i'm christine tan. asian shares slide. japan stocks wobble further on news that prime minister aso wants an election in august. >> the showdown between the u.s. and ubs is delayed, rising expectation a settlement. >> i'm bertha coombs. a big week ahead in the u.s. can a ton of data and earnings, capturing earners attention. such as goldman sachs and jpmorgan reporting results. hello and welcome to cnbc's

"worldwide exchange." we'll kick you off with the global picture at the start of the week. the ftse global 300 is down 13 points. christine will detail more on that. in europe, we've bounced off earlier losses. the ftse 100 was down 14 points, nudged up into positive territory. a little bit of strength today. not only from the likes of vw, but the battle for porsche. you've got chemicals and technology up further. still weaker in financial banks as well. still very much in the ranges. you can see the yen made some

gains. you' euro-dollar still in that 1.39 range. we've got a lot of data through the week. corporate earnings starting out as bertha was saying. it's nice to have bertha and great to see you, christine, as always. >> let me go on with the asian markets. a big cesell-off. investors worry about things. the kospi is down. some concerns about a new ipo coming online. the bombay sensex is down. in terms of oil drifting towards the $59-mark, in terms of crude

at $59, brent is trading at $69.30 a barrel. it's good to have bertha. how are you? >> thanks very much, christine. i'm great. here in the u.s., that drop in oil prices has meant a ten-cent drop per gallon. we're at 2.56. not happening the futures with the negativity we've senior across the globe. the futures down 50 points or so on the dow, the nasdaq and the s&p also looking to open lower if we stay at these rates. it's going to be a very heavy week for data. we'll get consumer and wholesale inflations. we'll be watching bonds and how the fixeded next market moves in relation to that. looking at the bund yield at this hour.

we'll be getting industrial capacity. the ten-year bund at 3.26%. the ten-year note in the u.s. is at 3.28%. we've fallen below that 3.30 in what has been a very volatile range of late. gold this morning is trading to the upside. we're at 911.45. >> we have ceo schmidt and research partners. do you think investors are right to worry about corporate earnings? >> yeah, there is a two-fold risk. you can see the downturn in the numbers of the second quarter. if you look at phillips and the

numbers for the second half of the year in general, you can see extreme caution about what's happening in the market. if you look at the data coming through, consumer sentiment is worsening again. we see in the u.s., foreclosures still rising. consumers are trying to save rather than spend. the outlook for the next six months could be considerably worse thantd markets priced in in the three-month rally we've had. if anything, that's a comment to the numbers for the second half. that could be the big disappointment that leads stocks lower. >> jacob, do you agree with what simon just said, that the numbers will sdpoipt in tdisapp second half of the year. >> i think we'll see earnings surprises with jpmorgan and goldman sachs. i think it will be a two-fold story.

some stocks really disappointing, specifically with simon. on the other hand, some funds and sectors who have benefited and would continue to benefit in the next quarter. >> over the weekend, president obama came out and confidence folks, don't panic yet. we knew that this stimulus package would be a big backloaded and unemployment would look bad. that doesn't mean it's not working. do you think that the stimulus -- is it working? and if we do get to the 10% print on unemployment is that only going to exacerbate your sense of the down side? >> the stimulus is working in as much as we're doing better than if we didn't have it. it's a positive from that point. it will keep continuing to be a positive. the real concern is the fact that the only thing that's providing any sort of trajectory is the stimulus. we've got people talking about

possible exit strategies from the stimulus packages. yet it seems to be the only thing keeping the market afloat. as soon as you talk about keeping that impetus away, it will change the market. we think we'll recover to much more tepid levels than people have been suggesting. trend growth will be considerably lower than it was. as soon as they start trying to remove stimulus measures we'll see whether the recovery is sustainable or not. if it is, it will at much lower levels. >> jacob, if you agree, then what do we do? it seems as though every trader and every fund manager i talk to is fairly confused at the moment about the way forward. >> look, the first half has been a very good -- the second quarter and the first half of 2009 has been quite good for fund managers.

i think there's every reason to take profits and take a breather and wait for the next month or so. the markets could easily bounce back here. everybody wants to seep what's going to happen. there's a lot of risk out there which is not accounted for. i think the california iou program, the budget deficit over there and the geopolitical risk in iran and south korea, there's a lot of risk out there. if that comes in, we could have a serious collapse in the markets here. >> so what do you do? high yield? >> you want to be in good stocks that have little or no debt. there are some stocks out there which pay very nice dividends, which are relatively safe. you want to go there. you don't have to be invested. you can go into cash and other things. you want to be very defensive and you want to protect and have

ammunition if and when the markets come off. and they will come off. we don't know by how much, but they will definitely come off. >> simon, if we have lower expectations for the recovery both in terms of timing and strength, what is the potential strategy you pursue with that new thought in mind? >> i'd agree with simon about being defensive. we're very much in a trading environment rather than an old-fashioned investment plan. in that sort of trading environment, some of the things we'll do well, are the long-short hedge funds. things that are less directional and can play both sides of the market. we're very much in a trading environment. we are going to get some good days. there is also very much down side risks to news. simply trying to invest in the stock market and leave your money there like many investors are used to doing, we don't think that will work very well. you've got to look for the hedge funds that can do long and

short. >> all right. we'll leave it there. thank you, gentlemen, both for joining us. jacob and simon. thanks very much. moving on here. the u.s. and ubs have asked a federal court to delay the start of their closely watched trial as they try to resolve the dispute over the identities of american clients. u.s. officials want the swiss banking giant to reveal the name of 52,000 accountholders, suspected of avoiding u.s. taxes. the two parties are expecting for the trial to be postponed until august 3rd. the first formal was due to begin in a miami court. carolyn is following the story in zurich. good morning to you. the fact that they are asking for this delay seems to indicate they're trying to work out some

sort of response or deal. do we know what that might look like? >> reporter: let me first start waff a reaction from the swiss newspapers to this delay othe court hearing this morning. they're saying it's finally some good news and it's a new chance for ubs. some analysts on the ground are a little more cautious. they're saying basically this just pushes uncertainty further out, especially as nothing new is on the table. the conditions have remained the same. and the general consensus is now that a settlement is more likely. as i said, the key question is still the same. how much is ubs going to have to pay for a settlement fine in terms of how much client data they'll have to hand over? this is what the u.s. government is extremely firm on. they do want to get their hands on the client data. while the two parties have more time to deliberate, roughly three weeks, the pressure on ubs

