the market. take a look at the nikkei 225. this is up 0.22% helping to support this particular market. the kospi is up marginally. the shanghai composite is up 0.26% and the hang seng is down 0.7% and the bombay sensitive 30 down 0.3%. nymex light sweet crude is trading lower, 76 cents, $70.82 a barrel. and brent is trading lower as we speak down 37 cents, $73.18. bertha, good to see you. how are the futures looking sfp. >> good to see you, too, christine. yesterday all of the major indices closed at highs not seen since last fall. right now, we've got dow futures about 33 points or so below fair value. we're going to be hearing from

dow component this afternoon proctor & gamble, i believe. kraft foods is the one reporting this afternoon after the close. ahead of the open, we'll be hearing from archer daniels so we'll get a little bit of a situation of what's going auto in the food sector. taking a look at the bund yields, we had all that great data yesterday. we've got the ten-year bund pretty much where it's been the last 24 hours or so at 3.33%. u.s. yields here moved fairly high yesterday as we saw a bigger appetite for risk and a lot of folks moved out of the bond fixed income market. we've got the ten-year notoriety now at 3.63% and gold at the moment not attracting too much of a bid, either, with a lot of folks continuing to have that appetite for risk. credit teen. >> bertha, joining us now for market strategy, we have

christian baberg market strategist glaxo bank and hopefully we will have steven teich later in the show. christian, do you think markets are too optimistic? >> yes, we do think so. if you look at what's going on in markets right now, markets are pricing in that consumers will start a pick up in demand. namely, that inventory to a certain part will have to be refilled. but from that point on, markets are pricing in a huge pick up in consumer demand and quite frankly, we've had some difficulty seeing where it's coming from. because if you see what consumers are doing, especially in the united states but also in europe, there are savings more now, the savings rate in the u.s. is the highest since 1993 and still pending upwards.

europe is somewhat less because they have some more savings compared to the u.s. consumer. but the point is that the unemployment is rising and these two things combined, we don't see a consumer pick up as priced into equity markets currently. >> you don't see a consumer pick up price into the markets, but you also say in your notes, and i'll drill into these, if i may, current trailing earnings grossly underestimate the structural profitability of corporate america. are we using the wrong measures to value our companies at the moment? this is important at this stage of the cycle. >> i think so we are. i mean, what you should look at, what is reported most commonly in the media is price earnings where they have sort of drawn and deducted the companies that post negative earnings. but if you look at real earnings and what's priced in there, the s&p 500 is trading around 200 for the p. so the point is what i think we

should look at is other numbers namely realized earnings and they are a bit more negative than the sort of headline earnings, those who are based on operating income. and that gives a difference in the way you look at the long-term profits. but that said, we also see that the pick up in demand that is priced into equities right now is a bit overoptimistic, actually been if you look at what's pricing, sales of search over the next six months should go and listen in the u.s. higher by around 22% in order to justify what's currently priced into equities. and we have difficulty seize where that should come from. >> steven gallup of teich joins

us now. steven, that you can for getting to the camera to swiftly. are valuations overstretched following this rally? >> i'm quite sure they are. if you look at china and asia, there is potential for these values to be maintained. but the west, i don't see it. we're looking at bad figures and it's all being ignored. gdp has lost 1% again last quarter and that's the fourth quarter in a row and it hasn't done that since 1996 when records began. >> stephen, this is christine. we are getting some hsbc launching an ipo. what does this say about the prospects of the china market? >> well, i think the china market is doing just what we wanted. that's partly the government's money.

let's face it, everything else is trying to stimulate now. that is tremendous, as well, and that's what we were looking for, a real market inside china to drive china examine asia, basically. >> christian, it's bertha here in the u.s. we're likely to see the savings rate go up, which is an odd thing to see in the united states, certainly in recent years. but in some senses, are we perhaps discounting the effect of just confidence and more talk about the economy getting better and the market itself getting better, perhaps giving people a little bit more confidence? is that too simplistic? >> first of all, i think the

current rally is foul, but the point is that i think that the consumers in the united states are facing rising unemployment and fast rising unemployment at a pace not seen in recent decades and the point is if you're a consumer and you have negative value, then you'll start repaying that debt in order to be more secure. if you have a house with over two people, one of them should lose their job, that is the least of what i would be doing. so it's more common sense. i think the fear of unemployment is leading consumer confidence lower and that's why we're seeing savings instead of spending. >> stephen, let me put it to you. if the consumer doesn't risk seeing whatever progress we are making on the headlines of the economy flip? >> i think we've got to be.

it's interesting with spending, and the savings. if you go back to 1980, there's been a steady decline from 9% down to 0.2% recently in savings of net income so it was dropped dramatically. we got ahead of ourselves and we have to pay for spending far more than we've learned for the past decade or so. we haven't really changed our living standards and we have to tighten our belts and have it hard for a while and we haven't and that concerns me because the longer we put it off, the harder it's going to be. >> it's a strange phenomenon, isn't it, savings, especially in the uk. stephen, thank you for joining us and christian blaabjerg, as well. ubs says its $1.3 billion loss is disappointing. the swiss bank was hit by 37 billion of outflows in its

wealth and asset management divisions. ubs says it's cautious on the outlook given that its view will be held back by structural weakness in government and consumer. it intends to trim head count by around 7% next year. over in france, bnp paribas says it's relatively domestic after beating forecasts with an operating profit of more than $5.7 billion in the second quarter. the bank unveiled a 6.6% rise in net profit boosted by its acquisition of key fortis assets. the group is said to be well positioned going into the second half. >> what we see is that if the novelzation of financial markets continues and if the very strong client activity that we've seen in the second quarter goes on, we should end up with, again, solid profits for the third and fourth quarter.

