i'm christine tan. in asia, the indonesian capital of jakarta is rocked by explosions at two luxury hotels, stocks and the rupee falls. i'm ross westgate. germany has opel plans. they say they see the carmaker repaying government loans within five years. i'm scott wapner in the u.s. investors will be greeted by a whole host of earnings today topped by city group and general electric. >> hello and welcome to today's program. you're now watching cnbc's "worldwide exchange." plenty to talk about in today's

program. we'll begin with the latest from indonesia. ahead of that, global stock markets are a little firmer today. the ftse cnbc global 300 up 7 points. we'll see gains in the ftse 100. if we close these levels, it will be five days of gains in the ftse stock market. xetra dax is firmer.r. a number of sections that are higher today and they particularly include -- we've got autos and banks a little firmer, as well. so those are the sectors that we're particularly looking at, as well. on the currency markets, the yen got a little strength. dollar the/yen is down to 93.67. euro/dollar is being pulled off the highs at 1.4075. sterling/dollar is back below 1.63 at the moment. christine. >> hey, ross.

here in asia, most of the markets rose with the exception of jakarta. we are watching two explosions ripping through two hotels there and that is weighing on the jakarta composite as you can see there. elsewhere, the markets seem to be bothered by earnings. the kospi is up 0.6%. the shanghai market ended up 0.2%. the hang seng is up 2.5%, clearly a big winner there on corporate earnings, as well. in terms of crude, political uncertainty is weighing on the price of crude. brent is also trading lower just a touch, 46 cents, $63.29 a barrel. scott, over to you. >> all right, good morning, christine. thanks so much. in the u.s., let's take a look at how futures are shaping up on what can be categorized as judgment day here with bank of america, citi, general electric,

three behemoths reporting today. take a look at the markets here. a positive day yesterday led by tech and comments from dr. doom himself, nouriel roubini lighting a fire under the market late in the day. the dow is down by at least 22 points in fair value. tech has been the standout. i think technology had something like a seven-day run here so that gives you an idea of the strength. ibm after the bell yesterday and google after the bell with decent results, too. s&p 500 is nearly flat. taking a look at the ten-year treasury, the yield fell after a run yesterday, 3.535%. and gold today is trading -- take a look here at the gold market, $935.75 an ounce there,

basically a flat move, christine. >> okay, scott. joining us for the latest on the indonesian bomb blast, we have on the line our correspondent time asia live on the line from jakarta. jason, what's the latest you can tell us? who do we know is behind the bombing? >> it's still early to tell who is behind this. hezbollah just came on television about 15 minutes ago and gave a very emotional speech. he did say that -- it's a very interesting -- not exactly evasion, but they're pointing the fingers at possibly rivals, basically saying that terrorists that were behind this may not even be terrorists that we know, might be a different kind of terrorist that we know of.

he also explained that he had received -- from different government agencies showing pictures of his face being shot, strictly people having been trained using his photo for target practice. so he is making very strong accusations that there were people interested in possibly y not seeing him inaugurated, people unhappy with the election results. so he thinks this could be related to the election. >> okay, jason, we'll have to leave it there. we would like to apologize for the sound quality of that particular interview. scott, over to you. >> okay, christine, thanks. general electric reports second quarter results at 6:30 a.m. new york time today. the parent of cnbc is forecast to earn 23 cents a share and $42. billion in revenues.

investors may focus on ge's cash reserves.. bank of america reports its 7:00 a.m. new york time with analysts looking for signs of improvement in both credit conditions and whether the rise in loan defaults is moderating. citigroup reports at 8:00 a.m. while it may benefit from strong investment banking. citi may be hit by several charges, including a special assessment of the fdic. ahead of the results, let's take a look at the boards here. general electric is virtually flat. bank of america to the down side while citi is to the upside by about 4% out in frankfurt. ibm's second quarter profits meantime rose 12%, topping forecasts, although revenues lagged estimates. but that was overlooked as big blue is raising its full year outlook. ibm is benefiting from focusing more on higher benefit businesses. google's second quarter profits

jumped 19% beating forecasts, but revenues only rose 4%. the ceo says although the economy has made it harder to sell john line ads, he doesn't expect it to get tougher. ibm is higher by 3% and google is giving back about 1.75%. joivening us now, nicu harajchi and daniel. daniel, let me begin with you. really, i sort of set this up as judgment day here, right? you've got bank of america and citi. it will give us a real good picture of where the money central banks are right now and, of course, general electric. what do you expect and where do we stand?

>> good morning. i agree it's a great day, although we're in a summer lull. no one is expecting anything too dramatically positive. i think that the fact that we've got the earning hes season well under way, the upshot is some -- >> yeah, you can keep going. the upside? >> yeah, no, the -- sorry, i can't hear you. >> let me turn to in this cu. what i found interesting is that as we've watched the unemployment rate tick higher here and you've got the number of predictions on where it's heading, you see unemployment is not a lagging indicator, but, in fact, a leading one. explain that. >> i think that's a very, very good point.t. we have investor sentiment coming out and looking at a wide

variety of fundamental economic data. and i think if you look through them, overall, they suggest that the downward momentum has slow and is very much intact. i think people are looking on sentiment, hopefully believing that the markets will return to growth and that it will generate positive returns. whereas i think you should look at unemployment. unemployment figures are not what it has been in the past, but what it is going to be. >> do you mean the growing impact of greater unemployment?? >> exactly. >> does that mean, then, when the markets -- what, the ftse 100 has priced that in this week, that's not a rally you trust? >> no, for sure not. we don't trust this rally. and the we think that the current rally is not going to continue.

if you look, we need a consumer-based economy. if you look at the u.s. consumer, there are more and more of them out of work and everybody is aphrase of losing the jobs. so in order to get this private sector consumption back on track, i think you would need the balance sheet of households who can't get refinancing, who can't get home equity loans any more, the overborrowed small businesses which is going to suffer if cit goes bankrupt and especially the balance sheets of the financial sectors. we need them to get repaired, to get back on track if this is what investors wish. >> daniel, what do you make of that? do you go along with that or are you more positive? >> i do, indeed. i want to apologize before. i'm having problems with sound here in zurich. i and we are reasonably bullish still. we're sticking to our guns and are going to maintain the

position through the strategy that we've had at the beginning of the year. we, like everybody else, are looking to buy on dips here in equity webs but i have spoken to people who are skeptical about whether any upper leg, whether we can push through the upper bounds of our range now just on financial strength and the -- we're going to have to see buying of more defensive stocks into a prior you a item rally. >> daniel, this is christine. in your nodes, i think you like emerging markets. particularly china and india. tell me why you like these two markets. >> we do. china is -- has had a lot of or has a time of expectations on its shoulders in terms of helping bring the world out of this economic recession. i'm not confident that china

