welcome to "worldwide exchange," i'm julia chatterley and these are your headlines from around the world. bnp paribas snks to the bottom of the markets. some say it could face a fine of $10 billion. and the first steps towards complying with europe's court ruling for privacy. from paper clips to the clippers, microsoft ceo steve ballmer inks a $2 billion deal

to buy the l.a. clippers. and investors don't sell in may, european stocks are ending the month near their best levels in more than six years, boosted by another record close on wall street. you're watching "worldwide exchange," bringing you business news from around the globe. welcome to "worldwide exchange" again. let's get to one of our top stories, straight away, shares in pnb paribas tumbling after a "wall street journal" reports that the french lender could be hit with a $10 billion fine over allegations it evaded u.s. sanctions against a number of countries, including iran. in the last few minutes the bank of france says it's following the case very closely. stephan is in paris. this dwarfs the amount of provisions they've made. my key concern is what this could mean for the operations in

the u.s. going forward potentially, too. >> first of all, let's put the numbers into perspective. you're right, $10 billion, much higher than what bnp paribas reported as profit. it's already much higher than the provision that the bank took in the last quarter last year, $1.1 billion to cover potential sanctions in the united states, according to "the wall street journal." the bank still negotiates with the department of justice in hopes to pay no more than $8 billion in that case. that's for the fine but also bnp paribas could plead guilty. that's for the request from the department of justice. the bank could lose its license in the united states, leaving it unable to transfer money in and out of the country. bnp paribas is owner of bank

quest in the united states. the tarring set to reach 12% in 2016. that was obviously before that story in the united states. bnp still declines to comment on the report. two weeks ago, the ceo told the shareholders of the bank that bnp paribas would face this difficult situation. julia, at the time we were mentioning 5 billion u.s. dollars for the fine, 10 billion u.s. dollars. these amounts have not been confirmed. it seems to be consistent with what we heard, not only from the "wall street journal" but other sources close to the negotiations. over to you. >> thanks so much, stephan. we'll check in with you later on that story. up 0.2 precious year-on-year, following a rise of 0.3% back in april. spain's main index fell 0.3% on the news. now with the ecb widely expected

to take action at the june meeting next week, speculation surrounds the exact measures that mario draghi may use. narrowing of the rate corridor, targeted rtos and positive deposit rates. james, good morning. >> good morning. >> never mind inflation, the lending data yesterday. what have we got? bank lending to the private sector is contracted for 24 straight months. irrespective of what's going on in the inflation fund they have to be addressing this surely. >> absolutely. it's abysmal. how do you free up credit flows to particularly smes. the inflation numbers are pointing the same direction as well. all the data essentially signalling that the ecb needs to do something. going into next week's meeting, the market is very much expecting action. the question is what form will the action take? >> answer the question. >> the way they've been talking

recently suggests that it's very much a possibility that we could see that. it would not be a major surprise. we'll see liquidity measures, suspend measures, like a targeted ero. they're a bit more complex and require more logistical organization. we should expect them but perhaps not next week. >> we'll be talking about the impact on the banks of these measures and whether or not it does have the required effect as far as lending. do you think it will? >> if the ecb had one that it could wave and everything would be fine, it would have waved it by now. it doesn't have that. yes, they will aid credit flows, boost inflation a little but it's not going to certainly miraculously make the economic problems and the financial problems go away. this is a deep prolonged issue

that the ecb will have to address. >> i wonder if it helps the banks, given the fact that they're deleveraging continues to give them support and they're continue to do what their doing. i'm not sure it supports lending. the illegal drug and sex trade are expected to boost the uk economy by nearly 10 billion pounds come september. the uk will join a number of eu countries changing the way they measure gdp to conclude -- unique way of boosting gdp growth in europe? >> it is interesting, yes. the key point to recognize it's not the job of statisticians or economists to dictate what should or should not be in the national accounts.

the job of statistician reflects the underlying economy. theirs is a statistics job pure and simple. >> isn't there an incentive problem here, though? aren't some of these things things we'd like to crack down on? >> absolutely. but that's a moral judgment. some people would like us to say crack down on gambling. but we don't necessarily do that. society does that. the argument that's being advanced is these or other activities shouldn't be treated differently. the more interesting point, yes, this is an interesting hook to get people interested in the changes. this in the uk will add around 0.7% to gdp. it's part of a broader arrange of changes of it's an interesting element, a real talking point. the more interesting fact lies elsewhere in mundane changes.

