here in new york, markets taking a breather. commodity stocks and banks seeing -- >> in the u.s., state of wall street's rally could hinge this weekend on data on the consumer and the outcome of the fed meeting. welcome to cnbc's worldwide exchange. we'll start out with a look at the global session at the beginning of the week.

down six points. good session as we heard in japan in japan in particular today. nick kay off ten-month highs. one hour into their trading week taking profits from the ten-month highs we closed in at on friday. household goods, construction, weakest sectors at the moment.t. dollar is trying to retain most of its gains. lost a little bit of ground to the yen.n. still 97.40. ua dollar 141.89. bank of england's meeting last week and u.s. selling 85.33. nice to see you. >> hey, nice to see you, too. hope you had a good weekend. in asia, nice start to the week. duty optimism of the u.s. jobs on friday. fueling optimism. u.s. could lead the world into a recovery.

that is providing support to the markets. ten-month high.. rise in machinery orders. first time in four months it's helping to support sentiment in this market. hope you had a good weekend. >> i did, christine. thanks very much. this is shaping up to be a very busy week. the fed starting ail two-day

meeting tomorrow.w. we'll get lots of data on the consumer and number of retailers reportings earnings and a very nice read on where things are going. dow futures down 17 points below fair value. s&p futures under water at this hour. no economic data at this hour. but it will be a big week. we'll be getting economic data in the euro zone. taking a look at the ten-year bund. 3.49%. that is up from last week. we are seeing a little risk-taking this week. the ten-year yield at several-month highs, at 3 apost.87. taking a look at gold, up a nickel at 9.54.

n nobel laureate paul krugman is warning a full economic recovery will take at least two years.. >> right now the world as a whole looks like japan in the early '90s. not catastrophe. but we don't know how we get serious growth going. the possibility of years and years of sluggish growth, major excess capacity, high unemployment, very, very large. >> so are a lot of folks in agreement? joining us is the editor of www.universe.com. paul, let's start talking about this. a lot of folks feel like we have turned the corner. maybe the worst is behind us. but that doesn't necessarily mean that we should be breathing such a big sigh of relief about what lies ahead. is that your feeling?

>> i think that's exactly right. i would agree with what professor krugman just said. we are early into the stages of reacting to probably what has been the biggest credit bubble or debt bubble in the history of humanity. so it's quite early days to say that everything is back to normal or getting back to normal. i think it's important to remember that the government and central bank have used up all their ammunition. interest rates are down near zero in most major economies. programs such as quantitative easing haven't had much effect in reducing bund yield, which i think was the main objective. that said, the man on the street in most countries is looking at the affect of the stimulus packages. people can see spending cuts or

taxes, or a combination of both. whether it's spending cuts or tax rises or a combination of the two, we've got caught a deflationary outlook ahead of us. i would caution saying the worst is behind us. it's possible we have arn extended period of slightly negative inflation rate and quite major implications for the markets. >> however, wouldn't that then argue for more quantitative easing and more stimulus if it looks as though things will be rather tepid? because that's what has gotten us to the point of stable swearing, couldn't that continue to spur growth? >> i think that's what governments will continue to do. we saw the bank of england extending its quantitative easing last week. if you look at the u.k., bund

yields haven't moved very much. sterling, if the intention was to reduce the value of sterling a bit, that hasn't worked. it's actually up against the euro and the dollar since then. quantitative easing is managing bund yields to some extent. at the same time, if it is due to have the desired effect of convincing people that the worst is behind us, then bund yields will probably rise natural anyways. it's arguable this has any effect at all. i don't really see that this is -- i can see where the policymakers are coming from. bernanke and the u.s. flagged several years ago he would do this if conventional stimulus measures didn't work. but i think it's very arguable whether it's having any effect at all. >> paul, this is christine. asian markets getting a boost on the jobs data. perhaps assuming that the u.s. could lead the world into the recovery. it sounds as if you don't agree

with that? >> no. i don't think so the u.s. will lead the sborld recovery. there's a question if the emerging markets in asia can generate enough domestic demand to see economic recovery in their borders. i think the longer term, that's probably going to happen.n. but it's a very tough adjustment for china to make, given their whole industry model has been based on exports for the last few decades. in japan, maybe you could argue because they've had 20 years of this deflationary background that they are further ahead. they have less leverage in the banking system and among major industries. perhaps they're in a better position than say the anglo-saxon economies. those expecting an export-led recovery based on u.s. demand, that's a pretty optimistic outlook. >> who will lead the recovery,

you think the chinese might be the ones? >> i don't think we have going to have a major recovery. i think we've seen an inventory rebound over the last six months and the effect of interest rates slashed to zero. we've seen some effect from government stimulus packages like what we had in the car industry in the u.s. and the u.k. those things have to have their limits. governments have to fund spending increases as well. i don't want see how they can do that indefinitely. as deflationary expectations sets in, which i think is quite the likely outcome, we'll have another let-down in global demand. i don't see that rebound on the horizon. >> let's say your thesis is right. it will take a few months or until the end of the year before we discover whether you're right or not, won't it. >> yes. >> in the meant, the rally could continue? >> it could easily continue. i don't want to make a forecast

for the markets between now and the end of the year. if you look at what's happened to japan, it's a pretty good indication of what might happen. you had several years of positive return. we were down 75%, 80%. >> what do you do as an adventure? >> if you think deflationary outcome is a possibility, stick to cash, shorts, maturity government bonds in high quality markets. that's easier to say than to find. a lot of governments are having credit problems. possibly precious metals as well. they have done extraordinarily well. cash, short maturity, high quality bonds and precious metals will be the obvious classes of choice. >> all right, paul. we are now going to bring in robert howe, the ceo of geomatrix into the conversation.