>> here in asia, we are focussing on japan's top automaker reporting a smaller than expected loss in the first quarter in the april to june period. toyota posted an operating loss of $2 billion. revenue saw a fall to $42 billion. the road ahead for toyota is looking less bumpy after the company revised up its full year guidance. it now expects the full year operating loss to narrow thanks to the company's cost cutting measures. shares of toyota ended 1.5% lower ahead of results today, 4030 japanese yen. the downturn took a big chip off al peat ya's earnings after a better than expected sixth quarterly loss. elpida expects output in terms of memory capacity to rise more than 20% this fiscal year.

taking a look at elpida shares, ending down just a notch prior to the results, 1,175 japanese yen. hsbc could soon be one of the first foreign companies to list in shanghai. reuters says it could raise up to $7 billion in an ipo next year. hsbc which reported better than expected profit yesterday has yet to consume the size and timing of the public offering. earlier, the cfo told cnbc asia continues to be a key earnings driver for the bank. >> we've always said asia will recover more quickly and i think we see that occurring as we see the results from around us, both from companies and banks and in terms of conzoomer sentiment here. it's a lot better than the developed world at this point in

time. >> hong kong is trading up .9% in hong kong and in london, it's down 0.7%. treasury secretary tim geithner reportedly lost his cool at a meeting atop u.s. regulators friday. reports say in a profan advertise laced tirade geithner told his counterparts, enough is enough. the meeting including ben bernanke, mary shah peer roy and fdic chief sheila bair. the plan would greatly expand the fed's power. geithner told them even though regulators are seen as independent of the white house, the administration and congress set policy. and the senate could vote as soon as today to approve new funds for the government's cash

for clunkers program. last week, two top senators said they would vote no unless higher mileage incentives put were in place. ford brings back a familiar model today, meantime, the 2010 ford taurus starts rolling off the assembly line in chicago three years after it was discontinued. if you want to check os out what's going on in the auto sector, be sure to check out phil lebeau's blog, cnbc.com. >> that ask the, of course, after you've watched the rest of "worldwide exchange." hsbc could raise $3..billion in shanghai in its listing for next year. are we in bubble territory again? plus, statoilhydro says it will

remain volatile after reporting a sharp second quarter profit.

let's get to our global roundup. becky meehan will kick you us off in london. >> we are edging a little low. 0.6%. it has been a very strong run up yesterday. we closed the highest of the year. no surprise we're down today 27 or 28 points or so. a couple of big de-kliners one of those is standard chartered, down 3.the%. the fist half numbers didn't look too bad. they beat expectations. kim in at $2.8 billion. . that to fund small acquisitions in asia, so they say. i guess that's what the reason behind the declines we're seeing there.

profits to this company beat expectations of 12%. but they have halved their dividend. they're trying to conserve cash, they say. they believe they're in difficult market conditions is how they put it and the stock is down by just about 5%. elsewhere in the financials, we are seeing strength once again for the likes of barclay's and rbs which ranks among the biggest gainers on the uk market today. patric patricia, how is it looking in germany? >> down 0.8% for the german market below the 4,500 level. but again, volumes are lower than we saw yesterday. we have a couple of outperformers here. allianz, down 0.8%. immune ix re came through with a really good set of numbers. different picture whatsoever at

bmw. watch out for that stop, down 5.2%. by the numbers, coming through for the second quarter and also the lack of guidance for the full year, so all in all, it's not looking very good. autos are very disappointing for investors. daimler down about 3.5%. frezinio medical care down. car sales for the month of july in germany have increased by 30%. we're trying to confirm that story. over to poland now and to blazej. >> hi. the warsaw market is a little off and the post currency also is lower against the dollar and the euro debt and after yesterday it was at its stronger guest the u.s. dollar in 2009. and after in july, the blue chip

index gained almost 6%, pretty much leading the rally here in equities and emerging europe. we have important earnings results from the polish financial sector. pkosa, the majority owned by italian group unicredit has posted a better than expected net profit and the mip industry of the treasury saddened right now that it is supposed to sell around 4% stake of the shares in the bank which sent the shares on the warsaw stock exchange lower off by over 2%. and we also have important earnings results from the financials. also this week, the bre, which is a subsidiary of german commerzbank is due to report numbers later this week. that's all from warsaw. now out to adam in singapore. >> thank you, blah za for that. the u.s. trading picture worsened in terms of the u.s. futures picture throughout the

morning trading session. we saw the markets lose quite a bit of ground today. in japan, the nikkei 225 closing higher by 0.2% and the topix was up by 0.2%. all these markets getting a boost into the green thanks to the dramatic gains we saw on commodity prices, particularly on the london exchange which boosted the trading houses up in japan and the oil stocks up in japan and korea. of course, it was all about the autos in korea, the world's number one automaker coming out with numbers after the close. they posted a net loss for the third consecutive month of $194 billion yen, but the company rose its forecast ever so slightly. they also hiked their sales target ever so slightly by 100,000 units to 6.6 million units for the rest of the fiscal year. but automakers did fairly well today as they posted gains in terms of the july u.s. sales numbers. on that point, it's back to the

u.s. with bertha. good morning. >> thanks very much, adam. good morning. investors today here in the states get their hands on a pair of key economic reports. july personal income and spending figures are due out at 8:30 a.m. new york time. income is forecast to have dropped by 1.2%. spending is expected to have increased by 0.3%. also part of this report, the pce or personal consumption expenditures index, one of the fed's favorite inflation is forecast to have risen by 0.2%. then at 10:00 a.m. new york time, the national association of retailers releases the june pending sales home index which is expected to have risen by 0.5%. and the senate banking meeting is holding a meeting. on the earnings front, we'll all get numbers before the opening

bell from cvs caremark, dr horton, marvell entertainment, the home of spider-man, ironman and the x-men. after the close, we'll hear from dow component kraft foods and electronic arts. that's your global stock watch. >> bertha, coming up on "worldwide exchange," toyota believes it can drive down future losses after clocking negative numbers in q1. we'll get the latest analysis. >> and in the united kingdom, will construction data show the first signs of a recovery? we'll bring you the breaking news right after this break. cc

i'm christine tan. in asia, the world's number one automaker rolls out a smaller than expected quarterly loss. >> i'm steve sedgwick. europe posts another big lost hurt by declines taking money elsewhere. >> i'm bertha coombs in the united states. the mild-mannered tim geithner loses his cool. reports say the treasury secretary blasts regulators for not getting behind president obama's financial reform. >> let's take a look at where these markets are leaving us at the moment. a little bit of a pause after what has been an amazing run,

hasn't it? 4,109 is where the ftse cnbc global 300 is trading. the individual bourses here in europe are in negative territory. the ftse, which year-to-date is up 5.6%, giving up 0.7% so far today. more money raising comes from the likes of standard chartered. xetra dax trading on a day low, although massive outperformance aus ott late year-to-date. up 12.8%. the cac 40 over in paris before today up 8%. just giving up around about 40% of its gains from the previous session. let's take a look at the foreign exchange markets. small reserves in the greenback after pummeling through that 143 level in recent sessions. cable trading at 1.6925. christine. >> steve, here in asia, a mixed finish and some of the markets earlier got an initial boost

