has launched a rocket of some sorts. its destination is unknown. the white house is about to issue a statement. we'll bring you more as we know it on the bottom of the screen. so please check it out. coming up on "kudlow," jack welch will join me with his take on the economy, the election and his latest column on president obama's enemies list. don't forget, as always, free market capitalism is the best path to prosperity. we had three pretty good premarket guys on the show tonight. for me that's a p

there's janet yellen and bill dudley who spoke this morning.sentially that they will do more if the economy worsens. i did not hear additional qe. more fed on tap today. back to you. >> all right. thank you very much, steve. >> all right. sony ceo laying out plans to revive a struggling company cutting 10,000 jobs moving away from unprofitable tv business bringing us to this morning's squawk on the tweet. you can make a mixed tape for sony, what song would you make for its new anthem? we have your responses straight ahead. ♪ [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. ♪ the c-class starts at just $34,800. is to take you from where you are... to where you need to be. and we're not just talking about points on a map. with a more intuitive delta website and mobile app... and the most wifi equipped planes. we let you be everywhere at once. innovations like these are extending our reach so you can

louis fed president and then the speech by janet yellen tonight. as tyler suggested, the yellen speech will be most closely watched. at times the comments could be advance guard of the chair. the two are not far off. >> how closely is the fed watching europe? >> i think it's a big part of fed policy right now. i think it may be a reason not to do qe-3. if europe remains to have potential for shock to the u.s. economy, the fed's going to want to have at least a couple bullets in its gun to be able to help the u.s. economy, tyler. i wouldn't want to shoot those bullets before it had need to. >> steve, thank you very much. >> thank you. >> the struggling housing market still a major drag on the economy, but could 2012 be the turning point? diana olick with a new report that's giving a number of home builders a boost. diana. >> well, that's right, julia. 2012 may be the long awaited recovery year for housing. that's the headline from analysts at wells fargo after a record positive response on their monthly home builders survey. 63% of 150 sales manager

yellen's piece, would you not agree? >> yellen's nonsense. but certainly i don't flinch from my responsibilities. and i certainly do take part in the policy decisions of "the sun." i think that's my job. >> i'm not saying it isn't, mr. murdoch, but the point i was gently pipting to you is that -- putting to you is that you said if you want to judge my thinking, look at "the sun." >> look at the editorials in "is the sun." >> either because you tell them or because you work it out? do you agree with that? >> i wasn't talking about the editors, i was saying -- i think i was talking about the politicians. but -- >> no, you were talking about -- the direct quote, it's page 36 of the transcript in the morning, line 11516. if you want to judge my thinking, look at "the sun." that's what you said. >> yes. >> you were saying -- >> i don't get absolutely parallel in every detail, but it's not. but generally speaking, well, the issues that we get interested in, that we fight for you'll find them in "the sun," and you'll find that i would agree with mos

that was halogram technology cnn used during the last election, jessica yellen appearing with wolf.st 16 years ago, appeared on stage, check it out. last week to perform some of his greatest hits at the music festival. >> you know what is weird, the first time americans thought about it during the original star wars series when princess leia, if he had said obi wuo you're my only one. >> it's a little creepy. fans want him to go on tour. >> unreal. >> kind of cool. >> anybody you want to see digitally resurrected? >> i've never seen her on stage performing but jessica yellen with snoop dogg. >> i hope you had as much fun as we did. more coming up later in the show. >> you bet. >>> shaken, not stirred, that is how james bond likes his martini, for the next blockbuster, what he will be sipping on, instead. ♪ >>> welcome back. if you're not awake already we're going to wake you up this morning. 6:47 on the east coast, 3:47 out west. get you caught up on news that may have been off your radar. take a look at this photo of president obama reflecting on a civil rights icon. he is sitting

let's point out that we mentioned janet yellen will speak this evening. you can watch that live on cnbc.com. let's pick up the attorney general now, eric holder announcing his suit against apple. >> the justice department's ensuring fairness in the marketplace and making sure that cutting edge technologies are available at the lowest possible price. in recent years we have seen the rapid growth and many benefits of electronic books. ebooks are transforming our daily lives and improving how information and content is shared. for a growing number of americans who want to take advantage of this new technology, the department of justice is committed to ensuring that ebooks are as affordable as is possible. as part of this commitment, the department has reached a settlement with three of the nation's largest book publishers and will continue to litigate against apple and two additional leading publishers for conspireing to increase the prices that consumers pay for ebooks. earlier today we filed a lawsuit in united states district court for the southern distri

