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tv   Worldwide Exchange  CNBC  May 8, 2015 4:00am-6:01am EDT

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hello, good morning, and welcome to this special edition of worldwide exchange live from the houses of parliament in london. prime minister david cameron set to hold on to the keys of number 10 downing street as his party the conservatives set for an overall majority. >> both parties lose a key number of seats. reports suggest ed miliband will offer resignation. >> the offer cheers the election
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results. home builders and energy companies lead the ftse higher. >> sygenta jumps as it rejects an offer from its u.s. rival. >> welcome back to worldwide exchange. what an extraordinary set of results we've had coming in over the last 11 or 12 hours. the first exit polls sending a surprise across the u.k. with the conservatives doing much better than expected and steve, as we approach the final results coming through it is plausible now that prime minister david cameron will hold an absolute majority in the house of parliament behind us. >> we're seeing figures confounding expectations. we can't underestimate what a
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seismic moment that was in the entire election. up until 9:59 p.m. last night every single poll that had come out had put them within a tight range of each other. the most recent polls were saying the toris may get 280 seats and labor would get 270. that was not the case. and the conservative feelings throughout this and people like lord bell talking to you and i on wednesday thought that couldn't be the case. it felt better on the ground but from 10:01 we knew the conservative had an outstanding victory in england. north of the border something expected did happen and that was the fact that snp wiped the floor. they wiped the floor years ago and in this election the liberal democrats and labor party wiped out of scotland. >> and we've seen the liberal democrats suffer heavy losses.
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and also ed milipand, theband, the leader of the labour party, has had people call for his resignation. we have seen markets rally. the sterling pound up against u.s. dollar and ftse 100 opening to the positive territory as well. >> but the point i was raising on squawk box as well was let's wait a few days to workout whether these asset classes have a sustainable rally in them as well. it's very interesting that -- i'm just wondering are we getting confused. is that because the city traders are not going to have less pension contributions without tax as well. they're not going to see higher income tax. there's definitely a relief and a bit of confidence among traders but the point is the longer term economic fundamentals stay the same and that is the fact that we have a debt to gdp nearly 90% and a deficit among one of the worst in the eu. >> absolutely.
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let's listen to a bite of david cameron the prime minister. this was as it was announced in his constituentcy that he had won his seat. he was speaking about a desire to unite the nation. >> i want to bring our country together. our united kingdom together. not least by implemented as fast as we can the devolution for whales and scotland. in short, i want my party and i hope a government i would like to lead to reclaim a mantle that we should never have lost. the mantle of one nation. one united kingdom. that is how i will govern if i'm fortunate enough to form a government in the coming days. >> now one of the primary factors of why labor has underperformed here is clearly what happened north of the border. the snp has had a stunning success which is interesting
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because they didn't wipe the floor when it came to the splitting of the union vote last year but we have been speaking to some very senior coalition politicians this morning and they warned that last night's results could be a precursor to scottish independence at a later stage. we have parliamentary elections in the last 12 months as well and they may feel like they have the power base they need to move forward. let's listen in to what the likes of campbell and hammond have to say. >> the snp very disingenuous by saying this election is about a better voice for scotland and westminster when he may have been saying that but throughout scotland candidates were saying we want another referendum and you muntst not forget the scottish parliamentary election is next year. i think they will undoubtedly
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decide they want to have another referendum. >> i don't want to rub labor's nose in it but it's a failure of the labor party. the close run thing in the referendum was a failure of the labor party in scottland and what's happened now is a failure of the labor party in scottland. for too long the labor party in scottland has taken the scottish people for granltted and because of that nationalism has been allowed to grow and strengthen in the way we're seeing in the result last night. >> i'm delighted to say that we are joined by daniel. he is a member of the european parliament for the conservative party. good morning to you. >> good morning. >> thank you for joining us. a surprise positive result for your party this morning. >> yes. i think the polslsters have questions to answer. >> did he get his money back?
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>> it's extraordinary. it will be what labor is always calling for. an inquiry into how some of these polling companies do. >> where do you think the conservative party gained seats? what topics. why has it gained ground. >> last year the economy grew at 2.8%. labour labour labour labour shrank by 4.6%. we were facing a greek style melt down and today we have created more jobs than the rest of the eu put together. >> our deficit is worse than greece and france. it's worth than all of the countries we worried about from 2008 to 2012. we can't say george osbourne has gotten everything right. >> our budget deficit was as bad as the countries under gordon
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brown and the budget deficit had risen during the boom years before the crash. that was the really shocking thing. instead of paying down debt when we were growing he was still borrowing more. of course it's going to take time but you're right we doubled the debt. there remains a sense of economic uncertainty and that's why people realize that now is not the time to send for parties that wanted to tax and spend and borrow. >> obviously your party has done relatively well on the economic message. one big threat that diluted the view that the conservatives are good for business is the referendum promised on the eu. are you hoping that you as a member of european parliament will be out of a job. >> i am and so are most of the businesses in my constituentcy. some large banks and corporations invested a lot of time and money in getting a structure that suits them.
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but entrepreneurs up and down my region want less regulation. want to be able to trade more freely with the rest of the world. are fed up by being held back when we could be trading to china, india, or australia. >> can i clarify what you said there. you hoped you would be out of a job. so you hope this referendum not only takes place but that we also vote to leave the european union. >> that's my current expectation. you can see there's a majority for it in the house of commons. >> british population has turned their back on the antiimmigration and anti-eu party. there was no social support. but the other point as well is its polling very badly coming out of the european union. >> i think that the anti-eu cause was damaged by it's association with an essentially negative antiimmigration campaign. i think in order to win this campaign we'll have to make the case in global warm positive language and economic language.
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we're going to have to make the case that we are a great, global trading maritime nation. we shouldn't be tied into the only trade block on the planet shrinking. we should raise our eyes and rediscover that global location. >> you are mep aren't you. >> i'll get a vote you'll get a vote david cameron, ultimately the british people will decide this. although they pretend otherwise nor should anybody else and the pollsters should show a little bit of modesty. >> will it lead to fighting within tory party? >> it's never a bad thing to have a referendum that reminds politicians that we work for everybody else. >> thank you for joining us. that was mep and conservative party member. >> great job guys. let's get back to the seats in the house of commons. as they stand now we don't have all the vote counts just yet but 310 seats for the conservatives. so this is a resounding victory
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and they are on track maybe even for an absolute majority. this is an outcome that nobody in the u.k. would have expected for the torys. labor 227 seats. looking at the worst election night ever. he is expected to re-sign later on today. so far getting only one seat but we're still waiting for the count. this is the constituent sy. if he doesn't get that seat he's expected to re-sign as well and north of the border we're seeing the snp, huge victory for them and they're wiping out labour. it's been a disasterous night for labour in scotland. they failed to make much in england. >> this has been a disappointing andy cut night for the labour party. we haven't made the gains we wanted in england and whales and
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in scotland we have seen a surge of nationalism overwhelm our party. i want to say to the dedicated colleagues in scotland that lost their seats i'm sorry for what happened. >> ed bowls lost his seat to an opera singer on the ticket. he said he was sure the labour party would bounce back. >> coming up on worldwide exchange we'll be speaking to jonathan powell. a diplomat and business man that knows the inside workings of number 10 downing street. you won't want to miss it. head to for up to minute coverage of the u.k. election, news and analysis and results as they come in from the u.k. >> let's look at the market reaction. quite a drastic one overnight.
