hello. you're watching "worldwide exchange." i'm ross westgate. nyse euroneck says trading of bonds should resume any moment now. they've had a technical problem that prevents them from taking orders from all its members. in our other headlines, decision day for the ecb. mario draghi is not expected to fire a big bazooka. could he field questions about mishandling the imf bailout after admitting to major

mistakes? britain is mervyn king's final bank call. and we head out for a first on interview with jeffrey catsenberg. we'll find out why the hollywood mogul thinks moving at a snail's pace is a pretty good thing. display you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. warm welcome to your start of the day. we've had an hour's delay for the opening of the nyse euroneck in europe. they've assured us things are going to get smoothed out this morning. i think we're still waiting for that effectively to happen. are we just starting to get some

trade through? we'll keep our eyes on that. we have now resumed, as well. let's show you where else we stand with investing in european markets, as well. the ftse was down over 2% yesterday. we've had barclay's out heavy on the selling. ibex up 0. 5%. there's plenty going on in terms of event risk today. not least of which the bank of england and the ecb. it's releasing its forecast for inflation for the year. they're pretty skeptical of any moves to bring the deposit rate below zero. geoff joins us with his own thoughts. geoff, plenty of discussion as you know about your trip around eastern europe. what's the discussion centered

around today? >> well, you know, there's been a lot of back pedalling since that meeting. on a couple of fronts, to be honest. first, we had a number of other council members who appeared to contradict mr. draghi's comments that they were looking at the technical fees nlt of a negative dmoft rate. then we had that other story running alongside about funding the small and medium sized enterprises through some broader asset backed securitization program. again, another absolute of council members who came out after that and said, well, is that such a good idea? do we really want to take the pressure off of government to continue the reform process? so that brings us to frankfurt, rather pleasant day here in frankfurt outside the ecb headquarters and the market consensus appears to be that there will be no change. and the reason there will be no change in the rate this time around or much movement is

because there's been a change in the key numbers. we know inflation is coming down. we know the gdp figures have been disappointing. but some of the pmis are looking perkier and some of the figures for may just give mr. draghi a breathing spis here. put it altogether, we won't get a change, but inaction could mean firmness and possibly weaker jobs numbers tomorrow out of the states. while here in frankfurt, we caught up with the afd, this party that has emerged in germany and is opposed to eurozone membership for the country. let's listen in to roland clause, a spokesperson for the party. >> the euro was explained to be

some kind of a peace projects. you about it's just the opposite. it is in danger of tearing apart the countries within the eurozone. >> roland klaus was a cnbc reporter many moons ago, ross, and you and i used to have conversations with him on german policy and what the german government was up to. he's moved on, he's pursuing a political career and he speaks for the afd. they at the moment are a relatively small party. but depending on the direction of travel for this eurozone economy, they could potentially become more significant as we run up to this september election, ross. >> and how much play is this imf report now getting? and actually that they went against three corporals of the

imf on decision making? >> yeah. it does seem as though there's a little -- is there anybody out there in the markets would doubted some of the credibility of the statements that we were getting about the robustness or otherwise of greek recovery program? my read on this is the imf is almost slapping itself on the hands for extending the support that it did because that was already in breach of some of the imf's own criteria for what would trigger imf aid. so this one looks to be a bit of a storm in the teacup of the imf's own making, but it obviously won't change the minds of those who already think that much of the policy direction that's been taken on the eurozone has been wrong in the first place. >> yeah. and you just talked about, you

know, this pause that the ecb have got. and it is worth pointing out that activity indicators are still -- although they're better are still point to go contraction and gdp. we've got labor market indicators showing very little signs of improvement. money and credit growth remains weak. so one wonders if the trends at ecb will still be -- and in whatever form that may take. >> yeah. what you've got is a staff report at this meeting. even the ecb today is likely to acknowledge that the direction of travel is uncomfortable, that the narrative is still one of weak bing economic growth in the eurozone.

they would also argue they've done a lot to try to stimulate growth. we don't need to move every month. the market understands where we're positioned. we are not going to stay here today that there's going to be any further tightening. we're not going to say here today that there will be any further loosening. but it's very easy, the starts that we have right now. let's wait and see what the eurozone economy does through the rest of the summer. draghi has penciled in himself a recovery in growth prospects for the latter part of the year. they want to abide their time on this story. as we know, there is a huge amount we can do from here, anyway. would another 25 basis points really move the needle, ross? back to you. >> geoff is with us for the next four hours as we work our way towards the rate special today. we have live coverage of the bank of england and ecb. the bank of england makes its decision at 12:00 london time,

and the show is from 11:00 to 2:00 cet. it will be 11:00 to 1:00 blond london time. and the ecb is at 1:45 cet. now, uk new car registrations are up 9%. they are up in the year-to-date period 9.3%. again, they were down nearly 8% in germany, as well. staying in germany, the chancellor angela merkel said with the world of the general opinions that germans are more

pessimistic than their neighbors, happiness experts have offered merkel tips on how to cheer up her human relationshipes and mental health. we want to know what is your recipe for happiness? @cnbcwex or direct to me @rosswestgate. e-mail us worldwide@cnbc.com. mervyn king is taking a bow at his last central bank meeting. still to come, we'll have a look at why normal fall wants to change the way banks do business. and the world's biggest hotel players are scrambling to expand across southeast asia. we'll head back to myanmar and see for an interview with simon cooper at 10:20 cet.

dreamworks is teaming up with chevrolet brands. jeffrey kaszenberg will join us from chang du in around 30 minutes. and from the big screen for the board room, we'll have a look four years after bankruptcy. has the carmaker putting down more? right now, it's time to tell you what's happening with global asset prices. chloe kicks off our global markets report. hi, chloe. >> hi, ross. take a look at how the asian session fared. certainly a lot of red across the board here. a couple of markets were shot for holidays, korea and indonesia. once again, a very volatile session in japan, closed below the 13,000 handle for the first time in two months.

