you're watching "worldwide exchange." i'm ross westgate. make sure the voices of all egyptians are heard. u.s. president obama urges president morsi to respond to demonstrations through a political process as egypt's foreign minister resigns. athens is three days to get its house in order. reuters reports eu officials aren't happy with the way greek reforms are progress, setting a deadline to unlock the next chunk of aid. portugal's finance minister quits as he admits he lost the public support for the austerity

plan. monty threatens to withdrawal from the coalition amidst the slow pace of reforms. all right, we'll kick off with egypt. the president of the country vowed to steer his own course despite being given 48 hours by the army to reach an agreement with liberal opposition leaders. mohamed morsi says the statement by the military caused confusion and he will pursue his own negotiations with political rivals. in a statement on his facebook page, the president said he had spoken to barack obama telling him egypt was moving forward to a peaceful, democratic transition. the same time military helicopters training the national flag lifted the spirits of the protesters. the organizers of the mass demonstrations are reported to have ruled out any negotiations with the incumbent, and are drawing up plans to talk to the

army. joining us with the latest is yous yousuf. hi, yousuf. >> it is good you mentioned what happened yesterday overnight. i was in tahrir square and the atmosphere was incredible. people singing, people chanting, people underscoring that the people and the army are one. also, calling on president mohamed morsi to step down. they were celebrating the army statement that came out late afternoon local time. again, the 48-hour window for politicians to figure and sort things out. otherwise they would put forward a plan. at this point we're not sure and it is unclear what that plan would look like. the opposition has, of course, welcomed the latest development as a sign that their demands are legitimate some way or another and supporters, islamist parties of the president, have, of course, expressed concern that this may see a return of the army to governing the country. as we saw in the transition

period after january of 2011. keep in mind that the reply from the presidency which came nine hours later at 2:00 a.m. caught people off guard but made it clear that the presidency was not consulted about the statement from the army and shows you the disparity between the two entities and the potential of an escalation, because everybody is basically digging their heels into the ground and we're not seeing the kind of constructive dialogue that president obama and others domestically are calling for as well. you can see some of the local papers this morning, this is a government paper, again, a 48-hour warning is the headline they're going with. and showing the millions with hundreds of thousands in tahrir and millions across the country that were protesting and singing. those army helicopters were flying across. the whole crowd would go wild, ross. it is incredible to be part of the experience and to witness the atmosphere. keep a close eye on the markets even the egyptian town.

a lot of currency pressures as we go through the day and see how it all evolves on the political scene. >> yeah. it's unbelievable story. yousuf, thank you very much, we'll be back. he'll be with us again in the next hour. also coming up, m&a being left on the sidelines of the broader market rebound despite some blockbuster deals. when will the recovery kick in? president obama's playing down allegations of nsa spying on eu officer but we'll hear from one paris-based think tank who thinks the damage is already done. and washington for other side of the story. we'll have the debate at 11:30 ct. also with u.s. auto sales set for the best month in nearly six year, we'll have one analyst from detroit's big three holding their own against global rivals.

that's at 11:45 ct. let's bring you up to speed with the global markets report. as you can see, on the dow jones stock 600, ratio of 7-2. we got worries about medicare in the united states. we're on the session low. european stocks, ftse 100 up 1.5% in the first trading day of the second half. now down half of 1%. more upbeat news from the british chambers of commerce. they say service exports up 36%, the high since it began in 1989. xetra dax down. bond yields in spain, keep our eyes on that. high today. 4.62%, away from the 5% mark we hit last week. treasury yields low today. 2.45%.

we did have better data back above 50. two key bits of data this week to look at on the tapering discussion. one was the ism, manufacturing yesterday over the 50 level and the employment report on friday. debt yields lower 2.41%. on the currency markets, dollar index up near four-week highs. dollar yen 99.64. also up near four-week highs as well. yesterday, 99.55. aussie dollar rebounded from its three-year low. 92.05 we're talking about australia a little later. eurodollar, where we were yesterday, just over 1.30 level. that's the european trade right now. >> it is a mostly positive session in asia today. chinese investors were a bit disappointed that the pboc only injected a small amount of 36 billion uen into the system.

the hang seng lost after coming back from a long weekend. but solid data overshadowed worries surrounding china. the australian market led the market higher by 2.6% today. while the rpa stood pat with its policy as expected, the resources stocks outperformed tracking higher commodity prices. iron ore, metals surged almost 6% today and gold miner evolution soared. hong kong's energy majors enjoyed a nice rally. petro china surged almost 7% on reports that starting next week beijing will hike the price of that local distributors pay for nonresidential gas by 15%. as a result, hsbc raised the ratings by two notches to overweight. datang power jumped over 9% today after usb analysts say the price hike will benefit the gas projects.

moving over to japan at the nikkei 225 ended above the 14,000 level for the first time since late may. the strong u.s. data sent the dollar yen pair high to trade around 19, 960 at the moment. back to you. >> all right, thanks for that. that's today's view from singapore. more to come. first, the australian dollar more than 10% of its value this year, but the central's bank still believes the currency is uncomfortably high and could fall further. if so, the rba says it would help australia's economy rebalance. that comment follows the central bank's decision to hold its cash rate at a record low of 2.75%. it was expected more rate cuts if needed if inflation stays tame. very unloved currency, the aussie. will it remain so? >> i think so. you mentioned valuation there

briefly. one of the things that really stands out about the aussie dollar is that even though we had a very large move so far year to date, still the most expensive currency in a wide variety of measures. if you take a multiyear look at it, it still has room to fall further. >> down 13% against the dollar since april. besides what the rba is doing, how much of the dollar's move is predicated on chinese data? >> actually we think one factor often overlooked is the effect of japanese capital flows in driving the aussie lower. australia's typically been a popular investment destination for japanese investors. as part of the repatriation flow we have seen following the japanese election, you know, every week we see it in the capital flow data, japanese investors bringing money back home, i think that's had actually a disproportionate impact on the australian dollar. >> yeah. just talking about -- you mentioned dollar. there is this perception that

flows will eventually -- will eventually get japanese investors sending money out of japan. i wonder if that is rather flawed in the sense that we might get unwinding of overseas assets. in japan they want yield. i wonder if they'll sell foreign assets first to provide the cash for that rather than -- and reinvest in the nikkei on the balance they can't sell domestic bonds. >> one thing we are seeing is a huge surge in interest in domestic equities. and track the quite detailed capital flows data, they definitely show that. but the bigger question for dollar yen is even if the money does flow abroad and there is no guarantee it will, but if and whether it does flow abroad it more likely to do so on a hedge basis. so the u.s. investment wouldn't have a currency counterpart. that's not the case for

australia and that's why we see the kind of currency impact we have seen at the moment. >> stay there. we'll come back to you in a few moments, talk about the euro. the freshly reinstated kevin rudd may be winning over voters, but his increased popularity raising the prospect of political uncertainty which might be bad for stocks. also on our website, in the latest sign the market sentiments is fading, goldman sachs ended its buy recommendation on stocks. find out why and where the dang says you should put your money instead. that's on cnbc.com. and you can follow us on twitter at cnbcworld. reports say communist party officials sent out a directist last week earthing media to avoid hype and to explain that chinese markets have plenty of liquidity in another sign of

beijing sensitivity. the wall street journal says a senior official ordered a probe into a false media report which said the bank of china defaulted on an interbank loan back in june. senior eurozone officials say greece is being given a 72 hour deadline to satisfy lenders bailout conditions. reuters says the indebted country to lose its next charge of aid if they don't reform its public sector. the deadline has been set ahead of next monday's euro group meeting. portugal's new finance minister must continue the tempo of reforms, this is a message from the european economics commissioner. in a statement, he praised the former finance minister for his valuable work. gaspar resigned from the portuguese government yesterday amidst criticism of his handling of the economy and what he called eroding public support for austerity.

