kuroda promises to help stabilize the country's turbulent bond market. hear from the man himself with the central bank's desire for stability. this is a big moment for japan and mr. bulletin says he's been outlining his concerns for the u.s. and what he calls the wild card. >> before we received -- at least before i was looking at tapering, i would like to see some reassurance that inflation was going to move back toward target by a measure. and a mini invasion in london. thousands of football fans descending on the british capital for this weekend. all the final, we'll be joined exclusively by the tournament sponsor, adidas. sdwla you're watching "worldwide exchange," bringing you business news from around the globe. >> announcer: and we kick off the program with the -- probably

the post important indicator out of europe, it's the ifo sentiment, business climate index. 105.7 better than the forecast 104.5. also a slight tick up, 104.4 previously in april. current conditions are 110. that was better than the forecast 107.2. and the expectations index, 101.6 in may. that was in line with expectations. otherwise, a little bit better. it's just taken euro/dollar up to the best levels of the session, 1 is 129.50. we had a reprint, really, of german gdp today confirming the stop up 1.4% for the quarter, as well. right. let's get some recap on that. the german business climate

index 105.7 versus the consensus forecast for 104.5. hi, debas, a better number than we just thought. we had a confirmation of where german gdp was in the first quarter again today. how would you break that down? >> well, i think we have yesterday seen a bit stronger pmi from germany. all in all, i think we have had stronger industrial production orders in march. all of that, i think, suggests now after the relatively disappointing growth figures that we had in the first quarter, that's the pace of growth. i think it's going to speed up a little bit in q2, probably to 0.4% q on q. and then, of course, we need stronger head winds from the global economy for the german growth momentum to really, you know, gain speed in the second half of this year. but overall, i think growth for germany this year will be slower than wa we saw in the beginning of the year. >> and when you combine that slower growth with recession now

in france, what more action might we get from the ecb? >> well, i mean, we will really have to see what the ecb can really do. because if you look, for example, we already have record low interest rates in germany, also in france now of course with the premium over german bunch. but nevertheless, you know, despite these record low interest rates that we have, there's still no bank lending and that is not because there's a credit crunch simply because there's no demand. that simply has to do with the small and medium size to come. that's not only a euro area product b well but that relates to the global economy and there is very little the ecb can do. >> do you think the credit channels are impaired, then? >> well, not in the core. i think in the car, we are closer in the situation to what we call a liquidity trap, in which we simply despite low interest rates, you still don't generate the additional stimly

husband for the economy. you think what you really need is a pick up in the growth momentum in particular when we see the weak chinese sentiment data that we had. also in the united states, growth is slower because of the sequester. i think these are the elements that will be required and needed for stronger growth for the economy to pick up and you get stronger growth in the periphery. >> in the periphery, we've gotten better credit. is there a requirement for the ecb to launch their own version of the bank of england's funding lending and talking about what they might be doing? >> i think what is right is the talk about the abs. in particular, backed by smaller and medium sized companies loan. if you look why we have some poor bank lending in the periphery, this is mostly because banks are fight, weak capital positions. and if you would give them a chance to get some of their

credit off the balance sheets, i think they would help to stimulate bank lending in the periphery. the ecb needs to take credit on the balance sheet and this is something taing some of the governing council members still oppose. >> stay there. we'll come back to you in just a few moments. right now, let's bring you up to speed where with we stand with quite a session yesterday. the knock, very volatile. dropped down towards 3% at the end of the session and managed to climb up at the end around 0.9%. as far as the rest of the asian markets are concerned, keeping their eyes on was going on in japan. mixed day. we saw the aussie/dollar continue to weaken. hang seng just off 0.25%. the haasky up 0.2%. a steady day in terms of where we finished in price action. european markets by and large are having their worst day in about a year. down 2% for the big averages. this morning, very cautious.

just up 0.1% for the ftse 100. the sweat rax dak, as well. cac 40 up 0.5% and the ftse mib up 0.3%. bunch, the ten-year treasury steady at 2.057%. jgb at the moment yielding 1.4%. gimt 1.91%. dollar/yen, 101.72. we got to fresh 4 1/2 year high during the session yesterday, 103.74. down to 100.83 this morning. that is a two-week high for the yen against the dollar. and the aussie, 0.9655. we're down near not far away from the 2012 low on the

aussie/dollar. down around 7% this week. and cable, sterling/dollar just under 1.51 at the moment. meanwhile, the bank of japan's governor tried to calm market fears over the country's unstable bond market. mr. kuroda reiterated that the bank of japan would be flexible in the bond markets. he also said he was confident the bank could curb volatility, although he wouldn't delve into the market's recent wild swings. >> translator: we do not have a specific target for stock prices or in the foreign exchange market. i will not comment on their day-to-day moments. but when it comes to the japan government bond market in which we are directly involved, single moments are highly desirable. and kuroda said if the central bank continues to buy jgbs, we'll likely see stronger cuts to risk premiums. the nikkei correction is long await. investors are expecting it. that's according to the global strategist joining us from hong

kong in the next hour. tune in to find out why he thinks the plunge is no cause for concern. we also have announcement here. heathrow airport is closed after an aircraft incident. keep your eye owes that if you're traveling today. that will cause a huge disruption. we'll bring you more on that. we want to go back to tobias. we've been looking at what's going on here, the weakness in the yen that we've had. i'm wondering how that is complicating the picture for german export companies. clearly, the euro strengthened against the yen as well as the dollar, as well. how is that feeding through? >> in the medium term, it will almost certainly have an impact. simply the depreciation of the yen was so massive that, of course, in particular, when you look at, you know, german consumer goods, german capital goods, there's a very strong competition with japan in particular in the fast growing

asian markets. so this is something that german companies will most certainly feel in the second half of this year. we actually had a very interesting chamber of commerce survey from germany out yesterday, a survey of 25,000 companies and they have actually -- you know, they have said that this is one of the factors impeding their growth in the export markets in the second half of this year. so, of course, the issue is can this depreciation of the yen be sustained? >> we hear yesterday the central banks weren't involved in competitive devaluation. do you agree with that or not? >> partly, i'd say so. you really have to see each central bank takes position in order to try to bring their own domestic imbalances into order. and if you look at the situation in japan, i think it is wise what they're doing. they're trying to escape that inflationary trap that is

impeding growth for nearly two decades now. i think this is a good thing to do. that comes with the depreciation of the yen or try to improve the export competitiveness of japan. it's a side product, of course. it's welcome for these country doing quantitative easing. most certainly it is engineered in order to try to bring stronger growth within the domestic economy. >> all right. just more on this heathrow incident, it's sky news and it's linked to british airways plane according to sky news, as well. british airways says it's investigating an incident involving a plane at heathrow. don't quite know what the incident is, but it has closed heathrow airport. now, on its trip to britain, james bullard has said the ecb should be more aggressive in order to get a grip on the eurozone crisis. bill arder is a voting member on the fomc and said it's hard to

