welcome to "worldwide exchange," the headlines in washington today. here in asia, china's overtaken the likes of germany, britain and france following a shift in bulging power at the world bank. in europe, greece continues to dominate funding while the german press calls for it to leave the eurozone. in the united states, congress seizes on the paper trail from goldman sachs as the primary reason for financial reform. and welcome to "worldwide exchange" i'm christine tan here in asia. taking a look at where the bourses are doing. 4:00 p.m. here in singapore. australian market is closed

today to commemorate anset day. we're getting markets finishing broadly higher, all with the exception of china. all these u.s. data, u.s. data and of course greece asking for the emergency aid helping to boost sentiment. risk aversion really reducing, investors really liking the markets right now. nikkei 225 up 2.3% finishing up the key 11,000 mark. shanghai markets still under pressure because of concerns about monetary tightening, talk about inflation and property bubble. that is pulling the shanghai market lower. the hang seng is down. it's up 1.6%. a bit of bargain hunting going on on property. starting with the massive sell-off in the last few days. kospi, and the aussie market as i mentioned is closed today so that is reflected on friday's close. elsewhere, we're continuing to watch the bangkok s.e.t. in thailand, a political crisis continues. we're now hearing talks that maybe the yellow shirt protesters are called for martial law.

the political situation continues to unfold. we will continue to monitor the situation. we have a live phone on the ground for you later. this particular market trading a little bit to the upset today, 12 points higher. 767. how is all this weighing on the cnbc ftse global 300 index? up 30 points, 4,697. and ross, good to have you back. >> hey, christine. great to see you. we're one hour into the trading day in europe. stocks up around 1% across the board. basic resources the biggest gainer right now of 1.4% for the cac quarante. a little bit less for the smi. looks like greece will get their money, 45 billion euros, $60 billion. but there's suspicion they'll need more. but it will ensure they avoid a default in the short-term. whether they'll have to then do more restructuring remains to be seen. banks are up, travel, leisure, industrials and energy all firmer today. let's get an early look at what's happening in the u.s. hi, nicole. >> very early look, indeed, ross. good morning to you. it's 4:00 in the morning in new york.

and we're expecting markets here to open highary cross the board. you mentioned the greek drama pushing the dollar a little bit higher. dow futures are up about 13 above fair value now. nasdaq futures also higher about 4, and s&p 500 futures up about 2. this,of course, coming as we are getting more earnings all this week. and we're going to wrap up with a closer look at gdp on friday. before the bell we have dow component caterpillar reporting. >> okay. that's all to come. meanwhile, greece says it is confident it will get aid in time to avoid default as it awaits approval for a $16 billion -- $60 billion loan package. athens has been asked to produce new debt reduction packages, though, before any financial help can actually be activated by the imf and the eu. guy has taken a flight back to athens. thank goodness this mapped after the ash cloud dispersed, guy. but look, how are relations right now between greece and its eu partners? >> not good, i would say.

you look at the market reaction this morning, greek yields are down a little bit. but the market's not exactly pricing in the fact that the eu and the imf are riding to the rescue here. we have commentary out of germany indicating that maybe this isn't a blank check. the germans have always been nervous about giving the greeks aid. and the market is pricing that in. george pappen constantine u, greece's finance minister, he's pretty convinced that this is a done deal. >> we're very confident that these negotiations, which have started even before we actually asked for the activation of the mechanism will be concluded rather soon. they're going very well. >> i just wonder whether or not he should be quite as confident as he sounds, though. we've already heard there the germans. others are likely to be nervous, as well. why on earth, are the portuguese next in line when it comes to the debt threat, going to be handing over money to greece. why ireland? why spain? these issues have yet to be

fully sorted out. we're not clear how the neck nymph is going to work with the euro class. are we going to have to have some sort of summit? can they do it on the phone? can finance ministers sort this out? a number of big questions still need to be resolved. i would guess that the imf is likely to come through with money a little bit more likely. and remember that greece has got an $8 billion debt roll that it needs to do on the 19th. so that number is going to be quite critical. the imf is likely to come through and say that it probably has aid on hand a little bit sooner than the eu has. but just maybe a little bit of a sense of perspective here. we're going to be talking a little bit later on, and he pointed out beautifully the fact that the u.s. is going to be selling more debt this week than greece needs to keep it going for an entire year. a sense of perspective maybe about what we're talking about here. >> $118 billion in two, five and seven-year notes. we have a fear that one point, u.s. auctions will fail. guy, we'll join you later in the

program. let's get a little bit more on this. joining us is the chief economist at athiksis. the bank of international sentiment reckons that the french and swiss banks will have $7 billion, germany around $45 billion. do you think there will have to be a haircut here for these banks? are we going to have to eventually end up restructuring this and feel that in the bank sector? >> well, good afternoon, and good morning, if you're in europe. so let's speak clearly. i don't think that a restructuring will be necessary. this is a deal that should have been completely european deal, and a deal that the people should have agreed upon much earlier than that. it was not the case, imf was invited to the party, if you call it, if you want to call it a party, and that's it. so this is going to be enough. i don't believe that there's going to tb the need for

additional enormous amounts of money as we've sometimes read in the papers or sometimes heard on the street. so i think this package is necessary, and i think this package will be -- will be given in time to greece. what is the matter of things, and what is important, is that this package is indeed necessary, and this is something that must be very clear, because i start seeing in the newspapers opinions that are more and more about let greece defought, let greece pay mistakes. this would be a huge mistake and we would not be talking about haircuts, as you say, but we would be talking about huge losses in all financial sector if greece was let alone in this matter. >> you say, they won't take a haircut, well they've got 300 billion euros of total debt, and

there's no plan yet on how they pay that back. we're just talking about rolling over the refinancing at the moment. unless there's a plan to pay back all their debt, there's going to have to be restructuring, isn't there? >> well, actually, this morning it is 45 billion would be enough to cover the repayments up until february, if i'm not mistaken, february 2010. by then you have two scenarios. either the economic situation in the world gets better and then probably you don't have any need for additional money. from greece or from other countries in the eurozone. either you have a situation in which the world economy is slowing down significantly for the rest of 2010, and then you have a problem for greece, who need more money, and you have a problem probably also for portugal and ireland. this is not our main scenario. but if this has to be the case, this money will be given mostly by the european union and we

will then need additional money. but this will be probably remain an internal european affair. >> all right, luca silipo, chief economist at natixis stays with us for the hour. listen to this, luca, goldman sachs released documents on sunday used to prepare ceo lloyd blankfein and two other execs for tuesday's subcommittee hearing. they contend against allegations that the firms were shorting subprime mortgages that it was selling to its clients. they also point out goldman lost $1.7 billion in 2007, a year after it started cutting its exposure to the subprime mortgage markets. but e-mails released on saturday by the senate panel paint a different picture. in 2007 blankfein says of course we didn't dodge the mortgage mess, we lost money, then we made more than we lost because of shorts. goldman released e-mails from fabrice tourre, the trader named in the s.e.c.'s suit against the firm, and in a note to a girl friend in 2007 about the

impending subprime collapse he says, quote, i've managed to sell a few abacus bonds to widows and orphans i met at the airport, apparently those belgians adore synthetic cdos. two top u.s. lawmakers say these e-mails show just how much financial reform is needed. >> there's something terribly wrong about a system in a country of ours where you make billions of dollars by making nothing or producing nothing, but merely taking advantage of an economic situation. >> we've got to end once and for all the casino atmosphere of wall street, where they're gambling basically on synthetic ideas and so forth. with somebody else's money. putting banks and our whole banking system at risk, and producing nothing. >> aides say senators chris dodd and shelby did not meet after their appearance on "meet the press" to discuss the financial reform bill. senate majority leader harry reid, though, says a procedural

vote is set to begin on the floor later today. republicans have vowed to block that in closed-door talks on a bipartisan agreement are ongoing. president obama's top economic adviser ask urging lawmakers to pass the bill. >> certainly no one associated with the white house, who believes that "too big to fail" is acceptable, to believes that it is acceptable for financial institutions to rely on the prospect of bailout to raise money, and who thinks it's anything other than an absolute imperative to make sure that the days of heads, i win, tails the taxpayer lose, end. >> top senate democrats are reportedly near a deal to regulate the $450 trillion derivatives market, including a provision requiring banks to spin off the swaps desks. but the measure has raised concerns from the white house and of course the treasury department. let's bring luca back in for some reaction. do you think goldman is going to

