good morning, everybody. i'm louisa bojesen. in europe, the telecom fever is spreading. >> i'm maura fogarty. here in asia, markets are all higher as gold mining stocks lead the way up. and i'm mike huckman in the united states. the search for the $1,000 golden ticket has put investors fresh from the holiday weekend here in a good mood. the futures are higher.

hello, everybody. welcome. you are watching cnbc's "worldwide exchange." very happy that you're joining us. if you had yesterday off and you're joining us stateside, welcome back, as well. start our market run today with a look at the ftse cnbc global 300 index, the broad based index to see where we're trading at the moment. we started out on a perky node, higher by 0.6%. we've been mind on m&a in the u.s., but coming higher after it with the cadbury proposition and today we're hearing about the t-mobile and uk operations looking to tie up, as well. so markets are higher across the board. i'm just glancing at my wires and looking at a couple of comments hitting the wires on opel. we have yet another meeting

taking place regarding opel today and at the moment, the german deputy economy minister has said that they've laid the groundwork in the direction of magna as being a buyer of gm's opel. it's been a back and forth as to whether or not magna would be the one to walk away with opel. they're hoping there will be a decision on opel by tomorrow, it's about time, thank you very much, and that waiting on the decision has weakened opel. and gm's keeping opel would not be a sufficient strategy by itself. we had a german reporter on the ground covering the story throughout the afternoon. we will be giving you more detail as it emerges. let's give you a quick glance at the currency market, as well. lower by 0.8% on the dollar/yen.

the 92, 93 handle being the important ones to watch. good to see you today, maura. how are you and how is asia? >> good morning to you there, louisa. we didn't have much of a lead because the u.s. was closed overnight because of the labor day holiday. nonetheless, asia managed to rally on its own. we saw rise in gold prices hitting that $ ,000 mark having support from the mining stocks and especially gold stocks all across the region. on top of that, in japan, for example, we saw environmentally friendly types of comments today after comments from the new prime minister saying that he will, indeed, cut emissions in japan by 2020. in shanghai, that market up by 1.7% with gold stocks specifically leading the way higher. australia managing to close higher. they rallied today on this m&a activity that we're seeing in the mining sector. a couple of deals in the iron

ore sector with chinese companies raising their stakes. on top of that, the uranium sector got a boost with another chinese company raising its stake in the australian uranium company. we'll check on crude prices for you now and see how they are doing ahead of the opec meeting. nymex light sweet crude at 69.07. brent crude trading right now looks like this. that's currently standing here -- we'll get that number for you as soon as possible we can. $67.59. how are the futures doing? good morning, mike. >> good afternoon, maura. it looks like the u.s. might be taking its cues from asia. whether it's what's going on in gold or all of the m&a news over the past couple of days and the week b for that matter, we see the futures at this point pointing to a much higher open on the dow, the s&p 500.

keep in mind that the dow and the s&p are coming off their worst week in nearly two months. moving on to the treasury market, let's check the yield on the ten-year bund right now. it's sitting at 3726% on friday. the price of the benchmark ten-year treasury note here in the states did go down. the yield finished at 3.44%. it was up that day and it was down for the week, however. we have the government coming in with a significant amount of debt to auction off this week, including $38 billion alone in three-year notes and that's happening today. >> as maura mentioned, the story remains what has happened in gold. whether this is concerns over the economic recovery, over inflation, or the weaker dollar or a combination of all that stuff, including the gold jewelry buying season, the spot

gold price right now sitting at $ ,005 per troy ounce. >> thank you, mike. let's talk strategy and talk with david cosborn and peter elsin. david, let's start with you. just when we thought we were really looking at a big deal yesterday, another one comes through in the form of a joint venture between the big telecom companies. is this going to continue? is this the beginning of m&a? is this going to spur further activity? >> well, i think the mergers and activities have been extremely low in the last couple of months. i think a lot of the p-funds and indices like that have been holding back somewhat just to get clarification and also on the finance part of the deals. so this might be loosening up a

bit after this recovery in stocks and the spejttations in this market are clearly positive. the dollar is coordinated with optimism in this market and the ability to create credit. so what has been priced in here with dollar weakness and the trade weighted index is less than 1%. so we could have a really big crunch to the downside in dollar and that would take stocks higher, mergers and acquisitions are just one activity pointing to optimism in this market. gold is going higher this morning. silver, yesterday. oil, i believe that is a bit of a lagger here, but i believe it could go higher, as well, on dollar weakness and stocks, especially. so i think this market is so dominated by rationale

exuberance, but i think it could continue. especially after the g-20 meeting where they were submitted to keeping the interest rates going and lacks regulatory statements apparently. so that is what stocks are rallying on here. >> peter, david was bringing up a couple of points and mentioning some of the underlying reasons we're seeing such a market movement these days. how does that position us in commodities? should we be heading back into the resource stocks and back into the commodity trade? >> well, you have to distinguish between certain types of commodities, a correlation between gold and industrial metals or agricultural commodities has been very low in the last few months. gold is really an interesting move. i think in the last few months,

it's been a little -- quite a lot of technical factors that have been affecting the price. but essentially, gold should be viewed just as another currency. but unlike paper currencies where you're seeing a huge increase in supply at the moment, and also like normal where you see currencies with reasonable yields of a few percent, gold is now a parity. neither of them yield anything. so gold is now in a much more favorable position than other currencies. david, this is mike huckman in the states. over the weekend, barrens did a big cover story on the fall outlook for the markets, interviewing five on the buy side, five on the sell side and all but two of them think the s&p 500 will be modestly higher by tend of the year. the other two think there will

be a bit of a pullback. how much higher specifically do you see the s&p headed by year-end? >> well, perhaps even lower. but i think in the short-term, it will continue. what has been priced in in terms of earnings and especially revenue forecasts, not sustainable in my opinion. so the earnings season from october will disappoint. so i think it's unsustainable. it might be worrying that to see that kind of optimism widespread investor confidence that we have right now, but clearly with the g-20 out of the way and they being quite committed to continue stimulating this market in the way they've been doing in the past and not talking too

much about exit strategies, that is keeping the credit markets alive. we're watching the credit markets for a trail here. this is not a catastrophe, but it will end in a not so pleasant way. >> as i mentioned, the government in the u.s. coming in with more debt this week. peter, the wall street journal has a piece today on whether this rally is over or not. and it quotes one money manager who is calling this the rodney dangerfield bull market because it just can't seem to get any respect. do you agree? >> i think you have to look at the effects of monetary policy at the moment. and obviously, there has been this coordinated effort to try to produce positive inflation or more correctly, rising prices.

