hello and welcome to today's "worldwide exchange." i'm ross westgate. >> and i'm kelly evans. these are your headlines around the world. >> with mitt romney's pick of paul ryan as his running mate, both sides are sharpening their attacks on taxes, medicare and the budget. >> half the pace of expected based on underwomening consumption, the boj provide eggs a thi of the world's base economy. >> and bank of america international's wealth management business.

welcome to today's edition of "worldwide exchange." welcome. >> welcome. rupert moisture dodd tweeted during the games, enjoy it while it lasts because the worldwide pictur wasn't that great. >> actually the article was saying let's worry about all those issues until september because the next two weeks i still want to stay in the olympic bubble. >> well, and we'll speak with our host here with us the next several hours who is pointing out maybe it's a good thing for investors to be distracted from the data. >> it's the real thing. now they can return. >> and on today's show, we'll give you a sense of what else is coming up. we're live in tokyo as japan's economic growth slows down in the second quarter.

we'll speak to one guest who says he does not see a recession risk for the country. there was a drop in earnings due to falling demand. we'll get a preview from mumbai. and we'll catch t with the ceo of the milan ex point, the theme of which is feeding the planet. and find out why one report says grenada is the real winner of the games. mitt romney and his new running mate, paul ryan, will head in different directions on the campaign trail. romney made the official announcement as ryan as his presidential pick in saturday in virginia. in an appearance on "60 minutes" they outlined their plan for america with regard to taxes and cutting costs on spending like

medicare. >> i have my budget plan that i've put out and that's the budget plan we're going to run on. at the same time, we have the record of president obama. and people think, by the way, their utility bill has gone down. if they think jobs are more plentiful, they should vote for him. >> the president has a terrible record. he can't run on that. he's going to try and run on distractions. he's going to try and divide people to try and win this election. >> well, president obama is wasting little time in launching his first attack on paul ryan, whose budget plan will likely be portrayed by democrats as a threat to the elderly. the president called ryan the idea logical leader. >> my opponents and congressman ryan and their allies in congress, they all believe that if we just get rid of more

regulations on big corporations and we give more tax breaks to the wealthiest americans, it will lead to jobs and prosperity for everybody else. that's what they're proposing. that's where they'll take us if they win. >> judy is now on set for the next hour. so is paul donovan from ubs investment bank. paul, welcome. >> thank you. >> what do you think about the other paul, paul ryan? >> i think it's coasting the election very much in idealogical terms. clearly, romney needed to have running mates coming from the midwest. the fact that you've got somebody from wisconsin is not a huge surprise. these are the key battleground states that he's got to win. so the issue here is i think we are now creating a really deep divide and the question of which side is going to be able to rally its own supporters is going to determine the outcome.

>> does romney know which job ryan is taking? does he know it was for vice president not -- >> well, barack obama did the same thing introducing joe biden four years ago. we have a republican strategist coming up who is one of the first people on the ground in alaska after sarah palin was picked as john mccain's vice presidential candidate. >> and we'll get to the economy, as well. meanwhile, the data claims one of the bank's top ten shareholders supports bob dimon's post wleefs the next ceo should be an external candidate. >> standard charrered has reportedly discussed an amount with regulators as the bank continues to negotiate through wednesday. >> and swiss bank julius baer is

snapping up the swiss franc. as far as investor reaction, shares are trading lower this morning. carolyn has been speaking to julius baer's ceo and joins us now. carolyn, first of all, why the negative reaction? >> well, a couple things, ross, really. first of all, to finance the deal, julius baer is launching a rights issue and that causes some conclusion. secondly, not all, but some analysts say the price tag is quite high, especially if you account for the implementation risks and the restructuring costs at around $400 million swiss franc. having said that, though, 850 million swiss franc, that price tag is considerably lower than the 1.5 billion to the $2 billion that the market has been speculating about in the

announcement to this deal. what they're relying on is that this deal makes sense. take a listen. >> when we look at the overall transaction, that's a business time that will give us a very good quantum leap. it would bring us to our target of adding approximately 50% of our current access and aum coming from growth markets. so it was a good opportunity at an attractive valuation for high quality private banking franchise. >> and with that, in fact, it increases. julius baer's voters to the emerging market by 50% cores off a lower exposure to the swiss market. but, again, analysts don't like it for reasons such as the price. back over to you.

>> okay. carolin, thanks very much, indeed, for that. here we are just over an hour and 8 minutes into the trading day in europe. down side advances outclimb the gainers. the ftse has not had a bad run, up nearly 4% in the last couple of weeks. today, it's down a third of a percent. in the last five weeks, the xetra dax and the cac 40 have been down 8%. ebay, down around .6%. keep an eye on that vowel because in the next couple of weeks, volume is going to be very light, indeed. ten-year, just under the 6% level. slightly higher than where we were. on the currency market, dollar/yen, 78.20 is where we stand. euro/dollar, 1.2277. you get the sense in the next

few weeks of you a trading are going to be very thin, indeed. maybe we get good news during thin trading. >> asian markets are under pressure following that weak future japan gdp data. we didn't get -- from last week's data showing the growth hasn't hit bottom yet. the shanghai composite had losses down 1.5%. the brokerage sector tumbled nearly 8el% reportedly on worries over securities losses in overseas investments which was ter denied by a civic official. the property sector is lower by more than 2%. many analysts believe tightening measures are likely to continue.

the hang seng is smaller by 0.3%. over in japan, investors shrugged off that down beat data on hopes from central banks. the index finished lower marginally. insurers and retailers are providing support there. the kospi snapped a winning streak and the aussie market outperformed all the rest. blue scope surged 35% after announcing a partnership to target southeast asia and a north american market. trading down by .2%. right now, back over to you. >> good to see you today. the investment community is weighing in on the potential market impact of mitt romney's

vice presidential pick. nomura analysts said the vote puts ryan into the fiscal center of the election and will likely bring debate forward. they noted the greater focus on fiscal consolidation could be a headwind for risky assets in the coming months. secondly, unicredit said paul ryan will force a greater debate on paul ryan's situation but that would be unequivocally positive. it could affect romney's chances of becoming president. we want to know what you think. send us your thoughts. e-mail us at worldwide@cnbc.com. tweet us, as well. ross. [ male announcer ] this is the at&t network.