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the markets certainly like certainty and what the market was setting up for in the last couple of weeks, that was days and weeks of certainty. sterling dollar cable surging. we are off the session highs but currently changing hands at 15465. higher by 1.5% but off the session highs. also want to cage the reaction on the equity markets. ftse 100 is higher. back above the crucial 7,000 level. the ftse 250, better gauge of the economy here. higher by 2.9% and ftse small cap also rallying by almost 1%. now here are some of the stocks and the sectors we're watching and we're seeing broad based gains for the paingingbanking and utilities and transportation and home builders. all of these they believe would
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have suffered. in part because of a mansion tax for housing and part of deregulation. more competition for the banks. we're seeing those particular stocks rallying across the board. barclays higher by 3.6%. rbs up by almost 5% and we are seeing them up by 5.6% as well. want to get back out to wilf on the green. now, wilf i'm just wondering at what point the markets are actually going to focus on what the conservative government actually means because we've got the referendum in two years time. do you think what we're seeing today is a knee jerk reaction and the losses will come later? >> that's a big part of it. we saw sterling sell off from the 155 handle down to 151 and it's now in the 154. that highlights a short-term
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move. the biggest fear for markets has been the chance of there not be a clear result either way. whether it had gone toward labour or toward the conservative party. that's what the market is welcoming this morning and the gains are within reason for that. just over 1% for the ftse is reasonable within that time frame. when will the market start to focus going forward from here on the long-term plans of the conservative party and i think that will start to come in but interesting steve that we've seen on the sector performance, banks, energy stocks doing better today because those are the ones that would have suffered under a labour government with the freeze and po bonus tax and the like. i was here in 1992. i was a mile or so down the road in the ftse options pit where the volatility exploded in advance of the '92 election. it was a major victory having expected to go into the labor
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party and the market reaction there was quite extraordinary. we were down almost 200 point if labour had won. it rahal lid on the day quite aggressively but the point is despite, yes, there's been a little bit of premium buying in sterling and the equity options i don't think there's been anywhere near the oscillation and i don't expect anything more. i think the fundamentals for the u.k. economy are shakily but better than a lot and their fundamentals are still bad. the utility sector. this was somewhere we thought they could get clamped down upon the likes of edf and france and that was one of miliband's preelection promises to cap the gains. they're losing money hands over fist anyway. so some of those enormous challenges for them for the banks and big international companies, for the oil companies, they're still the
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same as yesterday regardless of this u.k. outcome so i would be careful of the euphoria today and as i said time and time again. you guys out there in the city of london i know you're breathing a sigh of relief personally for income reasons and pension reasons but i think you have to be careful not to confuse the relief of the city compared with the relief of the u.k. economy. >> wouldn't you agree this type of market reaction suggests there was a lot of negative priced into this market on the prospect of labour winning but now that the results show that's not going to take place do you think this is a relief rally? and if so how long does it continue? >> yeah i think you're right. i don't know if they thought labour was going to win. i thought they thought there was going to be a messy outcome. let's go backwards to 24 hours ago. there was always a concern it
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would take until the new parliament. until later to the queen's speech on the 27th and don't forget you had nick saying that the -- we had a second election. that was one of his threats in the last 24 hours. we haven't gotten a very friday trading. i wonder if a lot of them were self-serving. >> and the rally we're seeing today is based on the fact that we're having to have a clear outcome as opposed to who it was pointing toward. we've seen a big move in guilts like in other european bonds over the last couple of weeks and let's just remember that's not really driven by the election. that's driven by monetary policy expectations. by reinflation naryary pressures and there's a contagion effect. >> did you read it?
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>> yes. everybody else you must read it on >> we'll throw it back to you guys. >> bonds grabbing the spotlight. wilfred thank you so much. steve as well. we'll be getting out to them throughout the show. coming up though on worldwide exchange, a show of military from russia head of celebrations. we cross live to moscow with an exclusive interview with president putin's press secretary. >> fitbit files to go public. >> and from taxking on taxi drivers to car makers. they make on bmw. find out why later in the show.
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and u.k. labour leader ed miliband to re-sign after losing the election. that's according to the bbc. it's been a disasterous night. let's get information from wilfred on this news. >> thank you very much. yes, this is something that we have been possibly expecting all morning because the results were so bad for the labour party.
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this is just a bbc report at this stage. but of course we were expecting big losses from the labour party in scottland. that was a tragedy for them but it was already priced in. it's going to be based on how they do up until the latest expectations and where he failed in this election is in england and whales where they're expected to make gains in seats and made big losses. maybe he could have clung on to power but it doesn't look like that's the case this morning. he is due to make a speech in a few hours which as you said according to the bbc is expected to be a resignation speech. the big failure for him over the course of this campaign has been failing to convince people that the tory party's economic recovery only benefitted a few and the voters seem to be suggesting that the message that george osborne and david cameron were putting across is throughout. that is what has gone on in voters minds and they voted
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accordingly for the conservative party. back to you guys. >> thank you so much. let's take a look at european markets. the stoxx europe 600 getting a nice boost from the ftse. we're at session lows though. take a look at this right at the start of the trading session. we saw the session highs but have been receding ever since. we're still higher by 1.5%. later this afternoon we still get the payrolls outside of the u.s. the xetra dax higher. but the ftse 100 out performer by 1.6%. it was back above the crucial 7,000 level. i want to bring you some news on a couple of individual stocks. the italian banks third quarter net profit doubled beating forecasts thanks to interest and trading income. it's committed to selling it's 3% stake in the italian insurer
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toward the end of next year now another mover in italy is the energy company's first quarter came in just over 4 billion euros. that is ahead of forecasts. this thanks to a strong performance by renewables in the latin american business and stay tuned for an exclusive interview with the ceo coming up at 11:10 cet. don't want to miss it. enel higher by 2.2%. it's been relatively quite in the bond markets over the last 24 hours or so. the bond route we've seen over the last two or three weeks, that has been halted momentarily. we're seeing the ten year yield for germany at 58 basis points. very high vols yesterday and many people say we could be looking at range bound trade
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from now on. now that these excessive moves have been taken out of the market. let's have a look at the currency markets. the big mover is sterling. we're seeing sterling against the u.s. dollar at 15470 but also off the session highs, the jump we're seeing today was the biggest daily gain since july 2009. now that the markets seem to have a lot more certainty than previously expected before the outcome of the votes. the dollar did rise yesterday. that was on the back of the better than expected jobless numbers and all eyes on that nfp markets. we're seeing oil under pressure. this is snapping it's big rally that we saw. we have seen in the month of april. brent crude now bouncing back a little bit after we saw those big declines in yesterday's trading session. higher by .5%. wti crude snapping back a tad higher by a third of 1%.
