closed off, highest level since the collapse of lehman brothers. the kospi, 2.6%, closing high. fresh 13-month high. the hang seng up 3.7%. the australiam market up 1.3%. let's see if we follow-up on the oil side as well. up 1.4%. pretty good sepgz for oil. tacking on gains as well. almost 1.66. how are the futures looking today? >> happy monday, christine. futures right now looking a little bit firmer. coming off a week where we got a bit of confidence on pretty good earnings results from the likes of intel and ibm. this morning, we've got dow

futures up 25 points. the nasdaq futures are slightly below fair value at this hour and the s&p futures are flat. we've got a lot of earnings to come this weekend. in germany, take a look at the ten-year yield on the bund. germany saying that it looks like their recession is certainly over. the ten-year bund, the yield at 3.44%. we have some supply coming to market again this week. some $60 billion. these are six-month bonds. those due tend to encourage more buying and less trepidation. at the moment, the ten-year yield striking up to 3.69% after dropping last week. we do seem to have a bit more appetite for risk these markets. >> joining us for some marge

strategy, we have the managing director of the frank organization and simon godfrey, investment specialist at fortiss investments. simon, let me start with you. are you at all skeptical about the strong pick-up we're seeing in the marketplace? >> this pick-up we've seen in the marketplace is quite logical. because the earnings are now starting to come through in a number of sectors. we're starting to see the upgrades. the risk trade has been based on the green shoots of the recovery, both on a worldwide basis and locally in the region. we're seeing strong data coming out in a number of countries in the region. this is now being backed up by earnings. no, we think the risk trade is continuing. and as long as we get support from global markets, we can continue to go higher in asian

stocks. >> harrison, what do you think? do you think this pick-up is it logical or they're choosing to ignore all the bad news? >> i think there's clearly good growth coming out of china and asia at large. in despite of the fact that asia is recovering, i'm very skeptical about what's happening in the developed economies of the world. particularly in our bread and butter, the property market. i believe that while we may be having a delicious meal of growth being served from china's restaurants, that the fortune cookie for commercial property is still very spooky. >> whoa, harrison. that's an amazing metaphor there. let's talk a little bit about commercial property and housing. a lot of folks looking to try to call the end of recession sometime this year. is that going to happen if we continue to see housing mired in this continuing falling price situation? >> here in the u.k., the housing market will recover first

because there isn't an issue of excess supply. however, in the united states we still have 2 million vacant homes. that's 1 million too many. that cook three to four years excess supply. we know that inventory is the enemy of prices. >> yet we've seen the inventories potentially rise with housing starts moving up last week. simon, what's your sense of where we are in terms of a recovery? and do you feel that the market is timing it right, or is it getting ahead of itself? are people putting on too much risk too soon? >> the recovery is obviously -- on global terms, we see this recovery as being still to be really confirmed. so there are many good leading indicators. housing in the united states sobl ois

obviously one of the areas you don't have real evidence of recovery there. unemployment remains as well. the lagging indicator is still going up. markets are pricing in relief and pricing in the fact that earnings are actually better than expected. so the markets are being logical after all. in asia, we don't think that markets are overdoing things at all. if you look at the data coming out of china, it's just better than expected. we have two factors recently of much better political situations in the second and third largest economies in the region. that is india and indonesia. to actually think that markets are pricing in, which is quite a benign scenario for asia going forward. so in those terms, we think that things are pretty much on track. >> what do you make of commodity markets, particularly the asian impact? oil is off.

gold has gone up. also on the base metals. what do you think of commodities at this price? >> well, it's very difficult with commodity markets to separate that which is coming from real, final demand. and that which is being traded as a play on risk and possibly a play on lower yields elsewhere. so there is a lot of volatility now in commodities prices and a lot of this we do see as being partially from speculative or nonfundamental buying. that being said, there is in the victories, in election victories in yaind and indonesia, a strong signal for the commodities market because demand in china will tail off as soon as the infrastructure spending runs out. the effect of that infrastructure spending runs out. and you have india and indonesia, just to name two

places which can take up the slack there. so commodities prices, we can't see -- we can be seeing supported, certainly at these levels. the volatility in that is possibly coming from less fundamental buying. >> yeah. harrison is picking up on that point about oil. how speculative is it for that particular commodity, when you compare it to natural gas. >> i think there is no question that oil is highly in demand. it's a transportation fuel. oil is a commodity, yet it is a currency. and the 20 to 1 ratio between the btu equivalent of oil and natural gas are clearly reflecting that. people do have a demand for oil as a store of value in that many investors are concerned with the degree that western governments, mature economies are borrowing money like never before. >> does that suggest that

there's a fragility to the oil prices. >> no. i think that there is an element of the oil price that is reflected by people's desire to invest in it as a currency alternative. so until governments get their financial houses in order, which seems to be a very, very remote possibility, a long time from now, oil is going to have a bid as a currency. and investors are going want to to own oil because they view it as a store of value, whereas a paper currency are not. >> question to each of you real quickly. what's your best idea right now if you're putting money to work? do you go into equities, bonds, commodities? starting with you, simon. >> yeah. well, i think you're speaking to the wrong person. obviously we are equity investors, so we definitely do still see a lot of opportunities

in equities. we're in china, india, indonesia. when you say it quickly enough it sounds like chindonesia. and good values in consumer and discretionary stocks. that's where we are putting money on a relative basis today. >> i'm a big bull on platinum now. i think in precious metals, it has that aspect. it's lagds the increase in the price of gold. the global automotive sector is at an all-time low. if you believe in the reflation story that simon is telling you, that will cause prices to increase here. >> you come in on the redeye, good luck with the rest of the day. thank you. have a good evening. some of the other stories for today.

porsche may have accepted an $11 billion from volkswagen according to reports in germany. it comes despite spokesmen in the company saying they know of no such agreement. this comes after talk of them accepting a bid from the government. they're reportedly negotiating more than a $140 million severance package, that would dwarf any other paid in europe. they're up 4.5%. also in germany, the finance minister is calling an end to the downturn, insisting there is an upturn in the economy. the sharpest annual decline since 1968, according to the

federal statistics office. and the german government is also considering a bank rescue plan, similar to the one launched in the united states. a report in the german newspaper says berlin is discussing a program that would discuss public funds to fiancee public banks. angela merkel and the finance minister have in the past opposed such solutions. also, investors shrugged off lower than expected figures from sweden. the bank took a hit from the eastern europe ap economy. rising loan losses were responsible for a net loan loss. iceland announced a $2.1 billion plan to recapitalize its banking sector. three new banks will receive fresh new capital. creditors of the old banks will be offered majority equity

stakes in the new banks. the deal is the latest in a series of steps aimed at restoring trust in iceland's national system and restoring its economy. >> here an update on the jakarta blast. police confirmed that the twin attacks on two luxury hotels mirrored previous bombings by the militant jemaah islamiyah group. firms are trying to reconstruct the bombings. under the shadow of the bombings, asian foreign ministers met on sunday, ahead of thursday's regional forum. the biggest security dialogue. meanwhile, indonesia's trade minister said the bombings won't have an impact on the country's economic outlook. don't miss our live interview next hour. elsewhere in china, the $200 billion sovereign wealth fund is

buying 40% of citic capital. it's around $258 billion u.s. a formal announcement is going to be made this week. citic is opened by citic international holdings. the warnings from the head of the china banking commission comes as june lending figures hit $223 billion, higher than analysts expectations. the ballooning loans led to a rebound in nonperforming loans. officials, sure that banks remained sound with leverage ratio controls.

