hello. you're watching "worldwide exchange." i'm ross westgate. your headlines around the globe. effective international action is being called by the russian president vladimir putin and angela merkel as tensioned heighten in ukraine. and the inspector general warns that ukrainian unrest could tip nervous investors over the edge. >> it is tense. it is having an effect in the confidence. it comes at a particularly awkward time. the government in lisbon

says the country will return to the market following an exit from the cleanout measures. and cnbc is told that economists are off track and inflation in his country is under control. >> economists in the private sector, in the past three months, they have been consistently wrong. you're watching "worldwide exchange." bringing you business news from around the globe. hello and a first welcome to the first "worldwide exchange" of the week. a remind they are a the u.k. markets are closed as a holiday today. more on that, but first we kickoff with the pro-russian

rebels rushing a station in russia after a fire in a building being occupied bicep atists. the prime minister has criticized the police force for not doing enough to stop the clashes and blames moscow for not interfering in the country. >> it seems to me that the entire world is facing a new type of war. this is the new war. with the military with insignia on their uniforms and the agents with a well organized terror plot network, with the diplomatic pressure on ukraine, with the tough and rude russian propaganda, with the plain ukrainian sentiments and not on

only ukrainian. >> and angela merkel is trying to threaten off the oil crisis. ukrai ukraine owes russia $3.5 billion. and they have announced talks of cooperation with europe. joining us now in paris, steve? >> hey, ross. just on the geneva one and two accord, i have to remind viewers that if anyone, both sides here, are able to enact geneva one, then maybe we wouldn't need a gentlemeva two. one is military weapons and all kinds of issues on its side.

two, pro-russian sectors would leave the buildings and disarm on the other side. three, the talks begin about greater tax for the regions that in the south as well. so if all those things were enacted on both sides, i don't know what to move forward than to get out of geneva one even if it was enacted. now we'll move on to the danger. you heard the acting prime minister in kiev talking about his concerns that this would have geo political manifications from this. yes, the dow is trading at its first yearly high, record high last week, but there's a real concern that economically this could have ramifications even though the world seems to have ignored it so far. we'll listen to what i was told yesterday about his concerns of how this would hit sentiment in the market and broader economy. >> it is tense. it is having an effect in the

confidence, just at the time we're trying to build the confidence again. you know, the confidence is broken with pieces all over the floor. we are trying to pick them up with crazy glue and suddenly this happens. it is not because of the link to trade or finance with the rest of the world or ukraine, even less so, they are relatively modest. but the question is this is affecting the systemic confidence. and this is coming at a time when we are trying to build b k back. so something like this is never good, but it comes at a particularly awkward and inopportune time. >> i liked how he described it as crazy blue and getting ourselves back on track. i like that one. we'll get the russian side as well. we have heard a lot from the west. i'm delighted to be joined by professor vladimir mo from the

national public administration in moscow. sir, thank you very much for joining us. you have been giving me a history lesson off camera and would reference that, when did economic rational take a secondary place to what is happening on the political front in the kremlin? >> well, we would start with the limitation well-known in russia that politics is a concentration expression of the community and of course this does matter, but don't forget that the russian economy is in many cases in quite good shape compared to the most advanced economy in the world now. the key positive elements with russia is that they have a balanced budget, external debt is below 2% gdp.

and the debt is about 11% of gdp, almost nothing. russia has growth rates below 1% right now. it will be at half percent, 1% or something. even recession, but again, this has nothing to do with international politics. russia has reached the level and all growth problems emerge from previous few years. >> let me protest that assertion that it has nothing to do with the political event. my colleague was told that there's $100 billion of ruble worth from the country this year. u.s. business leaders are being told by the president not to attend this economic international forum. rates are willing lifted to 7.5% by the central bank at a time when the economy is potentially growing as well.

all these political events are adding to the russian economy at a time when they can least afford it. >> yes, but all the pressure comes from previous yield, too. it is not about ukrainian events. again, when we speak about capital flat, we have to understand that it is not money physically going out of russia. the most part is people redistributing their assets from ruble to dollar, but when you have about 12% inflation within the last year, it is reasonable mean that is the russian rate is flexible and russians prefer to shift into hot currency at the moment. again, it is very reasonable and rational. money isn't the -- speaking about increasing interest rate, again, to me it's very good indicator because the real danger of russia is not

deflation as in advanced economies in the west. the key problem for russia is up nation to my mind and the ability of the central bank to be a positive indicator. >> there are concerns about liquidity for russian corporates, about the capitol flight as well, so no coincidence last week there was a story in the financial times saying the most expensive property that sold flat in london was 140 million pound property bought by a russian purchase as well. there are concerns about fdi not coming into the country. there are concern that is russian corporates are starved of cash because of the low valuations because of the crisis. valuations trading below half the merging market level. >> of course course, this is a serious problem but it has primarily institutional and economic ground. again, political politics does matter.

politics is important, but again, all these problems in russia faced a year or two ago, and this is very important. it is very dangerous to my mind to concentrate on current pieces. the basic idea, the basic problem is that russia, which was developed in the previous ten years, faced to the finish hold of conflict between institutions and economic prosperity. >> so we'll leave it there, but it is very good getting the education about where the rational comes and i think that was very obvious. thank you for your time today. professor vladimir mo from the presidential economy of national economy and public administration. ross, i know you already had your lenon politics, but if we

had read lenin more properly, we would know what mr. putin was talking about. mr. pickety comes to mind, ross. >> yes, he's getting a lot of press, mr. pickety. i'm not sure i agree with it. >> i'm still reading michael lewis. >> there's a lot of holes to pick with mr. pickety. steve, thank you. plenty of great history lessons coming out from steve. right now here we are, just an hour and 11 minutes into the trading day in europe. and you see red across the board. just worth pointing out, gray here for the u.k. with the markets closed today. they'll have their beginning of may daybreak today. the dax, we saw stocks dip down toward the end of the session on friday. down 13 points. the cac is down .20 as well. the micex is just up .10%. a number of individual stocks

worth looking at, credit suisse is currently down 2.5%. press reports that u.s. authorities are going to put pressure on the suisse bank to plead guilty in the ongoing tax dispute according to the newspaper. washington is asking for a guilty plea to claims that the bank helped tax money. bmps is down 6% today. finally shares in the bank are up a percent offering rights to a 500 million capital euro increase. we'll show you where we stand, we have a fascinating move on the treasuries. ten-year treasury yield, 2.58%. we have been at three-month lows with the yield of 2.57%. payroll reports on friday. remember, 288,000 created in the

unemployment round down to 6.3%. yields did rise five basis points, but ukraine issues and geo politics overshadowing the gains in the unemployment report and we have a rather big threatening on the treasury yield. keep your eyes on that. and it is worth pointing out, spanish yields here are below the 3% yield down to the 3% mark. we went to 3% for the first time in nine years. on the currency market, the dollar is on the back foot. the yen hit two-week highs with the dollar losing the gapes from payrolls. 103 on friday. 108.86 over the session. euro/dollar, 138.12. back up to 178.83 this morning. that's where we stand in europe. sri has the action in the chinese numbers at singapore. sri? thank you.