britain to avoid europe's troubles. >> the trade flows are not so critical that europe being in recession is going to have a huge impact. it does have some impact through direct trade that those are, you know, small enough that other factors can overcome that and you can still get relatively rapid growth, relatively good growth in the u.s. whereas for the uk, that's a taller order to make for the uk because it's just not going to work very well. you have a weakening in france and the continent as a whole with 12% unemployment. >> yeah. tobias, the other thing that he was talking about is the market sort of overinterpreted the minutes or mr. bernanke, as well. do you think that is true? >> well, for sure, i think, you know, given that we have to see where we are right now, most of the markets i think in the global financial markets are

liquidity driven by now. so it's very, very natural that we have this kind of volatility, that we have these kind of nervousness and anxiousness among investors because all of these developments are no longer really underpinned by real economic fundamentals. and so in that accepts, i'm not sure whether there was an overreaction. if you look at german long-term yields, they are corrected by a logic sense. i think what was priced in was that the fed will indeed slow down the pace of asset purchases. the developments that we had in japan, i think they are a product of a long liquidity-driven bubble. >> you did see yields at auction for spain yesterday, for the first time in a while just come in higher. have we seen the low these year for yields auction yields for spain? is the spread going to widen

between those two? >> well, i think when we see in particular how much foreign investors have put into the spanish government bond markets over the past six or seven months, it was quite restless. there was a big inflow from foreign investors outside the area. now over the past two months, we have seen that the peace of these purchases have slowed down significantly. so i think what we observed is we had a lot of global managers very much underweighed in the periphery in the summer of the last year to achieving a more neutral, maybe even overweight position in their portfolios now. so looking forward, there's a huge financing need for spain in the second half of this year. i think at the current yield levels, it will be very, very difficult to convince investors with more neutral positions to buy more of these bonds at the current yield levels. that should be a sign that yields might have to rise in order to meet the demand of spanish bonds in the market.

>> thanks very much, indeed, for that. just a little bit more on heath row. we're getting reports that the whole of the airport isn't closed, they have closed two runways, apparently. we are waiting for confirmation of that. we'll bring you more on that, as well. ecb president mario draghi was in london last night to attend a dinner hosted by the lord mayor in the city of london. in his speech, he said economic conditions remain challenging. >> what i can say, i can clearly say is that europe needs a more european uk as much as uk needs a more british europe. >> draghi didn't give a lot away last night as to his next policy move. instead, he pressed eurozone

governments to shape up their economies. >> today, these recommendations are commonly regarded as having set out the principals by which both central banks should conduct lender of last resort operations. >> and you can find out what else the ecb chief mario draghi had to say about the place in the euro. the debate heats occupy wales at cnbc.com. what else is on today aes show? we'll be in madrid over an investigation into the public offering and subsequent bailing out of bank here thp this is a day after bankia fell 3%. soccer fans converge on europe. we'll be joined in the studio by

the match sponsor adidas. there have been concerned raised about the world cup and the olympics. can the country jump start its infrastructure investments? we'll talk about that at 10:40 cet. continuing with the sports theme, i'm very happy, it's the most glamorous fex temperature of the f1 calendar. we'll be joined by the principal of lotus f1 team as they prep this weekend's monaco grand prix. and we'll be in cnbc headquarter in the states for the latest on the dramatic return of ag laugherty at the helm of procter & gamble. he thinks the predecessor will be stepping down for a number of personal reasons. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me.

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all right. we're just getting more details about what's been going on at heath row this morning. we now understand from bla that one runway has been reopened. two runways were closed after an incident involving a british airways plane. we have heard this morning that

effectively as we understand it, a ba jet took off and noticed debris falling from it and had to ground it again and then we understand that that plane was evacuated as a result. two runways were closed, one of which has now been reopened. let's show you where we stand with international airports group, which is the owner of british airways. stock is currently down on that news, just 0.8%. the company that owns heath row, up 0.25%. dipped down slightly when that news came out. a management shake-up of procter & gamble as the company brings back a.g.lafley as ceo replacing bob mcdonald who is going to retire next month. mcdonald had been under pressure after weak results. he implemented a major

restructuring program last month. last month, p&g reported weak first quarter sales and in a memo to members, mcdonald said he's resigned because he thought he was becoming too much of a distraction. procter & gamble stock up around 0.5% at the moment. the irs official at the center of the scandal over the agency's targeting of conservative groups has been placed on administrative leave. learner oversaw the tax exempt provision. new acting irs commissioner daniel werth will put learner on leave after she reportedly refused to resign. on wednesday, learner wouldn't answer any questions during the hearing on the scandal invoking her fifth amendment right against self-incrimination. spain's market regulators said it will investigate high volume trading of shares yesterday to determine if the activity was legal. the lender's stock price fell

over 50% during the unusual session. the probe comes as the chairman of spain's three biggest banks, including santander's amelia botter are due to appear in court today to answer questions over bankia's ipo. stephane is in madrid with the latest. here is this line of going to go? >> it's not a trial at this stage, ross. it's a hearing. the prosecutor wants to know how they've been involving the ipo of the banks, what did they know about the situation of the bank and precisely, he wants to know about a meeting that took place just a few days before the resignation of the chairman of ban kia in 2012. it's part of the investigation to know if the former management

of bankia. bear in mind that the investigating magistrate so far has not built in the formal change against anywhere and could see it's a bank probe still going on in spain. this hearing today takes place as the market regulator announced yesterday that if you look at the trade, the heavy volumes yesterday on bankia trade, 50 million shares were traded in one day, so about 42 times the average daily volumes for the bank. thousands of small investors yesterday swept their investment bank, whether it's shares or a hybrid debt into the new shares of bank ya. it's part of the recapitalization of the bank. they knew they would face a significant haircut, around 40%. but they lost much more in the end because yesterday the share

price of bankia was down 52%. that is not authorized under the spanish market route. that is the reason why the market regulator has decided to look closely at the case. >> thanks for that. meanwhile, spanish banks might have to set aside $10 billion in extra provisions to cut bad loans. the new round of provisions adds pressure on the country's weaker lenders, which may be forced to raise capital through asset sales and tap the national revenue funds. pretty volatile session for the nikkei today, up 3%, down 3%, finally closing up nearly 1% in the last seven days. we've seen this sort of activity. down 2.8 pefrs.

of course, it doesn't take that 7% fall yesterday. let's get more. joining us is our nikkei corresponde correspondent. toshiko. >> hi. japanese government bond yields shot past 1% yesterday and the country's top leaders are trying to defend their economic strategy. the ten-year bond yields down to 078% today, but the bond market is far from being calm. the bank of japan governor spoke at a conference today in tokyo and reiterated that it is extremely desirable for the nation's debt market to be stable. he insisted that the central bank will conduct flexible market operations to head off volatility in bond yields. he also said the boj will continue to strengthen its communication with bond market participants. the prime minister shinzo abe

said today that the government will stick to the abenomics program to develop growth. he promise to bring a fiscal structure that would be sustainable in the long-term. the central bank announced a $20 billion liquidity injection yesterday and also said it would buy $8 billion of jgbs. but many analysts are expecting the interest rates to rise even further. and some are calling for the boj to step up efforts to stabilize the rates. back to you, ross. >> toshiko, thanks very much indeed for that. that's the latest from the nikkei. still to come on the show, a massive overstructure ride of the world cup, but can it build its way out of economic stagnation? more on that when he we come back. 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.