the italian prime minister called a government meeting on thursday amidst mario monti. he is frustrated with the slow pace reef forms writing on his facebook page that without a change in direction, co-not continue to support the government. meanwhile, italy posted a state sector budget surplus of 14.1 billion euros in june compared to 5.6 billion euros at the same time last year. this is on the back of cost-cutting and increase in tax revenues. despite the european stories, the euro has been much more direct by what happens with the fed and chinese growth worries. >> absolutely. i mean, like you said, the stories do matter for the long-term. they matter for trend growth in italy, for example. a slow pace of structural reform means lower trend growth. but it is very hard to turn that

into a short-term currency trade. most investors were standing back from eurodollar at the moment. >> with what we saw clearly in the last couple of weeks was with the fed comments was, you know, preripheral yields rising any concern in euro traders that if u.s. yields continue to back up, the ecb will lose control of peripheral yields? >> i think the ecb will be very conscious of that and conscious of the danger that it ends up importing policy from the u.s. which is clearly something it doesn't want. financial conditions and economic conditions very different in the eurozone. and i do think that we'll see that as soon as this week after the ecb meeting and draghi's press conference, very likely to hear some concerted talking down of short-term rates in europe and much more indication that they could do more in the future. >> yeah. i mean, it will be interesting to see, of course, what happens with the policy. what do you think the stare is

going to be for the ecb over the next few meetings? >> they keep saying they have a very open mind. clearly the hurdle is high. but they're not going to rule that out, keep that on the table. they can also do much more in the way of forward guidance. that's something traditionally the ecb has steered well clear of. but in recent speeches, we are hearing a little more in the way of guidance from ecb officials, telling us rates are going to remain low as long as necessary and so on. and that's something that could perhaps potentially be formalized, but very open, i think, in terms of what they will consider. >> okay. elsa, good to see you. thank you for that. merger activity is down, but not out in first half of 2013. the latest research from thee logic shows the numbers of deals was the fewest since 2004. but global m&a ticked up from

last year. the u.s. was the only region to post a year on year increase to just over $595 billion. coming up next, the head of goldman sachs will join us in studios. find out why we aren't seeing more handshaking across the table. i want to make things more secure.

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now, brambles is reviving plans to off load $2 billion stake if a data management business. the australian pellet maker hopes to list it at the italian stock exchange. the company will be able to focus on growth at its core business. they will vote at the year end and the ipo is expected to take place fairly soon after. their shares finished nearly 2% higher on the news. onx pharmaceuticals put itself up for sale over the weekend and rejected amgen's offer for being too low. as novartis faces significant revenue losses from expired patents, the takeover would give the cancer drug giant access to new medicines.

big m&a deals are back on the table with telecoms getting people talking. when we drill down behind the scenes, the latest research suggests buyers are not buoyed by market rallies and have cold feet over pricing. joining us now exclusively and in the studio is gregg lemkau, co-head of global mergers and acquisitions at goldman sachs. good to see you. >> good to see you. >> thank you for coming in. aside from the big headline deals, why is activity so low when ostensibly equity market is so healthy? >> we have seen1.$1.25 million announced year to date. it is a run rate consistent with 2.5 trillion which we saw in

2011, and 2012. not an insignificant amount of activity but not the recovery one would expect given where the markets have gone. i think what is particularly frustrating is the conditions that should be driving m&a are prevalent. we have low cost of capital, significant availability of that capital, record cash balances on corporate balance sheets and then you've got relatively limited organic growth opportunities. you should think we would be in this great m & a markets but it has been sluggish. >> what is holding investors back? one thing clear here is that pa investors are rewarding companies for returning cash to them. in terms of either share buybacks or dividend. is that preventing them from pursuing m&a. >> share holders have been rewarding m&a as well. but the stock market reaction of buyers in most of the big deals over the past year have been positive. shareholders want to see companies invest in the capital and growth, but what i think is holding it back is there is

still a prevailing sentiment of caution among ceos and boards. and there is an element of execution risk around m&a that is different than status quo and that's holding things back. you overlay on top of that a series of relatively high profile actions that are announced and have not gotten done. it adds another layer of risk aversion to the next ceo who wants to be bold and do something strategic. >> and, gregg, you're talking about ceo lack of confidence. do you think, and do you think that's because they think that equities are overvalued? do you think it is that deals that haven't been completely on message have failed? i'm thinking things like bae, eads, g4s and iss, things not completely in strategy have seemed to have fallen by the way side. >> i think the confidence is building. so the move to do big strategic

deals is better now in the board room than at any point in the last three or four years. but it is trying to get the transactions done and get them over the finish line that is a little bit more difficult. >> you talk about the execution risks here. and why are things harder just to get stuff done? >> unlike a financing transaction where if you want to raise capital in the capital market, you can hit the window relatively quickly. the m&a transaction takes longer. what we haven't seen over the last handful of years is a period of sustained stability in the markets. so every couple of months there is something. fiscal cliff, greece, cyprus and sitting around the negotiating table and something big like that happens and shocks the markets, everyone steps back and puts their pencils down. >> how much of a gap is there between buyers and sellers pricing?

because sellers will look at the stock market evaluations and buyers will think this is a bit of frothing. is there a standoff on prices? >> it is. not surprisingly i think the pe ratios are actually still below their historical averages. en a value basis, values look relatively good. stock prices have rallied and buyers are a bit cautious as a result. the interesting thing is as you know, you look at m&a volumes, they track quite closely other than the past couple of years toward equity markets. the conventional wisdom of buy low, sell high isn't there. people buy high more frequently but it is more driven by the confidence. >> a confidence factor. >> absolutely. >> you speak to chief executives, what do they -- i spoke to some of your rivals yesterday and they said the mood is just so fragile as you said because it is driven instead of by the equity values that we're seeing, but by the macro economic outlook. what do you tell those chief executives or how do you get deals going? >> it is interesting. i think the companies that are

best positioned and are leaders in their industry are wanting to do things. as we made the comment earlier, i think the shareholders want them to do things as well. it is trying to get their boards alined, trying to get counterparties alined and get transactions done. from that point and time and -- >> do they just want dividend stream now? >> i think they want growth. if they don't get growth they want their capital back. >> and in terms of u.s. saying some deals have fallen by the way side, not just mergers, but a lot of the take privates here in the uk things like cbc and bet fair or you had the borealis deal, have that left a bitter taste in the mouth of players or infrastructure players who have a wall of money but can't find a home for it. >> i don't know if it left the bitter taste but they have significant amounts of capital to put to work in terms of

equity they raised. so you would think this would be a great time to put capital to work partly because the equity values have run, it is a little difficult. you find a target they want to do a transaction with, it is harder than ever to get those done. >> are there more sellers than buyers at the moment? >> i think there is. when you speak with private equity, they'll tell you they're balanced because they're in the market all the time f y. if you look at the past six or seven years, they went through a period where they couldn't exit and so the private equity firms are more -- have been more focused on exiting over the past couple of years and in a lot of cases through the equity markets have recovered because you've got a close to guarantee of execution. don't need a counterparty, just the market to be there. >> okay. great to have you on. stick around. plenty more to come from you as well. if you have any questions, e-mail us at worldwide@cnbc.com. want to get away over the fourth of july holiday but don't want