the china pmi was the big thing today and it was a fairly negative one. this is the final hsbc number for manufacturing activity as going by the pmi. came in at 48.1 versus the flash figure of 48.3. so contraction of moving lower into moving further into contraction territory. so that contraction deepening in other words. when you look at the sub components, fairly negative as well. especially the negative exporters with more contraction there. we saw a slowdown in the second world economy that hit the hong kong market squarely down by 1.3%. the shanghai composite is consolidating just about 2,027. you have to remember that volumes that much more thinner on the ground because japan is not trading today with a public holiday over there. elsewhere, you've got to look at the china print through the

prism of the currency markets. very negative. the aussie dollar was clobbered. at one point it was below 92.60. it has bounced off that session low, but that is just indicative of the stress lines that this data is creating. there's more to come as well, ross, later this week. the services sector numbers as well as the trade data. we'll get an idea of how sluggish external demand is for chinese goods later on this week. back to you now, sir. >> sri, we look forward to that. catch you later with more to come from singapore. well, the bank of japan's positive outlook on the inflation target may have come as a surprise to some bank of japan watches. but with the impact of april's sales tax hike taking effect, is it really within reach? susan lee has been speaking exclusively to the governor and asked him to justify his optimism.

>> i think two things we have to be careful, one is, of course, the impact of the consumption tax hike. another is the nature of the recovery this time. first point, yes, just before the consumption tax hike, consumption on expenditures on automobiles, et cetera, they soared. and now they declined quite sharply, but the decline after the tax hike has been, as we expected or even less than we expected. so the decline appears to be not so large. so we don't think negative

impact on consumption of consumption tax hike would be contained. and the economy would start to recover in the third quarter by september. >> why are you so optimistic? because again, economists predict we could be in recession. >> but, you see, i don't -- economies in the private sector, in the past three months they have been consistently wrong. one year ago they predicted that deflation would continue, but now when we start new monetary policy framework, inflation rate was negative 0.5%. now it's positive 1.3%. so in 12 months, the inflation

situation has changed. all right. plenty more to come on the website as well, cnbc.com. we'll be speaking to the finance minister of indonesia. you can catch that interview in 15 minutes. also we'll hear from the indian finance minister in around 30 minutes. and also coming up, could this green van help provide a jolt to the spanish economy? we'll be in barcelona with the car's european chief right after this.

now i just found the most expensive house in america has been bought by a hedge more. the new york post says barry rosenstein is paying 107 million for this breach front property in the east hamptons on new york's long island. jerry seinfeld is a neighbor and christopher brown is of the tweety brown investment firm.

140 million pounds would make it more expensive, which is now the city's most valuable property, so are we entering another real estate bubble? can prices go higher for the super rich? let us know what you think, e-mail us at worldwide@cnbc.com. or tweet me@rosswestgate. global production of the first all electric van has kicked off. the firm has chosen its firm in barcelona to make the vehicle to span half a billion euros. the spanish plant will be the soul global production site for the van which will then be exported around the globe. joining us is paul wilcox, the european chairman in barcelona. paul, thank you very much indeed for joining us. how important is this product, is this van?

>> reporter: this van is all electric and the second we brought to europe after the construction of the first one. so this is very important. >> yeah, what's the range on this van? how far can you go before you have to recharge it? because with electric vehicles, that seems to be the key thing? >> reporter: yeah, the van will run 17 kilometers on a full charge. and the charging infrastructure in europe, we have over 1,000 fast chargers in the european market. and we're very confident because of the worldwide usage was that you never use more than 107 kilometers in a day. so we know it's a vehicle with great application for many, many commercial operators. so it's a massive cost advantage in terms of running the vehicle and charging it is extremely low. >> this is the plant that will ship them throughout the world, what is your production target for the first year?

>> we have a flexible production model here in barcelona, but yes, it is global, so this will be the mother plant. the mother plant means the source of the production of exports all over the globe, back to japan and across europe and all markets will take from this plant. which is obviously very important for spain and very important for investigatement in europe. >> clearly this is very important for spain. an economy that is still dragging itself off its knees in place of the financial crisis. and also, the day you're building in spain, which needs an investment, we are also dealing with a rather strong euro. how do you hedge that out and minimize the impact? bear in mind, it's a euro denominated export going for the rest of the world. >> well, this takes a very long-term view. obviously currency fluctuations depend on a monthly basis depending on where you are, so

this is specifically because this is a sensor of commercial excellence on this end. so we have a long-standing history and long-standing production plant that we have in europe and it is a sense of commercial vehicle excellence. so we take a long-term view in terms of the commitment. there's over 100 million euros of investment into barcelona and means more products are being brought to barcelona. we have a hatchback coming in the second half of this year, so we are very committed in spain and we have obviously that strong investment. currency fluctuations impact us every day, but this one takes a long-term view. the most important thing is the quality, the delivery in terms of quality within the product and the consistency in terms of cost. and we know this is almost a world-break i world-breaking facility. >> and you have an important facility in the u.k. i understand your plant in the northeast produced more than a million cars in just two years,

and the first plant to do that. it's a massive plant for a key investment. are you worried, therefore, by the discussions that are going on in the u.k. at the moment about the eu? >> yeah, we don't speculate until we see what is -- what is actually materializing, so we never speculate on what is happening. the other assumption is that this is the number one car manufacturing plant in the u.k. and half a million cars will be built this year. again, it's a world-class facility with the highest quality on this end. it competes at a global level. and i actually believe that will continue, but we won't speculate on any kind of physical situations in terms of the eu. >> the european car industry is struggling with over capacity issues, is that changing? i mean, are we going to see a lot more restructuring for the

industry as a whole? >> well, i think it has been, obviously, hugely traumatic. the market has been under huge pressure over the last three years. we have seen contraction in europe. we are now starting to see the grinch's recovery. in the last three months we have seen the market recover. so from a european perspective, we see the market becoming a little more stable. this is kind of a unique situation. 80% of the world in europe is regarding brand. and if you look at the southern plant that you just mentioned running on three shifts, we are working on a three-shift patent. so this doesn't have the capacity to do that, but we know the industry has. i cannot comment on all that but the market is becoming more positive. we are seeing demand increase. so certainly from this

viewpoint, obviously, more investment in spain with continued focus as we build over a half million vehicles and will sell them this year. >> paul, thank you for joining us. we'll see what happens with your electric van. good stuff. paul wilcox, joining us from barcelona. still to come on the show, stay tuned to hear what i would kn indonesia's finance minister wants to do with the situation there.