it is now 150 points away from bear market territory. certainly a lot of concern. remember, the bank of japan is going to meet next monday. there seems to be a lot of speculation that the boj is probably going to upgrade its economic assessment. there's speculation that maybe the boj might offer two-year fixed rate market operations. that will be the first time ever beyond its current one year. the idea is make sure the rates at the longer end is down. we did see a steepening of the bond yield. there was a bond auction today. there was a lot of focus on this 30-year debt auction. take a look at the losses piling through in greater china. hong kong down six in a row. shanghai down about six in a row, as well. we have had weekend data coming out of china. it looks like investors all over

asia are heading for the access. back to you. let's show you where we stand right now in europe. weighted to the outside 5 to 4 vapsers versus decliners. the ftse 6/, 424 and fairly flat. xetra dax up 0.1%. ibex up 0.7%. the cac 40 up 0.3%. the aex up 0.3%, as well. bel 20 up 0.25%. keep an eye on the markets as we wait for the ecb and the bank of england rate decision. we don't expect anything out of the bank of england. we had a trifecta of really good

numbers yesterday which is now point towards second quarter growth around about 0.5%. which would be a pick up of course from the first quarter. gilt back below the 2% mark. ten-year eye tall yap yields with nudging higher, 4.16%, as well been keeping your eye owes spain, as well. we've got auctions 2, 3, 10 through the course of the week. ten-year spanish yields at the moment have nudged up, nearly up 4.5%, as well. very volatile session. we've traded between 9886, 9947. currently at 99.27 on the dollar/yen. aussie dollar, 0.9493. it follows that weaker print of gdp yesterday. 0.6% versus expectations of 0.8%. that's continue to go weigh on the aussie dollar.

sterling/greenback, 1.5438. there is expectation that when mr. carney comes in and takes over, that there will be a loosening of policy. but he only has one vote versus the other eight on the committee. so if the data comes, mr. carney won't shift from the dial. still to come, what are businesses concerned about in china? eunice is at the fortune global forum. and after a series of bold, political and economic reforms, is myanmar ready for some prime time? speaking first to cnbc, mario says yes. stay tuned. 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,

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hundreds of business leaders are in chang du china today for the global forum. eunice has been talking to them about challenges of doing business. hi, eunice. >> hi, ross. heavy hitters, as you just mentioned from all over the world in the corporate world are here in chunk in chengdu.

we're seeing hundreds of people are here both on the government level as well as business leaders and they're discussing a range of issues. one of the very important challenges ahead is that of security. that issue is also on the agenda for the upcoming meeting between president obama as well as susan king. >> on the cyber security issue, it's a serious problem. and we are trying to focus it just on one thing. the theft of intellectual property and knowledge from american companies directly through cyber sets. and i can assure you it's going to be a major part of the discussion in california and everybody knows it has to be fixed and improved. >> and that meeting is between the two presidents of the united states and china will be taking place in california. meanwhile, here, this event is happening in chengdu which is a city in the western part of the

country. and a lot of people say the reason why the event is taking place here is because it's a reflection of the push of the chinese government to try to emphasis and build out some of the cities here. and one -- that is taking full advantage of that is starwood hotel. >> the urbanization that we're talking about here has been taking place over the course of a generation. in the mid 80s, 20% of china was urbanized. the massive change that we're seeing is really just the start of was going to be happening in the next 10 or 20 years. we think it's very important to get hotels and markets as things are getting built. it's much more difficult to do that once those markets have been established. >> ross, starwood hotels is making a very aggressive push here in china. they say they're going to be opening one hotel every 20 days. that's how aggressively they're moving into this market. >> that's quite a rate, isn't it? that's a lot of room.

eunice, thanks very much, indeed, for that. we'll have more later in the show. we'll find out why chevrolet is looking to take a leading role in a blockbuster. myanmar is opening up for business, as well. as the country builds international airports, hotel chains are now planning to expand and invest. joining us is simon cooper, president and md for asia pacif pacific. good to speak to you. what is the opportunity in myanmar? >> this is certainly ground bragging in myanmar, as you can imagine. it's probably been 18 months

since clearly the political change that you were talking about. really, we're here with the world economic forum. including chengdid you where you just had your report from, we'll be opening there in about three months. >> are you going to open a hotel? are you going to open chains in myanmar or not? >> we certainly plan the open hotel necessary myanmar. we are in negotiation with about five partners at the present time. it's about finding the right location with the right partner and putting one of our brands on it. >> would the model be different? normally, what most hotel chains do is there will be a real estate company that owns the hotel.

>> we might. a good example would be india. we're an investor in the growth of that brand. it depends on whether the partner is looking for us as a financial partner or purely as an operating partner. typically, we're an operator and a brander. >> so as you you expand into asia, starwood is opening up, you might have heard that, a hotel every 20 days. the scale seems to me extraordinary. what sort of pace can you go at? >> you can actually go at a very robust pace. but the tradeoff is always quantity versus quality. if i was talking about china and marriott international, i would point to the fact that in the major cities where the full service hotels are, where the

highest average rates are and most of the global travel in both city webs marriott, we had the largest portfolio of any of our competitors. >> how much do you have to tailor your brand, your service for each individual country? >> quite a bit. there's a high expectation of service in asia in general. if you take our courtyard brand in europe or america, it's very different when you get to china. so a moderately positioned hotel in china, they expect to have restaurants, they expect to have a club lounge, they expect to have a bathrobe and slippers. these are things that you tailor. >> and as you can see, what's the biggest risk that you're trying to miss against?

>> i think one of the biggest risks is reputational. it's not unlike foreign companies in england or foreign companies in the united states. so reputational risk, especially in a fast-growing market where corruption can easily be quite deeply rooted. so i think if there was one risk that i spend a lot of my time on is trying ensure that we avoid any risk to our global reputation. >> all right. good to talk to you today. good to speak to you. stay tuned. plenty more coverage from the world economic forum. tomorrow we'll bring you an exclusive interview with the president of myanmar. we've had a delay today on the nyse euronext in europe. this is where we stand in and

out, up 0.25% for the cac 40, aex and the bel 20. still to come on the show, as mer videotape king bids farewell to the bank of england, we'll look at his lasting legacy. make sure you tune into "squawk box" tomorrow. we'll bring you an exclusive interview with poland's prime minister. "worldwide exchange" continues in just a few moments. [ male announcer ] ah... retirement. sit back, relax, pull out the paper and what? another article that says investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! seriously? seriously. you don't believe it? search it. "401(k) hidden fees." then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees and all of them offer low cost investments. why? because we're not your typical wall street firm that's why. so you keep more of your money. e-trade. less for us. more for you.