from more hopes that we might get a recently day off. earnings today, of course, the toyota is one big story. the kospi is up marginally. the hang seng market trading down lightly and the bombay sensitive 30 is down 0.42%. overall, a mixed finish here in asia for a tuesday. bertha, over to you. >> christine, it looks like at least at this point here in the u.s., futures are point to go a bit of a pause, as well, after seeing all of the major indexes close at new year highs. right now we've got dow futures down about 48, 49 points below fair value. we've got nasdaq futures about 10 points below and s&p futures about 6 points below. we're going to get food earns g earnsings today. then we've got kraft and whole foods after the close. maybe i've just got food on the brain. but the wig headlines this

morning are likely to be the economic ones. we're going to get person income and spending and also personal consumption, taking a look at the ten-year yield. we did see yields move higher yesterday. we don't have bond sales this week, with you of course, the big data on tap will be the jobs numbers from tomorrow. we'll get the preview from adp. right now, we've got the ten-year note at 3.63%. steve. >> you're not the only one who always has food on the brain, let me tell you. elena joins us today. plenty of data to discuss. before we do that, i want to see if we can draw anything out about this debate about qe, quantitative easing. >> quantitative easing has been very successful in global markets. first, it has been a successful

tool to fight off deflation expectations and second, it has been a successful mechanism for financial stabilization. the economic outlook has change dramatically. fund managers are now allocating funds towards credit bonds, emerging markets, commodities and other risk assets. however, the detail here is that fund managers are buying and selling after increasing prices. we've got the s&p up at double digit levels in the last two weeks. it's up over 50% since the marleau and that is way ahead of the improvement we're seeing in the real economy. one area that it has failed to address the underlying causes behind the crisis is the discorruption in credit markets. so we have this strange situation where people are saying the worst is over and we have a brighter -- a smoother road ahead here, but the machine is still broken.

and therefore, there's no way of knowing how we can get to that sustainable recovery. >> there's a lot of debate and we're seeing more liquidity in var why you parts of the economy. uk second quarter m4x up 3.1% year on year. we've had pmi data, construction pmi index rising to 47 in july. in terms of the underlying data, you're absolutely right. nkts have gone up double digits, incredible rallies from the lows. about you but in terms of that front run, have they gone too early? >> it is fush pushing up medium and long end inflation expectations. but because it is not trickling down to the credit curve where the credit crunch is driving the

dynamics, it may fail to generate an economic recovery so we could end up with a situation where either we expect deflation or it could generate more systemic risk in the form of asset bubbles. >> lena, we've got more questions for you. >> lena, it's bertha here in the u.s. ralt of people are worried that we wouldn't see growth in the third quarter and now the latest data here in the u.s. is showing us that we are likely to see that. it looks like we have at least on the surface on track for a recovery even if it's not sustained. just the mere fact of that, if you look out where we are a year ago, isn't that enough to inspire some sort of confidence? when you're a kid and you have training wheels, you think you can't ride without the training wheels, with you although and

behold, you look to ride. >> that's right. credit disruption has been the driving force behind the collapse of output in the last 18 months. the to that extent, easing credit conditions have helped companies moving away from the levels will we saw in the second quarter of this year towards some refill as we saw from the ism manufacturing released this week. the signals that we're getting from other parts of the world, the china euro zone, the most striking part of this ur survey is that similarities are all showing a combined positive momentum in corporate activity. so to the extent that we see that shift in the inventory

cycle, this could create a very nice head in gdp figures over the second half of this year which could make this momentum look like a recovery. but it is pretty clear that the consumer will not be driving this recovery. global trade remains depressed and global trade remains fragmented. any growth will be slowing than previous exists from recessions as lenders are not nearly as able to generate the pace of credit that we've seen in recent years. so we are probably going to see an environment where figures start looking significantly better and that would keep the momentum cheering financial assets higher. but this move is associated with this gaping gap in capacity utilization in the global economy reflected in high structural unemployment which could perpetuate quite a default and could perpetuate financial cry sess keeping this crisis with us much longer. >> lena, hi. this is christine here in asia.

things seem to be improving in china. do you think australia will be the first country in the world to hike rates and could asia possibly lead the world into a recovery? >> well, we have seen some recurrence of the long-term trends in the global economy this year as financial conditions have normalized. of course, australia has investors in the global economic cycle is sensitive to growth in asia. as long as we see financial stabilization being sustained just off-line, i don't think this is guaranteed. systemic risks haven't disappeared. what qe has done, it haslem nated the symptoms of the crisis, but hasn't changed the causes of the national credit flows. then yes, we can see some more quarter sales firms, the cause of g-7 industrial circles. >> all right, lena, good talking to you. thank you very much for that

global tour. we are watching one particular company very closely and that company, of course, is toyota. it is the world's number one automaker posting its third straight quarterly loss. but numbers beat expectations forecast b a wider loss. well, the company upped its full year guidance saying cost cuts are still likely to limit the impact from sales slumps. the director of mizuho international joins us from london. sujiro, thanks for being with us. >> morning. >> you say toyota is almost desperate. why is that? >> well, in many cases, i think they understand that there is definitely a structural change that is needed and asked for. i think they still realize that their marginal profit is still too high. their product might not be best suited for the areas they want to stress theirselves in. there's a lot of mounting problems and the biggest one, of

course, is the comeback in the united states. whether the financing problem will be over or not, that is the biggest focal point. they're cutting down costs significantly. they're trying to increase their exposure in growth areas like asia and also in china through, you know, their sister companies like dihatsu. but it's obviously that the latter side isn't enough to make up for the former side, which is the downturn. >> when do you think the company is likely to be profitable? >> that depends on the outcome of many events, particularly the financing in the united states. their progress in hybrid cars shows a significant improvement. in japan, sales were not as bad as they expected. this is hybridization. hybrid technology. people are buying much more hybrid cars and that has contributed greatly.

they do understand that there are regional differences, growth areas that are different and that's why they're focusing on the asian side. but again, it is a very, very big shift. they can't turn around that quickly. that's one one of the reasons they're lacking maneuverability. it is enjoying from the flat that it's profiled the cars in asia. >> sajiro, toyota at this point, where are they if we were going to look at the spectrum of high day or suzuki. are these suffering from the same problems as the u.s. automakers? >> yes and no. they are suffering in the united states. but toyota is trying to schand their global strategy by utilizing their sister companies and they're trying to basically match several assets of their product base with regions.

