welcome to "worldwide exchang exchange". u.s. exchange secretary larry summers pulls his name from consideration for consideration. the dollar debt. the dax at an all-time high. investors also talk about the tension over syria. they're trying to avoid an

imminent military strike. >> there's a consequence of the pressure. we have syria acknowledging that it has chemical weapons. and soaring food prices send headline inflation to a six-month high. plus, it sunk in january 2012 taking 32 lives. today the operation to salvage the wreck of the "costa concordia" cruise ship begins. we'll be in tuscany. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. a very warm welcome to you. we're back at the beginning of a new week and today the salvage operation to get the "costa concordia" are underway.

this is from where the ship sunk in 2012. president mario draghi has been speaking on the topic of the eurozone this morning. he says the banking union sp a priority. they still need to boost growth and employment in an effort to stabilize the eurozone this morning. essentially the eurozone unemployment is far too high. we need some sustainable policies. more emu, european military union. banking union, economic union are the priorities to get that as well. cope our eyes on that. plenty to get through on today's program as india's inflation

prices are rising. five year zone from bankruptcy. we'll catch up with the former ceo dick fult. and as the crucial election nears, the german chamber of industry and commerce. and london fashion week has hit the u.k. capitol. we'll chat with sir phillip green. if you have any thoughts or comments please e-mail us worldwide@cnbc.com is the address. larry summers has pulled his name. he had faced fierce opposition from within the democratic party hurting his chance to be confirmed by congress. at least four members of the senate banking committee had said they would vote against

him. he was seen as the front-runner over janet yellen. in his letter to the president summers acknowledged the tough fight he'd face on capitol hill saying any possible confirmation process for me would be ak krim money yous and would not serve the interests of the federal reserve. summers, as i said, pulling his name because of that opposition. that has caused quite a big reaction as far as investors are concerned this morning. let's take this shot here of the dow jones stock. heavily weighted to the up side at the moment. decliners by a ratio of 9 to 1. the session high as well for the dow jones stock 600, just up nearly about 8% this morning. fairly small rises for the dow and s&p on friday, up half a percent.

the ftse was down five points. slight different picture this morning. we got the deal over syria. we're getting towards a fed decision on tapering this week and summers, all quite positive things. 1 1/4 high for the xetra dax. asian markets, here is a recap of how they closed. asian markets, close. in bombay, that jump in food prices not helping out the sensex, fairly flat as well. currency markets, here we go. this is where we stand, 2.8% is the yield on treasury yields. the gilts yields hit 3.84. and the ten year yields 4.4%. currency markets, dollar taking

a bit of a beating. four-week lows. euro dollar up 133.63. dollar, we still can't maintain over $1. sterling, up to 1.60. speaking earlier on cnbc, peter oppenheimer gave his thoughts. >> the sharp selloff we've seen in bull markets in recent months, they've probably peaked out. the bond yields, more tragedy alliance here. a gain in context. just over a year ago looking to our models, treasury yields are two standard deviations lower than you can expect. pretty much in line with where

it is. i think the force for raising yields is not there to where it has been through the summer as the tapering debate has come through. >> strategist at monument securities. how important is it summers is out of the race? >> it's important from the aspect that coming off or dovetailing in with the news on syria which is a short-term relief, there is room for a relief rally here precisely at the time where a lot of investors have been looking for putting money in. we shouldn't lose context of the site. it was about the financial markets as opposed to on capitol hill was about the risk because of his previous 125i789s being rather hostile to qe. if he were nominated, that basically tells you where

markets are still. you are primarily concerned with central bank liquidity provision. they are hooked still on central bank liquidity. in the short term i think this gives definitely a relief rally in equities though there are complications which we've got at the end of the week, futures and options expiring. it allows treasury yields to fall and the current to steepen a little bit. probably benefits the short term overall. it may provide some relief to some of the beleaguered yen currencies. i think it really only benefits the quality. countries like india, south africa, turkey, indonesia are unlikely to see sustained relief in the short term frankly because it doesn't make any difference to their problems nor will any of the rate decisions. >> tapering is going to happen and we are going to get --

whatever happens, we are going to get a pull back over whatever the time period is of u.s. liquidity. >> most importantly on wednesday when mr. bernanke holds the press conference, mr. bernanke is not going to give the market the sort of forward commitment rather than guidance that it wants. >> and what would we like? we'd like him to come out and say 10, 15 billion and that's what's going to happen until the beginning of 2014. is that what we'd like? we know what the pace is going to be for a few months? >> on the wish list it probably would be we're not going to taper until december. that's not realistic. >> wouldn't that worry us? we're ready for tapering? we are ready. we need it. >> they would like a set tame table. they're not going to get it. this is precisely where the whole communications breakdown is. >> why can't you say we're going to take 10 billion a month for the next few months? >> because they've always said the tapering decision was very

much one that was data dependent. if they make a commitment of 10 to 15 billion per six weekly meeting but it stated dependent, it's almost as worthless as what the bank of england is doing in trying to defend it. markets want commitment which actually central banks aren't in a position to give. they do need to have a look at how you data revolves over the coming three to four months. my suspicion is that u.s. data and, indeed, european data will probably start to tail off in some of the better readings in the summer and above all in terms of the united states, there are going to be a lot of people watching given anecdotal evidence of layoffs in the banking sector related to refinancing. whether the housing market rally really holds up.

