welcome to "worldwide exchange." i'm karen tso. these are your headlines from around the world on. a return of some calm in the japanese market. the nikkei finishes higher as the weaker yen helps boost big exporter stocks like toyota, mazda and sony. and shares plunge in madrid after the state completes its 15 billion recapitalization bringing 11 million new shares to the market. china is cutting tariffs on

watch imports by 60%. and talks between the eu and china over solar panel trading come to a head as brussels faces increasing pressure from member states to drop planned import duties. jay you're watching "worldwide exchange," bringing you business news from around the globe. good morning. let's bring you up to speed with the news just crossing from volkswagen. the company is giving up on the wage that is trying to reach with the german labor union. the talks concern near 100,000 employees at the german automakers plans in western germany where many of them are located. this still applies to the west german vw plans and it will run for 20 months until february 28th, 2015. so the deal being struck is over the course of -- well, a couple

of years, in fact. not quite two years, though. so if you look at the date on the timing of this. we are waiting for just a little bit more data. let me check and see what else we have crossing. in terms of the deal and the actual pay increase, vw says the deal will increase wages from 3.4% from september. that's the first element of this deal. the deal includes a one-time 300 million euro contribution to pensions. so the company contributing to long-term payouts for employees, as well. so that is the latest just crossing today. and coming up on today's show, let's tell you what we've got ahead for you. for the 22nd year in a row, japan is the world's top credit nation thanks in part to timing fluctuations in the yen. arab spring nations face a delayed economic recovery according to the imf. at 1020 cet we'll bring you an

exclusive interview with the prime minister of jordan on the region's prospects. and diamonds may be a girl's best friend, but is it the men who are now doing all the buying? and could diamonds be a better investment than gold? we'll discuss that at 10:45 cet. perhaps it's time to be safe as house, as 11:30 cet, we take the temperature on house the u.s. housing market is fairing. you can always pop an e-mail through to us. you can see on the screen there, worldwide@cnbc.com is our e-mail address. let's get up to speed with what's been playing out on the markets. the japanese stock market is in a, quote, adjustment phase from recent sharp gains and should stabilize soon. this is according to the nation's economy minister. the finance minister has weighed into the issue saying there

shouldn't be too much worry over the daily movement of the equity markets. you can see there was a bounce in late afternoon. 6.8% to the down side is the total. japan has confirmed its net foreign assets rose 12% last year. japanese companies bought foreign assets with a stronger yen earlier in the year. value depreciated as the yen fell. analysts say matters in japan trade deficits could change things. this is a look at how the currency has been tracking things today. 102.25 on the charts. that's a fairly solid move. 1.3% higher is the abe-nomics that we're looking at. steven joins us now.

perhaps you can give us a sense of the trading pattern out there. we had 101 on the chats yesterday. a fairly solid move higher now. what's the direction for the yen? >> well, i think the direction over the medium term and probably over the short-term is for the yen to weaken. their commitment to trend the balance sheet is very strong. the yen weakness has been an important part of the drivers of nikkei strength. and they haven't accomplished fully what they want. so i think they will be pushing to -- well, they'll keep on expanding the balance sheet and won't be disappointed at all as the yen weakens. >> one part of the experiment is whether corporate profits can recover here. we've just seen the news about japan being a creditor nation. it's seeming to get strength from the falling currency. does this continue? do you start to see japanese corporate profits see any upside? we know many of them have diversified away from japan. >> you know, there are

translation benefits which they're bound to get which are significant. there will be some trade gains. although it's not likely those trade gains will be major. but i think they're hoping to get activity up and to, you know, with the higher nikkei to see more investment 37 again, in terms of the real activity in terms of the volume of activity, it's unclear how much you're going to get. but i think with the stronger nikkei, you will get a bounce in the weaker yen, of course, a bounce in profits. >> the reason i ask you this, as well, because it feels as though we're now looking for catalyst for further evidence that the abe-nomics experiment is working and that we need to see the corporate side particularly well. we know many of thoughts japanese companies are the main caution at this point. will we continue to see this traction in the dollar/yen trade? >> i see it slightly

differently. yesterday our economists indicated that the structural reform was going to be weaker than expected. not much action on labor markets, more of a focus on infrastructure spending. the less they do, the more pressure there is on the bank of japan and on the balance sheet expansion to accomplish the goals that they're aiming for. and that points to a weaker yen. if we did see some major structural reform, that would perhaps allow the yen some breathing room, some room to stabilize. but right now, i'd say the only arrow they seem to be shooting, is the arrow of balance sheet expansion and that's likely to keep the yen weakening over time. >> do you think the market has lost some confidence with the plan now? because initially we saw an enormous reaction and japan has shown a lot of the system previously and had no traction whatsoever. this time it actually worked. but i wonder whether investors are now losing a lot of the

confidence in this plan. >> i don't think what happened last week was really a japan story. i think that there was a bit of a panic in the market when the fear of tapering in the u.s. and the backing up of interest rates not just in the u.s. but globally scared investors. and they cut positions. i think it had very little to do with japan. it had to do with the short yen and long nikkei was big in the market and risk managers were telling their portfolio managers to cut back. it's why australia rallied briefly last week, even though none of the news was positive australia. it was a question of cutting back. >> thank you very much for joining us. steven englander is global head of g-10 at citi and is staying with us. 7.%, that's the economic growth rate that the chinese premier says is enough to hit

beijing's target of doubling gdp by 2020. speaking in berlin overnight, he described it as 7.7% as appropriate. just yesterday, moody's report predicted that chinese gdp will continue to rise between 7% and 8% annually. investors have turned bearish in australia in recent weeks over concerns that slowdown could hurt can country's mining sector. the better life index measures life quality. australia's life expectancy and unemployment rate both outstretched the oecd average. what do you think is the happiest place on earth? is it australia or somewhere else? get in touch with us, e-mail worldwide@cnbc.com or@cnbc.wex

on twitter. the commission plans to impose import duties on the products beginning on the 6th of june which could be withdrawn. 21 is billion euros of chinese-made solar panels are sold in the eu making this the biggest trade to day. the uk trade commissioner met with the chinese advice minister of commerce yesterday with beijing describing the talks as, quote, constructive. and swiss april watch exports increased 5.7% on the year. so yes, in the single digits. aluminum exports for the month topped $6.8 billion. sales to china fell a whooping 7.2%. this as china announced it's lowering tariffs on watches. 84% of swiss goods to china would be free of duties.

