welcome to the show. the headlines from around the globe. markets in europe struggled to hold onto modest gains after the dow suffered its biggest poi eg this year after the debt issues. and they say america's trade goes against the global rules and china will not tweak the yen to accommodate washington. mitt romney adds six more

states to the win column. and the resource of the economies slows to a crawl in the latest quarter. grabbling the local dollar and reviving talk of easing. hello. welcome to the show. you're watching the "worldwide exchange" with christine tan and me, of course. let take a look at what's going on around the markets. yesterday we had this big selloff struggling for direction. if we look at the movements overall in this index, we're higher but just by a fraction. they keep bouncing around. between upward 1% and 2% overall. looking around the region, though, this is how it's varying from country to country. in the uk, the ftse 100 is up by

1.1%. similar moves for the dac. the cac is moving. we are struggling to get back onto the upward trajectory after the selloffs we saw yesterday. just to remind you, the cac was down by 3.6%, the dax, 3.3%. let's move on to some of the other markets and see what's going on here. the euro/dollar, 1.018. as part of the big markets yesterday the euro lost ground against the dollar. we had the 1.8% move yesterday. reversing that marginally. dollar/yen, down.

sterling/doll sterling/dollar, flat, the euro against the aussie dollar fairly stable, 1.2433. from the currency markets to the bund, we'll look at that. italy, what's going on in the peripheral europe and perceived help of the european countries, just over 5%. 5.1% is the yield on the ten-year italian debt in the uk to 12. and the ten-year in the states is 1.96. the commodity markets also demonstrate some of the moves we had yesterday. and we saw the big selloff from the markets, which was the beginning of the story. we saw selloffs certainly across the globe and oil. and gold had a big move to the downside yesterday. the nymex and brent are putting

back today. brent up by 0.6%. gold lost yesterday, continuing in a downward movement. christine. >> back here in asia, struggling. a lot of investors are worried that greece might not gain the support of private investors. that's weighing on sendment. that attitude and negatively as well. off point 0.6%. lower mostly because of the stronger yen. the topix down 0.6%. else wr elsewhere, the shanghai market filtering over. it comes at up 0.65%. those outlook for weaker earnings coming from chinese companies dranking down hang seng 0.9%. the australian market down.

1.5%. gdp quarter grew at a slower than expected pace. that put pressure on the banks. not to mention the miners were also weaker as a result of weaker metal prices, boosting the case for eeasing from the rba. the sensex trading to the upside. 0.7%. not a pretty picture here in asia, becky. >> okay. well, u.s. markets yesterday suffered the biggest percentage drop since november of last year. the dow fell over 200 points. the quarter of the gains it's seen since the beginning of the year. closing up over 50%. that reflects a declining investor risk. certainly weighing on investor sentiment. full greek pension funds, have refused to take part in the exchange program because of mounting pressure from the unions. well, according to "the wall

street journal," greece is confident it will be able to achieve up to 18% participation in the bond swap. it could trigger a credit event and potentially a messy default. they have turned up the pressure on reluctant participants saying it plans to make binding on all losses. the six largest greek banks will take part in the exchange voluntarily. joining us now is our guest host for the next hour. let's start by bringing together this greece story and the movement. we did have a selloff from yesterday's session right across the markets and right across the globe. was that to do with the situation in greece, or were markets ready for a selloff anyway. >> i think a little bit of both, to be honest. if it does trigger it, who is it

and might they then be forcing sellers off in order to meet those lie abilities. they have talked in the high 80s. you still wouldn't trigger the clauses. nevertheless the actual markets have had a very, very strong round and we haven't had a down by more than 1% all year. compare that for last year and you're getting minus 3% or plus 3% days. now they're grappling toward the support level. they're like, let's just book a little bit of profit and step back and let's see what happens with these default or not and if there's any financial factor liabilities on the other side. >> when i look at the movements in the dow yesterday and you take that back to the early

october lows, we're still nearly 20% levels with the decline. >> yeah, we're already -- i think it's very important to separate, the, if you look, the solvency issue of greece, which hasn't gone away and the ee k v equivalency issue. the only people who could buy italian bonds were italians and spanish bonds the spanish because you knew you would get paid back. that was the real issue in the last quarter, last year. the ltro just sorted that out. you haven't got that worry about massive lid quickly to drain. we never forgot about the greek solvency issues. now, let's step back and see how that plays out. >> we'll talk about both ltros in a moment, but could this lead

to a decline if we believe we're going go for the backup? >> i twhank we have seen this year, we saw very strong correlati correlations. on daily basis, everything goes up and down. there are clear moviers of people who are doing well in this environment and people who actually are struggling. and i think if you identify stocks that you like at the right place that are managing their business well and you get a pullback, i think people will step in and pick them up. taking profits on an index level, i think they'll go back in on a stock level and i think that will be the characteristic of this market. and i think if you saw v% expensive, you wouldn't have really want to sell it as a long-term investor. if you sold it at a 5% yesterday you wouldn't want to sell it today. i think we will get this split between winners and losers, which started at the end of last year. i think that will continue throughout the course of this year. >> just to update what's going

on with the greek psi, we have headlines crossing the munich read saying it will take part. it is participating. i will sign up to be a private creditor deal, but we do have until tomorrow evening for all parties to show their hand, to bring any more breaking news. through the show. brazil's central bank expected to cut rates by 50 basis points later today as it battles slowing inflation. however, policy makers may be attempting to reduce it further following disappointing gdp figures. they have said the so-called rate could drop to single digits from the current 10.5%. expanding to 2.7% following a 7.5% of growth in 2010. mark, let's just get it from you on brazil. i mean it's still growth, but

certainly a very sharp slowdown in growth from before. i guess one of the issues we have been concerned about with many of the formerly fast growing companies and the impacts upon them. is the investment story still intact for them? >> it's been the growth in china, particularly the infrastructure-driven growth in china. remember the chinese have told us something they've been telling us for some months. they're going to focus on the export. they're digging the stuff out of the ground and digging to china. it was a powerful drive to their economy. yes, there was a spillover growth and there's stuff going on for the consumer and elsewhere. the real engine is being the

iron ore and metal prices. it has been surprising. i think brazil will still grow this year but what they've certainly said is when they've had overheating and interest rates going up, that -- which is bag draw, you have that and the currency appreciation. to keep growth ticking along. that has affected the way a number of investors are sort of allocated toward those brit countries. so it's a slowdown, but it's arguably more sensible. but, you know, it's very -- it's a geared economy still to the export and sort of mining and production and kmirks ait's no . we shouldn't be surprised that they're surprised. >> hey, mark, speaking of the slowdown as well, something you alluded to earlier in your