be the catalyst for financial reform? >> i think financial reform is ongoing in the u.s., and this is not going to encourage more or stop the financial reform. of course, so this is independent. i mean, maybe you can get some political support more, after this case is not only goldman, by the way. so you have a case in which the financial institution regulation is going to change, and you see this in europe. you see it here in the u.s., and you will see probably this in asia. so it's a broad movement of financial regulation. we have to be very careful, though, not to make -- not to make, of course, too much regulation. just an example, in the last 15 years, i think the economic model of spending has moved from a situation in which the main source of appreciating power is wages, into a situation to credit. so basically wage rates were very low, and credit was

substituting for wage, and this has been going on for 15 years. so you cannot just stop credit, and you cannot just impose too strict regulation on banks, or something else being done, but you have to be careful not to overshoot, because the economy has changed in the last 15 years, so that banking system, and so you cannot change things overnight. i think this is the main reason that we're facing now. >> we want you to continue staying with us, our guest host for the hour. let's go over to thailand. the pro-establishment there, the yellow shirts, have called for the imposition of martial law to end mass anti-government protests. the yellows are warning that they might act themselves unless the tense situation in bangkok improves. let's get straight to nbc's ian williams coming to us live on the ground in bangkok. ian, good to have you with us. i'm hearing talk of martial law. how close is the country to that? what are you hearing?

>> well, the yellow shirt movement, who you'll recall from an earlier episode of this political crisis, has demanded that the government impose martial law, that they crack down, and they threatened to come back on the streets themselves if they don't. now the problem with that is that we do have an emergency situation in bangkok at the moment, under which, theoretically, no more than half a dozen people should gather. now, even if there was a declaration of martial law, it would have to be enforced, and people would have to respect it. and there's serious doubt that that would happen. but what we can say for sure is the prospect of yellow shirted, pro-establishment mobs back on the streets of bangkok is quite a chilling one. these people, if you like, represent the bangkok middle class, the establishment, the royalist elite, but they also have a very thuggish element in the fringes. and this really does raise a spector of mob violence, which nobody really wants to see.

>> ian, in your opinion, where you stand, is an escalation of violence likely from here? how bad is it going to get? >> well, the reds, who, by the way, have been changing their shirts. their leaders have urged new protesters not to wear red because they're then easily identifiable, they are convinced that a crackdown is coming. they've been raising the barricades close to us here. they've also been asking supporters in the provinces to block police and army convoys coming into the city. and we've had reports that at least two or three confrontations in the past 24 hours now how bad will it get? at the weekend, the prime minister rejected any negotiations. he rejected demands from the red shirts for a 30-day dissolution of parliament.

he also hinted, sitting side by side with the army chief, look, he would take this to the next level, if necessary. presumably a crackdown. but he's given no details about when that might happen, or how. and it's very difficult to see how these protesters can be cleared. they're so well entrenched in the commercial heart of bangkok, it's hard to see how they can be cleared without considerable loss of life. >> ian, thank you very much for the update. you stay safe now. thank you very much for that. ian williams, asia correspondent at nbc. let's get a reaction from luca on the situation in thailand. you know we're hearing martial law possibly being put in place. crackdown. words like that. seems to terrify a lot of investors. i get a sense that somehow the economy seems to be doing rather well despite what's going on on the political front. at what point does politics start to impact the economy? >> well, this is a very interesting question. you see that the thai bhat hardly moved. in other times you would have

huge movement, and people getting against the currency. it's true that market seems now very, very immune to what is happening. there is an economic impact. we have calculated that if martial law is installed and kept for three months it would cost 5% of the thai gdp. so the impact is there. however, probably, the inflows, people will still want to bet on asia. whatever happens is huge from one side. and from the other side, domestic institutions become much more skilled at preventing huge movements that could stabilize the situation. so they try to be more credible. i'm talking back of thailand and its defense of the thai baht, they are trying to be more credible not to impose on the economy on the financial side. they're very successful for now.

>> okay. we'll leave it there for now. >> christine, a big story we're following out of the united states, merger talks between united and continental airlines have reportedly hit a snag. "the new york times" says there's a disagreement over the price of these stock for stock deals, specifically the ratio of shares united plans to pay for continental. the impasse could be a deal breaker but the companies apparently are still talking. in frankfurt, united is trading higher at about 1.2% and couldn'tent inal up about 2%. ross? ireland's biggest bank is claiming to raise nearly $4.5 billion in capital. bank of ireland says just over $2.5 billion will come from a rights issue, the rest will be from institutional shareholders. the bank says the extra capital will top the government taking an even bigger stake in the institution. ireland's government expects to earn 36.5% of the bank after the capital raising. ross, toyota says it managed to boost global production in march by a whooping 96.7%,

relative 770,000 vehicles. but the steep gain is largely on the back of low comparison figures from march 2009 numbers when the company was adjusting to a plunge in demand in the wake of the global financial crisis. still, things could be looking up for the embattled automaker. the nikkei reporter this weekend said impressive operating profit of as high as half a billion dollars for the financial year. above market consensus. this is attributable to the weaker yen and cost-cutting efforts. toyota shares getting a boost up more than 3%, 3690 japanese yen. and still to come on the program, we'll take a look at what's moving the stock markets in our european stock watch. right after this.

look at the view of times square early in the morning in new york. 22 minutes past 4:00. eurozone governments a little bit lower today. investor tensions still very much, the ten-year note yield has dropped at 3.04%. ten years, huge week of auctions this week.

$118 billion of two, five and seven-year notes coming up for auction this weekend. on top of that you've got some tips, as well, treasury inflated protections coming up, as well, for auction. going to be important week. the currency markets are concerned, dollar is slight against yen, 94.14. euro/dollar 1.3338. we've got some short following greece's request for loans and sterling/dollar 1.5452 is firmer, as well. what about the calendar in the states this week, nicole? >> chock full, ross. chock full of data. housing, specifically, manufacturing, consumer confidence. the fed is also meeting on tuesday, and on wednesday. today the census bureau releases first quarter numbers on home ownership and vacancy rates at 10:00 in the morning new york time. caterpillar a dow component reports before the opening bell, as to black rock, humana, and home appliancemaker whirlpool. after the close we hear from texas instruments.

ross? >> okay. meanwhile, european stock markets, an hour and a half into the trading day, up around a percent for the ftse 100. xetra dax, character up 1.32%. joining me to look at the london market is anna. >> absolutely, ross. strong performance on the ftse 100 today. carrefour telling us full year results are going to be better than the market is looking for. this is a company that's going into business with best buy. it owns 50% of best buy europe. and they are opening their first big box best buy mega store in the uk. that happening today. rbs also in focus. they are cutting back on compensation according to reports. they're going to be setting tougher targets for their management team. that combined with other reports suggesting that welcome truck that was to have been one of the biggest of their branch network is going to be putting away.

conflicting reports about rbs right now. intertek at one end, invisous at the other. >> thanks for that, anna. the xetra dax similar to the ftse 100. >> they were more or less in line. but really strong orders so that stock was trading up. the interesting story is what is trading up on the dax this morning. up about 3.3% and reported maybe looking into selling real estate unit. and i think there's a lot of anticipation about deutsche bank's numbers, quarterly numbers out tomorrow. and analysts are talking about deutsche bank maybe leading the way to give confidence into the banking stock in a longer-term. so, watch out for the financials this week, deutsche bank trading up 1.7%. siemens is an interesting story. we may see an upgrade in the outlook for this year. the stock is trading up 2.6%.

i did speak with the company this morning. of course they can't make any comment. however, if you look at the order books, they could be quite profitable. that's frankfurt. >> and in paris, publicist is trading higher this morning. the company has a new client in the united states. it's going to manage the u.s. advertising spending of chevrolet, the carmaker. but didn't give any financial details for the contract but it could be bigger than carrefour, which is already one of the largest clients for publicsis. up 3%, up 2% at the opening of the french market earlier this morning. the industry posted a 5.2% increase in sales for the first quarter of the year. the company's guidance is still targeting an increase of the net profit this year. they are confident that the efficiency will bring 200 million euros in savings this year. this stock is up 1.7%. it's one of the best -- well, it

was one of the best performers earlier on the cac quarante in paris. now over to christine in singapore. >> thank you very much for that stephane. coming up next on "worldwide exchange" we'll continue to look at emerging markets. getting a greater say as the world bank changes its voting rules. so what's on china's agenda? will it increase power? and will the move work to improve global imbalances?

