welcome to "worldwide exchange." i'm louisa bojesen. the executive chairman eric smith is with the company's head of david cameron suggesting that he could. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi, everybody. welcome. a fresh start to the weekend. look at how we're starting. we're focusing on commodities in this morning's trade here in europe. not just is oil a little lower, but particularly in spot gold and silver, we're seeing a big correction there. a lot of factors could have to do with why it is we're seeing this selling off. one having to do with investors having to meet margin calls

elsewhere. they may be getting out of the precious metals right now. we're hearing that the ctfc is increasing their bearish sets on the medals as we've seen in gold. silver tends to be more of a indicator for gold. sometimes it's the other way around, as well. it could get interesting. we're going to talk about what's taking place in these precious medals later on. not to mention what is taking place in the currency markets and we'll talk about that in a second, too. travel and leisure higher. banks higher by a couple of points. you've got autos leading the way up by 1.5%. to the downside, oil and gas off a bit. basic resources off the most on the back of these big moves we're seeing, especially in silver, as mentioned. our european markets coming into trade. we were called higher across the board. ftse hanging on to some gains. that's the dax, a little higher. cac 40 up by a few points.

in the corner, you've got the ftse underperforming some of its counterparts. the italian market, that is. we've greek redemgdzs taking place today. 5.6 billion euros in bonds held by the ecb being bought back. you have that surprise upgrade coming through from fitch. now many people were suddenly going from talking about a potential greek exit of the eurozone to talking about a greek recovery that we've seen a substantial rally in greek equities, too. the currency rates, dollar/yen, flat to a little lower. you've got the bank of wars pan meeting taking place that kicks off tomorrow, a two-day meeting. and the euro/dollar, up by 0.4%. but the yen bouncing off this 4

1/2 low against the dollar in early asia trade after japan's economy minister suggested that the government is happy with the level of the currency and that further yen weakness could be harmful. the japanese government also upgraded this assessment of the economy for the first time in two months in a sign that growth is accelerating as exports and factory output pick up. but as mentioned, focus is now really turning towards monetary policy. the bank of japan, that meeting as i just said starting tomorrow, it's a two-day meeting and it could get interesting. we need to check in on the markets in asia to set you up for your week of trade. chloe cho joins us out of singapore. what do we see in our overnight session? >> great to see you, louisa. it really was. last week, we got nervous especially as japanese bond yields crept up. all seemed clear and calm in light that the boj is in the government bond market.

up 1.5% despite that pullback that we saw in dollar/yen. shinzo abe in a friday speech came out with a lot of growth bolstering moves, especially he wants to prop up capital expenditure spending by about 10% which would be just about 700 billion u.s. dollars or so. that got the investment community excited. not to mention we have the government upgrading its economy for the first time in two months. the hang seng up four in a row. maybe there's a final reversal in the price trend for a change. that has a lot to do with the housing data that we got. normally that triggers a lot of nervous tension because people think it's going to invite tightening, but at least for today, fms, property counters, all of them had a big rally.

there is an element of surprise, as well. the south korean government, military is saying there's another projectile. they haven't been able to verify whether they were short range missiles or shelling, as well. for now, i think they're sticking to the term of projectile. there was another launch sometimes between 11:00 and 12:00 local time. they seem to be describing that as a short range missile. take a look at the australian firm, up 0.5%. also, the yield differential between australian government benchmark bonds bolsters that, already at a 11-month low. we could see a lot of volatility if the rbi minutes suggest we

could be in for a rate cut. back to you. >> chloe, good to see you. thank you very much. we'll hear from you very soon again. on today's show, we find out why local smartphonemakers are giving apple a real run for its money in china. eunice yoon is speaking to the man some are calling the steve jobs of china. poland, india, some of the most popular export markets. tune in at 10:20 cet to get some of the other findings that might just surprise you. we also get a rare peek behind the scenes in the airline industry we speak to. i asked the former director general as he releases his book shaking up the skies. and speaking of the airlines, boeing will today try to get its wings back taking off on its first u.s. flight since the recent safety scare. we get a view from the tarmac in houston with our very own phil lebeau. we speak with an analyst who

sees a 50% upside in the stock. that will be interesting to hear why. don't miss that at 11:20 cet. then just after that, 11:30 cet, we're off to st. petersburg, florida, the location where our u.s. investment strategist is based and he names some of the growth investment stocks that could benefit from u.s. energy independence, supposedly right around the corner, right? we're in european earnings season. we've seen a production of less than impressive results from many companies and those shares prices have been riding high amid the hunt for yield. can these gains be sustained this year having gained approximately 15, 10 and 10%. we're looking at substantial gains. jonathan studs is with me this morning in the studio. >> good morning.

>> why is it that we continue north especially when earnings in europe have been disappointing so far. >> liquidity. so liquidity is beating, having disappointing earnings. we saw more misses and dates. the earnings season hasn't been that bad. more than a year now, we've seen week after week after week of net downgrades. in europe and globally. expectations have only falling from plus 10% to minus 3%. so we've seen a modest pullback in earnings expectations. as we look forward from here, the u.s. economy is picking up. it's coming towards the earnings cycle. >> and if we're looking at ford

earnings in 2014, is that going to continue to translate to its equity market? >> we're seeing very low downgrade. so the second derivative is turning. when that turn historically has been very positive for forward return share prices, the last five times it's happened, we've seen an average equity return of 30% the. that's where we are now. >> so we could potentially be in for quite a bit more of a surprise if we are to follow histo history. >> a, if we follow here. b, if we follow the recession, quantitative easing and liquidity support. and i think the most important thing that we can look at at the moment is equity investors be aware of what's happening in the capital allocation space.

because although european equities are up, valuations have got more expensive, european equities have regardly been this attractive to so many investors. nonequity investors as they are today. >> so where are your preferred sectors, then? why would you advice people to look closer at? >> top jobs year on year, costs are down and those who are just trying to make a real return. in health care, staples. so we also think there's a lot of opportunity in some of the cheaper parts of the market. no across the board. lots of value traps across europe because of the weak

economy. financials look pretty strong. we're overweight financials overall, especially banks. >> a lot of european banks. >> europe i can't know banks. this is on regulatory capital, capital investments and capital surpl surplus. some banks are already there. some banks are returning the capital returns to shareholders. we think that will sustain outperformance and performance in banks the last couple of years. >> jonathan, good to talk to you. very pleasurable chat. gom in again and speak to us. and just talking about some of the tax stories that have been making headlines this morning before giving you those details, remember, e-mail us directly, worldwide@cnbc.com. the e-mail address is right there on your screen. use it. you can also find us on twitter,