certainly isn't easing. bertha? >> thank you for that report. >> we'll talk more about na story a little later in the program and get the view of swiss investors. still to come, phillips is optimistic heading into the second half of the year after surprising the market with a second quarter profit of $164 million compared to an average forecast of more than a $100 million loss. cost cutting helped to boost the figures. the ceo remains cautious about future sales. >> no real evidence of a bouncing back of a consumption on the back of the consumer sentiment. i think we remain quite prudent. as far as lying the concern, what we see in commercial construction, still continuing to retract. >> the gdp in japan may have

grown slightly in the second quarter, this includes an unexpected rise from may. the official figure is due out in the middle of august. >> here in asia, the japan prime minister taro aso expects to call a special election after the ruling party saw a crushing loss on sunday. that election is seen as a barometer for the national poll, due no later than october. a victory by the approximate opposition democratic party would end half a century of rule by the ldp. in japan, shares of kirin holdings closed up 8% with rival

suntory holdings. the nikkei said kirin and suntory are likely to contact japan's fair trade commission this week to ensure they avoid violating anti-monopoly bah. in official statements, both companies said nothing has been decided. the sydney morning herald reports that the chinese president personally sanctioned an investigation into rio tinto. the investigation culminated in the arrest of four rio arrests in china. they are accused of stealing state secrets and bribing officials for information. the world's second largest miner. >> president obama defending his

stimulus package, urging the american people to be patience. there have been called in recent weeks for a second stimulus program. as the economy may remain weak for several quarters. in his weekly radio address, the president says the recovery plan was designed to work over two years, not a few months. >> this is a plan that will also accelerate are greatly through the summer and the fall. we must let it work the waive it's supposed to, with the understanding that in any recession, unemployment tends to recover more slowly than other measures of economic taste. >> meantime, treasury secretary tim geithner is downplaying the idea of a second stimulus plan. he tells cnn the administration can't make a prudent responsible on that right now. geithner is in london to meet with gordon brown and alstair darling. he's expected to discuss financial reforms. tuesday he goes to saudi arabia.

reports say he'll stress the obama administration is committed to protecting the value of the dollar and maintaining investor confidence in the u.s. financial system. you can catch more of that visit and those comments on cnbc.com. also check out the number of the blogs that give you up-to-date insight behind the scenes as well. ross? >> still to come on the program, be patient. president barack obama said the stimulus will kick in later this year. is it too soon to discuss a second round of government spending? phillips has defied expectations with a second quarter profit. and the u.s./ubs showdown has been delayed until august.   

okay. we're into a new trading week. let's see how we're faring so far. we start off with beck ne london. >> the ftse 100 starts date in fig territory but seems to have shifted a little bit higher in the past few moments. only seven points. we'll take it. the biggest gainer is french provident, trading higher at 5%. resolution is telling us this

morning they are considering a bid for french provident. they've spoken to the board who rejected their initial offer. resolution could come back with a proper bid. we see the shares of french prov gaining ground. watch this. also, xstrata, one of the biggest decliners on the ftse 100. xstrata saying they are committed to a merge wer anglo american despite some reports that suggested to the contrary, that xstrata would go for 5 billion pounds. xstrata saying that's not the case. they're committed to the deal. and the shares of xstrata today.

>> we're trying to turn into positive territory, very much like the same in the u.k. volumes down, 50 million shares have traded. daimler up 3.2% on the fact that the abu dhabi investment in chrysler. that stock apart from that is rambling. when it comes to the vw and porsche story, we could see the investment authority pumping as much as 7 billion worth of euros into it. up 4.8% from a downgrade from

ubs. i spoke to the company. it was on the front page of the financial times saying it would book 1.5 billion euros worth of pretax losses for the full year. the company said to me only they have to repeat what they said last time. they do see losses, triple digit. they didn't want to confirm the 1.5 billion figure. that's frankfurt. over to paris now. >> thank you very much. in france, the market is now slightly higher but volumes are extremely low. plenty of people have decided to take a day off this monday. the volumes were quite limited last week. they lost 4.4% over the last five sessions. we are recovering very slightly today. in terms of individual stocks, the carmakers are trading a bit higher despite the announcement from some employees of new

fabrice. the company went burpt four weeks ago. they're asking the main customers to pave sompsiticompe by 30,000 euros. the french country is trying to negotiate a settlement in the case. also in focus, edsd electricity denied that the french government asked for the replacement of the ceo of the company. last week, they asked for 20% increase for the price of electricity in france. a source threatened to cancel its investment plan in the country should the government refuse to increase the price of electricity. the stock is down 3.2%. over to singapore for a view on the asian market. >> hi. we saw a weak picture here in asia. a lot of investors taking profit

ahead of corporate earnings. before i get to specifics, i do want to mention on some flashes coming across, we've been following the story of rio tinton employees being arrested. we're seeing some wires crossed. australia saying they want further detail on stern hughes' detention. we're watching wires for more details to come out on that. as far as the markets go, the nikkei stloilipped to an eight- long. media reports that taro aso is set to call a general election on august 30th, despite some saying it could be political suicide. a couple of things to watch for. ubs saying this could be a fear for the yen. goldman saying a victory for dpj could increase the fiscal

deficit. the yen held fairly firm. kirp kirin doing very well, on the report that it could merge with suntory holdings. sales around $41 billion. that puts them in the leagues of pepsico and kraft foods. operating profit tumbling 91%. that was pretty much expected. the key is that they've raised the output target to 30 million tons and are expected prices to rise in the second half of the year. now send things over to bertha in the u.s. >> good morning. thanks very much. here in the u.s., the economic calendar is a busy one this week

with reports on inflation, retail sales, manufacturing and housing and on top of that, the minutes from the last fed meeting last month. one item of note today, the treasury's monthly budget statement out at 2:00 p.m. new york time. and earnings season, this is a very big week can six dow components on tap. tech and financials are in the spotlight. intel, ibm, google, goldman sachs, jpmorgan, citigroup, bank of america will all report numbers. on the dock et, johnson & johnson and the parent company of cnbc, general electric. we'll hear before the opening bell. one of the things that warren buffett watches. we'll hear from chipmaker novelus. in washington, the senate judiciary committee begins

confirmation hearings for judge sonia sotomayor. the hearings are expected to last about a week. that is your global stock watch. which you'll find only here on cnbc. >> that's right, bertha. coming up on "worldwide exchange," china is expected to post a 7.5% rise in second quarter gdp this week. can the powerhouse pull the rest of the world out a resession? >> plus ubs and the u.s. government are asking for a delay to their trial for an historic settlement. companies on thelanetnfluel spe. the nguagef exchanging. together, we're helping shape the exchanging wor. nyseuronext. poweringhe exchanging world.

