with the mr. clean magic eraser. hi. i'm christine tan in asia. stocks retreat from a one-year high as the stronger yen hurts japanese exporters. >> hi, everybody. i'm louisa bojesen. avendi makes a $3 million bid for brazilian at the lco. >> i'm mike huckman. in the united states, president obama gears up for a high stakes

speech to congress tonight to make his biggest yet for health care reform. >> hello, everybody, welcome. you are now watching cnbc's "worldwide exchange." we're very pleased to have you with us. we'll take a look at the broad based ftse cnbc 300 index indicating relatively flattish trade. 4,203 on this, again, the broad based index. we're seeing a bit of selling taking place in some of the miners. just a bit of money coming off the table with them today. let's switch on and show you the overall european bourses. we started around the flat line, the ftse 100 now a little lower, we're seeing selling in the miners and there's a whole host of companies that have gone ex dividend today as it is a wednesday and that's having an impact on the uk market, as well.

the currency rates, the cross rates, ahead of the bank of england meeting tomorrow where no change is expected, and it does seem like we're looking more at the dollar and the dollar weakness that has on the commodity spurts we're seeing these days with gold still being above that $1,000 per troy ounce mark as we'll see in a second. let's head over to asia and hear what's been going on in the overnight session. hi, christine. good to see you again. >> hi, louisa. here in asia, this is how the markets are looking. a little profit taking going on after yesterday's spectacular rise. the weak dollar hammering the exporters there. the strong yen hurting the japanese exporters. the kospi lower by 0.7%. the shanghai up by 0.5%. the hang seng down by 1% as well as the s&p/asx 200.

oil and gold are rising. nymex light sweet crude, $71 a barrel. brent crew trading down 15 cents, $69.30 a barrel. mike, good to see you. how are the futures looking today? >> good afternoon. good to see you, christine. just as the american markets seemed to follow europe and asia higher yesterday, it looks like we're going to follow them lower today. perhaps that's not a surprise that investors might want to take a bit of a breather after over the past few days, the dow has been up over 2.3%, the nasdaq has been up 3.5% in the rally and the s&p 500 has climbed 3% in that two-day period. we'll check the yield on the bund. on the benchmark 10-year t-note, the yield went down and rose to

3.46%. today we have the government coming in with yet another auction. this time, it's $20 billion of ten-year notes. we've got some federal reserve members making a couple of speeches and then, of course, the beige book coming out. that could impact what happens here. right now, the yield is sitting at 3.46%. finally, christine touched on it. we have gold yet again trading below now $1,000 an ounce. it hit a high yet of $1,007 per ounce, but settled below $ ,000, about $the 97 and change. so it is up from yesterday, but trading below that psychological threshold, if you will, of $1,000. christine, over to you. >> mike, let's talk a bit more about gold. joining us for market strategy, we have mark ali ben and here in singapore, we have muka a

kumada. the weak dollar is hammering the exporters here in asia. can asian markets and asian economies, can both of these recover if the dollar remains weak? >> i think they can. in the short-term, the weak dollar is a concern. we have gold which was mentioned in your record, breaking the $1,000 barrier. so that is a short-term concern. over the intermediate concern, i think the biggest story in asia is that there is reallocation of funds towards markets that have a greater potential in let's say the next few quarters. for example, that's what we are doing and that's what we are looking at 0.we have a preference for european equities at this jungt temperature because you have a global recovery going on. if you look at long-term historical data, you will find among the top ten, most of the high markets are basically located in europe, western europe, so you have a liquid

market with about companies, attractive valuations, which tend to do very well, better than other markets in a general bulis environment for equities, which i think will persist for some time. so yes, the dollar plays a role. the currency issue is a short-term concern. but i think over the long-term, asia will do fine, as well. for the time being, i think there's just more interesting propositions out there and that's what's happening in markets. >> as an investor, does the weak dollar concern you? >> we are in line with what has been said. we are not that much concerned with the weakness of the dollar. we don't think -- we do not buy that the reserve dollar could be questioned for the years to come. if so, to some extent, we see the dollar as a definitive line for asset allocation. we see there is -- since the

start, there has been a nice correlation between risk appetite and the dollar. we use the dollar as a definitive line in place of risk appetite. you know, in the risk aversion story, we have a rebound to the dollar. so the dollar is a picture of our defensive line with also european bonds. >> that is really interesting, marc-ali. it's louisa in london. and i have to bring in the weak consumer credit figures in the u.s. they're not indicating any type of continued strength in the u.s. economy if we're looking for this consumer led rebound. i.e., the dollar, you think, would be moving lower at least in the short to medium term. >> yeah. we think that -- we think that part of the story of the global rebalancing is the fact that now the u.s. group will rely on

others and we are strengthening the evolution on the corporate investment because we think that the part of the story is the rebalancing of the engine growth of the u.s. u.s. as to also now to rely on ex ports and the strength of its corporate sector. because for the consumer, we know that the situation is pretty determined and faces a structural shot on labor markets. you know that the story has led to exit capacities in sectors like construction, so we know that the situation in terms of employment is likely to be deteriorated for years now. and the second point is the american house homicide has to face deleveraging. and according to the fed, it will take a decade. so we are basing on the rebalancing of the u.s. growth

which we will rely on. >> i want to draw people's attention to something happening. it's the ninth of september, 2009, and in nine second, it's nine seconds past that date. how often have you seen that happen? except, granted, this says 08, which is gmt, which is an hour behind. but if you're looking at local london time, that's taking place. anyway, a bit of fun. mikia, let's get back to the markets and pick up on your point about how you still like the european equities right now over other equities. what would you in particular be looking at? where do you see most value in

europe, then? >> well, i think from a sector perspective, the situation in europe is similar to the situation in the u.s. we have a preference for the -- in general and that is true for europe, for the so-called cyclicals. we do like, for example, the european industrial sector very much. this is an area where you have, you know, world class companies at very attractive val you autoations whose growth potential in coming borders is stronger than you might find it in other markets, for example, also in asia, where a lot of the good stuff is being discounted by markets. so we do maintain a general cyclical point of view for the global economy in general and since i mentioned before europe tends to be a high beater market, that is especially true for the european yeah, including the uk and switzerland, of course, not just the euro zone. >> marc-ali, this is mike

huckman in the states. for all the reasons you ticked off just a moment ago, is that why you are reducing your exposure to u.s. equities right now? >> we are reducing our exposure to u.s. equity with the idea that we have to gradually rise to risky assets and what we have done since now, you know, last april. and the reason why we are now strengthening our position on european equities to the expense of u.s. equity is a valuation story. you know the main forces that we are driving on is essentially the reinflation forces. we have clearly seen some valuation are heat. and the market is clearly aware of these things. you have seen during last august that the chinese equity has better price for having been so