and they haven't yet succeeded in that regard. if anything, deflation is still the major threat right now. a lot of the companies that we meet every week are still talking about there being serious pressure, downward pressure on pricing. and in that sort of environment, i can't see any reason, maybe apart from in certain markets like china for monetary policy to be fightened. the only area they've succeeded in generating inflation is in financial asset prices like equities. but so far, that hasn't translated into rising prices of goods and services. so for now, it looks like things will continue. it may take a bit of a breather in the next couple of months, but should be a bit higher by year-end. >> peter, specifically, where are you putting your cash to

work right now, is it still in equities? >> yes. i think we generally like equities most of the time. i mean, we don't tend to operate a top-down view and we look at things from a company perspective. there are a lot of companies out there who are taking advantage of this crisis. you were talking earlier about m&a. these are good examples of stronger companies taking advantage of this crisis. >> thank you very much to both peter elston joining us and thank you to david karsbol, market strategist from saxo bank. moving on, the uk will soon from a new market leader in telecommunications. france telecom and deutsche telekom have decided to merge their operations. the new operation will have around 37% of the market share in the uk, bumping telefonica 02

from the top spot. maura. >> china state-owned companies continue to expand their footprint in australia's mining sector. two companies involved are ferroz and united minerals. atlas minerals is in talk wes china investors, as well. separately, power producer guangdong says it will buy up to 70% of metals. that's an australia uranium explorer. today they're up substantially. mike. >> thank you, maura. and the hiring outlook appears to be improving in every part of the world, except one, the u.s. the latest manpower survey finds only 12% of u.s. companies plan to add workers in the fourth quarter. about 69% see things saying

pretty much the same. manpower says prospects have picked up in latin america and are stronger in asia and western europe. in the u.s., manpower says industries with help wanted signs include retail and wholesale trade, education and health care. those not hiring include construction, manufacturing and government. and as always, of course, you can get more news, more videos, blogs on today's market moving news at cnbc.com. louisa. >> coming up here on "worldwide exchange," the price is right. m&a is back on the agenda. but will the flurry of activity last? plus, according to manpower, the u.s. is facing a jobless recovery possibly. um bill-- why is dick butkus here?

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the mr. clean magic eraser. hello. welcome back. this is still "worldwide exchang exchange". on to our global roundup of the equity markets now. becky. >> we are watching the markets move higher, as well. the ftse cnbc 300 about 36 points or so. we could have a fresh year --

fresh highs for 2009 at the end of trading today. looking at why the markets are moving higher, intercontinental is a big reason for that. check out shares of this company. up by 6.5% for intercontinental. the owners of credit suisse say they see recovery and cheap valuation when compared to its peers is the reason for the increase in their rating and therefore, the increase, as well, in the stock value of the company. basic resources strong today. down rio tinto and xstrata looking pretty strong. the stock of kingfisher is in 2.9%, as well. this is europe's big home improvement retailer. they came out with figures this morning, almost accidentally. they published figures yesterday which weren't fit for the eyes

of kingfisher. as a result, they had endifficuen difficu indicative figures. they see tough conditions pure cysting for the rest of the year. certainly the shares having been hard hit previously are now moving higher. cross out know to stephane pedrazzi standing by in paris. >> still france telecom is up 3% on significant volumes after the company come firmed it's going to merge orange with deutsche telekom at t-mobile. the companies started exclusive negotiations to start a 50/50 venture. they're expected to sign a deal by tend of october. this unit will have a 37% market share in the uk with more than 28 million customers. it will need to have the approval of the british telecom regulator, but that is good news for france telecom, which mkd to increase its stake in the uk

without building massive debt. the company confirmed this morning its full year guidance despite its operation. the stock once again up 3%. also in good shape, france klm. the airline posted a 2.9% decline of its passenger package, but the airline reduced sharply its capacities over the last month. the cargo activity, however, contracted by another 16.1% in august. the stock is up more than 4%. also in focus once again today, the company started negotiation to sell 36 fighter jets. the announcement was made yesterday during the state visit of nichololas sarkozy in brazil. the contact would be worth $4.5 billion euro. france has agreed to buy some airplanes in exchange and has

agreed to transfer technologies. they will build jets to sell them later to latin american companies. now let's have a look at the asian markets this morning with at am in singapore. >> thanks, stephane. we saw a lot of trading in the markets. the biggest performers coming out of the greater china region, taking a look at the shanghai composite. the market looked fantastic. we had gainers, overwhelming losers by a ratio of 758 to 105. and the gains were driven by the usual suspects on hopes that the government would continue to support the markets. and also more recently today, nine new mutual funds are being launched in september. that could see 7.3 billion u.s.

dollars hit the equity markets at some stage. but the real momentum came into the markets in the afternoon as i mentioned as i saw the commodity prices perking up. everything from oil on the base metal prices helping to fuel big gains in the oil stocks, at least in some of the resource plays in china. and then the one that everybody has been watching, bouillon taking out that $1,000 per owns mark and that helped to push all the markets higher. moving up into north asia, it was a positive session. the japanese equity market was in losses. looking at the blue chip exporters, it was a new picture there. we continue to see a bit of strength in the u.s. dollar versus the yen. we continue to see problems in the banking stocks showing the slowest growth in a year one

179%, 400 trillion yen as well as concerns now for the g-0 summit in london, that the central bank and also the finance ministers will be asking global banks to beef up capital ratios and they will come up with a new metric. we could see japanese banks that have to raise a little bit more money. moving on with another solid session for the cotpy, as well, that index closing up 0.7% driven by gains in the oil stocks. take a look at them, particularly sk energy, the company's top refine webs they think q3 will be better than q3. a lot of these companies will be getting into the battery market. overall, a positive session nor the u.s. markets today and on that note on u.s. futures, back to mike in the u.s. good morning. >> thanks, adam. good afternoon to you.

yeah, it does look like there will be a carryover effect there. it is a quiet start to the week, at least, for economic data. those being the fed's beige book, trade deficit and consumer sentiment out later on in the week. today, we will get july consumer credit figures or the amount of debt that's still outstanding at 3:00 new york time in the afternoon. congress returns to work today after a month-long recess and health care will be high on the agenda. president obama was out in the midwest making his case for health care reform on monday and he'll do so again in a prime time speech to congress on wednesday night. that is your global stock watch. maura. coming up on "worldwide exchange," china swooping in on australia iron ore firms. we're going to assess beijing's appetite for raw materials. and a uk industrial

production report is due next. stay tuned.