>> good to have you on board. you mentioned india. let's talk about that. an 18% spike in food prices helped drive the inflation to a six-month high. it came in 6.1% higher. rising prices are causing a dilemma. he's trying to prevent the repeat and economic growth from sliding. with more, nigel is in mumbai. nigel? >> reporter: yeah, hi. the markets did open up 100 points higher. there's selling pressure on. the sensex has fallen. some pressure being seen from the top. the wbi is expected. up around 6.1.

clearly not a good sign for the market given that we have a crucial time. all of them are losing 2 to 4%. that's putting pressure on the market. some bit of hope like an ics bank which is seeing pressure. we are seeing a fair bit of profit. back to you. >> nigel, thanks for that. with us for singapore, chief strategist at real economics.com. p.k., thanks for joining us. put this inflation number into some context for us. how much has it muddied the waters? >> they will have their first policy statement after the next

meeting on the 20th of september and i think this ensures that any talk of a rate cut goes right out the window. there is no question of a rate cut in india. if anything, further monetary tightening is probably the more prudent thing to do. the important thing about the number is that food inflation has a very small weight on wpi. it was up rather sharply, about 18.2% earlier. it has a much larger weight in the cpe basket and consequently cpi inflation for august is likely to be closer to 10%. under these circumstances i think the rpi number is being made for it by the inflation numbers. they will have to stand pat. if anything, perhaps tight generale en liquidity conditions.

it will keep the policy fairly tight on the leash for the moment until inflation eases off. >> there may be temporary relief but do you think it's going to come back? if so, what will they do about that? >> well, i think with the ruppe, it's stabilized. exports have done very well. india's export growth in july and august of about 12% year on year is one of the fastest in asia and the world and what's happened there really is that domestic manufactured goods inflation is very low, indeed. only 1.9% at the moment. it's averaged 5% over the last three years and this year the last two months was 2.9. this month was 1.9.

there's a clear moderation. the rupee has depreciated a lot and hats made manufacturers much more competitive and that's contributing to a substantial improvement in the export. i think the rupee is past its worst point. i don't think it would make sense for us to defend any value of the rupee. they need to defend their foreign reserves for the next nine-month period during which the qe tapering will be going on. probably ending by the next year. global tightening of positions, i think it will be crucial for them to preserve it rather than expend it in defending the rupee. >> in respect of what's going on in india, isn't part of the problem that indian rates are basically still negative in real

terms and as much as the trade picture will to some extent improve the current account, that the current account deficit and the trade deficit estimated by the government at 10.1 still remains the achilles heel of the indian economy and that's something that the government needs to solve and they don't seem to be making much progress? >> yeah. i don't think the government is going to do too much more to try and fix the current deficit. the current deficit is, indeed, the largest problem. this year the deficit will still be about 3.6% of gdp, which is really rather large. last year's deficit was 4.point 8 which could see some improvement there. improving that -- part of the improvement is simply going to come from the j curve effect of

a sharp appreciated rupee. the government has put in place some additional duties, imports of gold which will serve as something of a deterrent. you're absolutely right, it is absolutely essential that the rates are positive again and inflation needs to be brought substantially further under control, in particular food inflation is the continuing problem and has been caused by the food security bill and other populus measures that have raised the rural rate substantially in india over the last three or four years. >> and so there is a serious problem of inflation in the rural economy which is not going to go away any time soon and will take a while to be resolved. b.k., thanks for that. chief strategist at real

economics.com. we have a bit of news on south korea and the troops. they've fatally shot a guy trying to cross to the north. we'll see if there's any reaction to that. it all comes after the industrial park reopened today. the complex was jointly run by north and south korea resumed operations after a five-month hiatus. about 800 people took the trip north. they'll continue to discuss how to keep developing the site which provides pyongyang around $90 million of cash payments from the south each year. president obama insists the u.s. remains ready to act on syria. washington struck a deal to avert military strikes right now. the assad regime must submit a list of its chemical weapons during the next week and destroy any stockpiles by the middle of

next year. the france president francois holland has thrown his support behind the diplomatic solution. >> translator: there is some concern with what parliament can represent at the site, i wasn't obliged to consult. today we're in a situation that allows us to seriously believe that a dep ploe ma particular and political solution is possible. i want to be totally clear with you, the military option must be maintained. if not, there will be no pressure. i wish that this coercion could be maintained by the security council of the united nations. >> president obama has been talking about a deal that it shows weakness especially when it comes to negotiations over iran's nuclear program. >> my suspicion is iran has recognized that we won't strike iran, on the other hand what they should draw from this lesson is that there is the potential of resolving these issues diplomatically.

>> all this have whilst the u.n. leaders plan to release a report on syria's weapons. at the same time america continues to hold high level talks with its allies as the secretary of state john kerry meets with his british and french counterparts. they're expected to have a press conference at 11:30 cbt. what do you make of the week end developments? it's interesting, the president does what a lot of people think he should have done. he gets criticized for not being stronger. >> the president is going to get krid sized for whatever he does. this has bought him some time. nobody in congress wants to talk about this. the white house said, let's move ahead. let's rejigger, the economic agenda, a lot of things to push through. it's interesting because he's going to face problems no matter

what. there are going to be issues as far as finding the weapons, dismantling them. there are questions of the intelligence. the americans say it's been spread over 45 cities across the area and the russians are disputing it. in terms of use of force, the russians have said they're not going to autd thor rise the use of force. where does that leave the united states? >> bring you in on this. we are up to 1400. clearly there was a risk aversion at play. what happens now? how much of this can we put on the back burner? >> i think they put it on the back burner because of the time of year that we're in. it says i'm not on top of it being very disperse in terms of where they are and some of them have been moved into lebanon and into neighboring iraq.

the issue isn't going too lo go away. those opposing mr. obama, which is pretty much everyone on capitol hill, think that it's spurious. mr. rouhani has to negotiate. that's what he came in on the promise of. people forget that iran has an economy. without negotiating with the iaea, there are going to be no removals of sanctions on iran. iran is caught into an interesting provision where they still support the assad regime. >> i think also you have to remember this is the press who a few months ago said let's g. he had no place in the geneva 2 talks talking about peace. now we're talking about going back to geneva. you also have to look at the

fact in terms of going forward, so many problems could arise. what you could end up seeing is what the president obama, bush and clinton faced in the '90s. it's a cat and mouse game. it's going to come down to use of force. nobody really wants to do that as we've seen. >> of course, the president has used up political capital. also still to come in the show, five years after the fall of lehman brothers, andrew sorkin's been tracking down the former ceo. here's a reminder on the news that would shake the very foundations of the globe. >> the once mighty lehman brothers, 158-year-old firm, lehman brothers will likely file

for bankruptcy tonight. >> bank of america is going to buy merrill lynch. >> tragedy. >> how long have you been working there? >> 23 years. >> 23 years. and what are you going to do now? >> i have no idea. just in shock. ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

