exchange." . i'm ross westgate. here are your headlines from around the world. greek prime minister antonis samaras plans to meet chancellor angela merkel after she agrees they should stay on the current reform plan. no decision will be made at the meeting. policymakers could have acted earlier. >> i said we should continue to do more until the unemployment improves, at least until 7%. >> korean court rules samsung didn't copy apple as iphone design but both firms are fined for infringing on each other's

patents. >> shares of smartphone rallies it may unveil two new phones early next month. okay. welcome to "worldwide exchange". just me again. kelly still away. plenty to get through on today's program. apple and samsung forced to take their products off the shelves after yesterday's court verdict. one analyst says suspension of sales won't have a lasting impact. we've got potentially upward revision for uk gdp. be second reading will be released in half an hour from now. how do the rich stay rich? find out what millionaires think about the state of the global economy and where they are

investing their money. we'll be out to boston to speak to fidelity about its latest survey. first angela merkel and francois hollande delivered a strong wording to greece after meeting in berlin on thursday. the leaders insist greece must show reform in return for patience from europe's leaders. speaking at a press conference, merkel maintained it was important that greece stood by their commitments while the french prime minister said he wanted greece to remain in the eurozone but must make necessary efforts for that to happen. today merkel will meet with greek prime minister antonis samaras. he's expected to push for sanctions insisting that the economy needs to prove. tomorrow antonis samaras meets with francois hollande and later next we'll merkel meets with mario monti. silvia is in berlin and joins us for more. the mood seems to be we're not

going to budge and inch. is that how it's going to play out? >> reporter: a lot of saber rattling. the official line you have to stick to your reforms. you have to be repentant. you have to prove to us that you're really willing to make all the necessary cuts. then we have, of course, antonis samaras coming out and talking to the german press and german politicians saying greece is really bleeding, we do what we can but you have to help us. somewhere in the middle everybody is waiting for the troika report which comes out in the middle of september, after the verdict of the german constitutional court on the esm or temporary injunction, whether the president can sign the esm, and then we'll be talking. but behind-the-scenes, behind the official lines, what one hears also from some of the german politicians that were absolutely categorically opposed

to any more leeway for greece is that if at least the troika report proves greece is doing what it can and that's very much depends on the tone of that report, then maybe greece could be given the bit more time to get back on track. time could be instead of getting back on track by 2014, maybe by 2015 or '06. there's a lot of maybe there's. >> what do you make of merkel's parliamentian leader saying we're ready to hang you out to dry. >> reporter: i think it's probably the latter. nobody knows what will happen if greece or any other country leaves the eurozone. that's why we've been basically taking the track that we have been taking. if it were that easy and everybody was so sure that if we let greece go it doesn't matter

then we probably would have done it a long time ago. nobody knows. you can get ten experts and 15 opinions. so politicians aren't sure what will happen either. by the same token they have to get into a position where you can't be blackmailed by every country that doesn't do its job and not let us out of the euro otherwise everything will collapse. so the line we hear from many others is saying greek exit would be manageable but not desirable. >> thanks. we'll be back to you a little bit later. also ahead the dutch finance minister urged angela merkel to stick to her guns. he wants the germans to stick to their strict position. joining us now is european economist at morgan stanley. thank you for joining us.

can greece can stick. is it at all feasible for them? >> i think there has to be a degree of negotiation on the program but greece has to make efforts and show before any amendment is even contemplated they can at least commit to something more but also the eurozone, in my view the greek exit is under estimated by the crisis countries they might withdraw money if they thought their currency was something else. >> how much do politicians are they playing with fire when they say we can manage a greek exit no problem. >> first one wants to see whether greece can deliver something more and they are working on this right now. but in the end we've long been thinking some degree of involvement has to happen with longer maturities of the loans,

short term interest rates and perhaps some amendment on the fiscal target. anything more substantial than that won't come easily or quickly. >> they want a two year extension time frame to allow the economy to grow. it sounds reasonable. >> you have a president also in the first bailout package, interest rates were diminished. when it comes to this type of amendment i think they are feasible. everyone knows a lot is at stake both the greek and european policymakers. if you want a complete overhaul of the program it's not easy to do. >> okay. stick around. meanwhile the european commission repeated no discussions are taking place with spain about a sovereign bailout. a spokesman said they did not expect madrid to ask for financial assistance outside of the bank bailout plan already

agreed. the thing is unless they ask for assistance there's no ecb bazooka to cap bond yields. >> what we learned is that the condition for ecb support is for spain in that case to apply for help. what spain wants to do is to see what the ecb plans. there's still a lot of work to do. chances are we'll know more at an ecb meeting on the 6th and expect spain ultimately applies for help. >> is it about what the ecb plans? is it much more about the conditions, conditionality, the memorandum of understanding that's attached. >> i think also that spain is starting from a different position compared to the smaller bailout countries. spain has done quite a bit in a number of areas. the extent of the conditions are basically something like

becoming more specific, what's already been agreed and something more but not a lot more. i think it's possible that the spanish would apply for that. >> how important is this issue of seniority? >> it's important. in the end it's also possible that every thinking of the ecb stands on a particular matter is important. but when it comes to official lenders, basically this issue will never go away completely. what we learned is the same piece of paper can have a different degree of seniority, think of the ecb and greek debt restructuring. it's important to clarify that at least in principle. >> good to have you on. time to check in on what's going on with the markets today. right now advances being out paced by the decliners by a ratio of 7-3 here on the dow jones stoxx 600.

interviews on cnbc, playing down the need for mr. stimulus. charles evans in hong kong today saying no we should press the pedal on that. ftse 100, down .10%. ibex down .2%. gdp is coming out. treasury yields continue to head a little bit lower, 1.67%. spanish yields have come back down a little bit. 6.39. couple of days ago we were well below 6.2%. ten year bunds have come back down. euro/dollar up to a seven week high. 1.2539. the dollar index hit a two week

low. aussie/dollar come all the way back down to below 1.04, 1.039. china's pmi weighed that down at 1.3859. that's where we stand during the european trading asian. we have more from singapore. hi. >> a big selloff on asian markets today as easing hopes fade and european worries continue to weigh on sentiment. the nikkei off its three month high with steel makers leading loss. financial exporters and ship builders. losses in miners sent the aussie market to its worse showing in three weeks. supermarket chain woolworth's tumbled. hsbc was a big drag on the hang seng.

china's shanghai composite closed at its lowest level hurt by declines in resources and industrial stocks. we saw plenty of moments on big chinese place on the back of earns news. china unicom up sharply. it's a very different picture with bank of china. bank of china down more than 3.1% after earnings missed forecast. petro china shares down after closing a 6% slide in profit. meanwhile energy giant and coal company closed in the red ahead of their results announcement. markets expect a drop in its bottom line due to mining loss. >> now the u.s. may be eyeing a return to the gold standard. the ft suggesting the republican party will call for the creation of a commission to explore

restoring the link between gold and the dollar. that's part of the platform the gop will adopt at next week's convention. the ft was told this is not an effort to replicate libertarian ron paul. what do you think? is at it good idea or is it even feasible. let us know if you want to join the conversation here on "worldwide exchange". get in touch with us at worldwide@cnbc.com or tweet at cnbcwex.com or direct to me @rosswestgate. we'll take a short break. more to come.