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european stocks higher after the euronext delays trading for an hour because of technical problems. mario draghi could fill in questions about the mishandling of the bailout after the imf admits to marriage mistakes. it's mervyn king's curtain call. and we'll be in chengdu for a first on cnbc interview with jeffrey katzenberg. find out why he thinks moving at a snail's pace is a pretty good thing. that interview in the next ten minutes.

european stocks today are pretty flat. we have that delay. up 0.25%. the ftse down over 2% yesterday despite that. interesting to point out, credit suisse is still suggesting they'll hit 7,800 by the end of -- the end of the year, which is quite a ways from 6,400. teach-year bund yield, 1.5%, as well, and the ten-year 2.08%. yesterday, the dow down nearly 2% in the last two sessions. if we have another loss today,

it will be the first triple day loss of the year. volatility for the dollar/yen, 9913 is where we stand. euro/dollar, steady just above 1.31. the pounds calling higher, getting back up towards the 1.55 mark. and the pound will be very interested in what happens with the bank of england today. it is mervyn king's final mpc meeting after ten years at the helm of the central bank. in a forward to the report, he says there are good reasons to suppose a general recovery is under way. he pays tribute to their group. >> mervyn king has spent more than half of his professional life at the bank of england. he started as a nonexecutive director in 1990 and was appointed governor 13 years later in 2003.

but it will be his role in the financial crisis for which he'll be best remembered. he claims the steps he took in conjunction with the crisis prevented a great depression. it slashed interest rates 4.5% between november october 2008 and november 2009. and it injected far into its quantitative easing program. >> claim claimed that this prints the world on a more serious issues on this case. but the depth of the recession has turned out to be deeper than we thought at our last report.

that's why we've expanded the scale of the program. >> he has been criticized for his failure to stick to the boe's 2% inflation target with price rises coming in above that level every month for the last four years. he put that down for factors beyond his control. and insists it does nothing to dent the bank's credibility. he's been an unapoll getting critic of the banks sector's role in the crisis, a start that many in the city say has gone too far, even if it does chime with public sentiment. >> to paraphrase a great wartime leader, never in the field of financial endeavorer has so much been owed to so many with so much money and so far with little reform. >> but the reform did come for the banking sector and the regulator. the uk government shut down the official services authority

handing key power to a beefed up unit of the boe. the so-called super cop has the power to break up banks. those are changes that king has long called for and could well be his most significant lasting legacy. >> joining us for more is abraham. also with us on settle, lord john mcfall. i would have seen in that clip there asking questions. come to you in a second, john. first of all, what is your assessment of mr. king's legacy? >> i think everyone would agree that king's legacy is a bit mixed. as you heard from charles goodcart earlier this morning, one of the key things is inflation targeting. everyone would agree that king was a pioneer of that. and although every central bankers now appears to that, really, the uk was one of the early taker offers of that policy. >> and the first to drop here. >> well, actually, flexibility.

we're talking about flexibility. they're still targeting, we're just flexible about it. but there are negatives. people criticized him for did he shift the bank of england's monetary policy, did he miss the housing bubble? was his treatment of northern rocky appropriate? was he too reluctant to offer funding blinds to those banks when they need them. >> i think it's two levels. first of all, taken an end from 2001. and i think all this, it's not the financial architecture is to

blame. what happens in the situation is the institution talk amongst each other. mervyn king was very much focused on monetary policy. >> i don't think it was. i think if the people have been speaking to each other, in a sense was if there was overlap between the institutions, then we would have settled the issue. we've basically gone from a tripod system to a squad system and that has unique memorandums of understanding, the need for engagement between people is even greater and there could be more. >> you don't agree with the spc? >> well, i agree with that. but my main point is that it's not the architecture that's going to engage things.

>> isn't that the point about the old bank of england models? originally, the bank of england governor would have had lots of lunches with -- he would have had lots of contact with all the heads of the banks and would have known exactly what was going on, wouldn't he? he would have been one of them. >> maybe things are better. >> because we had the bcci and other crisis. so it happened then, as well. a lot of the problems could be solved and the institution is all about business on the other institutions. >> do you think it's a kind of rural based type of regulation that tripped us up? do you think the move, the need for prudential regulation that the bank of england is pushing

for is a better approach, is having prudential regulation under the -- well, some people put it down to big bang and american culture put to an end. and i think we've got to move away to that. one of the things i like is that the judgment based element to that. some people got a bit frightened of that. and i have worked for 25 years with the cleverist people in the kingdom and i've seen the most gigantic messups. you have to reserve judgment. >> how do you think close do you think mer videotape king came to not beingreappointed? >> i think he was always going to be reappointed. i really do. >> there was a lot of speculation. >> you've got financial crisis -- >> but if that hadn't happened, i wonder whether people -- >> well, actually, if it hadn't

happened, everything would have been jolly. >> the world would be very different. you were talking about banks, as well. it's been warned that the government will have to splint aig. amp has until monday to formulate their views. aren't we a bit beyond -- if we were going to split up a bit of rbs, wouldn't you have done this two or throw years ago? >> well, actually, what you see is end of the poor house. i can't possibly comment on the issue. that was a leak that's os there. asking for the splint between the good and the bad bank, but people like steven hester that haven't taken evidence from them, will say we were operate a good and a bad bank generally and if you look at what's we've

done, it's a big issue and it's a very, very complex issue. what we want is to ensure that a financial system is running as smoothly as possible. and this at a time when there's possibly a disruption to the system and it's a complex issue and it can't be answered in very simple terms. >> and what's the relationship between the commission and the chancellor? he set the commission up. is he going to have to follow the recommendations? >> it would follow recommendations given it set up. would have been in parliament for an awful long time. they don't like to be told what to do. but it is a close party for the blessing.