hybridization in japan is a good example. but what is very, very clear, it's clear that they're trying to reduce the marginal profit for each of their cars, meaning that it will be a lot of shrinkage. and this is in their genes, i think. but they really prepare for the worst and that's what they continue to do and will continue to do for the next coming years. >> thank you so much. >> ubs says it's $1.3 billion net loss is disappointing. the swiss bank was hit by one up charges and $37 billion of outflows in its wealth and asset management divisions. joining us live from europe is carolyn. >> was the cause of this

government involvement, swiss government stake in the company, has it precluded them from enjoying the upside in these financial markets? >> reporter: well, that is possible, of course. but we do not know what the swiss government is going to do with its almost 9% stake in ubs going forward. but really, let me go back to discussing the bottom line results here. going into these numbers, we have very conflicting numbers. for some, it was better than expected. for some, it was clearly worse. but that, of course, on average is in line with expectations as far as i can tell. net profit for the quarter full. so that is more of an accounting loss than anything else here. but what is really disappointing is the net loss on the outflows, really, almost $40 billion for

net outflows in the second quarter. so we see the u.s. tax disputes taking its toll here. let's talk about the investment bank quickly. over at credit suisse, they were able to rake in very high profits. they heard that fixed income trading is still very weak. in its outlook, ubs said that it is very cautious even though it sees encouraging signs for the third and fourth quarter, but analysts concur that on an operating basis there is a lot to do for ubs to catch up with chris swis. >> thank you very much indeed for that report. >> in india, ayesha faridi joins us live for the india business report. >> we participated in the global rally today. yesterday it clocked a new high for ourselves and the nifty clocked that or cruised past that 4,700 mark.

today, the markets chose to consolidate. the biggest drav dragger is oil and gas heavyweight, which is why you're seeing the nifty break away and increase those values. tata motors is your biggest gainer for today, at almost 6.5% gains. there are also rumors in the market that they may get the loan guarantee approved for the government for bridge loan acquisition of land rover. besides that, most of the commodity stocks have been doing

very well. you've got auto ancillary stocks looking very well. the monthly sales numbers that came out for auto stocks and infillry stocks are picking up in trade amid the mid and the small caps are holding up, as well. elsewhere, we are looking at euro's biggest bank, hsbc, the company could soon be one of the first foreign companies to list in shanghai. reuters says it could raise up to $7.3 billion in a shanghai ipo during the second half of next year. hsbc has yet to confirm the size and the timing of the public offering. earlier, sandy flockhart told cnbc asia continues to be a strong driver for the bank thanks to the strong regional fundamentals. >> we've always said asia will

recover more quickly and i think we can see that as we see the results from around us, both from companies and banks and also in terms of consumer sentiment here. it's a lot better than the developed world at this point in time. >> hsbc shares are looking mixed at this point in time. in hong kong, it is trading up almost 7%. london, down 1.5%. steve. >> christine, let's stay in the banking sector. perry ba says it's optimistic after beating forecast of an operating profit of nearly $5.7 billion in the second quarter. the bank unveiled a 6.6% rise in ned profits. the chief executive says the group is well positioned going into the second half. >> at the end of the game, we have a $2 billion euro pretax profit for operating divisions down on the 5% to last year. so i think we have shown, again, very strong earning capacity for

bnp paribas even with a high course of risk during this economic cycle. >> the fbi and treasury department raided the florida office oefs a bank and mortgage lender monday after a collapse of a partnership between the two that could have brought them $500 million in t.a.r.p. money. shares of colonial bank group fell 19% on friday. the company says an investment by tailor bean and whitaker mortgage had fallen through, raising doubts about its surviv survival. last month, colonial said it was exploring alternatives. the bank operates 355 branches, mostly in florida. it would be the biggest u.s. bank failure this year. meet the new boss, same as the old boss. donald trump, along with daughter, ivanka & has bought out a rival bid for bondholders to regain the casino company

which bears his name. the company filed for bankruptcy for a third time in fed. trump plans to take the company private. >> i love the way trump does his hair, don't you? you can get more news, videos and blogs, anything moving markets today at cnbc.com 37. >> you know, he will take all sorts of grief about his hair. he is over it. coming up, enough is enough. geithner apparently loses his cool with u.s. regulators. will his tirade help push through financial regulatory reform? >> what about the dollar bears, are they still in place? we'll talk currency markets after this break.

welcome back to "worldwide exchange." this morning, a little bit of risk comes off the table. despite having said that, cable is gaining against the dollar. the euro, only marginally higher than the greenback.

for more of the currency markets, michael is joining us. the rba seems to be shifting away from its rate cutting. how bullish are you on the aussie dollar? >> well, currently, looking at the rba and the statement today, while the yen is probably in the very short-term we're seeing the pattern that sells the fact and the buying are almost previously, nevertheless, the statement is indicating that the rba should be the first central bank among the g10 actually to start hiking rates again. so subsequently, given the very firm correlation between the aussie dollar and the aussie carry, which has been steadily increasing in recent months, certainly the aussie should

remain, really, the top performing currency within the g-10 grid. and in respect to aussie/dollar levels, certainly the rba is a little bit cautious about seeing the aussie strengthening too much. we have seen the rba intervening in the past month or in the previously months. nevertheless, there is very little it can do, so subsequently levels around 85, certainly, are very easy to be seen relatively soon, as long as the general dollar trend is not tying a loop of a breather. >> michael, given the fact that the traders have been rather premature a couple of times in calling a right heightening cycle, when are people going to be talking about the first rate hikes in the united states? >> well, i guess the problem of the fed is that, yes, the u.s.

economy has been bottoming out. nevertheless, given the sharp rise in savings ratios, given the still unemployment rate, certainly the u.s. as a consumer-based economy will struggle to outperform and growth should remain clearly below potential growth in the -- looking into 2010. so subsequently, the price pressure should not become a real topic for the fed and given recent comments from the fed as well as from the treasury, certainly it is premature at the moment to expect an early tightening by the federal reserve bank. so subsequently from that side, unfortunately the dollar is not receiving much of support. >> michael, even though the dollar may not be receiving support, it seems interesting that the equity breaks in the upside and we've seen oil and

such break to the upside, but we haven't seen the dollar break support. what is keeping things so range bound? >> well, certainly, i mean, the dollar, it remains, in a way, supported that the perception in the market is that given that we are seeing the economic outlook stabilizing, the probably the concerns about the fiscal situation in the u.s. as well as also the overall discussion about that the dollar may lose its status as a reserve currency, that these factors certainly have once again moved into the mg for good reasons, we believe, and subsequently we should seeing just the dollar moving and trading within the change actually we have seen fall for quite a while now. and on the back of this, we

still believe that, yes, the pattern of rising risk appetite will key to dollar under pressure in the short-term, but seeing the dollar really moving into a new trading range through the down side of that is not our view. >> michael, good to talk to you, as always. thank you for that. we're going for a quick break. coming up in the next hour of "worldwide exchange," we will bring you up to speed with all the top stories making headlines across the globe. plus, is it summer madness? this rally just keeps on going. but our next guest still prefers the expenses stocks.

