and i'm bertha coombs. in the u.s., investors appear to be catching their breath before another round of earnings and key economic data today, futures ending lower. global equities, while edging up at the moment, the ftse cnbc global 300 just down

three points bouncing off the low. that's because an hour into the tray in europe, we have positive across the board. we didn't make it a new record of 12 consecutive days yesterday. we dipped down before the end of the session. but it's all about earnings. chemicals are heading higher. banks, utilities and insurance all are fairly firm at the moment, deutsche bank with numbers out of time ler a little later. on the currency markets, the dollar had a respite during the asian session from sort of being sold off, and that's sort of where we stand at the moment. euro/dollar, 1..4160 at the moment. sterling/dollar, we were over 1765 and we're bloef 1 of 64 at the moment. dollar/yen around that 94 mark, christine. >> here in asia, people are

waiting for more corporate earnings before they jump back into the market. china, this particular market is tanking 5%. but bear in mind, this shanghai composite has been up about 70% for the year, so still a lot more room to go. we are watching for an ipo with this particular stock, china dade construction bank. the nikkei holding on to ground, 0.3%. this particular market bucked the nine-day winning streak yesterday. the kospi is down 0.1%. the hang seng is down 2.4%, dragging down the hang seng because of chinese stocks there and the bombay sensitive is down 1.8%. in terms of crude oil, seems to be holding steady. nymex light sweet crude, $65.80. brent is pulling back, as well. brent right now is trading at $68.64 a barrel. we are waiting for the weekly

u.s. inventory report due out at 8:30 u.s. time. bertha, over to you. >> thanks, christine. i like that tapping effect to get the boards to come up more quickly. here in the u.s., we had a mixed close yesterday. this morning, we are below fair value on all three of the major foorchs. the dow is off by 32 points or so below fair value. among the big earnings, wellpoint yesterday with indications that the senate finance committee may now be dropping the plan for government plan in health care. we saw health care stocks rise. we'll see if wellpoint can continue to that morning when it reports earnings. taking a look at bonds, the tep-year yield is at 3.43%.

yesterday at this time, it was at about 3.5%. and we're all watching u.s. treasuries. we saw the two-year treasury yesterday, that massive $42 billion offering, not quite as robust as some of the previous. today we've got a five-year note at 1:00 new york time, one of a slew of offerings this week. so those are being watched. we've got the ten-year yield at 3. 6/6%. that's down from about 3.7% or so yesterday. taking a look at gold, the dollar is getting a respite and gold is coming down just a bit, off about 2 right now at $935.20. christine. >> bertha, let's get more on china's state construction, the ipo, biggest so far this year, the stock surging as much as 90% in the market earlier. lei, tell us more.

>> we had a dramatic day and a big sell-off in china both which had been expected. so analysts say that is well ahead of fundamentals. the shanghai xotit had its worst day in eight months. the first day gains swung in a wide range from 48% to 98% finally ending up about 56% at 6.53 yuan. the ipo was hugely popular because its business is construction and property development. but it's valuation is very high. even know, it trades at about 80 times 2008 earnings. investors, in fact, used today the's ipo to sell off stocks that had gone up too high. in fact, property and mining stocks were the hardest hit and both of those indexes have almost tripled so far this year. what's next snup we have several ipos coming. but today's performance may warn

against excessive speculation as well as unrealistic expectations for the ipos first-day gains. christine. >> chang lee, thank you so much for joining us on the show. we have arora want sereno joining us and simon grose-hodge from lgt joining us. simon, let me start with you first. when you see levels like this, do you somehow think this is a healthy correct or do you somehow think, you know, people could see more in the day ahead? >> i would think the numbers could be bigger. it's serve not going to cause any panic. and we've seen that china has restarted these ipos, probably with the aim of sucking some excess liquidity out of the

market. they won't be too perturbed at all to see china come off the market. it's more in danger of overheating than it is of collapsing. so we see this as more of a consolidatio consolidation. we think sometime in the near future, though, it will be a point where you will cut back some risk and take some profit. we all know what happens to asset bubbles. no one should get too carried away. >> do you think this one-day sell off is going to make investors think too much about investing in the ipo market? >> if you look at the ipos, they're all trading now below their initial offering price. so it seems there's a lot of people in the short-term market trying to make a buck. i don't think you can read too much on how the ipo specifically is performing rather than the

rest of the market in general. we don't see the sell-off thing overly pronounced. >> it's bertha here in the u.s. you know, we had this big two-year auction yesterday and the foreign participation was not as robust as some would have liked. and we continue to have big options this week. is that something that fund managers are watching overseas, as well as here? >> yes, of course. because you know, the very sharp and the very huge issuance we have from the u.s. treasury is really an issue here because we know we will have a lot of supply not only this week, but also during the remaining of the year to finance the huge fg and finance program what has been sxlimted in the u.s. the gains that crowd of really return in risk appetite on the

market and investors going back to equities from the bond market, of course, to have a lot of issuance is something that we are looking at very carefully because that may mean that we could have an unwelcome rise in long-term yields this year which will prevent the economy from recovering as it has started to do a bit. >> i'll put this question to both of you, and i'll start to you with you, aurore, what do you think about risk appetite or are investors getting ahead of themselves? >> as far as i think, investors are ahead of the curve. we have had a lot of those green shoots happening in the u.s. economy from spring, but actually, not a lot of them have been able to bless some things

they appear to the market. so i think that really markets are thinking that the secretary derivative now in the u.s. economy that has turned positive is a signal for a strong and broadly based u.s. recovery. that's actually not my view. i think there is still strong negative force weighing on the u.s. economy which is namely the private sector deleveraging the rise in u.s. household savings rates. this will prevent growth from being high for long i think in the remaining of this around next. so i think, yes, markets have gotten a bit ahead of themselves. >> simon, what are your thoughts on that? >> yeah, i pretty much agree with that. if you look at the recent comments from the fed, they talk more about stabilization in the economy rather than emphasizing the recovery and the beige book that comes out will probably

show that again. the latest comments from yerlin talk about the recovery being painfully slow. and we think that the return than we can it is more than the previous part. if you look at the consumer sentiment numbers we just had, the consumer balance sheet has been damaged. we've got rising unemployment. the savings rate is going up. all of this and the fact that there will be considerably less consumer spending. that's always been what pulled the economy out of the recession in the past. that the why when we get back to growth wibt will be a rather anemic type of growth. >> and aurore, you talked about bond yields backing up here. are we going to revisit what we had at the end of june where everybody thought, hang on, yields are back up a little bit and that becomes an impediment