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a disappointing print for china's april trade data. both exports and imports with bigger than expected declines raising hopes of further stimulus. let's check in on how markets are doing in asia overall, sri. >> just on that data, the trade numbers from china, carolyn, once again the weakening macro builds the case for more policy easing and stimulus but remember on a weekly basis there's been a lot of talk that the regulators could try to prick the bubble and bull run in the china market by imposing tighter restrictions so on a weekly basis the market in shanghai incurred it's biggest loss in about five years. it will be a big test for the market next week. we get data from china including fixed asset investment industrial production and retail sales. if they're on the weak side they'll build the case further. but we're hearing we'll see 25 basis point cut in benchmark interest rates before this
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quarter is done. elsewhere i want to talk about the sleeper risk is how i would characterize it for these markets. that is the higher oil price. yes it's creeping toward $70 barrel. could have implications for central bank policy. could muddy the waters in terms of the outlook for rates. we're all in a cautious move ahead of payrolls. if the number is very constructive that could be bad news for asian equity ifs the market starts repricing june rate hike by the fed. back to you now. >> absolutely. all eyes on that jobs report. sri, thank you so much. still to come on worldwide exchange, right through the u.k. election campaign opinion polls had the two main parties neck and neck. with the conservatives beating labor by some margin we're asking what went wrong with the polling data. that's coming up.
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>> they're set to form a majority government. >> elsewhere the labour leader according to the bbc has re-signed after the party loses key seats in the north in it's worst election result since
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1987. >> the market cheers the election results. sterling rallies while banks, home builders and energy companies lead the ftse higher. >> in other news syngenta jumped as much as 15% after it rejects a offer from monsanto. >> the trade deficit was wider than expected. that's a big challenge for the incoming government although the new government likely to be the conservatives, according to many experts they would do a better job than labor at cutting the deficit over the next couple of years. britain's goods deficit bigger than expected in the month of march. economists had forecast a gap of 9.8 billion pounds in the month of march but what we got was 10.12 billion pounds. february was also revised to
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show a bigger deficit than the original deficit. labour leader ed miliband is writing a fair well speech at his party's headquaters and will re-sign shortly. that's according to a number of press reports. his future was put in doubt after his party failed to make significant gains in last night's general election after 627 declarations labour have won just 227 mps. >> u.k. prime minister david cameron is back in london where he has given an election victory speech at the conservative party headquaters and will meet the queen later. the tory's surpassed all expectations and could meet a slim majority. it will likely lead to the resignation. ukip won just one seat. they're still awaiting the verdict. >> let's pick up there and just
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take it from westminster. we're joined now by catherine peacock peacock. but we're also joined by the two-time london mayor. ken, you are the most senior labour politician today. that doesn't surprise me. but what do you think went wrong? and i saw that in terms of the fact that a socialist agenda worked north of the border. why didn't it work south of the border? >> part of the problem is i have been all over the problem, where ever you go working class people that would have been labor for decades defect into the snp in scotland because they're angry. they're angry not so much at ed miliband but that last labour government. when i left school everybody got a job. it paid enough money to keep a family.
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now you have all of these contracts, minimum wage. people not even paying the minimum wage and we didn't build the homes. people think we had 13 years of the labour government and it didn't do anything for us. >> the voters have gone against that. >> 80% of our papers are owned by tax dodging billionaires that are determined not to have a prime minister to crack down on tax avoidance but i bet they'll say it's out ragerageous and have broken their promises. i'm sad to see he's thinking of retiring. he should put labor at the forefront of fighting austerity. >> but i think it's rich to be blaming this on the media and the way they painted this election campaign particularly when you consider how successful the labour governments were
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under tony blair when they weren't espousing the policies that should have won this election for miliband. >> it left us a legacy in which a big chunk of ordinary people in britain saw the quality of their life diminish because their good jobs were gone and housing wasn't built. >> you have been voted in perhaps any politician in westminster. surely you trust the english population to have done what they think is best in their economic interests regardless of what media was saying. >> that's fine but remember you say i was elected but my poll rating was down to 18%. because they depicted me as -- >> you came back as a two-time london mayor. >> absolutely. you stick to your principles. >> is that what they have done
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wrong. >> the average liberal democrat voter was left of center and they just watch. >> i can't believe you're saying that. >> cameron makes mrs. thatcher look like a human being. >> why do you think labour has done so much worse than expected. >> we've had the conservatives ahead all year. people have been talking about a late conservative swing. we said actually they have been ahead all year. you have to look at the underlying factors. leadership, having the right ideas for the country and those are the things that people were talking about in terms of voting for the top of the ticket. >> catherine, there were big losers last night and the liberal democrats and labour party were two of them. the third was the pollsters. how did you guys get it so wrong and the whole industry and algorithms. from the pollsters were wrong.
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>> there's two things to look at. first this is the voter which is what all the pollsters were doing during the campaign and the final voter of this election to see whether things are in the margin of error. as i said we have the conservatives ahead in our final poll but in terms of seats the exist poll was pretty good. >> ken, i want to ask where you would like to see the labour party leadership go next? would you like someone slightly in the center? >> we can't repeat the mistake of the any labour years. people will just look and think they failed to dlif foreliver for ordinary work class people. i'll be on the phone to ed miliband saying you stay and you fight. >> but ed was the trade union's man at the expense of his brother as well.
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a merge to the left is not what they're looking for. >> ed miliband was elected by one member one vote ballot. who is more likely to be normal rank and file trade unionist or couple of mps. >> i enjoy your radio program. it has personality. you two have been at each others throats constantly in the 1980s. is that what's missing with british politics? the lack of conviction politics and personality? >> i think a lot of the politician have conviction but they don't say that. you can't say that. >> that's taken all the passion out. i came into politics at a time when people wanted to do things. not because they wanted to be popular. if you want to be popular go into showbiz. don't come into politics. >> we'll leave it there.
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thank you very much. guys we'll send it back to the studio. >> thank you so much. let's get you a check on how european markets are fairing on this friday market morning. if you take a look at the european forces you'll see that it's the ftse 100 out performing and leading the rebound. david cameron is set to win with a slim majority. banking and utility stocks really grabbing the spotlight and helping the ftse 100 edge higher by 1.5%. the xetra dax german markets showing green up about .5%. >> the smi is doing well again today. syngenta with a takeover offer from monsanto. worth $45 billion with 45% of the bid in cash but the company says it's board has decided to reject the offer as it's not in the best interest of shareholders. reports said sygenta was working
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on a potential deal but they'll have to find a partner to help finance the transaction. syngenta higher by 17%. why did they reject this offer? it's pretty clear. they say at least that valuations in their stock is currently guessed because of the decline in commodity prices. particularly soft commodity prices. they say their valuation has been impacted by the move in currency markets so maybe they're really just hoping for a higher bid to come through from monsanto. other people would argue this is a company that doesn't really want to sell itself. they want to remain independent. they think they are the leader in crop protection which they are. they have really good position in the u.s. and they want to hold on to that position in their markets and then there's all of these regulatory concerns.