alone can do this. but the first tentative signs from china, they've been so successful in there in the measures that they do do counteract the crisis and i think that they are going to not be one of the leaders out of this, at least be one of the major players in the recovery now. >> nicu, do you agree with what daniel just said? do you like china? i see ininour notes you like norwegian government bonds. >> first of all, i do agree with daniel.. he picks the two countries that we believe in, as well. i mean, it was manufacturing and production which took china out of the recession. if you look at it today at the

u.s. gdp, it's below 13%. i can this has very much shifted to china. i think as daniel said, i think china and india, they are the big players of tomorrow. why do you like norwegian government bonds? i think people should take away from the equity markets until we at least see two to three quarters of fundamental data that proves that the economy is improving and not actually going down. and that is why we think that the norwegian government is a very secure place and especially norwegian bonds. >> nicu, thank you for joining us, nicu harajchi and daniel, thank you, as well. and apologies for the sound. in other stories, rhj has outlined its opel ownership plan for a 51% stake. the offer includes paybacks and reduction cutbacks including more than 9,000 redundancies,

but rhj says the carmaker will repay its loans within the next five years. shares of ba has been trading near the top today. the airline is going to raise 490 by issuing five-year convertible bonds. it's negotiated bank credit. it's designed to quash concern over the group's cash position, which the ceo says is now one of the strongest in the industry. the firm has reported an operating loss of 100 million pounds, three months to june. elsewhere, stocks in france accor is trading lower. it reported an 8% drop in its first quarter revenues. sales growth also slowed, but the cfo is warning that the unit will not meet its target this year. >> meanwhile, ross, rio tinto says allegations that its

employees were involved in prescribery with steel mills is unfounded. the miner added it's continuing to operate in china and maintain high levels of iron ore shipments in australia. sydney is up 0.15% and london it's up 0.7%. christine, cit says its board is seeking cash positions to stave off a bankruptcy filing. pimco held an emergency conference call on thursday to discussion the options. they're reportedly considering a $5 billion debt for equity swap. cit may raise up to $3 billion in financing which would be secured by a group of debt

holders. this would be based on cit getting government approval to transfer assets to a bank in utah. you can get more news, videos and blogs at cnbc.com.. we'll bring you more news from jakarta still to come. as we talked about, jpmorgan and ibm beat the streets. can that momentum condition? a slurry of bank earnings continues today.

can the rally continue today? as we go through another major set of earnings reports, let's find out where we are kicking off around the globe with becky. >> to be honest, the ftse 100 has had a strong week, actually. we've had four straight days of gains for today and we've seen a day of gains coming through today, as well. 23 points or so higher at the moment and that will add up to a whole week of gains if, in fact, we manage to sustain that through the day. british airways is providing a bit of a boost today. let's take a check and see what's going on with the shares of that company.y.

they're higher by 4%. ba came out with a statement this morning in which they told us they are going to raise our liquidity position by 600 million pounds. they are issuing convertible bonds. we have some headlines coming g through from reuters saying that they have covered that convertible bonds, also increasing the banking facilities, as well, plus they are telling us that they have agreed terms with their pension trustees to release bank guarantees and adding that they are going to have a first quarter operating loss of about 100 million pounds. also cable and wireless is worth a mention, too. this company reiterating its full year earnings outlook saying that the head winds that they're facing at the moment in caribbean are intensifying. so the shares there are still rising by 1.3%. sylvia, how is it going in frankfurt? >> not too bad. we've had a pretty good week, to say the least. 10% this week.

we've cracked the 5,000. the futures market is looking at the 50/50. 50/85 now on the upside. we've taken 1% sip out of the bottle today on the friday so far and it looks like we haven't seen the day's highs yesterday.. so the market seems to be pulling from the upside. we've had problems to the opposite side until maybe a week or so ago when the futures market was pushing the market down, the cash market down. so we're playing the up side at the moment, but let's not forget one thing. the year 2002, erie similarities. after that, the dax headed south to 2,500.0. we don't want to spread doom and gloom where we're not out of the woods yet. on the upside, there isn't that much that is headline worthy in the sense of the stock down, the deutsche borse, s.a.p., siemens,

they haven't made any headlines, but rel ofly higher. on the downside, a bit of pressure we had metro earlier on, but that has evaporated. so it's a relatively good day. on we go to paris and stephane pedrazzi. >> and it's a good day in paris, sylvia. so far this week, the cac is up nearly 8%. we are up nearly 1% right now on the front market. acco boasted a 9% decline in sales for the second quarter. the numbers were a bit better than expected. but the cfo for the company says there are no signs of stabilization and that the lower interest rates are affecting the prepaid services division, which will not post any sales growth this year. that's the bad news for the company because it's very active division within accor.

the stock is down 7% right now. the company posted a 1.2% decline in the second quarter, which is better than expected, but accor says there are no xwompts coming in the near future. all the computer-related companies are trading higher on the back of ibm. also trading higher, renault, the carmaker, announced this morning a 6.5% decline in vehicle sales for the first half of this year. but the company management to maintain its market shares. the stock is up 1.8%. over to zurich now with karen. >> hi, stephane. thank you very much. we're seeing nice gains being

made higher by roughly 0.9%. most of the stocks are in the green including the cyclicals and the consumer stocks. but we see some weakness in some of the financials including ubs and swiss re. on a more somber nose, wholesome indonesia has confirmed this morning that its ceo, tim mckay, has been killed in the jakarta hotel bombings. to give you a little more background about the company, wholesome indonesia is the third largest producer in the industry and it is joined 37% by its swiss parents holcim. the very bad news had an impact on the stock. shares in holcim were dounl more than 35%. if we take a look at holcim shares in zurich, they're holding up very well. one thing i want to mention here with respect to holcim and

switzerland, today is -- or yesterday the subscription rights for a capital increase and yesterday, that may be part of the reason why holcim shares in zurich are trading higher. let's cross over to saijal in singapore. >> thanks, karen. i'm going to continue with the information in indonesia. the latest numbers that we have, at least nine people have been killed. the police commissioner is now confirming there has been 6 people injured. the jakarta composite in a knee jerk reaction was down 62%. we are seeing a decent recovery there. the indonesia rupee was down as much as 1%, recouping some of those losses. bank of indonesia said they did intervene. they sold about 100 million.