i'm christine tan. asian shares slide on earnings and economic worries. >> in europe, the tax showdown between the u.s. and ubs is delayed. >> i'm bertha coombs in the u.s. it's an earnings bo nanz. goldman sachs and others are set to release results. >> yeah, ahead of a big earnings week this week. the ftse global 300 is ticked up from session lows, down 12 points at the moment. it wasn't the best session in asia as christine will tell us. european stock markets turned around after a sluggish start.

also, doing particularly well today, vw has sales out in china. and daimler stock up very well on talk that middle eastern investors will put a tesla electric vehicle out as well. good numbers out from phillips as well. earnings better than expected. in the currency market, still very much in the ranges. dollar-yen at 92.37. euro-dollar perked up a little bit. sterling down below the dollar. firm against the pound as well, christine. >> ross, here in asia, a sell-off because of all the concerns about corporate earnings and how they might disappoint. that is pulling some of the markets lower. nikkei getting hit, 2.6%. seven-week low. and news of prime minister taro

aso calling for a new election. the kospi down 3.5%. the biggest loss in more than four months. the sang seng off 2.6% and the bombay sensex down. oil is drifting toward the $39-market. brent is also drifting lower as well, following nymex trend. bertha, how are the futures looking today? >> carrying over that negativity we saw in asia overnight and are seeing in europe. here too, they have bounced off of the lows, at least for now. right now we are down just about 24 points. versus fair value on the dow. the nasdaq is only about seven or so points below. and the s&p 500 only about five points or so.

it looks like things are kind of eveninging up. we will be getting earnings ahead of the bell, from the railway shippers. look at the ten-year yield. it's a heavy week for data this week. we will also be getting the minutes of the last fed minute. the last we checked, the yield had been around 328. we slipped to 327. joining us now to discuss the global economy is tom voesa, the head of market economics in europe at national australia bank. thanks for joining us. it's a very heavy week of data this week. what are you going to be focusing on? is the inflation data important, or is it more looking at things like production, productivity and housing? >> well, the second quarter gdp, we're looking at the spending components. we think there are possibly upside to price from u.s. advanced retail sales.

remember, we did see the spike in petro prices, which typically starts shoving up gasoline prices. housing data, we still look for that to be a little bit weak. there are perhaps some signs of consolidation. but remember we've still got a huge oversupply. inflation i think less interesting. pi should be falling. any surprising strengths we've seen in inflation will of course fade into next month as the recent fall in oil prices feeds through. >> tom, one of the things that the market seemed to respond to, when the data was less bad, not necessarily good, but just sort of stabilizing a little bit, do you think we'll continue to see that trend or are we going to start seeing things start to backslide? people talk about a w recovery. >> i think at the moment in terms of the u.s. and u.k., we think of the double dip.

monetary stimulus has been pushed through. as that impulse starts to fade, underlying conditions are weak. some of the rally we've had with the hope that a v-shaped recovery was likely. therefore, a lot of the sell-off is reflecting reality coming through. probably for the time being, i think you're right. we'll see if a rally if data are less bad. people will expect a w-shaped recession. >> what about the euro though? we expect industrial production to bounce up this week. we get the government official saying that gdp will be flat for the second quarter. could things be that good? >> we doubt things will be that good. when we look at industrial production, given the strength in germany and france, which was very surprising, we see a significant upside risk.

we think 1% in industrial production and maybe 2% is more likely. flat outturn, difficult to see. a huge amount much destocking that needs to go through europe. looking at financial domestic demand, we think that will be extremely weak. >> the u.k., inflation numbers coming out and employment data coming out as well. what will be the pick of that for u.k. investors? >> inflation is the most interesting one. we'll see it fall below 2% for the first time since around 2007. again, it starts to raise the question as to why the bank of england decided not to expand quantitative easing program last week. low inflation i think will open up the door in the markets for stocks. expect to see the bank expect its monetary easing. >> tom, this is christine. in japan, consumer confidence seems to be improving in june. what does it say about the prospects about any domestic-led recovery in japan?

>> i don't think it says much. we know that japanese spending has been miserable for about a decade, even if consumer confidence improves in the short run. will it necessarily feed through into domestic demand? unlikely. q2 gdp could be better than expected. but ten people are constructing that data. the veracity remains suspect from our side. >> all right, thank you, tom. this week we'll be heavy on chinese economic data, squarely on the radar, we have second quarter gdp due out on thursday. economists expect the economy to grow 7.5% on an annualized basis. this would be a shade lower than

the 8% increase to create jobs for china's growing population. let's head out on the asian economist for more. william, good to have you with us. what are your expectations for china gdp out on thursday? >> we think it will be what the consensus expectations are. somewhere north of 8% and perhaps as high as 9% for the quarter. >> in your report, you say the export picture in asia continues to look rather challenging. any sense of whether china can decouple from all the weakness we're seeing in asia as far as the exports are concerned? >> yeah. we see three economies that decouple here in asia and are in fact beginning to show signs of that. indonesia, india and condition. very large domestic economies, decoupling from the trade cycle. the issue of whether china can lift the rest of the region is somewhat premature. if you look at the export comp sipgz of asian economies going

into china, most of that is electronics products. you look like malaysia or philippines, which would seem to be commodity produces. 60% of exports going to china are electronics in their components. things being assembled basically to send to the united states or europe ultimately. so we think tham bet'll be a bi a disappointment. the two countries likely to benefit from domestic demand in china would be australia and indonesia, which are 50 to 55% of their exports to china are commodity based. >> interesting to look at who benefits from this increased demand to china. vw saying their sales jumped 22.7%, undoubtedly beneficiaries from china. how long are we going to feel a

benefit from this stimulus? how can can the effects last? >> i think, you know, it's off to a very strong start. if you're looking at what we had in terms a stimulus package way back when, it was about $600 billion spread over the next two years. when you look through the first half of this year, already you've had $1 trillion-plus lent by the chinese banks. this is over 25% of gdp. and this is an economy that has a lot of firepower left in the tank. it's government debt to gdp's 15% compared to the average of 70% of gdp. when you look at the amount of money that banks have. the reserve requirement is 15%. another $700 billion. you can cut those rates down. if you want to get worried about china, it's worried about the