yeah, it was supposed to be too big to fail, but five years after the biggest bankruptcy filing in the u.s. history, the financial world is still feeling the effects of the lehman brother collapse. what has become of the pro tag gee nists. >> dick fold was a star on wall street. the longest running ceo of any firm. in 2007 he launched a vicious campaign against short sellers that was trying to put lehman out of business. >> what i want to do is reach in, rip out their heart and eat it before they die. >> five years after lehman's collapse fold is chaisenned. he has a small firm in manhattan. of the clients he does have, one

warned his tarnished reputation could potentially be damaging. fuld has spent much of the last five years trying to avoid criminal and civil charges. he ran up legal bills into the millions of dollars. much of it paid for by the lehman estate. the d.o.j. and s.e.c. dropped their investigations after they concluded they don't have enough evidence against him. fuld has kept a low profile. he's been spotted on the weekends flying coach to one of his homes in florida. while he rode his lehman stocks from $1 billion down to $56 billion, he's not exactly poor. he has a mansion worth over $8 million and he sold a park avenue apartment for over $46 million. he recently made headlines suing his former son-in-law for $13 billion over a loan for an apartment. fuld and his lawyers didn't

return our phone calls. >> what could i have done differently? what could i have said? what should i have done? i have searched myself. this is something that will stay with me for the rest of my life. >> barclays bought the investment bank's operations after the collapse and the too big to fail still lives. it continues to weaken global banking and it admits banks including barclays were over ledged in the boom years. it was a huge shot to the financial system. how much has it changed five years out? >> we're more aware of things. whether we've actually changed them, whether the legislation and regulations that are being brought in have really changed things materially, no, i tend to agree with bob dimon on that.

the risk of regulatory arbitrage particularly with the gh 20 operations in all different kinds of directions remains very, very high. what appears to be a new proposal won't solve any of these problems frankly because each country has a different requirement of its financial system. i think the interesting thing will be whether mr. carney over here who's being probably unfairly lambasted for his proposals on monetary policy side will do on the financial stability side. it will be very interesting to see whether he -- >> fpc meeting. >> we have an fpc meeting.

it is about understanding leveraging. it's an old-fashioned way. it's the oiled wheels of the economy by taking money of the people who have excess savings and lending to the people who need to borrow. doing it in a fashion not to increase risk. a lot of the leverage ratio discussions at the moment will pose more risk on the retail side largely because you can't actually agree, no country has the same rules for accounting for investment funds. >> okay. stay there. we want to hear from you. do you agree, mark? are banks still too big to fail. let us know.

worldwide@cnbc.com. while the salvage operations are going to continue, we'll keep our eyes off the coast of italy. still to come, mixed proportions for angela merkel's group. the fdp suffers a major loss. we'll analyze those numbers after the break. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪

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summers storm. larry summers pulls his name to be the next fed chairman. the dollar dips, yields fall, the dax at an all-time high. this is as investors are pricing a more dovish start. investors are easing tension over syria as president obama defends a u.s./russian deal to rein in chemical weapons and to avoid an imminent strike. >> as a consequence of the pressure of the strike we have syria forth first time acknowledging they have chemical

weapons. >> the race got tight for angela merkel. the chance of renewing her center right coalition in national elections looks dim as the fdp fails to make the cut. plus, it sunk in january of 2012 taking 32 lives. today the operation to salvage the wreck of the "costa concordia" cruise ship begins. we'll be in tuscany throughout the show. we have started the week on the front foot. you can see the xetra dax and the cac are up to the ftse 100. bull markets, yields a little bit lower for treasury down to 2.81%. 10 year gilts yields.

if i'm wrong, mark will correct me. as far as currencies are concerned, we're seeing the dollar index down to a four-week low. sterling continuing its advance to both the green bank and the euro as well. meanwhile, angela merkel sister partner csu is showing 49% of the vote. her center right coalition in the upcoming national elections have been dealt a blow because the fdp party was ejected from the assembly. annette is in berlin working through the tea leaves what this might mean for the general election that's coming up. anetta. >> reporter: well, actually, you were already pointing out that the little party's weak outcome in the bavarian election might be a threat to the election upcoming here in berlin for the whole of germany. there's an other side to this interpretation that even could activate voters who are going to vote for theunrstanding

in the german society, the fdp, the liberal party should be represented in parliament. this could be the effect. i'm going to discuss with my guest here, alexander schuman, the german chancellor of commerce here in berlin. thank you for joining us, alexander. that will be my first question. what do you think is the outcome or the effect from the ba vafian election when it comes to the weakness of the liberal parties for the national election? >> the result from the bavarian election is a normal for them but also normality for liberals. there are only three terms in the parliament and five terms out of the parliament. here the liberal party has a broader basis and also the waters voters who want to have a

conservative, more bourgeois government. >> you won't say that we get a grand coalition? >> no. it's not a sign at all in this direction. i think it's a strong sign from the union, democratic union party together with the coalition partner can count next sunday and there are all chances for the current government to -- >> yeah, merkel's under a lot of criticism as well domestically that she hasn't pushed through reforms in germany. in a way it is a dual picture of her. outside of germany she is doing a good job with european politics but inside she is lacking stamina. is that as well what you think?

>> unfortunately, this is true. this is one main reason. the euro debt crisis dominated the agenda the last four years. so little time was for doing more reform but the next four years we need more reform. we need overhaul in energy scheme, energy pricing scheme. we need overhaul in our infrastructure. so we expect from the next government more reforms in this direction. >> but that as well means that the euro crisis has to stay calm. how likely is that. >> the last signs from the cycle were hopeful so we have improvement. we expect weak but steady growth this year and also growth rate of 1.something next year so it's normality or normalization from this point of view.

this could also contribute to more room for maneuver for more reform in germany. >> what do we think, how likely is it that angela merkel will change her style of policy making? because her style is characterized as being very consensus oriented so after the election will there be a big shift like a lot of people are thinking? >> i think it's consensus in germany that you need more reform because we know that competitiveness is the basis of wealth and growth and it's also consensus that angela merkel has to do a lot to deal a lot with the euro debt crisis the last four years. i think it's also consensus that she will have the capability, the resolve, the basis from the waters to do more in overhauling our economy. >> thank you very much, alexander. ross, even if they're discussing or putting germany always as the

glorious example of economic growth, there's a lot to be done in that country as well when it comes to competitiveness. so angela merkel is rightly criticized sometimes that she's not doing enough to reform that country that germany keeps its competitiveness. with that, back to you. >> all right, anetta. for now, thanks. catch you a little bit later. mario draghi is warning that the european economy remains fragile. he's haled the progress of the bank's program helping to soothe investors. speaking at a frankfurt conference in berlin as well. he said unemployment is far too high. he says the rates will stay on hold or be lowered for an extended period of time. martin, is there any event risk for the german elections or not? is anything going to change? i don't see that it will.