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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. and here are the headlines from archbd the globe. european stocks stead ji after another volatile session in japan. the nikkei going from a 3% gain to a 3% loss and finishing the day up nearly 1%. the bank of japan governor promises to help stabilize the country's bond market. we'll hear from him on the central bank's stability. the fed chairman james

bullard tells cnbc this is a big moment for japan and this is the market volatility. he's been outlining his concerns over the u.s. and what he call tess wild card. >> before we will see at least before i would be in favor of tapering, i would like to see some reassurance that inflation was going to move back towards that measure. and a plane makes an emergency landing at heath row airport after the engine reportedly catches fire. all passengers and crew are said to be safe. all right. closed at heath row following an incident earlier with a british airways plane. we now understand that the southern runway is currently closed. all passengers have been safely evacuated from the plane which

is on the northern runway. there are no reported injuries. the southern runway was closed for a short period. that has now reopened. we understand this plane took off and then shortly after that was ordered to land. that is the latest from heath row. so at the moment, the northern runway closed. let's keep our eyes on that. iag shares stock did take a dip down when that news came out. i don't know whether we've got the board. it did take a dip down on the news and we'll see whether it's rebounding. indeed, it has. and ferrovial who owns bofa, now up 0.35%. dollar/yen, 101.95. we got down to 100.83.

it's been volatile for the nikkei and for the yen, as well. euro/dollar, firmer, 1.2982. it's worth pointing out the ifo climate index in germany coming in better than expected this morning. around 107. meanwhile, bond markets yield today not doing an awful lot. there is a bit of caution. keep your eye owes the ten-year. jgb, 0.85%. as far as european equities are concerned, after the 2% falls we saw yesterday, a little firmer today for the xetra dax, cac 40, ftse mib. the ftse is flat. ftse mib up 0.5 mers. for the nikkei, volatile session, up 3%, down 3% and then closing up nearly 1% today over the course of the last seven days, it's down nearly 3%. joining us from hong kong with his views, nicu kamada. good to see you.

how would you characterize what was behind, what's been behind these moves? we've just come too far and people were looking for an sclus? >> yeah, i think that's the most simple and straightforward way to put it. if you look at some of the details in the market, there's a bit more to the bone because, of course, we had some volatility preceding this move in the japanese bond market, which is a pretty big and important market. so there are some reasons to be concerned about and some relatively good excuses to take some chips off the table of this bond market situation. hopefully calms down. it has to large degree and also do not forget there is an election upcoming in japan, potentially an important one. so, you know, ahead of such an important event, it's not

uncommon for markets to, you know, adopt the wait and see attitude. now, given that japan has ral rallied a lot, it's a bit more volatile than what we would have seen, for example, in the u.s. ahead of the previous elections, the presidential elections. but at the end of the day, i think it's a correction rather than a change in trend. >> up 70% since the launch of abe-nomics. is this because we're questioning abe-nomics or is this actually more to do with the global investors getting worried that they're drug from a fed, they may be to be weaned off earlier than they thought? >> well, i think that adds to t the many excuses at the moment. mentioning the word, taking back qe in june in one sentence is scary to some people. i think it's slightly

exaggerated. they obviously wouldn't do that until the economy is really showing signs of an improvement, especially in the labor market. but there are plenty of reasons to say, well, let's take a breather here. in most cases, it's a rel ofly normal breather. in japan's case, it's a bit more volati volatile. but mother-in-law, that's about that. >> you think that the basic uptrend is in tax. as an investor, what do you do during the next -- you know, are we re-evaluating, we've got the selection, we're going to wait to see what the fed does. is there an argument you sit tight or do you offload a little bit at the moment? >> well, i mean, if you're talking in the context of a global asset allocation, we are sitting tight essentially at least for a few more days to see if there is something more fundamental going on, which is not our base case. but basically, we are sitting tight because, you know, in an allocation, you have other on things that balance you off that

provide you the necessary cushion when you have volatility. so our base case for japan is we will remain overweight, it will take times a few weeks before the market returns to its uptrend and, you know, for that to happen, we probably need to see a bit more clarity on the third arrow of so-called abe-nomics, which is structural reforms where he has been so far overpromising and somewhat underdelivering. i do think the writing on the wall is clear. there should be structural reforms coming and that should give the market a boost after it calm down a while. >> clearly, it will take some time to see any structural reforms and may see may take a while to see an impact on the bank of japan measures. can the -- can investors in bond markets wait to see the

evidence? >> well, i do think that the market is always a forward-looking mechanism, albeit slightly manic depressive as we've seen in these days again. of course, the most important thing for the time being is the game changer that the bank of japan introduced. that alone is capable of sustain bing this for a while been we have the fiscal stimulus coming in, as well. in japan's case, you could call it a stimulus because there has been a lot of things that have been physically destroyed. and that stimulus was just past parliament a few days ago. so its very early days.

as long as we have the outlook that mr. abe has a plan for structural reforms and that there is also a fiscal medium to long-term plan coming and he has good chances to win the elections, which i think this is the scenario that it will play out in coming weeks, not years, then that should be okay for the market. whether it will truly deliver, well, that will show, you know, that will take a few quarters at least until we see it in the number. but for the time being, i think that markets have that patients and do give the abe administration the thumbs up. >> is more down side possible? >> i do expect in the next few days, there is still some down side, 3% or 4%, that would bring us to about 15% or so from the

peak in the major japanese industries. that would be a healthy correction in technical terms, shake out some of the more players in there. but at the end of the day, there seems to be some good bidding in that 34k9, amarket, and that's thing. log on to our website and find out why another analyst thinks the banks could be the edge for japanese banks. the inauguration comes after months of delays. technical problems were reported during its soft opening late last month. the envacation of the field is part of a plan put forward by the current administration.