@louisabojes @louisabojesen. uk prime minister david cameron has written to the leaders of the cayman islands, jersey and other overseas territories urging them to fight tax evasion. this comes ahead of next week's summit. the prime minister has urged the countries to sign up to protocols which encourage states to share information on tax. and it looks like google has moved back into this plan. the group's chairman eric schmidt is saying they could use its uk -- to move it back on the agenda. the criticism that it has not been paying its fair share in britain saying, quote, it tried to do the right thing, but international tax laws are complemented. they are, aren't they?

while profit had become somewhat of a dirty word, it was important to remember that corporate profits create jobs and, therefore, growth. the google chairman may not attend a scheduled meeting with the uk prime minister today after he pulled out of an interview. apple's ceo is testifying tomorrow and he expected to bring a proposal to change how u.s. corporations are taxed on foreign provpfits. the reoperapatrioting cash to t u.s. isn't over. >> you've probably never heard of shao mi, but the chinese

smartphonemaker is gaining a following in china. one reason the local media has dubbed the ceo the steve jobs of china. our influence in the chinese market is very similar to apple's, he says. china is a crucial market for apple. last quarter it was the only region where apple's revenue grew up 20%. they started shao mi three years ago. his company has created an aura of exclusivity around his phone, releasing limited quantities that sell within minutes. >> our goals are simple, he says. allow our customers who are interested in smartphones to make suggestions. work with us and let them enjoy the process. xiaomi's phones are a third the

price of an iphone here and they're a decent substitute for many chinese. apple's products are popular here. yet with 300 million chinese using high-end hand sets, most analysts say their next growth will be in low cost smartphones. xiaomi sells only online and by word-of-mouth. >> most chinese customers don't believe ads, he says. they trust their friends. xiaomi plans to double sales this year. xiaomi is start to go look beyond its boarders. >> i believe americans and europeans would like our products, he says. a hint that maybe one day xiaomi will take on apple on its home turf. eunice y on oon, cnbc, beijing. now, whether you want to admit it or not, it's no secret

that some people enjoy doing a little bit of reading in the bathroom. hoping to capitalize on this you can find the ipad caddie. so what we want to know is technology going a little bit too far? join the conversation here on "worldwide exchange." get in touch directly with us by e-mail, worldwide@cnbc.com or find us on twitter at louisa bojesen. or find us on the "worldwide exchange" twitter, as well, @cnbcwex. let us know of whether or not the practice of when and where you want to read your ipad has gone too far. the acquisition is the biggest

under yahoo!'s chief executive. and the realty company has been seeking to play catchup. the purchase will give yahoo! a bite out of. can the uk get back to the good old days of global trade? stay tuned. we'll talk more about that. ♪ [ 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 german government has slammed the european commission eeps move to impose a 47% duty on solar panels in from china. economy minister phillip washlov described the levy as a great mistake which risks damaging trade between europe and china. the bdr called for negotiations before the decision was firmly announced in june. the criticism comes ahead of the chinese premier trip to berlin next sunday. investors were milking deals on the back of danone.

danone boosted stake in costco corporation. it will give them more exposure in asia while limiting the food safety scandals. last month, more than 1200 people lost their lives when a building came crashing down. now it's saying it will review sources from latin america and africa. speaking to the financial times newspaper, the chief executive made no direct link between the disaster and the company's strategy change. the uk government is being called upon to help british companies blank into global markets. the british chambers commerce

reveals europe remains by far the most popular region to export to despite weak growth prospects. the massive untapped potential in other markets and uk companies need to reassess their priorities. dr. adam marshall is director of policy for the bcc. hello. how are you? >> very well, thanks. looking at what's taking place in europe and looking at how the uk is dealing with the practice of business, you wonder whether the uk is pulling back or going full steam forward in terms of export growth potential. >> what we've seen is huge growth in terms of the numbers going forth in export markets from 32% last year to 39% this year. so massive growth year on year. but what we're still seeing is companies in the uk that aren't sure if they can break into those new markets.

europe is a hop, skip and a jump away. it's an obvious first step for many. they've got to go further because the growth steps in europe aren't what they used to be. we see so little companies nowadays are born global. they start going into these international markets from day one. an educational market, its first product was exports to malaysia. we need to get those experiences out there so more british businesses are, in fact, inspired. >> you mentioned a couple of countries where you see these look more interesting. you mentioned poland, china, the ue and india. you mentioned markets where there's huge potential. talk about some of the markets where there's more potential to come. >> if you look at poland, it's the only eu market that didn't go into recession over the last five years and it had some

pretty buoyant growth. with the uae, we're seeing huge numbers of companies considering that as a destination because of the huge demand you've got from dubai, abu dhabi and so much more. when you look at markets like india, uk standards, give british companies a good chance to break into those market. and yet our contact necessary those countries say they always want more from britain. they want more british companies out there doing business with them. >> what do you see with regard to cash flow? >> i think one of the things that companies are worried about is risk. and cash flow is one of the biggest risk factors that they identify. three and four of them come forward and say i'm not sure about this export business because i'm worried that my cash flow will dip right before or right after i ship this product. i'm worried about getting paid. i'm worried about getting the right kind of insurance and

trade finance in place. and those are places where the government in the uk can do more. if you look at the way the germans support their exports, for example, there is always a way for the german government to make sure those exporters get what they need and get the deal done in market. in the uk, we want to spend 0.05% of our public expenditure on trade and i think we can do better. >> do you think companies are looking at the forex volatility we've seen as of late? >> they've got dealer imports. there are always issues like that facing companies. what we try to do is try to help them member mize that risk. >> so net-net, you're saying british companies are still trying to be aware of the big world out there and not to be afraid to go beyond europe.

>> don't be afraid and don't be afraid to look at these new markets. there may be things about culture and regulations that you have to get over, but we're going to help and the government will do more to push them more. >> thank you very much. now, first it was gold now it's silver. the precious metal has fallen victim to heavy selling in early trade, as we were saying. is this a buying opportunity? we speak to bofa merrill lynch's strategist. also, catch other investment calls on cnbc.com. don't forget, follow us on twitter, @cnbcworld or @louisa bojesen. still to come, could warnings of a higher fuel and modest fathers be a sign of more things to come? i asked the ceo in an exclusive interview straight after the break. we used to live with a bear.