so i hope he takes it seriously. >> and do you think in terms of regulation going forward, we were very critical when i was chairman of the treasury select committee and how regulation had been involved. going forward, looking beyond just rbs, what do you think is the key lesson that we've learned from the financial office? >> to me, you've got to get ahead of the cousins. and i've got to use that example. take, for instance, ppi can't even go in there. in a nutshell, they have to foe -- and i want to see them use that not to -- with regular

ladle, but to ensure that they're going to look at the progress and ask is this in the interest of the customer? because the big issue that the customer has not been served by banks and banks have let them down. >> and very briefly, yes or no, should reprioritization be the primary issue? >> i think privatization is a first step. but given the taxpayers could pour monies into this, it's the taxpayers that have to be preserved. >> thank you for that. good to see you. china meanwhile hats become the second biggest box office in the world and hollywood is taking note in a bid to end the

country. the american premiering, brad pitt's world with a r war z is set to under go a second -- in china. eunice yoon is now joining us with a very special guest. >> we do have a very special guests. ten screens are opening here every single day. that's how popular it is to go to the movies. the guest that you mentioned is jeffrey katzenberg. he's the ceo of dreamworks. tell us how important china is to hollywood. >> it is becoming incredibly important to hollywood. the film market here has been explosive in its growth. right now, it's the second largest market in the world.

it will be 22 rmd plus this year, which makes it only number two to the u.s. interesting, because of the rate of growth in the theater that are building. >> what does that mean for hollywood? how will hollywood be influenced by the taste of china consumers? >> well, i think it's a time of opportunity. i think that the chinese have shown themselves to be a great audience for movies, both for local movies that are being made here. this year there has been incredible success with home grown chinese product. and also great reception for international flm films, prudes, still in terms of number one,

check the other schools. what we're trying to do, a little different from i think how the other hollywood companies are approaching it. we are trying to build in china. a chinese family branded entertainment company that is making products here in china, for china, and for export to the rest of the world. so it isn't about bringing our hollywood films here. we do that. that's a very good business. but we actually think the future is to be on the ground floor of making great consex here in china and avoid china. >> what happened be this business? if this is the number one marketplace in less than five years, i think making contends here will be very successful.

both for china and i think us us us for the a partner, as well. >> what do you think the big hurdles are in china? there's restrictions, piracy, censorship. >> these are all miengful issues. i was in a meeting yesterday with a number of ceos who address this issue and say, listen, as we here in china become greater content creators and ip owners, the issue of piracy and copyrights are going to become meaningful important issues here in china. they'll get addressed. i'm very optimistic about that. the kie for hollywood is to understand it's a different market, it's a unique market.

i think you can joy great pras. we always have. we've been bringing movies here to over a dozen years. we have never been asked to change a single film in the single movie. the crews, the money we make are well received here and frankly everybody in the world. >> what makes you optimistic today that something will change regarding ipr? i only ask that because i've been in china for quite a long time and i've heard over and over a lot of government officials will say something will be done about intellectual property rights protection and there's still a lot of safety being circulated around. >> there's also unique to other places in the world. there's pieftsy in russia, the -- >> but obviously, it ranges from

here. >> at the same time, i always discussed wa is in people's self-interest. as china becomes a content creator, producer and owner, it is in their interest to protect that work and they know that. and i believe in the leadership here. i think that this new administration is very progressive in their thinking about this. they talk in a very supportive way about frost failure. they understand they are going to expect them by themselves. >> is there anything hollywood is doing in order to try to indicator to chinese -- >> well, some are. but that doesn't really work that way. i can only talk for ourselves.

we make our movies and we adapt them. for instance, here in china, we have chinese actors, a director, a writer who works to adapt our film for the china marketplace. so when they walk in and they see animation -- and that's the beauty of animation is that it's universal. it works across all languages, all cultures, and as we actually transform our movie to 46 different languages. >> turbo. >> turbo is our garden snail from california who has this crazy dream that some day he would like to go really fast, kind of an absurd notion in this. there's this wonderful accident that occurs to him and he gets these powers and he suddenly finds himself at the indianapolis 500. >> he'll have to power through

general motors? >> for us, it's a birth time for our filmmakers. one of the things they felt they wanted to do is when they got to what is the greatest road race in the world, which is the indianapolis 500, they wanted it to have a verse of militude. so that understand, you know, we populated it with a number of brands, the companies that areless a part of that in that environment and make that vooirmt feel real and authentic. they are both there, their cars, you know, everything about it. and so we integrated them uniquely into the movie and have a promotion with them out of it. it's very unusual for us and i know they're very excited about it. >> we spent a lot of time

talking about the china market. the american market is the biggest one in the world. how much growth are you seeing there? people are getting excited because of movie theaters. it doesn't sound like there are going to continue being a lot of enhance to the doctor. we have great exhibits becoming now bigger and bigger movie theaters, imax screens and great sound systems. so the idea that making sure the movie going experience is exceptional, something you can't do in your home, you know, i think we're seeing a lot of great activity on that. movie going this last year was up, one of the biggest years in history in the movie business.

so the business is strong. it's st ill the number one market in the world and it sounds like in china, there are 14,500 theaters, 4500 built in one near. 9,000, to two-third of their screens here is what she's been. >> thank you very much for your time. jeffrey katzenberg, guys, over to you. >> thanks very much, eunice. thanks to you, jeffrey, as well been we just had an auction out in spain. they raised about 3.5 billion ur ros. the yield is a little higher on the thee years.

it's lower on the two-year, but still raised money that they were looking for, so they got it away.

now to the market low today, following washington street's overnight losses. we have more from tokyo. hi, yukako. >> hi, ross. the nikkei 225 closed at 12,904 yen, dipping below the 13,000 mark for the first time since april 5th. this comes a day after prime minister zinn zoe abe fired his so-called third arrow. high expectations for the growth strategy has been pushing the bench mark index up in the six weeks to may 22nd, the index is 26% or more than 3,200 points. however, rising long-term interest rates are raising doubts in this strategy. recent gains have been wipe away in the past two weeks. the yen is on the rise today. it reached 98 yen against the dollar, a level we haven't seen for nearly a month. this encourages investors to

sell machineries and other exporters. toyota falling more than 1.5%, sony 2% and mitsubishi heavy almost 4%. that's all from nikkei business report. back to you, ross. >> thanks for that. that's the latest from tokyo. china says it still has plenty of cards left to play. the people's daily blames faulty attitudes by certain europeans. they say beijing still wants to resolve the row between talkses. france by far is europe's biggest exporters. still to come in the next hour of "worldwide exchange," we'll be back out in frankfurt. the negative rate debate still rages on. what will mario and the rest of the council need to be? we'll have more after this. we gave people a sticker and had them show us.