> now if you're waiting for a verdict on the apple/samsung patent trial out of the u.s. we have a verdict out of korea. sent both tech giants lower. let's get over to seoul. what's happened today? >> reporter: well, ross, this was a partial victory for samsung on its home turf.

the seoul court ruled apple infringed two of samsung's five patents for wireless technology and apple was given a small $35,000 fine. and blocked from selling iphone 4 and ipad 1 and 2 in the country. now this dates back to april of last year when samsung filed a lawsuit in korea to counter claim against apple's attacks in the u.s. district court. as for another suit filed by apple in june the court ruled that samsung violated a bounce back feature but this isn't such a big deal since the korean tech giant replaced its function with new technology. the court turned down apple's claims on patent infringement while it rounded corners and displays are similar samsung's products are different. now, ross, we all know this comes ahead of the jury verdict in the u.s. in which could come out as early as saturday and that epic $2.5 million trial is

the one everyone is watching. >> thanks very much indeed for that. that's the latest out of korea. joining us is now brian marr associate vice president. does this have any bearing at all on what's going on in the united states? >> it's symbolic. if you're following everything that's going on in the states and you can see how that might apply. the jurors in the u.s. are not supposed to be listening to the media. i guess there shouldn't be a bearing on that. >> the other thing i suppose this was about, this was about older models as well. >> yeah. exactly. exactly. i think regardless -- certainly in this korean case if you look at the products they are older models, fairly easy for both to wipe the slate clean, use the new models and keep moving on business as usual.

as we heard earlier the fines are small in the grand scheme of things at least as far the korean market i don't expect lot of impact. the u.s., yes, again, some of these models are older. it's certainly dramatic and interesting to see what will happen. but, again, these products are going to continue to evolve and these companies may very well move past it. >> i was going say how much is potentially at stake when you make a statement like that? >> yeah. that's true. okay. i don't mean to undermine it either or make it sound like it's dismissible. if you look at again coming back to that korea case you look at the products that apple has been selling, samsung has been selling there, they tended to be these older generation lines. these guys do have, you know, the current generation products in the pipeline and, you know, over time they are going fade away anyway.

maybe it's a speed bump for the next quarter or two but i think they can move on fairly quickly. >> we've seen apple's shares of china's market down 10% in the second quarter. is that because we're waiting for the next iphone model or is there any indication they got a lot more competition? >> it's more so the former but i wouldn't dismiss the latter either. it's a case of a temporary shipment lull so once the new products come out it should bounce back up. but, in the midst of that lull there have indeed been a lot of competitors that have been jumping on that opportunity. a lot of local vendor, couple of smaller vendors, even inovo are boast be about it. i would attribute more to the former which is a case of shipment timing and once the new

products come out you should see apple bounce back up. >> i've bern reading data that says china's shipment of iphones are increase. they are the biggest smartphone market next year. what is it that the chinese -- the chinese consumers want in a smartphone. does it differ from the united states? >> it's fairly similar. again, in fact one of the interesting things is we also looked at the pc market and how it's been cannibalized by the smartphone. these buyers realized all that social networking i want to do, picture viewing, i can do that easily on the phone, granted maybe not as well as a pc but good enough on the phone. the phone is a lot more mobile than that pc. it is in many ways similar things. >> just stay with us. when you listen to this nokia story get your shares. nokia may revery well two new

phones next month. new models could be called the phi and the arrow. it may be unveiled at the nokia world event on september 5th. both models will run on windows 8 software. one blogger, the phi will feature nokia's biggest screen to date and thinner. so brian do you believe the rumors? what are your sources telling you and how big of a deal is it for nokia? >> yeah. to be honest these days with rumors you never know especially when it comes at least with apple. who knows if these nokia rumors are true. it makes sense. look what microsoft is doing with them. moving to window phone 8. they need these as critical platforms to move ahead. whether or not it's thinner or whatever we have to see until they make the announcement. clearly, they have been lagging behind a bit and need a home run

to really knock this one out of the park and get more momentum going. >> they certainly need something you're right about that. brian, good to see you. let you go and start your "weekend now". brian ma. let's remind you what's coming up on the agenda on monday. china's earnings parade continues. results due from cosco pacific. plus a major supplier of apple products, foxconn holdings will hand in their report cards. deadline day for occupy hk protesters in the city. and there's a wealth of political shuttling going on in europe. we just had another meeting to the board. mario monti will meet france's francois hollande in rome on september 4th. so add that to the schedule as well. of course, as asset markets don't debate whether spain will

request a full bailout, the head of the rescue says the crisis is not spiraling out of control. they've insisted there's life in the regions peripheral countries. >> all the countries have delivered sizable adjustment and deficits are on an improving trend in all program countries. currently the deficits and competitiveness of the eurozone's peripheral economies have been improving significantly during the last three years. >> does that stack up if we've got no growth? the pmi pointing, suggesting next quarter will be negative growth around my us the 4.5%. can you improve debt profiles if you don't have any growth. >> that's the main issue. while it's true countries are doing some degree of adjustment

on the fiscal side on the external side as well but the heart of the problem slack of growth. we're concerned about that. after all all this fiscal indicateors is ratios, deficit to gdp. one can fix the fiscal numbers but its growth doesn't come back and it doesn't come back so easily and quickly. there's a problem. >> what's your thought? are we going to get a plan together that's going to work and will shield spain and italy cauterrize them from a greek exit. >> you have to restore confidence. three things need to happen. we need more of a banking union. fiscal union, we didn't get that but the hope is that over time there will be more of a move towards coordination of that front too. finally you need more active

role of the ecb for europe. we need more of a fiscal union. the institution can't stop. markets and economies is the ecb. >> good to see you today. thanks for joining us. still to come, uk economy still in contraction last quarter but could we get a slight revision upwards in that number? we'll find out right after this.

and these are the headlines from around the world. the greek prime minister antonis samaras prepares to meet german chancellor angela merkel after she agrees with french president hold that greece should stay on the current reform path. expectations and no decisions to be made that sent risk assets lower. charles evans tells cnbc policymakers could have acted earlier. >> said we should continue to do more until the unemployment improves at least until 7%. >> korean court rules samsung didn't copy apple's iphone's

designs. both are fined on infringing on each others patents. now we turn our attention the uk. has gdp been revised upwards? let's tell you gdp revised minus .5% quarter on quarter. revised to spoint 5%. production was revised to a contraction of minus .5. and construction was revised to minus .39 from my news .52. trade deficit has wideened. 7.3 from 3.7 in the first

radiator and uk employee compensation up 1.8% in the second quarter the largest since the fourth quarter of 2009. so there we go. we've got the revision. uk sterling has fallen after that data. let's get immediate reaction now joining me in the studio alan clark. alan, first of all, your reaction. >> minus .5 up a bit. minus .7 very weak, very disappointing. you add on the effect of the last working day as the bank holiday get rid of the construction sector then underlying gdp was up about a quarter of a percentage point or so. >> why is construction so dodgy as you put it. >> the weather. working days. when you look at the monthly data up 10% one month, do u7b another. people's faith in this reading has been hurt a lot.