the deal is expected to be signed in july. jealous bare has confirmed it's been asked to provide details on u.s. customers. the bank says it's working with swiss authorities. and the data stretches back to 2002. negotiations between a tax deal between switzerland and the u.s. are reported to be in the final stages. and spain's nationalized lender bankia continues to free fall on the stock market, the company is down 8% on the boards. match it up past the last 14 days. author than 11 billion new shares changed hands in early trading. that's well below the 1.35 euros at which the shares were issued. analysts have few reasons to be optimistic about the stocks despite the cash injection from the spanish government as tough business conditions in spain continued to weigh in on the bank. the leaks continue ahead of the release of the european commission report tomorrow. the health of the block. spain's newspapers are reporting

that the eu will demand madrid paid off its pension, labor and fiscal reforms to avoid sanctions. it may recognize that madrid modernize its energy sector. steven angler is global-10 head of city. we've seen very little movement in trade of late. do you think the market is somewhat comfortable with how the eurozone is tracking even if it's not an exciting story right now? >> i think that's exactly correct. i took a few days in london last week and i was struck by how much more positive the sentiment was with respect to the euro and the eurozone than in previous visits. and, again, it's not the economy, but investors seem to be looking at, but the sense that the ecb has managed to diminish the tail risk sufficiently that italian bonds, greek bonds, spanish bonds look attractive to them. so, you know, the economy is weak and it's clearly a negative

possibility that the ecb will cut more, even though it's taking the depot rates to negative. but the risk profile is looking increasingly positive so you have the ability there. and the european commission is going to bring the focus back on the deficits tomorrow. that seems like we might see improving numbers. but france, one of the core countries that are going to be a long way from brussels wants to see in terms of its growth numbers. do you think the market worries about this any more? there is such a strict discipline when it comes to deficits and targets. but it seems the story moves towards how do you get growth near economies? what do you think the focus means on the story for investors? >> well, i think that whether europe goes up or down in the longer term will depend on whether the european policymakers can generate growth in europe. i think that the -- they've shown that they can do austerity. they've shown that they can run a tight monetary policy. the question is whether they can generate a recovery when structural deficits and much but not all of europe are much

lower. and i think that will decide the fate of the euro. i think that some of these questions with respect to italy, with respect to france, they're already kind of in the market. they've been much discussed over the last week. so i wouldn't expect a big impact from it. >> steven, stay right there. we'll try and come back to you in a bit. in the meantime, let me bring you up to speed with the equity market action. this is how we're tracking across the european session. you'll note a spare amount of green as this market moves into positive territory. we've got on the benchmark index as we settle into the morning session, a fairly solid boost higher. we've got the uk market returning to the mix today. this is how we are fairing. the ftse bouncing 1.5%, more than 100 points added to the market, so a very strong move forward. but this has been the trend for the ftse. despite the volatility last week, this is an index that's been tracking around the highs.

6,750. whether it can take out its all-time high, which is about 150 odds points away from where it currency sits is the big market that's being watched here. 8,487 on the xetra dax index. 1.1% higher is what we're seeing for german stocks. 11.4% for the cac. pushing the market above 4,000 points. the ftse mib is outpacing what we saw across the core. again, today, 1.75% or more than 300 points added to the index. let's move on to what we're seeing across some of these bond markets. because it's been an interesting move. we saw with some of the sell-off last week, some of this market volatility, that the peripheral yields saw a push out of the curb. we saw a rally on italy. trend this week so far has been to drift lower again. we haven't quite again held under this 4% mark.

nonetheless, the direction has been positive and 4.92% on spain. gilts have been fairly stable, still off the 2% handle. german bunch, there's been a slow career higher. we're getting ever closer to the 1.5% mark. foreign exchange markets today, let's just get you up to speed with some of the activity you can see from the broader picture where the movement has been. it's dollar/yen rate today, 1.3%, enough to clear the 102 handle. the move continues higher for the dollar. the weakening of the japanese yen is the story we're still looking at. in terms of some of the other boards, there is a turn playing out particularly for the euro and the sterling. the australian dollar proving one of the exceptions, but this is coming off a low basis. we're seeing the currency fall way under parity. well and truly off the highs that we've enjoyed earlier this year. 105, 106 the story.

let's check on the equity market action in asia. chloe cho join onning us out of asia. miss cho, nice to see you again. >> very nice to see you, as california, karen. quite a bit of green arrows that we see across the board. interesting to see how the hang seng ended up at a two-month high. quite a bit of rotational buying in the greater china market. a lot of strength coming into the fms and property space. not really have to do -- it's not really about the fact that this is where the money is going in light of the harsh measures that are going into the wealth management products out there. so it's going to be a much more difficult environment for banks to make money out there. but it seems to be about valuations out there. the bigger story that's really grabbing people's attention is really about what's happening in the japanese bond market. these are the equity spaces. interesting to see how the japanese government bond yield ticking higher to 0.9%. remember, it was that 1% threshold that caused a lot of

the category reaction. interests to see how the japanese government bond yields keeps on moving higher when analystes and traders say that the boj is buying as much as about 400 billion yen. that beats just under 400 billion u.s. dollars on a daily basis. tomorrow we've got that critical meeting between the boj and jgb market participants. if there isn't any conkreekt reaction on as to whether the boj is comfortable, is going to do something to keep the long-term yields down, i think we could see another volatile ride. the nikkei slipped back below the 14,000 handle, managed to close higher. but a lot of focus on wa is going to come out of that meeting. the jury is still out there as far as whether abe-nomic sess bearing fruit. some data out today. corporate service index. a measure of wholesale prices in the service sector. that showed the steepest annual decline since november last year. that is the latest data points are concerned. back to you. >> appreciate the update there.

thank you very much, chloe cho, reporting from singapore. the two-year long conflict in syria has had a serious impact on neighbor jordan who is struggling to manage a long influx of refugees. after the break, we'll hear from the jordanian prime minister on the consequences of the syrian crisis. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ 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.

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following 13 hours of teps talks, the eu agreed to lift an embargo on syrian rebels. we have news just crossing from the syrian opposition saying that the eu's arms embargo is too little too late. the fact that the embargo has now been lifted and that is just the latest coming through from syria. the uk and french government's portion for the rights to supply arms for the rebels, but based on these oppositions from other governments led by austria and sweden. it doesn't mean weapons will be sent to those fight assad immediately. >> we would only take the steps of sending arms in company with other nations in carefully controlled circumstances and in compliance with international law. but this decision today gives us the flexibility in the future to

respond to a worsening situation or to a refusal of the assad regime to negotiate. meanwhile, france says it is testing samples of suspected chemical elements used in syria and promise toes deliver the results within the innocence few days. one company involved in the syrian spillover with the conflict in syria is jordan. their political railroad forms are now in jeopardy as the country struggles to care for over 500,000 refugees. give us an update on the issues jordan is facing. >> they're watching billions of dollars worth of weapons going into syria coming from qatar and saudi arabia. there is no kind of controlled

environment that i'm aware of when you're talking about a country that is in the midst of a civil war. so it's a bit of a flux in terms of one party saying one thing, one party saying another. but in terms of jordan, i did get a chance to sit down with the jordanian prime minister in an exclusive interview and he told me that the situation, while they can't speak directly to the weapons going into the country in terms of qatar and saudi arabia financing the weapons going into syria, they can say that they are tremendously great for the for the humanitarian assistance they've received so far from saudi arabia. >> at the end of the year, it's going the be near half. with a country of nearly 6 million population, you can imagine the impact of the presence of so many refugees who have nothing in their hands, came, have nothing in their

hands and who needed shelter, they needed food, they needed medicine. they put pressure on our resources. we have scarcity of water. we don't have much water in our country. and we already have difficulties in the economy after the 2008 crash down. of course we suffer this all nations. and we started to recover when the -- when the civil war erupted in syria so that kind of complicated the situation. and it added to the difficult that we already have as to our economy. >> the world bank has offered a loan as well as the united states. how much money are you looking for? >> 2013, the budget has offered