>> here in the u.s., a small troubled lender in the headlines. small, mediumium-size lender cit reached a deal with a group of bondholders. details of the plan are expected to be announced before the markets open independent u.s. later today. the bondholder group, which includes pimco and other top cit holders is expected to prevent the financing or help with the financing of cit with a two and a half year term. the majority of u.s. banks that have received bailout funds from the government have reportedly used that money to increase lending. a report from the special inspector general for the t.a.r.p. program, shows 83% of 360 recipients say they wrote new loans to customers. 43% they say used the money to bolster their balance sheet. if you're looking for stuff from the special inspector general or

from cnbc or the regular editions, check out our website. you can find information on blogs and the latest headlines. >> bertha, great to have you today. still to come, see if porsche fends off rival volkswagen. we'll have the latest. u.k. home buys. are they staging a comeback? we'll bring you the latest data. three days after the hotel bombing in jakarta, we'll speak with the indonesian trade minister and the impact on the country's security and economy.

okay. so it looks likes global equities started off the week in a positive frame of mind. we'll wrap everything up from you from around the globe. christine is obviously going to be there in singapore. we'll start off though with sylvia in frankfurt. >> we have plenty of numbers floating around. let's face it, the porsche saga is the latest saga. the infighting of the owner clan. who will take over and who will lead the company. it looks increasingly likely that the volkswagen/porsche plan

is the one that is on the table and will be agreed upon. we have to say this cautiously because there are so many twists and turns in the story. thursday will be the decisive board meeting in the company. one of the owner shareholders of porsche was pushing for the vox wagon takeover. he sits on both advisory boards. he will shake things up. approximate there is indeed the story going around, which makes sense, cutter was so far only talking to porsche. what one hears through the grape vein, is that they are sitting back and waiting to see how this goes. they're a lot more interested in getting a combined stake in the company. something like 15%. an interesting option for them. that may be why the chief

minister of lower saxony, said last week cutter isn't even talking to porsche anymore. a lot of things going on there. let's hope we find out more about this on thursday, the d-day for both companies. watch out for the shares. porsche's half in price targets. under pressure this morning. off we go, rebecka, what's up in london? >> another day of gains. we averaged 6.3% overall in the week. getting off to a positive start for the first week as well. the ftse 100 currently higher boon 900 points. biggest gainer is lloyd's adding over 8%. way ahead of the rest of the pack. we have reports in the sunday times suggesting that lloyd's could announce a profit. the toxic subprime assets of that business have managed to crawl back into the value straight to the profit number in the next accept of earnings, so

say the sunday times. we have a story -- continuation of a previous story relating to french providence. resolution made in the initial takeover approach a few days ago. that was rebuffed. but the companies are meeting today to come to a conclusion between them. french providence shares rising by 2.5% now. it looked like investors are expecting some kind of improved offer to come through. watch that story. stephane, how is it looking in paris. >> pretty good. the earnings season for the french companies on a positive note. they are up 1.1% after a gain last week. the wine and spirit company, up a 9% rise of its revenue from the first quarter.

accepting a 10% increase. that's the reason the stock is trading higher this morning. air france trading higher after the company said before the weekend it's not expecting any liquidity issues at the beginning of the next year. denying recent press reports at the end of june, the airline had 4.5 billion euro of liquidities, plus a credit line of 8.2 billion. that was a statement from air france. the stock is up 0.7%. the company will increase its cost savings plan from 3 to 400 million euros. the seven countries which ordered the a-1 military aircraft decided not to use their right to cancel at the end of july. they believe they have all agreed to stick to the program despite the massive delays.

obviously very positive news for them. the stock is up 1.3%. let's look at the asian market with christine. >> thanks, stephane. asiam markets rose for the fifth straight session to the highest level since the lehman brothers collapse last september. in south korea, a lot of optimism about earnings, lifted large cap tech stocks. the kospi rose 2.7%. in hong kong, hbc reportedly shortlisted four or five investment banks to handle investments. shanghai stocks ended at a fresh 13-month high, led by metal and coshares up 2.4%. australia, the market rose to its highest level in six weeks. the s&p up 1.3%.

that's a wrap of the asian markets. i'm sending it over to bertha. >> thanks very much. it will be a very big week for earnings in the u.s. we'll get big tech bellwethers and read on consumers. we'll hear from microsoft, yahoo! and apple. other companies of note include coca-cola, pfizer, at&t, caterpillar and ford. we've got key economic data on tap as well later this morning. we'll be getting a read on the leading economic indicators. that's due at 10:00 new york time. later this week, we will get existing home sales for june, which are expected to rise, 30,000 from last month. and on friday, we get the monthly survey of consumer sentiment from the university of michigan. remember, that one had fallen. federal reserve chief bank ben bernanke also heads to capitol hill tomorrow for a semi-annual report. they'll be looking for the central bank chief to signal when he thinks the u.s. economy

could bounce back. that's it from here in the u.s. >> that will be fairly key for investors. are home buyers regaining confidence in britain? we'll find out right after this. >> plus, three days after the deadly hotel bombings in jakarta, we'll speak with indonesia's trade minister about how the country is dealing with the aftermath. ccccccccc

i'm christine tan. in asia, markets rallied to the highest since september last year, led by technology stocks. >> i'm ross porsche gearing up to accept an $11 billion takeover from volkswagen. >> i'm bertha coombs, talking about rescue financing. >> a lending data out of the u.k. the flow of net lending to british business fell for a second consecutive month in may. but they approved more mortgages in june than last month, according to the bank of england. the monthly trend in lending reports, showed net lending fell