i'm christine tan. in asia kra, buyings asian banking units from the royal bank of scotland. >> i'm steve sedge wish. in europe, ubs is hit by wealthy clients taking earnings elsewhere. >> and i'm bertha coombs. in the u.s., treasury secretary time get ner loses his cool as he blasts financial secretaries

for not getting behind president obama's earnings report. >> welcome back to the show. let us take a look at data just hitting the wires. we have euro zone ppi figures. let me just look at that. european prices rose for the first time on the month since july 2008 in june. the measure, the annual measure povertied, though, a fresh record drop. that's according to euro stats. producer prices of 1.3% in june and declined 6.6% on the year earlier period. this is the largest annual decline since comparable records began in january 1982. a little more sobering compared with the data we've seen as of late. >> if you're just joining us in the united states, welcome to the start of your global day with "worldwide exchange."

we broadcast live from the u.s., asia and europe. here in the u.s., we're going to get some data today with regard to inflation. one of the fed' favorite ones, which is the pce deflator, that's the one they watch as we get personal income and spending. ahead of the bell, midland is featured after the close. krafs is going to be the headliner. about 50 points below fair value. nasdaq and s&p futures are lower, as well. not unexpected to take a breather when we saw all the indices up at highs for the year with the s&p passing that 1,000 mark, the first time since before the election last fall. the bonds in the euro zone, it's right where it's been at 3.3%. no real reaction to that data. as far as the ten year here, we have, again, a bit of data this

morning in terms of personal income and spending. the big data point of the week will be with that preview for jobs tomorrow. >> energy prices rising by an 11 point high in june. the global index ftse cnbc still down by 0.3% on the back of those numbers. the xetra dax is the stiller european performer down 1.1%. in terms of the dollar rates, well, the euro has mounted a recovery again. 1.44. it was trading with a 1.4 handle earlier in the hour. cable trading near its recent highs. christine. >> steve, we're seeing a mixed

finish here in asia, a bit of initial optimism comes from hopes that we might see a v-shaped recovery pulling back a little bit. toyota earnings seem to be focused there. the company reported a smaller than expected quarterly loss, raising its full year guidance. that seems to be dominating the japanese market. the kospi up marginally. the shanghai market up 0.26%. in terms of nymex light sweet crude, it is trading off $1. $70.53 a barrel and brent right now is trading around the ranges of $72.86 a barrel. >> let get some analysis on the trends we're seeing in these mblths. very good to see you today, linda. in terms of investments,

defensive and cyclical stocks, you're not going to get a bang for your buck in this rally, are you? >> i think it depends on how strong you think this rally is. i'm not so optimistic that the market is sustainable. a lot of this rally is based on the earnings forecast. if you look at the s&p companies, some two-thirds of them have beat expectations. but if you see how they've beaten expectations, there's a few things that come to light. one, they're starting with low expectations to start with. and two, the very strong showing of most of the banks, except for ubs, is actually on the back of investment banking with government-backed guarantees and yet bad debts are still being written off. if you look across the corporate sector, you're not getting growth from revenues. you're getting growth from cost cutting and there will be a limit to that. i don't actually think that the performance we've seen in the market thus far must be sustainable going ahead.

>> it was interesting, yesterday i was reporting from the stock exchange and all of the traders were illuminating what you were talking about and they say, yet, the trend is your friend. i wonder if maybe we're underestimating. perhaps we're underestimating how much of a recovery we're going to see? >> we might. but you ultimately have to have final nand to have a strong recovery. even if the consumption data in the u.s. today looks positive, that is because the u.s. is in deflation. so you consume the same amount, but because prices are cheaper one end up consuming more which is consistent with the u.s. savings rate rising. that's not a sustained consumption rally. if you look across the euro zone, if you look across asia, consumer confidence is up, but

there are no signs that you are not done with the deleveraging process. especially in europe, there's a lot of shedding of debt and households. and asia looks much better in terms of final demand, but we know the asians are not as rush and they save a greater portion of their income. so without a final demand component generating that revenue stream, it's hard to see how that is going to generate that shape. we're going to get the economy trunldelling along. >> linda, under what circumstances would we see top line growth coming back for companies? >> we would have to see strong revenue growth and that will have to come down to sustained demand from somewhere. some companies will do better. commodities, for instance, are leading the s&p index at the moment and they are certainly following the trek trend of infrastructure spending, not just in china, but also this push for green investment in the

west. there are some companies, so long as that kind of public investments continues, we'll do well leading the recovery. but until you get a fundamental recovery in consumer demand, the fact that within the s&p index consumer stachels are down is a pretty accurate reflection of where ultimately our economic driver stands. >> linda, i know you'll be with us and thank you for your views over the next 45 minutes or so. coming up on the show, we'll speak to the chief xb of statoilhydroafter they missed forecasts for their second quarter profits. !?

zero net profit for the three months to july hit by lower oil prices. the chief executive of statoilhydrojoins us now on the line. thank you very much for joining us. gas production fell 3% on the year, so you're maintaining cap ex at 13.5 billion u.s. dollars.