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that's not greta. save up to $500 on the tempur-ergo collection and get your best sleep possible. visit tempurpedic.com to find a store near you. recap of the headlines from around the world. make sure the voices of all egyptians are heard. u.s. president obama urges president morsi to respond to demonstrations through a political process. this as egypt's foreign minister resigns. portugal's finance minister quits as he admits he lost the public support for his austerity plan. italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. across the world's biggest pension plan in japan posted its

highest annual profit ever. $112 billion. this is just as the government pushes for reform overall in search of higher returns. bank of england had better than expected data on mortgage approvals and, of course, the pmi, manufacturing pmi. construction up for the second month in a row according to some, the highest level since may of last year, 50.8 in may, below the forecast of 51.1 in the poll. but nonetheless, a good figure. we have heard from house builders who have come in with better numbers as well. european equities are down today. we had a bounce yesterday, the ftse up 1.5%. it is flatter or down today around half of 1%, a third of a percent.

bond markets, italian yields, spanish yields a little lower, 4.63%. gill yields long with treasuries. currency markets, dollar index up four week highs. dollar yen near a four week high as well, around 99.60 mark on the dollar yen. and 99.68 to be precise. and aussie dollar near the three-year low we hit yesterday. bounced off that and come back as well. gregg lemkau at goldman sachs. gregg, just we talk about these -- the qe and japan. just talk about -- is there any impact from japanese monetary policy at the moment and m&a you're seeing? >> i don't think it had a big impact on activity. given the strength of the yen and some overall conditions in japan, we saw the biggest increase in outbound m&a from

japan that we had in a long time, probably 15 or 20 years. so japan, corporate japan had reawakened and was looking for growth outside of its borders. qe will continue to help that. the flip side of qe pulled down the yen. some of the advantage they have from the currency perspective has gone away. >> clearly they were behind the -- softbank launched that, when the yen was about as at its highest point. >> and wisely locked in the exchange ratio. >> key thing to do. i was in paris. i was in paris last week at a conference with china entrepreneurs club and interesting to talk to private equity guys, talk about private equity is desperate kind of sell i ing. they're looking for chinese to be buyers of assets. do you see chinese as becoming bigger players in global m&a.

>> i think they have become bigger than they have been and the trend has gone up. there is a significant amount of capital in kline china. it has been focused to the most strategic industries. you'll continue to see that. i think we would have expected greater pickup in chinese outbound m&a activity post the transition in government last year which slowed things down. but we have seen a few deals, but not a big pickup from china either. >> what is the global picture, gregg? you're based in the uk. but europe, volumes have been down considerably. is that a different picture in the us us? >> it is. the u.s. is the one bright spot. volumes in the u.s. are up 27% over the same point last year. it is largely driven by the confidence we talked about. the economy feels better in the u.s., seems like it is headed in the right direction and ceos and boards have more confidence to be proactive and explore growth strategy via strategic activity.

>> are you going to see that coming to europe? we have seen lots of constitutional money flow into european equities. is that going to translate on a corporate level? will there be more liberty globals? >> i think there will be more strategic activity in europe as the economy gets better. i don't think we need to see a big pickup in growth but a period of stability. from outside of europe, people are worried about continued shocks and what will happen with the euro and any given country to which they invest. if we can see that stability, we'll see more capital coming into europe. >> what about sectors? you made your name in tech sector. we have seen a lot of telecoms and tech deals. is that one of the bright spots and why? >> the biggest activity this year is tech, media, telecom. we have seen a good amount of activity in health care and some in consumer. if you look across those broad sectors, the thing you'll see in common is the biggest players best positioned and pursuing this strategic activity are those that businesses perform

quite well and have significant cash balances. it is also an industry -- each industry where consolidators had a track record of delivering synergy. >> vodafone, deutsche liberty, softbank and sprint. why so much activity in this cable telecom space? >> cable telecom has been driven by not a lot of growth in those businesses. so the way to drive the bottom line is to drive consolidation. there has been a significant track record with companies that bought and liberty brought up, consolidated, and continue to do that through m&a. you see that with vodafone. softbank is different. not a lot of significant overlap but some synergies. >> do you -- what is the trick to -- used to be, right, m&a used to be the adviser.

you go to companies and say, how about this? this is a great idea. is that still what you do? how much are you strategizing for clients still? >> i think the key to being successful in m&a is to be a trusted adviser to your client. you want to be close to the ceo, the board, the decisionmakers and give them strategicthe advit to do a deal. >> how often do you tell ceos not to do a deal? >> more frequent than you think. it builds the relationship with the client a lot better because they're trusting your advice as being impartial. over the long-term, if you build a career as a trusted adviser, that's what you got to do. >> is it more difficult to do that when m&a is so lumpy? do you ever regret? have you ever regretted telling -- >> no, i think your advice may

not have always been right, but giving the right advice on what makes sense for the company and the shareholders will always pay off in the long run. >> and how complex now are agreements becoming in terms of special clauses or break fees or putting -- in case things go wrong, how much more insurance is now built into -- >> they always had clauses in transactions, given the increased number or higher profile nature of a lot of transactions falling apart, there is a lot more scrutiny than there ever has been. >> lawyers are doing better. >> lawyers working hard. >> i don't know if we want lawyers working harder. >> where do we see growth? the next kind of year, 18 months, where do you see the sectors that will have deals will see growth? vodafone, verizon, is the heavily trailed deals or something unexpected? >> i think we'll continue to see activity in the sectors that we have been seeing. the companies that have -- the

industries that have companies positioned with lots of capital will have growth. i think the big companies are digesting that, that may take a while to work through. financial institutions is still waiting for the regulatory framework to get resolved before there will be any major strategic activity. >> a while for that. >> could be a while. >> i don't know if it is fun being a banker anymore, i'm off to see ian hanan, the jpmorgan chairman of ecm in court today after he was accused by the regulators here in the uk of market abuse. so that's today. do you think it is still fun to be a banker, gregg? >> i think it is still fun to be a banker. it is more fun to be a banker in a bull market with a lot of transactions to do, but still quite an enjoyable experience. >> good to have you on today. thanks, gregg. nice to see you. gregg lemkau, good, okay, i was just -- >> well done. >> gregg lemkau, co-head of

globaler mer emergers and acqui at goldman sachs. other stuff we're following, zynga don mattrick is the new ceo. mark pincus will remain as chairman. pincus who controls 61% of zynga's voting shares recruited mattrick from microsoft. mattrick, who just unveiled the new xbox one console at the conference last month had been seen as a front-runner at the top spot where he previously worked for 15 years. zynga was up 3% in after hours. disney extended a contract another 16 months through 2016, a year later than originally planned. iger was expected to step down in 2015 and as chairman a year later. that puts off the succession questions a bit longer. iger was never named a president or chief operating officer during his tenure. iger has made his mark through the major acquisitions of pixar

and lukas film. disney shares up since he took over, versus 34% through the s&p 500. the winklevoss twins who sued facebook founder mark zuckerberg for allegedly stealing their website idea have a new venture. exposure to the digital currency known as bitcoin. the winklevoss bitcoin trust is expected to act like an etf with each share worth a fraction of a bitcoin. the currency is touted as the future of money and criticized by authorities for a lack of regulation. we'll take a short break. still to come, regulation weighing on the minds and work loads of almost all global financial services executives. we'll discuss what it means for firms business models when we come back.