by 3.4 billion pounds after a six-billion pound naall in apri. the gross mortgage lending picked up from 8.6 billion pounds in may. a bit of data to chew over. neil mckennan is with us. quick reaction to that data? >> generally disappointing in terms of overall lending. no doubt bank lending is still pretty weak. terms and conditions are pretty tight. for those monitoring what the bank of england will be doing on its quantitative lending program this is a disappoint. clearly, this is not having the desired effect of encouraging banks to lend to companies and individuals. some bright spot that mortgage lending is up -- >> does that add to the feeling -- there are more surveys suggesting maybe the housing market is involved. does this add more mortgage

money, that might be happening? >> you can say that. the housing market is stabilizing at a low level. i think you've got to be careful that this is the beginning of some recovery. the bank lending data the way it is, unemployment still going higher, we've got to be a little bit careful in jumping to conclusions here. >> stick around. i want to talk with neil, particularly looking ahead to the rest of the week's data. data stabilizing around 165 at the moment. let's show you where we are with global equities. pretty much near the session highs, 34-point highs. european stock markets, an hour and a half into the day. french and germans market up .6%.

the euro and the sterling against the dollar and the dollar bid higher against the yen. it's worth pointing out that that cross rate is fairly steady. this time last week wch the pound against the dollar was below 1.61. >> here in asia, japan and indonesia, closed for public holidays. japan missing out on a rally. nice gains across the board. kospi is up 2.7%. the shanghai market up 2.4%. the hang seng reached a 3-month high. and the australian market is up. nice session across the board, encouraging by strong corporate earnings and increasing risk appetite across the board. bertha, over to you. >> we seem to be moving along on that momentum and carrying forward on the futures, what we saw last week on the back of

strong earnings. very big week for earnings with lots of big names, including pepsi, yahoo! and microsoft. we've got the dow futures up about 25 points, ahead of fair value or 22 points ahead of fair value. the nasdaq up further and the s&p also up as well. as far as the ten-year yield, we're still there, but we're seeing folks coming out of ten-year notes. we dropped as low as 3.30 on the yield. we do have some supply coming to market. it is a three-month and six-month treasury auction. those do tend to be a little less fraught with anxiety than the longer data treasury. joining us is neil mckennan, the chief economist at this hour with ecu group. thanks for joining us. one of the things that people keep watching here in the u.s.

and every time we get the treasury auctions, people hold their bettering reath to see if enough appetite for these investors to buy treasuries. all sorts of economies -- obviously in europe they're doing the same thing. is this something that's worrying you right now in terms of all of the debt that keeps coming to market? >> there is no doubt that debt issuance is massive, whether it's in the u.s. or in any of the major economies to deal with the cost of bailing out the banks and trying to stabilize the financial system. and the upshot is that it's having a very adverse effect on government borrowing and debt to gdp ratios. that's the price you pay for a financial crisis. i think everyone in the market is watching all the auctions very carefully. to date, the auctions have actually gone reasonably well. it's been a good appetite for the u.s. treasury debt in particular. and foreign central banks are

still buyers. i think that's very encouraging. and i think that's why the ten-year bond yields effectively -- this is middle of the trading range -- there's been no real down side to prices here. but the auctions are important and we'll be watching the outcome very carefully. >> one of the things i would imagine everyone would be watching this week would be the testimony of ben bernanke on capitol hill about the state of the economy. if he doesn't give a positive outlook, if he doesn't reinforce this outlook that we might be coming to the end of the recovery, what's your expectation for the market and how important is it that he give a positive outlook? >> well, i think that mr. bernanke will really echo the conclusion that we saw last week. i think he'll be cautiously upbeat about the prospects of the u.s. economy going forward, particularly for 2010. that's what we saw in the fed economic forecast that came out

in the minutes last week. so i think he'll be cautiously upbeat. i think that effectively we're through the worst of the declines. however, demand, whether it's retail sales, domestic demand that we look at, do suggest we're just moving sideways. i think we have to be very, very careful in assuming a sustainable above trend voefr around the corner. nevertheless, we'll also be looking for indications of so-called exit strategies. i can't see them rising interest rates within the next twe12 mon. there's way too much in the way of consumer deleveraging going on. there are still problems left with the banking sector, particularly exposure to commercial real estate. we're not out of the woods

completely. >> talking about forecast, the german ministry of finance saying they're indicating the banks of the economy is becoming out. the second quarter gdp may actually be better than many expect. >> it could be, but only because i think of the inventory cycle. we're seeing this after the very sharp drawdown in adventurinven that we saw from last year. i think in the euro zone, unemployment is still rising, consumer confidence is stabilizing. but wage growth is not really supportive. so i'm a little bit cautious on of that. i think that the markets are hoping we've seen the low point independent u.s. and european economies and we can move forward from all of this. in the absence of any great stimulus policy, it will be

difficult. any consumer spending will be fairly neutral. >> have a good week. thanks for joining us. the chief economist at the ecu group. >> southeast asian foreign ministers met over the weekend in a thai resort. the mood was far from relaxed as the region frooelz friday's bombings in indonesia that left nine people dead and 50 injured. let's speak with p.e.c.'s adviser. do you think this is going to dominate at the meeting? >> i think so. after four years, everything was quiet. now they have to look into this again. i think the lackadaisical attitude after a certain period has to be overcome. >> what do you expect in terms

of a statement they will release in light of what happened in jakarta? >> everybody has to be on the alert that this is still a problem to be faced for the region. >> how do you think they could fight this program as a body? >> this cooperation has been ongoing. there must be an intensity of cooperation again to prevent this further type of destruction to happen in asian countries. >> it's bertha coombs in the united states. we used to talk about decoupling, that asia would be fine even in the western economies faltered. there are signs -- or are you seeing signs that the asian economies are recovering? does it go beyond china? >> well, i think so. this is particularly true with china.

indonesia has been quite -- a medium recovery has happened. i think the decoupling is impossible. again, asia has shown that it is going to move on quicker than the rest of the world. that is a plus for the world as well. >> it's ross here in london. what's the biggest risk right now that we're facing? is it still the sort of threat of protectionism and trying to get a coordinated response? >> well, that is very critical definitely. and i think this apex of this meeting is a very important effort of the region, particularly of the asia-pacific region to be able to withstand this. although there have been some signals, some policies and actions being taken in this

respect, but in general nobody is really recognizing that we are going into an inward-looking process again. so there are i think hopefully in the near future, this apex effort will overcome the trend of the gain going back actually to some protectionism. >> when it comes to asean, do you think the body can stay relevant given china's growing economic clout? the focus seems to be on china. >> it's been ongoing for the last few years. so asean, they're in much deeper integration. that's the only way. the economic community idea is one answer, and a very valiant answer to that effort. then we have to be serious about it. 2015 is the goal.