welcome to "worldwide exchange." the headlines today, in asia, china's overtaken the likes of jemplny, britain and france, following a shift in bulging power at the world bank. in europe, greece continues to dominate on fears it may need more funding. in the united states, congress seizes on the paper trail from goldman sachs as the primary reason for financial reform. >> all right you're watching cnbc's "worldwide exchange." the global ftse, seems the ftse global 300, get the name right, up 25 points, half of one percent higher. we've got bank stocks, basic resources are up.

pretty broad-based move as well, christine. >> as long as you haven't forgotten my name, ross. >> it's pronunciation. it wasn't just forgetfulness. >> checking out asian markets, the australian market is closed for ansac today. across the board there, we saw greece requesting for emergency aid, strong u.s. data, and a kind of boost confidence here as far as markets were concerned. nikkei 225 up 2.3% closing above 11,000 mark. quite significant there. the kospi is up 0.8%. the hang seng up more than 1%. bargain hunting over in hong kong. the china market still under pressure. lots of concerns there still about monetary tightening, asset bubbles, property curves. that seems to be weighing down the market. and sensex in india trading up 0.4%. as for the bangkok s.e.t., political turmoil not having much of an impact as far as market sentiment is concerned, moving higher, 1.8% higher, 768.

nicole? christine, a very good morning to you from the united states. it's 4:30 in the morning here. we're expecting markets to open higher across the board with dow futures up about 10. nasdaq futures also higher about 4. s&p 500 futures up slightly right now as we are looking ahead to a lot of data out of the united states. a lot more earnings, as well. and, of course, wrapping up two days of fed speak tuesday and wednesday. let's continue digging into more of that with philip shaw, chief economist at invest tech. philip are we expecting to see the fed upgrade its outlook for the economy? >> marginally i think that's the case. as time goes on one would imagine that the fed would continue to say that the company becomes a little more entrenched and specifically on the labor market what it might say this

week is that the labor market is beginning to show signs of improvement, rather than stabilization. but, really that's not going to be great news for the markets in terms of new news. it's really just an acknowledgment of what we've seen already. the critical points, i think in terms of monetary policy, is the extended period long is likely to continue for awhile yet. >> luca, you're been listening in, i know. do you agree with that, the extended period language going to continue? some people say they're going to actually define that to perhaps a six-week period. >> no, definitely expect to continue. i agree with your guest. basically what we are seeing is maybe some minor rate adjustments are weighted for the end of the year. but a true real tightening cycle by the fed is months and months and quarters away.

>> let's also turn our attention, it's worth pointing out, greek bond yields again rising up to around 9%. the yield between greek debt and ten-year german bunds has again widened to a 12-year high of 612 basis points. this is hardly a vote of confidence in the bailout package. >> well, absolutely not, you're right. i think the immediacy of the situation has been removed from the bailout package, and the likelihood that the greece will not only get eurozone cash, but imf cash, over the next week or perhaps two weeks. but really what it doesn't change is the immediate-term financing look over the next two to five years. greece has got to do a couple of things. number one it has probably got to secure additional cash because we expect at some point in 2011, that $49 billion -- >> greece on its own is not the issue. the fear for global investors is contagion.

and you've got german press this morning talking about maybe greece should consider their position within the eurozone. that is, the press saying it, not the government or anybody else. but nevertheless, are fears of contagion overdone or not? >> i think they're overdone. greece is in a slightly unique situation given that its previous government lied about public finances. but its outstanding stock of government debt is about 10% of gdp. that situation is not mirrored by any other of the others in the euro area. admittedly finances don't look great in a number of countries but greece does appear to be a one-off as many of the euro area officials are saying. >> this is christine. want to ask you about china. 4r09s of talk about inflation. do you think inflation is severe in china? >> well, the chinese authorities have suggested it's going to be very difficult to get inflation contain inflation below 3% this year. that i guess partly depends on the weather, and the effect on

food prices. but, certainly, we don't see many signs of an economy that's slowing down at the moment, and the general strategy appears to be that the chinese authorities will keep the general stats of monetary policy appropriately easy for now. as we get towards the second half of the year, that might well change. and of course, we have the ongoing discussions over the possible revaluation of the yuan. i don't think anything's going to happen over the next month or two. but you know, perhaps, as i said, as we get into the second half of the year, that the specific micromeasures enacted by the chinese authorities won't have done enough to curb inflation and asset price inflation, and the pboc perhaps has to look at a more general tightening in policy. >> luca, you seem to think china does not have a problem with inflation at all? >> does not, yeah. i think an economy that is growing 11.9%, of course, raises

eyebrows in terms of price potential pressure but this comes mainly from the supply side. so investment. investment is growing, consumption is not picking up significantly, it's not accelerating and the global demand is expected to stay put, probably, for this year. so where does the money come from? more and more chinese goods will stay in china and this will create excess supply of good. not demand of good. you don't have as much price pressure that a number like 12% -- >> do we have inflation in china, then? >> if it was lower gross, yes. i think that chinese -- the chinese equation is going to stay around 3% at the end of this year, because of the strong inflation, because of strong growth, and because of food prices. >> okay. >> but there is no intrinsic inflation. high inflation developing in china. >> okay. luca we'll have to leave it there for now.

we want you to continue staying with us. luca sill up poe our guest host from thaticous. philip shaw, chief economist at invest ek. coming up next on "worldwide exchange," it's the world's most lucrative cricket tournament. it is the drama off the field that's catching the public's attention this year. we'll tell why you after the break. here's a quick look at how gold is trading.

welcome back to "worldwide exchange." it is 4:41 in the evening here in singapore. you're looking at a shot of the city. i'm told it's about 21 degrees celsius. it's rather hazy because it's been raining a little bit. wind blowing north at 21 kilometers. let me tell you it's 83 degrees. pretty wet. china's overtaken germany, britain and france in a shift in voting power at the world bank. the move is seen as a sign that emerging economies are now garnering greater influence in a global development institution. joining us now is wendy liu, head of china research at rbs and our guest host luca sill up poe, chief economist at thaticous is still with us. china getting more voting power at the world banks. what does this mean, actually, in reality?

>> i think there will probably be more responsibility accompanied with this increase in status. and it will be an interesting situation to monitor. i suppose in some cases you have to increase your funding or contribution to the world bank. but i think on issues like currency, china may still have to follow its own pace. >> it's interesting because china's growing influence also means that if it doesn't get its house in order, i'm just wondering what are the implications for the global economy? is it more directly linked now? >> i think we've seen the global rebalancing ongoing, i.e. the developed developing countries including china, and the developed countries deleveraging and i think that process will continue. >> wendy, a question on this international role of chain ma. do you think that china has to develop also, or has to develop

in a priority, a role, a regional role of leading? or do you see china more busy in expanding its global image, so -- at the expense of establishing a strong regional role? >> i would think the regional is a bigger priority than the global role. but i think they will pay attention to both. but i think, you know, the regional markets are closer to home, and more accessible. >> you know, wendy, nicole lapin in the united states. there's a report out that china is now perhaps considering introducing new or higher taxes on real estate, possibly even a u.s.-style property tax to curb the potential housing bubble. do you think that is going to work? >> i think, you know, that is coming. and it's not just to fix the property bubble issue in selected tier one and tier two

cities, but also to help the general agenda of income redistribution, which is really important to this administration for the greater goal of harmonious society. so i think, you know, it's definitely coming. whether the mechanism is exactly like the u.s. property tax, it may differ. and it's possible may leave the first two units below 100 square meters or certain level of, you know, space exempted from that property tax. >> wendy, you have a very pat figures in real estate in china. you have reflection high where rates increase by 10%. and then you have, of course hainan island, and so on, where real estate prices were much stronger. don't you think that the property tax is too much of a broad-based, and china-wide measure, instead of specific

measures by province that would properly set up the situation, or solve the situation more locally? >> yeah, i think that's an excellent point. i think what the government is trying to do is to allow the local government to come out with their own variety of taxes on property, versus a nationwide property tax. what we may see next are cities do a property tax trial. but i think what that helps is to build in the future price appreciation for housing. >> we'll have to leave it there. thank you very much for your time. wendy liu, head of china research at rbs, talking to us about all things china. of course luca silipo will continue to stay with us. let's hop over to india. ayesha far id today joins us live from mumbai or the india business report. >> been a good start to this monday morning. holding on to the 5300 mark. the key gainers, results are expected just about any time and we are expecting to really come

in with the kind of copper realizations. the company, and of course the revenues coming in, as well. two thumbs up coming in for industries. the numbers just came out, almost a three-fold increase this time around. nonetheless the stock has taken a bit of a beating from profit looking actually taking in almost 105% jump is what they've seen this time around. the e-1 and e-2 segments and the export growth clocking in significantly this time around. a bit of disappointment coming in on defining margins. the numbers came out on friday, forced the market closed. currently down by almost a percent and a half. problems again with the statin drug so currently the stock is down by 4.5%.

