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tv   Worldwide Exchange  CNBC  July 17, 2015 4:00am-6:01am EDT

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so far so good. strong results state side pushed the nasdaq to a record high. this as they kick off europe's earnings season with a bang. germany prepares to vote on greece's pail out package as the country's banks look likely to reopen on monday but imf chief christine lagarde says the plan is not viable without debt relief. samsung shareholders approve an
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$8 million merger as the controversial deal sees them extend control in the largest smartphone maker. >> shares of google up 10% in after hours trade. >> hello everyone. seema and wilf are on vacation. a very exciting show for you. this is germany's parliament set to vote on the new bailout deal with greece. that will follow about three hours of debate getting underway now but it's widely expected they'll sign off on the greek bailout measures and then we can start the talk on the bailout package. now this comes as imf chief christine lagarde warned about
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the sustainability of french debt. she wanted to see a full program implemented that includes financial reform. however she reiterated that some level of debt restructuring would be necessary to ease the burden on greece. lagarde added she expects greek banks to open as planned on monday. cash withdrawal limits at 60 euros a day but greece's deputy finance minister says that will decrease as the week progresses. this is after mario draghi announced he was raising it by 900 million euros the next week. he was also questioned about capital controls. >> it's hard to predict. we're all aware it's in the interest of the greek economy to have these kind of controls last as little as possible. by the way, the responsibility
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to leave capital controls is with the greek government. so that is something that they have to decide but we have to do this in a way that we don't run opposite risk. i would leave all the depositors being basically hit. so the capital controls have protected the depositors which, by the way, to a great extent are now small depositors. so it's the awareness that they're hampering the economy there but the idea is to move as fast as we can. >> meantime an official at euro
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bank said it will buy 80 bankers from fellow lender greek alpha bank. this required lenders to reduce their exposure to the balkins. joining us now is head of european g-10 strategy at bank of america merrill lynch. we got there in the end and it seems very anticlimatic. >> hopefully we get the break from greek headlines for the rest of the summer. however, this by definition does buy us time to deal with really difficult issues and they have to deal with a new program which will include from 80 to 100 billion more funding for greece and will deal with the debt which is a must and deal with capitalization and all of this at the time that the greek government is very fragile.
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>> a lot of issues to talk about here but i want to pick up on one very important part and madame ladarge pointed-- lagarde, there is a need for debt relief but we have to make sure that it's a lee fwal legal way. do you think they can persuade the germans that there's some form of debt relief. >> they knltcan't repay the debt but we have to be careful because sometimes greek feels that debt relief is an alternative to reforms. it will only be conditional to reforms within a conditional program. >> let's talk about the reforms. the greeks are now subject to a harsh list of austerity reforms that they rejected in the referendum more than a week ago but what we're looking at is a
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set of reforms which is much harsher than the one they rejected. do you actually believe that the greek people will implemented all of that over the next two years? the first two bailout packages haven't been implemented have they? >> they have done a lot of austerity so far. the government doesn't like this deal. but here is an opportunity as well to implemented the reforms they have not been able to implemented all of these years. tax income opening up the investment. this is how the recovery can come. >> do you believe that the risk of a grexit has now been removed? we'll come back to this issue in september. do you think it could still all fall apart? >> there's still substantial
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grexit reach. we just bought time. we have to stop pretending. the greek banks are bust and nothing will work without reforms. if the new program addresses this issue we can address it once in for all. >> i want to touch on the ecb yesterday because not really many surprises apart from the fact that they did raise the ela for greek banks by 900 million euros for one week. but you point out in your most recent note that they didn't address the tightening of the monetary policy conditions because we have seen thattize in yields even since june and that's reflective of the worries around greece. are you disappointed that they didn't really touch on that? >> exactly. we can say that it was a mind field but they manage to give the right messages.
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but 80% of the message was on monetary policy. the market was expecting them to push on the recent sell off and they almost ignored the issue. >> it is is quite likely if this continues we'll expect the ecb to revise their market projections in september which at that stage would suggest at the meeting room we give a more dovish message. >> all right. thank you for that. you're going to stick around a little bit longer. do send in your e-mails through our e-mail address or on twitter as well. let's get back to corporate earnings. electrolux delivered a strong beat with it's second quarter earnings. operating profits rose to more than $107 billion for the quarter ahead of analyst expectations. shares are higher by 3.6%.
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what a strong rise this morning. joining us now on the phone is keith, ceo of electrolux. how do you feel about it keith? >> we have organic growth of over 7% in which all of our businesses participated in that. it was a good quarter for the group. >> can you talk to me about the different regions though? we're still seeing some weak spots in europe specifically. a better outlook for north america where you obviously want to be more active with your intended purchase of ge's home appliances. also could you please touch on the emerging markets? >> yes, so to your point by differently region and market. western europe demand is picking up. so up about 4% which is good. eastern europe down about 20%. primarily driven by weak russian and ukraine demand. north american is good. solid, strong healthy market.
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china and brazil latin america were quite weak to your point. so it's a mixed picture around the globe. >> how much visibility do you have for the second half of the year and to what extend can you still -- do you have some wiggle room in terms of pricing and markets that are doing a little bit better? >> yeah of course it's a very competitive industry. our expectations is we'll continue to see good demand in north america for the rest of the year and western europe. as you mentioned t the visibility and transparency was difficult but our expectation is given that the country is in recession demand will continue to be weak in those markets, in the latin american markets. >> let's talk about the electrical fantdelephant in the room. the doj has been trying to block that transaction. now it seems you're going to
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court. are you still confident that you can close the deal and if yes, when? >> yes, of course we just disagree with the doj assessment. we think this is good for -- we think this is pro competitive and pro consumer transaction and we look forward to presenting our case to a judge in court and we'll do that this year. you still believe you can close it? >> we do. >> so that would be before the end of the year or early next year? >> yes. >> all right. you have talked about the cinergies but you haven't talked on the cost issue. how much would this deal cost you? >> the purchase price is public information which is 3.3 billion u.s. dollars. >> sure but what about some of the restructuring costs you would have to incur. >> we communicated those too. it's about 300 of restructuring costs. one time.
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300 restructuring one time for 350 annually that's a pretty good return as you know. >> keith, thank you for your time. the ceo of electrolux. okay. we are roughly one hour and 15 minutes into the european trading session. let's show you where we're standing. just off the flat line. you see that we opened a little bit stronger than that but since lost some of those gains so after that big relief rally we've seen as a result of the greek deal over the last couple of trading days it's waning into the weekend. we still get the cpi numbers later on today so maybe that will give us a little bit more indication as to what the fed might be doing but janet yellen has said twice this week she expects to raise rates by the end of this year and of course the focus here europe is also very much in earnings. just heard that we've seen a number of very good earnings reports. i want to show you the european
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markets one by one. the dachshund a little bit of pressure. the ftse 100 off by a third of a percent. but for european markets we're on track for the best week since january. so far this week the dax is up 3.7%. the cac up 4.5%. all right let's get back . ericsson is up 5.7%. 888 holdings shares high about 4.2%. they're trading higher and the company completed a $1.4 billion deal. shares trading slightly lower on the news. you can see them down by 0.5% and high by 4.8%.