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specifically in the u.s. that's where monsanto is the number one in seeds. it's very hard to see the deal going through without asset disposals. >> you have been following the deal closely. what do you think is the likelihood of coming back with a higher bid? >> that's likely. this company has no debt essentially. they're a very very healthy company but i don't think this is necessarily about the right price. i think sygenta wants to stay independent. that's my read on it. maybe sygenta will give in if the price is right. maybe if it goes to 389. currently the offer is 449. 35% premium. maybe we have to see the premium at 50 or 60%. >> the market seems to like this news that it suggests that we could see a deal sometime in the cards. so that's why you are looking at shares up about 17%. we'll see. maybe they'll come back in or maybe another player. >> maybe another player. you have dow chemical out there. many companies. but if this bid goes through it
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would be interesting to see what the market makes of it. whether they believe that this deal is symbolizes the return of the commodity super cycle. >> or is this tax inversion? that could be another reason for this deal. >> initially. >> yeah. >> more on this news as we get it but let's move on. uber made a bid for nokia's map business called here for as much as $3 billion. uber is competing against bmw, audi and mercedes benz and teaming up with the chinese search engine on the offer. they started a strategic review for here after announcing it's takeover after alcatel lucent. nokia shares higher on that report. you can see up about 3%. >> still to come on the show russia flexes it's muscles in a show of military might. we cross live to moscow for an exclusive interview with one of president putin's closest advisors that says relations
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with u.s. are at a freezing point. we'll be back in two.
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welcome back. toyota reporting a net income jump of 20%. strong sales in the u.s. and
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europe offset decreases in japan and other regions. the world's highest selling auto maker, shares in tokyo up by by .8%. >> nintendo released his earnings. all the details from the numbers live in tokyo. >> thank you carolyn. nintendo's earnings for physical 2014 were higher than market expectation. and with this news the company stocks surged to a 4 year high. sales did drop slightly by 4% year on year and operating profit and net income did well. for three years in a row they posted operating losses but showed a profit of 24 billion yen and expect their operating income to double for the next year. net income also recovered and the net profit margin was 7.6%. if you look at nintendo's stock performance you'll see that for the past five years shares have
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decreased by roughly 30%. investors confidence had been low as they resisted moves into new software development such as mobile gaming because nintendo is famous for its hardware such as the wii u and nintendo 3ds. but they lost steam and smartphone based games are where the industry is growing. but in march nintendo announced a major shift in strategy and is forming a capital alliance with dna to develop games for smartphones and this was something investors had been waiting for. nintendo stocks have been rising ever since. some predict the good news will keep coming because if you think about the potential growth of the mobile gaming market and combine that with the brand recognition and globally known characters like super mario, nintendo earnings should soar over the next few years. now it's up to howell the new smartphone game titles will do in the coming years. that's all from the nikkei.
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back to you. >> moving on russia is gearing up for the biggest military parade since the soviet era marking 70 years since the end of world war ii. 200 pieces of military hardware and 16,000 troops will take part in the procession. yesterday they showed a state of the art tank in moscow in the final rehearsal for the victory parade. in a rare interview, he describes u.s. russian relations as a freezing point and expresses a hope that a new american president will help cure the tense standoff. joining us is keir simmons with more on that story. >> hey, seema. the optics of all of this is fascinating because the president of china just in the last few hours touched down in moscow. he is now in a bilateral meeting with president putin whale president putin's press secretary tells me that
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relations are in a deep freeze. the latest point of fury in the cremlin is that they say, he says that washington has gone around talking to european governments persuading them not to come to this victory day celebration marking the end of world war ii in which he makes the point that millions of russians died. >> we have to avoid situations when indifferent european capitals, american ambassadors are visiting presidents and telling them what to do and not what to do in terms of their relationship with the russian federation. a country feeling itself independent. >> he goes on to suggest that of course those sanctions have been put in place because of what's happened in ukraine by the west. he suggests they are not
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working. they are not changing opinion in the cremlin. >> thank you so much for that. ve day celebrations are underway in paris. the french president is set to host u.s. secretary of state john kerry in a ceremony to march 70 years in the end of world war ii. >> u.k. independence party leader i hopg seat. i think we have a live shot of that. we'll get that to you as we wait for that leader to come in. >> now #election, there was no shortage of creativity on social media with twitter in particular. the platform with the most laughs. some included a twitter account for paddy's doomed hat. because he said well if this election outcome is really going to be as bad as the current polls predict, as the exit polls predict i'm going to eat my hat. and another tag, the deposits
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lost by unsuccessful liberal democrat candidates. every time they get less than 5% they lose their 500 pounds deposit. >> speaks to the extraordinary level of social media and how that was a part of the dialogue in the run up to this u.k. election. even when ed miliband engraved labour's promises there was a #trenda # a # -- hashtag trending. >> another one he actually goinged himself. >> seema you undersold that big stone. it wasn't 6 foot. it was 8'2" and it dwarfed ed miliband. we were like what is he going to do with it? where is he going to put it? >> but the point is i think
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social media is a dangerous thing and it's been moved throughout the election. the moments that actually undermined the credibility of the losing parties on the night have actually been very engaged in social media and it's been the mockery over the bacon sandwich. the mockery over this as well. the mockery after the event of paddy saying i'll eat my hat if the pollsters were right. and you think also looking more broadly at how he took a bit of a risk being endorsed by russell brand. that's done no good for him. he took a risk gok for the younger generation. it's had a backlash. >> very interesting as well. labour have a bigger interaction on social media because of their slightly younger age of
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followers. that hasn't helped on the russell brand thing which was always amusing once he did endorse ed miliband it was already past the date you can register for votes. the other hashtag was after the question time debate when as he left the stage he had a stumble and we had #militrip going viral. >> i wouldn't have judged him by falling over on the stage but it has not worked. it's a relook at the strategy of engaging younger voters. they wanted younger voters to get the democratic vote in and change the legislation as well. they must be looking back and saying engaging millennials it hasn't worked this time around. is there any point in pursuing that even further. >> unprecedented amount of social media. you're some what new to twitter. you joined last year. steve you joined in the last
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couple of months. what's it been like for you gentlemen? you have been actively following the election. has social media added more color to the conversation? >> well it definitely adds color because people are pretty opinionated on social media. it doesn't always mean that we can report what we read on it but it gives color and for my point of view twitter is much more useful as a news following tool because you can follow targeted accounts. you don't have to log into every general news website and locate what you want to find on it. it's been helpful. you have to be careful what you read on twitter is reportable in that sense. but it's a good point that you mentioned that my good friend recently joined at steve underscore csedgwick but we're a long way behind them in the studio. >> i have to say as soon as i saw that poll last night i should have been tucked up in
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bed asleep. i saw that exist poll i couldn't stop. i was straight awake looking at the tv and on social media as well. so it is an accompanying tool just like the traders who have their wires from one side and cnbc on the other. it's a useful addition. i don't think it's dominant fact on its own. but it's a great thing to read. i still have problem with the dissemination of information. >> everyone gives their own opinion these days and we've had lots of attacks on all of the campaigns from all sides throughout it and obviously it's the tory message that resinated the most. pointing toward a conservative majority just short of the crucial number at the moment but it looks like they'll secure it guys. >> and markets are responding positively to that potential win. thank you for now. on that note let's look at u.s. futures. what are we expecting on wall street this morning? yesterday a positive session for stocks. the dow up about 48 points today. it's all about the non-farm payrolls report. will we see a stronger in number
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for the month of april and will that change the timetable on when to expect the rate rise. s&p 500 up about 5 points. still to come on the show president obama is expected to get his sneakers on and defend the terms of a major trade deal later today. details on that coming up next. stick with us here on worldwide exchange.