but even so, if you want to look at a more pessimistic side, growth would be half a point worse. there's something for everyone. >> it seems to be influenced more by other factors at the moment. >> yeah. absolutely. look this number in terms of the scale of revision it was in line in terms of the drives to revision again in line. sterling does seem to be taking its cue from elsewhere. we had some comments this morning that they liked a rate cut. so that got started on the defensive. broadly sterling is looking to euro/dollar that's where it's taking its cue from not a second estimate of second quarter gdp. it feels like old news that data, i feel. >> you mentioned that comment. it's weird because i prefer rate cuts after yesterday suggests that wasn't the case. mervin king came out and said it

would damage other financial institutions. where are we betting there will or won't be -->> two months ago at the boe meeting the current view is a rate cut would be counter productive. last month they didn't mentioned the rate cut. i think what is being flagged look we need to keep it as an option. we need to analyze it because you have this funding for lending scheme priced off the bank rate. if you cut that process. i think it's slightly more relevance. it need to be an option that we need to keep on the table. >> i think you've talked about they shouldn't cut rates because of the damage. the other thing is whether there will need to be compromise on the government's fiscal plan a because clearly with the government finance this week there was slippage. >> yeah. plan a and plan b. nine billion pounds under water and no further deterioration they will have to brother an

extra 13 billion more than they expected. to they loosen fiscal policy. that will worsen the public policy or embrace austerity more, tax month, cut spending more to get back on track. that's political suicide. i don't think he has much room to play. he has to find micromeasures to make the best of a bad situation. >> can he borrow for long term investment without damaging sentiment, related targeted investment spending that generates growth and locks in long term cheap bore roger. >> ironically that's where the break down shows. government investment was up 32% year-over-year. they are. austerity, what austerity could say because government spending has been over shoot. they spend more than they expected to. >> the chicago federal reserve president charles evans told cnbc that he believes there's a lot of reasons for central bank

to ease economic policy. he believes the fed should have moved sooner. >> we should have done more then. i think the economic outlook in its evolution since then that we worried about in the spring. we've gotten complacent when the economic data looked better. it's back tracked. chairman bernanke testified before congress and made public comments that we need to see stabilization in the labor market and improvement. in my mind that's a key marker. i said we should continue to do more until the unemployment improves at least until 7%. >> you can catch more of that exclusive interview throughout the show also on the website at cnbc.com as well. we saw the impact after the fed minutes on the dollar index. and then very contrasting views. the question is, is the data, has the data since those minutes

been anywhere near strong enough to stop them from pulling a trigger. >> i see cnbc doing its bit to get the market with some clarity and getting both side to debate. the numbers have to get better. they talked about substantial and significant. that want seems to be the majority view. i don't get the sense the numbers have moved quite that far. so we need to be slightly cautious in how much we take on board there. in general the number has been okay and i don't think okay is enough. the risk reward is let's do something. it's not going to do that much damage. if it does we can repair the damage anyway. i suspect that's where we're leaning towards. we got a few more numbers to couldn't before the next fed meeting. as it stand you tipped the odds in favor of qe. >> the fact of it, will it ease the dollar any further to dollar weakness. nobody expects it will do anything. >> well, i think the funny thing is you're right the markets are

decently skeptical whether the qe will have any economic effect but it will have a dollar effect and wealth effect in terms of risk assets including equity. that's the angle. it's one the fed anticipates. they want a positive world effect. they may want a weaker dollar as a stimulus. i imagine that's a transfer mechanism but i don't think it will do very much for gdp. >> thank you very much. stake round. more from you in a few moments. okay. we finish up our aaa watch this week. the most interesting of all nations in europe indeed finland and the last of the eurozone. it has got aaa right across the board from fitch, moody's and standard & poor. they affirmed their rating. got an outlook negative from standard & poor. standard & poor is generally

more pessimistic. what about the state of the economy? well, q2 gdp can contract 1.0%. what about finland and of course the political stance. we know some politicians are getting fed up what they see continuing to write dhochecks t the peripheral. joining us on the phone is timo korkeamaeki. finland has become sort of the unlikely creator of the storm after the foreign minister confirmed the country was preparing for a breakup of the eurozone. how far can finland be taken to approving more bailouts for the likes of say spain. >> first of all good morning and

thank you for having me. those comments that were made by our foreign minister were over drawn in the national media. the fact that fin lad is prepared for something isn't that we would see it even remotely likely. that was overplayed by the media. of course, any taxpayers would be getting fed up by particularly keeping this endless tap open. there's no doubt about that. >> so you've already -- finland has negotiated special collateral for bailout funds it provided. what conditionality would finland want to impose on spain to trigger ecb support? >> well, i think finland would need to have various strict rules and guidelines by which those results are then followed

and make sure that everything stays on track. at this point, as you pointed out, you know, the electorate and politicians are getting, you know, a little bit tired of this. >> what is the -- here's an interesting point. some people say the issue with finland is it has not an awful lot to lose or gain from being in the eurozone because the banks are less exposed to peripheral debt. is being in the eurozone more of a political idea rather than an economic one? politics in terms because the closer you are to the heart of europe the further you are away from russia? >> when the euro was established there was a lot of discussion in finland about how this was in a large part a political decision rather than an economic one but i have actually done some of my own research where i find great gains to the finnish company

from the euro as well. >> just finally we know sweden, they had a referendum on whether to join the euro. finland never did. is there resentment about that? does that -- is there an underlying problem? >> i don't see any big problems. when finnish people are asked about the euro, the majority tends to be still even at this point when we see all these packages packed up, people view euro membership as a positive thing and so i don't see any big resentment. of course every time when we see sweden has taken some advantage of their ability to manage their currency, there are some voices that look back to those decisions but i don't see any big resentment. >> timo, good to talk to you. thanks for joining us. professor of hanken school of

economics. luxemburg in focus. they have outlook from fitch, negative for moody's and standard & poor but still aaas across the board. luxemburg gdp was flat on the first quarter. debt to gdp ratio 18.2%. unemployment rate 5.4%. a tiny country in the eurozone with a population of just over half a million people but it doesn't enjoy the third highest gdp per capita in the world and a special place in the eurozone as its prime minister is also the president of the euro group and earlier this week he traveled to greece and reiterated his views about a potential greek exit from the eurozone. >> i'm totally opposed to the exit of greece from the euro area. this would be of no help for greece and this would take major