in headlines around the world, vladimir putin and angela merkel talk over tensions in ukraine. and could this put the market over the edge? >> it is tense. it is having an effect in the confidence. it comes at a particularly awkward and inopportune time. the return of portugal. the governor in lisbon will fully return to markets following their bailout measures. and bank of japan tells us that economists are off track and inflation in his country is

under control. >> economists in the private sector, you may know in the past 12 months they have been consistently wrong. >> all right. we are an hour and a half into the trading day in europe and are taking a lurch to the downside. the u.k. market is closed and has a bank holiday today, but we are now off 8% for the german, french and italian markets. about a half hour or so ago, we are off .10%. a bit of a lurch to the downside. bond yields are getting big as equities get sold off. this is where we stand with yields at the moment. we are below 3% on the spanish and dipped below 3% for the first time in nine years at the end of last week. just above it for italy. then we have treasury yields, 2.58%, just above a three-month low. we did see treasury yields spike

up post the increase in payrolls. the current situation really outweighed the benefits of that. and we have a bit of a flattening on the treasury curve. now the currency markets, the dollar has also lost all the benefit on the payrolls. the dollar/yen below 102. we hit 103 on friday. eu euro/dollar is 108.34. the first gdp growth is narrowed to $670 million and national investments weakened. speaking with cnbc's susan lee, the finance minister said his country needs to rely less on the u.s. federal reserve. >> this is what we discussed, if you recall last year, at the g20

meeting in moscow and st. petersburg, many emerging market are affected by this, but we cannot blame the fact of this policy. the emerging market needs to do their homework as well. if you look at the similarities between india, turkey, south africa, indonesia, brazil, we got a problem in the current deficit on the physical balance. so we need to get our house in order. i agree with that, but once we get our house in order, it's very important to have this communication because policy is an effect on the emerging market, so we need some clarity. and i think in the past several months the communication has been better. at least we know some indicators about the employment rate to become sort of like an indication whether we will continue with the tapering off and later with the interest

rate, but in a continuation of this communication is very important, and i see that the situation is much better. >> so you spoke to yellin at the g20 meeting, did she tell you she was going to raise rates when the unemployment rate went below 6.5%? >> i gave an intervention at the meeting of g20 and mentioned the importance of the communication and collaboration of the impact of the emerging market, but it seems to me now that we have a better communication. that is why, let me give an example in the case of indonesia. since my colleague from the central bank has interest rate in the beginning, when the fact can give us a signal of what's happening for the long-term interest rate, then maybe the central bank can prepare for that. >> what type of signal, do they hint to you?

>> of course not, but if you look at the unemployment rate of the job market, for example, in my view there is a possibility that they will expedite what they bring off, that maybe later on the possibility of the raising of the interest rate. and we'll also hear from the indian finance minister in 15 minutes time. joining us with his thoughts, the head of maybank. thank you very much for joining us. what happens to the -- clearly we went through tapering fears last year, is the pressure fully off now? >> in some ways yes. you see, we have seen a bit of flows back into the emerging market, asia as well as indonesia, so we have seen a few bond flows over the past few months into indonesia, so we are

still not there yet. the current deficit, for example, one of the many issues is on the indonesian front is still a concern. today's gdp numbers, for example, are slightly lower than what consensus is expecting. it's not reflective, more or less on consumption, because consumption is still strong there. the export growth numbers are weak causing the weakness. so we still are expecting positive numbers in the second half of exports, so they should be supportive of the indonesian economy. the worry is for indonesia on the political front, some of the election has led to a bit of slight upflow. you look at the numbers on the portfolio upflows and you see a bit of slight weakness a bit in terms of inflows going into indonesia, post parliamentary election, so a bit of concern from that front, but what you are seeing in terms of the ideal

weakness over the past weeks or so does a bit of a -- there's a bit of corporate demand on the front of the dollar. >> i heard the finance minister say we need to get our house in order and you mentioned the instability that may come from elections as well. what do you think nay need to do more of? >> i think we have two key things coming up into july and over the course of the first presidential election as sort of a finalized thing, we have one in september. the key thing is the parliamentary intersectielectio meet expectations, but it streamed to a more comprehensive

result for expected president l presidential -- we know in july you need more concrete plans in terms of economy policies. i suppose post-presidential elections as well in terms of why the economy infrastructure plans are for indonesia going forward and how the cabinet will pay out as well will create a little volatility in my view toward the latter part of 2014 and into the early part of 2015. so economy policies, structural policies will be key in terms of giving indication and also giving a consensus of flows into the country for over the next 6 to 12 months. >> clearly that's indonesia's own issues. i suppose the big thing for southeast asia is actually what is the main thrust, the main move for the dollar. and we've got this flattening yield curve at the moment, it's a strange jobs number, but not a

big move up high in ten-year yields. what do you think happens to the dollar as we go throughout the course of the year? >> my view is for the dollar, it's probably going to be -- it's going to be very tight range, pretty difficult for undertrading flow in terms of low volatility. so you're seeing a bit of trade going on. so my view for the dollar, in fact, is for the first and second quarter of this year, you're probably going to see the dollar, u.s. treasury yield dynamics being way down, so a bit heavy towards the 250, 260 or 270 range. but eventually strengthening for the dollar in the fourth quarter because my view is that i think the strengthening of the u.s. recovery probably will be toward the latter part of 2014, the second half, you might see better numbers in the second or later part of 2014.

you might see a change in the reor theics of the fed toward the end of 2014 as it finishes its taper process toward the end of 2014. so the dollar should marginally be stronger toward the later part of 2014 but remain a bit weaker or flattish up until the third quarter 2014. >> okay. thank you so much, indeed for joining us. good to see you. >> thank you. for the fourth month in a row, china manufacturing has contracted the hsbc final reading of china's pmi for april came in at 48.1. more evidence that the momoment slowing. new orders are contracting in april. and australia's idol could be broken. the resources are teaming up with an australian partner and bidding $1 billion to take over

economy resources. this would open up a new idol export region in western australia. as the partners plan to build a new port in the area, this sent shares rocketing 39%. as for for asia tomorrow, we expect greats to stay where they are. the aussie dollar as well, we get the trade figures out at 9:30 singapore and hong kong time. and on the earnings front, we get taiwan's htc with the first quarter figures. that's politics clashing with pro-russian protesters in ukraine this weekend. kier simmons has this report. >> reporter: masked men opposed to the current government splash