comments, it dips from the record high. the gdp came in at 0.4%, knocking the dollar down and reviving a cut in the interest rate. it came a day after the caps on hold. let's get some thoughts now from mark tinker. mark, yesterday the rba kept rates on hold. do you think for once they're behind the cut when it comes to cutting rates. >> i think, again, the interesting thing about the australian economy is what was just described about brazil. they've got a mining sector, but they've also got quite a large housing problem. they've got a two-speed economy. it's been slowing down very rapidly. the rba has been cutting it in acknowledgement in that consumer part of the economy. i think they're going to continue on the easing tack because, you know, as you just said about brazil that the faster engine is slowing down as

well and there's no need to have such tight monetary policies. behind the curve, it would be a little bit much to expect that and i think the definite trend is for an environment with a loosening policy, acknowledging the fact that they've got a two-speed economy. so there's no need for such high levels of interest rates, and obviously the aussie dollar is thought to reflect a little bit of that because just like the brazilian reality, when you're raising interest rates, you attract a lot of hot money, pushes the currency out. you start easing interest rates and it all starts to move into reverse. to a broadly weaker environment. reflecting china, shifting its economy away from importing stuff that's dug out of the ground and starting to focus more on its own consumers. >> and speaking of china, of course, a lot of demand for

australian resources coming from china itself. if china continues to maintain at a stable pace of 7.5% which was alluded to earlier on in the week, we get a kind of slowdown in china, a softer landing in china, how supportive would that be for the australian market. >> well, again, i think it's important to recognize that what we're talking about, i don't care so much about whether it's 8% of 9%. remember, they're relative numbers. the real numbers are much higher. it's the balance of the economy. the otherish when it comes down to the australian market, when they're sending coal to china, they're trying to blals the commodities themselves so we need to look at that part of the equati equation. you can still have strong growth in china but the prices could fall back. we've seen that in the change of the profitability in the number of australian mining companies and the slowdown in the profit

of those sectors as well. i think it's not disastrous, but it's definitely a shift and a rebalancing of the relationship between the core and the sort of periphery markets. >> we have to just take a quick break. we'll be back shortly though. still to come on worldwide states romney took six states but is the race to the white house doing more harm than good for the republican party? we'll get more live from washington coming up next. don't go away.

so mitt romney has narrowly beat rick santorum. ten states were up for grabs. mitt romney took six, rick santorum took three, newt gingrich won in his home state of georgia. this is how the super tuesday panned out and this is how the race has figured out so far. it's pretty easy to figure out when you look at santorum. he held onto middle america while romney is prevailing on each extreme of the states. east and west is where romney is managing to hang onto votes but in the sense that santorum's spot.

it's also interesting we didn't get as a result of super tuesday a particular victory on either side. so much hanging in the balance. tracie potts joining us from washington. what do we know about this race having come through since tuesday? well, becky, what we've learned that's pretty clear is mitt romney has at least solidified his lead in terms of delegates. keep in mind that states won does not get you the nomination. interestingly, nor does the popular vote. it's how many delegates from those states you're ability to collect. and even though the totals aren't done, mitt romney is looking at over 300 after super tuesday. his closest competitor, just over 100. he's got three times as many delegates as newt gingrich and rick santorum at this point. that means he's a clear front-runner after super tuesday. >> tracie, we still have bait

further to go in this race. what are likely to be the key flashpoints? we all knew ohio would be a big one and mitt romney won by the narrowest margins. what are the flashpoints we should be paying attention to? >> he won narrowly, by about 1 percentage point. i was looking at the numbers this morning. what that tells us is that rick santorum, who appears to be his closest competitor, has some appeal. there are some areas that people like about him. they like his focus on conservative values. he's seeing his biggest wins in the south, in the central area of this country. what mitt romney has focused on is the economy, and it is certainly a message that reverberates here in the midwest, which has been so hard hit with jobs, but he's got to do more than that. this thing could still turn around in terms of delegates, in terms of the nominations. he's not home-free so to speak.

so there are some areas where mitt romney has yet failed to connect. what his team should do after super tuesday is take a very close look at the exit polls and take a very close look at which groups of people grow for rick santorum and try to make some inroads in those areas. >> tracie, an amazing story here. even though there's no conclusion yet, that makes for a great view. tra tracci tracie, thanks for helping us see what's going on. they'll take up the auctions, concerns in greece boost amount and safe haven assets. benchmark bonds still trading in on tuesday. yield is at 1.79%. also yofr night gots of the ecb may be very close with the all-time high following the banks last month. almost 817 billion euros in the

deposit on tuesday. just off the record, 827 billion reacheded on monday. tomorrow the ecb's going to decide on the interest rates. after the second ltro. joining us now is marcus swarngs strategy gi strategist. mark is with us still. 827 billion euros with the ecb is a huge amount of money. what does this tell us about the extent to which the second round of the ltro works on us? >> i think it depends on what the purpose of it was. i'm sure mr. draghi was hoping it would be held onto and businesses in general. one continues to perceive it to

some extent. i think wait tells us is the banks are still holding huge amounts of money. the interbank market doesn't work, the ecb is effectively the account for the euro money markets and the banks are basically making sure they've got enough money to pay down the debts, which are going to be maturing. it leaves us effectively in gridlock perhaps a better way of describing is deadlock. we're not going to really see much improvement. particularly not with respect to the spectrum of greece. >> it's a pretty -- markets are a pretty expensive way of achieving deadlock, isn't it? what's it going to take to move the banks out with this kind of hunkering down? >> it's very important. the people that have borrowed the money from ecb are solving their own liquidity problem and

in doing so they offer it to a different set of banks. what we're actually observing here is it's the -- the ecb is acting as the party. banks aren't connecting. they want to make sure there'sq places. moving on to actually lending money to smes which is what they thing we should be doing right now, thing, is another stage on. and what we still have is an awful lot of liquidity parked in the north part of europe and an awful need for the liquidity still in the south part of europe. >> the sme business is a red herring, isn't it? it's a way for politicians to spend a lot of o money to given to the banks. >> it's not a red herring. gimp that we haven't solved the problem, the fundamental problem is we haven't solved the

solvency issue in the banks and given the eurozone and more austerity pretty much across the board, you have to ask whether it would be wise for banks to be lending to small and medium-sized enterprises which are inevitably riskier because they don't have that kind of mass. the outlook for the economy is still hugely unclear. >> interesting. mr. oswald, hi. here in asia investors want to know if they're going to get another. will they see a selloff in the markets? ? >> once again, greece has been an excuse for movements in markets where one actually looks at what happened over the past 9, ten weeks of this year. a lot of it has boiled down to it's been a new year, a lots of people have been putting a lot of money around and hunted down the so-called riskier assets or

