i'm christine ta china sayss it now h h sufficicn evidence t tprprov that the ri tinto exexecivivit is hdiding has s stonn state srets. > m m ro westgate. the e g-8aiails to aee on ambitious gogoss for climatee actitis,s, but confirmrms the ongoingeeeed for economic ststimus. >> and i'm'mscsct wapner t th u.s. earnings s ssoson tsff to a bebeerer thanexexpeed start as alcoa a poporta smallerthan expected loss s d d se signs of imprprovenen > hellondnd welcomom t cnbc' "worldldwi e ehange." glglob equitieses t there okokg beer than they did at this time yeyestdaday. ththe fee cnbc g gloll 3300 is points.

europeanan sckck m marts one ho into the adadin day have gains near the topop othe sessioio the ftsee100 up .5%. 1%1%or theetra dax, .6% for the cac 40. the ftse100 sterday down oveve 1%. ththeetraightayay do.. the x xet dax wasas down foror fifth straightht tradidingayay, that's t t secret that 're trying to break at the mont. yesterday, of course, ee dollalr and the yenn benefitited f fm sluggish equity markets. today,y, dollar/yenen clamored . we were downatat 992. we got b bac to 993.. euro/dollar, baback to the m 1.1.. ststerng/dollar, 1.61ndnd eu/sterling, .863639. chstine, good to see yy. w we d a mixeded f fish in

asiaia. a lot of optimism, but a lot o pele are now cononrnrned about thth prpepect of a a global recovery. ta a a lkatat some of f th recovery. japan, th nikkeii225 falling 1.4% after t t j japeses yen ikikedo a fiveve-mthth hh agagait the dollar.. that pushshedhehe eororrs llow,, of course.e. in south korea,hehe kospi finished flat, ignororgg pretty much the ra decisioio o or lac of decision the central bank to leaveve r rat steadady in ts particicarar market. thth shanghai compositepp 4%. e e automakersoing wewell afr dadatahowed a surgege in autoo saleleanand eang seng is up 0.4%. th bombay sensex ispp .4.4%. oioiis driftd lower the last time we checked. ghght now, i iisis tradingg aro e territory of $62. right now,usus belowhahat at $61.03 abarrel. brent shshou b be trading wer, as well. $61.42, 99 cents highgh.. scott, howow are theutures lookining today?? >>etet's take a look, chrhrtitie

certaiainl we were justst watch oil and you wereoming off better than e eececte e earngs after the bet bell yeyestday. e futures look pititivright w as you take a a look a at e bobod d re. had to get 12 on n eedodow. we're at 52, sowewe'r 40 potst so above fair valuend the s&p 500 and naaqaq are above fafairalue, as well. tatake alolookt the ten-year -- or the bund yield, should say. 3.27%. thth i in e trsusu marketet, bond yess at seveveweweek lows here in n th u unid statesonon etet goodemand forhose auctions that we kpp talking about. 3.34% is whatwewe'r talkingng ouout the n-year note.. take a a l loo at gogold$913 ouncnce. that's up about t .5 iningusnonow is p pau rampscsc

and alexis dowand. alexis, , tt me begin with h yo. whwhat your tee as i said aftft better than expxpecdd earniniss out of alcoa?a? whatat ds s all mean for us? i think it's intntesesti fifigus, but we wouldn't be t t enthusiasticic. we believe it's s a ee off. energy cos we quite lowow during t theast four months and that's one o their major inpnp coststs an aluminum producer. we're still pretttty caious. expectctatnsnsere lownd we stillelieve that we'e' not o out ofof t woods yet. but if we seeee a rallyyoday based on tss fire, it might be t toooooo to goacack and b e market ain. paul, , it looksikikeweayay s a sitive rkrket at lst off ththe en off of tss results.s. what is y yrr feelingngnd what

does this m mea for ththe overa recovery?? >> yeahah ll, financial partners,s,e'e're independent glglob w wlth managers and whatt this meansis canesource for number differeren housus.. over the p pas c cple of weeks we have been lookikingtt rearch fr credit suisse a and justthihs mornininwewe we looking at research from bnpparibasas. d i would just disagagreitith the gentleman w w said th recession is drarawi t t an end. obououy, we won'tnow that for r so months ahead, , bu t te are go indicators oututhehe icich e, in our iew, signaling g th t the recession mimi to an end, vestment grade, cpopote bonds hahave rallieied, housing rovery figures are noto bad i in e uk now and weelelve t t thgsgs arar going t to prpre for the ne t twouarters. >> paul, there are two tngs here.. we have china's top e ecomic

enencyoming out to sese gd figures coming out will be around 8%. are you bullilishnchina? >> aololuty llllh. veve bn bullish onhihina since lasteaeand it's q qui inteteststinwatching those mimi on in december,r,ananua, february, sayiyi ininwas ovoverugug. and we'r're eieingigns of bambo shts inchina. ings are going up in a straight line there. a littlele cautious because the cod d be acocorrtion in the mmmm months. the summer r a little quieter. very bullish onn china. there's aamamilr pattern here. alexis, whatbobout u,u, how bullllh h aryou in cha?a? >n n thlong-term, wre defininite bullisish. b belve there's a hu nsnsum story to play in asiaia.

auautoar sales were 48% in junene thihing are doing well. and we're srtrtin from a a low ba. on the lo-term, we're stl veryry pitite in china a ahough we believe we migig s see correction on the basisiindicess so i itenent up oo fast. believe there will be anter try point in chinana during the nextxt c coue of months, prprob waitit uilil the end of the summerer. but ovevellll, we believe that th world we're sining less depression rris l lss systemicc ri. the markrk w wasricing a depression a c cplple months ago. now w eyey'r pricing a ression. but still, we believee it's a b o o rly toststep back inin china after ththe market went up 60% three momohs. so we e woddait a a couple of mohs before entering the mamark.. plus, we havave watch the social u unrtt and whats s happening in t t r resof the countrtry. paul, it's ross here. despite thefafactwewe just s sa

recession is over, you remain defense tive on your sttetegy recession is ver, butouou d't want too invest in ttt story. why? > sorry, whwhat sty? >you have a defensive positin with your pporololio >> s,s, because we are cautious. it's goioingoo take some time fr this the r recerer to s in.n. so in the next twtwo quartrter have linedup our portfololss defensnselely. but we have ouour c cor portfolo andurur satellite portfolio.o. and our c chi p posioio are part of o oursasateite poportlilio. the if you'reotot going to g gon there in the nextxt 12 monthshsu coululd ssss the boat again. i think wewe cldldee the index at arounund 4,000,500 pnds wiwith 1 12 monththss time.

i'mefensive in thee c cor pa of our portftfol.. >> alexis? >> yeah. we've been very bullllisonon china. we've been enjoyingg this ride. that's w w we're n now lookingt relalati trade wh h th other fund. 're looking at lonon gagas,hort oil, for eexale, or lonong japa, shortmecoco. these ararththekind of t tras s lilikeo do in t ttt kind off viviroent because we'remomore caututio now. but again, we're not saying it's the end of the world. e expin one of those tdes. what isis t thinking g bendnd lg gas and d orort l? >> i eaean, theratio atat oil a gagais retradingng at an extrem vevel at we haven't seen in years.