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you're watching "worldwide exchange." i'm ross westgate. the headlines today, european markets edging higher defying the down turn this after nyse eu euroneck delays trading by an hour due to technical problems.

in britain, it's mervyn king's last policy meeting. will he be outvoted in that last meeting inspect. plus, jeffrey katzenberg has said the hollywood powerhouse is betting big on china. >> we actually think the future is to be on the ground floor of making great content here in china, for china and competitively products that will work elsewhere in the world. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> welcome to the start of your global trading day. the dow down nearly 2% in the last three days. it will be the first triple day loss of the year. but futures right now pointing a little bit higher.

the dow is currently some 48 points above fair value. we're around about 9 points above fair value for the nasdaq and the s&p 500 is around points higher. the ftse cnbc global 300 is up, 2 points, but basically flat. the ftse 1 00 is up 6 points. the credit suisse is calling for 7,4 had 00 for the ftse by the end of the year. we're currently at 6,426. the xetra dax is up 0.2%. the ixex is up 0.8%. we had a delayfor the euronext bourses. they were delayed by an hour. they ever all restarted trade on the asx and the cac 40, as well. >> didn't have an auction bid go

to bid? >> yields on the ten-year come down slightly from where we are. let's, of course, keep our eyes on the cross rates as we head towards those meetings from the ecb and the bank of england. sterling is up against the dollar at 1.5447. no change is expected. the real volatility has been dollar/yen. 99 is where we've stand. aussie/dollar is weaker, feeding through from the weaker than expected gdp. elsewhere, euro/dollar, just a little bit higher up at 1.3122. that's where we stand right now with the european asset prices. chloe filed this report on the asian trading day. >> a lot of red across the board

in asia. fed taper, china's slowdown and more volatility out of japan. the index has erasedd day high. there was a 30-yard debt steepening in the yield curve hau ahead of friday's jobs report out of the u.s. sources say the bank of japan could offer two-year mixed market operations for the first time ever beyond its current one year. this aside from raising its economic are a assessment. >> take a look at the losses piling through in china. shanghai down six in a row. remember there's further caution ahead of weekend data out of china. >> we just had the latest greek unemployment. it has ticked higher.

the march unemployment rate 26.el%. it's a marginal pick up from 26.7 in march. this comes, as well, as the imf admits it made major mistakes in its handling of the imf bailout. however, if the situation presented the same thing, they would do the same thing again. geoff is in frankfurt ahead of the eb meeting today. one wonders how much questioning mr. draghi will get about this. it's fairly clear in the imf report that they stay critical of the troika. >> absolutely, ross. there's been a certain amount of head scratching over exactly why this imf report has come out now. and exactly what it is is

intended to achieve. we're talking about ancient history given the speed with which this eurozone story has rolled forward. i guess more head scratching and puzzling for mr. draghi will be why the unemployment numbers continue to tick higher in many of these economies as some of the leading indicators are starting to look a little better. at least that was the picture for may and we saw that at the beginning of the week.the so let's talk a little bit about the direction of travel here for these story. cramer is with me, managing director for emea so much ratings and dr. helmund is chief for financial goods and stability at university. first, can i talk the sovereign

story? let's set the scene before we get on to mr. dralgy and the ecb. now, surely this is undermining the credibility of their sovereigns. >> hi, geoff, thank you. what happened last week when the commission was extending the time when those conditions should reach 3% basically is a reflection of reality. so if i look at our forecast, for example, when we thought previously that those countries would have agreed on those years. i think it's more like boeing, the reality than a real change or a change in perception of where the journey should be going. the journey is going in the same direction. >> we're halfway through the match here and the posts have been moved another 20 feet down the field.

>> no. he think it's more like you think you're attacking your opponent but sights still in the area. so i think opening your eyes to what you really are and what you can aconceive in a given period of time is progress a pragmatic appropriate to the situation is facing. >> one more question to you. it strikes me that there is still a question mark over government's willingness to execute austerity that would suit the appropriate glide path to where their economies are at the moment. we've seen compression in the sovereign yields. are those moves credible at this point, given there is this concern about the commitment to austerity? >> well, i think the first fact that we need to acknowledge is that those countries tarting with greece but pretty much

along the periphery has done more aemt management, it could potentially be a trap. it could lead or attempt policymakers to declare victory prematurely. there's still a lot of deleverages taking place. so if you allow it into a follow sense of safety by the yields vial and we would have to re assess the way you look at sovereign credit risk in the eurozone. >> now, these extensions won't have played well with the ecb, it seems to me. they want to see firm commitment from these governments before they extend any further monetary or nonconventional easing measures. mr. draghi, of course, in a mind at today's meeting sxp & to

demand certainmakers of economic policy is not the mandate of the ecb. that is generally a question of economic policy. >> well, you can say that, but we've seen mission creep, very went? mr. draghi. >> great. if this would be an open market discussion, there would be no problem. but this is question and you need adequate collateral. only god, the p the will and i

doubt that they want initiate them at the moment because we are looking at the decision of the federal constitutional in germany and there it is a fiercely debated topic assessme assessment. >> is it legal for mr. draghi to pursue a negative deposit rate policy? >> well, this would probably be not on the face illegal illegal.it has been done. for policy purposes, it would be not objectionable from a legal positive. >> let me come back to you. in terms of standard & poors ratings, you obviously have to think about the support that is being given to countries by the central bank at some stage. how closely are you watching today's meeting? what relevance at all does it

have for the way you think about the direction of travel for these economies? well, this meeting today is probably not going to lead to any steps. but we do acknowledge that the policies conducted by the ecb and by the european the balances between the various measures and her bank, they hadn't existed. i think the stop scenario would have played out in a much, much more dramatic fashion across the periphe periphery. thank you, thank you both for being with us and we of course wait to see what ultimately mr. draghi delivers for us in an hour or so's time. ross, let me point out, of course, that we have our ecb special, which is coming up fairly shortly.

and we will conceive r keep you a dro adross. and what the ramifications are likely to be for disht asset classes going forward. back to you. >> we'll also have the bank of kwlnd's decisi england's decision starting around 11:00 time in egypt. the german america ler. it was a lot of the pes nimp that we've been asking what's your recipe for happiness? e-mail us worldwide at cnbc.com r or br could be adding a new brand to its owny.