ones that would offer some return as opposed to no return that you get on government bonds. we actually manage to achieve a lot of the markets in terms of equities for developing market and emerging markets. in those first couple of -- in those first six to seven weeks means that people have now got a case of vertigo. the greek issue provides another issue to focus on at the moment and it doesn't pose a very real risk. i suspect what the outcome of the psi is going to be is somewhere between the 75% sort of cut-off, lower cut-off, and the 90% that they'd like to achieve. so, again, a result which sort of moves this forward but doesn't take us really out of its limbo. >> so are we just kicking the can down the road? is it only a matter of time before policy makers say, you

know what? we've got to let greece go? >> definitely. this was never going to resolve the greek situation in that. if only we were ever trying to target the debt gdp ratio, 127% by 2020. and given that the scope for political deadlock in greece might actually delay implementation, let's loan the general sluggishness that we've seen already, it was never likely that it was going to be great solution, that it was going to be a kick of the can in the hopes that things would improve. >> one of mark's comments at the same time, my worst nightmare, we manage -- mr. oswalt, mr. tinker, thanks to both. >> it was great, becky, having mr. oswald on. coming up on the "today" show, one year on from the fukushima disaster, we'll discuss how the japanese economy continues to recover.

welcome to the show. the headlines today. market in europe. more financial institutions come out to say they will participate in the greek debt swap. and beijing says america's trade bill goes against global

rules, and china will not tweak the value of the yen to accommodate washington. in the u.s. it was a super indecisive tuesday as mitt romney adds six more wins to the win column. australia's resource-driven economy slows to a crawl in the latest quarter of grappling dollar and reviving talk of easing. >> so let's take another check on the markets across europe, the equity markets. we did see a little more optimism coming through. we just hit fresh session highs with gains of just over -- 9.4% in the last few minutes in the stoxx 600. let's look at it and see how things are shaping up in each country. here the fotse is up 0.19%.

remember, we're. going off a day yesterday when we had significant declines for many of these european markets. in fact, yesterday, the biggest percentage decline was the cac which lost 6.3%. we look that as we look to to upside. a quick check, too, on what's going on in the bund market. the ten-year is 1.79. in italy, just over 5%. that's come down further. it shows how the periphery is fairing overall. in the uk just over 2.9%. let's also pay a bit of attention in the currency markets too where yesterday we saw significant moves for the dollar certainly against the dollar, the euro weakening by about 9.8%. the dollar/yen is at 80.67 while

the euro is suffer, maybe a little high. the euro against the aussie dollar holding steady at 1.2430. so in the commodity markets we also saw some moves to the downside yesterday in oil and in gold, too, of course. when it comes to oil, it's been much of the story of gop issues. brent is trading up by 9.6%. nymex by just about half a percent. and gold came off about 2% in yesterday's session, trending fairly flat right now. just a fraction higher at 1674. christine, how are the asian markets fairing? >> that's weighing on sentiment across the region not to mention slower growth coming from brazil. that also upping the risk aversion we're seeing across asia.

topix is up 0.6%. initial euphoria in any we saw. drifted as a result. the stronger yen didn't help sentiment either. shanghai life insurance warned that last year's net profit is going to be down as much as 50%. driving this particular market. concerns about earnings coming from china, that seems to be the big picture. the australian market, clearly the focus today. we had gdp in the last quarter growing at a less than expected pace of 0.4% and that kind of put pressure on the banks not to mention a result of weaker metal prices. of course, all this boosting hopes from the rba. soon, new zealand, pretty much flat. the sensex over in india up marginal are down marginally 0.2%. we're talking about china. trade relations, that seems to

be the talk today. simmering and u.s. president barack obama gets ready to sign a trade bill which would give washington power to impose duties on subsidized goods from china, but beijing is fighting back. tracey chang is going to tell us more. tracy. >> today china's kminster strikes is a very strong tone against against the u.s. trade bill targeting chinese imports at nbc press conference today. he says america's planned trade bill goes against international rules and he also said beijing has little interest to really tweak its currency to manipulate the exchange rate to help alleviate americans' current trade deficit. >> the world trade organization groups that we abide by, but we do not have a duty to abide by some country's internal laws and regulations which go beyond the

rules. >> he also says that china has done a better job at rebalancing global trade in the u.s. he says chinese exports are projected to increase by about 7% in the first two months compared with the same period last year while import growth is likely to rise about 7% in the same period. he expected rising chinese exports in the second half of this year to meet a target rise of 10%. back to you, christine. >> interesting. tr tr traysey, thank you very pluch. >> i think a lot is tied up. u.s. politicians make a lot of noise about china because they're very aware of their constituents. the exports is the reason they haven't got jobs. i'm not sure as an investor that we have to suddenly rate this as a new threat. i don't think china's accused of

currency manipulation, but it's more noise rather than anything first to focus on it. i think it reveals an underlying truth, though, and think that point about regrowth and exports is important. the regrowth is important for us as investors. they shift away from what they used to import -- used to export actually. they're now moving further up the value chain, so i think china is definitely developing, and think this is a little bit of noise in the background. and the biggest story out of the congress, of course, is that shift to tin term focus and the greater chinese consumer. >> let's bring in andrew leung. andrew, you're with us from hong kong. from where you sit, is this just political noise coming from the u.s.? >> well, i think it's a little bit more than that because you can see that the average american workers are seeing a

still relatively high unemployment and also the wages in america have been depressed. on the other hand on the part of china, you can see that the trade deficit between america and china has, in fact, been declining. if you look at the bay it's been increasing since 2005 on an average of something like 4.5%. but i think the crux of the matter is that what has been -- what can be exported out of america to china, in fact, is already being exported. but what china wants is -- they're subject to a lot of export restrictions because americans fear that, you know, china is using the technology for some other purposes. so i think that there is an imbalance there. definitely china wants more american exports or imports from america because china's growing

is domestic consumption market. so i think that there is a -- an imbalance on both sides. >> and how do you see this imbalance working out? i mean if we get the law that the bill put in place that ultimately gives the u.s. something to use against china, how is china going to retaliate? >> well, thii think that the la- whatever measures are going to be introduced under the bill would have to comply with the bto. i thrng think that the -- this, course, is nothing new around the world. you can see protectionism is rising as the world economy is pretty weak. i think china is prepared to obey the wto rules. we talk about subsidy, and, of course, all governments, the government is immune from some form of government support.