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we have been asking how much would you pay to avoid holiday traffic? keep your responses coming. e-mail us at worldwide@cnbc.com, tweet at @cnbcwex or directly at @rosswestgate. the world's biggest pension fund has posted $112 billion annual investment profit, that's the biggest ever. the 10.2% return dwarfs last year's gain of 2.3%. japan's government wants new investing guidelines to keep yields high. the economics minister says he'll make a panel for just that. they're looking into whether the funds should be more independent and put more work into equities and alternative investments. honda and gm teaming up on

the environmental technology to cut costs and accelerate development. now more from tokyo. >> honda and general motors are hoping to see their fuel cell cars on the road by 2020. by mass producing the green vehicles together, a selling price for the model would be around $50,000. fuel cell cars can travel longer with less charging time compared with -- compared to electric vehicles so it is seen as one of the most promising next generation cars. many global carmakers have formed partnerships to develop environmentally friendly cars. since tie-ups cut costs and accelerate development. for example, toyota and bmw are doubling up on fuel cell cars. nissan teamed up with ford. this marks a shift in strategy for the japanese carmakers. honda and gm will hold a news

conference in new york later today. back to you, ross. >> thanks for that. general motors is expected to deliver more good news when u.s. auto sales are released for june. they're set for their best month since 2007 and will preview the report in an hour from now. a look at what is on the agenda in asia. the world's second biggest ipo this year set to list in tokyo. could be a key test for the japanese market. and pmi data out of china. and australia releases its may retail sales. roth chart is set to be named as adviser in the royal bank of scotland. it suggests the investment bank beat competition from deutsche bank and merrill lynch and its role could be announced this week. the fine for not disclosing stake building rival comes on

the back of an investigation launched in 2010 after it was revealed they built a 71% stake in the business. they are expected to challenge the fine at the paris court of appeal. and the fed holds an open meeting to finalize the long awaited plans to boost u.s. banks required capital. officials say the new regulations are specifically designed as a incentive for banks to be smaller or less profitable for them to be bigger. possible the fed could adopt tough capital requirements and outline as some lawmakers have advocated. taking on the topic of red tape, a survey has found that nine out of ten cfos and chief operating officers in global finance services firms are struggling to manage the wave of new regulation. nia lone joins us now. thank you for coming in. we know regulations have

increased, having a meaningful impact on productivity. >> yeah, absolutely. we just commissioned a piece of research that surveyed over a thousand financial services executives across the globe. three key challenges came out of that piece of research. one, how companies are -- how they're managing costs and 88% of the financial services executives surveyed are really finding it challenging to manage this wave of regulations coming through at the moment. >> how are they dealing with it? >> the big change that they're seeing is how they manage the relationships with auditors, how they meet deadlines and manage the costs. and the fourth piece is how they manage the talent and acquire the talent to implement the change. >> i speak to a lot of companies. a lot of companies list getting the right talent as the most difficult thing. >> a lot of regulations are new.

finding a candidate or employees to implement this time of change before is fairly hard. the survey found that one in three executives plan on hiring and adding interim staff to help through the change. one in four are planning on hiring additional permanent head -- >> how does this impact the confidence then about the business in the future? >> i think what the banks are realizing is they got to have prudent controls in place. it is now prerequisite for business. ensuring they have the processes and controls, and adequate oversights to satisfy the regulators is sort of really key. that's when a lot of focus has been on. >> with the change, uk has a change in regulator as well. and as always there is this period where you don't quite know, as you switch regulators, don't quite know how the game is changing. >> yeah. we do see a big demand for candidates that can manage that

relationship, candidates that might have previously worked within a regulator body especially in the u.s., seeing a lot of demand for that. managing that relationship is key for banks. >> is the career path here for people here, has done work for regulator and make a big switch back over -- >> we see it the other way too. i think that's five or six years ago careers within compliance, you know, weren't as sought after as they were today. very, very interesting place to work, cutting edge of change, so the career paths of people in this line of work is significantly better than it used to be. >> picked up the paper this morning, headlines about money laundering in the uk, still got a lot more to do. does your survey highlight aspects of that? >> absolutely. anti-money laund nerg the top three of challenges that executives are facing. we're seeing an unpress dent demand for candidates that can implement anti-money laundering,

risk assessments, complied risk assessments, candidates that can audit anti-money functions are in demand at this point in time. >> you may see external audits as well. they get a lot of flack. i suppose the interesting thing here is how -- are they only as good as the information their client gives them? >> yeah. you're managing that relationship with a key challenge. and there are often conflicts of interest. auditors will come in and will be prohibited from implementing some of the change they would like to implement and needs to be done. i think there is a lot more talk about the standards that they should be implementing in their day to day work as well. >> neil, thank you for joining us. neil owen, financial services. thank you. britain's economic government is gaining strength in the second quarter as business confidence continues to

improve and exports growth. this according to the business chambers of commerce. any thoughts on that, e-mail us, worldwide@cnbc.com. we have been following the latest travails of edward snowden, stuck in moscow. he requested asylum, but the politic has not been accepted. wikileaks says snowden applied for asylum in 19 countries including cuba, venezuela and russia. currently holed up in moscow's airport. >> reporter: a new week brings a new intelligence embarrassment for the united states of america. this one that president barack obama had to address during a trip to africa. the revelation came over the weekend in germany revealing that the united states has allegedly bugged eu offices in

the united states and cracked into eu communications equipment in europe. the president today in africa said he'll look into that allegation and get the specifics of the european governments, but offered a broad defense of spying in general. >> i guarantee you that in european capitals, there are people who are interested in if not what i had for breakfast, at least what my talking points might be, should i end up meeting with their leaders. that's how intelligence services operate. >> meanwhile, in russia, president vladimir putin said he's not going to extradite edward snowden, the admitted nsa leaker. he said he would consent to keeping snowden in russia on one condition. he said if he wants to stay here there is one condition. he must stop his work in harming our american partners, as strange as that sounds coming from my lips. that's vladimir putin speaking today. he also said that snowden is not a russian agent, and he said

that snowden, he doesn't think, is going to stop revealing information that's harmful to the united states. he compared snowden to a dissident or a political applicant for asylum in other countries as we have seen in the past. continuing embarrassment for the united states in an unfolding situation here around the world. australia joining a growing course of outrage over allegations the nsa bugged the buildings in washington, d.c. and elsewhere. they have summoned the u.s. ambassador for talks in vienna a day after germany took the same course of action. the french president saying it could threaten a trade deal. also calling for a common eu position on the u.s. spying claims. saying we cannot accept the kind of behavior between partners and allies. we ask that it immediately stops. as we heard, the president played down speculation of spying on brussels.