to stock market gaining because they think, well, the cost of money is going higher and that's going to cause this double dip? >> actually, this is difficult to have a clear assessment of that. of course, i think that the rise in yields are very unusually volatile first. i think this is important to keep in mind. since the beginning of the year. and i think the rise in yields we have seen since the beginning of the year is really the result of seeing first the return of growth and positive inflation expectation on the market, which is -- i think is from the ingredient of that rise and, of course, again, as i say, investors going back to more risky assets from the u.s. treasury market is causing those rates to rise. nevertheless, i think this is,

again, a cushion as far as the u.s. economy is concerned because we know the fed has been implemented just on the side of the easing part of its policy aiming at bringing down long-term rates and long-term mortgage rates in particular has failed somehow to bring us some results. and this is something which is a caution because as soon as the financing of the economy becomes more costly, this will be a huge negative the, sorry, to any sustainable rebound. >> on the other hand, we could just say look, the yield backing up is a sign that policy is working and people are taking more risk. how much more risk do you think investors will want to take from here? >> we consider there are quite a

few fund markets, particularly the developers that are underweight and they're being forced to come into the market now and start buying with their benchmarks. but those people that are buying up at levels near 1,000 in the s&p and 10,000 in the dow could welcome to regret it in the three to six-month time horizon. we don't think risk could push on too much more. when you look at the july data that's starting to come through, we're seeing that very much plateauing now and it looks like that rebound is pretty much topping out for the short-term and there seems to be a lot of people pricing in a continual improvement in these numbers and we don't think that that is actually going to happen and, therefore, the prices start looking a bit more expensive and with people still being a little wary of double dips or whatever, then you'll probably see more profit taking and people getting more conservative again.

>> simon, aurora, thank you very much. second quarter earnings were fairly solid. they had nebs way above what was forecast. we spoke to the ceo of s.a.p. about improving margins. >> we are well on our way. as i said earlier on, we are trying to make our business significantly leaner. we have taken out in the first quarter this year already half a billion euros of cost and i hope that we can begin to sustain that. >> japan's honda made an operating profit of $267 million, beating analyst estimates of a quarterly loss. that number is still 88% lower than what was earned the year

before. meantime, honda is upbeat about sales in the month ahead leaving it to raise its profit forecast for the year to march 2010. meanwhile, nissan report a loss, reporting a $122 million operating profit for the first quarter. bertha. >> profitable carmakers, who will have thought? microsoft and yahoo! have decided to take the next step on their on again/off-again relationship and move in together, or so reports say. we could hear an announcement as soon as today uniting the leaders. microsoft will be have to pay up front. the companies will share revenues from ad sales. yahoo! will handle sales using microsoft technology. google at this point controls about 65% of the u.s. search market.

yahoo! and microsoft combined have about 28%. in frankfurt at this hour, both stocks rose after hours. they are trading to the upside, microsoft and yahoo!. google is down 0.76%. you're going to want to hear what our jim goldman has to say about it. he was cautioning that waefb hearing for some time now that an announcement is imminent. check out anything else you're looking for on cnbc.com. still to come on the program, we'll continue to assess the threat of a growing market bubble. the flood of u.s. debt continues. we've got another $39 well auction of five-year notes. and reports suggest microsoft and yahoo! have agreed to an online search, an advertising partnership. is the search finally over? $$$

let's take a look at our equity markets and we'll start with becky in london. >> thanks, ross. now we are higher by 0.9%.

about 42 points to the good is where we currently stand, close to the day's highs. so we are gaining on the market today. let me run you through some of the big earnings stories we have out and some of the other headlines, as well. rexam, maker of drink, etcetera, are saying that they are going to raise 334 million pounds after expenses in a rights issue. it's been speculated for quite some time. the impact on the business from the downturn has been worse than expected. bg group reporting second profit down. we are seeing the stock trading lower. overall, though, managing to get a bit of positive sentiment from elsewhere. higher overall. patricia, how about in germany? >> the volumes are keeping up, as well, at the moment, trading up 1.46%.

and it is bayer outperforming. 4.3%, up a great set of numbers, a good outlook and a broker upgrade which is at the moment being celebrated by the market. deutsche is trying to recover from losses from yesterday. bmw and daimler, up about 2.5%. we expect revenues to have dropped by about 20%. kns and s.a.p. up about 1.7%. s.a.p. coming through with their own set of figures. the market is taking it positively that they raised their margin guidance. deutsche bores borse, down about 1.5%. there's a lot of momentum there, as well. over to warsaw now. >> thanks, patricia. here in warsaw, the blue chip 120 index is near its session highs. banks pushing ahead to this

gain, but we have some numbers from some of the larger publish corporates. the telecom operator, net profit ahead of analyst expectations, so positive news there. but apart the from that, a very negative outlook for the telecom market in 2009 and 2010 and the polish economy, no dividend and no buyback of shares which was expected by the market. so tpsa coming down by 1. 5% at the moment and it was earlier losing some 3%. and in the day ahead of this important monetary decision, the mpc is expected to leave the rates unchanged at 3.5%. the real interest rates are actually closer to zero since the cpi in june was 375%. it has enjoyed vary strong rally in july, gaining some 6%, 7%

against the euro and the dollar. that's it from warsaw. now let's go out to christine in singapore. >> blazej, thank you for that. asian markets closed mostly lower today. take a look at the japanese market, managing to buck the overall down trend hitting a seven-week high thanks to high tech shares. in the banking space, we had reports that somitumo trust has agreed to buy asset management. the nikkei 225 up 0.26%. china was the big loser today declining sharply on reports that the state-run banks are cutting their lending target for the second half of the year. the shanghai composite slumped by 5% ending at 3,266. china's biggest ipo, china state construction has moved up.