but at the end of the day, any measures taken against china would have to comply with wto rules. >> mark, are you concerned about hard lending in china, or is this an issue that the rest of the world should factor in? >> i think the key point is not the absolute number, whether it's 8, 9, or 10. andrew making a point about exactly -- the wto rules will be followed, and you'll have a lot of noise, a lot of rat until europe, in the u.s., anywhere there's an election, you have to find somebody to blame. it's quite clear it's not cheap chinese exports that's the problem. it's whether you want to export your technology and so on. so i don't think china's going to have a hard landing at all. it will have a slower rate of economic growth, but that's the lower big numbers. you can't keep growing at 15% in nom am terms without causing

imbalances and i think they're managing that transition from being about production and exports to being about consumption and imports. and one of the things that's particularly interesting in china for me is the wages are going up very rapidly, which is driving the consumption side of things but that, of course, means they're no longer competitive on cheap production. now, that is going to equilibrium now. the market is doing their job. they're much more interested in building robots and actually using western technology to actually compete just like western production units in terms of using a lot more machines and a lot less labor. that is changing the dynamics of their economy. so i think it's not whether it's growing arkts nine, or ten. actually it could grow at three, four, or five. as we've seen from brazil today, australia, what we talk about this morning, they're not just consuming stuff these dug out ground.

it's a different economy evolving. >> hmm. andrew, how under valued do you thing it is and what sort of increase would the u.s. be happy with. >> well, basically the u.s. politicians want to blame everything on the -- on china. but the irony is that even if china's products are a tiny price out of the u.s. markets, this is not going to help american jobs because a lot of the production, especially the kind of low wage production, is no longer viable in the united states. so even though the american consumers are not buying from china, they're buying from other developing countries, so it's not going to solve the problem, but i think it's convenient politically to blame china because china's now seen as threatening the u.s. in many, many different ways. but then on the other hand,

china, as i was saying, wants technology from america, and, indeed, china would like to promote the export of its capital. not just investing in u.s. treasuries but also in other sectors to gain expertise, to gain technology, markets, so on and so forth. so i thenk there's opportunities for more beneficial relationship. but unfortunately in the run--up to the u.s. election, this is a very convenient way, you know, to gain political points or to protect the political flarnks o the current legislation, so i thing this understandable. >> andrew,ing that you for your insights. andrew lueungleung. well, u.s. special envoy is in beijing ironing out apparently some arrangements for

the first u.s. food shipment to north korea in three years. last year pyongyang announced the suspension of uranium and missile testing in exchange for food aid but the u.s. is not concerned in light of the recent developments. to tell us ore relimb. >> they have upped the flunk ber on antiarab. to prepare for attacks by the u.s. and south korea. the vice ministry here explained why he's still skeptical. >> we've had many other agreements in the aftermath of north korea's nuclear problems

but pyongyang failed to abide by them, and that's why we're concerned. essentially north korea needs to decide on it and abide by its words in consistency and action. >> and the seoul media is expecting north korea to step up its attacks in order to influence the elections in south korea. >> thank anniversary much. reyonge limb. many challenges remain. the ongoing nuclear crisis, the strong yen, sluggish growth are only exacerbating the situation. cnbc's reporter reports on japan's path to economic recovery. >> reporter: japan's northeastern coast is about to embark on the nation's biggest rebuilding efforts since the war. most of the $230 billion the

government has earmarked will be spent this year, enough, economists say, for japan's economy to grow about 1.5%. >> we are pushing the gas to the floor, but economy cannot get enough traction, so budget deficit continues. >> reporter: over the last two decades, japan can finance its debt easily as its elderly put its savings into japanese government bonds, but the working population is shrinking, 1% every year. japan's youth is settling into a job much later in life, which means that they're earning and saving far less than their parents. if this generation stops buying yen assets, then rates will rise, a very dangerous prospect when gross debt is already above 200%. in the past japan has relied on exports to recover, but for the first time in 31 years, japan exports less than it imported in 2011.

manufacturers are leaving the country in the face of a strong yen hiking it to export industries. >> japan's trade balance is simply shrinking while the income balance, meaning the money earned by companies overseas is increasing. it will remain positive for many yeart the trade balance is not only negative, it will continue to shrink. >> reporter: prime minister noda is pointing to the european debt crisis to underscore the need for the tax and social security systems. he's calling for a doubling of the consumption tax to 10% by 2015, a divisive issue that has toppled governments before. meantime rebuilding efforts is an additional issue for japan saddled with consumption debts, but is consumption tax hike the

answer. we have more. >> hi, christine. as was said, over 2$220 billion has been sets aside in the reconstruction costs so far. they're optimistic that more public spending will boost the economy. new forecasts out say japan's eek noming growth may reach 1.9% in fiscal year 2012 rebounding from the year before. even so with debt mounts twice as much and annual security costs, economic growth enough is not enough to restore japan's fiscal health. the government is pushing for a consumption tax hike and the plan is to double the rate to . prime minister noda wants to submit the plan within the coming month. his career is on the line and will face an uphill battle in

the coming days. that's all from japan. >> thank you very much. becky. >> we're ready for another quick break. a mist industry. apple has tech geeks in a flutter. will it unveil the latest version of its ipad and is it a game-changer? we'll discuss next. [singing] hoveround takes me where i wanna go...

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the industrial output fell. some regional spanish governments resisting agreeing to economic reforms too but the deputy budget minister has rule out giving administrations more flexibility on the deficit targets. this agreement is crucial as spain is a highly decentralized country with only 18% spent by the national government. it was said last week that spain would target a 5.8% deficit target in 2012. wider than the previous. we have more on that. stefan. >> yes, indeechltd two important regions. they're resisting but most of them, so far, 14 regions have a

agreed to comply. it was now at 5.8% of gpp. but they don't want the 2011 situation to open again in spain. last year it was at 5.5% in sted of 6%. they want to make sure they're fully onboard. given that they ear in charge of the transport, education, and health care, we are expecting some massive cuts. they'll have agreed to suspend it by 2012 with important cuts in the health care and situation and there's probably more pain on the road for spain because the government still wants to reduce the deficits to 3% of gdp in 2013. so after a difficult year in