welcome back, everyone. within the past half an hour the, i'm happy to say not a lot has changed on the ftse cnbc global 300 index. markets have opened higher today as we have the u.s. coming back in full after their vacation, labor day holiday. m&a activity taking center stage with the french telecom and deutsche telekom teaming up with their uk mobile operations. the ftse cnbc global 300 higher

by 0.1%. we're just sitting tight and waiting for the industrial data. we don't have a lot on the agenda when it comes to corporate announcements that have been made this morning. quite a bit more focus will go over to the economic data this week when glancing further ahead with the bank of england. in fact, we'll talk about that in a couple of moments' time. just glancing at the data now, the uk july manufacturing output jumping by 0.9% month on month. consensus was for a little bit of a jump by 0.3%. so 0.9% higher. on year on year, we're down by 10.1% year on year. industrial output, 0.5% month on month growth. also better than the expected consensus for 0.2%.

we're looking at a year on year figure down by 9.3%. industrial output unchanged in the three-month period in manufacturing output plus 0.2% in the three-month period, as well. so some strong manufacturing output dey data for the month of july. you can see sterling higher by 0.8%. a little bit of buying continuing to take place here. let's talk to david page and david, you're the expert on this. how much are you reading into this particular data at the moment? >> it's very encouraging. the survey data has been suggesting manufacture sg getting better and better. and at 0.9% on rise on manufacturing on the month in july is encouraging. the three-month trend will be very important. it was a disappointing big drop

in the second quarter, still in the uk that almost defies a global pattern where we've seen a lot of economic growth or economies emerge from recession a little further. uk, we think it should emerge into q3 and with numbers like this, that should help that push. >> is the bank of england settled on maintaining inflation targets and a broader stability in the financial sector? >> i think what they're concerned about what we're seeing at the moment is a short-term move. we're seeing to some extent external demand which is being lifted by fiscal stimulus elsewhere. that may not prove to be anything more than temporary, either. to the bank has some concerns. as we look further ahead, the bank is forecasting some pickup. although we think the bank would like to keep its stimulus policy running through to november, we don't expect it to talk about

anything like tightening until early next year. for now, it should be encouraged. >> how much worse do you think that the jobs narrow is going to get in the uk. it seems we're not seeing a pickup. >> it's not likely enough to increase quickly. expect the unemployment rate to raise into next year, but the job losses to should continue to moderate. >> on the back of this output figures for july, jumping by 0.9% at the moment. 1.6502, maura, so we are seeing buying on the back of this strength and data.

>> we did see the nikkei up by 0.7%. across the board, gold stocks and mining stocks had a banner day. we got news that more investments from chinese companies into australian mining companies. we have a look now at futures in the u.s. as for that, mike has the details on this monday morning. >> we've got about five hours until the opening bell. but it looks like we could be off to the races when that happens. the futures all pointing toward a higher open for the dow, the nasdaq, the s&p 500, moving on to the treasury market, we have the government coming in with yet again another $70 billion worth of debt to auction off this week. more than half of it today alone.

the story of the week remains gold with it cracking once again above $1,000 per troy ounce. it's done that twice today. it did retreat a bit earlier in the trade today. right now, it remains at $1,005 on relatively trin volume. still with us to discuss the global economy is david page, economist at invest test. but late last week, we found unemployment beginning to nudge that 10% threshold. but given how many people have given up looking for work and aren't being counted in that percentage any more, how much is the number perhaps masking how bad the situation, at least in the states is concerned and could be? >> when we look back at the

previous month, we saw the fall in the unemployment rate, which struck us as very strange. that was exactly the effect they're looking at. here we've seen the labor force contract by 400,000 plus on the month. clearly, that trend was a short lived trend. it was exacerbated by the change in the extension. so the jobless claims, the continued claimed that fell through until july and as though continuous claims fell off, then a number of people decided they weren't going to pass the labor force any more. that trend is likely to continue, although the cyclical trends, the economy eventually begins to recover, we would expect the labor force to swell again. wa we're looking at in terms of unemployment rate is a similar pattern where we see the economy growing over the second half of this year and accelerating gentry over 2010.

so i think the unemployment rate itself, the published unemployment rate is going to remain high for quite some time. it's likely to be in excess of 10 bers of the weak. but that includes an element of hidden unemployment, as well. >> so what, you think that this will, indeet, be a jobless recovery? >> yes, it's likely to be. it will start to come down, hopefully it will start to come down in the second half of next year. but it's still going to remain at a historically high level for quite some time, we would expect. >> david, we have interesting data. it's maura here in asia, coming from australia today. business confidence hit a six-year high for australia. and i'm wondering if perhaps at least in the asia pacific region we are beginning to see economies here emerging out of this rescission or this downturn much faster and if that could be

a precursor to where we could see recovery in other parts of the world. >> very much so. i think that's entirely correct. certainly we've seen that trend coming through from china. it never suffered from a credit crisis in quite the same way as the developed economies had and it was seeing a massive fiscal stimulus. australia seems to be benefiting from that. the chinese economy tend to gear up again at least in terms of a shift in production focus. it still continues to draw in ex ports from australia and australia seems to be benefiting on the coat tails of china. so doing very well there. one of the key pieces of data we'll be seeing is to monitor the rates that we get this week. >> and so how much of proper decoupling can we anticipate? >> well, i think there will be some decoupling in the sense

that china should be growing, but increasing and we think that is going to be a domestic demand story. we are seeing that spur some other areas of the economy. germany seems to be benefiting, as well. while at the same time in the u.s. and perhaps in the uk, the head winds for the consumer will mean that we get subdued from there for some time to come. so for the next couple of years, you should see growth coming out of asia and perhaps disappointing news out of the u.s. and uk economy peps. china-state-owned companies continue to expand their footprint in australia's mining sector. china railways commercial corp. has agreed to fund two australian iron ore producer in return for supply contracts. the companies involved are ferr oz and iron ore minerals.

separately, power producer guangdong nuclear says it will buy up to 7% iron ore metals. let's get more now with derek kowalsik. he joins us, of course, from hong kong. derek, good to see you again. we know for a long time that china has been very interested in the australian resources sector as we begin to see things sort of begin to heat up a little bit here with the interest. are we going to see more deals structured at a lower level on a smaller level like this rather than a much bigger rio tinto/chinalco type of deal? >> this is exactly what's likely to happen. china obviously is very hungry for commodities and is trying to secure long-term access to both energy and metals. but it has run into obstacles,

both in the u.s. years ago and recently with europe and australia as both countries want to seize control of those strategic assets to a competitor. that's why chinese companies are going after smaller competitors right now. still, the foreign investment review board of australia is quite hostile to allowing chinese companies in. so i think that they will come in one by one, targeting smaller companies, not necessarily through ownership takeover, but funding projects in exchange for long-term supplies, like when was announced today. >> at any point in time, could we see china diversifying out of australia? most of these deals have been with australian companies so far. >> that's true. and this partly reflects the geographical proximity to china. australia being a smaller

