you're watching cnbc's "worldwide exchange." i'm ross westgate. the news this morning, shares plunge, latest european car registration data shows shares of fiat down in april. volumes expand for the first time in 18 months. a smaller than spkted drop in third quarter net profit thanks

to higher state rates and cost cuts. and beppe grillo tells cnbc who will win the next italian election. the leader of the five-star movement says opposition to the old guard is spreading like a virus. that and much, much more in our exclusive interview. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. a warm welcome to you for the last "worldwide exchange" of the week. plenty to get through. some kind of interesting things we've got coming up here. we kick off with italy. five-star movement lead er bepp grillo is telling cnbc he'll win the next election. we'll get more on that from jules in rome where she's been

conducting that interview. right. before that, though, let's tell you some of the other things we're focusing on. the u.s. federal reserve could begin pulling back on qe3 this summer and end its bond buying altogether later this year. that's a call from mr. william., more critics of abe-nomics, latest data showed machinery orders smashed forecasts up 14.2% in march. manufacturers will likely stand the prsh your in the second quarter. japanese companies are reluctant to bump up their capital spending preferring to wait for the significant exports. and the president xi jinping

is reportedly pulling up more reform to give it a boost. this is likely to give local governments more taxing power and become less resilient on land sales. fear of creating property bubbles and piling up government debt. the reforms will likely be announced later this year. beppe grillo has been speaking exclusively to julia. he says he's going to win the next election. jules, tell us more. >> thank you very much, ross. he did tell me he's going to win the next election. but if you look at the poll readings, he's slipped since the election results, the latest poll suggest he has around 22% of the vote. mr. berlusconi is taking around 29%. so as far as beppe grillo has to do some work between now and whenever he sees the next election coming. there's a few reasons for that. one of them in particular, he was criticized for not being

unwilling to negotiate with any of the other parties, in particular, mr. bersani of the democratic party to try and form some kind of coalition. i asked him about this and whether in hindsight actually he would have been better to support a minority government even if the only thing that came from it was electoral reform. this is what he had to say. >> translator: no, no. it's a trick. it's not true. there never was a deal. they snubbed our movement. we're the first political force in this country. bersani didn't come to me to ask me to create a joint government against berlusconi. no, he said give us some of your votes, some of your senators so that we can govern without you. then they used the trick of saying, come on, let's get together. but they knew we had to say no because our statute states clearly we don't make alliances. >> one of the other concerns is whether he's lost control of his

party. many of these parliamentarians were chosen by internet ballot. he admitteded openly at the election that he hasn't met a lot of his mps. he seems unconcerned about that. he talked about it being a virus that will continue to spread. when i spoke to him back in february, he said that the movement was coming to the uk. bearing what's been going on in the uk the last few months, i asked him whether he had met nigel of the uk party. this is what he said. >> translator: i've never met nigel feraj. i followed him online. he is an extraordinary or rater. he founded his own movement, which is going very well. he's a real euro skeptic. you see, in england, they don't have the euro. they want a referendum and they will have one. cameron wasn't wrong when he said he would hold a referendum. staying in europe for them isn't

convenient. they have their stock exchange, their pound, their fiscal paradises, their fiscal treatment. so it's clear they have everything to lose from europe. it is not cameron who decides. it will be the english through a referendum. this looks to me like real democracy. i was impressed by feraj when i heard him speaking. >> i think his comments are interesting in that he calls them true euro skeptics. i want to talk to you more about his views on europe. i think this is another thing that is very decisive if we end up going to another election in the not too distant future. my sense is that he's softened towards that. the question is, where does he go from here? >> it's an interesting point, jules, just picking up on that. would he be in favor of italy staying in the euro if they can't get what they want from

policymakers? would he be in favor of actually italy flexing its muscle? this is a country that is too big to bail, too big to fail, they actually are probably in the box seat if they wanted to be. you're right. and the sense that i got from my conversation with him is that he recognizes that in that italy does need to recognize its own power in this regard. remember, during the election, he started off saying we should leave the euro. then it's become a referendum. now he's talking about a consultation. so my belief is that he's softening his tone on europe, perhaps not as much as what we're hearing from the likes of greece and that they are willing to renegotiate within the eu. but my sense is that he's softening his tone on europe, he's understanding more of the need, perhaps the negotiation. >> yes. why do you think that is? >> well, i think now he's gone to europe. i'll tell you more of the interview later in the show when he talks about having been to

extrasburg, yet he's critical of running of europe. but there's a greater understanding of how it works. i think he's just met more people and is growing, to be honest. >> yeah. he's on a journey like everybody else pps. >> yeah. >> is it raining there? >> it's always raining. >> have you ate much pastur while rur there 12347. >> peter. no, i happen. i'm opting, peter. >> could you switch to pastor, please, because you'll help out this next company i'm going to talk about, barillo. maybe jules can eat some between now and the next time we speak to her. i'm afraid the italian economy

taking its toll on the barilla. citing falling sales in italy. italy surprisingly or unsurprisingly makes up 40% of global sales of barilla which makes bread and sauces. fiat marks the first increase since 2011 on vehicle sales with a 10% rise in registration. peugeot continued to struggle matching fiat's 10% dip. >> sixuan is with us. >> most asian markets wrapped up

the week on a positive note. volumes were thin with hong kong and south korea shut. the shanghai composite outperformed ending stronger by a strong 1.4 had% today and managed a third straight weekly gain. property developers led the way of investors on the cheap. sources say xi jinping is in charge of setting up new reforms. and the nikkei 225 reversed weakness and higher by 0.7%. more credit to abe-nomics for helping to revive japan's economy. as for the market movers, hitachi shares gained over 3% on operating margin forecasts. renesas soared by nearly 16% today. overnight, the company announced it would team up with a belgium

research institute to develop a communication technology. the biggest loser was nippon glass. the glassmaker forecast a net loss of over $200 million this year due to declining sales in europe. in australia, resources lost ground from the past few sessions. the asx 200 gained a modest 0.3% today. back to you. >> sixuan, thank you very much indeed for that. enjoy singapore. right now here in europe, we are weighted to the down side as you can see. five to four, advancers outpacing decliners. right now, the ftse 100 is a meandering week, really, for european stocks. the xetra dax off 0.22%. the cac 40 flat, the ftse mib up 0.15%.