and the finance minister making comments to minimize the impact on the rupee. the yen sending the higher didn't impact the exporter stocks in japan. we saw the nikkei closing up about 0.6% higher. one stock that didn't do very well, nec corporation on reports that they may be set to raise about $2.1 million. that would be very highly dilutive. those shares were down almost 9%. now over to scott in the u.s. good morning, scott. >> and good morning to you, saijal. thank you. earnings will likely dominate the discussion today with ge, bank of america and citi out before the opening bell. as for economic data, it's forecast to remain unkwhangd at an annual rate of 400,000 units. building rates are expected to rise by nearly 2%. white house adviser larry

summers is speaking in washington. his topic is rescuing & rebuilding the u.s. economy, a progress report. that is your global stock watch. of to you, christine. >> coming up next on "worldwide exchange," japan's prime minister fights for his political survival. we'll assess whether he can hold on to power ahead of the august elections. plus, is there further evidence of a recovery for the tech sector? @@@@@@@@@@

i'm christine tan.n. in asia, continued neeshan capital is rocked by bomb blasts at two jakarta hotels. >> and i'm really really. rha outlines its plans for opel and says its seeing the carmaker repaying government loans within five years. and i'm scott wapner in the u.s. investors will see a whole host of earnings numbers today topped "citigroup and ge electric. >> just trying to tick higher right now on the ftse cnbc global 300. trying to tick higher up 14 points. here in europe, we just hit the session highs.

up over 0.8% for the ftse 100. over 1% for the xetra dax and cac 40. now, a short while ago, we had seen the yen make ground against the dollar. that was helped in part by sort of a slight risk aversion after the blast of indonesia. dollar/yen, still at 93.66. euro/dollar has gone back over the 1.41 mark. sterling/dollar was below 1.63. so they're clawing back their earlier losses and the euro is firmer against the pound. christine. >> hey, ross. here in asia, markets rose with the exception of jakarta, two bomb blasts surrounding hotels there. elsewhere, it was a positive session simply because a lot of optimism about corporate earnings and a recovery. the nikkei 225 is up 0.6%. the kospi is south korea is up 0.6%.. the shanghai market is up 0.2%

and the hang seng is up 2.42%. overall, a pretty positive session with the exception of indonesia. >> we've had two great days here. take a look at where futures are right now. and you know what? we're a little above fair value here. the picture is improving, at least. so the nasdaq is just below, the s&p 500 is slightly below, as well. but psychology has been the leadership group over the last week or so. seven straight up sessions. interesting comments yesterday out of nur el roubini. he is, of course, known as dr. doom. he is saying the worst is behind us. but earnings after the bell yesterday from tech sector, from ibm and google will be played into the market today.y. take a look at the ten-year yield, as well. as we set you up for this busy friday in the market, 3.55%.

joining us now is daragh maher. daragh, the dollar touched a six-week low yesterday. what's your outlook for the greenback today and, you know, what do we have to look forward to? >> well, i think the dollar will remain on the defensive until we hear otherwise, in other words, until we get numbers out on the corporate earnings side because as ross said at the top, we're approachinging five up days in a row and to my mind, that's s nearly a trend and we haven't had trends in these markets for so long. until we have something to trip it up, the bombing in jakarta has been one, it's relatively short lived we will see the dollar as parts of this risk appetite coming on board. >> if you spin that forward,

assuming that that trend remains intact and the dollar remains week for the second half of the year, that's better for corporations here in the u.s. that do business overseas. >> they'll benefit from that. but you have to make that assumption. you have to say, assuming the dollar continues to weak.assuming risk appetite continues to build, we're still in an environment where that's the big leap of faith to make at this point. we're not seeing much actual economic growth. we're seeing growth in earnings and that's reflective of cost cutting. perhaps they won't feel obliged to cut costs any more. but there is a gap there and i think in the meantime, i think we're more likely to trade in the sideways motion on the currency. >> what changes that, daragh? >> the numbers, frankly. we've had a lot of the forward-looking indicators improve, the pmi, confidence indicators, etcetera, but what you need to see is final demand coming through. confidence is up a bit higher

and that needs to translate into spending. when does that happen? i suspect the end of the first quarter. we've been in this environment before where everybody is promising everything happening three months from now. we have to be patient, i think. >> if we do get a good earnings season, though, daragh, and the stock market, if they can callie on the back of that, how much self-beating confidence might that sort of sent back into consumption and, you know, sort of wider investment spending? >> i think it's an absolutely critical component, if you look. it's a vicious cycle that we had on a down swing can equally play in a positive way. central banks are aware of that. one of the things they've been been trying to do is pin it down in the markets. they hope there is a positive feedback. it seems probable. but at the moment, as you can see, two weeks ago, we've seen equity markets decline.

people are getting nervous. it's very, very fickle. >> if you look at the japanese yen, is the politics in japan going to have any impact on the japanese currency? >> yeah, potentially. i mean, with this election looming, a possible change of government for the first time in 50 years or so and in general, the opposition is seen as a reformer party in japan. if we continue to get improvements, for example, in risk appetite, if that's how it plays, it might constrain the general weakness if we have this reformist back drop and lingering over the market that might play a positive for the yen. >> what would be the best currency to invest in right now, daragh? >> i like the idea of playing sterling and i think we have reasonable gdp numbers next week. maybe another round of good retail sales numbers. the mpc minutes i believe will

point towards more qe. if the corporate earnings in the u.s. continue to come through strong, you'll continue to buy currency currencies like, for instance. we've been talking about japan and let's talk more about the gains that were capped in tokyo today. japanese prime minister taro aso seemed to survive a party rebillion after critics failed to garner enough support for his exit. richard is joining me in our singapore studios. aso has managed to survive for now. what do you think is going to happen? >> he looks like he's going to hang on, but i can't see he's going to win the election for them. it seems the opposition that aso will be the end of the ldp.

>> what the does that mean for economic policies in japan? >> i think they don't have an economic policy. what they have is a plan to buy enough votes to win the election. they don't have a plan for improving the underlying growth rate. >> ross. >> sorry, christine. i thought you were going to have another question. how does the yen look at the moment? are they comfortable at all with where the yen is at the moment? >> i don't think they're particularly comfortable.. they need a bounce in industrial production, a bounce in ex ports to help to drive the recovery. obviously, the more the yen goes

up, the less there's anything they can do about it. whenever there is a weakness on the market reduction in risk, then the yen has been bouncing and i don't see there's much they can do about that. >> richard, it's scott in the u.s. you say japan needs a bounce in ex ports. where is that demand going to come from? >> initially, it's coming from the inventory cycle. they've been suppressing ex ports over the last six months to burn off joef seas inventory. knew they're begin to go increase ex ports. you don't really need an increase in demand for the first stage of this recovery. it's just inventory-driven process. >> richard, i want to pick up what you said earlier about the gdp winning, the democrats winning, they don't have a clear guideline for growth in the recovery. is this going to stall the recovery in japan, you think? is that going to drag things out? >> i think actually the

democrats, even though they don't have a plan for the economy, this might be positive. what they have is a vote-buying plan. they're planning to increase disposel incomes by 20%. they're saying there's no increase in debt issuance. they're going to find the savings from other areas. but as far as i can see, the savings probably don't exit. there's probably a net easing of policy and a net stimulus for demand. my concern, really, is it would undermine the confidence in the fiscal sustainability that might be bad for the bond market. >> so the public debt willing up?? >> the public debt will go up and they have no plan of how to stabilize it in the medium to long-term. so there is the risk that you lose confidence in the bond market and in the medium term, that will be bad for the exchange rate. >> thank you so much for talking to us.