risks for the whole euro. >> all right. still with us, alan clark. alan, pmi pointing to contraction in the eurozone this week, my us? .4%. unless we get some growth back the debt isn't good for anybody. >> germany and france, their service sector tend to take a lead from equities and treasuries. decent run we've had in the last five or six weeks for both selloff in yields tells you the mood is improving and that tends to push the pmi up. it did the reverse. the periphery is hurting. the caps on perryfer -- periphey

is hurting. >> besides the other stuff that's gotten more important about policy caps. might they cut rates? >> possibly. i think it's a bit like moving. 25 basis point cut won't make-or-break a recovery. symbolic. >> clearly asset markets not looking at the growth figures. much more inned in how we shore up spanish and italian yields. euro/dollar has been up to seven week highs. are we at the top of the range? >> don't think so yet. the markets want a little pull back in euro/dollar so they can get on it again. we've had a squeeze of the be market sentiment. we're getting squeezed higher and higher. pullbacks are smaller. i would say now the markets really eyeing a level at 1.27, 1.2720 as a near term target. we'll try for it in the next week or so. >> what's the risk of disappointment? >> in europe?

the advantage we have is no one is saying anything which in europe is a result. we have to wait until the ecb meeting in mid-september. all those triggers that we know. in the meantime the markets get on with it and at the moment it's europe bullish momentum. >> i'll ask you both. what is the minimum we should expect from policymakers over the next few weeks going into the next ecb meeting in terms of the endorsement. >> expect to be disappointing. even if you get five minutes of euphoric it will be undermine later. inflation rate is coming down, less of a headwinds. petro is shooting up. that's hurting consumers. >> what markets want and expect is detail. we haven't had any. that's what they want from

draghi. i guess having gotten that detail from draghi they want to see what spain does next, applying for help that brings the ecb in a big way. if you get those parts euro will go higher. >> okay. there's lots between twix and twain. good to see you. slightly weaker during the session this morning. we're about an hour and 45 minutes. .2% down. euro/dollar seeing a screen of that. it's higher ten year bunds right now 1.35%. ten year spanish yields slightly lower at 6.4. italian yields slightly higher, 5.72. let's show you where we are with conferencecy markets. gilt weakened. fallen, sorry is the way to say

it. euro/dollar 1.2540 and dollar/yen 78.60. aussie/dollar is the one that's weakened the most. still to come, being out to athens as the greek prime minister antonis samaras counts down to that key meeting with angela merkel.

angela merkel and hold delivered strong words to greece after meeting in berlin on thursday. the leaders insist the country must stand by its commitments. today merkel is set to meet with the greek prime minister antonis samaras. he's expected to push for concessions having claimed the economy needs room to breathe. joining us now from athens is president at ef consulting. thanks very much indeed for joining us. antonis samaras is pushing for concessions, they want an extension to the time they need to payback. is he pursuing the right objectives? >> i don't think so. an extension would just add to the debt burden and for long the uncertainty as to whether greece will stay in the eurozone or not. i think what he should be asking instead is for official debt

relief because even after the debt exchange that took place earlier this year, greece's debt burden will still be 165% of gdp by the end of this year. >> so -- i mean there are policemen of people saying this is what you do need in greece. many others saying german banks need to bite the bullet on this. how much debt relief does greece need to be back on a sustainable, manageable path? >> well, the debt relief can take a number of forms. for example, the eurozone could provide funds for bank recapitalization directly through the esm rather than the other sovereign. assets have been agreed for spain. that would provide 50 billion which is 25% of greece's gdp. also, the ecb could take a hair cut on the bonds it bought in

the secondary market under its securities markets program. that's an additional 50 billion which could easily be hair cutted to the extent of 30% which is the discount at which the ecb bought these bonds in the secondary market. >> do you see politically, though, that actually ever being agreed? >> it certainly is easier than having governments of the eurozone go back to their parliaments to ask for more money for greece for the third time, which in any case is not what greece should be after. you know, the idea here is not to get even more of a debt burden but no reduce the debt burden so it can service its debt. >> you thought that in the way you just explained. you still got to get the economy to grow or to stop contracting. would that be a sustainable debt

and would the economy still not growing, how do we know we won't be back here with more problems in a couple of years? >> well, we know that because if there's debt reduction that reduces the interest bill and, therefore, it reduces the primary surplus that greece must generate in order to meet the interest payments without resorting to further borrowing. it has the effect that prime minister antonis samaras intends, which is to sort of reduce the adjustment burden, but in a different way with less debt not with more debt. >> why do you think -- you obviously like this plan. why do you think he's not pursuing it? >> well, first of all, i don't think anything will be decided before the troika report is out in early october and we already got a flavor of that in yesterday's meeting between merkel and francois hollande.

>> yeah. the greece -- it says greece could stay afloat but will be broke if the money doesn't arrive. what's your own sense of likely outcomes for greece by the end of this year? >> i think they will have to provide some relief to greece. i hope it will be in the form of official debt relief. and not in the form of more money, which in any case politically is unlikely to fly. and i also think that that will help greece get out of recession more easily because right now interest payments absorb a very large portion of tax revenues. >> okay. thank so you much for joining us. miranda xafa joining us from athens. australia central bank governor says the country's resources boom is not over yet.

the rba expects mining investments to peak of 9% of gdp over the next two years before fading. signalled interest rates will stand pat unless there's a big change in australia's economic outlook. come october, the japanese government could run out of government. the nation's with the world's biggest debt burden is inches to its own version of fiscal cliff. legislation is languaishing. and the u.s. may be eyeing some kind of a return to a gold standard. the "financial times" suggested republican party will call for a creation of a commission to explore restoring the link of gold between the dollar. congresswoman marsha blackburn who co-chairs the platform

committee said this is not an indication to replicate libertarian ron paul. what do you think? a gold standard would force an end to wasteful spending otherwise the u.s. will lose its reserve currency status. we would like to know what do you think of this plan? is it a good idea? is it even feasible at all or would you want to link to it a commodity. if you do join the conversation here on "worldwide exchange". get in touch with us, e-mail worldwide@cnbc.com or by twitter at cnbcwex.com or, indeed you can come direct to me @rosswestga @rosswestgate. u.s. markets, ftse 100 is now flat. central dax down .1%. cac down .2%. ibex down a third.

spanish yields have fallen a little bit today down 6.4%. we're lower on yields in germany and on gilt as well after gdp was revised to contract 5% from a previous .7% yields in italy slightly hire. still to come on the show, mitt romney is hoping to shake up the presidential race when all eyes are on the republican convention in tampa next week. let's hope the tropical storm doesn't disrupt things. we'll have plenty to talk about as the second hour of "worldwide exchange" gets under way in just a few moments.