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let's hear what the ceo has to say. >> we're very cautious. if it happens we'll be happy but we depend on our clients and especially around the world. we have to be very cautious the economic environment is still volatile in a way so we have to be quite cautious for the second half. >> still to come on the show new year new rate the bank of england's mark carney says we're edging closer to a lift off. what's the outlook for sterling? we discuss next. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make
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your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.
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welcome back. let's have a quick look at the bond market. a little look at the bond note. 2.34%. not much of a mood in yesterday's trading session. we did see the yield curve flattening. once again cpi is going to be on focus today and just a touch higher. in the currency markets it's
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really been a very strong week for the dollar as a result of yellen's comments over the course of the week. euro dollar has seen big losses but we're pairing back losses this morning and still below that 109 handle at 10891 up on the day. also pulling back just a touch by 0.2% but dollar-yen close to three week highs. let's get to some comments from the german chancellor. she says we want to keep greece in the euro zone despite political differences. trust has been lost in greece and that's very obvious and she says there is more effort from greece and europe that are needed. time-out, that's the proposal that's been floated by the german government specifically the german finance minister that time-out for greece was not
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doable. that's angela merkel speaking ahead of the vote for the greek bailout measures. moving on the decision as to when u.k. interest rates is beginning to rise is likely to come into sharper relief at the turn of the year according to mark carney. in the strongest signal that he would be ready to act. he pointed to firming of inflationary pressures. the governor did warn that economic stocks could impact the path of rate increases. >> the path of interest rates is much more important than the timing of the first rate increase. and i'm conscious that several important considerations which mean the actual path will almost certainly not be mechanical linear or predetermined. >> let's get back to the head of european g-10 fx strategy at bank of america merrill lynch. why is he making these comments
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now? does he feel like he has to catch up with janet yellen. i think they want to start preparing markets. they have not been extremely strong but also they have not been consistent. so they want to give the signal and stopped hiking. this is why the market reacted to their come mens. >> but the problem is investors don't know what to do with mr. carney's guidance because sometimes he's dovish and the next day hawkish. investors have been wrong footed by what he's been saying. i think it's really tough to follow what he's saying. >> that's actually true. i mean quite often we have been
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surprised with his guidance. but the important thing is to just focus on the data and when you look at the data then this is consistent with tightening. the fed will go first. it will follow soon after. >> so with the fed what we're expect as good a one and done move. they're going to be moving soon but then very slowly. would the same apply to the boe? >> it's very likely and this is the key message from carney this week. there's no incentive to go very fast. they are concerned about sharp adjustment in asset prices so they can afford to go slowly. but we saw what happened when the fed announced it the market was very very surprised so they wanted to make sure that the market start preparing for this so we have smooth moves. >> let's get to your trade on sterling. a 7.5 year high of 94.5
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following mr. carney's comments. can it rise further against the euro? and how much against the strengthening dollar? >> i would be cautious of this point and the fed moves before the bank of england. we see it weakening. it's already moved a lot. we have to be tactical. we like the dollar followed by sterling followed by the euro. >> the euro has been back to taking it's role as a funding currency. you see euro dollar parity when? >> by the end of the year. a lot depends on the first rate hike. our goal is for september. what is interesting this week the euro weakened despite the positive developments in greece which suggests the market has taken the developments from greece as a sign that the fed will most likely hike rates this year. >> it's been a really interesting move in the dollar.
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this week it's on track for gains of around 1.5% for the dollar index. i wonder to what extent this focus on monetary policy is reflecting in positions because it's been quite extreme at the start of the year but then that has unwound a little bit. is it back to the more extreme levels now? >> not yet. we have to be cautious not to get overexcited which is what happened earlier this year when the fed came out and pushed against the strong dollar. from now on the dollar moves has to be consistent with monetary policy and the fed will not hesitate to talk the dollar down if the currency overshoot. >> okay. stay with us a little bit longer. meantime let's get back to markets and earnings. the nasdaq closed at record highs held by strong earnings state side. here's a quick round up of thursday's corporate results. google's second quarter profit
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beat forecasts as revenue increased 11%. that was due to strong ad revenue. the number rose 18%. cost per click or the average price of online ads fell 11% but that was more than offset by the increase in volume. he talked about keeping costs under control. google rose 12% in after hours trading to a new record high in frankfurt. high by 12.4%. adjusted loss matching analyst forecast but revenue fell missing estimates on continued weak demand for pcs. on a bright note third quarter revenue will rise 3% to 9%. the company expects the launch of microsoft windows 10 later this month. that will spur orders in the second half of the year. at least that's the hope. amd rising more than 2% in after hours. germany off just slightly.
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schlumberger second quarter profit fell but they beat forecasts. depending on production in north america to fall more than 45% but they believe drilling activity in the region has hit a bottom and there should be a slow increase in the second half of the year shares are rising 1% in after hours and germany higher by 2-thirds of 1%. now it is friday. if you are thinking about your weekend plans and if you're already planning on taking a break this weekend you might be hoping for a comfortable hotel with great staff. the staff at this new hotel in japan, they're robots including japanese speaking and english speaking dinosaur. the entrepreneur that runs the place says it's not a gimmick but a serious effort to use technology. it will cost you about $80 a
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night for a room at the establishment. it translates as weird hotel. so we'd like to hear from you. would you like to stay at a hotel staffed by robots? does the idea of a robotic concierge appeal to you? get in touch with us. would you want to stay in a hotel run by robots? >> oh my god. i don't know. i would be curious to see how it's going to be. perhaps try it once although i like to have the personal tough. >> you like that but then you wouldn't have to tip. that's a major upside. especially in the u.s. you have to tip quite a lot. >> i don't know but at the end robots are taking over. we need jobs for real people. >> that's a very very good point. so probably not good for the service industry and restaurant industry. i don't know. i guess the service is probably not going to be the same in a
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robot hotel as in another hotel but maybe the robots are programmed the right way. anyways it would be interesting to see that. thank you so much for your response on everything from greece to yellen to the euro. i appreciate it. head of european g-10 fx strategy at bank of america meryl merrill lynch. we'll take a look at whether google can maintain the pace after this short break.
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so far so good. strong results pushed the nasdaq to a record high. this as the nordics kick off europe's earnings season with a bang. the alternative is chaos. german chancellor angela merkel addresses lawmakers as they prepare to vote on the bailout package. meanwhile, christie lagarde says the plan isn't viable without debt relief. >> samsung approves an $8 billion merger. it sees the controlling family tighten it's grip on the world's largest smartphone maker. >> google beats the street thanks to strong ad revenue. shares soar to a new revenue in after hours trade.