now from japan, let's head over to india. ayesha faridi joins us live from mumbai for the india business report. ayesha. >> thanks for that, christine. the cushion or the rally has kicked in in the entire autos space. you are seeing buying in some of those metal counters, as well.. the midcaps are seeing a fair amount of buying. amongst the liquid-traded universe, satyam is one counter that has been powering ahead in trade today. in fact, the market cap has crossed mahindra today. data sdult consultancy services or tcs will come out with its numbers today.. we are expecting a muted quarter with flat revenues may come in for cross currencies. in fact, the entire technology

basket is holding on steadily. but of course, the key words that the markets like, disinvestment. they have, indeed, identified three companies from which they are going to kick start this investment program. a couple of them could remove iron ore. you have manganese orr. all of these companies are holding up very well. besides that, it's turning out to be a good day. volumes at this time appear to be a little less than what we clocked yesterday. >> thank you for that, ayesha. we are keeping an eye on those deadly bomb blasts in indonesia. bombs went off in the city's business district killing nine people and injuring as many as 50. a lawmaker has reportedly said that a suicide bomber may have

been involved. among those involved include timothy mckay ceo of the holcim industries. indonesia's president has called the bombings an act of terror. he says the bombings were a response to his re-election to a second term. the rupee right now getting hit as a result, trading up 0.5%. >> christine, rhj has outlined its ownership plan for gm's opel unit. their offer includes pay cuts and production cutbacks. the carmaker will repay its loans within the next five e

years. shares in ba are up nearly 5% after they unveiled monies to avert cash crisis. it's all designed to quash concerns over the group's cash position, which the ceo says will be one of the strongest in the industry. ba reported an operating loss of 100 million pounds in the three months to june. stock in france is sharply lower. the hotel services group accor posted a 7.5% drop in its revenues. businesses have tightened budgets. the cfo has warned that it will

not make expectations this year. shell may cut u.s. refinery staff. shell says it has no plan to sell any of its operations. the number of job cuts hasn't been decided, but could impact salary, hourly and contract worker hes. in hond, parent royal dutch shell is trading higher by 0.6%. starbucks wants to be your night destination.n. they're opening a cav a next week that will offer beer and tea and live entertainment. starbucks say other stores will follow. christine, that's an interesting story there. >> we can get more news, videos

and blogs all at cnbc.com.m. coming up on "worldwide exchange," cit on the brink. the lender scrambles to secure financing. can it stave off bankruptcy? >> yeah. and we'll get the latest on the currency markets, as well.

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let's turn our attention to the currency markets. the dollar/yen, 93.6 3. euro/dollar has bounced off its lows. 1.41 against the dollar. sterling/dollar, we went on air at 1.63 just above that. now we're at 1.6312. sam, we went through the asian session today. particularly, you saw obviously the yen strengthening. how much of that was due to the indonesian bomb blast. we're going to be more cautious going into this earnings today with ge, bank of america and citigroup? >> i think the bomb blast initially is acting as a catalyst for a move that was going to happen, anyway. we've got alternatings data out in the states with half a dozen

major corporations. so traders would have been positioning themselves ahead of that. and this gave them a good excuse to sort of take risk off the table and start buying the yen in anticipation of potential ly an up side to corporate earnings. >> sam, this is christine here. how bearish are you on the indonesia rupiah?? >> it's not particularly bearish. it's had an incredible year. i think, really, i mean, a 1% depreciation in the currency after two bomb blasts is not significant in itself and a lot of those losses have been regained. so i'm not overly pessimistic on the rupiah. it is a bright light out there within the asian economies. fundamentals are pretty good. growth prospects look excellent.

overall, i think if anything, it will probably bounce back nicely. >> sam, big day for earnings here in the u.s. as we go through the season with this upside surprise, that means a weaker dollar. but that's better for corporations over the long-term, right? >> yeah. absolutely. export numbers came out last week very, very strok and supportive of a recovery in gdp towards the end of this year. you're quite right, scott. they're great figures. everyone wants to see a much better corporate background over in the states and certainly that will mean a weaker u.s. dollar. it's a risk appetite play at th moment. i expect to see the dollar hit by good figures. however, we're starting to see positioning ahead of that. we're seeing cable down 2 cents off the back of, you know, potentially the jakarta bombing but also positioning in ahead of these numbers. >> right now, i mean, can you

sort of make a trade, you know, for a few weeks or is it literally day by day? >> a lot of traders are dropping the market day by day. we're in such defined ranges at the moment. 1.38, 1.42, the pound is 1.60, 1.65, but even shorter range than that. so really, the trend needs to be established. we need to break out of the short-term range. it's quite easy to place stock loss orders below support and take orders above to resistance. >> what is the range? >> the trend has almost disappeared. the overall trend with dollar weakness. we're seeing a bit of strength return. and that will take the future movement for maybe the next month or so. >> stan, what's your outlook on

the kiwi. your surntky at home dealt the currencies a big blow. >> the kiwi is holding up nicely. the kiwi is very tenacious. it looks absolutely awful when it's sitting on support, yet in the next day, it's down two or three cents. at the moment, i have to say a likelihood is we'll see 0.6194 probably will hold and on the top side, it seems to struggle at 0.65, which it's not far away from at the moment. >> it's tenacious, like you said yourself, sam. look, you could probably look at any currency pair at the moment and the charts would all look the same, right?t? they'll just be in these ranges. how long could we -- i mean, how long conceivably can you trade

at these ranges? >> what they do general lead to is a major breakout. and we've seen that. we've seen where the market shoots up and trades sideways. as it starts falling on the downside, then it flips the scenario more over back to where we were. >> there is some point and there is coming, and we don't know when, but sometime in the next few months, there will be a major change somewhere and a lot of people get on the bandwagon, right? >> i would be surprised if we don't see volatility change this market. >> sam stanley, good to see you. coming up in the next hour of "worldwide exchange," two bomb blasts rock jakarta. we'll get the latest on the ground. plus it's earnings judgment day. can bank of america and

citigroup follow in the foot steps of goldman?n? we'll visit earnings central after the break. the world's(announcer) leading companies thrive on collaboration with the world's leading companies. together, we're helping to shape the exchanging world. nyse euronext. powering the exchanging world.