he has a cool new deal. >> now you've caught my interest. >> is that more important than yellen? >> it's not. thanks so much. we want to quickly check in with markets less than two hours to go before the close. nice comeback from recent losses this week that is. the dow hasn't had a losing streak that long since last summer. of course we've seen a little weakness after that beige book report hit. for the dow, s&p and nasdaq we have the biggest one-day gain still since march 26th. all three on track for biggest drops of 2012 will take more to change that. let's get down to bob and rick. bob, what are you watching? >> i think the important thing is i think this is rather positive tone to this whole statement. manufacturers optimistic, consumer spending encouraging, hiring and loan demand improving, all pretty positive. what it hasn't done is move the markets much. we're sitting right near the highs of the day. while it's not selling off, it's not doing too much right now. the important thing is overall most of the major sectors have moved up very early on and stayed up. we have nic

janet yellen is the vice chair of the federal reserve. and dudley is not only new york fed president, he's the vice chair of the fomc. i would think they're carrying a bit more weight probably speaking for the balance of the committee. and i think that's reflecting where the center of the committee is and probably very much likely reflecting where the chairman is. >> some members are more equal than others. steve, thanks very much. >> thank you. >> meantime, sony's new ceo wasting no time in laying out his turnaround strategy. the struggling electronics giant holding a conference call earlier announcing job cuts. just fewer than the greek public sector. and the shift towards mobile devices and its medical business. but the big question for investors now is will this plan work. our jon fortt is in silicon valley with the details. jon. >> hey, kayla. the question is also is the plan enough. first let's go over the pieces we heard already. letting 10,000 employees go mostly from the chemical and low end display. he's focusing on turning arou

jessica yellen posed the question to jay carney. >> we learned they are forming an external board to study the culture of the service. does the white house and president plan to name some of the members of that board? >> i don't have anything specific for you on that kind of review or further steps that might be taken. right now we're focused on awaiting the results of the completed investigation of the incident in colombia. >> does the president feel that whenever director sullivan decides to retire, if it's years from now or in the near future that at some point in the future the secret service should be run by somebody outside the culture of the secret service the way the fbi is run by somebody from outside the culture? >> i think we're about four days, five days into this incident, six days into this incident. to speculate about what might happen in the future with regard to this agency is, i don't think particularly illuminating. right now we're focused on this investigation, this incident, finding out what happened, holding people accountable and responsible for transgressions

federal reserve's tealeaves today as the fed's vice chair janet yellen said interest rates maybe should be kept at zero until as late as two thousand and fifteen reportedly she said that in a speech in new york meanwhile the new york fed president william dudley also has reiterated he supports keeping interest rates near zero until late two thousand and fourteen now all of this has us thinking back to the future about time travel and has us wondering if the artificial manipulation of interest rates distorts this space time continuum and therefore frenzy economic destruction of cosmic proportions now we have mike norman here to talk about it he's probably going to severe with what i have to say but that's why we like him so much his chief economist at john thomas financial and he joins us now to talk about all things monetary issue related first of all mike thanks so much for being on the show again it's nice to see you. i love being on the show lauren and you know i love talking to you and you are so smart how did you get some more i mean i'm going with. my things i said i don't read yo

yellen's peace >> i do not flinch from my responsibilities.and, i certainly do take part in the policy decisions. that is my job. >> i am not saying is not. is that if you want to judge my thinking, look at the sun. are there any two way is the editors could logically know you're thinking? >> i was not talking about the editors. i was talking about the politicians. >> you were talking about -- on page 36 of the transcript, line 1516. look at the sun. if you want to judge my own thinking. look at the sun. >> yes. generally speaking, the issues that we get interested in and we fight for, you will find them in the sun and you will find that i agree with most of them. if not all. >> -- >> there are details i do not agree with. >> how will they work out what you are thinking? >> the should not talk to me. i say this and do that. we have conversations pretty constantly. >> your editors will get to know you very well. because you are not shy. >> yes. >> or, like the "in new york post." >> if you look at what happens with your advisers, the position i

