hello, everybody. welcome. you're now watching "worldwide exchange." i'm louisa bojesen. these are your headlines from around the world. oil cause friction at the opec meeting. ministers will be weighing the impact of ridesing supplies from america and they're expected to leave output unchanged 37. european stocks in the red on the last day of change for the month. lloyds is bucking the trend after revealing the successful sale of a $3.3 billion pound u.s. residential mortgage backed securities portfolio.

and india clocking up its slowest annual growth rate in a decade, giving the selling more reason to push on with the economic reform. and sony shares closing higher on a cnbc report that the group now has higher investment banks to review proposed shares. the group's ceo is telling us he's confident he can still turn the group around. >> we continue to work with the entertainment properties so that they can provide a lot of great content to support or electronics business. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi, everybody. good to see you again today. it's not only the last day of the week, it's the last day of the month. it's been super eventful. and we're going to look back a bit and assess what type of months it's been and if we can learn anything about it setting

us up for what is to come on next month's show. coverage on opec three threwout this show. also across the border, swiss bank ubs is reportedly raising salaries now for investment bankers to encourage them to stay at the bank. we'll have an update from zurich at 10:15 cet. india's economy is growing at its slowest pace in a decade. at 10:20 cet we'll be discussing this with deutsche bank's chief economist tim uhlbag. batten down the hatches, america. the u.s. hurricane season officially beginning today. we'll bring you a special hurricane report. get involved in the show. as usual, find us on e-mail, worldwide@cnbc.com. it's on screen if you want to e-mail us. find us on twitter.

@louisabojesen and get in touch like that. opec minister res in vienna to discuss future output targets. ministers anticipate that they could discuss the impact of u.s. shale oil for the first time. steve is in vienna at a meeting. steve, is it really going to happen or do we just think it's going to happen? >> well, louisa, when they're producing 32 million barrels a day or 28 million barrels a day, the official figure is 30 million. as all seasoned oh pk meeting watchers know, the fact remains that they can produce 30 million and nothing punitive is going to happen. it doesn't change the official levels. there's a level of cheating which is interesting. the level of overproduction is running anywhere between 500,000 million barrels a day to 1 million barrels a day. the official figure would mean that they are sending out a

signal that they're very concerned about potential oversupply in the market and that oversupply is coming from various sources, whether it be nonopec, just manages to fill the gap. it's seamless without any coordination from their peers or whether it's coming from the u.s. energy revolution. we put on an enormous amount of extra barrelage in the united states, 7 million barrels a day already out of this shell revolution which is the most we've seen in many, many years. so that remains to be seen how fast that's going to grow and whether that would lead to oversupply in the market which would potentially dent prices. the shale could take over as indeed the opec. they are very happy with the oil price at the moment. last year, oil valued on the basis $111 on average. going back ten years before that, it was only 25 bucks.

$102 is the price so far this year which everything picks up as the basic barometer. $90 a barrel or $80 a barrel will be a squeeze for many of these areas. i asked about current production levels and other issues as well as shale. >> you know in that time, the market is okay. it's very quiet. the price is okay also. >> how concerned are you about nonconventional coming out from the market in the u.s.? >> well, we need to ajz the situation that we need to do some studies about these positions. >> but not concerned sfp. >> no.

>> yeah, monitoring the situation, i think that's an understatement, as well. already some nigerians have began to suffer as the americans have substituted home grown produce, so to speak, for niger nigeria. the internal tensions, louisa, very interesting at this meeting. you know as well as i do the tensions in the middle east between the sunni and the shiite has led to tensions. you have to remember the iraqis want to get from 3 million barrels a day to 6 million as well as 9 million. there's a lot of internal tensions as well as those external pressures. the greatest issue is concern of china. but oil has been pretty steady so far, despite the fact there are real big concerns about the global demand picture.

steve, briefly, are they going to be talking about who is going to become the next secretary general? >> well, yeah, that's kind of the point really as well with this iranian saudi tension. add iraq in there, as well, and the fact that you'll three of on those country ves put forward candidates, as well, the saudis, the iranians and the iraqis. but we're not necessarily going to get an announcement today. but what we think we will get is something at the next meeting at the end of the year because none of those three want to give ground to the other with big political implications. and relative accord, as well. he might be ready to retire at some stage. but he thought it was his duty to stay on through this transition period. but i don't think we're going to

get a new secretary general today, but we will get more on when we will get one. >> steve, good to see you, with and we'll see you throughout the rest of the take, steve sedgwick live out of vienna. lloyds banking group has just announced the sale of their uk portfolio. it was bought by a number of different institutions for 3.3 billion pounds. the sale is expected to go through by early june and it will boost lloyd's capital. santander has reached a deal to sell half of its asset management arm. the u.s. private equity arm is buying 50% of the business which was first put up for sale around five years ago. alberto gallo is our guest

host for the next hour. welcome from rbs. we're very pleased to have you with us. i know you've been looking closer at the bank. i want to talk about general europe definitely in more detail, but starting off with the banks, you've done some research about where the strong banks are in europe at the moment. are we still seeing a lot of the weakness that was there a year, two years ago, persisting in periphery euro? >> well, i think many of the banks have recapitalized. there's less liquidity concerns with the ecb action. italy and spain, a two-tier banking system is starting to development. but generally speaking, there is a slow de-lev raemging trajectory. banks have delevered $2 trillion of assets over the last year in europe. >> 2 trillion? >> yeah, 2 trillion.

part of it is payments and another part of it is banks running down. some are selling, like lloyd's, for example. it's not so great for borrowers and the other type of economy. >> and you're looking at where the bad loans are coming from, as well. in terms of on the strength of the banks, is it fair to compare the banks and a strong balance sheet versus those who are strong exposure to bad debt, for example? >> this is just the start of the deleveraging process. we talked about it a lot. we said the leveraging will be 5 trillion in europe. it has too many banks. the banks are too large. they're 3 1/2 times the size of their economies. in various countries, they're even larger than that. so deleveraging has started. it's started unevenly. in the periphery, deleveraging is stronger and this creates lack of loans.

it reduce tess money supply that you have. it basically makes monitory policy less effective and it's deflationary. there is in some countries like italy or spain, portugal, lack of lending, higher bankruptcies and higher unemployment. the ecb is trying to fight that with new actions like the easing of collateral, that have been discussed by draghi and other members of the ecb. >> alberto, you're just getting us started here at the top of the show. loads more to come. get your tweets through, your questions through, as well. we're happy to talk about your issues, as well, here in the studio. we had a pretty rocky session yesterday, by and large, due to the overnight session. before that out of asia, let's check in on the markets in asia here this morning. chloe cho is in singapore. chloe. >> hi, louisa.

certainly we've seen more volatile swings than what we saw today, but quite a bit of red arrows, despite the fact that we had a positive handover on wall street. whether on wall street, bad data translates into equity performance, that remains to be seen. we had a couple of interesting data points coming out of japan today. the market came off its highs and ended up about 1.4%. industrial picks, activity seems to be picking up, but certainly mr. abe and the rest of the team in japan seem to be miles away in beating that deflation. also the fact that a serbia manufacturer suggests there could be weaker months ahead. that suggests volatility could be further down the road. it's interesting, there's a nikkei report without attributing any source that japan might impose new rules on the forex margin trading and that is to extend the volatility, the huge swings that we've been seeing in dollar/yen, as well. we saw already the strengthening of the japanese yen.