about $700 million. add that to what came from international organizations and friendly companies. it added that to may 2013. now we don't know what will happen between now and the end of the year. so more. therefore, more deficits on the budget. so that would be very, very difficult. as i said, it has complicated our plans of recovery. >> is the international community doing enough? >> not much is coming, to be honest. we only have sympathy, understanding. and good will, but that's all. these refugees, they expect

three meals a day, they need hospital, schools. you know, all kinds of things. >> so the jordanians feeling the strain from these syrian refugee webs put ago major strain on the economy. >> you've got to ask questions about the greater stability in the region. you're seeing issues of turkey in late. syria is spilling over to lebanon. we've heard the remarks from jordan, as well. are we going to see a response from the international community? >> i think at this point the international community is not ready to do anything, the united states quite firefearful of get involved in another issue in the middle east. in terms of regional stability, jordan doesn't want to make any question about who is funding weapons and where. that is obviously going to be a

problem for the surrounding areas. >> traditionally in the past when you're seeing a security concern, money is leaving the region. is that happening now? >> the jordanians are trying to raise money on the international bond market. the u.s. has said they will back those bonds. jordan, a problem with the economy, 12% unemployment. 97% of their energy needs they have to import. they're trying to do anything they possibly can to remain stable. >> we appreciate the update. interesting. thank you for joining us on the set today. coming up on this show, we take you out to mumbai after the break to catch up on how stocks are performing there. oh this is lame, investors could lose tens of thousands of dollars on their 401(k) to hidden fees. is that what you're looking for, like a hidden fee in your giant mom bag? maybe i have them... oh that's right i don't because i rolled my account over to e-trade where... woah. okay...

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the nikkei finish he higher as the weaker yen helps boost ek porter stocks. bankia shares plunge in madrid after a recapitalization bringing 11 million new shares to the market. but it's a good time for swatch. the stock boosted by news that china is cutting tariffs on

watch imports by 50%. exports in april rose despite weakness in the chinese market. and talks between the eu and china over solar panel trading comes to a head as brussels faces increasing pressure from the member states to drop plans on import duties. we have some news just crossing saying the big german banks need additional capital for full implementation of basel 3 has declined from 42 billion euros to 32 billion. so the amount of money needed is a little less. the organization says the big german banks regulatory core capital ratio res stable and are between 10% and 18%. that is the latest crossing from bafin. interesting, last week, we were talking to james bullard from the fed here on cnbc and talking

about -- he was talking about too much regulation in the banking system and this compressing what we're seeing in terms of the innovation for some of these banks and many have concerns about basel 3 and this is reflected by the boe, as well. that's the latest, anyway, just crossing. let me bring you up to speed across european markets today. we are seeing a fair amount of green across the chart. the ftse has been in catch up mode. it has closed yesterday for a public holiday. 1.6% is the size of the pop. the german market there, 1.2% to the side up. the dax tracking around these fresh highs. the cac building 1.4%. the periphery for the second day in a row has been reclaiming most of the action. 1.75%, the size we're seeing there. we're seeing one of the top movers for the italian markets today. on the foreign exchange markets, we're seeing a move higher for dollar/yen rates, enough to propel the trade back to 102. i want to point you for wa we're

seeing on the euro/dollar. just 0.2% weaker. sterling lower. and dollar/swiss o 0.9693 handle there. >> steven, if you look 59 eblth markets today, you look at other trades out there, it seems as though investors are remaining invested in the market because they're not concerned or they don't know how to judge the timing of tapering. but when it comes to the australian dollar, this is a completely different story. why is the commodity currency being hit so hard? >> first, they've had a string of basically ten years in which commodity prices were rising. by historical standards, aussie/dollar at 97 isn't cheap. it's kind of an expensive aussie dollar. and with china slowing down, en, which is the most commodity

intensive group in the world slowing down, and with some of the investment projects, the supply from these projects coming on stream, there's an imbalance between demand and supply that's emerging and supply is exceeding demand. now, australia is very vulnerable, both because of the terms of trade because of volume and because, you know, investment projects tend to get canceled in this environment. so investment flows tend to weaken aussie/dollar. >> steven, i wonder whether investors are slow to react to this trade. none of this is new news. we know mining stocks would be under a bit of impression, that some of the mining companies would have to cut back. this does not seem to be a new element for markets. yet the reaction has been so strong of late. >> well, one, i think there's been more interesting trades in the market, buying markets globally, especially in the u.s., selling yen, buying the

nikkei. this has been the trades that the global macro investors have been focused on. the aussie lsh dollar has been focused on. there's a lot of liquidity in the world so that this global liquidity tends to mitigate the fall. but i think if we continue to see weak growth data out of china, aussie/dollar remains vulnerable. >> appreciate the analysis. thank you very much for joining us, dan. who is the biggest foreign holder of japanese debt? we have the story live from tokyo today. good morning to you. >> hi, karen. japan posted a 12% increase in net foreign assets in 2012. setting a record of $2.9 trillion. fashion the top spot at the world creditor nation once again, japan was followed by

china and germany. japanese yen back assets backed last year. the yen weakened 11% against the dollar, which helped boost the value of assets. china raised its holdings by 14% on the previous year. the uk cut the amount by 23%. many analysts say it's not easy for japan to keep the leading position since it continues to run massive trade deficits with exports and surging energy imports. back to you, karen. japan's fast retailing is not selling labor safety backs in bangladesh at least for now. it will come up for its own safety standards for garment workers. it's a big blow to labor activists.

many had agreed to better building in bangladesh. last month's building collapse killed more than 1,000 people. garment buyers are being urged to stay engaged with bangladesh. the u.s. is working with companies to secure support for better safety with countries and safety independents. >> we are working together with labor and civil society groups, our partners in the international community and members of the bangladeshi diaspara. we are encouraging international investors not to turn their back on bangladesh, because the solution is reform, not withdraw. >> sherman says the u.s. government is funding labor and civil service groups in bangladesh to promote worker riots, including the freedom to join a unit. india's earnings season is in full swing.

corporate results for the january to march quarter will be mixed so far. we're expecting results from companies such as energy plays, industrial, pa tollal and gail out as well today. >> thanks for that. there are a bunch of numbers which are coming out today. just focused on india which is basically from the oil and gas space. we do understand that gail is going to come out with a set of numbers higher on a year on year basis but sequentially, it's going to very much look very muted. now the subsidy, we understand up around 700 to 1300 draws. remember that they had paid an exceptionally high substance in the same quarter last year. so now net sales are expected to grow around 13 odd percent.