2012, another very tight and difficult year will happen again in spain in 2013. becky. >> thank you very muff. time for a quick final thought for mark tinker who has been with us for the past hour. i know oil has grabbed your interest. give us a quick update. >> it's the one thing i've been keeping a close eye on. there's been a lot of talk and meetings about what's going on. they've gone oi a i way and bought oil and on the shape of the oil curve it tapers off very aggressively, suggesting the supply and demand are below 100. up front we're at 122. i get nervous when there's data mounting at the short end. we saw it back in 2008. when it unwinds it can have some sort of collateral damage for the last guy that bought on margin and that's one of the things. when i see a bubble building in commodities and all the noise hovering all around it, i get a

little nervous as to what the collateral damage will be. >> mark, thank you very much for spending the last hour with us. mark tinker from frame lington. jackie deangelis will be with us from the states for the next hour. >> good morning, becky, good morning, christine. rumors and hype today. we're going to find out exactly what apple has up its sleeve. the company is expected to unveil the new version of the ipad at 1:00 p.m. eastern time. the latest report, it won't be called the ipad 3 but instead ipad hd due to its higher resolution screen, 4 tip and screen. it will include the voice recognition software. who can live without that. the question at this point is really the upgrades that apple is making to this device, does the apple user really need them? >> hmm. i have an ipad 2, jackie. i'm just wondering does it make my -- should i really upgrade

and change to the hd? i'll have to wait and see because i just got mine. >> it's not to do with needing it. you may think you need these things, you don't just want them and so you just should buy them, right? >> fair enough. i like that approach. although i'm just bought the ipad 2 as well. not so interested in shelling out money to get if upgrade. we'll see. we're watching the brazil economy. so are the boom years over for the latin america powerhouse? what do you think? tweet me and i'm gel the questions to our next guest. wñwñwñwñwñwñwñwñwñososososvycyíy

good morning and welcome to the show. the headlines from around the globe this morning in the united states. it was a super indecisive tuesday. mitt romney adds six more states to win the column, but it's still not enough to cement his status as the republican nominee. markets in europe managed to post modest gains as more financial institutions come out to say they will participate in the european debt swap. asia says they'll go against global rules and china will not tweak the dollar/yen to

accommodate washington. and brazil's central bank may cut rates and may losing their policy after the economy slows down sharply in 2011. good morning. you're watching "worldwide exchange" with christine tan, becky, and me. i'm here this morning getting set up early. let's take a look at the picture. after a rough day for the markets yesterday it does look like the markets are going to open a little bit higher. if we were to open now, the dow would be up by noerl 41 points, the naz dik by 9. concerning about greece still within the raerm at this point but some traders telling me this was part of an expected selloff, corrected selloff correction. >> yes. it doesn't look quite sew

dramatic as it does looking in the one day itself. here in europe we also have markets that are managing to be a little bit higher after yesterday's selloff. gains, in fact, of over a half a percent for the cac and ftse, over concerns whether greece will be able to come up with a solution to the debt swap is really weighing on investment sentime sentiment. they have refaused to take part in the bund exchange rate. according to the wall street jury room, greece is department it will be able to achieve up to 80% par participation. i cold. they have turned up the pressure by lack of participants saying it plans to make losses banding on all of those holding of those bunds.

also worth pointing out to you that they said they will anticipate in that greek sovereign bond swap off as well. meantime here in the states the markets yesterday suffered the biggest percentage drop since last year. the dow fell over 200 points, giving up a quarter of the gans. we saw a big spike in the vix, above it there. joining us now is our guest host for the next hour is john sylvia, chief economist at wells fargo. he's going to discuss the situation in greece and the markets as well. if we go by what wall street is saying and the potential that we may not get the 90% we need to trigger the collective action clause, then what happens? >> you're taking away the veil, here, jackie, that this is volatile. this this is not voluntary at all.

i kind of get a sense that the market is saying, hey, wait a minute. now we're being forced to take on the debt swaps and that's very negative for the markets overall. >> not to oversimplify, but if the government is going to force the debt swaps to happen, why is the market getting all upset? >> i think it tells us it's a much more difficult situation. people are not voluntarily moving into this, willing to do the debt swaps. they're much more cautious about what's going on in the market place. they don't believe the greek government going forward can actually meet its obligations in terms of spending and interest payments. thereof you have to force the privacy holders into the debt

swaps. >> i want to know. do you think the market concerns hu are because of the sheer level of the certainty or the under lying issues themselves. that is to say, one we get an idea of how the debt swapping is going to work, much of the turmoil will go away because we'll know the deal? >> no, becky. i think your comment earlier suggested to me there are two different tracks going on. we don't know the depth of the problem so the uncertainty is there, but we also know the problem is so big i don't understand how you actually eventually get these interest payments being made. so i think there are two different tracks here. >> john, this is christine. people in asia don't understand why this is not getting -- a lot of people feel maybe it's policy makers do what they can before they finally decide, hey, you know what? we've done our best, it's time to let greece go. what do you think?

>> i think i like your earlier comment, you know, about china being in an unusual situation where they can't adjust their currency all that much because it does hurt their export market, and i think weakening the currency would also aggravate the chinese inflation problem. now, china looks at this in a very, very economic kind of point of view, whereas when you look at the european situation, it's very much a political process going on, and so we're not getting an economic resolution in europe in part because the politics are getting in the way. so i think if you look at the two different continents, you see two different approaches to solving a problem. >> do you think it's in the u.s. interest to go ahead and penalize china for its currency? >> no, i don't think it's in the u.s. interest. the chinese/u.s. relationship is

going to develop more significantly over the next 50 to 100 years. these are two parties that have to learn to agree with each other. you may remember, fechristine, fellow argued that two parties, whether it's a husband or wife, china and u.s., have to negotiate for the long term both in their own interests, coming to realize that you're in the game together. you can't just do one or the other. and so putting up legislation that attacks or goes against a particular country may get you political point fwhus the longrun it's not a good economic strategy. >> we're getting commenting out from the dutch finance ministry as well. maybe i can run a couple ideas past you. >> sure. >> saying we can't get any decisions and also saying the risks of not helping greece are big.

and banks' failings in southern europe probably could come to pass if greece isn't helped out. how much -- mouch should we be concerned about the long run effects in the rest of the world doesn't help greece enough? is there -- is it being overdone to say that it could have this kind of domino effect? >> it will have a domino effect, becky, in terms of the economy, not so much the sovereign risk of other european nations but i also join with other people in saying all of a sudden the netherlands have their own budget problem. surprise, surprise, that showed up. i think more fundamentally underneath, becky, both for the netherlands and greece and portugal and italy, is there enough growth out there to pay the bills? i think that's the bottom line story. >> certainly that's a big question right now. but when we talk about the domino effect, john, is that what we saw triggering the

selloff in the markets yesterday or are you of the camp that believes no, we were due for a correction, there was selling pressure, people taking profits, and, in fact, the futures are up this morning, so -- >> well, becky, in my view it's always what do you get relative to what you expected. and think people see an economic recovery, just not as strong as they had expected. greece telling us that europe is not quite as strong and not on the recovery period, path that we might have expected. so i think it's the challenge of what do you get, and i think the markets sold auchlt it's not getting what it expected snow just to bring you back to the finance ministry comments as well, that compares to the crises. they're saying the bank failings in southern europe will have a bigger impact than lehman's fall. do you agree with that? >> no, i disagree with that. i think it has an impact similar to what lehman was talking, but lehman was a total surprise.