but they are economically speaking more significant. >> the important appoint as well is that it puts us in line with other countries in the eu. this is not about the uk going, fan, let's readjust how we're calculating gdp. >> this is coordinating, making sure you have comparable data across economies within europe. come september we'll see a much wider range of changes being implemented. >> let's talk about the uk economy this week. we've seen slightly weaker housing data, raising a few questions. they said yesterday we were seeing a softening trend in london. do you think this is a good thing? >> yes. at the moment we've been heading towards the point where the ftc was likely to initiate measures, trying to cool the housing market. the fact that we're seeing tentative slowdown in the housing market perhaps there's a need for that immediately and it

will take some of the heat out of it. from an economist's perspective, a moderation in the pace of housing activity is probably quite a good thing. >> the treasury figures are out. the government is impacting prices right now. this actually propping up the property market, giving them access. some would argue the government has stimulated prices, too. >> the government as a whole has had positive impact in terms of raising prices and stimulating activity in the housing market. a couple years ago, that might have been a good thing. that might have been an intentional policy objective. right now i think it would be sensible to peare that back a little. the first contraction in three years. steve liesman caught up with the richmond fed president and asked if he is concerned about the latest figures. >> not unexpected given the data flow we'd seen since the first release.

not too concerned. there are transitory factors that are clearly in play that will reverse and unwind in the second quarter. >> if this is all weather? if this is all weather, why couldn't we quote, unquote, forecast it? >> i've seen evidence of the weather effect. that's not it. there were a lot of temporary things. you had inventories, net exports, weak, de-pennsylvania spending falling off. you had a bunch of things contributing. >> what kind of bounce-back are you talking about? >> i think the broader question is, what's the longer end trend in this economy? a year or two ago i came around to the position that the 2% growth we've gotten since mid-'09 is the growth we'll get. i'm still forecasting 2% to 2.5% in the year beyond that. i know we've been thinking that growth would pick up to 3% or 4%. now we're not going to know until the fourth quarter. the second quarter data is going

to be polluted from the bounce back in the weak first quarter. we won't know until we have a sustainable evaluation. >> it wouldn't surprise me at all. you're in that camp of people who believe long-term growth is what, to a percentage point lower than we previously believed? >> it is. you have a lagging labor force participation rate. the cyclical effects have warn off. you have head winds making a lot of firms reluctant to make any commitments on hiring or spending before they see the need for it rather than anticipation of the need for it, as would have been typical in a previous expansion. yes, growth is just lower now as a matter of trend. >> steve continues coverage from stanford university. he'll be speaking with philadelphia fed president charles plosser. later in the evening he'll catch up with the boss of the san francisco fed, john williams.

that will be at 7:30 cet. let's take a look at the european markets this morning, evenly split between the gainers and losers. leaving the stoxx 600 relatively unchanged. a number of investors were out yesterday, despite the markets being open. you have to wonder whether that's leading the low volumes in the sentiment today. the mixed bag, the ftse losing a bit of ground right now, the xetra dax relatively unchanged. the cac current, bnp dragging that market down. was it a sell in may and go away? not really. the dax, the real outperformer, 3.5% higher in trading. that of course 1.7% this week. quite a lot of the gains we've seen as far as the core markets happening in the last few sessions. the ftse mib down by 0.9% on the

month so far. let's have a look at the year-to-date performance. the italian market supported by the gains that we've seen this week after 3.5% following the election victory on friday. quick check on the foreign exchange markets. last trading session of the month. that could mean a weaker dollar. that does tend to see what we're seeing in the session. it is bouncing around that level. the imf in the earliest part of the session saying they believe the currency brought in line with fundamentals right now. they want more clarity on that bond buying program. let's take a quick look at theation markets for this month in particular, too. the focus on the nikkei, just over 2.2% bounce. this month, i believe this is the first monthly gain for the nikkei in what, five months? >> yes, that's right. and also what we are seeing

right now, julia, a little bit of giveback and the nikkei breaking a six-day winning streak. i would suspect it's down to what's been happening in the currency markets. that correlation between equities and fx is still quite strong here. we've seen a snap back in the yen. slightly stronger japanese currency is undermuning some of the exporters and by implication the broader markets as well. the unflags numbers seem to be moving in the right direction. it's probably the impact of the sales tax hike. strip all that away and it looks as if the bank of japan and governor kuroda still have work to do to get closer to that 2% annual inflation target. we could in all likelihood still see further stimulus action from the boj. let me talk about some of the underperformers here, the jakarta composite is down by 1%. a lot of foreign selling here, especially in the big blue chips. perhaps the market is trying to