company is attractive in terms of china maybe having more leverage here. for instance, australia chips 80% of its iron or to china, so the large dependance on the chinese market gives china some leverage, as well. but definitely the chinese can be have ventured elsewhere, such as to africa and i expect that there will be more geographical diversification going forward. >> darius, hi. it's louisa in europe. i know a number of analysts keep focusing in on how china can sustain the levels of growth projected at the moment outside of china if it isn't making sure to stimulate its own domestic consumer. do we run the risk of a false asset buying these basic resource-type companies but in reality, the weakness persists

on the home front, so it won't be able to continue on this spurt? >> i believe that in this case of chinese domestic demand, it's going to continue to expand very fast for a long time to come because consumption is starting from a very low base and because there is still huge needs for fixed asset investments. so it's not going to be a battle in the sense that china will purchase assets for which it will not have any use going forward. but to the degree that those purchases and direct buying of commodities by china are pushing up global commodity prices, it may be that those prices may get ahead of fundamentals on the global level because global demand after the stimulus programs lapse in 2010 may struggle catching up to those

level denoted by public spending. but in terms of what happens in china, it will be a major growth story for a long time to come and they do need those commodities. >> darius, this is mike huckman in the united states where the ipo market has been pretty weak so far this year. but china is seeing a relatively healthy pick up in ipos. but is there a changer of it being too much of a good thing, that perhaps there is an overestimation of investors' appetite there for new shares? >> well, so far this year, ipos in china have resulted to around 70,000 renminbi. this is about as much as a year ago and seven times less than two years ago. so i do not think that we were dealing with an overestimation of investor demand. in fact, those ipos are really very happily oversubscribed. having said that, when you look

at trends in the secondary market, the level of demand may not be as high later this year as it was in the first two months since ipos were, again, allowed in june just because when the secondary market is so fragi fragile, investors are not hoping for such big increases in the first day of trading. for that reason, i don't think that chinese regulators will allow many more ipos from this corporation of china which we are seeing being priced on thursday unless the secondary market recovers in a sustainable fashion. >> thank you so much for joining us, darius kowalcyzk. let's check on the markets in india right now. you have a pretty good day for the bombay sensex. ayesha faridi joins us live for the bombay sensex report. hi.

>> thanks for that, maura. it's turning out to be a great session for the indian equity markets. the nifty is comfortably above the 4,800 mark. good 1% gain coming in the for the sensex, as well. we have a positive in your hands. what's leading is the metals index. big boy reliance industries is acting on its own set of momentum and that counter is holding up very smartly. not just that, a whole host of other counters. you've got the banks, capital goods, autos are holding down. it's the kind of run up that we've seen yesterday are taking a bit of a breather in trade today. developing story, more than 100 jet flights have been canceled this morning because pilots have gone on strike and have gone on sick leave protesting the firing of two of their colleagues. so just comments coming in from

the government right now, they have actually started to refund passengers and the stock was subdued in trade now, but hovering around the green line. and it's just now beginning to pick up, holding up by 2 odd percent after a lackluster start. with that, it's back to you. >> here elsewhere in asia, chinese machinerymaker tengzhong staig says plans to buy hummer from general motors is moving forward. chinese commerce ministry has asked for more information on the deal. sources say the request does not represent rejection. hummer could fetch about $100 million in cash, much less the half a billion dollars gm expected when it put the unit on

sale back in june of 2008. china's pass earning car sales rose in august more than 90% from a year ago in data. meanwhile, geely group more than doubled its profit in the first half of the year up 87 million up from $35 million a year earlier. that's a jump of 145%. vehicle sales were boosted by a 2 % thanks to the addition of larger car models and tax cuts. the automaker reaped a larger share of earnings from increasing its stakes in five joints ventures last year. we saw shares today for gly automobile up 2.3%. >> kraft may need to sweeten its bid for cadbury as the union said it backs managed in rejecting the deal.

despite this, kraft says it's intent on pursuing a deal, but analyst believes america's biggest food group might have to raise its bid by more than 40% or face a bidding war from other players such at nestle. british retail sales fell for the first time since may last month. cost-conscious consumers refrained from slashing out on nonessential items. the british retail consortium says the value of like-for-like sales full 1% on august after a 1.8% gain in july. retail sales values have held up well over the summer, but the brc says that's largely due to price cuts, not a revival in consumer confidence. summer sun, mike, sounds good? >> yes, it does, louisa. we're going to get some indication of that later today. but president obama has named

u.s. car czar ron bloom to oversee manufacturing sector. bloom will work with government agencies on policies on things such as promoting green jobs or environmentally friendly ones. he will not dictate what products a factory should make or how much to produce. plume previously advised the united steel workerss union and worked as an investment banker, as well. aol has hired former yahoo! executive brad garlinghouse to run the company. garlinghouse may be best remembered for the peanut butter manifesto because it claimed the company had spread itself too thin. since then, yahoo! has changed ceos twice. garlinghouse has been an adviser at silver lake partners.

coming up, is it time to ditch the dollar? the united nations calls for a new global currency. so could this herald the biggest overhaul of the world's monetary system since world wa two? >> we'll be talking to our currency analyst about that after the break. we'll also ask our analyst whether or not we could be looking for a late summer euro rally. stay tuned for more here on "worldwide exchange." welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans ) that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. sprint. the now network.

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welcome back, everybody. you are watching "worldwide exchange." feel free to send comments, worldwide@cnbc.com. i want to show you the e-mail address before we head into our currency markets or tell you the e-mail address, at least, so you have a chance of participating very well. we have quite a bit going on. this week, we've got a couple of major releases going on with the data side of thing. the bank of england out with its set of interest rate. manufacturing output jumping by 0.9% in the uk.

sterling higher by small 1% against the dollar. let's talk to valerie now. val i are, i want to start off with this report coming from the united nations. we should be looking at a new world currency reserve opposed to the dollar. this is the first time that we have an official body putting out this type of noise. what do you make of it? >> well, you know, it's harder than that to decide what is going to be the next reserve currency. it takes more than one body to decide after just one crisis what is going to be the next reserve currency. so i'm not sure we're talking about really giving up on the dollar. but that makes a lot of noise.