one stock in focus, the cricket fever, finally, came to a grand closing yesterday and it was chennai super kings that beat mumbai team yesterday at the grand finale. so the team owner, started off with a gain about 3%. currently down by about 1%. but that stock definitely in focus in trade. >> thanks for that ayesha thanks for talking to you. a quick check on markets in asia. over all stocks mostly rose across the region after greece requested for emergency aid, and u.s. states showed economic recovery was gathering strength. that kind of gave confidence in the markets here today. japan's nikkei 225 breaking above the level of the 25-day moving average. today's 2.3% rise was the largest percentage gain we've seen since late february. toyota shares supported by a report in the nikkei that it's set to make half a billion dollars in operating profits for the year just passed.

that stock getting a big boost as a result. the kospi adds 0.9% to close at the highest in 22 months. investors sent financial shares higher on expectations they would hand in a strong report card for the first quarter. over in hong kong, getting a nice pop, 1.6%. traders scooped up property developers, and sold up the past couple of sexes. property stocks rebounded after being hammered as china took further steps to cool its property market. over in shanghai, still under pressure. the composite overall trend down half a percent to its lowest close in 2 1/2 months. tightening fears once again weighing on banking stocks and property plays. over in australia, closed today as australia celebrates anzac day. that was your wrap of market activity in this region. ross, back to you. >> the currency markets, the u roar has started to fall again as we see spreads on greek debt again hit its widest in 12

years, 612 basis points. that's putting the pressure back on the euro which is 1.3325 against the dollar. had rallied up from 1.3370 low on friday of around 1.32. sterling is also firm against the dollar at 1.5463. else where dollar firm. euro/sterling is being dragged lower. peter is with us. peter, short covering on the euro didn't last very long. >> no, not at all. i think the market was really expecting a strong announcement on friday, and what they got was sort of a blase type of announcement with a lot of holes in the details. they were quick to react because, they also set their trades to unwind that euro short position. but at the end of the day, they realized that really nothing had truly occurred. and the euro still going to be coming under pressure. >> yeah. in the battle of the uglies, why is the euro winning out even against the pound? it's uglier than the pound?

>> it's uglier than the pound. well, i mean, the focus, the risk concern is clearly in the euro. so that risk correlated to trade is less effective, is sort of not in effect in euro because of the unique situation that ush row, the euro is is in in greece. so it will constantly be the worst of the breed until they find out some resolution. and we don't see that in any near-term in any sense of the word. >> okay. so faux ono one is worried then? >> well, it is. you know, sort of priced into the market in the sterling. we don't see a significant sort of default risk in the fact that there's a hung parliament. most of it is already priced in. they want some resolution on may 6th. they'll get that resolution. they'll be able to move forward. so a lot of that is already priced in the sterling. in the euro, there's contagion risk. there's risk that germany doesn't back the bailout program. there's enormous number of risks surrounding the euro and that still hasn't been priced in

completely. >> so what's your target here, peter, for the euro/dollar? >> well, you know, we are very concerned about the euro going forward. and we think, yes, in the near-term, the resolution that they put forward friday will probably come to fruition. but the midterm risks are still very much entrenched. we're looking at a 1.30 target in the midterm and the fact that we're starting to see some contagion risk. seeing the spread in port kwal, especially widen and that's going to create, you know, sort of break apart this idea of that the solution's already been put on the table. in addition we're seeing growth forecasts in the eurozone diverge completely between sort of the heavy hitters in germany and france that are doing well, looking at things like industrial production. and on the other side of the coin we're seeing the southern portion of the eurozone really underperforming. and how the ecb is going to be able to handle this amidst all the other concerns weighs heavy on the euro. >> peter thanks for that.

chief market analyst at acm advanced currency markets. well, we're continuing to watch a story in india. it can be easily the script for a bollywood movie. however there is no fantasy to the scandal in the world's most lucrative cricket tournament, which has claimed one junior minister in the indian government. the head of the india premier league suspended after accusations of graft. let's get more on the story with tanya shuckler live from mumbai. >> that's right. mobi was suspended late last night after the tournament got over and the finals. but this was earlier, that is taking a humanitarian scandal, bigger than the ipl. it says the president of the dcta announced a new interim ipl chief, a man who's been heading

the regional cricket associations early. modi has been suspended. a new chief is in place. modi has been sentenced by the indian premier league asking for clarifications on all of the allegations and charges that have been placed against him regarding the process of 3widing that took place back in 2008. when teams were involved. also, regarding -- that were given away. and other events related, and the winning council said that they had not given approval for any of these contracts and hat not knew about what had really taken place. they also said the fact that there was a missing document from the office, and currently probe is being conducted into all of these matters. so we just have to wait and watch how this story really unfolds for them. back to you. >> thank you very much for the

update. live from mumbai. let's get some final thoughts now from our guest host luca silipo, chief economist at natixis who has been with us for the last hour. before we let you go, what are some of the key themes you're watching for going forward? >> i think the slowdown of the global economy. i think that -- >> does greece weigh into the outlook at all? >> in asia, yes, in asia it matters a lot because people realize how weak all the euro construction is. because euro works very well in monetary sense, the euro is perceived very well, and so people just assume that everything else is fine. but, then this problem of greece really put the spotlight on the weaknesses of the european architecture that have been there since the start. so it matters. >> does it raise the question of debt here in asia? >> no, it does not. it's very different issue. asian economies spent a lot for the fiscal packages, but they have rate of growth and economic dynamics that are very

compatible with their deficit spending. so they're not going to be any problems related to those ones that are very, very far geographically and in nature. >> are we grappling with a problem 6 inflation in asia? i know you fear china is not suffering from inflation? is that going to be a key problem? >> i think there are two emergencies in inflation, one is asia, and the other is vietnam. banks in asia have been too lenient although they are continuously set by capital influence. but in the probably it's a good theme for the next six months, how the central bank of and yeah is going to tackle this problem that is starting to be very serious. >> is there a danger because of the global sentiment, banks in asia are going to hold back, when it comes to tackling inflation? >> let me tell you, china is holding back because they believe that the world economy is going to very, very difficult

end of the year. so, the resilience of chinese -- of chinese position on monetary policy is due to the fact that they are very, very pessimist on world growth and probably other central banks in asia are doing the same reasoning. the fact that they're not moving rates yet is probably more to the capital influence and the excess capital that they do not want to get into their country if they start raising interest rates. >> and a question, china revaluation. when do you think that is going to happen? >> i think it is compatible with all the targets that the chinese policymakers have for themselves. i don't have a timing, i don't think it's very, very -- >> what are issues are the chinese looking for to revalue? >> i think even more important than this is how they're going to revalue. i think that the currency basket, something like monetary singapore is probably going to be their next exchange rate policy. i think this is not going to be just a revaluation. this is not just going to be a

gradual appreciation with the dollar as it used to be. it's going to be a real new exchange rate policy and this can probably come in a form of currency basket. >> sounds exciting. new exchange rate policy. luca, thank you very much for talking to us. good talking to you. that was luca silipo, chief economist at natixis our guest host for the hour. nicole? >> so much more to come on "worldwide exchange." financial regulation undergoes a tense vote in the senate today. so with goldman sachs under so much scrutiny will any republicans cross the aisle? stay tuned for more.