ifif y s spe today for $6$60 g gagas isproducingmumu more energy than o current prices.. we believe thisap is s gog g to narrow in n e e fure. capacity is going out o othe markrketlulus l isis traradi bew prprodtion costs. sohaha is gog g continin this trend. but because w we lilie that the economy is s sllll n bacack on ack, we wldn't play the gasas on a standlone babasi that's why w we keke the long s/s/sht oil rao.o. obama wantnttoto push theapapnd trade and that will p pus green ergy, this would definitely ve a a boosttoto gas versrsus c inin t u.s., as well. ul, sorry, y youanted to come baba? >> yeah,h, sure. just wantedoo add ere, i i

don't know if your vieiewe are awarare, t tt chihina is o of t only markets at t th momentt wi ov 200 ipos waiting too b listed a a that's verypoposive d i've n noteeee or k knoof any markets in t the world that hav got that many y ipos waititingo list.. thatat'slslsvery bullish for ina. >> i it' interestininghahatouous that. a a lo ofeoeopl would say t ts would bebe a negativeve for the equity markettbebecae there would be concerned autut soaking up all this additionaliquidity cocomi on.. but you ththinthth's not going toto ba big cocoern? > tre is aanger that vestors could pull money o out from other arereas a a lo ofentrepreneurs are nowo want to gogolist the dififfencnc between ththe s.s. and thechina stimulus is there toee and hass gogot t t system quitite qqckcy

now we're starting to see the bamboo s shoss of that effects.. >>paul, gd too talk tyoyou todaday,hahas for joining us, didictctorf w weahh ptntner management.. meme of the otr stories w we' follllowg g day, judgess ordere ththe.s.s governmento say whether it is prepapare to shut ubs in t theninid states as ptt of a lawsuitit t intify secret accounts. the u.s. is asking the isis nknk t reveal the nameme of 52,000 thelilits who may have avoided theheir taxes. e district judge has a ask about the receivershipip o receiver of ubs assets saying that touch remedieies must be reesesd if the babank fails too comply or is prevented from rep replyingng he said it's a question when rather than n ifheheank will tu i itsf around. so today in the uuk, we're wawaitg for the banan of glgld.

it c conuded its twowo-d setting meetetin policycymarsrsre expected to increaease the q quaitative easg program byby using up another 2 billion pounds and injnjtiting that into the economomy. the ff says it'smomore ueaeat abououththe growth in 2010. in corprpatate nenews the world biggest t salemaker volume ys may n ndd moreoans for a a peod of one yearar tprprove profitababitity. aifrance kklm y beorced to t w worngng hours for t t first time in i its h htotory in a a offset slumping demand. at's according to the ceo's ceo. the demand forcargo is brutatal whilee the demand f business

trfic is susuffinin traffic c rr air franceeell in junexceeding a 55% cut in cacacicitykrit chririste.e. >>hina has confirmedhaha ri tintomployee an a australian who is s beg g tailed for stealing statate secrets from m foreigncoununtr prprosutors have sfificit evevidce that whwho stole state crets. fourriri tintntompmpyees were detaininednn china o ove the weekend. he declined to comment on the nature o oththe s srets butut ss that this should nott affect relations between ststraa and china. officialals lllle able to visit who on frfrid.. memewhwhil rio tinto has reportededlyululle talks w wh h hebei i iro group. a hebei reprereseatativ says h

gothth notice e fr r riooday. china failed to s sike a deal on a 45% cutut last week. d still in china, the e ecomymy wi n nowrow atbout 8% thiss yearar according to a rearch blblhed by a chinese thinknk tank. the officials journal sighted saying the chinese economy ss touchehed ttom. but t isis does not mn a sure cocove. ina is du to report gdp fires on july 1 1h. andchchriinin a alc reported a sonon q quaer loss as volumes led to a big deen n rev few. t results did beatt analyst

forecasts and the company s sawn improvovemt t fr the first quarter. the ceo ss efforts cut cos are working. alcoa hahacaled back productctio more than n %% anand iselling sesevel businesseps alcoa is sticking witith f forasts t tha glalal consumption of aluminum will drop 7% thisye.. shshar rose 4% in after hrsrs and todayyinin franankft t we ke a look at the board here getting a l lif bybout 7%7% thi rning.g. soso a nice lift r alcoa today. theppip will buy upup to $140 billion in ans v vsusus the original pgram. ititas named ninin fund manager who will contribute 10 bbilon. those companies includude blblacock, ininveco. on noticeable aenence is pimco

which says it withdrew fmm coideration last month on concerernsbobouthe progogra structure. > meanwhile, the leaders ofof the g-8 p parcicipas have agreed to cutasas emissions by 0%. th heads of state haveailed to reach a a agreement with inda and china toharbor e essssio by 2050. also, the headads of atate have agreed t tha it's t e ear to thdraw stimulus measuress omom the economymy as a r rovover ist yetsusure > tnsnstor: firstly, althohoh there are signs o stajz, the economic c criss is f f om of and that's t the unanimous alalys of all the g-8 memberer cocondwe must p into aion ththe rere upon stimulus pls.s. itit'serertaly not the time to loosen our efforts. >> andoioing us fm m th-8-8 etetg now isis claudia penzote.

whwhatanane expect today? >> r reptete well, ss, thiss i the day t the g-8 b beces the g-14. weililsee china, india, memexi, you willl s sgygypt her today. that i is g-14 plulu one. these tass today will reininn economics and climate, but the will probablylslso go world trade. the leaders a arrivinin now as speak. the meeting wilill start in jtta few minutes and they willll t t abtt obal themem,, they y wi talklk autut development for th poorer cocounies. inin t afternoon, we'llststt t o tata a abo trarade therereayay b some statetentnts made on haha. that is exctct in a t tra dodocuntnthat will be announcnc this arch. you'll get n new from clclime.e. obama wiwille e eting briefinin afafrr a a meeting helel by the kyoto expected at the e dd of isisyear. so some important statementntsay be come fr erere. this i is pretty much a a full

schedule.. ayayromththat are the firir laes that are about100 kilomemete in ro.. this i i after a day in whwhic ththeyet the pope andn n whh they had lunchitith e rome mayor and tn n th afternono withth t w we of ththe italian president. lastlylyo o meion a visit, a spececl l visit, thee two dauaus of presidenent barack obamama m toearn how to make itatalice cream. that's pretty much w wha isoioig on h he so fafar. we will have moreoror y you lat on as thihing dedevep.p. >> do we know t the flavor?? >> i think it was a fit flavor. >> ok. not ststaco. >> auaudi thank you very much. still to ce on the prprogm,m, t bank o of englands id to keep r rat on hold. wel bring you meme analysis. u.u.s. same-store ses are o lateter today. will they givive ore signs of green shoots in n ee u.s. economy? plus, a chineseehink t tkk says

s s onomy has becomed out. but caneieiji hold t the rest of the world up, as well?

we're going g b bri youup s spe witit where we arare

obal equitit markets starting off with bey in london. >> thanks, roross thth ftse 1 is edging higher. let's take alolook at s som of e p stories in the uk today. we have heaea from vevel cocompieies o have upted us on eir businessss hahas, the bigigge recruit her in the u ukayay fourth quarter fees fell ard, 40% lower. mand has been akening. ey've seen a real drop-offn their permanenent afaf down by 57% in t the period. so nomprovement seennhere the recruitment pipictee f fm m hayes. brisisfoods is come with their tradingg update, , too. ababs sprimark for one of their bubusisses, aretail low cost fashion retailer in the e uk that representnt a aelelerion i sas s r that ccomnyny soomome res hz is coming roroughere.

it is nice to s seee'e' up ababou1.1. in germany. volulumearar very slow. coererank, s.a.p.p. and m.a.n. are the bestst performers. s.a.a. reting tonpgpgrato buyy frfrom bank america merril lylyncthis morning and d a.a.n. reacting too a a positiveroker comment. weust got brbrkiking newsroro gm, especially whenentt comes t theieir european sasas s fothe second q quaerer and, ofururse the stop performerhere iselel ailing opel in theecond quarter, gm managedoo increase op s ses by45%. chchrorolesales, at the same time, up aboutut43%.%. over the paris. >> andnn paris,hehe frenchh market isrecoveringododay after a n negive ssssio we h hav a pososivive sessision arcelormititl l afr they announceced eyey'r in a positio for economic ecovery. ararcermrmtal is the second biggest gaerer on the cac 40.

so traradi ghgh, puj yost citron after s sayg that the company could teaeam up witit tsubishi to d delop hririd gigis for itsts fututee vehicle. at's positive news for the future of thee company. w w tring a bit lower, aiair ance kklm up3.2%afafrheheoo sasaidhahathey would cut working hours s afrr the summer for the rst time i iitits historyynder falling demand air franceklm this mornining opened a b higher and now the ock is bit lower. noover to chloe in s sgagapo for a few of the ian mkeke. >> greatato o seyou, stetephe.e. weeeeeing a lilit picture in asia, ofcourse, nonortsisia to thdownside ong with auaustlili slsligly off to thehelong hand. we're seeing gains f t the greaear r cha region.

