hello. i'm ross westgate. this is "worldwide exchange." fears the big central banks will pull away the punch bowl and adding fresh volatility to many currencies. this as u.s. treasuries near the highest levels in years. high debt levels are increasing the risks of a downturn in the next three to five years. vodafone confirms it made an offer for germany's biggest cable companies, estimated to be valued at around 10 billion euros. turkey's prime minister due to meet with protest leaders in a few hours after officials say

police action will continue night and day. turkish benchmark bond yield up to the highest since november last year. all right. just joining us, good morning to you. good evening if you're in asia. we had the latest ia reports out. the forecast of global demand growth, little changed for 2013. absolute demand trimmed a little bit on account of historical data for russia. global supplies they say edged lower to 91.2 million barrels a day in may. opec crude supply up to 30.89 million barrels a day, seven-month high. down from saudi arabia, iran,

and kuwait, partially upsetting reduced supplies from iraq, libya and nigeria. a closer look at that report a little bit later in the show with harry garian at bmp. he'll join us. and also get the latest impact of the rise in bond yields and the impact that may have on oil markets. also on today's show, the bundesbank president has blasted the ecb's bond purchasing program. battle between we'll have the latest. we'll be joined by the founder and ceo of why plan. the startup is taking london by storm. now setting its sights on fwloeglobal expansion. can they crack america? we'll discuss that. princess cruise's new ship is making its midaiden voyage. will it be at the port with

company ceo in a first on cnbc at 11:20 ct. and as we have been saying, u.s. bond yields up to 14-month highs amidst new tapering speculation. we'll find why one strategist believes the sell-off is overdone at 11:30 ct. any thoughts, comments about any of that, or anything else within reason, e-mail us, worldwide@cnbc.com. first, emerging market currencies, stocks and bonds in a rut, suffering another sharp sell-off today. so in focus, industrial output expanded from a year ago that missed analysts forecasts. annual cpi up 9.3% in may. consumer price inflation also easing for three months in a row. indian rupee hit an all time low during the session yesterday, 58.98. we're currently at 57.98.

so it has strengthened, but one of the worst performing currencies, lost nearly 8% of the value since early may. india's chief economic adviser said the rupee is undervalued and the government is prepared to act to stem its decline. a top official at india's finance ministry says the slide is temporary and squashed speculation that india is planning to issue overseas bonds to help narrow the current account deficit. at the same time, indonesia central bank says it is ready to defend the weakening currency by flooding the market with a large supply of dollars. this after the rupee hit its low since 2009. bank indonesia raised its rate by 25 basis points and is prepared to buy government bonds to stabilize the currency if necessary. where we stand now, with ten-year treasury yields, up to

near 1.3%. you can see 2.2% is where we stand. there seems to have been the fact we saw this rise yesterday in treasury yields seems to have spurred some buys back intomerig me with his view, jack. i presume, as u.s. treasury rates head up, the hurdle gets a little higher. do you to work out what is going to happen to u.s. rates to decide where we go with emerging markets? >> yeah, it is definitely one of the key questions here you need to answer. this whole weakness in emerging markets was triggered by fears of fed tapering. so there will continue to be a key driver. we think that the fed will still be committed to very easy

monetary mpolicies so we're les concerned about increase in yields. what is currently going on in emer merging markets and bonds, it is a shakeout. two reasons why i think you can say that, if you look at emerging market currencies and bonds, the weakest currencies and bonds are not those with very poor fundamentals, but those which -- the strongest inflows in the last few years, very high foreign ownership of the local bonds. and those currencies and bonds are being sold at the moment. and next to that, i think what is quite interesting is that i had this whole fed tapering fees, initially resulted in broad based strengths against all currencies, but in the last few weeks, you see that effective dollar is weakening against the yen and probably a lot of speculative positioning in emerging markets euro and

yen, these positions, that's why we see a stronger euro and yen and weaker emerging market growth. >> yeah. it is an interesting -- it is an interesting point. you know, this time last year, the likes of brazil and others were complaining that u.s. policy was debasing the dollar. and they were complaining about depreciation of their currencies. the fact that something like the rial is at a four-year low, some might think the government might like that. wouldn't that benefit them? >> well, i think that purely weak currency itself is beneficial, but let's say if it goes on with local rates or emerging market equities, you can argue financial conditions in general are tightening for emerging markets. that's one reason why it needs rather recent you'll start to see some policy response. you see interventions in brazil,

in poland, in india and indonesia, rate heigikes in tur. we think it is too much for many emerging markets at the moment. >> if your expectation is that the, you know, the tapering discussion, we need to be a little more relaxed about and therefore you're alluding to the fact that maybe treasury yields have peaked at the moment, does that mean the selling in emerging markets is done? i also get the fact that maybe people may also still be looking at the euro/yen rates. >> yeah. i think the bottom of the sell-off is always very difficult. it is always more painful and always goes a bit farther than you think. but if you look at many emerging market currencies, oversold conditions, value starts to appear in some emerging market

currencies. and like i said, you start to see policy response. i think from a technical base, we probably are close to the bottom. >> okay. just stay there. i will get your views on turkey as well. the turkish prime minister expected to meet with protest leaders today despite continuing clashes across the country. istanbul taksim square and ankara witnessed new violence as demonstrators were repelled by police using water cannon, rubber bullets and tear gas. in the u.s., the white house says it is voluming events in turkey with concern. we'll show you the latest pictures from taksim square after those disturbances overnight. as far as turkish assets are concerned, the bist 100 today has risen just a little bit, up 1.5%. dollar/lira, 1.88 and turkish bond, 7.69% the yield.

jaco, on top of the wider emerging markets we talked about, how much is the political skirmish also upsetting investors in turkey? what is the investor's view of these events? >> yeah, i mean, i think certainly in this environment it doesn't help. and i think turkey is one of the emerging market countries where you can't worry about fundamentals. it has negative real rates, current account deficit, a central bank which so far has been quite difficult to follow what exactly they're aiming for. clearly they didn't want a stronger currency. so we will still be a bit cautious on turkish lira, i would say. >> good to see you this morning. thanks for that. have a good day, jaco riou. if you want to know more about what is going on with turkey, you can see the latest scenes from those protests. in greece, bad news

continues to pile up as well. a developed country now to an emer emerging market. the first time it made that move since its index was launched way back in 1987. remember it well. the company said greece now fails to qualify as a developed market for multiple reasons including the ability as money managers to trade shares on the nation's stock market. a different story on the uae who were promoted to emerging market status from the front tier category. understanding they weren't in the category until may of next year. the index kept them waiting as both countries upgrade their status. investors are forced to trade to korea one in local hours. the msbi has been considering upgrading the country's status since 2009.

so after the volatility of yesterday, how are we faring today? you can see on the dow jones 600, weighted to the upside. only just 5 to 4. the ftse 100 was below 6,300, the first time that happened since april. we ended above that, but still down .9% on the day. right now, fairly flat. dakotas dax is down 11 points. there are a number of individual stocks worth looking at today. spanish retail giant intex, net earnings up just 1.2%. but it was okay for investors.