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off by roughly 9 points. this is after we saw a couple of days of strong gains on the back of the relief of the greek deal. the iran deal and the yellen testimony and we're close to 6 week highs. so maybe a little bit of profit taking or a little bit of caution about what could be in store the next couple of weeks. of course we also have the vote happening in a few hours time. the euro stoxx 50 is looking like this. we are looking -- let's wait for the euro stoxx 50. a small decline of 0.2%. moving on to the currency markets the dollar is under a little bit of pressure today after it was higher for the last couple of trading sessions and that gives some respite to the euro dollar which is currently changing hands but still below
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the 109 handle. it's a funding currency. cable has seen a little bit of strength the past couple of trading sessions on back of hawkish comments but the likes of the aussie dollar canadian dollar are still seaingeing weakness for a number of reasons. in the bond markets we're seeing the bund yields lower today. the ten year note yield is at 2.3485%. largely unchanged yesterday after we heard more of the same from janet yellen. speaking of janet yellen she prefers to raise interest rates prudently and gradually. speaking to the senate banking committee on thursday yellen says the u.s. job market is moving closer to a more normal state. a reason why the central bank is likely to hike rates later this year. she says moving too soon could threaten the recovery but
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waiting too long carries it's own risk. >> we also want to be careful not to tighten too low because if we do that arguably we could overshoot both of our goals and be faced with the situation where we would then need to tighten monetary policy in a very sharp way that could be disruptive. >> she is open to indicating u.s. lenders made progress in submitting submitting it this month. joining us is the opportunities fund manager at jp morgan asset management. yellen wants to see one rate hike before the end of the year. does the market position reflect that? >> probably not quite there yet. i think she was very clear that
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she's looking to see if it is still based on data. inflation is important. growth. what's happening to the job markets. they're all at the back of her mind as to when she thinks about it. she wants to go earlier and more gradually and have a much smoother journey. >> there's been a lot of talk about the lack of liquidity in the bond markets and janet yellen talked about it on wednesday and said i'm not too concerned but i remains to be seen whether the lack of liquidity will impact market pricing. are you concern about that? >> we have to accept it's going to come down slightly. banks have had to reduce their balance sheets. that's just a conclusion. the way we look at it is we're long-term investors. looking to pick the right bonds and corporates that have the willingness to pay us back. >> you like credit more than you like others at the molt. why. >> you could argue rates are still marginally on the low
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side. you can argue that we've still got -- we're going to have a pick up in growth over the second half of the year. we expect that out of the u.s. europe recovery pushed through the greece situation and is moving on and actually we still have a lot of central bank policy on a global basis and credit has repriced over the last year so you now have spreads on high yield corporates significantly wider than last summer. it looks like an opportunity. >> it looks like an opportunity but which sectors are you looking like? >> taking those risks off the table. those that benefit from a stronger u.s. economy and consumer that's improving. >> are you not concerned about credit quality? you want to steer clear of the energy sector but we've seen a big surge in m&a and we're pretty late in the credit cycle. >> for us we look a couple of things. we look at what they're being used for.
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still seeing a lot of the new issue markets coming in for refinancing and when we look at say the amount of ccc issuance it's less than '06 and '07. at the moment it's not worrying us too much. i want to come back to government bond markets because the trend we have been seeing in the forex market is a return to monetary policy divergence. to what extent has this also played out in the fixed income markets? >> well actually what we've seen more is the fact that they're talking about a starting of rates and slower moving. he thinks it will be 2.25 this time. that means actually a ten year guilt at 2.1% or 30 year at 2.7%. that's not too bad because
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ultimately when you get to terminal rate positioning what you see is a flat yield curve or inverted so i think that's actually lead to bonds to do pretty well this week. what i expect to happen over the next few months would be a platening of the curve. the front end moves up but more anchored in the back end. >> bunds versus treasuries. if we expect earlier tightening by the u.s. bunds would out perform perform treasuries? >> on the front end but not the back end. longer dated treasuries have out perform them. >> thank you for that. appreciate your time. bond opportunities fund manager at jp morgan asset management. it's officially emmy season. we'll take a look at this year's top contenders and biggest snubs right after this.
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a man suspected of shooting dead four marines in chattanooga tennessee had no known links to terrorists groups. that's according to the fbi. joining us now is dave.
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>> yeah good morning to you carolyn. this is still very much a crime scene. this is the second location of those two shootings yesterday in which four marines were killed and a number of others injured as well. it's a sad morning in chattanooga as four families and the community grieve here. it was 30 minutes of terror at two military centers. the question authorities were asking this morning is was this an act of terrorism? the 24-year-old gunman lived with with his parents just north of chattanooga here. his dad, in fact was a city employee continues to be a city employee. the gunman was not on any terrorist watch list at least that we're aware of his. his high school yearbook entry, taking a look back at this is haunting. this is what it says here. my name causes national security alerts. what does yours? that is from his high school yearbook. we should mention here they have searched his home.
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they have searched his car and they're also taking a hook at his internet active but at this point authorities are being pretty tight lipped when it comes to the media. >> thank you for that. meantime a jurors found james homes guilty of murder of the 2012 shooting at a colorado movie theater that killed 12 people and injured dozens. jurors rejected the idea that he was legally sane when he opened fire in the cinema. it now enters the next phase, will holmes will face the death penalty. >> today marks the anniversary of the malaysia airlines mh-17 crisis. family members paid tribute to the victims at a memorial service remembering the 38 australians that died. one year on there's still no conclusive evidence of what happened to the plane. ukraine's president petro poroshenko called for an international criminal tribune.
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>> staying with ukraine, the country's parliament agreed to pass laws required to unlock a new round of imf loans worth more than $3 billion. lawmakers approved the last set of bills required by the fund which has pledged a total of $175 billion to the conflict stricken country. >> let's change gears. samsung cmt agreed to a takeover for the sister company sending shares lower. this despite heavy opposition of the activist investor. speaking at the delivering alfa conference he voiced his disapprove. >> we think that the merger is unfair so we didn't start this situation as a activist battle with a company that's one of the most important pillars of
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corporate existence in korea we started as a value situation but we -- when it turned that way we evaluated as we do with every situation passive or active. this one i'm going to call it passive because we drifted into it rather than identified a possible activist situation from the get-go. and we evaluated the possibilities and legal as well as the vote because the merger has to be voted through and we thought it was worth the struggle. >> after the extraordinary shareholder meeting today, june filed this report with more details on this deal. >> they have approved unanimously just about 30 minutes after the meeting started at 9:00 a.m. this morning local time korea time as part of the shareholder meeting.