now, you've got production falling at a maintained spending cap ex plan. do you not need to extend that? >> well, the production on quarter is seen in line with our declines and expectations. we are doing maintenance on our offshore norway and some decline in some of our bigger oil rigs in norway. but they are according to our plans and we are sticking to the production guiding. >> you're having to contend with up to $70 and down to $30 a barrel. how difficult is it to invest in new production? >> well, it has no meaning to engage in this industry if you

take a short-term view. and i think we have to be prepared as a company to live at the high and low oil prices. clearly we are not planning a long-term investments on the oil prices that we saw last year. we are cash flow neutral, delivering on all our costs and investments for 2009 at roughly $55 per barrel. >> taking a longer term view, do you see renewable and developed markets? >> well, i think the world has a very challenging job to do to balance the energy markets going forward. i think we need all the energy sources we can identify to the market given the population growth and increased living

standards, particularly in asia and the middle east. >> mr. lund, here in the u.s., there's been a lot of talk about down on investors. what do you think that does? >> i think we have seen relatively few changes in the underlying supply and demand picture over the last few or four months. and we believe that is predominantly driven by expectation expectations, so better economic valuations moving forward. we're all in favor of a trant transparent market and as much information possible in the

market in order to make sure that the market gets the right price. >> all right. thank you so much for joining us this morning, ceo of statoilhydro, helge lund. here in the u.s., treasury secretary tim geithner reportedly lost his cool at a meeting amid top u.s. regulators over their support for president obama's financial reform plan. geithner told his kournlt parts enough is enough. the meeting including ben bernanke, f did i c chief sheila bair and mary schapiro. geithner told them, even though regulators are seen as independent of the white house, the administration and congress set policy. christine. >> toyota motor reported a smaller than expected loss in the first quarter, in the april

to june period toyota posted an operating loss of $2 billion. revenue saw a 38% fall to $40 billion. the road ahead for toyota is looking less bumpy, though, after the company revised up its full year guidance. it now expects the full year operating loss to narrow thanks to the company's cost cutting measures. but senior managing director says his company remains cautious. >> translator: we're hoping the revitalized market leads to fundamental recovery, but it's difficult to make projections. that's why we increased our forecast of sales at home and less overseas sales have changed throughout the year. in tokyo trade, 4,030 japanese yen. ubs says its loss is appointing.

ubs says it's cautious on the outlook given its view that the recovery will be held back by structural weakness in government and consumer balance sheets. it intends to trim head count by around 7% next year. joining us more for those numbers from zurich, dir kb, i have a bee in my bonnet about this. ubs b, it cut back on investment banking activities at exactly the time when a lot of its peers were expanding or holding steady with those activities and as such, it hasn't had the investment banking profits like of goldman, hsbc have had to get them out of this mess. ubs, by downgrading its investment bank, hasn't made advantage of the upturn. >> wrae.

the problem for ubs is they completely mixed up their fixed income and they need to rebuild it at a space where the market is rebuilding and that is going to be difficult. they need to hire people for the activities which they want to continue doing and this will take a considerable a time of time and the management was talking about 6 to 12 months this morning & assume it might take much more than that. so they will not join the rally of the other investment bax for quite a while. >> it is true that the other banks have been benefiting from their government investment arm. why is it that ubs hasn't taken advantage of that? >> it has never been, really, an area of significant strength of ubs the entire rate since bond issuance business. ubs has been there, but it's negative been one of the

markets, either. the governments worldwide were concentrating the business on the banks which they probably believed were the strongest players in the market and these were, the names you just mentioned, goldman, deutsche bank, credit suisse, jpmorgan and some others and it's unfortunately not ubs. >> dirk, how much has ubs's legal problems with the united states been a distraction to keep them from fixing their fixed income swing? >> i think it's definitely an issue. i'm sure it's a factor that contributes to the asset outflows and contributes to the weak business that we've seen in the domestic/u.s. operations. i don't think it affects the investment bank so much, but it's definitely a big negative factor which might go away now after a lengthy period of

negotiations. we will see that on friday, i suppose. >> state and taxpayer involvement, is this enough to preclude them? while it was a savior ott one state, is it now a hindrance? surprisingly not. i was always thinking that government involvement was a hindran hindrance. apparently this is not the case. management said this morning that the government is wanting to get out of this as quickly as possible. i don't think the government has told ubs not to pursue the business in fixed income. i think it has more to do with how long it takes to rebuild the business. >> thank you so much, dirk.

>> thank you. >> whether it's ubs or a lot of the other stories, news, videos, blogs, anything moving markets today, find them all in one place, cnbc.com. still to come on the show, it's earnings galore. 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.

welcome back to "worldwide exchange," to our global equity markets now and we will start with becky in london. >> i was so excited, i almost actually choked on my own tongue. >> well, you're finished now. out to patricia. >> quite glad the camera wasn't on me there because i think my eyeballs may have popped out. i've now composed myself. 0.8% lower for this index. i guess no surprise to a certain extent that we are seeing a bit of a pullback today. yesterday we had new closing highs for 2009. i guess that won't be the case today, though. looking at the movers, banking stocks in focus today. barclay's appears to be having another strong day today. we heard from standard chartered this morning. they told us that their first

half earnings rode by 0.2%. beating expectations, in fact, but announcing fund-raising plans, as well. $1.7 billion approximately to help the small -- fund small acquisitions in australia. so we see shares of standard chartered, not standard life, but stt chartered down by 0.3. %. we've had figures coming out from liland financial. it's difficult market conditions persisting in that country. now out to patricia to find out was going on in germany. >> well, it is not looking too good. yesterday we had a new closing high. at the moment, what is holding up nicely are the insurers and

reinsurers. we had good figures coming through from munich re. s.a.p., merck and e.on are holding their own. margins disappointing today. bmw is down 4%. beirsdorf is down over 4%. bmw is looking into corporation talking to peugeot citron, which is interesting, a new one. also they continue to talk to daimler in terms of corporation not only about perhaps making the cars. fresenius, also under pressure. now over to adam in singapore.

>> thank you, patricia. it was a choppy trading session here in asia. these markets getting a boost from some of the commodity sent rick stocks following the dramatic rally. the oil stocks in south korea were pushed into the green. the oil stocks being in primary focus, the automakers in japan declined into the red today on the trading session, maybe due in part to the sales numbers that came out in the u.s. that indicated that all japanese automakers posted declines, but toyota's numbers beat expectations in terms of the first quarter and the company hiking its forecast for the fiscal year. different picture, though, for the south korean automakers. all of them posting substantial gains yet again today. they were the only asia automakers to post gains in the month of july in terms of sales. hyundai motor with the biggest

gains up nearly 12% on the month of july. on that note, back to the u.s. bertha, good morning. >> good morning, adam. here in the u.s., we have a couple of key data points on tap. we'll get personal income and spending figures at 8:30 a.m. income is expected to have dropped by 1.2%. spending is expected to increase by 0.3%. the core pce is estimated to come in at 0.2%. then at 10:00, we're going to get the national association of realtors june pending home sales index expected to have risk by 0.5%. the senate banking committee is holding a hearing around 9:30 a.m. new york time. sheila bair, dan squaw rill low are expected to testify.

on the earnings front, we'll get numbers from cvs caremark, dr horton and marvell entertainment, the guys that put together spider-man and x-men. after the bell we'll hear from kraft foods and electronic arts. coming up, the s&p closing above 1,000 for the first time since last november.

it's about half past the hour. here are the top business stories from around the world. in the u.s., tim geithner loses his cool. reports say the treasury secretary blasts fellow regulators for not getting behind president oh bam in's fm reform. >> and i'm steve sedgwick in europe. ubs is hurt by wealthy clients taking money elsewhere. >> here in asia, the world's number one automaker, toyota, rolls out a smaller than expected quarterry loss.