the stock up about a percent. moritz, flat sales in may coming in just below forecasts. and vodafone stock down 4.6%, confirming it made an approach for german provider phone and tv services cable deutsche. they knew they would put a deal in place to tap into the market anyway. we're keeping our attention on the bond yields. spanish yields 4.57%. we got up to 4.66%, six-week high yesterday. coming in a little low from the rises we saw during the session. ten-year treasury, keeping our eye on this. up to nearly 2.3% during the last 24 hours. since then, a lot of buys, pushing the yield down to 2.19%. big swings in the treasury. we'll keep our eye on that. at one point down 1.6%. and we also saw real yields on

treasuries become positive for the first time in around 18 months. yesterday investors started to say to the u.s. government, we would like to be paid for lending you money. it has been the other way around for the last 18 months. as far as currency markets are concerned, we'll keep our eye on the dollar/yen. 96.65 is where we stand. big swings on the dollar/yen cross as well. little bit of a rebound. aussie/dollar firmer. sterling/dollar, merging market brazilian rial, trying to claw back. down 2.7% yesterday. a four-year low for the rial. indonesian rupia, at lows since 2009. the dollar is weaker.

the indian rupee, 58 is where we stand as well. an all-time low, 58.98 for the rupee against the dollar. the dollar a little weaker. that's where we stand with the emerging market currencies. let's check in on the rest of the situation in asia. sixuan li has more. >> another lackluster session in asia, taking the cue from wall street. in japan, as investors continue to digest yesterday's underwhelming boj decision, the nikkei fell below the 13,000 level in early trade, hurt by sharp gains in the yen overnight. as the currency turns weaker into today's trade, the nikkei closed off its lows ending down by a modest .2%. electronicsmakers like canon and nikon made a comeback today. but automakers failed to get into gear, slipping 2% to 4%.

and the realistic counter also weighed on the market for the second straight session, losing 1.7%. to put it in context, the nikkei is about 16% lower from its year to date high. elsewhere, south korea's kospi closed lower by half a percent. the asx 200 lost .7% as minors lost steam. industrial production disappoints. as for southeast asia, remember yesterday, thailand, indonesia and the philippines tumbled between 3% and 5%. set and indonesia's jakarta composite making back early losses, trading about flat at the moment. and the philippines market is shut for independence day. meanwhile, china, hong kong and taiwan markets also out of action today for the dragon boat holiday. speaking of which, many chinese believe the dragon boat festival

commemorates an ancient patriotic poet and is also a day for people to exercise and dispel disease. for over 2,000 years, chinese people just race dragon boats and eat rice dumplings to celebrate this traditional holiday. ross? >> they give you more energy. looks look a good race. thanks for that, sixuan. catch you later. the bundesbank has come out swinging. when we return in a few moments, the latest from germany. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪

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the bundesbank president has attacked the ecb's omt program, giving testimony at the constitutional court in germany. he said on interbond buying is not within the ecb's mandate. he also claimed at set buying scheme blurred the lines between monetary and financial policies of individual member states. it is all part of the first day of hearings at the german constitutional court in carls river. and carolin is there for the second day. what did you make of events?

>> well it was very unsurprising to be honest. we knew about mr. weidmann's staunch opposition to the bond buying program by the ecb. he said it comes close to monetary financing of government budgets, it compromises the ecb's credibility and independence, it could slow reform efforts in the countries and it endangers price stability. now, as expected, the ecb hit back saying all that isn't true. here is what the ecb told us after ten hours of hearing. >> translator: we use this first day to explain why the ecb chose the bond buying program under the omt parameters. in our opinion, the program is economically necessary. it is efficient. and it is within the mandate of the ecb that was defined by the member countries. ie, ensuring price stability in the entire euro area. we are the central bank of all 17 member states, and we made

those points today and explained we act accordingly. i believe this is important and contributes to more transparency and we will stress those points in the q&a session tomorrow. >> there you go. the ecb, the bundesbank still miles apart in terms of the legality and the effectiveness of the omt. the effectiveness, we know it is widely credited with being one of the most successful monetary policy tools in recent history. and i'm quoting mr. draghi here. now, the bigger issue that arose from the debate yesterday is whether the constitutional court is even the right place to debate the legality of the omt because, remember, the constitutional court here cannot ajudge over eu matters. that matter may be referred to the european court of justice in luxembourg. those limitations to the jurisdiction, they may also be reflected in the ruling which again is only going to be out after the german elections in september. back over to you.

>> all right, carolin, thanks so much indeed for that. if you have thoughts or comments, e-mail us at worldwide@cnbc.com. there are more millionaires and super rich individuals than ever before. this according to a report from the boston consulting group. when it comes to making it rich, is it all about luck or sheer hard work? cnbc's robert frank asks some multimillionaires. >> most of the wealthy believe they make their own luck, largely through hard work. but it turns out it all depends on how you made your millions. a new study asked multimillionaires about the factors that made them rich. hard work ranked first, cited by 98% of the group. that was followed by education with 90%. and then smart investing, being frugal, and taking risk. only half of those surveyed credited luck as a factor in their success. but entrepreneurs felt far more lucky. 79% of them said they were lucky. corporate executives, however, said it is mostly hard work and education. why the big difference?

well, succeeding as an entrepreneur depends far more on timing than formal education. but spectrum group says it is also about ego. those with bigger egos tend to be less likely to admit that luck plays a role in their success or maybe some of those entrepreneurs won the lottery. back to you. >> all right. what do you think is making rich about, luck or hard work? e-mail us, worldwide@cnbc.com. tweet @cnbcwex or direct to me @rosswestgate. can the shell boom be the real game changer shaping your markets in the future. we'll discuss that as soon as we come back. the latest unemployment figures for the month of may and the uk. that data right after this. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases.

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we have helped over 7 million people fall in love with their tempur-pedic. and now for my favorite part of the tour. [whispers]everyone loves free samples. ♪ the headlines from around the globe, fears the big central banks will pull away the punch bowl and send some for the exits adding fresh volatility to many currencies. pimco says high debt levels are increasing the risk for another global downturn in the next three to five years. vodafone confirms it made an offer for germany's biggest

cable companies, estimated at the value of around 10 billion euros. turkey's prime minister is due to meet with protest leaders in a few hours after officials say police action will continue night and day. unemployment data out of the uk in the next two minutes, we'll bring you that. beforehand, the world's biggest clothes retailer reported a 1.2% rise. its weakest quarterly performance in four years. the results still manage to beat a reuters forecast by 3 million euros. cold weather was largely to blame. and the stock up 1.8%, better than expectations. slower sales growth in the first quarter, but did manage to outpace rival testco, the only uk grocer to expand the market

share in the period. comparable shares up .7%, down sharply from 4.2% rise in the fourth quarter. the ceo says he expects challenging environments to continue through the year. stock off half a percent. in retail, the h&m swedish brand posted flat sales, just shy of 1% increase. the group said weak consumer demand in the home european market dented its performance and poor weather conditions across the region. the stock is off a third of 1%. the ftse 100 yesterday was down in the end just under 1%. but had trended below 6,300 for first time since april. currently off .2%. we keep our eyes on bond yields. just recovering after

yesterday's sell-off. yields coming a little bit lower. spanish yield 5.8%. we're up near 2.3% during the session yesterday. bonds fairly flat at the moment as well. we have the latest unemployment figures out of the uk. so let's bring you those as well. the official -- the monthly claimant account for may down minus 8,600. forecast to contract 5,000. so those number a little better than expected. the total unemployment rate 2.5 million february to april. 2.511, a little lower than the 2.516 november to january. the total in employment rose in february, the period of 29.756,

up 24,000, the change on the quarter. the unemployment total unemployment down 5,000 on the quarter as well. so those are a fairly good numbers. and the average weekly earnings total pay including bonuses up 1.3%, forecast -- a little stronger. employment figure if anything a little better than we might have expected. meanwhile, north korea called off its high level talks with seoul after a disagreement. pyongyang said the choice of talks were to discuss the possible resumption of suspended projects including the reopening of the kaesong industrial park. let's get more.