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this meeting started 33 minutes late. it was delayed with investors complaining about the delay itself and also the confirmation process of the shareholders coming in taking a long time because there were much more people attending the meeting than previously expected. samsung c and t put out 1,000 chairs as the shareholder meeting so a very popular meeting for this vote. again it started at 9:33 local time this morning. delayed by 33 minutes and the comments were the interesting parts from the vote so far. but first the shareholder that voiced their opinion at the c and t meeting said she does support the merger but the reason she gave is she does not want the price to fall like it did when the samsung heavy and samsung engineering deal fell through last time. the second comment was the complete opposite with elliott management's lawyer voicing
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their opinion. saying that they have continually opposed the merger and he is saying this has been a historical time for korean corporate governance and shareholder rights as well. you saw a very dramatic play out and the meeting will continue on after 6:00 p.m. local today. so watch for more comments and updates on monday morning. >> moving on ge is eager to win it's bid for alstom's power unit and is willing to approve it. it has proposed concessions to e uconn certains. stefen do you think that's going to be enough? >> we don't know yet. it only indicated it has presented results to get the green light but did not give details about what precisely are the concessions that it's willing to make. in a statement it addressed the concerns of the commission.
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at the same time the economic and strategic value of the deal. two months ago it was willing to sell off properties to get regulatory approval but at the same time concessions are are on alstom's services business. not enough for a general electric. so that's roughly what we're expecting from ge in this package of the european commission. the commission is not likely to extend it's procedure until mid september. the time to get it back from the main competitors of ge. but also toshiba and mitsubishi. it agreed to buy the unit for 12 million euros but they were concerned it would are reduce the competition and eventually would lead to higher prices and less innovation. it's not the first time that ge is struggling with regulators in
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europe. if you remember back in 2001 the commission rejected it's $42 billion take over plan despite the green light from the competition authorities in the united states. so that's a very important issue and we may have an answer by the end of september. >> thank you for that. let's talk more about deal making. distrust and legal risks stand in the way of many cross border m&a deals but one company is looking to bring the business match making into the 21st century. opportunity network is a digital platform to share business deals and is partnering with the london stock exchanges elite program. i'm glad we're now joined by the ceo and founder of opportunity network. brian, a pleasure having you on the show today. how does the network work? >> sure so our network is extremely simple. our viewers are ceos. they can share business opportunities across the globe.
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one with the other and what is making our network unique is the fact that the only way to get into our network is to be sponsored by a financial institution such as the london stock eckxchange or a large bank or other financial institutions worldwide. >> who does the due diligence? the financial institutions or you? >> in order to join the network the financial institution must sponsor the ceo in so that way we know the quality of the company being brought in the network. at that point, companies deal one with the other and the way they do due diligence is up to them. and then they bring it over. >> so what sort of deals do you usually provide or end up happening when the two companies meet? is it supplier deals? or m&a deals? what are you seeing? >> sure 50% of what we do is supply trade agreement on a cross border basis and then another 40% to be balance sheet
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driven such as m&a or private placement. >> so the financial institutions, they still vet the companies but do they actually work on the big part of the deal? the due diligence? the closing of the deal? or is the need for that middleman, is that removed by you? i'm just thinking the bank's probably not going to be very happy with the loss of potential fees are they? >> well what we are doing is unique because we are are working with the banks. most start ups born today are trying to disrupt the market. we're here to add value to each piece of the chain and banks realize that and that's why they are working with us along side financial institutions such as the london stock exchange group. >> how do you make money then? >> to prove the fact that we work with banks, banks and groups like the london stock exchange pay us to provide the
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service as a perk for their best clients. >> i couldn't believe it when i saw it but you're actually profitable. >> we are. we are in our second year and we have profits in the 7 digits. this is kind of uncommon for a new company and we're happy to grow on our own revenues and margins today thanks to the financial institutions working with us. >> what you're banking on is the time of the cycle that we're in. many of the m&a deals. a lot of people said that the companies want to engage in m&a because there's a fear of missing out. are you afraid of a bust happening very very soon? >> so i think that today definitely we are in a very hot market for m&a although i think that m&a will happen all across the next few years and along side with that we do all other type of agreements that are not only m&a but agreements on
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placement and we help to place their liquid allocation so at the end of the day we don't feel that a specific cycle would be beneficial for us specially. >> talk to me a little bit about your growth opportunities. what do you plan on doing with the funds that you're raising? where do you want to expand into? >> sure today we're active in 75 countries. >> 75? >> yes, we have thousands of ceos leveraging in tens of thousands and we're working with roughly 40 trusted partners which are organizations on the stock exchange group bringing their constituents within our network. we're leveraging our revenues to grow further and we believe there's a future for us where we will be the main exchange because at the end of the day we are an exchange for business opportunities going through. we are trading and match making business opportunities. >> i'm just thinking if you're profitable in your second year you're having huge success. there's a lot of demand from companies, the banks want to
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work with you, i would think there's a lot of competition for you. are there any major very serious competitors for your network out there? >> this is a fantastic thing and banks are so quick in deciding to work with us because we're the only kid on the block. so nobody else is doing what we're doing. we are truly unique on a worldwide basis. so that's why we're able to gain scale so fast and from that perspective we see that this is a game of scale so we have two years of advance on anybody else that would join the game now plus we are completely independent from any large financial institution and that makes us very attractive as an exchange. >> thank you so much for your time but stick with us for just a second. here's a real interesting story i want to share with you. if you're taking a break this weekend you might be hoping for a comfortable hotel with great staff. the staff at this new hotel in japan, they're robots. including a japanese speaking humanoid and english speaking dinosaur.
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the entrepreneur says it's not a gimmick but a serious effort to use technology. it will cost you about $80 a night for a room at the establishment. it translates and weird hotel. would you stay in a hotel like that? >> well that's a fair question. i think that it looks pretty cool. >> looks pretty cool. but you don't know what sort of service you can expect from the robots. >> that's a fair point. >> that's true. depends on what price you're paying. if it starts at $80 it's not really the five star hotel price. >> doesn't look like. >> we'd like to hear if you. if you'd like to stay at a hotel staffed by robots does the idea appeal to you? join the conversation here on worldwide exchange. get in touch with us. my personal handle is carolincnbc. thank you for coming in today.