we are told your signal is now good.. thanks for joining us, robert. what's your thought on this? are we turning the corner as far as economies? do you see any growth? are you in line with paul krugman and others, that things are still tenuous? robert, i guess we're having a little difficulty here. not hearing anything at the moment. sometimes the gremlins get in the way. paul, if indeed you think things are going to be worse at this point, are you seeing a double dip then in terms of recession? is that why you're so anxious to stay in cash? >> yes. i think double dip is quite possible. i don't know about gdp figures for this year. some people have suggested we'll see a positive gdp for the second quarter and possibly the

third quarter. looking forward to next year. i think it's quite likely that as people begin to factor in that these government stimulus packages are not having much of an effect, then i think people will hunker down, start to save more and react to the fact that they may be facing tax rises and public sector spending cuts in the future. so they'll make adjustments for their corporate and personal balance sheets. that will cause gdp to shrink again. >> it's a rather gloomy forecast, but i still thank you for it. thanks for joining us this morning.g. let's hope we can get back to better news at some point.t. our thanks also to robert howe, making a good effort. sometimes the gremlins get the best of us? >> talks between switzerland and the u.s. tax authority have

reached a stall. according to the swiss newspaper, the bank and the irs cannot agree on how quickly data should be transferred to america. a judge decided the two parties can continue negotiations until wednesday, at which point he plans to hold the next stat uus call. a trial tentively set for august 17th. microsoft dished advertising firm razor fish. they beat off rivals to secure the field. this will help boost its shares of advising on the web. around 55% of the purchasing price will be settleed in cash with the rest in treasury shares. >> ross, in japan, data this morning showed call machinery orders surged 9.7% in june, upper passing expectations for a

2.9% gain. but japanese manufacturers expect orders to fall in three months to september from the previous quarter. they suggest that companies are still wary of expanding their production capacity. meanwhile, the bank of japan kicked off its two-day monetary meeting.g. they are expected to keep rates at 0.1% tomorrow. the dollar-yen is down 0.37%. china has accused rio tipto of spying, resulting in local steelmakers being overcharged $1.2 billion of iron ore. according to chinese officials, it related to buying off and gaining things by deceit. rio said it did nothing

unethical. four rio tinto employees remain in detention and have yet to be charged. rio tinto shares, this is how they're trading in australia and london, in sydney, trading down 3.4%, and in london as well, down 2.95%. bertha? >> christine, former treasury secretary paulson spoke often with gold manual sacks, his f m former firm in the financial crisis last year, raising questions about ties to that former firm. "the new york times" says paulson talked to goldman more than other firms. the government was a major rescuer of aig. treasury said they never gave paulson any special treatment.

birkshire hathway's second quarter got a big boost from its holdings in american express and wells fargo, which had shares both rise 70% of the quarter. operating earnings did miss forecast, reflecting lower insurance underwriting and the effect of manufacturing on the consumer business. its shares are up nearly 27% in the past month, trading back above that $100 a share watch. if you want to know more about warren buffett, check out buffet watch. one of the most popular ones on cnbc.com. you can get up-to-date information there as well. ross? >> great resource. still to come on today's program, don't expect a phoenix-like recovery so says paul krugman.

china state secrets watchdog accused rio tinto of commercial spying.. and shoppers take center stage. we'll assess whether july sales data could decide the fate of this current stock market rally. 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. deaf, hardhearing and peopith speech disabilities .

stock market reallies continue in asia. it stalled a little bit in europe. we'll have our team of reporters. plus, tim hughes, from head of sales training at imex.. >> volume holding up. perhaps predictable. modest sell-off so far. below the 4700 mark. i think the main theme is there is not any great or profound news flow driving the market.. seen a modest sell-off below 4700. >> a couple of stocks, reports that lloyds may want to tap into the market on rights issues.s. anything reacting to that or not? >> no news, i mean no formal company announcement. the rumors very much driven by

newspapers and the wires reporting as you say lloyds may be looking to raise 15 billion pounds. it hasn't been well received by investors today. lloyds shares down 5 4 to 5%. if it can raise more capital from shareholders, it will be less reliant on the government. in theory, it could be a good news story. but investors not relishing to reach deep into their pockets. >> when you look at your clients' positions at the moment, do you think people still want to play this on the long side? >> i think so. there is understandable concern given what markets have rallied recently. i think we'll that in the absence of any concrete news flow. it's reasonable to expect modest corrections. fundamentally, you have a lot of investors who had a fairly torrid year or two and are

ultimately looking to back the economy and get long again. very cautious not to be caught out with a sell-off that may be happening. we're hearing from central banks. they're very much sounding a note of caution. there's a sense people do want to support this rally. they're not going to go full steam ahead because of the risks involved. >> just to remind you, we did speak to lloyds and they said they're not commenting on these newspaper reports. patricia has the latest in frankfurt. >> a rally of 2.5% last week. on the volume side, very much the same story as in london. 13.8 million shares have traded to the down side. it seems the gains we have seen over the past four trading weeks are being held on to. the financials and the more secure stocks, defensive stocks,

trading up at the moment, bucking the trend. big emphasis on the down side for the carmakers, volkswagen down 4%. the market is reacting. also to a voice coming through from morgan stanley regarding daimler, downgrading that stock 3.4%. for the shares, they see earning risks for 2010. they think that the valuations started to look a little bit stretched. they think for the entire european cast sector, 20% down side risk for the targets. for daimler, 30% down. not a very positive note on the car sector. interesting story coming through from highdleburg. they're coming through with numbers. they did announce they did secure a credit line of 1.4 billion. bank of america and merrill lynch upgraded them from

underperforming to neutral. that stock is rallying 7.2%. as far as my index is concerned. over to paris. >> we've got also some action in the french markets. after the strong set of results we have from french companies over the last few weeks, this new major publication expected this weekend. the cac is down 0.7%. the publication industry up 3.5% after the acquisition of razor fish from microsoft. a very achieve price tag. microsoft paid almost $2 billion for the same company two years ago. with this acquisition, they are going to reach its target in

digital media one year of schedule, doing 25% of its business on the internet. they say that the company has created a huge gap between the because of the communication industry is is clearly on the internet. microsoft will be one of the main holders with a 3% stake in the economy. over to singapore with a view on the asian markets. >> the rally here owed to the better than expected u.s. jobs data out on friday. the nikkei hitting a ten-month high. that market closing up 1% higher. we have the core machinery data out. that jumped for the first time in four months, 9.7%. that was better than expected. the forecast is still fairly weak for the current quarter. it shows we could continue to see a cutback.