the door of a police station in odessa. 30 pro-russian prisoners were freed, cheered by the crowd. heroes, they shout, and we will not forgive. more than 40 of their number died in a fire in a union building on friday. today locals paid their respects at the hands of an unknown victim imprinted on the wall. the fire is the country's worst atrocity since february. the pro-russian protesters blamed government supporters. the prime minister visiting odessa blamed russia. >> this is the part of the russian road map hard to grab and to eliminate ukraine. >> reporter: and criticized his own police for failing to stop it. one group of officers responded throwing their shields to the floor. we haven't entirely lost control, the prime minister said. they have in the east. here pro-russians drive tanks through the streets and

elections are planned in ukraine this month. now some are asking, how can they be held amid all this? >> the ukraine has been dismembered. the election of may 25th cannot go forward. >> reporter: in another recent town, a bank burns. this time thankfully no one is inside. and nearby fury on the streets, chaos in a country breaking apart. here in eastern ukraine tonight there is a tense calm, but it's reported that russia's president putin has told germany's chancellor angela merkel that ukraine is on the brink of civil war. there will be another opportunity to avert that outcome in talks later this week that will include the u.s. >> keir simmons with the latest there. this is following the german response and anne is with us in

frankfurt. this call for putin with angela merkel, annetta, what more response are we getting from the chancellor? >> reporter: for now that's it from angela merkel and the chancellor, but it seems as if at least that is custom with the german media. if angela merkel is more and more shifting in the hard liners, remember, she sided with barack obama over the weekend and said, well, if those elections will not happen and if by the time of the election at the end of may, the national order in the east of ukraine is not secured by the russian forces or by russia at least, then there will be more sanctions, so-called economic level sanctions. that's the first time that these kind of sanctions have been tied to the elections and that angela merkel also signed up to that

threat. before the rhetoric was always that only when russia invades the ukraine, then angela merkel will also say yes to a tighter economic sanction. of course, she has a big group behind pushing her not to go down the path of economic sanction as a lot of german companies have a huge interest in a good functioning of the russian economy. but that it is for now, i have to say, quite surprised, but the german defense minister is still taking on a softer tone in that whole discussion asking or calling for a second geneva summit without the first one actually having delivered on those results. they agreed on this and we'll see a double side of the strategy here out of germany. for one side they have the defense minister being a little bit soft at its tone, and also now angela merkel more and more

siding with the hard liner camp in the united states. with that, back to you, ross. >> annetta, thank you very much. that's the latest from frankfurt. also still to come, flying high. could a european recovery be said to ignite a surge in world trade? we'll be joined by the president of the fedex express to hear why he's bullish about the prospects.

you're watching "worldwide exchange." india's fiscal deficit is a concern with them boosting revenue. susan lee sat down to find out what is the biggest constraint for any new government. >> raising revenue is the first challenge. spending it wisely is a second challenge with a demand on the resources num ross and everybody demands a fair share and more than fair share. >> rwhen you say raising revenus

people think raising taxes. >> of course. >> so do you support the gst tax? >> that was my idea. i imposed that in 2004 for a half dozen states. and now everybody is for that. gsd is the next logical step. there are states that are to posed to gsd. for example, two states led the opposition to gsd and brought the consensus that had been almost reached. be that as it may, now i think people recognize that they made a mistake in opposing gsd, which i welcome, so gsd is my idea, our idea, and we have infrastructure and the design. we have the law already.

i sincerely hope the next government will pass this as the next item of business in a reconvened parliament. >> recently an adviser says congress would actually work with a new government to implement hdst. >> we hope that others will work with the new government, too. others how oppose the gsd will work with the new government, too. it's a two-way traffic. >> but do you see whoever the opposition party is, whoever the new government is, do you see a bridging of differences in the future between parties? >> we will make every effort. my party will make every effort to bring the differences between the ruling party and opposition. >> the new finance minister will count down to the conclusion of the elections. now, fedex says its freight division in the u.s. will raise its fuel surcharge by 3% next month, the world's second biggest parcel carrier.

the increase in cost is from raising fuel prices. this is after a lower expected profit in march and they cut their forecast at the same time. that poor performance was blamed on the harsh winter weather stateside to impact the carrier volumes and increased costs. what's going on in europe? joining us is david binks, the president of fedex express, joining us for his first interview since taking on the role in january. welcome. thank you very much indeed for joining us. >> very good to be here. >> you are almost the fedex boy since 1983. >> it's been a great company to work for, so i'm delighted to be in the current position as president of my local region. >> which is great. we had a mild winter here in the u.k., most of europe had a fairly minor winter, so we saw the numbers out of the u.s. so what's happening with the european economy and how it is impacting you at the moment? >> i think there are a lot of

very good signs. it is really refreshing to finally hear that most economies are not talking about whether we are going to have a recovery but how strong the recovery will be. there's a lot of positive indicators right across the region. we've seen some very good figures obviously in spain. i see that portugal has encouraging signs. the u.k. is strong and consumer confidence as well is on the up. >> is that you seeing package volumes picking up? >> well, it's been a very good fit with what our plans have been over the past couple of years. we have gradually been building out our presence right across europe. we have opened over 100 new carrier depots from as far north as finland down to the south of spain and from ireland all the way across to east poland. and added 2.5 thousand new carrier vans and team members, so we have been expanding to be

in a good position to help european business to reap the benefits of a resurgent european economy. >> what's the biggest driver then for you? >> the biggest driver really, well, what we're trying to do is to get closer to the local businesses in each market. i think spain's a really good example of this. you know, we went through a period where spanish domestic demand was very low. and yet labor supply was excessive in spain. that's enabled them to be very competitive in international markets. we really see our role in fedex to try to get close to those local businesses, provide a local presence, expertise, subject matter expertise, local languages, those types of solutions, but then connect those small, local businesses to a global network. so what we're trying to do is to allow businesses within europe to compete for global opportunities. and i think we're doing a good job of that. >> what impact are you seeing of

ukraine and russia? look, economic terms, it can have a big impact. >> i think the first thing is we are obviously concerned for our people, we are obviously concerned for our customers and their packages that are going in and out to the ukraine. we have adapted the way that we are operating there. i think as all businesses have had to do over the last few weeks. but really, it's a very small part of our total european business at this same. so we prefer right now to focus on some of the positive news and hope that the -- >> but you have to manage the risks, though. >> of course you have to manage risk. you always have to manage risk in any social or political situation, but at the same time it's a big region that we're dealing with and we are very confident of the progress that's being made in other parts of europe that will help to balance that. >> the interesting thing, i suppose, as we look at sort of the logistics in the business is this is a competitive business,

as it always has been with others very much in this. how much -- well, what was interesting here was that we heard about fuel costs going up, which obviously the impression is that fuel has come down over the last year or so, so what actually is going on in europe as far as your transportation costs are concerned? >> well, we obviously tried to -- fuel is going to flow all the time. >> so how much can you hedge out? >> that's a fact of life within the carrier business and logistics business, but what we try to do at the same time is put in specific measures to improve fuel consumption both for the environment and for the cost and for the benefit of our customers. so that's more efficient aircraft, vehicles and locations as well. >> david binks from fedex. job b ; then simply select the best candidates from one easy to review list.