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and welcome everyone. you are watching worldwide exchange. i'm seema mody. >> i'm carolyn roth. these are your headlines from around the world. >> five more years, david cameron's party has victory in the u.k. election sending british assets sharply higher. banks, home builders energy stocks the bigger gainers. >> u.s. futures are in the green ahead of the payroll report expected to show employment bouncing back. >> sygenta jumps as much as 15% after it rejects an offer from the u.s. rival. >> heading for a collision, uber
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bids $3 billion for nokia's map business competing against car makers including bmw and audi. welcome everyone to the show. it is -- what time is it? 10:00 a.m. here in london. 5:00 a.m. in new york. if you're just waking up with us, thank you for joining us here on worldwide exchange. i feel like the story over the past couple of weeks has been anti-consensus trades. that seems to be what's working if you look at the currency market with the euro euro strengthening. it's been the growth sectors outperforming the defensive sectors. that's where you want to put money. you park that money there. >> i think a lot of people were caught off guard by the moves we've seen in the markets over the last two or three days. is it going to continue? over the last 24 hours it's been halted some what. we saw treasury yields snapping an 8 day winning streak.
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we saw bund yields coming down at some point yesterday. maybe that was it in terms of the sell off in the bund markets but what's key today is the report. maybe the u.s. treasury yields could go up to 2.4% even. >> and kaleita will continue to flow into the u.s. equity market. the dow with a higher open. now remember the wildcard in friday's number could be the average hourly wages since wage inflation is seen as seen to raise rates. let's take a look at the nonfarm payrolls we're expecting in terms of number. april forecast is 228,000. for march it was 126,000. we're expecting employment to dip down to 5.4%. taking a look at european
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markets really stealing the show as the conservative win is seen as a positive for markets. ftse 100 up 107 points. pretty much green across the screen. 11,473 up about 65 points. perhaps some of that has to do with the yields slightly coming off the highs we have been seeing earlier this week on the bond market. >> on that note for the xetra dax it's pretty resilient despite the fact that we got disappointing trade data along with disappointing output numbers pointing to slowing economic growth. i want to show you what's happening on the bond space. prices rising and yields down so much. the ten year german yield is at 58 basis points where as just yesterday at one point in the session it was at 78 basis points. very high volumes yesterday. also the ten year treasury yield is down some what from its 2015 highs currently at 2.158%.
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all eyes on that jobs report. in the currency markets yesterday after the jobless number wes saw the dollar gaining a little bit of strength and it's still doing that against the euro. it's fetching 11234 and we're seeing the aussie dollar a tad higher against the u.s. dollar. let's have a look at oil prices as well. yesterday we saw that big slump but we're seeing a little bit of recovery this morning. wti flat at 58.97. brent crude at 65.61. very closely correlated to what the u.s. dollar is doing. >> the election of course has a market impact in today's trade. david cameron is on his way to securing a majority government in his country's elections. let's take a look at the results. >> we have the house of common seats. 315 for the conservatives. nobody in this country would have expected a number like this. 227 for labour.
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it seems as though this could be the worst showing for labour in it's history ever. the lib dems another big loser in this election. only 8 points and he's expected to re-sign. still only one seat. we're still waiting for the constituent sy of the leader and the snp. well that was expected. 56 points for the snp north of the border but completely wiping out labour seeing it's biggest jump since july 2009 but still trading at 15466. what the markets like is certainty and going into this election people were setting up for days and weeks of uncertainty as they were trying to get a coalition. this is a big relief rally.
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we are higher by 1.6%. the broader gauge of the economy and higher by shy of 3% and small caps doing well indeed by 1.1%. in terms of the sectors and the stocks out performing this morning it's all of those sectors which would have been expected to suffer under a labour lead government. you have the banking sector utilities, transportation home builders as well. let's get back out to wilf and steve. >> yes, thank you very much. interesting what you said in the middle of that that markets like certainty and no one expected this type of certain result. we were looking at only 280 seats. that was the expectation and we're looking at them closing in for a majority. let's sum up what the surprises of the nights were astonishing results north of the border were for the snp but that was already
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priced in over the last couple of weeks. but it's a big change for the future of u.s. politics. the surprise is coming in england and whales and they collapsed there and expected to get nine or ten seats. both the leaders of those parties expected to re-sign at some point today. all of hah coming together steve and being taken well by the markets. >> i hate to burst the bubble of anyone talking about the market today but ftse back to where it was a couple of weeks ago. sterling back to where it was. in the same range but doing slightly better than perhaps the european ones on this yield, increase and bond sell off that we have seen. i think actually we now get back to fundamentals about the u.k. economy and those are very much dependent on the european story and what happens in the u.s. and interest rates in the u.k. so i would say that we're out of the
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woods in term of the short-term but medium term we have two referendums on the agenda within the next 24 months. one almost certainly on the referendum. great volatility there. the second could be about the union again if indeed scottland gets a very strong parliamentary support. so i would suggest, yes, relief for the moment but those fundamentals that include a deficit which they failed to get down as meaningfully as they hope. but it's no slam dunk going forward. >> i also want to get your thought on the strength of the scots in this election. the s&p has won 55 out of the 58 seats making it by far the party's most successful general election ever. what does this mean for the economy? for markets and for decisions being made at westminster going forward. >> it's important and worth pointing out the scottish nationalist party don't just stand for scotland leaving the
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united kingdom. they're also the furtherest to the left of our political spectrum there. >> it's a socialist party. >> it's a strong word to use. >> it's a socialist agenda. >> they're the most antiausterity. >> more state ownership of the assets. i would suggest that is pretty much a socialist agenda. >> it doesn't matter which word we use to label them they are the furtherest to the left and won a significant amount of seats. now they would have had much more influence in the next government if the conservative party on their own don't reach a majority. now it's looking like they will which waengseek weakens the hand of everybody else. >> 59 seats potentially. the entire nation of scotland. they come south of the border and they'll have zero power at westminster. >> they won't have zero because if we get a majority it will be incredibly slim and they never get 100% voting record.