okay. this is "worldwide exchange". i'm ross westgate. these are your headlines from around the world. . greek prime minister antonis samaras prepares to meet german chancellor angela merkel in berlin after she agrees with the french president francois hollande that athens should stay on the current reform plan. uk second quarter gdp contracted less than first thought but still the biggest quarterly drop in over three years. expectations that no designates were made sent risk assets lower. chicago fed president sells cnbc policymakers could have acted earlier. >> said we should continue to do more until the unemployment proves at least until 7%. a korean court rules samsung didn't copy apple's iphone design but both firms are fined

for infringing on each others patents ahead of a more critical verdict out of the united states. if you just joined us stateside. good morning to you as well. futures this morning pretty tepid as the call for the open. dow is trading about 16 points, 12 points above fair value. nasdaq is just three points above fair value. s&p 500 about a point above fair value. follows a session in europe that's been generally weak. ftse global 300 down ten points, .2%. european markets, ftse just up a smidgen, up two points. we got a revision upwards in terms of the contraction. not as much as we thought, .5,

previously .7. up in construction. also a large inventory contribution as well. xetra dax down .2, ibex down .1%. bond yields in spain trying to come back down after rallying up earlier in the week. 6.39%. they are lower in the uk. sterling fell. u.s. ten year yields little bit lower 1.66%. currency markets, the aussie/dollar has been one of the bigger movers. back down to 1.04 against the u.s. dollar and euro/dollar 1.2545 still up near the seven week highs at the moment. i mentioned the performance in asia. let's tell you exactly what happened. we have the details out of singapore. hi. >> thanks, ross. asian bourses lost ground after easing hopes fade and euro

worries weigh on sentiment. shanghai closed at its lowest level since 2009. hang seng dropped 1.3%. energy majors in financials lost ground as worries continue to rollout. asia as hsbc, its shares lipped 1.5%. downgrade by rating agency s&p. nikkei dipped 1.2% with steel makers and machinery stocks leading losses. kospi was weighted down by financial exporters. and losses in miners due to the falling north prices sent the aussie market to its worse showing in about three weeks down 0.8%. the country's largest supermarket chain woolworth's tushled on down beat earnings. sensex down .4%. back to you. thanks for that. so plenty more comments out from

fed officials. chicago federal reserve official charles evans told cnbc he believes there's a lot of reasons for the central bank to ease economic policy further. in an interview from hong kong he indicated he felt the fed should have moved sooner to stimulate the economy. >> we should have done more then. i think that the economic outlook in its evolution since then has been consistent with things that i worried about in the spring. we became a little complacent when the economic data appeared to be better. now it's back tracked. chairman b bern testified before congress and made public comments that we need to see stabilization in the labor market and improvement, in my mind that's a key marker, you know. i said we should continue to do more until the unemployment improves at least until 7%. >> see more of that and read about it at our website at cnbc.com. at the same time bill gross says another round of fed eases is a

done deal despite comments to the contrary. pimco co-founder says u.s. gdp isn't strong enough to dissuade the fed from jumping back in with purchases of bond and mortgage securities. >> what they basically said is that this will be a relatively open ended program in terms of size, in terms of time, in terms of what the asset class that they buy. so the fed has the flexibility even in the face of strengthening economy to the extent that that's happening to basically modify their posture going forward. i think it's almost a done deal. 80% doesn't say that but it's close. >> qe3 will be less effective than the previous rounds and if it happens investors should be buying what the fed buys. joining us today then for the last hour of the program, the form assistant secretary of commerce to u.s. president george h.w. bush. special assistant to president

ronnie reagan. good morning. nice to see you again. >> good to see you. glad to be back. >> in the last 12 hours we've provided both wings of the discussions on whether the fed should act or not. >> you've broken a lot of news in the last three or four hours including marc faber saying there's 100% of a global recession. a lot of news. >> if the odds -- if you agree -- do you agree with that statement. if you did do you think the fed should be acting, they have a growth mandate they need to respond to? >> they do have a growth mandate but it begs the question in my mind they've done a lot, two rounds, will round three be the final round or what happens if we have to go to qe 4? it hasn't stimulated. the economy is bumping along. a surprise number yesterday coming out. and so, i just wonder and the

biggest question that i have and i don't have an answer, will they do it before the election? because they will look like they are electioneering if they do. >> i'm fascinated by this. the fed shouldn't act before an election. why not? they got the mandate. if they think it's the right thing to do they should act. >> they are supposed to be independent of politics but it looks political. in an election like this election, where so few voters really are undecided, the election will come down the wire, it's a dead heat today, something like the fed could move it. >> does it? i mean i'm not sure anybody in the uk feels better about the government or worse about the government through bank of england policy. it is that different in the united states. if the fed launches more qe it

won't impact anybody in main street america. why should that have any impact on the election? >> why should they do it if it doesn't impact main street america. >> that's an entirely separate question. that's about the efficacy of the policy. not whether it has political ramifications. >> it does, though. american elections, perhaps more so than british elections do turn on big things like the economy. and if they ease now, and the economy starts to grow and the unemployment rate even it just ticks down from 8.3 to 8.2, to 8.1 in successive months to november 6th that could make a big difference. >> but that's their job? >> it is their job. >> you're saying they shouldn't do their job. >> i'm saying i don't know what they should do and if i know what they should be doing i would be sitting on a yacht. >> they have other options.

there's an argument there needs to be a lot more imaginative and the burden should come on the government than the central bank. which we'll get ininto the a second. it all ties up with this conversation because the u.s. may be eyeing a return to the gold standard. the republican party will call for a mission to restoring the link between the gold and dollar. part of the platform the gop will adopt at next week's convention. i mentioned ronald reagan. last time we had a gold commission was round reagan. >> there was a reference to it in the 1984 platform but you noticed here it is 2012 and we're not back on the gold standard. >> no. so how big of a deal is this or not because the commission just makes recommendations. i mean there's a lot of issues with the gold standard. how big a deal is this within the gop itself? >> a lot of the party faithful

believe we should look at it. a lot of the party faithful believe we should go back on the gold standard. what the commission will be able to do is look at all of the issues big and small. what do you do with the amount of gold in circulation. utah accepts gold now as a medium of exchange. what do you do about all the gold that's out there when you have the federal government, the central bank holding it. >> what's the argument forgoing -- why politically would you want to be on the gold standard? what's the fundamental -- then we have a natural control of government spending. >> stability. >> it would be highly destabilizing because you couldn't then really control -- you've removed the central bank's ability to off set by varying interest rates and you might get much more volatility in the economy and much higher unemployment. >> that is a possibility in the

short term and, of course, we live in four year cycles. so we're naturally on a short term political cycle in america. actually two years because of the congress. >> is this anything to do with ron paul or not? >> could be. ron paul, also his supporters have argued very strenuously for a platform to audit the fed and there are websites in america, actually, where you can petition both parties to agree to auditing the fed and there is, as i under it, there is an audit the fed platform in the republican platform that was drafted yesterday. >> great to have you on. plenty more to get through. great place to start conversation. it's pretty good. that's spri that's prostrigd tropical storm doesn't come through. also, let's see what's on the jends in united states. durable goods are due out at 8:30 with demand to rise 3%.