as far as bond markets are concerned, yields on italian debt around that 4% mark, they are lower 3719%. looking at this spreadwide, people suggesting that we could actually -- that's out to about 60 basis points because the italian political situation looks more steady. we'll keep our eyes on that. treasury yields have fallen. down yesterday 1.87%. we were at 1.92 at the beginning of the week. we'll keep our eyes, of course, on those comments, as well, from john williams. and as far as currency markets are concerned, the aussie/dollar, 97.38, down 11-month low, being down over 2% this week. sterling/dollar, 1 is.5244. dollar/yen, 102.50 is where we stand. and not far away, of course, from that 4 had 1/2 year high of 102.77. euro/dollar, 1.2869, pretty much

near the six-week low. this week marks the first anniversary of one of wall street's highly anticipated share listings. facebook has yet to return to ipo levels, the social network is pinning hopes on the pc to smartphone shift. 36% of its ad revenue in the fist quarter came from its mobile business. so competition mounts with the likes of pintrest and facebook, are teenagers growing out of facebook? join the conversation. get in touch with us. e-mail us, tweet us, as well. you could tweet kelly, as well. she'll still want to get those. meanwhile, billionaire investor carl ikahn is up in arms. can he win this battle?

more when we come back. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines

while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

all right. on today's show, this weekend marks the one-year anniversary of facebook's ipo.

doin' vesters give the stock a like? we'll take a look at 111:30 cet. carl eye khicahn will be wi us in the next half hour. what will this 18-year-old spend his $11 4u7b,000 grant on. find out at 11:35. we'll meet andrew bakken. it's pink, it's pretty, it's barbie's dream house. we'll bring you a tour of the life-sized new pad in berlin. does it come with a life-sized barbie? don't know. and on a programming note, please make sure to tune in in an exclusive interview today with credit suisse's ceo brady dougan. it will go down nicely with fish and chips.

dell reported earnings that fell shy of market expectations, but revenue beat forecast. the strength in its business but it did not provide an outlook for the second quarter. jcpenney says it's coming back despite posting further losses. it reported a net loss of $238 million in the first quarter, more than twice the amount it lost last year. the company said it had taken steps to win back customers but has warned it will take time. jcpenney shares continue to fall in after hours trade. and molar-maersk has reported a net profit of $790 million in the first quarter. earlier we spoke to the ceo who admitted 28 ships are idle around the world because of low levels of business. >> we have laid up or lidled

approximately 28 vessels at the end of the first quarter, 28 vessels around the world. that is, of course, because the market is down at the moment and we have to adjust the fleets to that. we do expect the markets to pick up a little bit in the coming quarters and that should be -- that should be justifying some capacity inknow. but i have to say that the big vessels will come, we're bringing in now the release that will replace old fashioned tonnage that we'll give back to the time charter partners or scrap or put into smaller trades. so that is i would say normal circulation. but at the moment, you are right, there is a need for more capacity in the asia/europe trade. >> is that a false hope that recovery is going to take those? because if you look at what the big mining companies are doing, they're still cutting back even

in the past week. we've had glencore xstrata muscling for another project. it seems to me you might be banking on a false hope. >> yes. we're not banking on any hope. i mean, the recession in europe seemed to be going on with no diminishing trends. but the fact is, you know, when i look back at the last five years, we've grown our equity from $24 billion to $39 billion paid increasing dividends out to the shareholders, having good runs in a cyclical business like ours in a downturn. so i think each company has to find its own ways out and make sure they're competitive and that's wa we're trying to do. i'm pretty optimistic that we'll do well with but, of course, the economy is difficult at the moment. and be sure to tune in as we discuss more with mollor-maersk. sticking with the naval

industry, the maritime piracy keeps evolving. while a number of incidents has diminished in southeast asia, shipping companies are not leaving anything to chance. that's what sri found in singapore. >> it's a far cry from jack sparrow. pirates of today are now organized and they're deadly. the assault rifle rocket-propelled grenade launchers and gps are weapons of choice. sub-maritime mugging is a scourge that has driven insurance rates higher. statistically, the seas off the horn of africa constitute the main hunting grounds. certainly compared to the indian osha yap, we've seen a dramatic reduction over the last few years in ship boardings, hi

hijackings, it's more a low spectrum of maritime crime that's persistent. >> the tsunami of 2004 dealt a severe blow to piracy networks in the region. cooperation between law enforcement agencies is paying off and has culminated into government to government cooperation. still, indonesia's coastline remains treacherous with shipping with maritime incidents hitting a peak last year. >> in the news of the particularly complex environment, the number of regions are dealing with. not surprising that remains a challenge. sy expert say the authorities cannot fail to drop their guard in the fight against maritime policy, especially around the region's key sea line, the strait of melaka, transit route for almost a quarter of the world's oil. >> and there's a new sheriff in

town. uss freedom hosted to asia for an a-month deployment. shipping companies, however, are advised not to leave anything to chance. >> i think the crime you see ever evolving in a particular area has more law enforcement and more naval presence than you'll find being shipped to an area where there's multi or both. they may move to a port that is of lesser restriction or lesser tracks. and it will always be moving. and i think in light and oil and any other crimes, they will always look for the place where complacency is down. >> admittedly, it's practically impossible for the naval forces to patrol every area mile of pirate infested waters. that's why shipping companies feel that they have no choice but to take matters in their own hands and defend themselves. >> meanwhile, billionaire investor carl icahn is heading

up for another brawl. carolin has been looking ahead in zurich. hi, carolin. >> good morning to you, ross. carl icahn has been very busy these days. today not about dell, but about transocean. ahead of this adm, which kicks off at 5:00 p.m. later today, the two sides have been exchanging very heated arguments and trading barbs over dividendes and over the board nominees. let me tell you in a little bit more detail about what's actually going on. carl icahn wants the company to pay $4 a share in dividend. transocean says, look, we're only going to pay $2.24. that's because we want to preserve the capital and keep up credit ratings and we want to invest some of that in our operations. now, the other sticking point is the board nominees. carl icahn, he wants to replace

three board members, including the chairman and, ross, this is where it gets tricky because actually last week, transocean's chairman said that he was going to step down if he's re-elected later on today. by some, this is seen as a victory for carl icahn. others say this is simply a strategy for carl icahn's board nominees not to be elected. we'll see how this pans out later on today. let me tell you what the proxy advisers are saying about this. they're actually split. they support at least one of carl icahn's nominees, but on the other hand, they oppose the higher dividend that carl icahn is proposing. could be a very heated meeting later on tonight. >> yep. meanwhile, carolin, away from that, shareholders have driven up a shake up at glencore, as well. what exactly is going on here?