expensive in terms of valuation. with respect to the mature equity. so we are very, very -- i would say we -- i mean, we are especially addressing equation on valuation and we think that european equities are especially on the side. and the very last word, you know what is interesting in europe is the kind of economic originating. you have export led economies in europe, but you also have germany, you have some consumer led if you take broader, for instance, like europe. >> and mikio, health care is once again front and center here in america. how, if at all, do you play

health care reform in the equities markets or do these sectors get too buffeted until we finally see a compromised solution, which is what a lot of people expect to happen? >> to be honest, the health care reform issue does not play a big role in our world view at the moment, at least, until maybe if we get some clarity of what will actually happen that might change. if anything, i think the health care issue is of destruction and in the sense that perhaps now the u.s. policymakers should be focusing on more, you know, short-term issues about to get the economy going. obviously, i understand there is a domestic political situation is very different. but from our point of view, we would like to get this issue off the table as soon as possible with a decision of any kind so that we can look at sectors with greater certainty. having said that, the financial

industry as an equities sector, which, of course, includes the insurance company, hasn't been bad. it's been doing quite well, as well. so there is not a -- it's not a very big concern, although if anything, it's rather a distraction from other growth-oriented issues from our point of view. >> mikio, thank you very much. and also thank you to you, marc-ali ben abdallah, from credit agricole. viven did i plans to make an offer for brazilian telco gvt. the offer is subject to the board's approval. this is the latest move from va inventory inventoridy after it tried to buy the african company zane.

>> the president tells abc's good morning america program the speech will help the public understand what he's proposing. president obama's plan has been stalled in congress largely due to disagreement over a government-run insurance option that would compete wit private insurers. house speaker nancy pelosi is essential, but other top democrats, including house majority leader stenny hoyer says the provision is not key for them. >> mike, singapore is the easiest place for business according to the worl bank. it's doing business 2010 report puts the city state in singapore the lead for the fourth straight year. the survey now in its seventh year ranked 183 countries based

on a variety of indicators such as saturdaying a business, protecting investors, paying taxes in ease of closing a deal. the u.s., for your information, mike, came in fourth and louisa, the uk came in fifth. so i like to invite both of you to come visit me in singapore and really experience what this report is talking about. >> oh, you show off. it does take into consideration things like employing workers, for example, which is why luxembourg is way down on the list compared to some of its neighbors. but if you look at saudi arabia, coming in 13th on the list, which is interesting, as well, because although it is difficult to get around some of the labor issues in saudi arabia, they're still very good at starting businesses and registering properties very easily as opposed to a place like hong kong, for example.

mike. >> yeah. we were number one, i think, in employing workers and, what, number four overall, i think it was? so i guess we'll take christine up on that invitation to go to singapore. >> i think we should, definitely. ool you'll have to deal with mike and i for months and months and months, christine. >> i welcome you with open arms. do come and visit me. coming up on "worldwide exchange," a new regulation could slash profits at european and uk investment banks. we'll look at the biggest losers and plus, saudi arabia's oil minister says crude markets are in, quote, good shape.

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hello. welcome back. this is "worldwide exchange." we need to get around our equity markets for this global roundup. we're joined by becky meehan joining us in london, patricia szarvas is in frankfurt,

stephane pedrazzi is out of paris and adam joins us out of singapore, as well. becky, beegee group is receiving a lot of attention this morning. although it's very hard to gauge these oil finds. >> one of the fields of brazil has had a find, which is part owned by bg today. overall, the ftse 100 is moving a little lower. we're down by just about 14 points or so. but for the past few days, we've had new closing highs for 2009. now, a few of the stocks to mention, bg, as we said, is one of the biggest gainers, adding 1.8% at this stage of the day. the property stocks aren't doing too badly. hammerson is moving higher, by 2%, for example. barclay's, coming out with a trading statement and saying

that they see market stability continuing in the property market. that was very much what investors have been looking out for in these recent times.> patricia, how is it looking in germany? >> it's not looking too bad. at the moment, we are down 0.4%. bmw is still the strong performer, reacting to an upgrade from the royal bank of scotland this morning from buy to hold. very bulis comments, indeed, from the ceo talking about the business, talking about the return in equity actually coming in in 2012 and talking about starting to repay funds earlier than 2012. the market is continuing to take these comments very well. however, thyssenkrupp is down

more than 2% now. it seems the market is listening more to rather than the denier coming through from the company. let me quickly tell you what seemans just said. they target growth of twice the growth we see in the global market and they do look at global profit, with up about 6.6 billion euros for 2009. over to paris and stephane. >> and in paris, the sessions today driven by the carmakers told the newspaper that the crisis was clearly behind us. however, it stated clearly, also, that the recovery will be gradual and would take several years. also regarding the recovery, the market would peak first in the united states and we would have

to wait until the end of 2010 regarding a recovery for europe. we had also some positive comments from the ceo of ads speaking to lexington newspaper saying that the business was with starting to peak up and that it would confident with a forecast of airbus for the next year is expecting a 4.6% in air traffic rise next year. however, it's clear that the visibility is still very low and would have to wait for the next year to know exactly the depth and the length of the crisis. eads trading slightly lower. let's have a look now at the asian market with adam in singapore. morning, adam. >> thank you very much, stephane. good morning to you.

before we get to the composites, take a look at japan. the equity markets came under pressure here. financials once again weighing down on the equity markets in japan and actually we have sizable losses amongst the top lender. there are lingering concerns that discussing yesterday that the bank of japan will have to raise more money following the g-20 summit meeting. of course, the auto exporter stocks came under tremendous pressure, as well. as we continue to see the weakness of the u.s. dollar across the boards, that pushed the yen higher. while the yen is lower at this point in time, most of the trading session it has been lower and that is a negative for the autos. particularly for companies like toyota, remember, they budgeted in '92 for this fiscal year, so

if we continue to see strength in the japanese year, this could be a problem. on that note, back to the u.s. with mike. good more. >> thank you, adam. there's one notable item today, the fed's beige book, the report that's published eight times a year on economic and business conditions from the fed's 12 regional banks. charles evans will be in new york at 7:30 in the morning to speak about the great inflation debate before the council on foreign relations. about 2:00 this afternoon, dallas fed president richard fisher will be speaking about economic issues facing his home state of texas and that is your global stock watch. christi christine. >> well, come up on "worldwide exchange," the oil market is in good shape, according to opec. we'll assess what the cartel will and won't do at tonight's

meeting in vienna. plus, the bank of england is set to leave rates on hold tomorrow as it sees signs of a recovery. what is the uk data going to tell us?            

i'm christine tan. here in asia, the shanghai composite bucks the down trend

rising for the second consecutive day boosted by melthsdz stocks. >> hi, everyone. i'm louisa bojesen. stocks are lower in europe as vivendi makes a bid for brazil ya telco. >> and i'm mike huckman. in the united states, president obama gears up for a prime time speech to congress tonight to make his biggest case yet for health care reform. >> welcome back, everyone. just grabbing the data as it hits the wires, we're waiting for all the trade data from the uk and the uk july global goods deficit stands at 6.47 billion pounds sterling, almost 6.48 billion pounds sterling. consensus was for 6.3, so it's slightly higher than anticipated and that's versus a june revised figure of 6.5 billion pounds.