[growl] 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. hi, everybody. welcome back. i'm louisa bojesen. silver is tumbling to levels not seen in 2 1/2 years on forced

liquidation in japan. managers are cutting their positions in precious metals. the fall has been weighing on mining stocks, the world's largest silver producer fresnillo is one of the biggest losers in europe. and taxing times for google, eric schmidt is defending the company's tax contributions ahead on a meeting with prime minister david cameron. but reports are suggesting he could be a no-show. >> hi, everyone. welcome back. if you're just joining us now, it makes sense to check on the european markets. we were called higher this morning across the board. most of the markets not quite holding up to its counter part. but by and large, a little bit

of buying heading into a new, fresh week. just to recap it, last week we saw quite a bit of volatility to the downside. we saw net-net akrod the board for our main european markets. bond markets, 5.6 billion euros in bonds being redeemed. you've got the ten-year yields on three years. out of greece, you had the fitch surprise upgrade to greece and not a lot of people are talking about a greek-covery instead of a grek-xit. the currency markets, we've got quite a bit of policy speak taking place this week. we've got the bank of japan's two-day meeting starting tomorrow and the fed's fomc

meeting will be published on wednesday and bernanke speaking twice, too. on top of that, you have the japanese economics minister suggesting that they're quite happy with the yen at the current levels and also suggesting more yen weakness could harm householdes and that caused a little bit of reversal seen in dollar/yen trade in particular. if you want to get in touch with us, if you want to participate in our conversations here this morning, find us on worldwide@cnbc.com. find us directly on twitter swb @louisabojesen or @cnbcwex. let's move on. united continental is set to release its 787 dreamliner back into the skies. the first flight is scheduled to head from houston to chicago.

switching gears, but staying in airlines, ryan air has posted record profit growth for 2012 but warned that europe's greater recovery and higher recovery costs would weigh on profits going forward. forecasts lower growth for 2013. the group said summer bookings were ahead of forecast but that fares remained modest. meanwhile, the international air transport association has been pushing through innovative measures to help traffic across the industry and improve airport efficiency. the man who led that charge for years is the former director general and the ceo geovani. good to see you. still, you're looking at the industry from a broad

perspective. how do you see passenger growth at the moment? >> i'm very optimistic. this year, we would have $10 billion of profit, one to six margin, 3 billion passengers. but the most important thing is the traffic. passenger side, fast descent. but if we analyze this number, we have 16% growth in domestic china. this means that the chinese engine has started not just from the domestic market, but also in exports. the other very important number, 2.7. after two years of negative number, we're starting to see some blue skies. >> how do we know that the growth is going to continue? you talk about china. how do we know that it won't plateau earlier than maybe what we are hoping? >> because why? because we will present 40% of

the total trade involved. so you will see a growth steady after the stops because it has not completed, but i'm optimistic. >> in the past whenever we start to see xhot commodities moving around a bit and it impacts oil sometimes and then the airlines get twitchy. how prepared is the airline industry this time around if we are to see oil prices heading higher. >> the improvement has done in the recent years is amazing in terms of efficiency. productivity has improved by 60%. fuel efficiency by 20%. ten years ago when i started, we could break even at $30. now the industry is able to at $110. this gives you a clear understanding on simplifying the business can help a lot. >> the ten years? >> yes. >> from $35 po $100.

incredible. >> so taking away 400 market tickets a year saves the industry $5.5 billion every year. >> what is your book about? >> it's the untold story of -- ideally, a couple of months after 9/11, we had all to move fast in order to get this done. electronic ticketing was one of the measures. we worked hard also in the environment. in order we are the only industry in the world with a target of 2% improvement every year. we had to face other situations, safety. safety is the number one priority for everybody in the industry. and the order that we started ten years ago, last year we had

an incredible result. zero loss rate. >> do you think we're going to continue to see growth maybely in the low cost carriers or is business travel going to -- when we come back? >> they anticipated the customer needs. now, you still would have to have the same number of business. it's been a great opportunity. we have to see this model in the international growth. >> thank you very much for speaking to us. the man that led the charge for years, the former director and

ceo, much appreciated. now, while passengers take to the skies across the u.s., south korea's economy is stalling as japanese tourists remain grounded. the industry is starting to take a hit. >> korean dramas went through japan by storm. but since the introduction of abe-nomics, japanese tourism has seen a steep decline to 700,000 visitors in the first quarter of this year to the previous quarter in the tourism board. >> since last november, the total number have fallen by 25%

to 30% at our totals. >> this woman says it's been difficult to keep her business afloat. >> it's the same story at this traditional pancake house. a shopping area. >> translator: nearly 40% of our revenue used to come from japanese customers. but that's dropped by nearly 70%. >> the tours in the industry is sharp and looking for a diversification strategy turning to other foreigners and to domestic consumers, as well. >> rising 38% on year in the first quarter. the number of foreign tourists picked up by 4% in the same

period. >> we are exploring new market segments like southeast asia, europe and north america by beefing up our online reservations. >> but experts say it's not just a weaker yen that's deterring visitors. it's also the gop local tensions for north korea and the traumatic relations between japan and south korea. japanese prime minister shinzo abe's nationalist agenda has renewed a sense of hostility between the two nations from territorial disputes to controversy over politicians visiting a shrine. the tourism industry is learning to embrace different that makes it less dependent on japan. it's a lesson in diversifying the customer base. >> now, the japanese government has upgraded its assessment of the economy for the first time

in two months. makiko from the nikkei has this story live from tokyo. >> hello. a boost to exports suggesting japan's economy is gradually recovering. shipments of chemical products and steel are also on the rise. corporate profits are improving mainly along larger firms. consumer prices are still falling, but at a slower pace which the government says is a signal of a gradual pullout from deflation. and chief government spokesman commented that these improvements show prime minister's abe's economic policies are starting to take effect in the real economy. abe has set an ambitious in goal increasing spending by japanese companies up 10% to $700 billion in three years and promoting infrastructure exports.

>> thank you very much for that getting us up to speed on what's taking place in japan. a steady market overseas and getting a boost to exports suggesting that japan's economy is gradually recovering. corporate profits, they have been stronger than anticipated in some areas, as well. international calls for an engine to pyongyang's provocations appear to be falling on deaf ears. with more, chery joins us from out of seoul. >> hi, louisa. this makes five short range projectiles just period of three

days. one thing i would like to point out to you is that the launch happened -- monday's launch happened sometime between 11:00 a.m. and new year and the defense minister's announcement came late afternoon. now, short range missiles don't travel more than a thousand kilometers. it doesn't even reach far enough to make it to even the waters of japan. so that's why we have some north korea watchers are saying that it wasn't really meant to be an actual threat of violence or more of a message. the first guess as to what the message was, its anger over the joint military exercise between seoul and washington and north korea actually said today in its statement that these launches are part of its own legitimate military exercise that it's conducting. and, two, this comes at a time when north korea sort of phased out of global headlines. so many north korean watchers are saying north korea needed to do something to stay relevant on