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welcome back to the program. the world's third biggest economy grew from 0.3% from the priority quarter. global demand for japan exports is still weak and domestic

consumption is waning, too. the weak gdp figure now piles more pressure on the boj to bring in more stimulus. junko, chief of securities is joining us now as well as paul done know convenient from u.s. investment bank. how concerned are you about the softer than expected figures? >> actually, the hit line number of the gdp was weaker than expected. but i think the first quarter gdp was revised up to quite big numbers. so i think that if you combine gdp numbers for the first quarter and second quarter, i think that business activity is quite healthy. >> does this change at all your view on how the economy does

over the next 6 to 12 months? >> no, actually, no. we are going to see public works as well as in a disaster-affected area. it's likely to take place from the third quarter of this year. so i think that that will be a positive factors to boost the gdp number for the coming few quarters. >> paul done me van is with it, as well. do you still agree with that? do you focus in on the household consumption being weaker? >> i think one of the concerns we've got -- there's obviously the external story, which we know is bad. but on the domestic side, as we see in the intensity, the intention to intie fuel efficient cars fade from the picture, the consumption has trailed off quickly in that cycle. and i think this has to be not perhaps a recession concern, but along the structure concern,

japanese house holds aren't spending at the moment. >> what about deflation? we saw in the deflator signs of that emerging in the first quarter. how much of a concern is that? >> it was the most -- development, actually, the negative result we saw on the today's data. actually, we had expected that the gdp figures to increase on quarter on quarter basis. but the results are still going on. so i think that that condition is likely to put the pressure on the boj to add easing monetary policy for the time being. what more can they do? what more do you expect them to do? >> the mainstream of the boj's policy is to increase the asset

purchase program is 73 trillion yen at this moment. so the things that boj will be able to do from now on is to increase the size of the person's problem, mainly in supplying the jgb. >> is that going to have any impact at all, paul? >> i'm fairly skeptical at this said about what monetary policy can actually to for expectations. if the bank of japan was to come out and actually have an inflation target, we have an inflation target or goal or objective or whatever they want to call and it because we are below that target, we are going to take policy measures. that might stop them from expectations. but what they're doing at the moment is every once in a while making a reference to the inflation target but not setting policy in that context. and so the credit can nlt of policy is being undermined, in my view.

>> and fiscal policy, there seems to be little faith or perhaps little ability to act on that front. >> a lot of the traditional policy isn't technically minded. there isn't a lot of innovative thinking about how that's going to be applied. this is one of the key problems of japan. well, the private sector has moved on. there's a new generation of leadership in the private sector. the public fear is still very much stuck in the old mind-set of the 1980s in my view, that's what needs to change. >> all right. paul donovan and juko nichiota, thanks for joining us. paul, of course, will stay with us. the olympics is over. there were some final events, though, on sunday before the closing bell. and the super boxing heavyweight final great britain's anthony joshua took a point decision. the judging was scored by 18-18, which meant they went to a count

back and joshua got that victory. >> there was also the men's marathon and spain took on the u.s. in the men's basketball final. spain were worth opponents and it was a close game into the fourth quarter. but when lebron james and kevin durant came through for the u.s. helping to win the game by 107-100. >> not quite as good as the barcelona game. >> but not that shabby. another gold medal for the basketball team there. and the final medals table saw the u.s. finish on top with 46 goals and a total hold of 104 medals. and it wasn't too bad for great britain, either. third in terms of the gold medal count. although i think russia edged you out in terms of the total. >> yeah. you get many more points for

gold. so the olympics has come to a close with a great opening and closing ceremony last night. concerns about transport, they never materialized. instead, the games are likely to be remembered for the enthusiasm of the organizes volunteers and spectators. i've been talking to organizers today. i hope their legacy received the same strong support. london 2012 signed off with a big party, demonstrating the same enthusiasm that greaters had at the opening. now one word is likely to dominate, "legacy." the london legacy development corporation will soon begin the 300 million pound construction project to transform the 560 acre site into an area that will eventually come prize five new neighborhoods, 800 homes, three schools and nine nurseries. the athlete's village will be the first to reopen in 2013, renaming each village over 75%

of the new homes will be for rent. >> it's doubled in size over the last 15 years. we are looking at over 1,000 units in a small area. it's the opportunity to create a management system on-site, which is not the case but being replicated in other areas. >> kail winpy is targeting family houses. about 75% of the homes will be three bed and above. to be able to deliver that, that's a huge opportunity and great rare. great infrastructure, family homes in a london theme is pretty amazing. >> three out of the six of the venue sites has been confirmed. it's always hoped tinter

national broadcast center could become a new technology and media hub. plans are now in advanced stages. >> we started this about 2 1/2 years ago, certainly realizing it's a fantastic building which has huge amounts of fiber going to it which makes it the most so fistic building in europe. and looking at the legacy required for the games, the employment availability of wealth and economics, actually, we can do something with this. >> the one site whose future is still unclear is the olympic stadium itself. a judicial review means a new bidding process has to be started. but it isn't just structure that legacy will be judged on. when london originally won the bid, it did so partly on the back of a promise to inspire a generation of young people in the sport and that may be the hardest challenge of all. paul, meanwhile, we're wondering

what the economic impact is going to be of the olympics. is it too early to say? the brc came out and said that we saw some signs of boosting food and drink sales in the last week of july. the olympics, of course, has been the first week of august. do you have any thoughts? >> the economic impact of the olympics is not around the two weeks of the olympic yad or the two weeks of the pair olympics. the economic impact is somewhat of a branding exercise. so if you look at the successful almost games, you've got sydney, you've got barcelona, they rebrand australia, they change the way the world views these areas. i think that's something that will probably be viewed successfully to have taken place at the london olympics. the uk has branded itself as enthusiastic. now, if you contrast that with beijing, which was spectacular, absolutely, but fairly

regimented, fairly -- in terms of how it was prevented, if you think innovation, you don't tend to think about the beijing olympics. if you think innovation, you're probably going to think about london. if you're thinking about putting up a new business, london or the uk makes it to your short list. >> turning that broadcast center into a tech heavy building, probably not a bad idea because that's what the games -- >> that's always been part of the process. there's been talks about university of london going there, as well. >> the idea is that you can get -- you know, you have your business there and you can walk down a corridor and say, i need to do this and it's all on the same site. i don't know whether you can create interesting silicone valley happens, right? can you -- we're going to try. >> great opportunities are there. now it's a matter for people to use them.

meanwhile, germany's economic manager says he's lost -- reports of a copy of an article set to appear in germany's focus magazine is saying that the greek government has hardly responded to a series of support measures with london businesses. paul, right now, draghi spoke and we now wait until september. >> let's hope we can wait until september. it would be nice to have a couple more weeks off without having to worry about europe, frankly. but the problem is, of course, we are going to get lots and lots of politics at all levels of involvement, particularly the more junior politicians and we're hoping to head off. not much else is going on in the world, but they're going to try to get into the spotlight of the media. that has to be quite concerning. we were hearing over the weekend, politicians suggesting that we can management a grate greek effort. you can't manage a greek effort.

if greece goes, portugal goes, ireland goes within weeks. it would be a disaster. i'm a little concerned that over the next few weeks we may get more of these comments add to go that volatility. >> we'll leave it there for the time being. still to come on the show, who better to ask about india's growth potential than one of its billionaire ceos? we'll speak to the ceo of india's asset group, up next. on t;