front load the data next monday. this coming monday i should say we get the trade balance numbers and the expectations pointing towards $400 million deficit in the month of april. staying in southeast asia, thailand, having a reasonably good day today, up almost 1%, despite the fact that we got economic data for the month of april that was quite negative. really reflecting the impact of all the political unrest that's culminated, of course, last week in martial law and the declaration of a coup by the military. that is all having a very adverse effect on consumer sentiment. you're seeing that in the dropoff of the import numbers especially in the month of april. it will probably get worse. remember this economy is teetering towards recession. the markets seem to be shrugging all of this off. the military council have

appointed economic advisers and they've been paying the farmers and amongst those advisers is former central banker. they are getting down to the tax of economic management. still, a big unknown as to when elections will take place. another big unknown is when they are going to make that transition towards civil rule. that's where we stand right now. julia, back to you right now. >> sri, thanks very much. also on today's show, are the markets set for stormy weather? as hurricane season kicks off state side, a look at how investors are gambling on the sun and room. elan musk unveils the latest spacecraft design to take you to the stars. and cnbc joins the fitness frenzy, well, some of us do anyway. we speak to the ceo of u.s. gym group anytime fitness, all coming up later in the show. see you in two.

you're watching "worldwide exchange." former microsoft ceo steve ballmer reached a deal to buy the los angeles clippers for $2 billion. that would be the most ever paid for an nba franchise. the milwaukee bucks sold for $550 million earlier this month.

shelly sterling, the wife of owner donald sterling signed a contract which she sent to the nba league office for approval. at least 75% of owners must approve the sale. it's unclear whether donald sterling must also sign off on it. nba owners are set to vote tuesday on whether to terminate sterling's ownership after he was banned for life in the wake of a tape released of him making racist comments. elan musk takes the wraps off a new spacecraft designed to carry up to seven astronauts into the international space station. he unveiled the cone-headed rocket dubbed the dragon v2 last night. now switching to politics, hot off the heels of the european election victory,

farage. >> i haven't got a problem with romanians but i have a massive problem with romania. can you imagine if a known organized criminal gang got off the plane at jfk airport and tried to get into your country, would you let them? no. of course not. >> claude moret joins me now in the studio. claude, good morning. tony blair said this week, former prime minister, of course, that ed milliband must not allow an eu referendum. do you agree with him? >> i think it was a good int intervention and it would stiffen our resolve to really go on the attack. on the one hand, you could cause a schism in british politics. we have to take note of it and understand it and react. there's no question of that. not have a populous party in politics.

we didn't have to react to it or factor in exactly what it means but it's complex. here in london, for example, in the european elections, labor took half the -- it's a complex picture. >> how do you attack it? you should you should attack. how do you attack it? >> a place like london needs immigration. we have to explain that to people. it's a contradictory message. and perhaps it's proxy for other things, housing shortages, undercutting of wages. we need to be clear now because we're in that ballpark, ballpark of finding out what this means. if this goes on, national politics will be damaged, not european politics. >> do you expect david cameron's party in particular to be drawn in some way? it's at the national level now that it matters. >> what this means is the margin

of seats. that's really what's going to happen in the general election. it's about national politics. in the european parliament, it matters, too. but not as much as a national politics where these types of populous parties all over the european union push center parties to the right. and that's the problem across the eu. it was before you, kip, had them. >> how much do you think british people care about the eu. >> for the labor party, ordinary british people, if it's about jobs, stability, the city of london, if it's about all of that, then i want to be in the european union and labor party saying that. i think that's a good message. >> do you think that message is translating given the gains we've seen for you, kip, at the latest european elections? do you believe that message translates? i think there's a distinct difference in europe on the one

hand and europe itself. >> the institutions have been denigrated for years. anyone in the city that's watching this, the benefits from the european union need to sit up and take notice. we're losing the argument. >> should british people be denied any referendum? >> we are saying that you have a referendum if there's a treaty change. there may well be treaty change if we end up with banking union. of course, we'll have to have a referendum but we're not going to pick data out of the air like they have done 2017 because they want to keep their party together. everyone in the city knows that. we are for stability, for being serious about europe. because we want to be in. that's the point. now, you, kip, are going to push all of that into a difficult position and, yes, it will be a tough road. not only do we need to take sides, we need to reform by the way.