>> that is a very interesting choice, isn't it? tony hayward, three years ago, he was voted the most hated man in the u.s. over bp's involvement in the oil spill off the gulf of mexico. but keep in mind that he's actually been an independent director with glencore since 2011. and his chairman is really going to be in on an interim basis. from now on, he's going to be running the nominations committee and we understand that a chairman should be selected before the end of the year. but this follows the shareholder resort at glenn core's shareholder meeting yesterday. 81% of the shareholders wanted the current chairman to leave the company along with other xstrata managers. he was heavily criticized by these shareholders for not getting the best deals in this glencore/xstrata merger and also for backing this controversial retention package.

>> carolin, good stuff. thanks very much, indeed today. extraordinary the moves going on there. meanwhile, a new man at the helm driving the stock elsewhere. in india, shares of gm financial up substantially on news that vickram pandit is taking a stake in the company. reportedly, vickram pandit is paying $100 million for the shares of the banking firm. it will appoint pandit as its nonexecutive chairman if successful. the contest to stardom hits the screen this week. denmark's entry only teardrops is a hot favorite to win the title. bonnie tyler is just outside the top ten favorites. and greece initially said they wouldn't take part, but now have joined with their entry alcohol is free, a met for for their

crisis-hit country. i'm guessing it's an ironic message. meanwhile, footballer david beckham is hanging up his boots. he won titles in four different countries. beckham will face champions. before calling time on his career. >> i've achieved everything with every club that i've played for, played for my country 1115 times, been runner up twice, world player of the year to amazing footballers. i'm very proud of that. >> what will he do next? we'll have to look after him. still to come on the show, if the beckhams are looking to add to their property portfolio, they may want to take a trip to berlin. what do you think, mr. and mrs. beckham? we'll take a look at barbie's

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[growl] can help you do what you do... we used to live with a bear. we'd always have to go everywhere with it. get in the front. we drive. it was so embarrasing that we just wanted to say, well, go away. shoo bear. but we can't really tell bears what to do. moooooommmmmm!!! then one day, it was just gone. mom! [announcer] you are how you sleep. tempur-pedic. the headlines as well from around the globe, the hawks are out. stocks on wall street a little

lower. worse than expected u.s. data weighing. shares down heavily after the latest european car registration data shows the italian carmaker sales in april were down, but volumes have expanded for the first time in 18 months. defying expectations, mollor-maersk had a smaller than expected drop in first quarter profits. and beppe grillo tells cnbc he will win the next italian election. that and much, much more in our exclusive interview. tepid is a word you can use to describe the european markets today. the ftse 100 down 0.2% as well as the cac 40.

xetra dax down 0.4%. we'll keep our focus on volkswagen, group april sales up 7.2% on the year. so compared favorably from what we heard from fiat this morning, as well. january to april sales up 5.3% on the previous period a year ago, as well. on bond markets, italian yields are lower, 3.92%. we'll watch that spread over the coming weeks between spain and italy. some people say that might widen out. u.s. treasury yields, 1.87%, as well, after going from 1.6 to 1.9 in seven trading sessions. and on the currency market, dollar/yen, 102.58. not far away from that 4 1/2 year high that we hit of one -- 1 102. euro/dollar, 1.2865 down near a six-week low at the moment. dollar index is up near a ten-month peak at the moment.

and have you got any comments? e-mail us, worldwide@cnbc.com. other news, the oil pricing agency plant has been in lockdown following suspected price rigging. european commission is investigating whether platts received manipulated price emissions from stat oil, shell and bp. they have been collecting data from laptops. the investigation could look at data as far back as 2002. a super market deal in the uk has been announced. it's a partnership to give shareholders certainty with their money. >> essentially, it's a cost plus in terms of fulfillment and they

know their costs and we've obviously got great clarity on that. so there's huge certainty here. it's their technology and, of course, rigorous -- morrison's products going through that system. and i think that's the beauty of this deal. it gives customer certainty because they have the best platform anywhere. we know wa we're going to spend and they could be a black hole for many retailers. >> and the stock news up 25% after gaining that contract. plenty of focus today online as the school year draw toes a close. this is in the united states, that is. report cards are in for some of the central banks, as well. find out who passed with flying colors, who didn't make the grade.

ecb's mario draghi won't like this. and gold doesn't seem to get anywhere with investors yesterday. some analysts now see more down side. plus, don't forget you can follow us on twitter@@cnbcworld, as well. despite tight immigration controls and its slowdown in the economy, high flying professionals are looking to relocate abroad. but britain could steal america's thunder with thousands of opportunities with thousands of people moving to london because of its technology sector. who would have thought? heightened global professionals on the move. joining us to talk about it is the chairman of hydrogen group. good to see you. the uk. a fast-growing technology. that's kind of new. >> yes. over the last few years, there's

been many start-ups and that's gathering momentum in the uk. ite been a combination of factors. some of the traditional skills around the uk and later technology is a combination of media and consultancy skills coming together with technology skills. and the uk has those in abundance with the media and telecom sector, as well. so it's that convergence driving the technology sector. >> and what about -- i speak to a lot of people. a lot of people want to hire. the big gripe is we can't get the right people. either at home or -- it's so hard to get people to come here and get them through the visa process. >> a lot of people want to come is wa our survey shows. people aren't able to come particularly from the european nations. we're seeing a lot of people come from germany and other areas with their skills. it is very attractive to people. it is more difficult for, say,

u.s. citizens to come to the u.s. and asian citizens. but companies can transfer those people and its challenge. >> yeah. we've got, you know, the top ten long-term stay locations. what is number two before britain took it over? >> australia. they've moved to three. so they've not moved that much. >> and what's happening with the -- besides the uk, with asian relocations? >> well, singapore is still a very attractive place to move to. and they've moved up, particularly in the technology field. the government has made it very attractive for companies to invest there. if you're a company and you're looking to expand your business, you'll look at where you can get the right talent and get the right people. singapore is trying to position itself as a technology hub

making it much easier for people and skills together there and the finances to back it up. >> yeah. which is kind of interesting. what about, as well, is there a difference between sectors? >> yeah, there is, actually. women move on average ten years younger than men and more men move as you might expect later in their careers. but, yeah, what we're seeing is companies trying to make it more attractive to attract bright people from either sex to, you know, complete their roles. >> what is the biggest barrier to relocation? >> biggest barrier to relocation. the biggest single barrier to relocation is actually family, as you might expect. visas come highly and just moving away from friends and family seems to be the biggest things that stops people from doing it. interesting, 98% of the people who have relocated would recommend it to their friends and family to do the same. >> good to talk to you. interesting stuff. thank you very much.