we have to make sure that the governments are living up to that. support from the business sector has to be much more forthcoming. >> what sort of concrete steps are you taking to make sure you stay relevant? >> definitely if we have an economy, which is becoming a production base on its own right of 550 million people, 1.2 trillion gdp, that is that base to move on. we have to make sure we are doing this all right and not being dawdling that's being done. >> thank you very much. have a safe tret. this was cot-chair of the pacific economic council. we'll continue talking about the economic forum and indonesia, when we speak to the

country's trade minister, mari pangestu in the next hour. you don't want to miss that. let's go to mumbai and talk to iseesha. . >> another firm start to the week. we haven't seen those sorts of gains since may this year. 2.5% added to that gain, almost 10% last week. a good bump up of almost 350 points that you are witnessing. we saw the technology giant come out with its numbers on friday evening. they are reacting to those numbers. they have indeed told cnbc they are cautious about price cuts. they say the telecom remains a worry for them. but they are confident of sustaining absolute levels. the market has given a reading

to that stock, to the entire technology basket. they come out with its numbers soaring made that trade. they were holding up by almost 1 15-ought percent. the supreme court today adjourned the case. there was supposed to be a hearing on the gas matter. the next hearing will be on september 1st. the role of the government in the third parties will be decided after the next hearing. the last time i checked, arnada was under pressure. >> thank you for that. elsewhere, australia's trade minister said his country wants more details on the detained employees of rio tinto. simon green said the case if

handled properly would not hurt economic relations between the two countries. on a side note over a future trade agreement said talks are not progressing as swiftly as the country would like. south korea, samsung electronics is ramping up green efforts. the company plans to pump $4.3 billion in its green r&d facilities. this is part of the ecomanagement plan and ensure all of its products at eco ecofriendly by 2013 at 690,000. >> porsche may be accepting more than $11 billion from volkswagen, according to various media reports from germany. confirmation could come at a board meeting on thursday.

meanwhile, the ceo of porsche is fighting to convince shareholders to accept the deal. if the deal is accepted, it's likely the germany ceo will be relieved from power. he is reportedly negotiating a sef ranlg package that would dwarf any package in europe. wv stock down 8%. glaxo smith kin is negotiating a vaccine with the swine flu. they are working frantically to meet demand. the h1n1 virus is spreading around the globe. 429 people have died from the virus globally. this comes as british

airways told its check-in staff to tell people to look out for passengers showing signs of the illness. >> microsoft expected to report the first annual sales dip in its history as a publicly traded company this week. investors were looking for a bullish outlook from the company to help try to maintain that momentum that we saw. shares pushed up 63% since march. investors will look for comments on just how windows 7 is doing. also on a potential deal, yes, we keep hearing about it, about yahoo! and microsoft doing a search tie-up. that's like the never-ending soap opera. aol's chief executive is urging investors to hold on to the company's shares until 2011. aol could be spun off again from time warner later this year. this after a 100-day review of the country. tim armstrong is saying stock

hoerlds should cash in on what he expects to be a resurgence in online advertising. the internet company is also planning to launch more localized websites to help increase revenue over the next few years. the majority much u.s. banks that receive bailout money from the government have reportedly used that money to increase lending. a report connected by the special inspector general for the t.a.r.p. program shows 83% of the 360 recipients surveyed say they wrote new loans to customers. 43% say they used the money to bolster their balance sheets. 31% used it to make investments. christine? >> bertha, for news, video, blogs, you can find them all at cnbc.com. still ahead on "worldwide exchange," we'll be speaking to richard cookson from hsbc, about whether a sustainable rally has arrived. get your e-mails in now for that

discussion and we'll forward your questions. worldwide@cnbc.com. >> the latest on the currency market. the yen is weaker against the dollar. and the dollar is weaker against the pound and the euro.

okay. the beginning of the week, we

turn our attention to the currency markets. guess what? stock markets are firmer. the yen is weak across the board against the dollar. and the dollar is weak against the euro. dollar around 1.65. you'ro-sterling pretty steady at 86. alex edwards, thanks for joining us. everything is focused on the equity market. it seems to be driving everything. euro and the pound are stronger. the yen is weaker. is this another weak where if earnings are good we'll continue to see those trades put on. >> i think exactly that. the ftse finished higher. the dow finished higher as well. that's really on the back of positive corporate results from the states. goldman sachs, well above expectations. ibm, ge, weren't as good as

america forecas expected. >> investors want to see the world with the cup half full, not half empty. >> i think you're exactly right. the markets need to be careful about that. fundamentals in the u.k. aren't great at the moment either. really what is driving markets is just positive risk sentiment. that's based on equities. i think that relationship will continue throughout the week as well. data is a bit lacking this week. we have the mpc minutes tomorrow, which will be very important. >> qe. >> markets listening to any sign that quantitative easing will continue. i think that will have an impact on sterling. more so, more corporate results. >> alex, it's bertha. german officials are saying they

believe the downturn is over there and we're watching the euro rally a bit here. if the euro gets too strong, doesn't that quash any advancement and actually provide more incentive for more inflationary trades with the that are getting weak? >> that's right, yeah. it could -- importing inflation is something that they need to monitor carefully. the word is that they are in control. interest rates may need to come down in the euro zone. it's sitting at 1% currently. maybe towards u.k. levels, half a percent. maybe see the euro fall slightly against the u.s. dollar. but i am still bullish, euro against the u.s. dollar. and i think over the next two weeks, 1.45 becomes a strong

possibility. that correlation continues with equity markets at the moment. i sound a bit like a broken record. euro, sterling and another curren currency, especially the aussi dollar and kiwi dollar. >> this is christine. where do you see the japanese currency trading given where risk appetite is right now. >> i think dollar-yen will move higher over the next week or so. based on risk sentiment. i think these profit results will continue to be good as well over this week and beyond. and i think we may make a convincing break of 95. beyond there, there's a few stocks. we could go on towards 97. i think dollar-yen will be really sort of less volatile than other yen crosses.

for example, the big carriage rates. i think they will be very volatile. i think we'll see a big exaggeration against the high yielding currency. and sterling and euro as well. >> we'll have to leave it there. alex edwards, senior corporate dealer, u.k.forex. coming up next, we will speak with indonesia's trade minister about how the country will deal with the aftermath of the hotel bombings. you can catch that in 15 minutes. plus, it was exactly 40 years ago today that the world watched as neil armstrong became the first human to set foot on the moon. now all these years later, the crew of apollo 11 says the world should again set its sights to the kos mos.