. with mitt romney's pick of his running mate of paul ryan, it's now two versus two. >> japan grows at only half the pace expected thanks to underwomening consumption. they're providing talk of more boj action providing in the world's biggest economy. boj in europe after the swiss financial of the 860 million swiss francs for bank of america's international wealth management business.

okay. if you've just joined us, hello wherever you are. we're down marginally in europe. the ftse has been up during the majority of the course of the olympic. the ftse down 0.35%. xetra dax down 0.13%. we are looking forward to the paralympics coming up. >> i heard they're almost sold out. italy is 5.89%. the bund is below the levels we saw before those draghi comments. ten-year bund in germany, that's 1.38 this morning. gilt 1.53%. the u.s. ten-year has continued its run. >> yeah. as far as currency markets are concerned, euro/dollar, just

below the 11.23 level. euro/dollar, 11.2288. auss aussie/dollar has come back to 1.540. india's tata steel is expected to report a quarterly drop in profits on lower demand in europe. tata sales are due to report about 12:30 central european time, that's in just about two hours time. after that, india will release its earnings. still higher wages may put a dent in sales figures. joining us now with more from mumbai is the ceo of ways to wealth. what do you expect these earnings to tell us about the state of india's economy?

>> the economy? >> let's talk about what tata steel should tell us. >> in fact, they're facing downgrades and a slowdown. and the financialists have been showing its intent to, in fact, start the economy and include the fiscal situation. but i guess the question is how you'll be able to achieve this. that's a big question mark. but i think really the liquidity is, in fact, pushing the markets up. but the question is can we stay at these levels? >> is it largely the steel price? what's the reason it's expected to be down so significantly? >> for tata steel, i think more

the indian operations, the european operations which will put pressure on the company. and, clearly, i think going ahead of expectations after the -- you can fasten the seat belts and hear more. so i think that is what will keep the pressure on. at the same time, we don't see barometer prices coming down for the steel sector. there will be pressure going ahead. and unlike last year, clearly there was that coverage supported, tata steel. and this year, even without taking that other income, we'll see a major drop in profits. the way i see it is this can, in fact, correct further from where it is right now. we still have a price target of closer to about 55/70 for the stock. >> and you still see down side

for tata sales. where are investors concentrating their buys? >> your question is not clear. can you be a bit louder? >> yes. if you don't want to buy tata steel, what do you like? >> in fact, the way the markets are right now, we are not suggesting people to buy anything. i mean, not now because, like i said, it's like the liquidity which is driving the markets and you don't know how long this money is. it is no policy action at the ground level and policy action at the ground level seems difficult because this government has been able to raise the prices by a rupee and a half or two. so if the government is not able to take any action, at least in the next couple of weeks, i don't see the economy really divided from here. that means that the hot money which has come in in the last

couple of months could flow out. so it doesn't make sense investing in the markets at this point in time. i think it's better to wait and watch. so until you see markets at high levels from here, because of liquidity flows. >> quickly on cole india, we know their profits are expected to look better. coal price res declining, so do you expect them to match this performance going forward? >> yeah, in fact, we see a slowdown happening because, like i said, because of the political scenario and the fragmented situation of the politics, it would be very difficult for this movement to take action. looking at that, the slowdown this year will continue and we'll see further downgrades. it's expected that the -- will grow at about 5.755.

i will not be surprised if you see further downgrades from them. >> ceo of ways to wealth, thanks for your thoughts on that this morning. we will be staying with india. we're kicking off a special week-long series on the prospects of the country's growth and investments. lisa, ceo of essra group, chairman of essar energy starts off by telling us whether he sees signs that policymakers are prepared to turn things around. have a listen. >> i think the first sign is recognition of within the government and within the key policymakers of the country that, you know, things have slowed down and we need to rebuild some of the confidence which india had in abund dance

maybe two years ago which we seem to have lost. that's really because of some of the policy decisions have have been announced, though have not respect come into force. >> so what are you hoping for in terms of policy with the energy sector? >> clearly, the story on india's shortage is india does have a very large power deficit. i think everybody is aware of that. close to 40% of indian people don't have access to power. we still have a huge bridge to climb. but on the policy front, there's been a lot of positive movement, especially around relieving the coal. india is largely coal-based power. i would say 70% of india's power is generated based on coal, which is produced domestically. and the policy which took place delayed most of the approval required for that coal to be

made available and that is making a lot of positive movement in that aspect. so it means approved for many mines to be reopened. it means additional coal which would be supplied by coal india, which is the main -- of the company which mines coal and it also means a lot of the regulatory clear up for the generators to market their power in an open and transparent manner. >> so they're moving in that area. >> and the private sector and the public sector together embarked on 80,000 megawatts on new power plants. and i would say that a lot of those plants have already been completed in the last year and the ones which haven't, we see clear signs that in the nmt next two years, they are in the pipeline and they will get

comple completed. >> so are you starting to see evidence of a clear inflexion point for investors? and we are looking at a sign that, yes, this is a good time to get back into india? are you starting to see that? >> i think we are making the right noises, but i think the investors, especially given the global environment, i think they want to see more action on the ground. they want to see things actually getting delivered. and they want to see, you know, some of these ideas which we were talking about actually coming into fruition and so i believe it's going to take at least until the end of this year, you know, until we actually are able to deliver on some of these and hopefully then and hopefully by then the global environment will also help because it's not -- you know, we're getting affected by the fact that international investors are very cautious. >> so what's your own view of india? as we heard there, so many of

india's policy are challenging. >> in theory, there's always something to be positive about and then you visit. it takes three hours to get to the airport and you carry out the infrastructure and all of a sudden it becomes very pressing. i think we're still at the stage where talented indians look overseas for career. and that's quite telling of an issue in terms of development. moving on to germany's central bank, which will start managing part of its foreign currency reserves in asian financial markets as early as

september. nozomu kitadai has this story from tokyo. kitadai-san. >> thank you. the bundes bank is in the final stages of talks with japanese authorities and turning its tokyo office into a foreign exchange trading hub. it will manage some of its forex reserves through new facility in response to asia's growing political and economic influence. initially, it's expected to use about 190 billion euros worth of their forest reserves to trade in yen and australian dollars. but it's also considering expand to go chinese yuan, the korean yuan and other asian currencies in the future. the bundes bank's move could affect foreign exchange rates since few major countries right now are managing significant portions of their forest reserves in asia. back to you, kelly. >> kitadai-san, thanks very much. speaking of wars pan, we have a report on the wires saying now that the japanese government will compile an extra