when you look at the non-eu trade gap, that's slightly higher than the anticipated 3.5. and looking at the july imports, too, you're seeing global goods trade deficit, 6.5 million as expected. ex ports up 5% for july. and imports up by 3.5%, the biggest rise since january of '08, as well. the sterling trade right now, 1.6466, though, coming off just a little bit. and let's glance at the broad based markets. the ftse cnbc global 300 giving us an indication that our markets are lower across the board now, having come off earlier session levels of right around the flat mark. the ftse having been in positive territory once we started trade. you've got a whole bunch of companies going ex dividend such

as bhp billiton, tui travel, all ex dividend and that has an impact and we're having selling in some of the commodities being bought up in yesterday's session as well as nymex and gold being bought higher. let's show you the currency markets, as well. the cross rates, here sterling against the dollar on the back of this data and ahead of the bank of england's rate decision change tomorrow. no change anticipated there. other than that, it's a relatively quiet day, though. what's going on in asia? christine rejoins us to talk about asia. >> louisa, the strong yen and the weak dollar is hammering the exporters in japan. that seems to be the issue. the nikkei 225 down 0.8%. the kospi down 0.8%. the shanghai market is the only market bucking the overall trend. we had talk from regulators that it was scaling back the pace for approvals for ipos.

the hang seng didn't get any lift from the shanghai down 1% and the australian market is pretty much flat after that surprising drop in retail sales data that hammered the aussie dollar, as well. overall, a weak session and a lot of downward pressure here in asia. mike. >> and the downward pressure looks like that it's going to carry over here in the united states when the markets open perhaps five hours from now because we've got nothing on the docket that would move the markets the other way. markets are lower across the board after three straight up days in a row. the nasdaq had its largest three-day percentage gain since mid-july. perhaps it's understandable. the yield rose to 3.46%. that's exactly where it is with sitting at this moment.

we've got the government coming in with another auction today, a total of $700 billion in debt going out from the united states this week along. finally, if we can take another look at gold, because the rally there continues. and it's not just in gold. we also saw copper and silver hit new highs for 2009 yesterday and that rally continues this morning. right now, spot gold sitting at $996.80 per troy ounce. christine. >> mike, we have auto news to tell you about, china's parent of gelley holding may bid for volvo. rather than take a stake in volvo, geely is aiming for bud ownership. and geely is one of three bidders for it.

the other two being beijing automotive holding and a group of european investors. this is how geely is doing today. trading up 1.9%. elsewhere, china's $300 billion wealth fund cic is looking at making big investments in real estate. this is according to the wall street journal. in recent weeks, china investment corp. has held talks with u.s. investment firms such as blackrock and lone star. representatives for cic, blackrock, investco and lone star have declined to comment. a consortium and a malaysian investor will buy a stake in zain. the deal, worth $17 billion is one of the biggest investments

into the gulf region. zain, until now, had repeatedly denied rumors that this deal was in the works. shares are lower at 7.3%, 128. >> staying with m&a in the telecom sector, the french entertainment and telecom group, vivendi, has announced that it plans to launch a bid for brazil ya telco gvt. it would only go forward if it could get 51% of gvt's capital. this is the latest move from vivendi to invest in emerging markets after it failed in talks in july to buy zain. opec is likely to keep oil output unchanged. yesterday, saudi arabia's oil market said markets were, quote, in good shape.

analysts expect the group to keep its current production level, which is just under 25 million barrels per day. vismont has reported a five-month drop in sales with revenue in the region plummeting nearly 40%. the swiss luxury goodsmaker says sales in the middle east have failed to offset a decline of sales in europe. they're still urging caution, rather. that would be your watch that we're looking at there, mike? >> no. this would be my watch. i just -- i can't get into that trend of, you know, these big, huge dials and i don't have the wrist size for it nor the bank account. >> right. whatever. diamonds encrusted, sure. we know better. >> yeah.

no bling for me. you're the one with the nice glittery, shiny, silver necklace from yesterday. oh, and it's back. no, it's gone. the congressional panel mean time overseeing the t.a.r.p. says taxpayers will face heavy losses in its bailout of the auto industry. in the latest report it says it's unlikely the initial $23 billion given to cries lever and gm last year will be repaid. the government owns 10% of chrysler and 61% of gm. the panel recommends the treasury put its auto holdings into an independent trust to avoid any complex. the head of that panel will be on "squawk box" in the u.s. after "worldwide exchange." meantime, the buzz is getting louder as investors gear up for apple's music themed media event today in san francisco. analysts don't expect any

game-changing product announcements, but you never know. a refresh of the ipod and itunes music store are most likely, but apple's events are closerily watched because there's always the possibility of a wild card here. this year, it is whether ceo steve jobs will make an appearance. it will be his first at an apple event last year and since returning from medical leave in june and apple shares rose 1.5% on tuesday to a new 52-week high. christine. >> he's rather animated, isn't he? well, we're looking forward to seeing more of that if he does show his face. you can get more news, videos, wlogs, anything moving markets today and there are plenty, cnbc.com. we're moving on to our next topic. dollar weakness helping to keep gold prices above $1,000 an ounce. analysts said the gold market was supported by an announcement by barrett gold that it would issue $3 billion in stock to

fixed price hedges. joining us now, martin hennecke. martin, good to have you with us. gold touched $1,000 yesterday, now it's pulling back just a little bit. where do you see the price of gold? will you still be buying gold at these levels? >> oh, still at these levels. we believe every investor should have exporter to pressure metals. if you compare the prices even with the 1980s highs, gold reached an absolute high of 850. silver reached a high of 50 u.s. dollars. adjusted for innation, about $2,400 for gold about $140 u.s. dollar for silver. so based on this, there's still a lot of room to make a new high. but now, the fundamentals for the gold market are much more positive on one end. you have this debt problem in the u.s. moving out of control. on the other hand, you have gold supplies being depleted.

the quarter to last year was weak with the disruption of equity supplies. >> martin, did i hear you correctly say you expect to see gold prices reach $2,400? >> actually, i gist windowed out somewhat of a benchmark to say reaching a new adjusted inflation high, gold could have to reach $2,400. we can see another deflationary crunch in the u.s., something similar to what we have seen last year, which is why we don't see move in there, speculation, borrowing money to go into gold, but play completely safe with money on the sideline. one should be completely debt free. there could be even more upset in these fundamentals because now they look better than they

did look in the 1980s. >> mark, there is mike huckman in the united states. what is that move saying about the hope for an industrial-led recovery, especially in china? is this investors interpreting that china is going to once again buy mow raw materials that are needed to undergo with its infrastructure improvement? >> well, for silver, not necessarily. gold and silver are something of a separate story. there, simply china is looking to increase their reserve and they're trying to get rid of this without trying to collapse in the dollar and they're trying to accumulate gold without driving up the price too much.