speaking from tanzania, he said the u.s. agencies were behaving in the same way that other intelligence agencies do around the world. question is, is the president right to downplay the report or could the spying allegations have lasting consequences on eu/u.s. trade relations? we'll debate that question with a panel of experts from paris and washington, d.c. that at 11:30 cet. as we head to the second hour, european equities today have been trending lower. the ftse 100 up 1.5% yesterday. now up a quarter. bond yields if anything a little lower or steady. worth pointing out. we did have construction six out of the uk in this half hour which showed once again slightly better data, on top of the manufacturing data and, of course, mortgage approvals at the highest since 2009 yesterday

according to the bank of england. that's not -- the dollar index is currently up near 4-week highs. we're getting back slowly towards that 100 level eurodollar pretty steady at around 130.26. still to come, the recent slide in japanese equities dropped to levels where it is now time to reinvest. that's the chosen strategy for our next guest. the nikkei today back over the 14,000 level. second hour of worldwide exchange coming up right after this.

you're watching "worldwide exchange." i'm ross westgate. your headlines from around the globe. make sure the voices of all egyptians are heard. responding to a demonstrations through a political process. this as egypt's foreign minister resigns. greece wants to get its house in order. the finance minister quits as he admits he lost public support for his austerity plan. in italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. the world's biggest pension plan in japan posted highest annual profit ever, $112 billion.

this as the government pushes for a reform overall in search of higher returns. and seeking a safe haven. wikileaks says edward snowden filed for asylum in more than a dozen countries as he blasts the obama administration and threatens more security leaks. all right. just joined us, welcome to the global trading day here on cnbc. you can see european equities weighted to the down side, about 72 advances being outpaced by decliners on the dow jones stock 600. european equities did get a bounce back as far as u.s. futures are concerned now. dow after finishing up 65 points yesterday, here we go, is still above fair value, not by much, 25 points. the nasdaq is currently about 9 points above fair value.

the s&p 500 up 8 points yesterday, it is around two points above fair value, just a little more than that. european equities as we have gone through the session have been down. this is the global 300, fairly flat at one point. ftse 100 up 1.5% during the session right now, during the session yesterday, right now down a third, up, down three-quarters. the cac down around half of 1%. bond market, spanish yields, a long way from the 5% mark we hit last week. 4.62%. treasury yields lower, 2.45. as are guilt yields 2.4. another good bit of data today. we had good data out for mr. carney in the first two days of office. the dollar index is up near four week highs.

dollar yen up as well at 99.72. the aussie dollar continues to fall. the rba coming out. still, not far away from that three-year low of 91.10 we hit yesterday. eurodollar, pretty much where we were this time yesterday, just above that 1.30 mark. trade right now, sixuan has the pricing for us and what happened in the session. >> asian stocks in the green today following the positive lead from wall street. and the nikkei closed above the key 14,000 mark for the first time since late may. australia's asx 200 had its best day in 18 months. and it was after the rba cut rates on hold as expected, but says there is room for further growth if nieded. resources stocks had a good day thanks to higher commodity

prices. iron ore producer up. petro china one of the best performers today, up nearly 7%. this after china announced plans to hike the domestic gas prices by 15%. its shares up more than 2%. over in south korea, hyundai kia motor down after disappointing june auto sales. the big loser was sk hynix. and that's all from me. back to you. >> sixuan, thanks for that. joining me is -- forget june, a terribly good month. where do you put the tapering

debate right now in context for us? >> well, at paradigm we very much see that whole debate as a little bit overblown. i think ben bernanke will have been a bit surprised himself how much monetary tightening he created with a few words. but we think it was a bit of an overshooting and that's why we rebalance our port follow portf week. >> to japan in a second, it is an interesting call. you're not worried about a backup in -- bigger backup in treasury yields at the moment? >> we're not worried about monetary tightening as driven by the central banks. we do believe -- we do trust that that is still quite some way out, but with the biggest monetary experiment we had in history, undoubtedly markets are concerned, worried, so volatility -- >> it is not so much as the

central banks are going to go to monetary tightening. it is a fact if you just begin to withdraw the massive liquidity, there seems to be a view among investors we'll start pricing in monetary tightening. >> well, as a matter of fact, they're not actually withdrawing. just sort of taking -- easing off the accelerator at the moment, buying $85 billion a month. >> isn't that a withdraw of liquidity? >> things are becoming more normal. that's a good thing because the rally that we have had this year in equities wasn't built on cheap liquidity, it was built on improving a level of confidence among market participants and we see that further improving as we get some sight of monetary tightening because it tells you things are better. >> you mentioned japan.

the government wants new guidelines for pension funds. the minister says he'll be pressing a government panel to an amount -- whether the biggest pension fund should be more independent. you said you come out and decided to reload up on japanese equities. why? >> well, we found in the middle of may that japanese equities had gone a little bit ahead of what we expected in terms of valuations. we thought they're overvalued and we got out, out of japan. we didn't expect them to correct so quickly. now after the last couple of days, we felt valuations are at a fair level and with everything that the japanese government is undertaking at the moment, we see japanese as an attractive place to invest, we just need to watch that it is not going overly bubbly and this

initiative with the pension funds and the government has, i mean, it very much depends on your age profile. >> we had been up towards getting up towards 16,000, more like 15,000. but up 35% already this year. do you have a target for what reforms should be or not? >> at the moment, i expect that japan will slightly outpier form the rest of the global markets. if we get to 16,000 by the end of the year, i shall be happy with that. >> this is the message from the chinese public and the police to financial media. reports suggest a directive was sent out urging the media to avoid the hype and explaining that chinese markets have plenty of liquidity. they suggest an official ordered a probe into a false media report which says the bank of

china defaulted on an interbank loan in june. clearly there is liquidity story, doesn't make a lot of sense. china has so much reserves, it could pump in money if it needed. but how does the china growth fears overlay your strategy? >> the liquidity crunch they had was scary. we think that bank of china was playing with fire a little bit here, trying to rein in their banking market. probably the right thing to do overall, but, you know, it was scary. there is slowing in growth at the moment. it is concerning. if it was last year, where the rest of the world -- the western world wasn't growing at all, it would be most concerning. this year with the u.s. picking up, even europe overall looking a bit better, it is not as much of a concern because their slowing is off more by the growth we see.