the profitability is expected to be around 100 years on a year on year basis. volumes are expected to be low because of the availability of box sides. samsung is expected to come out with a new set of numbers. profitabilities and margins are expected to be flat. with that, it's back to you. >> thank you very much. opec is expected to keep output policy unchanged. he would be open to a kit in

production only to keep prices at the $ 00 a barrel target favored by producers, including saudi arabia. joining us now is the associate director of platts. perhaps you can spell out what you think is going to happen at the opec meeting. >> well, as you said, it is expected that they will keep their output ceiling at about 30 million barrels per day. though you have to realize that they have been producing more than 13 million the last couple of months. but they are going -- it is expected that they will leave it around that level. they all say they want the oil price toes be at the $100 per barrel level. so it is expected that it will stay at 30 million barrels per day. >> there are cross currents on

the opec group because we are seeing many of the african countries face u.s. shale gas production. this is what we're seeing from the arab countries. do you think the african countries will have any sway this time around? >> yes. that is expected, too, especially nigeria and even algeria. these are the countries that are going to get -- feel the heat. oil is believed to be around $120 per barrel if they want to continue with infrastructure building and domestic rebuilding, etcetera. so they are the ones who will be hit. and also, you have to remember that u.s. shale oil is of almost the same grade as the oil produced by these countries. so they going to be the ones that will be talking for a cut because they want oil price toes be higher. but more or less, analysts say that opec leaving the level at about 30 million barrels per day for now. >> shailaja, there is politics to play at this meeting, as

well. saudi arabia and iran have been facing off as to who should be the secretary general. this has been a large saip ceremony, as well. does it matter who is in charge of the cartel? >> the secretary general's position is on the ready position. it will be interesting to see. and, of course, whatever they decide will have some effect on the market. >> thank you very much for bringing out the latest on the opec story. still to come on the show, diamonds haib a girl's best friend, but if you're looking for sparking returns, it's time to move away from equities of the pressure stone. that's according to our next guest. stay tuned for more. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art.

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dna sequencing is available at a cost of around 500,000 pounds. what if it was available to the public at a lower price? ross westgate caught up with the ceo of genomic technology firm genomia and began by asking him about the future of dna sequencing. >> one thing we're doing is

driving the cost down. to do dna sequencing today is still a several thousand dollar endeavor and we want to bring the price point down to $1100. we want to make the instruments small enough that you can be did he employ to the doctor's office and we want to make the timing short enough that you can get an answer immediately. so that sequencing can become a diagnostic activity versus something that is ordered in certain cases. >> this is a big step change in terms of pricing and availability. wa does that mean in terms of outcomes for health and diagnostic business? >> it takes sequencing out of the research market and puts it into the clinic. and what it allows you to do as a patient, give you a scenario maybe a couple years out, you go to the doctor, you might have a headache. even before you sit down with the doctor, the nurse takes the saliva sample, puts it on one of

our instruments. all viral dna, all bacteria dna and everything in that sample is sequenced and screened against tens of thousands, hundreds of thousands of known conditions. so by the time you talk to the doctor and say i have a headache, he says no wonder you have a headache because you have the flu coming or something more serious. so it changes the way diagnostics is going to be performed some something like a hypothesis to almost like a star trek tri quarter. >> you have to try and guess what it is and do and test the symptoms to see whether that's what you've got. with your equipment, you can now test for everything in one go? >> exactly. so testing today is hypothesis driven. you go to the doctor, you have certain symptoms. the doctor says, well, let's order this test. you take a sample, if it's not back, something else is tried. so the tests define what you have, maybe available, but it

could be a long time before it's ordered. there's certain cases where that's a real tragedy. cases where governmental disorders. there's 3,000, 6,000 genetic conditions that could be causing that and you have these diagnostic odysseys where kids are going to the doctors for years and having operations. nobody can figure out what it is. imagine if you had a test where you took a dna sample & screened against every known conditions. and you can tell the parents, here is the specific problem your kid has and here is what you can do it about it. it's going completely change the way molecular diagnostics are performed. >> and the sooner you find out what's going on, the best the outcome. how does it impact when you analyze the dna of diseases? for example, pick a disease like cancer. how might one improve the outcome necessary cancer with this diagnostic? >> just about every disease has a dna component to it. a virus has a dna signature.

bacteria has a dna signature. cancer is a genetic disease. if you have cancer and ty took a tumor sample of that cancer and sequenced it and compared the dna sample, i could tell you exactly where something went wrong in in that cell. if that cancer is in a particular protein and there's possibly a protein available in some other form of cancer for that protein malfunction, then i can apply that to your cancer even if no one has made that connection before. there must be cures out there that are, say, 5% the effective, but they work on a certain protein mutation. someone else comes in with a similar mutation, we can roll out that treatment. >> when does this come out?

we're going to launch our beta instrument later this year. the commercial instrument we plan to lauven next year. we just completed the first tranche of a major round of financing. we have a strategic investor in the company, one of the established players in the sequencing space. they did the a round. as i said, we're getting ready to launch this into the market commercially by the end of next year. christie's magnificent spring auction jewel sale is going on in hong kong. this year's crown jewelers are stunning columbo ya emerald and diamond necklace of 105 karats mounted by bidding house mucheron. expects suggest the final price could go up to 14 million. joining us now is john martin ashley and joins us on the set. yan is related to the arbor

family, fifth generation in dealing diamonds. >> correct. >> tell us how the situation has evolv evolved? what are the trends that stand out to you about the industry now? >> well, the fancy color diamonds at the moment seem to be making the news a lot lately. >> pink diamonds, yellow diamonds? >> pinks, blues, greens, yellows, predominantly blues seem to be very much in demand, record prices. i think last week volume was 5.3 karat karats cushion shaped blue diamonds, deep blue, which will sell for $9.4 million to mr. graff of the famous graff jewelers. >> it's interesting to see who the buyer has been. you hear that phrase that diamonds are a girl's best friend. but it seems the men with bigger

buyers of diamonds. what does this mean for the marketing of many of the big diamond countries? >> can you repeat that for me? >> yes. in terms of who has been a lock term buyer, many people think diamonds and women are associated. but it seems as though men are the one that's hand over the credit card or the cash. so targeting men who are the main buyers, what is this doing for marketing? >> what we're seeing here, it's mainly focused on the high end of demand and investments in diamonds is growing as an alternative to stockes and shares. so you'll find that high net worth individuals are diversing their portfolio into important diamonds. >> why is that? because if you look at the charts out there on the market, a lot of people are happy to be money into cash accounts with very low yields just to get

their money back. diamonds, if you buy one of these pressure gems and you want to sell it down the track and recover some of the money, there's a long process involved. you have to find an auctioneer, go to an auction house and there's no guarantee on the price or the return. >> yes, that's partially true. we talk about fundability. if you are buying one of these important stocks of a million dollars plus, you're in debt for a longer period. for example, i just had an investor putting in a substantial amount of money and he's looking for at least a ten-year period to see his pension portfolio. but there are other options. there are a number of funds, open ended funds. we run an open ended fund from guerns guernsey. we have a trading fund in the uk, which is open to uk

taxpayers. and before they even start, they're already 30% up thanks to the eis scheme. >> so in terms of the returns investors can expect from this type of investment, what does it look like over the course? >> on the largest stone, it's highly speculative. although there haven't been any price drops for the last seven, eight years at least. and color diamonds are very strong, gaining in popularity. when we're talking about the open funds or the eis trading scheme, you're looking for anywhere between 5% to 15% annually. >> so double digit numbers. thank you very much for joining us on the set today. it's our pleasure to have a conversation with you, stocks and bonds is what we usually talk about, so this has been a real treat. thank you very much. >> thank you.