if indonesia capital of jakarta is rocked by two bomb

blasts. and i'm ross westgate. rmh outlines its plans for gm's opel unit and says it sees the carmaker repaying government loans within five years. and i'm scott wapner in the u.s. ininvestors will have a whole host of earnings numbers today led by citigroup and general electric. if you're just joining us in the united states, welcome to the start of your global trading day. this is "worldwide exchange" broadcast live from the u.s., asia and europe. in the u.s. right now, as we get you set on this final trading day of the week where we're coming off two great sessions, we have two big earnings today. bank of america, citi, ge. we're below fair value here by about 12 points or so. technology has been the leadership group over the past serve days in a row, in fact. and we'll call the nasdaq flat. the s&p 500 is just slightly below fair value. you have housing starts out

today.y. so a lot for the markets to digest on this friday.. take a look at the bund yield, as well today. 3.33%. also want to get you caught up on the ten-year treasury yield at 3.56%. ross. >> as we wait for those earnings, global equity session, it's been up generally speaking. the ftse cnbc 300 is up 10 points. we're looking to have five days of gains here. the ftse 100 is up 0.7%. the xetra dax is up nearly 1% and the cac 40 up 0.8 along with the smi at the moment.. there's a number of sectors that we're concentrating on today. but you've got autos up, resource stocks, financials, insurers all firmer. on the currency markets, the yen obviously got sort of support when there was less risk appetite after the bombing in indonesia.

dollar/yen, 93.70. euro/dollar, just slipped back to 1.41. sterling/dollar, 1.6308. as we just heard from sam stanley, we're very much in the ranges. >> markets, too, pretty much in the ranges. a lot of optimism. not moving beyond that stage because there's still a lot of uncertainty when it comes to the stages of the global recovery.. nikkei is up 0.5%. the kospi is up 0.5%. the shanghai market is doing pretty well, as well, up 0.1%. the hang seng is up 2.4%. the jakarta composite is getting hit, but a recovery. it was down more earlier because of two bomb blasts rocking two major hotels in jakarta killing nine people. that is put ago weight on the jakarta composite. scott, over to you. >> okay, christine. thanks so much. this st a heavy day for

earnings, judgment day on what has been a critical week. we have general electric reporting second quarter results at 6:30 a.m. new york time. the parent of cnbc is forecast to earn 23 cents a share and $42.1 billion in revenues. investors may forever, however, on ge's cash reserves as it tries to offset losses from ge capital. bank of america reporting at 7:00 a.m. new york time, as well, with analysts looking for signs of improvement in credit conditions and whether the rise in loan defaults is moderating there. citi out at 8:00 a.m. while it may benefit from strong investment banking, citi may be hit by several charges, including a special assessment by the fdic. let's take a look at how all of these stocks are trading ahead of those results, if we can take a look here. we've got general electric higher by about the 2%. bank of america and citi mixed this morning, as well. also, ibm's second quarter profits rose 12%, topping forecasts.

revenues lagged estimates, but that was overlooked at big blue is raising its full year outlook, analysts saying ibm is benefiting from focusing more on higher margin businesses such as software and services. google's second quarter profits jumped 19% beating forecasts. but revenues grew 1.8%. the ceo says although the economy has made it harder to sell online ads, he doesn't expect it to get tougher. in frankfurt, ibm and google this morning, a mixed picture. ibm is gaining 3.36% and google is down 1.6%. even though you beat expectations, the bar is pretty high there. >> and that's coming in to a lot of cash so people expect big things. how does this all line up? nick parsons is head of national australian bank. he'll with us for the rest of the hour.

nick, how do you weigh this? we're waiting for those three big companies today. is today going to be the key? >> every asset market around the world is trading directly or inversely correlated to the s&p 500. you can see that if you look at currencies from australia to new zealand. you can see it in the t-bond future and in oil. everything is moving in line with the equities. the problem is that the equity movements have lost all power.. if you're trading a spot foreign exchange rate, you've got the s&p 500 future there. but it doesn't have any predictability power. >> and so to bring that back in, whatever you're trading, does that mashg the number today even more important?

>> well, yes, it does. now everybody is focused on them. we've potentially got amplitude coming in the market reaction.n. it will come from everywhere. people who couldn't care less whether b of a meets, people will be now focused on that whether they're trading oil, equities or bonds. >> nick, when goldman sachs blew away their numbers, people said it's not a great idea of how the fms are doing. today it's a goldman story. but today we get some information from real money center banks. right? >> well, that's absolutely right, scott. the two institutions that you have expected to have done well turned out extremely well. what we're going to find out over the next few hours is whether that performance has been replicated across

geographies and down the credit curve. what we have seen is polarization of business. the filg big firms have done best. the sterms with the best credit ratings seem to have done better. what we'll be able to do is add some color. really, at the moment, we have two data points that stands out. hopefully we had add color and gran ewe layerty to that story and hopefully by the end of next week we'll be able to make more sensible judgments rather than rushing to judge on the basis of two standout results. >> nick, christine here. what do you need to see from these two banks, bank of america and citigroup, to know that the u.s. consume ser holding up pretty well ask, you know, recovering? >> i don't think we're going to see anything from the banking sector that will tell us that.

we're going to see an increase in bad debt, we're going to see concerns about future write-offs. so i don't think it's from the banking sector that we'll get clues from the consumer. i think what we have to look for is sectors outside the financials to have a look and see if these earnings are being driven by cost cutting or whether they're going to be driven by top line volume growth. if it's driven by volume growth, then i think we can be hopeful that that will feed through into more income for consumers or more consumer spending. but of course, if the earnings exceed estimates simply on the basis of stripping out costs and stripping out head count, then today's earnings wins are going to be tomorrow's weakness of consumer demand. i can it's outside the financials that we'll have to look to get a better look at the

financial sector. >> thank you, nick. let's turn to a story we've been watching slowsly throughout this show. we have our jakarta correspondent from the financial times live on the line, john aglionby. i'm looking at the wires and seeing a report that maybe one of the bombers was disguised as a hotel guest. what can you tell us? what's the latest? >> the latest is that it's still extremely murky and no one is quite clear exactly what happens. there are two possible theories. i either it was islamic terrorists in a similar mold to the previous bombings in 2004 or 2005. or it was perhaps political ly moevenated. so the stakes have been raised. it's uncertain. police are doing their investigation and anything is

possible. it's going to unraveling in the next few days, but certainly no one was expecting this attack here.. >> to what extent has this shaken investor confidence in the city? >> very little. there's been a bit of a short-term spike in concern, but no one i've spoking to believes that it's going to contract from the very strong fundamentals and the economy is growing above 4%. the election went smoothly. and people believe that the rubble isn't expected to last very well and that continued strok foreign investor will continue forward. >> so john, no one is fearing this is the start of a sustained campaign? >> well, never say never. and if it's an islamic attack, probably not. if it's political "orientated, we're into unchartedered

territory, and anybody can be possible. but i'm sort of betting on it. most people think it was a one off and in the way the previous attacks were and that it's not part of her being more deeper, nastier that is going to trigger some sort of revolution in the nation. as one person said to me, if it is political, and that's a big if, it's amongst the elite and the people aren't going to pick it up. the grass is not dry. >> john, what can you tell us about the damage being done to the marriott and the ritz carrolton hotels? how soon before business can start to rezum?m? >> from the outside, it didn't appear that the damage was that b bad. it appeared moore superficial. >> pooh people that got inside said the terrorists were bad.