and even barbie is relocating. she's setting up home in berlin with a life-sized dream house. what do you think of that? >> yeah, no, it's quite a place. >> barbie has gone there. this dream house comes complete with a giant pink heel and glitterizeder. i have no idea what a glitterizer is. but not everyone is thrilled about the new diva blondie in town. >> in terms of rising houses in the german capital, a new and temporary piece of real estate has opened its doors in the heart of berlin. it's pink, posh, glittery and attracts mostly young girls. it's called the barbie dream house, a 27,000 square foot interactive experience for fans of the iconic dolls. organizers describe it as a seemingly endless walk in

closet, a life-sized replica of barbie's malibu hole. >> it's a global phenomena. they all love pink, they all love barbie as a toll. they all love barbie as a toy. now hopefully they love the dream house to walk into. >> the house is equipped with a toy kitchen, a walk in refrigerator and piano. here, the princesses of the real world can slip into the role of fashion models or pop stars. it comes equipped with a villa and a cat walk. the entertainment includes virtual cup cake and a high tech bracelet that interacts for touch screen. but not for everyone in berlin, this is a childhood dream come true. a local women's right group says the attraction sends the wrong

message and it calls the pink-ification of young girls. >> the barbie dream house is the wrong role model for girls. it's all about being beautiful. >> despite the criticism, this dream world is expected to attract up to 2,000 visitors a day, possibly helping to lift the brand after worldwide growth sales were down 2% in the first quarter of this year. barbie for her part will pack up her enormous shoe and dress collection at the end of august when this paradise will be sent on tour to other european cities. >> there you go. still to come, the original famous like barbie or heading overseas, it the come with

significant tax adjustment. how to ease that burden for u.s. residents who are now in the uk. more when we come back. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

the white house is still in damage control mode after barack obama's toughest week since winning re-election in november. he served under president obama and george w. bush. the house ways and means committee will hold a hearing on the internet revenue services screaming to conservative groups at 9:00 eastern today. meanwhile, as cash scrapped governments look for new ways to raise revenue, policymakers have been cracking down on loopholes overseas the. and mexico says it could have a serious impact on american residents living or relocating abroad. joining us is david scott. the firm recently launched a u.s. division to help investors living in the uk comply with these new laws. thanks so much, indeed, for joining us, david. we just heard about the uk becoming a really attractive place for people to relocate.

what is -- just explain what factor is and, you know, why it's changing the game in a simple terms as you can. >> to try and keep it very simple. we can be here for hours. essentially, legislation was brought in to make sure that countries across the world report on u.s. citizens living abroad in terms of what their tax income is or whatever so that the irs do actually get a much greater view of all the residents or u.s. citizens living across the world. so each country where they are and the organized that managed their money has a responsibility to report that information and then goes to the irs. >> so if you were an american working for the bank here, you would be paying income tax on your earning eggs to the uk government, right? >> yes. >> so the u.s. government now wants to know what you're earning in the uk. is that what you're saying?

so then, hang on, then what else? where is the extra tax dollars and the complications? >> i think we've always had the obligation to pay off the tax in the uk. there's a tax liability in the u.s. and to a certain extent, that can be offset one against the other. you can't pay tax twice. there's no money to live on at all. so i think most investments, all those investments have been reported maybe as silly as it could be. so the irs are trying to make sure that the organizations that hold the money or invest the money for u.s. citizens living in the uk do actually report that income to the irs. and these organizations face quite severe penalties if they don't report that properly. >> what -- what do you do now with your service?

that is different? >> well, in a way, the biggest problem that the u.s. citizens living in america had were they got things organized, but when they came to invest their money, it wasn't invested in a wa that was geared up to reporting. because, obviously, the difference and the consequence from that tax hike. but the form in which they've been reported, they're struggling to find an organization that comply with the u.s. reporting. so what you're trying to do is combine the tax and they still have the most money, right? so what are you doing on that side? here is the thing. equity markets still sort of rallying? what are you doing with your current money while you work out there? hopefully they will have some tax liabilities.

>> hopefully to try and create some gains. even floating around in the background and nonetheless, people still felt i want to be in equity base the return from cash was so low and i want to get into dividends. so there is quite strong sentiment to be in equities and obviously try and make sure that we've delivered the returns that they want. and along with that, make sure that we report it in a way that the irs can know what gains they have made. >> david, thanks so much indeed for that. >> not at all. french president francois hollande has vowed to pull europe out of the hole. pope francis has demanded

holidaymakers and policymakers demand the cult of money he says is making life worse for the poor and turning human beings into expandable human goods. he said money had to serve not to rule. it comes as the vatican announced it would publish an annual report in a bid to be more transparent. and the greek prime minister is calling for more chinese -- signing deals like telecom and shipping. china has invested in greek ports and is eyeing more state assets set for privatization. samaras is leading a trade delegation during his four-day visit to the mainland. today he's in shanghai. china hit back at the eu warning over retaliatory action if it follows through with a probe into the trade packages of chinese telecoms. >> translator: if the eu insists on launching a probe, china will

take full measure toes protect its interesting in line with the world trade organization and chinese laws and the eu side that stirred up the friction should bear the consequences. earlier this week, brussels said its set to launch an investigation into telecom supplies. beijing says punitive measures would hurt both sides. and japan's major trading houses and its shipping company are set to invest in a natural gas project in the u.s. toshiko has the story for us from tokyo. hi, tushiko. >> hi, ross. mitsubishi, nippon will take a combined 33% stake. the total project cost is estimated at $10 billion and the japanese companies will invest around 1 billion. this project plan toes produce 12 million liquified tons of gas

a year by 2018 and they will likely receive 8 million tons a year. that's roughly equivalent to annual japanese demand. the lng produced in this project will be sold at prices linked to the u.s. market, which are significantly lower than the price they currently pay. fuel gas for power plants have been rising since most nuclear plants in japan are still down after the fukushima accident in 2011. the u.s. doesn't allow exports of natural gas to nonfda countries including japan as of now, but it will likely ease that restriction in the near future. back to you, ross. >> thanks for that. have a great weekend in tokyo. meanwhile, in singapore showing off their latest collections, what are the hottest trends?