welcome to "worldwide exchange," the headlines making news today. out of the united states, congress seizes on a paper trail from goldman sachs as the primary reason for financial reform. greece continues to dominate on fears it may need more funding, while the german press calls for it to leave the eurozone. and here in asia, toyota reports global production for march up close to 100%. and financial year operating profits could surpass half a billion dollars. >> great to see you here on "worldwide exchange," it's 5:00 in the morning on wall street.

welcome to the start of your global trading today. markets ended higher last week with the dow gaining 1.7%. ending on 11204 with dow futures up about 10 above fair value. nasdaq futures also higher, s&p 500 futures up slightly higher, as well. we are, of course, ross, getting a slew of earnings this week. we're also getting more economic data rounding out the week. with first quarter gdp and we're looking ahead to a fed meeting tuesday and wednesday. caterpillar reports their report before the opening bell. how are you guys looking across the bond? >> stocks are firm the beginning of the week. not quite at the session high but two hours into the trading day up around 0.8%. a little bit more for cac quarante. little bit less for smi. banks just drifting off some of the early gains. energy up 1.4%. we're continuing to focus on what's going on in greece, which is worth pointing out greek spreads have again widened to the highest in 12 years. and the euro is just some short cover on friday, started falling again against the dollar.

more on that in a few moments. christine? >> asian markets getting a nice pop today, ross, because, why? greece asking for emergency aid. also that u.s. strong data -- strong u.s. data coming out really giving confidence to investors here in the region. take a look at the nikki 225 closing above 11,000. up 2.3%. key psychological level there. kospi up 0.9%. the hang seng up 1.6%. bargain hunting and property stocks helping the market to push higher. however the shanghai market continuing to be under pressure today because of monetary tightening still weighing on the index. the sensex and bomb bay trading up 0.4%. we continue to monitor the situation over in thailand, the s.e.t. seems not to be too much affected by the political turmoil that's happening in the country right now. moving up 1.6%. 12 points higher at 766. ross? >> okay. let's turn our attention to the currency markets. worth pointing out, of course, where the euro is 1.3327. down to 1.32 flat on friday. rallied up to 1.34 in short

offering. the euro has started to weaken again in the last half hour. so it's down against the pound, as well. in the uk 1.5461 sterling/dollar is firm. it's euro/sterling down to 0.8615. this all comes as greek bonds have started to widen again in terms of spread. they've hit against the bund, and it comes as well as greece says it is confident there it will get aid in time to avoid default as it awaits its eurozone peers and the imf to approve a 45 billion euro, $60 billion loan package. athens, which has been in talks with the fund, and the bloc's representatives for nearly a week, has been asked to produce new debt reduction plans before any financial help can actually be activated. what are the wider implications of all of this? joining us for the next hour, andy hartwell, market strategist. also with us mark oswald, strategist at monument securities. mark, good to see you. does it matter that the greek spreads are winding again? and that seems to be everyone is

skeptical? >> i think the bailout, you know, i think everyone is right to be skeptical. because, we're at the point where once we actually breach this sort of 400, 450 level in spread terms, everything else becomes a little bit academic. whether it's 600 or 750 or 1,000 we're now at the point where everyone's saying you've got to come up with something much more credible. and credible really means being very specific, outlining a plan which will basically mean that greece will have something to fall back on for the next, probably next two years. and so that markets basically don't have to worry about all this rolling over of existing debt, let alone raising money -- >> $45 billion isn't enough. some people were saying they need 70, 80, how much they need for this -- for markets not to worry about the contingency going back and contagion into other regions? >> i don't think it's actually a question of the sum that they require. i think it's a guarantee that there will be constant support

through the next 24 to 30 months. while they go through a retrenchment because there's obviously going to be a lot of strings attached to this. which means that they wouldn't necessarily need to come to the market to raise money. and that, i think, is the crux of the situation. because markets basically saying, look, if at any stage in the next six to twelve months they need to come back to the market they're going to have to pay such a high price as to make it almost unviable. >> marc's right. don't get two bites at this particular charity. reminds me of rescuing the auto industry in the united states. or the banks. you know, this is greece, the country, within the euro, is it too big to fail? there is far more at stake than simply greek membership of the euro. if greece cedes from the union, who is going to be next? that's the assurance the market is looking for right now. a simple statement on the table that there's $45 billion available, we'll see about it next time around, won't cut it.

>> marc, this is christine. i want to ask you this from my point of view here in asia. we all remember the asian financial crisis and how the imf got involved. are you also a skeptic when it comes to imf involvement in the greek rescue package? will it mean a lot worse for the country? >> a lot worse? it probably certainly means there's going to be a lot more strings attached. and it certainly makes life difficult within the eu. i think if it winds back the tapes here, really what we have to consider is, how did we get into this mess and essentially what it boils down to is nothing to do with greece at all. it's to do with germany turning a blind eye to french infringements of treaty requirements for a whole decade. the fact that they've now actually had to resort to the imf on top of everything shows that the eu has a complete failure of leadership, and that the current german crop of

politicians within the government doesn't actually realize that the time for pointing out what the moral hazards of the situation is not now, they need to be pragmatic. which they appear to be -- they've swung precisely at the wrong moment to taking the moral high ground, and ignoring the pragmatics of the situation. after all, the german politicians today keep on saying, well we have to worry about the stability of the euro. well, there's certainly the ones undermining it at the moment. >> well, if you -- nicole lapin in the united states, if you take into account that moral hazard, what's the better play here? are we talking eurozone debt or a lot of these treasuries that are coming out this week? in the united states? >> i think what the currency markets are actually telling us, when you look at this level of dollar/euro, which is not exactly particularly weakened in euro terms, is they're looking at the whole of the g-6 and the eurozone and saying, they've all got a problem, so the play, really is to look at the developing world, and australia and canada, and say, well, until

the g-6 can actually, and the eurozone, can get their act together, perhaps they're all better off tuning to elsewhere where the risks are more fairly priced. >> all right. very good. mark ostwald we appreciate your time and your strategy. strategist at monument securities. andy hartwill, stays with us as our guest host for the hour. still much more to come on "worldwide exchange." financial regulation undergoes a test vote in the senate today. what can we expect?

on cnbc.com today, regulations imposed on wall street banks will not kill the golden goose, mark mobius cells cnbc. read more on our website. plus, the market is quote, ripe for correction, but there are still areas where investors can make money. that according to simon goodfellow of ing. check out his investment ideas on cnbc.com. and the euro is engulfed by the ongoing greek crisis. u.s. investors are worried about looming treasury auctions, so british investors can take their time and relax. or at least that's what ross westgate writes. read more on our website, cnbc.com. welcome to "worldwide exchange." i'm nicole lapin in the united

states. goldman sachs releasing documents on sunday used to prepare ceo lloyd blankfein and six other execs for tuesday's senate subcommittee hearing. they defend against allegations that the firm was shorting subprime assets it was selling to its own clients. they point out that goldman lost $1.7 billion in 2007, a year after it started cutting its exposure to the subprime market. but e-mails released on saturday by a senate panel paint a very different picture. in 2007, they note that blankfein says, of course they didn't dodge the market mess. we lost money, then we made more than we lost because of shorts. that's a direct quote. goldman released e-mails from fabrice tourre, the trader named in the s.e.c.'s suit against the firm, and in a note to a girl friend in 2007 about the impending subprime collapse he says, quote, i've managed to sell a few abacus bonds to widows and orphans i met at the airport, apparently those belgians adore synthetic cdos. two top u.s. lawmakers say these e-mails show just how much financial reform is needed.