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you're watching "worldwide exchange." i'm ross westgate with your headlines around the globe. vladimir putin and angela merkel call for talks after tensions heighten in ukraine. and that could tip nervous investors over the edge. >> it is tense. it is having an effect in the confidence. it comes at a particularly awkward and inopportune time.

the bank of japan president tells us that they have things under control. >> in the past month, they have been consistently wrong. you're watching "worldwide exchange." bringing you business news from around the globe. a warm welcome to "worldwide exchange." we are just getting the latest iu forecast out. the eu came out with the forecast for the economy and maintained its italian gdp forecast at plus .60%. there should be more on the

eurozone as well. those forecasts are currently being released in brussels as you can see at the moment. the budget deficit for the whole of the eurozone will fall to 2.5% by 2014. these are some of the individual -- we'll see if we can get some of the individual forecasts out as well. they say italian inflation at a record low on weak domestic demand and declining energy prices as well. they have raised the 2014 gdp growth to .60% for the eu as well. so they have raised their forecast for growth for the eu as a whole. joining us with his thoughts, join sylvia, chief economist at wells fargo securities in charlotte. always a nice place to be. nice to see you.

the eu is raising their forecast for eu growth. how confident are you about the foundations for this recovery in europe? >> yeah, i think the foundations are really the key because there still is reform that has to be done. there still is some long-term budget issues. if we can combine stories a little bit, clearly the whole ukraine an situation has an influence on energy prices and energy availability in europe. so i understand the estimates but to me it's a little bit more of a downside risk, perhaps, son some of the numbers. but in addition, it seems like the ecb will probably stay easier for a longer period of time combining that economic outlook along with the you crain crain ukrainian situation. >> the ecb has a reference rate of 2%. do you think low inflation rates

on its own, should they be thinking of quantitytive easing if up nation continues to decline? >> i would say they have to be thinking about quantitative easing. there's no doubt. you don't have a lot of room to play with here. you know, less than 1%. also, you know, once again, you're thinking about looking at two, three years out. yes, i think they definitely have to be thinking about it. and at this point in time, it's probably going to be an even split. when they come to voting on this issue, it's not all that comfortable. you know, your margin for error isn't very big here. >> yeah, look, just compare where we sort of traveled with u.s. equities compared to european equities and where the marginal rate of growth is going to come from. what do you guys at wells fargo say about the more attractive equity market? >> yeah, over the next five to ten years, the more attractive market would have to be the united states. it's an above average economic

growth. we really don't have much of an inflation problem at this point in time. i think the fed is probably going to be perhaps on average a little bit easier than the ecb in terms of policy. so over the next, you know, reasonable time horizon in terms of investors, three to five years, i've got to believe that the u.s. equity market is preferable. plus, i think quite frankly less political risk. the ukraine situation, russia still is, i think, a long-term unsettled problem, less political risk for the united states. >> we'll talk about that and how that all mixes in with the important report for investors today as you get a cup of coffee and we'll come back to you. if you are just joining us, this is where we stand with u.s. futures. we did dip down on friday despite the gain in jobs and the strong unemployment report. we were up for the week.

this morning the nasdaq is currently 13 points below fair value. we are around 7.5 points below fair value for the s&p 500. and at the moment the dow is 60 points below fair value. the london market is closed today. london is closed as they have their early may day holiday today. so without that, the dax is down 1.4%. the cac is off a percent. and the ftse is down 1.3%. just an hour into trade, an hour or so ago, we were near .10%. so we have take an dive for the worst in the last 60 minutes. and in the bond markets, we'll show you where we stand with yields at the moment. spanish yields still below 3%. we went below 3% for the first time in two years. big flat for the u.s. treasury with ukraine helping sentiment for investors boosting support

for treasury markets. and on the currency markets, the dollar has given up the gapes from the payroll report. the dollar/yen at 103 on friday. now at 102. euro/dollar at low 138.74. that's where we stand in europe. weave had china hsbc here as well. what is the reaction to that number? sri has more from sing support. it's been fairly negative as you look at the market of the aussie dollar sensitive to the data. we did see it drop against the u.s. dollar. it did recover some of those losses but still quite a stressful impact on the aussie after the pmi. this is the final reading from hsbc for the month of april with manufacturing activity, 48.1 versus 48.3. we saw shrinkage in the new export orders component.

so all in all, this is a fairly ropey figure. the hong kong market got hit quite hard by this just under 22,000. down by 1.3%. but you have to remember that volumes are thin to the ground with outside reactions, outsized reactions in the market because the japanese markets are closed for a public holiday. and we also have pmi numbers on the service sector as well. not in the distant future and the trade data this week, we'll see how sluggish the external progress is. >> thank you, sri. one of the reasons the equity markets are so low is because pro-russian rebels stormed a police station in odessa freeing 67 activists following 40 people dying in a fire in a building occupied by the separatists. the interim prime minister of ukraine criticized the city's

police force for not doing enough to stop the clashes and blamed moscow for interfering. at the same time, angela merkel and vladimir putin held another phone call. the german chancellor is trying to seal off an energy crisis after the kremlin threatened to cut off ukraine's gas supply by june. ukraine owes russia more than $3.5 billion. and ja suggestion between the phone call between u.s. secretary john kerry and katherine ashton and the organization for security and corporation in europe. steve has been talking about ukraine at the meeting in paris and is joining us now. steve, you make this point and we didn't get much from geneva one, so it's interesting, i'm interested in what people there think about what the prospects are if we have another gentleman knee have a accord trying to be agreed. >> just listen to the facts,

everyone. or a tweet these days. i've got in front of me what geneva one decide. all sides refrain from violence and rejections of extremism. that has not happen. also, two legal buildings must be returned. that hasn't happened. osc playing a leading role in helping authorities integrate this, but a lot of them were held hostage and now that can't happen. none of the five key factorseva. we need the russians to admit to influence in the south waiting for kiev to get a group on their side off the streets of kiev to disarm the right sector, for instance. then there's trust building on both sides. until people enact geneva one, i don't see the point of going to