i recommend business could get back to normal or nearly normal certainly within a week. >> john, thank you so much for talking with us. still to come on "worldwide exchange," what do expect earningswise from ge, citi and bank of america? plus, economist nouriel roubini says he's on the markets, despite reports to the contrary you're in the right place. only progressive gives you the option to name your price. here. a price gun? mm-hmm. so, i tell you what i want to pay. and we build a policy to fit your budget. that's cool. uh... [ gun beeps ] [ laughs ] i feel so empowered. power to the people! ha ha! yeah! the option to name your price -- new and only from progressive.

call or click today.

big story we continue to follow, cit says its management is still trying to stave off a bankruptcy filing. cit's biggest bondholders, including pimco, held a emergency conference call to discuss its options. cit may also raise up to $3 billion in financing which would be secured from a group of debt holders. reports say these plans depend on cit getting government approval to transfer some assets to its commercial bank in utah. >> rhp has outlined its plans for opel here in europe. it's offering $5 .3 million for a 51% case. that offer includes paybacks and

cutbacks. but rhj says it would repay the loan it gets from the german government within the next five years. elsewhere, stock ba is up 5% after the carrier paid $1 billion to avert a cash crisis. it's also negotiating bank credit with its pension fund trustees, the move is described to quash concerns about the cash position. it will now be one of the strongest in the industry, according to the cfo. that comes as the company reports an operating loss of 100 million pounds. rio tinto says allegations that its employees were involved in the bribery of officials of steel mills were unfounded. rio says it fully supports the four employees held by china.

rio tinto shares in sydney and london are moving higher. sydney, up 0.15% and london, up 1708%. elsewhere, nec corporation reportedly joining the list of companies raising funds through the equity market. according to reuters sources, nec is looking at a capital raising worth more than $2 billion to help repay the restructuring of its chip making unit. nec electronics will do so through a public share offering and by issuing hybrid scare securities, as well. shares in nec losing a lot of ground today, down nearly 9% at 288 japanese yen. scott. >> okay, christine, thanks so much. let's bring back in nick parsons head of strategy of australia national bank. wuven of the big stories yesterday wag newer nouriel rou

coming out and saying we've seen the worst of it. for all of you who don't know, his nickname is dr. doom. but he did come out and say, hey, wait a minute, i didn't say anything was better. i still think we're in one heck of a bear situation here. your overall comments on that? >> yeah. goit a couple of calls yesterday saying hey, has roubini changed his call and what do you make of it? certainly from the headlines we were reading, it didn't seem to be anything in the nature of a change of course, in fact, in the ranges of what he said before. i didn't agree or disagree with him. i believe that, in fact, that is what he's reiterated this morning. what we're seeing here is a situation where across the g-10 economies, things are getting worse more slowly, which is good

news. it's good news relative to the sequential months we saw in '08 and the better part of '09. so the good things is that things are getting better more slowly. so yes, we're going to come out of recession. we always do. and we have going to return to normal growth. where we got used to the global yes growing at 3.5% to 5%, probably procedural going to be -- that means instead of getting used to 3.75% as the norm, it's probably something more like two and, therefore, compared to previous recoveries, it's going to be much more subdued. and i think that's probably the key take away from what we've got from these comments. it is going to be a subdued

recovery. >> look, if anything, it shows you the power that a guy like roubini has to move the market. you can debate whether you think he said something new. but the mere fact that he said anything that seemed to be ro rosier, the worst is behind us, it was enough to move the market.. absolutely. you saw the dow move 70 points in the space of the last minute of trading. it does move the market. what it shows, also, is that the amounts of money that is waiting to come in. there are a lot of people waiting to get long of this and i think a lot of people are quite frustrated by the strength and speed of the rally that we've had during the course of this week. let's bear in mind that on monday morning, the s&p future was trading around 865. we closed out last night and we're above 930. so that is a pretty stunning rallyhe basis of just two good corporate results from the banking sector.. and i think a lot of people have stepped aside from there and

perhaps the strength of the rally last night was giving us a bit of a clue as to how much money is indeed waiting to come in. >> it seems people are des operate for any good news. mr. roubini indicated his position that a recovery would be at worst a double dip. >> i think double dips is perhaps exaggerating it from our point of view. but let's remember that every recovery from a recession has involved subsequent negative quarters.. we take a uk recession, which began in june 1990, it lasted for six quarters. we returned to growth. we actually were negative twees during the recovery phase if you take the recession that began in december '79. it lasted seven quarters. we rirnd to growth. again, we dipped negative in that phase so double dip sounds bad because it giveses that impression that somehow we're

going to go back and retest the growth. but actually, zero or negative growth has indeed been a feature of recoveries against more industrialized economies. let's not be tear nationwide when it happens this time around. >> within with that thought. if you want to hear more about naca within in news, individual i don't says, blogs, row bony, you can find them at at cnbc.com. how are today's earnings being sprepted? we will love to hear from you. we know why we're here. to design the future of flight, inside and out. to build tomorrow's technology in amazing ways.