madison square garden and owner of the new york knicks and new york rangers report results before the opening bell. also money laundering woes mount for global banks. standard & poor strikes a blow to hsbc. we'll talk about that when we come back.

and here are your headlines if you just joined us this morning. greek prime minister antonis samaras prepares to meet german chancellor angela merkel in berlin. second quarter gdp out of the uk revised upward. biggest quarterly drop in over three years. a korean court rules fines both apple and samsung for infringing on each others patents ahead of a more critical verdict out of the united states. you can't go long without talking about the banks of course. s&p lowered hsbc's rating from stable to negative. it follows a number of money laundering allegations. i want keeps its a plus right. the s&p says the bank is at risk of losing business because of accusation. the group will have to set aside capital for fines or litigation.

you've been the executive of a number of banks including hsbc, i believe. that point that standard & poor makes that they may lose business to others, is there a single bank out there now that hasn't been stained by something somewhere? >> i can't think of one. we started down this road in america with hsbc and money laundering and then libor scandal and world bank of scotland dragged in to the libor scandal in america and standard charter's problems. where do you go if you're looking for a safe bank, you know, a regional bank some place. >> you've been in crisis management. who has dealt with their crisis of either money laundering or libor. who has dealt with it the best and who has come out worst? >> you expect me to say this. if you went back to 2008 and the subprime crisis, leading into that i think hsbc did a very good job with their subsidiary

household finance hfc. they came out early, said they would cover it and i think they covered themselves in glory in that moment. in this round of scandals nobody is looking good. >> what do you make the way standard charter dealt with their, you know, their sort of issue? in the end, they settled and shut it down quickly. >> yeah. if that shuts it down. >> they still got the other regulators who were actually negotiating with. >> right. >> the challenge of settling early like barclays did is it can backfire and it also sets, is the settlement the floor or the ceiling? the hope is that it's the ceiling but it can rapidly become the floor. >> there was a lot of chat here. you would have picked it up you come to tuck once a month, a lot of backlash here about whether there's a u.s. regulator, the u.s. using, you know, other

means to try and dump the city of london not take it down a couple of notches and always a turf war going on between the city of london and new york. are the regulators involved, there's a bit more going on here than just trying to do their job, is that your sense? >> it's a tough time to be a foreign bank operating in the united states. i want does seem that foreigners are getting a rougher ride than domestic banks right now. there seems to be at the time of the standard charter issue a lack of coordination between the local state and federal regulators. which isn't good. and there were allegations both here and there, again, of politics because of the presidential ambitions of the current governor of new york. who knows. but it is a tough time and i think the banks are going to have to really sharpen their

game going forward in how they deal with regulators and how they deal with the public at large with respect to their reputations. >> they need to hire really politically smart savvy people that know their way around the politics. >> somebody who has been around the world a couple of times. >> take a very small cut. still to come on the show, wealthy americans appear to be shrugging off global growth fears. more millionaires are bullish on future. find out why when we come back. as we go the break, a reminder here, we are slightly weaker in europe after two hours of trading on equities today. dad'. or lauren's smartphone... at&t has a plan built to help make families' lives easier. introducing at&t mobile share.

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now there may be several storm clouds hovering over the horizon. we're not talking about what's going on in florida. eu debt crisis is slowing the japanese economy. it's not darkening the outlook for america's wealthiest people. a survey of millionaires by fidelity. thanks for joining us from boston as well. so, look. you've surveyed the behaviors of 1 you had millionaire households. it's a fairly in depth study.

how are they feeling about life? >> i think they are feeling pretty good in terms of their future outlook. they are still fairly cautious in the short term. but this is our fifth study and by far this is the most positive this group has felt about the future. >> what is trying that slightly better sentiment. >> well, you know, i think it's a couple of things. first step back and look at who these individuals are. 86% of those we surveyed in this millionaire group are self-made millionaires. so they've created their own wealth over time and things such as the stock market have been a major contributor to that wealth creation. so they are feeling positive about the outlook and the opportunity it creates for them. >> yeah. where are they? is that because -- are they more exposed? where they invest, more investing in equities than they are in fixed income? >> they are. which is contrary to what the

average investor might be doing right now which has been lessening equity exposure. this group is investing in equities and across the board, no matter how positive they are or how negative they were in the survey, u.s. domestic equities was the number one addition to the portfolios over the last year. >> so, bob, they are bullish on the stock market, they are bullish in general but they are slightly negative on the near term financial market outlook, is that correct? the government economic policy outlook? slightly negative on that? >> our survey is really a holistic survey. so, yes, in the short run they are still pretty cautious and that's driven by things such as real fears still around real estate. but very positive in terms of their future outlook. >> and most them are self-made

millionaires? they didn't inherit their money? 86%? >> that's correct. 86% are self-made. >> and so they would say they built it. i did build this. president obama's words. >> they did. yeah. they built it themselves and, again, the stock market is one of the major ways they created their own wealth. >> how does that impact then their, the psychology in terms of what they then do with their investments. look, if what the average wealth -- $3 million you should feel pretty good about life if you got $3 million and your investments perform okay. >> so, i think if you look at the fact that these investors, their average age and what they've accumulated, they've been through different market conditions before, they've been through a variety of economic

conditions so they recognize what they've gone through, you know, will pass. so they see this as a buying opportunity. they are willing to take on a bit more risk and they are very positive about what kind of outcomes will be create forward them. >> finally, what do they do with their advisors? how regularly do they change advisors. how do they view where they get their investment advice from? >> so, advisors play a really important role with this group. 70% of them use a financial advisor. and so those advisors are critical in terms of giving them perspectives. and those advisors tend to have very sticky relationships with these investors. >> all right. that's good news four. thanks for that. still to come tropical storm or not what goes on ready to

descend on tampa, florida to officially nominate mitt romney for president. what are the issues they will push to the forefront when the gop gets the primetime spotlight. we'll talk to another top republican strategist when we come back. meanwhile futures right now indicating pretty flat start important the u.s. markets. >

this is "worldwide exchange". these are your headlines from around the world. . greek prime minister antonis samaras prepares to meet german chancellor angela merkel in berlin after she agrees with french president francois hollande that athens should stay on the current reform path. expectations that no decisions will be made at that meeting sent risk assets lower. charles evans told cnbc policymakers could have acted earlier. >> i said we should continue to do more until the unemployment improves at least until 7%. >> british second quarter gdp contracted less than first thought but still biggest quarterly drop in over three years. a korean court ruled samsung didn't copy apple's iphone design but both firms have been fined for infringing on each others patents. this is ahead of a more critical verdict out of the united states.