geneva one again at cnbc viewer experience. this is becoming beyond a regional conflict and beyond a political spat and manifestation for ukraine and russia. it's expanding. don't take my word for it, listen to the secretary general of the ocd. listen in. >> it is tense. it is having an effect in the confidence. just at the time we're trying to build the confidence again. you know that confidence that was broken. the pieces are all over the floor. we're trying to put them up with crazy blue and suddenly this happens. so it's not because of the linkages on trade and finance with the rest of the world or ukraine, even less so with them relatively modest. but the question is this is affecting the systemic confidence. and this is coming at a time when we're trying to build back. so this is never good. something like this is never good. but it comes as a particularly

awkward and inopportune time. >> we'll hear more about that with the economic outlet tomorrow, but there are real concerns thrown at this to get us even to moderate growth levels. it could all unravel if this becomes an economic problem in russia as well. let me tell the viewers to be very excited because their favorite book out there, no, not "50 shades of gray" but "capitalism in the 21st century" has become mainstream. obama is reading it as well. but this is not enough inclusion in the world and this could be the third part for the crisis in the west if we don't get more inclusion so into the economic system. the top 1% in the u.s. and elsewhere are absolutely making high disposable incomes, and the

other 99% are suffering with low average incomes. so we'll talk about thomas pickety in 25 minutes' time. plus we'll speak to a member of the u.s. administration about what this means for the united states. i bet you can hardly wait. >> no, aim looking forward to that. some of mr. pickety reads like a trade union congress from the 1970s. >> it really does. i know, that's the problem, isn't it? >> yeah. there's a lot -- >> more taxes do. we trust people to spend our taxes if they raise murder of it? >> no, never trust government to spend your money better than you do. right? steve, thank you for now. good to see you. coming up, we'll talk more about the u.s. economy as well. we had a dip in the unemployment rate and president obama a pretty good forum over the weekend at the correspondents dipper. we'll leave you with his thoughts of a receipt trip to asia. >> i am happy to be here even though i am jet lagged from my trip to malaysia. the lengths we have to go to to

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recap of the headlines, angela merkel and vladimir putin hold a phone call as a police station in odessa is taken over.

and we are told the country is on track to hit the 2% inflation target in japan. and warren buffett doesn't want to battle coca-cola over executive pay plans. richard fisher says the fed will likely end its bond buying program in october and won't consider when to raise rates until after that. fish fisher says we'll have to see how the fed is doing including broader measures like unemployment that fell 6.3% in april. more people are dropping out of the labor force and hourly wages are growing. what is it all mean? we are live from charlotte with john birnks again from wells

fargo securities. what do you think? >> well, the fed will probably end the tapering in october. and i think that was pretty much the market consensus. so what the market got in unemployment numbers reinforces what they were looking for in terms of policy. so no change in monetary policy. again, not expecting the fed to be raising rates probably until the second half of 2015. agree again with richard fisher, they are not going to think about raising rates for a while, so i don't see any change in terms of expectations. i think another thing, too, in terms of growth is having a 200,000-plus number reinforces the belief to have growth of 2.5% to 3% in the second quarter of this year. >> now you think with stronger forward looking indicators, we are going to continue to get this labor strength in the coming months? >> yeah, my estimate, ross, is

that 200,000 is a good number to go on. it's a baseline for employment growth. it was also encouraging that you got gains in construction and manufacturing. so that the gains in jobs is broad anything out. that's a good sign. >> right. so look, as we wait, as you say, we wait to see where we are, when do you think the fed will go, midway through next year before hiking interest rates? they have to be on a clearly sign posted for us. >> ross, it's the midway of next year. my suspension is july through september will probably be the first interest rate hike. i think it will be very modest, ross. 25 basis points, perhaps. remember two things, one, housing reacted in the united states to the slight increase in interest rates. second, emerging market currencies reacted. the fed will be cautious in raising rates. i don't think they will be very aggressive at all and inflation stays low.

you don't hit the 2% until the end of 2015, maybe early 2016. i think they have room to play here. >> we have to get more flattening. it's fascinating to see after that jobs number and ten-year yields hitting a three-month low today in the session, 2.57%. >> you got it right, ross. that's a good observation. the yield curve is flattening in a way that tends to be somewhat negative. in the markets, they call it a bear flattening. when the yield curve flat ups because short rates are rising and long rates are steady to lower. that tends to be a negative sign for economic growth going forward. but yes, a flatter yield curve, very important observation. >> but we don't think growth is going to be negative going forward. that's the point, which is a weird position. >> yeah, the yield curve is very much of a leading economic indicator, so it's not telling me much about 2014 or 2015, but

it does suggest 2016 will have lower growth than 2015. so it's a long leading economic indicator. >> joe, always good the see you from wells fargo securities. a thousand people descended on omaha, nebraska, to hear warren buffett speak this weekend. he said independent board members are not that independent and when choosing members, they don't look for dobermans they choose cocker spaniels. it is human for ceos to think they have more power than they do and told becky quick it may not necessarily be a good thing if the company issues a lot of stock. >> there's a wave of that to some extent, but you certainly saw that in the late '60s to extreme degree, but you'll see it periodically every time, they don't think much of their stock and use it as an overvalued

currency and almost always something bad comes from that. >> he also told shareholders he would likely team up with brazil's 3g capital in another takeover deal despite 3g cutting too many deals at heinz. the first quarter earnings were down 4%. and bad weather hurt shipments at its bnsf railway unit. we'll take a short break, but still to come in another exclusive interview, bank of japan's coroda tells cnbc why he thinks we are on track to hit the 2% inflation target. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families

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honestly, the off-season isn't i've got a lot to do. that's why i got my surface. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list, which has been absolutely absurd since the big game. with skype, it's just really easy to stay in touch with the kids i work with. alright, russell you are good to go!

alright, fellas. alright, russ. back to work! bank of japan's positive outlook may have come as a surprise to some, but with the impact of the sales tax taking effect, is it still within reach? susan lee is speaking exclusively to the governor and asked him to justify his optimism. >> i think two things we have to be careful, one is the impact of the consumption tax hike. another is the nature of the recovery this time. first point, yes, just before the consumption tax hike,

there's expenditure among the automobiles and so on. and now they declined quite sharply, but the decline after the tax hike had been as we expected or even less than we expected. so the decline appears to be not so large. so we don't think the negative impact on consumption of consumption tax hike would be contained. and the economy would start to recover in the third quarter, that would be july and september. >> why are you so optimistic? because again, economists predict we could be in recession. >> but, you see, i don't -- the

economists in the private sector, you may know that in the past 12 months, they have been consistently wrong. one year ago they predicted that the deflation would continue, but now when we start new monetary policy framework, inflation rate was negative 0.5%. now it's positive 1.3%. so in 120 12 months, the inflation of the situation has significantly changed. >> governor coroda in an exclusive with cnbc. still to come on the show, the secretary general says inaction on income inequality could lead to the next phase of the financial crisis. more from that interview and steve after the break.