the global stage, at least to china, south korea and the united states and legitimate to its own people. louisa, back to you. >> thank you, chery. thanks for what. now, more headlines and headaches for beijing as property prices continue to rise. the average home price has climbed by 4.3% in april from a year earlier. analysts say that's partly due to china's credit surge. total credit, which includes bank loans and other forms of financing jumped by almost 65% in the first four months this year. a big chunk of the money found its way to the real estate sector. indonesia's government has finally outlined planned hikes in its government proposal. the government is now waiting for parliament to approve handouts to the poor to helpco with the higher prices. the heavy subsidies have

worsened its budget shortfall. the myanmar president and the u.s. president barack obama will be meeting later today in a historic visit. they're expected to work out a new framework on talks and boosting development. the militarian controlled company has stepped up reforms in event years. casting a shadow over the meeting are ongoing concerns about abuse and ethnic conflicts. still to come here on the show, greece's redeeming just over 5.5 billion euros in bonds following a credit upgrade that sent the markets rallying. is it time to bet on a greek-covery? we'll discuss after the break. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs.

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hello, everybody. welcome back. you're still watching "worldwide exchange." look at silver. we're off by almost 3% so far here over half a session. we've got a seven-day chart for you, down by 10%. so a very big correction in

silver. some saying that silver is going to show us that there's more to come in terms of a downside from gold. michael, how are you? >> hi. how are you. >> what's going on with silver? >> it's a high detail play on gold, really, right? if you expect a 1% price decline, you normally get a bit more. so that is the starreding side. i think the other issue coming down so hard, if you had a relatively steady decline, particularly in the sector over the past few years. we didn't really notice that. right now, investors have not. on to which of that, of course, you have a slowdown in industrial production.

so what is left of investor usage is not tloep, either. hedge funds are increasing their bearish betts. at the same time, i'm wondering what the comments by the japanese economy is doing suggesting that more weakness could harm households. do you think that is more what's going on? >>. >> you do get because of the quantitative easing higher inflation. it's debasement which for all intents and purposes didn't have mining sector. a lot of the reasons why people got into gold did not work out. japan, if the yen continues to

weakness and we start to see increasing pressure on other currencies are starting to intervene. right now, i think the market does not want to trade. >> i was looking at some research this morning. citi, they say if silver rebounds to 27, $28, we're near 21 at the moment, that that would be a buying opportunity. what do you think? >> i think medium term is a buying opportunity. $27 or $28 will probably be higher than where it is white now. in terms of fundamentals to increase outside long positions at the moment. >> when do we buy gold just because of the massive

correction that we've had in gold? i know a lot of funds are being squeezed by gold at the moment. and you've got to wonder, when will the tide turn once again? >> i think the tight will turn when you get some of the usual market data that the growth market looks at becoming more supportive. disinflation, you have to get the reflation that central banks wanted. you need to see potentially on the exchange rate a move in emerging markets. but put it this way, everything that markets look at right now, that is the change and there's a whole other scenario. >> so does gold head higher than where we are in gold now? >> the next leg is lower in gold, i think.

>> meeshgal, thank you very much. both bankers agreed that it's time for the eu to stop playing with fire as it poses a threat to the stability of periphery banks. greece is today dumd to redeem 5.6 billion euros in bonds held by the european central bank after the country's ten-year bond yields fell to their lowest level in three years, following an unexpected ratings agency with fitch. meanwhile, the stock market is up by 58%. you heard right. greek stocks up 58% since the start of the year.

miranda, what do you think? the greek bond redemption and the rally that we've seen in greek assets, is that going to continue? has the page been turned? >> well, this was out of a confluence of several factors last week. the upgrade by fitch, the approval of the euro group by 2 billion installment and the expectation that the imf will follow suit on may 31st indicating that the program remain intact. but on top of this, you have the ongone recapitalization of greek banks after several false starts and the progress being made in the privatization program with the gas company in the pipeline and the electricity company coming to the market next year. and the greek economy shrinking by 5.3% in the first

quarter. if we continue to see gdp growth on the wrong side of the fence, won't that start beating through into some of these underlying asset classes? >> yes, indeed. but this improvement was achieved through demand compression mainly rather than through supply side reforms and as a result of that, growth has yet to resume and further debt relief probably will be needed before greece can regain access to capital markets. but there is the prospect of a turn around next year as the privatization program picks up speed. >> and you think foreign investors will dare into greece more than, say, some of the other core european markets? >> i do believe so.

even with the rally that we saw last week, greek bonds still yield in excess of 8%. so greece more like countries such as venezuela or pakistan. so i think there is quite a bit further upside for the bonds and the stock market. >> miranda, thank you very much. many of you have been tweeting in. thank you very much for your tweets and your e-mails, as well. it is my real hair, i swear. still to come on the show, it's good news for the oil industry as the u.s. opens a new era of energy exports. we'll take a look at the sector in a second. ♪

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hi, everybody. good morning, good morning. you're watching "worldwide exchange," the second hour. hyme louisa bojesen. the headlines, silver tumbling to levels not seen in 2 1/2 years and data showing if big managers are now cutting their net positions in precious metals. yahoo! has been expanding its footprint in social media, scooping up one of the hottest sites on the web. north korea does it again reportedly launching its fifth short range projectile in three

days despite its calls to end provocation. and taxing times for google schmidt is suggesting that he could be a no-show with his meeting with prime minister david cameron. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi again, everybody. it's always a pleasure watching you on the show. a lot of you tweeting your questions through. what's really taking place this morning? we've got a lot of focus on commodities. we're seeing a little bit of lower trading picture taking place in oil. spot gold off by 0.35%. but this is where the focus is on spot silver, off by some 3%. it's a very big move.