>> it's not paris or even new york. but it is where some of the world's biggest designers are focused. asia. >> more future. >> the fashion icon chose singapore for the unveiling of the latest election this month. >> this year, singapore is hosting all the fashion this week. of course, everyone is dressed to the nines. i'm wearing in good company. it's a singaporean label. >> theater from bangkok is my designer. >> mcl. >> i'm wearing kavoni by michael d. >> i'm wearing maria diegel. >> i'm wearing a neon pepham jacket by a designer called christopher dress. >> the world's fashion houses

are looking to asia where younger shoppers have more to spend to spruce up their wardrobe. >> there's a lot of wealth coming into the region. there's al of people that are being employed and just a lot of personal consumption. so i think it's a really good growth story. whereas in the u.s. and europe, it's a little bit of an aging population. >> and for many labels, singapore lies in proximity to china. china's retail market is expected to overtake the u.s. by the world's largest by 2016. by then, it will be worth a whooping $12 trillion u.s. wa exactly does the does the asian fashionist want? >> everyone wants to see something new. that is the first question. what is new? >> but as more and more shopping moves online, designers will have to adjust their strategies. >> i think in general, all the big labels are start to go think about an online strategy.

i think it's obvious that online is the next channel to go to for any brand. >> with the demand for high fashion on the rise in asia, it will continue to be a destination for ought after labels. >> so let's give you a look at what's on the agenda in asia on monday. i'm afraid we dope have any more shots of that. but anyway, we'll see whether thailand's strong currency has an impact on economic growth. we have q1 gdp. in india, full year earnings are due from adani enterprises and coal india. still to come, are you growing out of love for facebook? with it's what we've been asking today. jason tweeted he has a dislike for facebook because it's no longer a social hub, but a

consumer spy. do you agree or not? keep your responses coming here. get in touch with us, e-mail worldwide@cnbc.com or tweet, @cnbcwex. we'll talk more about facebook and heading back to roam rome to bring you more of julie's exclusive interview with the five-star leader in italy, beppe grillo. he says it's time for italians to forget berlusconi once and for all. >> translator: italians need to understand, we need to move on from berlusconi. he's like a television add veteran, a hologram. sometimes it's like he's not there. >> berlusconi is just a promise, a marketing exercise, an advert. we need to rebuilding this country from its roots.

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welcome to "worldwide exchange." i'm ross westgate. fee yot came in ahead of

expectations, but there was some good news. revenues did beat for dell earnings. and beppe grillo tells cnbc he will win the next italian election. the leader of the five-star movement says opposition to the old guard is spreading like a virus. that and mauch, much more in julia's exclusive interview. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> okay. we close softer yesterday in the u.s. welcome to the start of your global trading day. we are called above 22 points on the dow at the moment. we're about 6 points above fair value for the nax dat dak and the s&p 500 is just about 2 points above fair value. we did open higher and then we went down towards the close.

ftse cnbc global 300 just bouncing off the session for their losses between 10 to 0.5% for european equities. pretty flat for the ftse. the ftse mib is just about in positive territory this morning. the question is whether there's a debate of that 60 basis points as we appear to have some political stability in italy. we will hear, though, from what beppe grillo thinks, as well. aussie/dollar, 97.33. we're down to an 11-month low, over 2% so far this year. dollar/yen, 102.61 pretty much on that 4 1/2 year high of the dollar against the yen.

let's recap the asian market. here is sixuan. >> asian markets wrapped up the week on a positive note. the volumes were thin with hong kong and south korea shut for budda's birthday. they have managed third straight weekly gains. property developers led the way as investors buy on the cheap. sources say sxi jinping is looking at reforms including overhauling local government. and the nikkei 225 reversed early weakness and higher by 0.7%. more credit to abe-nomics for helping revive japan's economy. hitachi shares gained over 3% on operating margin forecast.

soaring by nearly 16% today. overnight, the company announced it would team up with the belgium research institute to develop a new communication technology. but the biggest loser was nippon glass, shares on the decline down nearly 5%. the glassmaker forecast a net loss of over $200 million this year due to declining sales in europe. in australia, resources made back lost ground from the past few sessions. >> meanwhile, the u.s. federal reserve could begin pulling back on qe3 this summer and end its bond buying altogether late this year. that's a call from john williams, president of the san francisco federal reserve bank. he doesn't have a vote at the moment on the fed's policy setting panel this year, but what are investors to make of it? patrick from societe generale joins us now. thanks for coming in. the thing about it here, is you

see much more inline with the thing of bernanke himself. what happens if we do start thinking that it may finish in december? wa does that mean? >> i think it's expected. let's be careful not to make too much of this. the only example we have is being treated exactly from -- and with the impact on the market. it knows the steepening of the yield kurchb. rates are at 3.5. >> 2.75.

so negative interest rates and a consequence of these will be further on side. it's a new aura for assets. >> it does raise the spec az for equities. >> it has a point of view impact. >> if you go up 2.78%, as well, there is a danger as yields get higher that it causes something of a stampede out. so that is the dubber -- i don't know how you point to that risk. >> that's very true.

we consider u.s. markets could continue to go up with an increase interest rates from 75 to 100 basis points. it's on the short end. it goes along with economy growth. >>? it's for the right reasons. >> exactly. >> and it's slow. >> exactly the analogy. both european equities which are still -- >> the dollar is going to continue to strengthen. >> absolutely. to spain, portugal, greece with the continuous rally. fed is trading still now at the discountable value. >> all right.

patrick, good to have you. more to come from patrick. five-star movement leader in italy beppe grillo has told cnbc exclusively he's gone to win the italian election. he says the country's parties have become history in less than four months. >> they're afraid. afraid of us. i say we will win the next election. but if your companies want to come here, they'll be welcome, but only if they're honest and transparent and run by decent folk. >> beppe grillo talked to julie. she is with us in rome outside the coliseum.

>> he was talking about leaving the eurozone. he zntly talked about the idea for referendum and has now heard a consultation. my understanding is that actually he is softening his take on that. listen in. >> translator: i want to see languages. every law is translated into 11 languages. 11. we can't even agree on a common language which could be english. no, we stick with 11. and we have three computer languages. i once went to speak in the european parliament. there was no wi-fi, no internet connection. in the european parliament, nothing. and then we have two parliaments. they ask for sacrifices from us and then they build two parliaments, once in extrasburg

which costs 400 million euros for people who only work four days per month only to please the finch. then they ask for sacrifices. it's absurd. >> we've thrashed about the ideas further, but his bottom line is he needed more information on europe. i do believe that's a softening of tone around that. you can hear that in the next piece of the interview. actually, it led us on to talking about the italian press. that's in there, too. >> i want information. we don't have information any more. actually, the "new york times" came to interview and they published extracts of the interviews in newspapers twisting my words. most of them are integrated into this system aimed at saving is country. now the same people appear on our television screen to tell us how to remedy the disasters they caused. it doesn't work like that.