bbmg didn't help the overall market, the hang seng closing lower at 2.37%. 1,524 pp for the kospi. and that was your global stock watch. but before that, let's go to bertha. >> yeah. not done yet. let's take a look at what we're looking ahead at here in the u.s. the futures right now below fair value. today, the economic calendar shifts from housing and manufacturing to business conditions. june durable good orders are out at 8:30 a.m. new york time. aircraft and machinery is forecast to have fallen by 0.5%. at 2:00 p.m., we're going to get the fed beige book. that compiles data and economic business conditions from the fed's 12 districts. and new york fed president bill

dudley will speak about the factors for growth and inflation in new york at 8:30 a.m. new york time. janet yellen yesterday was talking about the fact that she thinks the recovery will be painfully slow. we'll see what he says. meantime, we're going to get numbers from time warner, conco phillips, wellpoint, medco health solutions and hotel change wyndham worldwide. also reporting this morning, iac interactive, general dynamics, sprint nextel and lazard, the investment firm. and that is your global stock watch. >> that is indeed our global stock watch. coming up next on "worldwide exchange," the u.s. and china vow to work together to lead the world out of recession. can the super powers rebalance their economy? >> and when will quantitative easing become an inflation

threat? we'll get some insight into whether the qe is working or not.

i'm christine tan. in asia, honda posted a first quarter profit surprising markets. >> and i'm ross westgate in

europe. surprises the market after slashing inventory in the first half. and i'm bertha coombs. investors appear to be catching their breath before another round of earnings and key economic data today. the futures are edging lower. >> we're just getting data out of the uk, getting mortgage lending and consumer lening, as well. june net consumer lending up 1.4 million versus may's 485. the consumer lending was forecast at 0.9. it seems to be weaker than expected. net mortgage lend iing oosh i'm sorry, mortgage approvals, that's ticked up slightly and the consumer credit, 71 million versus may's 153 million, consumer credit was forecast at up 300 million. they look an awful lot weaker than expectations.

leena is with us. >> good morning. >>. >> it doesn't look like we're getting any particular consumer quantitative easing. >> the jury is still out about quantitative easing as a tool to stimulate the recovery in the real economy. the volunteer reserves say the bank of england sup almost three times from a year ago and that has helped ease conditions somewhat for credit in the real economy. back seat as you notice, mortgage approvals are down 60% from a year ago even though they're modestly up on the month and then we have a situation where we still aren't seeing that additional liquidity graded and the financial system trickingeling down to consumers in the form of unsecured credit and businesses. >> net consumer lending the lowest since lending began. >> that's right. quantitative easing is widely

seen -- >> they're not printing money. >> printing money in the high street is widely associated with hyper inflation. it looks like quantitative easing is widely celebrated as a successful tool to fight deflation. but you're absolutely right. we don't have a situation where nominal demand could create credit. of course, we run the risk that if quantitative easing which clearly has been effective enough to create recovery in the real economy, it might just create risk of a dislodging inflation expectation to the upside. >> mortgage approvals they say have ticked up. we saw housing stats in the u.s. that they're less bad. have we stabilized the housing market? >> the credit crunch has been very much a source of supply. to the extent that we have seen

some credit conditions to the end of the freeze, then corporate activity is improving. you're rightly noted, indeed, housing starts have jumped in the u.s. from the manufacturing surveys and from earnings for companies like intel, we are seeing signs that the pace of destruction examine production in corporate capital is accelera accelerating. so yes, we're seeing improvements from the likes of a recession even here despite the late disappointing figures. >> just stable would be good. thanks for joining us. you're going to stick around and we're going to talk more about the u.s. in a few moments time. first, though, the ftse cnbc global 300 has bounced off the lows. we're just up now 1 point. european stock market res putting on more gains at the moment. the flts if it is 00 up 0.75%.

xetra dax up 174%. cac 40 up 1.25% and smi up 0.4%. the most important stocks seem to have beaten expectations, consensus expectations. on the currency market, the battering of the dollar, euro/dollar is below where we were yet, 1.4161. sterling/dollar, back loesser to 1.64. dollar/yen is around the 94 mark, christine. >> asian markets ended lower today, ross. china's construction bank surging as much as 90% before settling 56% higher. but you know what? the ipo surge did you get in toni expire the broader market. the shanghai composite is down on profit taking. pulling down the composite

lower. the hang seng is down 2.4%, as well, also on profit taking. the bombay sensitive 30 down 1.1% and the kospi is down 0.1%. the nikkei 225 seems to be bucking the overall trend, but this market bucked the streak yesterday. 2.3% lower. >> christine, the winning streak here in the u.s. is pretty mixed. we did see the nasdaq eek out a win yesterday, up by comparison to the fractional losses on the dow and the s&p this morning. all of the major futures are trading below fair value right now. we keep getting these kind of warnings where people are hesitant. we've got earnings still coming out. we are going to have conco phillips well point the insurers, kind of indicated that they may drop the government plan, the controversial part here in the u.s. in the health care reform debate. the big issue that people have

been watching have been those treasury auctions. we've got $200 billion worth yesterday, $42 billion of notes yesterday did not attract as much foreign investments as some would have liked to have seen. that gave it a marginal grade today. we've got another 39 billion of five-year notes out. the yields today on the ten-year at this hour is at 3.66%. so let's discuss what's going on with the economy globally and here in the u.s. specifically is what i want to know. lena comleva is the chief economist with us now. i know we're going to get the biej book today so we'll talk about economic conditions, but i kind of wish we were getting fed minutes. you've got charles plosser going out saying, we really have to start raising interest rates sooner rather than later. you've got janet yellen saying i'm not ready to give up those quantitative easing tools and i think the recovery will be weak.

ben bernanke trying to campaign for his job. it's a soap opera at the fed right now. >> that's right. there's so much uncertainty about the growth and inflation outlook. on the one hand, you have a situation where the fed is using quantitative easing as a financial stabilization tool. of course, that means that quantitative easing may have to stay in place for a lot longer than a recovery than the real economy would require which would inturn fuel expectations. so i understand plosser's argument here. yellen made a very important point last night and that is although there are sensitive signs of the economy exiting a recession, a recovery is likely to be very anemic because lenders aren't in a situation to create credit at the same rate as they did in early years. at the same point, inflation will remain below levels consistent with anything close to price stability for a number of years requiring unusually large stimulus for some time.