this time to mars. the astronauts will make their case to president obama later today. companies on the planet speak one financial language. the language of exchanging. together, we're helping to shape the exchanging world. nyse euronext. powering the exchanging world.

indonesia's trade minister joins us live on set days after the jakarta bombing. >> germany calls an end to the

downturn insisting the gdp has stabilized in the second quarter. >> i'm bertha coombs. in the u.s., cit's boss signs off on a deal for rescue financing. if you're just joining us in the united states this morning, hello and welcome to the start of your global day with "worldwide exchange." we broadcast live from the u.s., asia and europe. in the u.s. this morning, the futures are pointing to slightly hiring opening, carrying on on some of the momentum we saw last week. we've got dow jones -- not sure if that is the correct fair value. at any rate, fair value looks to be up 1.94. dow futures up 28. they are well ahead of fair value. taking a look at the ten-year bund yield in germany. officials are calling an end to the downturn.

yields at this hour at 3.45%. here in the u.s., we'll have more treasury issuance. we'll see about $60 billion of 3-month and six-month treasury bonds. the yields have pushed up. we're now at 3.69%. after having dipped in recent days to below 3.30. ross, what's it looking like in europe this morning? >> if you're long on the market, you like what you see. the ftse 100 is up 30 points. pretty much near the session highs. trying to make it six straight days of gains in europe. this is where we stand. the ftse up over a percent at the moment. resources insurance media, oil and gas, health care, all sectors affected. he they're all up.

falling with wv and porsche. lots of talk of a merger. the equity market, yen is weaker against the dollar. euro-dollar, 1.44. sterling-dollar, we were below 1 .51. >> if you look at stacks rising to the highest levels since the collapse of lehman brothers. japan and indonesia missing out on the rally. the kospi up 2.7%. the shanghai market up. a fresh 13-month high. the australian market is up 1.2%. the gains are following through in the oil market.

$64.47 a barrel. brent is also up sharply as well. trading at $66.29. the barrel up 1.4%. ross? >> let's rye to wrap this up at the beginning of this new week. what does it mean for investors? joining is the ceo of saunders management. nice to see you on this side of the pond. >> thank you. >> i'm intrigued with what you think of where we're at. we had the first big earnings week last week. ibm and jpmorgan. they seemed to ignore the bad points of the bank of america report. are we in a situation where investors just want to focus on the positive? >> it appeared that way last week with all the major market averages up 7%. but really the bulk of the earnings releases are coming this coming week. most of the do you haw componen

so on. we don't expect the news to be as rosy from goldman and jpmorgan. >> if we focus on the positives, it won't matter, will it? apple, caterpillar, coca-cola, you look at coke, mcdonald's, microsoft, they're fairly stable numbers, aren't they? >> most likely stable. but everything is worse than last year. we're in the less bad mode. it's less bad than we expected. however, trading has been light. it's summer. a lot of traders are away. so we really expect things to be either flat or somewhat trending down. what we believe is a secular bear market. >> emily, if your notes you said you think this is a balance sheet recession versus a business cycle recession. we'll hear from ben bernanke the next couple of days. he's likely to say this recession is probably drawing to a close.

do you think he's just being a cheerleader here? >> well, heap has to be. actually, this recession is in its 20th month. a typical business cycle recession is about ten months. now the longest recession, as we know, was 43 months back in the 1930s after the great depression. so this is really structurally different. in this recession, unemployment is a leading indicator, not a lagging indicator. unemployment is continuing to go up. defaults on foreclosures of commercial real estate is due to go up quite a bit next year in the united states when loans are maturing. we've already seen what's going on with residential real estate. ben bernanke has to be a cheerleader. there's a lot of pressure on him to discuss the exit plan so that the current stance of the fed doesn't get too inflationary.

really, as prior guests have mentioned, most likely the fed will continue with zero to low interest rate stands for at least another year. sgl >> emily, this is christine. you said you're long-term bullish on china. what gets you excited about the country? >> besides the 1.3 billion population and a rising middle class, in a perverse way, because it's a controlled economy, the government has done a much better job with their stimulus than the u.s. has. the u.s., $787 billion stimulus has been slow to trickle out to the common populous, whereas china's stimulus had an impact almost immediately. because china controls the banks, they're doing a lot more lending. whether the lending is warranted or not to good credit quality, it's hard to gauge from where we sit. in the u.s., lending has come to a virtual stall, not a complete

stall. because of the economy aspects and the rising consumerism in china, we feel china is moving from an exporting economy to a rising consumer economy. >> all right. sounds exciting. emily, thank you very much for that. emily sanders, ceo of sanders management. still to come on the show, one very important guest. the latest details on india's deadly bomb television. stay with us here on "worldwide exchange." ííííííííííí

welcome back to "worldwide exchange." ipd in thesian police confirmed over the weekend that the attacks on two luxuriy hotels in jakarta on friday mirror previous bombings by the militantjemaah islamiyah group. joining us now is trade minister mari pangestu. are you confident that the economy is going to come out of this relatively unscathed? >> we don't know the full effect because we haven't had a full working day since friday. but we are relatively confident there would be a negative impact

on the economy given that the fundamentals of the economy are strong. even though the stock market and the rupe were impacted on friday. we expect when the markets open tomorrow, things will probably go back to normal. >> there's been a lot of negative publicity. are you worried about how indonesia is perceived by foreign investors? >> i expect foreign investors take a more longer-term view and will review the fundamentals of the indonesian economy, which remains very sound. we're been very resilient with the current economic crisis. we have growth in the first quarter, 3.1%, one of the highest in the world by any account. we expect to grow 4.5% this year. inflation is under control and export projections are looking better, even though it's going

to be contraction. i say beginning of the year. i was expecting a much larger contraction. we've seen becoming out and coming out with positive month on month growth. projecting at minus 15% right now. what's important is that there is continuation of the president. he has just won a landslide victory. the economic reform agenda will be continuing. >> innocence, when these things happen, it gives a little bit of caution to foreign visitors. can you compare this to bali a few years and how this affected tourism? what steps are you looking to take in indonesia to convince

business travelers it is safe to go there? >> i think the fairer comparison is probably not bali. because bali was a much bigger casualty. it's more comparable to what happened in 2005, which was a similar size and also located in jakarta. i think if you look at the market rebounding, it's almost within a few days, the market went back to normal. but in terms of travel and tourism, according to the tourism people, the incident in 2005, it took about three or four months before travel resumed normal. in the case of the bali bombing, it took a much longer recovery. i think it was almost two years before it recovered. also, you have to see i think investors and travelers will see it in the wider context of the