chery kang has more. >> i thought i would be talking to you about the two-day meeting, but the main issue is the level of delegates the two koreas were willing to send or the mismatch of level of delegates. this is important because of the gravity, the weight of the words that will be exchanged at the talks and depending on the level of the rankings of the people at the negotiating table will be seeing some fruits out of this negotiation or not. now, south korea proposed a deputy minister of unification ministry and that is after north korea send it was not sending an official that was high enough. now, some north korea observers are saying this could be north korea's attempt to build up its leverage somehow, lead the talks under its own terms because it was the one who surprisingly called for this meeting last

week. remember it does have a lot of cash to potentially gain from this dialogue, from possibly resuming operation of joint projects that brought the regime hundreds of millions of dollars every year. now, so given that, we're talking about north korea, it is highly unpredictable at this point, but we could be looking at a period of some cooling in the inter-korean relations, not that they have been hitting it off too much this year, but seoul for now is not completely shutting down the chance of talking of -- of having that talk down the road, though, ross, the latest is that north korea is not answering the phone on the inter-korean communication line today. back to you. >> all right, thanks very much indeed for that. we have some news as well coming out of turkey. the central bank government says it has additional tightening measures in store for the lira volatility continues. they had some auctions yesterday

to try to reduce that. we'll keep our eyes on that. they say the cpi will also rise in june and july because of the base effect. and they may implement additional tightening as well on that. the real effective rate is far below the 120 threshold as far as they are concerned. now, we're just talking about korea. south korea. its economy continues to face head winds. fewer jobs were created in may, nudging the unemployment rate upward. 21-month low in march, but was still subdued. import prices dropped for the ninth straight month in may with machinery the main drivers. data comes one day before the bank of korea's policy decision, but economists do not expect a major move. now, beginning of the program, we talked about the june iea

release. they expect a pickup in global demand during the second half of the year. harry joins us now. not a big change from the last report. what is the key takeaway from you from the iea? >> i think you look at the numbers, they haven't changed much on nonopec supply growth, haven't changed much on demand, little trimming on china. the iea, if you look behind the numbers, you see not all nonopec supply growth will be available to the market. so in effect, most of the supply group is in the u.s. the u.s. cannot export its crude and for lack of infrastructure cannot fully leverage it, thus reduce inputs. we look forward, given the statement of higher than normal seasonal increase in global refinery through puts during the summer, we're going to face ourselves with a much tighter market in the second half of the year than what the figures suggest at face value.

>> the drift higher in supply isn't bearish. >> exactly. we have seen opec supply creep up a little bit higher, but at the same time, understanding that there is a global rise in through puts coming ahead of us, understanding we are losing barrels from iran, understanding that iraq cannot step in, understanding that saudi has succumbed to a strong increase in its direct burn of crude oil and utilities. all these factors combined suggest that the market will have to push higher in the second half of the year. >> okay. i get all of that. what about the economy? >> certainly -- well, the thing is in the end, you look at the economic forecast, bmp paribas or imf, we look at around 3% growth this year and the global economy, mainly driven by emerging markets that are commodity intensive in growth. we're not particularly concerned that demand will crater. it is a multiple risk on the supply side.

financial factors are important. we at bnp paribas believe it will be fully implemented by the end of the year. if the dollar weakens as a result, demand for real assets rises. we're looking at higher oil prices and higher gold prices. >> let's talk about that, the financial impact on that. in this latest bout of qe, commodity prices didn't really rise with it, unlike earlier prices. one would argue therefore they shouldn't fall either. >> indeed. you make a valid point. there has been a disconnect in risky asset classes, we have seen the s&p carry on higher. we have seen commodities move sideways if not slightly lower. again, here, the problem was more resilient than expected u.s. dollar. the dollar has been resilient for a couple of reasons. one issues in europe, the super banking prices, italian election. it also has been a little more resilient because of the talk of

tapering of qe, but we strongly believe that there won't be any tapering until the end of the year. so with all these liquidity injects, the dollar is going to weaken and as a result of that, we'll have higher oil prices. >> yeah. there are those who think you're clearly not of this view there are those that think 100 will increase and become a ceiling, not a flaw. why would that be the wrong analysis? >> well, again, you look at the marginal cost of production for oil, and if we take u.s. shale for example, to make the economics work, you need a minimum $90 oil to break even for the more recent shale developments. at the same time, opec will be targeting $100 as its preferred price. add on to that, the financial factors, add on to that supply risks and we have several. we have been talking about iran, of course, we're losing barrels from iran, but think about the geopolitics of iran, the

geopolitics around syria, geopolitics around yemen, long lasting supply outages from sudan. all these multiple supply side risks are what is going to push oil prices higher and above 100 for wti and brent by the end of this year. >> good to see you. thanks for that. have a good day. still to come, a little later in the show, we'll get another check of global oil markets when bp releases the statistical energy review. we'll bring you that breaking report at 10:30 ct. shale oil boom in the u.s. is said to be reducing the risk to supplies posed by hurricanes, calling to the eia, the growth of on shore sites is immunizing the country against tropical storm and other severe weather. forecasters predicted a worse than average season with up to 6 in 10 storms expected this year. let us now your thoughts on that. e-mail us at worldwide@cnbc.com.