>> doesn't mean commodities has been a big underperformer and resource stocks as well. you think that will continue? >> i think that might well continue. i see the commodity supercycle coming to an end and not being such an exciting investment anymore. >> more to come. some other stories we're following today, wikileaks says the nsa leaker has applied for asylum in 19 more countries including cuba, venezuela and china. he's holed up somewhere in moscow's airport. and in a statement, snowden says the obama administration is persecuting him by revoking his passport and making him a status person. the justice department says snowden is free to return home. ecuador's president told the guardian that granting snowden a temporary travel pass was a mistake and he's now russia's problem. the kremlin says snowden has withdrawn his request for asylum in russia after the president vladimir putin said he should stop harming our american partners.

the fed holds an open meeting at 9:30 to finalize the plans to boost u.s. banks required capital. officials say the new regulations are specifically designed as an incentive for banks for smaller or less profitable for them to be bigger. the heat wave continues to keep hold over much of the western u.s. with relief not expected for another day or two. california's power grid operator issued a rare plea for customers in the northern part of the state to conserve power in anticipation of a spike in the use of air conditioning. in arizona, temperatures cooled off to 111 degrees, but a wildfire that killed 19 firefighters on sunday continues to burn out of control. and on the agenda in the united states, may factory orders are out at 10:00 eastern. new york fed president bill dudley and fed governor jerome

powell are speaking today. automakers report june u.s. sales today. analysts expect total sales at an annual rate of around 15.5 million vehicles, which would put june as the best month for the industry since december 2007, before the recession began. sales are up 7.3% through the first five months of the year. and want to get away over the fourth of july holiday but don't want to be stuck in traffic for hours? for those new yorkers heading to the beach houses in the hamptons this weekend, an alternative to stuffing your family in the car. uber is offering a promotion, not cheap. it uses a helicopter, uber chopper, to get from a to b for a mere $3,000. it comes with door to door shuttle service as well to and from one of new york's heliports and your destination in the hamptons. so we wondered how much would

you pay to avoid a bit of holiday traffic. e-mail us, worldwide@cnbc.com, tweet at @cnbcwex, or direct to me at @rosswestgate. we talked about u.s. auto sals.z general motors is expected to deliver more good news today when u.s. auto sales are released for june. the broad industry set for its best month since 2007. we'll preview that report with michael ward in just around half an hour from now. still to come, foreign minister reportedly resigned and the army says he has 48 hours to negotiate with opposition leaders. what can the egyptian president mohamed morsi do next? we'll have the latest from cairo. ♪

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if you just joined us, a recap of the headlines today. mo hard morsi pressured from all sides as president obama calls for all egyptian voices to be heard. creditors tire over the company's slow progress on reform. nowhere to run for edward snowden as the fugitive whist whistle-blower files for asylum

in more than a dozen countries. senior eurozone officials say greece has been given a 72 hour deadline to satisfy lenders it can meet bailout conditions. reuters news agency says the indebted country could use its next tranche of aid if it can't convince the public sector. the friday deadline has been set ahead of next monday's euro group meeting. portugal's new finance minister must continue the reforms demanded under the bailout program. in a statement, he praised the formerman minister gaspar for his valuable work. he resigned from the portuguese government yesterday amidst criticism of his handling of the economy and eroding public support for austerity. italian prime minister called a government meeting on thursday amidst threats interest mario monti to withdraw his

civic choice. without a change in direction, he cannot continue to support the government. and italy posted a state sector budget surplus in june compared to 5.6 at the same time last year. this son the back of cost cutting and increase in tax revenues. still with us, lotha lothal mentil. clearly you made your call on japan. that's the place you want to be. what is the outlook for european equities with the europe be crisis in the state that it is at the moment? >> you have to be quite selective about european equities because there is multinational firms there just like in the uk or u.s. on the other hand, if there is a worry that we have at the moment in our general central investment scenario, it is europe. if the global economy doesn't accelerate quickly, we'll have

bigger problems ahead in the periphery because those banks are still very weak. and as we have seen with greece, they're still teetering on the brink. >> as we saw with bank yields, europe is a hostage to european policy, isn't it? >> on both sides, really. also, on the global economic side of things, if that goes better, does better, then the periphery will do better as well and perhaps we can -- >> in some ways european economy is pretty close shop, isn't it? >> no. i wouldn't say, no. there is dynamics within the -- the peripheral european economy is still exporting a lot within the eu. if germany does better because the global economy does better, so will spain and italy. >> okay. a couple of steps away. just getting more comments about

edward snowden, john kerry is the -- saying that not -- sorry, the u.s. secretary of state says snowden is not an issue in russia's -- right. not sure what that means. anyway. we'll take a short break. still to come, a heat wave continues to keep hold over much of the western u.s. at 5:40, the latest forecasts. . time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10.

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fifteen minutes could save you fifteen percent or more. now, the president vowed to stay his own course despite being given 48 hours by the army to reach an agreement with liberal opposition leaders. mohamed morsi says the statement by the military caused confusion and he will pursue his own negotiations with political rivals. in a statement on his facebook page, the president said he had spoken to barack obama telling him egypt was moving forward to a peaceful democratic transition. at same time, military helicopters trailing the national flag lifted the spirits of the protesters gathered in tahrir square. the organizers are reported to have ruled out any negotiations with the incumbent and are drawing up plans to talk to the army. yousef is in cairo for us. how significant are the messages

from the army at the moment and what exactly are they saying? >> reporter: well, ross, that was the one variable that everyone was trying to figure out. up to this statement yesterday, it had pretty much stood with a neutral point of view, it would not interfere, it was leaving it up to the politicians to figure out the politics. but the people demonstrating against morsi were hoping a military might make a move if they can show they have majority support. and the military was instrumental in ousting hosni mubarak on february 11th and now they're making a move because they're seeing, that acording to the statement, a lot of divisions. they had given politicians one week to figure things out. that didn't happen. they renewed their warning. and in a very stern message, ross, if you heard the message in arabic, very strong terms. you have 48 hours to figure it out, otherwise we will put in a

plan that would put everybody on the right track. though we don't quite understand yet what that will mean a return of the army to governance which is unlikely because they insist they will not do that, or whether they will try to bring everybody together in some form of coalition. it is a very tense situation because as you said, morsi is standing his ground, even though the cabinet appears to be falling apart. the foreign minister resigned this morning, confirmed by the state news agency. we understand he's one of several ministers who tendered their resignation. and perhaps we also have an image that was published on an official page of the president, showing him meeting with the prime minister and the general of the army. and if you take a closer look, you can perhaps figure out some of the body language. the picture was published right after the army statement. we can't really verify when the picture was actually taken, but it shows three perhaps of the most instrumental figures right

now sitting together and probably talking about the current situation. in any case, just to give you a quick update, the markets are taking this positively. the market is trading to the upside in excess of 1%. it appears investors are seeing this as a positive signal. we'll have to wait, though, and see if politicians figure this out. and what will happen? early elections? is the president going to stay on? a lot of questions remain unanswered. >> what would satisfy the protesters, yousef? is the only thing they want is early elections? >> reporter: not really, ross. if you stand here in tahrir square and other parts of the city, we're just beginning to understand the scale of the protests. if you've seen the footage from the military choppers, millions in the streets, they are chanting morsi -- which means leave in arabic. they're insisting he has to step down. it will be difficult for him to go on with this kind of

pressure, though obviously he was voted into power in what at least according to consensus was a free and fair election. the protesters want to see an inclusive government and many are calling for early elections to really reset the scene and allow for a fresh start with what they would say is proper representation. >> you receive thank yousef, th. we take you to the break, u.s. futures, pretty good moves high yesterday. we're still higher, but not by much. s&p caught up a point. the dow 8 points above fair value. still to come on the show, european leaders, political leaders have been outraged over allegations of u.s. spying. is it just a show of political theater? our next guest thinks so. tony franta join s us.

you're watching "worldwide exchange." make sure the voices of all egyptians are heard. u.s. president barack obama urges president morsi to respond to demonstrations through a political process as egypt's foreign minister resigns. greece wants to get its house in order in the next three days.