take a look quickly at where the jgb yield fared in yesterday's session. overall, a lot of people will be looking at the announcement coming out on from mr. abe next week on the third arrow, that is the growth stimulus measures. but then again, this is going to take years. ultimately, there is a lot of skepticism as to whether abe-nomics is bearing fruit. another downside to the asian session, a lot of witcherers out there in the market that the official pmi number out of china could be skirting around the threshold of 50. remember, it was the flash hsbc number that triggered, that was part of the trigger for the 7.3% drop we saw last thursday, as well. not surprising, we saw flat line. shanghai down 0.75%. but a lot of fund manager necessary china upping their exposure for five-month lows so

maybe we could see a resurge in china for the month of june. back to you. >> chloe, good to see you. thank you very much for the recap of all the action that's been taking place in asia. that brings us back to europe now. remember when we spoke yesterday on the close, we were looking at slightly mixed markets with mainland europe having rebounded a little bit and closing in positive territory. this morning, we're seeing a little bit of reversal by 0.8%. so we just dropped a little bit here within the last hour or so of trade where we've been open, where we've seen activity. our main european equity markets are lower somewhere in the region of 1%. the xetra dax, we're now looking ahead towards the end of month. a little bit of reoptioning on that front. today is the last month of trade. it's all very exciting given the volatility that we've seen. we'll recap some of those monthly acts a little later on.

the jgb, the bund, the treasuries, all seeing a bit of buying. so risk off buy into some of the safe havens, the ten-year italian papers back there in the corner yielding just over 4%. so being sold a little bit back. and i think it's interesting to look at the commodities, as well. steve is covering opec out of vienna. we've got brent and nymex trading down by just a tad. spot gold you would note having been back up to some two-week highs. we hit a level of 1422 a little while back, a little earlier. we're up somewhere in the region of 2.5% on the gold commodity for this week alone. we've had a huge correction in the last couple of weeks. but just coming back a tiny bit in today's trade. now, india's economy is in

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welcome back. it's friday. you're watching "worldwide exchange." i'm louisa bojesen. american how will households, they've regained less than half of the wealth that was lost during the recession, according to new data from the st. louis fed. $16 trillion in wealth was lost during the crisis from the sinking stock markets and the downturn in housing prices. but only 45% of those losses have since been recovered. according to the fed, most of the games came from the improvement in the u.s. stock market which predominantly favors wealthy families. asia is minting millionaires. a boston reporting group says that private wemth in asia rose faster than any other region last year. the u.s. is still number one being the wealthiest place in the world. japan is followed by china then

the uk and germany. neen while, a trip adviser shows that the world's beg best tippers are the germans followed by the americans. only 39% of british people tip while they're on vacation. do you tip or are you a -- >> sometimes. when something is very good. >> what happens if it's not good? are you one of those would says i want the 12.5% removed from the bill? >> no. >> no, i don't do that, either. i find that embarrassing. >> but if it's very, very good, i keep it secret. >> is it a good thing to tip or do you feel like you don't have to tip? do you feel pressure to? bad experiences with the good experiences? let us know. "worldwide exchange." get in touch with us either by e-mail, worldwide@cnbc.com or find us via twitter, @cnbcwex or send them directly to me,

@louisabojesen. consumer confidence in the uk has hit a six-month high with the gfk index rising to minus 22 from minus 27. in april, this as the british chambers of commerce upgrades its gdp growth forecast for the year from 0.6% to 0.9% with the service sector in particular gaining strength. earlier here on cnbc, the chief economist at the bcc david kern warned the bank of england incoming governor mark carney against further moves to devalue sterling. >> it's not its policy. the worst thing you could do is to have another big dose of qe to debase the currency again, to cause more inflation, and you will cause much more damage to consumer spending than any benefit he will do to exports. our exports are not commodity exports. we are not going to benefit by another negative valuation of sterling. >> the european union is taking britain to court now over allegations that it continued welfare benefits to eu

nationals. brussels accuses the uk of passing criteria requiring a test passed before granting international benefits. i've never taken one of these tests here in the uk. you know how you have to take it if you want to -- >> not for benefits yet. >> no, but also in terms of if you want a permanent residency or things like that. but, yeah, i know a lot of the questions i don't think i would know yet. >> be holdings is my password. >> speaking of passports and bro broadening out in europe at the moment, we focused on the eocd report calling on the ecb to stimulate the european economy. you talk about negative deposit rates in some of your research

and you think there's a one in three chance that the ecb implements negative deposit rates. >> we can there's a slightly lower chance. we think there's a higher chance to -- rates again between now and september. it's very controversial. the benefits are not clear. and we think they will keep it as a last resort option. really, what the ecb needs to do is go outside the standard monetary policy. because in europe, unlike in the u.s., it's all about the banks and lending and loans not bonds. that's how companies borrow. and the reason why monetary policy is not working yet, not everywhere, is that banks are not lending because they don't have the capital to do so. especially in the periphery. so either you fix the banks, and that's a very large task that european governments cannot afford to take at the moment, or you find other ways to get credit to the small businesses in the periphery which are struggling at the moment. and that's through the program

with the eib or through collateral easing on asset-backed securities. which are banged not by houses, but by factories, planes, trucks and productive equipment. >> okay. plenty more coming up with you later on, alberto. but in the meantime, cnbc sources say that sony's review of third points proposal to spin off a chunk of its entertainment business won't start until a new board is elected. david faber has learned that they have hired morgan stanley to review the deal. sony's ceo has said it's too early to decide what the board would decide, but he did tell us what a break i couldn't tell would mean to sony as a whole. >> if you look at the value of the entertainment properties for sony, it's been a great contributor to the bottom line of the group numbers for us. and wsh you know, we definitely want to make sure that we are

able to continue a very successful business in the entertainment space and that, to me, is first and foremost the most important priority and that we continue to be able to work with the entertainment properties so that they can provide a lot of great content to really support our electronics business and that's a combination that other electronics manufacturers do not have. >> we were just looking at the numbers there. for the baft decade, electronics has lost an aggregate of $8.5 million. that's become such a commoditized business. is it so broken that you can't turn it around? why not let that go and go with where the strength are in sony. >> i've been the ceo of sony now for about a year and i visited a lot of different parts of the organization on the entertainment side as well as the electrics side.

and my conclusion is that given the proper focus, given the proper extra tostrategic prioritization and we need to focus on these opportunities to turn the electronics business around. a great example is the tv business where, as we committed two years ago, we have had losses the last fiscal year and we're on our way ahead of plan in turning that business around. so, again, it's a matter of focus and it's a matter of execution. >> we've been watching what's going on in japan, of course, and the new policies coming out of the prime minister abe's office there. can you characterize what you're seeing in japan right now? of course, overnight, a little more nervousness with that 5% sell-off. how would you characterize the economic landscape there? do you think those policies are going to work? >> it's a little too early to tell at this point. i think the abe administration

and the government is really -- they're saying the right things. they are really pushing the right agendas. and i think it's just a matter of making sure that they really stick to their policies and give the opportunity for the policies to really take hold and make sure that, you know, some of the things that they've been saying really turns into, you know, a real opportunity and real growth opportunity for japanese industry. and i think, you know, there it's a factor of time that we really need to make sure that we consider. so, you know, it's not going to be an overnight change, but i think we're headed in the right direction. >> and wa kind of an impact have you seen at sony with regard to the japanese yen? >> at sony, interestingly enough, versus the u.s. dollar, we actually are at a disadvantage as we have a weaker yen.