airlines, air bus is the maiden flight of its long haul plane will take place on friday. stephan joins us, our international globetrotter with the latest. >> just in time for the flight test, if the weather conditions are good, will take place on friday morning, 10:00 central european time from the airport of toulouse. it will compete with the 787, also with the triple 7 from boeing will have to go through tests. 2,500 hours of flight tests at least before the first aircraft will be launched. so far they have received 1630 orders for the new aircraft, made of composite material, more difficult to produce than any other aircraft. earlier this week, the chief executive of the company explained that the company

focused on reducing technical risks of new appetites to launch grounded aircraft. he was referring to the battery of problems that grounded the dreamliner for several months. so that's the highlight. it is going to be the star of the paris air show which will start the beginning of next week. all the crew on board, six people, will have parachutes, but hopefully they will not have to use it. >> probably been a while since people were doing test flights with parachutes. i hope, anyway. stephan, thank you very much. >> you must have a parachute to fly. >> i get that. thank you. >> don't want to use it. >> it is how you pack it is the important thing. who is packing the parachute? if you want more of what is expected, stephan mentioned the paris air show, there is plenty on our website. still to come, why plan is the

startup with $12 million in its back pocket. they're heading to the u.s. coming up next, the ceo will join us in the studio. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪

kamura died in japan. born in 1897, the world's oldest living person. these pictures were taken when he was still alive. prime minister shinzo abe passed on birthday greetings to him two months ago. he had been hospitalized with pneumonia since may. ap reports he had seven children, 14 grandchildren, 25 great grandchildren, and 15 great great grandchildren. quite a life. spanning three separate centuries. meanwhile, also in japan, softbank appears to be in the driver's seat to buy sprint nextel a day after rising its bid. >> softbank's ceo appears confident about winning the bidding war with dish network. one factor that worked in his

favor was a contingency plan he had up his sleeve which conveniently leaked out to the press. last weekend it was reported that softbank was considering taking over t-mobile if it failed to buy sprint. where that softbank that was not willing to play a waiting game, this prompted the u.s. company to announce tuesday it had accepted the revised deal. he recognized the original offer was not welcomed by short-term investors as warmly as expected. softbank was eager to avoid the worst case scenario, failing to win support from a major -- win support from a majority of shareholders. but song is not breaking out the champagne just yet. this ceo charles irgan is known as a shrewd business man who won a bidding war against rupert murdoch in 2001.

back to you, ross. >> thank very much for that. the world's biggest gaming event is under way in l.a. this year sony and microsoft are battling it out with the unveiling of their new consoles. >> reporter: it is the biggest e-3 gaming conference in years here in l.a., it has been about eight years since more than one of the major players had a big console launching at the same time. microsoft and sony both talking up their next generation consoles. the question is, is this the console's last stand? if you look at the stocks, particularly sony over the past eight years, it had a rough ride and right now mobile devices are encroaching on console's territory as the primary gaming position. and take a look at some of these projections from new zu on how the growth will play out over the next three years. that's the meat of the growth of

these new consoles. consoe consoles themselves only looking to grow 3.5%. online gaming growing at 10%. tablet gaming growing at nearly 5% every year with devices, especially the ipad and the kindle, really growing in popularity. looking to be more than 20% of the market by 2016. i talked to sony gaming chief jack trenton earlier today, first on cnbc about the console market, he's convinced the console isn't going away. >> i still think the console is the ultimate gaming experience, and it opens the ecosystem with smartphones and tablets. people tend to migrate up the food chain to the dedicated console. i think the console will outlast my career. not going anywhere anytime soon. >> reporter: this new console environment will be good for gaming companies like ea. they launched 11 games or showed off 11 games here at e3, hoping those will catch on with gamers.

i think the wired card is what will apple and amazon do this fall. we're expecting to see new tablets from them which should continue to drive growth. who knows if we have a tv from apple, that could eat quite a bit into holiday spending budgets. for cnbc, jon fortt. >> nokia turning folk us away from some products in favor of windows platform. we have comments from the president of the court presiding over the ecb hearings. he's saying the ecb's conditionality could be a good middle ground. it could help draw the line between fiscal and monetary policy. we'll keep more of an eye on

that. and we'll get a view a little bit later. right now, the u.s. government warned brussels against french plans to exclude the film industry from a transatlantic free trade deal. the french film should remain a cultural exception to preserve its prestigious statous. the entrepreneur sector. london's startup why plan received $10 million to start telling new yorkers where to party. phone app already had 200,000 downloads. on the app, users pick up last minute tickets to events, checking out activities nearby and making plans with friends. joining us for more, the two co-founders. good to see you both. just explain what why plan is

briefly. >> thanks for having us here. why plan is tonight's going out app. we allow our customers to discover great events happening in their city, on their smartphone, to book in two clicks and to go to that event right now. so it is discovery and consu consumption of the finest entertainment. >> we had last minute rooms. is this a last minute ticket? >> conceptually i think we're looking into similar trends of people traveling and doing things at the last minute and requiring to do them in the real world through their smartphone. that's what yplan does. >> you don't buy tickets ahead of time. you just turn around to people who have events and you are a channel through which they can sell unsold tickets. what is the window they use you for? >> right. yplan is a two-sided marketplace. consumers on the one hand and event organizers on the other hand. the window is 48 hours

typically. we sell events on the day and tomorrow. >> who -- how do you differentiate yourself from your competitors? >> well, we don't really have any direct competition at the moment. so wyplan is the only app that allows you to discover interesting things to do on the last second basis and book them and go out without printing any paper tickets, without calling anyone to reserve your seats. >> how big a step is this? >> the next step for yplan is expansion and covering six or seven big cities in the next year, year and a half. it is a very big step. we are recruiting a team there, finding an office, you know, building the partner relationships. >> both of you were working for banks, right? goldman sachs, you don't look like bankers now. >> it is our t-shirts. >> how encouraged were you -- how easy was it to try and set

this company up as a british tech firm? you're based in london. are you happy to be here rather than silicon valley? >> yeah, i'm based out of new york now. and vic is moving shortly as well. we have an office there too. we started off here in london. i used to work at summit partners before, a venture capital firm and prior to that, bank of america, merrill lynch and vic was with goldman sachs as you rightly mentioned. what we realized is as we wanted to change the world and have a real impact on the communities that we live in, we figured that we have a better chance of doing that as entrepreneurs than working in finance. and we teamed up year and a half ago, left our jobs, spent half a year going methodically through over 50 ideas and yplan was number 51 which we picked and pursued and now driving it to a billion dollar business. >> you were live in november. you raised your seed when? >> raised our seed around in july of last year, 2012.

followed on by the serious a-round now, which we announced last week. led by general catalyst, top venture capital firm in the u.s. >> what now? do you want to -- most of us, do you want to exit the business in five years? look for a sale or build this up to some kind of dominating -- it is an app business. >> comes back to your question about differentiation. thankfully yplan is not an app business. the app is the interface with us and the consumers. we have sales, marketing, plagues, technologplague operations, technology. we can grow in scale and question keep our head down and focused on driving this to a billion dollar business. >> thanks so much. we'll watch your progress with interest.

we have got some more information coming out of vodafone. they confirmed this bid this morning for kabel deutschland. and this is where we stand at the moment. vodafone currently down 4%. kabel deutschland is currently up 8%. interesting that vodafone confirmed this. they had agreed to a deal with kabel deutschland to access some of its rk looking to -- also looking to buy. it has been a rather surprising. now we have a number of bank of england members today talking. mr. fisher has come out and said we need to keep pressure on banks. the market is not very competitive. he's currently saying the economic weakness is the biggest threat to the uk as well. interesting just looking at fisher's comments, saying it had stimulus effects on the economy, but doesn't want higher house prices but want more transactions to boost demand, which may be a comment, of

course, on the government's right to buy. now plenty on the agenda in asia tomorrow. china, hong kong, taiwan back in business after the dragon boat holiday that sixuan was explaining earlier. a big day for central bank decisions with policy announcements due out of new zealand, korea, indonesia and the philippines. this as emerging markets fall under pressure. and we have been asking you what you think is making it about making it rich, hard work or luck. e-mail us at worldwide@cnbc.com. after the falls we saw yesterday, european markets a little mixed today. we are flat, essentially, across the board. yields in italy and spain coming down after rising yesterday. spanish yields up to the highest level for six weeks.