>> it won't change german policies through the rest of europe. >> that's what they're worried about. >> apparently. to a certain extent not. i think the critical point here is that the ard survey, the poll last week showed that the public in germany would like to see a grand coalition. there's a good reason there. the criticism which is coming internally about the lack of reforms on energy, pensions, taxes and the variety of other issues mean that mrs. merkel requires upper house support from the spd. even after this election in bavar bavaria, they only have 59 or 60 seats to get that through. they need to have the support of the spd. whether it gets into parliament or not, i suspect it will, is not going to help them to deliver on that.

above all, it's likely to continue to stall on banking may prove to be a bit of a disappointment, particularly given other developments that we've got in portugal, italy, spain. >> that's what we're hearing as well. martin, good to see you today. we've just had to announce concerning a u.n. resolution. france and the united states have agreed to press for strong u.n. resolution on syria with binding dates. there is a meeting today going on with secretary of state john kerry due to hold a press conference from france at about 1:30. that statement is coming out from the french president's office. we'll await for more. now the salvage operation to

refloat the "costa concordia" has begun in italy. it took 32 lives. experts believe they can right the vessel in around 12 hours. the operation may allow bodies of two of the dead to be recovered. joining us now is nbc news's claudia lavania who is at the scene. how complex and difficult is this operation? >> reporter: well, it is certainly the most sensitive and complex space of an already incredibly difficult operation. the salvage of the "costa concordia", ross, is being called the most expensive and complex salvage operation in maritime history. certainly the rolling of it which the engineers hope is going to be completed by the end of the day is the most difficult one and also risky. the reason risk, because of the enormous pulling power that is going to be exerted on the ship

itself, that the hull could break and if it does and there is a whole soup of toxic, organic and chemical materials that are still contained in that ship that could pour down into the water below therefore creating another disast disaster. they've put things into place pulling it slowly one inch at a time. the rolling started a couple of hours ago. you can't see it with the naked eye. you can start seeing the line from the sea, the kind of yellow line from the point where it was submerged. i would say it is about two meters up know, but obviously it's a very, very slow operation that hopefully will be completed by the end of the night where we will see the "costa concordia" back up right, ross. >> okay. thanks very much indeed for that. more to come from the tuscan coast.

still to come, we look back at the biggest bankruptcy filing in bankruptcy history. this is how the u.s. government decided whether to help in the collapse. >> the chair men are exploring all options with congress. >> we're coming together to work for an expeditious solution which is aimed right at the heart of this problem which is ill little wik assets on financial solutions. >> given the precarious situation of the markets, government intervention is not only warranted, it is essential.

>> announcer: you're watching "worldwide exchange." hello. h and m shares are in fashion. the group reported a 4% jump in same store sales. the swedish fashion giant also continued to expand in its foot print last month with over 300 new stores added since the same period last year. karen has been checking the pulse of the fashion world and joins us with more. hi, karen. >> hi, ross. yes, the h and m effect having a

bit of an impact across markets. retail one of the best performers. investors are proving as fickle as shoppers. let's dive into a few more names. intertex is the owner of zara. it's up 5% higher. a modest tick higher. they're tracking the likes of the dax today. today we have .9% of a percent. one of the other stocks here in the u.k. has had a revival, that's been reflected in the share price, 41% higher is how the stock has been performing. some of the luxury names are also in show. we have london fashion week kicking into full swing today with the big names in the u.k. certainly here in the cat walks. lvmh is being considered. the brand that's been buying up some of the biggest names across

the fashion industry. one of the most fashionable names out there if you pick up a magazine. the share price is just 3.75%. burberry will hit the catwalk. we're looking to see what the tone is around chinese sales. one of the thorny part for chinese sales. investors have been reacting 32% higher. the recent sales figures were much higher than analysts had predicted. they came in double digit instead of single digit. this is why they had a spike in the shares. i want to show you hugo boss. 18.5% higher. these stocks have been leading the bunch higher for investors. against this back drop london fashion week is in full swing. the top designers are sending their collections for next season. i caught up with sir phillip green, the owner p top shop. i asked him if he agreed with chancellor george osborne that

the u.k. economy is turning around? >> i would say sort of flattish. i don't think we're -- i think we're not on the bottom. i think it's getting better, but there's time. we need time. >> how do you encourage people to spend money at stores in the u.k.? what does this show mean to you in terms of getting -- >> look, i've always said product's king. if we've got great product, people will buy from us. there's no other ingredient. everybody else can talk if they like. if we have great merchandise, people will shop with us. >> what about the overall strategy, the likes of zara and h and m are rolling out more stores. your strategy seems different. >> obviously they have a lot more stores than us combined. four or five times as many stores. i mean, we try not to open on every other corner. we try to be selective where we're going and we try to test markets first. we just opened amsterdam and germany in the last three weeks

and we've done three times our budget in both those countries in the early days. hong kong we're very pleased with. we opened another 22, 28 outlets in nordstrom in the next four weeks continuing from where we started last year. so that business is growing. the old line is growing. you know, we'll see. >> a lot of the retails held out hope about the emerging markets. do you think consumer spending will not be as strong? >> our strategy as you said, sort of slightly different. we're trying to open flagship stores or find relationships that we feel are a win-win in terms of department store relationships. so i think we're probably being a bit more careful in sort of how we grow. so from that point of view, i mean, i'm sort of comfortable where we are. we haven't gone off, you know, into any market in a crazy way. >> the queen of fashion anna

winter was there yesterday if that gives you any indication of how dominant top shop is. tune in tomorrow because we'll have another special. i'll be heading to the fashion show there. i'll be speaking to angela ahrendts. jo thank you for that. we've already looked at dick fuld. what has become of the other protagonists of the andrea sorkin has been finding out where others are. >> jamie cane has stayed out of the banking business focusing instead on the contract ridge circuit. he is currently ranked number 23 in the world. in addition to his $25 million apartment at the plaza hotel in manhatt