budget fort fiscal year 2012 after those figures, this according to kyodo news agency. paul is still with us. all, given the weakness in japan and the new development with the bundes bank essentially working with those reserves, wa do you make of it? >> this has been one of the problems of the number of central banks around the world are wrestling with. that, you know, we have a situation where you've got the dollar. that's fine. and that's the dominant currency. and then you have the euro. and now they're saying, we're not so keen on the euro after all. now, yes, sure, you can buy sterling, the largest reserve currency, that's what they are doing. but after that, it's up pretty quickly. and i think a number of central banks around the world are looking at asia a lot more seriously. in terms of our conference, it was very interesting. a lot of the central banks were suppressing an interest in asian government bonds in local currency because it's part of the world that they know and

understand. if you're an asian central bank, why not invest in some of your neighboring bull markets? you don't have to were about minor politicians sounding off about greece or about what the spanish government is going to do. you know what's going on in your own backyard. that's shifting the focus, i think, of central bank reserves. the dollar remains dominant, clearly. but i think some of the nondollar portions perhaps spread out. >> one of the things that the markets are big enough, liquid enough, it sounds like at some point they will be, but they seem dwight dwarfed by the size and scale of the u.s. dollar. >> this, of course, is the problem, these are not enough to be proper foreign exchange reserve markets. but wa we're talking about here, really, is diversifying an investment portfolio. it's probably going to stay in dollars and the push the euro and sterling, as well. so there is another chunk. foreign exchange reserves are so large now that there is a demand

for an investment return. politicians are saying, actually, we want a yield on this stuff. you're not going to get that with the ten-year treasury trading at 1.6%. what you do, you look at some different markets to go into. >> let's take a look at what's on the agenda in asia tomorrow. india posts wti data while in japan the boj will release minutes of its latest policy meetings. on the earnings front, singapore's giant singtel will turn in its first quarter results. still to kot om program, fears of a renewed food currently crisis. we'll hear from feed the planet coming up next. [ male announcer ] this is the at&t network.

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welcome back to the program this morning. president obama will use his trip to iowa today to announce measures to help farmers suffering from the severe drought in the midwest. white house officials say the usda will buy up to $170 million worth of pork, chicken, lamb and cat fish left lane go towards programs like food banks. the president will push congress

to pass the farm bill. the g-20, meantime, will hold emergency discussions in a response to global food prices. officials could meet within the next month as drought raf aems large areas of the u.s. last week, the u.s. government reported farmers in the country were abandoning cornfields covering an area larger than luxembourg and -- combined. >> that is a big number. all of this, of course, as milan is gearing up for the expo 2013 which is seen as feeding the planet. it will focus on food safety as well as quality. louisa caught up with someone who explains how organizers are hoping to make this expo one that stands out.

>> for example, in the last position in sangai, there was a group acourting to all the geographics together, all the south pacific together and now the community doesn't work. so we invented this new criteria to put together all the canvas for which coffees or can heco or rice means something good together. so we believe that you wanted to understand something about coffee, so you enter into this space. second, we give a service to the country because we promote the economy, the history data and the future.

third, possibly we can involve the corporate and in order to sploss. >> what do you think the impact of the higher global food prices will have on the expo? i mean, is there going to be a lot of focus on that and a lot of focus on what to do to try to stem the food inflation? >> yes. i mean, we are young now in london to grow more. we cannot make it in comparison with the olympic dreams. the media rights. but we offered the opportunity to work next month the date, six months place where the debate can be done. so it is not easy now to imagine that the main issues on which the debate will be done in 2015, then the banks on the -- now we

are making central the situation on the present situation, why the sugar price increased in the last 24 minutes. so we are preparing questions. we are wondering about a lot of issues. and preparing the land. >> you bring up the olympics. it's very hard to compare anything to the olympics due to the sheer size and scale of the olympics. but when you look at the planning for the olympics and you look at the planning for your own event, what do you take away from how the games have gone here in london? >> the fiscal situation is that we have to imagine a different visitor because how far the olympics are passionate for. and basically, come to london,

stay four days, five days in lond london, see the olympic games and come back. and now the situation will be completely different. we are looking at the interaction with the other people, with the nation. that is key. and second, normally, the visitor in the restless position is standing one base. so, again, we actually imagine that the chinese, we decide to take a -- to milan and then to visit italy. so we are quickly in italy in order to receive people from everywhere in the world for six months. that is a crucial point and it plays the diversity. so we -- the real point is that

we have to prepare the -- and we have to prepare italy to receive this. >> good luck with it. thank you very much. gilesspie sala, ceo of 2016. every week we look at how the financial crisis is affecting global trade and the impact of how you do business around the world. it airs every monday at 10:00 central european time. for more, go to tradelink.cnbc.com. and you're writing a book at the moment on food, food security as a resource. what are you focusing in on most on that and what's the most relevant part to investors? >> what we're looking at is the food chain right from the start from the farm through to the end of the process. we're looking at the economic and the environmental impact around that and the challenge that we got. of course, the key issue here is

when we're sitting here and discussing food, there is no rising food problem. we have a rising commodity food problem. but that's a tiny fraction of what goes into the final food price. that's a key part of where the focus needs to be. feeding the world, we can actually manage. doing that affordably and in an efficient manner, that's the real challenge. politically, we will have kept to ourselves. they're not releasing food in that great disruption and you end up with all sorts of problems in the world. >> eastern europe, russia and ukraine, there's big farms. they're not the yields on there. brazil would be an awful lot higher. >> that's the key debate. there is, of course, a consequence from that, that the yields could be higher lieu the use of more fertilizer, through

changing the rop crop patterns, so on and so forth. if you're going to do that, then you need more information to create fertilizer. then you've got a huge debate about how do we back resource toes be more efficient. one of the interesting things is here in the uk, people are becoming more efficient not in terms of producing food, but in terms of consuming it. about 40% of food was thrown away, uneaten in 2007. interesting alcohol was thrown away unconsumed. but more than 40% of food is thrown away unconsumed. now there are reports of reduced food waste coming through. you're seeing people shop more frequently. >> high food prices can almost be a good thing if nothing else because it forces behavioral changes. >> food is a high frequency purchase and is very, very sensitive to the price. and if we have we have to economyize, food is one of the things you economyize on first

because it's something you buy every day or every other day. you remember the price of food. >> fresh foods, you buy more .make sure you consume it. >> or compost it. you see more ander month people doing that to try .not waste pit paul, great to have you on today. >> thank you very much. >> deputy head on economics at ubs investment. >> still to come on the show, mitt romney taps budget guru paul ryan as his number two in the race for the white house. will the new ticket be the game changer republicans are hoping for? that discussion, coming up.

welcome back to "worldwide exchange." >> these are your headlines from around the world. >> with mitt romney's pick of paul ryan as his running mate, it's now two versus two in the presidential election. both sides sharpening their attacks on issues like medicare and the budget. japan grows at half expected cop assumption. more japan action to revive the world's third biggest economy. >> and trade is lower in zurich after the swiss financial offers 860 million swiss francs for bo bofa's international business.