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real interesting chatting to you. founder of opportunity network. the race is on for tv's top honors. the emmy awards has announced its nominations. she highlighted some of the major contenders and a few snubs that's been snubbed. >> the fantasy epic game of throwns dominated the emmy nomination with 24 overall including best drama. breaking bad spin off, better call saul was among six other series along with downton abby homeland, house of cards, orange is the new black and mad men that won the awards four tiles. >> my gut tells me it's either game of thrones year or one last win for mad men for the final season. john hamm won one last shot at best actor. break out hit empire missed out on the best drama nomination but
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tarajib. henson earned one for best actress. >> it could be a real diva show down. >> their competition also includes tatyana but not in the mix is last year's winner julianna margulies. >> five time best comedy winner has a chance to make it a record six straight. it's rivals include transparent and netflix's first time series. >> that's a pretty hot category and i think it will be pretty tough for modern family to squeak out that win. >> a surprise in the best actor field saw four time winner jim parsons shut out but jeffrey tamboar did win one. >> nobody could probably beat him and even if jim were in the category he'd have to step
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aside. >> veep star has a chance. her rivals include comedy's it woman amy schumer. >> remember we have a debate going on in the german parliament and we're seeing that the economy minister is speaking and he says we must end talk about the grexit. greece must change dramatically to get out of this deep crisis. the vote will happen in a few hours tile. after the short break we'll talk a lot more about luxury. is it falling out of fashion? are you moving forward fast enough? everywhere you look, it strategy is now business strategy. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now...
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to what it needs to become.
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>> german chancellor angela merkel addresses lawmakers as they prepare to vote on greece's bailout package. meanwhile, christine lagarde says the plan is not viable without debt relief. the nasdaq closes as netflixs soar 18%. the index on track for its best week since october last year. the tech rally continues after hours as google beats the street with a double digit rise in
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second quarter profits thanks to ad revenue. >> samsung shareholders prove an $8 million. it sees the controlling family tighten it's grip on the world's largest smartphone maker. >> let's give you a quick peak. we saw record highs in yesterday's trading session. the nasdaq is seen high by 23 points. the dow jones is a touch lower in the s&p 500. could fall by 1.8%. we did see gains for the dow too yesterday. goldman sachs numbers weighed on the market along with those numbers from united health. in materials of the-- terms of the european equity market for this week the dax is higher by 3.7%
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but giving up the gains this morning the xetra dax is lower. ftse 100 losing 6 points or so but the cac just in positive territory. so pretty quite end to the week. in terms of the government bond markets we are seeing yields for germany taking just a touch lower today as we are awaiting that vote out on the greek bailout package the ten year treasury note is falling just a touch with the yield largely unchanged at 2.35%. also what's happening in the currency markets quite a lot of dollar strength this week but that seems to be pairing back a little bit today. euro dollar is seeing a little bit of respite but still below that 109 level. imf chief warned once again about the sustainability of greek debt. also concerned, ecb president mario draghi who says the focus must be on debt relief for
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athens. >> it's not controversial that debt relief is necessary. nobody disputed that. the question is what is the best form of debt relief within our frame work. within our legal institutional frame work? i think we should focus on this point in the coming weeks. >> and these are live pictures from germany's parliament which is set to vote on the new bailout deal with greece. that will follow three hours of debate just getting underway right now and the person you're seeing speaking is the economy minister of germany. he says greece must change dramatically to get out of this deep crisis. he says we must end the talk about grexit. let's also bring you some of the comments from angela merkel.
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the decision is a decision for a strong euro. it would be irresponsible if we did not pursue negotiations on a new program for greece. he sees the condition in place for negotiating an esm program for greece. yesterday euro zone finance ministers signed off on a 7 million euro bridge loan for greece but here's a very interesting comment from angela merkel. she says hair cut in the euro system is not possible. so once again that pitts the germans against the imf and the u.s. joining us now is the chief international economist at ing commercial banking. what do you make about that debate over debt relief? seems as though angela merkel isn't getting any ground here. >> it isn't and without a proper cut to the outstanding stock of
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greek debt and is there anything meaningful that can be done to push them out further than they are. not repaying any debt service cost right now. it's going to make a substantial difference. the only thing that really makes a difference is if you look and say it's not 200%. it's another number substantially lower than that then they can make the changes and everybody else can get on with with it. the argument is bogged down. >> the problem is both sides are pretty stubborn. the euro zone says without the imf we're not going to engage in the third bailout package. the imf says we need a big, big debt relief. they were talking about a nominal air cut here. germany doesn't seem to budge so either side will have to cave. i don't see which side it will be. greece's debt is highly unsustainable and running the
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sorts of primary budge services required will not enable thelda to grow or make progress and you'll get the political backlash we're having to deal with. that's the problem. politics come in and you can't separate these. >> let's talk more about the economics here because mario draghi in his press conference yesterday he reaffirmed that the european recovery is on track and it seems as though he's not really concerned too much about the effect that the greece drama had on europe. we've hardly seen any impact have we? >> precious little. the direct trade links with greece and the rest of europe are pretty negligible. and they seem to ring fence their concerns about greece as well. we've seen little bits every now and again and we know in the background there are mechanisms that could be used should that become a problem. so there hasn't really been any issue at all as far as greece and the rest of the economy looks great. car sales growing at a 14% rate. that's brilliant.
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that suggests that things are going from strength to strength in europe. >> if things are going so swimmingly is it warranted that is ecb finishes it's qe program until september 2016. kind of no really. it doesn't really look that credible. a lot of people even right at the beginning of the ecb program were saying this is a potential concern here. at the point where mario draghi keeps saying we're going to keep things going until september 2016. then there's a change for bond yields to shift up and for currencies to whip around. that i think is still something that will happen in the next six months or so. but it's lurking in the background we need to be aware of. >> all right. we'll continue that discussion in a few minutes time. stay with us. meantime, let's give you a run down of what to watch this trading day. june cpi is out at 8:30 a.m. eastern. that's the key data point to watch today. consumer prices are forecast to
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rise 0.3% and 0.2% when you strip out food and energy. if the cpi comes in weaker it could encourage the fed watchers who see the first rate hike in 2016. also at 8:30 we get june housing starts and building permits and july consumer sentiment is out before 10:00 p.m.. the head vice chairman speaks this morning and ge and honeywell report earnings before the opening bell. plenty more coverage on this after the short break. don't go away. we'll be back in two.