certainly with the euro, a weaker yen does help us. so net-net, we do have a positive. but i think that, you happen, the preconception that a weaker yen is good overall, unfortunately for us, versus the dollar, it goes the other way. >> the graphics that we take for granted are just astounding looking at those clips there. adam leif is from odum. good morning. good morning. >> do you think spinning off a chuck of the entertainment business makes sense for season snee? >> sony has to look at where it's making profit and focus on those. but i think, really, if you look at more successful companies in electronics yeah, they're using different assetes and leveraging those. sony has a real differentiating in its content and music business and it should really, i think, try and use that rather

than saying there's a big disparity here, let's spin them out. the electronics part of the business is a commodity. how will it then differentiate itself in the market? at the moment, sony has a different proposition it can put to market because of that. >> we'll talk more tech after the break. we need to pay some bills. in the meantime, india growing at its most sluggish pace in a decade. we'll get an outlook for the asian giant coming up in a second, as well. [ kitt ] you know what's impressive?

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hi, everyone. welcome. opec ministers put on a brave face saying they're not concerned about the rise of u.s. shale oil. but the rising supplies from america can still cause friction at the exporter meeting in vienna. european stocks are slightly in the red on the last day of trade of the month. lloyds bucking the trend after revealing the successful sale of ads 3.3 billion pound residential mortgage backed security portfolio. and india is giving new

delhi more troen push on with its economic reforms. and cnbc shares moved higher on sony's intention to deal with spin-off plans. but the group's ceo is telling us he's confident he can still turn the business around. >> we continue to work with the entertainment properties so they can provide great content to support or electronics business. >> hi, everybody. welcome back. we're getting some flashes out from mr. visco indicating that the ecb is ready to intervene again on rates and that they're considering all measures to maintain credit conditions consistent with their monetary policy stance. these are interesting comments. we're also hearing that he's saying some italian bank shareholders have to be ready to absolute their stakes to accept mergers, as well. this as the bank of italy is saying that mon at the paschi's

current rate is inadequate. it says the reforms in italy, they've slack.ed over the past year and they have to achieve new objectives quickly. he's urging the common eurozone bucket and common financial supporters for reforms in member states. and he goes on to suggest that joint debt issuance should be taking place on a trial basis. we're going to keep our eyes on these comments as they continue to hit other wires. a brief look at our european market this morning. we're lower somewhere in the region of 1.25% for the cac 40. we saw main european markets. a bit of flip-flopping from yesterday's close. but the all things digital tech and media conference welcome tim

cook, cheryl sandburg and elan musk on to the stage this week. they kept quiet about new product announcements, but motorola made its move back into mobile. now, having taken a back seat to apple and samsung among others, the once dominant cell phonemaker will be launching the moto x later on this year. intel may have engineered a much needed win in the mobile space. a reuters source says samsung electronics, they've chosen intel to produce more for its chip market. samsung has been using chipped provided by arm holdings for an its droid tablets. adam is still with us from ovum. adam, motorola, when i started covering the tech market some 13 years ago, 10 years ago,

motorola was the thing. this is the big mobilemaker everybody said had to have a cutting edge on design. where are they now? >> and that's his fall from grace. they've now been acquired by google and they've just spent a lot of time restructuring the company to try and refocus their efforts. they're looking largely to focus on americas and that's north america as well as the south america in terms of their geographies and really focus in on the smartphone area, which really they haven't been as presently on. but they're looking not to be such a global player as they were before, but focus on some key markets for them, that they feel their brand has value and leverage that how do you think that sit versus apple at the moment? anecdotally, more .more people are talking about the superiority of the samsung devices versus apple. >> so in terms of overall shipments and volumes, samsung

clearly has -- has the lead over apple now. this has sort of happened over the course of the last 12 months or so. and really, they've managed to drive the portfolio, different devices at different price points. it really has consumers at all levels rather than just what apple do is more of a high end proposition. they've succeeded on that front. key really now to see how apple responds to that. >> so you're not a technology expert, but looking at various sectors at the moment when at the same time we have dire straits taking place in europe as far as the tech story. the tech story has been rebounding nicely. >> because tech companies have very little debt generally. so even in the u.s., when the u.s. crisis hits, that's been the -- you know, one of the safest sectors. and also they're very exposed to experts. when we look at companies in

europe, we tend to look for these two things, not too much leverage and a lot of exposure to exports, which sometimes can happen even in periphery companies, for example. and we were just looking at the apple share prices, we are still right there on the screen. what do you think of the apple share price at the moment? are we going to recover fully? >> they're coming under heat to basically their company and as a company they like to have surprises, new products that delight the market and create new markets at the same time. as they did with the ipad, for example. and they haven't really done that for the last year or so. we've sit iterations of the same product, no real surprises. from what tim cook has said, all things digital, it's not likely it's going to be a big reveal of a new product. so i think the stock price is going to remain as it is at the moment.

>> i'm still waiting for a proper invention of wearing your mobile. >> yeah, well, there's a time of wearables in terms of watches. there's a number of companies that are in that field at the moment. and it's right for one of these big players to come in, sort of niche players at the moment. sony is one that has a smart watch in the market, but it's ripe for one of the big players, apple or others to come into this market. >> adam leach, thank you very much for coming. now, in the fifth and final series of looking at new disruptive companies, ross caught up with entrepreneur's residence. >> as the entrepreneur and residence at dell, i essentially am a voice for the xunt. i bridge the outside in and it truly is -- i mean, now having the benefit of being both a lifelong entrepreneur and now sitting on the inside of global fortune 50 companies, i can honestly say i have never, ever

before seen such an authentic extension of the olive branch out by a large company to these emerging entrepreneurs and business owneres and saying, you know what, guys? we know that our global economy, we're going to get it turned around. it's going to be entrepreneurs and the small business owners who do it and we want to be part of that. we're willing to step up to the plate and do whatever it takes to help you be successful the wa does that mean in practice, step up to the plate? >> a couple of things. essentially wa dell has enabled me the opportunity to do, because one thing i have to mention, my role at dell has grown quite a bit partnership started as the entrepreneur in resident. i now oversee global entrepreneurship for the country. essentially what michael dell, steve f he lise and the other executives at delve allowed me to do is almost lift up dell from an entrepreneur's perspective, a business owner's perspective, look inside all of the resources available in a

fortune 50 and start crafting programs by and for entrepreneurs that consistent of technology, expertise, knowledge and capital and really serve it up through a series of global initiatives that run under my umbrella that fundamentally help entrepreneurs be successful in building their venture pes how does that then feedback into dell? >> we're r weir all about deal making. we're all about making big things happen. as a lifelong entrepreneur, i've reached a point in my career where we look to give back to our peer community. how can we help them be successful? where dell stands alone is very unique. in how much they have allowed me to leverage the to allow the entrepreneur become successful. i've taken it on as my personal goal, but now it's the goal of