whole worldwide situation, which has changed i believe since the first bali bombing in 2000. what is important also is that the indonesian government has the mechanism to respond on the security side. we will of course be increasing the security alert as well as the response to ensure that the perpetrators will be caught as soon as possible. >> what sort of progress have you made in this fight against terrorist groups in indonesia? what are you doing to reassure foreign investors it's safe for them to do business there? >> basically our record for the last four years. we've had great stability in terms of the security front. and much more wider call by the larger community in indonesia to also help with watching out for these terrorist groups. and obviously a much better

coordinatation in the intelligence services and so forth. since it's that small a security front, i'm confident that our government will, with the cooperation of obviously other countries, to really, really be on top of the issue. >> minister, good morning. this is emily sanders in london. i have's question for you about the demographics in indonesia. it's toknown that international indonesia has one of the youngest populations in the world. how does that affect your economy? and given barack obama's early upbringing in indonesia, has an invitation to visit been extended to him? >> on the first question, i think about almost 50% of our population is below 29 years old. that bodes well, both as consumer market as well as the potential for young productive,

better educated labor force. that's definitely what we're feeling now. a domestic source of growth for indonesia has been very high, even during this global slowdown. it's been 5.8% in the first quarter. we still see continued robust growth from domestic sources. in terms of a potential visit by president barack obama, it's been discussed, but nothing has been confirmed. >> hopefully that will be something that will come up sooner rather than later. >> that's right. >> thank you very much for being on the show. safe travels. >> mafs mari pangestu, indonesia minister of trade. catch the interview on cnbc.com. here in the u.s., small to mid-size business lender, cit

reached a last-minute $3 million rescue deal with a group of bondholders. details of the plan are expected to be announced before the markets open in the u.s. later today. the group includes pimco and other cit holders. it's expected to provide the financing with the two and a half year terms. keeping the country as a chapter 11 bankruptcy. >> the finance ministers insisting the gdp has stabilized in the second quarter. the sharpest annual decline since 1968, according to the federal statistics office. >> foreign investment capital cit is buying citic. the size of the investment is

around $200 billion hong kong dollars. a formal announcement is likely to be made as as soon as as this week. citic is opened by citic international holdings. are better than expected earnings bring about a sustainable rally? stay tuned. >> reports that porsche may have accepted a buyout offer from its rival volkswagen. welcome to progressive.com. you must be looking for motorcycle insurance. you're good. thanks. so is our bike insurance. all the coverage you need at a great price. hold on, cowboy. cool. i'm not done -- for less than a dollar a month, you also get 24/7 roadside assistance. right on. yeah, vroom-vroom! sounds like you ran a 500. more like a 900 v-twin. excuse me.

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a simpler way to ship. call or go online now to get started. let's see where we are on the u.s. glbl equities. we'll kick off with sales in frankfurt and the speculation over the deal with porsche and vw. what do we know for a fact. >> not an awful lot beyond the folks that the founders of the families of the companies are at each other's throats. he is for the volkswagen/porsche takeover option. there is the porsche clan with

wolfgang at the head of it that don't have the notion anymore that volkswagen will take over porsche. wolfgang porsche is the one who has said they've been firing against from all rounds for a long time and wants to get rid of him. this is the option that we have. in the mix is cutter that wanted to take over porsche. we hear they're sitting back to see how this comes out. what we will hopefully get is more details on d-day on the 23rd, on thursday, when both supervisory boards meet. but i wouldn't hold my breath. we might be as unclear as now. >> we are seeing a really strong session in the u.k. and the rest of europe. the new week is starting off on

a similar footing. 1.5% higher for the fse 100. lloyd banking group is proving particularly strong, well ahead of their closest rivals. there's been a report in the sunday times over the weekend suggesting that lloyds could announce a first half prime. investors seem to be clawing back value. watch out for that earnings statement. we have basic resources stocks pretty strong today. french provident resolution forging ahead today on the frirchb of the run-up between the meeting of the companies. stephane, how is it looking in paris? >> very positive in paris. again, a gain of more than 7%

last week. 1.7% on the cac. this morning, the communication stock to buy the communication company from kuwait, has a public of financial discipline, suggesting the price was too high for the company. trading higher, air france, they announced before the weekend it's not anticipating any liquidity problem at the beginning of the next year, denying press report air france still has 4.5 billion euros in liquidity. also trading higher, the wine and spirit company, bolstered on friday after the session, a 9% increase of its revenue for the last year. expecting a 10% rise in net profit. that's positive news.

let's have a look at the asian market. >> here in asia, markets rising for the fifth straight session. highest level since the lehman brothers collapse. japan and indonesia closed for public holiday. in south korea, optimism about earnings. the kospi rose 2.7%. in kong hong, hsbc short-listed four to five investment banks to handle its $3 billion ipo. and the broader market in hong kong closed up 3.7%. also, a ten-month high. shining high stocks ended at a fresh 13-month high, led by metal and coal shares. in australia, mining stocks led a charge. up 1.3%. let me send it over to you, bertha. >> thanks, christine.

this is the big week for earnings here in the u.s. we've got six dow components on tap, at least and plenty in the s&p 500. we'll get lots from big tecktitans. microsoft, yahoo! and apple. a number of companies reporting second quarter results include coca-cola, pfizer, foot, caterpillar and ford. as far as economic data, it's light on the calendar, but key data on tap. today we'll get a reading on economic indicators. due out at 10:00 a.m. new york time. later this week, we'll get existing home sales for june, which are expected to have risen about 30,000 from last month. ben bernanke is the big headline. he's going to be heading to capitol hill tomorrow for a

semi-annual monetary meeting. that's it it your global stock watch. christine? >> that will be very important. coming up next on "worldwide exchange," this earning season has seen the good, the bad and the ugly. verch investors seem to be focused solely on the good. stay tuned for the strategy panel after the break. welcome to the now network. currently, thousands of people are enjoying the new palm pre with its revolutionary web os. they're running multiple live applications at the same time. - ( thunder and rain ) - 3 million are using the simply everything plan. each is saving $1200 - over an at&t iphone plan. - ( cash register dings ) together that's over $3 billion. - enough to open a dunkin' donuts in space. - -lkie-talkie sounds ) from america's most dependable 3g network. bringing you the first and only wireless 4g network. get the palm pre from sprint. only on the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com.

it is half past the hour. here are the top business stories from around the world. in the u.s., cit's board signs off on a deal to receive $3 billion in rescue financing. >> porsche gearing up to accept a takeover from vw. >> in asia, markets rollied to the highest since last year led by financial and technology stocks. welcome to the start of your global day. if you're just joining us, this is "worldwide exchange."