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okay.. ahead of alternatings and what's coming out of the u.s. later, we'll pick you up with equity markets. sylvia, you've been speaking to very important people. >> yes. let's start with the markets.s. good session, good week. we've done more than 10% this week. we've come a little bit off the day's highs, but be that as it may, we're climbing up enough. we've seen the 5,000. no great shakes. the futures market would like to

defend that, of course. corporate, we've got to opel saga, but not so much on the corporate front.. you mentioned the chief minister of hessa and one of the leading figures in the ceu. i've been talking to him about credit crisis and on her things and he said the ecb should not only focus on the short end of the market. here is who he said.. >> we are afraid that at the moment the central bank policy very much focused on the 12-month loans is too short-term organic to enable bamgs to talk with -- because mr. cox, a lot of people won't know who he is. but is he a potential future in germany? >> he had very important in the

eu. he sits on a number of hearing committees. so he is a man that knows what he's talking about. mull for some time when they had they happen our measures want if this is what they're tail r saming at, they can essential only 12 month to three to five-year prayings would be we're talking enof the market. try toy a meant xr cancer ecb. they pointed me to jean claude tree hey's last thoughts on this issue.e. there was a clear feeling in there because i was asked about this interview a couple of time. there is something stirring. >> sylvia, thanks for that. let's bring you up to speed with what's happening on the london market. we're trying to get five days of gains here.

becky is with us. >> the ftse 100 has been strong this week and today we're seeing gains of about 30, almost 31 points. today, british airways is lending the biggest boots boost to the ftse 100. we're seeing gains of about 5.75%, in fact, in the shares of that company. they told uts this morning their rating $600 million pounds. plus, they told us that they are -- they have agreed, rather, to the terms of their pension key saying that will very on the back of all that news. fe fan, how is it looking in france. >> very good. we do, however, have a

significant decleaner from the cac 40. starting with accor, down more than 7% after the company posted a 9% decline for the second quarter. the numbers were better than expected, but the cfo of the country seasing there no sign of stabilization in these companies. carrefour is trading lower today, as well. they had a decline in sales for the second quarter sxb and on the upside, building computer-related sxurts on if i amny. now the tibia and singapore. >> over all, we had a positive picture here in asia. a lot of investors cheering the good corporate earnings coming

out of the u.s. so really, the focus today is on indonesia after news of the bomb mravts there killing nine people and injuring as well is -- we revup about 0025%. until the central banks ibtser veeped in the market. as for japan pb the flee san will be fine. fl ec, though, very heart hit on reports that mate may take his

$200 building worth of capital. the hong kong sang second index rallying and the shanghai composite putting on mild gains. but that market is up 0.2%. scott, over to you in the u.s. >> earnings will tame nate the discussions today with bank of america and industry group. they're forecast to remain unchanged. building permtsd are expected to rise by nearly 2%. white house economic larry summers is speaking at the peterson institute for inter national economics in washington at 1 o'clock a.m. his topic is rebuilding the u.s. economy, a progress report and that is your global stock watch. however over to you, christine. actists defailed, but i think --

>> plus, how badly could a cit bankruptcy hurt american business? the firm is still in talk toes save the firm, but some of the clients will already sdriting toeshl úúúúúúúúúúúúúúúúúúúúúúúúúú

it is 30 mijsz minutes past the hour. here are the top stories around the world. in the use, investors will be met with a whole host of earnings statements. here in europe, rhj outlines its plan for opel and says it could repay the government within five years. and here in asia, two hotels are bombed in jakarta and the rupiah falls.. let's take a look at where u.s. markets will be shaping occupy this day, final trading day of the week. we're coming off two solid days of gains.

yesterday we were good for 80 or 90 or so. right now, we're below fair value. we have a lot of earnings on cap today. you're going to get a really good read on the financial sector today and you'll hear from our parent company, general electric. right now, futures are a bit below fair value by about 16 points on the dow. technology, a standout over the past seven sessions and that's below fair value, but not by much. the s&p is a bit below, as well. take a look at where the ten-yield is, as well. to see the direction that the bond market takes, 3.55%. ross, we'll set up for quite a day and what has been a pretty good week for the markets.s. >> yeah, it has. the ftse 100 up for the week by about 500. we've come back from the best level of a day. this market is about an hour or

so. resource stocks, auto is, technology. 93.76 is the yen against the dollar. the euro/dollar is back over 1.41. sterl against the dollar is back over 1.63. christine. >> overall positive sentiment here in asia with the exception of jakarta. that is pulling the jakarta composite lower, right now trading down 1.6%. the nikkei 225 doing well elsewhere holding up 0.55%. the hang high market up 1.2%. positive status of a central central market. right now, nie beckett is trading lower, as well.

$63.22 a barlt. scott, back to you. >> okay, chris teen, general electric, parents of swnz is forecast to earn 23 cents a share. investors may focus on gm's cash reserves as i tries to offset losses from ge capital. bank of america is reporting today. citigroup reports at 8:00 a.m. while it may benefit from strong investment banking, city may be hit by several charges including a special assessment by the fdic. let's take a look at where all the companies are fairing across the board. it was mixed throughout the morning and is now much improved. and ibm's second quarter profits rose 12%, topping forecasts,

although revenues lagged estimates today. but that was overlooked as big blue is raising its full year outlook. google's second quarter profits rose 3%. that is the slowest growth rate since the company went public in 2004. ceo's eric schmidt says although the company has made it harder to sell online ads, he doesn't expect it to get tougher. ibm up 3% while google trading lower by 1.6%. joining us now is julian pendock, partner at senhouse capital. still with us, our guest host for the hours is nick parsons, ahead of australian national bank. juli julian, are you reading this the same as we are, that this is a critical day for the markets?

>> i think so. people tend to take a look at equities and trading in and out of those. but right now, you can pick up excellent stocks at multi decade flows. >> julian, do you think investors who have been waiting on the sidelines missed an opportunity to get in before the better than expected earnings results came out? >> absolutely. every survey shows there's so much cash sitting on the sidelines and a lot of sales

traders and the clients i've spoken to have no conviction about equities, but at some point, you have to put your money to work. a lot of stocks may end up very happy. >> you mentioned there in the question that perhaps some investors have been caught out. there was certainly the case earlier this week. as long as the s&p future was trading below 875, a lot of the models were short. a lot of the technical analysts were short and i think that was through most asset classes. and it was the positions that actually drove the rally on wednesday because tuesday, well, you've got to give this short position a room. wednesday you stop it off and then you have the accelerated move. i get the impression a lot of people were out of the markets at the start of the week. would you share that? >> yes, i certainly would. and we've stepped away from looking at technicals so much on a short-term basis and, we are

now going to be fully invested into high quality equities and is we're looking at fundamentals. we always look at fundamentals. but we're focused purely on the fundamentals now because the short-term gyration -- >> it's too difficult, right? >> yes. >> and the cheapness of individual stocks or the cheapness of particular sectors, how does that play? >> well, we loot every stock on a bottom line basis. i think if you take a sector view, you can get called out because you have people that say pharmaceuticals are very cheap. there are a lot of disasters of drugs failing us as a chiel. so you look at things on a bottom line basis. one stock i'd like to highlight is unileaver, for example. it has a free cash flow and dividend yields about 5%. it has growth. in the broader picture we're looking at, because we invest in europe, the investors don't like

quote/unquote europe, but we're investing in european companies. unilever has 1% of its sales here inspect but some measures, as they were in mid 2007 before they crashed. so that's a crowded trade. i would be nervous. >> jultan, this is christine here. this is where i come in. why are you nervous about china? >> because if you do the math, a $587 billion stimulus package, banks have been ordered to lend to the tune of $1.1 trillion this year.. that accounts to about 50% of china's gdp. and out of that, they're just getting a 7.9% greeting rate. so money has been prompted into the system when the global