they're seeking almost $20 billion from private investors to upgrade its roads, ports and railways. carlos is head of latin america's exclusive analysis. thank you so much indeed for coming in. how much investment, how much does reserve infrastructure need to catch up? >> i think it's looking better now. indeed, we're talking about maybe 1 trillion. we did take into account what the current unveiling 20307, 2010, we're talking about 350 billion plus. there's going to be another 520 billion between now and 2016 and even beyond. so when you put that altogether, we're talking about $1 trillion. and indeed, that's where we're going to see the need because

the infrastructure bottlenecks could take out from brazil about 1% of gdp if not more every year. in fact, the average rate of growth should be about 4% of gdp. but last year was only 1%. this year yb not see 3%. and one of the main factors concerning growth was precisely the serious infrastructure bottlenecks. for example, in 2013, exports from brazil are going to increase by 400%. how could you handle that with the current port, the state of poor infrastructure, highway infrastructure? kwie ironically, the cheapest -- in the world is the brazil soil. at the game of the form. but then when you have to take

the soil from the hinterland to the portal centers, the rise there and really to be exported is expensive, than is soil produced in the u.s. so whatever advantage brazil could have has been undermined because of the serious infrastructure concerns. >> so, you know, transport costs essentially undermining the country's competitiveness. but how do they -- how do they get to grips with this? you talk about this perhaps it's a pack program. they planned between 2007 and 2010 through $350 of investment. how much is behind schedule? how much has been completed? are they delivering on what they have already planned? >> well, i think there is a discussion here in the payment of service says that the first face of the park, the ambitious infrastructure program brillat,

was about 70%. the government claims it was 90%. the second park which is the current one for more than 400 billion already is behind. i think one of the main constraints is that a good number of the highway projects are going to be based on the private public partnership. this growth is going to, on paper, is constructive for the private sector. they probably need the fees and the courage -- to the -- of the highways until two months ago were not good enough. nonetheless, the last month, the government decided to amend those incentives and it appears now the rate of those highways for private concessions are going to be better than

previously. we're talking about 7% compared to 5%. brazilian development bank is suffering very good subsidized credit lines. i think that's quite a broad term. because if you need to -- if 50 mers of your capital to develop these highways can be offered by the brazilian development bank are competitive pace, that would be quite significant. >> it has been a cup call for the brazilians. they know they need to improve infrastructure. they have been falling behind. and they don't want to become a lot in fact sfok internationally. for that reason alone, they are

pushing very hard to develop all this infrastructure projects. brazil needs their own infrastructure on the world cup and the world cup has been excellent incentive for this. i think what they are worried about is the hotel capacity. i think that will be a major bottleneck. if you go to rio today and try to book a hotel room, you will struggle. so what is not clear yet is will brazil be able to double room capacity by 2016? that's a big question. it will be quite difficult. >> not long. two-and-a-half years is not long. carlos, good to see you. if we have any friends, maybe we

need to find friends to stay with. highways an amazing stat, only 10% of the roads are paved. brazil, the world cup going on there. bayern munich is taking on borussia dortmund. adidas has designed a special 50-year anniversary ball which celebrates the european showcases held at wembley. still to come, we'll ask him for his thoughts on the game and his business in general for his thoughts. football european style has landed in america. manchester city defeated chelsea 4-3 before a sellout crowd of the st. louis cardinals stadium last night. maybe that's why james bullard was here. the teams will face each other again at the yankee stadium on

saturday. this comes after manchester city announced this week that it was teaming up with the yankees to form a new major league soccer team that will play in new york in 2015. so we want to hear from you. can football/soccer as it's called in the states, actually score a business venture in the united states? join the conversation with us, tweet @cnbcwex or direct to me @rosswestgate. still to come, we're getting more statements and comments out from reeth row, as well. ba flight 762 from heath row to oslo was landed shortly after takeoff. the aircraft and the emergency landing was an a-319.

it landed safely. it was carrying 75 customers. the emergency chutes were deployed. the london fire brigade said there was a fire on the aircraft, but it's believed to have been out. one crew was assisting airport's own service. that is the plane that took off and landed. we'll continue here with more on "worldwide exchange" in just a few moments.

just to bring you up to speed, you're looking at ba flight 762 taking off from heath row. the passengers, 75 of them were evacuated from the plane. the lobbed fire brigade said they have sent an engine to assist an aircraft with a fire. the fire is believed to be out. that plane is currently sitting on the northern runway. both the northern and southern runways were closed. the southern runway has reopened. no passengers or anyone on the plane says the crew were hurt. we'll keep our attention on that.

meanwhile, the shares continue to outperform on the broader hong kong market today, up nearly 4%. it's the top gain on the hang seng for the second straight session. this after the pcmaker reported its fast et growth of in the past seven quarters. cnbc's emily chan met up with the cfo in hong kong and asked if waning growth on lenovo's home turf in china could weigh on its prospects. >> china is a very important market to us, but if you look at other regions that we have, adla, north america, so china, having the slowdown in china for the last couple quarters has an impact inevitably. because if the markets come down, if you are flat, you are not dproeg. but for us, i think now we have a much more balanced portfolio in terms of geographics. i think it's performing the

really is obviously near. that's very, very high growth. >> now, there are a number of white takeover targets out there. lenovo the sitting on a cash pile of $400 billion. are you plannin to grow organically or throughout the position? >> we always, i would say we do not rely on inorganic to drive our growth. we always actually have flow options, both organic and not organic. we will not buy for the sake of buying. it has to come in to fit our overall strategy, the right valuation, and more importantly, i think it sits in the overall lenovo operation so we can integrate well. i think buying a company is easy, but trying to make it work, i think being part of your own business and make it work and work for it is probably the key factors we have to look at. >> as you suggested that lenovo was interested in ibm fo

business. hb just reported and the ebter price computing segment is work for them. is this the next leg for lenovo? >> well, we always have, i think in terms of our strategic direction, we always have the pc plus, which i think is consumer. and service is one of them. so we, again, look at all strategic efforts that fit into our overall strategy. >> would ibm's business be a good fit for lenovo? >> we are looking at an all strategic product to fit into our overall strategy when obviously we have an enterprise project the consumer will want to grow. >> meanwhile, trying to stitch up its leading balance sheet, it's likely to attract its health care unit. reuters says at least ten investment funds are expected to make offers.

kkr bain capital, carlisle, goods and toshiba are reportedly set to bid. the company wants to raise about $1 billion from the sale and is looking for a partner with medical expertise. securing around $9 billion in financing for its $25 billion with sprint/nextel. the move comes days after sprint agreed to enter into talk wes dish which is compete, the $20 billion offer struck last year by softbank. they're recommending shareholders go with the soft bank deal. as far as the stocks are concerned, softbank up 1.3%. dish network down 0.6% in frankfurt. japanese markets are clinging to the bank of japan. we'll get the minutes on the policy meeting.

china's airport industrial profits along with april trade figures for thailand. we want to remeend you this morning, you are looking at shots of what was flight b-762. the ba flight 762 from heath row to os low. it took off, returned shortly aft afterthe plane that you're looking at. as you can see, the emergency chutes were activated. the london fire pregad were called out. they say five crews, of course, fire affecting an airport at a heathrow airport this morning. heathrow's own fire service, two crews from the nearby fire station were standing by, as well. they suggest there was a fire this morning on the plane. that is clearly out. and that plane is sitting on the northern runway. two runways were closed, the northern and the southern.

the southern reopened not long after it was closed, but the northern runway is still closed because of that plane sitting on it. aig, the owner, took a bit of a dip down. ferroveil which owns london hea heathrow just on a lower session at the moment. still to come on the program, the dollar/yen falls on its handle, but what about the recent volatility over the last couple of days? we'll get into it. the next hour of "worldwide exchange" continues after this. ♪

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user watching "worldwide exchange." the nikkei swinging from a 3% gain to a 3% loss. it finished up nearly 1%. the bank of japan's governor promises to help stabilize the bond market. he's been hearing from the man himself. and federal reserve chairman james bullard tells cnbc this is a big moment for volatility. he'll be outlining his concerns

for the u.s. and what he call tess wild card. >> before you would by in favor of tapering, like to see some reassurance that inflation would move back towards target by the new measure. and meet the new boss, just like the old boss, procter & gamble brings back a former ceo to help the company's future. plus, a british airway he is plane has made an emergency landing at heathrow airport because of a fire. all passengers and crew are safe.