in italy, mario monti threatens to withdraw from the coalition amidst the slow pace of reforms. the world's biggest pension plan in japan posts its highest profit ever, $112 billion. the government pushes for an overhaul in search of higher returns. seeking a safe haven. wikileaks says edward snowden filed for asylum in more than a dozen countries as he blasts the obama administration and threatens more security leaks. the dow up 65. the s&p 500 up 8 points at the close yesterday. right now, we're calling for a very slim upward move at the beginning of trade today. the s&p is just about a point above fair value. nasdaq around four points above fair value. the dow just nine points above

fair value. these futures have come down as we have gone through "worldwide exchange." the ftse global 300 a little negative, just off three points. ftse 100 had 1.5% gains the first trading day of the second half. you can see giving around a third of that back now, down half of a percent, 33 points lower. ftse off .9. cac off as well. we had better data out of the uk. construction, pmi coming in plus up 51. that recovery continues. what are investors to do the second trading day of the new quarter? a recap of what some of the guests have already said today on cnbc. >> some difficulty and so the pressure on european rates and that i think would be a time when you see the ecb looking to

talk down rates to try to stifle volatility. i'm not sure he's going to be too aggressive on the front, but i think he's going to be dovish to underpin the market. >> look at the markets, we think there is a huge opportunity. markets were battered in every different sector. as you look to the end of the year, we think that was a correction, not a reversional in bond markets and a buy opportunity for some of the higher risk parts of the bond market. >> australia has been a typically very popular investment destination and as part of the repatriation flow we have seen following the election, every week we see it, japanese investors bringing

money back home, i think that had a disproportionate impact on the australian dollar. >> wikileaks says nsa leaker edward snowden applied for asylum in 19 countries including cuba, venezuela and china. he's holed up somewhere in moscow's airport. in a statement, he says the obama administration is persecuting him by revoking his passport, making him a stateless person. the justice department says snowden is free to return home. ecuador's president told the guardian that granting snowden a temporary travel pass from hong kong to moscow was a mistake. and he's now russia's problem. the kremlin says snowden has withdrawn his request for asylum in russia after president vladimir putin said he should stop harming our american partners. australia joined the growing chorus of outrage over allegations that the nsa bugged buildings in d.c. and around the world. the foreign minister summoned the u.s. ambassador for talks

today, the day after germany took the same course of action. and francois hollande called for a common european response to the allegations, also a day after he warned that the snooping reports, if true, could threaten a planned eu/u.s. trade deal. and this morning, herman van r m rompuy also very concerned. is this a storm in a tea cup or something more important? tony franta, managing director and former white house press secretary, is with us. good to see you. also with us is thomas, senior research fellow. welcome to you both.

tony, we're all very worried about it here in europe. you're naughty, naughty boys. >> well, look, i understand the sensitivity towards these kinds of things. and especially in europe. i know there is a higher degree of sensitivity to these kinds of questions in europe. but the president is right. this is what intelligence gathering operations for all nations do. all of these intelligence gathering operations of our allies in europe and the united states collaborate and cooperate together on lots of different activities. so some of the outrage that you're hearing is more intended for domestic audiences, not for, you know, official audiences. it is really important to all nations that they do this kind of work. >> thomas, do you agree with that? the uproar from politicians in europe is purely just to get? headlines? >> no. i don't think so. i think we are -- this is a huge

scandal in europe because, you know, we feel like being betrayed by america. we did a lot of confession, like the agreement on the sharing of banks or for allied. we don't really understand why they're spying us. of course, i think that the european and i hope so, the european leaders knew everything about it. but they had to be, you know, very severe, very shocked because the public -- the public, the opinion is very scandalized by that. >> isn't that the point? they knew about it and they're just responding to what they think the public should hear rather than actually be concerned about it. >> yeah. yeah, i know. and, yeah, of course, but, you know, we are a democracy. and so some government with very

difficult position today, with a crisis, they need to be very -- very hard, very tough with these kind of questions. and next year we have some election -- european election in europe, and we have also you said that earlier we have a free trade agreement negotiation going with america. and lots of politicians here in europe are linking the spy thing, the spy -- the free trade agreement saying we can't go further with america, without any confidence. >> i can see some of the critics of trade raising things like the u.s. free trade agreement. it is the issue on the table now between the two -- the two major economies. i can see that being raised by some people who want to try to put some pressure on that agreement. i do not see it being derailed. i think it is far too critical for both economies.

we have to remember, remember this with the, you know, the espionage efforts as well. just all of the intelligence gathering efforts. they're often less to do with the united states and europe, though, you know, even europe, governments conduct these kinds of operations on each other. sometimes it is about, you know, other parties like china, for example. and you look at the u.s. free trade agreement with -- that will be negotiated with europe, that's also about china. we do have very unified global, you know, security and diplomatic efforts here that are not, you know, not inconsistent. i think they're often very well aligned. i would not expect to see that agreement knocked off track, even if we are going to see some, you know, public uproar over this in the next coming weeks. >> the same snowden leak suggested that the uk had spy when it was hosting the g-20, right?

so clearly everybody is doing this. >> they're very good at it. >> yeah. let's hope so. if you got -- the point is, either you're in the spying game or you're not, i suppose. here's the thing. how would it go down in states if as a result, there are politicians now in europe, tony, saying give edward snowden asylum in europe. >> give them asylum in europe. >> yeah. they say he's fighting for our freedoms. >> yeah, i don't think so. i think i would be very shortsighted. lots of politicians say lots of different things, but edward snowden should be returned to the united states for crimes against the country, releasing important intelligence information, and this question of, you know, countries, you know, conducting intelligence operations, human intelligence, signal intelligence, it is all part of every country's national interest. we had a secretary of state in 1929 shut down u.s. intelligence

gathering operations. he famously said gentlemen, don't read other gentlemen's mail. this was in 1929. i think the united states and the world, maybe it would have been a better place had we kept those operations going and could foresee what was going to happen in 1930 better. it is a vital national interest for every country to do intelligence gathering and will not stop. >> fair point. tony, thank you. tony fratto joining us from washington. if you can make it there, you'll make it anywhere. competition for your own slice of new york city's real estate is heating up with the temperatures. new numbers on the manhattan apartment market next. with the spark miles card from capital one,