>> that, of course, is one of the key elements in beppe grillo's campaign. he refused to talk to the domestic press here. everything was done on the internet. that, of course, prevents some asking questions about his policies. it was problems with his current mps and some made the mistake of speaking to the press. the question is if he continues that policy, does that impact his hope if we do go to a new election? that's a key point here. ross, back to you. >> has anybody -- how much are people questioning the lack of experience? in some ways, that's a good thing, right? that's the attraction of the policy. now that they've been sitting in the italian parliament for a bit, you know, what is happening with that? >> well, i think that's a key issue here, too. and that's what we're seeing these problems in italy with the mps, disagreements over money that they said they would give back or not take .now some of them want to. so we really are seeing that.

and i think he's accused of not having clear policy. i think they may be a big picture, but he does have them. the problem is tying those down, the financing. just how is he going to implement them? ultimately, yes, it's a huge implementation surrounding beppe grillo if he does go into that in the future. >> thanks for that. i do apologize. there's some interference. apparently the weather is not exactly brilliant. we'll stay in italy. fiat is lower. despite a near 2% rise for eu sales, the first increase since september 2011. volkswagen is boosting those with a 10% rise in registration. peugeot continued to struggle matching fiat's 10% drop. it's worth talking about the assets. volkswagen up 10%. pageo down 10%. it's sharp within sectors.

>> obviously, certainly, we're fine right now. the most biggest value. and what happened in greece in the last few days is very, very interesting. so in the greek equity market, greece right now trade up 5% with value. you start to rebalance the risk. but it's to continue to share price. >> more value for jcpenney after its first quarter figures. although the retailer insists the worst is over. investors aren't buying that

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if you're just joining us, a recap of the headlines today. more fed officials are called to call off qe. car registration in europe grows for the first time in 18 months with sales atrophiat and pageo stalled.

dell profit falls as the takeover battle moves open. there's been a light railway accident with over 50 people injured according to police in hong kong. so just keep your eyes on that. dell reported earnings that fell far sharp of market expectations. offset declining pc sales. it does not provide an outlook for the second quarter given its announcement to take the company private. jcpenney claims it's coming back from the abyss despite posting further losses. the department store reported a net loss of $348 million for the first quarter, more than twice the amount it lost last year. it had taken steps to win back customers but warned it would take time. jcpenney shares continue to fall in after hours trade. and by the end of this week,

90% of the s&p 500 will have reported. so what is the corporate scorecard for this earnings season? patrick, how would you rate what you've heard? >> what is quite interesting is that in the u.s., also i would say roughly in line sometimes will be disappointment side. on this side, we see there is still a lot of liberation. why? because companies deliberate quite a lot and reduce their cost. this is a positive. and you have the sentiment on the other and, obviously, it's deliberate. we currently have 25% for the company. there is a lot of draw and let's

keep in mind that equity valuation is clinically related to re and not to the margin. >> that's a good point. good point. patrick. mollor-maersk beats expectations, but admits many of its ships are sitting. will the market pick up? we're going to talk about the sector when we come back.

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moller-maersk has had a drop in first quarter profits. earlier, the ceo told us he doesn't expect the market will pick up. >> well, at the moment, we have laid up of idled approximately 28 vessels at the end of the first quarter, 28 vessels around the world. and that is, of course, because the market is down at the moment. and we have to adjust the fleets to that. we do expect -- we do expect the market to pick up a little bit. >> joining us for more is robert joinstone. robert, thanks for joining us. we just heard there what the ceo said. i'm looking at your notes. in march you said on mo

mollar-maersk. beware counting containers. i take it you're still skeptical. >> we are very skeptical. that industry is probably as weak now as it's been. we think it will actually get worse when you consider there's a lot more capacity set to come on to the market in the next couple of years at a time when growth is very weak. you're looking at about 8% of the market coming on to the market and you're looking at 6% coming on to market, again, during the growth maybe more like 3%. so it's very difficult to see a bullish outlook for this industry any time soon. >> so just how exposed are we now to the order books? >> very exposed. the order book is there, it's coming. and, as well, when you look beyond orders which have already been placed, shipping lines are still continuing to place orders

for new big ships. so the order book is continue to go build. and as i mentioned, as long as growth remains relatively benign, the supplies and unbalance in this industry will become worse for years. >> i fully agree with you. what kind of forecast do you take into account for china and global trade? obviously, we see global trade slowing down. there will be some question mark. how do you factor this in in your forecast, please? >> well, the china issue is a very big one. if you look at the asia to europe trade, that is the single most important trade lane. they obtain higher revenues contained on that lane than any others. so in previous years, we've seen growth on that trade lane with high single digits or maybe even low double digits on some

periods. at the moment, that growth is down to flat or even negative. so it is a big issue and it's also an issue because that trade line is so long, it actually ties up a lot of container shipping capacity. so it's a weak growth on that trade lane to have a disproportionately negative impact for the industry, unfortunately. >> i presume with this sort of pricing and the weakness, you could get some m&a here and that would take out some capacity. is that going to happen? >> it would happen in a relatively limited extent, for example, two container shipping lines in germany. you may see some m&a beyond that, as well. the problem we see is we actually don't think it will make that much different unless you see m&a involving the largest plays in the industry such as maersk, msg and magm. we think that's unlikely. the industry stays fragmented at

the moment and m&a among the smaller plays in the industry will not make that much difference in terms of the concentration. so we actually don't see that as too much of a point, unfortunately. >> robert, thanks very much, indeed, for that. patrick, good to have you on today. >> thank you very much. now, this weekend, believe it or not, it's gone quickly. it marks the first anniversary of one of wall street's most highly anticipated stocks. you might have guessed it from the pictures. yes, the facebook ipo is a bit botched. shares immediately tumbled is and resulted in a $10 million fine for nasdaq. so one year on, we've been asking viewers today, have you been falling out of love with the social network? morgan from california tweeted,

he thinks instagram is a better app to keep your responses coming. they have changed around substantially since they voted is the amount of money they're getting from mobile. any comments about that? e-mail us worldwide@cnbc.com, tweet, @cnbcwex or direct to me, @rosswestgate. still to come, we'll take a look at how facebook is boosting the bottom line and speak to a very young up and coming entrepreneur, as well. meanwhile, a remind er, we'll leave you with a look at how the futures are trading.