>> if the consumer is not going to lead the recovery, what does that mean? what is going to lead the recovery? do we need to start thinking about this economy in a different way? >> that's right. dweerg go through a huge whole economy balance sheet oo justment here. of course, the consumer cannot lead the recovery because we have this inventory overhanging the housing market, which will prevent a recovery in that consumer worth any time soon. we have a situation where companies will have to get accustom to a lower pace of leveraged growth. and that, of course, leaves the supply side of the economy the driving seat. the tentative signs of stabilization and the potential for a marginal, very modest recovery indeed in the third quarter of this year is very much driven off the back of signs that companies aredy stocking at the slower pace after the record increase in inventory liquidation that we

saw in the second half of this year. we have got some signs that the pace at which companies are forced to improve internal liquidity by destroying production capacity is slowing. so after the cataclysmic events that we've seen in the last year, after a period of just over a year which saved a decade of growth, then it's inevitable that at some point we will see modest increases. but we're not looking at a recovery that will look like anything like previous exits from recession. >> we're going to leave it on that note. thank you so much for joining us, lema comleva. >> here in asia, we've got honda, nissan, two of japan's biggest carmakers reporting better than expected earnings today. joining us now, fujio. good to have you with us. do you think the worst is over? >> definitely, i think so.

but you can see a clear differ enation of the runners. today, honda has revised up the full year in spite of changing their hypothesis. however, you can see that nissan is lagging behind. i think there are two buzz words in the japanese automotive manufacturers and one is, of course, asia and china. items on that, as you can see, very good growth in china has been seen from honda and nissan, as well. hybrid cars are doing extremely well in japan. you can see the upward revision on a lapmaker who provides parts on hybrid cars and there is a huge demand kicking in in this area continuously. >> and speaking of which, seijiro, we have toyota reporting next week. do you think it will outperform its peers? >> i think this inventory

adjustment phase is over and things are looking for signs of an uptick. of course, the growth is coming from asia z ask and china. there are some sustainable factors in japan. but again, the downward trend in u.s. and the u.s. are upward. so the companies we are recommending are companies like suzuki who have their main focal point in asia and india. and having the right cars, low grade entry type cars which are doing well in brics. >> it's bertha here in the u.s. we now have gm and chrysler out of bankruptcy. who would have thought it would happen that quickly. i would imagine they're going to be very, very aggressive. how is this going to change the landscape for the automakers in

the u.s.? >> actually, there were a lot of people that thought it would increase market share. however, considering the confusion that would be caused if it did, many of the analysts are hoping that they didn't. they're perpetuating their businesses. so basically, the most important thing in the united states right now, to see the financing come back. it's not necessarily the autos, but for the financing side to come back, then i think we'll be back on track. for example, honda has made et very clear today that they do not believe the current levels of vehicles in the united states will persist. so basically the situation is, it hasn't gone into the turmoil that we had basically been worrying about. but i do think that the stabilization, the financing is certainly key in the united states market. >> and seijiro, we just had bank

data here in the uk which shows no contracting in the financing. and i wonder what the boom was based on incredible credit deals in the past years. >> the fact of the matter is there's been a lot of subsidy on the u.s. financing side, which would put pressure into the japanese manufacturers there. they're lag mind in that sense. if you look at companies like toyota, their outstanding condition is better than many of the banks. and for that reason, they have ample power to fight back. but if you look at other manufacturers, for example, nissan, which came out with earnings today, they would be in trouble. unfortunately, of course, you know, we are seeing some of the comeback in japanese domestic market because of hybrids. the european market remains stagnant.

asian market res boosting. >> sagiro, always great talking with you. thank you so much for being with us. from talking about japanese automakers, let's talk about india, the market for a change. ayesha is joining us for the india business report. >> thanks for that, christine. had when china falls or collapses in the economy, the indian economy isn't far behind. the nifty was down, but has recover in the low point of the day and the damage is a fair bit. so it's below the 4,500 mark. 4,499.2 is where the market is at. the broader markets are now showing you a cut anywhere from 1% to 1.5%. what is happening with the asian

fears, you must point out arcelormittal came out with a disappointing set of numbers. to correlate that, all eyes and expectations are on that entire pocket. in any kaig case, the street is expecting a downtick. let's see, let's wait and watch as to what tata comes out with and a lot of nervousness on the entire metals environment. the gas sector gets murky after yesterday. the prime minister reacted to that situation. r & r and reliance industry puts those stocks in focus. with that, it's back to you.

>> ayesha, thank you very much for that. >> another story we're watching, nippon shares are down today. compared to a profit of $1.5 billion a year earlier. it would it widened its last forecast to september by 10 bers to 1.616 billion dollars. the world's second biggest steelmaker said it would not pay a first half dividend and warned of a revision for its full year guidance of zero profit. the world's largest public offering in a year did not disappoint. china state construction, which raiseded more than $7 billion skyrocketed as much as 90% in shanghai before ending up 56%. the strong ipo performance of china's biggest home builder and improving sentiment towards the

economy, but heightened concerns about a speculative stock market bubble. >> and shares in peugeot citron reported higher. they had far more inventory than forecast during the period and that helped generate $660 million in positive free cash flow. despite that, though, revenues fell by more than a half. >> arcelormittal has seen its earnings fall. the much watched ebda number amortization was $1.2 billion less than forecast. the company says it sees world steel demand down by around 10% this year, but there should be a equal recovery towards the end of 2009. a spokesman for

switzerland's justice minister says information provided by the u.s. on a possible bribery of a swiss official does not justify grounds for a concrete case. that's after an american client pled guilty to using bank accounts to hold money. executives paid a swiss government official $45,000 to help cover up the fraud. >> ross, bernard madoff says he's surprised his ponzi scheme was not discovered sooner. madoff gave his first interview tuesday to a pair of aur lawyers suing him on behalf of investors. reports say he told them, quote, there were several times i met with the s.e.c. and ithought, they got me. he says he believes security investigators have found all the money that could have been recovered. but reporters say some of those funds were paid out to feeder funds. >> dreamworks animation second

quarter profits fell, but still beat expectations. dreamworks expects third quarter results to be driven primarily by dvd sales of monster versus aliens which goes on sale in september. dreamworks shares rose to $29.50 after hours. christine. more news, videos, blogs, anything moving markets today, you know where place to find them apart from "worldwide exchange," cnbc.com. coming up, we're going to stress test the earnings season. but will the upward momentum continue? >> yeah and we'll check in with what's lamg on the currency markets. more after this.

on the currency markets today, we have seen the dollar having a bit of a reprieve from the appreciaty it's been under recently. dollar/yen, 94.66. euro/dollar, 1.4152. sterling/dollar is below 1.64. and the dollar/swiss franc,