>> we have greece, italy unadjusted. the annual decline minus 6.2% and in key one, it was down 6.5%. i'm not sure what we were expecting. >> we were expecting a decline, ross, in the range of 7%. so those figures are slightly better than expected, but i hesitate to say that until we've looked through the full release. >> it's not a great number, whichever way you look at it. euro/dollar is slightly firmer, so you might be right on it being better than the consensus numbers. yeah. we'll see. >> we'll dig through that report, of course, and bring you more in just a second. turning now, though, to u.s. politics, the story of the morning, mitt romney and his new running mate, paul ryan, will

head in separate directions today on the campaign trail. romney crisscrossing the battle ground state of iowa while romney heads to florida. in a joint appearance on "60 minutes." they outlined their vision of america with cutting entitlement programs like medicare and cutting spending. >> i have my budget plan as i have put out. that's the budget plan we're going to run on. at the same time, we have the budget of president obama. if people think jobs are more plentiful, they should vote for him. >> the president has a terrible record. he didn't moderate his positions throughout his term. the he's going to try and run on distractions. he's going to try and divide people to try and win this election. >> president obama, mean wile, wasting little time in launching his first attack on paul ryan

whose budget plan will likely be portrayed as a threat to the elderly and poor. >> my opponents and congressman ryan and their allies in congress, they all believe that if we just get rid of more regulations on big corporations and we give more tax breaks to the wealthiest americans, it will lead to jobs and prosperity for everybody else. that's what they're proposing. that's where they'll take us if they win. >> meanwhile, congressman ryan has been a frequent guest over the years on cnbc in his capacity as chairman of the house committee. he was questioned several times in the last few months about whether he might become romney's running mate. >> if it's not you, you don't have to say the name of the person, but -- >> there are plenty of great

people who he could pick. >> the usual suspects? >> there's a lot of good people. >> all right. we know who you're talking about. it's you. is it do no harm, is that the the most important thing or do you pick someone to try and win a state? >> i don't know. >> have they started vetting you? what have you got in your closet, anything? can you tell us now and get it out there. >> i'm fine. i'm a good person. >> you're good. all right. very good. >> would you accept a vp nomination if -- >> i'm not going to get into any of that. it doesn't do the romney campaign any help to speculate on any of those things, so i'm going to take a pass on that one. >> so you would accept if you got the nod? >> i'm not even commenting, maria. >> joining us now for more, sara pagen, former white house

contributor and cnbc contributor. what does paul ryan bring to mitt romney's campaign and do you think he helps room know's odds of ousting president obama in the fall? >> kelly, i think he brings a couple of things. first, in the coming weeks, you'll see incredible excitement and we have seen over the last 48 hours crowds swelling, donations pouring into the romney campaign. there is a lot of excitement about his candidacy. i think, though, more importantly, what he brings to the ticket is a focus on big issues. and the country is facing -- the united states is facing incredible challenges. and to date, this campaign has largely been about silly things and petty attacks. now we're going to have a debate about how to fix the economy, how to stop entitlement spending that is running away, high deficits. and so those are the issues i think that paul ryan brings is how to fix this economy, how to

fix this debt. >> it's interesting because presumably, both conservatives and liberals might be pleased with this choice. as you say, paul ryan brings some clarity, he brings strong positions which they back. but they're also now clear positions that the democrats can attack. that's right. i think, though, for mitt romney who embraced. of paul ryan's vision, he was going to get attacked for that, anyway. and so by adding paul to the ticket, the key for the romney campaign is now to own it. to go out there every day and to forcefully argue for a different pass for america. and if they do that, and they are able to articulate a compelling vision for the country, they can sustain those attacks. i think democrats, though, when you listen to them talk about rieb, there is a tinge of

uncertainty. because the president has really wanted this debate to be about mid romney's tax returns and mitt romney's tenure at bain capital. now he's going to have to to have a debate about his idea for the next four years .to date, the president hasn't laid out a single new plan. >> do you think we're now going to have a proper debate in this election about entitlement spending? rather than, as you say, about who is more -- a rather negative campaign. does this mean now we get to a debate that's about very important issues? how divisive does it get on those issues? >> well, i think we can expect this to be a really tough campaign. and i think it will be quite divisive. but do i think that if the romney campaign is successful in articulating their vision for informing entitlement, reducing the deficit and the debt and for

getting people back to work, if they're successful in doing that and they go out is every day and wage that fight and don't give any grounds to democrats, they can sustain it. but you're right, ross, it's a pretty risky, you know -- paul ryan is a pretty risky pick because if they're unsuccessful in winning the rhetorical war, they will have a hard time winning states like florida, iowa, ohio, places with old populations. >> i was going to say, florida, which is a must-win seat for romney, becomes an awful lot harder, doesn't it, with this appointme appointment? >> yeah. it's a state that the campaign is going to have to spend more time now because paul ryan is on the ticket. it's a state that they're going to have to do more work in convincing senior citizens that their plan is the right plan for actually saving these entitlement programs, for

ensuring that people at retirement or near retirement are going to be able to keep the benefits they were promised. however, that these changes must occur for future generations if the program is to be sustainable over the long-term. they have a higher threshold now to ensure that people understand that. so they're going to have to spend more time there. >> sara, taxes are another hot button issue. some analysis looking at what paul ryan's proposals would mean for mitt romney, they could be paying less than a 1% ekive tax rate. this is certain to become part of the department given that ryan would do away with a lot of the capital gains taxes and that kind of thing. so if mitt romney does, as you say, have to fully embrace paul ryan's issues, how much of a problem could that be for him? >> well, i think there is a risk of that being an issue for romney, but that has been an issue. i think voters understand he's a very wealthy, successful person,

and that he is somebody who is going to have to focus on his plans on fixing the economy and creating more jobs in the united states. that said, i think paul ryan, who comes from a pretty blue collar background, was a waiter at one point in his live, a physical fitness trainer, adds depth to the ticket and rounds it out. but at the end of the day, this campaign will be about mitt room know's plan, not paul ryan's plan. and even though governor romney has embraced much of congressman ryan's plan, he's going to have to focus on the things he's laid out, his xhblg plan for getting people back to work. >> all right. sara fagan, partner at dvc this morning, thanks very much for joining us. we'll have more on that romney/paul ryan debate coming up in the program. >> it's unusual slated, there are no sovereign debt auctions, there are some t-bill auctions. by the way, that's the fist time

this year that we haven't had a week with major bond issues. but on the t-bills, italy sold $8 billion 12-month t bills. the average year, 2.767%, slightly higher than 2.697% on july 12th. the ratio is slightly higher, as well. actually, not a bad number. the yield slightly higher. but there was more demand. let's review that. if we have more demand, why didn't it all good down? >> not seeing a huge reaction to futures in that auction. as we gear up for the trading week, we are seeing red across the board. the dow jones industrial average is hilower by 6 points now. s&p 500 barely in the red though morning. similar move to markets in the last couple of weeks have nevertheless finished on a positive note, although very gradually.