what tends to happen is you see a bit of a move in gold, silver tends to move more. it's sort of like dwomd developed markets versus emerging markets. people are saying it could have to do with japan saying that the level of the yen is staying in line where it should be, but if you continue to see yen weakness, it could impact the households and be bad for households. if you're seeing dollar regrouping, that could have an impact on commodity trades, as well. on top of that, the cftc, they're noting hedge funds are increasing their bearish betts on commodities. citi says if you seed a rebound on spot silver, then it could be a selling opportunity. so the question is whether or not we're going on to continue to see a correction taking place in these underlying xhod thes. we're seeing buying in banks higher by 0.5%. a strategist earlier said he still sees rallies in european

banks. oil and goes off by a pit. as you just saw, the underlying commodities off on the move that sees commodity webs too, down by 0.6%. you've got the ftse, the xetra dax and the cac a little higher. most of you in europe would be up by now, i'd hope. the ftse mib lower by 0.6%. markets had been called higher -- excuse me, markets had been called a little lower. across did board this morning, we closed out on friday on a higher note and you would have noted last week that net-net saw a rally on the main european equity markets. the futures that we're looking at stateside, we're here looking at calls slightly lower across the board for the u.s. indices. so bear that in mind. we have a couple of hours to go. bond markets with a lot of focus on the greek redemptions that are taking place. we're seeing 5.6 billion euros in bonds held by the ecb being redeemed. the ten-year yields in greece hitting their lowest level in

some three years or so. you have the debt rating by fitch, that came as a surprise. but you've seen a real rally not just in greek bonds, but also in greek equity markets as we were talking about. in fact, the greek stock market is up by 58% since the beginning of the year. yeah, 58. curren currencies, euro/dollar, flat to higher. you've got bernanke speaking twice this week. you've got the fomc minutes being published on wednesday. that is the center focus. dollar/yen, flat to a little lower and, of course, you had -- or you have the bank of japan meeting, the two-day meeting which starts tomorrow. but we need to check in on the markets with asia. chloe cho is in singapore and she rejoins us. once again, chloe, just as people are just joining us, give us a bit of an update on what's been taking place in your session. >> a bullish session here in asia. up to that meeting that flash

pmis, up 1.5% to december 2007 highs. the government's economic assessment upgraded. it means triggered even with a slight pullback we saw triggered that the yen weakness might hurt the economy. south korea, a touch under water. we had a fresh missile launch making it a total of five since the weekend. the asx, up about 0.5%. the differential between aussie and bonds to a two-month low. take a look at the price action in china if a. chinese property getting pushed up by data showing housing data pushing up in april. yahoo!'s board has agreed to buy tumblr.

marissa mayer's rule, the company has been seeking to play catch up. the purchase will give yahoo! a wealth of user-generated contents. all eyes on big ben, as mentioned, as the u.s. chief bernanke gives his economic outlook this week. the question is whether and when banks should tap quantitative easing. currently, the fed is purchasing $85 billion per month in mortgages and credit securities. investors fear the sharp sell-off could happen if better manky's message turns hawkish. and hedge funds have started selling gold in a big way. reports show $1.4 billion are being pulled from the u.s. government futures market. in a week that ended may the 14th. on friday, gold prices fell for a seventh strayed session, marking the longest losing streak seen in some four years.

meanwhi meanwhile, as they're talking about the general commodities story, in the oil sector, the obama administration has opened the era to exports. the move comes as part of a heated debate. the energy department's approval of natural gas exports ends a two-year pause in its reviews that selling abroad could harm u.s. manufacturers. so what we've seen is oil trading a little lower when it comes to selling off in the reason of 0.5%. aretha is with us in the studio. what do you think is taking place in commodities at the moment and in particular, your area, oil? >> through the start of this year, we have a pretty strong start to commodities during the first half. but since then, we have had had a broader theme of the investor side got us thinking, okay, moving away from commodities

going back into equities. so we have seen some of that. but different commodity res showing different fundamentals. >> how much of a driver t notion of u.s. energy independence? sgliets one of the reasons why oil has struggled to go up a little bit even in the shorter term has become quite compelling. the u.s. is producing a lot of gas and oil. by 2020 the u.s. is going to become energy independent. it has market ramifications, even for the longer term. because what if it doesn't? is it deterring investments from countries like saudi arabia? so you need to be a bit more careful about coming up with these predictions where there's

not a very good track record. >> some thought shares were going to be common. nobody saw $150 oil, either. they need to be very careful and particularly, for sure, there's so much on note. the geographies are so different. gas is more promising than oil. >> where do you think this is heading, especially with what we see taking place in gold and silver? is there a correlation there in

terms of how people tend to trade oil if you see a connection with the medals? >> there is an element where there's a broad sell-off into equities. i think shorter term it's the demand concerns. we need to get better demand data, better macro data, whether it be from china, hopefully from europe at some point. then the focus will shift to the supply side. the focus is at the moment on the supply side. >> where do you think it will be at the end of the year inspect.

>> it's not going to be a very exciting market. shorter term, it's probably going to be around these levels. come the second half of the year, if the macroeconomic picture improves, i think we could see a bit of a pick up towards 1110, but not much beyond that. >> thank you very much. you know, someone is tweeting in and they're saying that my hair isn't real. i swear it's -- >> it is real. i can voich for that. >> yours is real, too, right? >> yes. >> we're real around here, we're real, real women. thank you very much. she's an analyst from energy aspects, both of us with our real hair. still to come here on the show, united airlines returns its boeing dreamliner to the sky for the first time since the battery scare with the jumbo aircraft. we'll hear from one analyst would says clear skies are ahead for the energy giant. and phil lebeau is joining us ahead of this takeoff from houston straight after the break. ♪

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welcome, everybody. you are watching "worldwide exchange." i'm louisa bojesen. it's monday. glad you're with us. these are your headlines. silver is sliding to its 2 1/2 year low amid reports of forced liquidations.

yahoo! is looking to snap up tumblr. and north korea reportedly launches its fifth short range projectile in three days. we're going to take a look at some of the other top stories today. uk prime minister david cameron has written to the leaders of the cayman islands, jersey examine other overseas territories urging them to help fight tax evasion. this comes ahead of next week's global summit on arrangements which allow businesses and individuals to hide their wealth and pay minimal tax. the prime minister has urged the countries to sign up to protocols which encourage states to share information on tax. and it looks like google is backing that plan. the group's chairman eric schmidt to say that the uk should use its presidency to put tax reform atop of the agenda. the chairman defended criticism that it hadn't been paying its fair share of tax in britain

saying, quote, it tried to do the right thing, but international tax laws were complicated. separately, it is being suggested that the google chairman may not attend a scheduled meeting with the uk prime minister in london today after you pulled out of an interview with the bbc. apple's ceo tim cook is set to face a u.s. senate committee over the company's offshore tax practices. testifying tomorrow, he is expected to table a proposal to change how u.s. corporates are taxed on foreign profits. speaking to the washington post last week, the apple ceo said that 35% tax on repatrioting catch to the u.s. was, quote, a very high number. now, whether you like to admit it or not, it's no secret, some of you enjoy doing a little bit of reading in the powder room. apparently. the bathroom. now, retailer hamaschler is hoping to capitalize on that

with the ipad caddy. attach your tablet to the toilet paper holder and download your favorite book and read things off the ipad in all kinds of interesting places, including in the powder room. earlier, we asked is technology going a little bit too far? jeff tweeted in. he says, technology hasn't gone too far yet because apple hasn't invented the apple itoilet seat as he calls it. keep your responses coming in on "worldwide exchange." get in touch with us directly, either by e-mail, worldwide@cnbc.com or find us on twitter, @krncnbcwex or tweet m directly. thank you for all of your tweets so far. it's a pleasure.