manhattan, he owns a home on the jersey shore and a home in boca raton. three months before lehman went bankrupt callan told cnbc the firm was headed in a right directs. >> we are in a great spot with this capital behind us with wind in our sales. >> after she left lehman in june 2008 she did a brief stint at credit suisse before leaving. she wrote an op ed in "the new york times." in 2007 countrywide ceo angela mezillo said his company wasn't going anywhere. >> there is no more of a chance of countrywide going bankrupt. >> three years later with countrywide having been purchased by bank of america, he paid out over $67 million to settle fraud and insider trading charges filed against him by the s.e.c. banned from serving in any

publicly traded company, he's been lalging low. chuck prince resigned from citigroup. in 2007 he seemed pretty contrite about his role in the crisis. >> i'm sorry that our management team, starting with me, could not see the unprecedented collapse. >> he currently sits on the board of johnson & johnson and xerox. he's on the speaking tour. larry summers out of the running for the fed job. we'll take a look at what the surprise exit means for investors.

you're watching "worldwide exchange." i'm ron westgate. larry summers pulls his name from consideration to be the next fed chairman. the dollar debt, full stocks rally, the dax hit an all-time high. markets also fraught by asian tension over syria as obama defends the u.s./russian deal to rein in weapons. >> as a consequence of the pressure we've applied over the last couple of weeks, we have syria for the first time ak

knocking that it has chemical weapons. >> plus, it sunk in january 2012 taking 32 lives. today the operation to salvage the wreck of the "costa concordia" cruise ship begins. we are in tuscany throughout the show. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. all right. if you've just joined us this morning, welcome to "worldwide exchange." larry summers is the big news. late night of course yesterday pulling his name from consideration to follow bep bernanke as fed chairman. he had faced fierce opposition from within the democratic party hurting his chances of being nominated or confirmed by congress. at least four members of the senate banking committee said they would vote against him. summers had been said as the

front-runner over janet yellen. in his letter to the president summers acknowledged the tough fight that he'd face on capitol hill saying any possible confirmation process for me would be acrimonious and would not serve the interest of the federal reserve. plenty of reaction therefore as a result to mr. summers stepping down. it has boosted risk appetite around the globe because it sees janet yellen in pole position as a much more dovish fed chairperson. 2r5iding 194 points up by half a percent. the nasdaq is some 36% above fair value and the s&p is trending 21 above fair value. fairly strong start indicated.

going up half a percent for the ftse. on friday the ftse was down 5 points. been up 8%. not quite, .8%. the zet at that dax is at an all-time high. 8806. cat ka ran is up. shanghai was down .2. the nikkei, fairly flat. mainly because what we did see today was the dollar index falling back on the yen appreciating in value. the sensex is up marginally because we saw a big jump in food inflation. the wpi was stronger than what we thought. the dollar index is down to a low. shy of 1.60. aussie dollar, down 1.27.

we couldn't maintain that above 100. stronger yen, one of the reasons why the nikkei didn't do so well. it's up near a 2 1/2 week high for the dollar. bull markets, yields are lower. treasury yields, 2.81%. we hit 3% just over 10 days ago or so. gilts yields, currently at 2.88. so joining us now from rbs in london is alberto gal low, head of european macro credit resear research. summers announcement is having an impact. how do you see it playing out? >> definitely the news from the fed chairman change potentially is very positive. yell lone is now the front-runner and she's

definitely less hokish than summers. she's more like bernanke's policies. this is positive. we have been positive on europe since much earlier this year and last year. this is consistent with our views. >> yeah, look. how much -- go to temporary relief for treasury yields, 2.81% after nudging 3% as i say. how long will this relieve last? >> this particular event we'll have a shorter impact. we still think there is going to be tapering this week and yields in the long end of the treasury curve will survive. in europe there are other things going on which are also positive. more discussions of the banking

union. last week the european parliament approved a single supervisor. more discussions are happening today. ecb member mirsh said the ecb is working on the banking union and they are expected to announce something in weeks. this is a strong mechanism which we expect to gradually shape up over the next month. in europe there's more positives for bonds than in the u.s. which also, you know, is consistent with a more positive stance on bonds in europe versus the u.s. >> how much can you actually decouple? if u.s. yields rise, the fact is we can't decouple from that, can we? >> well, look. the differential between the ten year in the u.s. versus europe was 50 bases points. now it's around 1%. there's been a little bit of outperformance on european

bonds. to be honest, the bonds which we like in europe are the higher yielding bonds. you get exposure to the recovery across smaller companies, smaller borrowers which are now starting to see the revenues go up and bids for their companies which is any source of revenue of growth in their domestic market. we're definitely starting to see signs of a turn around in europe which many people were skeptical. >> good to have you on. stick around. more to come from you. also today the president will be speaking at 11:40 eastern from the white house rose garden. this is on the fifth anniversary of the lehman brothers collapse. on sunday the white house issued a report on the government's response to the item. stress test designs for solvency of banks and the u.s. bailout of

au automake automakers. investors are waiting to start a two day fed meeting. we have the empire manufacturing survey out. followed by industrial production and capacity utilization at 9:15 a.m. meanwhile, the u.s., france, and brittain have agreed to push strong on syria. they're due to unveil a report that is expected to show overwhelming push for an attack on august 21st. >> my suspicion is that the iranians shouldn't draw a lesson that we haven't struck to think we won't strike iran. on the other hand, what they should draw from this lesson is that there is the potential of resolving these issues

diplomatically. >> the president is already praising reining in these weapons and holding off on a strike. joining us for more is hadley gamble, middle east correspondent. hadley, good to see you. we just had this u.n. -- we've got secretary of john kerry in discussion with his counterparts in paris from the u.k. and france. we want a strong u.n. resolution. what do you think in that? >> basically what it will come down to as we discussed earlier, the use of force. the russians have said they aren't going to authorize any use of force. you have your european allies, the united states. secretary of state kerry will be taking about what to do if. the if is if syria fails to comply with what they want to