>> hello and welcome to "worldwide exchange" with. futures are pointing to a little bit of a breather, perhaps, at the open after the breathless run up that we've seen that has led the indices all to year highs since last november. the s&p having closed above 1,000 for the first time since before the electric. dow futures right now, down interest 48 points or so below fair value. nasdaq futures down about 10.5% and s&p futures off by about 6 or so. taking a look at the ten-year bund, we'll take a look at income and personal consumption this morning pt. we've got the ten-year yield at 37 6/2%. steve, even though we have taken a breather, it does seem as though everyone right now is getting back to the risk trade moving away from the safe havens. >> very excited, aren't they? although linda is just giving us

a pause for thought today, has done a good job of tempering our exuberance. the xetra dax is down by 0.9%. before today's session, it is up. since march 6th, 48%. and the ftse is up 38%, as well. right now, we're going to see the foreign exchange market. we did see it gaining grounds against the dollars. 1.4380 is where it's currently trading. christine. >> steve, here in asia, we saw a mixed finish. initial optimism coming from hopes of a v-shaped recovery in the u.s. expectations really kind of tempering off just a little bit. the nikkei the 25 is up 0.2%. kospi is up 0.09%.

the shanghai market is up 0.3% and the bombay sensitive 30 index trading down 1.2%. in terms of oil, nymex light sweet crude is off its highs right now, $70.54 a barrel. brent is losing ground, as well, $ 72.90. bertha. >> thanks very much, christine. with us for strategy has been dr. ewe. you are sir couple expect about this rally and i know a lot of people had been, but it seems as though sentiment has really turned here, particularly on the back of that second quarter gdp number and now this week obviously we'll be focussing on employment.

do you think if we get another employment report this should temper this optimism? >> i think it would. there's some talk of a jobless recovery. most forecasters think this will be a weak recovery, meaning unemployment will continue to rise and it will exceed 10% in the united states and it's at historical highs in the euro zone. so even if consumption and industrial production, some of the indicators begin to pick up, it may well be the case that they don't do so strong enough and were left with unemployment dragging down the recovery for the next year. >> j.j. burns, the president of j.j. burps and company also joining us this morning to talk to us about strategy. j.j., it seems as though either the bears have thrown in the towel or some of them have drunk the cool aid and are giddy about this market at this point. what is your feeling about the gains that we've seen?

>> i think when you look back and start to do historical comparisons and you have to go back to 1929, 1932, because this is clearly the worst economic crisis we've had since post world war ii. we haven't just had a market decline. we've had a credit bubble, which ultimately led to a real estate bubble which has now gone on to a consumer bubble. this could very well be just as bad as japan has had for almost a 20-year bear market. although i think the stimulus and the response to this is more actively pursued and positive in the united states. i just believe this is not going to be a sustained recovery. i think it's important to point out to most of the investors out there that if you've missed this rally, you've only missed about the top 10%, 15%. we feel that we need to wait around a little bit more to see

some level of sustainable recovery. we do not see that happening right now. >> but it's not 10% or 15%, j.j. it is 42% hit by march. by standing on the sidelines waiting to see real evidence of recovery, investors have missed most of the rally, haven't they? >> well, they really haven't. you're talking about from the very, very low area of the market. the reality is that i'm not seen sitting around in cash making less than is% because the real market has been had in corporate bonds. you're getting on par a good, direct correlation by sitting back to 14% and 15% participating in the rally that's going right along with stocks. and on the flip side, in corporate bonds, your bwa credit spreads have improved, but not

as much so to the levels of sustainable recovery. and you're getting double didn't returns in those areas. so i think that the risk reward favors bonds versus stocks. and by the way, keep your portfolio diversified. our exposure to stom stocks has been rather on the minute pal side versus having more than 70% of your assets in recoveries. j.j., this is lynd da in the studio. what is the ideal mix for you? do you make any geographical distinctions? >> we have started to engage positions in foreign bonds as far as our split between generally speaking between stocks and bonds, we're lgs than two-thirds on the bond side exposed on the following mixes.

tips, which is treasury inflation protection securities, government agency bonds, your fannies and freddies, relatively short-term, but we're getting called in on those securities, which is relatively positive. the next area is in corporate bonds, investment grade and finally a relatively smaller percentage 10% or 15% towards the high yield side. when it comes to the emerging markets side, we think emerging markets are way overvalue. the play was when things were armageddon price. you have things to the tune of 48%, 50%. now that we see that area now taking profits out fairly aggressively. >> j.j., hi. this is christine. to pick up your point about how you want to be more cautious when jumping into the equity markets, what you do you see?

what do you need to see? what i don't want to see is continued fiscal stimulus and i certainly don't want to see this is an artificial rally driven by inventory levels going up. to see sustainable continuity is to see the consumer accept up and get some consupgz going. i'm hopeful. i'm an optimistic person. i don't want to sound so gloom and doom. you're starting to get to unemployment data where you're going to start seeing those workforce people that aren't employment not being in those averages any longer. and i look at the underemployment status and the people that i service in the states are some ultra high worth and very high net worth and they pulling back in a large, gross fashion. so i don't see that recovery happening where the consumer is going to continue to endure this rally and make that happen.