and china is looking more and more to invest in the metal as being the largest consumer already this year having surp s surpassed india so far. gold and silver, both of them, they don't really need industrial demand. but having said that, clearly, as you pointed out, the chinese economy does look very, very strong clearly compared to the u.s. there's hardly any comparison. the manufacturing numbers are everything looks quite positive. for silver, being a metal that's much used in industrial demand, there's hardly a way i could see it fall drastically from here because it has domestic demand and industrial side from china. copper, we are placing that higher on the pressure metals side and more on the arguing side which is another commodity that hasn't risen this year at all. >> martin, hi.

if you look at gold being played as an inflation hedge, it's nom. and i'll3 the tips, inflation projected securities which tends to be a better indication of where inflation is heading. it's only showing us 1.4% annual cpi for the next five years or so, which is nothing. i mean, this inflation that we're being told is coming and we should hedge against and invest in gold, is there a possibility that we're wrong? >> well, we have seen 89 bank failures in the united states compared with 25 for the whole of last year and three the years before. if we saw deflation, we would see a lot more banks fail and investors looking for some form of an investment that's not any counter party risk. having said that, i don't think there will be deflation. i think the next big story is

inflation. i don't think, you know, with the tips of inflation links, skoven bonds generally that those indicate where it's necessarily going to head. i would rather look at the announcement of $9 trillion to $10 trillion of debt that they had to sell over the next few years. there is no example in history that these kind of numbers haven't led to very high or even hyper inflation. >> the saudi oil minister indicating that no change is going to come about from the opec meeting in production. he says that global oil inventories are high. you have approximately 630 days or so of forward cover as far as i understand. he's recorded of saying with a price range of 68 to 73, what more do you want? martin, where is oil heading? >> on dpoeld, since 2009, we

have seeing a fall of 1%. especially in south africa, it has dropped 08% in production since its peak. for oil, it's very much more tricky. it's not exactly known how much is there really in the ground and if the peak oil theories are correct or not. there are alternative views on oil that there might be more than people think. but we have a small exporter to oil for the longer term simply as an inflation hedge and as a play on the rise on the asian economies are quite positive generally and maintain positions. >> martin, we'll have to leave it there. thank you very much for your views, good talking to you, martin hennecke, associate director of teich. let's head over to india and join ayesha faridi. >> thanks for that, christine. another day of consolidation. it's consolidating around the

4,800 levels for the nifty. for the nifty right now, up about 0.4% for the accepts sense. it's the broader market which has taken a breather after the roundup that they've seen for the last few trading sessions. this is after the outperformance in just the first half of today's trading session. oil and gas is your big winner and, of course, commodities are looking very, very strong for a second day in the running. you have the entire metals basket in particular. it is actually i.t. which is coupled by auto which is the laggered in trade today. a couple of stocks news, jmar is in front. we understand they are going to review their energy arm and reviewing a huge sum of money. in about four to six months is when the i.t. should hit the markets. the story that we broke yesterday, that will develop,

the strok is still on. in fact, the national aviator's guild has now offered talks and some sort of talks between the employees and the management. we spoke with someone from jet airways and he says he will look at considering legal openings if need be. 160 flights stand canceled as off today. besides that, a whole host of counters. these stock res holding up. production has fallen about 15 odd percent. so the entire t basket in india is holding up nicely. all those stocks flying about 5% to 10% of gains apiece. with that, it's back to you. >> ayesha faridi, live from mumbai, that you can for that. mike. >> as gold glitters, it passed $1,000 a troy ounce. we had somebody just throw out another figure. and what impact is this having on the dollar or what impact is

the dollar having on this, on gold? if you've got surntsy questions or other comments, worldwide@cnbc.com. when this shoe store added aflac to its employee benefits package is

welcome back, everyone. this is "worldwide exchange."

we promised you we would be focusing on the currency markets, and indeed, we'll do just that. it seems quiet out there in terms of the actual percentage moves. jamie joins us in the studio. hi, jamie. >> morning, louisa. >> how are you? >> i'm not too bad. >> so you came on this morning and your screens were switched on. what are you looking at? what indications are you taking from the markets these days? >> just for any further moves on the dollar. obviously, we've seen the dollar weaken significantly over the last 24 hours due to diversification, especially the gold story at the moment. i'm getting away from the dollar and risk appetite. >> how much of a move would you anticipate there to be in the dollar as we continue to see commodities head higher? >> it is a commodity based move at the moment. diversification is going to generally set the euro to the main benefit. we saw it hit a nine-month high yesterday. and at .4720 after that for the

levels we're picking out. jamie, this is mike huckman in the states. yeah, a lot of people are putting out that number as a key threshold. but why do you think that the dollar weakness was as broad as whan visitor were saying yesterday? >> i think volumes are returning back to the market after the labor day holiday. especially if you look at a dollar perspective and the u.s. situation at the moment, the underlying fundamentals of the u.s. dollar is not particularly good. they've got a massive top happening. even when recovery is fully on the way, they're still going to have a massive trade deficit going forward from here. and the general feeling is that the dollar is maybe not the safe haven opportunity any more and that people are looking to a basket of currencies to spread their risk more widely.

>> speaking of basking in currencies, one of them is the aud trailan dollar, jamie. does this somehow take away any attractiveness to buy the austy dollar on any rate hike? >> i don't think necessarily. if you look at the aussie dollar, yes, weaker sales were particularly poor. we did see it come out at minus 1%. but looking forward from here, we have the unemployment figures coming out on thursday. now, the unemployment figures are expected to rise on 5.8%, 5.9%. but that's still below the 6.9%. it's forecasted in june. so kind of going forward from here, i do still see interest rates going up in australia, probably maybe not in october like people were initially anticipating, but sort of backend, of course, for beginning of course one, maybe 25 to 50 basis point hike. >> i will bake you a cake if the bank of england decides to

change its interest rate tomorrow. they're probably going to stand pat in their comments about continuing on with this easing policy that they're in the mist of. what do you anticipate that sterling is going to do, though? >> my biggest anticipation with tomorrow's interest rate decision is massive caveats, i think. i think they are going to keep rates on hold and that is a bit of a given and they are going to keep quantitative easing at 75 billion. the one thing to watch out for is if mervyn king does mention anything about increasing the size of the quantitative easing program. he was actually against it. so if there was any caveat that he mentioned, then you could see the pound reaching off. in germany, i don't think you'll have any reaction to the pound at all. >> jamie, it's mike again. what about thein and yong between what's happening with gold and the weakness we're seeing in the dollar? strength in gold, weakness in

the dollar. sfwh strength in the gold at the moment is a couple of reasons. firstly, the speculative trade is happening. secondly, people are diversifying out of the dollar. if you look at silver, order charts are going in the same direction and it's also that inflation risk, as well, that people are talking about. >> jamie, thank you very much. it's your debut. we look forward to having you in the studio again, jamie. >> thank you 37. now, beatles mania is still alive as the world's most famous rock band gets its own video game. beatles rock band, as it's called, hits shelves today. at $60 per copy, it makes viacom hope that it will renew numbers. the booelths will recap a record $1.6 billion in 2009 from licensing revenues and music sales.