the team that we intend to become the number one solution provider worldwide. >> why is this entrepreneur segment now so important to you and to dell? >> well, i think, you know, dell is a business, right? and we're all business owners. so at the end of the day, the reason business exist sess to make money. the thing that spratsdz those businesses, though, that are just out to make money from those that are really making a difference is we're really creating something that does, in fact, make a difference and it's good business. and so when when you see a company like dell going out and earning this for business owners worldwide, basically the betts we're taking is this. we're sitting back and we're saying, look, we're going to roll up our sleeves at dell and we see that it's going to be the business owneres and

entrepreneurs getting our global economy turned around. they're creating the jobs that are so badly needed. these are the guys that need help early on. and we're going to go ahead and put our resources to work. we're going to take on the risk associated with working with early stage companies and in doing that, in sitting at the table with them and leveraging the resources we have to bring to bear, we have the opportunity and potential to grow with them. >> well, india's economy is growing at its slowest pace in a decade. did you realize? government spending, inflation struggles and sluggish global demand kept gdp at 4.8%. that's slightly better than the last quarter, but it adds up to a fiscal rate which isn't close to the 9% rise we saw two years ago. this data makes the government's push for foreign investment all the mortgage urgent. the central bank, they've

already warned of limited room to ease. joining us from singapore is piquay bosu from maybank kim ang. indian growth rates very sluggish to what we've seen in the past. what's going on? and is this about to change at any point in the near future? >> i'm afraid it isn't about to change. at the moment, of course, there are some tailwinds that help india, the fact that oil prices are coming off, the fact that commodity prices are easing, as well, will help a little bit, as well.

domestic spending has been considerably weak and lost momentum over the course of the last few years. i don't see that reviving anytime soon. so there are the early elements of a very minor recovery. but the probably really is investment spending is really weak. investment spending remains extremely weak and the local companies really don't see any particular reason to go out and expand capacity just yet. given all the policy uncertainty, special on the fiscal front. how does foreign direct investment look, though? that's a crucial element also to supporting the economy.

>> foreign direct investment has done poorly. this government has now over the last eight months or so troyed to liberalize norms for foreign direct investment in a number of different sectors. that has brought in some interest. ikea is about to open operation necessary india. there are a few other examples of fairly big ticket investment that are beginning to come through. but, really, the story in india is that domestic companies are not investing very much and that is the key reason why the manufacturing sector is basically growing just 2% to 3% at the moment. and that really is the segment that is most weak. ironically, india unveiled a fairly attractive new policy about 18 months ago. it's one of india's best kept

secrets because there has been no response and during the 18 months since that policy was unveiled, manufacturing has decelerated sharply and every in knows have flowed, as well. so i think what needs to happen most likely is an early election so that we can get much more policy clarity that focuses on growth and less on populism. >> sir, thank you very much. piquay bosu, head of research and economics from may bank kim ang. i just want to mention to you that we're just getting some flashes and just listening to some sound live out of rome. we have the italy governor and an ecb policy, as well, member hinting at a rate cut to come

from the ecb. talks about how the ecb stands ready to intervene against on lower data, yields have not led to economy gains. we'll get some analysis on this just after the break. this is taking place here as we're live on air. before we get to that, the japanese government released a slew of relative ly economic daa today. >> hi, louisa. japan's core consumer price index fell for the fifth straight month in april dropping 6.4%. it shows the company is still affected by core inflation. core inflation roads 0. is% in may. this number is much stronger than economists' average forecast. in the meantime, industrial production rose for the fifth straight month. it beat expectations up 1.7%

from the me pro. production by transport equipmentmakers jumped almost 12% helped by the u.s. command for cars. job availability also improved to the best level since june 20308 and the jobless rate remained unchanged. although it's still far from aconceiving the inflation tafrth, the yen and the nikkei rose today pass market suggests that prime minister shinzo abe to lift japan out of deflation is paying off. back to you, louisa. >> thank you very much. china is releasing its official may pmi numbers on saturday. pmi data is released, as well.

taiwan, india and south korea all have pmi releases, as well. we're going to get comments immediately after the break. the comments look important. don't go away. lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving. see it in action at blackberry.com/z10

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. ♪

hi, everybody. welcome back. it's friday, i'm louisa bojesen. the swiss bank ubs is reportedly raising salaries of its investment bankers in order to entice them to stay. i hear ubs bankers clapping, carolin. >> yes, definitely. according to those reports, which are unconfirmed by ubs, it had no comment on this story. but according to those reports, the base salary for some of its investment bankers could rise by 9% for some of on them even 25%. so the 9% number, that really is the average. but it wouldn't be a big surprise because you can't do much on the bonus front, given the political opposition to bonuses and the clamp down. so the only flexible thing you have left is the base pay.

so this move isn't entirely unexpected. but it's interesting to put it into perspective. a survey this morning shows just over a third of workers in the city of london actually received a pay rise. compared to almost 47% in the year prior and the proportion of city workers who received a bonus crashed by 14%. so there r a few lucky ones out there at ubs at the moment. back over to you. >> carolin, thank you very much for that. basso gallo, we've been looking at the visco comments. they're super interesting. >> yeah. i think there's a broader message of a rate cut, which as we discussed will happen in our view between now and september. they also say the ecb will consider all measures, which means nonstandard measures outside the normal bank cuts and

then he talked about banks initially. some of the banks in italy are still weak, for example, monte paschi or other banks in our stress tests are still feared as the weakest banks in europe shortly followed by some of the mid sized banks. banks need more capital and that's why they're not lending. this capital process will last several years, but the government so far has done very little. it has not done what space has done to restructure its bad banks like with bankia and other banks. italy has done very much. >> it says the ecb is ready to intervene against on rates to consider all measure toes maintain credit conditions consistent with the monetary policy stance. so that's what you're saying indicates we could be looking at a rate cut sooner rather than later? >> i think it's -- i'm not sure it's going to be this month. i think it could be a little later, perhaps in september. >> yeah. >> but in the meantime, they

could ease collateral in abs. they could expand the amount of collateral across more loans, more types of loans, so more liquidity. and also look at other measures to loan more. >> he's suggesting a joint debt issuance on a trial basis. i'm wondering whether that means a eurozone bond. >> that's what it means in my view. it also means that the ecb by itself can do a limited amount of things. the ecb cannot take credit risks directly. at some point, it means the european investment bank or the eu, so all the governments to get together and do other things that are more about fiscal policy, like issuing euro bonds. so it's a mess eej like the vice president's message earlier this week. it's a message to governments to do reformes and do more as well as the ecb. >> thank you very much, alberto

gallo, the head of european macro research from rbs. we appreciate it. opec ministers have started their meeting. steve is in vienna still. steve. >> louisa, far be it from me to name drop, but i've just spoken to the an goalan, the iranny and the iraqi oil ministers. do you want to know what they had to do? you'll have to come back over the break. we discussed the impact of overproduction and u.s. shale. all of this and more after this very short break. ♪