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. a recap of the headlines today, european equities bucking the global trend.

euro next delayed trading after a technical glitch, but they're back up and running smoothly. mario draghi is expected to avoid any extraordinary bank measures. and dream works ceo jeffrey katzenberg tells cnbc that he's setting his sights on china. all right. there is a tropical storm warning issued for coastal north carolina. we're just getting this through. we've keep our eye owes that. tropical storm andrea has been issued a warning. keep your eyes on that. meanwhile, other things we're looking at today, the irs has suspended two employees for improperly accepting free foods and gifts at an agency conference which is a violation of its ethics rules.

one employee worked for implementing president obama's health care initiative. the house oversight committee holds a hearing today into a treasury watchdog report that found the irs. a we'll with real fizz may be in the works. the company has a market cap of 1.4 billion. reports suggest pepsi may be willing to pay even more, possibly as much as $95 a share and has made an offer through goldman sachs. up heavily, 36% in frankfurt. and cnbc's kate kelly is

reporting that sak capital told employees it will survive what it calls significant redemptions in the quarter. in an memo dated money, management says sac has no plan toes become a family offer. reports are that sac hat signaled at least they would pull some of them money. procter & gamble is reallien its brands. starting in july, the company will split its house old care and bloom efforts into four sectors. global baby care, global fabric and home care lights it's to replace the ceo when he steps

down in a few years. p&g stock up 0.25% in frankfurt. still to come, the gort. >> what dethey're wait to the up skooid. a lot bit more vapser outpatient decliners. [ kitt ] you know what's impressive?

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futures after yesterday's sell-off are pointeding higher. the nasdaq currently called up 9 points. it follows a near 2% fall in two days for the dow jones industrial average. the biggest day fall since november. now, should things change from that implied open and we actually turn negative for the day, anything can happen at this point, it would be the first three-day loss for the dow this year. but that is not what is called at the moment. the noishl did close below 13,000 a little bit earlier this morning. but european stocks are looking better. not by much, but the ftse is down over 2% yesterday. credit suisse is saying this end up by the end of the year. we're currently at 6,400. the xetra dax is up 0.2%.

up 0.3% for the cac 40. the ftse mib is down about 0.1%. we had a pretty good auction this morning from spain. they raised 3.5 billion euros across three, ten and tens. the yield came down. the three-year auction was higher. the 10-year yield, 4.45. actually pretty good, nevertheless, seems to be answer. sxo sterling is firmer. we're waiting, of course, for the latest. it's the last bank of england's rate decision today where mervyn king will be governor. he's been outvoted in the last three meetings. he's been voted -- for quantitative easing. but he's been a vote of six to

three. people. the halifax reporting house prices continuing to drift up in may. house prices up 0.4% in the month of may. and we have pretty strong auto data, as well. car sales this morning, continued to go from strength to strength. this shows that car registrations grew by 21 fers in may. it's a sharp contrast to the car registration we had out in germany, which was down nearly 9% in may. staying with cars, general motors is holding its annual shareholder meeting in detroit today. mid size automaker res finally on the road to recovery four years after declaring bankruptcy. the gallery will come, as well. phil lebeau is on the phone

for us from chicago with more. phil, first of all, is this announcement from the government got late yesterday, is that a surprise? are they going to go quicker than we thought? >> it's a little bit of a surprise, ross. but not a huge one. i think the government made it pretty clear here in the u.s. that as much as it can, it wants to reduce its stake in general motors quicker than originally mentioned. we've already known for some time and there's been a stead write program in place for the government to manage the rukdz of its gm stake on a steady paves. and that's supposed to happen through the first quarter of next year. but when there have been opportunities, the government has said it will take advantage of them in terms of let's take a big chunk of gm shares and see if we can sell them and the inclusion of general motors and the s&p 100 and 500 at the close of trading today. that is a perfect opportunity for the government to do that. because when you see gm going

into the s&p 500, the estimate that injury going to have at least 78 million shares bought by investors and by index funds that need to include general motors in the s&p 500. so it's a good move by the government in terms of knowing there is going to be demand there. >> yeah. good pick up, as you say, once you get into the s&p there. that makes a difference on demand. how much, as well, is the stock going to get support? they appear to have favorable reviews. what do you think? definitely that's going to be helping. i think that general motors right now is counting on one thing more than anything else to help it in the back half of this year. and that is just huge growth in the number of new models that will be hitting the market. the full size pick up is critical for general motors, especially because that market here in the united states is red

hot. it's not often that you see full size pickup sales for an existing model that is being phased out, especially one as old as the current liner. but that's happening here in the united states in large part because there's so much pent up demand or pickup trucks. as a result, general motors is in a good spot to be introducing a new model. >> wa about the cadillac brand, which is a luxury brand which is trying to re-energize. absolutely. luxury across the board here in the united states. with it, a few exceptions. it's outpacing the industry. and has been for some time. so cadillac is benefiting from having new models coming in. the atf was a huge help for general motors in the first half of this year. they really didn't have a model to compete with the c class or with the three series.

the cts, it struggled in that regard. the atf, that excellent competitor relative to where general motors used to be. >> dpil, good to speak to you. still to come on the program, the banking sector has been in the fire for the a long time. [ male announcer ] this store knows how to handle a saturday crowd.

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sgroo this is "worldwide exchange." european equities are higher, this after we had a delay from nyse euronext by about an hour because of technical problems. it's decision day for the ecb. mario draghi is not expected to hire any big decisions today, but he certainly will be fielding questions about mishandling of the greek bailout after the imf admits to major mistakes. and dreamworks jeffrey katzenberg tells cnbc the powerhouse is setting big in china. >> it doesn't have the same trajectory growth you have here in china, but it's till st number one market in the world. and the national hurricane center says tropical storm

andrea will hit the florida coast later today and has issued a warning for north carolina's coast. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. after the falls of the last two days, the u.s. markets are down 1.9%. we are called higher right now as far as futures are concerned. the doe currently called up some 50 points above fair value. the nasdaq is implied higher by 9 points. a long way to go, of course. and before that opens, we've got to get to rate decisions from both the bank of england and, of course, the ecb, as well. we've been taking a look back at what ecb members have told cnbc, as well, about the possibility of negative deposit rates since the last meeting. >> of course we have assessed negative deficit trade.