i would cite to you just as an example, if you look at vice chair yellen's paper, which she gave -- or speech which she gave a couple weeks ago where she described a number of ways of looking at the late 2014 guidance, she showed there some so-called optimal policy rules that come from trying to get the best possible outcomes from our quantitative economic models. what you see if you look at that is the best possible outcomes assuming perfect certainty, assuming perfect foresight, very unrealistic assumptions, still involve inflation staying quite close to 2%. so there's no presumption even in our econometric models that you need inflation well-above target in order to make progress on unemployment. >> try to make a living out of parsing these statements noted in the section on strange and global financial markets the committee said this time around strange and global financial markets continue to pose significant downside risks to the economic outlook. but in january the committee said that the strains were easing. what are we to read into this apparent change? are strants tightening

doves like dudley and yellen have become less and the center has moved. the center was leaning towards this idea of we'll do qe even if the forecast ends up the way we want. that turned from even if to only if the forecast ends up worse than we expect and you've seen everybody move. lacker has gotten more stride dent, the doves less dovish and bernanke is right there in the middle say i'm in the only if camp. >> if you were the fed chairman and who know, you might be someday looking at the uk in recession, spain in recession, dutch government out, how much is europe playing into your decisionmaking if at all on the fed board today? >> well, i think they do have to be very careful. you know, bernanke always looks to japan but euro land poses a similar problem in terms of recession certainly enpotential lost decade going forward. you know, i think, brian, this question in terms of the fed is really one of flows versus stocks, and that's a complicated equation, but a flow statement might basically say who will buy these treasury bonds if the fed doesn't. tha

you have yellen out yesterday really supporting the consistent message of bernanke to the market which is let's keep our eyes on the recovery and qe-3 in our back pocket. and certainly you have those on the fomc who are doubters and are much more hawkish and who are suggesting strongly that we should be giving a much earlier target date to some exit strategies. >> our great senior producer characterized the open market committee as the open mouth committee this week. i wonder if you think that all of these fed talkers, yakkers, are actually helping us understand better? or could you do with a little less transparency? >> i think transparency is always good, tyler. it's good to know there's a healthy debate going on within the fomc. ultimately bernanke is the decision maker, but it's healthy for us to see the process. i'm a fan of the transparency. >> katie, you're going to stick around and talk more with us when we hear the q & a of fed chairman bernanke's speech. we'll see you later. >> just to take you back and remind you in case you just tuned in. good afternoon. this is "power lunc

so i'd put more weight on yellen and bernanke.erate to do anymore quantitative easing. i think the economy would need to weaken much further for that to happen. >> david brum made the point we expect the dove to be dovish. >> compared to a few months ago, the economy is actually doing okay it at the moment. inflation is looking like it will be around the core target of 2%. so i think things will have to change. >> how much of -- a month ago, there was shall this big feeding and helped to drive in part asset prices was this time it is different, we are moving in different from last year in the sense we're moving into a sustained u.s. recovery. so one has to say how much of that feeling was actually just the fact we had amazing weather over the winter. natural gas prices very low, offsetting higher oil prices and how much actually is a sustained recovery. >> i think you're right, i do think the day take was flattened a little bit by the unseasonably warm weather in the united states and that might explain some of the weakness of the

jessica yellen, still waiting for the heads up and we'll take that live as soon as we see the presidentg up and the presto officially signing the jobs act into law. in the meantime we'll move on. look at this. >> yomt to say what it sounds like this time what a lot of people are saying it sounds like but play it a few times so the viewer can have an idea for themselves and make their own conclusion. >> many dmsz that george zimmerman used a racial slur the night he shot trayvon martin and cnn took the time to enhance the 911 call with no definitive answer. one forensic analyst says he knows for certain what word he used and it is not the slur you might be thinking of that. brand new development is next. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about the cookie-cutter retirement advice ttd#: 1-800-345-2550 you get at some places. ttd#: 1-800-345-2550 they say you have to do this, have that, invest here ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 you know what? ttd#: 1-800-345-2550 you can't create a retirement plan based on ttd#: 1-800-345-2550 a predetermined script. ttd#: 1-8

janet yellen saying interest rates should remain low through 2014 and the central bank stands ready to take additional actions to boost the economy should the recovery falter. of course, the problem in the recovery has been the housing market. and to that echbd, realty track reports that the number of homes entering the foreclosure process rose for the third straight month in morch saying housing prices could remain under pressure. >> mary thompson, thank you. >>> and it was an attack of the giggles on anderson cooper 360 this week. the cnn host just couldn't keep it together during his "ridiculist" statement. and just thinking about it gave him the sillies. >> i'm going to let you do this one. it's really so stupid. km on. come on. >> i feel his pain. we've all been there at some point. cooper has since apologized for his laughing fit to anyone who celebrates dingus day. by the way, hearing it makes you laugh. it's a polish-american tradition the day after easter celebrating the end of lent. 7:18 right now. now ann has a fit of the giggles. >> no, but his was definitely a giggle. that