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hi, everybody. welcome back. you're still watching "worldwide exchange." i'm louisa bojesen. these rain shower headlines from around the world. nigerian's oil minister telling cnbc he's greatly concerned about the rise of u.s. shale oil. new delhi has more reason to push on with its economic reforms. not another small victory for dish network as clearwire is postponing a shareholder vote on

sprint's offer that was postponed for today. and sony is reviewing proposed spin-off plans. but the group's c he o is telling investors he's confident he can turn the group around. >> we continue to work with the entertainment properties so that they can provide a lot of great content to support or electronics business. >> hi, everybody. welcome back. you are yachg "worldwide exchange" on cnbc. the comments that hit our wires here within the last 15 minutes or so ago are very, very important. beware that it looks like the ecb potentially could be moving towards a rate cut according to comments and some analysis that we were just talking about on those comments. the euro area inflation may

estimate also just hitting our wires. and i can tell you here that the eurozone may inflation data was estimated at 1.4% year on year. consensus was for 1.4% versus 1.2% we saw in april. coming in at 1.4%, bang in line with expectations. the employment data -- you have to pat your heads and rub your stomach sometimes here. employment data is still sitting tight and waiting for that to hit. but never these, what we've seen in the euro/dollar trade here within the last half hour or so, weakening on the back of the visco comments, an ecb member, the head of the central bank in italy, as well, indicating that they are looking at further measures from within the ecb. the eurozone april jobless rates

coming in at 12.2% versus 12.1% in march and that is a fresh high. so while we're dealing with an ongoing recovery in the u.s. by the looks of things, we're still looking at some weakening data here in the eurozone. just began to mention what we've heard out from visco, the italian central bank governor and policy member indicating that the ecb is ready to intervene once again on rates. they're saying that they consider all measures to maintain credit conditions that are consistent with the monetary policy stance. he talks about italian reforms and how they've slackened within the last year. they have to fix their new objectives quickly, he says, and he's urging a common eurozone budget suggesting a debt issuance basis on a trial basis which could mean some kind of a euro bond that brings that back to the forefront for banks.

now, we need to check in on markets in asia. chloe cho sends us this report from singapore. >> a lot of red arrows here in asia despite the positive handover from wall street. a modest rebound in japan with the nikkei gaining 1.4 % on month end and pension fund buying. little signs that there are beating deflation. plus a survey as weaker months ahead capped expectations of a stronger pick up as abe is set to unveil the third staunch of measures next week. remember, the release of the official chinese pmi number is out tomorrow on saturday after that huge setback from hsbc's flash pmi number a week ago. speculation is growing that the official number might be far below the key factor. obviously, quite a bit of

caution kicking in, shanghai down 75%. >> that's what took place overnight. u.s. futures indicating a slightly negative open in the u.s. we're still a couple of hours to go before the u.s. comes on to trade. here in europe, we've seen some leveling off. remember yesterday we closed slightly mixed on the markets with our main european markets closing in positive territory. today, this morning, we're seeing a little bit of selling there across the board now. just accelerating that selling bay tad here within the last half an hour or so. most of our main markets off by around a percentage point or so. and the bond markets, we saw some auction results yesterday which still prove that there is a willingness to buy debt in europe. and periphery europe, especially. jgb's bunch and treasuries all being bought up a little bit this morning while the ten-year italian paper is being sold. i want to draw your attention to the forex rates, as well, as we're seeing a bit of weakening in the eurozone.

following visco's comments, the governor of the italian central bank indicating that the ecb, and i quote here, that they are ready to intervene again on rates. they are considering all measures. keep your ear on the ground on that one and we'll keep updating you on what visco says throughout the program. commodities are an issue. opec meetings going on. we'll talk about that. spot gold is recovering a tad. 1415. we hit 1422 a while back. gold is higher somewhere in the region of 2.5% on the week. as mentioned, opec delegate ves started their meeting on the arrival in new delhi. many ministers are discussing their concerns about the impact of shale on supply. to shale or not to shale? >> i think to shale. i think it's a concern. i have a cop fegz to make to our

viewers. i've only spoke ton half of the opec minister these morning. i spoke to six senior xhin ter these morning as opposed to the full 12. i'll hold my hands up there. i haven't managed to speak to all 12 for you. i have spoken to the iranians, the iraqis and they seem relaxed about the second general post which is something where we understand there is a whole amount of on contention about. what seems clear at the moment is there is a rollover of current production at 30 million barrels a day. we all know they cheat and they've been cheating less recently than they have in the long earer term. they are overproducing in what is a weak command period at the moment. let's hear what the venezuelan oil minister has to say. >> the price of the market -- sector for everybody. the consensus of that. while the demand side, the

economical crisis in europe and the united states and put the demand at a dangerous sum always. we monitoring. we really have more participation for the demand. >> would you like to see a lower official production level for opec? lower than the 30 million barrels currently, or would you like to see more adherence to that level from members? >> we want to maintain the same level. and everybody compliant with this level agreement in the last two meetings of opec. >> do you think that going forward into late 2013 and early 2014, though, are real cuts in the official level might be necessary? >> we have to see. we have to see. today is all over and to shake the complaints of each country. >> you see that line about

compliance is really important. the opec 12 are producing between 30.5 and 31 million barrels a day depending on the daily shipments the.and that is important. because if you took that off the table and there was real compliance, then you would take a significant amount of oil off the table and ensure those $100 a barrel levels everyone seems to happy about. talking about being happy, talking about bobby mcfarn and don't worry be happy, mr. alnieni who is the kingmaker here because of the saudis has been producing 110.1 at their peak, as well, they think everything is hunky-dory at the moment. let's listen in to the most powerful man at opec. >> the international oil market is perhaps more reliants on asia and china demand. >> i am not concerned. did you hear me say i am concerned? >> you are not concerned about selling oil in china? >> i am not concerned about

anything. what about the competition from u.s. shale oil? i mean, i know that at the current levels, the world will take every barrel of oil that is offered. but are you worried about this at the end of 2013 and 2014? >> let me give you advice. take out the words worry. take out the words concern and the world will be in good shape. >> there you have it. don't worry, be happy. but not everybody is happy behind the scenes, as well. there is real concern that in the medium termout look, a as well, nonopec and u.s. shale is going to ee opec's lunch. it may be a cartel, but is it only a cartel in name? it only controls about 30% of oil production. my favorite minister here has been to be the nigerian oil minister and she laid it there. there are grave concerns not only for the global oil producers but also from africa

especially from u.s. shale. >> it is incredibly important i think for the balance of both supply and global security that we remember that africa does need to have its exports continuously going out, particularly to important export destinations such as the u.s. and there is a balance to be looked at not just for nigeria, but for africa as a whole. >> so what does opec need to do to address those supply and demand concerns? >> i think that in these meetings, to be honest, we will look at it from a wholistic point of view. and i don't think that in the very immediate future or in the short-term the shale oil or shale gas will overtly affect opec countries or opec production and their exports. but it is a great concern for us, even though we do respect the integrity of the u.s., of

course, to be self-sustainable in terms of oil and gas. however, we are, of course, concerned in the medium term. >> so far be it from me to hobnob, but i've met jason shenko from prestige economics. jason, lovely to see you. the accord coming out from a lot of ministers, it's only broke b slightly. should they be concerned? >> in the long early term, maybe. in the short-term, it's not a concern at all because right now global demand is more of an issue and the truth is, that's really their biggest concern. over time, if shale develops especially in other regions which will take a greater period of time, that becomes a concern. but the truth is, global demand, secular demand, rising demand in emerging markets is going to be very, very strong. we're going to need every barrel. >> jason, there is supply and demand dynamics in every