technically we are ready, but we are also unintended consequences which must be properly assessed. >> the markets overinterpreted this point. of course, there's always some kind of a technical discussion about it, but there is no specific plan in this direction. >> there are many effects of such measures which we are far away from in deciding. but, of course, as our president has said, we have been examining. >> all right. that is the discussion that we've been having. geoff is in frankfurt. jeff, was the chance of the ecb actually doing anything on negative deposit rates? >> i think it's remarkably low at this point, ross. and that is the consensus. we know there is division on the governing council about whether this is the right way to go, anyway. there's division at the moment as to whether we need another move in the rate.

back in bretoslava, we got that move and that makes this meeting increasingly unlikely to deliver anything further. mr. draghi, like all central bankers, would probably want to wait and say just what the impact is likely to be. as we've been discussing on the program already, ross, there are some indicate erts. this is not shoot the light bulb out stuff. but there is definitely a slight uptick in the pmis for europe and some of the headline indicators for may do look a little bit better. as we know, that's against a very, very poor growth back drop generally. so probably steady as she goes at this meeting, we would imagine. maybe a little bit of conversation in the q&a about how they're still considering negative deposit rates, how they're still some tools left in the armory for mr. draghi to use. they want to convince the market that they can still do more without actually having to do more at this stage, ross.

>> okay. yeah, and we'll see what happens. of course, with that rate decision coming out at 12:45 cet. geoff, for now, thank you. we'll be on that extra programming with us. joining me in the studio, peter westway vanguard asset management. peter, we have seen the data get better, but it's still pointing to the continuation of contraction. >> yeah. >> and unemployment is still going up. so will there need to be a further monetary policy response from the ecb, whether or not today in the next month or so? >> you've got to understand about the ecb is that their mandate is primarily about -- and in the past, they came in saying inflation would be pretty much around 2%. i think what's interesting now is that they're two years ahead of forecast with inflation around 11 is.3. so in a way, even without the slight strengthening in the

data, there is enough evidence for them to do something more. and so they always have this tendency to, you know, at the margin do nothing rather than at the margin do something. and so i think to the accident that you can criticize the ecb, i think there's a scope of that at the moment. >> i think the biggest problem is not with the headline interest rates. the ecb could move, but that's not the problem. it's the distribution. so as long as the ecb keeps making monetary policy for the average of the eurozone, they're basically stuck. what the ecb needs to do, and this is what will require political boldness, is to selectively target transmission mechanisms in crisis countries. and that would include buying corporate bonds, buying sme bundles, etcetera, which are well within its mandate which doesn't violate the controversial do not bailout. >> under what guise is it within the mandate? what would they point to say we can do this? >> they are the guardians of the monetary policy and monetary

policy actually includes being transmitted to the real economy. so it's not just that the inflation rates are coming in below what the target is, but monetary policy is not getting transmitted. and it's the headlines that they have used before. they have used this justification of the transmission mechanisms being blocked in order to have the security market pure cass program before. >> and, too, that hasn't been activated. what's interesting is it comes from reports this week that suggests that there's no point in pursuing it because that wouldn't make any difference. >> yeah. it's skeptical about that. i mean, i agree that in a way it's the transmission mechanism in the periphery that needs to be boosted. i think what the ecb are getting bogged down on is that old moral hazard problem. they're wary about getting too much encouragement to banks and to the economies of those weaker

countries because it might mean the government ease up on some of the other policy measures. and i mean, we're seeing the same thing when we're in the debate about banking sector union. they're worried about going too far too quickly because it will ease up on what governments are doing. but i think that's a bad idea. i think they need to do more. >> is that what their theory is? >> i'm almost at the point where i've started questioning the wisdom of draghi's whatever it takes -- because the complacency of eurozone government is so high that the one year that has lapsed has been used to do precisely nothing. the banking unit was precisely dead on arrival. because sovereign spreads are low and therely there is no imminent crisis in the month, everybody is essentially aslide on the job. perhaps we might come back and look to regrekt the day that draghi made that promise because it enabled a complete inaction from the eurozone government.

>> would we have got the right sort of action anyway? i mean, we are either on the midst of a crisis or nothing -- >> no, i'm completely with you. so you remember with all these people who are calling for lehman like moment and when they did, i thought they were either idiots or had short positions. but frankly, there was something to the argument that eurozone politicians need their tails on fire. the problem, of course, is you can't actually defense on them being able to salvage the situation. if you knew that, maybe it's something to wish for. but we can't even be certain of that. so it's no good choices left. >> and in a way, that's partly what the ecb are arguing. you need details on fire some of these governments to tear on doing it. what we've seen in italy and other countries, given the choice, they'll sit on their hands rather than take decisive action. >> peter, good to see you. thanks very much indeed for coming in. peter westway vanguard asset

management. still to come, big brother may be watching you. a new newspaper report says the u.s. government is collecting phone records on millions of americans under the order from a secret court. details, next. ñ

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the u.s. government may be conducting a broad spying program on the american public according to a new report out today. what's up? cnbc's hampton pierce is in washington. sth a report out in britain's "guardian" newspaper. what is it alleging? >> the national security agency is reportedly collecting phone records of millions of u.s. ver rideson records under a secret court order. now, the report is from, as you mentioned, the uk's "guardian" newspaper and it hasn't been confirmed independently by nbc news. the order was granted by the foreign intelligence surveillance court, or fifa, on april 25th. it requires verizon to give the nsa daily records of all calls both within the u.s. and between the u.s. and other countries. now, under that order, phone numbers of both parties are handed over as are the location and duration of the call, but the contents of conversation aren't covered. the guardian says it's the first time under the obama

administration that communication records of u.s. citizens are being collected indiscriminantly and regardless of whether they're suspected of any wrongdoing. the broad nature of the records being collected is usual. fifa court orders usually can't records pertaining to a specific target or a limited set of individually named people. the nsa was criticized during the bush administration for conducting warrantless wire taps. the "guardian" says the law under which the court order relies on is in the business records division of the patriot act. verizon isn't commenting. the white house is directing questions to the nsa, which is so far not commenting on that record in "the guardian." ross, back over to you. >> hampton, thank you very much indeed for that. european equity ries are bucking the trend over the global trading hour.