from sparkles to bubbles, the champagne has gained recognition in china. champagne sells half its products domestically. the story is different in the u.s. where weak regulation means half of sparkling wine sales are missold as champagne. german brewers have warned their government that the drilling technique known as fracking could damage the country's beer industry. the beer association is worried that fracking for sail gas, which involves pumping chemicales and high pressure into the ground could pollute water used for brewing. for the third year in a row, australia has topped the better life index which measures life quality, australia's life expectancy and it outstrips the oecd average. wa do you want to know?

what do you think is the happiest place on earth? is it australia? somewhere you go on holidays, get in touch with us, worldwide@cnbc.com, @cnbcwex or direct to me, @karen tso. an investment company for cable tv's operator or make its debut on the singapore auction trade tomorrow. the bank of thailand will hold its rate review meeting. economies expect it will trim its rates by 2.5% and japan's retail sales data for the month of april. still ahead, u.s. markets will be open today after a mixed close on friday. don't expect there to be an end to volatility. we'll have more on that with our next guest. ou'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. ♪

welcome to "worldwide exchange." i'm karen tso. these are your headlines from around the world. a return of some calm in the japanese markets, the nikkei finishes higher as the weaker yen helps exporter stocks. and a breather in the holiday break, u.s. markets will test the resolve of the recent rally, the key data today on housing and the consumer. banksing shares plunge in madrid after the name their complete 15 billion euro recapitalization bringing 11 billion new shares to the

market. swatch was boost bd i the news that china is cutting tariffs on swit watch imports by 60%. after yesterday's memorial day holiday for the mblths, bouncing off the weekend, so far we have some green on the charts. 12 points is the early indication for the s&p 500. negative two and negative two on the s&p. now, we did have some declines for the third straight day on friday. the dow, though, was in positive territory. will we see a continuation of some of the volatility across the u.s. markets? or will we be looking for a

calmer reaction first up? this is how we've been tracking on the ftse cnbc global 300. 0.3% higher. i want to show you the european market. perhaps this is a precursor to the european trading session. the ftse was closed yesterday for a public holiday. 1.6% higher is the trading picture now. more than 11 points added. we had some solid gains, too, across the continent yesterday and it seems as though the trend has continued today. more than 1% on the german market. 1.3% now for the cac. the ftse mib is solid at 1.6%. we have off some of the highs that we saw in the morning session. we are solid particularly for the periphery. this has been the case on bond markets. 4. 2% is the trade on the spanish mark.

the trade is now reversing again. the ten-year gilt market closing the game at 2% and we're getting close to 1.5% on ten-year german bunch. forex markets have been curious. we have seen a strong trade on dollar/yen rates. the australian market is getting a move, as well. the japanese stock market is in a, quote, adjustment stage from recent sharp gains and should stabilize soon. this is according to the nation's economy minister. finance minister taro aso has weighted into the debate saying there shouldn't be too much worry into the daily movements of the equity markets. japan has once again confirmed that it is the world's top creditor nation for the second year in a row. the country's net foreign assets rose 12% last year.

japanese companies bought foreign assets with a stronger yen earlier in the year then saw value depreciate as the yen fell. analysts say japan's massive trade deficit could change things. let's check on how the markets have been tracking in asia. we have seen some more gains across the tokyo stock market. let's get out to chloe cho in singapore. >> asia was mostly higher after gains. the nikkei higher by 1.2%. a pick up in yields in the ten-year japanese government bonds evident that the appreciate your was on the bank of japan ahead of its meeting with jgb participants tomorrow as worries grow over paper losses of japanese banks that hold on to large amounts of japanese government bonds. that ease volatility gave away to gains elsewhere, especially in greater china. a lot of rotational buying in financials and property developers. let's not forget over in hong kong, we have heavyweight china

taipei surging on its restructuring plan. elsewhere around asia, take a look at the kospi. down 0.3%. the asx just about 0.25%. >> chloe cho with the update there. let's move on, russia's liquo says it rises about $1.2 billion. 2.8 billion is the number the market was looking pofor. ibda came in at $4.78 is the latest. its first quarter hydro carbon output, 2.2 billion barrels a day. joining us now is stewart richardson. stewart, nice to have you on the set this morning. >> good morning. >> we're coming up to a fairly crucial week to the markets. last week we saw investors rattled by the timing of

tapering off. where do you think the markets are going to go from here? is it going to be another period of calm? >> well, i think in the big picture, there's hints of a change coming at the federal reserve. and this is, i think, one of the biggest issues for the markets, all markets to try and get their head around for the remainder of this year. clearly, there's a lot of confusion about what the fed is trying to communicate last week. obviously, they want clear communications. they've caused exactly the opposite. for us, it was two things which are maybe clear coming out of last week. one, the members of the federal reserve, the fomc is divided. and very uncertain for policy. two, i think the fed is very, very worried about what may happen in markets once they start to taper or even end qe. i think that's why we saw a mixed message from bernanke last week. and the prepared testimony, he gave the normal message, but in the q&a, clearly there's talk about when they should be easing up on policy.

and i think this has all to do with the size of the fed balance sheet right now. they're getting far too big for the markets that they're allowed to buy bonds in. at some point, they just have to stop. they've got to communicate way ahead of time for the markets. so even if they stop late this year, early next year, they have to start from here on in from the june meeting to start to communicate. if they are looking to taper on, then i think the markets will be much more choppy. >> the question is, are we going to get any further guidance? the market is going to get volatile and rattle. >> i guess at this point, our point is that because of the size of the fed balance sheet relative to the mbs market where they're buying something like 90% of the issue and relative to the size of the treasury market whereby the end of next year would be 65%, 70% apart of the

issuance, they have to stop at some point. this is not presentable what they're doing. .if they don't communicate their strategy to the market, then that lack of clarity will fight people. certainly for us, the fact that bernanke gives such a mixed message between prepared testimony and q&a, if he's worried, we think investors should be very worried. we think they need to give clarity. if the market comes under pressure, that's a by-product of where we are in the easing cycle. if they have to stop at some stage, they've got to let the market become a freely traded market without intervening so much. >> there was so much layerty around the market. what has emerged is that really only relates to the interest rate, not the timing of qe. this is a market now that doesn't have any cues, but when the stimulus is going to be taken away. so what's the trading window? is it shorter than we think? should people looking at getting

out of assets? is it a two, three-month time frame? what are we talking here? >> we've made the point that by the end of next year, it's not sustainable. frankly, the fed is probably going to start tapering off much earlier than the end of next year. but the point is, if the fed has been buying the vast majority of treasury, you know, the vast majority, if they stop, or start to taper off, the people who want to sell don't have that big natural buyer. if you're thinking about buying, why on earth would you buy? so really, i think for people who have been mesmerized by the fed policy of the last six months together with the bank of wars pan in the last six months or so, if they want to sell, if large investors need to sell, they're looking at doing it within the next one to three months. >> the question that materializes is where do the fund flows go? there's a little bit of a risk right now. if money comes out of the

market, does it go back into cash products? does it go somewhere else into emerging markets? it was strategy going to be? >> what we're looking at in the next short period of time is we think the fed will be quite strong. the sign of the fed stepping away from easing should be very positive. in terms of aesset classes, if bond yields start to go from where they are now, that may actually begin to be somewhat attractive from a trading point of view six, nine months down the road. even with the fed not buying, that would away problem. but once we get into treasury buying, there's a lot of money going into equity because of forced policy. that may welcome out quite quickly and just sit in cash for a period of time once the market stabilize. cash could be aattractive asset for a period of time the. >> thank you very much, richard. you've been seeing some flashes on the screen from the