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>> these are your headlines. the has the dark marches on. futures indicate a positive open following the record close on wednesday. they approve a controversial $8 billion merger and hulu is considering an ad free margin for its video streaming service stepping up the competition with rival netflix. >> janet yellen prefers to raise interest rates prudently and gradually. speaking on thursday yellen says the u.s. job market is moving closer to a more normal state. the reason why the central bank is likely to hike rates later this year. moving too soon could threaten
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the recovery but waiting too long carries it's own risks. >> we also want to be careful not to tighten too late because if we do that arguably we could overshoot both of our goals and be faced with a situation where we would then need to tighten monetary policy in a very sharp way that could be disruptive. >> yellen also says she is open to raising the threshold for determining the systemic importance in banks and indicated u.s. lenders made progress in submitting their so-called living wills earlier this month. >> the energy numbers have been softer. just a little bit stronger. >> in the month of july we've
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seen a big drop in commodity prices once again. specifically oil. so that means the number could once again be some what lower for the month of july. do you think janet yellen is going to pay too much attention to that or do you think her mind is already set on september or december? >> i think they want a hike now. i think they got to the point where they're asking the question to themselves what's wrong with the u. s. economy? and there has to be something wrong with it. you don't have that in a normal economy and it's difficult to find that. they know and they keep saying in their statements that the cpi is low because of transitory features of which energy is the biggest. let's look at the core and the core is about to be 1.7 now. 1.8 it's a little bit stronger. it's within a hair of what you consider a normal inflation rate from the u.s. >> they really want a hike at some point this year and i get that but at the same time haven't they always told us they'll be data dependent when it comes to their decision as to when they're going to hike rates for the first time? is there anything that could deter them from raising this
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year? >> part of the problem is they now painted themselves into yet a new corner with a new set of guides. terribly unhelpful. now it's data dependent. central bank is supposed to be forward looking and now they're looking back to tell them whether or not they can hike rates. it's a lottery. u.s. data is extremely choppy. it could be strong and weak and tends to be all at the same time. anything could really happen because they tied themselves to the lottery of the data run. >> let's say we do get a hike. a 25 basis point hike, how much of a dent is that going to leave on the u.s. economy? >> precious little really. let's put it another way. how much good has interest rates been doing u.s. economy recently? >> it's propped up asset prices. well i think that's getting back to the problem yellen is saying. if they leave it too long and have to stick it up that's where you get the stock market correction. not by sticking in 25 basis points we're all sort of
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expecting. >> appreciate your time this morning. chief international economists at ing commercial banking. still to come on the show super yachts private jets a fresh approach to selling luxury online. we'll discuss after this short break. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.
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>> it's been a difficult couple of months for luxury retailers in asia. they've all seen profits from their operations fall in the far east but there's one company that's taking an alternative approach to luxury retail selling new and vintage items through an online marketplace. we have got alexis co-founders of luxifiy with me around the desk. welcome to the show. let me kick things off with you. how tough is the luxury market in hong kong right now? we're seeing fewer chinese tourists come in and crack down on corrections and those protests. the aftermath of that. >> the luxury market in asia has been different. especially in china. but for us we've seen increased traffic actually in terms of affluent consumers to come and
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look at our website. something very important to know is that a lot of transaction in the luxury market space when it comes to these are taking place abroad and luxify is covering that. >> why do you think that more affluent investors or sellers or buyers are coming to the online marketplace? it's really hard to build trust on an online market space. wouldn't that deter some of the more affluent investors from coming there? >> there's a shift. people are losing more and more of a digital way to experience, to inform and to discover. it's a very good tun because we're addressing these needs and actually, like alexi was saying very good pick up in terms of visitors and inquiries. >> but i'm wondering if the luxury market isn't as strong as it used to be aren't we seeing a certain degree of promotional
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activity and discounting? do you see that as well? >> at the end of the day when you want to buy your luxury online you buy it online because it's cheaper and unique and luxify is trying to address those needs. >> you're getting discounts? >> we are not getting involved in transactions. sellers and buyers meet online and transact off line. when it comes to luxury purchase people want to feel and touch before they buy and this is using the internet as a source of information and then making purchase off line. >> what's your revenue model then? how much of a cut are you taking from each transaction? >> we're not a commission based company. the model will be based on listing fees. for the time being we have been growing the content and we will be implementing these new monetization streams in the near future.
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>> do you have to vet every seller on your page? >> absolutely. this is very important. it's part of the experience. we monitor, we approve every listing before it goes online. >> so right now you're very much focused on asia but you also have an office here in london. >> yes. >> what are your expansion plans like? >> we started the company a queer and a half ago in hong kong and the reason why we started it is because we saw an amazing opportunity to transform the way people access and experience luxury. in terms of expansion plan our goal is to grow a company in asia china, and southeast asia as well as london and we're looking at the states in a one of months. >> what about your funding? you raised 800,000 in funding. who is your investor? >> they're actually mostly in europe and in asia. they're project investors. >> okay.
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okay. finally what sells best on your website? >> what sells best? luxury handbags. we get a lot of attraction with luxury watches but we also you know are seeing a pick up in transaction when it comes to higher value items, and super cars. so going well so far. >> thank you so much for your time. i appreciate it. co-founder of luxify. let's get back to the markets everyone. u.s. futures right now seeing a little bit of a mixed picture. the nasdaq after a record high yesterday on the back of very strong earnings from the likes of netflix is seen pushing higher even more. higher by 27 points. the dow jones off by 42. in terms of the european picture we're looking a little bit more mixed today. slight losses there as you have seen on your screen.
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the ftse 100 off by a quarter of 1%. but hey for this week we have seen some really impressive gains on the back of relief over the greece bailout package. so far this week the cac is higher by roughly 4.5%. the dax is up by 3.7%. all right i do want to draw your attention to what's been happening in the italian banking space because it is set to name the italy stock exchange head mr. tononi as the new chairman of the bank. this is a quote from reuters sources. we have been awaiting the name of the chairman for quite sometime now because profumo wants to step down in the next few months. let's move on. a man suspected of shooting dead four marines in chattanooga tennessee had no known links to
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terrorist groups according to the fbi. joining us with the latest from there is dave at nbc news. >> good morning carollin. this is the crime scene. still very much the crime scene here. it is a sad morning in chattanooga as four families and a community grieve here. it was 30 minutes of terror at two military centers but was it an act of terrorism. that's the question authorities are trying to figure out at this point. that 24-year-old gunman lived with his parents. his dad a city employee. continues to be a city employee here. the gunman was not on a terrorist watch list. his high school yearbook entry is a little bit haunting. it reads my name causes national security alerts what does yours? we did speak with his high school friends that say this is not the person that they knew. we can tell you that they have
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searched his house. they have searched his car and taken a look at his internet activity. at this point the fbi and other authorities are not giving us the information that they found. that's the latest have chattanooga. carolyn back to you. >> dave, thank you for that. let's get back to the european corporate story. i want to show you what the shares of volvo are doing and we're baitwaiting for that because we've seen quite a turn around in today's trading session. the company posted earnings this more and they were better than expected and up by 2.8%. now we've seen quite a big turnaround. volvo is down by 6.24%. why is that? well, the ceo, the acting ceo said there's probably -- we're probably at the peak of the north american truck cycle so these comments putting a lot of pressure on the share price of the swedish truck maker so once
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again the acting ceo says we're probably at the peak of the north american truck cycle despite better than expected earnings from the truck maker this morning. all right. let's change gears. also want to tell you what germany's finance minister is up to. this is as the parliament will be voting on the greek bailout package or the start of that. he has been saying this is a last attempt to deal with this tiff cut task. of course he's talking about greece. he says we must help greece but the way to do it is so very complicated. he is asking german lawmakers, though to give berlin the go ahead to negotiate that third bailout package for greece. he says we all agree that we must help greece and germany's chancellor angela merkel. she has previously thanked him for his very hard work on the
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greek negotiations. but one of the sticking points as part of the third bailout package obviously is still the issue of debt relief. okay. still to come on the show as ge prepares to report quarterly earnings, just how much is regulatory red tape weighing on the company's bottom line? we'll discuss right after this break and we'll leave you with another look at how the futures are trading ahead of the open on wall street. the nasdaq is set to reach another record high today. seen higher by 26 points after rising 1.3% yesterday.