long term. over the near term, they've got plenty of flexibility to fight the downturn. i wouldn't doubt they'll keep up the fight until they win one way or the other. >> bill, i'm hearing in the news agency quoting a central banking official, saying that we can't close the spigot on all this lending right now. because that would end the recovery. but at the same time, they do worry about it stoking inflation. there are a lot of people talking about this liquidity bubble. at what point do you need to start worrying about china? >> i actually think it's a couple of years down the road, to tell you the truth. i mean, when we've looked at china over the 2003 to two 2007 period, credit was in line with

gdp. you need a couple of years of that before you begin to worry that there are excesses in the banking system. there could be overcapacity. we're early on in this sort of a problem. a lot of policy is getting through today or getting through this quarter. clinton is set up to do that. >> this is christine again. i know you're an economist. in terms of corporate earnings from china, is there a sense that companies in china are doing better than the rest of the companies in asia? >> i'm not really aware of that, christine. i mean, up until 2008, the early part, when we were looking at asset turnover, it was picking up for the chinese companies, which would suggest that even though capacity may be being added, you're certainly getting a lot more demand there and asset turnover picking up. you wouldn't be worried about

it. i think over the next couple of years, if you're continuing to add capacity, and this is where the bank loans were going, you'll see investment to gdp rising and your asset turnover beginning to fall and your profitability of the companies beginning to fall. we're right at the turning point if that is indeed occurring. >> thank you very much for being with us. the asian economist with quarry securities. let's talking about india. ayesha joins us live for the indian business report. >> another weekday. this is in continuation with the kind of correction that the equities saw on friday. the pullbacks from the low point today. we have considerably shaved off key levels. at woin point in time, we were trying to break the 3900-level. more damage coming for the

broader market universe. typically the sectors that have seen a fair amount of action. look at the fertilizers stock as well. they are seeing maximum cracks coming. cuts of anywhere from 10 to 12% apiece for some of them. ferpt lieser added to that. even in education stocks. most of these are seeing selling. talking about china, you have a couple of oil and gas stocks which are putting immense pressure on the indexes right now. most of these cases are the ones where we have seen a lot of qualified institution stocks coming into the markets. the likes much unitech which is one case in point. a couple of others as well. they are seeing a fair amount of

damage. that is the fair concern. most stocks are seeing the basket selling actually kick in. >> thank you very much. i eesha faridi. >> from mom india to the middle east. >> yesterday, the index closing in the red. today, the financial market is down 2%. one stock that has been trading down for the last three trading sessions has been the country's largest lender. that is after the rating agency cut the rating on several units on the lender in dubai. the index is down. all sectors in the red. also in the news, recently the u.s. jobless rate made a lot of noise internationally, not just

in the united states, while staying within the same topic. the ministry released figures on unemployment in the gulf country. saying that in 2008, the jobless rate was up to 4%. up from a figure of 3.4% in 2007. again, economists are expecting the figure to rise in 2009 due to the economic slowdown we've witnessed. and also due to all the layoffs we witnessed, especially in the first four to six months of the year. also another recent local survey said that in 1 in ten people surveyed that lost their job in the last six months, of course, they said last week they cut another 400 jobs, on top of the 500 announced in december. that sector in construction still struggling and trying to emerge from the downturn. back to you. >> thank you.

here in asia, some corporate stories weighing on markets. chinese engineering starts tomorrow as it announces what could be the world's biggest ipo this year, expected to be worth $5.9 billion. the home builder plans to asia 40% of shares earmarked for institutions and the rest for retail investors. south korea reported its lowest quarterly profit in nine years. hit by price cuts and lower demand from manufacturers. from the april to june quarter, earnings tumbled to $137 million. costco revived up its target to 29.8 million tons and offered guidance for full year operating profit at $2 billion.

>> belgium holding company is in talks with general motors about its new line. they laid out a lan to use opel's brand to tap the huge chinese market. germany reporting volkswagen sweetening its bid to get porsche. the magazine said that porsche's ceo still considers the offer insufficient. c.i.t. group said it is still in talks with regulators to improve its short-term liquidity problem.

it's waiting for approval to issue government-backed debt. on friday, c.i.t. said there was no guarantee that would happen, sending stock down 18% by the close. reports say the company has hired bankruptcy lawyers although no filing is imminent. the government has decided that this company is not a systemic risk. one of allen stanford's top lieutenants will be in front of a judge today in houston. james davis, the former chief financial officer at stanford financial, will be arraigned at 2:00 p.m. new york time. davis' attorney said his client has agreed to plead guilty to three criminal counts he faces in the billion dollar ponzi scheme. davis will inform the judge of his attention one a deal is worked out with the government. allen stanford remains in jail until his trail. microsoft may fire the next

shot in its battle with google. the financial times said the company will push ahead with online versions of its core software. this includes plans for a cloud operating system designed to extend windows to the internet. separately, the "wall street journal" wants that microsoft is pitching a deal to five advertising companies to buy as ad agency omni fish. microsoft closed at 2239 friday. google hospitaliwill be reporti week. >> you can find all the news at cnbc.com. coming up, u.s. treasury secretary timothy geithner is in london to meet with gordon brown and alstair darling. we analyze efforts to stem the continuing financial crisis. >> we'll get the latest on the

currency markets. still very much in the ranges. as we get to plenty of econic data. the most innate companies in theorld know that connectivitys about reaching further faster than anyone else. tother, we're helping to she the exchanging world. nyse euronext. powerinthe exchanging world.

we turn our attention to the currency market. the dollar-yen is down to 92.