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it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. hello, lovelies. welcome back. i'm louisa bojesen. we need to check in on the u.s. futures. right annoy, the implied open for the s&p 500, a couple of points lower. the dow is implied lower by some 22.5 points or so and the nasdaq down by 10 points. it can still change, but it's

useful to get an early heads up. united continental is set to return its boeing 787 dreamliner to the skies today after being grounded due to safety concerns regarding batteries which prompted a fire and emergency landings on separate japanese carriers. the first scheduled flight is scheduled to fly from houston to chicago. speaking of early birds, phil lebeau is one of them. he joins us on the phone from houston where it's just past 4:00 in the morning a.m. phil, what do you think is going to happen? what are the implications long-term of this safety concern for boeing regarding its battery? >> well, louisa, good morning. i think that the long-term implications, they diminish with each flight that the 787 dreamliner now makes, which is uneventful. and the flight today is going to get a lot of attention because it's the first commercial flight for the dream liner since the grounding was lifted here in the united states. and for united and continental,

they need to get this plane back in the air as quickly as possible. they are waiting to launch several routes. one of them being tokyo to denver or denver to tokyo. it was supposed to start -- service was supposed to start in march. they have not been able to start that service. so united is anxious to get this plane into the rotation again. remember, they've got six dreamliners that they have to sit down once the grounding is put into place back in january. so as they bring those back into service, that obviously will help the revenue. as for boeing, this is important because they need to, as quickly as possible, get past this controversy. if we take a look at shares of boeing, they're getting close to moving past $100 a share, highest level since 2007. they are going to deliver or they say they will deliver at least 60 dreamliners this year. there's already talk with analyst owes wall street that they wouldn't be surprised if boeing has increased production

rate that it could be a few more than 60. that's why reason there is renewed optimism about boeing. this takes place this morning and we will be talking to the ceo of united airlines this morning. also, boeing's jim mcnurnel will be on this first flight between houston and chicago. we'll have a chance to talk with him. all of that is coming up later this morning and both united and boeing are both saying, let's have an uneventful flight and get past all the hoopla and the dreamliner gets back in service. louisa. >> thank you so much. oh, that might be another phone ringing for you. i know you are super popular. just after initially that we had the difficulties announced with regards to the battery, the safety scares announced, i spoke to a number of kind of main competitors out there for boeing and some of the other a line ceos, as well, and asked them, do they think they could benefit

from something like this happening to boeing? interestingly, they all said, i don't think so and they all had a united tone with regard to what was taking place for boeing. you have to wonder how much of this is normal in terms of teething difficulty that's airlines go through when they change technology, when they make big switches in technology, including batteries. >> it's very normal. and whenever you say that to somebody who does not follow the aviation industry, they kind of roll their eyes and say, wait, it's normal to have a plane come into service and be grounded. that part is not normal. but it is normal that you have new airplanes run into delays, new airplanes running into teething problems in terms of the technology not working exactly as they wanted to at first. so, yes, in that regard, it is not unusual to see these kind of things happen. >> phil, thank you very much. thank you for being up so early to talk to us, as well. phil lebeau joining us from

houston on the phone live cnbc. now, our next guest staying in the sector is taking a closer look at boeing. peter armenti, he joins us from providence, rhode island. peter, what do you think we're going to hear out of the research day tomorrow? >> yeah. i think -- well, good morning. thanks for having me on. i'd say really three things that come to mind. one is this is the -- really, first time we're going to see boeing's production line of the 787 down in charleston, south carolina. that's their first final assembly line outside of the houston area -- i mean outside the seattle area. that is one -- i think one of the things that investors are focused on, the fact that, you know, that they're going to be skoous executing and what kind of capacity they have in place. i think that's one of the big areas that investors are focused on. also, i think the focus on when they're going to be launching the derivative aircraft

versions, the 787-10 is expected to be formally launched in june and then the 777x which is a follow on to their popular 777 program later in the year. i think investors are looking for more details there and then back to capital deployment in particular, share buybacks, you know, they've announced a 1.5 to 2 billion share buyback program at the beginning of the year. we expect that's just the initial tranche and that we think there will be a lot more shareholder enhancing activities, in particular buybacks. >> we were trading as we were just talking to phil about -- we're trading just high of the $100 mark for boeing. am i right in saying you think there's a 50% potential share upside to the share price? >> you are correct. we put a formal target out recently at $120. but in that same research note, you indicated that there's the potential for a 50% move in boeing, which would put it closer to probably $145 a share. and that was based on if you look at the amount of excess

cash or free cash flow, they're going to generate cumulatively over the next three years, we're talking about over $18 billion. they already have a very strong balance sheet. they have enough in terms of the -- their -- on their investment plate that they can easily handle developing the derivative products and they think that excess cash is going to be put to work buying back a lot of stock. and i think investors are very much focused on that. you put a reasonable multiple on some of that cash and i think that's where we see the significant upside coming in boeing. >> well, what type of a rest of the year do you think airlines are going to have in general? is the march high going to continue? >> well, we don't formally write on the airlines, but in general, what we've seen about traffic globally is it's been very resilient. we've had, you know, softer economic growth around the globe. but, you know, global air traffic has been very strong.

we've seen, you know, strong international traffic. we're seen good domestic traffic both here in north america and we've seen some strength in europe. the premium class category. so the business class travel remains quite healthy. so that's, you know, very profitable for airlines in general. so we think that there's going be another year of profitability for the airlines, which is, i think, entering their fourth year, which we haven't seen consecutively of them making money. so that's very good fwor boeing long-term, good for airbus, the industry, as a whole been. >> peter, thank you very much. we appreciate it. still to come here on the show, u.s. markets closing out the week with another record high last week leaving some investors looking for a correction. the next guest saying appears should stay away until at least july. raymond james joins us in a moment.