take a look at the move here in europe as we start the handoff. the ftse 100 is lower by 0.04%. the xetra tax, higher by 0.35%. the cac 40, 0.04% higher and the ibex, down just .03% this morning. we'll take a look at the credits markets, as well. >> i was thinking we were going to break, but it's a long way around. >> it's a good workout. >> it's a good workout without going under the cabinet. let's show the bond markets right now. ten-year behind southbound 1.14% is where we stabbed. 6.87% for spain. 1.642% is where we stand on the ten-year u.s. yields. we had that weaker than expected

gdp number out of japan. dollar/yen unchanged at 7820. and euro/dollar just hit the session high up at 1.2312 is where we currently stand. 1.2444 was the two-month high that we hit last week. that's where we stand right now. on the currency markets, what's everybody talking about online, in e-mail and twitter? >> guess what is not in the currency markets. it's all about politics. the investment community already weighing in on a potential market impact of mitt romney's vice presidential pick. nomura analysts says this pick puts physical policy in the forefront this next election. meanwhile, unicredit over the weekend saying, yes, it will force greater debate on america's unsustainable debt position, but that's an unequivocun e unequivocal positive. what are your thoughts? dan tweets in to say paul ryan?

great. but the national debt will continue to grow and even double by 2040. too little too late. we are greece. do you agree or disagree? e-mail us, @worldwide.cnbc.com. tweet us @cnbcwex. meanwhile, the u.s. is at the head of the olympics medal tables, but find out why some say grenada is the real winner. ♪ ♪ ♪ [ male announcer ] at&t. the nation's largest 4g network.

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the usa had their best olympic

games since 1984. thanks to gold by the likes of chris hoy, farah and jessica ennis. its real monetary value is around 700 euros. if you melted it all down, tease what you would get. today's rising gold medal prices are twice as much as the ones that hung around ath loet's necks in 2004. but the real question is, what is the gold worth in more than the nominal value? nigel, thanks for joining us. we've seen some great emotional scenes and great record breaking performances, as well. let's that you talk about saturday, the last night of athleti athletics. farah, doing a double. a well known british athlete. now the question is, he's got two gold medals. how does that transform him

internationally? is he going to be a name recognizable now to americans, particular a as usain bolt is doing his own sign? >> i think farah has done it in the right events, the 5,000 and 10,000 meters are undoubtedly two of the biggest global events. mo farah will definitely be an athlete known around the world. >> what can he expect to earn from winning those two gold medals? >> i think he can be realizing between 3 million and 4 million a year and off track in terms of his sponsorship earnings. such is the power of sports and the olympics. that's the sort of level he's at now. >> what about gabby douglas? she took gold for the olympics. i saw one figure saying she could expect to earned $1

million and $3 million a year. do you think it could be higher than that? >> yeah, it could be. americans perhaps have their greatest gains in certain sports. but in certain kraers, i think we do something very special and you stand out -- >> who is going to earn the most coming out of these games, do you think? >> that's obvious. usain bolt is by far and with a away head above everybody else. his earnings potentially around -- >> what range are we talking? >> 15 million pounds a year. wow. >> it's very clear now, he's done what he's set out to do. if he doesn't -- and whether he has the ability to keep training, he says i don't like training, right? if he now quit athletics, how does he keep his earning power going over the next couple of years? >> the secret is not to announce your retirement. whether you plan to go on to the

next olympics or not, you keep the mystery alive. there will be lots of speculation and everyone will keep going for another four years. but his secret is he's done it for two olympics and what would be lacking i think at this olympics is the big american sprint stars, you know, the michael johnson, the carl lewis types who won over two olympics and really established themselves as top names. usain bolt has taken that high ground and is going to do very well. felix, can she move into the -- >> she could threaten and get into that area. but, again, you have to keep it going and keep the hopes alive for the next olympics, as well. >> 15 million pounds, not too shabby. thank you very much for joining us this morning from brand report. still to come on the program as ross works on his moves, julius baer shareholders -- >> we need to come up with something.

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welcome back to the program. will happen let's check back in

on u.s. futures. this morning, we are red arrows across the board. now we're seeing markets begin to edge higher. the dow jones is scheduled to open higher by one point. little movement in the s&p and nasdaq, as well. >> this morning london has been awful apparently so far. what are you supposed to do with your investments? this is some experts views already on cnbc. >> it's quite right at the moment. it fell out of favor this year. the market got quite a short in our view and the precious metals were most positive. >> there are some trading opportunities. the one that is most obvious to us is the volatility.

>> trade right now, really, that is interesting. standard chartered has reportedly discussed a settlement amount with u.s. regulators. a full settlement would potentially stop the uk bank from losing its banking license in new york. shares there up by almost 1.5% on the news. swiss bank's julius baer has been trying to snap up the nonmanagement wealth business of bank of america merrill lynch. it's paying 850 million swiss francs. we'll see if management boosted by up to 40%. u.s. we caught up with c.s. julius who explained the

rationale. >> when we look at the oral transaction, that will give us a very good quantum leap in the markets that we've been targeting. that's part of our 2015 target by adding small 50% of our client and um coming from growth markets. it was a good opportunity, an attractive valuation for high quality private banking franchise. >> all right. we'll take a short break. still to come ones "worldwide exchange," we'll work out where our new monitor should be. we'll take a look at market cycles and a patents expert. >> plus, we'll continue with the paul ryan discussion and look at who was you first on the ground when sarah palin was chosen as vp in 2008.

welcome to "worldwide exchange." if you're just tuning in, i'm kelly evans. >> i'm ross westgate. these are your headlines from around the world. >> with mitt room know's pick of paul ryan as his running mate, both sides sharpening their attacks on issues like taxes, medicare and the budget. >> meanwhile, japan grows at half the pace expected. mystery is reviving talk of bank of japan's action. >> and jealous bear trades lower after the swiss bank offers

money for bofa's wealth management business. and the economy is shrinking in the second quarter as wealth is continuing to cut into growth. wick look at u.s. futures and a good morning to our u.s. viewers who may be joining us now. here the dow jones industrial average is now implied to open higher by about 3 points taking fair value into act there. the nasdaq and the s&p 500 are trading roughly flat. the ftse is 00 is fractionally lower. the cac 40 out of paris, up 0.2%. and spain moving now decisively to the upside up by about .25%, ross. >> meanwhile, as far as the u.s. chip res concerned, they've closed up with five straight