1.0756. daragh maher is with us. are the correlations beginning to breakdown? >> yeah, a little weaker. and i guess in a way what the market was hoping for was something big yesterday. as you know, the dollar index, people have been looking at the year low on that and we got below it yesterday. and if it did, it would have pointed to us breaking out of more ranges. but you know, the dollar buys came in when we got the need at 7.38 levels. once again, we're re-signed to the fact that we remain in these ranges. >> what is going to shake us out, daragh? >> i don't think anything will, in the near term, at least. i think the equity market will come back to share the fx view, if you like, is that there's a

big debate to be had on the future of growth. that's not something that's going to get results one way or the other. until we have clarity on that, i think it's hard to make an extremely bearish or bullish case on the dollar until you know exactly what's happening there. i think unfortunately what shakes us out will be revolution of that debate, but i think that's a fourth quarter story. >> dey ragh, do you think the rates by the aussie have room to raise further? >> if aussie is going to make big headway, the global outlook has to be positive for the activity. and for now, we don't have that. for every bit of good news we get, we get some setback. for example, the china state banks indicate they may not curtailing lending in the second half of this year. that knocks the aussie back. so it's hard for any of these currencies to enjoy a long running trend and markets are quick to take profit on any

given move. >> daragh, how are the markets watching the debt issuance that we're seeing? yesterday's two-year auctions were received yesterday in the states. is that something that fx traders are watching? >> i think it was. we had this bounce to the dollar and at one point we thought we were extend the weakness. then you had the consumer confidence number. this tap yid response, all of those gave you a nice conflewence of factors that suggested, well, hold on, let's take a bit of a short squeeze in the dollar, let's put on some longs even in the shorts term. >> daragh, we just had lending data out in the uk and there doesn't seem to be any signs at all about all this quantitative easing generating inflation or printing money, as it was

called. what does that do for sterling, or not? >> sterling, one of the stories and quantitative easing not just in the uk, one of the stories has been printing money, this has to be bad for your local currency. i think what we're seeing seeing in the uk is that we're not getting this liquidity surge, we're not getting the inflation impulse from that. in my mind, that means you can get quantitative easing. and without it necessarily being countersy negative. maybe in the future they could make a mistake. but for now, i think you should give the bank of england the benefit of the doubt and by sterling on fundamentals and not sell it on the basis of some fear about qe. >> daragh, thank you so much for that. coming up in the next hour of "worldwide exchange," we'll bring you up to speed with all the stories making headlines across the dmroem globe. >> plus, how hungry are foreign

investors for today's five-year note auction?

a stunning debut for china's state construction, the world's biggest ipo in a year. the overall hang high market plunges 5%.

and i'm ross westgate. peuge peugeot citron prices the economy. >> and i'm bertha coombs in the u.s. investors appear to be catching their breath xt futures right now are heading lower. if you're just joining us in the united states, hello, good morning and welcome to the start of your global day with "worldwide exchange." we broadcast live from the u.s., asia and europe. and here in the u.s., the futures, as they say, have been below fair value for much of the session right now. we've got dow fourchs down by about 30 points below fair value. we're going to hear from conco philips this morning, wellpoint, although the insurer yesterday rallied with signs that the senate finance committee is looking to drop the controversial government plan in the health care reform bill. that's something that's going continue on and be a subject of

debate throughout the months. taking a look at bonds, the yield is at 3.43%, pretty close to the highs of the session. the ten-year note today has been at 3.6%. the $42 billion auction in two years was received in a mixed way. it had fewer foreign investors that people would have liked. that auction at 1:00 new york time this afternoon. ross, you've gotten some data that is not so robust coming out of britain this morning. >> no. what do you think that treasury market will be? >> rick santelli was the official grader and i think he may have given it a b minus. he's a tough grader.

>> he is. i wouldn't want to be taught by him and him giving me my marks. i would have failed. if he look at net lending in the uk, no signs of quantitative easing. so anybody that's worried about inflation or printing money can stay at the bus stop. global equities, a little firmer. ftse cnbc 300 off. well, in europe we're slightly down. ftse 100 up 0.75%. we're in the middle of a big earnings day today. bayer looked good. that is helping boost us here. on the currency market, the dollar is having a breather after being earn pressure. the key thing here is that on the currencies, where the equities appear to have broken into new ranges, in the currency markets we haven't. so we're wondering whether the

correlations are beginning to break down, krit christine. >> well, breaking down here in asia, profit taking is the theme of the game here. the big story today, the big focus is the big ipo in china. but the overall market, dhant get auto boost from the ipo. it shrimped 5%. a lot of people are saying this is the much needed correction after this particular market rose as much as 78% year-to-date. the hang seng is down 2.3%. the bombay sensex down 1.23%. the nikkei 225 yesterday snapping a nine-day winning streak and today onlying up 0.25%. oim seems to be losing ground because of the dollar strength. nie met light sweet crude is trading around $65.50 a barrel.

brent is trading lower following nymex down, $68.37 a barrel. >> let's get some perspective on all of this. joining us is richard wilson, going to be with us for the next 50 minutes or so. >> morning. >> it's always good to see you. give us your tuppence on why we've seen this rally in the next few weeks and how much the earnings is playing into that. is it justified? >> i think prodly it is justified. we had a sell offoff into earnings. expectations got reset very low. from a u.s. perspective, we were looking at earnings down 35% going into the reporting season. we're about 600 basis points back of there on an as reported basis. the preannouncement season itself was very light, ross, and i think companies had properly reset expect ages. what is interesting is that

we're not getting beat on the top line. >> richard, that's what has a lot of people worried that ultimately we'll run out of steam in terms of this enthusiasm and we'll be looking at what people call that w recovery, we'll snap back from then thus amp. how do you position yourself for that in terms of where you're investing now? do you need to have an exit strategy here anticipating that things might be worse in the first quarter of next year in terms of the stock market? >> i think, bertha, exit strategies are the talk of the day at the moment. i think my own exit strategy is definitely there. i have not put it in place yet because i feel there are so many -- there is so much stimulus that's been thrown at this market and there's so much further good news that can come from this market in the short-term that i think it's extremely dangerous being offside cyclicals.

we will get corrections, like we saw yesterday in china if china fla is the determiner of the overall market. but from a u.s. perspective, i think there is justification for the lastly, given the stimulus, given the better than expected earnings and given the propensity the u.s. companies have shown at cutting costs out of their operating models. it's very, very impressive. >> richard, if we get more correction, the market continues to slight slide even lower, would that change your strategy? >> i think inevitably my strategy at the moment is bodily streaking barbells. for example, within the technology sector, i've got what you might call heavily cyclely exposed technology companies,

connecter companies. at the other end of the spectrum, i'm long stable, defensible cash flow technology companies. computer associates is one. they make mainframes. it's basically the annuity business within technology. so i have what you might call very high beater exposure. and it is my hope that those two groups of stocks are not positively correlated. time will tell whether that is indeed the right strategy. well, brilliant, richard. richard is our host and fundamental manager at threat the needle assets. coming up, the u.s. continues to spend, spend, spend its way out of the recession. fewer foreign investors seem to be less tempted to buy our debt.