ecb saying the question of negative deposit rates is very, very complicated. this follows yesterday saying that the idea of negative deposit rates should be treated cautiously, as well. i just want to bring you up to date with what's happening on the italian bond market, as well. you can see 2.5 billion in 2014 bonds. the auction that was some short-term paper. so the two-year zero coupon at auction, the lowest yield seems the launch of the euro. so this is interesting, isn't it? we saw that push higher on italian paper last week. but this week, as we see more calm return to the market, yields again declining. 1.61% is the current yield on the two-year on markets today. let's give you a look at what's coming up on today's agenda in the united states. the march s&p case-shiller home price index is out at 9:00 a.m. eastern time. prices in 20 major u.s. markets are forecast to rise more than 10% after a 9% increase in

february. at 10:00, we get may consumer confidence. analysts looking for a reading of 72, up about 4 points from april. on the earnings front, we have results coming out from the luxury retailer tiffany's before the opening bell. a solar spat between the eu and china has a number of european nations siding with the chinese government. we bring you the latest after the break. [ male announcer ] this store knows how to handle a saturday crowd. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy.

japanese stocks benefit from a weaker yen. calm returns to the nikkei. however, bankia shares follow 15 billion recapitalization. swatch gets a boost from china as import tariffs are slashed. let's take a look at today's other top stories. spain's nationalized lender continues to free fall. more than 111 billion new shares changed hands to 48 euro cents in early trading, well below the 1.35 shares which they were issue. analysts have few reasons to be

positive about the stocks. tough business conditions in spain continue to weigh in on the bank. the leaks continue ahead of the release of a european commission report together on the health of the block, saying the newspaper is reporting that the eu will demand madrid speed up its pension labor and fiscal reforms to avoid sanctions. it may recommend tax hikes and that madrid modernize its energy sector. a reuters poll has shown 15 eu nations in opposition to the european commission's trade case against the chinese government over its pricing of solar panels. the commission plans to impose import duties on the products beginning the 6th of june which could be withdrawn if a settlement is reached. this is the commission's biggest trade decision to date. europe's trade commission promised the plan met with chinese minister of commerce

yesterday. swiss april watch exports increased 5.7% on the year. while exports topped $1.8 billion in sales to china fell 42%. this as china announced import duties on swiss swatches will fall 16% over the next decade. the free trade agreement would require all tariffs moved from china. the deal is expected to be signed in july. 7%, that's the economic growth rate for chinese premier league chang says it's enough to hit beijing's target of doubling per capita gdp by 2020. speaking in berlin overnight, li described this year's first quarter growth of 7.7% is appropriate. just yesterday, moody's reports predicted that chinese gdp will continue to rise between 7% and 8% annually until 2017. investors have turned bearish on australia in recent

weeks as a concern about slowdown in growth could hurt the country's mining sector. but it seems australians just don't care. australia's life expectancy and employment rate both outstripped the eo kre d average. so what do you think is the happiest place on earth? feel free to get in touch with us. is there somewhere you've gone on holiday, somewhere you've lived before? e-mail us, worldwide@cnbc.com, @cnbcwex or fire a twit directly to me. still to come on the show, jordan is preparing to shore up public finances. we'll hear exclusively from the country's prime minister on bond issuance. and in the meantime, we'll leave but a view of the heat map to see how the european markets have been fairing across the morning session. i want to make things more secure.

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despite that, the dow eked out some early gains. this comes on the back of what has been a solid couple of sessions for the european motorcycles. too little too late, that's the comment from the syrian opposition from the eu's agreement to lift an arms embargo. the uk and france were at the forefront of the push to supply arms to the rebels, but they fairs fierce opposition. the uk's foreign secretary insisted the move doesn't mean weapons will be sent immediately. >> we would only take the step of sending arms in company with other nations in carefully controlled circumstances and in compliance with incident every national law. but this decision today gives us the flexibility in the future to respond to a worsening situation or to a refusal of the assad regime to negotiate. jordan has suffered from arab uprising in the region, but

the company has made some major reforms. the economy is expected to grow around 3.5% this year. hadley is with us. we're seeing the spillover effects from jordan. what's the latest you found out from the country? >> i had this interview with the jordanian prime minister. it's a cry for help, really, from the international community. we have the refugee situation, some 500,000, even a million plus refugees expected. at this point, you have a country with 12% unemployment, and the economy just can't support the refugees any more. and he's asking for more international aid. i had a chance to sit down with him in jordan over the weekend and asked him what the country is going to do to fix that deficit. he's quite excited because at this point they're asking the u.s. to support them in issuing 1.5 to $2 billion worth of bonds. take a listen. >> finances were reluctant.

seven, eight months ago. but after we took those measures of lifting the subsidies, and, therefore, it started to come back to jordan and then we were able to -- we were able to borrow $700 billion and we'll have no difficulties. not over the government has -- up to guarantee whatever it is we get from the international markets. and the vicinity of $2 million. so that will be very, very helpful. it will cut down the expenses and for sure bring more interest

in the inter -- in the interact. >> today you heard the prime minister talk about raising money on international markets. aside from the refugee crisis, 00,000 plus refugees, you have a durf of resources in that country. you have a major water shortage and then problems with financing energy. you have subsidy issues. and i asked the prime minister if there's a political will to cut subsidies on energy. >> we are embarking on more profitability on this time on electricity because it's very, very highly subsidized. and i hope that the public will understand and we have a very long way to convince our public that what we are doing is the right thing. of course, we should have a spoeshl program and we have a very good experience. we had an excellent one.

and it became an example now, giving that as an example in the region. i hope we can succeed with electricity as we did in the fuel lifting of subsidies. >> of course, those subsidies are a very contentus issue for jordan. we had protests over the last two years as a result of those cut in subsidies. and the prime minister there saying he does expect to cut the subsidies in the future. >> to what extent is the international community willing to fund the likes of jordan to keep some stability amongst a friend rather than foe? >> i think we look at the gore danan's position in the region, they're a friend of israel and i think the united states and the western-backed forward will look to majority began to keep some measure of stability. you have the gulf countries looking at jordan and saying king abdullah, we want to tb to help him. >> i appreciate the update.

hadley gamble with us on the program today. we're going to go for a break. still to come on sh show, we'll find out at 9:00 eesh if u.s. house prices can continue to recovery. a review after the break.

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a return of some calm pot japanese markets, the nikkei moves higher. after a breather and a holiday break, the u.s. markets will test the resolve of the recent rally with key data on housing. and a warning is issued against higher taxes by the ecb christian noyer. the banki achieve saying the country must reign in spending. china is cutting tariffs on watch imports by 60%. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> we'll find out how the u.s. housing recovery is fairing when

the u.s. case-shiller housing price index comes out at 9:00 a.m. eastern after housing starts for last month fell. building permits rose to levels not seen since june 2008. joining us now is tonya machio, the ceo of investments. tonya, what is the case-shiller index going to look like today? >> i believe the case-shiller index will be positive numbers again. they've shown positive numbers quite a few months in a row now. we're going to continue to see positive number peps we had the highest number of resale homes in 3 1/2 years, which was up 9.7% from the year before. what's interesting is that foreclosures are also going down at about 5% better than last year. so we're seeing truly positive signs, not great highs, not great low webs but a positive climb for house in the united states market.