i think, becky, whenever you have a shock to the system where it's a total surprise, it has a much bigger impact thifrmging how we're going to solve the problem. the greek issue has been around for three to five years by now and we're sort of working through it. i disagree. i don't see it having the same impact overall. >> okay. john, we'll have to leave it there. you'll be staying with us for more insight. still to come on the show, it's anyone's race as mitt romney wins six states on super tuesday but only manages a narrow victory in ohio. we're going to bring you all the highlights and analysis.

good morning and welcome back to the show. let's take a look at the futures on wall street. if the markets were to open now, the dow would be higher by nearly 45 points, the nasdaq by ten and the s&p 500, r5.3%. we did have the worst day of the year with the dow losing 203 points. only one component traded higher. that was intel. interesting as well that the dow broke its streak of 45 days without a triple-digit decline. becky. >> indeed. we have to put this into context. the markets are only barely out of bond market territory right

now. a bit of declines. and in the context of markets that are gaining again today, certainly that's the case here in europe where behind me you can see representative on this wall all the con state jepts of the stoxx 600. it's a panned european index, coming off the highs from earlier in the session action you can see from this interday chart. now, we have had a bit of a boost as we've gone through the show because during the past hour or so, we've had comments from the likes of munich ray and others that say they will participate in the greek debt swap. breaking it up, though, on a country-by-country basis, it's up by nearly 2.2%. the cac by 0.6%. the markets reflected here too. the cac lost 3.6% in yesterday's

session, so just reversing to a slight degree that move yesterday. now, speaking of the selloff we had in yesterday's session, we also had an impact, of course, on the currency market. the euro fell against the dollar, sterling fell against the dollar too as we had a bit of a risk aversion coming to the markets. today euro/dollar is trading at 131.47 right now. so the euro is pushing back up again by a quarter of a percent. dollar/yen is trading at 8070. sterling coming back as well while the aussie dollar has been pretty steady today around these levels of 124.27, in fact, entirely unchanged until just now. this is where the yield currently stands. very, very low yields, of course, where the tenure is at 179. in italy, too, a proxy for the health of peripheral europe. we have seen yields pushing even lower toward that 5% level, only a fraction above 5%. so much more healthy than we have seen preefsly.

the ten year here in the uk is 12 and the euro in europe, 1.96. yesterday we did see an impact of this risk aversion. oil sold off, brent and nymex and gold fell heavily as well. those trends are being reversed in light of the market action we just described to you. nymex up 9.9%. bremerton up to 1.03. gold has dropped managed to pull back some of those declines about a third percent higher for gold, christine. >> hey, christine. here in asia, they're watching for risk aversion where they're going to get the deal from psi dealers. slower growth coming from brazil as well. that is triging some profit taking across the region. nikkei is up 50.5 f%. literally the topix is up 50.6%

as well. in the integrated markets, also hampering a sentiment there. but the chinese were there. the 2011 profit is going to be significantly lower. that seems to be hammering out the insurers dragging the shanghai composite lower. weaker earnings from chinese companies also drag dound the hang seng. in hong kong down. weak session in south korea. australian market clearly the big focus. we had gdp data coming in a little weaker than expects, 0.4% for the last quartering of course, triggering the case for maybe more eegz from the rba. new zealand, flat. that's it for me. i'll be back tomorrow for the news with the moving markets here in asia.

>> all right. thanks for that, christine. you have a great night in asia. up next, there was a sea of red with the dow suffering the worst since november. is this a pause or the first signs of a bigger correction? we're going to get some insights straight ahead.

that 'twas outspoking ken lon ghosn. they were talk about the selloff. it was the first drop since late november, the worst percentage day for the nasdaq since december 14th and the worst day since december 8. talking more about it now is ken cain and still with us, of course, our guest host john silvia. ken, aisle start with you. do you agree with mr. longone we used to digest moves like this for lunch or do you think there's more to the story? >> the point that you said earlier that it's the first

triple digit down day in 45 trading days should give a lot of context to that. it's not really a reason for panic here. sometimes things need to slow up a little bit and take a breath. as you said earlier, they're not going with it and should take it in stutter step. >> the bulls have been out this year, but the increase and rise have been sort of slow in terms of the trading days that we have seen. so to see a big point drop like this, do you expect -- i guess my question to you is what do you expect going forward? again, are we going to go to big swimmings and big moves or are we going to the slower pace? >> 2011 is going to go down as the year of the headline. we were being whipsawed up and down every day by something. boredom, nonheadlines is a very good thing. we're going to see that as long as we don't get a wacky blow-up in the middle east or something like that.

this return to normalal if you will of tighter trading range, it's a really healthy thing because it's allowing people, especially older people and the retirees on the sidelines earning no money on their investments to tow back in and say, okay, maybe the markets are getting back to where they should be. i'm actually a fan of tighter trading. >> becky. >> there's no way that's going to be the case. you point out the issues in the middle east. remember, this is the year we have some of the biggest elections of the most powerful countries around the world. >> i think it's question of what the nature of the headlines. if the headlines are around the things that we've menta already baked into the cake like greece as you were saying earlier, the political situation in america the dewrangling, i

think we're fine. i'm more like where they're saying huh? so long as it's kind of in the realm of the things that people have been analyzing i'm not concerned. doimgt know how you fweel about this. >> we've worked through the greek issue but where is brazil now. all of a sudden we talk about brazil being weaker than expected, changing their policy. again, that's another element of surprise, not really discounted in the marketplace and it is election year. >> ken, i want to get back to your point of treading water. that would be the case that the fundamentals in the united states are strong. do you believe that given the data that we've seen that that is the case? >> yeah, think we're going to see 2% type growth. sand that is still growth, and i think that's the positive story here.

ultimately equities trade on, you know, growth and balance sheets and earnings expectations, and those seem to be mildly positive. we're crawling out of a real traumatic period. no one wants to get burned on the stove again. i think it's a positive. the bigger problem or potentially the bigger upside is there's still so much money sitting on the sideline earning nothing. people are look for an excuse to come back and play. >> okay. hold that thought. it's really good point about when we talk about where to invest. president obama wants to raise the tax rate on dividend payouts from 15 to 40% for people who earn more than $200,000 a year. it's not a 1% versus 99% issue. companies make decisions how to smenld capital. are they going to apply it to

growth or give it back from a dividend point of view. dividends account for a huge part of the income of seniors. 75% of all dish depds paid in america go to people over 65 years old according to the irs. it's not a rich person issue. i think about how many wealthy people are paying college tuitions were firsthan s for gr mortgage payments for children. it's different way of taxing savers. we're not letting them earn anything on the bank, we're now saying the place they've put the money was in dividends stocks so this way they can make a little bit of yield and we're going to take away from them rrks we going to be pushing savers out further on the risk horizon. >> quickly because we're running out of time. i want to get your thought on some of the companies that have increased their dividend recently. are you expecting to see more

companies boost up that dividend? >> i think we're totally poised for that. they're really faced with do we buy back securities or give dividends. while the tax laws are where they are, they'll increase. you may see them stitch into buying back securities which doesn't help in the way dividended help. >> fair enough. thanks so much. ken is going to stay with us. john silvia as well. meantime coming up mitt romney comes out ahead in the super tuesday voting but not desizively enough to force his rivals out of the running. we're gong to break down ahead what lies ahead with our very own john harwood right after the break.