>> at that time of volatility within the nikkei. up 2%, down 2% before climbing up above the flat line, as well. european stocks, down 2% on average yesterday. it was the worst one-day fall for about a year. the ftse 100 at the moment is down 12 points. the xetra dax up 0.4%. so we got rid of the big selling and the volatility from yesterday. what about u.s. futures after we saw the dow down 12 points, the s&p down a little bit, as well. yesterday, the dow at the moment, we are some about 27 points above fair value, the s&p about 2 points above fair value. treasury yields right now, just over 2.022%. jjb of 80.845% yesterday, as

well. on the currency markets, keeping our eye on was going on on the dollar/yen, 101.84. we did in the early part of the thursday session in asia hit 103.74. aussie/dollar keeping your eyes on. we've been down to 0.9685 near the 2000 low. meantime, the bank of japan governor has been trying to calm market fears over the country's unstable bond market. mr. kuroda reiterated flexible operations given the yield advice. he said he was confident the bank could curb volatility, although he wouldn't delve into the market's recent swings. >> translator: we do not have a specific target for stock prices or in the foreign exchange market. i will not comment on their day do day movement. but when it comes to the government bond market in which

we were directly involved, stable moments are highly desirable. >> the central bank continues to buy jgbs. we'll likely see stronger cuts to risk premium. joining us from new york, yen, it's good to see you. look, just give us your sense of what's been going on over the last couple of days. we saw -- you know, we saw the yen up, as i say, down to that 4 1/2 low against the dollar, 103.74. a play is not spooked by what's going on, the fed, or are they questioning abe-nomics? which is the bigger driver? >> well, so there are three things that really played into this huge drop in the nikkei. we had the weak close in the s&p on the back confusion after the press conference. then we had the weak chinese data. then we had the volatility in the jgb market. but none of these factors

explain why we had a 7% collapse. the biggest explanation is that, in fact, we run up more on 50%. and, obviously, a market that is so overbought has the potential to collect violence and that's what we have seen. the big question going forward is whether this trend is over or whether we are just in sort of a consolidation phase. and i have to say, if you look at the equity market, we see increasing retail participation out of our franchise in japan and we think that is going to be a key component to sustaining the rally. >> okay. so this is just -- is this a buying opportunity, then? >> i think if we get stability for just a couple days, i think actually retail investors in japan would be out of the market for more or less 20 years are going to come back and that could sustain it, especially if we see some key reforms announced during june. that could be another leg up into the july election. they are very, very keen to sustain the momentum into the upper house election. i think they're going to be the

outmost to do so. and i think there's some past sign in the bond market that volatility is starting to come down. if we see more of that, that will sustain the trends in the nikkei and in the fx market, as well. >> how do they do that practically, sustain the momentum? >> well, so what we've seen over the last couple weeks is that they've become more active. they are very, very keen to anchor, especially the short end of the curve. they don't want to have the five-year bond, for example, being volatile. and personally, i think what they should do is to announce some type of forward guidance, similar to what the fed has done so we know that they're going to keep the overnight rate at zero for a multi year period. right now, we don't know exactly what the plan is in that time. >> no. it's a fair point. there is just the fact that since we sort of launched abe-nomics, the nikkei is up 70% since november.

so you can't -- you just can't maintain that pace. >> absolutely not. it's clearly a rally that has exceeded almost everybody's wildest dreams. but it's also policy framework that has really kicked in motion the number of changes, consumer sentiment has totally flipped around. we start to see cap ex plans picking up. so this is a policy that has so far been extremely successful. profit growth is going to rise dramatically just on the back of the yen weakness. so it's hard to say that the stock market is overvalued. we came arguably from the very, very cheap level and we're going to go through some weeks of volatility. but i don't think the upward trend is over. >> all right. look, let's look at the other side of this, which is how the fed and the fears that we've had about tapering may come sooner earlier than later. speaking earlier to us, james

bullard said any tapering should happen dpaully. listen to what he had to say. >> if we did taper, it would be to rachet that down from where we are now. so it wouldn't be, you know, a complete end to qe. it would be a somewhat slower pace of purchases. you would be easing policy, but not as aggressively as before. >> that doesn't sound too worrying to me, jen. >> no. i think we have a similar interpretation. if we look at what better fanky actually said, it doesn't look like the tapering is just around the corner. we think the current pace of pure chase could continue actually towards tend of the year. but the big issue for the market is that we have a divergence between the very short economic indicators and then what the longer term outlook actually is. and the short run gdp is looking like it could be below 2 mers in this quarter. that means that the fed is not going to move anytime soon. on the other hand, housing market is recovering.

the new energy skter is kicking in and deleveraging is less of a problem in the u.s. that suggests that next year growth will be stronger. that's the key problem both for the fed and for investors, how to balance those two things. >> do they hope completely in 2014 that -- >> well, actually, we've invented this new word, tapering means it's probably going to be a gradual process, probably not going to be a binary process. we think it's going to slow down the purchases, probably starting towards the end of this year. st what happens to bond yield through this process? >> so we probably think we've had this move higher in bond yields. we're going to be in a consolidation phase. the real break and yield higher we think only is going to come through when the data really shows that we are shifting into a higher gear in gdp. that will only happen once we see quester effect and the other

fiscal drags are starting to come out of the equation. that will be from the third quarter and more pronounced in the fourth quarter. >> and those higher europe has been sort of supportive of the u.s. dollar, right? has that been a key driver? so is that going to continue? >> yes. so i think actually we could have a situation where it's going to take a little while before the yields really break higher. but i think the dollar is going to lead in this move. we've already seen relatively significant dollar moves in the first quarter continuing over the last couple weeks. i think it's a structural trend and i think that could lead the yield move. especially crisis such as dollar/swiss, cable, dollar/canada can have significant moves in the next couple of months. >> thanks for that. good to see you, as always.

now, a management shake-up at procter & gamble. aglafley returns at chairman and ceo replacing bob mcdonald who will retire next month. mcdonald had been under pressure in his tenure after a series of weak results. he xlemtd a restructuring program last year. in a memo to vendors, mcdonald said he resigned out of concern that he was becoming too much ooh a distraction. lafley who picked mcdoonld as his successor, says the board called days ago to ask him to return. p&g in frankfurt up 0.7%. lois learner, the irs official at the center of scandal over the agent's targeting of conservative groups has been placed on administrative leave. she oversaw the division. chuck grassley says new acting irs commissioner put learner on

leave after she reportedly refused to resign. on wednesday, learner wouldn't answer any questions during a congressional hearing on the scandal invoking her fifth amendment, right against self-incrimination. april durable goods are out at 8:30 eastern. aber kromby & fitch and foot locker will be reporting results candidate, as well. and moving full speed ahead, can dish network reach? we'll tell when you 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.