>> i wonder whether it's too positive. some corners of the market are concerns that we're seeing elements of froth in the housing market because we saw the spring home buying market kicking off with a frenzy, the fed has been keeping borrowing costs low. do you think there's an element where house prices are rising too quickly? >> in all honesty, no. i think that we have a long way to go before housing really hits a plateau. you have to realize that there's still over 1.4 million homes in some sort of foreclosure. that's a lot of homes that still need to hit the market, go through the process, have inventory for buyers. it's really a steady process right now. i don't believe that the highs are going to create another bubble. if you look at the mix of buyers, though, some people had concerns about this because it seemed like a lot of the wall street investments are now buying their way back into a depressed housing market. it's not necessarily the end user who is buying that stock. doesn't that create problems down the track because more stocks are just going to keep on

coming back to the market? we're not exactly clear into inventory. >> you'd have to see that home buyers, true home buyers, the end user are coming back to the market now. they're just coming out of a cycle where they either foreclosed or short saled or were in a depressed situation. they could not buy for five to seven years. the fact that these wall street firms have come in and started this cycle is truly awesome for housing. also, you have to realize that investors really need to look and see what wall street is doing because they can actually follow in their footsteps. there's a lot of great buys out there for the individual investor, as well. >> it's positive for the wealth effect, but the ultimate problem is values are now rising a lot quicker than incomes. where do you think the most sustainable increases are coming from? which parts of the country to see fundamental strength? >> right now, it's truly the west. states like arizona, because they went up so far and came

down so far, arizona and nevada are really leading the way out of this housing market. then you have a state like florida. they have a lot of foreclosures left. however, it's always going to be a vacation destination. so their housing market is always going to come back strong. you have different pockets doing different things. the midwest is still very, very depressed and it's difficult due to swrobs. a lot of this housing recovery entails where jobs are. florida is always going to have a great housing market. but when you look at the midwest, it's really tough. even though housing is cheap, there's not a lot of employment. >> thank you very much for joining us today. of course, this starter point is key for the markets. we've been told by ben bernanke watch out for the data. this would be typical for what we see for fed policy. this is how we're looking across markets as we come up to the trading session.

wall street was taken out of aucti action yesterday by public holiday. looking at where we are, 11 on the chart for the s&p 500. it was the first time we saw declines across the course of the week for several weeks. this has been a retreat for the highs we've had of late. the cnbc ftse 300 global index is tracking modestly higher. early on, we got a bounce of 0.3%. european markets have been fairly resilient for the last couple of days. the xetra dax trying to recover some of the all-time highs that has been tracing 8.5,000 where it's headed to the next stop. we've had a 90 point build this morning. 273 points for the ftse mib. outside performs for the periphery have been the story of late. 1.3% for the cac and the ftse just at the other end of the market. returning to the trading session today. also after the public holiday. it has been a fairly strong move

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whether people carry genes for certain diseases is available at a cost of around a thousand pounds. what if it was available to the public at a lower price? in the second of our series looking at new companies, ross westgate caught up with the ceo of genia following the entrepreneur conference asking him about the future of dna sequencing. >> we're driving the cost down. to do dna sequencing today is still a several thousand dollar endeavor and we want to bring the price pint down to $1100. we want to make the instrument small enough to deploy to a doctor's office and we want to make the time to answer short enough that you can get an answer pretty much immediately. so that sequencing can become a routine diagnostic activity versus something that's only ordered in an exceptional amount of cases. >> this is a big step change in both pricing and availability. what does that mean in terms of outcomes for health and the

diagnostic business? >> think of a scenario maybe a couple years out. you go to the doctor, you might have a headache and even before you sit down with the doctor the nurse takes a sa live sa sample, puts it on one of our instruments, sequences everything in that sample, all your personal germ line dna, all viral dna, all bacteria dna and everything in that sample is sequenced and screened against tens of thousands, hundreds of thousands of known conditions. so by the time you talk to the doctor and say i've got a headache, he says no wonder you've got a headache. you've got the flu coming or something more serious. so it changes the way diagnostics are going to be performed. we're going to put your sample on there, we're going to tell you what you have. >> here is another story of how technology is helping out. big data could reap big benefits. a recent study finds the use of

realtime analytics could cut health care costs up to 15% for the year. now there's a push behind the private sector to aid checking data and treating patients. bertha coombs is joining us in the united states. bertha, we know health care costs are an issue. >> it's one of those things where, you know, it's all coming in and it's all being generated. and until now, we haven't necessarily been able to utilize it in the best way. so if you take big data, that's the ability to harness these huge amounts of information. some of it is not even coded. so it's kind of unscripted. sift out patterns and trends from it, it's a powerful tool. and ibm is now lending doctors a hand with the help on of a game-show winning computer in the fight against cancer. >> how are you doing? >> so many cancers we don't have a good result in today. not enough people are cured.

people are hurt by our therapies. and we've got to find a better way. >> mark chris is chief of thoracic oncology. >> there are some predrug regimens that contain a targeting agent. >> oncologists have been working with ibm to turn watson, the cognitive computer famous for wing at jeopardy into a tool to help doctors provide the best cancer treatment options for patients. >> they would be getting eventually a chemotherapy and receptor. >> to train watson, this team ingested 2.5 million pages of cancer data, written texts from medical journals and 1500 case files. >> teaching the system how to real medical records, it's not a simple task. >> dr. chris says watson's ability to literally learn from each set of recommendations was one thing that surprised him.

>> and the second thing is that this machine is ultimately going to improve the care of each person. i mean, it's going to be the ultimate in personalized medicine. >> also counterintuitive says ibm's sexanna, watson got smaller using less server hardware or getting smaller. >> we'll reduce it down to about this size. >> analysts say with the rising cost of cancer medications, there's a big push towards more evidence-based medical care. watson gives providers overwhelmed by data the evidence they need. >> so it's humanly impossible for the doctors to pull all of the medical records, the pathology reports, your family history, the most recent diseases and drugs that are supposed to have done and to bring it together to the point of, you know, treatment. that's where watson is a physician support system we believe will have break through implications.