weeks on friday with the dow jones adding 3.4% over this period. the last time we experienced this was back in 1992 that we had a melt up. jeff hirsch is editor and chief, has taken advantage of time proven markets. jeff, very good morning to you. thanks for joining us. >> good morning to you, sir. >> so what is this melt up? tell us. what is the last time we've seen this and what's going to happen next? >> exactly what's going to happen next is hard to tell. but to me, it tells us that the market is voting for obama, much to people's dismay on wall street. i think wall street expects republicans to be much better, but this whole market pattern

here is part of a positive presidential election pattern where the market does much better when incoming presidents win. >> walk me through this for a second. so the action that we've already seen as related to people spending that obama is going to stay in office? >> it's a vote, you know, with the dow jones industrial or the s&p 500 that the obama administration has done okay. this is a market that is pushing up a new recovery high here and this is telling me that the job he has done has been acceptable enough or that the job on the other side is appealing. >> it's one thing for markets to offer more appeal. it's another for them to be pointing to his re-election. so are you saying that it's the former or are both things happening here? >> both things. you look at the chart pattern of, you know, incumbent wins versus incumbent defeats. the incumbent wins is higher and it doesn't go negative.

usually we have a president where the market is not doing as well and you get a rally from what you left with in november. >> and what does that suggest? if we follow this line and say president obama's odds are better that he'll stay in office comes november, the markets are doing better ahead of that, what does that mean after november? >> that means we'll probably see a softer november if the market stays up here and, you know, probably end up with an average election gains of 5% to 10% which is what my forecast was back in december of 2011. we're looking for a quiet typical election year where the bantering back and forth, the campaign trail heating up. that will keep the markets at bay a little bit and we'll probably get softness in september, very typical end of third quarter action and probably see some strength building up with the election and softness after. >> it's hard to believe, given everything that's going on in europe and corporate earnings and china slowing that it's the u.s. presidential election that

would explain the market action we've seen over the last six to eight weeks. but is that your view? >> it's part of the pattern. i think all the problems that we're talking about with china slowing down and the european debt issue, that's been weighing on the market heavily. i think the boost that we're going to get some decision on election and the excitement, the separatism that comes around election time gives another boost. august is much better in election years. on the heels of leading into the reagan land slight in '84, there's a year where the market was quiet impressionable in forecasting the outcome of the election. in that's fascinating. jeff hirsch, thank you very much for joining us. appreciate that. we'll have more on this topic coming up in just a little bit. the tricky decision of picking a running mate, we'll talk to a

former aide on john mccain's running mate. plus we'll get his take on paul ryan. >> we can either stay on the current passion that we are on, a nation in debt, a nation in doubt, a nation in despair with high unemployment where we're giving our children a diminished future or we can change this thing and get this country back on the right track.

so mid romney and paul ryan are going to head in separate directions today on the campaign trail. romney goes to florida while ryan travel toes iowa. romney made the official announcement of ryan acid his vice presidential pick on saturday in virginia and rally owes saturday and on "60 minutes" they outlined their vision of america with plans to cut taxes and spending and cap costs on medicare. >> i have my budget plan, as you know, that eve put out and that is the budget plan that we're going to run on. at the same time, we have the record of president obama. if people think, by the way, that their utility bill has gone down, they should vote for him. if they think jobs are more excellentful, they should vote for him. >> the president has a terrible record. he didn't moderate his positions throughout his term.

he's going to try and run on these distractions. he's going to try and divide people to try and win this election. >> this morning, we're asking viewers what they think of romney's choice. paul ryan is great for the national debt will continue to grow and even double by 2040, too little too late. we are greece. okay. what do you think, though? join the conversation here on "worldwide exchange." you can e-mail us, worldwide@cnbc.com. sweet us @cnbcwex or kelly_ evans. >> and let's give people a sense of just who paul ryan is this morning. here you go, paul ryan, 42 years old. house budget committee chairman now serving his seventh term in the house. he was first elected at just the age of 28 years old. married with three children. even more important for investors is his budget plan.

what would it mean for the economy as they look ahead to 2013? he would restructure medicare repeal this affordable care act. income tax rates, if you take them to 25% for high income earners, 10% for low income earners. and he would try to cut government to 20% of the economy by 2015. that's only a couple of percentage points below where we are now. but those percentage points can make a very, very big difference, ross. >> and, of course, congressman ryan has been a frequent guest on cnbc. ryan has been questioned several times on the channel in the last few months about whether he might become romney's running mate. >> if it's not you, is there -- you don't have to say the name of the person, but -- >> excuse me? >> there are plenty of great people who he could pick. >> the usual suspects? >> a lot of poem. >> we know who you're talking about.

it's you. is it do no harm, is that the the most important thing or do you pick someone to try and win a state? >> i don't know. >> have they started vetting you? what have you got in your closet, anything? can you tell us now and get it out there. >> i'm fine. i'm a good person. >> you're good. all right. very good. >> would you accept a vp nomination if -- >> i'm not going to get into any of that. >> come on, come on. >> i'm not going to get into any of that. it doesn't do the romney campaign any help to speculate on any of those things, so i'm going to take a pass on that one. >> so you would accept if you got the nod? >> no, i didn't -- i'm not even commenting, maria. >> joining us now for more, boris eckstein, a former communications aide on the mccain/palin campaign. you know a thing or two about select ago vice presidential candidate. what do you think about this pick?

>> it's a good pick. governor palin energized the base. in this case, not only with you energizing the republican base, you're bringing the business wing over the conservative and the tea party and the republican party together. you're bringing gravitas on the budget, experience in washington, d.c., 14 years in congress as well as you're bringing a lot of support throughout the midwest. wisconsin, ohio, minnesota, those are all very much implied. unquestionably, a good the pick. >> i can see why the conservatives will be pleased, boris. i can see why the democrats would be pleased, as well, because they now have going to have clear positions on which to attack. >> that's not necessarily the case, ross. these are the positions taken by the vice presidential nominee. you have a vice president and a presidential candidate and they don't necessarily agree on everything. george h.w. bush ran against ronald reagan in the 1980s primaries. obviously, they disagreed on a

lot of points .then they ran together successfully in 1980 and 1984 for president and vice president respectfully. that happened a lot in presidential politics. so what we as republicans and conservatives will have to focus on is not the difference between romney and ryan, but the difference between romney and obama. and there are plenty of those. obama has been unsuccessful in his last four years now as president. romney has been successful in the rieft and public sector. so there's no reason to believe romney will not continue to be very successful when elected president. >> romney stated his position is turning medicare into a voucher program, surely that pushes florida, a must-win state for romney closer to the obama camp. >> i wouldn't necessarily gra with that, either. if you look at the latest budget, the budget that was passed by the house, it wasn't necessarily as far over towards turning medicare into a privatized program and some of the previous budgets. so his position of medicare,