here in the u.s., the futures have been pointing to modestly higher start. the dow futures have been up for the most part 28 or so. we've climbed quite a bit here. right now we are up about 55 points ahead of fair value on the dow. nasdaq futures are up almost seven. s&p 500 futures are up just about six. we've got a handful of dow components on tap. a very big week for earnings. mcdonald's, american express and pfizer among the highlights, boeing as well. looking at the currency market or rather looking at bonds. that's where we're going next. the ten-year yield is up to 3.69%. we're going to have more issuance of debt. it is short term. we've got $60 billion worth of three-month and six of month treasuries. ben bernanke will be on the hill. it's light on economic data, ross. nonetheless, lots for people to focus on. we're getting good data out of europe. >> yes.

well, the economics ministry, ministry of finance in germany is suggesting that we'll be out of the woods fairly soon. as stock markets here, after five days of gains last week are up again. the ftse 100 near the session high. nearly all sectors are firm. resource sectors, financials doing particularly well this morning in europe. only autos are down. stocks are firmer. that means the yen is walker against the dollar. the euro-dollar over 1.42. back over 1.55 on sterling. christine? >> in asia, nice gains across the board. highest level since the lehman brothers collapse. that was ten months ago. japan and indonesia closed for public hollywoiday. kospi up 2.7%. the hang seng, a ten-month high.

the bombay index rising. similar gains are seen across in the oil market as well. nymex live crude putting on gains of more than 3%. $63.50 a barrel. brent is trading at $66.33 barrel, up 95 cents. bertha, over to you. >> thanks, christine. joining us for market strategy is richard cookson, global head of asset allocation at hsbc. still with us this hour is our guest host, emily sanders. she's the ceo of sanders financial management. she's joining us in london. richard, good morning to you. we'd like to start with you. you know, 40 years ago today, we put a couple of guys on the mon. what's it going to take to launch the markets out of their trading range? >> trading volumes are thin,

even by the standards of summer months. it's been so damnably hard. we've got 143 companies from the s&p announcing this week. then markets will go higher. on the other hand, they could come in worse than expected and really what people are starting to look at is q3, q4 and next year. the big question is not whether you get a blip of profits, better than expected. the question is if growth is persistently lower, what are you going to have for equity multiples? >> even though they're better than expected, that's par for the course. i can't remember a quarter we didn't give 65% beating on the bottom line, because they can manage their costs. >> actually, compared with the start of the year, they're

massively down compared with expectations. we did have q3 results. the fact they're better than the expected, doesn't change the fact they're up from the year. >> i agree with what richard is saying. at this point in the trend line, even so we're in a secular bear market, the market could go either or way, town or up. on an adjusted inflation basis, the market started in 2000, because the asset bubble of 2007 for credit and real estate on inflation adjusted basis really isn't higher than it was in 2000. on the trend line, we could go either way. we're very cautious at this moment. there has been very light volume. there doesn't seem to be a lot of conviction on the up side. >> what would it take to change your mind about the bare case

scenario? what would it take to say i've changed my mind in the investment strategy? >> there are so many changes underfoot governmentally that we just don't see an underlying up trend. the unemployment rate is approaching 10%. foreclosures are still increasing. the banks really aren't on stable footing other than the ones that have given back the t.a.r.p. and the smaller community banks are in more trouble. in our view, there's just very bad economic news to come. and the markets have gone overboard on the up side since march 6th rally. we're not really expecting any great news in the near future. >> richard, i don't know if you broadly agree with that. that's difficult for an asset allocation. everything seems to be highly correlated. whether you're in commodities or

currency. the bond market people say too loaded. what do you do? >> i agree with what your host is saying. it does team to me as well one needs to be careful of results given what's happened with accounting how much one should make of stellar results given the companies so far. it seems to be moot. from my position, that just means i buy the cheaper assets. i've made no bones about it for the last 12 months. i've been absolutely hammering credit versus equity. and it's worked very, very well over the last 12 months. i'm not doing double o, single and lower. the model i run has outperformed by 8%. underweight equities and lower grade credit knocked the lights

out. >> at what point do you start positioning yourself for any up turn in the markets? >> i would want to see spreads a lot lower than they are. actually, we still have a negative premium over credit. so from my point of view, i'll start to look at equities seriously. developed equities. i'm pretty overweight in emerging equities. i would want to see credits a lot lower than they are at the moment. sglemly, in the last half hour, you said that unemployment is the leading economic indicator. are you seeing that as the tail that wags the dog? once we get to 10%, that will set a lot of people back? >> correct, bertha. as a matter of fact, the underemployment index or factor is at 18.2%. there are many people that are being forced to work part time

here in europe as well as in the u.s. the average workweek in the u.s. is now 33 hours. there are also many people who have been let go by big corporations that are receiving severance pay that cannot yet apply for unemployment until their severance pay runs out. so there is a whole other strata of unemployed not being captured by the statistics. unemployed people don't borrow on consumers debt or spend money on luxury. they do stayications rather than vacations. until some of that has cleared out of the system and also until housing prices bottom, which we don't anticipate will be until 2011 or 2012, there is not a lot of impetus to set the market higher. money is very slow. even with the low interest rates present, money really isn't circulating very much.

>> it's just not moving? >> no. >> emily, thanks very much. emily is going to stay with us. richard, we'll bid adieu to you. we'll have to do it again. coming up, it was exactly 40 years ago today that the world watched as neil armstrong became the first human being to set foot on the moon. all these years later, the crew of apollo 11 say the moon is okay. let's not go there. we really need to go to mars. that's what they're saying. in fact, they don't like to talk about it at all. interviewed buzz aldrin, he wanted to talk about the future. that's what they will talk to president obama later today.

cit is expected to be

provided with a rescue plan. >> porsche may have already expected $11 billion from volkswagen. despite reports from spokesmen who say they know of no such agreement. major shareholders are expected to another bid from the government of qatar for $10 billion. if they accept that agreement, it's likely the ceo of porsche would be removed from power. shares of both companies are down pretty heavily in germany at the temoment. >> indonesian police confirmed that twin attacks in two luxury hotels mirrored previous attacks from the militant group jemaah islamiyah. under the shadow of the

bombings, asian foreign ministers who met on thursday ahead of the asean's regional forum, the continent's biggest security dialogue. >> final thoughts from emily sanders. talking about richard saying the one place where you have been making money. corporate credit, not necessarily the aaa stuff as well. how long can you continue to run that strategy? >> you can continue to run the strategy as long as the spreads are good. and if there is a sector that you can say we're in love where right now, it is corporate bonds and preferred stocks. nonfinancials. we're staying away from any kind of financial credit. however, there's really good rates. they're pretty secure. with the type of returns that we're seeing on the sort of short intermediate end, we feel it's a more stable return for our clients than equities at the

moment. >> having said that, are there stocks at the moment that do offer a sort of secure dividend from an income stream as well? >> absolutely. with every stock that we buy for the dividends, we deconstruct the balance sheet and look at debt liabilities and make sure they can sustain the dividend for at least another year. many of the do you have components have good dividends. i'm not counting financials at the moment. we're definitely gravitating towards those. there are even mr. mid-cap stocks that have dividends around 3% that look attractive. >> emily, enjoy your stay in the u.k. >> thank you. >> okay. >> still to come, this is a look at how the u.s. futures are trading at this hour. we'll take it here, ross. take a look. we've dot dow futures 55 points of fair value. the nasdaq up six.