beatles video game. i prefer a video game like this versus the bang them up and walk around the alleys with guns and things like that. this seems a lot more sweet in some ways. >> your speed. >> yeah, exactly, as long as they do "love, love me do." how about you, mike? >> i also wonder, you know, whether the michael jackson estate could also see up side from this. because doesn't he have a piece of all the beatles music, as well? >> oh, yeah, i think you're right. >> so his family could benefit from this and all the money that he owes so many people. christine. coming up on "worldwide exchange," we'll try to sort that out maybe with our guest on tech coming up later because there's a lot of talk that maybe apple is going to announce that it's finally putting the beatles

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i'm christine tan in asia. the stronger yen hurts japanese

exports. >> and i'm louisa bojesen. vivendi makes a $3 billion bid for brazil ya telco. >> and i'm mike huckman in the united states. president obama is gearing up for a prime time speech to congress tonight to make his biggest case yet for health care reform. welcome back to "worldwide exchange." if you're just joining us in the united states, welcome to the start of your global business day with "worldwide exchange," which is broadcast live, by the way, from the u.s., from asia and from europe. and in the u.s. right now, it does look like investors are going to take a bit of a breather today after a three-day winding streak for all three major indices because the futures are pointing toward a lower open in 4 1/2 hours' time after decent gains for the dow, the s&p 500 and the nasdaq over the past three days. moving on to the treshry market, let's check the yield right now on the bund first at 3.28%.

it's going down just a bit. we do see the government coming in today with another auction, i think it's $20 billion worth. the 10-year bund is sitting at 3.46%. finally, the gold rally remains a big story. it is still below that $ ,000 threshold, but up from yesterday, sitting at $996.35, up $2.95 per troy ounce. as we discussed earlier, this has resulted in new highs being hitter to copper and silver, as well. louisa, over to you. >> new highs for copper and silver, not new highs for the markets. we are still somewhere in the region of this 11-month high that we've been floating with. we're lower this morning on the broad based index.

4,207 is where we're holding at. when you look at the main indexes, we have seen more selling taking place here within the morning as opposed to where we were when we opened. however, having said that within the past 20 minutes or so, we have come back towards the flat line with the ftse 100 now. a lot of stocks having gone ex dividend on the ftse today and that's having an impact. the dollar cross rate, well, pretty flattish on the cross rates at the moment. right now, we're looking ahead towards the bank of england rate decision tomorrow. no change expected away from that 0.5% interest rate that we have in england and, of course, also we're looking at whether or not this overall trend, if you can call it a trend of persisting dollar weakness is set to continue. christine, how about asia? >> well, asian markets are getting hammered, of course, by that weak dollar. that's hurting exporters in

japan. the nikkei 225 is down 0.8%. the kospi is down 0.75%. we had news coming out that regulators are showing down the pace of ipo approvals. that should be good news for the market. the australian market is pretty much flat, slipping after that surprise drop in retail sales data in july. nymex light sweet crude, we are waiting for the opec meeting later in vienna today, pretty much range bound. remember, brent has been moving higher, as well, in line with what nymex is doing. taking a bit of a breather, as well. brent right now is trading along the ranges of $69.38 a barrel. down just a touch, 5 cents. louisa. >> thank you for that, christine. jumping straight from all of this information into our host, james bandi is here with us.

worldwide@cnbc.com, right there on your screen right now. how are you, james? >> good, thank you. what's changed within your viewpoint within the past month or so? we've had a bunch of confidence data out from the uk within the past day or so, really. we haven't seen these levels for more than a year during august. we've seen more staff being hired, also according to some of these latest reports. are you more optimistic? >> i think so. what we've gotten over the last couple of months is the confirmation that the green shoots turned into something more substantive. a lot of people are talking about second derivative improvement in the data. composite pmis go above 50 in all of the developed countries. indices are very much leading that. the gap between new orders and inventories in those indices is

very, very substantial and that tells us that we've got a strong recovery in industrial abruption is going to come through. so i think, you know, we can be reasonably confident over the next six months or so. we've got a start of the recovery coming through. there's still lots of questions about 2010. but near term, i think we can say, actually, there is a recovery coming. a lot of people are very skeptical for that even a couple of months ago. but we're going to get a decent second half of the year. >> james, this is christine. oil is not only higher, but we have commodities moving higher. is this another sign that the global recovery is in place? >> i think it is, actually. we're now seeing clear evidence that industrial production is pick up and therefore, it's no great surprise that commodity prices are firm on the back of that. they slighted anticipated that oil prices have been around $70 a barrel for quite a period of time now. i'm not sure that you can push dramatically higher from here, given those commodity prices because of, you know, what i

think are still some concerns about how quick the recovery will be next year, but certainly you can justify the move in commodity price that's we've had. i think with one exception, though, i still remain conceptual of the move in the gold price. >> james, this is mike huckman in the states where yesterday, as you know, we learned that consumer borrowing fell at its steepest rate ever. so based on the move in commodities that you were just discussing, is it going to be that type of industrial activity? and especially in china, that's going to lead the world out of this recession and not the consumer here in the u.s.? >> and even doubtedly the industrial side is going to leave us out of this. that's what i was saying, if you look at the gap between orders and inventories, companies, i think, overcaped employment, they overcut production, and we're now in a situation, therefore, where they've got to start to rebuilt production and output and probably even investment. the bigger question goes back to what you were saying about consumer credit.

what happens next year? once we've gone over this burst of inventory led recovery and output, do we start to get a follow through on the consumer? i think that the emerging market countries are probably going to continue to lead. the bigger unknown is does the developed world consumer still want to retrench his balance sheet? those numbers overnight were the biggest ever pay back of consumer credit in the u.s. we saw similar numbers out of the uk last week. it's clear the consumer wants to degear his balance sheet. that is why i think there's a lot of recovery last year. that has put a bit more confidence back into consumers. it's just the big unknown for next year. >> can i rewind you a page and go back to your gold comment? you say you're skeptical about this move we're seeing in gold. not a lot of people are saying that today because they don't want to be caught out wrong.