anangh composite comining f fm pport. this onn speculalati tt somehow the troubleshahat re seen betweeee rio titint and china wl somehow benefitron ore negotitiatnsns f the chinese steel ml. take a loooo at. the e ma questionon at r r dwe nto, already we're getting rertrtthat thesese australians will be abab t to see -- wilill able to get t consular visitss torrrr, friday. and accorordi t t varario media ports, thisasase invnvolss a government crkdkdow on government irironrere trading. acaccoining othths,s, l lotf it is rumores and it's vevery h hao tell what is fact. but so far, it lolook likehey are beingg charged for stealing state srerets andnd chinines officials say thehehahave proof

but a not willing to s sl them to the media. noovov to scott iththe united states. chchlo thanks. good m morngngo you. on this busy day in the u.u.s. jobs a a retail in focus t tod hehe in the united ststes. weweek jobless c classre o out t 3030.m. new york timime and forecast t to opop by 4,0000 toa totol l of 610,000. at 10:00 a.a.m.hohosale figures llll beleased with ininveororieexpected to fall there by 1%.%. meantime,lizabeth duke in chicago topeak at an fdicic confnfercece a 9:00 a.m. at 2:20 p.m.m., minneapolised prididengary stern i i in hena to talk about the response to the ononic crisis. fefed airman done o old kohn wil speak tohe houseinancial serviceses cmimitt about makini thee fed ee main rulator of u.s. systemic risksk.

heheavrain and cooler mperatures may have hurt m man retaililss trying to sell susumm-related itemsast mmon.. sales s ar forereca t to op abot 5% iustrywide incncdiding wawaart which no longeger rorts ququarrlrlsales.s. th i is y yrr global ststocwawa, chririinine. coming up onon "worldwide exchange," a thinkanan sayshehe economy hasshit a ottom. but t doouou aee? e-mailils.s.

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i'm christine e tan. china says it h evidence t tha the ri titioo executive it is ldldg has slen state secrets. >> and i ioss westgate. st ecb has c cfirmed an ongoing need for the econonomistimimul.. and i'm scott wapner in the united statate alcoa repororngng amaller than expectctedosos and says it sees signs of improvement. >> youou'r watching bcbc's "worldwide exchahang"" thelcoa report has helped equities today as we work towards thatt u.s. openn little bibiter.

the ftse cnbc 400 is up 144 popoin.. the f fe1000 down n neayy over yeererda butoday it's tinin to c cra back those gains. up .3%. the x xet dax upp 1.3%. cac 4040upup .9%. theacact that the linine waslcoa wass higher b bas o o cost c ctg foforts. the dollar/yenweerer, e dollar slighter firmer againsts the yeyen. euro isacac upto midid 1.39 against the greenback. th pound has reclaimimedhehe 1.1 helplpl l agnst the dollar an the euro is flat aiait t pound, ristine. > ross, here in iaia we saw a mixed nini.

a lotf early optimism abouout the ste of the global economy pulling away i intthe bookdrop. e e ye pulled down t t porters, dragging downwn t jajapasesearket. theosospi endndedpp pretty much at. very l ltltle pact coming f fro the central babank position to ldldates eady. automakerseaeang the way higher because o o stronger tnn expectedututo sales for the month of ne. ee hangng sg g up 0.4%. thebombayenense climbing 0.3%. overalall, p prey mixeded finis hehe in asia. scott. a a chststin let's take a a okokt where the united statate is setting up for itsts trading dadatoday. ssssad been meioned the beer thanxpected enninings mbmber for alcoa. me store seses are out today,y as we. andd weesisiificantly above fair value erere. thasdaqicking up a a ttttle bit, the s&p 500 is good for about four five points orr so. take a look at the teten-ar

yield. lo e of the yieldld curve. ee y yiessrere at a abo t the lowestevel on thetrong g dedema t tha we've been eing. 3535 is the yldld othe n-n-ye, ross. >> the bank england expected t to keep rates on hol todada butorore focus wiwi b be on wtt d doe with the quantitative easing programam. rc yoes, good see you.u. thanks so o mu f fcocomi . ululyou be surprised if f th babank of e engndnd doesn't spe another $25 billion in the ne coupup o of weeks? >> i would bee surprisesed. whatat w we' seeing suggeststs stimulus iss eded. iteeeemso be working. wewerere sing some gngn of recovery in theukuk rrovery. ononop of that, t tnk we e se sisign of uncertaintyy o othe demand side and therefore it would be usesefufofor eank of enengld to provide addititioll informatatn n onts purchase ininteioio.

ey're cominingutut with their arterly forecast, a ll. wi t the askor more oee this $150 blili has been spent? wh will they do in the next quarter and in the r rt of the yeyear >> i think thehey llll need to a formore,ifif for nother reason, , to eliminanaonon fm t maetethefefeelg that the firepower of the b banff england hausted. ey need toelel the m martt thth i if they decide to, they n the buy more and thatatouould allow them too finetune the exit from the guild buyininststragy. > narcotico,,hihis is christ. do you t thi t thi is on thehe k of segs bychina and ivendd yaya >> we are seeeeinild decoupling with larargemerging markets starting t to c com out of thth ceceion in a mo decisive waway. that will have t thelolol economy y aswhole out of the

ceceion by the end of the year, including a md recovery in the u.s. whereaeas for europ will needd wait u unt probably the middle of ntt yr. sot's nkurnlging. it still mns that we willeeee only a ryry gradual recovery.y. t i thinkperhaps the mtt encouraging part of the imf report is thendication t ttt we are reaching inflexion popoin e estates for bank lseses. so the im indicating that t the next round of revisionso banks ght be finally a d dowarar revision.. >> s see of the manufacturing data has beenn upbeat of late, t on the consumer front, there'e' nondication yet t tha the coumer is readady get out there and s sndnd again.. we're gog tget some chahain store sasaletoday. what are you looking foror on tt onont more importatant consumer data starts to trickle out?

>> looking f for statalilizaon d some graradu recovery of cocoumer sentiment and of f spending. thee consumumer outlook is c cr anand 's's the reaeaso why the numbers s fr last w weeere such a didisaointment. ththouthe n numrsrsn consumption, we will not have a strong rovover a w wit ununemoyoynt still increasing and house pricesryryg to stilile, the o olook is veryy ffffict. marcrco,haha you so much for joining us. the devevepiping titis have

demanded their rich counterparts commit to steeper short-term reductions, bubut ee leaders of the e rlrld' top eight economim have agreed tolilimi global wawarmg g 2 degrees and signed up for thefifi meme tout greeeenhseseas emissions by 80%. on anothth note, headsf statat haveve agreed that it's s sti to early to withdraw stimulus measureses fm m th economy as broad recovery is s noyeyet sured. >> firstly withinn though there arareigigns of stabilization, ececonicic crisis i far from ovr and d atat is the naturall anals ofofllll t g-8 members. cocond weusus put toto action the stimulus plplan is not thetime to loosen o o efeffos.s. >> speaking too cnbc a b eaearlr, the secrereryry genera rere w witthe heads of state's assessment. > our recommenendaonon

stimulate now, butut c conlilit later, but make eaea what you're going to o to exit daday. >> fofo more on the g-8 susumm let't's lklk to o threregial credititffffic for asia a and t middle east momoods. a lolot speeches we'reeaeari so f f.. >> we think athth end o of e day, the important thing is, this isa hihisticic crisis.. wewe'vsese a l lot of ings th were uononveional and ororthox so far. particicullyly wn it comes to thu.s., thelalargt economy, isalall is in the uninitestates' field to get its economy inn order.r. rhaps we can take hope from winstonchurchill's saying thatt you cacan ununt on the a ariric to getet tngng rhtht a aerer theyey'vried eveverhihingelse.