29. the euro-dollar fairly steady. pounds against the dollar slightly down. and the dollar-swiss franc down a little bit. tony, we seem to be in this phase where the dollar and yen are stronger and vice versa. we're in the ranges though. what are we going to draw inspiration for from this week? >> not much happening this week. last week, the two hidden currencie currencies, dollar and yen and the yen performed better. there is all sorts of talk of intervention. but in times of volatility

people go to the safe haven. we go to the reporting for this week to give us more direction. a lot of news starting from tomorrow. we've got cpi and the first of the major banks reporting. we've got employment stuff. all that will give us more direction. in the meantime, we stay within the ranges. we look to the end of the week to see what's out for bank of america and citi bank. >> how are you viewing those reports? >> the updates from goldman and jpmorgan have been well touted. with jpmorgan -- sorry, with citi bank and bank of america, they've got a wider range. on divisions, they're more exposed and had a tough time in the first quarter. we're looking for more direction on what's happening in the wider economy. >> tony, it's bertha. is this the new normal? we're seeing the swings on the

index and to a certain extent in treasuries as well? where at this point do you see the floor? >> there's still a lot of volatility around. people have been talking up recovery. we've been storing around for quite a while. we hoped over the summer things would level out. the nikkei, in our eighth week of decline. there are other things adding to the situation. we'll have to see what the particular landscape will be like in the fourth quarter. but volatility is still the main game in town. >> tony, arkansas christine. in japan, we have prime minister aso calling for an election. how volatile if the gdp loses? >> there had been an election called by the end of october. but that had little effect over

the weekend. and this morning with the formal announcement. i think the big thing, with a lot of situations where there will be a change of power or maybe a change of power is policies that will be employed. are they go to spend? to spend, they're going to borrow. that will dictate the pressure on the yen. >> ten, good talking with you. coming up next, we're going for a quick break. big bank earnings rolling in this week. will reports from jpmorgan help to restart the rally?

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i'm christine tan. asian shares slide. >> the tax showdown between the u.s. and swiss bank ubs to be delayed. >> i'm bertha coombs. in the u.s., earnings will capture investors' attention with big names like goldman sachs and jpmorgan reporting results. if you're just joining us in the united states this morning, welcome to the start of your global day with "worldwide exchange." we broadcast live from the u.s.,

asia and europe. here in the u.s., this morning the futures have been moving a bit to the outside. they're back to the down side. it's been a little bit of volatility. but no doubt thin trading as we've been seeing over the last couple of weeks. we've got the dow down 43 points below fair value. the nasdaq down ten and the s&p off 5.5. looking at the bund, a very week for data. we'll be getting chinese gd perform. the markets will be attuned to all data coming out of the yield for the ten-year quote slipped to 3.27%. a low more or less of about three weeks or so, ross. how is it looking in europe this morning? >> we're sort of flat this morning. we started down on the down side. we're up 0.10%.

right now in europe, fairly mixed throughout the trading day. a little bit weaker for the smi. good news story for vw, good sales in china. porsche doing well. and daimler doing well on reports of injection into its tesla unit from the middle east. that sector getting more boost along with chemicals and technology and construction. weak for instance retail and financial services and banks. the dollar is weaker against the yen. the yen got benefit from a weaker asian session. sterling weaker against the greenback and euro up against the pound. >> a lot of risk aversion in asia. markets are selling off in reports from corporate earnings. weighing on sentiment in asia in terms of individual markets.

look at the nikkei, down 2.5%, ligs loss in seven weeks. kospi down 3.5%. the hang seng is down 2.6% and the sensex down 1.5%. oil continues to trade lower, $29.69 a barrel. brent trading down 12 cents, $60.54 a barrel. >> let's put this into perspective. we have the chief strategist at cnbc markets. good to see you. u.s. markets since june, down four weeks in a row. are we now in an environment where we have lower expectations

for the recovery both in time and strength? >> we had talk about the green chutes and talk about the head and shoulder line. it seems we have been going through this wave of indecision for the past two to three markets. i think it will give way through further retreat. not only in the u.s. but also in the emerging markets. >> is it possible to say that with conviction until we've gone through this earnings picture? phillips came out with better than expected numbers. >> maybe we could say that the market is meant to retreat lower. this will be the catalyst for a market that has been a little bit ahead of itself. i think this will be the case. there is a lot of talk. people are saying it's not really the earnings that matter but also the guidance that matters. do we really expect most of the ceos to come in when we have

very strong guidance for the future? probably not. is there going to be something in the earnings that is going to push equity markets back higher? we have talked about the second derivatives asia. that was enough for stocks to come off 13-year lows. we need more than data becoming more than just less bad. for the past two to three weeks, we have not had that. >> i think it was you who called them the green shorts that moved us up this spring. looking ahead toward the fall here in the u.s., we have a lot of policy in washington that has people on the sidelines, whether it's health care, trying to rush through a bill, cap and trade, also trying to move forward. some people starting to talk about stimulus. what kind of pressure is that going to put on the dollar?

>> well, when you hear the word stimulus and dollar both in the same sentence, there are two things that come in. if you get the dollar bowl, they will probably say that the stimulus is going to be very important. it will reflect the u.s. policymakers efforts in doing more than what the u.s. or europeans have done. you've got the story, that that exacerbates the debt story in the u.s. it could really yield back up. when you say the stimulus, what does that mean? how much money will go into people's pockets? leaning more towards the story that is going to weigh more on the deficit that is expected to go up more than 300% in the last year. right now the dollar not going to feel that brunt.

the dollar is gaining from the wave of risk aversion. we think the story with the stimulus and at what cost will haunlt the dollar later in the fourth quarter. >> this is christine. when you look at oil and how it's falling, is it just a correction or is the pullback more serious? >> the correction in oil is part of the risk aversion story. falling bond yield, falling oil, slight rebound in the dollar, slight rebound in the yen and a retreat in equities. we have to look at the markets in whole. i think that part of the reason -- definitely what is accelerating the decline here in oil is the emerging destabilizing in the u.s. dollar. i think we are heading towards the low 50s. i would expect that we're

probably gaining around 49, where we'll probably hit some sort of wall. >> thanks very much. stay with us. he's going to be with us throughout the hour. the chief strategist at cmc markets. still to come in this hour. what are the odds of a settlement between swiss bank ubs and u.s. tax officials as the two ask for a delay in a trial due to start today. plus, give us $13 million or we'll blow up your factory. we find out why french auto parts makers are so angry. stay with us.

ubs and the u.s. government asked a federal court to delay the start of their trial as they try to resolve the dispute over the identity of u.s. clients. the u.s. government wants ubs to reveal the name of 52,000 accountholders suspected of withholding taxes. they're asking for the trial to be postponed august 3rd. the first hearing was scheduled to be conducted today in a miami court. let's discuss the ramifications of a delay. our guest is still with us from cmc markets. theresa, they'll delay the case today and try to reach an agreement.

but here's the thing. for any agreement to stick, are ubs going to have to hand over names? >> i believe that the swiss government is very precise in stating they will not allow ubs to hand over any names. so there will have to be some kind of agreement, probably a settlement, which involves some kind of financing fines, which will be the end of this case. i hope that there will be a settlement within the next three weeks. but i doubt that there will be any handing over of names directly to the irs or the u.s. government. >> will that be enough for the department of justice or the u.s. government? would they settle for that? >> yeah. we have to take into account that the u.s. actually came out with amnesty in march. this amnesty was going to end the 15th of september.