>> the problem i have with gold is it doesn't yield anything. it doesn't pay any dividends. and people have wanted to hold gold for the last couple of years because initially, it was, if you like, a flight to flight risk aversion. so you held gold because you were uncertain about other assets. i'm not worried about inflation going sfaurd. we have so much spare capacity in the global economy. even if we get half of a recovery, inflation is going to remain benign. so i don't really see what gold does for any portfolio. >> interesting. you're one of our first guests to say ta for a couple of sessions now and that's always a point worth noting. jaems, you're staying with us for the rest of the hour. continue to send your e-mails through, worldwide@cnbc.com 37. >> and still to come on

"worldwide exchange," will apple be taking another big bite out of the tech market? media and tech circles expected. we'll unveil a new ipod touch with a video camera when it makes a much anticipated announcement later today. stay tuned.

welcome back to "worldwide exchange." so the buzz is getting louder as investors gear up for apple's media event today in san francisco. new features for the i toouns music store are most likely, but apple's events are closely watched because there's always the possibility of a wild card surprise. this year, it is whether ceo steve jobs will make an appearance. it would be his first at an apple event since last year and since returning from medical leave in june. so apple shares rose to a new 52-week high on tuesday. joining us now with more analysis is duncan bell, the praying's editor at t3 magazine. good morning to you, duncan. thanks for being here. >> good morning. appreciate pleasure. >> so is this all typical hype and could this be a letdown today for techkies and for

investors, as well? whether a rock star is going to be there, whether a rock band is going to be there, whether he's going to say something about the ipod, itunes, some other new gadget, what do you think is going to happen? >> i think there will be a refresh of the ipod line. a time of the hype doesn't come from apple. they just send out cards saying, we're doing something. the hype comes from everybody else. it's with what they -- it's the prefigures that are going to b app announced. >> and anything to this consistent talk about apple finally putting the beatles catalog on itunes? do you think that's a possibility today or do you think that the only reason that's reach critical mass this time is because of the launch of the rock band today? >> also, the invite.

the invite says it's only rock and roll which is i'm told by a young person a rolling stones song. >> if it were to be announced, do you think it's something about taking the iphone type model, right, and putting it into a laptop which would be quite revolutionary if you're touching your laptop, wouldn't it? >> the amazing thing about the way apple releases products is it's revolutionary. it will be great for apple users, yes.

i think they're looking at february or march. it's very hard to second-guess exactly, but it's looking like early next year as opposed to in time for christmas this year. >> duncan, i'm always fascinated with the iphone, but i think there is a smart phone for new users. how big a threat will it be to the iphone? >> not huge. i mean, the pixie, isn't it? so i think it's fair to say the palm prehas done very well in the states. but it is generally seen as being a slightly watered down, not quite as good as the iphone, iphone style device.

it hasn't quite killed it as of yet. and i don't see any phone for motorola doing that and not the pixie, early. >> duncan, more frivolous topics, perhaps. you said that the invitation said it's only rock and roll. do you think that means that in this case or the rolling stones are going to be there today? >> possibly. probably not. it's not quite as amazingly super cool as people think. a kind of john mayer-type figure, i would think. the rolling stones would be a bit too -- even in their advanced years, would be a bit too dangerous. >> full disclosure, you have a blackberry and a mac at home and i been and i cannot for the life of me make them talk. you're constantly told there's software you can download. they're supposed to come out with another type of software --

>> how about the i.t. help level? are they going to release the software that we're anticipating this month to make it compatible for users to talk to mak? >> if you do know the right software, you can make it work. but yes, hopefully. so they are trying to play nice with other companies and make sure that they're compatible with essentially rival products. hopefully it will become a lot more straightforward. because a blackberry and abdomen apple are like partners in many ways, i would think. >> yes. duncan, we'll have to leave it there. thank you very much.

>> news, videos, blogs, anything moving markets today, whether it's iphones, health care reform, find them all at cnbc.com. still to come in europe, the trading session started in the red and are now in mixed territory. we'll tell you why in our global stock watch. i'm here on this tiny little plane, and guess what... 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. anything before takeoff mr. kurtis? prime rib, medium rare. i'm bill kurtis, and i've got plenty of room for the internet. and the nation's fastest 3g network. (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.

we are back. becky is in london, patricia is in frankfurt, stephane is in paris and adam is in singapore. becky, we've seen that wavering toward the flat line. >> it's a bit of green on our screens. basic resource stocks have been the weakest, down in negative territory, so to speak. lonmin had an amongst the biggest supporters. we have seen those coming off the lows of the session. we also see some of the stocks in the move this morning. property related companies, for instance, seem to be doing not too badly.

we heard from barclay's earlier on, barclay group, not barclay's. barclay telling us that they have seen the housing market stability continuing over the past four months of the year and that has sent shares of that company higher by 1%. amongsted the top gainers amongst the ftse 100 so far today. plus, bg group higher by 1.7%, in fact, at this stage. similar to the reaction sort of bp had big signs a few days ago. bg is performing pretty well today. patricia, how is it looking in frankfurt? >> it's looking better than earlier on. the chart behind me looks more dramatic than the actual move. we are flat line bing, but at

least we are back into the green so far. it is a car sector rally and bmw is heading that rally up almost 6%, a as we speak, reacting to a strong buy recommendation to the commerzbank of scotland. it all looks quite good and they're coming to repay very quickly what they ever got from the estate funding and there are some flashes coming through talking about the regulatory environment of the future for the banking sector and i think one session i want to point out is here that he sees the sector self-regulation won't be sufficient in terms of bonuses, for example, so that is something that we need to consider. thyssenkrupp is still down about 2%, worst performer. over to paris and stephane. >> the situation in paris has improved, although we are not flat yet.

the carmakers are driving the session with renault. the recovery will be slow but will start with the united states in the next year. we also have positive comments from the ceo of eads. he believes that the business is starting to pick up and he's confident with a forecast of airbus for this year, expecting for next year, so we're expecting a 4.6% rise in air traffic after a 2% contraction this year. however, it says that the visibility remains low and that we will have to wait for the next year to judge the depth and the length of the crisis, eads almost flat on the french market. let's have a look now at the asian market with, of course, adam in singapore.

>> thank you very much, stephane. well, the asian markets buckling under pressure today. up in north asia, the nikkei 225 and the broader topix declining, although coming off the worst levels of the day. but the two pressure points continue to be in toef, one, the financials and, of course, the big exporter stocks. take a look at them because the yen was stronger versus the u.s. dollar as we continue to see this u.s. dollar weakness story permeate the forex markets. that pushed up the yen and did weigh down on the exporter stocks. it does affect to some degree the financials. mittsby see ufj financial down by 3%. remember, these banks are huge portfolios of equities in the balance sheet so it can affect that. also, there are lingering concerns that they may have to raise more money down the line when the stricter adequacy rules

come into line in the coming years. we have those higher commodity prices at least until the london market started trading and that boosted the retail trading stocks, as well. on that note, it's back to you, mike, in the u.s. >> thanks, adam. and it's another pretty quiet day on the economic front in the u.s. there's one notable item, the fed's beige book, out at 2:00 in the afternoon new york time. this report is published eight times a year on economic and business conditions from the fed's 12 regional banks. speaking of those regional banks, chicago fed president charles evans will be in new york at 7:30 in the morning to speak about the great inflag debate before the council on foreign relations and then just before 2:00 in the afternoon, dallas fed president richard fisher will be speaking about economic issues facing his home state of texas. that is your global stock watch. christine. >> mike, come up next, m&a tops

the agenda today as a consortium of itemly come companies team up to buy a stake in kuwaitty telecom zain. >> and can president obama ko vince congress that the public option is the correct option for health care? these days every penny counts with everything you buy. every head. every bite. every gallon. every shoe. every book. every cereal. well, maybe not every cereal. but every stem. every stitch. every tune. every toy. pretty much everything you buy can help your savings account grow because keep the change from bank of america rounds up every debit card purchase to the next dollar and transfers the difference from your checking to savings account. it's one of the many ways we make saving money in tough times a whole lot easier.