4.66%, currently 4.58%. keep our eyes on treasury yields, nudging down 2.19%. a sell-off on emerging market assets as well. big volatility in dollar yen. we'll bring you up to speed with all the latest on asset prices as we count down towards the u.s. also still to come, the bundesbank jens weidmann comes out swinging. we'll have the latest from germany right after this. the next hour of "worldwide exchange" coming up. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there.

call us. we can show you how at&t solutions can help you do what you do... even better. ♪ how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. 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. ♪

. this is "worldwide exchange." i'm ross westgate. a recap of the headlines. fears of the big central banks will put away the -- sooner than expected sent some for the exits. fresh volatility to many currencies. this as u.s. treasuries neared the highest level in nearly a year. it is increasing the risk for another global downturn in the next three to five years. kabel deutschland, vodafone makes a bid for the company, around 10 billion euros. turkey's prime minister is due to meet with protest leaders in just a few hours after officials say police action will continue night and day. the turkish bond yield up to the

highest level since november of 2012. if you're just joining us state side, welcome to the start of your global trading day here on cnbc. it is hump day, the middle of the week. after the falls yesterday, for u.s. equities and the volatility right now, futures are pointing to an upward start. the dow is currently some 75 points above fair value. nasdaq is some 15 points above fair value. the s&p at the moment is some 7 points above fair value as well. falls of 1% for the s&p and the nasdaq. yesterday, the dow down 116 points. european equities, we're evenly split on advances versus decliners on that. european stocks now with the ftse one stage yesterday below

6,300, first time since april. it was above that, down six points at the close. right now, just down eight points, flat. we had seen bond yields in these two countries coming down after hitting elevated levels yesterday. spanish yields 4.66%. the highest for six weeks. we'll get to bonds in a moment. remind you, number of stocks worth looking at today, all about the retail sector. down pretty sharply from last month, but still ahead of rival testcoe. inditex, net earnings up just 1.2%. but still better than expected. and hennes and mauritz, fairly flat, just below a reuters

forecast. vodafone to date moving a little lower. confirmed it made an approach for kabel deutschland, they're coming out and saying not confirming we have received any kind of firm offer. but stocks performing, stock down 5%. kabel deutschland up 8%. yields in spain. 4.57%. treasury yields, 2.19. got up to nearly 2.3%. and yields -- real yields on treasury tips posted for the first time in 18 months as well. rather refreshing that investors would be asking u.s. government to pay them for lending them money. as far as currency market is concerned, future volatility, dollar/yen, dollar/yen, biggest win-day fall since may of 2010. 9560. dollar rebounded to 96.70.

a lot of what has been going on is people had been funding their investments into emerging markets through the euro and the yen as well. so those -- there is a link between those two and what is going on here. the real against the u.s. dollar, weaker. the real down to a four-year low. the indonesian rupee weaker against the dollar today, at lows we haven't seen since 2009. the rand trying to strengthen against the dollar. and the rue pee, down fresh all time loews fws for the rupee as. that's where we stand with the emerging market currencies. sixuan joins with us a recap from singapore. sixuan. >> thank you. the number of asian markets out of action today dodging the global sell-off in equities. the nikkei had another wild

ride, dipping below the 13,000 level at one point, but it managed to close off its lows turning weaker against the greenback. electronics makers such as canon and nikon let their support, but automakers in reverse gear, slipping 2% to 4%. on the whole, the nikkei still about 16% lower from its year to date high. elsewhere, exporters weighed on south korea's kospi finishing lower by half a percent. in australia asx 200, weaker by prepondera .7%. industrial production disappoints, and as for southeast asia, they were down some 3% to 5% yesterday, while investors fled emerging market assets. and lots of volatility to date. and set trading down by 1.1%,

but indonesia's jakarta composite making back its early losses, trading higher, by almost 2%. the philippines market is shut for independence day. china, hong kong and taiwan markets out of action for the dragon boat holiday. just a little bit of background, the dragon boat festival falls on may 5th according to china's lunar calendar. and many believe it is to commemorate an ancient patriotic poet. so for over 2,000 years, chinese people just race dragon boats and eat rice dumplings to celebrate this traditional holiday. and i don't know if you have ever tried any of those, i had one this morning. it is really good. >> okay. i'll take your word for it. you have to come over here, bring me one. we'll share. maybe i should go over there. probably a better idea. >> or come to singapore, i'll buy you some. >> should i ever make it to singapore.

thank you, sixuan. i like the dragon boat racing. looks look a bit of fun. on the agenda today in the united states, the treasury department will sell ten-year notes with the results of 1:00 p.m. eastern. weak demand yesterday. 2:00 p.m., the monthly federal budget statement is released. as for earnings, look for results today from h&r block and pvh and men's warehouse as well. we had a number of auctions today in italy. the average yield on the 12-month t bill, .962%, a tick up from .7 on may 10th. auction highest since march. now, we watch the constitutional court processes in germany. the president of the constitutional court says the success of these measures plays no role in deciding whether they're constitutional.

he's also said that the conditionality may help draw the line. this comes after the bundesbank president jens weidmann attacked the ecb's program, giving testimony. he said unlimited bond buying is not within the ecb's mandate. he also claimed the asset buying scheme blurred the lines between monetary and financial policies of individual member states. carolin has been following events for us and joins us for more. what do you make of the comments of voss cooler talking about unconditionality? >> he said it could offer middle ground. middle ground really music in my ears, but i feel the ecb and the bundesbank, they're still miles away on finding a middle ground on the legality of the omt. and may i remind you, the constitutional court here doesn't really have the jurisdiction to rule on eu

matters. that would have to be transferred to the european court of justice in luxembourg. whether or not the constitutional court will do that, that's an entirely different question. so many would argue here over the last couple of days that this is not a good place, not right place to rule on the legality of the omt. but coming back to mr. weidmann's comments, he's very much opposed to the omt. he said it could endanger price stability, could risk the piece of progress and reforms in countries that receive help from omt and may compromise the ecb's independence and credibility. of course, the ecb hit back right away. they say the omt was necessary. it is effective. and it is within the ecb's mandate. back over to you. >> okay. joining us is the chief economist at ubs. as we continue these discussions, what is the important part for the investor here? at the end of the day, if the

ecb needs to act to keep the euro together, that's in germany's interest, isn't it? >> absolutely it is. from an investor point it is we want the -- we want to make further progress to lead the eurozone crisis behind. in this regard we need to make further progress in the institutional overhaul. in europe, we need more aspects of mutualization of debt. this is a long way, but we need to start going into the basic direction and that means important changes for germany, taking more responsibility for europe, also on the financial side. and then, you know, this is what this constitutional court hearing is now all about, not uncontroversial in europe, in germany in particular, of course. we need to move forward here. >> one of the bundesbank's main argument is the risk of inflation if the omt is impleme implemented. this morning we saw an inflation