the exporter stocks also doing very well. that had to do with the currency moves. the dollar-yen surged 2% on friday and held fairly steady today. toyota up 1.5%. a report it's said to raise output in the next year. sales picking up as well. as for the greater china region, late day really for the hong kong market. the hang seng up 2.7%. the rally led by chinese banks. there are expectations we could see an earnings upgrade. also latest data showing that the nonperforming ratio is down. that bodes well for the banks. we saw good performance there. nou now over to bertha in the u.s. >> investors will likely focus squarely on economic data this week, retail sales and inflation

and the fed's policy meeting which wraps up on wednesday afternoon. no data today. the earnings calendar is a bit light as well. we'll get numbers from the likes of dish network, priceline.com and the other cisco, the one that distributes food. a federal judge holding a hearing at 4:00 p.m. new york time with bank of america over bonuses paid to merrill lynch employees. and president obama is in mexico for a one-day meeting with the mexican president and ca the canadian prime minister. the so-called three amigos summit is expected to focus on trade. and talk of the swine flu epidemic, with cases expected to wrap-up this fall. >> china accuses rio tinto of

stripping more than $100 billion by spying. plus -- >> are inflation fears overdone? we'll have the latest figures from the bank of england to come as well. at 155 miles per hour, andy roddick has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free".

i'm christine tan. in asia, china accuses rio tinto

of costing chinese steel mills more than $100 billion by spying on them for six years. >> in europe, stock markets take a breather. commodities and banks are weaker. >> i'm bertha coombs. in the u.s., the fate of wall street's rally could hinge on the data on consumers and the outcome of the fed meeting. >> you're watching cnbc's "worldwide exchange." it's a mixed session. the ftse reflects that, down four point. remember, we closed up at ten-month highs on friday. no surprise to see a little bit of profit taking. no major sort of news drivers in terms of the bigger picture. the ftse 100 down half of 1%. the cac down a little bit.

resource stocks one of the biggest losers. the dollar managing to hang on to gains from last week. euro-dollar below 1.42. >> hey, ross, good to see you. here in asia, the u.s. jobs numbers give markets a big boost. a big jump in machinery data. that spurred the nikkei to close at a ten-month high. the kospi up marginally. the shanghai down 3.4%. the hang seng getting a big lift on u.s. strong jobs data. and the sansex trading higher at 0.2%. a pretty lackluster session. the big jobs data on friday did give the sentiment here a big boost, bertha. >> it did here as well, chris

tee teen. four straight weeks of markets going up. investors will get a breather. we'll get a lot of economic data on the consumer this week and then there is the fed. more or less flat. dow down 15 points and nasdaq modestly below. looking at the ten-year, another round of big auctions. $75 million in three-year and ten-notes. there will be an announcement on the buy-back program on treasuries. some saying they will end it at the end of september. something to watch for. the ten-year yield at 3.87%. we have the senior european economist at deutsche bank. let's start off with the fed. we did see the boe last week

surprise everyone and extend quantitative easing. what are we likely to hear from the fed? >> it's true judging by the latest data, the fed has more resume to maneuver. i still believe they're going to stay on the very coacher side. much in the way that the bankoff england behaved last week. much of the improvement in the u.s. has to do with the policies right now. there is the catch-22 situation. the better economic data points to change in the monetary policy framework. at the same time, the people of the fed, just like the boe, know

it's because they've been extremely generous in their policy we are seeing the improved economic data. i don't think the news we've had so far can change dramatically any central bank, the bank of england or the fed. >> as far as the consumer is concerned, we'll get a lot of information on the government's retail sales and earnings and michigan consumer sentiment on friday. is there still a disconnect between some of the numbers, the payroll numbers better than expected and the real economy where consumers are still very hesitant? >> confidence numbers are always relatively volatile and disconnected from the hard data simply because perceptions are often at odds with the actual releases. i would say gradually we should

see some feeding in from the better news coming in from the payroll data. for instance, feeding into consumer confidence. simply because people see that the situation of the local markets improving. at the same time, we must not get carried away by the figures we had on friday. of course, it was good news. it was better than expected. for instance, a lot of the decrease in the employment rate, came from discouraged workers. we would expect some improvement but nothing dramatic again. what we're seeing is less a case of ri session or downturn but outright improvement right now. >> here in europe, i guess the big data this week will be the flash gdp we get on thursday. what's that going to tell us sort of about the pace of recovery? how good relatively speaking

might it be? >> basically i would expect this figure to show that we were in the second quarter in the situation of ordinary recession. away from the kind of catastrophic recession as the beginning of the year, something at 0.4. if you look at numbers from germany and france, the latest data in may and june were quite all right. approximate even if there was a disappointment in germany. at the quarterly average, nowhere near the catastrophic downturns as the beginning of the year. we really expect the second quarter to come out, let's say marginally negative and preclude a marginally positive rating for the first quarter. i don't think we should get carried away. there are chances to see a positive number in some countries of the euro zone in the second quarter. we had a number of very

exceptional factors helping in the second quarter. we have this extreme disinflation which helped consumer confidence. we also had the cost-cutting extreme which helped a lot in france and germany. i think we'll all be relieved if we come out with something for the third quarter. we have to remain extremely kosher. the outlook for investments remains very negative. we will lose the support from these exceptional factors in the second half of the year. we are not out of the woods yet. >> yeah. not out of the woods might be something that some newspapers in the u.k. and the bank of england will come out with their inflationary report on wednesday. the bank of england downgraded its forecast. still going on about the risks of a deflationary entiral. what do you think of that? >> i don't think it's likely.

when you look at europe, it's very much led by what's happening on the raw material, not core inflation, edging toward negative readings, which is quite a relief. when you look at the situation of money aggregate, deflation just like inflation is a monetary phenomenon. we've had a very positive boost from this extreme inflation phenomenon. i don't see a normal inflationainflation ary spiral. it's not a full-blown deflation. >> thanks very much for that. shares in rio tinto took a

hit today. that after china's state secret agency accused the company of spying for six years. resulting in local steelmakers getting overcharged $100 billion for iron ore. let's get out to the chief investment strategist joining us out of hong kong. how would you classify the way the chinese look at spying? >> it seems that in china the definition of economic espionage is quite broad. and it can involve even reportedly publicly available information in situations when it is significant for economic development. moreover, china seems to be

applying the loss selectively as we saw in the case of goog kefl whose website was shut down for spreading pornography with chinese companies having similar practices. china seems to apply laws which wh it's convenient for us and will raise serious issues for foreign companies investing in the country. >> will it have a meaningful impact on foreign investment to china and make particularly private companies pause for thought? >> i think they will pause for thought. especially ones that think of longer-term horizon. privately owned businesses, maybe european companies that don't care as much about short-term revenue growth. it is a huge market, growing very fast. it will remain attractive for companies, in particular those that really care about quarterly

reporting. so investment into china will continue to grow. maybe not as fast as it would if china was more predictable. but still it will expand. in particular are countries that trade such as australian miners will not be scared away. they sell the iron ore and get their money. they don't have a very long-term commitment in a very direct sense.e. so i think the impact will not be as huge as it would be in the case a smaller market. butch it's more dependent on foreign capital. >> so essentially you're saying china does it because they can. what is the end game for them here? what do they get out of it? do thank this is a good tactic for them to bring down that negotiation price?