it is almost 30 minutes past the hour now. in the united states, president obama gears up for a high stakes prime time speech to congress tonight to make his biggest kate case yet for health care reform. >> hello, everyone. i'm louisa bojesen. in europe, vivendi makes a $3 billion bid for brazil y'allan telco. >> and here in asia, a stronger yen hurts japanese exporters. >> welcome back to "worldwide exchange." we have futures pointing to a

fractional open. not a surprise after the three-day run that we've had in the market. the nasdaq up 3.5% during that same amount of time. that's the biggest three-day percentage gain from the nasdaq since mid-july and finally, the s&p 500 up 3% over the past three days. obviously, with that role into equities, we did see the price of the ten-year t-note go down and the yield go up, settling at 3.46% yesterday. let's take a look at where the yield is sitting right now on that benchmark ten-year t-note just up a little bit at 3.47%. and then the story continues to be gold. it is below that $1,000 threshold, but the rally does continue in gold and in silver and in copper. right now at $994.40 per troy ounce. up 0.1%. louisa. >> thanks, mike. our european markets, well, we

were around the flat line when we opened this morning. then we fell a bit and now we're off the flat line again with the s&p underperforming a bit based on some of the financials being sold there. the ftse 100 and the xetra dax in positive slight territory at the moment. i'd like to draw your attention, also, to a report in the fs this morning, indicating that moody's do not see sovereign debt downgrades, in particular towards the u.s., uk, germany, france or spain. there has been quite a bit of speculation that the uk could be in for this. equity markets, dollar cross rates, that's another thing, especially ahead of the bank of england's rate tomorrow. we're anticipating that the bank of england will stand pat. no change to its interest rate at the moment. christine, how are the markets in asia looking?

>> asian markets retreating after yesterday's spectacular gains. we are seeing a bit of a pullback, the strong yen in japan is hurting the exporters. the kospi pulling back 0.7%. the shanghai market, one of the few markets in the positive side. we have talk coming from shanghai that regulators were slowing down. that seems to be supporting the market. but that didn't help the hong kong market, down 1%. and australian markets slipping a bit after a surprising drop in retail sales data, as well. in terms of nymex light sweet oil, we are watching the opec meeting in vienna today and what they will say about production cuts, if any, or production output quotas and this is how brent is stacking up, as well. nymex brent is trading up 11 cents, $69.54 a barrel.

mike. >> thanks, christine. joining us for market strategy is dan greenhouse, chief economic strategist at miller taback and company. still with us is james bardi. dan, i'd like to start with you. after this significant run up that we've seen in the markets over the past three days, we do have the markets this morning pointing toward a lower open. are we due for a bit of a pullback here? >> well, certainly, you know, most people at this point are suggesting that the market could perhaps use a bit of a correction here, a healthy correction, not necessarily a one. a lot of people have made the case that perhaps the market was oversold at its lows. whether you agree with that or not, what you've seen since this is a recall bragz of the markets as it's trying to find a level of fair value given that we now know the end of the world is not effectively upon us. where we go from here in terms of equity valuation and more

importantly the treasury market, that's an unfolding situation day by day and is week by week. >> so what in numbers would you cyclize as you put it a healthy correction? >> in light of the economics data that we've been getting b, i'm not entirely sure that slapping additional multiples and driving equity prices here higher in the short-term is the right thing to do. i think taking a breather, 10%, 15%, perhaps, with just to reassess the corporate landscape wouldn't be the worst thing in the world. we've seen a string of economic data that's been getting and getting better. i think there are still a lot of clouds in the horizon.

while true, it doesn't mean necessarily that everything is a-okay going forward. >> james, how does that sit with you, especially as you look at the measures that have been put in place which is where the difficulties have erupted from, the severe difficulties, you can argue whether or not the housing sector, the financial sector. but the frozen banking system has saw it to some extent and that should give us more clarity now, or not? >> no. i think it's one of the positives that you've seen a soaring in financial markets. initially, it was the big companies that could come to market. recently, we've seen a lot of smaller companies that could come and raise equity or bonds or convertible bonds, rebuild their balance sheets. i'd be more constructive than your other guests simply because i think the data, as we enter the second half of this year, is going to see a gathering momentum in recovery. i also think that a lot of people still aren't quite on board with this recovery.

there are people who want to come in and buy it and i think that that dynamic is still there. yes, we have been prepared for consolidation, maybe a modest pullback. i don't think we go down that far, but there's not too many people who would want to buy earlier than that. >> we have an earlier guest who says we could possibly see gold at $2,400. >> did he give a time frame for that, tend of the year, perhaps? >> he said in a couple of years. >> no. i think gold is seen more or less as an alternative currency these days. you have weakness in the dollar. the dollar was down by a considerable fashion yesterday and that's helping to support the price of gold. at the same time, the argument that gold has been rallying on the backs of inflationary

expectations as a result of easing money throughout the globe, that is a little less -- that's a little more dicey. if you take a look at the implied inflation rate in the ten-year tips market, that's unchanged over the last two or three months and it's higher than it has been in the last couple of days since gold has rallied. so, again, if you take a look at the dollar, there is basis there in terms of driving gold higher. but with respect to inflation, it's not as clear. >> that was exactly my point, dan, that i was making earlier and the five-year tips market. which isn't a whole lot. you were talking off air about kind of the balancing act that has to happen within the next five years or so between these central banks and the money that they've brought into the economy and these huge budget deficits that we're sitting with, the uk to mention one of the many

places that's having to deal with a stick between a rock and a hard place. >> 12% of gdp fiscal deficit, it's completely unsustainable. one of the reasons that i said earlier, we've got limited time horizons. there is a balancing act between monetary policy and fiscal policy and the independent central banks and the treasuries and the finance ministers have to work very closely together. it's a delicate balancing act. if you tighten too much too quickly, you could unravel this. equally, i think one of the people who are progold would say you're on a delicate line and if you fall off of it, twaen, we could end up with inflation or a double dip and that's why you buy gold. for me, they recognize that this has to happen. you have people recognizing that you have to take action on