that also tells us that there is an issue that tells us what is the status of this currency, how does it behave in the future and that there may be other ways to deal with problem a more adjusted world. valerie, this is mike in the states. we also had a meeting out of the g-20 meeting. time get near said he does, indeed, expect the dollar to remain the world's prime reserve currency. is any of that going to make any difference in the currency markets? >> it would in the long run, i think. what we're talking about right now on the very short-term movement in the currency is just not, for me, relative to these underlying issues and negotiation, just as long as there is no practical

significant decision being taken that would prove that the dollar is indecember receding from the currency. we are celebrating the one-year near market collapse after the lehman brothers fall. remember, there was a huge call for the dollar, a huge need for this currency and that proves at the peak, at the very, very bad moment of this recession, that the flight to quality went into the u.s. currency and the demand was actually on the rise. >> valerie, it's maura here in asia. what do you make of some of these rather interesting moves we've seen with kiwi dollar, canadian dollar in the last 48 hours? is there any kind of meaning behind this movement that we've seen recently? >> well, they seem to be better movements -- now, we're talking

about value of the currency. this is the dollar. what we see here is some market expectation, very classic market expectation when it comes to growth differentials and interest rate differentials. we have people looking at currencies that may bring higher yields versus the dollar. this is the kind of situation we're experiencing right now. those experiences maybe have some link with the commodity markets. that also may rise. i believe, you know, one of the potential for rises indeed, australian dollar being driven by the good health of the economy and the prospect of the royal bank of australia raising

its interest rate pretty soon. >> thank you, valerie. chief strategist cmcic, thanks again for being with us here on "worldwide exchange." coming up in the next hour of the program, kraft says that it's intent on pursuing cadbury. some say there could be a bidding war. does this mark the continuing of the m&a drought?

hello, everybody. welcome back. in europe, the m&a fever is spreading with deutsche telekom and france telecom planning to merge their u.s. operations. >> here in asia, we've got gold mining stocks leading the market in this region higher. australia and chinese stocks gaining more than 1.5%. >> and i'm mike huckman in the united states. it's not just the gold mining stocks. the search for the $1,000 golden ticket has put investors fresh from the holiday weekend in a good move. the futures are higher. ? you're just joining us in the united states, welcome to the start of your global day with "worldwide exchange," live from the u.s., asia and europe. the dow and the s&p 500 are

coming off their worst week in nearly two months. we see the futures point to go a significantly higher open in 4 1/2 hours time. let's move on to the treasury market. checking the yield right now on the bund, it is climbing at 3.25%. we have the united states government auctioning off another $70 billion in debt over the next few days or so and the yield on the 10-year t-notoriety now cinching down at 3.43%. as i alluded to a moment ago, all that glitters is not just louisa's necklace, but it is gold. gold is above $1,000 for the first time since last february, so we're looking at a six month high here. or the gold buying season kicking in, it is sitting right

now at $1,003.55 per troy ounce. louisa. >> you're right, it isn't just my necklace, silver, but your eyes, of course, mike, through everything that glitters. >> thanks. >> let's show you the ftse cnbc global 300 index. at least one of us thought that was fuvenny and show you the markets are higher by approximately 0.6% here as we head towards the middle of trade here this morning in europe. i want to mention bmw is out with august sales on the year. january to august sales for the bmw brand down by 18% on the year. and they're looking at -- well, the overall sales, the figure that you should take away from this is 9.7% down on the yield. i also want to mention briefly that goldman sachs, they're revising price targets on a

number of european tech companies, way too much for me to run through. get ahold of this note and take a look for yourself, avava, they're cutting isf, they're cutting microfocus, cutting s.a.p., a biggie, cutting their price target to 39 euros, that doesn't makes sense, from 36 been you know what? take a look at this for yourself. it is a lengthy note from goldman. the currency markets like like this right now. let's talk to you, maura, next, and figure out what's been going on in asia overnight. >> you know, this may be a case of asian markets a first leading u.s. markets. we didn't have the u.s. markets open overnight, so asia traded on its own today. you can see across the board here the markets had a very good session. in japan, first of all, the largest market in asia up

by 0.7%. we saw across the board gold and mining stocks having a very good day. i want to highlight for you shanghai, up 1.7%. that optimism helping to lift hong kong stocks. but the big story in shanghai today, this is the sixth session for gains now since the lows that we saw hitting on september 1st. the vice governor came out and said spes yetly we haven't said we're going to change our policy. australia up about 1.5% as we saw more deals being done in the chinese mining sector with chinese companies adding their investments into the aussie mining companies. nymex light swede crude, $69.11

a barm and brent crude trading higher, as well, $67.63. >> justin stewart, i want to jump straight in and introduce him. he'll be our guest host for the next hour, worldwide@cnbc.com, he'll be taking your questions. how are you, justin? >> i'm well, indeed, thank you. >> are you a bit positive more than you were a month ago? >> the trouble is, no, i'm slightly more worried. in britain, we have that own legend, sell in may and go away. if you had gone away in may, it would be a big disaster. you would have missed out on one of the biggest rallies we've seen in our lifetime. is it almost too good to be true? now we're going to get volumes back in in the next few weeks. people will sit there and say, actually, we made a nice profit, thanks indeed, we'll take some money off the table. i can understand that.

there are probably people that are very keen to getting in on this before the end of the year. but it's a season of storms and there will be more volatility. >> justin, this is mike huckman in the united states. just as everybody was saying, sell in may and hello to you, said hell sel in may and go away, now leading into september, they were saying, oh, especially after this huge rally that we've had, september's historically the worst month for stocks, anyway, so we've got to sell. and then in the bull camp, you had people saying what you just alluded to, that there's something like $3.5 trillion sitting on the sidelines. now all these professional money managers are going to come back to work and reassess their situation and say, oh, my gosh, we've got to start putting this back in the stock market. what is going to happen? >> there will be dips and there will be people buying on those dips. what is fascinating over the summer, we've seen a change of sentiment, haven't we? we've gone from the enof capitalism to a nasty recession

to areas now coming out of recession. america will probably be coming out of recession in the next quarter. the laggered in this will be the united kingdom. but words like insip yid and anemic will be used when we start talking about the level of growth. but the question is, how much of that growth is spendant upon that fantastic drug stimulation and steroids, whether it was from china and the u.s. and other key areas. if you keep that going, that's fine. the question is, how sustainable is it? and none of us have the answer to that. >> justin, it's maura here in asia. what do you make of movements we've seen in the price of gold? we've seen it try to hit $1,000 several times this year, but this time it actually made it. >> is it a fear over the dollar? well, we've been talking about dollar weakness for some time. but maybe it's a combination of

issues allowing it to push it suddenly over that 1,000 level. but i'm only slightly concerned because it is -- when you look at this, gold in my view doesn't do anything, doesn't achieve anything for anybody. it just sits there and you can stroke it and enjoy it for a while particularly if people are wearing it around their necks, of course. but that's about it with gold. >> or silver around their neck, as louisa's case may be. justin erkhard stewart. >> i didn't look at it. >> how can you not look at it? >> exactly. >> still to come on "worldwide exchange," m&a is back on the agenda as krafs says it's intent on pursuing cad bur ru.  he ran off with his secretary! she's 23 years old! - oh, come on. - enough! you get half and you get half.