>> it's difficult to say at this point what their end game is. it's quite likely that china will continue to buy iron ore from recession market. but may be increasing the share of imports versus what they are buying from australia or what they are purchasing from rio. but at this point, i don't think in terms of steel price negotiations this is going to be helpful or having a meaningful impact. in the long run, it is good for china to simplify their state secret law. even if they made it more restrictive but at the same time clearer, this would provide more transparency for foreign investors. >> this is christine again.. a lot of concerns in china about

liquidity bubbles. a whole slew of economic data. could any of the date points provide more worries about further monetary tightening in china? >> definitely they will. because lending in july is going to slow very sharply. new loans will amount to only one-third of those expecteded i june. the equity market already discounted that. the base effects will mean from july onward, inflation in china will accelerate. and this will gradually shift policy emphasis towards tightening. i expect in the first quarter of next year, the official lending and borrowing rate will begin to be increased. >> thank you very much. good talking to you, as always.

chief investment strategist, sjs markets limited. from china, let's switch gears and head to india. ayesha joins us for the business report. >> it's been a volatile monday. asia was holding up. started off on a positive note. within minutes of trade it slipped down. around the 4500 level. just marginally holding. that's the case for the broader markets as well. what's dragging the indises down is the monsoon worries, which still hasn't picked up in certain key regions of the company. you have a couple of monsoon sectors. big draggers today. unilever stocks one of the losers today.

what's gaining on the flip side is the entire i.t. sector. they are maintaining a good 6% gain right now. of course, pharma is holding up pretty well. in the meant, talking about monsoon, the worries clearly continue. they have actually stayed down the long-term forecast to 80% from the previous 95%. that as the market is watching. meantime, the swine flu death toll has risen in the country. in fact, it's gone up to six, with two deaths reported this morning in all. so that, of course, is bringing a flurry of activity with the entire pharma pack.

all of the pharmaceuticals today doing very well, in fact. >> let's switch from mumbai to the latest in the middle east. >> hey, ross. since i was last on the program, somewhere around mid-july, can most of the markets have been edging higher, with the hopes that the regional and global economies are on the road to recovery. as we focus on dubai, even though it closed down yesterday pretty much flat. it closed down less than a se t accept of a percentage point. we have seen an uptrend in the markets. stocks closely up over the last six trading sessions. that is due in part to several reports from real estate consultancy firms.

even though numbers go up, they'll do so at a much slower pace and prices stabilizing in the fourth quarter of the year. all of these impacting stock numbers. carriers in the region are faring a lot better than euro europe european, u.s. or asian count counterparts. in june, demand rose compared to june of 2006. profits by air arabia is reporting profits up 10% for the second quarter of 2009 over 2008. even though these figures came in lower than analyst

expectations, they're still in positive territory. back to you. >> okay, nadine, thank you. malaysia's prime minister is optimistic about his country's prospects. in a cnbc interview, he said he expects southeast asia's third largest economy to hit a growth rate of 6%. but he didn't specify when. >> i mean, i've been talking about a new economic model. how to transform malaysia from high-middle income to high-income nation within a certain span of time. therefore, i'm looking for a higher growth rate for malaysia. >> how high, how fast? >> i'll be happy if i can get 6%. i know it's a tall order. we'll work very hard to achieve that. >> there are signs the economy might be bottoming out. industrial production in june registered its slowest pace of decline since november last

year. here's a look at how malaysian currency is doing, 0.05% to the dollar right now. >> the liquidity position is pretty weak of vand der moolen. the company saying it lost over $12 million off revenues of 35 million. trading in shares has been suspended. >> freddie mac reported a profit in the second quarter technically. its first in two years, reversing a loss of $10 billion in the previous quarter. if you include dividends paid to the u.s. government, the company still posted a net loss. freddie mac said it may not need any more federal aid, at least

for now. the lender received $51 billion. the company said while there are signs of a recovery, it's still being cautious due to rise in foreclosures, tight lending standards and buyers' overall reluctance to reenter the market. >> whether it's news, videos, blogs, anything you can find them all at one spot, cnbc.com. bertha? >> coming up, as they used to say in those commercials, sw schwab, the old-fashioned way, he earned it. should bernanke keep his job? >> are we seeing a change in tide on the currency markets? good data last week boosted the dollar with more risk appetite.

okay. on the currency markets, how significant was the move on friday? remember, we saw stock markets rising.. the dollar indoze rose by 1%. the dollar-yen, 97.35.

joining us a senior strategist. particularly notable what happened on friday. the dollar rose on good news and the stock markets rising as well. was that a one-day phenomenon or have we broken down the k correlation between the stock markets and the currency markets? >> the market is clearly discussing the time of the fed's exit strategy. we have seen that the money market spread in between the dollar and the major other currencies have firmly moved in favor of the dollar on friday.. as the market is now already expecting 25-base point hike by the end of january 2010. clearly, earlier than still at the beginning of last week. if we see this optimistic on the

exit strategy persisting, we clearly believe the kor calculatilagz has broken down and better data for the u.s. dollar. >> what is it the that dollar bulls will need to see that run? the auction, the three-year, ten-year and 30-year? what about those numbers? >> the fed, how they will really pound in its statement the increase in optimism. i think that's certainly one of the key factors. clearly, at the same time, it is a fine balance, which the fed also is running. given that clearly too much optimism in the statement would be a factor, which probably would undermine demand for the

treasury auction. certainly, disappointing auction results could also be seen as dollar negatives. generally still we believe that overall a dollar or firm u.s. economic outlook and retail sales on thursday should be seen as dollar positive.. >> michael, this is christine. we have the fed meeting this week and the bank of japan meeting this week. how will this impact dollar-yen? >> i think given that in recent weeks the dollar weakness and the yen weakness pretty much balances, consequently, we did not see a clear trend in dollar, yen. still, the yen clearly was weakening. with the changed pattern on the dollar, we believe that clear there are upside risks to dollar-yen. that, again, dollar-yen should

be one of the cur erencies benefitting most from strong u.s. data. >> all right, michael, we'll have to leave it there.e. right now, we're going for a quick break. coming up next, we will bring you up to speed with all the top stories across the globe. >> plus, can we buy into a consumer-led recovery? a look ahead to u.s. sales data and numbers from walmart.