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welcome to worldwide exchange. these are your headlines from around the world. the alternative is chaos. german chancellor angela merkel addresses lawmakers. meanwhile, imf chief christine lagarde says the plan is not viable without debt relief. netflix shares soar 18%. the index on track for the best week since october last year. the tech rally continues after hours as google beats the street with a double digit rise in second quarter profits thanks to strong ad revenue and shares of
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volvo tumble after the ceo says we reached a peak in north america. production levels are set to remain unchanged. >> if you just tuned in on the east coast, it's 5:30. it's 10:30 here. it is friday. we've had an iran deal. we've had a greek deal. two speeches from janet yellen and here's how markets are pairing ahead of the u.s. open. quick look at u.s. futures and we're looking mixed. the dow jones opened lower though than the s&p 500. seen off by roughly 1.6 points. in europe it's looking softer. we have the ftse 100 down and
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the cac 40 is eking out marginal gains. this is on the back of six week highs we saw in yesterday's trading session. much of that really related to greece. >> google that has been making the headlines as little as 24 hours. excellent set of numbers a cording to analysts. 11.2% such as $669.66 in the premarket following it's second quarter results. gp morgan raised it from 625. a rating of market out perform and doing just the same this morning. raising the price target from
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775. we'll talk more about google later on in the show. and now actually google's second quarter profit rose 17% beating forecasts as revenues increased 11%. that was due to a strong add revenue. >> google turned in earnings results that thrilled the street. revenue came in at $17.7 billion versus 17.79 expected earnings per share at $6.99 versus $6.74 expected but there was also actually a little bit better than they might have appeared and that's because google had to deal with significant revenue head winds. revenue would have been $1.1 billion higher if not for the strong dollar. that would have been 18% growth versus the 11%. now to put it in perspective, last quarter the currency headwind was under $800 million. $1.1 million this quarter.
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part of the reason it was strong was youtube. youtube viewing time was up 60% year after year. that's the strongest growth on that line in a couple of years. mobile viewing was up 100%. youtube continued to be a key growth driver for google. revenue higher. also expenses in control and a new chief financial officers saying they're going to continue to watch that expense line even as they invest in revenue growth. i've never seen a new cfo better prepared for an earnings call. she didn't just talk about this quarter. she knew the history and the back story and how all the lines of business were going. investors loved all of that. >> electrolux delivered a strong beat with the second quarter earnings release this morning. we spoke to the ceo earlier on the show. he remains confident they can acquire ge's compliance business. >> we disagree with the
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assessment. he think this is pro competitive and consumer transaction and we're looking forward to presenting our case to a neutral judge in court and we'll do that this year. >> meantime general electric offered concessions in an attempt to gain eu regulatory approval for its deal for alstom's energy business. the company did not provide details on the nature of concessions. if approved it would be the biggest acquisition ever. this as the company is set to report earnings before the bell today. let's get out to the managing director at rbc capital markets for a preview of the numbers. what are you expecting and what do you want to focus on? >> the headline numbers that will come from ge this morning, consensus at 28 cents but that's not what investors are focused on. as you just said ge is trying to close on the largest deal alstom as well as a wind down of ge capital. updates on those initiatives are
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going to be much more important than the actual earnings for this quarter. >> dean the exit of ge capital, you have pointed out in a recent note that that has actually gone a little bit better a little bit faster than anticipated. demand has been very very strong. do you expect a positive update here? >> well that's exactly the ge plan. their initial goal was to sell $90 billion in assets this year. they increased that goal to 100. they said they would sell all of the pieces within two years. they moved that target up to one year. so the update versus been positive and for each incremental dollar they can get on these assets that's more buy backs and that's potential upside for the stock. >> when would you realistically expect ge to post clean numbers of them going back to their industrial groups? in the second quarter we'll see a $4.3 billion charge related to the exit of ge capital.
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>> that's exactly right. investors are wishing for this day really clean earnings. it's going to be messy with all of these charges and assets going into discontinue. we're going to have to bare with this for a couple more quarters but it's 9% industrial earnings and 10% capital and those should be expected in due course. >> what extent is it going to be hurting ge's numbers. >> this is the head wind that all the manufacturers are facing. the stronger dollar is impacting top line somewhere around 4%. this has been well factored. ge does do hedging in the quarter so it's one of these head winds that we're dealing with. nothing to do with execution. >> it's really interesting that in the first quarter qe didn't
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really change their guidance when it comes to their oil and gas business. now we're still seeing very very low oil prices. do you expect them to change their guidance this time around? >> so it's about 16% of the industrial revenues come from oil and gas. a big portion of that is upstream. a lot of deep sea and turbo machinery. they have been saying down 5 to 10% earnings for 2015 that includes that. that's the frame work that investors will be watching for. we'll be expecting an update on that. >> you had a rating on the stock. do you still have that? where do you see the stock headed? >> we're very comfortable with an outperform rating. there is what we find interesting is that fwrks e is one -- ge is one of the most underfunded caps.
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there's portfolio managers and analysts that have been for ten years plus underweight ge. all of this good news is going to draw investors into the stock. we have a $30 price target. we feel very comfortable that ge is on the right track. >> thank you for that. managing director at rbc capital markets. elsewhere samsung c and t agreed to a takeover from sister company cheil industries sending shares sharply lower. this despite heavy opposition to the deal. speaking to cnbc at the delivering alpha conference the hedge fund ceo paul singer voiced his disapproval. >> the merger is unfair. so we didn't start this situation as a activist battle with with a company that's one of the most important pillars of
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corporate existence and in korea we started as a valued situation but when it turned that way we were -- we evaluate it as we do with every situation, passive or active. this one i'm going to call it passive just because we drifted into it rather than identified a possible activist situation from the get go. and we evaluated the possibilities and legal as well as the vote because the merger has to be voted through. >> yeah. >> and we thought it was worth the struggle. >> want to bring you up to speed with the events happening in greece and we are expecting a cabinet reshuffle today. that's according to dow jones. that was widely expected even after the parliament has passed the bailout reforms earlier this week but there's been a lot of push back from tsipras's own party leftest rad kalsist radicals.