>> so far, they've only been using it with test cases and files, karen, but now they're going to start using it with patients trying it this summer at two cancer facilities and a trial and they hope to be able to have this as an actual product by 2014. and you could equalize the quality of cancer care across the spectrum. >> bertha, thank you for bringing us the latest there. i want to bring our viewers up to speed with in forecasts that have been crossing from bang of america merrill lynch. this regards if gold prices. for bouillon, 1478 u.s. this is 12% below previous expectations. the good news for gold bugs is it's slightly higher than the price we're currently seeing on markets. so it's about $100 higher than the current spot price. in terms of the silver price, 2440 u.s. announces a number that have bank of america

merrill lynch is expecting. the price could fall below $20, as well. it does say some demand does continue to persist out there. we're hoping the slide won't continue too much further. these are your headlines today. japanese stocks benefit from a weaker yen as common trading returns to the nikkei. key data today on housing and the consumer expected to play a part in u.s. equity indices. and the ecb's christine noyer speaks out against raising taxes in france warning on unemployment and growth. and let's take a look at the other top stories today. canada's valiant pharmaceuticals strikes a deal to buy bausch & lomb for $8.7 billion in cash.

bausch & lomb is best known for making contact lenses, but is in pharmaceuticals. shares rose 8% in toronto on monday. on top of this 13% jump we saw on friday. this on the back of reports the companies were in talks. in frankfurt, you can see the shares today. rupert murdoch will welcome investors into his corporate home today. news corp. holds a meeting in new york to discuss what the company will look like once it spins off the the entertainment business next month. the unit will be known as 21st century fox. the publishing business, which includes "the wall street journal," new york post and random house will keep the news corporate name. on friday, news corp. said it would take a charge to write down some publishing assets. the share price today in frankfurt, tracking a little firmer, 0.3% to the up side. tiffany has come a long way since its early jennings as a stationary and fancy goods em

porous. the luxury retailer reports quarterly results before the opening bell. what will the numbers say? we'll get a preview coming your way, next. 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. ♪

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if you don't have something important to say? ♪ the royal caribbean says it will arrange flights for the more than 2200 passengers aboard its gra dm did he ur of the cruise ship. a fire broke out on the third deck early monday morning. the fire took two hours to spinning wish and there were no injuries. the ship never lost power, but is now mored in freeport in the bahamas. here is a look at how royal caribbean shares have been trading. up about 0.4 had% in the german session. over the course of the three months, underperforming the

german market, though, 8.6% the size of the increase. u.s. movie goers still like the thrill of fast cars and furious people. "fast & furious 6" zoomed to the top of the holiday box office to the tune of $122 million. the universal pictures action film starring vin diesel beat out "the hangover part 3" which grossed $63 million since opening on thursday. let's move on to how european markets have been faring across the session. we've had green across the major indices, turning up from some of the highs we saw earlier. the ftse returning to the market today after being closed yesterday for a public holiday. 1.6% the balance. the mib stronger 1.6%. another increase, the cac since last check up 1.5%. u.s. futures telling us u.s. markets will start on a positive

footing this morning. they were closed yesterday for public holiday. but the markets on the back foot last week, we did see the u.s. stock indexes posting their first negative week since mid april as investors focused on the timing of tapering off by ben bernanke. so the question for investors, how do you make money in these markets? here is what some of the experts have been telling us this morning. >> well, this japanese equities bullish dollar/yen. i'm not concerned about the jgb move. and i think everything that's happening is in line with what we should be expecting. so if you look at jgb yields, the big move that is happening has been in real yields moving down. so break even can move higher, which is exactly what we would be expecting on the back of an economy that's refacing. >> the correction deserves respect. the price actually fair, but for

medium to longer term investor, this is a phenomenal opportunity in our opinion. the reason being very simple. stocks follow earnings and the visibility of earnings in japan is have going to be very, very good over the next 12 to 15 months corporate profits rising by about 50% is a perfect and reasonable outlook and that should drive japanese shares higher. >> having in our guests short period of time longer term, we think this dollar will be quite strong. the fed's easing should be very positive for the dollar. and in terms of asset classes, if bond yields start to go from where they are now to maybe a 2.5%, 3% on the ten-year, that may be somewhat attractive for the trading point of view six, nine months down the road. >> let's give you a look at what's on today's agenda in the united states. the march s&p case-shiller home price index is due out at 9:00 a.m. eastern time.

at 10:00 a.m., we get may consumer confidence for a strong rate on both housing and consumer side today. on the earnings front, tiffany's reports its first quarter numbers before the closing bell. the luxury retailer will earn 53 cents a share down from 4% a year ago. joining me now is brian negel. price, nice to see you today. these numbers will be coming out of tiffany's. what do you think the picture is going to look like given we've got a weakening demand story across china? >> i think what you're going to see from tiffany, and this has been the story for a while now is another weakish quarter. underlying, the trends are getting better. the street is at 53 cents. i'm a little below that. they are going to spend more on marketing here in q1. as we look through the balance of 2013, i think tiffany's sets up pretty well here on the heels of an improving economic

environment worldwide. much easier sales comparisons. >> brian, the market is concerned about currency fluctuati fluctuations, particularly when it comes to japanese equities on earnings. how negative is this going to be for the earnings, the fact we're seeing a further depreciation in the currency? >> well, there's a couple different ways to look at that. from a translation perspective, really the mechanics of how the financial statements works at tiffany's is a negative. they translate the sales in japan back to u.s. dollars. in my view, it's a positive. again, i don't pretend to be an international economist. but in japan, that economy is pick up. over time, that should suggest better demand trends for japan in tiffany. >> if we look at some of the marketing tiffany's has embarked on, it's time idiots campaign to the great gatsby movie and sales, do these marketing campaigns make much of a different to the quarter on quarter numbers? >> it takes a little longer. it will be interesting to see. the great gatsby effect will be

probably be mostly q2. maybe we'll get a bit of a read in that, what tiffany's says about their guidance in 2013. look, i think it's -- you know, i've been in the stores a lot. i spent a lot of time at tiffany's stores. some of those tied to the great gatsby movie. that does help sales. we've seen with tiffany in the past, you see a pretty immediate pick up in sales. >> brian, i want to sell of further into the chinese stories. there's a thing pushed back against gift giving in an attempt to crack down from corruption. we're just seeing even today china's top end corruption coughers demand that he ditch their vip cards and give access to certain businesses and discounts on certain goods. how strong is this pushback in china having an impact on some of the luxury goods names, the likes of tiffany's, for instance? >> well, it's difficult to say specifically. because i think, you know, the one key with tiffany is that the company is still pretty new in

china. relative to some of the other luxury brands out there, tiffany is relatively small. when i look at tiffany's numbers and tiffany's china numbers over the past several quarters or so, i think there's a great deal of market share on behalf of tiffany. it's difficult to say what type of impact, if any, these could have on tiffany in the longer term or the near term. >> thank you very much, brian nagel, senior equities research analyst at oppenheimer. that's it for today's show. i'm karen tso. thanks for watching "worldwide exchange." have a good day. the new blackberry z10

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. movrng. the major u.s. stock averages are coming off the first weekly loss in a month. futures are pointing to a sharply higher open today on wall street. let's make a deal, valiant is buying bausch & lomb. astrazeneca is purchasing heart firm cera. and more trouble for the cruise industry. a fire on board a royal caribbean ship causing the trip to be canceled. it's tuesday, may 28th, 2013 and "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. and let's start things off with the futures. they are indicated higher this morning. in fact, up by a lot. dow futures right now up by 1116 points. s&p futures up by 14. nasdaq looked like it would open up by about 30 points right now. in asia overnight, you did have some green arrows there, too. the nikkei was up by 1 is.2%. similar gains in shanghai. the hang seng was up by over 1%. in europe this morning, the early trade has some green arrows. the cac right 2340u is up by 1.5%. the ftse in london up by 1.6%. the dax was up by just over 1%. it may be a holiday shortened trading week, but we have a busy four days ahead for the economy. today we get