fiscal policy. my personal preference is that they do it sooner or later and the central banks can sit there with short low rates in the meantime. >> james, we'll have to leave it there for now. james, you will continue to stay with us. of course, we have dan greenhouse, thank you very much for that. let's head over to tokyo and check in on the trading day there with makiko sod oi. soda-san. >> hello, christine. tokyo stocks ended their two-day rally. the yen strength.enning to the 92 range against the dollar triggered investors to check in exporters. toyota motor dropped 1.8%. honda motor 2.4% and nissan motor 1.6%. electronics firms in general

were weighed down. among the top decliners were banks. there are worries that this new capital requirement introduced for globally operating banks, japanese mega banks may need more equity financing. higher oil price boosted oil and gas companies which gained nearly 4% and trading houses mitsubishi both rose over 1%. the market is mindful of the launch of japan's new government scheduled next week. the democratic party of japan finally reached an agreement with two smaller parties to form a coalition today and now is set to move towards transition. the two parties, though small in size, has a grip on the dpj. the dpj can't command the majority in the upper out house without their alliance. that's all for the nikkei report. >> thank you very much. >> still to come on "worldwide

exchange," the fed's beige book is out today at 2:00 new york time. will it shape the u.s. trading day? before that, here is a look at how the u.s. futures are shaping up and they're pointing to a fractionally lower open.

welcome back to cnbc's "worldwide exchange." here are some of the top stories would he we're watching from around the world. new york attorney general andrew cuomo may charge for executives of bonuses that it charged before the company's merger. cuomo is using b of a as using a defense to explain why it should not release more details about who signed in on the bonuses. the move comes as a federal judge will once again consider whether to approve a b of a settlement over this matter. in frankfurt right now, shares of bank of america are down almost 3%. christine. >> mike, this should be of interest to you. china's sovereign wealth fund looking at making. in recent weeks, china

investment corp. cic can hold talks with blackrock, investco and lone star. cic make invest through the government's pip bailout scheme. blackrock, investco and lone star have declined to comment. and beatles mania is still alive. the beatles rock band, as it's called, hit shelves today. at $60 a copy, it makes viacom hope that it will unveil the industry. but the biggest winner is still the band itself. the beatles will reap a record $ .6 billion in 2009 from licensing revenues and music sales. >> let it be. james, i have a viewer e-mail i want to bring to you which basically touches on the

currency issue at the moment. what's your forecast for the dollar against the pound or the pound against the dollar and euro/dollar as well in the third quarter and fourth quarter? more importantly as you're not a currency strategist as such, are we going to have a dollar crisis? >> the consensus is that the dollar goes lower. i have to say that i'm not a big fan of that. i think that the dollar is already very cheap. we've seen the u.s. trade deficit come down significantly. i think if you look back at recent ecb press conferences, trichet went out of his way to say that he was thankful that the u.s. wants a strong dollar. europe doesn't want much of a weaker dollar. >> if we think about asia and some of the other emerging markets, there's been a

decoupling taking place here within the past couple of months and it was heading into this crisis emerging markets, that they wouldn't hold up through a crisis like this and they have. why is that? why have they performed better? >> well, they have and they haven't. the emerging markets were hit last year by the strength of the downturn. but what we saw was a strong reaction from the chinese authorities enormous amounts of liquidity pumped into the chinese economy. and that is one of the main reasons that the brics have turned around quickly. so that has been the big reason why i think they've been able to cushion it. but without that, i think they would be in not as much trouble as the developed world, but certainly it wouldn't have been the decoupling.

>> thank you very much for that. mike. up next on "worldwide exchange," we will look ahead at the trading day ahead with mikat gurka. 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.

guess what? the fun doesn't stop here. after this program, u.s. "squawk box" follows with for viewers in asia and the united states. joe kernen is one of the people at the helm of the u.s. program. hi, joe. >> louisa, we have an olympic sized edition of "squawk box" it says here today. the olympics are like 2 1/2 weeks or something, aren't they? >> an olympic sized swimming pool means huge. >> big, okay, it's a big edition of "squawk box" because we have this guy, jim chain yoes. he is going to be our guest host, well known hedge fund guy, that doesn't like his nickname, mr. shorty. we're not going to call him that, but he has done well over the years. he's one of the big guys to

figure out baldwin united when he was in his early 20s and enron much later. he's in demand by rollywood types to consult on the new wall street. i mean, this guy is the real deal. it would be great to talk to him as president obama gets ready to talk about health care and to address a joint session of congress. we've also got a former fda commissioner who knows all about our issues. then we've got inside the scam of the century, again, a new video of bernie madoff's new york city penthouse and his digs in west palm beach, florida, all up for sales. we're going to take you inside. also, business in and out of the pool with the one and only michael phelps. 14 olympic gold medals.

he's going to be here on the set with us. he could give us -- >> remember when he came on the set before? >> yeah, yeah, it do. it was early for him and his pants were falling off. got that look. could there be one squawk gold medal that he could give us? >> you mean just hand over one? he's got 14. >> he's got 14. also, we have elizabeth warren. it's been wrapped from london before, but never really like that. all that and more on "squawk box" when we -- >> and sesame street. >> oh, and sesame street. we went to sesame street and who did we meet? grover. >> grover and elmo. >> that's it, something we do over here in the states. i don't know what you guys have over there, benny hill or something. we're not really sure. >> i just want to know with fell ips, when you do that summersault in the water, how do you keep from getting dizzy? >> i don't know.

>> ask him that for me. >> okay. wrap. >> so for more on the u.s. markets, very quickly, we are now joined by michael gurka, global asset strategist and power global funds. are we due for a pullback today, michael, as the futures seem to be pointing to? >> yes. but it could be very sudden and abrupt only because we're coming up against a pretty good resistance level in the dow that i've been looking at at 9568. and at the same time, i think that our support is clearly moving up, also, way above the 9390 area. i think the pullback could be buying opportunities for some investors today. >> all right. so we get $20 billion worth of ten-year notes coming out today. we've got the fed's page book. but is it more going to be about apple's event and all the talk about health care reform? >> well, i think apple's event is clearly going to take a complete stride out of the nasdaq if we don't see something that is surprising and upbeat.

there's a lot of positive momentum from that. and for the same reasons, what i'm looking for down the road this week is that michigan survey where we're looking for 67 half and we have 65 before. confidence comes into play here. during large cyclical cycles, much of a recessionary scenario, confidence starts playing quite a role to see if the recovery is alive. i think the treasury market in itself is going to be a very good indicator on how appetite remains not just in a foreign demand, but here domestically. if you start putting that into the confidence scenario and they all come out as expected, i find that to be very positive. also keep an eye on crude oil. i think at these upper levels right now, you're starting to see a bigger play in bearish scenarios. lastly, as mentioned, i think the dollar is, again, in a one-sided trade here where with the dollar basket starting to come off -- >> michael, i apologize. we've got to go.

michael gurka, that's going to do it for today's program. i'm mike huckman in the states. >> i'm louisa bojesen in europe. >> and here in asia, i'm christine tan.