. this is "worldwide exchange." a recap of the headlines. effective action is called for by the russian president and german chancellor as tensions heighten in ukraine. and the ukraine unrest could tip nervous investors over the edge. >> it is tense.

it is having an effect in the confidence. it comes at a particularly awkward and inopportune time. >> the fed's program will taper off as the rates won't go up until after that. and japan's prime minister s says economists are off track. >> economists are in the private sector, but you may know in the past 12 months they have been consistently wrong. >> you're watching "worldwide exchange." bringing you business news from around the world. welcome to the start of your global trading week if you are just joining us in north america on the "worldwide exchange."

288,000 jobs created bringing the unemployment rate down to 6.3%, but stocks declining by the end of the session. they are up on the week nearly a percent higher for the dow and higher for the nasdaq. but this morning we are down again with sentiment about ukraine dragging equities low. right now the nasdaq is called low by about 16 points. the s&p 500 is some 8.5 points below fair value. and the dow at the moment is 70 points below fair value. the u.k. market is closed today. today they are taking their first may day holiday. so we're left with the german equity market down on the session low of 1.3%. the cac is down 1%. the ftse is down 1% and the micex is down .50%. it's just worth pointing out the eu cut its eurozone 2015 gdp growth to 1.7% from 1.8% and

downgraded up nation from 2.8 to a previous 1%. the ocd is warning nations have failed to tackle income inequality which could contribute to the next phase of the financial crisis. steve smith is speaking to angela herron in how the group is addressing the gap. >> we have been working on inequality for ten years now and what do you have to do? the best seller in economics today is a book by a frenchman talking about inequality. president obama says that inequality is going to be the big priority for the rest of his mandate. even the imf is not presenting to talk about inequality, which means we are there. everybody's focusing on that, but we have to go now the extra mile. which is, what do we do about

it? and that means the employment activation policies and means increasing employment and skills. skills is critical. skills for what? skills for the marketplace. there is a massive mismatch between the skills we are producing in universities and technical schools and high schools and et cetera and demands of the market. but politicians like to talk about thomas pickety. they like saying this is the problem. but when it comes to action, they need to be elected and need backers and need financial backers and they are not pulling the trigger on any of the action they need to do to enact inclusion along a thomas pickety type line. it's not happening in reality. it's happening verbally but there's nothing happening in reality. >> what pickety is doing is basically documenting a problem, which we all are documenting and have been talking about it for ten years as i said. and it's good. not everybody has to go all the

way in terms of the solutions. i'm going the other way, you just said so. >> the question is what can get, what can get a politician re-elected, forget about re-elected, which is more serious, and more than creating jobs or getting people out of unemployment, this is why -- this is also loaded with political hope and political promise. you believe that ocd members can enact high er on society at thi time and place of where we are economicall economically. >> in many cases this is being attempted, but you said taxing of corporations, well, the problem is that multinationals don't pay taxes anywhere in the world. and one -- things were doing -- and it is part of recovering and

trust. is making sure that number one i never worked the individuals and don't take their money to another jurisdiction and avoid paying taxes because then you are left with small and medium income classes paying taxes, but what about the multinationals? nay don't pay taxes in their home country or where they operate. they take it to some european station which then takes it to a caribbean station and end up paying zero. this is no longer possible. it is not politically possible or socially possible. >> we are joined by steve now from paris as he picks up on more of that discussion. >> reporter: a lot of aspects there from angel coroda. the massive international companies are doing very well, but actually in order to get

back trust and not be complacent, this needs to be all encompassing. i'm delighted to bring up these issues with charles. these are the greatest examples of the top 1% doing well and the national income has doubled as a percentage of gdp in the last 20 years. massive multinational corporations are doing very well, but is there a problem with the structure of the u.s. economy and the global economic recovery? >> i just want to thank you for being here on cnbc. and it's great to be back in france after serving as the ambassador for four-and-a-half years. this is my first trip as ceo,

and if you think about the fact that smos, there are 20 medium small enterprises and 28 million in the united states representing 99% of all business. and the smes are responsible for 85% of new jobs. so it is these types of deal that is the trade impact partnership impacts me. >> if i can pursue the income story one more time, household income in the states in 2008 was $56,000 per household and now is near $51,000. a lot of the households are employed but not enjoying the fruits of the recovery because their income is down. because the jobs and the growth isn't effective them so much. it's the big companies that are doing very well. it's the pfizers who can track

them down. the smes and owners of those, perhaps not so much. >> when you look at the jobs report, 288,000, unemployment is down a half percent at a level that is as low as august of 2008 before the crisis. and that's thanks to the grit and determination of the american people. we know that there's a lot more to go. we know that we have much more to do. and i understand what you're saying and the pain people are feeling, but it is moving in the right direction as do the economists. they believe the numbers will continue to improve and we should be pleased with what we saw on friday. >> it will be folly to say 288,000 jobs created and 6.3% unemployment isn't a fantastic set of numbers, but a couple other figures, the participation rate is atrocious at 63%. and there was no wage growth.

0.0% average earnings growth well below forecast. >> we have a lot more to do, but we should be happy with the report and where it's headed and what the economists say. >> the partnership of europe as well, let me give you a quote from george who wrote this in the garden a week or so. there's a feeling that the big trade deals will benefit corporates but not necessarily come through to gdp. would you refute that? >> let me start by focusing on tee tips and speaking about it all week. the deal between the largest economy in the world and the european economy representing half the world's gdp. if you can reduce or eliminate tariffs and more importantly eliminate non-tariff barriers,

the impact will be extraordinary and especially among the small enterprises before. so i believe this is a deal that's not only going to benefit the small er businesses. >> the events in ukraine could become a lot more of a problem for the very embryonic recovery we are having global. this could unravel what is going on at the moment. >> our feeling about ukraine, especially with the last events over the last 24 to 48 hours, now de-escalation is more critical than ever and that it's up to russia to abide by the geneva agreement. we continue to call on them to do so. the presidential election coming up in just a few weeks is critical because the ukrainian people get a voice at that point in time, but it is incredibly

important for the world that there is a de-escalation at this moment. >> thank you very much indeed for joining us on cnbc. a pleasure to see you. what a wonderful die come back to paris. i'm told before you came back the weather was dismal. >> i'm not going to take credit for it. love you. >> thank you, sir. we'll be back in a short while. back to you, ross. >> steve, look forward to that. thank you. it's a sad day in paris. nothing like spring in paris. thanks. jpmorgan has sounded the alarm warning on friday the slump in its trade revenue will deepen this quarter. the firm expects market revenue including fixed equities trading from 20% a year ago. that's bigger than the 17% drop in the first quarter. the decline in revenue is from fix fixed ficc.