could this spell trouble in the futures? stay tuned.

investors are bracing for a treasury auction today after

lackluster demand for two-year notes yesterday. folks are on edge. many analysts are concerned that the flood of debt could eventually outpace demand. for more right now, we're joined by forex gavey, strategy at ing wholesale banking. you know, that did not get such a great grade yesterday, that two-year note auction. we saw a 33% participation by foreign buyers, well below what has been historical norm or even the average with these recent debt issuances. >> yeah. it's a bid bit of a concern. the street bid was okay, as well, but you are right, the central banks weren't buying as aggressively as they did the last two-year auction. but i think we have to put things into perspective. the yield though is just over

3%. so that is the big issue, will investors continue to buy. >> and the interesting thing is, we've attracted more buying on the front end of the curve than the back end. it's been the ten-year auctions than the 30 years that have been the problem. if we've got hundreds of billions more to come, that doesn't bode well. >> absolutely. there's a massive dirchbls between the front end and the back owned. the front end has held in quite well. there's no prospect bying any time soon. if you've been long 30-year paper in the u.s., you've got 25 25%. it showed that the back end has built in a concession and we're

still in a position where in terms of absolute yield levels, we're still well below average. the average 30-year yield is 5%. so there is still potential damage to come on the back end. >> padhraic, clearly at the moment, locking in interest rates at 1% looks attractive the. but how would you characterize those comments in light of bernanke's comments yesterday. the fact that he's now talking about an exit strategy, how do you think that impinged on yesterday's very low take up of the two-year auction?

we see 2-year paper at 1%. lockins today are speculative in that respect. i think this time around, the front end will sell off before the fed hikes rates. so i think in terms of the buyers of last night's auction, there's always a natural demand for that part of the curve. we know there's lots of money in builds and short data bonds. that's the type of money that went in there. it was money going in. and do you think if people are put off potentially given yesterday's results, i think it's difficult to look at one data point and extrapolate from that, but if the takeup was lower yesterday, do you think today's five-year auction will exhibit similar trends given what i just said about the potential rate across the curve to move higher as we go out 6 to 9 months?

>> yeah. it's a similar kind of thing. by definition, if you buy the five-year bond, you're locking in 2.6% for around the next five years which, of course, is quite low. and, again, we will get your typical central bank buyers involved there. but the fkt that we didn't see as many as we would have liked to have seen is a concern. but there is a solution for that and that is for rates to go higher. >> would you stay away from corporate bonds? >> corporate bonds, as far as we're concerned, still represent value. the rates being priced in are quite large and subsequently, we still see value in corporate bonds. clearly, corporates have had a fantastic run so far this year with fantastic terms.

>> what is going on here in europe? we've got a lot of supply coming through from different countries and there been concerns that some of the peripherals would struggle. how are they coping? >> they're doing fantastically well. the last three or four weeks have seen italy, ireland and outperform germany. there has been a real change in peripheral risk aversion. a lot of the worry has dissipated for now. but there's still a lot of volume there. we could look for some more of this to occur over the next couple of weeks. >> maura, thanks so much for joining us.

here in the states, it's a long-running saga maybe finally coming to a close. microsoft and yahoo! have reportedly decided to take that next step in their on-again/off-again courtship and get in bed together. reports say they'll announce a web search partnership today uniting against google. microsoft will not have to pay up front, though. they will have to work with the companies and microsoft will power yahoo!'s serves and yahoo! will handle the ad sales using microsoft's technology. google controls about two-thirds of the u.s. market share right now. we'll see if the partnership comes to fruation. in germany this morning, they

have up. real estate mowingup sam zell says after posting three months of positive data, the u.s. housing market has reached what he calls an equilibrium where prices will stop falling. in an interview on krn, zell says this will help turn around the rest of the economy. >> the key to everything, in my opinion, is single family housing. >> why? >> because that's where consumgdz comes from. in other words, if people don't have confidence in the value of their biggest at et, they're not going to have confidence to spend money. >> that is residential housing. zell says commercial real estate hasn't hit its lows yet. ross. >> bertha, s.a.p. today reassured investors.

the stock raised its outlook for operating margin these year. second quarter earnings, they were fairly solid, certainly above forecasts. earlier, we talked to the head of the company about how he plans to increase margins. >> we are well on our way. as i said earlier on, we are trying to make our business sixty, we have taken outed 250 million in costs. >> shares in peugeot citron reported better than expected numbers. its cut its inventory more than forecast. but the group still swung to a loss in the first half because revenues fell by more than 0.5%.

ross, cheng lei files this report. >> like the first day index, china state bank construction swung in a wide range. the stock ended 56% higher. while the ipo was very popular, valuations were extremely high. investors used today anticipates ipo to take profits. what next? analysts say chinese stocks could still rise and we've got a slew of ipos coming. back to you. >> and that was cheng lei. you can get more news, videos and blogsed to's market-moving

news at one stop, cnbc.com. but before that, still to come on "worldwide exchange," japanese carmakers honda and nissan have clung on to profits in the first half and french carmaker peugeot has surprise with positive cash flow. 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. well, you're excused. the right insurance for your ride. now, that's progressive. call or click today. you all want to run your businesses more efficiently, so we've brought in a team of experts to help. one suggestion is to make your shipping more efficient with

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okay. where are global equities right now across lobbed? becky is going to update us. >> today, the ftse 100, having opened a bit lower, is now managing to hang on to some gains, by about 5 points or so. let's take a look at some of the earnings stories. plenty of the stories have been negative here in the uk despite the gain overall. rexam has been hit hard after a rights issue, speculation that that had hurt the stock recently. the impact of their business on the downturn has been worse than they've been anticipating. bg group came out with estimates today, as well. 31% drop in their second quarter profit. they see a bit of weakness in gas demand which had an impact on their second quarter figures.