segment. why is supply in oil the only one that hasn't seen intense volatility in the last 12 months? gold, silver, everything had this sdmroegz, but oil has been steady as she goes. if we see a slight tweaking in that supply dynamic, that could lead to decent falls, couldn't it. >>. >> there are a couple of reasons why. i think if we look at different commodities -- because i also cover metals, as well -- we have had opec pulling in supply a little bit. adhere to go that $30 million a barrel a day target. you've had some supply constraint whereas in copper yb in aluminum, in nickel, you've seen inventory easy rise to the sky. >> do you want to talk about ventures in the states? do you want to talk about that latest cia data? we can do that, 59 days in the oecd, record levels of almost u.s. crude. >> but in addition to the inventory die familiarics, you've also seen a per capital

ya increase in demand across emerging markets for petroleum, for transmission fuels. and that's not changing. on the manufacturing side where those metals are more critical, you're looking at a different dynamic that's more affected by what's going on in the eurozone. >> charlotte? you're in charlotte? >> no, i'm in austin, texas. >> union he guys in texas, gasoline is 15 cents cheaper than it was a year ago. >> it is quite a bit cheaper than it was a year ago, but a lot of this has to do with refinery dynamics. inventories are very, very tight in the states. gasoline, distillates, they're all very tight right now and we saw really high prices earlier this year. >> so this oil price, brent crude price is going to stay around $ 00 a barrel, isn't it? >> that's what opec intends to do. the $100, $110 ring. for wti going to move closer to a hundred. >> wouldn't saudi be very

excited backside 85 a barrel? it would wipe out the cost of production from the shale guys, wouldn't it? >> not necessarily. there are some calculation that's make shale look quite cheap. >> really? those engineers cost $150,000 a year. but the marginal cost for shale, and part of the reason opec doesn't need to be as concerned about shale, is that the production climb curve is pretty steep. but you need to frack and frack and frack. again, if you're going to get shale production out. >> okay. we are so well underpinned here, i feel like we're back in the derivatives mode. what did b the up side? you see the demand dynamic is good enough to see an upside in price. >> absolutely. last year was a horrible year for china and yet you still saw growth. this year is a tepid year for global growth. all the provisions have been revised lower from the imf to

the oecd. you're looking at slower growth this year. what happens if we have a good growth year? we're looking at right now the $100, $110 a barrel range. what happened when europe actually grows? what happened when china sees -- >> jason, very nice to see you. >> good to see you, too. louisa, what more could i want for? a lovely sunny day here in vienna. life don't get no better. >> i can only imagine. i have a personal question for one though, steve. you're in vienna. are you tipping them well when you go out to all the fancy restaurants? >> i've seen this story. i am the worst tipper. i think the german res pretty good tippers from that survey. you know what? very hard to expense tips, lou. that's frob. >> but wa about the poor people slaving away at your feet? i have no coffee, but with no shugger and extra spoon. >> louisa, this is vienna. there aren't any poor people in

vienna. apparently you referenced the story, germans tip the most when they're traveling. 69% of germans tip, only 39% of brits. i think you need to do yours to give your numbers up, steve. >> i can give you some tips. don't trade the oil. there you go. >> we'll see you later on. what's your view on tipping? a whole slew of you have written in. is it a good thing or isn't it a good thing to tip? do you feel pressured? find us on "worldwide exchange," by e-mail at worldwide@cnbc.com. tweet us @cnbcwex. still to come on the show, sources telling cnbc any review of sony's infrastructure won't happen until a new board is elected. stay tuned for more on the

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hi, welcome back. i'm louisa bojesen. your headlines, oil minuters tlg cnbc the rise of shale production is not likely to affect opec production, but it still is a grave concern.

pressure on india as economic expansion slows to a level not seen in a decade. and cnbc learns that sony has hired investment banks to review proposed spinoff plans. speaking of sony, sony's review of proposal toes spin off a chunk of its entertainment business won't start until a new board is elect postponed david faber has learned that sony has hired morgan stanley and citi to review the plans. meanwhile, sony's ceo says that it's too early to speculation about what the board will decide. >> you want to make sure that we have a thorough discussion of the merits of the proposal before we come to any exclusion. so it's premature at this point in time to speculate one way or the other. but it's most important that, again, the board takes a look at this proposal seriously.

>> still to come here on the show, hurricane season officially beginning this weekend. how do the big oil companies stay ahead of the storms and keep their employees out of harm's way? we get an inside look at chevron's massive command center in a moment. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

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and don't get heartburn in the first place! lets you talk face-to-face and share whatever's on your screen. blackberry z10 with bbm video. built to keep you moving. see it in action at blackberry.com/z10 welcome back. the 2013 hurricane season officially begins tomorrow.

forecasters are predicting an above normal season with 13 to 20 named storms and up to six of those could be major hurricanes. with that in mind, how does an oil giant like chevron, how do they stay ahead of the weather? cnbc's scott cohen gives us an exclusive look inside the company's command center. >> with so much equipment and so many people offshore, just keeping track of it all is hard on a good day, let alone with a storm approaching. these monitors show everything and everyone. >> the folks offshore have that latitude to start moving people. >> chevron vice president warner williams says this facility is as a result of a previous lesson of previous storms. communication is key. >> having all that done here from one location, we've been able to save quite a bit of time and money and effort around that. >> another key, location. the command center opened in 2008 is in covington, louisiana,

a good hundred miles inland north of lake pontchartrain. that's because the old facility in downtown new orleans flooded during hurricane katrina. >> being here in this location, being in the building that's highly technical has been a big benefit. >> it's quiet now, but in a storm, this place is jumping, cranking out constant information for teams of managers who are making decisions by the minute, affecting workers offshore, onshore and in the air. >> the whole process isareful ly choreographed. but it's one more aspect of the whole operation that they have to be concerned about. once again, it's all about communication. in another part of the command center, they can operate some of the offshore facilities by remote control. >> from this room, they can monitor and control every is chevron asset in the gulf of mexico. during a storm, the evacuators will be brought in here to make

sure their facilities weather the storm. mike casey is in charge of operations. >> we can talk to every platform we've got, whether it be a helicopter, a boat. >> important because after the storm, they have to get everything and everyone back offshore as quickly and efficiently as they brought them in. scott cohen, cnbc, covington, louisiana. >> well, still to come here on the show, one din with mario draghi and our next guest says he's increasingly positive about the future for european equities. stay tuned to hear why u.s. futures indicating a negative market open across the board stateside. dow is being called lower by some 85 points or so.

nigeria's oil minister tells cnbc she's gravely concerned about the rise of shale oil at op opec's meeting in vienna. u.s. futures pointing lower, suggesting that markets that they'll close may on a down beat note. the dow, though, still racking in its sixth month of gains. and india clocking up its rate in a decade. and notch another victory for dish network as clearwire

postponing shareholders's vote on sprint's buyout offer that was set for today. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> welcome back, everyone. we are called lower across the board stateside. moderately lower. we've just got the dow called off the most at the moment. but we're looking at a slightly negative open. here in europe, we're holing he relatively stable as drops of 1% across the board. it does seem we saw an increase of selling here coming through in the last hour or so. we've been looking very closely at the italian central bank governor and the ecb policy member indicating that the ecb is ready to intervene again on rates. they're looking at all measures to maintain credit conditions consistent with their monetary policy stance. beware of that.