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hello. welcome back. you are watching "worldwide exchange." i'm louisa bojesen. m&a deals seem to be back in fashion. in europe, cadbury has rejected kraft's offer. deutsche telekom has decided to merge their mobile phone units and in asia, china has announced a flurry of deals with australian iron ore and firms.

we're now joined by simon perry. is this just catching up with what's taking place in the u.s.? we had after awfully quiet august. now we're seeing these larger deals come back again, but off very, very quiet levels. >> i think there is an element of catching up. i think there is a need to deal with specific situations, opportunities for strategic buyers who are strong and probably think that the worst of the lehman crisis, the banking crisis and the recession is behind us. but i'm not sure fights a bonanza of m&a. >> what do you think we can read into the m&a deals? is this value to be found and are they new deals that they're deciding on now because of this value or are they deals that were shelled 1 1/2, 2 years ago? >> i think it's a bit of both. you can see clear strategic

buyerses who see opportunities in this market for getting an agreement to a transaction that wouldn't happen in a strong or rising bull market. and that's, i think, a feature of the stage we're in in the cycle. i think my view would be that we're seeing the market unfreeze, if you like. the post lehman situation was that everything locked up. but we're seeing a market that's very classic for this stage of the recession where i think we're probably past the inflexion point, but we're not clearly on the way up. and the economic fundamentals are still, i can, quite concerning. >> there is a wall street journal headline cross b that hershey could be a bidder for cadbury. simon, i want to ask you about the m&a deals i cover.

we've seen pfizer, america schering-plough. i know, do you expect consolidation wave to continue? >> yes. and i think that is a very good illustration of what i mean by strategic buyers taking advantage of a real strong market dynamic. with an overlying recession that brings us to the situation we're in today. so yes, i would expect to see continuing transactions there. but i think we're going to see a lot of change in the financial services area because of the position of, what, over 100 banks are effectively controlled by their governments. author organizations are going to change. but that is an illustration of what i mean by the circumstances we find ourselves in creating

imperative for transactions and those transactions will happen as market circumstances improve. but that is kind of tidying up the problems we have rather than indicative of a new boom. >> simon, it's maura here in asia. do you think that most of these deals will originate from one or two regions and be interregional? i guess i'm trying to find out if the role of currency strength or weakness might have a role or whether it's emerging currencies looking to expand at better market prices than they would have bought them years ago? >> probably more importantly are some of the regional differences and some of the capital strong points that we can see. so asia didn't have such a huge crisis as north america or europe, its banking position wasn't as bad. so we see strong action quickly so we see an asian recovery i

think ahead of the west. but also, we see abw exercising its capital strength and doing something quite strategic in the far east. >> justin, somewhere in the region of $40 billion worth of mergers having been announced within the past ten days or so, give or take a little. what does the tell you about the markets? >> this does not go back to where you were years ago. there are strategic moves to be made now. good news, china, ab with w, that is what you need now. there will be others where they can possibly go and be able to buy up assets that they think are slightly more under valued. or look to break et up as you've seen with cadbury's, for example.

there will be other areas where there will be more pain in due course, for example, the property companies. that's when you see the vulture funds coming through. but as you were saying, this is all about the easing of the credit markets. >> is this an indication of what we've seen in private equities? if we have this m&a activity, these companies daring to do deals with private equities -- >> this is the first bit of oil dropped into the engine to start some of the cogs moving. if it seems to be successful, more will come out. there is no shortage of reserves in the world. the question is, will these reserves continue to move. strategically try to make sure

we get those assets purchased at the right sort of price. so it's good news, i think. >> i think what private equity has to offer is a huge lump of capital which is very attractive, adding to the oint that is coming into the markets. i think when we consider asia, there is a question of scale. so we need the big engine in the u.s. economy to get through its challenge and i think it has more to come. >> simon, thank you very much. justin stays with us in the studio. and i want to mention to you, on our screen flashing right at the moment, we have noticed that the fsa, the financial services authority in the uk is finding barclay's, the financial group, with $2.45 million pounds for failures in transaction reporting, they say. the penalty is significantly higher than what previously had been announced and these are the previous penalties that would

been imposed for transaction reporting errors. barclay's has agreed to settle at an early stage. these penalty res higher than what we previously knew of. maura. >> of course, we can get lots more news online or our who it. we have videos and blogs there today. go to cnbc.com. still to come on "worldwide exchange," european stocks pull asia higher on a flurry of the back of m&a deals. is now the right time to look for these deals? we'll find out. 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? with a touch of this button. can i try that? [ chuckles ] wow! good luck getting your remote back. it's all right -- i love this channel.

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hello. welcome back on tour our global equity markets with a roundup starting with rebecca meehan in london, adam in singapore and stephane in paris. becky. >> markets are up about 26 points, 0.5% so far today. the biggest gainer is intercontinental certainly in percentage terms. the hotels group, this company has been upgrade i by analysts at credit suisse to an outperformance. analysts saying that they see recovery and cheap valuations, as well. so we are seeing the stock putting in a pretty strong performance today.

basic resources, metal and mining stocks, all the usual suspects are gaining ground, as well. plus, they're watching shares of a couple other companies, too. kingfisher, for example, europe's biggest home improvement retailer. they came out with figures this morning in which they say they see profit at $285 to 290 million pounds, which is ahead of expectations and we're seeing the stock moving higher on the back of that news, as well. it seems to be giving a boost to the likes of home retail which operates in the home improvement space, too. let's take a look at cadbury. yesterday was the big one for cadbury. we saw stocks adding almost 40% after kraft approached them. today we've seen the stock adding another 15 p or so. almost 2% higher today. stephane, how is it looking in paris? >> pretty good.

air france klm is up despite a 2.9% decline in passenger traffic. however, the airline managed to improve its load factor. air france klm posted a % decline in airline activity for the month of august. but the main focus is on the telecom sector. france telecom is trading higher, up 2.5% on the merger of a mobile phone network of deutsche telekom in united kingdom, orange will merge. the unit will have a 37% market shares with more than 28 million customers in the country. the two companies will start with exclusive negotiation to create a joint venture and they're expected to sign the deal in october. they say that the deal will reduce the debt of the company by 625 million pounds. and also, he hopes to achieve more on savings than what has been announced this morning. the two companies hope that the

finance energy will reach more than 4 billion euro over the next couple of years. now let's have a look at the asian markets with adam in singapore. >> thank you very much, stephane. we've racked up a decent trading session in the asian markets here today, although some of the markets opened up in the red, such as the shanghai composite, the second biggest market in asia. then we saw gains in the afternoon session that took this index to six straight days of gains. the market was very positive, as well. gainers overwhelmed losers by a ratio of 758 to 205. there's been hopes that the governments were expected to support qi markets. they say they're going to keep loose monetary policy in china and then there's seven new mutual funds that will be relaunching this month and we could see about 7.3 billion u.s. markets flow into the equity markets. it's a very strong day. but the big momentum came in the afternoon trading session when we saw commodity prices trading

higher. meanwhile, in taiwan, that market closing up is .2%. just after the bell, umc the second biggest tripmaker come up with its sales in the second straight years. on that note, back to mike in the u.s. >> thanks, adam. it's looking like we're going to have a is 1% higher open, as well, as a quiet start to the weak for economic daddy with a big report. the fed's page book trade deficit and consumer sentiment out in the week. today, though, we will we will get july consumer credit figures. congress returns to work today after a month-long summer recess. health care reform will be high on lawmakers' agendas. president obama was out in the midwest on monday morning on the holiday making his case for reform and he'll do it again in a prime time speech to congress wednesday night and that is your global stock watch. maura. coming up next, japan's bank lending growth has hit its

slowest pace in 12 months. >> and in the u.s., you may have seen stock futures are showing positive moves. are we on the cusp of a september surgeon, maybe? stay tuned and get your comments through. 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 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.