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>> how would you say the s&p is going to influence a party which they are unbelievably opposed to. how do you think she is going to influence the conservatives? i would suggest not in the slightest. >> if you only have a majority. first of all you need a majority but i do agree. that's the system we have. we have passed the system where people vote in their local constituent constituentcies. >> nobody turned up for the vote. they're if furtherest left wing. but they'll not have as much power as they might have done. >> we'll leave it there. you guys can continue that very heated discussion off camera then. we're going to take a look at today's other top stories. sygenta confirming it received a takeover offer from u.s. rival
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monsanta worth $45 billion with 40% of the bid in cash but the company's board decided to reject the offer as it's not in the best interest of shareholders. reports said they were working with investment banks on a potential deal but monsanto would have to find a partner for the transaction. syngenta soaring up by 17.2%. 390 is the print right now. the question is whether they want to hold out for a higher offer or don't want to be taken over completely. >> uber made a bid for nokia's map business called here. uber is competing against auto makers including bmi, audi and mercedes benz. they're also teaming up with the chinese search engine on the offer. they started a strategic review
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for here a rival for google maps after announcing it's takeover of alcatel lucent. >> stay tuned as we speak to the ceo of italian energy giant after a better than expected first quarter. that's coming up in two minutes.
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>> italy's largest energy company trading higher after the first quarter came in above consensus. slightly above 4 billion euros and said that results were in line with the trend for the rest of the year. we're now joined on the phone from roamme. thank you for joining us. does your continued push into the renewable energy space make sense even if oil prices continue to stay quite depressed? >> well good morning. yes it does make sense. we renewable energy today is very comparable regardless of fluctuate on oil prices and, in fact we see renewable energy attention to -- all around the world. basically driven by this volatility. you know volatility in prices is really a risk for the economies of many countries and renewable energy is a fixed cost low cost solution
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increasingly so because of technology evolution in many different fronts so we think it's a blip but we think it will keep pushing it because of volatility. >> what what point will they start displacing conventional power plants. >> they have in many part of the world. notably one of them is brazil where since 2009 we have seen auctions for energy supplied by different energy sources. basically monopolized by renewables. we have a chart that shows that basically our numbers tell us that only 9% of the capacity that was awarded in this auction starting from 2009 to now has been awarded to gas fire plants. the rest went to different renewable energy sources.
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basically only because of price merritt. merit and there's no other criteria for these auctions. of course you need a lot of wind and sunshine but if you have that it's difficult to beat. >> your company is one of europe's most indebted utilities with a debt of 39 billion euros. now you want to sell some ag assets but that's hit a little bit of a road block in slovakia for example. how can you insure investors that you're still on track with your debt reduction program? >> we have assured them last year when we completed the sale which was a large success. today is debt is where we should have it considering that we also generate yearly in the range of 15 billion euros so they should be able to cover that and serve
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the debt. it's basically a sail no more because of let's say debt reduction motivations but because simply this is less strategic assets compared to the new strategy we have presented to investors last year and we think this is a major step and, you know, the sale is not related to debt. it's related to strategy. >> thank you so much for your time. francesco, the ceo of enel. >> now david cameron is on his way to securing a majority government in the country's election. holding on to 315 seats compared to labour at 327. joining us to discuss the fate of the u.k. electoral system as well as the government jonathan powell. also former envoy for the libya transition for the prime minister and tony blair's former
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chief of staff. pleasure to have you on the show. >> thank you. >> what does this mean for the labour party going forward? how does this end or has it just begun? >> it's a bad night for the labour party and i'm sorry for the people that lost their seats but it's also an opportunity for the labour party. they lost not because it had a bad campaign. it lost because it was trying to run from the left. if you try to run from the left you lose. when you run from the center left you win. >> do you think ed miliband will continue to lead the labour party? >> ed miliband is about to step down i think. everyone seems to think it's about to happen. we'll have leadership elections for four opposition parties. ukip and liberals and labour and there's a lot of changes in the opposition but for labour it's an opportunity. they'll find themselves in a difficult situation. this is a good time to be opposition. >> let's talk about the
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conservative party because it was a strong night for david cameron which means citizens will vote on whether britain should stay in the eu. former prime minister tony blair said the eu referendum would lead to economic chaos. do you agree with him? >> absolutely. if we get forced out of the eu it would be a disaster. it's going to lead to a long period of uncertainty. now we'll have a government of just torys and he'll have to go for a referendum. they'll be ringing their hands soon. it will be difficult to govern this with a tiny majority. if they bring in the dup they'll be hostage to them the whole way through. a minimum of a billion pounds they're asking for plus every time we have a problem in northern island that will be a problem for the tory government. on europe we have back benches deranged on this subject. he'll find it very difficult to manage for that period. >> we could be looking at a whole lot of uncertainty for the next couple of years.
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we're not just talking about one referendum which is definitely going to happen but a potential second one. a second independence referendum in scotland. what does that mean for the u.k. economy? >> it's going to be very difficult. i don't want to predict what will happen to the economy and the markets stabilize as they see a tory government coming in. they'll look back at our history and the last time you had a small majority like this or nomah joirno no majority it lead to real problems and that's the problem we're going to face. >> wilfred frost here from outside the houses of parliament. i wanted to ask you really what exactly we can expect david cameron to do. he's going to see the queen at 12:30 today but from your time from tony blair when he was reelected, what are the step of a new prime minister in office? who does he phone first? >> george osbourne first but he'll have to meet the cabinet
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secretary. he'll be waiting there for him. he'll have to start appointing cabinet ministers, junior ministers. he'll have to make a decision about whether he's going to bring in other parties. and then the queen's speech. that happens very shortly. we don't have that long period of transition. it goes straight from election night into government and that's what he's going to have to do. >> it will be an interesting 24 hours to watch. thank you for your insight. also the envoy for libya transition for the prime minister and former chief of staff of tony blair. still to come on the show diagnosing the industry. we look at the latest trends in health care after the break. stay tuned to find out more. [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights.
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let's turn to tech and opportunities for tech in health care. especially cloud based applications. one company at the forefront is imaging advantage and we're now joined by the company's ceo. great to have you on the show. what does your company do? >> thank you very much we're the largest company in the united states. we have about 300 or sofa
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silties and more radiologists than anyone else and we're also the largest tele medicine company probably in the world. we send more into the cloud than anyone else as well. so essentially we're a combination of hospital based radiology and tele medicine. >> but what's the cost advantage for the hospitals in the u.k. and u.s. health care budgets are really strained. do they have the money to invest in your new technology? >> that's a very good question and actually we don't charge them for this. we become partners with the health care systems and we're servicing the department of defense and army and navy and we don't actually believe the problem is not enough investments or infrastructure. we think the problem is not using the right technology absolutely. so as we look at your system as well as the american system, in america, if i can just elaborate
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we have a very fragmented hospital system so each and every hospital has its own radiology group. it's own radiology department and very little technology. so it's very similar to the amazon model where there were individual bookstores and amazon came in and created a cloud model and connected these together. so rather than having access to the resources at one hospital we connect hundreds of hospitals together so patients have access to a cloud. you look at nhs you have 200 facilities here in the u.k. government owned facilities. each one is run independently even though they're part of the national health service. there's an interesting and unique opportunity to achieve the same kind of results. to answer your question specifically when you do create that technology cloud based model what you're doing is doing utilization optimization like your earlier story about uber. we have turn around times go
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from hours and days to less than 30 minute which is has a significant impact on outcomes. >> love the intersection of health care and tech. talk to us about what you're seeing here in britain. what are your thoughts as you look to expand here in the u.k.? >> the uk., i wouldn't call it outdated. it's older but not outdated. we're seeing a lot of similarities and you're more advanced. it's remarkable to provide health care for 90% of your population and if you look at the report that came out this week you're doing it with half the equipment and half the budget. so putting money into a system is not the issue. people often think it's a money problem. it's not a money problem. it's actually a technology issue. what you need to focus on in the u.k. just like what we need to focus on in the u.s. is
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optimizing the use of those existing resources which is what we do with imaging advantage and we're getting good results because of that. >> thank you for coming in today. best of luck with your company. still to come on the show could today's jobs report be what it takes to bring back the dollar bulls? >> and arrows pointing to a higher open. it is all about the non-farm payrolls report. stick with us here on worldwide exchange. we'll discuss what to expect after this break. thanks for calling angie's list. how may i help you? i heard i could call angie's list if i needed work done around my house at a fair price. you heard right, just tell us what you need done and we'll find a top rated provider to take care of it. so i could get a faulty light switch fixed? yup! or have a guy refinish my floors? absolutely! or send someone out to groom my pookie? pookie's what you call your? my dog. yes, we can do that. real help from real people.