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you're watching "worldwide exchange." the hawks are out. wall street is a little lower, officials calling for a tapering off of qe. fiat shares down heavily. sales of the italian automaker off 10% in paper. dell earnings are short of expectations. there was some good news to take

the company private. revenue beat the street. plus, beppe grillo has told cnbc he will win the next italian election. the leader of the five-star movement says opposition to the old guard is spreading like a virus. that and much, much more today. if you've just joined us stateside, a very good morning to you. the stocks have closed yesterday for a change. today, right now the futures are pointing to a higher open. the s&p 500 at the moment is up 4 points above fair value. the nasdaq at the moment, nearly 5 points above fair value. and the dow at the moment is some 411 points above fair value. the ftse cnbc global 300 is just down 12 points. we've got a smashing of green in europe and a smashing of red.

the ftse is up 0.1%. about 0.1% for the ftse mib and cac 40, as well. this weekend marks the end of wall street's most highly anticipated stock listing. it was then what was the botched ipo shares. while the stock has yet to return to ipo levels, the social network is pitting growth hopes on the pc for smartphone shifts. to mark the anniversary, julia boorstin has been taking a look at how the company really makes money. >> users connect and sharing because more time spent on the site means more apps can be delivered. ads like these on the right side of the page, they're valuable to markers because they uniquely

target each individual user. so the ads i see are determined by who i am, what i share and the links i click on. in 2012, facebook generated 5.1 billion in revenue. that's vast majority from ads. in the first quarter of this year, advertising revenue alone grew 43% to 1.25 billio$1.25 bi. new this year, facebook delivers ads to mobile devices. in nine months, smartphone apps went from zero to 30% of the social netted work's ad revenue. just like individuals, companies can set up pages to communicate with fans for free. and facebook can make money here, as well. >> coke can make sure fans see its messages and updates even more valuable to a brand is reaching friends and its fans. in coke's case, that's hundreds of millions of people. then there's a record number of people playing games on facebook.

topping the chart, farmville and zynga poker. the growing gaming economy pushed payments revenue to $213 million in the first quarter. in a smaller and newer business, the company is starting to take the revenue from real gifts. it's all part of one big strategy to keep facebook as popular as ever and to get people to spend even more time on the world's largest social network. >> all right, julia boorstin with a breakdown of how they make their money. the principal consumer analyst. thanks so much indeed for joining us. look, the big thing of course over the last is mobile. how interested have been with that development? >> i think mobile is without a doubt one of facebook's stories with its ipo. mobile provides a richer way to interact with people.

their way of interacting with facebook services is by a smartphone. it's been impressive. it's something they've blagd up as a danger point in the ipo with the ability to monetize mobile and they've clearly made solid progress on that front. as you said, 30% of total revenues are now on mobile. >> how do you expect that percentage to change? >> i think it will increase. and there is a parity to facebook to continue that momentum. more people are interacting with facebook on mobile phones. some on an exclusive basis. facebook needs to ensure that the advertising dollars go with that migration. >> meanwhile, the margins have been up and they have some investment. how are things paying off?

it's a little muted. it's still quite early days. they did flag it as one of the pillars of growth. and what i would have liked to have seen in their first quarter results, not so long ago, was more news on how they intend to develop that service. and they've been very quiet on that front, which was a little disappointing. >> what about the growth in active users is slowing? i think this comes down to like user engagement. how close is it going to be watching this number? there is a sense that as you go through an age cycle, in your

teens and early 20s, employment and jobs, time. is that how it works? >> yes, partly. you know, what happens is people aren't believing facebook is growing. the big challenge for facebook going forward is to keep people active and engaged. that's what advertisers want. now, the danger for facebook is people finding new social experiences elsewhere. in fact, instagram is a case in point. it's one of the reasons facebook bought the service. there's applications like what's up, there is a private social network which for older users might be more appealing than is facebook. >> stay with us. because we're going to talk more about entrepreneurship as the search for the next game changing entrepreneur continues. go founder of pay pal and investor facebook, peter thiel

has taken matters into his own hands. he set up his own fellowship to offer teenagers $100,000 and he moved to san francisco to come up with the next big thing. our next guest is the young man who is going to become a thiel fellow or is a thiel fellow now. andrew, thank you for coming. what did you have to do to become a thiel fellow? >> it's a six-month process, like many others, just applications. so i filled out a long application, didn't expect to get into the final round, there was a phone interview and then a final round in san francisco where they flew us there and -- >> did you have to smash out a business idea? >> yeah. >> what's your idea that you pitched? >> so the product has now launched, which i'm starting to work on in my fellowship. it's called bunchy. and it's a social funding platform for people who already have an audience for charities

and independence and creators to fund on their facebook page or website. >> how is it funding? is it e-commerce, social commerce, what is it? >> yeah. so it allows them to create a funding page around a project. so let's say a football club wants to raise money from parents or a musician wants to fund each of their gig webs so they put up a funding page for each concert they do and get their audience to contribute. it's a pretty open platform right now. >> how old are you? >> i'm 18. >> so you're going to go off to council. >> right. >> and, look, nick loshio made a bit of money. he's 17, i think. and is there a generation now where actually you're doing school and university is not what it's about, right? you get out there and start just doing it. >> yeah. i think the value for university in a lot of industries is

saturating, especially in technology. it's about what you've achieved and what you can do and wa skills that you have. and especially with the tech that's in london and many other cities, they're embracing skill and what you can do rather than, you know, what degree you've got and where you've studied. >> not easy to make it. it's a trend. >> yeah. i think this sort of innovation and creativity that's coming through and being driven by people like andrew so to be applauded. however, i don't think we should underestimate just how difficult it is to coming up with the next angry birds or the next facebook. it's enormously challenging. and i'd say to most young people think very carefully about this if you want to get into it. don't necessarily give up the day job or whip up your -- >> you're not giving up the day job, are you? you've been doing this while you've been studying, right? >> yes. that's what i've been doing. >> when do you head to the states? >> in a couple of weeks. i'm heading over there for the

first time and it should be very exciting. >> we wish you all the best and it's good to see some british colleagues emerge. i'm delighted to hear that. great to meet you. we wish you -- it's not a bad part of the world, actually, is it? i think you'll enjoy that. andrew, a thiel fellow. still to come, could dell's profit miss shake up the battle to take over the computer giant? we'll dig down into those figures when we come back. [ kitt ] you know what's impressive?