ryan has been dealing with a lot more nuance as the budget has gone on from year to year to year. but, again, the positions that these people will run on, mitt romney's position. >> it's not about nuance. it's about the pictures that can be painted of his positions, right? if you vote against florida, you're going to be worried about it. >> absolutely. you know what else you'll be worried about? higher unemployment than the rest of the country. you'll be worried about the fact that it raent resolved itself in florida and the fact that under president obama, florida has now gotten better since he's been president. that's what you're going to be voting on when you go into november. the american public is not going to vote on, again, nuances from paul ryan's budget when he was head of the budget committee. what they're going to vote on is has this president delivered for them and he simply has not. >> boris, it may be the case by romney is going to have to embrace ryan's position fully, it would seem, and not try to rely on nuance to separate

himself. that puts, again, medicare and taxes front and center as an issue here. if people look at what this would mean to mitt romney's own filings, that's certainly set to become another stumbling block. >> i'd like to take a look at jfk's tax returns. the whole tax return this year is another distraction for what really matters in this country right now. it's the fact that we have unemployment over 8% for 41 months. the gdp is crawling and the discussion about what taxes he's paid is an absolute distraction. >> can we now get a grownup discussion about entitlement spending? do we get a grownup debate about that and a much needed debate about what kind of country america needs to be? and does it change, actually, the whole tenor of the campaign for both sides? >> it really does, ross.

it changes it for the better. we have a grownup ticket now. we have two very successful distinguished and established folks running for president and vice president. romney has been successful in business and as governor. we have someone in ryan who has achieved this young. he was 20 when he got elected to congress and he is the person people look to on the budget. so we have a very smart ticket, a very established ticket. only about 30% of americans believe this country is head in the right direction. the last four years has been the obama direction. it's time we change now. >> you're saying change. i heard ryan say change in his speech yesterday. i seem to remember some other guy talking about change four years ago. can you come up with something? >> change. >> huh? is there no other word we can use on a campaign trail? >> well, when you want to get a new president in there, change is the easiest way to do it.

you could say a new election, whatever it is, but the easiest word to use for it is change because most americans now want change in the white house. they want someone else leading the country because this president hasn't gotten it done. and you need someone would is going to not only talk about inspiration and propose right ideas. and if you look at what ryan has done is propose a solution. the democrats have proposed a solution. they have the house, the presidency and hasn't been able to solve deficit and jobs. >> boris, you mentioned energyized debates may appeal to republicans in that sense. does it energize independents, though, who if anything basically are turned off by the tenor of this whole campaign, the negative ads, the attack ads and what not? >> that leans to the point we were talking about earlier about raising the campaign, talking about specific issues. like the deficit and jobs. and not just attacking each other for no reason. you saw that after the obama

campaign blaming mitt romney for the death of a woman he had nothing to do with whatsoever. the american public is not responding to those sorts of campaigns. we have to talk about the specific issues facing our country and the specific solutions and this discussion very much goes towards that. >> boris johnson, former aide on mccain/palin 20308 campaign. boris, thanks very much this morning. >> thanks for having me. still to come on the program, after posting the longest weekly winning streak of the year, how will stocks trade this week? we will get an early preview next. >

you're watching "worldwide exchange" exchange. mitt romney chooses paul ryan for his mate for the running for the white house. and julius baer trading lower after coughing up almost $900 million for a chunk of bofa merrill lynch's private banking business. ahead of trade this week, european bourses are pretty flat. the cac 40 has been up around 5%. volumes this morning are very low indeed. even for this time of year they're low. >> what does pick up, though, is the economic calendar. let's take a look at what's on today's agenda in the united states. new releases today, but the earnings calendar will have reports from cisco, but the group distributor iamgold and group gron will take center

stage. still in the red, pretty much across the board. dow jones lower by about 5 points and nasdaq and s&p fractionally lower, too. joining us ocme is todd warwick. todd, do you expect any pick up in volumes this week? is this busier calendar going to start to make a difference? >> no, i don't think. i think we're in this volume range now for the rest of the summer until after labor day. i think that the market is definitely broken to the upside. we're definitely in a very -- more of an investor type of market where we're grinding with no volatility and no volume. i don't think that the news this week is going to affect the volume either way. i think we're going to continue with this very slow pace as the market tries to sort out what's going on and as they wait until we come back from the summer holiday, vacation, everything is over. right now, basically all news

has been shoved over to the side. >> i wonder how significant this meltup has been over the last couple of weeks. does that makes this discounted or is this the wave in which markets start to get their footing? >> yeah. this is something interesting. once we broke out, we were in our trading range for quite a while. once we broke to the up side of the trading range, we broke out at a very slow time of the career. but the melt up continues and there's no reason to fight the trend. you know, whether there's a lot of volume or no volume, the market is still going higher. and if you own securities going up in your portfolio, they're going to show a greater value. so, you know, as a trader, obviously, the volume bothers me. but as an investor, you're looking at it, the market is going up. it's due to go up and there's no reason to fight this particular move right here. >> no volume, of course, talking more volatility. it doesn't mean you're exposed to sort of anything unexpected. is it hard to ask what might be unexpected, but what might trip

us up in this melt up? >> you know, there could be, you know, some more trouble. you know, on your side of the ocean. you know, something there could create some trouble. you know, maybe a major miss in a company, a major miss in one of these numbers, even like, you know, empire manufacturing coming out this weekend, a major miss could create something. but the point here, with no volume, it's going to be very hard to slip up into the market because we don't have any real umph one way or the other. markets tend to grind higher when they're dull. right now, we're in a very dull period. >> i was going to say, the political situation is getting more exciting here, romney picking paul ryan. does that affect trading? >> i don't think so. i think you're looking at the futures overnight. overnight, the s&p futures were down about four or five points. now they're back to a couple. i think you're seeing that there's a real lack of interest.

but all the fear now in past times, the fear was taken into volatility or the vix index. the fear was taken into the bond and the u.s. dollar. we have a stronger dollar and a stronger bond market, which means that the fear, if there's going to be a major down fall here, people are still counting for it by playing the treasury market and playing the u.s. dollar. >> all right. todd, thanks this morning. >> that's just about it for today's show. we now have to get used to live without the olympics here in london, which is going be hard. >> it is. it's been fun. but now we have to turn our attention to the u.s. political election which provides energy. >> it's months. "squawk box" is up next. have a great trading day ahead of you. >> thanks for tuning in. [ male announcer ] the perfect photo... [ man ] nice!

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good morning. your money, your vote. mitt romney announcing his running mate and it's a familiar face to squawk viewers. we're going to talk about how paul ryan changes the conversation on the campaign trail. winning ways, stocks quietly rallying this summer. the dow and the s&p 500 now posting five straight weeks of gains. plus, questions of social importance. facebook facing a key test can trigger a new wave of selling potentially. it's monday, august 13th, 2012 and "squawk box" begins right now.