we'r're ililtrying a lotff thinin w.w. we haven't got it t ro in the u.s.s. bubupeperhs the u.s. willrorove ain that it can get thingsgs together. >> therere'sorord daday,scott, that the groupup o of five, tho being brazil, china,a,india, mexicoco aououthfrica may bring up th debate oveve the seserv currency ststat that booefb hearing so o chch aut over the last couple weeks.. atat a your thoughts on that? >> well, my thoughts arere that th u.s. dololrr will remain the global cururrey y r a long time. ee euro is the secondary reserve currency. but after ththat it wilil take many yeaears m changes to have th renminbi a secondary reserve currrren.. >> many yearars,omas, it's ross here, bubu eventually aree we going to -- i mean, t the imf i

inin aenen comingg u up with ts currencycy. are countries going to use sort ofthe imf currrren a aa w of having i ias t the reservee currenencyititut saying it the imf -- usingng t the fcr i limited.d. my understanding, it w wilbebe traded amongst governmenenonly. it won't b bout in the market. ththe r rennbnbi could be i wou' see used as medediufor tradee transactions, bubut tt's a big ststeproro going fromhahat to a serve cururreyy and ionon'tee thth fdfd mining in either ara inajor wway it's jusust -- y know, you need a deep and liquid d maetetn a rrency for itoo be thehe serve currency, rule law, , many things. >>thomas, the ecoconocc maacace is one ining. a a tt of talk ouout climate change hapappengngn the g-8.

do you think it's totoo early adaddrs these climatetalks, coconsering that not a lototof people can actctlllly agree on what t thewawa to agree o >> you're askininme from a ratings pepersctctiv we don'n' take thihis io acunun i have my own personalviview but it es s see aitit bibirrrr. ththe lg-g-te problems are mo obscure and harderr reachch than the g glol economic crcri. i would think the global economicic crisis shohoultata iority. > thomas, good have out show, thanks very muchch. >> thank you. let's s go to ayesha a talk about mumbai. ayesha.. >> thanks forhahat,hristine. good comebackfor the markets.

almost a 1%1% llllck is what you areeeeing on the index rigig no it's a goodd coback, fifinily, and the recovery h h been led by theilil and gas space to t the e ente qi ststoc are underfocus. onease point being nitech and the othernene being construcucti.. a whole lot ofof these stocks which h rere sscribed for ququ orualified institutition placememt t ca andnd hit the market toy.y. unitek h ce in and recoverered since then. there i is a r recll of trade d capspsul i ithe market, a awewel they say it s been doneitith the fullnonoedge of a.a. now you are seeing some bit of forced budgegetririckng into a couple of f thee stors. it holdining up wholelot of inintestst spepeining and the d

has been l ltt untampered with. so that ishoholi up inn trade. a couple of counters, l le mekane is up2%.. >> ayha, thank you vy y ch forhahat. on another topic, natioiona stern whoos being d dained for state s srerets to a fororgngn untry. prosecutorors have sufficient evevence that who stole s sta secrets chchvkhuhuchina's economic kurt ask. four rio employees, includiding who, were detaiainein c chi over thee weweekd. titi d decned to cocoenent on t nature of the steesecrets, butt di say tt the case shouldn't beololicizized andshshoun't afaffe relations b betenen c cna andaustralia. papately, the australian ministry says offfficlsls willl able to v vit who on friday. >>tata palace ekk is reportedld

in t tks with the bank c chi toetet upcoconsuction funds o o the mainland. according toeuters sources, tas between the two sidess are in early ststag.. thfufund willolold between$1 billioioanand$2illion and will be u useoobabank roll f ft growing businesses across t nation. elsesewhe,e, lgg dilala ss nobobo pc p pelelsales rose 20% over 4 mililli units in june from a year ago. thigure sgests s strg reltltnext thursday whenen t world's number twoo lcdmaker reports better eaings. thee s secr is r rovering faste than pepect due to robust sales of at scrcree tvs. sasailshares oflg displays cloed up .3 higher, 34500 rereanwon. >> judge hasrdrd oeded the u.s. government t to yy whether it'srepared to shutt ubs t the

united states s as part of a lalauit to identntifsesecr accounts. ththe s.s. is asasngng the zis to reveall t the namesff 52,000 clientntwhwho y have avovoid their xes. allalagold, d disicict judge, h asked about thee sevenership off assets sayayinsusuch remedyiemaa utilized if u refuses t to comply. hehelso s say it's a questionof whwhenather than if theanan will turn itself around. >>ross, iiag has renewed talks totosesell its american fefe susurae company unit.. a deal couldld hp p ia isise about $15 approximatatel talks broke ofoff earlier this yeyears s aignd metlife digreed over the price. alicico ereres in more than 50

ununtrs but generereses more than half of i revenue i japan. cigrgrp is u uining.s. rerelalato to allow itt toisiss gornment-backed debt the as s the l lenrr triri to allay itself. cit t la year gained acccces to nds but ee fdic hasetet t approve itss application.n. ththe mpany has cutspending, but without thehefdic's approva, it may have to can a a t the treasury for h hel fitch has cut the cocompy's rangs, citingources of fundi nding. > emc wins the data wawafof data domain. the two compapaeses had battled for r e e pa fewononth of control l of data dodoma.. it spepeciss inatata technology ich boosts the efficiencyy of

storage uipment by dmrooet deleting duplicate fililes let's take a lk at emc today in frankfurt. those shares are e upbobout6%. christine. >> w wheerert's earnings, n new ababouchina, l these viosos d d blblog find them all at cnbc.com. >anand coming up,, the nenewa china has arsted staff from rio o ntnto sent the aussie d dr wn. >> andnd w we'shshowou where we arare the currency markets.

weurn our attetentnn to o ee currenencymarkets.s. dollar/yen, 93.35. ro/dollar, 1 the 9. for more,,e're inined by nick hahaings, senior correspononde who has come intoto t cross rates, as ll. i have one q queioio about the g-8 or thehe -5 partt of the g-

kekechina, india andnd brazil. ththeye been discussing on t t sidelines whwhheher they shouou have a reserve currencycy mr. sarkozy took thatffffhe agenda. eyey'r quoteted at sayining 'r' going to raise it today. > i s se they wl.l. remember, t thi giveshem an enmomo public profile. when was the nexext time you h d ofindia, brazilndnd china, their r ndnd bng discussed in a g-8 meeting.g. ththey d d't want to fade back intoto t b bkground. ththis i a very high profile topic thatt d doe pu them righ t the ttop but willll aththin come out of this? no. >> and therere n notng for currency traders to react to hehere >> e erybody knows increasingly now that there no way people arare ing to knock the dollar off its pedestal i ithe short-term.. other currencies will co

alg,g,ut at themoment, a any idea that t pelele are going to knock the dollar off its pededest i is pie i iththe sky. even iff ey c cntntriried to start selling ththdollar and, you know, moving the reserves out of the dololla they're g goi to be the firstt onenes to suff. mple tt. >> nick, it'ss ototn the u.s. y youhink the ererl trend of the dollar oroioil p pces cocomi down will continunu and how should you be pitionedin fx markeketsigig now? >> w wel basically, one othth y things that'sapappeng here isise are g getngng acocompte am of exactlyhohow the globobal reveveryhas been and theact is that alal o a suddeden peopl erealizingt's notot tt -- itould slip ba quite nastily. itit not onlyyeing reflelect in

risk aversion, pple piling to the yen yesterdadabut also in commodity prices anand food/l pres coming down, rleleing the ftt thatloloba demand, inincliningemand from china, which seems to imimpa the sentiment,t, inono going toeeas high as the m mkets ticipated. isis i what 'reeeing heree is this reassesessntntoing on at thmomome. i don't think k anodod out ther thinks this is what could be tetef a downward correctioio people are w waitingng to see if ee second quarterigures startrt to reflect a more realiststiciew of t t g glol economomy, the u ecomomy, should say, in thther as well. >> he nini,, christine here. the a ause dollar appears

particularlyululneble to a r rio nto executive getting arrested in china. is this goining h hav any iactt on theheaussie,e, dyoyou think? >> the aussie isis your key not commodity cuency. therefore, ifomomdity price res s sta to go comedown, perhaps the aussie will s sufr,, as well. there was also a s sugststnhehee that t the chineneseomompa had canceled its c conact fofor ause coal.. aussie is a bibig comommotyty cotry. we saw t t aussie come down shshary. so as long as p pplple ar reresessing their demand of global equities the aussisiewil probably continueue to suffer. one of thehentnterting things is within this, thee atrtraln economy has not beenen d dng th badly ratate to m man of the e other major economomie if there does bebememe a ououe, perhapaps ee aussiee dollar cou do q qui well oncethth global