i believe what we are seeing now is that the department of justice and the irs, they are pressuring still the u.s. citizens to go on to this tax am nesty and declare their money. we've heard from the news there is 10,000 u.s. citizens who have already used this tax amnesty. i believe that we will see some pressure coming over the next weeks still to have more u.s. citizens going into this tax amnesty. so if we see at the end of the next two, three weeks a lot of u.s. citizens actually going in to declare their money, we might not need to have ubs or switzerland agreeing with ubs giving up some of the names. because simply the people have declared themselves. so it's all a very political

level. and i believe that it would be a no-go for the swiss government to give over these names. becae it would fail the u.s. legal system and also make people not trust in switzerland and the legal system anymore. that's the danger that the swiss government is having now. but i believe there has to be some kind of middle way. >> let's talk about that. that's the question i want to follow-up on. let's say enough u.s. clients volunteer. that might mitigate the situation as far as the doj. nonetheless, when you get names involved, that undermines the system in switzerland. is switzerland ready to go to the mat to defend this? and is switzerland, if the u.s. forces ubs to give up names, are they apt to take this to a world court to prevent this from happening? >> we see the u.s. legal system

against the swiss legal system. that's what we all hoped would not be happening. but that's the case that escalated to this level now. it's very difficult for experts to say where this case is going. it could end hopefully within the next three weeks with a fine. but i don't believe that switzerland would actuallyo and give up these 52,000 names. i believe that there has to be some more political discussion where this is heading. there is another thing. ubs could in worse case go and sell off the u.s. unit. >> i want to bring in ashraf here. what are you focusing on in this case? >> it's very hard to bring this matter to a resolution without revealing names. this 52,000 names have been

increasingly a big part of the headlines. i don't think we'll see a settlement without the u.s. government saying they've got part of the names. part of the names are not citizens of the united states. what about those paying taxes in the united states but are not citizens of the u.s. and do not feel they are part of the amnesty to come in? how will they be treated any definitely? >> yeah. and theresa, quickly, how is this impacting your rating on the ubs stock? is it all in the price at the moment or not? >> the ubs stock has come down quite a lot over the past week. to some extent, it is in. but it's very high uncertainty. in the case that ubs would have to go and sell off some of its assets. i believe in this worse case, this is probably not yet into the price.

then again, we will have to wait for the 3rd of august, when the trial is supposed to begin again. we will have to wait for the second quarter numbers, chicago o coming out the 4th of august, where we are expecting other issues at ubs not regarding the u.s. tax trial. for example, increasing cost levels. >> you certainly have your job cut ought for you. theresa neelsen, thank you. and ashraf, he'll continue on with us throughout the hour. president obama is defending his economic stimulus package, urging the american people to be patient. there have been several calls in recent weeks for a second stimulus. the fact that one may be needed as the economy may remain weak for several quarters.

in his weekly radio address, the president says the recovery plan was designed to work over two years, not a few months. >> this is a plan that will also accelerate greatly through the summer and the fall. we must let it work the way it's supposed to, with the understanding in any recession, unemployment tends to recover more slowly. >> in the u.k., a takeover has been rejected. despite the rebuff, resolution says it received constructive feedback. >> here in asia, japanese prime minister taro aso plans to call a general election on the 30th of august according to a top party official. his call comes despite the prospects of a big defeat after

their party saw a crushing loss on sunday. that election is usually seen as a barometer for the national poll. a victory by the opposition democratic party would end half a century of nearly unbroken rule by the ldp. still to come on the show, car parts makers in france are threatening to blow up their factory if they don't get a $13 million compensation payout for losing their jobs. we'll find out more from our reporter in paris in just a moment. plus, this earnings season, and we would love to hear from you. what are your views and expectations for the secon quarter? businessesore efciently,

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we'll bring you up to speed on what's happening of the world equity markets with our team of reporters. we'll start off with becky in london. >> a check on the ftse 100. this market opened lower. we have had a modest recovery. the london markets now managing to move higher bee three or four points. biggest gainer is french provident, earning 5.5%. we heard from resolution, which said it's considering a bid for french provident. they've spoken to the board, which rejected the initial

overture. resolution still considering its position and could come out with a bid. the stock would seem to suggest it is. we're looking at 5.5% higher at the moment. xstrata moving sharply lower. we have had comments from the company saying they are committed to the merger with anglo american. reports from the newspaper suggested they could be considering a 5 billion pound sweetener to that deal. xstrata saying they are committed to the no premium merger and the shares moving down by almost 5%. how is it looking in germany? >> still flat-lining. 4,580 shares have traded. the bank stock still the best trading. second coming through it daimler.

with the electric car venture, that is the big story. ubs downgrading their stock. we see an upgrade in that. the shares have suffered quite substantially. a return in demand will come back into the market, that will push that up. over to paris and stephane now. >> a flat session in paris today with very low volumes. 300 million euros have been traded since the opening day. below average level for a day like this one. tomorrow will be a bank holiday in france. plenty of people decided to take a day off. we have significant movers with the carmakers trading lower after employees of carparts supplier threatened to blow up

their company if they don't receive compensation by the end of the month. the company went bankrupt four weeks ago. they're asking them to pay 30,000 euro for comp sapensatior employee employees. they were the main client for this company. the two stocks are now trading low. peugeot is up .84%. the french electrical company earlier this weekend, the spokesman for the french government denied reports saying that the state wanted to replace the seal after it started last week with the government by asking a 20% price increase for the electricity in france. the price of electricity is still managed by the government and the government is the main shareholder of eds. the stock is flat right now. over to singapore for a quick view on the asian market.

>> we saw a sharp sell-off in asia. worries about the economy and worry that earnings may not be very strong. all of these things weighing on the market. the nikkei down 2.6%. we may see politicalal uncertainty. reports that prime minister aso may call a general election on august 30th after that crushing defeat by the ruling party. as for stocks, very weak performance for the exporter stocks. the u.s. health official approved eli lilly's blood thinner. the partner doing very well late in the day as well. the kospi fell 3.5%. very weak performance for exporters there as well.

there is news that south korea and the eu tentatively reached a new trade deal. that announcement could come later today. that would spell good news for exporter stocks. costco operating profit falling to 91% because of lower demand from automakers as well. that was expected. in terms of the outlook, they said they are going to be raising their outlook target by 6% to 30 million tons. they're expecting global steel prices to rise slightly in the second half of the year. greater china region, hang seng down 2.6%. very weak performance for the heavyweight blue chips like ibc. china eastern airline back in trade again, doing very well. closing up 2.9% after it announced former details to take over shanghai airlines. back to bertha in the u.s.