good morning. welcome to the show. the headlines this morning in the united states it was a super and diseaecisive tuesday. mitt romney adds six to his column, but it's not enough to cement his status. >> they come out to say they will participate in the greek debt swap ahead of the key deadline today. and brazil's central bank set to cut rates by 50 basis points and may consider loosening policy further after

the economy slows down sharply in 2011. good morning. nice to have you here on "worldwide exchange." it's 5:30 a.m. on the u.s. east coast. let's check on the futures market here in the united states as we get said for trade on wall street. if we were to open now we'd see a 54% increase, the nasdaq by 13 and the s&p 500 higher than 6.3. this was a tough day for the markets yesterday, becky. more than a 200-point loss on the dow and we did see worse performers where the financials, industrials, teerls. we saw the sector holding up a bit. that is good news. we're looking higher this morning and taking some of the cues from europe it looks like. >> indeed. markets are pushing higher but, again, very similar kinds of the move. in europe, the cac lost 6.3%. the dax lost 3.4%.

we put that in the context of what's been happening so far this week but also the context of the big run-up we've seen since the beginning of the year. it's being somewhat reversed today. we're seeing fresh day highs for the dax across in germany. an extra bit of ground added back today since we've had several big financial institutions saying they will support it, both coming out since we've been on "worldwide exchange." mitt romney comes out on top on super tuesday but he fails to deliver a knockout blow to his republican rivals. romney won six states, a very close victory over rick santorum in the key battleground of ohio. santorum picked up wins in tennessee, oklahoma, and north dakota and newt gingrich won his home state of georgia as

expected and says he's staying in the race. >> we're going to take your vote, a huge vote tonight in massachusetts, and take that victory all the way to the white house. >> i hope the analysts in washington and new york who spent jup and july explaining our campaign was dead will watch this tonight and learn a little bit from this crowd and from this place. >> this was a big night tonight. lots of states. we're going to win a few, we're going to lose a few. but as it looks right now, we're going to get at least a couple of gold medals and a whole bunch of silver metals. >> we're joined by cnbc's special correspondent john harwood. last night was a special night. a lot of takeaways.

romney doing well but not enough necessarily to clinch it. what your thoughts. >> the story of the romney campaign is to do just enough to city on track for the republican nomination and not bait more. by winning both oklahoma and tennessee as well as north dakota, rick santorum has got the momentum that he needs to go fight next week in alabama and mississippi. the south is the base of the moderate republican party. so if rick santorum can make the claim i'm the candidate for strong and southern states that gives him the power to keep going. even though it's pretty much mathematically impossible for either of his rivals to overtake him for the nomination. >> what happens from here in terms of newt gingrich's campaign. he says he's not out of it, be sit time for him to bow out? >> he is out but he can continue campaigning. my response to his clip is his campaign is still there.

in modern campaigning, if you can fly yourself around and have enough money through your super pac to put advertising on the air, you can stay even if you don't have the chance to win the nominati nomination. the guy who has the most to lose from staying in is rick santorum. if newt gingrich is able to get out, rick santorum could consolidate the vote and pull off a string of victories. >> john, when i look at the ohio results, it just strikes me there's a certain segment in the ohio area that cares about the economic issues but when you get auto of the rural or suburban area, there's a real core that cares about the social issues. it strikes me that romney and santorum have got to cross and not appeal just as a social or economic candidate but combine the two. your thoughts. >> that's exactly the case.

rick santorum has tried do that. everybody knows his identity about social issues and the following he's had. he's tried to combine that with a working-class appeal. he had some success with that in michigan and ohio, just not enough to beat mitt romney. things that the modern republican parties values, but it does indicate a clear split and you can see it up and down the income scale. the more money people make, the more they live in urban centers and well to do suburbs, the better r.i.m. does. when you get into the rural areas and the less affluent, that's rick santorum's territory. >> john, quick question for you. is there any evidence from these kind of races in the past how much impact there is on how convincing the presidential

candidate wins the race to be the candidate to how he performs if the election ultimately or how he performs in maybe an incumbency as president in the future? >> well, it depending on the nature of the opposition you're running against. he's running against relatively weak opposition. we see them when they have a challenge and skpeped race. for skpanl pell the first george h.w. bush when he was challenged by pat buchanan. he had the economy to oust buchanan and was weakened in the fachlt barack obama had an extended race with hillary clinton in 2008. some thought that might weaken him. but she was a very strong democratic candidate. the fact that romney was able to beat hillary clinton and pull hiss party together was a good sipe for candy da is. if you look at our nbc/"wall street journal" party poll, you

can see what they have suffered. every political effort i know want this thing to come to a close sooner rather than later. >> i want to g it to the point you made about finances. obviously the camp is very solid in terms of finances, but they only won by a slight margin. what does that really say about the money behind the candidate? >> mitt romney is maybe flush in the super pac. his campaign has been spending a lot of money. we saw last week when he won michigan and appealed for funds in the speech. the santorum campaign said they even got about a million dollars of cash on hand. they don't have a whole lot more. >> okay. john, thank you very much for that. john harwood updating us. i want to bring you some breaking news now because we just have the results of the five-year german bund auction. the big headline here is that the yield is the lowest on

record of a german five-year auction. these were february 2017 bonds. the bid to coverage ratio was 1.78. the average was 9.79. as i mentioned, the lowest on a german five-year auction. interesting to see that we also have very low yields on the t ten-year as well, which is the benchmark we often refer to of course. we have the results of that. >> meantime still to come on the show, we're going to continue the political debate. the next guest warns that the in-fighting could end up hurting the republican party when november rolls around. more on that next.