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a roller coaster ride for the nikkei. europe is trying to be on the upside. an emergency landing for a airplane at london's heathrow airport. and out with the old -- well, out with the new and in with the old for procter & gamble as a.g.lafley is brought back to run the world's biggest households products maker. if you're flying in or out of heath row this morning, there

have been some delays. the northern runway is still closed because of a british airways plane, ba flight 762 to oslo was called back for an emergency landing. all 75 passengers and crew on the aircraft were evacuated. the london fire department was called, as well, along with the heathrow emergency services. it's believed there was a fire on the plane which was basically put out. that plane, though, sitting on the northern runway. heath row says that runway is currently out of action. other stories we're following today, dish network says it's close to financing a bid for sprint nextel. reports say the company has lined up commitments from five banks, including barclay's and jeffries. the move comes days after sprint agreed to enter into talk with dish which is competing with the $20 billion offer struck last year by softbank.

they based on that on june 12th. dish network is down 0.6% in frankfurt. sprint nextel is flat. softbank up 1.3%. the federal trade commission is reportedly investigating complaints from google's rivals that the internet dpient is abusing its power in the display ad market. the probe is in the early stages. the inquiry comes months after the equity ceo ended its long running in search of search and search ad business with most of the revenue generated by utube. google shares are pretty flat at the moment. plus, there's an official sponsor of the wembley final. adidas has designed a special anniversary ball celebrating the six past european cup show pieses held at wembley. after the break, we'll be joined by the ceo herber hainor for his

take on the game. that comes up shortly. reminding you of what's going on in european equities, we are weighted to the upside. [ driver ] today, my ambulance knew all about a bike accident, just by talking to a helmet. it grabbed the patient's record before we even picked him up. 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. 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. ♪

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the dow jones is implied 20 points and the nasdaq implied higher by 4. meanwhile, big date at wembley on saturday bayern munich takes on dortmund in an all german final. football over here. the shirt supplier, adidas could be set to enjoy a winning weekend. herbert hainer is in town for the weekend and joins us exclusively. do us adidas and -- >> in germany, it's adecember das. >> you do say that. okay. that's good. i always said adidas. i wanted to clear that from the man who runs the company. adidas it is. i'm happy with that. how important is the champion's league final? this is the champions of all the

individual leagues in europe and second and third place teams. it's the cream. how important is this to you for products and brand? >> there is no doubt that football is by far the biggest sport in the world. in the champion's league is where the best of the best in club football are meeting each other. and this is where adidas has its -- the business is slightly important to us. we are the clear number one in football overall and this final tomorrow we'll say it again. we are the supplier, the -- and i believe we will have outfitted the winner, which is bayern munich, hopefully. >> who outfit dortmund? >> puma. >> right, okay. this is a competitive business, though, right? sports wear. >> yeah, of course, because it is quite attractive. when you have seen over the last

ten years, how fast it is growing compared to a lot of other suppliers, when you clearly see who has been the winner in the industry. >> there's been a -- you know, sports wear companies and sports equipmentmakers, a lot of them in the last 10 years have focused on individual sports teams a large sum of money to become the face of different brands. is that going to be the same for the next years, strategy changing at all or are you still going to do this high profile bid? there is risk with paying large sums of money for individuals who may be volatile in other parts of their lives. >> this is definitely correct. but you want to have invested in your brand. this can be football clubs, but this will be also individual players because especially the young kids, they want to see their stars and you want to outfit them. and look at david beckham.

he's close to 20 years and he has so many fans and, therefore, he's the best thing that can happen to us. >> did you -- when he went to the states, did you manage to leverage him in the states? was he able to cut through and help soccer fans in the u.s.? >> absolutely. there is to doubt because as i said, kids inspiring him. soccer is very popular in the u.s., especially in the high school and young kids. and they are admiring david beckham. >> and chelsea and man city are playing these games at the moment in the united states. another game on saturday. the yankees, any of the yankees now are going to set autopsy major league franchise in new york, right? how do we develop football in the united states? what role do you guys have? how do you see that happening? because that would be hugely beneficial for you.

>> absolutely. so we are the exclusive partner in outfitting the mls in the u.s. we are hope that there will be a team in new york. as you just said in the future, by the yankee owners. we are helping the mls to create youth programs and, therefore, making football even more popular as it is. you definitely see it greg. it's definitely growing in more and more franchises are coming into the game. >> and last year, you know, big sports, you had the olympics here in london, you had the european football championship. this year, you don't have those events. the champion's league. how is this year going to be tougher for you? >> the olympics have been definitely unique last year and

even the weather was -- >> i know. >> it was better than what we expected. but we have so many big events. this week is the champion's league final. then we start with the confederation's cup, the preparation for the world cup in brazil. and it continues and continues. we have so many sport events, when you look to our performance in the last ten years, also, in this so-called in between years, we were always growing because i do believe we have a formula that's especially in this year to bring a lot of product innovations to the market which we overdid just a few weeks ago with new revolutionary running shoe which is called boost and this stimulates the market. >> what's interesting last night is gross margins about 50%. that's only the second time in your history that that's happen. how do you -- can you keep that? is what we've seen sort of

commodity prices dropping, raw material prices dropping, as well, can you protect that margin? >> this is definitely what we are aiming for. and the best way to do it is to bring real innovation products for the market which have a great value for the consumer and the consumer is willing to pay a fair price. and this gives you a good margin. >> and there's one thing i need to do before i let you go. thank you very much. look, can you catch? >> yes. >> there you go. all right. thank you very much. herbert hainer, he's going in goal for bayern munich. thanks very much. still to come on the show, proeshth & gamble bring back a familiar face to run the show. "worldwide exchange" continues in just a few moments. ñ

you're watching "worldwide exchange." i'm ross westgate. the nikkei lost 3% before closing up 1% for the day. the bank of japan governor promises the help stabilize the bond market. we'll be hearing from the man himself. chairman james bullard has told cnbc this is a big moment for japan that missed the motorcycles volatility.