>> there's something terribly wrong about a system in a country of ours where you make billions of dollars by making nothing or producing nothing, but merely taking advantage of an economic situation. >> we've got to end once and for all the casino atmosphere of wall street, where they're gambling basically on synthetic ideas and so forth. with somebody else's money. putting banks and our whole banking system at risk, and producing nothing. >> aides say senators chris dodd and shelby did not meet after their appearance on "meet the press" to discuss the financial reform bill. senate majority leader harry reid has set a procedural vote to begin on the floor today in the senate. republicans have vowed to block that although closed-door talks on a bipartisan agreement apparently are ongoing. president obama's top economic adviser is urging lawmakers to pass the bill. >> certainly no one associated with the white house, who

believes that "too big to fail" is acceptable, who believes that it is acceptable for financial institutions to rely on the prospect of bailout to raise money, and who thinks it's anything other than an absolute imperative to make sure that the days of heads, i win, tails the taxpayer lose, end. >> let's bring in andy hartwill. you've been listening to this, as we have, of course. andy, is this the smoking gun for financial reform? is it the catalyst? >> oh, i don't know about smoking gun. i think it's a flag right up on the flagstaff there for everybody to see. and it's been apparent now for quite some time. the more this goes on, the more it makes the argument, or appears to make the argument for some kind of return of glass eagle, what it needs in effect is to have really just a dose of common sense. there are different business units within all banks. they all have their different b&ls.

internally they monitor those to make sure one is not playing off the interests of another, i.e. the consumer, everyone goes home happy. but to some in wholesale and make a dramatic reform based simply on this e-mail trail, i think would be wrong. i think there are bigger fish to fry. i'm sorry, nicole. >> are you basically saying that these e-mails are just a distraction? >> well, not a distraction. they go to make the point. they go to be part of the argument about reforming the banks. but in and of themselves, no, it's a recognition that there are different business units with different pnls within most operations that i know of around the globe. but the real point behind this is the mexican standoff between the governments not just in the united states, but around the world, between governments and banks. the bottom line is that governments of any color, of any national city, need a healthy banking system to carry on to develop the growth for the future. there has to be some accommodation between the public and moral outrage on the one hand, and the bare bones of market realities on the other.

>> still no doubt the timing of this is absolutely ideal. >> well, absolutely. >> right? i mean, bottom line is absolutely perfect. you want to pass the regulation bill, the timing of this couldn't have been better. >> i suspect at the end of the day, however perfect that timing, you're going to see some old-fashioned trading going on to make sure that, you know, you don't throw the baby completely out with the bath water on this one. but reform, yes, is coming down the pipe. >> okay. let's move on to our global roundup of equity markets. ahead of the u.s. open at the beginning of the trading week, global equity markets are firm. we'll kick off. anna is here in london. >> thanks very much, ross. insven sis is the biggest gainer of the london markets today, up 3.98%. we've got some of the mining stocks helping us higher, as well. wussly moving up. woolsly up on an upgrade. but in terms of the meaty stories around, carrefour warehouse, retailer of cell phones, mobile gones saying that full-year numbers will be better

than the market had previously been expecting. this is a bills that owns 50% of best buy europe, as well, so they're also going to be giving us an update on how their performance there is going to be coming there. rbs is also one of the top gainers today, up by 3.7%. a lot of talk about whether we're going to see a cutback in compensation awards to senior executives there. and that's having a bit of an impact. plus the recent rally being extended. march and april being incredibly strong months for the bank that is owned more than 80% by the uk government. bskyb and intertek losing grounds as one of its deals falls apart. christine? >> thanks for that. markets in asia, stocks mostly rose across the board because we did get greece requesting emergency aid. u.s. data, of course, showing strong economic recovery. gathering strength. the nikkei 225 ending above the key 11,000 mark, above the resistance level. 2.3% higher. that was the largest percentage

gain since late february. elsewhere, still in japan, though, shares getting a boost sported by reports that nikkei business daily that it is set to make half a billion dollars in operating profit for the year just passed. south korea kospi adding 0.9% to close at its highest in 22 months. investors sending financial stocks higher. all on expectations that they would hand in a strong report card for the first quarter. hong kong really key to watch. investors scooping up property developers. this after getting hammered in previous sessions because of the curbs in property we saw over in china. steps being taken by china to cool the property market there and elsewhere, we're looking at shanghai composite still under pressure today. why? lots of concerns there about tightening measures, down to, lots of concerns there about that weighing on market sentiment. banking stocks, property stocks continue to be under pressure. let me wrap it up and send it back to ross.

>> yes, still to come the greek tragedy causing something of a crises in confidence within the eurozone. the german papers already calling for the country to leave the euro area. meanwhile the french are blaming the germans. more when we come back.

welcome back to "worldwide exchange." it's 5:21 on the east coast of the united states. you're looking at a little bit of a soggy times square at this hour. markets are likely to open higher across the board, though. with dow futures up, and they have been up for the last hour and a half or so. about 6 above fair value. nasdaq futures also higher, and s&p 500 futures a little bit higher at this hour, as well. but calendar is full of data this week on housing, on manufacturing, on consumer confidence. the fed is also meeting tuesday and on wednesday, and then today we get the census bureau releasing first quarter numbers on home ownership and vacancy rates. at 11:00 in the morning new york time. caterpillar a dow component reports before the bell, as do black rock. health insurer humana does, and home appliance maker whirlpool. after the close we get texas instruments today. >> okay. we'll be looking at that. meanwhile greece says it's confident it will get aid in time to avoid default as it waits approval for a $60 billion

loan package. but it better come quickly. guy is in athens. guy, greek government bond yield spread rice at 663 basis points. the euro is falling again. bank stocks there down 4%. how much time do you think they've got to sort this out? >> not a lot. and you've got to remember that we have a big role coming up on the 19th. that is something that the greeks obviously need to get done. the agreement so far is that we will have some sort of a package in place by the 15th, and i have to say, the sources that i'm talking to, the greeks are being absolutely tight-lipped at the moment. it is quite incredible that they really are keeping their own council at the moment. but other sources arguing fairly clear indications as to what is going on. only running through what i've been learning so far this morning. this package is not going to be $60 billion. it is going to be bigger than that. the $60 billion is going to be year one. the package is likely to be significantly larger than the 45 we've been talking about.

that is a 2010 figure. the number will include money for further down the road, as well. so look out for that one. that's likely to be fairly interesting. we are expecting approval probably by the 15th. there's some politics involved in all of this. the imf is likely to be ready earlier than that. but there may be an idea that maybe the eu wants to see itself as the lead in this. so my sources are telling me that it is the imf and the eu in the same room, the negotiations glove.king place sort of hand in but it may be that despite the fact that the eu might be later, they may effectively come out and pay the money first. because, it will be seen as being more politically palatable for that to happen. so keep an eye on how that is ultimately going to end up playing out. the germans, well the sentiment seems to be live the germans alone until after north rhine west failure. any comment that's going to come out from merkel, et cetera, is likely to be more directed towards the german probe rather

than the international investors. that's probably quite important when you listen and try to parse what exactly is happening in germany. the other thing that's interesting is that, the greeks will be back in the open market. there may be a holiday for a few months but they'll be back raising money fairly, fairly soon. so that's one thing that we need to note, as well for the bond market. just listening to what the commentary, though, so far has been though, it's been interesting. the greek government has tried to sound positive. dom 'nique strauss-kahn at the imf is trying to make it very clear that the involvement of the imf, involvement of the fund, is a positive and not a negative for greece. >> and so, what is imf doing? trying to provide advice on behalf of the entire international community, trying to provide resources to help on behalf of the entire community. so, the greek citizen shouldn't fear the imf. we are there to try to help them. >> okay. meanwhile this is having ramifications throughout the rest of the eurozone. for more on that patricia and

stephane also join us along with guy. patricia, we're not going to get anything out of german politicians until the elections. what are the german press saying? they don't like greek mention of the euro anymore? >> well, i think that last friday they were very disappointed by that very short and snappy letter out of the greek finance ministry asking for help from the eu, as well as the imf. the paper, basically the headline here, saying that the greek issue is definitely dividing europe. my question is, was europe ever really united? or are we just seeing the cracks now in this current situation that has been there for quite some time? of course it is a political issue. guy just said it, on the 9th of may we do have regional elections and it always is a little more local politics rather than european politics. on the other hand, the biggest bill to be footed in the eu have packages, of course, for germany. over 8 billion euros. after that comes france, and of

course, italy, as well as spain. just very quickly the financial times deutschland saying that germany is basically leaving greek, greece in the dark for now. they want to push their own agenda before and i think it's going to be very interesting to see. because what we're seeing right now, we see portuguese five-year credit default swaps at record highs. italy credit default swaps have been rising, exactly while the euro is falling the more time is passing. of course this kind of contagiousness at knock-on affect europeanwide, in that particular market. >> and on the point of view, the french newspapers, the story is also making the headlines in paris this morning. in the tribune, interesting point is that the newspapers are not blaming greece for its financial situation. they're blaming germany for being reluctant to give its financial support to greece. the view from here is not that

france and germany were unable to find an agreement on the greek situation, the view is that germany is not -- cannot agree with anyone. the comments in the press are really tough. let me give you some of them. germany dragging its feet, as usual. that's what lemond says this morning. we've got this comment saying that germany is a great display of ignorance and shooting ones self in the foot. on the political side we've got christine lagarde who tried to ease the situation, the finance minister. she said that solidarity doesn't imply complacency and should greece default on its payment then france would suspend its financial support. that was a message for greece, but also for angela merkel. ross? >> okay, so french blame the germans, germans want greece out of the eurozone, and in greece, they're not saying anything at the moment. well, we'll cover it all. thanks very much, guys, for that. coming up next on "worldwide exchange," the white house has said the fraud charges against goldman sachs high lie the need

for reform, but politicians using the allegations to push through stricter rules. we'll discuss after the break.