>> how big is the risk that you can get stronger support at the general election next year? >> the problem is -- >> how big do you quantify the risk? >> this risk is this, they make hay in marginal seats and take down the conservatives and change british politics that way nobody the by getting mps because i fear they won't get many mps. >> thank you, claude. for the first time in 52 years, two kids have been declared co-champs of the annual scripps national spelling bee. they are sharing the title involving a final round dual on thursday night in which they nearly exhausted the 25 designated championship words. the door was opened to an upset when he miss spelled a word. he couldn't capitalize, missing on another word which means waterproof leggings.

beth get a trophy and more than $30,000 in prizes. but one of the highlights of the show is when this spelling bee contest and the thought he had the word -- i hate my producers right now -- in the bag. listen in. >> i know it! i know it! i totally know it! okay. c-a-b-a-r-a-g-o-y-a. what? >> it's called k-a-b-a-r-a-g-o-y-a. >> now we've got our own spelling test. see if you want guess which word here is spelled incorrectly,

embarrassing, assassinated or fluorescent. get in touch with us by e-mail worldwide@cnbc.com, by twitter @cnbcwex or direct to me @j chatterleycnbc. still to come, can india's new prime minister more its nation's two-year economy up? we'll be right back after the break.

you're watching "worldwide exchange," bringing you business news from around the globe. welcome back to the show. bnp paribas shares sink on reports it could be facing a $10 billion fine for evading u.s. sanctions. the bank of france says it's watching the case closely. google takes the first steps towards complying with europe's court ruling on privacy, setting a web form for citizens to request the removal of links. from paper clips to the clippers, microsoft ceo steve ballmer inks a $2 billion deal to buy u.s. basketball franchise the l.a. clippers. and investors don't sell in may. european stocks are ending the month near their best levels in more than six years. bolstered by another record close on wall street.

let's bring you our top stories today, shares in bnp paribas tumbling after a "wall street journal" report that the french lender could be hit with a $10 billion fine over allegations it evaded u.s. sanctions against a number of country, including iran. in the last few minutes, france's central bank said it's following the case very closely. an official spokeswoman said the bank of france has no comment to make for now but the governor is following the case with the utmost attention. and google has taken the first steps towards complying with a recent eu ruling over the right to be forgotten. the search engine set up a service through which european citizens can request the links about them to be taken down. google says it created the web form for european users but stopped short of explaining how the process would work or how long it would take. although it is complying, google

isn't happy about the ruling that the company's ceo larry paige told the "financial times" that the decision risks damaging the next generation of startups and holds back on online communications. he promised a new level of engagement in europe over privacy issues. he said i wish we had been more involved in a real debate in europe. let's take a look at the european markets this morning. losing a bit of ground for the ftse 100 and the cac current, the key underperformer, bnp, the worst performer right now. quick check on the bond markets this morning, too. we saw u.s. treasury yields tick slightly higher, now trading at 2.48%. the long bonds rallying everyone month this year. the last time this happens was back in 2006. we have ten-year italy, i'll point out, just below the 3% figure. they are expecting dollar weakness and that seems to be

feeding through into these markets. the euro dollar still sitting around that 1.36 level as we look ahead to the ecb's potential action next week. now, all eyes willing on india's gdp figures out today because india's new prime minister has only been in the job for a week so far. with fourth quarter growth expected to be just 4.8%. that means modi will have his work cut out for him. india's is seeing their economy at its worst in the last 26 years. over a phone call with his chinese counterpart, he extended an invitation to the chinese president, xi jinping, to visit. he expressed wanting to boost economic ties. we have the chief economist at cinb. this is likely to be the second year that we've seen the gdp

growth below 5%. there are structural issues in this economy. can modi turn this around? >> i guess the people are expecting that he will turn it around. you're right, that there are structural issues in this economy. i mean, it's had about two years of good growth after the financial global crisis due to tremendous policy stimulus. for three years in a row, growth has gone bad. you're right, for the last two years it's been below 5%. there's a tough task ahead but i guess by the mandate that he's received, people are expecting him to turn it around. this has been an election about jobs, jobs, jobs, as set by the bgp. the challenge is on him to provide it. >> the markets also, the equity markets in particular look like they seem to be priced for perfection as far as policy response is concerned from the new prime minister. what is the focus right now on the unification of the good sales tax? there seems to be a lot of attention played on that and the fact that it could have an implication for the stock market, too. what are your thoughts there?