>> before we would see at least before i would be in favor of tapering, i would like to see some reassurance that inflation was going to move back towards target by a substantial measure the. >> and meet the new boss, same as the old boss. procter & gamble reaches into its past to bring back a former ceo to help set the court for the company's future. plus, a british airways plane has made an emergency landing at london's heathrow airport. all passengers and crew are safely off the plane. sgra you're watching "worldwide exchange," bringing you business news from around the global. all right. if you've just tuned in stateside, welcome to the start of your global trading day. we were up 3% at the open.

we then fell 3%, a 6% swing. and then closed up 0.9% this morning. the ftse cnbc global 300 is just flat, really. 5,560. european stocks down 2% and a little bit more during the course of yesterday's session. right now, the ftse 100 is at the lows for the session, down nearly 0.5%. we had a better than expected retail business sentiment indicator out early this morning. it's fairly supportive, as well. bearing in mind we have a fairly weak first quarter fof gdp. the cac 40 up 4 points and the ftse mib up 0.1% at the moment. how does that translate into u.s. futures right now? the s&p at the moment is now -- we've seen a bit of a turn around here. the nasdaq is also 4 points

below fair value and the dow here is also turned around. we were some 30 points above fair value. we are now some 15 points below fair value. so keep your eyes on those futures swinging around at the moment. meanwhile, criticism and praise have been aimed at central banks on a most equal measure over the banking system following the global financial collapse. speaking earlier on "squawk box," james bullard and the bank of england's andy howbaine gave their assessments. >> the banks are much more capitalized that they were. i think we've made a lot of progress implementing the dodd-frank law in the u.s. not all of that has been implemented. that's a long process that's going on. i am still worried that these banks are too big to fail, even after the legislation, and that they have government support. >> we're in a better place than

we were. you think back three or four years and there were some pretty deep seeded concerns about the viability of the world's biggest banks. and, you know, three, four, five years on, we're in a maturely better position. those banks somewhat better capitalized. there are fewers concerns about their liquidity position. the world feels a lot better than it was. but out of the woods, i'd say. >> meanwhile, goldman sachs is adopting dozens of new initiatives aimed at strengthening its business practice in the aftermath of the wall street crisis. they announced the changes during its annual shareholders meeting in salt lake city where investors voted to approve executive pay and back all the bank's directors. joining us now, marty gugenheim. thanks for joining us. >> thanks for having me. >> good to see you. 39 initiatives to strengthen the

business practices. are you satisfied that they've done the right thing? >> they have. they're focusing on operationally getting the risk management practices in place and enhanced. they're looking at being able to go out and strengthen liquidity. and they've been adding capital. when you look at all three of the main legs of making sure you're strengthening a bank, they're working on all three at this time. >> none of the shareholder proposals have gained more than 10%. so this is a happy ier shift th jpmorgan. >> well, actually, i would think both reflect that there is a movement, at least on the investor side, that they're begin to go be happier and satisfied with what the banks are doing at this point. so if you even looked at splitting the role at jpmorgan before the chairman and ceo, it got less votes this year than last year.

so we are seeing some improvement that the banks are making progress and they're satisfied what they're seeing read seeing right now. >> what's the outlook for the earnings against the back drop that we've got? what's the chance of getting any surprises? >> if we're looking at goldman sachs, specificry, they're looking at the traction. if we'ring coming through the veil of the sequester and the physical cliffs that we have, and as they're coming through that, customers will start to see more firm ground and we think that the activities we'll see in investment banking, we'll see some deals and some broker activities starting to pick up. we think the supply and favorable earnses will come from

the sufficiency games. >> how does that feedback into the mortgage lenders? right now, it's feeding back in in two ways. one, if we're looking at originations, we'll have more re-fi to more in home purchase as we move in and go forward. we're seeing the ability for homes to keep paying the mortgages each month. and those loss factors are coming in. that's one of those things that we thought was going to linger for a longer period of time. now we're starting to see improvement in things like suntrust. that's a bank we believe will benefit from the southeastern economy and the residential real estate market getting better.

>> we saw a big debate about the tapering and when it starts. theoretically, it's good for banks. but what are the risks of the sectors as we begin to wonder how the fed pulls back? >> well, what we focus on is share value. if you see interest rates move up, you would not have mark to market on the securities portfolio. a lot of what you see in your liability and your funding costs wouldn't raise. so when you start to look at that core base of funding, it's

steep. that would be a very positive things for this group. so rising interest rates is something that investors or banks have been waiting for for a while and any steepening of the yield curve is positive, especially for like wells fargo, it has a long dated investment portfolio and loan lending. >> although, of course, that positive practical gain could be presumably wiped out by a change in just the overall market sentiment, right? because it's people view that the market rally is only gone because we've had sort of this qe and liquidity program. so presumably, it could wipe the benefits out, could it? >> well, when you look at the financial sector, the positive and the earnings would offset what you might see a weakening just in the flow of funds because the earnings strength would be so positive and favorable as that interest margin started to improve. also, as this st happening, it has to be in the back drop of an economy that's improving. so you would expect to see loan

growth starting to materialize as the economy gains more traction and that was forcing rates to start moving up a little bit. >> good to see you. thanks for that. have a good day and democratic weekend whenever that starts. now a shake up at procter & gamble, it's bringing back a familiar face to run the company. with more, courtney reagan is at hq in the states. >> good morning to you, ross. a.g.lafley will be returning to p&g replacing bob mcdonald who will retire last month. lafley hand picked mcdonald when he left the company in 2009. he said the board called him days ago asking him to come back. mcdonald implemented a $10 billion restructuring program last year cutting costs and thousands of jobs. the last month, p&g reported weaker than expected third

quarter sales. in a memo, mcdonald said he resigned out of concern he was becoming too much of a distraction. p&g stock rose 54%, but that underperformed rivals at 72% in the overall market. the s&p 500 was up 08%. compare that to lafley who served as ceo >> june 2000 to june 2009. p&g stock rose 79%. far overperforming its competitors and the s&p which dropped 30% over that period. and mcdonald's resignation comes amid calls from some investors for faster improvement on the company. the hedge fund manager owns 1% of the stock. in an interview, he said the company had stumbled under mcdonald's leadership. and in a statement to cnbc last night, ackman said, quote, a.g. a.g.lafley is one of the greatest ceos and we're delighted to have him back.

p & g is confirming its full year guidance. in germany this morning, take a look at how shares are trading. it looks as if they are up about 0.7 5% here. we'll have to see wa goes on. ross, a big talker. some of us talking about how perhaps this can be a new trend with the old ceo coming back and becoming the new ceo with what happened to jcpenney. maybe it takes three before we can really say this is a trend. but interesting, nonetheless. >> there will be a -- these things happen in threes. there will be a third. >> that's right. >> right. that's the rule. >> i think there has to be, yeah. exactly. >> court, thanks for that. good to see you. have a good day. elsewhere, the bank of japan's governor tried to calm market fears over japan's unstable bond market. kuroda said the bank of japan would be flexible in preparations given the recent yield strikes. he said he was confident the bank could curve volatility. he wouldn't delve into the

recent market swings. >> translator: we do not have a specific target for the stock prices or in the foreign exchange market. i will not comment on their day-to-day moment. but when it comes to the japan government bond market in which we are directly involved, stable moments are highly desirable. >> and the central bank continues to buy jgb. we'll likely see stronger cuts to risk premiums. still do come, kimi raikkonen comes into this weekend's race with a chance to lead the series. we'll talk with the team principal, eric boullier. back in a few moments.