economy starts to recovery because i i economy will be tha mu further a ahe veryone else. i is e link thth t yen carry stell very strtron becaus the yen is ikikg toaa five-m-mon h hh against the llar now. >> absolutely.. the yenisontinuing to behaviviorerere p saw this yesterday with ththe llllar bei pushed dowown a six-month ww essentially y rere ainst the yen andcausing the japanese spspokmamato come outnd warar y, we are watchingng the currency mkets. the j japeses don't w wan the jajaneneseen gettoo strong. pelele suggest ifhe dollalar falls, we coululd s sta to see talk of inflatatio out of ttok.. bu it a very key thing hehere ththe llllar isseen as a aif haven cotry, but t the yennisis seen as more sasafe >> alwlwssood talkingtoto you, nick haings, dowones new wirere. cocongng uon the next hour ofof "worldwiwi e excnge," we wl

coinin to give you top headlines,s, ttories m makg heheadnes acssss the glolo.. plus, we willll a bob parker from critituisse how hehe thins ththu.u.s.ararngs seasonilill play out after aoaoa rults beatathehe seets. stay witith .. the world'ssuouer) leing companies

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i'mhrhrtine tan. china ysys that i has sufficient evidence prove that the rio titint ececutes it is holding has stolenen s sta secretets. and i'm ross esestge. thth g-8 hasopop firmedhehe ongoining eded for economic stimulus.. and i icott w waprr in the ititedtates. earnings seaeasogege off to a mewhat positive statartasas alca rerepos a smallerer than expece loss and s say it sees sigignsf improvement.t. >> and ifouou'rjust joining usus inhehe united ates, welcome to the srtrt of your global traradg day with " "wodwdwidexchange" oaoadct live from the u.s., iaia a rorope and d inhehe.s. athihis hour, let's take a look at where tutus are shaping up after those bettererhahaxpxpecd cocoa earnings. are above fairalue as a resusultf f at on adaday where e have joblessssumbers t,t, sasametore sales will beclclely tched, but the dow futures looking a ahe b about 40 or

points, nasdaq by abobout 5 and s&p isis a ave fair lue, as well, by about 5 points or s lelet'focus ontreasuries for a moment andndakake a l lkk first the bund yield, 37%7% and then t the 10-yearreasury in e e u.s., the bondieield aret seveven-ekek l low here, 3.35% s where the e teteyeyearsits. ross, t tyy keep having thosee auctions and demamandasaseen prettyty od. > lendining some ppppor hasn it? meanwhwhil scott, stococ markets ahead of thehe.s.s. open are holdldinp. th have benefitit f fro alcoa salele the ft cnbc globall3 up 14 popotsts. althoughgh ty y y they seeigigns xwompt was there's nhing yeyeinin t numbers to sgest anreal improroventntn n th top ne. i'm surure th will provide mor debate.

on the currencyy mamaetets, equities are f fir erefore, the yen a andhehe dodoll a are weaker. ro/dollar has r recimed sort of 1.396960/ 50 l lel and the eo is slilighyy fmemer against the pounund. we'll b be lookingowow bank off enenanand ter today t to e e they do indeed spspd d $25bibiin on quantititivive easing over nenextoupleofof weweek christine. hey, ross. here in sia, it is a a mixexed pictcte.e. let's take a l lk at the japanene m mart. the stronger yenen spiking t t five-monththigigh ainst the llllarpulling thth parartilala market lowower1.4%. th kospi ended flat, very little reaction to the c cenala bank'sececisn to leave interest ratatesn n ho. the shananaiai cpositepp 1.4%. theeautotomarsrsleleadg t theay higher.. the hang seng is u up 0.4%. theomomba sensese climbing 0.4%.

oilononnueso bee cucud. it's falling under 4% yesterda. nini neck lighthtweet crude is $6$61.. ananbrbrenis trading at $6 7 a barrel. scscot >> thanksks chstine. coa reported a second quarter loss. reltlts d beat analyst forecasts and the comompa s ss it sees some prprement from ththe evious arter. the ceo saysffffts toutut costsrerewoing. cocoa cuttingg morore anan ,000 jobs and is cting bubusisssses aluminum c csusumpon is e exptee to drop 7%7% ts s ye. dd joining uss n is b b

parkerer, aiairm of asset crcred mamagegeme at credit susuis.. bob, what'souou read on these cocoresults? i ink the key dvever is the cocost cutting prprram. anand m assuming t tha that costst-ctiti program wiwill contntueue f the rest of 20 o 09. i think it'ss quite interesting. if go back to o thfifirs ququarr,r,t was a irease at we call pososivive surprises. i.e., corporate resultlts bette than the consensuss from the ananyst community. and i am a assing thatthat ratio popotitiveo negative surprises tutual continunu i in the seconddquarter. in thehe ce e alcoa, the rev was prleletic. i'mm assuming that thth revenues going totootottoout, but e e results aree goingngo o be drivn over the nextix months by ongoing cost cuttiting

>> a areouou t tining any posit results erall? clearly,y, wrereoing to g get a much better pictcturovov the next twowototo t thr weeks. my ovoverll thesis t tha after the dlili in corporatate rnings growth which hahas enen going on s sin the fourth ararte of 06, that we will see in the second half of this yeye s som bottoming outut i corporate earnrninrowth with a a smallick up in the fourth quarter of this yearar i i thk k on sector toto focus is going to bebe the banknkgg sector and i i'm assuming that e wave ofveve significantt wre-downs and prorosision will bottom out and w we uld see ththe banks which are increasing market share and are mananaggg o increase margins, w we llll see quite aaharp uplift. >> if t tha is the case, what

does that dodo for the overall tenor ofof t markets? > wellll june, ase id, and early julyhas been a s sght downwn mkeket equities wodwdwe. and welearly saw at thee bebegiining june equity m marts bebememe vy erbought, deed. anwe're seeing thahat correction of that o oveought ndition. d d also think that investors edjusting to less positive economic newews dd most notably the s.s. unemploloenent nunuers. i'mm assuming inulul and probably augustee trade sisiwawaysossibly with a mild downward bias. and then going into the end o o the third quarter, i'm'm convid at you'll see a furtherpp leg in equity maets. >look, outside of the b ban rnrnin, generally forhihis earnings season, will it matatt if comompaeses beat --ththeye dodone it through h mo c ct cuttininasas opposed t t lee grthth? it's all cost cutting, ththat not sustainable.e.

weavav't got it, thefefe, i'm n notoing to buy. hoimportant is theixixtu of itit going to be? i think you haveve t beelelecve becacausclclrly in an viviroent of weakcoconoc owth -- and yes, i do think the economic numbers outf the s.s. a eururop w wilbe marginallyly tttter as we g go the foururthuarter of ts year. but having said that, t recovery is mediocre and totalllly reree with the econom forecast t tha came out of the imf yesterday. anan therefore, in th environment, you o onl get inineased revenue generation from thohose companies whichch increasing rket share anththe baing sector is alassic example of that. yoyoare seeing somee major s shs in markeket share. that's why i thihink t tt if yo break it downn sector byector you've got to enenfy thewo t thrininrs in eachsector.r. and that is going t toe e dren by marart t she movement.