jamie dimon believes the downturn is cyclical. the u.s. jury is ordered sam sungs to pay $119 million in damages in the company's latest dispute. far less than the 2.2 billion. unless it was awarded in a previous trial, the jury, which len finished . and a judge in delaware denied dan lobe's bid to drop the poise up bill. the hedge fund manager is building his stake to try to get his own slate of nominees on the board. the company is limiting investors from owning more than 10%. the judge said he acted

reasonably because of the fear to take them by other hedge funds last year. so that stock is down a third after that performance. the hedge fund manager just bought the most expensive house in america. the new york post says barry rossenstein is paying $147 million for an 18-acre beachfront property seen here in the picture in the east hamptons on new york long island. you can count jerry sign felt seinfeld to be his neighbor. and 140 million pounds in london is nearly $300 million to make it the most valued property. so we want to know, are we in another real estate bubble? prices, are they going higher or not? let us know your thoughts and e-mail us at worldwide@cnbc.com.

all prices and property are going higher. they certainly are for the super race. still to come, pfizer may be considering its next course of action after the company's latest takeover offer was rejected. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we changed all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation, and we give music creation for the masses. ♪ ♪

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the headlines, angela merkel and vladimir putin hold a call as radicals take a police station in odessa. the governor of bank of japan says they are on track for their inflation target. and warren buffett disapproves but doesn't want to battle owe ka cola over the executive payment plan. pfizer meanwhile is being turned away three times already in its quest to buy astrozeneca, but they may choose to be patient with their takeover strategy. we are live with courtney reagan in the states. good to see you. >> hi, good to see you. astrozeneca turned down the offer of $74 a share or $106 billion in cash and stock saying its substantially undervalued in

the company. analysts say pfizer has to raise its offer again to close the deal to increase the crash portion to as much as 50% from the current 30%. under british takeover rules, pfizer has until may 26th to declare the firm intention of making a bid. investors say pfizer likely has to do a deal to retain the competitive emg, but reuters reports the ceo ian reid may not go over the heads of astrozeneca's shareholders. and he could walk away if a friendly deal cannot be reached. pfizer went hostile in 2000 ultimately buying the company for $90 billion. it also signaled it could go hostile when trying to buy this company, but the company is striking a $68 billion in 2009 nuchlt moss till bed for astrozeneca would be complicated. he just needs a large stock

problem. on sunday british labor party leader ed miliband called for the inquiry into the possible pfizer/astro merger accusing the government of cheerleading for a deal. pfizer also happens to be reporting first quarter results before the opening bell today. both profit and revenue are expected to be lower versus a year ago. for the first time, the company will break out separate results for the three main businesses. a possible problem to diverging th them. i am sure investors are more interesting than normal to the call. >> that will be key. how many patience is on both sides. court, thank you for that. u.s. equities may play tug of war as the crisis

intensifies. we'll get some insight on what traders will be watching. we'll be over at the cme, next. mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve.

ahead of the u.s. open, the european equities are lower. the london market is closed today for the beginning of may bank holiday. is cac is down 1.2% with the ftse down 1.3 and the micex is down .60%. those are the lowest points for the session today. on the agenda in the states, april services index out at 10:00 eastern with the forecaster with a full point for march. later this week much of the focus is on washington as fed chair janet yellin testifies twice before congress about the u.s. economy. first up on wednesday and then secondly on thursday.

as for today's earnings, look for numbers before the open from pfiz pfizer, sysco and tyson foods. after the close we'll hear from aig. then we'll have an active start after the u.s. equities were up for the week but closed lower on friday. scott is the ceo of bull reef brokerage is joining us from the floor of the cme in chicago. scott, good to see you. a good jobs number last week. not much market reaction. why? >> well, one of the traders behind me here, they want to tell you that we are fed up with no decent growth. the jobs number was okay, but if you go back to february 2010, we averaged 172,000 jobs a month, but we have also averaged 175,000 a month of people leaving the workforce. or falling out of the workforce. so we're barely even staying

neutral. and we need to see some significant improvement in that area or we are just going to be spinning our wheels here and spending money while doing it. we are pretty frustrated. how long can we have the rates this low and not have any growth? it's kind of getting to us now here. >> yeah, aren't the leading indicators likely to show that we have got growth over the course of this quarter? >> yeah, a little bit. but let's take a step back and look at it from 40,000 feet. i mean, we had a horrible gdp number last week. we are still pumping $45 billion a month into the economy. i mean, this has got to be the slowest recovery if you want to use the word recovery for any type of recession that we have been in since 1900. so i guess we're not going backwards and we should applaud that fact, but at the end of the day we are just really not getting out ahead of ourselves here. and qe is something to do in the meantime while hoping to find growth around the corner. >> it's kind of interesting

because you mentioned the qe gdp that got ignored and we didn't react to that. we ignore the good number and the bad number. >> that's because i think that everybody here is very skeptical. we need to see consistent decent numbers. i mean, if you go from good to bad, good to bad for so long, it starts to number you and you stop paying attention to anything because you know coming around the corner is opposite of whatever you are looking at right now. so we want to see some consistent growth and a consistent recovery, some good top-line revenue growth. i don't think we are ripping the cover off the ball there. we want to see something significant happen for three months, maybe just a quarter, we'll take a quarter of the year just to see something going in the right direction. but we are lurching from good to bad all the time, and it's not helping us at all. >> scott, we'll see what happens this week. good to see you this morning. have a good week. thank you for joining us from tgm investments. that's it from "worldwide

exchange." "squawk box" is coming up. have a good day.

good morning. welcome to "squawk box." more violence in ukraine and they are asking for germany to keep the peace. and warren buffett speaks to the berkshire hathaway faithful this week hitting everything from the economy to coca-cola. and now he's about to talk to us. it is monday, may 5th. that's right, cinco de mayo. "squawk box" begins right now. good morning, everybody. welcome to a special edition of

"squawk box" here on cnbc. i'm becky quick along with joe kernan and andrew ross-sorkin. this weekend we are in omaha with warren buffett. we have a lot to talk to warren about. thank you for getting up extra early here. it is an hour earlier. before we get to all of that, we'll get today's headlines from andrew back at cnbc headquarters. andrew, i hope you had a safe flight back. >> thank you. i was with you over the weekend and had a great time. lots of questions for warren in a moment, but we'll get you caught up on the headlines right now because there's more violence in ukraine over the weekend. pro-russian militants stormed a you cre ukrainian police building. 40 pro-russians died in a blaze at a building they occupied after clashes with pro-kiev ou