economy has turned out, it's turned out to have a detrimental effect from their banks. so i think the chinese government is panicking and they're hoping that something turns up. it will be fine, but it what happens in 2011 that's key. >> just before we let you go, nick, there's one thing we were talking about earlier. we were talking about stimulus and you have a theory that we should follow the swedes here. >> absolutely. the swedish central bank in a rather dramatic and underreported move moved the deposit rate that it pays on commercial bank reserves to a negative rate. so the banks in sweden that can think of neither better to do with thsh money is to not lending it to officials and if they give it back to the ritz bank, there's essentially a tax on the uk. what we even here, ross, is that

the bank of england has bought 120 gilt guilds. so what's happening is the bank is shoveling it out the front door and taking it straight in through the back door. i think we're going to see a sharp rally in uk government bonds. it's time for central banks to be a bit clever out here.e. >> good to see you. thank so much for joining us, nick parsons. and julian, thank you, as well. >> well, let's cross live to tokyo and check in on the trading day there this from i. kitadai-san. >> hello, christine. tokyo stocks continue to rise for the fourth straight day on a string of strong quarterly earnings reports. the nikkei index finished 0.5% higher in thin trading ahead of a three-day weekend. let's take a look at some of today's standup winners.

daiwa securities group and know moisture ray holdings both rise on the report that major -- nissan motors shares opened bid only and ended the 2.5% higher. investors snapped up shares on a nikkei report that the automaker will begin selling hybrid vehicles such as minivans based on its own technology in japan in 2011. the firm is likely to develop a low cost compact power train similar to those in honda's hybrids. in other news, the amount of japanese yen flowing into the caribbean is shrinking rapidly and i don't mean tourist money. in 2008, net portfolio investment from japan into the

caribbean plugged from the level in the scene of 2005. this is largely due to tax havens like the bahamas and the cayman islands. net v. totalled 68 billion yen last year. that's the nikkei business report. have a good weekend, christine. >> you, too, nozomu kits ta die. still to come, is a cit bankruptcy now inevitable? and how will it hurt america's small and medium sized bits. bank of america, ge, earnings on cap and now we're below fair value. d#: 1-800-345-2550 "i'm rethinking everything...

tdd#: 1-800-345-2550 including who i trust to look after my money." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "the dust might be settling... tdd#: 1-800-345-2550 that's great, but i'm not." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with doing nothing, you know?" tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking about moving my money. tdd#: 1-800-345-2550 i am moving it."

and welcome to cnbc's "worldwide exchange." here are some of the top stories we're watching from around the world. cit says its board and management are still seeking alternatives to shore up the company's cash position to try to stave off a bankruptcy filing. reports say cit's biggest bondholders, which include pimco, held an emergency meeting thursday. they're considering a equity swap and cit may raise up to $3

billion in financing. reports say these plans depend on cit getting government approval to transfer some assets to its commercial bank in utah. christine. keeping an eye on those deadly bomb blasts in indonesia's capital, we are watching the story closely. bombs went off almost simultaneously in jakarta's business district, killing as many as nine people and injuring as many as 50. a suicide bomber may have been involved.. among those killed include timothy mckay, ceo of the indonesia unit of holcim. indonesia's president has called the bombings an act of terror. they say the bombings were a response to his re-election to a second term. secondly, the manchester soccer team has canceled the squaw car

ta leg of their tour. the rupiah is trading down at the moment, at 10,140. it was lower by 1%, but now it's recovering just a little bit. stocks meanwhile are recovering just a little bit. right now, the jakarta composite is trading down 0.6%. 2,106. shares in ba have been trading in the london market t after it unveiled plans of $1 billion to avert a cash crisis. they're going the raise 40.9 million by issuing five-year convertible bonds. the company hopes this will quaff concerns over the cash position. this plan will now make it one of the strongest in the industry according to the ceo. okay. it's a busy day stateside today.

and as we go through it, becky has traveled to slightly calmer waters. where are you, beck? >> you know, ross, you are the one every time we come to you, somewhere on some junk, it may be in the south of france, maybe you're out on whimble ton, but guess what?? i get to make you jealous today. good morning from the hamptons today. this is where the wall street's biggest travel in the summer. in fact, we have a great lineup of guests today, including real estate mogul don peebles. we have famed investor ron barons and closely watched trader doug cass. we'll be talking about the market, economy and earnings. three major reports out this morning. we get the numbers before the bell from nbc parent general electric. we have bank of america and

citigroup. we're going to be back at the top of the hour, ross, but we have plenty of things to talk about. and yeah, i know it looks like we are off somewhere really fun, but we are going to be working today, promise. >> it looks great. i look forward to the show. thanks, becky. >> yeah. hard working. we'll believe that one. up next, we look at the trading day ahead on wall street. we said it's a busy day on the earnings front. welcome to the now network. population 49 million. right now, 1.5 million people are on a conference call. 750,000 wish they weren't. - ( phones chirping ) - construction workers are making 244,000 nextel direct connect calls. 1 million people are responding to an email. - 151 accidentally hit "reply all." - ( foghorn blows ) that's happening now. america's most dependable 3g network bringing you the first wireless 4g network. - sprint. the now network. - ( whoosh sound )

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welcome back to "worldwide exchange." rio says it fully supports the employees detained by chinese authorities. the miner added it's continue to go operate in china and maintain high levels of iron ore shipments from australia. rio is trade can higher in sydney up 0.2% and in london, up

2.9%. >> actually, let me pick it up, christine. we want to bring in angus campbell as we look ahead to what is a very busy market day with those earnings from bank of america, city and general electric. in fact, angus, it's been a pretty big week. you know, for one reason, am i reading it right here wbl we're turned to trading on fundamentals? >> yeah. it seems leak the market actually got ahead of itself. if you had asked me on monday if we would be looking at 940 in the s&p today, i would have had serious doubts. earnings have been relatively mixed. some people are disappointed with jpmorgan's figures yesterday and their share price didn't rally as much as had been expected. today, obviously, there's more focus on the earnings. i just hope that we haven't got

ahead of ourselves. so what we've focused on -- >> well, we're looking -- >> sorry.y. say again? >> we're looking at the s&p at 940. 946, the highest level of the year. critical that we close above that psychologically? quickly? >> yeah. i think the major test of the s&p is obviously the 950 level and then after that 960. so i'm not sure this is quite significant. and -- >> angus, we've got to leave it there. i'm sorry to cut you off. we're a bit tight on time today, angus campbell.. that's it for today's show. i'm scott wapner in the u.s. >> and i'm ross westgate in europe. >> and i'm christine tan from asia. have a great weekend.