dow jones futures are up this hour following commentary from federal reserve vice chairman janet yellen yesterday. ahead of the bell, the dow is up 62 points. those are some of the latest headlines on c-span or radio. >> our specific mission is to work to see to it that human rights remain a central component of american foreign policy, and when we are evaluating foreign policy moves globally, human rights can never be the only consideration, but it has to be part of the dialogue. when we abandon our deepest values, and as we are talking about torture as relates to the war on terror, or the policy with russia and the upcoming issue of whether the accountability act should be passed, whether we will stay on record saying human-rights matter in russia, china. >> more with katrina lantos swett sunday night at 8:00 on c- span's "q&a." "washington journal" continues. host: we want to introduce you to lauren ashburn, editor in chief of the daily download. what is the daily download? guest: the daily download, daily-download.com, is a website that curates the smartest content on the web, the s

end of the day their core members that matter more than others and that's dudley and bernanke and yellen's going to drive decision making. >> good monday morning. welcome to the third hour of "squawk on the street." get a check on the markets this morning. the dow barely moving just off three or four points right now. s&p mildly positive. nasdaq up almost eight as we begin the second quarter here. meantime, global payments, visa and mastercard processor at the heart of a major security breach last week after the company was removed from a list of complement service providers. amazon is one of the biggest losers on the s&p today after a downgrade to neutral over at b of a merrill lynch. one of the longtime pubulls on e stock. avon rejected a buyout offer from coty. what does that mean for the future of avon stock? and the president of a management company joins us with advice on how to play the markets. and then it's a bird, it's a plane, no it's a flying car. the fantasy is a reality. the plane that can go straight from the runway to the highway. we get the first look at that and losing

with any prominence, they have taken inflation out of the targeting issue in the sense that janet yellene are from different political parties and they've agreed on this thing, inflation targeting. >> professor, we have to go. thank you. i appreciate it. >>> coming up, the view from wall street. we're going to head down to the new york stock exchange with a look ahead at the trading week. >>> we're back on this monday morning. let's get down to the new york stock exchange. carl and melissa join us now. what do you make of that microsoft b & n news? >> great interview on "squawk" this morning. it's probably the buzz of the exchange this morning, if there is a buzz. >> definitely. you have to think about what this might mean, what microsoft gain with it with the release of windows 8. it has 100 apps or so compared to apple's hundreds of thousands of apps. does this move the needle at all for microsoft? >> where did you leave cramer, carl? >> cramer eers on vacation this week, well-deserved. >> i figured he's in d.c. in a gutter after on afterparty. >> you might have been the last one to se

yellen is the queen and maybe bill dudley is the castle and the others are basically knights and i youe the major pieces concedes and says, checkmate. but we haven't seen that. until that happens, i think, you know, this wordsmithing in terms of a couple or a few i think is relatively unimportant. >> tough to read. here's your tweet from this morning. central banks are where bad bonds go to die. without qe the financial markets and then the economy will falter. you want to expand on that? >> sure. let me expand and say central banks are where bad bonds go to die and good stocks are born i suppose much like a star. bad bonds, what are those? i think in terms of the ecb, those would be peripheral bonds buying in the hundreds of billions and the united states, are they the treasuries? yes. the 10-years, 30-years. no one would buy at these types of levels and operating, yes, in a subsidized market where a 10-year yield at 10.25 and a 30-year yield is a subsidized level and who would buy them unless the fed does? not too many buyers i don't think. >> mr. gross, no longer presumably will the

janet yellen saying ending without extension not a tightening.d not be reversal of policy. and bill dudley of the new york fed said additional qe has costs and could raise inflation anxiety. they are not spooked by that skbloorkts. but that's so far, they are holding out really final judgment on that to see what other labor market indicators have to say as the months go by. they are still defending the existing policy. really little change in the status quo. some hawks were emboldened. like one from minneapolis saying the fed could begin to tighten from six to nine months from now. that's not seen by the markets as the balance of the committee. read all about this on cnbc.com where i post ad piece. >> thank you very much, steve. looking forward to ben bernanke later on the network. with europe is a major focus heading in to the weekend whether we like it or not with the falls on the european markets and euro breaking through some support levels on the down side. axle merck is the president and chief investment officer for merck investments. how c