print of 1.5% for germany. they could deal with higher inflation if it is activated. >> the short-term dynamics are positive. inflation has come lower as you said. the issues here are medium and long-term. there is a significant concern in germany, of course, that as the mandate of the ecb gets expanded and soften up, that over the medium and longer term, the ecb might soften up on inflation. recall that it was always in the german interest to gift ecb as much of the dna of the bundesbank as possible, so also against the background of the german experience with high inflation, you know, at various times in the past. the germans are just a lot more sensitive about these issues, even if they're medium and long-term, not short-term. >> whether germany will allow slightly higher inflation to help out the rest of the

eurozone, i mean, are they going to allow more inflationary policys? >> i think it is obvious if the ecb wants to keep inflation below but close to 2%, it is also obvious that the countries in europe that are stronger from an economic perspective might have over time inflation rates that are slightly above 2%. i think the germans understand this. so, you know, there is i think somewhat -- some flexibility in the concept here. but, of course, you know, it is not in the german interest that inflation will rise a lot further from here and well above 2% over the medium and longer term. >> reinhart, we're looking at the politics of this as ever. we have to get through to the german elections. what might change post elections in germany? are investors waiting, once we get past the elections, we'll see real meaningful progress on things like banking or not?

>> i think that's first of all the -- we published on this at ubs, our most likely scenario is we get a grand coalition in germany. i think the scenario of the current coalition continues and quite likely but noose lit as l as a grand coalition. i think the outlines of german politics will not change drastically. any new government would gain four more years. after september 22nd it could soften up on some of these issues. i think if we were to get a proper change in the government, toward the center left, democrats in the greens, i think that such a coalition might bring the concept of the debt redemption fund back into the debate, where essentially you cut off the public debt that is in excess of 6% of gdp. such a government would be somewhat more tolerant of moves, it was the banking unit in a way

that would cost german taxpayers money. i think all of those who think we will get a massive change in the outlines of german politics after september 22nd might be optimistic. >> thanks. turkish prime ministers expected to meet protesters today amid violence throughout the country. can negotiations succeed? we'll be in istanbul when we come back. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better.

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recap of the hoeadlines, fresh volatile to many currencies. u.s. treasuries near the highest levels in more than a year. kabel deutschland, an offer of an estimated value of 10 billion euros for vodafone. the prime minister is expected to meet with protest leaders today despite continuing clashes across the country. istanbul's taksim square and ankara witnessed new violence with water cancannons, rubber

bullets and tear gas. the u.s. is following events in turkey with concern. these are the latest pictures from taksim square, you can see some of the wreckage left behind from the protests overnight. joining us from istanbul, bureau chief at the wall street journal. the clashes seem to be intensifying as we speak. how much more widespread are the protests becoming? >> the clash intensified last night after the police made its strongest show of force to clear the square in the evening, in the area adjacent to the square, across the center of the city, pockets of protesters clashed with police until the morning time. at the moment, i've been on the square and a calm seems to be reining, police are in control of the area. the metro is closed. it is quiet. this isn't just isolated to

istanbul. istanbul has seen the most intense clashes last night. in ankara, police also seemed to be moving to crack down protesters camped out in a park there, asked to be moved. we'll see whether we see more copycat protests erupting after what happened in istanbul or if the meeting today can diffuse the tensions. he's gone ahead with the meeting. what might come out of that? >> perhaps very little. he's only meeting with one group of protesters, the core group of protesters dismissed as irrelevant or stooges. he's not meaning with the main group at center of the protests. many are saying there is no need to be meeting with the prime minister now, why would they engage? the opposition leader this morning has proposed a cross party meeting, a summit to

diffuse the tensions. the prime minister from his comments yesterday from the actions of the security forces last night doesn't seem to be in a particularly compromising mood. >> so, look, what is the forecast of what happens next? >> that's the $64,000 question. what it seems that the government strategy is to make a distinction between the peaceful protesters and the more radical protesters, images all day yesterday on turkish television of some protesters throwing rocks at police and pitch battles with tear gas wouldn't have necessarily helped their cause, would have undermined their sympathies. that's what the government is banking on. if protests continue to intensify, the rumor is the government will go to the polls and seek early election. even though we're seeing all the ima images, the prime minister still retains a lot of popularity, still retains about 50% or 45% support. so they may want to go to the

polls, especially because the opposition is weak and the opposition has been divided. >> thanks for that. joe parkinson at the wall street journal. we'll take a short break. still to come, the duchess of cambridge is lending a royal seal of approval to the princess cruise megaship. will the former kate middleton's star power help boost the liner? we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need

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♪ all right, just joining us this morning, u.s. futures after the fall we saw yesterday are calling u.s. marks to open up higher this morning. the s&p 500 caught up 10 points. the dow nearly caught up 100 points. gains opened down yesterday, up 91 at the moment. the nasdaq up 18. the dow, of course, was down 116 points during the session. right now we have to pull back the losses at the open. this follows treasury yields a little lower than we were yesterday. yesterday, we were edging up to near 2.3%. five weeks ago, down at 1.6%. treasury yields now, 2.19. italian yields lower.

4.66 during the session yesterday, a six-week high. there are more millionaires and super rich individuals than ever before. this is according to a report from the boston consulting group. when it comes to making it rich, is it all about luck or sheer hard work? robert frank asks some multimillionaires. >> reporter: most of the wealthy believe they make their own luck, largely through hard work. but it turns out it all depends on how you made your millions. a new study asked multimillionaires about the factors that made them rich. hard work first, 98% of the group. followed by education with 90% and then smart investing, being frugal and taking risk. only half of those surveyed credited luck as a factor in their success. but entrepreneurs felt far more lucky. 79% of them said they were lucky. corporate executives, however, said it is mostly hard work and education. why the big difference? well, succeeding as an

entrepreneur depends far more on timing than formal education. but spectrum group says it is also about ego, those with bigger egos tend to be less likely to admit that luck plays a role in their success. or maybe some of those entrepreneurs won the lottery. back to you. >> when it comes to making rich, is it all about luck or sheer hard work. let us now your views, e-mail us worldwide@cnbc.com or tweet us at @cnbcwex or @rosswestgate. the world's biggest bond fund is scaling back exposure to treasuries. will others follow suit? we'll tell you more when we come back. [ male announcer ] this store knows how to handle a saturday crowd.

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this is "worldwide exchange." if you're just joining us, fears of the big central banks will pull away the punch bowl and send emerging market investors for the exits is adding fresh volatility to many currencies. u.s. treasuries neared the highest level in more than a year. high debt levels are increasing the risks for another global downturn in the next three to five years. kabel deutschland, vodafone made an offer, estimated to be valued at around 10 billion euros.

turkey's prime minister is due to meet with protest leaders in a few hours after officials say police action will continue night and day. turkish benchmark bond yields up to the highest level since november. you. following the falls we saw in u.s. equities yesterday, right now futures just trying to claw back most of those losses. s&p 500 currently trading nearly 10 points above fair value, down a percent yesterday, off 16 points. the nasdaq, we're currently trading 18 points above fair value. down a percent yesterday as well. the dow was down 116 points yesterday, currently we are trading up nearly 80 points above fair value on the dow futures as well. european markets, which were off yesterday too have now trended higher. the session highs, it is flat

for the ftse. yields after being elevated yesterday have come back down a little bit this morning. so what are investors to do with this renewed bout of volatility. here is a recap of some of the thoughts of guests who have already been on the channel today. >> i think the fed wants to remain behind the curve. certainly doesn't want to trig are a recovery. i think the market is a little ahead of itself. the bank of japan is pumping liquidity in. >> retail picked up on an immediate basis. we haven't had that full rebalancing yet. >> goes where?