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comcast business. built for business. >> dave more years the incumbent conservative party sends british assets sharply higher. we're looking at the biggest gainers on the ftse 100. >> u.s. futures are in the greens expecting to show employment bouncing back. >> back to the table for monsanto as syngenta rejects it's bid. >> heading for collision, uber bids $3 billion for nokia's map business competing against car makers including bmw and audi.
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>> let's take a look at futures. that will be the market mover. the dow with a higher open by 44 and nasdaq with around 14 points in premarket trade. this after stocks ending higher in yesterday's trade. april's jobs report is expected to show a spring back in hiring after march's surprisingly sluggish nonfarm payrolls report. a strong jobs number could change the decision on when to raise rates. that's why there's a lot of focus on this jobs number. let's discuss more with the chief economist joining us live from chicago. hey, lindsey, how are you doing? >> good morning, how are you? >> if we get another weak jobs report following march's disappointing number could that, do you think, dramatically change the fed's clock on when they raise rates? >> well remember the fed doesn't base monetary policy on one data point. they'll be looking for this trend and even if we do see an
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above consensus number around 250, the market is looking for a rise of 230, that still brings that moving average around 200,000 down from 300,000 at the end of last year. so we're still still seeing a declining loss of momentum carrying over into the second quarter if we do see that. the fed is still going to be leery about whether or not the u.s. labor market is on solid footing. >> you get a bad number, how much are you questioning the rebound that we're expecting for the second quarter because we all know the first quarter is pretty awful. >> well you know i'm actually not looking for a very robust second quarter. if we look at the manufacturing data and some of the orders data already setting the tone for the second quarter it suggests that we're still carrying forward a lot of fundamental weakness as we move forward into the year. the second quarter may look slightly better than the first quarter but it's going to tell a
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very differ story than a 2014 style rebound that we saw in the second and third quarter last year. >> now disinflation deflation, these have both been a big concern for economists but the levetation and the speed, how does this change the expectations for economists going forward. >> it's interesting because in the april statement the fed acknowledged the continued weakness in price pressures even those declining prices outside of the energy sector. so while that very precipitous decline in oil has carried through into the ppi and into the cpi the fed has acknowledged that declining inflation pressure that we've seen for the past several years. >> yeah of course that's a big question. when do we see inflation come back to the central bank target of 2%. lindsey, thank you for joining us this morning. all eyes on that jobs report. chief economist at stern ag. >> let's get back to the u.k.
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election. a very important vote count has just come through. it's the one we've been waiting for all morning. that's for the vote count. this is the constituent sy of the ukip leader. it's a very close call going into this count. many people say that was a 50/50 call. so the ukip party only claiming one seat in the u.k. general election. this is another big defeat. the only winning seat. i guess we're now expecting mr. farage to step down as well as are we expecting from many of the other leaders. sygenta confirms it received a takeover offer from u.s. rival monsanto worth 45 billion with 45% of the bid in cash but the company says it's board has
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decided to reject the offer as it's not in the best interest of shareholders. reports said they were working with investment banks on a potential deal but they'll likely to have find a partner to help finance that transaction. higher by 6.67%. 18% to the upside for syngenta. >> coming up consumers warmed to the idea of wearing a fit bit to track their daily workouts but will investors also brace the company as it looks to go public? more coming up.
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welcome back. shares in yelp closing up 23%. dow jones sources say the company met with several investment bankers but a takeover is not imminent but the stock did move higher by 23%. >> 2015 could be a big year for tech related ipos. cloud storage company box went public in january and now a popular maker of wearable devices has also decided to take the plunge. landon is at cnbc headquaters with all the details. >> so fitbit offers a range of fitness tracking devices from the low end $60 to $250 surge
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wristwatch. on thursday they filed for an ipo seeking to raise up to $100 million. it didn't say how many shares it will sell. they intend to list under the ticker symbol fit. it was founded in 2007. the largest shareholder as a 29% stake. they sold nearly 21 million devices as of the end of march with more than half last year. revenue nearly triple last year to $745 million. it controls about 2-thirds of the u.s. fitness tracking market according to research firm npd. celebrities such as shaq have professed their love for fitbit and president obama has been spotted wearing the surge watch in public but that's attracting a lot of competition, including gar garmin, jawbone, and the apple watch. another company is make its debut today.
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bojangles, the restaurant chain known for fried chicken and biscuits priced it's ipo at $19 a share. the company is valued at $682 million. 80% of the revenue comes from drive-thru or carry out orders. it has more than 600 locations in the u.s. restaurant ipos faired well. over the past ten years the average first day pop has been more than 40%. bojangle's ceo will be on power lunch today at 2:00 p.m. eastern. make sure that you tune in for that. >> i've never been to one. landon, have you? >> you are missing out. >> i am? i am. nice and healthy. >> when you come back to america you have to get a chicken biscuit. >> it's a date. >> president obama will mount his latest defense of the transpacific partnership trade deal when he visits nike's
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headquaters in oregon today. nike is a big importer of shoes from asia. all company's manufacturing is overseas with a share in vietnam, a participant in the proposed tpp deal. ahead of his visit, sarah has a first on cnbc interview with mark parker at 10:00 a.m. eastern time. >> oregon any hometown. uber has made a bid for nokia's map business called here for as much as 3 million. they're competing against bmw, audi and mercedes benz. last month nokia started a strategic review for here. arrival to goolggle maps. >> before we go to break, this a reminder of your headlines this morning. u.s. futures higher as they're expecting to show hiring bounce back lost month.
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monsanto's takeover offer is being rejected by the business firms board and david cameron's conservative party is on course to win the u.k. general election.