>> thanks very much. here stateside, it will be a chock-a-block economic calendar. we'll get reports on economic sales and housing. plus the minutes from last month's fed meeting. we'll start off with the treasury's monthly budget statement. we've got a full slate of earnings season with six do you have components and tech and financials in the spotlight. intel, ibm, google, goldman sachs, citigroup and bank of america will be reporting news. also on the dock et, johnson & johnson and the parent company of cnbc, general electric. this morning, ahead of the opening bell, we'll hear from csx. these are some of the companies that warren buffett likes to watch. we'll hear from novelus after the close. the senate judiciary committee kicks off confirmation hearings

for president obama's supreme court nominee. judge sonia sotomayor. she is widely expected to get the seal of approval from lawmakers but not without a lot of questioning. that is your global stock watch only on "worldwide exchange." >> coming up, ibm, google, bank of america, a massive look at earnings. >> don't be too hasty. president obama and his treasury secretary down talk of a second stimulus. úúúúúúúúúúúúúúúúúúúúúúú

it's just about half past the hour. here are the top business stories from around the world. here in the u.s., earnings will capture investors aepgs attention with big names like jpmorgan reporting results. >> in europe, the tax showdown between the u.s. and ubs is delayed. >> and here in asia, shares slide and earnings in economic

worries. welcome again to "worldwide exchange." if you're just joining us, the futures this morning have been pointing to a negative start. taking some of the negativity from asia. we've got the dow about 43 points below fair value. the nasdaq is about ten points below. and the s&p 500 is just under six points below. huge week for earnings. huge week for data. take a look at the ten-year yield. we are going to get inflation data and fed minutes on tap. it's one of the weeks that people will be on tender hooks. we've got big data out of europe and gdp out of china. plus, a lot of folks want to take time off this week. maybe they will in france. i can imagine a lot of folks will be in front of their computers. >> we've had phillips come out with better than expected earnings. they will still cautious about

the outlook. the rest of the european stock market, cautious really. absolutely flat. a little bit low. stocks are doing fairly well this morning. we saw vw stock that is up and daimler stock is up. and the tesla, electric sports car unit is up. retails stocks weaker. banks, media, financial services all off somewhat. that's where the weakness is coming from. translate that into the currency market. we had a weaker session in asia. that means the yen has been firm today. dollar-yen down to 92 .01. you're euro-dollar off its low. still very much in that.

sterling, dollar 131.62. we heard earlier that the currency markets, we'll be looking at later in the week and goldman sachs and jpmorgan. they'll have a wider impact on the impact. >> the sell-off in asia and investors worried, causing some risk aversion in the market. politics weighing on the japanese market. prime minister aso calling for a general election on the 30th of august. that is adding to sentiment there. the kospi down 3.5%, biggest loss in more than four months. shanghai down 1%. some of the other markets moving lower as well. in terms of oil, let's look at how nymex is doing. concerns about the global

economy as well. sbrent drifting lower as well, $59 a barrel. >> we've got flashes that the japanese government is upgrading its economic assessment for july. joining us for market strategy is a guy with a nifty name, dodge dorland. he joins us this morning from new york city. dodge, you know, there is so much going on. i am going to make you maybe a hob son's choice here. give me one earnings report which is the key one to watch. >> goldman sachs. all the financials coming in now. it's a big one. the other may be google. goldman sachs. it comes about wednesday. between now and then, i think the market will be on watch. >> as far as economic data points, i've got to think inflation is not such a big

deal? are we watching industrial capacity utilization? >> more important than the telefigure that comes out is the reaction to the number. if we have a disappointing level, it probably will mean that the market will test to the down side. we're at very critical levels now. if we can hold these levels and get through the summer, which will be fairly low volume, then i think we have a chance to go to the up side. but the market has to stabilize. >> what is the key level here? >> the key level with equity or -- >> yeah. >> the key level with s&p is the 877 level. for the dow, looking around 8001 there. >> why do you say mysteriously? >> anybody trading the s&p will

look over the past month. where probably the chart and many indications are looking that there is a point toward that it was going to go lower. definitely it's been -- in the last half hour of trading, there's been an interesting wave of buying that has been only aimed at pushing the market higher. but aimed at preventing it from taking it down below a key technical level of 877. even you guys are talking about the head and shoulder and neck line. it's been quite successful at holding that. i'm not sure what dodge would think about that. >> dodge? >> i agree totally. 8100 on the dow is very important. 50 on the s&p and 1600 on the nasdaq and 364 on the russell 2,000. these are very visible.

technic technic technic technical analysts are ruling these. >> at the end of the day ki rush of buy orders come in to keep the indises above critical levels. what is that? >> it's a trader's market. it's very volatile. very little conviction. but what we're seeing now -- and this is a little bit of a concern as we get into the summer -- buying power seems to be diminish and selling power seems top coming, which means shorting may come back in. buying is a weapon of the bulls. if buying doesn't come in and we're going into a period of higher volatility, the market may have more fnegative questios to answer. >> president obama throwing cold water over a second stimulus package. do you think he's right to do so?

>> fundamentally, i wonder if we are going to need one. politica he's correct in terms of diminishing expectation for a second package. we need to wait and see if this is going to work. this is the hardest part of his team. he's put a lot in place and we'll see if it's going to produce. this is the hardest part for the market to accept because there is uncertainty. >> ashraf, is that right? >> i do agree. on that topic of the earnings, dodge, i want to ask you something about, did you notice, there have not been many dhaumpz preannounced? >> in the last earnings season, there was a lot of talk that they're going to beat expectations. the market was going higher. realized, let's not wait for two weeks' time to announce and do it now.