>hey, bobob, this is christi. in this outlook that you have givennus, have yououacactod in chcha a as a ooutok? >> well, we took the view that the cnene economy bottomedutut in march and april ddas tutual the f fir majorcoconomy to shohoigig of renewed economic activity. the third quarter of t thi year, i do ink t the chinese ececomy will g gro closetoto 8% and i thinkhat 8% couldld b maintainin i in e fourth quarter ofhihis year. viously, one b b debate which wewee been talkingbout for years now i isill themerging markrketdedeuple from the dedeveped conomy. and, you know,, althoughhwe're goingo o ge economic rececerery in theeveveled countrtrss in 2020, is going to bebe aery mediocre r rovover and ioo inink at we will fifinay dedecoupling, notabab

led by chinana, india and brazi. the sksk in the bricc economies is the e enonomirecovery in ruruss may welelle delayed for so time. > okay. bob, we'll have toto leavett the. s sllll to me, alcoaeaeats th street dpipite posting its ththir consecutive quarterly loss. will this set the tononefofo ea eggs season?? pl, , 88 leadersaiailo agreee oncoconcte actionoo boost the ececony. can they hamammeououa deal by torrrrow

china andindia have refusedd to support the gg climate. ee heads of ststat gathering in italy have agrgreetoto limit obal wawarmgg by 2egrees and signed up f forhehe firstimime cut greenhousese g e emiions by 8080 alalsoeaea of s sta he agrgrdd that it's t t earlrly withdraw ststulus measurere from the glglal economy as a b badad recoveverys s t yet assured.d. >> translator: firstly, although there areigigns of ststabizizatn, the economic crisis is farar f fm ovover an that's th unanimous analysys o of l the g-8 members.

secoco, , we must pnto takakz agreed-upopon stimulus plans. itit'serertaly not the time to loosen ourefforts.s. >> bob i is with us for theeses t thihour. bo what is thee relevance o th 88 at the moment t to investors? > think what invesesrsrs are looking at is what snsns are we seseei of government's planning d exit s stregy from the ea monetary and f fcacal pololicss ha.. i thinin you have a v vy clear memeage as d deler by presiside sarkozozy there thahanyxixi straragygy i irrpective of disasagrmementby any countries, t any stratategtoto rove t thi monetata f fisl easing is gogoin to be layed. my v vie it's going to b b delayed probablyly untiliddleof 20. they're alsoso tkingbout before we get toto exit, w we'

gog to need more stimulus enentuly. >> yououavave ask thehequestio, is the exixiining stimulus workinin and a massssiv stitilulus has b thrownwn athth global economy with no loww interest atat, th quantitative easing,wiwithhe mamajo injection o o liididy anan f forexample, it w only two weeks ago tt t e ecb lent ov 400 billion the eurosor one year at t the european baining systemem. soyoyou know, i thihi tt we wiwi s see economic revevery i thsecond half of thisis arar. t as w we rere scscusng eaearlr, for the developed economy, i it' gng to be very feeble. >> got onenequestion? bob, we'll leave thereoror now. i knknowououe goioingoo stick with us. bob rker, chairman of the asset managemementith c cdidit suisse. we said, h he' ining stick wi u ufor a bit here. thereasury dartment, meantime, hass unvnveidd aririmd down v veron of itss ppip.

it will buy to $40 blilion in serities and loans verersu the iginal trillion lan. thee t treurury willomommi $ billlliototo t p pgrgram and ha med nineunund nagers who wiwillononibute ninies those fdd managers inudude blkrock. one notable aenen is mcmco icicsays it withdraw from considerationn last month onon concncnsns aut the prraras ststruurur >> ereric express ceo ken shanault says thehe drop i in consnsum s sndingppppea to be ststilizing. hehe ss s he expects thehe econ recovery i in ee sececdd half of n nexar.. >ff we think autut where thinin w wer last fall witith e credit marketstseieizi up, itit was s a frighteningsituation. sostability,, i think, is important andnd i think that's bebeen very elpful. what i w wou say iss there are sosome signs that potentially could lead to some green s shos. chchenlt says charge-offs

doesn't expect to be paid off, they're stilill going up,but a a slowowerratete hehe ao says newrarateill make it m mor difficult f for coumus to get access to credit. scott,t, chinaasas confirmeded thatat r tintoo employeenashl sternhoho is beingetained f for stealing state s sretes from a foforenn miminiry. it's said t thaprosecutorhahave efficienttevevidce that who olole ate secrcret foio employoyee including who, was detainedinin chinana o thee weekend. separately, the foreign foioishs sayy they will bebe able to mee with who on fridada it wasas said r rio staff used imimprerer methods iron ore tas. eaeanwle whinioio tinto has repoportlylyulled thehelulu

on hheb iron group. ththe o says heotothehe nice from r r t tin today. chinafailed t tststri a d dea on a % strike cut last weeeek. still to come on the show, the tax roubetetwe the u.s. and d ubtatas another twist as a judge o oerers the u u. governmt to say ether i it' epepar to shut t the ubsbs banks in the ud states. d#: : 1-0-0-342550 "i'm rethinkinin erything... tdd#: : 1-0-0-5-2550 including whwho trtrus to look after my m meyey." tdd#: 1-800-345-5-5050 d#: : 1-0-0-342550 "i'm rethinkinin erything... tdd#: 1-1-8034342550 "the dust mighghtbeett. tdd#: 1-800-345-2550 thth's great, but i'i'm t.t." td: : 1-0-345-2550 tdd#: 1-800-345-255050 guessh ing nothing, you know?w?" tdtd: : 1-0-345-2550 i i m movg it." td:0

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imetoto checknnow o o our rldwide markets. >> the ftse 100 is now up88 points. citigroup u upgdiding the shshe frfresllllo. we see a a t theasic resesouese stococ i in e top five.. t's t tak a lk at a couplee of the stockss makiking headlines today. thee british firm a foodod has

acacpt sales riding by 20%0%. ande doeeee shares overall off ab looking prerett flat so far day. atbarretts andreowow adding to ththe flow of commentary ming t t fr the home building sector, tsese say that they y s eay tentativeigns in a t t of stabililityn n the markets. very cautitiou on the outlookok there. dodon'get too excited aut that just yet.t. patricia joins uss now f fro frankfurt withth a update on th german trade. >>ndnd we'rere moving sideways, patricia. we'll beononsodating on the push we saw fmm this morning. commerzbzbanupup aut 5%. m.a.a.,, daimler, bmw, so the carmakers being s shied to the upside. inresting, of course,ur mamacrconomic data. on the one hhapnened, we have a better th expected t tra surplus as welell e e ports an

imports. dot fall as s chch a expected. on the other hhan we haveve gegerm i infential imkxpxpting germany to contracac in terms p by about 5%. that is d doue initial estimates of 2. of conontrt t yop. ththeyay that the world economy is in a a free fall. germany beiei ve export dendndenwill suffer because ofof th e en more a unemployment is to rise a abo8.4% in 2009. and that also won't't bode well r r 010. domestic demand is a w wea ththouttn the g gern economy. miapap and ssese holdiding nicecelyititthe midcap up more than 2%. >> small recoveryy paris, patricia. e cac 40 is dowown 2.5%ver the last five sessions. we have significant movers today ararng with alcatel lucent, titi thehe bestt p perrmrm afte thcompany got a contractctn n thailand.

alcatel-luluce h hn't given any detailils ouout e deal, but the stock is up almost 5%.%. e maker starteded negotiations th its lendersrsn order to changege t governance of i its loloan they want more flexixibityty financial stability. in the car seseor,eueuge sill n is in good shape after reports from t t n niki business daily sayiyi t tt t thcompany will team u up with tstsubhi t boost consumption of hybrid vehihicl.. pepeugt t si crone is up 1.7%

hier. air francece klmlm is derperforming the frenench market. e company is concernrneditith working hours aerer the summer ininrder to c cop wh the fincial crisis dd also with the e fainin mamand the ceo claims that air f fncnc klm doesn't se any improrovent for ththe time inin thth passenger trafafcc dropped momorehahan6%inin june.. e ceo made clear that a air frfran klm is not considering o k k it employeess twork for free likike ititisairways did rerecely. air france is up 0%.%. erer thlhloe noww for aieiew a the asian market. >et me bring youou up to dat with new d devopopnts that

weerer gting regarding the arresteded r tinto executives n china. accordrdg g to localeded rerepos, they are citing anghai's state security b buru that rio tintnto staff violated enendenational commmmcicial mor and they're identifyiyi that involvement as me typeff bres involved. hehe's the managerf f e rio tintoeaeamnn shghai. what iss going t t be intnterti morrow is that the pnt man of rio tinto involved in irono oreegotiations in hihina what wiwillome out offhose memeetgsg with officiaia i in australia? a chchinee foreignn ministry okesman has said that prosecutors have s sufcicit evidence t tha w stoletatate secretes, hurting china's onomic rerecory.