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welcome back. the election results a big, surprise. the torys on course to secure a majority. labour and democrats doing much worse than expected. we're joined by the former press secretary for tony blair. good morning to you. thank you for joining us. this is a devastating defeat for your party. >> it is. i don't think there's anyway around that. we always knew it was going to be tricky in scotland but it's not that great in england either and i think we have to really understand that just sort of thinking about well who might lead and how do we change and
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there's got to be a really fundamental assessment of what has happened. it's not that long ago in historical terms that we were winning with the source of majorities that david cameron can only dream of. and it's been a very very difficult election in lots of different ways. not just the obvious, the outcome but i think even yesterday afternoon i don't think anybody thought this was going to happen on the scale that it has and i think that requires a really fundamental assessment of who we are, what we stand for, what our relevance is and how we apply the relevance. just walking back here from the bbc and a couple of people saying we should go back to tony and then i hear some saying we should go left and people have got to understand this is not going to be simple. it's not simple to workout how we have gone from where we were to where we got to an for example in scotland labour
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candidates and the establishment there will say that blairism is a problem in some of these marginal seats. they'll say if only you had stuck with tony's agenda you might have won so it's complicated now. >> do the problems stem from the leadership? did this start with ed miliband beat david miliband for the leadership of the party? >> it's hard to know but i'd go back further to be honest. i think that when tony left and gordon came in i think we all sort of did our best to make it work and we all maybe pretended a bit that we all agreed with each other the whole time and, you know, as you know i will always support the labour party. perhaps to a fault. i don't know but we didn't really have the fundamental debate. we sort of repositioned without being bold and open about it. to be fair to ed miliband he
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came out with a pretty clear and different position and the reality of that is its been rejected. >> interesting, does it come back down to personalities rather than policies? because we look at the fantastic election she has had and she stood on what is arguably a labour-type agenda. it's a left wing agenda. more social spending and less austerity. she won well standing on that ticket. so was it the leadership of the labour party that was the problem? and strong characters like margaret thatcher ken livingston and tony blair seem to have gotten the message across. >> clearly in a system like ours the leader of all the parties is an important factor but i think the snp's success in scotland is much deeper than that. i think it's been developing and building over a long period of
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time. let's be honest a couple of years ago david cameron, tony blair, all of us thought there's to way they'll get close to winning the referendum. they almost did. 45% and then even after that i don't think anyone in the world dreamed nicholas at that time thought we were going to get 50 plus seats. it's much more complicated than that. there's big changes going on politically in the u.k. and i just think we've got to be -- i think we should take our time. we took a long time not to have a debate the last time. i think we should maybe this time take a fairly long time to have that debate. >> on another note he's be taking a lot for saying i'll eat my hat. i was watching you at one minute past 10 last night. you said if those are right, i'll eat my kilt. are you going to eat a kilt. >> i'll give it a little kiss. >> careful. >> what i actually said -- i
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don't think it would be very tastey. what i said is if the exit poll is right and the s&p get 58 seats i'll eat my kilt. they got 56. >> who's the next labour leader? >> i don't know and what's more i think it is not -- this is not going to rectify just by changing the captain. there has to be a fundamental debate about who we are, what we stand for, where we're going to go. >> thank you for joining us. carolyn back to you. >> let's have a look at the market reaction and sterling against the dollar surging overnight on the back of the election outcome. 15438 higher off the session high but this is the biggest daily gain since july of 2009. also want to show you what the equity markets are doing. ftse 100 outperforming on the back of the slim majority which is higher by 1.8%. all the sectors that would have suffered such as transportation banks, utilities they are
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soaring today. xetra dax higher. we did get some previous appointing trade and industrial output numbers. >> let's get your run day. april jobs report is out at 8:30 a.m. eastern. aol, liberty media and crocs report earnings before the opening bell. let's take a check on premarket trade suggesting a higher open. the dow unabout 48 points. we had a 200% gain in the s&p 500. can the bull market continue? let's bring in the founder of average joe what are you expecting and how do you expect markets to respond, todd? >> well you know i think we're looking for about 250,000. you know, the markets are very proverse right here. if you get a great number that might indicate we're going to raise rates which would probably create a much bigger sell off in the market. we've seen the markets under pressure the last couple of day with the exception of yesterday
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but the bond market has been pricing in an interest rate rise which means they're anticipating a good number here. now the real problem here is that the numbers themselves, the jobs we have been creating have not been real good solid jobs. more of the minimum wage and service jobs so the report itself is really meaningless. if the number is good i think you're going to see a very hard sell off in this market and if the market number is very bad indicating that the bond market is wrong and rates are not going to rise. that free money drug we have been playing off for the last five years will push the markets up higher and possibly up to new highs. i think the number will be okay. right online and i think the markets seem to be like they turned around and it's more of a sell to rally now instead of by the dip. >> so todd if you say the jobs report later on could be meaningless what is really driving the treasury market then? is it oil prices? what is it? >> well i think what's driving the treasuries now, they're
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saying that there's going to be a rate increase. they are betting that janet yellen either thinks that the economic data is good enough to support higher rates. they're saying that because of now the new little bit of weakness in the dollar and of the strength in the german bonds that we should be able to raise our rates. three months ago there was no way we could raise rates because everything was way down. now that the rest of the global economy is coming up it may clear it for us to raise rates. plus yellen i think she wants to step up and show that she is in charge and wants to raise rates and say, you know what waultdll street does not control what i say. the economy overall is a mess. we're not in real good shape. there's no real growth. we've seen it time after time but yes they're making the bottom line but not the top line and not the growth and that creates the problem overall. >> that's why there's so much focus on this jobs number. what about oil prices down about 3% in yesterday's trade. does that suggest that the sell
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off in oil is not over? >> you know i think oil is probably 55 probably looks like a pretty good level. we've had a tremendous move. we went from 42 to 62 in a very short period of time and everybody wanted to throw oil out, the baby out with the bath water back when it first broke and now we're seeing a steady move up. this is just a natural sell off in a product that's probably going to go. i don't think we'll see $100 oil again but the $70 target is probably very much in range and after profit taking we'll probably see oil resume it's way back up. >> investors repricing their inflation expectations because of the rally we've been seeing in oil prices. we'll keep an eye on those assets. >> and the latest vote count
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with still 15 votes outstanding is as follows. labor at 228. this is a big big defeat for the labour party. the torys 320. this is a resounding success. doing very poorly overnight. the snp sweeping success above the board at 56 points. ukip only one point. >> a conservative party win is positive for the markets. >> that's it. >> thank you for joining us on worldwide exchange. next up is squawk box.
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good morning working for a living. expected to show jobs regaining some steam and that can keep a fed rate hike on track. plus there's an app for that. uber reportedly bidding $3 billion for nokia's mapping unit and a bronx bomber. yankee's slugger alex rodriguez hits his 661 home run passing willie mayes but as he hits milestones like this one there's a lot of debate over which multimillion dollar bonuses his team needs to actually pay out. you can imagine why. if there's an out, they'll probably take it.
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it's friday may 8th 2015 and squawk box begins right now. good morning, everyone. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. last night a twister blew through a texas community and it was all caught on tape. take a look at pictures from wise county northwest of dallas. there was heavy thunderstorm activity. several tornadoes reported. the risk for severe weather across the middle of the country continues into this weekend and we'll have a live report from oklahoma a bit later this hour. that's where residents are dealing with the aftermath of


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