welcome to "worldwide exchange." the headlines making news today out of the united states, congress seizes on a paper trail from goldman sachs as the primary reason for financial reform. >> and the euro starts the week again as greece continues to dominate on fears it may need more funding while the german press calls for it to leave the eurozone. here in asia, toyota reports global production for march up to close to 100% and financial year operating profits could surpass half a billion dollars. thank you for being with us here on "worldwide exchange," i'm nicole lapin in the united states, along with christine tan and ross westgate. we're expecting markets here to open on the tail end of momentum from asia, and europe, higher across the board. actually, i have just been corrected. we are basically flat. with dow futures flat, s&p 500

futures also flat. gymnast futures flat, after gaining 1.7% on the dow 11 can 204 is where we ended, ross, on friday. we're looking ahead to a lot of economic data. we're also still in the thick of earnings and we're getting caterpillar before the bell, long with among others black rock, as well today. >> and nicole, european stock markets have been firmer, up about a percent earlier on. getting back to level just off the level ftse 100 slipping further away. 0.6%. xetra dax 0.7%. cac quarante up. basic performers. banks starting to weaken again after early gains this morning. christine? >> we are watching the euro closely. we are seeing some stability in the euro right now. holding steady as the market awaits for the next step after greece requesting emergency loans. kind of the details needed on that package. taking a look at the euro/dollar right now 1.3298, still not

convinced that the worst is over for greece. sterling/dollar 1.5439. euro/sterling 0.8612, and dollar/yen continues to whoever around the 93 level. although dollar is stronger, a little bit stronger against the yen right now 94.07. nicole? >> okay, christine. we're also focusing on goldman in the united states. stuart weissenthal joins us live as the guest host for the last half hour. andy hartwill, market strategist at quasar is also with us. we got your thoughts, andy, on goldman, saying that was the case to bring back steagall. joe, we're waking up money morning and looking at a flurry of e-mails that came in, specifically one from blankfein that contradicts what he had said, that they had lost money and now out saying of course they didn't dodge the mortgage mess, we lost money and then we made more money because of the short. what are we supposed to make of that? >> obviously they had different trades at different times, some of which made money, obviously on net. especially in 2008 they lost a

ton of money relating to housing mortgages. i think what the bottom line that the e-mails showed is people in the course of doing business write e-mails. sometimes they regret them, especially if they come out and there happens to be a crisis and their company is blamed for having a role in the crisis, the e-mails look very bad. >> well, yeah, they look really bad. let's look at one from fabrice tourre who says i managed to sell a few abacus bonds to widows and orphans i met at the airport. apparently these belgians adoor synthetic cdos. that doesn't sound just bad it sounds really, really terrible. >> it sounds absolutely terrible and it's the woirs kind of thing to come out. it's obviously not the case. it's the kind of, obviously not literally true. but it's the type of thing that people say to their friends, to their girlfriends, to whoever, to their colleagues, to sound cool, and people -- >> goldman wants to make him out to be one bad apple. >> sure. >> and not indicative of the entire firm. >> and to goldman to defend no one else within the company has really been identified. so, they have an argument in --

they would have an argument in saying he is one bad apple. >> joe, good morning. it's andy over here in london. i was just wondering from your perspective, goldman's clearly embars aed by this e-mail trail. the s.e.c. and others are going to pick up on that clearly this week. do you suspect, from your perspective, that they're alone in having these kind of dichotomies, shall we say, within the business practice? >> no. i don't think they're going to be alone at all. and i have -- i'm absolutely certain that, you know, if you walk through other divisions and other companies you'd get similarly embarrassing e-mails. to their defense, i mean, and to anyone's defense, this is what a large, complex, financial institution should look like, different sides of the company making different bets. ideally crossing out, hedging each other in some way, with some top-down higher management having a top-down view. but no, i mean, you know, you keep digging with different companies, different divisions,

you'll get plenty of embarrassing stuff. >> joe, this is christine all the way here in asia. what's next? what's the next shoe to fall here? >> well, certainly think that whether it's connected or not, or whether they're to blame or not, this makes financial reform a complete shoo-in at this point. now it's just a matter of what kind of details are going to be in the bill. but the bill, a passed bill is definitely a done deal here. >> what kind of details should be in the bill, joe? there's a -- there's an op-ed in the "journal" today that says is is a misguide add tack on derivatives. we need more to warn us of the asset bubbles that are potentially forming. is it ray misguided attack? >> i would say it's scandalous that in retrospect now we're going after the few players, with the hedge funds or one firm that did particularly well. scandalous that we're going after those who saw the housing dubl bubble, and made appropriate bets, either to protect themselves against it, or to profit from it.

that being said there probably is a reasonable case to bring more daylight to the derivatives market. just so that it's clear who's taking what risks, and how much exposure financial institutions have to what. so, you know, you know, some 6 the anti-derivatives regulation would clearly go too far in terms of killing that market. but rules that would make pricing and market volumes more clear. something like that in the bill would probably be a pretty good bet. >> we also had on some of the sunday shows, take a quick listen. >> there's something terribly wrong about a system and a country of ours where you make billions of dollars by making nothing or producing nothing. but merely taking advantage of an economic situation. >> we've got to end once and for all the casino atmosphere of wall street. where they're gambling basically on synthetic

ideas and so forth. with somebody else's money. putting banks and our whole banking system at risk, and producing nothing. >> all right. so two sides of the aisle there coming out, and saying we need financial regulation. something is going to happen. we don't know exactly what but is it a casino style? >> there's rhetoric that plays very well. and certainly the public doesn't understand these kind of stories. so to say this is just sort of synthetic ideas or gambling with other people's money is the kind of thing you would say as the run-up to passing a bill. i tend to think that's probably more bluster than truth. but obviously, there is a gambling aspect to finance, and that's not necessarily a bad thing. to some extent, legitimate economic purposes have use of -- have legitimate hedgers and actors have use of having speculators and gamblers on the other side. so there's a little bit of -- there's some truth to what they say.

the idea that that's all just pushing paper around, or creating synthetic products, is -- >> it's good sound bite. >> yeah, it's a good sound bite. >> stay with us. we're going to have more sound bites from you, specifically joe wiesenthal, the editor of business editor dotcom. also andy hartwill stays with us as well. still much more to come on the program. cleaning up the oil spill. we'll have the latest efforts to stop a thousand barrels of oil a day from pouring into the gulf of mexico, after a rig exploded and sank there last week. appropriately here's a quick look at how oil is trading.