i'm christine tan. china accuses groebl miner rio tinto of costing chinese steel mills $100 billion by spying on them for six years. >> i'm ross westgate in europe. stocks are weaker today along with financials. >> i'm bertha coombs. in the u.s., the fate of wall street's rally could hinge on consumer data and the outcome of the fed meeting. if you're just jing oining n the united states, welcome to the start of your day and week from "worldwide exchange." we broadcast live from the u.s.,

europe and asia. in the u.s., futures are flat. dow futures down ten points below fair value. a lot of data this week and that two-day fed meeting. we'll hear from walmart and macy's this week and getting michigan consumer sentiment.t. and get cpi, how the consumer is being impacted by inflation. looking at bund yields, on the back of better than expected payroll numbers on friday. we did see yields move higher. the ten-year bund in germany trading at 3.49%. looking at the 10-year yields on the ten-year note in the u.s., at two-month highs. 3 apost 3.86%. down over the last hour. we'll get a lot of issuance this week, three-year, ten-year and 30-year notes. ross, a lot to watch. usually, you think we can take

it easy in the summer. >> that's the great misconception. everybody puts their feet up in the summer. doesn't happen. global equities are mix memixed. european stock markets finishing a ten-month high on friday. taking something of a breather today. fairly slim losses at this particular moment as we look toward the u.s. open. the ftse 100 down a little bit. and a little bit more for the cac. on the currency markets, perhaps one of the most significant things that happened on friday was we broke the correlation between the stock markets and the currency markets. dollar index gained 1% sdpat de the rally in the stock market and gained on the back of better

than expected news in the jobs report. the question now is, the dollar-yen hanging on. euro-dollar slightly firmer. >> ross, that jobs report gave markets here a boost. a lot of talk that the u.s. can possibly lead the world into recovery. the nikkei up. a jump in machinery orders helped to lend support to this market. the kospi up marginally. the hang seng down 3%. cpi, ppi and retail sales up this week. lots of talk about that utz jobs report as well as sent imt.

in terms of nymex light sweet crude, come off highs reached on friday. approximate $72.48. right now pulling back a little bit, down 11 cents. and brent is also down as well. should be in line with what nymex is doing.. well, almost. it's flat. $73.59. >> christine, believe it or not, two years ago this week, that french bank had losses, beginning the mark of the credit crunch. we have seen promising results from the banking sector this quarter. many chiefs in the financial sector believe there is now life at the end of the tunnel. >> it's getting easier and easier to see exactly how it's going to play out. we are expecting a difficult second half of the year in terms of provisioning. that's part of our plan.

>> if the normalization of the 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. >> we have to be careful that we don't get too optimistic in terms of where we are. realistically we look at the run-up in the capital markets. what just happened has taken us back to the 2008 year end levels. >> it's not yesterday's story. having strength to exploit market opportunities going forward is very important. >> in the light of the recent sma stock market rally, what is the outcome? ralph, i mean, part of this rally has been better than expected numbers from the banking sector.

so is the worst behind us? where are we now? positive comments but all tinged with a note of caution. >> i think it's safe to say we've hit the bottom for about three-quarters of the banks. there's still about a quarter of the banks out there. these are typically banks that are heavily invested in retailing banking. they're still probably in trouble with three-quarters of the banks around the world. one-quarter are in solid shape. i don't expect them to have a v-shaped recovery. it will a long recovery until we see retail do a recovery. >> we also had this report today as far as lloyds in the u.k. is concerned, the chairman might be pushing for the banks to go up 15 billion from the stock market, keep down the costs of insuring. they refused to comment. what do you make of it? >> lloyds would have a bit of a problem getting more money from investors and be better suited to get more money from the

government. i don't think we would have a choice to fund them. they're too heavily retail oriented. it's not safe to invest in an organization that isn't diversified, especially considering we have plenty of organizations out there like hsbc and barclays that are diversified and are far safer bets than lloyds at this particular point. >> let's bring you in here. how much of the financials have played a part in this rally that we've had? and how much more can it continue? >> well, i think it's huge. look at the banks from this they're coming. barclays had a 7% rise. did you think they would get down to that level? it's the investment banking side that has done well. the retail side is awful and still awful. this is what was upsetting people about bonuses.

a huge story in america on overdrafts. two or three checks bounce, can each one you make, $35 or something. i think the retail side is really bad. you'll still see more businesses fail.. from that side of the banks, that's bad. but the investment banking side, deals are going through. they're saying more deals are going to come through. that's all going to benefit them. >> i want to ask both of you about the regulatory environment given what we're seeing. if the retail banks are still in trouble, are they justified for not lending as much as a lot of people would still like to see them? >> what i think they're doing is shoring up their tier one capital and more worried about their bottom line than they are about lending to people. also in our markets, mortgage lechb lending, that would help the property markets. still talking of deposits of 30

to 40%. nothing is safe at the moment. pouring people into different sectors. some of which they've never been to before. that's a difficult environment as well. >> one of the issues is the government is a bit schizophrenic. they've told banks, increase your capital reserves and safety margin. a week later saying, lend out more. put more money out of the banks. the banks are trying to increase their safety margin. you have to agree that's what they're going to do. for that to happen, they have to make money. the days of cheap banking are done. we'll have to pay for our services for now on. simply because these banks have to make a profit and increase their margin, their safety margin. or else government and the public are going to have to support these for an extended future.. >> what about the investment banks? it almost seems as though they've made it out of the

woods. now it's back to businessals usual. a lot of people reaccecenresent. >> the banks currently operating have had two years to reduce their staff and significantly increase their officials ratios for the investment banking practice. so the deals that are out there, they're actually making more money per deal than they used to a mere two years ago. the third thing is we want visit banking to do well. that means that large organizations, typically large organizations are looking for more money and doing that because they want to do more investments and hopefully hire more people and drag us out of this recession. i think it's a very positive sign that investors are doing well. >> the other point is you've separated out the banks. jpmorgans and goldmans are doing