romney has beaten rick santorum to win the republican presidential primary. ten states were up for grabs on super tuesday. mitt romney took sex, rick santorum took three, and newt gingrich took one, his home state of georgia. this is how super tuesday has panned out. only very marginally did mitt romney manage to hang onto that. at the end of super tuesday, we don't have an overwhelming move

in either direction as to who manages to really win the party's trust and also should look at how this pans out to after super tuesday because this is how the picture is your all and it's pretty stark to see romney is represented here by orange is proving the most popular to the far east and to the far west of the u.s. rick santorum in red is managing to hang on with his particularly conservative stance to that part of the country. jackie. >> thanks, becky. joining us now to talk more about super tuesday and crystal ball, democratic strategist, former candidate for congress in and also a cnbc contribute. romney did jeff nuft to sort of stay the front-runner but he

certainly didn't clinch the nomination. at the same time we still have santorum and gingrich in the race. santorum, you said if you want to be the king, you have to kill the king. he didn't do it. >> he's had a couple shots to kill the king. he had a shot in michigan. he didn't do it. he's had a shot in ohio. he didn't do it. romney did. that h's the front-runner. all he has to do is do enough. he's got 75% more votes, one tice as many states. someone has to knock him off. santorum and gingrich are in the race. that's great for them. keep it up. >> a lot of people are hoping he would emerge as the nominee to end some of the in-fighting in the republican party but some

thought it was inevitable. but then as you thought it was inevitable it turned on its face. >> yeah, it seems we're thrown another curveball. i believe it's damaging mitt romney because it's forcing him to talk about things he's not comfortable with. santorum has drug him out on social issues. he use put in the limelight more option. it's been such a focal point. if you make a comparison where mitt romney is this year versus where john mccain was in 2008, mccain had a net positive favorability rating. mitt romney has a net negative rating of 11 points. it has take an real toll on him. >> that is pretty significant when you look at that stat there. how do you think march is going to be an important month.

how do you thing it's going to shake out for romney? he keeps chugging along, doing enough? >> it's going to be interesting. mississippi, alabama, kansas, which is not going to be particularly favorable. hawaii, who knows what's going to happen there, and you have illinois, which could be romney's best state. going up. but i think both gingrich and santorum thing they can do more in these southern, rural, more culturally rural states. because they're going one state at a time rather than all in a piece, all of the block, it negates some of romney's financial candidates. they can be on the ground and have the local pass. another piece on super tuesday is the fact they didn't have to commit financial resources in virginia so was able to plan all these different states. outspent santorum something like 12-1 and was barely able to eek out these -- >> i understand krysta's bloody

primary thing. remember, the elections in october. the president has a mid-40% approval rating. i just don't buy the thee that it's going to be a race for romney. it's still going to be a dead heat in november, 50% race, and then we'll see who wins. >> yeah, it going to be a dead heat race, you're right about that. just structurally about 46% are going to be there for romney. about 46% are going to be there for the president. and then they're going to have to win over the independents burke to say there's no long-term damage done is a bit naive, given the positions that romney has had to take and the statements he's had to make where he's been pulled so far to the right. >> actually i think it would be just the opposite. krystal. >> in some states it's going to

be a problem. go ahead. >> i think throughout the season it's sharpened romney. he's much stronger. his positions have been stronger, he's been stronger on entitlements and come wupg a tax plan. i think it's going to help in the general election. >> jimmy, can i -- >> thank you. john harwood made the comment that the campaign was hard. how is he going to bring the republicans together and be successful as perhaps barack obama was? >> well, think, you know, listen. when i talk to republicans and conservatives, look at the past two weeks. we've seen the president. we've seen a brand-new book, the president wants to get rid of

all the bush tax cuts and raise taxes on everybody. i think the fear of that second obama term when he doesn't have to worry about second re-electi re-election, think that more than anything that mitt romney do is going to reunite republicans and conservativings to vote strongly in the poll and vote for whoever the republican is which is mitt romney, most likely or rick santorum. >> that's fine but i think democrats learned you can't win by attacking your opponent. you have to offer a positive vision for the future. so far mitt romney hasn't done that. he hasn't connected with the american people. he has not connected to core american values in the way that he's going to need to be able to communicate. >> i don't even know what that means. >> a positive vision going forward. >> listen. i'm not quite sure what you're talking about. >> well, what i'm talking about is the fact that despite the fact he outspent his possibilities 12-1, 4-1 against

santorum in ohio and he still can't close the deal. it's not just republicans that are unsure about the guy. i find it hard to believe that you say he's stronger -- >> learn. i think -- to answer your question, thing he is far better set up in the general election, because, listen, this is going to be about the economy. it's going do be about issues. it's not going be about contra semgs. and in those corishes, he has credited, i think, a pretty detailed economic plan, what it's taxes, cutting spending, entie entitlements. it's not going to be about the issues people want to talk. it's going be about the jobs and economy and headed toward the weakest economic recovery since the great depression. that's still going to be the core issue in september and october and the president's sitting here at about a 43%, 44%

approval rating. >> i'm not sure what poll use're looking at. >> gallup, ras muse tin. >> if you agree with it, and thing is going to be an election fought on economy, if you look at the fact that the recovery is starting to kick in. people are starting to feel better. was on ground in ohio. for first time in lodge time. used to be the president was the one having to make the argument that, you know, things would have been worse which is a very hard argument to make. now the republicans are having to make the argument up. things could have been better. so pausing to the american people things could have gone better. that's a much harder place to be and it putting them in a very dangerous place to cheering for a slow recovery, cheering for

the up employment rate to take back up. that's just not a good place to be when you want to communicate to the country. >> all good sides. thanks so much to james pethokoukis as well as krystal. turn into european. that's up. 17:40 cet. plus, on this show we're going to look ahead to the trading day on wall street as they eye adp employment data.

back. we have the adp employment rate out this morning. ken, let me start with you before we go to friday's jobs numbers. what is it going to tell us today? i don't have a crystal ball but i think we're heading in the right direction. more importantly, small business is starting to feel, all right, let's start bringing people back on, so i think the trend is going to continue. >> positive trend in the private sector will help us for friday, john? >> oh, yeah, i think ken's got it right. they're showing the survey that businesses are improving. business lending is up. i think the economy has momentum going forward. ken and i pretty much are on the same page. 2%, 2.5% growth. this is good. >> quickly, john, i want to get your view. where do we have to see

unemployment to look to see if he's successful. >> i thunk the matching number has to be 8%. going back to terrell ler discussion, is that good enough in american society. that will be the debate. >> all right. gentlemen, unfortunately we're going to have to leave it there. thanks so much for joining us here on world wi"worldwide exch" that wraps it up. i'm jackie deangelis in the united states. >> and i'm becky. thank you for watching "worldwide exchange." choose control.

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good morningful no super tuesday sweep. three other gop competitors remain in the race. plus, greece. the issue that won't duo away. the bulls are shaking their heads this morning as stocks drop their biggest in months. it's wednesday. "squawk box" starts right now. ♪ when the going gets tough the tough get going ♪ good morning, everybody. welcome to "squawk box" here