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government new energy minister. so the greek labour minister set to become the new energy minister. i'm not sure if that's the full extent of the government reshuffle in greece but we'll keep you up to date on that. also just to let you know that the german finance minister has just wrapped up his comments in parliament in berlin. this is ahead of the vote that would start the debate on greece's third bailout package and he says we believe we can bring negotiations to a successful end but once again important he's ruling out a debt hair cut for greece. still to come on the show oil chips and toys. a round up of the biggest
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earning stories investors are focussing on today. that's coming up in two. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
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>> first full week of u.s. earnings season wraps up today. let's get all the details from
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landon. >> fwoorng. let's start with amd reporting a second quarter adjusted loss of 17cents a share matching analysts forecast. but revenue fell 35% missing estimates on continued weak consumer demand for pcs. the market is still volatile but she is reporting third quarter revenues to rise between 3 and 9% from the second quarter which she expects will be the low period for the year and microsoft's launch of windows 10 will spur orders. revenue dropped due to weaker oil prices but results beat forecasts thanks to the company's cost cutting efforts. the world's top service firm expects spending on production in north america to fall more than 35%. but schlumberger believes there should be a slow increase in drilling activity the second half of the year. but revenue trailed estimates.
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sales fell 19% and now dropped for 7 straight quarters but sales of fisher price toys rose 9% versus a huge decline a year ago. hertz moved to cut more than $50 million in profit 2012 and 2013. the karenalcar rental if i recall overstated in 2011 and they plan to cut costs further and be buy back a billion dollars in stock. today it's fractionally higher although rose more than 13% in after hours and matel is down 3%. >> moving on hurks ulu is reportedly considering an ad free option for its video streaming service as it looks to become a stronger rival to netflix. it forces users to sit through ads during shows and movies even if$7.99 a month
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for its service where as netflix and amazon prime don't show ads. hulu could launch the ad free option this fall charging 12 to $14 a month. it's jointly owned by fox, disney and and comcast, the parent of cnbc. >> play resumed at the open in st. andrews after heavy rain. playing was called off just 15 minutes into the start of the second day to deal with flooding. quite a lot of flooding there. dustin johnson leads the field shooting at first round 65 to leave him 7 under. a 21-year-old jordan speithieth is two off the pace at 5 under. these are your headlines this morning. futures indicate a positive open following it's record flows on thursday. samsung shareholders improve a controversial 8 billion merger
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and hulu is considering an ad free option for the video streaming service stepping up the competition with rival netflix.
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>> a mixed picture for china that saw their second highest outflows. this contrasts sharply with the previous week's data where shanghai equities received $13 billion in inflows. that's bigger than the previous record. it's been a rough ride for chinese stocks over the past month with a massive sell off prompting intervention to prevent a market collapse. after the last four sessions we're looking more choppy today. xetra dachshund water.
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we are stl on track for the best week since january given that we got the greek deal this week. u.s. futures looking mixed this morning. set to build on yesterday's record high. the dow swroensjones off by 38 points. let's give you a run down of what to watch this trading day. consumer prices are forecast to rise 0.3% and 0.2%. if the cpi comes in weaker it could encourage the fed watchers that see the first rate hike in 2016. also at 8:30 june housing starts and building permits and july consumer sentiment is out before 10:00 a.m. let's get out to author and
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founder of average joe good morning to you. how important is the cpi print today today. >> i don't think it's important at all. no matter what the news is is what dr. yellen says at these meetings and indicated no interest rate rise in september and now she says well maybe december. we all know it's not going to be at least until next year because they really painted themselves into a corner and have no idea when to raise rates because they don't know how to get out of the mess they created. >> the data has been choppy. with we have cpi moving to the upside and housing numbers have been all over the place. if they continue to tell us that they're data dependent, what number are they actually going to be looking at if they're so volatile? >> i don't think they're data dependent. i think what we have seen here
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is that the process they have gone through when they missed the opportunity to raise in may of 13 and they decide to hold on. i think what we have seen now is they don't know how to raise and what data are they dependent on? but when you're only adding minimum wage jobs and you have the lowest participation rate in the job market it isn't very good and when you're getting lay offs from companies laying off $50 an hour employees and you're hiring $12 an hour employees it's not good. the rest of the financial data we continue to ignore it but you have big merger and acquisition and they left the middle class out of the overall equation of what's going on here which is going to create the bigger problem which is why retail sales are not good and we're not seeing the overall break we thought we would see. >> meantime we have to talk about the earnings picture we
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saw yesterday on the nasdaq. rising to a record high set for another positive open today. is it what we see every quarter? the expectations are coming down so much? so we can easily beat them? >> it's like when you do the limbo. you bring the bar down so low it's hard not to step over it. you have such lower expectations here and you have a lot of compression in the market here and i think we want to note that yesterday at the close you might have seen what we call a blow off top in the nasdaq and i would be very careful because of the action right at the bell and the number of nasdaq players all exploded right at about 3:55 yesterday going up in google's earnings. so i think you want to be very careful up here. this could be an opportunity to see at least a little bit of break or retracement.
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>> why do you think we'll see retracement? because we're still in the thick of earnings season so those gains at least as they pertained to the nasdaq they're going to continue for at least one or two more weeks. when do you want to take profits? >> if you're in the market you should start to look to take profits and move into conservative things in the portfolio. we have netflix and google and now bookmaking big moves. i think really you have to look and say when is it time to take this off the table? and there's no time like the present to take a little bit of profit off the table and move into something more secure because again nobody can pick the bottom or the top of the market but you're getting a lot of late charge here. usually that means the shorts
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are covering and then new money coming to the long side and typically what that usually means is that the market is getting ready to make a little pit of a reverse. i am just saying i think there will be profit taking and we're seeing tremendous valuations. netflix at 185 pe ratio. $115. >> okay. todd i take that point. author and founder of average joe that says take some profits on the nasdaq. all right. i want to bring you up to speed with what the german finance minister has been saying in germany. that's not him of course. that's mr. opperman. but he is saying we believe we can bring negotiations on a new greek bailout to a successful end but we still don't want a debt hair cut. that's it for worldwide exchange the week. next up walk box. we'll see you next week. bye bye.
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good morning, saving greece. a key vote on the reform for aid package. meantime in athens a government reshuffle is expected. google shares are soaring. the tech giant's profits top estimates driven by ad revenue growth. on its way up. plus behind the wheel. how choosing the right car color could save your money it's friday zwrul 17th 2015 and squawk box begins right now.
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>> good morning and welcome to squawk box on cnbc. andrew is off today. german chancellor angela merkel speaking earlier this morning. she says trust has been lost in greece but she argued that germany wants to keep greece in the euro zone despite political differences. merkel arguing that there can't be a hair cut in the euro zone. the german parliament is debating the reform for aid package right now and the vote is expected in the nest hour or so. in other headlines, christine lagarde is reiterating that they need debt relief. they increased liquidity assistance to greek banks and they're expected to reopen on monday. that would be three weeks after they closed. in athens today prime minister tsipras is expected to reshuffle his cabinet. there was a rebellion in his party earlier this week over the vote to approve austerity


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