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hi, everybody. i'm louisa bojesen. you are watching "worldwide exchange." getting you your headlines from around the world, yahoo! is expanding its foot print in social media. cnbc confirming with a source close to the deal that the internet giant is scooping up one of the hottest sites on the web, tumblr. silver is tumbling to numbers not seen in 2 1/2 years.

we're looking at data showing us big buying side managers are cutting long positions in precious metal peps. and north korea does it again, reportedly launching itself fifth long range projectile in three days. and taxing times for google's chief executive chairman eric schmidt is defending the tax contributions ahead of a meeting with prime minister david cameron. reports are suggesting he could be a no-show. >> you're watching "worldwide exchange," bringing you bus news from around the globe. >> hi, everybody. welcome back again. glat glad you're with us. if you're just joining us, good morning, good morning, good morning. it's still very early stateside and pretty early some place necessary europe. but we are well under way and i want to show you what we're

looking at. we're a couple hours away from our u.s. markets open. but all of the markets being called lower by a couple of points, the dow down by some 20 points or so here in the corner. we're looking at a slightly negative open as of now for the u.s. main indices. the ftse global cnbc 300. up 0.25%. we recapped what type of a week it had been, and it was net-net a positive week. we're just continuing our climb higher, 56.44 on this particular index this morning. main markets looking like this. if i move out of the way nicely over here, you can see the cac 40 higher by a few points. the xetra dax up by shay of 0.5%. the ftse 100 a couple of points higher. stocks that are weighing this morning, the ftse mib off by

0.7%. how do you make money, though, in these markets? that's why you're in them, right? you're not in them for fun. this is what some of the experts have been telling us this morning. >> right now, it's long dollar front. this benefit from this market in which investors are increasing the exchange and the dollar, as well, because here is a surprise to the upside despite the tightening. >> i think it's quite a lot weaker from here as it's developed as that has spread across now in headlines today in the oil and coal mining sectors and, as well, into the long end of the credit because people are continuing the risk to the downgrade.

>> but in last year, these other countries. you have extreme levels. so the natural switch over and you don't quite like the structure. by the uk government bonds yielding, too. this week, we have a lot of people focused on big ben as u.s. fed chief ben bernanke is set to deliver his outlook on capitol hill. but the debate on whether and when the fed should be tapping the brakes on quantitative easing or whether they should keep printing full speed ahead is going to be the main talking point. currently, the fed pure chases $85 billion a month in treasuries and purchases. jeffrey sar, chief investment strategist from raymond james joins us. jeffrey, do you think that the

tone is going to become a bit more hawkish? >> no, i do not. if you look at the economic data that has been coming out the past few weeks, the majority of it has been on the softer side. so i do not think you're going to see a move towards a cessation, if you will, of quantitative easing. why do you think that there's so much fed speakers, governors coming out with comments indicating that qe could be tapering off as early as this summer? looking at the underlying economic data and talking to a lot of people around me, it feels very early. >> yeah, i would agree with that. again, if the economic data continues to be on the softer side, i have no belief that quantitative easing will go away anytime soon. in fact, i think it's going to be with us for another 18 to 24 months. does that mean buy for the next 18 to 24 months?

>> i have been selling to anybody who would listen for the last several months. professional money managers not only have performance anxiety, but now they have bonus risks and ultimately job risk because most of them are underinvested and underperforming. once we get into the end of the quarter, i think you get a poe layerty going into july and august. at that point, i think the s&p 500 is acceptable to some size decent pullback and then i think it trades higher into the end of the year because i think the economy picks up steam. >> how much of the pullback would we get? when you look back at some of the previous corrections we had in equity markets, some of them recently, two years ago, three years ago, were led by commodities. but the pullback was substantial before we started our march higher again. >> yeah, i don't think you'd get the kind of pullback you've seen

for the past few years. in fact, one of my mantras has been sell in may and go away is not going to play in 2013. i do think year going to be susceptible to a pullback sometime beginning in july and august. >> so your preferred sectors or area of value at the moment are where, then? >> i like just about all the sectors, except for utilities and consumer staples. i think on a historic look, they are fairly expensively valued. so, you know, markets can go higher than anybody believes. they can also go lower than anybody thinks. so at the margin, i would be taking money out of utilities and consumer staples and actually looking at technology, which is more valued than utilities right now. >> jeffrey, stay with us for a moment. we're not quite done with you. we're going to talk a little bit more in just a moment. so hang on one second.

i want to tell viewers that yahoo! is stepping up its social media presence reportedly agreeing to a mega deal for a popular website tumblr. raymond moody joins us with more from cnbc headquarters. this is a big deal, siema. >> it is a big deal. yahoo! has agreed to buy tumblr. this would be marissa mayer's biggest deal yet. yahoo! has lagged in the social media space. tumblr is one of the most popular services on the web with 175 employees and they have raised more than $125 million in venture funding from several big name firms. this deal would be a test to mayer to ensure that tumblr doesn't fall to the wayside as past yoo-hoo deals have. yahoo! has declined to comment

on the deal. however, mayer and team had a press event scheduled for later today in manhattan that promises to be special. shares of yahoo! have gained better than 70% under mayer. >> thank you very much. jeffrey is still with us. jeffrey, do you think we're going to see a lot more deals here in the next couple of months? i mean, is the deal environment, is it ripe? >> i do. i think that on average, the companies in the u.s. are undervalued on a medium basis. and i do think you're going to see m&a activity pick the up. we're seeing it here at raymond james, as a matter of fact. >> jeffrey, thank you very much. just monday getting well under way. chief investment strategist at raymond james, getting up very early to be with us. thank you very much for that, as well. give yourself a bit of a walking

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hi, everybody. welcome back. you're watching "worldwide exchange." i'm louisa bojesen. we need to take a look at some other top stories we've been following. one winner and lots and lots of lotto money. one person purchased a powerball ticket worth $590 million in the record drawing. if the winner takes a lump sum, it will be a $370 million payday, the second largest ever in the u.s. incredible. incredib incredible. i always wonder, if you win the lottery, do you tell everybody that you've won or do you just kind of keep it a secret? >> residents throughout the u.s. midwestern states, they remain on high alert as a powerful storm system hit much of the midwest. doesz of tornados spawned the area as a train of debris sketching across the several states took hold. homes and businesses were ripped apart, trees were left uprooted and thousands were left without

power, as well. and 60 passengers were hurt in a connecticut train collision this past weekend. investors say the commuter trains were traveling around 70-mile-per-hour at the time of the collision. international calls for an end to pyongyang's provocations appear to be falling on deaf ears. south korea's defense ministry says yet another short range proje projectile occurred today. the u.n. says pyongyang will gain nothing from such acts while the uk chief ban ki-moon is calling for a return to dialogue. and our main headlines this morning, silver sliding to a 2 1/2 year low amid forced liquidations. yahoo! looking to snap up tumblr

for just over $2 billion. and north korea reportedly launching its fifth short-range projectile in three days. and today on cnbc.com, how low does the yen have to go before it hurts japanese economics? the yen pulling away from a 4 1/2 year low against the dollar after japan's economic minister raised concerns about the speed of the decline. find out more if you head on to our website. cnbc.com. and investors are going to be eagering watching ben bernanke's testimony on wednesday. according to a cnbc poll, it will prove vital to the direction of the oil price. get more details of that online, as well. and first it was gold, now it's silver. the precious metal has fallen victim to heavy selling in early trading. is this a buying opportunity? catch the investment call on our

website. again, that's cnbc.com. we'll have more on the silver sell-off and discuss what it means for your portfolio in a couple of moments' time. keep your e-mails coming through. again, my hair is my own. someone is still writing in about whether my hair is my own. i swear it's my own. there's not a single strand of -- it's all my own. we'll be talking more about our markets and strategy in a couple of seconds. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

[ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. hi, everybody. welcome back. you're still watching "worldwide exchange" on cnbc. i'm louisa bojesen. listen, i don't know what's gotten into you. you're writing in continuously about whether or not my hair is my own. it is, i swear.

athoops andhorses says it should be obvious to anyone who watches cnbc it's your own hair. sometimes it's curly, sometimes it's not. listen, it's just hair. many of you writing in precisely on the european markets. i'm reading a lot of your comments on the european export market. for example, leslie writes in and says your guest this morning was correct. we were talking about whether or not the opportunities outside of europe for companies in the uk wanting to do business on an export basis. and leslie agrees, talking about the percentage charges added to the basic to the very large. we also have comments coming through from henry writing in on silver. we've seen this massive correction in commodity webs right? henry writes in and says hate to see you fall prey to the current medal propaganda and your anti-p.m. producers. you might want to read the comments regarding silver today.

it's nothing more than central bank and bouillon bank rates to deflect the sovereign collapse in the near future. do you agree with that? there are always conspiracy theorists out there, right? but we're still seeing a correction. a lot of you commenting on the contest winner. if i win the money, i go to london and offer lobster to everybody at cnbc. fantastic. that is talking about the big lottery winner that just took place. that's a lot of lobster, big lob sters. we've got some big eaters in here. let's talk about the european markets, though, because we're looking at slightly higher markets in general. the ftse mib not quite getting there, but the rest of the markets hanging on to slight gains. there's a little bit of selling in basic resources. the correction lower, especially

in silver. now, we need to look ahead at what's on the agenda today. stateside, campbell's soup is going to be reporting earnings before the markets open. analyst res projecting earnings of 56 cents per share, which is the exact same as a year ago. and later in the day, we'll be hearing from the retailer urban outfitters where the street is projecting higher profits, as well. u.s. futures are indicating slightly lower market open. a couple of points down for all of the main u.s. indices. hedge funds, though, as we've been saying, they started selling gold in a big way. reports showing that an estimated $1.4 billion was pulled from the u.s. gold futures market in the week that ended on may the 14th. on friday, gold prices fell for a seventh straight session, marking the longest losing streak that we've seen for some four years. that's had an impact on silver, as well. sometimes we see a big of a bigger move in silver.

the developed markets versus emerging markets. kind of the same correlation. earlier, we spoke to a medal strategist of bofa global research in silver and whether he thinks prices will recover. let's take a listen. >> medium term is a buying opportunity. i agree. it's 27 or 28 dollars is a different question. but i think over the next, three terms, it will be higher than where it is right now. but right now, i don't feel that there is enough for the market to chew on in terms of fundamentals to increase outside long positions at the moment. >> well, ben likten style is president at tradersaudio.com. he's with us from the space. hi, ben. what do you think? the correction that we're seeing in basic resources right now, is that the going to have an impact longer term? >> well, i think right now for the most part, anyone who is predicting or calling this as a buy opportunity really is kind of just stepping out there and taking advantage of lower prices

than what we've seen in the recent past. but for the most part, with the recent decline than we've seen in the silver and the gold market, it's really anyone's guess. gold is approaching a key support level that it bounced off in the middle of april, that 1530 level. for the most part, in the beginning and through the middle of april and in that decline, i saw a lot of gold traders that were long and looking like the deer in headlights, just standing there not knowing what to do. and for the most part, that's dangerous. and i really sort of feel like we're approaching that level again. i think should we breach that 1530, 1300 level, we could easily see the bottom fall out in gold. 1200 or below. there's so many people out there holding physical, holding the paper that right now at this point it could be a bloodbath to the downside and easily the door could open up. but on the other hand, obviously, this could be a buying opportunity. but b again, for the most part with the energy being to the downside, i think stepping in front of this freight train is basically just that.

>> ben what's your strategy now? is it just buy, buy, buy because everybody else seems to be buy, buy, buying? you mentioned the middle of april and since the middle of april, we haven't seen a two-day losing streak for the dow or the s&p 500. >> yeah, that's a great point. we saw one losing day this past week. i think it was last thursday. we haven't been able to tie together two consecutive recent days since you mentioned since the beginning of april. prior to that, it was the middle of march. one thing i noticed last night is they tend to happen or they have happened the last time. they tend to happen on a friday and a monday. i'm not sure what that has to do with it. for the most part, it is status quo with this market. higher highs and higher lows. we continue to see strength, bid activity. we close on the week's highs, quarter highs last week on friday. so really, again, anyone who is fading this market, anyone who is shorting this market has had a difficult time with it. i know it kind of goes without saying, it's sort of the

obvious. but before we see a correction, we're going to need to see three consecutive days to the downside. >> ben, stay with us for a second. have you heard of euro-vision? >> no, i'm not familiar with it. >> my god, how could you not? denmark, this massively important country with 5 million people came out on top at this week yeps's euro-vision song contest. germany finished 211th. german pundits, they have been reflecting blowing angela merkel's tough line on austerity as a reason for germany's unpopularity among voters. for ben and those who haven't heard of it, every country has a song that then is presented at this forum, and denmark, some of us's home country won over the weekend. so we're celebrating quietly this morning, ben. >> congratulations. >> look it up online. >> thank you.

very emotional. very emotional. ben, it's been lovely seeing you. we'll talk to you soon, ben lichtenstein joining us from the states. see you very soon. bye, everybody. which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon.

good morning. today's top stories, commodities crunch. silver hit by heavy selling in early trading. gold also dropping. a deal for a disrupter. yahoo!'s board has agreed to buy blogging service tumblr for about $1.1 billion. and taking flight, boeing's dreamliner will fly in the united states again after it was grounded for nearly 123 days. it's monday, may 20th, 2013 and "squawk box" begins right now.

good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. let's start things off with the markets this morning. check out silver. the medal hit by heavy selling. at one point tonight, silver hit a low of $20.30. that's down nearly 4% from the start of today's trading. what they talk about as the liquidation trade. that's where traders are forced to close position to meet margin calls elsewhere. this has been a trend that's been developing for quite a while. gold trading lower today. on friday, the trade data showed that hedge funds and other big speculators in the commodity have started selling the metal. this morning, you can see gold down by $1