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the island of manhattan, unless you're unaware, is 87 kilometers around, more than 1.6 million residents packed into that area. so the battle for available living space is getting pretty fierce. this is according to new data out today. sima has the latest for us stateside as well. how fierce is it for space in the city? >> oh, ross, the bidding wars

are definitely on for potential buyers in manhattan market, everything from studio apartments to multimillion dollar co-ops, condos and brown stones. a report out today by new york realtor shows more than 4400 contracts were signed on apartments in the second quarter of 18% from a year ago and the most in six years. that comes as a separate report from appraisal firm miller samuel says listings during the second quarter, the peak selling season in manhattan, dropped to their lowest level in -- on record. he says more than 70% of its brokers have been involved in a bidding war at some point this year and about half of those say they have been part of multiple bidding wars. last year, only 50% of the firm's brokers were involved in bidding wars. last week the wall street journal reported sales and average prices were virtually flat in the second quarter. numbers confirmed by reports by some brokerage firms. brown harris stevens says sales in manhattan were down 1% and the medium pricing department

was unchanged at $850,000. but douglas element is a bit more upbeat saying medium prices are up more than 4% to $865,000. competition for properties vary in different parts of the city. one broker tells the journal prices are on the rise downtown and some buyers who can't afford to pay all in cash are being cautious and some dropping out of the market, waiting for either a correction or an increase in the number of listings. ross? >> getting very fierce. thanks for that. if you want to get away from the fourth of july holiday but don't want to be stuck in traffic, there is an alternative for new yorkers heading out to the beach houses in the hamptons. uber is offering a promotion which you may think is a little pricey. you can hire a helicopter and offer it for a mere $3,000. we want to know how much would you pay to avoid the holiday traffic. shoeman tweeted he wouldn't pay extra. it all comes down to good

planning ahead of july fourth. keep your responses coming in at "worldwide exchange." get in touch with us, e-mail, worldwide@cnbc.com. tweet @cnbcwex or direct to me @rosswestgate. it strikes me you have to pay for a house in the hamptons. maybe 3 grand spread amongst your friends isn't an awful lot. still to come, a recap of the headlines. mohamed morsi pressured from all sides as president obama calls for egyptian voices to be heard. greece's next tranche of aid is reportedly under threat as creditors tire of the country's slow progress on reform. and nowhere to run for edward snowden as the fugitive whistle-blower files for asylum in more than a dozen countries. zynga named don mattrick who led microsoft's xbox division as its new ceo. mark pincus will remain as chairman and chief product officer. pincus controls 61% of the

voting shares of zynga and recruited mattrick from microsoft. mattrick who unveiled the new xbox one console had been seen as a front-runner for the top spot at electronic arts where he previously worked for 15 years. zynga stock up 13% in after hours. disney extended bob iger's contract another 16 months, a year later than originally planned. iger had been expected to step down as ceo in 2015 and as chairman a year later. but that puts off the succession questions a little longer. iger's never named a president or coo during his tenure. iger made his mark through major acquisitions of pixar, marvel and star wars producer lucas film. disney shares are up 136% since he took over, versus 34% on the s&p 500. and coming up, we'll get u.s. auto sales for june today,

expected to be the best month for the industry since 2007. we'll preview the report with michael ward. ♪ ♪ unh ♪ ♪ hey! ♪ ♪ let's go! ♪ [ male announcer ] you can choose to blend in. ♪ ♪ yeah! yeah! yeah! or you can choose to blend out. ♪ oh, yeah-eah! ♪ the all-new 2014 lexus is. s your move.

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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. ♪ talk about egypt, the president shrugged off a 48 hour deadline by the army to reach an agreement with opposition leaders. he's going to pursue his own negotiations. opposition leaders have been boosted by military support. they said she would not support a coup. and they warn that the egyptian military should doing in to undermine the democratic processes. as far as the current stock exchange is concerned, it is higher, up nearly 5%. plenty more folks in the

united states, may factory orders out at 10:00 a.m. today on the agenda. also bill dudley and jerome powell both speaking today. automakers report june u.s. sales today. analysts expect total sales at a rate of 15.5 million vehicles which would put june as the best month for the industry since december 2007, before the u.s. recession began. sales are up 7.3% through the first five months of the year. and we'll see the german vda says it sees the u.s. auto market growth at around 5%. joining us with his analysis is michael ward. thank you, michael, for joining us. best month coming up since before the recession. what is mostly behind the rebound and who is benefiting most? >> i think you've seen the slow and steady recovery in the u.s. industry of the last couple of years to put in the perspective

the u.s. light vehicle selling rate between 13.9 and 15.4 million units every month since the beginning of 2012. we should see more of the same. underlying demographics probably support normal demand pretty consistently. strong underlying democratgrask demographics and an aging fleet. >> who is benefiting most from the uptick? are u.s. manufacturers taking more than their share? >> yes, they are. the biggest winner is ford. they gained a point in share year to date. we should see that when the data is released. the detroit three, each gained share in the first half of the year. that's the first time that occurred in decades. new products from the detroit three and recovering market has been a big positive for detroit. >> how is this going to sharpen

the financial results, michael? >> you have one thing occurring in the u.s. market, north american market, for the first time i've seen in the 30 years i've followed the group, positive pricing and at the same time costs are moving down. that's great news from a financial perspective. in addition, you've seen a positive makeshift toward pickup trucks, which the detroit three dominate. general motors and ford control 75% of the full size pickup truck market in the united states. and that is the most profitable vehicle they sell. so you do have some very good news coming on the financial side from general motors and ford when results are lreleased later this month. >> where does it leave the japanese auto supplies? >> on the japanese side of the equation, you're starting to see splotchy numbers. nissan a little more aggressive on price. they have been losing share. one thing that happened to the japanese-based manufacturers is the rest of the world caught up

with them in quality in the rest of the year. ford accelerated some hybrid technology. you've also seen a lot of innovation on the interior of the vehicle, general motors, ford as well, and other global manufacturers. that's passed the japanese by a little bit. i think the japanese are strong brands and you'll see them -- you'll continue to see them hold well in the marketplace over the next few years. >> yeah. it is kind of interesting, you talk about the u.s. guys have certainly upped the quality here, michael. in terms of new models coming out here what is going to be the key for these guys. what is the next development stage? >> general motors, the new pickup trucks. that's the biggest story in the next couple of months. gm has the first time they introduced all new pickup trucks since 2006. that should have a positive impact on the marketplace.

chrysler has the new jeep starting to accelerate. that should be a plus for chrysler. >> michael, good to talk to you today. we'll get the numbers out later. thank you for now. michael ward. a heat wave continues to keep hold over much of the western u.s. relief not expected for another day or two. the power grid operator issued a rare plea for customers in the northern part of the state to conserve power in anticipation of a spike in the use of air conditioning. in arizona, temperatures cooled off a little, down to 111 degrees fahrenheit, not much if you ask me, or 44 celsius. a wildfire continues to burn out of control. that's just about it for today's edition of "worldwide exchange." u.s. futures on the flat line. the countdown to the opening markets continues with "squawk box" right now. we hope you have a comfortable day. good-bye for now. [ male announcer ] citi is over 200 years old.

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good morning. global markets are mixed after the u.s. starts the second half on a positive note. and zynga changes the game, bringing in the head of microsoft's xbox business to run the show. and the winklevoss have big public plans for bitcoin. it's tuesday, july 2nd, 2013. and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. some positive numbers on the nation's manufacturing and construction sectors helped get

wall street's second half off to a positive start. take a look at the futures now. and you will see that there are green arrows. dow futures up by 14 points. these are modest gains at this point. as for the major european averages, very similar situation there. actually, wow, the -- in germany, the dax is down by over 1%. weakness in the cac and the ftse 100 in london as well. overnight in japan, the nikkei gaining nearly 2% to close above 14,000 for the first time in five weeks. today, the markets will the question to the latest report on factory orders and monthly sales report on autos. and fed speak, new york fed president william dudley will deliver a speech on regional and national economic conditions coming up at 12:30 p.m. eastern time. jerome powell will be speaking on international financial regulatory reform tonight at 5:45 p.m. eastern time.