profits up by 29%, increasing their targets, as well, saying they've seen a decent bit of moves in other markets. let's get straight out to patricia szarvas now in frankfurt for more on the german trade. becky, they're keeping our gains out here, up about 147% for the german market. around 29 million shares have traded. good thirgs, good comments coming through some from of the brokers upgrading their stocks. deutsche bank is recute rating from their losses yesterday. s. s.a.p. coming through with good numbers, as well. deutsche borse is suffering down about 0.3%. one interesting thing from the

ifo institute out here, we've been talking about credit conditions in germany tightening and getting worse. so this is really something that has been following us in the second quarter reporting season there. on the other hand, we have infineon up about 6% on them seeing they are business growing in the fourth quarter. christi christine. >> thanks, patricia. asian markets closed mostly lower today. the nikkei 225 closing up 0.3%. at 10,113 thanks to high tech shares. but remember, after the market shut, japan's biggest brokerage has hosted its biggest profit in six quarters.

despite that, strong appetite for world's biggest ipo. and that didn't help the shang second market in hong kong. it fell 2.3%. south korean's shares snapped a 11-day winning streak. and in singapore, temasek said its portfolio slid by 27 billion in the year to march but it is sticking to its investment in banks. on that note, let me throw it over to you, bertha. >> thanks, christine. yesterday we got the housing stats. today, the calendar shifts to manufacturing and business conditions. we're going to get june durable goods orders due out at 8:30

a.m. new york time. that marks demand for heavy applians and machinery. at 2:00 p.m., the fed will release the latest beige book which compiles data from the fed anticipates 12 districts. and bill dudley will speak about the driving factors for growth and inflation before the association for a better new york. that's at 8:30 a.m. new york time. it will be very interesting given the comments we got earlier in the week and yesterday. we're going to go numbers from dow phillips, wellopponent. also we'll hear from medco health institutions and wyndham worldwide. along with those, we'll hear from iac interactive and general

dynamics, sprint nextel and investment firm lazard and a host of others. that is your global stock watch. christine. >> coming up next, u.s. durable goods probably fell in june. we'll assess when we see a sustained rebound. stay with us.

it's half past the hour. here are the top business stories from around the xwloeb. in the u.s., investors seem to be catching their breath before another round of earnings and futures are edging lower. >> in europe, french carmakers get a boost after peugeot citron surprises with cash flow by slashing inventory. >> and here in asia, a stunning debut for china's state construction, but the overall shanghai market plunges 5%.

>> hem low and welcome to "worldwide exchange." if you're just joining us here in the u.s., the futures this morning have been poingt to the down side for the open. right now we've got a slew of earnings along with the opening bell. we're going to get some durable and some other data, as well. because i know the big notice will likely be this as far as on a two-year treasury. today we've got a $39 billion offering of five years. right now, the yield is at about 3.6%. ross, in europe this morning, it seems all that quantitative easing isn't doing all that much, isn't is in the? >> certainly not if you look at the figures in the m4.

still contracting, so not much of that kwaubt tafb easing is coming out at the other end. here meanwhile as far as the stock markets are concerned, 1.7% to the xetra dax. earnings have been better. bayer blew past the estimates, so that is still supporting us. we did manage the 12 consecutive days coming up. on the kurpsy markets, month the stock nkts are inching higher, we seem to be disconnected slightly. euro and sterling are doing against did to recall and the dollar is slightly firmer there, christine. >> hey, ross. the recycle 225 bucking a

nine-day winning streak. the big ipo there, china's construction fell as low at 5%. the hang seng is down also on profit taking, down 2.4% and the bombay sensitive 30 trading down 0.9%. oil is lower because of the strength we're seeing in the u.s. dollar, nymex is down $1.65, $65.68 a barrel. and brent is pulling back, as well, down $1717, $68.71 a barrel. bertha. >> thanks, christine. joining us now to look at what's going on in the markets today and talk about strategy, antawn shutz, president and cio of menhand capital advisers. still with us is anton. the other thing i keep

forgetting about this page book today. but it's also people are not paying as much attention in the first had a. janet yellen says recovery will be painfully weak. what are your thoughts? my thoughts are along those same lines. recovery is certainly going to be quite low and coming and the consumer is still hiding. they're not spending. they're saving. some of that long-term is great, but in the short-term, that's looking to propel us. i think what's looking to propel us is inventory. i think scott opted to do some starts. you can see the lending hasn't picked up anywhere around the global yesterday. there's no doubt it's going to be a slow recovery, but i

believe there is a recovery. >> it's interesting to use the word propel because it sounds like we're going to grind maybe a little higher. does that justify the moves we're seeing in the market? >> well, you know, the market certainly when you look start looking at forward earnings here, again, you know, anticipate ago slow, gradual recovery, the s&p is not that expensive. it's probably about 13 times forward earnings. earnings have quite a substantial amount. i think the regulators globally have done a pretty good job of lepg tighten up the trend in the commercial system. we're essential not out of the woods here, but i think we can see the edge of the woods. >> richard, do you agree with antawn that the s&p isn't expensive here?

>> yeah. 13 times earnings doesn't seem to be that inflated. i share many of his sentiments with a recovery six to nine months out. i think at the moment, the market is being propelled by short-term cyclicals as he suggested, such as cash for clunkers and i think we need evidence of a real pickup from consumer spending in order to perpetuate this recovery towards the end of this year. >> if you're positive -- >> i have positive near term and i think it's striengly to be too avertly negative. but i think looking towards the end of this year as people begin to think about positioning themselves for 2010, i think absent some kind of recovery in consumer spending, which has to come from one of three areas,

income, net worth or credit, absence in improvement in three of those categories, i'm really noe not sure where we see this market perpetuating. >> i totally agree. job losses have to peak sometime in the first quarter and early third quarter. the consumer has to have the money and the confidence. certainly the consumer confidence numbers aren't showing anything row butt by any means. domestically, we're seeing the president's numbers dwindling, as approximately. there is no doubt that anybody wants to export their way out of this and jobs need to be created and defense needs to go up. >> does that mean you stay away from the consumer stocks?