okay. if you just joined us on cnbc stateside very good morning to you. futures here indicating pretty tepid start to trading in terms of no firm direction. s&p 500 is marginally lower. nasdaq is literally two points above fair value and the dow is around about nine, nine and a half points above fair value. follows european markets that are tepid as well. ftse global 300 down 13 points. as far as european stocks the ftse has been trading hugging the flat line down .10%. ibex down .4%. yields in spain slightly lower. stock market is a little bit weaker. throughout the course of the trading day in asia, plenty of comment on what investors are to do in this environment. here's a recap of some of the thoughts so far today. we have a short term

forecast for euro/dollar. right now i think there's a general sense of wealth for the euro right now and want to see how these summits play out and also the fact that investors realize they are not sure. >> we're more friendly to soybeans over corn and we like the soy/corn ratio at this level. whereas corn has done a relatively good job of finding that demand rationing, we think that price will stabilize. we do think the soybean will out perform. that ratio will widen in the near term. investor sentiment is very fragile, volumes are very low. beginning of the summer it was a good way to go into peripheral debt. we sold those positions two days

ago. now the chicago federal reserve bank president charles evans told cnbc in an exclusive interview he believes there's a lot of reasons for central bank to ease economic policy. in an interview from hong kong he indicated he felt the fed should have moved sooner to stimulate things. >> we should have done more then. i think that the economic outlook in its evolution since then has been consistent with things that i worried about in the spring. we became perhaps complacent when the economic data appeared to be better. now it's back tracked and things aren't doing as well. chairman bernanke testified before congress and made public comments we need to see stabilization in the labor market and improvement. in my mind that's a key marker, you know, i said we should continue to do more until the unemployment improves at least until 7%. >> those comments were on "squaw "squawk box". the u.s. treasuries consulting with other regulators on the next step to take for money

market funds. mary shapiro dropped an anticipated vote on new rules for the mutual fund industry. rules aim to reduce risk to financial stability from money market funds. are you following this? >> i read a little bit about it this morning. she doesn't have the votes and she's encouraging other regulators to step in. the fed has a big interest in the money market funds. unclear what they will do. and unclear what authority they have to do it. fed doesn't have authority to intervene in a product like this. >> there's been a big issue about all the regulatory changes we've implemented and how effective they will be in future crisis. >> regulations always lag. rush to pass legislation then it takes two years to create regulations to implement the legislation and by then the markets have moved on

dramatically. so perhaps it's time to stop, draw brett, go back to first principles about what we're really trying to accomplish with financial regulation and start over. >> what do you think -- you talk about first principles for financial regulation. what we're trying to do, of course, is not have taxpayers money at risk. >> bailing out. >> right? >> also not have savers money at risk. not have homeowners money at risk. noble goals. a piece of legislation that's 2,000 pages long. the answer to the previous question and my guess is probably not. let's stop and think about what we really are trying to do in today's market, not the market of 1935, not the market of 1997, not the market of even 2008. >> it's very hard, those isn't it to stay current when you're

regulating. samsung and apple stock exchange the blame for patent infringement. how does it bode for a pending vote in the united states? we'll talk about that coming up in just a moment. [ male announcer ] it's a golden opportunity to experience the ultimate expression of power... control. [ engine revs ] during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection.

now if you've been waiting for a verdict on the

apple/samsung trial in the united states, instead we got one out of korea which sent shares of both tech giants lower. apple down a thafrd percent. the verdict was in south korea, court there slapped fines on both apple and samsung for violating each other's patents. the judge, both firms must stop selling the products in south korea. these include apple's iphone 4 and ipad 2 and samsung's galaxy is and nexus smart phones. samsung was not found guilty of copying the iphone design which is a focal point of the more critical trial awaiting verdict in the united states. not that anything in south korea should have any bearing in what's going on in the united states. it's of interest. one viewer tweeted that at least samsung products are 4g and have larger screens. apple is behind the times

according to that. the republican national convention gets under way in tampa, florida on monday and there's still a strong possibility the city could get a glancing blow from tropical storm isaac which may be a hurricane as it moves westward towards the gulf of mexico. national spotlight on tampa, florida recover rick scott says the state is well prepared. >> the show will go on. i'm doing updates twice a day with the rnc, federal officials, local officials and state officials. we're a state that's used to hurricanes. we know how to deal with them. we have a great emergency enactment team here. so we're keeping everybody informed so people can make good decisions. >> meanwhile gop delegates will begin their role to nominate mitt romney for president on monday. romney scheduled to speak at the convention on thursday night.

mary jo they will lay out the policies that they want to adopt. going back to the fed, we talked about the commission that they may get for the gold standard. they also, of course, want to rein in effectively, they want to audit the federal reserve's monetary policy. what's the problem with the federal reserve? >> the public at large don't really understand what the federal reserve does and what it -->> they set interest rates and try to generate growth. >> yes. >> while capping inflation. >> yes. >> what doesn't the public understand that. >> what does quantitative easing mean to the average person on the street. nobody understands it. >> nobody understands the treasury money market operations. >> including the treasury. >> don't mean we change what they do, do we? >> the audit is not necessarily to change what they do.

the audit is to find out exactly how the fed operates. what the fed does on a day-to-day basis behind-the-scenes, and what that means for the american economy going forward. >> is the gop more -- are they worried about money, if affiliation far more about inflation than growth. what's the snish>> both. the republican party is. we don't have growth. we have high unemployment by recent standards. and there is a concern that all this qe is stirring up future inflation. >> it hasn't generated -->> not yet. it hasn't generated much growth yet. >> more growth than in europe. >> this is true. so there's a concern that we're is going to at some point in the not too distant future hit an inflationary wall and it's just going to come down on the heads of the american public and the american taxpayer. >> romney has already said

bernanke won't get voted in. do you have any clues who they would like to see? >> he hasn't indicated any names yet. i think it's too soon. let's get through next week the nominating conventions. let's get through november 6th. >> let's also bring in senior vice president of fox global as well. thanks for joining us as well. look, i wonder whether the republicans are over concerned about inflation and whether they think the fed has been money predict? >> well, i can tell you that what the republicans are focused and concerned about is the current fiscal situation in this country and i think the selection of paul ryan as vice presidential candidate is, you know, a testament to that. he is clearly known in this town as someone who is able to have an honest and open discussion about the very real problems

that our economy faces and the challenges it faces. so i think that there's actually enthusiasm as they get close to the last 45 days of this campaign after labor day to talk about some of those issues. >> kind of interesting this convention is happening in florida, and of course ryan's policies in medicare would have a big swing state, could have a huge impact in florida. >> absolutely. i mean it's no mistake they chose to host, hold their convention in florida. you know just like it's no mistake democrats chose to hold theirs in north carolina. you know, florida is a regular swing state. it's just automatic swing state. north carolina more periodically and i would argue that the democrats probably are not looking as good in north carolina as they once were. but florida, there's going to be an enormous amount of attention on the medicare issue and i