interestining ouou, he has guidelines on what students a a estatesecret. bubu---- a certainly b a akok s cocoselor reserveve willoccur tomorrowow. so far, elier we did getet a confirmatition f fro chinalco t th a areo wayay iololvewith the e gagathat is jog going apoximated. upon second lagz can so far, china currerent has the 33% diount in iron ore with auralian oviders. ceaiaiy a f fasnating story we're getting out he in asia

totoy. scott, oatatovover to you. c clo yes, thaha y you very muchch. it's going to bebe bu dayn the u.s.s. whh jobs a retail sales theocus today.y. weeklyoboble claims arere out at 8:30 a a. . neyork time. atat 100 .m., m may whololesee trade e fireres wililbebe relea. ventories expecteded to f fll 1, please. fed gornrnor duke wl s spek at fdic confnfercece. the 19th, he is inmomoay falling a aeep and t makehe dd the mnn regulator off si im writs throughghou t the day toy,y,ut heavier raiain anan ololeremperatures may have hurt retailers trng too s sl

summer related items next month. that is your g glol l ock watch. coming up next, t imf says it's more oimimtic about a recoveveryn n 20. do you a aeeee? e-mail us. andjobless rates ee due today. will plant stdtdns skew the mbmber

>> is 30 minutes p pt the hour. here are the top business s stories from arounund e e wod. t t u.s. sththrnrnin alcoco use reported a smaller thahan exctctedoss afterer the bell yesterday and says it's s sengn sisignof improvement, ross.. >> and reren europee europe, the g-8 cfirms thengngoi need for ecoconocc stimulus. >> and here in asasia we e ee tctcng this storyclosely. chinaa sa that it hasas sufficientnt ededee to prove that the rioo tintnto e exetiv isis holding has s stenen ste secretet

okokay let's get a check o o where u.s futures are headidingight now ahead of the u.s.s.open.n. we just mgmged the alcoa earnings, stronger t tha expectd after the bebell it was a loss but less thahan exctct. so the m mart t goa lift froro that. the e da o t tod will gives a ueue on where the u.s.scoconser is in saumum srereales. abeeair value across thehe board, most notably, the w is perhaps s abtt 42 pointsacacro fairir lue.e. takeke a look at bonds, a welll. becaususyoyou know, thoseuctions have takakenononyields farto ththeieveveneek here. atatis pretty much where ththe u.s. markets startrthehe day rit now. wee heading out toto ss, acalally

ththan, , sct. europeanan markets are u up neah session hihigh ftse 100 upearly .8%. xetra dax up 1.5%.%. cac 4040upup 1%. all the skters that are firmer toy are automatics and resources. defensive plplss are down. l of that means t tttmore rkk aptite on thee equitity markets, the yen is ththe weaket currenciesesf f th majors today. we're waiting for the back o glntnt tonnounce kwvwv quantitativeve easining. >> y, rossss. a lolot optptisism about the obobalconomy is fadingg into the background pullingngomome these stocksks lerer

down 1.4%.. the kospi ended flat.t. the central bank's disisio to leave interestst tete unchanged had little impmpac on the marke. the shahangii comompoteteup1.4% cause of strong a autsasaleort month h june. theananseng is .4%hihigh and ee b booayay sensex. nymex light sweet crude, $61.1. an ent up .1.12 to $61.55. >> chrisisti, , thanks. joining g us nowfofo market strategy i is malcolmlm poly. bob parker from credititsuisse, c coue, is still with us. take us now, ee afrmath of those better than expected numbererlolookg ahead to the rest of the eninis season will we have upside surprises on o handss throughoutt earnings thi

me? >> perhaps to the e exntnt that ee nbers aren't b as exctctednd i think alcoa led ththe y y that regard. although a aotot of that improvement cameme from costcut. ththeye talking about demanand picking... th's what yououanant to see. it's n g goi to be as importanant atat t specific numbers are.e. itore what mh says in tes s of their outlook for the tuture >> what are yoyou looking for i rms of the same-store sales numbers outt today? there's aututbeennono ed of lae that the consumemer i is ready get out andotot expxpec t the t cicing. if you takak aewew from consume crit, it declinin over thehe last m mthth or so.

did not declineo o e extent peopop thought,utut it stiti dd cline. wewowoul't be surprised to see same-s-sto s sal be a little bit less robust than e expteted. >>ndnd bobob, iff wre not gettig y -- if we're a longayay away from expanansi a and s snding as malcolm m lklkedabout, howw d d ininvestors there now pee the recoveryry? >> first of all, on thth coconser,etet's m m just dnd comment bebecaee i can y youave ryry car trends. rst of al worldwide, a a increase in savingss rates. ereric savings ratat havee go, for xaxale, frommeing negatitiveasas november being aroundnd 6/6/%. and the third thihings the swchch ay from capital goods ending, luxury y goss spending

to basicconsumumptn.n. d d i ink the investment strategy which plies to the coumer sector andliesoo a number of otherr s secrs for,, really, the rest of t thi year, is focuses on p phaaceutical seconders.s. plus the utilities sectotor. avavoi sectorshehe marginssrere under prpresrere, where we stil have deleveraginggndnd o oveasa whicichahas en cut back. >> is that ptttt souound malcolm? yeah. a certaininextent, we would be more utious on thth phpharceceutal side as we get some health care legislation running ththroh h congress.. wewe wl be mee focusesed o medical l foformion tenl where you gegesosome benefit from s s of thehehahang beieingproposed n the health care system.. brdeded pharma is going to

continue t to come u und pressue as drugs comeff patent. theree has beennono expansion i rmrms renues for new drugs coming o on ee market.. the story reallllys going to onon m and i and i a. >>hehey, malcoco.. ththis i is psychiatrist enen h. ififee do seeee l sliding agn,n willllhahat give us? >> to a a certain extent,althouh i i thk oil pres will b bncnce in between the $600 to $80 ra. yoveve g -- they'll send the bounce higher with geopolitical concerns particularly y co outt ofafrica.. the dedema, , yo need to o e e pick up in globalalcoconoc activity to o gea a oad basedd rebound d indemand. as the price of oil and d demd for oil is clely tied and clososyy crereted to gbabal

econonicicaactitits. so w woun't e eect to see a meananinululove hheherntil we t a noticeablble globabal increase. paul, you migightanant gent on thahat. we tked abobout the breaeak abo how much cash is itit g goi to tatakeo o t into ththe rkrket >>irirstf all, a a surveys, the gash levelss and less investstntnt i w-risk assets su as govererenent bonds, atat thosos positions are s sti very high, indeeee and d my argument iththat a a wo inintoate third quartrter eay fofothth arter, you areoioingo see a drawdown in those cashh positionons dd tt's going to be, number oone i think investor frustration wi t the very low yield numbers in money m martst anand e lower yield levels t th we'reetting now bondd markets, which i i tnknk wl go loweweevevenore.

i think inin additionon,ou know more investstoronviction t tha e arar seeing an en to the down trend in corpopora earningng growthth. plplus investor convictionththat the global recessionss ovover even if the recovery rateses a mediocre. anand eng investors will l sh attracted ithth high dividend yields in some of thee stors thatate e we talking abt.t. >> bobo very goodoo hearrom u.u. we thank you very y mu f f jojoing us todada bob parker. and alcolm, we wanan you too cocontueue t stay with us. weave plenty to talk about.. l's crossive to the city of tyoyo a check in on ththe trading day there with k ken moriyasu with h thnniki. riyasu-san. >> tokyoyoonontied its ststoc.. ththe janese currencycy, widely considered to one of the

safest destitinaonon under this enronment briefly touchehe99 yen before retreating tohe 93 leleve this hurt automakaker ke toyota anan honda as well ass elelectni s. afr the bell, f fas reiling, the operator of ararel said its oup nett profitumumd %% in ththpast nine months. it upgraded ss physysic deficit beeeen n.n. also in positive news, t thesasd ththat b by 10%. the plan is currently operating full pacity, manufacturing 90,000 modelsasast momont

an in ann interesting develolopmt,t, chinina' soverei wealth fund,hina investmenen corp., h hasamamed fmeme shiba chairman andcucurrt chairman o f the tokyoo stock changee as a member of its iter natural.l. > miyiyu san,n, thank you ve much f forhaha chris s still to kol come, we'll have moree just aerer the praeae v. how u.s. f foohshs a shaping uptake a look here.