>> i'll still worry about the consumer stocks out there. so the market has gotten ahead of itself potentially on consumer stocks. i think the stocks had a huge move upwards, yet we haven't seen dynamics that might suggest that the consumer is out there using a lot of credit and behaving better and better and paying their bills. >> i'm curious as a fellow fund manager, because we any we have a medium to longer term. why do you think is acceptable to apply that trade. >> well, i think we have had a chance to put out some short shorts, even in this stap.

i think we've soot a lot in this marketpla marketplace. they're creating some strange moves. a lot more capital raising to come in the financial service sector. the big guys have done most of it. but you go down beneath that and a lot of them need to raise a lot of capital. so you know, that's where i've been hunting on the defensive side. i'm getting help certainly by getting short stocks that are in the marketplace in general. but stocks that have to rate capital & or have issues. if these companies can't raid

money, they've already plead it clear to me that they would. >> thank you very much for that. richard wilson, you will continue to stay with us. right. let's cross live to tokyo and check in on the trading day there with the nikkei. >> hello, christine. tokyo stocks ended slightly higher today. the nikkei 225 briefly rose above the year-to-date high. but the gain was paired down to 2.3%. cannon rose after raising its operating profit for the year through december due to a 5% raise. toyota stocks performed well, litting a year-to-date high.

yfq holdings continues to turning. meanwhile, nippon shael came in below their earlier projection in a april. softbank climbs as much as 35% where investors will join forces. decliners were led by shipping, transportation and domestic demand related sectors such as real estate and footballs. nomura holdings announced after the market closed that a group net profit came in at 11.8 billion yen, the returning to the back for the nifrt time in six motors. lon da motors says it was

upgraded to $17.10 billion. >> thank you very much for that. the search is foonl hi over, or is it? microsoft and ya should have finally reached an agreement on a merger and we'll have more you say futures he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half. and you get half. ( chirp ) team three, boathouse? ( chirp ) oh yeah. his and hers. - ( crowd gasps ) - ( chirp ) van gogh? ( chirp ) even steven. - ( chirp ) mansion? - ( chirp ) good to go. ( grunts ) timber! ( chirp ) boss? what do we do with the shih-tzu? - ( chirp ) joint custody. - dog: phew... announcer: get work done now. communicate in less than a second with nextel direct connect. only on the now network. announcer: get work done now. communicate in less deaf, hard, hearing and peopith speech disabilitiesit .

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welcome back to cnbc's "worldwide exchange." microsoft and yahoo! they've decided to take the next step in their on-again/off-again saga and move in together, so reports say. they say that the two firms will announce a web partnership today uniting them against market leader going. microsoft will not pay anything up front. the companies will share revenues from ad sales. yahoo! is going to handle ad sales using microsoft's technology. google still controls about two-thirds of the u.s. search

market. if indeed it does go through, we've heard this before, but we'll be watching for that today. you can say maybe it's preunited and it feels so good. yahoo! shares up 2%. microsoft up nearly 1% in germany. and bernie madoff says, hey, what took them so long? he says he's surprised his ponzi scheme wasn't discovered sooner. reports say that he told lawyers, you know, there were several times that i met with the s.e.c. and thought, they got me. madoff says he believes securities investigators found all the money that could have been recovered at this point. some money was paid out to feeder funds. and ben bernanke, even he could not escape the downturn in the market.

the filing shows the market took a sharp fall in 2008. that lost about half of its value. bernanke's assets include other annuities, mutual funds and u.s. and canadian government bonds. better nabky received a salary of $91,300 last year. >> final thought from richard wilson. how -- what does that mean for investors in the stock? >> well, as you said, ross, they had their first significant shortfall last week. but i do think that their online strategy has been troubled for years now, being that their search engine isn't gaining

market share and goose r goose r google is very much the leader in the industry. >> you sort of hinted earlier. >> you attempt to build a portfolio to correlate with one another. having said that, i still have a cyclical buyer to r to my fund and the reason being is iblt the market is going hire and i believe what is carrying the market is cyclicals at this stage. >> richard, good to see you. let's find out what's coming up on "squawk box." >> hey, ross, good morning, everybody. fist ooh all, i want too thank bertha for getting the first

song stuck in my head this morning. reunited and feels so good. we were listening. you've done it for me. anyway, we've got a big morning coming up on "squawk box" for you guys today. a triple market threat. one guest that we have here is the nation's biggest hedge fund managers, tom styers and pimco's bond boss, mohamed el-erian. between these three, they have trillions of dollars under management. plus, technology, as you know, one of the stars of the summer rally. we've got the ceo of software giant s.a.p. joining us. we'll be asking if his company is seeing corporate spending picking up. and senator kent conrad, who is a point man on health care reform, he's firing back at critics who are accusing him of getting preferential mortgage treatment. he's with you of our special guests this morning as is

california governor arnold schwarzenegger's financial adviser. bertha, i'm going to get you back. just wait. >> oh, no. i can't wait to hear what you're going to put in my head. >> i've got to think -- oh, wait! it's a small world after all it's a small world after all ♪ >> oh, no! we'll see you in "squawk box" in just a few minutes. coming up next on this show, we're going to take a look at the day ahead in u.s. trading with michael gurka. stay with us.

let's get a look at the day ahead with michael gurka. nikal, good morning. i'm sure everyone will be watching that five-year action coming this morning. yesterday, the two-year was not well received. >> well, again, it's not surprising that demand is diminishing as we go through this. it came in with a healthy appetite to start the week. but right now, at least, i think this consumption of debt on the government's part right now is really working well. i think the correlation right

now with china coming into the united states and having dialogue with the president and the treasury secretary right now is probably not a bad thing, but for the same reasons that we're looking at this health care reform, there's so much coming upon us from a fiscal scenario right now, i think the debt is overwhelming us and the markets are performing very well in that phase as we speak. >> you know, the senate finance committee is coming out and saying they are going to table the of that government plan, insureses rally. do things look better for insureses the more the bill gets watered down? >> it's almost like golf going into extra holes or sudden death. i think right now the prolonging is helping the markets in that sector. in particular, the two that you just mentioned. i think what happens right now is we're trying to get a forward-thinking scenario and the companies that benefit the most and really take the brunt of it.

i think six months looking forward, like more indexes do, show us the market is pretty comfortable at these levels. >> michael, we're going to leave it there. thank you so much for joining us this morning. always a pleasure talking to you, michael gurka from global asset funds. the futures are morning are pointing to a lower open. durable goods, lots of earnings and, of course, this afternoon, that big treasury option. so investors are likely to be a little skittish. nasdaq and s&p 500 futures also below fair value, as well. that's it for today's show. i'm bertha coombs here in the u.s. thank you for joining us. >> i'm ross westgate here in europe. >> and here in asia, i'm christine tan. thanks for your company here on "worldwide exchange." we'll see you again tomorrow.