now, of course, it is the end of the month, it's not just the end of the week. we need to check in on various asset classes. gloes gold, currently lower on trade right now. 1422 at one point within the last 12, 24r hours. since the beginning of may, we've seen it dropping some 4.5% or so. i was noting, though, that it's higher by some 2.5% this week. so this week it has seen a substantial recovery, but since the beginning of the month, it's off by almost 5%. the nikkei for may, well, here we've seen a big correction over the last two weeks, especially. relatively flat over the month. flat to lower in today's session, the nikkei recovering some of the steep losses that we saw in from yesterday's trade. higher now by almost 1.5% on the close in japan. european markets for the month of may, though, still continuing their rally and putting on, what, 2.5% for the ftse, the xetra dax up by more than 5% and

the cac 40 higher by some 2.5%, as well. now, our next guest says that after attending a dinner with none other than ecb president mario draghi, he's increasingly positive about the future for european equities. it comes with a caveat over concerned over market liquidity remain. normal villeman joins us now. norman, keeping in mind the comments that we've just had out within this last hour from ignacio, the italian central bank governor, indicating that the ecb still is ready to intervene once again on rates if need be, norman. >> yeah, well, i think that has a lot to do with our more positive outlook for europe going forward. what we have now is we have policymakers in europe, whether it's the ecb or the european union itself now becoming more supportive of a framework that might allow europe to recover going forward.

and we think a lot of those decisions and a lot of those announcements should come here in the month of june. it would be a good catalyst for european equities going into the summer. >> how much of a catalyst, though? how much percentage gain would you anticipate? >> well, look, i mean, if we're honest about it, we've seen a pretty good gain in european equities. year-to-date and also since november. another 5% or 10% is available to us. if we get more policy stimulus out of the ecb, if we get a credit loosening, if you like, between the ecb as well as the fiscal policymakers in europe. i think those two catalysts would be helpful in getting european growth and european inflation back up which is going to be important going forward. >> so you wouldn't agree with those would say that the fed and the ecb, that they've just destroyed what some would argue would be a real price discovery in the markets at the moment? >> it's not so much that they've

destroyed it. i think what they have recognized is that they're going to need to be active in the markets in order to get -- or in order to prevent deflation from setting in. and let's be clear, i think the ecb and my dinner that i attended with mario draghi, he made it clear that the ecb needs to defend their 2% inflation target in both directions. i think that's quite a big statement. i think while a lot of people are talking about tapering in the u.s. because the growth numbers are quite good, we expect increasingly over the next few months, people will recognize that the core pce number, the fed's preferred measure of inflation out today, that number at 1% is almost alarmingly low. so this issue of inflation will be a big deal. low inflation is not going to be a good thing as we've seen in japan. >> no. and inflation does continue to worry a lot of people. do you think that we're seeing the formation of asset bubbles in certain asset markets in the

moment? >> well, we are starting to see prices move quite hard. we've seen u.s. property price res up 10% year on year. we've seen spreads contract. i think about a month ago, you've seen ben bernanke outlining that that is something they're watching, but at this point, it doesn't warrant a lot of concern. we tend to share that view, but i do think at some point when valuations start to become very rich investors are going to have to take heed. we don't think we're at that point yet. >> norman, we've been looking at a study by trip adviser talking about how much the various cultures tip when they travel. germans, 69 the% of german he they tip. the french, 39% of the french, they tip. americans, 57% of americans tip when they're on vacation. do you tip, norman? and how much do you typically tip if you do? >> i try and -- i realize a lot of these guys who are working at

the restaurants and hotels that i attend, i do tip because it's a big part of what they earn. so i tip and i try and tip very well for good service. >> very good. very good, norman. brought up well. norman villeman. just to mention, you've been writing in giving us your views on tipping. an e-mailer writes in and says my wife and i stopped eating at a certain restaurant because of their automatically adding on a tip to the bill. even if the waiter was good or bad, you always pay. we oent tip for good service and now we eat somewhere else. derek writes in and says the worst tip comes to improve performance. therefore, if someone merely does this job, they don't deserve a tip. however, if they deliver improved prrchlt, they should be rewarded accordingly. how about you, do you tip? how much do you tip? is it a good thing? is it a bad thing? do you remove those 12.5% that

sometimes are automatically put on. let us know. @cnbcwex or e-mail us, as well. we'll float all those addresses for you. coming, ag lafley has just returned to the helmet of procter & gamble. i want to make things more secure.

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yes, welcome back. i'm louisa bojesen. utah with the old, in with the new. rocketer & gamble is now set for another big management reshuf e reshuffle. bertha couples joins us from cnbc headquarters with more. it doesn't take them long, bertha. >> good morning, louisa. having a little bit of trouble with my ear piece this morning, trouble hearing you. procter & gamble is reportedly working to regroup its product and brands into four sectors. "the wall street journal" reports the units will be led by executives who would report directly to ceoa.j. lafley who returned to the company last week. those executives would be most likely to succeed lafley, who is expected to step aside in two to three years once again. p&g currently organizes its brands into two global business units, household products and

beauty that don't have individual leaders. the journal says there are likely to be more than four candidates now vying for the new role. among them, david day lore, president of p&g's home care business and deborah henretta, president of beauty brands. also in the running is melanie healy, p&g's north american operations. the vice chairman are not in the running to head these new sectors. those vice chairmen are werner geissler and dimitry panayatopoulost. pardon the mispronunciation there. lastly, inheriting them from former ceo bob mcdonald who exited the company last week. p&g in germany is trading a little bit to the downside there, it looks like. it has been up about 3.5% over the last three months.

louisa. >> bertha, thank you very much. have a good weekend. we need to take a look at some of today's other top stories. boeing is celebrating a mammoth new order tui travel. tui says that all the planes involved in the deal are 737.max aircrafts and that they're scheduled for delivery between 2018 and 2023. the size of the deal means that shareholder approval is needed. and you're looking at tui travel a bit lower in trade today. clearwire, they're postponing today's shareholder vote on print's offer to buy the wireless network provider that it doesn't already own. clearwire says a special board committee will review bids from dish network. dish is offering $4.40 per share in cash valuing the company at $6.9 billion, roughly 30% more

than sprint's offer. clearwire, dish and sprint all with putting on gains in germany. now niemen marcus is rejecting a merger proposal by saks. "the wall street journal" says neiman turned down the proposal earlier this month due to the terms and the complexity of the deal. although it's possible they could review a merger in the future. saks is lower by almost 257% in german trade. and the longest strike in u.s. history is over. employees at chicago's congress hotel, they received word tr from their union thursday morning that the strike, which lasted almost ten years, has ended. workers, they regularly tip the picket lines outside the hotel's front doors since 200. they claim that the hotel

management they cut their wageses, they threw out health care contributions and demanded the right to subcontract jobs out to minimum wage workers. that is one long strike. time to put your thinking caps on. how do you spell winner? that's 13-year-old avan mahakali, the whipper of this year's u.s. spelling bill. his final word is yidish. the winner outlasted 11 other finalist necessary a grueling 2 1/2 hours of competition thursday night. he came up just short in 2011 and 2012 finishing third. avan is the sixth straight indian american winner. for his efforts, he takes home $30,000 in cash and prizes and a huge trophy, as well. i hate it when you're trying to spell something that's a super

common word and you simply can't remember it. nigeria's oil minister tells cnbc that the rise of u.s. shale is not likely to affect opec production but still is a grave concern. u.s. futures suggest a sharply lower open with markets looking likely to close out may on a down beat note. and pressure on india to speed up reform as economic expansion slows to a level not seen in a decade. how do you spec oh beck? opec ministers have started their meeting in vienna. steve is there. >> louisa, we'll hear more after the break, but will the fractious environment break out? we'll discuss that after a very short break live from london and vienna. e new blackberry z10 lets you jump backwards and forwards in time to capture the perfect shot. blackberry z10 with time shift. built to keep you moving.