well. you have the top line banks that never wanted the money from the government in the first place and a lot of also-rans. interestingly, you saw last week, looking at maybe not using the banks but doing in-house corporate work. they're saying the banks are taking too much money. a lot happening over the next few months. >> ralph, this is christine. if you had to be an investor in the banking sector, where would you be putting your money? >> that's a good question.. first of all, i would not invest in a bank that has 20 to 25% revenue coming from retail banking alone. i think it's too dangerous. secondly, i wouldn't invest in a bank that has 40% of revenue from a single country. we have global issues and take into consideration that. thirdly, i want diversification in leadership and make sure that leadership of these banks are well diversified, have lots of

product lines. i highlight the canadian banks, australian banks and indian banks. banks that have had less trouble than the rest of the world have done well because of diversification. half to three-quarters of the banks fall into the category i described there. those are the ones i'd invest in. >> alyssa, what about you? do you have a stringent list of criteria? >> yes, i think you ought to. one has become more short term. you're not getting enough leadership, government leadership, particularly in the u.k. at the moment. therefore, you have to feel your way slowly. if people see they're making 10 to 15% on a share, they'll take it and bank the profit. a lot of the european banks know we wouldn't touch, and the canadians and the australians are likely to come out of this before everybody else. which is why the australians

might be putting up interest rates. they didn't go in the same way as everybody else so they've come out of it faster. >> ralph, thank you very much for your thoughts. and, alyssa, continue stay with us. right. china accuses rio tinto of spying for six years, prying out intelligence during iron ore negotiations. is this the beginning of a commercial espionage war? businesses more efficiently, so we've brought in a team of experts to help. one suggestion is to make your shipping more efficient with priority mail flat rate boxes from the postal service. call or go online for a free supply and up to $160 in offers from authorized postage vendors. shipping's a hassle! weighing every box... actually, with flat rate boxes you don't need to weigh anything under 70 pounds. if it fits, it ships for a low flat rate.

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former treasury secretary hank paulson spoke quite often with goldman sachs' ceo last year, raising questions about ties to his former firm. "the new york times" said paulson talked to blankfine more than other executives. he asked for a waiver from the government when it became clear there were issues with the firm. paulson's spokesman said treasury never gave goldman special treatment. they said they discussed lehman brothers and the disarray in the market. >> china accused rio tinto of

commercial spying for over six years, resulting in steelmakers getting overcharged $100 billion.n. they accused them of winning over and gaining intelligence by deceit. rio said it did nothing unethical and did not bribe chinese steel mills for information. four rio tinto employees remain in detention and have yet to be charged. rio tinto shares are trading like this. in sydney, down 3.4%. in london, down 2%. >> when you take a look at the rest of the resource sector, they're douwn. ang anglo-american down 2%. ten-month highs in japan. can the rally continue from here? >> interesting comment from the weekend. the fact is the market's gone up

too fast, too fast. you were out of the market in the last three weeks, you missed quite a lot. is it sustainable? little trading is making very big leaps in the market. every day you got a rise. it was the banks, the financials, the insurance companies and the commodities. when you get a good day, the market goes soaring. today, a weaker day. >> we're looking ahead. we see some growth. we don't see -- we recession ending in the third and fourth quarters. >> some of the figs aures are there. if you look at the amount of bankruptcies and people not able to pay their mortgages, certainly in the u.k., they're not seeing any green shoots and it's worse. >> double dip? >> one end very bad and the other, recovery. >> stick around. more to come from alyssa.

still to come, microsoft snapped up razorfish for $570 million. we'll discuss whether that will give the publishing giant more bite on life.

okay. ahead of the u.s. opening, we'll see where we stand on global markets.s. kicking it off with tim hughes.

we seem to be bouncing off the lows. what will happen this afternoon, do you think? >> yes, indeed, well off the lows. becoming a little bit still in negative territory. so far, driven by relatively thin confirmed news thrflow. a lot of stories milling around. it's just the fact that those firms weren't doing so well, the lloyds and the rios are recovering a little bit. the good news is the french company looks like they're going to tie up a deal with resolution. that's adding to the feeling that there may be some kind of deals in some pipes in the offing in the months that come. >> although the banks are weaker today. >> yes, indeed. as your previous guest there said, a lot of the markets have been driven by the relatively -- a couple of sectors.

the banking story today here is on rumors that lloyds may be asking its shareholders to dig deep again with potentially 15 billion rights issue. in theory this should be good news. lloyds saying it is doing it to more cheaply fund the business rather than using the government. but investors always a little bit cautious when they're asked to dig deep. firms keep asking them to. still down 4 to 5%, dragging the whole banking sector down. >> from london to frankfurt to patricia. >> we're taking a breather on this monday morning. also in terms of volumes, 20 million shares have traded. down 0.7% at the moment. we have a little built of trends coming through from the financial sector as well as from the insurance sector. up 2.5%. deutsche bank also being mentioned. upgrading the stock.

at the moment, trading at 31.3. daimler and the car sector very much under pressure. a couple of downgrades from volkswagen as well as daimler. talking about opel and rhj. magna meeting with gm last friday, no results. we might see something in the middle of the week. labor representatives also think they want to directly target angel merkel. saying they have to come to a conclusion sooner or later. it's very interesting to see. at the moment, the index in positive territory. over to paris now. >> in france, no major publication. most traders are choosing to go on holiday. 530 million euros traded.

a quiet session for the french market. the cac is down 0.6%. still, publicis trading 4% higher after the company agreed to buy razorfish, the digital marketing agency from microsoft, for $530 million, much lower than what microsoft paid for this agency two years ago. with this acquisition, publicis will reach its target in terms of digital media. 25% of its revenue, one year ahead of schedule. publicis, with this acquisition, will form a strategic alliance and hold 3% of the french company and become one of the main shareholders. now over to singapore for a wrap on the asian market. >> hi, stephane. really on the back of better than expected economic data, the

u.s. jobs report. over in japan, the machinery orders. that was up for the first time in four months. better than expected, even though the forecast remains fairly weak, we did see a rally on the machinery stocks. taking a look at the exports, pretty strong gains today and holding very resilient. we saw the dollar-yen raise on friday. falling back a little today. didn't have too much impact on the exporter stocks. mitsubishi chemical reports it may buy mitsubishi rayon. we saw reports up 20% on that. the kospi was pretty much flat today. the foreign adventure binvestoro this for 19 consecutive