>> all right, j.j. we'll have to leave it there, but we want you to stay with us. and linda, we want you to stay with us, as well, from oxford analitica. let's cross live to tokyo and check in on the trading day with asock ka kondo. >> hi there, christine. the nikkei 225 what it is hit a new ten-year high. fully, japanese interim earnings continue to give support, as well. but profit taking trimmed much of the market's early gains. boosted by higher commodity prices. shipping costs rise. yamaha motor tumbled 9.9% after

reporting that it expects losses to expand significantly this fiscal year. after the bell, toyota announced its business result. it suffered ads 7 billion group loss for the fourth quarter. but four the fourth quarter of 2010, the automaker now expects aed 40 billion loss. finally, the nikkei has learned that elpida memory will take on the graphic d-ram business of bankrupt german d-ram company kimunda later this month. the plan is to hire the engineers and fab cat the graphic dram. elpida once pulled out of this

field late the late 1990 it is. back to you, christine. >> condo-san, thank you very much for that. still to come, the donald is back. before ta, take a look at u.s. futures want right now, we're setting up for a bit of a preether. snoor

welcome back to cnbc's "worldwide exchange." here are some of the stories that we've been watching from around the globe. treasury secretary tim geithner reportedly losing his cool at a meeting of top u.s. regulators last friday over their faltering support of president obama's financial reform plans. geithner told his counterparts enough is enough. the meeting including fed chairman ben bernanke, mary schapiro and fdic's chief sheila bair. bair and schapiro have argued authority should be shared. geithner told them, even though as regulators are seen as independent of the white house, the administration and congress are the ones that set policy.

democrats dianne feinstein and republican susan collins have dropped their opposition. last week wbl the two said they would vote no unless higher standards were put in place. and meet the new boss, same as the old boss, donald trump and daughter, ivanka have fought off a rival bid from bondholders to regain control of casino trump casinos. the company filed for bankruptcy a third time back in fed. trump and beal bank plan to take the bank private. anz has agreed to pay $516

million to help pay for rbs's asian units. the deal gives anz access to 54 branches across asia with $3.2 billion in loanes and $.billion worth of deposits. a fl z plans to generates benefits from them since 2012. >> we expect tack sigz to be on a cash basis earnings per share are created from 2011. and we feel that is very achievable. in terms of the multiple to book, we're very pleas pleased with that multiple. i think it reflects market conditions which are changed considerably over the last few months, indeed, over the last

year. >> well, anz closed up 0.6%. in sydney of australia, this is how they're trading up in london, up 1.5%. steve. >> ubs says it's loss is disappointing. st swiss bank was hit by $37 billion worth of outflows in its wealth and management division. ubs says it's cautious on the outlook given that its recovery will be held back in structural weakness in government and balance sheets. it intends to trim head count by around 7% by next year. let's get a find thought in our guest hoe. now, it's not like the -- but did the party go on? >> i think we might drink more, but it depends on what we drink. from the guests we've heard today, i think a lot of the

investors recognize that. if, however, the rally continues to be led as it has been over the last day in the s&p index by dealers and by energy, i think that that there is some basis for infrastructure spending going forward and for sustained demand from emerging markets. so i think that part is relatively soaper. the other leader in the s&p financials is financials. and they have deny pretty well. as we also heard from the other guests today, this profit is not necessarily based on high revenue growth and so i think looking ahead, we have to be a lot more cautious in terms of that sector. but let's face it, they fell a lot, so they're probably pretty good buys. >> linda, thank you very much for joining us. u.s. "squawk box" follows "worldwide exchange" for viewers in europe, asia and the united

states. carl is trus here from capitol hill to tell us what to expect. >> we have, steve. we've doing the entire show live. this is where government officials, baseball players testify in front of congress in rooms just like this one. becky is already -- becky is already -- can you pull out and see her? she's here and ready to start questioning. we're going to be doing the grilling today for everything from health care reform, cash for clunkers. our lineup includes senators from both sides of the aisle. including jack reed, judd greg, kent conrad. it's a pretty high-powered lineup, isn't it there? >> there is. we'll be talking about health

care, cash floor clunkers and on so on. >> becky is not miked, but you'll be able to hear her later on. >> senator kernen? >> are you ready to do this? >> do i have any choice? >> anyway, it all begins at the top of the hour. we'll see you on capitol hill at 6:00 a.m. eastern. >> you guys are having way too much fun already for a business show. thanks very much, indeed. we'll see you at the top of the hour. >> which one would be president? with more ahead on this show, week going to take a look at pending home sales, personal income data and what they will tell us about the health of the economy.

j.j. burns has been with us this past hour. j.j., let's look ahead today. we're going to get data on personal income and spending, and then we're going to get the housing numbers. maybe we'll see once again

pending sales looking better. what does that tell you in terms of where the consumer is headed here? >> well, from our figures, right now our round table in our office, we see that the consumer continues to save more money, which is upwards between 3% and 4%. interesting, though, about ten years ago when we see an economic sxang, we saw around '56, 57-year-old baby boomers spending in their peak earning years. when you pull those baby boomers at that age category, they feel like they are glowsly behind in saving and they really need to catch, you know, an advance in that area. >> and the other big number we're watching for this week is the adp jobs report number. are you anticipating we're going to see unemployment continue to tick up here? >> i think unemployment

continues to tick up and i think it's going to start escalating a little more. the real figures will be the under employment figures because we don't see people getting back to jobs and i think there's still this expectation that there's something better coming down the pike. there will be much more coming forward in the coming months. >> thank you so much, j.j. burns, president of j.j. burns. have a great day. take a look at the futures. we're headed for a bit of a pause here at the open. that's it for today's show. i'm berlth ya couples in the u.s. >> i'm steve sedgwick in europe. >> and here in asia, i'm christine tan. thanks for watching "worldwide exchange." i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents.

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. >> is a special presentation of "squawk box." the political issues that matter most to your money. "squawk box" is in session, a special hearing begins right now. good morning, everybody. welcome to "squawk box" right here on cnbc. i'm becky quick along with joe kernen and carl quintanilla. we are live this morning in the hearing room for the senate's energy and signal resources committee. we are traveling down the northeast corridor this morning to the nation's capital. we'll looking for the real story on everything from health care

reform and the debate. what's happening on the economy and cash for clunkers? we have a great lineup for you today. we'll be speaking with political strategist morris reed and new hampshire senator jean shaheen. then coming up at 8:00 eastern time, this is a rear opportunity to sit down with six senators at one time. we'll be having 6% or the senate right before us. on the list today, democrats including kent conrad, jeff bingaman and jack reed. we'll have judd gregg, lamar alexander, and kay bailey hutchinson. there's a lot hal happening here. as the senate has to tackle cash for clunkers, they've got a lot of things on their desk this morning. >> we are in the dierkson senate

building. i don't think any live television program, other than the hearings themselves, has ever come out of this room. >> hasn't been done. >> and they didn't know what they were in for because already we figured out how to use the microphones. >> i like -- the teleprompter is so far away. if we say something that makes no sense, it's because we're reading absolutely no idea what it says. what about if it was 6 members host house? 1.3%, i think. >> and then we're going to move down here where we're going to have some senators up here and i hope they start asking me questions like they did those poor banking executive peps. >> well, also, boone pickens has testified here severales