anddelcometo cnbc's ororldde exchange." hererere some of the toptotoes wewe'rwawatcng from around the worlrld. the trsusury department hasas veveed a t tmmmmedown versision of i program t to ve private investorss buytotoc aststs fm banks. the ppip w wilbubuy up to $40 billionn in loans as opposed to the e $1 t tllllio ararage

thought. acactoday rk,k, vestco, oak tree c capalalanagement will be included, but o o absencess pimco which sss it ththdr omom csideration lastmonth onon ncncer about the program's structure. aaigas renewed talklk toes sellts americican life insnsurce company, or aali, , metlife. talks broke off earlier ts year asrices disagreed on thehe price. ininclininaxa, britain's prududtitial and china's cic. alicico ereres in more than 50 ununies but operates more than half its revenue in japapan. > china and india have refused to suppopo t the g-8 climate de to halt emissions by 2050.

anand so signededup for the firt titi to cutrereenuse gas emissions s by88.. meananwhe,e, heads o oftate hav agreed that it't's stillo early to withdrawtitimus measures from the globabal ononom ras a broad recocove i inot yesterday asassud. we have cududia at the summit and she e sess this ross. >> reporter:r: well, ross, thiss y y nuer two. we'll sesee china,a, india,bra mexico. yowill seegygypt here today. that is the g- plus one. the talksill go elsewhere. they will rereinin on e ecomimi andd climate, bubut eyey wl probablylyoo to world trarade the leaders are arrivingng now,s speak.k. e leaders will talk in just a a few minutes andalalk about glglal ththem,, about deveveloenen for the peer countrtrs.s. in the arch, we'llll start to a ouout trade. there may bebe stetemes made on

do.. that is expececdd in arade cument that will be announced this aererno. you're g gngng to get some n nsn clclime. the kyototo p ptotoco subststit expected this year. isiss ptttty ch t the schedule.. it's a full day herere ododay. but thatat t the onlnly thing happening.g. aw from that arere t rst ladies in romeme about 10 miles here. this isftft aayayin which thth met thehe pope, in which ty had ululhe have of f th rome mayor and sea in the afternoon. there are t two e eves his children have lrnrned to d >> n nhing like a a b bit of i cream making. coming up next, alcoa's wert

than expectete numbmberwin over minds on wallll street? we'll lolookt t thtrading day ahahea himamay help you? yeahah, m m loing for car insusuncne th i i't going to breakak t b ban you're in the e rit t ace. only progrgrsisiveives you the option to name e yo p pce. here. a pricice n? mm-hmm. so, i i te y you what i want to payy ananwewe bld a policy to fit y yoububuet. thth's cool. uh... [ gun beeps s ] [ [ ughs ] i feel s semempored. por to the people! hahaa!a! yh! w w anonly from progressive. call or clicictotoda

> okay. leles s brg you up t speed and find out what's comingg up "squawk box" in ten minutes. beckck i witith to t telusus a abououitit? >> g goommning, roross good morning, erybody. cocongng up, we're going to tal ouout ine flu andd t the u.s. i preparing for r sececon wave o that h1n1 vis. >> ands northh korea behind the test onn bsites? plus, behind thth closed doorsf the g-8 ssumt, world b bkk esident robertzoellick will join us l liv at the top of the urur also, , a mber of the president't's inner circle toda. ng time oba confidant j jim reolol will be o our guest host. he'll be j joingng us for two hours today. rogerltyman anan larrylilisay wiwillee ining us today.y. ey have two v ver dfefere ininio on whether the country needs anotherer stimulus packag. andddodog much thth w wrere

buffett.t. we are going to meet the p pern spenenngng $1.7mimilln to have mealal wh h e legendary investor. 's talking toto u first rightht here on cnbcbc plus, cleaning up xic assets. "sawawbox" is c comg up at t the top ofof t hour. ross, we'll seeee you vevery so. >> willdo. it sounds likike a g goo lunch. thanks, becky.. >> thank you. rossndnd ckcky, thank you. let's get t look ahead toto t u.s.rading d.. malcolm, letet's look a at this mptom market here. whwhe are we going? >>oday i think we're going to hhigr. whwhetr we follow throughghndnd enththe day higher w wl lgegely depend on n w w theconomic news cos s t. i beliliev we've got sametore sales,oblesslalaimatat and i rget the other piececeof dataa thatat o outtoday. it w wil reallyepend what t happens on the ecocomimic front

ananas earningsomome through throughoutut t d daynd for the nenextouple of weeks. >> jobless laims, by the way, isishe otrr piece ofdadata tha isis o daday. what particucula sectotors do y like? e e u buying right n in the maetet >> oh, yeaeah. we've beenreredung our casas positionons. we've been reducininouour positions in fed income. we like babasi merials. we likeengineering and construction because o of e e infrastrucuctu s speing that's gogoinon a global basis. we like certain technology.. we likeededic information sysyems. we likike condidionons th clean babance shshee. th's extremely important t to usus. if they don't ha t t worryry ouout nding themseselv from ternal resources and g genatat lots of cch.h. and d fr t tt perspective, we'ee not really csidered about the sector it's in. >> malcolm, thihi ischristinin.

i see you're ming away froro consumer will haveve l companies. y is that? >> we n't believe spspen sg going to pickckpp in a dramatic fashioion,vevein a recovery. ththe consumer represents 70%o 71% of t the u.s. domestic prododt.t. so if we go ckck to rmrmal that means the c conmer is going to ha to significantly cut spdidingr a aleleasreduce the spspenngng > >> malcolm,wewe heardfrfrom bob parkrkerhoho was sayayin tre's loof cash waiting too come inn in t theararts. y youo along withthat? well,, i think as- bececau the markekeisis a dcocounng chanism, as you get t towd d th d of this year, think it comes muchmore ain that economicicctctivy not only dmeft cannilily, but on a global sis wi start too imprprov

d d wehink that i irorovent is going to happen in t the fourtr quteter,o we would expectct t t see some that cash moving into the market a as you close t the end ofof t t thi quarter. yeah, we think some of t tt ca w wil move i ioo equities.. >> mamalcm, what does t the ererosn in oilrices mean fo the stockk market? >> to the s sndndxtent it's eroded frommeaea 7070 a brel to closer to o $60 a a barrel, it s a bit more chahang in the nsnsum's pocket. ririt n,, thatxtxtra change h gogo to ririce debtevels to increase spendingng. so iss going t to present a bebeerer oututtt ithth ffute.e. > do you have aumber on the p p yore looking for, yearr enda? > n a spspecicic numumbe

we're lookininfofor 5%5% to 7% increase for the year,oror 2020 in total. so where wrere at re, we're probably lookikingt t up0% or not.t. > mamaolm, thanks so much f joining us todaday. let's s keke l lkk at futures. that is wherehehey stand right now. th is it for daday' ow. i'i'm ott wapner ininhehe unite states. >> i'm ross westgate h hee in n europe. >>ndndere in asia, i'm chririste e n. thanks f forouour mpany here on "wldwide exchange." >>

good m morngng. a summit of f rlrld leerer the g-8 meeting in italy a and e e there. our special guest tss hour, worldd bank prerededent bob zoellick. th nation's retailersrs reportig monthly comps today. get a key rdd on the amemerinn consumer. t will investors findd a orory? andd cde crushed. l prices n now d dnn more than 18% in a a ltltl more thanan wek as "squawk b b" " bens right now.w. good morning, eeveone. weweomome "squawk box" here o cnbc. i'mm b bec quick alongitit carl quintanilla. joe is out today. we have a teded agenda.. e nation's retailersrs ar repopoining ne salesumbe