quarters. a 3% fall. now over to bertha in the u.s. >> this week investors are basically going to focus on the consumer and the fed. we're going to get retail sales data later in the week and hear from macy's and walmart and other retail giants and the fed two-dave policy meeting which starts tomorrow, wrapping up wednesday afternoon. as far as today's economic calendar, no data. the earnings calendar also a bit light. numbers from the likes of tv provider dish network and priceline.com and the other cysco, the food company. and be hearing from the fed on bank of america's bonuses to merrill lynch employees.s. and president obama is in

mexicoco fmexico for a meeting with the president and the canadian prime minister. the three-day summit is expected to focus on trade and the global swine flu epidemic, which is expecting to see cases ramp up when we get cold weather this fall. that is your global stock watch. >> coming up next, analysts questioning whether spikes are coming to an end. can bernanke talk about rate hikes without dampening enthusiasm? e-mail us at worldwide@cnbc.com. hi, may i help you? we're shopping for car insurance, and our friends said we should start here. good friends -- we compare our progressive direct rates, apples to apples, against other top companies, to help you get the best price. how do you do that?

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it's a little more than half past the hour. here are the top business stories from around the world. in the u.s., the fate of wall street's rally could result on the outcome of the fed meeting. >> in europe, stock markets take a breather with commodities and

banks suffering. >> here in asia, china accuses rio tinto of costing chinese steel mills over $100 million by spying on them over six years. >> hello and welcome to "worldwide exchange." if you're just joining us in the u.s., the futures have been fairly flat. four straight weeks of up markets. today a breather ahead of what will be a busy week with money on retail earnings. of course, that two-day fed meeting.g. right now dow futures down ten points below fair value. really not much to speak of. looking at the ten-year yield. we'll see a number of big issuances. $75 billion of three, ten and 30 years coming on the market. all of that coinciding with the

fed's meeting. a lot of folks looking for the fed to reaffirm that deadline. >> or follow the bank of england and add a little bit more. european stock markets off. after seeing ten-month highs on friday. down .4% on the ftse. the cac also down a little bit. banks are fairly mixed. u.k. banks slightly weaker. on the currency market, the correlation between stock markets and currency markets are broken down, a rally on friday. euro-dollar, 1.72. christine? >> hey, ross. near asia, the u.s. jobs data

did give markets a big boost.. if you look at japan, nikkei, 2.5. a jump in machinery orders for the first time in four months. the kospi up marginally. the sang high down 3.5%. sentiment also from weekend comments from chinese officials that policy will be maintained. oil, pulling back from friday's highs. nymex down 34 cents, $70.59. brent also pulling back a bit. down 30 cents. $73.29 a barrel. bertha? >> thanks, christine. joining us now for market strategy and outlook, the chief investment officer at landor capital management.

alyssa has been with us from the top of the hour, from charles stanley. she want participate as well. dodge, i want is to start with you. we'll be getting a statement from the fed on wednesday. no expectation of a move on rates.s. a lot of folks would like to hear them say they're going to stop that bond buyback program and perhaps extend the consumer debt buying program. would that be the best of both worlds? >> it could be very well. the market looking for that. if it's anything other than that, it may be the reason for the pullback we've been waiting for. if we don't pull back, we'll go sideways. another move to the up side. the news will have to prove to be negative in order to affect the markets. >> do you think that's the case, alessa?? or are people looking for an excuse to take a breather. they worked hard in july. a nice rally but time to kickback a little bit.

>> i think we have but the economic data is very important. this morning's financial times had a very positive article about walmart, which obviously is in isolation. it's a huge retailer. they're seeing a huge amount of people coming through their doors because people are trading down. you may get a positive statement there. obviously what's happening at central government level is the important thing this week. and it would be interesting, the fact that our government, our bank of england last week put more money into the market, it was a big surprise. there wasn't a leak in advance. it was a huge amount of money. i think if bernanke does the same, there is recovery. but you still need more money going in. it might air that way, in which case, i don't know if the market's going to take it that bad. it is being realistic. if he has to put more money in, it's because things are not quite as optimistic as hoped for.

>> what are the potential targets if we keep going up from here? >> well, we're watching for about a 2% move to the up side until we runinto real resi resistan resistance. i think the market will say, we're going to have to pull back. we're going till the end of august. there are plenty of reasons now for the pullback. we need something to get the investors to actually stop buying. it will have to be really bad news in order to do that. we're really watching very specific levels. in the levels can get below 956, then we may have a pullback. if the dow can get below 9200, perhaps there will be a pullback. it has to pull to the negative. we haven't seen that yet. >> are you saying we've priced too much in? do you think we priced too much in? will the company earnings

justify the levels we're now at? >> that's the question. it has to be answered and answered to the positive. if earnings do not come in, especially if earnings are more revenue driven, then cost, cutting, if we see revenues increasing, then i think the fundamentals will start to support a further move to the up side. but they have to prove it. the prove is what we're looking for in the fall. >> dodge, christine here. apart from earnings, could oil be the wildcard as well? if we see a surge in oil price could that hold back the market as well? >> oh, yes. from a commodity point, christine, commodities, in particular oil, will be very volatile. not longer-term opportunities but trading opportunities.. in a spike in the oil price will hold the market back, especially as we go into the september. >> okay.

i think you're sticking around, aren't you, dodge? and alyssa, we'll let you go. what are you going to be looking at? >> i think third quarter earnings and fourth quarter out of the u.s. look reasonably optimistic. everybody cut back such a lot, i think there will be more order flow. i think the walmart situation is interesting. i think they can determine which products they're going to buy. if they don't want something, it won't be in their store. >> they'll still be big winners here? >> they'll be big winners. it's bad for other companies but very good for them. i think those companies that are really focused will do very well. i think third quarter could be very challenging for some. from that point of view, there could be a note of optimism. depends what the bernanke statement is. that's important. but it could be reasonable. >> alyssa, good to have you today. joining us from charles stanley.