welcome back to cnbc's "worldwide exchange." we're getting a nice pop across the region, particularly over in tokyo. let's cross live to japan and check in on the trading day there. >> thanks, christine. the nikkei 225 rose 2.3% monday, its best performance since february 22nd. exporters rallied as the dollar marked the first three-week high against the yen and the euro also rose to a one-week high. among the notable gainers, ihi jumped nearly 7%. the company and toshiba said that the two firms will form a joint venture in october to

start the core production of steam turbine components for nuclear power plants. the companies aim to merge their nuclear equipment businesses to improve their ability to compete on cost. toyota motor rose 3.4% after the nikkei reported that the company is expected to report a group operating profit of as high as 50 billion yen for the last fiscal year. this would beat its forecast for 20 billion yen lost as cost reductions and weaker yen have helped stave after another year in red. after the bell, canon said its net profit more than tripled in the fiscal first quarter through march, from a year earlier. the company said brisk sales of high margin digital cameras and a recovery in demand for printers helped to boost profits. besides canon, dozens of firms are slated to report results this week and market observers say that the stocks will likely gain further this week, given

confirmation of good earnings reports for the jest-ended fiscal year. that was the nikkei business report. >> thank you very much. nicole? >> and christine, merger talks between united and continental have reportedly hit a snag. the "new york times" says there's a disagreement over the price of the stock to stock deal, particularly the ratio united planned to pay for continental. it could be a zeal breaker but the companies are still talking. in frankfurt, continental is trading up slightly, i believe, about 2%. so is united about 1.2%. the u.s. coast guard meanwhile says oil leaking from a deep water rig that exploded and sank last week in the gulf of mexico is expected to stay 30 miles off the coast for the next couple of days. the well attached to a deep water horizon is now leaking 1,000 barrels a day into the gulf. crews are trying to stop the flow by using robot submarines to activate valves at the well's head. 11 workers apparently on the rig are still missing, presumed

dead. there is a combo in the car rental business today. hertz is buying dollar thefty for $1.2 billion or $41 a share in cash and stock. that's about a 6% premium to friday's closing price. the deal gives hertz a stronger foothold in the leisure rental market and boosts its international presence. hertz and dollar thrifty closed higher on friday. hertz about 1%, dollar thrifty about 0.5%. ross? greek drama continues? >> it does. i was just thinking, actually, rental companies did quite well out of the ash cloud the other week. now greece, as you rightly say, says it's confident it's going to get aid in time to avoid default as it awaits its eurozone peers and the imf to approve a 45 billion euro loan package. guy, don't think it will be much bigger than that? what talks on the bloc for nearly a week have been asked to

produce more debt reduction plans before any help can be activated. ireland's biggest bank is planning to raise nearly $4.5 billion in capital. bank of ireland says just over $2.5 billion will come from a rights issue. the rest will be from its institution of shareholders, and says the extra capital will top the government taking an even bigger stake in the institution. the government expects to own around 36.5% of the bank after the capital raising. christine? >> ross, well thailand's pro-establishment, the yellow shirts, have called for the imposition of martial law to end mass anti-government protests. the yellows are warning that they might act themselves unless the tense situation in bangkok improves. last weekend prime minister abhisit vejjajiva flatly rejected a red shirt offer to call elections in 30 days and hold a vote 60 days later. meantime the president said he would scale back the government's projection of a 4.5% economic growth this year. and checking the thai markets, seem to be unaffected by the

news, moving higher 1.3%, 764. ross? >> okay let's get a final thought from andy hartwill with us. we've got the debt threat still from greece. we've got earnings which by and large prove okay. what's going to win out in the week as well that we're going to hear from the fed? >> i think they've already put their cards on the table. they're going to extend the period over which they don't take any action to tighten up on rates, i think that's going to be an abiding story. at least monetary policy and relatively loose fiscal policy, as well. but what's happening as well this week and elsewhere around the globe is tightening up on bank regulation, tightening up on rules and regs around debt. those two have been engines of the big growth phase, the big bull market that we've seen in equities since the early 1980s. effectively big market deregulation was the thing there, as powerful as the second world war. that has gone into reverse. there is no doubt that, you know, when you're looking ahead, you're going to ask questions about where the fuel for the big growth surge comes from in the

western developed economies. and i think that when you hear stories about equity markets coming to the top of this current cycle, whether or not it's time now to take some profits, i think that's where you are. that's certainly my strategy, as well. >> okay. thanks for joining us, andy hartwill, market strategist at quasar. "squawk box" kicks off in just under 12 minutes. becky is with us. >> good morning, ross. you know we have a big week for the markets, including a fed meeting. the first report on first quarter gdp. we've got more quarterly results and goldman's ceo lloyd blankfein will be testifying on capitol hill. so, it's a perfect time to talk to our guest host today, neel kashkari currently with pimco. formerly with the treasury department and with goldman sachs before that. we will tackle everything from the financial reform bill that's making its way through the house and through the senate and for the case against wall street. wall street giant goldman sachs as well. plus we'll be talking about the debt threat today. what are the chances that the fiscal problems in greece pop up in other countries around the globe?

we've got world bank president robert zoellick. he'll be our special guest at 8:00 a.m. eastern time today. plus the world's largest earth-moving stock caterpillar is expected to plow et way into earnings central today. we've got the instant analysis reaction to the numbers. we'll tell you how the stock's reacting, as well. all that, plus we have mr. yen today. he's going to be joining us in about 15 minutes. a great time to talk to him about the latest moves in the currency markets, what he thinks of the greek situation, whether he thinks that situation will be spreading. it's all coming up at the top of the hour, so ross, i'll send it back to you. >> i remember when we used to hang on every word from mr. yen ten years ap >> oh, yes and we're going to be hanging on every word this morning, as well. >> thanks, becky. >> and so much more to come on "worldwide exchange." actually just for another ten minutes. earnings season continues, as becky was mentioning with numbers today from caterpillar and texas instruments, among others. after the break we'll let you know everything you need for a successful trading day.

the economic calendar is chockful this week. housing, manufacturing, consumer confidence, the fed meeting on tuesday and wednesday. also today, the census bureau releases first quarter numbers on home ownership and vacancy rates at 10:00 in the morning new york time. caterpillar, dow component reports before the bell, as do block rock, humana, and home appliance maker whirlpool. after the close we get texas instruments. joining us again for a closer look at the day of trading is joe wiesenthal the editor of business insider dotcom. joe, very to tell you, you weren't here this morning for our conference call at 1:00 in the morning. but, we were having one, between christine, ross and i, and we were talking about greece. and we were basically saying, yes, we are covering it, as we should. but why do we care in the united states? and christine might also jump in for her thoughts out of asia. why should we care? >> i think it's an interesting question. certainly now the u.s. markets don't seem to care at all. there's all sorts of headline risks for the last several

months. greece on the verge of whatever, is the euro breaking apart? it's a pretty dramatic story. and the u.s. market has just not cared at all. the stock market has continued to go up. the biggest fact i guess is the currency with respect to the euro. the euro obviously regularly tanks on the greek news. but it's not obvious that anyone in the u.s. is actually that concerned about greece. i think that's kind of the surprising aspect. >> mohammed alarian saying on friday that this is almost like subprime mortgage crisis that global investors are going to seek safety and then it's going to cause some ins and outs from the eurozone, and potentially some chaos? >> yeah, i think one interesting analogy to the subprime crisis is that, you know, subprime was a very small slice of the housing market, and a very small slice of the assets the bank held on banks held on their books. but it metastasized and turned into something huge. greece itself is a pretty tiny country. if it, you know, collapsed, it wouldn't be a huge deal.

but then that turned into a loss of confidence with portugal and spain, and then you could get a serious -- you start to see a serious spillover. at that point i have to imagine u.s. markets would get pretty freaked out. >> do people, when you have a story out about greece, people are clicking, they're commenting? >> people are actually pretty interested in the story in terms of reading about it. and anything that has to do with the euro having been a big disaster, especially compared to a year ago when people were talking about the u.s. dollar being toast, and perhaps the euro being an alternative currency. >> now it's opposite. >> now it couldn't be more opposite. that is a fascinating story. but in terms of actually having an effect on anything. no one seems to be convinced. >> ross? >> joe, what is interesting, of course, is the amount that greece is going to ask for for the next two years is less than the u.s. is going to try and issue this week, in twos, fives and seven years. we've got $118 billion worth in those three auctions this week and every week we go and people

get a fear, well maybe an auction is going to sort of fail and not go so well. you got any fears about the u.s. debt issuance? >> right. this is one of those things that people have been fearful for a long time, that the u.s. is issuing so much debt, and that the appetite won't be there. i'm not particularly concerned that it will be imminent. there may be at some point down the road that could happen. right now we're getting the exact opposite, incredibly low interest rates, which are confounding everyone. very healthy debt auctions. if you're looking for analogy, i mean people thought japan was going to have a debt crisis for decades now, and they continue to -- >> that's true. we have to cut you off, sorry, joe, we're out of time. great to see you on behalf of christine, and ross westgate thank you very much for your company on "worldwide exchange."