it is 30 minutes past the hour right now. and here are the top business stories from around the world. in the united states, the search for the $1,000 golden ticket has put investors fresh from the holiday weekend in a very good mood. the futures are higher. >> in asia, japan's government chief says the economy is unchanged, but did warn about the record jobless rate there. >> and in europe, the m&a fever is spreading with telecoms planning to merge their uk operations. >> welcome back to "worldwide exchange." and it, look like that investors are going to come back from the labor day holiday here in the states in the mood to get back to work because we do have the futures pointing to about a 1% higher open after the dow and

the s&p 500 suffered their worst week last week in nearly two months. moving on to the treasury market, the government comes in with another $70 billion in debt this week, more than half of it today alone in shorter term notes. the yield right now is creeping down at 3.44%. but the story remains gold. it is hitting a six-month high over $1,000. perhaps on economic fears and the weaker dollar, but nonetheless, it is rallying at over $ ,000 per troy ounce. louisa. >> it is. and with the weaker dollar intact, as well, by the looks of things, the question is how long it can continue. our european markets here, we are seeing a bit of buying for the third straight day in a row, which means we're continuing to test these 11, 12-month highs at the moment. with our european markets putting on small 5% or so in

gains, we had cadbury and kraft yesterday proposing a takeover of cadbury. the stock is up this morning on the thought that they could be sweetening their bid. on the forex side of things, sterling seeing a bit of a hop today, higher by almost 1% on the back of stronger than anticipated industrial output data in the uk and we're looking forward to the bank of england's rate setting decision on thursday. over to the lady in red, maura. >> thanks, louisa. we had some comments out from the japanese government moments ago, in essence, it's assessing the economy unchanged for the month saying they are seeing signs of pick up, but the record jobless rate is beginning to cloud the outlook. it's a really strong trading day in asia helping to push the bourses higher. in australia, markets are up by

1. 5/%. chinese companies are increasing stakes or helping to fund investment projects for australian mining companies in exchange for long-term supply contracts. hong kong close up by 2% and the shanghai composite up by 1.7%. crude prices moving higher today, as well, ahead of the o peck decision. that's coming out tomorrow as we see nymex light sweet crude gaining about $1.50 at $69.48. brent crude is showing strength at $68 even. mike. >> thanks, maura. ken, i'd like to start with you. i realize that one or two days doesn't a trend make, but could we be bucking the september bearish trend? could it be true, as the bulls have been saying, that all these professional money managers are coming back to work post labor

day and they've got $3.5 trillion in cash to play with? >> i think that's the big story right there, that a lot of money still sits on the sidelines. there's never this bell that rings that says it's safe to come back in the water. but as you start to look at m&a activity, that's a good signal that things are start to go thaw out a little bit. the individual investor needs to start looking at that and seeing what types of moves they want to make. i have to say we are starting to get somewhat optimistic that not only is the worst behind us, but that the system actually does work. we went through a long period of correction and now it might be time to come out and play cautiously again. >> and justin, the chief investment strategist is quoted as telling clients, and i'm quoting now, what looks more and more like a v-shaped recovery is

even stronger than my optimistic expectations. what do you think of that? >> well, the great thing is, in the states, you're far more optimistic than cynics left over in europe. the glass is half full. for europe, it's half empty and as far as britain is concerned, it's probably half cracked. you'll see a september surge and that's all positive stuff. i believe you will see the volatility in there because there will be those who want to take profitability out of it at the same time. but the good news is, as ken was just saying, we're past the worse now. the m&a adds encouragement to what's going on. there's a change in sentiment. when we move to the next stage, it will be where does the growth come from? in the meantime, money will be wanting to try and find a home.

>> justin, to some extent, though, that's happening and you indicated yourself during the break, that you've seen a large impasse for example in your own company investments. talk us through some of the changes you're seeing in your portfolio. >> during the summer, there was a change in attitude. in five years' time, is it better than it is now? to the answer, i guess it probably is. and that's what they were doing. but actually, what they were doing is not so much into the uk, much more into emerging markets down in southeast asia. using a nice run on china, taking profit out of china, not so convinced by the commodity prices to there, but also, i think, looking and being able to make use of -- greater use of currencies, certainly emerging market currencies against dollar, against sterling, against euro, as well. and dollar euro and sterling are the ugly sisters at the moment having a game of who can look

ugliest. i suspect sterling may come out looking pretty horrible. >> yeah. i think the bigger issue is that what you were just discussing that five-year time frame. as invest hes look at this current period, trying to make sets had he said or tails whether september is going to be a good or bad month, investors need to look past that and realize committing capital is not a trader's mentality. and keeping focused on that and not letting the seesaw battle that's going on while the ship is turning, if you will, is very important to keep in mind because these are, you know, very rough time and anyone that tries to do that is going to get beat up pretty good. >> ken, i think you're absolutely right there because one of the issues we've had in the past two years is people have been absolutely terrified by things they knew as being solid, like their banks, like the capitalist system. all of that was called into question. so now that confidence starts to come back in and it's up to us as an industrial to reassure them and say, excuse me, we're

trying to run this money hopefully over a longer period of time and bring back that confidence. >> you have a lot of very nervous money out there, but as the m&a activity is start to go indicate, you have to start dipping your toe back in and maybe start making commitments gradually. but you don't want to be out of this -- whether it's a v or a u, you don't want to be out of this trough as you look at the longer term. >> ken, it's maura in asia. what do you make of this latest move of gold above $1,000? >> if you look at the traditional definition of why someone buys gold, high

inflation, high uncertainty, part of my mind goes, i don't understand why gold isn't it $2,000 right now. i think it talks about the idea of the continued gold infrastructure play. but i really do believe that the idea that the worldwide economy is going to need more resources and more infrastructure build out. >> ken, thank you for now. you're staying with us, so stay right where you are and we'll come right back to you. justin, time for your final thought and i want to mention paul, who says if you put the s&p chart on to a weekly chart, you'll realize that this great rally is nothing but a bleep in a falling market and also a question from gary wondering whether it's best to invest in mining stocks or investing into general resources with the next 12 months in mind. >> well, i think it's more interesting because of some of the m&a activity that's