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we're coming to the last part of cnbc's "worldwide exchange." when we're done, squawk box comes on. did you watch yesterday, tom watson at the open. >> i got to see the last four playoff holes. >> so disappointed for him. >> so was i. the feeling that i had for him, seeing stewart sink with his boys and his wife and his reaction and hearing guys that have -- you know, that curtis and paul both had coached or -- when he was on the ryder cup. he's a real gentleman. he was the best player not to have won a major. birdied the last two times he played it. watson got up against the

fringe. you're afraid you're going to leave it short. it was tough, ross. it was really tough. anyway, the world is on the crossroads really, especially in this country of politics and wall street. but we're going to be squarely there today, because our get guess host is republican congressman paul ryan, a ranking member of the budget committee and a senior member of the ways and means committee. we'll cover everything that government is thinking about doing. from fixing the economy to reforming health care to the regulation revolution we're seeing in the financial industry. we would have to go on and on. we're trying to do a lot. that's one of the criticisms you had are. we have former governor howard dean and democratic congressman robert andrews to spice up the health care debate. also, the nationsbanking giants checking in with quarterly results. how are they performingperformi?

we'll hand out grades. and it's july 20th. that means for us the summer is almost over. >> it never got warm. >> i'm not willing -- it's mid-summer, july 4th a couple of weeks ago. august is coming. retailers are bracing for the worst, as we are. find out how much consumers plan to cut back before that first day of school. we have another giant week for earnings central. "squawk box" will start at the top of the hour. you people love him because he's won five. lee westwood, you tried to feel for him too. tried to make the birdie and three-putted and didn't make the playoffs. >> i know, that was tough. joe, we're going to leave it there. i'll leave you with my private thoughts about the golf as well. that's what's coming up. >> all right. we've still got plenty on this show. let's look at the u.s. trading

day with ed lice, a partner of atlantic equities. i'm not going to talk golf with you. but it seems like this market is going to bogey. this week how important are earnings such. >> essentially, last market the s&p was up 7%, having been down 7% in the previous five weeks. it did seem earnings news was a catalyst for the week. i think there are a hundred companies reporting. apple tomorrow night, microsoft, yahoo! ebay. a lot of tech companies still coming out. if they can continue the trend we saw last week, that could be positive for the markets in the short term. >> tech has really led this recovery in some respects. financials have been big movers. tech and the nasdaq have been stead gainers and are up for the year. how much more do you expect to see there, and are you putting

more money into tech? >> in terms of our attitude towards tech, we are relatively constructive towards some of the more defensive names in technology. we're not yet convinced some of the uptick in software companies. it's simple in the moment at the market. if you're beating earnings expectations, the stocks will be pushing higher. with financials, it's more difficult. there is more concern around loan growth. the numbers from goldman sachs were excellent. we think there could be an up side in other parts of the market as better earnings come through and people rerate models going through 2010 and beyond. >> bank of america, you talked about the writing of the loan provisions as well. what do you take -- everybody said the banks are going to be so important. what have you taken weave from the bank earnings? >> i think we've taken away that

the investment banking business has held up. it's held up through a lot of trading activity. the other partners is the money side of the bank. the loan growth deteriorated down 4% and down also at bank much america. the problem with bank of america is the opportunity of valuation. we think if you're putting money into the banks, bank of america would be the go-to name. they don't have the investment bank that jpmorgan and some of the others. >> what are you hoping to hear from ben bernanke? >> to be honest, it's going to be a relatively quiet calendar in terms of economic news. i would be very surprised if bernanke doesn't keep to the mantra before. sort of saying that slowly and steadily things are improving.

we're seeing that in the economic data, where things seem to be not getting better but not getting worse. we're seeing the vix move down. that's positive for equity markets in the long term. >> thanks so much for joining us, ed lewis. one quick check of the futures before we leave you here. dow futures pointing to a relatively strong point. that's our small step for mankind on this 40th anniversary of the lunar landing. i'm bertha coombs in the u.s. >> the closest i'm getting to mars is a chocolate bar. i'm ross westgate in europe. >> i'm christine tan in asia. thanks for watching "worldwide exchange." my mother made the best toffee in the world. it's delicious.

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good morning. rescued, at least for now. cit's group board securing $3 billion in emergency financing. and no dog day as the summer here. a big quarter earnings report of nearly 30%. and 40 % of the dow 30. that's 12. approximate am i right or am i right? u.s. equities coming often the biggest earnings since march as "squawk box" begins right now. yes, it does. good morning, everybody. welcome to "squawk box" on cnbc.

i'm becky quick, along with jwih joe kern and carl quintanilla. we are joined this morning by congressman paul ryan. you didn't know what you were in for, mang man. but you are here for three hours. we've got a ton of things to talk to you about. just about every story has a washington angle as well. >> that's the new financial center of the world. you guys ought to film us from down there. >> you're right. we should be based there. we cover america's business in washington now, unfortunately. >> the congressman will be with us for three hours. we'll hope you'll weigh in on every single story. the top story, cnbc confirmed the cit group's board is reaching an agreement with bond holders. this happened last night. a deal for a $3 billion in

rescue financing coming through. we have learned that the liquidity facility carries two and a half years for a term. and parts available immediately. the fund should help cit avoid bankruptcy for the short term. there are questionses about the long-term ramifications. an official announcement is expected before the markets open. >> you remember when the bankruptcy didn't come, we said things are a little bit different now. maybe there are some smart vultures there that see something, enough value for the private sector to do the bailout instead of the government. >> i like how the journal put it. there is enough private money to plaster over the cracks in the financial system. >> which wasn't there five months ago. >> how much better do we feel about it when it goes this way? i'm glad it's not gone for small businesses. i thought it was cool that maybe the administration stepped away, because so many republicans own small