>> yield on spanish government debt is actually less than emerging market debt in dollars. which would you rather lend to on a ten or 20-year basis? i think i would rather lend to emerging market economies at the moment and get 5.2% and get the dollar than lend to the spanish economy 4.6% and get the euro. >> right. and this all follows the ten-year treasury yields. currently trading at 2.19%. nearly 2.3%. five weeks ago, after the april jobs report we were yielding around 1.62%. yields already on the move after this latest jobs report showed a better than expected figure for jobs created. that number caused some to believe maybe the fed might begin pairing back the bond

purchase earlier than expected. the same time, the world's biggest bond fund cut its debt by 2% in may. pimco's total return fund reduced its holding of treasuries to 37%. in the note, fixed income is still preferable to cash. joining us is zane brown at lord abbott. thank you for joining us. good to see you. after we saw yields nearly back up 2.3%, a number of people decided hey, there is value there. >> well, i'm not sure people decided there is a lot of value there or not. but certainly there are limits as to how fast yields can rise before the fed actually takes the opposite point of view and considers expanding qe rather than contracting it as everybody was so fearful of. >> the fed doesn't want that to happen. >> well, absolutely. the fed would rather exert a little bit more control than what seems to have played out

over the last four weeks or so. and over the last four weeks you've seen each week a decline in mortgage applications, not only for new homes, but a decline in applications for refinancing. both of those factors help support economic growth and i think the fed is not yet at a point where it sees, okay, that growth is sustainable, it is really too soon to pull the rug out from underneath housing and out from underneath refinancing. we already have, by the end of may, 30-year mortgages back over 4%. that's got to dampen enthusiasm for both, refinancings and people going out and buying a home. >> so if mortgage rates and treasury yields stay around sort of current levels, are we going to get some moderating comments from ben bernanke, do you think, in the next few days or week? >> i think absolutely. with the ten-year at a 22 to 23

which is where we have been, now they have got to be concerned that, okay, the market has gone far in front of them, rates have gone much higher than what they might expect after they unwound quantitative easing and this dampens economic growth and the prospects for the self-sustaining level that the fed was hoping for. >> what is worrying about this is that clearly investors can't deal with it. we can't deal with the thought that of, you know, sort of fix -- not even being taken away, just talking about the prose picture of it being reduced slightly and we can't deal with it. that's a problem, isn't it? >> well, it certainly is a problem. we seem to have a fair amount of dependence on the fed always being there, supporting us. and now all of a sudden, we find that, okay, we have advanced farther and faster than what the

fed might have expected. and we really essentially we have neutralized fed policy over the last couple of weeks because instead of it being accommodative and promoting economic growth, we have offset it by pushing rates higher and we really have undone the combination that the fed was being successful in terms of pulling mortgage rate down and promoting housing and refinancing. >> also, obviously, the impact we saw in other fixed income areas and the high yield sector being hit on the corporate side as well and investment grade as well. look, one thing that was interesting, we saw tips, yields -- real yields on treasuries went positive the first time in 18 months. it strikes me that's a fairly good thing, if you lend money to this government, you actually get paid. that should be the sign of a normal economy.

everybody else is looking at it and going, you know, it is a panicky thing. >> it is a good thing if you kept all your money back on the sidelines and haven't put any of it in fixed income and now the rates are a little higher, now you can go in and take advantage of rates that are marginally above the level of inflation. but so many people haven't done that. for the last several years, money has gone hand over fist into the fixed income markets, a lot of people have been buying what they call safe havens, which is high quality securities and now they're going to look at their portfolio at the end of the second quarter and say, whoa, what happened to my fixed income. that was my safe part of my portfolio. i've lost money. and so the kind of corollary to now having slightly higher rates is that prices are lower and anybody that had any fixed income, especially high quality fixed income, has not had a pleasant surprise. >> what do they do?

briefly? >> well, the fear would be that they look at their statements and now go the other way, that we start to see the beginnings of the great rotation, but unfortunately probably not likely to go into stocks. it may be out of high quality bonds and back into a reserve of one kind or another, back into money markets. for a lot of people to pull money away from fixed income markets is not going to be a good thing for capital markets. we have two turning points here, one a potential turning point in capital markets and the other a potential turning point in the economy as a result of higher rates pulling away that pillar of economic strength that was a result of low mortgage rates. >> thanks for that. good to see you. zane brown from lord abbott. princess cruise is rolling out the red carpet for royalty today to help launch the latest ship. this is the royal princess, the duchess of cambridge will name the vessel tomorrow. it comes after moodys downgraded

the parent company carnival citing the costa concordia accident and weak demand in europe. the ceo joins us from south hampton on the brand-new ship. thank you very much indeed for joining us. you call this a new generation ship. why is this taking you into new unchartered waters? >> it is a brand-new -- could i hear the question again? i'm having trouble hearing it? >> why do you call this a new generation ship? what is it going to do that others don't? >> it's a prototype ship. it has been designed from scratch, a brand-new hull design. all the interiors were designed from basically from scratch. so as a prototype it is a brand-new design. though it is predicated on the typical princess ship of the past. >> how much do you have to claw back customers after what has

gone on with your parent company carnival? the costa concordia, a series of incidents. how much has that dented demand? >> princess is focused primarily on experienced cruisers. our eye titineraries tend to be longer and global. the impact of the two tragedies that have had less of an impact on princess than other cruise lines that focus on new to cruising passengers. our typical cruise is about ten nights long. it appeals to a more experienced cruiser. and they tend to be more resilient. they understand cruising is safe and a great value as a vacation. so they continue to cruise with us. >> and besides that, you've got weak demand in europe as well. how do you see that plan out? >> clearly europe, the economy throughout europe are an issue. one of the benefits for princess

is we serve passengers from around the globe. we're primarily on north american based cruise company. we source passengers from 70 different countries. we're large here in the uk. but also in australia, we're the largest cruise company in australia. so our diversification of sourcing has been very important to us during this last five years when economies around the world have struggled. particularly europe today. >> yeah. you mentioned you're big in the uk. you've got the duchess of cambridge who is going to officially launch the ship. that gets you a lot of headlines, right? why is that so important? >> well, being a cruise company called princess, it seems very appropriate to have a princess name our newest ship. but cheerily she is -- we're terribly honored that she -- the duchess of cambridge accepted our invitation. she's clearly the most famous woman in the world in many ways,

she's a great ambassador for great britain and great britain is very important market for us. we're traditionally a british company and so all of the stars align and we think it is a perfect fit. we're very excited that she's been gracious enough to agree to name our ship. >> all right. thank so much for joining us, the ceo of princess cruises on his new ship in south hampton. we'll take a short break. still to come on cnbc, we'll track one u.s. retailer that has seen its stock rise by leaps and bounds in recent years. how is dsw stepping it up on the comeback trail? [ male announcer ] citi is over 200 years old. in that time there've been some good days. and some difficult ones. but, through it all we've persevered, supporting some of the biggest ideas in modern history.