do, find the weapons, do that by mid year next year. you'll see some action taken, it's just a question of how and when. >> that is a resolution russia is unlikely to support. >> right. the president has to make another decision. does he go back to congress? >> we want a u.n. red line? >> something like that. this will snowball on him. what he's done is managed to punt it a little further down the line. he can focus on pressing issues in congress. >> how much political capital has he used up dealing with syria? how much has that played a part in, do you think, sum mergs' decision? >> i think a great deal. he's lost a lot of political capital over the last three weeks. nobody wanted to deal with this. the president seeing that he didn't have the support in congress knew better than to keep pushing it. i think you'll see that play out

with other pieces of the deficit. >> little focus on what this means for iran. what happens to syria, how does it pertain to iran? >> i think they know they have to deal with it because of the crippling u.s. sanctions. it will play a major part in how the negotiations go forward. >> hadley. thanks for that. we're also keeping our eyes on the coast of tuscany. the salvage operation to recover the "costa concordia." this is the ship that sunk or half sunk in 2012 with the loose of over 30 lives. still to come on the program, could dodd frank have prevented or resofd the collapse? >> we tried to come together, both chambers, both parties to

respond to the request we've received from the bush administration. we believe we've done that. >> i don't believe we have an agreement. i have voiced my concerns all along. >> we could have gotten here today had it not been for this partisan speech that the speaker gave on the floor of the house. >> there's a terrible crisis affecting the american economy. we have come together on a bill to alleviate the crisis and because somebody hurt their feelings they decide to punish the country. [ tires screech ] ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪

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that were less sensitive from a social point of view and by expenditure cuts. so from this point of view the answer to your question is that we -- this is the way we intend to proceed, you know, by trying to offer support to the economy or take care of emergencies from a social ecological point of view finding within the budget the compensation for this. now, the additional elements of uncertainty so far have no impact on the fiscal policy. as i said, we have a little bit of volatility in terms of spread, but on the whole we have seen basically no major change. of course, it's a signing

logical indicator and if we would have a major political crisis i assume the spread would increase and that would also -- and also the level of long-term interest rates in italy will increase. that, of course, will have to be taken into account and factor in future developments. but at present we don't have anything of the sort. >> and just a recap of our headlines today as well. rally yields fall on news the former treasury secretary is out of the running to lead the fed. u.s. and its allies call for a strong u.n. resolution on syria. the teail tale of two germa joompt still to come, we'll get some analysis about yesterday's bavarian election and what those

results mean for angela merkel's results. more to come on "worldwide exchange." building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receiptmatch on the business gold rewards card synchronizes your business expenses. just shoot your business card receipts

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your financial advisor should be thinking about your retirement at least as much as you do. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing. good morning. if you're just joining us this morning, your futures are going

to a pretty strong start. s&p 500 is currently 20 points above fair value. dough is 19 points higher. nasdaq opens 36 points higher. this is after we closed slim gains on friday. that's when the ftse was down. almost 1%. xetra dax at 8,610. so that's where we stand. bond yields, by the way, are lower this morning. ten year treasury yields now down 2.82% after nudging 3% closer. ten year gilts back at 2.88. currency markets, dollar index is down at a four-week low

today. two and a half week lows 133.83. the yen, 98 point poip 85 is the two-week low. sorry, that was the yen. 98.85 at the moment. euro, dollar is 1.3383. of interest of course is what might happen in the german election. we have a bit of a taste yesterday as merkel firmly won the election with 49% of the vote but the fdp, angela merkel's junior coalition party, was ejected from the assembly. where does that leave us ahead of the federal elections. that has some idea for us in berlin. hi, anetta. >> hi, ross. it depends on what you would like to think. there is one string of argument tags. the supporters think this will give a boost to the liberal parties to the ftp because there are voters that are activated because there is a general

understanding in the german society that we want to have the little party, the fdp inside the parliament behind me but, of course, that is perhaps wishful thinking as well as the other camp who says now with this result of the liberal party down in bavaria it will really head into a grand coalition. one has to say as well the state elections in bow vare yeah, they have a different kind of voting pattern when germans are warding for the national parliament because, for example, education as well as other issues are decided on the federal level, which means the national state level, bavarian level in that -- for that example, and so people tend to vote differently. one of the interview guests i spoke from the opinion institute

has one of the big three polling institutes and they were saying on the national level people want to have the liberals inside the parliament. that is why they are seeing the liberals at roughly 5 to 6%. clearly higher than the 5% threshold. ross, there is still a lot of, yeah, room to maneuver i would say. the initial reaction from the liberals was, of course, deep disappointment but they were as well saying now they really had their wake-up call down in bavaria. they are going to fight until the upcoming election during the next weekend and of course the christian democrats, they are extremely backed by those results down in the south but at the same time there's as well a certain stretch for angela merkel because, of course, if they were to keep that coalition with the liberals as well after the election, then the sister

party, the csu with hors horst xeohoffer will have more to say in international politics. they are not agreeing on a lot of things. >> thanks. that's the latest from berlin. meanwhile, off the tuscan coast, engineers have begun lifting the "costa concordia" cruise line. it's the most expensive wreck recovery ever. this is the vessel that sunk in january 2012 and took the lives of 32 people. four have already been convicted of manslaughter. the captain of the ship is currently on trial. we have claudio lavania from the scene. how complex of an operation is this? >> reporter: this is the most expensive and complex operation

in maritime history. the engineers will try to roll the "costa concordia" upright is the most sensitive and risky part of it all. now the rotation started about a couple of hours ago. three hours later than previously scheduled because of stormy overnight conditions but it is underway. the first signs are starting to show. if you look closely at that bow behind me, you can start seeing a green stripe on the bow emerging from the water. of course, that's the sign of the algae that deposited on the bow when it was under water for 1 1/2 years. now to get a more evident, more obvious signs of the rotation we have to wait about 10 or 12 hours. that's how long it's going to take for the engineers to put it upright completely. that is, if everything goes according to plan. it is a risky operation. there is a lot of pulling power being exercised on that hull and the risk that it may break.

if that happens, there is this toxic soup of organic and chemical substances still inside the ship that may gist get out and pour into the water below creating environmental disasters. the engineers say it took all of the precautions necessary for it to happen. there is a reason why this is the most expensive salvage operation ever. >> that's the latest from the coast of tuscany. larry summers drops out of the running to replace ben bernanke as fed chairman so the front-runner for the job, janet yellen, is she the one in the frame or is a dark horse going to come up? we'll handicap the race and implications for future fed policy next. we asked people, "if you could get paid to do something you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you