happening there. commodity prices, if we're going to see a sustained recovery, thennel you'll see a further push on there. however, if the weakness does not seem to be carried through, it will see it coming back again. i would always have exposure to those. but the buying is now on the dips. >> justin, thank you very much. just yun stewart, partner frefb investment management. >> japan today is leaving its overall assessment of the economy leaving unchanged in its report, saying that the record jobless rate is still a problem. the cabinet says in its report it is revising upward its assessment of corporate profit and capital expenditure as the pace of deterioration has moderated. let's cross live to tokyo and check in on the trading day with ken moriyasu from the nikkei. hi, ken. >> hi, maura. the nikkei index rose 0.7%

today. toyota motors said today that it will hire seasonal workers for the first time in 16 months. tie tie had suspended such hiring in june last year due to slumping sales worldwide. but a government subsidy for environmental friendly cars has boosted sales of its prius hybrid, so much so that existing workers cannot meet demand, which sounds a little different from the government economic assessments just announced. renoun says it will sell its entire interest to uk fashion company broadwick. it will sell to ytm mart, a licensed management firm in hong kong. >> and a new trend in japan, hotels, beauty parlors, cooking schools are slashing prices in an attempt to stimulate demand.

hotels are offering a half price deal where two people can save 50% a night, well below the break even line of 60%. starting thursday, tokyo disneyland will offer discounts to customers that enter the park at least twice this season. that was the nikkei business report. back to you, maura. >> thank you, ken, very much. coming up on "worldwide exchange," a classic in american movie sess soon available for everybody to see on the internet. but the magic will only last one day. stay tuned for more details on this story. i'll give you a hint. it has to do with lions, tigers and bears, oh, my. no bears on wall street, though.

welcome back to cnbc's "worldwide exchange." president obama has named u.s. car czar ron bloom as his senior counselor on manufacturing. bloom, who will still run the white house's auto task force will work with government agencies on policies to boost the struggling sectors, such as promoting green jobs, administration officials say he

will not dictate what products a factory should make or how much they should produce. bloom previously advised the united steeler workers union and he worked as an investment banker, as well. meantime, aol has fired former executive brad garlinghouse to run its group and beef up the clearinghouse. in a 2006 internal mem row, that paper was referred to as the peanut butter manifesto. since then, yahoo! has changed coes two times. garlinghouse has been an adviser at silver lake partners. in other news, anybody with a computer and a high speed internet connection can be off to see the wizard for free next month. dvd rental company netflix is streaming the classic film in

the u.s. for 24 hours on october 3rd. this is part of a promotion of the 70th anniversary of the wizard of oz. netflix hopes to introduce more people to the convenience of seeing movies online. a movie will be shown on an inflatable screen in central park, as well. lions, tigers and bears, oh, my. >> if i ever have children, they will only be able to watch old movies like that. they're so innocent. anyway, toouk has fined barclay's bank over $4 million for failing to report transactions in 2007 and 2008. banks are required to report transactions the day after or day a transaction is executed.

barclay's claims that it's cooperated fully and agrees to settle at an early stage. maura. chinese automaker tengzhong says the deal to purchase hummer is moving forward. b there have been questions on the deal. a bank family with the situation says hummer is expected to produce much less than the $500 million gm expected when it put the deal on sale back in 2008. >> u.s. "squawk box" follows "worldwide exchange" for viewers in asia, europe and the united states. joe kernen is here to tell us what to expect. >> hello, louisa. it's been a while, but maybe still well known. we're going to talk about usual

things today like jobls, fixing the economy, health care reform start, our guest host, former white house economic adviser glenn hub barred. also from public to private, citizen james lockhart, former director of the fhfa is now working for wilbur ross. it's a vice chairman now at wl ross and company. and it's r glenn hubbard as opposed to l. ron hubbard. because if we had the other guy, you can imagine. oh, my god. anyway, he is going to talk to us, mr. lockhart is. also making the right call on the credit crisis. shawn eegan is going to tell us if anything has changed, when the next storm is crewing and you can comment on that

blockbuster court ruling affecting the ratings agency, as well. gold hitting 1,000 and president obama's big health care speech, "squawk box" will start at the top of the hour. back to you. >> joe, thanks for that. we'll see you in a bit. >> okay. >> and it's been so long, joe needs a haircut. some think the markets need a haircut and as the u.s. futures show a positive surge, will we see progress in this market rally? he's not going to like that, i know. we'll look ahead to the wall street open when we come right back. welcome to the now network. population: 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. eight are wearing bathrobes. two... less. - 154 people are tracking shipments on a train. - ( train whistles ) 33 are im'ing on a ferry. and 1300 are secretly checking email... - on a vacation. - hmm? ( groans )

that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. sprint. the now network. deaf, hard of hearing and people with speech disabilities access www.sprintrelay.com.

welcome back to "worldwide exchange." let's get another look ahead to the u.s. trading day and bring back in ken cayman, president of mercadian capital. ken, i'm assuming you saw barrens did a big cover this week interviewing ten guys saying they see the s&p modestly higher by the end of the year. what is your call? >> i think that is probably not a bad bet. i think, though, as we look at

the current period, the story you did about the wizard of oz is apropos'. i think people need to look at the wizard behind the curtain. i think the headlines will be more of what drives the market over the next couple of months. there are big issues that will be very much coming to hopefully some sort of conclusion one way or the other, which is going to create a lot of headline risk for the market. that sals very hard to predict. >> ken, earlier you were talking about how almost all the m&a activity is luring investors back into the market. but you don't really have to do so if it's a w-shaped review for the economy. what do you think the economy recovery will look like? >> i think the economy is starting to see a recovery and we're going to get that. earnings announcements or

analyst outlooks are looking for a lot of companies to have significantly better earnings than the earnings of a year ago. so the comparison should be pretty good. economists, you know, are kind of looking for, you know, growth to start inching its way back. so it's a bit of a die vergence there and people need to keep that in mind, that i think as economies start to get their footing and growth starts to come back, that is going to continue to play very well for investors. but i do believe that -- yeah? >> sorry. just briefly, which asset class would you prefer now through 2010? >> sch asset class? i think having a broad diversification between all asset classes makes sense. primarily, i still think equities are attractively priced over the long temple. if you look at where equity res now -- >> ken, we've got to go. we're running out of time. i apologize. >> not a problem. >> sorry about that. that's going to do it for today's program. i'm mike huckman in the u.s.

>> i'm louisa bojesen in london. >> and i'm maura fogarty in asia. thanks for joining us on "worldwide exchange."