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while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] a recap of the headlines. a roller coaster ride for the nikkei managed to end up just in the green. the u.s. opened higher, but it's gone softer in the last hour. an emergency landing for british airways plane at london's heathrow airport. the airline blames a technical problem lead to go a fire. and out with the new and in with the old for procter & gamble as a.g.lafley is brought back to run the world's biggest productsmaker. we turn our attention to formula one.

kimi raikkonen and his team are riding high on this year's f1 championship. this week, the series heads to monaco where the raikkonen hopes to take the top spot in the championship. currently sitting four points behind the current world champion and championship leader sebastian vettel. cnbc is involved in this season as a partner of the latest f1 team. from monaco, the principal, eric boullier. thanks for joining pups. >> thanks. good morning. >> good morning. what are your hopes for weekend, then? what's going to happen? >> it looks like we have pretty decent pace this weekend, so our hopes are quite high and i think we can expect to fight for a finish this weekend. monaco is obviously a very high risk track, so anything can happen. >> yeah. and it is a -- it is one of those tracks, isn't i it, more than anywhere else where

qualifying is the most important thing. it's incredibly difficult to overtake. >> yeah. it's very important to qualify good and be in the maximum two front rows. >> so we'll see how this goes. how big of a weekend is the monaco grand prix compared to the sponsors, the commercial relationships that you develop? >> it's clear monaco is a very specific race. it's a very demanding race, very attended race, very crudded one. a lot of people love the glamorous side of the macro and the location and we have a very, very busy weekend in terms of request and meeting with sponsors. >> yeah. i mean, how would you assess the sort of commercial health right now? f1 is now looking to float

again. and they're now putting that back on the basis. are the teams now happy with the commercial relationships? will they get a dividend? as f1 is floats? >> it's a good question, obviously. i believe teams are never happen with the situation. we always want more because we are competitors and we want to be able to keep -- our business and our cars as fast and as best we can. but i think we are happy with family room ewe la one today as a way it's going to move. you know, the ipo or the flotation, which is coming, is a good sign for f1. it will be a good step for f1 to keep the blocking. you can see the recent announcement, but honda, car manufacturer coming back, just having been withdrawn five years ago. i think it's a good sign that f1 is strong. f1 is the only global support in the world which obviously is

capable to attract worldwide companies. >> yeah. look, you've got one race back n united states at the moment. how much would you like a second race somewhere, either on the east coast or the west coast? >> i think ideally, we -- of course, we are a public championship. we have to spread out the race all over the world. but america, particularly the u.s. is very important for us. the team last year was a great, great success. amazingly attended by most business men and celebrities and we would need at least a second race in america. it would be nice to have a race on the east side and, obviously, why not another one on the west side? >> we'll see what we can do. eric, good to talk to you. good luck this weekend, as well. thanks for joining us. >> thank you very much. >>. >> team principal for the latest

f1 team. still to come, the major u.s. averages are on track to break their winning streak. we'll preview the trading day ahead when we come back. [ male announcer ] let's say you pay your guy around 2% to manage your money. that's not much, you think. except it's 2% every year. go to e-trade and find out how much our advice and guidance costs. spoiler alert: it's low. it's guidance on your terms, not ours. e-trade. less for us. more for you. you know, from our 4,000 television commercials.

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a british airways plane has been forced to make an emergency landing after takeoff. ba flight 762 en route to oslo. 75 people were evacuated. it's currently been sitting on the northern runway which has been closed to heathrow. we understand three people have been treated for minor injuries after the evacuation of that plane. european stocks ahead of the u.s. open have just turned tail a little bit. we were off 2% for those two markets yesterday. a bit of green for the french and italian markets. u.s. futures have turned around a little bit, as well.

we are currently for the dow some, what, 15 points below fair value? the nasdaq at the moment is five points below fair value and the s&p 500 at the moment is around about 3 points below fair value. speaking earlier, james bullard gave an upbeat assessment about growth. >> you think the u.s. economy is improving. we think we continue to see reasonably good data on the economy. i'm more optimistic than most of my colleagues, probably, on the fomc. i'm still expecting the% growth for the year. >> joining us from the cme, todd horitz. todd, good to see you. it looks like we might have a down week. we haven't had much of on those this year.

>> good mortgage, ross. today could be the third day in a row down for the first time since december and only the second time since 1900 when we had this kind of move. so the markets over the week, we had that key reversal on wednesday where we opened on a high, made new all-time highs and closed below tuesday's lows. so the market is under pressure here, but today should be pretty much trade, the interest rate closes at 1:00 eastern time. the fx market closes at 1:00 eastern time. barring any major news, these markets should be pretty much less to bounce back and forth pretty much here on the flat line would be my guess here, unless we actually break lower to the down side here. >> yes, because of course we've got the long weekend. how can we forget about that? there is one here, as well, in the uk. what's your interpretation of what happens yesterday and it is the reinterpretation of the fed? >> well, you know, i think it's

been boiling over for a little bit. a time of them are deciding it's time to let the markets function on their own. this policy of low interest rates has not helped the average joe, as we like to see here, and they have not been able to benefit. they are really not creating liquidity for the average american over the small business. all they are doing with all this cheap money is allowing the big companies like apple, caterpillar and all these guys to lessen the labor force and continue to borrow money and turn out bigger profits. hopefully it will have a benefit for everybody. >> todd, have a good weekend, whenever you start that. have a good day today, as well. that's it for the day on "worldwide exchange." that's it for this week on "worldwide exchange." coming up next, "squawk box" and

the markets stateside. hope you have a profitable day. good buy. good-bye.

good morning. today's top stories, the global markets. the nikkei closing higher after a volume tie session overnight. and u.s. equity futures are point to go a higher open, but the major averages poised for their first weekly decline in more than a month. all this on questions about qe. a top fed officials tells cnbc that he wants to see inflation pick up before the central bank starts to taper. and in corporate news, procter & gamble turns back the clock. a.g. lafley returns at ceo.

it's friday, may 24th, the official start to summer. i can't sleep quite yet. "squawk box" begins right now. good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. we are gearing up for that three-day weekend. we start this morning with the markets. the stocks at this point look like they are indicated slightly lower. those dow futures down by about 18 points coming after u.s. stocks are coming off their first two-day losing streak in more than a month. the nasdaq and the s&p 500 are both indicated lower, as well. s&p 500 futures down by about 4 points. in overseas action, the nikkei finished the day up 0.9%. not much of a rebound