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dell has reported a huge profit miss falling short of forecasts. this as the billionaire battles to take control of the company he started. john ford has been tracking all the action. >> dell came out with earnings a little early this quarter and they were lower than expected with an asterisk. revenue came in higher than analyst had expected. $14.1 billion. earnings per share land at 21 cents when the street consensus had been 35 cents. dell came out with these numbers a few days early. they've been trying to release them next week to last night.

the big culprit to the fall is the pc business and everything around it. profitability in that division was down 65 %. dell getting a lot more into price competition in that group, trying to grow shares, something that they had stepped away from doing. this is happening within the context of micro-dell trying to take dell private and carl icahn fighting michael dell's propo l proposal. dell is coming out on the earnings call and saying we are not managing the end user computing business just one quarter at a time. the go private transaction and everything that's happening around dell not influencing the way they're handling that business, but they are trying to grow share. but they are doing that in a difficult environment where demand is being pressured by tablets, they said. they're counting on new form factors and touch coming with intel's chip due to be unveiled next month at comp ewe tech. counting on that to increase

demand, particularly they're hoping for demand increase among consumers. corporate demand they're saying isn't that bad, but among consumers and government the end user computing demand has been pretty aabout it busineabysmal. dell no longer giving guidance as long as this go private fight is going on. guys, back to you. >> jon with the latest on dell. thank you. jcpenney claims it's coming back from the abyss despite more losses, more than twice the amount from last year. the firm says it's taken stepping to shore its its finances and has warned it's going to take time. jcpenney shares continue to fall in after hours trade. and a reminder of the headlines, european stocks were following u.s. markets lower, but futures and stocks now up.

european car registrations grow for the first time in 18 months, but failed at school. as you heard, dell's profit has fallen as the takeover battle rages on. also some stories on follow on cnbc.com today, as the school year draws nearly to a close, report cards are in for some of the world's most intellectual bankers, too. find out who passed with flying colors and who didn't make the grade. plus, gold can't seem to get any love from global investors. but the worst isn't over for the precious metal. some analysts see more downside. catch it all on cnbc.com. follow us on twitter, @cnbcworld. what kind of note are we going to finish the week on? we'll get the preview of the trade dag ahead right after this. ñ

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beppe grillo says he will win the next italian election. confident man, julia. he is the only sort of strategic party that is not a member of the government at the moment. >> absolutely. he is directly in opposition. and that's the place where he wants to be. he said that he won't form any coalition with anybody else and he maintains that mandate. so either he wins outright or he remain necessary opposition. and we have to see how he continues to prove himself capable of how the party or the movement can prove themselves capable of being in that kind of position of responsibility. but one of the things that i tried to talk about, to clear up

some of the confusion over his views, one in particular is he's talked about the idea of nationalizing the banks here. i asked him about that and he said he had only talked about the idea of nationalization with regard to monte depasci, he wants to protect the family to protect borrowers. no clue what position he would take on the bailin idea in europe. but he did have some interesting views on how banks, bank of america in particular should operate. listen in. >> translator: look at bank of america in the united states. bank of america was founded by gionini who comes from my hometown. when the earthquake of san francisco happened, his bank lent out loans at zero interest to help out residents there. it's since become one of the biggest banks in the world. those were real bankers. we need those kinds of people. there are more people like gionini, people with values, transparent and honest and they're in this movement.

they're normal citizens. we want honesty to come back in fashion. >> we talked earlier about the idea of big themes and big issues that formed part of his policy and then on to the idea of implementation risk. ross, what do you think? zero interest rate loans in some of the big banks. >> you get zero interest rate loans in the ecb and pass it on. jules, thanks very much, indeed, for that. great stuff from rome. catch plenty more of that on the website, as well. shares are sharply lower after the italian carmaker dropped lower in registration. the first increase since september 2011. on the other side, market leader volkswagen had the opposite result. a 10% rise in registration. peugeot struggled and matched

fiat's 10% dip. all right. the best levels of the day, up 0.5% for the cac 40, the ftse, mib and xetra dax up around 0.2%. data points now out just before 10. we'll get consumer index and leading indicators. donaldson will report before the bell on the earnings front. the u.s. futures are set now indicating a more positive start, as well. we're currently called up 50 points on the dow. the s&p 500 trading 5.5 points above fair value. todd joins us now. a very good morning to you. a bit of a softer close yesterday. we closed down near the bottom of the range, but futures are looking healthier this morning. what do you make of it? >> good morning, ross. you know, we're still in the monopoly money trading right

now. you know, with all the free money still out there, there's still plenty of buyers that are out there to buy and every possible dip. every time the market tries a bit of a dip, the buyers come flowing back in. they've been up 13 of the last 16 days. so it's no surprise that we had a minor sell off and once overnight, the buyers are back in looking to buy here. so, you know, with the phony money, the funny money, we're going to continue to get higher until something changes. >> wa do you make of mr. williams' comments? you know, we could be tapering at the end of this year. is that what people think generally, so it doesn't have a big impact? >> you know, i don't think -- you know, monday it started with the tapering and then again this morning. so, you know, right now, the market doesn't believe that there's going to be any tapering because the market continues to be bought. you know, once the market really believes that the fed is going to pull away the punch bowl, you're going to see probably some fairly heavy selling. but the market is right now in

denial that it's not going to happen and that what they're looking at is saying they're going to stay here and they're going to stay as long as it takes because you can see between draghi and bernanke, they can throw funds at these markets to allow them to keep floating. >> you look at the ten-year yields, they went up to 1.92% and they're back down to sort of 1.87%, somewhere around there this morning trading here in europe. how big a level is 2%? >> i think it's a real big level. if you've watched over the last six or seven months, we immediately got hit hard and come back. you just saw this during this week. we had some major selling in the future, bringing the rates up, and now the futures are going back up. so the money flow is going back into the safer asset classes again. so every time we get here, we see them running back into the bond, we see them running back into the u.s. dollar.

so you can see that was a key level and now we're selling off again. that's typical. examine that's telling you that the market is really not concerned that the fed is becoming more hawkish yet. >> the dollar index up at a ten-month high. does that grind higher, as well, then? >> exactly. this is what -- you know, you're seeing -- although the market continues to go higher, you're seeing the market that all the money is flowing into the safer asset classes. the u.s. equities, the safer stocks, dividend payers, utilities, u.s. dollar, treasury bond. you're seeing the flow, although the markets are going higher, the flow is going into the safe asset classes. and i think we're very close to what we would call almost a blow off top in the market and, you know, we can go higher. i mean, i wouldn't be surprised to see 1670 in the s&p. but the market right now is trading for professionals only. investors should be on the sidelines observing using stops in their current long position. >> todd, have a good day, my friend, and a great weekend.

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good morning. the irs scandal, key officials set to testify before congress today. in corporate news, jcpenney, what? a bigger than expected loss. and then, asking investors for patience. and facebook marks one year since it went public. it's friday, may 17th, 2013, and "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along

with joe kernen. michelle caruso cabrera is in for becky who will be back on monday. the u.s. equity market, it's on track for a fourth consecutive week of gains. comments about fed officials about tapering the bond buying program in the coming months. take a look at futures this morning. going to flip that screen around there. dow jones, look like it will open up about 48 points higher. nasdaq up about 5 points and the s&p 500 up about almost 5 points, as well. if you're following the money in this rally, equity funds now attract $8.9 billion in the weekended wednesday. that compared to 7.7 billion in the prior week. also in washington news today, the house ways and means committee, they'll be holding a hearing on the irs scandal. lawmakers will be questioning the newly ousted head of the