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markets also have tension over syria as president obama obama defends a u.s. ovechkin oe russian deal to rein in chemical

weapons and avoid an imminent military strike. >> as a consequence of the pressure we've applied, we have sir why for the first time acknowledging that it has chemical weapons. >> and the race just got tighter for angela merkel. her sister csu party wins an absolute majority in bavaria but the chance of renewing her center right coalition in national elections looks dim as the fdp fails to make the cut. plus, is sunk in january 2012 taking 32 lives. today the operation to salvage the wreck of the "costa concordia" cruise ship begins. it's the most expensive salvage operation in history. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. and if you've just joined us this morning state side, very warm welcome to you. we're starting your global week here on cnbc and "worldwide exchange."

futures looking pretty strong. the post of the summers news. currently the s&p 500 is around about 21 points above fair value. the nasdaq is around 36 points above fair value. the dow at the moment is about 195 points above fair value. this after slim gains on friday. fats si up half a percent. up to 33%. the ftse was down 35 points. the xetra danks is over 100 points higher, 8,610. cac carant is up. so the markets on the front foot of the beginning of the week because of mr. summers in large part but also because we've moved away from any imminent action in syria.

>> if you look at high yields, we think the corporate fundamentals are strong. we would rotate more towards bank lone type investments. i think high yield will continue to be a good thing. >> i think they've had a few fashion skews as well. it's the early days but it's very strong. eventually it will turn itself around. >> what i'm trying do is unlock that amazing technology and, you

know, if you can get a cancer cure and on tow mize a treatment, that will have a profound effect and it will create the industry. >> meanwhile, we're awaiting a press conference out of paris from the u.s. secretary of state, john kerry. he will appear alongside william hague. this follows their discussions this morning on syria where they've said they want a strong u.n. resolution. meanwhile, in a bit of a shocker this week end, larry summers, long seen as the number one favorite to follow ben bernanke, has pulled his name. we're at cmhq in the states, hi, seema. >> that's right. he faced fierce competition in recent weeks to his potential nomination from within the

democratic party. that severely hurt his chances to be confirmed by congress. at least four democrats, the latsest being montana's john tester, said they would vote against him. he was seen as the front-runner. he's been dogged by controversy, including his support for financial deregulation while at treasury in the 1990s under president clinton as well as comments made about women when he was president of harvard. summers acknowledged it's a tough fight on capitol hill. any possible confirmation process nor me would be acrimonious and would not help the interests of the federal reserve or that of the federal reserve. the president says he accepts summers decision.

summers moved to open the door for janet yellen. she's had a long career at the fed and chair at the white house economic advisors under president clinton. she would be the first woman to lead the central bank. president obama is considering other people. former fed chairman don cohn has been mentioned. he retired from the fed in 2010. former treasury secretary tim geithner is a popular choice of the white house but he has repeatedly said he's not interested in the job. this is a story that we'll continue to watch on wall street, ross. >> seema, thank you for that. joining us, chief investment officer of commonwealth financial network. brad, good morning to you. the clear direction is summers is gone, therefore, any other candidate is more dovish. how long does that sort of relief last? >> oh, i think there are two things going on here. first of all, you saw the markets react to the potential

for the fed to start tapering the stimulus. they bid prices up, bid interest rates up, i should say. that has started to recede already. the fact that you have probably the most dovish candidate as the front-runner obviously has to alleviate worries. >> we are going to start tapering? >> well, that's what they say, but if you look at the weaker economic data that's come in, i actually don't think that's a lot. i agree with you, that's the probability. that's the perception. i don't think that's 100% bet at this point. i think the fed might look at some of the political issues and say, well, no, it's not going to kill us to wait, particularly given the weaker employment report. >> won't that be more confusing? wouldn't we be more comfortable with the fact if -- wouldn't we be more comfortable with the

fact, start it. we have a little bit more certainty. i think if we don't do something it causes more uncertainty and that causes more problems. >> i don't disagree with you. i was more iffy about the economic case. as a signal to start backing off in a small sort of way. i agree with you, i think that makes sense. given the market expectations i think it would cause more uncertainty. i think right now given the fact that the summers nomination was withdrawn, you have a situation where the fed wants to alleviate that uncertainty as much as they can. that may be factoring into market expectations as well. >> brad, good to have you on this morning. stick around. five years on from the momentous lehman brothers bankruptcy, what was really to blame? who paid the price? how do we make sure it never happens again? we'll look back on the collapse right after this.

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the president, barack obama, will speak today at 11:40 eastern from the white house rose garden on the fifth anniversary of the lehman brothers collapse. they issued a report on the u.s. government response. several items, how the treasury covered top invest. , and gauging the solvency of banks and the successful bailout of the u.s. automakers. brad, how much has really changed, do you think, post financial collapse? we have still institutions that are too big to fail? >> absolutely correct. the too big to fail problem has not been solved. there has been significant progress made, but it's largely been on a voluntary basis by the banks.

they saw what they had to do and did it. from the regulatory standpoint, actually i think some progress has been made but certainly not as much as could have been or should have been and too big to fail is at the core of that. >> what do you think the biggest risks still remain? >> i think the biggest risk out there remain in leverage. in other words, we don't really understand the implicit leverage that is based in a lot of the derivatives exchanges and a lot of the off-the-exchange trades. that have the that's where we had a lot of obscurity. we had a lot of damage in the last crisis. there has been little area there. the obscurity of the market where banks can build up exposures and no one can really see what's going on. >> yeah. i suppose maybe the thing that has changed basically is we no longer think that bankers know

what's going on. >> well, i think that's -- from a systemic perception, there used to be a way that markets knew where to go. bankers wouldn't do anything stupid because it was in their own self-interests to do so. the theory remains sound, however, the execution as we've seen, they don't really know. they did not know at the time exactly what risks they were taking and because of that, you know, i think the argument against regulation has certainly taken a knock. >> yeah. the regulation, good regulation, bad regulation as we know. meanwhile, barclays which bought the u.s. operations of leemans after its collapse says the too big to fail threat does loom over the financial system writing bob dimon says regulatory arbitrage continues to weaken banking. companies including barclays were over leveraged in the boom years. so we want to hear from you. do you think banks are still too