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welcome back, you're still watching "worldwide exchange." i'm louisa bojesen. it's friday. april personal income and spending is out at 8:30 eastern. income is forecast to rise by 0.1%. spending is expected to remain unchanged. at 9:55 we go the final reading on the may consumer sentiment and five minutes later, the may chicago pmi will be released. u.s. futures are pointing to a slight negative open in the u.s. still a couple of hours away. but that's what we're looking at right now. how do you make money in these markets? here is what some of the experts they've been telling us earlier this morning. >> the gain is still very much about relative value trades rather than directional trades. the u.s. bond market looks the best value relative to its international g-7 eurozone peer

group. >> it continues to do what it's meant to do. the enemy of gold right now is the u.s. dollar as the u.s. dollar continues to strengthen, that's going to be a real headwind for gold. we're now down at levels, the recent low that's we've seen, 1322 announced a couple of weeks ago. that's the price that means that gold companies don't make any money. they believe half. >> on bonds, be very wary of high quality long-term bonds. because rates are backing up. i think the economic recovery will force it up. i think the tapering will. but i think the fed will be declaring victory. i don't see that as a big disrupter of the market. but i do think we should be very wary of long-term bonds. >> well, todd horwitz is the author and founder of average joe options.com.

he joins me now. do you think next month will be a reversal of what we see in may? >> good morning, louisa. you know, i think it's going to be the sell equity part. i don't know if we're going to see the continue purchasing of bonds. i think that you're going to see the bond market, the fed is still participating, so you can expect the bounces we're getting even this morning in the treasuries. as far as the stock market, i think that the market has put in a good, solid top up there around 1670 basis the s&p. and i think that you look for every opportunity to now sell into this market because i think now we're in the start, in the early stages of a correction. >> why? what makes you think that? >> well, if you go back to last wednesday, we had a key reversal technically in the market, opened on our highs, made new life as the contract highs, closed on our lows of the day and took out the tuesday's low. this past tuesday after the holiday, we made a nice double top. the markets seem to be under

pressure and the monopoly money gain of the fed is now wearing thin and there's a lot of -- you know, we've had three false starts in the last three weeks about, you know, the governors switching from dove toes hawks and as they start to indicate that they may be pulling out, it's creating some more pressure on the markets. so you're starting to see throughout a lot of the safety stocks and throughout a lot of markets that we're starting to see a lot of weakness here. we're still near the highs, but you can see the overall trend and the underlying technical indicators of the market are starting to weaken here. >> todd, where do you find the most value at the moment, briefly? >> well, you know, i'm looking at value from the short side of the market. i'm telling everybody that i do business with is that this is no time for new money. i am not putting any money into the long side of the market. any money i put in will go to the short side of the market. >> todd, have a fantastic weekend. the impact of the u.s. shale

boom is topping the agenda at the opec meeting in vienna. steel is there. people are writing in on the tipping comments, as well, steve. >> well, the tipping comments, i just don't have that kind of money. perhaps it's the rich europeans we need to speak to. the germans, we hear they don't spend and they're saving 11% of their money. i'm in vienna looking at this oh pk meeting and it appears on the surface that all things are very much in accord. but we know actually in reality there are question marks about quo quotas, question marks about who is going to be the next secretary general. question marks about the 30 million barrels a day which there are questions about. and it's about those external threats that i have the pleasure to speak to the nigerian oil minister. >> it is incredibly important i think for the balance of both

supply and global security that we remember that africa does need to have its exports continuously going out, particularly to important export destinations such as the u.s. and there is a balance to be looked at not just for nigeria, but for africa as a whole. >> what does opec need to do to address those supply and demand concerns? i think that in these meetings, to be honest, we will look at it from a wholistic point of view. and i don't think that in the very immediate future on the short term the shale oil or shale gas will overtly affect opec countries or opec production and their exports. but it is of grave concern for us, even though we do respect the integrity of the u.s., of course, to be self-sustainable in terms of oil and gas.

however, we are, of course, concerned in the medium term. >> and i think that was absolutely key, louisa. no bones about it, a grave concern over the longer term. you don't hear in many opec ministers saying they have grave concerns about shale. and, obviously, if the supply/demand imbalance gets out of kilter too much, we could see what we've seen in other commodities, such as copper, gold, elsewhere across the board was well. when you hear grave concern from one minister, it certainly raises the alarm bells. back to you. >> steve, thank you for that. the oil side. we were talking about tipping earlier, steve. and people have been writing in. worse than double tipping. you get the bill and it says do you want to add service when 12.5% to 50% already have been added. you said, steve, you're maybe not the biggest tipper on earth. some say only 50% of americans

try not tipping in america and be prepared to be chased down the street at 20% or diplomatic incidents. >> i'll tell you what we'll do, louisa, when those waiters start tipping me 12.5% for what i've done on air, i'll start tipping them 12.5% for putting a glass on my table. how about that? >> i think many would be very happy to hear that suggestion, steve. i'm glad you have security right there in the background, though. steve, thank you very much. steve sedgwick joining us out of vienna. more of you having written in if you can't tip, you needent go out. joe says i'm an american and our tipping is based on -- so i tip generously. tipping is not a city in china, i am told. most of you say i do tip. i dislike restaurants who make you automatically pay tips when their employees aren't paid a

decent wage to start with. thank you for watching today. have a fantastic weekend. seal you tomorrow.

. morning. a final trading session of the month of may. the dow, s&p and pass dak are all on record runs. it's friday, may 31st, 2013. "squawk box" dwbegins right now. >> your honor this song, but apparently joe does. >> no. >> making up his own lyrics for

this. good morning, everybody, and welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we start with the markets this morning. month of may, here st how the major average ves performed. the dow is up more than 3%. s&p is up nearly 4% and the nasdaq almost 5% as the tech heavy index is on pace for its best month since february last year. the dow by the way is on track to close higher for the sixth month in a row. the s&p and nasdaq are set for their second winning streak since 2009. a lot of records and here is another one for you. this will be the first time that the three major u.s. averages are up in each of the first five months of the year since the mid 1990s. as for this morning, there are some red arrows this morning. if you take a look at the futures pictures right now, the dow futures are down by almost 90 points below fair value. s&p futures are off by about 11 points. in europe this morning, you are continuing to see some similar moves there, as well. right annoy, the cac is down by 1.25%. drops of about 1 is%