add to this momentum. however, in this earnings season or ahead of the current earning season, we've had little preannouncement or probably none at all. >> that's right. you're absolutely right. what does that say? there is more uncertainty in the market. there is more negative questions coming into the market. companies are less -- the expectations for companies in the future are perhaps more into question now. it comes in the summer time when there is a lot of volatility and people waiting until the third quarter. you're absolutely correct. the implication of what you're pointing out has perhaps more negative connotations than positives. we're very mindful and at critical levels from a technical point of view. >> on friday, we had the oil stocks. and a bounce back up in oil prices but the weaker dollar denting it. approximate what is the key plank of your strategy for the

next couple of mornings in earnings for the rest of the summer? >> for the narcotic in general, let's start with yields. with the ten-year yield, we are expecting them to come back to 3.10, after which i think we'll push higher. i think there are a lot of people talking about the relationship with the dollar and with equities in a risk on-risk off. i think this relationship is going to weaken around the end of the third quarter in the sense that we are probably going to have some sort of stabilization in equities after we fall around 10 to 15% from here. equities would rebound in a marginal manner. but i think that the dollar is going to come under pressure. i think oil is going want to to retest the low 50s, as we said. i think by the end of the year, you are going to see a much weaker dollar. we're going to see oil back

towards the high 60s. >> ashraf, good to have you on today. the chief strategist from cmc markets. we'll get a view of what dodge thinks about what he said later. more to come from dodge a little bit later. let's go to tokyo and check in on the trading day today from the nikkei. >> thanks, christine. renewed political uncertainty became a major selling cue in tokyo today. the nikkei plunged 2.6%, meaning that the gains of the past two months have been totally wiped out. the benchmark has fallen for the ninth straight trading day, the longest losing streak since july last year. the japanese government raised its economic assessment. let's hope this news helps stop want losing streak. the tokyo metro assembly lost

its majority and the opposition party became the ruling party. tarot aso agreed to dissolve the lower house on july 21st for a general election on august 30th. the midday news triggered selling by nervous investors worried about a political vacuum until the end of august. stocks fell across the board, led by securities, consumer finance and glass and ceramics issues. bucking the down trend, shares of kirin jumped 7.8% after briefing climbing almost 11%. shares were actively bought on the nikkei report that the beermaker and suntory holdings are in negotiations to merge under a holding company. they may ink an agreement this year. they would have a 50% share of the beer market. they had a combined sale of 3.8

trillion yen in fiscal 2008 which makes the would be entity one of the world's biggest bev rablg firms. with a declining population at home, the two firms will join forces to increase share in overseas market. suntory said no details have been finalized yet. back to you, christine. >> thank you very much for that. bertha? >> still to come, heads in the cloud. what is microsoft thinking about its next move in its battle with google? before that, take a look at how the u.s. futures are shaping up this morning. still trading to the down side. the dow just abo 43 points below ir value.

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this is the official cd... of the world's largest airne. welcome back to cnbc's "worldwide exchange." here are some of the top stories we're watching from around the globe. the competition intensifying. microsoft may fire the next shot in its battle with google. the financial times said the company will push ahead with online versions of its core software. this includes plans for its so-called cloud software. separately, the "wall street journal" is reporting that microsoft is pitching a deal to five advertising companies to buy its digital a. agency, razor fish. wp, omnicom and publicist are

said to have expressed interest in that business. microsoft closing at 2239 friday and google reporting this week. ross? >> talking about earnings, we've kicked off here in the u.k. with phillips. surprising with a second quarter profit. they had an average forecast of a loss of more than $100 million. cost-cutting and a strong performance of the health care division helped to boost the figures. despite this though, the cfo remains cautious over future sales. >> no real evidence of a bouncing back of consumption on the back of the consumer sentiment. there i think we remain quite prudent. as far as lying concern, i think we see commercial construction as we speak still continuing to contract. >> australia has summoned china's ambassador for a second time to press for details on the

detention of rio tinto employees in china. the employees are accused of stealing state se krets. the sydney morning her hald reports that president jintao personally sanctioned an sbrofgz rio tinto. ry oaf was locked into negotiations over the price of iron or. >> time to find out what's happening on squawk box. >> as you know, we are at the cross rods of washington and wall street street. paul kanjorski will recover regulation, the stimulus package, north korea and a lot more. on to earnings central. the biggest names ready to turn in their quarter report cards. we've got meredith whitney for an hour. beginning at 8:00 p.m. eastern time. gas prices slumping in the middle of summer. is there a storm on the horizon

for motorists? it may have nothing to do with speculators. we'll talk about that plus a new challenger in the coffee wars. earnings season off this week. we had a little last week with alcoa. the axes begins today and tomorrow. we'll cover it in ten minutes. >> thank you. >> it will be exciting. >> coming up next, how will markets position themselves for all of that news on earnings for banks and technology firms? we look at the trading day ahead on wall street.

let's get a look ahead to the u.s. trading day and bring back dodge dorland, the chief investment manager of capital management. we had the s&p fall and seems to be hanging around the 880 range.

if we get disappointments, how much lower could we get? >> we're at a level that's very critical. we've had a pullback from a technical point of view. retracement is very normal. it can be supported with a new move to the upd. we had moving averages which reflect longer-term investors coming close to break-evens. they're at the pointer where if the market goes down, they may have to sell in order stop their loss. >> dodge, this is christine. what about bringing people back on the sidelines to invest in the stock market? >> the question they're asking us, why do we have to get back in now? we're going through summertime. there is a lot of volatility. what ashraf said earlier is quite true. we see a lot of trading and volatility coming in that doesn't make sense from a

longer-term point much view. investors are on the sidelines and probably are going to have much more conviction to put money to work. >> dodge, you look through to this week. it's a big financial week of reporting. what will be the key out of financials? what are the two key ones you'll be looping at? >> goldman sachs, jpmorgan. what we're looking for is a lack of disappointment in future expectations. we're not as concerned about the performance. what we're really looking at is what they're going to say in terms of the thifrd and fourth quarter. if expectations have been built in, no problem. we'll get through this trading range. at the end of the summer, we'll probably see a move to the upside. if there is pessimism coming into the market, it will be treated more seriously. with low volume, it's much easier to move the market to the down side. >> dodge, the estimates for a lot of these companies are all

over the map. you know, from looking at bank of america. from a steep loss to a bit of a gain. is that perhaps a better barometer because they have a wider portfolio and in some senses are a more troubled bank than jpmorgan and goldman? >> it is important because they have a wider variance in terms of theirness. what will be important, bertha, is their bottom line and the expectation of whether or not they'll be able to turn around and have more positive variation than they have now. unless we see that, bank of america and some of the larger banks that have that type of exposure will have some selling pressure. that's what we're beginning to see in the market. >> dodge, thank you so much for joining us this half hour. dodge dorland, the chief investment officer at lander capital management in the u.s. the futures this morning pointing to the down side. at's it for now. m bertha coombs here. d#: 1-800-0 "i rethinking everything...

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