big to fail? join the conversation on "worldwide exchange." e-mail us or tweet us or directly @rosswestgate. the president has a full agenda, of course. he's also blaming conservative republicans for a stalemate in the u.s. budget with a possible shutdown in two weeks and a debt default in october. they're trying to make defunding the president's health care a condition for raising the debt ceiling. the president says whilst he will deal with the congress on the budget, he won't negotiate on the debt ceiling. >> when it comes to budgets we never had a situation in which a party said that, you know, unless we get our way 100%, then we're going to let the united states default. >> the president said he's also waiting to talk to house speaker john boehner on sequestration. boehner hasn't yet responded in

kind. meanwhile, here's a recap of the headlines today. if you've just joined us, the summers effect. stocks rallying and yields fall on news that the former treasury secretary is out of the running to lead the fed. u.s. and its allies call for a strong resolution. merkel's sister party wins bavaria but the coalition party fails to make the cut. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.

like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more. at&t mobile share for business. ♪

with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪ secretary of state john kerry's been in discussions this morning with his french and british counterparts. they want u.n. security council to prove a strong resolution and

this would be a resolution with regards to syria and searching for chemical weapons. if they don't hand them over there will be implications. this is the french foreign minister currently speaking. they're discussing syria with the turkish foreign minister as well today. clearly there's been an easy back which has helped goad it. meanwhile, some of the other stories that we're following today. rescuers in colorado are being hampered to reach flooded mountain towns. four people have been confirmed dead. two others are pre150u78d so after the houses are washed away and 1200 are still unaccounted for. flooding has de12r0ids 1500

homes and damaged more than 17,000. s&p has cut its outlook on chicago to negative from stable citing risks of how the city will be able to announce its mounting obligations. $19.4 billion as of last year. under illinois state law the third biggest u.s. city must double its annual pension payments to bring funding levels to 90% by 2014. europe inweek wiequities ar. we have xetra dax. 3/4% higher for the french markets as well. as for the agenda in the united states, fairly light for data as investors await the start of a two-day fed meeting which begins tomorrow. the september empire manufacturing survey is out at 8:30 eastern. it will be followed by august

industrial reduction and capacity utilization at 8:15 a.m. the surprise announcement that larry has pulled his name. the futures are up fairly strongly this morning. recap where we stand. dow futures 89 points high. we're being joined from chicago. brad is still with us as well. ben, how do you see the week kicking off there? >> well, i think we have to wait to see what type of continuation we get off this extreme bid. news related albeit, but this is really just continuation of the activity. strong bid activity that we have been seeing and for the most part have been continuing to see. a lot of investors, a lot of traders concerned about this

fmoc meeting thinking that we'll see, if you will, the beginning of the end, the beginning of starting to taper and starting to see the end of the stimulus, the qe 3 type activity. a lot of traders are talking about what that really means in terms of the economy. me personally, i feel like it's a sign that we're seeing strength and that we need less stimulus. that will be digested and interpreted in a few different ways. that's the focus right now. again, the s&p as we're looking at these upper levels as i mentioned, we're seeing the new highs. the nasdaq led the way for the most part. i think this is some continuation and follow through with last week's move. what we need is whether we reject these recent highs or whether we accept them and continue to establish value to the up side. that's been the strengths of this market basically since off of november throughout the summer for the most part on that

continuation, that migration of value to the up side. this is really just furthermore follow through associated with that. >> ben, if yields were -- ten year treasury yields were higher going into the fed meeting, if they were still around the 3% mark that we hit post the jobs number, i would have thought that the fact of tapering might have brought them lower. the fact that we've now seen a bit of a bid on the summers news, i wonder whether it's taken away the chance for that to be a huge reaction on tapering? >> no, i think there's still reaction. it's not that the market doesn't like summers, it's that the market feels comfortable with yellen in terms of policy and this isn't making process. i think the market feels that there's more correlation and more similarities in terms of the yellen kind of tape or consensus and approach towards things which is very similar to the greenspan approach. i think they're looking for --

investors see this as a more seamless type transition. there's been watching it come off the futures and 150 since may. it slowed. the interest rate rise we've seen has slowed a bit. there's still some potential for big energy to the down side. i feel like that market very similar against the s&ps and in many ways the opposite of the s&ps. that market has been establishing. clearly interest rates will be on the rise. we've been keeping an eye on that. >> brad, bring you in here. how much of a hurdle is a 3%-year-old for ten year? >> i don't think it's a hurdle at all. i think it represents a normalization of the economy. we've seen overall a wide range of strength for the economy. autos continues to do well. autos continue to do well. employment continues to

increase. not as quickly as everyone would like certainly but we are seeing the ongoing strength. when you actually look at where the economy and the market does beth, interest rates reflect normalization. for interest rates to go to 3%. that simply says that the fed is acting appropriately. markets are actually acting like we have a real normal healthy economy. that's actually an enormous positive step. >> okay. >> brad, we'll let you go. brad, chief investment officer for the global commonwealth. hope you have a good day and good week, ben. that just about concludes today's edition of worldwide exchange. coming up, "squawk box" will couldn't you down to the action to the beginning of trade this week state side. futures looking pretty positive as you can see. whatever happens, we hope you have a profit annual day. good-bye for now.

good morning. today's top story, larry summers withdrawing his name from consideration as fed chairman. the global markets are taking notice. dow futures nearly 200 points above fair value. stocks in asia and europe are rallying and the dollar, what a shock. down against the yen and euro. it's monday, september 16th, 2013. "squawk box" begins right now. good morning, everybody.

welcome to "squawk box" here on cnbc. i'm becky quick and ben kernen and ross sorkin. the so-called hawk larry summers bowing out of the race for the new fed chief position. the former clinton treasury secretary called president obama yesterday to notify him. in a letter to the president falling the call he said he have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interest of the federal reserve, the administration or ultimately the market recovery. for anyone who thought yellen and summers were the same, the market doesn't think so. europe is following suit. if you take a look at what's been happening there, you'll see right now markets at least