>> in japan, the nikkei finishing in a ten-month high. let's cross live to tokyo and check in on the trading day. >> thanks, christine. the nikkei index rose 1% to 10,524, closing at a year to date high for the third straight session. this was the best finish since october 3rd, 2008. traders were encouraged by better than expected japanese economic data. machinery orders rose for the first time in four months. the dollar's rise to the 97-yen level spurred buying in exporters. honda motors surged 3.5% while sony gained 3.2%. today's stand-up winner was mitsubishi rayon. its shares jumped almost 20% on an exclusive that japan's largest chemical maker, mitsubishi chemical holdings

plan to acquire them through a tender offer. as the first quarter reporting winds down, we're getting a clear picture of how companies are doing here. according to a survey, combined group pretax profit in the april to june quarter plunged 80% year on year but improved by 4.6 trillion yen from the 3 trillion-loss from the previous quarter, suggesting the worst may be over. with the economic uncertainty still high, companies remain optimistic about their profits. they expect pretax profit to tumble 3.5% in fiscal 2009. that's a wrap from tokyo. back to you. >> thank you very much for that from the nikkei. bertha? >> still to come, gm looking for ways to reinvent itself. one of the ways could be to go under the cyber hammer.

stay tuned. first, look at how u.s. futures are shaping up. still fairly flatta what's going to be a very heavy week of data. i'm robert shapiro. over a million people

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quarter profit rose 14%. the company got a big boost from its holdings in american express and wells fargo, which saw shares rise 70% in the quarter. the operating earnings did miss forecast, reflecting lower insurance underwriting and the impact of the recession on berkshires manufacturing. shares up nearly 30% in the past month. general motors' public relation campaign continues this week as the ceo meets with customers and civic leaders in michigan today. it includes a behind the scenes turn of the automaker. in a filing on friday, gm says it will attempt to sell shares in an ipo before the one-year fa anniversary of bankruptcy next july. gm also plans to announce a partner with ebay in a plan to

sell cars. ebay currently only sells used vehicles. if successful, they will extend nationwide. the next domino in the madoff scandal could fall tuesday. prosecutors say frank pascali plans to wave his rights to an indictment. he was the chief financial officer for madoff's investment business. customers say he was the main contact at the firm, answering questions about their account. christine? >> first on cnbc, the ceo of credit suisse said asia seems to be leading the world out of financial crisis. he said the financial services industry looks to be recovering

quickly, especially the investment banking sector. but he warns there still could be much to be done on the consumer side and that credit card debt might be the next shoe to drop. >> they are different in the sense they work their way through over a period of time, not a one-shot time of crisis. as we've seen in asia with the korean credit card crisis and hong kong credit card crisis and taiwanese, these take about 18 months to two years. therefore, the impact, although a bit drawn out, is less impact in the short term. >> that was credit suisse's ceo in a first on cnbc interview. ross? >> talks between ubs and the u.s. tax authority have stalled. they're attempting to reach a settlement over the identity theft of thousands of american clients. the bank and the irs can't agree

on how quickly the data should be transferred to america. the judge decided the two parties can continue negotiations until wednesday. at that point, he plans to hold the next status call. at the moment, a trial is tentatively set for august 17th. let's find out what's coming up on squawk box. becky is with us to tell us what's up. hey, becky. >> good morning. the market's moving on friday's jobs reports to focus on the fed. we've got the lineup ready to keep the investors ahead the t of the sufb. plus, a trio of heavyweights. mike designhart, and a hedge fund manager. we'll find out about the market in terms of opportunities.

we'll have them on for an hour. then from free journalists to northa to clean energy. with former white house chief of staff under president clinton, part of the delegation that helped free the two journalists last week. plus the oracle's getting his groove back. squawk box at the top of the hour. ross, have you ever heard of cars for kids? >> cars for kids? no. >> you never heard of that?? >> no. >> it's a charity. i'm very sure that bertha's heard of that. in fact, i bet she's heard of the theme song. 1-877-cars for kids. >> i admit, i did leave her a voice mail with an obnoxious

song. it's nice. >> playing songs in my ear. bertha, i owe you. she's been going at me all week long. >> if we're up early, i might as well have a good time. thanks so much, becky. i'll have to think of a new song to tort you with now.. up next, the trading day on wall street. we have a couple of earnings out on economic data. and the fed rate decision. i'm racing cross country in this small sidecar, but i've still got room for the internet. with my new netbook from at&t. with its built-in 3g network, it's fast and small, so it goes places other laptops can't. i'm bill kurtis, and wherever i go, i've got plenty of room for the internet. and the nation's fastest 3g network. gun it, mick. (announcer) sign up today and get a netbook for $199.99 after mail-in rebate. with built-in access to the nation's fastest 3g network. only from at&t.

all right. let's take a look at the trading day. weak ahead. we're going to bring back dodge dorland. it will be about the consumer with the michigan consumer number and walmart. one of the things that will be a big head wind for the consumer is the fact they're seeing the yields move up. getting closer to 4%. is that going to be a problem here? >> it it may not be a problem. it may be the opportunity for the market to take the break. and we are looking for a break

from a trading point of view. it's been quite a nice move to the up side. we're beginning to see volatility come back. some questioning as to whether it will be follow-through in the middle of august. it will get much more quiet. a lack of potentially devastating news to make the market move substantially to the down side. talking about the trading opportunity now, bertha. >> dodge, we put the bund yield up there. how much will bond yields be an impediment to further rallies? >> ross, it's not as much an impediment as a reason for the market to take a rest. the s&p break 9292 and the nasdaq 667, any kind of move to the down side will be considered a buying opportunity, particularly as we get closer to the end of the summer.

>> dodge, this is christine. lots of consumer-related indicators this week, walmart earnings, retail sales, consumer sentiment. what's highest on your radar?r? >> cpi, then consumer. walmart we'll be watching from an investment point of view in terms of investor reaction to the the news. >> it's interesting. this hour we haven't really talked about housing. obviously that continues to be the big issue. do you think we're reaching a bottom here? is it dependent on what other data tells us? you know, how much confidence people have about what they're buy sfg. >> yes. bottom, yes. perhaps there may not be a significant move to the up side. at least there's a lack of follow-through to the down side. that is really what the market is looking for in order to support a further buying opportunity.

reits are buy haehaving very we out of some of the sectors which appeared to take a brief rest. >> dodge, wonderful as always. thanks for joining us. dodge is the chief investment officer at landor capital management. that's it for us on this monday. taking a look at the futures, fairly flat but a lot of news still ahead. thank you so much for joining us on today's show. i'm bertha coombs in the united stat states. >> i'm ross westgate. >> i'm christine tan. thanks for your company on "worldwide exchange." see you again tomorrow.