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prime minister tayyip erdogan. a trying to seek a constructive exchange and peaceful dialogue. these are the pictures this morning, live as you can see, which shows you some of the devastation left behind after those pitched battles. keep your eyes on that. today we're also keepingtrackin company on the comeback trail. dsw has seen its share price run up almost a thousand percent. jackie has more for us in the states. hi, jackie. >> as they say, if you discount it, they will come. let me tell you a little bit more behind this turn around strategy. ceo mike mcdonald, he's the one that implemented a lot of changes when he took the helm in 2009 that made this company successful. and that was a time when the

economy was really struggling. several of their key strategies that have been successful include a focus on operating efficiencies, marketing, and also breaking ground on new stores. they have 377 national locates, planning for almost 400 by the end of the year. driving future growth, that's what we're always worried about. they're trying to enhance the customer experience through what dsw calls the omni channel, making shopping seamless between in store, onlynn and mobile platforms. the company is experimenting with smaller stores and growing its e-commerce business as well. as always, when consumers are involved, there are risks. >> i think the things that worry consumers are things like higher taxes, higher gas prices, particularly in the midwest. i think early in the year they worried about some of the national budget concerns, the

sequester, all of that. i think that's basically behind us for the time being. >> most analysts that cover the stock are rating it a buy. some are projecting long-term earnings growth at 15% to 20%. avondale, a company that covers dsw, their price target, $83. i was in the store yesterday, that's where we shot a lot of the pictures you saw, and needless to say, we did actually see a lot of those deep discounts on the shelves and what i was most impressed by is how they were expanding their product category. they have accessories, purses, so a little bit of everything for everyone and they had a nice men's department downstairs. >> did they? that's convenient. i don't mind -- you decide on something, jackie, and let me know, okay? >> anytime. >> thanks for that, jackie. a recap of the headlines. emerging market investors heading for the exit adding fresh volatility to many currencies. treasuries near the highest

levels in over a year. and kabel deutschland vrallies after vodafone makes them an offer of nearly 10 billion euros. other stories we're following today as well. jamie dimon got a bit feisty on tuesday. the ceo defended the disclosures the bank made last year about the london whale trading losses. he repeated his earlier apologies for the incident that he mistakenly called a tempest in a teapot one month before the company disclosed the losses last may. he insists executives had properly described the situation as they knew it at the time. >> i sat in those meetings, myself, and said make believe the pope is over here, and the chairman of the security is over here what is the right thing to do and that's what we are going to do. a million people second guessing what happened, but we did everything we thought was the

right thing to do. there was no hiding. there was no lying. there was no [ bleep ], period. >> none of that. dimon says he didn't deliberately hold back information contrary to some reports. u.s. regulators give seven banks two years, the requirement, part of the dodd frank financial reform law keeps some risky trading activity out of firms that receive government support such as deposited insurance or access to the fed's discount window. facebook ceo mark zuckerberg met with shareholders on tuesday. many were not happy. he took several questions about the company's stock price, which is now around 40% below last year's ipo of $38 a share. zuckerberg acknowledged in his opening remarks he's frustrated but defended facebook's business model. he said there are signs of strength, especially mobile, which now accounts for around 30% of ad revenue. facebook closed down 1.2%

yesterday. and microsoft, google and facebook all calling on the u.s. government for more transparency on national security requests. the tech giants are trying to distance themselves from reports that portray them as willing partners in supplying mass amounts of data to the nsa's top secret surveillance program. the american civil liberties union is suing the obama administration claiming the collection of u.s. phone records is unconstitutional. the suit targets the head of the nsa, fbi, justice department and pentagon. short break. still to come, stocks getting pushed and pulled by growing concerns about the fed and other central banks and what they will do with their stimulus efforts. we'll try to make some sense of it ahead of today's opening when we come back. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s.

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right after triple digit loss for the dow yesterday, right now futures are pointing to about an 80-point gain at the open. the nasdaq is currently trading nearly 50 points above fair value. the s&p at the moment is around nine points above fair value. joining us is ken cayman, good to see you. we got a bit of a jitter as treasury yields hit towards 2.3% yesterday. yields on -- real yields on treasury going positive for the first time in 18 months. are we overdoing things? >> yeah, absolutely. i don't know why people are so afraid of rising interest rates. they actually will probably be good for mash rkets over time. if you look at the historical basis, pe multiples tend to expand as interest rates approach the 3% to 4% rate on a real rate of return basis, on long-term rates. as you see things below 1 and

the pe of a little under 15% on forward s&p, that could grow to almost 18% as we get higher. so people shouldn't be scared of that because that kind of implies maybe 10% to 12% annual move in equities and the s&p 500 over the next two to three years. it is probably not something to be scared of. >> but it does worry me, ken, we can't even the thought that the effects of liquidity may be taken or just reducing it seems to send us in a bit of a skittish behavior. can't deal with yields rising. that, to me, suggests this is not a fundamentally based market. >> well, it certainly doesn't speak well for fixed income holders who are going to basically give back any meager yield they have in fixed income products as the prices on those bonds -- the fixed income portfolios go down. but i think that you really --

this idea that qe2 will be tapered off, for people to be that afraid of it is kind of crazy to me because it is the most telegraphed thing we had in the market in a decade. we know it is coming. and the analogy of a drug addiction is so overused, but the reality is we have become addicted to it. like any addict, once you face the problem and start getting off of it, you realize life isn't so bad and maybe even better. we need to get to that spot and we'll get there because the economies are getting better, which is ultimately very bullish for investors long-term. >> ken, we're out of time. good to see you. thank you for joining us. ken cayman. that is it for today's show. up next, "squawk box" and the countdown to the opening markets. whatever happens, i hope you have a profitable day. [ male announcer ] here's a word you should keep in mind. unbiased. some brokerage firms are. but way too many aren't. why? because selling their funds makes them more money.

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good morning, today's top stories, anxious global markets and nikkei slipping below the 13,000 mark before rebounding to close down just slightly. europe seeing some green to start the session. u.s. equity futures pointing to a higher open. here at home, it is wednesday, june 12th, 2013. and "squawk box" starts right now. good morning, welcome to "squawk box" on cnbc. i'm andrew ross sorkin with joe kernen. we'll get to becky quick in a little bit. she's got great guests we should

tell you about that she'll have on the program, mark andreissen and meg whitman. we'll look forward to those conversations a little later. first, let's get you up to speed on the morning's top stories. we begin with the unrest in turkey. riot police raided a protest camp in istanbul after days of anti-government protests, police moving into taksim square using tear gas and water to clear demonstrations. we'll go to richard engel in a little bit, but we'll do the markets first. >> okay. a little rocky. >> a little rocky. >> let's check on the markets this morning. i guess it is a