think next week in tampa you'll see a lot of messaging on that front. >> trey, mary jo here. paul ryan has been a noted deficit hawk for many years. and he has had the guts to put a lot of proposals out there, some of which the house actually voted on. he's been campaigning a bit with his mother, i understand, who is 78, 79 years old. how is that working? >> i think it works very well. any time in politics in campaigning that you can personalize your message and any time that you can really kind of get the people to connect with you, i mean he was, i think he first introduced her on the campaign trail at a community in florida called the villages which is a very large, you know, senior community, and, you know, was talking a lot about medicare and was putting his mother up there as someone that would be very impacted, you know, by some

of the positive changes that they want from pose to this system. the reality is that this system is unsustainable. but the important thing that they are trying to clear up is that they are not doing anything to medicare to current recipients, but it's unsustainable and trying to do something in the future. >> why do we want a commission to go back to look at restoring the link between the dollar and gold. reagan had a commission and looked at it and decided it wasn't a reason for doing it. why do i want to relook at that now? >> i would say it's a good question, and i'll tell you, i'm not big on commissions. i think this town has shown you that commissions don't really, don't really work and the reason they don't these days in this town is because this town is as dysfunctional as i've ever seen it. i've worked in this business now for almost 20 years even i've never seen this town more important larized. sometimes the easy solution is

throw a commission out there or say we'll put some smart people together to solve it. at the end of the day, partisan politics still rules the day and everything is influenced by that and i think the voters are sick of it. the american people are sick of it. outside the beltway i think you'll see this november kind of a movement, certainly towards that. i think people are disenkwhantd the party system w-the two part. they just want solutions. they want problems solved and i'm not sure putting a commission together on something like that will work. >> you talk about a division in washington. here's the thing. whatever happens in the election, how on earth will both side of the aisles get reconciled to work together if we get split congress? how is anybody going to come together for the good of the country bus that's what electorates like. >> you're exactly right and it's

a great question. that is the huge question, that's the x factor and, you know, i tend to be pretty cynical on that. i don't see a light at the end of the tunnel on that. but what i do see, though, is that whoever wins this election, there needs to be a leader. there needs to be someone that basically brings these folks together and says enough is enough. that hasn't happened over the last four years. i mean if you look at it, barack obama had the opportunity to move a lot of what he believes in and supports in the first two years because he had democrats controlling obviously the executive branch within the white house and legislative branch. but over these last two years he also had an opportunity to really try to show some leadership and i think that this election is going to be a lot about that, about are you better off now than you were four years ago, could he have done things over the last four years to at

least move the ball down the field. but, you know, it's something you're going hear from the romney/ryan campaign over the next few months. >> trey, thanks for that. >> you bet. >> thanks so much for joining us. still to come on "worldwide exchange," angela merkel and francois hollande delivered some strong words to greece after meeting in berlin on thursday. leaders insisted greece must stand by their commitments. today merkel is meeting with the greek prime minister antonis samaras. he's expected to push for concessions having claimed the economy needs room to breathe. tomorrow antonis samaras will meet with francois hollande. silvia is in berlin. very strong words going in before the meeting with mr. antonis samaras. no slippage. we're not going to give in on anything. do they mean it or is it pre-negotiation tactics? >> reporter: it's probably a bit of both. i think they mean it on one

hand. greece has to stick to the reform process falling back off and slackening off again would be absolutely disastrous. on the other hand they also know hat the greek economy has fallen off the cliff and falling even further and they might have to stretch the time horizon. but what they want to avoid is the impression that as long as greece whines they will get what they want and slacken with the reform sproerks can slacken with the cost-cutting, et cetera. i think it has to come both. it's a little bit of a tit for tat. you give us the convictions convince us that you want to do what you pledge to do even if you can fulfill all the commitments and then we might give you a bit of lee way in terms of stretching the time horse stone. antonis samaras came up here saying the germans won't lose a single cent. we'll pay every single cent

back. do we believe that? i remember standing in the deep of winter 2 1/2 years ago when the then prime minister of greece arrived here and said we don't need any money from germany. so i think it's all in flux these days. >> silvia, absolutely right as ever. thanks very much. that's the latest out of berlin. still to come as markets try to get mixed messages markets will get the latest on the american market. we'll preview that when we come back. >

okay. it's early, still ahead of the bell this morning we're calling for a pretty flat open on u.s. markets. dow is up eight points. nasdaq on fair value and we're slightly below on the s&p 500. the managing director of

spectrum asset management. if you watched cnbc in the last 24 hours you got the case against fed easing. where does that leave traders with the data? >> i think the market as a whole, traders have expected that the implementing of any type of fed movement will be further down the road. nothing right away and important the same reasons i think that's why most people believe the latter view that if the qe3 is kind of put back a little bit that that means things aren't as bad as people expected. >> okay. so they can do without their fix, can they? >> well, you know, that whole theory there, ross, kind of shows up in the equity markets and that's why you're seeing in the s&ps these levels so well. >> it means the data becomes more important, right, because the fed talked about the data, every little data point becomes an event in their own, durable

goods today. >> i've never seen such references to the market as a whole by a fed official. it seems as though right now at least the fed is clearly aware of where the data is. really waiting to implement on something that looks bad and important the same reason of course because of jobs hats the reason why you're not seeing anything happening just yet. if the bottom falls out the fed is ready to act immediately. ross that's why we're seeing a move higher in precious metals and in particular the major moves in silver. >> what's going on with silver? >> i think silver was under appreciated for quite a while there, ross and again i think that's why you're seeing such a big here. some targets i looked at on breakthroughs, a heck of a move from where we were a week ago today. i think we're is going to retrace to some big time levels and fundamentally that's starting to show if there's this demand for precious metals things are a lot worse than they

are. if you want to get a cue from the fed, mostly because of china keep your eye on silver more than gold. >> we had comments out from marc faber we'll have a world recession, 100% baked in. if you believe that do you stay on those trades do, you? >> if you believe that premise sill rear blows through 36 and see a 40 handle where we revisit those older areas. that's one of the reasons use got to keep an eye on even platinum for the reason said you might see that ratio of platinum versus gold on a one to one basis. between, i think silver is a really good barometer of industrial and precious together. >> mike good to see you. have a good day there in chicago. that's it for today's "worldwide exchange". still to come, "squawk box" is coming up. hope you have a profitable day. [ male announcer ] whether it's kevin's smartphone...

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good morning, everybody. chicago fed president charles evans says there are a lot of reasons for more easing. pimco's bill gross says the qe3 is almost a done deal. but that's not exactly what st. louis fed president told us yesterday. republicans are showing love for gold. is a return to the gold standard even possible 41 years later? isaac could rain on the gop parade. joe and andrew are off. less less and wapner have the call. good morning it's friday, august 24, 2012. "squawk box" begins right now. good morning let's get you up to