ecb's mario draghi expects to restrain from any extraordinary measures today. the bank of england's mervyn king is taking his final bow on a rate decisions from bank of england. jeffrey kaszenberg, has told cnbc in an exclusive interview that he's setting his sights on china. still to come, the dow sets to avoid its three-day losing streak of the year. mith ] 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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us why the powerhouse is betting big on china ma. >> the future is to be on the ground floor of making great content here in china, for china, and competitively product that will work elsewhere in the world. >> but then what would be the advantage of that? >> well, good business, you know? if this is the number one movie marketplace in the world in less than five years, i think making content here will be a very, very successful, both for china and i think for us as a partner in a chinese venture. >> wa do you think the biggest challenges are for hollywood in china? there are so many talked about, either the restrictions on quotas and movies that can come here from overseas or piracy, sensor ship? >> i think they're all meaningful issues. i think they're all issues that are being addressed. you know, i think the issue of piracy, which is a huge one for the country, i was in a meeting yesterday with a number of ceos who addressed this issue and

said, listen, as we here in china become greater content creators and ip owners, the issue of piracy and copyright are going to become meaningful, important issues here in china. they'll get addressed. i'm very optimistic about that. i think the key for hollywood is to understand it's a different market, it's a unique market. and you have to play by their rules. and i think you can enjoy great success here. we certainly have. the answer, the issue of censorship, we brought -- we've been bringing movies here for over a dozen years. we have never been asked to change a single film, a single frame in a single film. the movies we make, the stories we like to tell are well received here .frankly everywhere else in the world. >> the american market being the biggest one in the world. >> right. >> how much growth do you see there? wa we're seeing here, people

getting excited. the u.s., it doesn't seem like it's as strong. >> there's a difference. the u.s. is a fully built out market. you know, great movie theaters. now it is now it's about how do you enhance that movie going experience. we have great exhibiters in the united states building these beautiful now bigger and bigger theaters, imax screens and great new sound systems. so the idea of making sure that the movie going experience is exceptional, something that you can't do in your home, you know, i think we're seeing a lot of great activity on that. movie going this last year was up, one of the biggest years in the history of the movie business. this summer is off to a pretty incredible start. and so the business is strong. but it doesn't have the same growth trajectory that you have here in china, but it's still the number one market in the world and it's still frankly doing quite well. >> in china, i'm seeing those

imax theaters and everyone in 3d and getting excited about it. >> in china, 4500 theaters built in one year. >> oh, that's you'll? >> 9,000. so two their thirds of their screens here are 3d, digital, state of the art theater. so it's not just that they're building movie theaters. they're building talent. talking a little earlier on "worldwide exchange," that was jeff katzenberg. futures are mixed in europe, flat on the ftse 100. xetra dax up 0.11%. the ftse down 0.3%. u.s. furchts are pointing higher after yesterday's sell-off. currently 40 points above fair value for the dow, the nas dax is 7 points above fair value and the s&p 500 at the moment is nearly 5 points above fair value. we've just come down from an earlier high. we've got weekly jobless claims out. they're out at 8:30. forecast is dropped by 9,000 for

a total of 345,000. another pair of fed official are speaking today. we've got fed governor sara bloom raskin and charles plosser. u.s. retailers are reporting may same-store sales today forecast to rise 3.9%. ahead of that play into the session, joining us is tom anderson, chief investment officer at boston private bank and trust. hi, tom. good to see you. so the last few days, the dow has been down nearly 2%, we're swinging around on fed taper talk and economic data. how do you see it playing out? >> well, we certainly have a tremendous run for u.s. equities. over the last six months, the s&p 500 gained about 30%. and we haven't seen a 5% pullback over that time period. so what we are finding with our clients is that they're looking for opportunities to put money to work. if this june swoon that we're in continues, i think this could be

a good time to, you know, take some of that cash and put it into the markets. >> june has been, along with september, one of the world months for a few years now for investors. so would you wait for this june swoon to get even -- bring us down lower? >> certainly. i think we'll keep an eye on it day by day. but our experience in the last few months has been if you keep waiting for that 10% pullback, it hasn't been happening. we remain positive on equities. even with the volatility in the last, you know, few days, it certainly looks more appealing touts from a portfolio and asset allocation standpoint than the alternative such as bonds or cash. so i think even at this point if we saw another 1% or 2% drop, we think that would be a good time to put more money to work. >> if we do get fed tapering and

we start withdrawing the qe sympathy ewe husband, can we actually rely on equities to go higher without it? >> well, our view is that, you know, all the talk about tapering and the end to quantitative easing is simply premature. the earliest i would see that taking place would be well into 2014, if not beyond. so i think, you know, in an environment that we're in with relatively low growth, speculating about what's happening with the fed and what they might do with quantitative easing is what's moving the market day-to-day. but when you step back, when you have clients who are longer term investors and you look at the bigger picture, we still think it's constructive for equities in a portfolio framework. >> tom, have a good day. thanks for joining us earlier. we appreciate that. tom anderson from boston

privateback and trust. we were asking what was your recipe for happiness? this follows angela merkel, the german chancellor getting a lesson in happiness. alice says watching the lion wes a couple of cold ones. and don't forget, also, coming up tonight on the kudlow report, a first on cnbc interview with mitt romney. larry will talk with the former republican presidential candidate about the state of the economy, health care, and tax reform. don't miss out on that. it all kicks off at 7:00 eastern. and, of course, on "squawk box" tomorrow here in europe, there will be an exclusive interview with poland's prime minister, donald tusk from 7:00 cet. coming up next, it's the original version of "squawk box" with the countdown to opening markets stateside. that's for u.s. viewers. european viewers, we now get extended programming, as well,

as we take in the rate decisions from both the bank of england and the ecb.

good morning. today's top stories, the bulls are going to try to bounce back after another pretty big sell-off on wall street. the dow closed below 15,000 for the first time in a month and logged its worst two-day drop since november last year. in corporate news, pepsi is reportedly in advanced talks to buy soda stream. and steven cohen's sac tells employees it will survive what it calls significant redemptions. it's thursday, june 6th, 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. markets are our focus this morning because the dow is coming off its third biggest percentage drop of the year. all kinds of crazy things, jim cramer was pointing out this morning he was watching the charts and there is nothing good to see. the dow, nasdaq and s&p 500 all closing at one-month lows. this was a broad based sell-off yesterday. all ten of the s&p 500 sectors closed down. today, the dow is going to try and avoid its first three-day losing streak of 2013. right now, u.s. equity futures are indicated a little bit higher. they're up by about 40 points. but if you'll look through the numbers on this, the dow was below 15,000 for the first time since may 6th. this is its worst two-day drop since november. all of these guys, as we mentioned, ending at one-month