>> well, i don't know if the stock market is priced to perfection but the stock market has clearly been optimistic. if you've been optimistic about what mr. modi is going to pull off in terms of reinvigorating the economy. if you look at india's potential growth rate, it should be close to 7%, 8%. largely based on the growth of labor supply, less productivity. he's made it clear that he's going to go uncertain france, which is infrastructure. there are 100,000 megawatts of power there to be unleashed. that's there. s there also a fair amount that can be gained by simply easing things around. industry has not grown in two years. there's a demographic dividend that's to be had which means the savings rates will be high. investment could come back on track. there are quite a few things that he could be doing to be able to help this economy along.

he's done very good things. the hope is he will do it for the country. let's just wait and see. your issue was on the fiscal side, is that it? you were wondering about the fiscal side, can he help? >> i wanted to ask you about the central bank in particular, too. if we talk about the fiscal side in combination with the fact that the central bank continues to try to reign in inflation. how does the growth agenda fit with what the central bank is doing right now? how can they find a balance? >> to some extent, you have to go back a bit. there was easing and it was needed. you started seeing structural bottle necks come in and inflation went up. a tightening starting around july of last year, along with the fears there was tapering going to happen and india had a deficit. they did do things, tried to reduce imports as well as

tightening in terms of monetary policy. the last move on monetary policy was in january, inflation remains a problem. there's no question about it. hopefully if they can ease various structural bottle necks, you shouldn't see inflation be such an issue that they have to raise. you're unlikely to see more rate increases from here but you do need to see some decrease in inflation before they can move on to an easing cycle. but growth is clearly an issue. the rbi needs to step up there. >> chief economist at cinb. now, japan sales tax hike appears to be finally biting back. data out today shows a fall in industrial production and slump in household spending. but core consumer prices did rise a bigger than expected 3.2% in april on the year. the japanese economy menster says that's a nine the effects of the tax are being passed on to consumers in a healthy

manner. in the international monetary funds is expressing its confidence that the world's third largest economy will pick up again in the second half of the year. they were skeptical about the inflation target being met, 2% inflation target by 2017 according to the imf. two years in fact after the central banker anticipating reaching that target. now, china is easing investment restrictions in its hospitals, a move that could see foreign players entering the market. as eunice yoon reports, health care is an area in china that badly needs reform. >> reporter: this chinese farmer never thought he would chop off his own leg. that's exactly what says he had to do to survive. the 46-year-old got a life-threatening blood clot after visiting public hospitals, he says he was told to go home because he couldn't afford to pay $50,000 for surgery. months later, his dleg started o rot. >> the saw was under my bed.

i grabbed it. i took a back scratcher and with a towel i used to wipe my sweat i wrapped it like this, then i bit down and sawed off my leg like this. >> reporter: his action was extreme. but his experience in china's health care system is not. health care has become a major social and economic issue in china. medical costs are rising, holding back china's consumers potentially hampering future growth. the state dominated system is overstretched and underfunded. so big hospitals get jammed with people from all over the country, lining up to see a doctor. >> translator: this is an unavoidable result from a government-led system. all the good doctors are at the top public hospitals. patients understand this, so they go where the good doctors are. >> reporter: at most public

hospitals pas s patients only g few minutes with the doctor, even if they have a serious illness. over eight hours, physicians see on average 100 patients. >> we see patients nonstop with no break. it's hard to spend more time to build trust. >> reporter: even though most chinese people have government insurance, everything they get and do here has to be paid for up front. if that's medicine or a blood test, it's not really a big problem. if it's surgery or multiple surgeries, that's when they face big challenges. that's what happened to farmer jung. >> translator: the system isn't fair. >> reporter: unfair, he feels, for many of china's poor. eunice yoon, cnbc, beijing. let's give you a look at what's on the agenda in asia next week. asian markets will be keeping an eye out for official numbers. we get hsbc's final reading of china's pmi on tuesday.

the reserve bank of india and australia come out with their rate decisions next week. goldbergs look away now, despite unrest in ukraine. the price of spot gold looks set to record its worst week in two months. the associate director of research at etf securities joins me now. simona, where do the china figures feature in this right now? we have an import at 18-week low. >> that's part of the issue. we think the main issue for the gold drop in price is manly that investors have become less defensive. so despite key risks remain out

there and the ukrainian situation is far from being resolved. investors are more optimistic and prefer riskier assets. we had seen a rally in equities, for example. obvio obviously that counters with a upon performance in the gold price. wee seeing the dft less defensive and that's the reason why gold price has dropped quite substantially. >> all of those reasons i guess you expect gold to continue to weaken? >> we done the expect it to continue to weaken much further. we think it's actually quite well priced at the moment. we think it could rise a little bit forthto the levels we've seen towards the beginning of the year should risks in ukraine, for example, or potential downturn in the u.s. economy could actually materialize. therefore, they would lift things like gold. >> you're saying at these levels

it's good value for these investors should these risks come back. what happens if they don't? >> gold is a safe haven and a less risky investment than other assets. we always believe that a portfolio should be well diversified. obviously you take insurance when there are no risks out there. and you hope that once the risk materialize, you have this kind of insurance. >> if you look at what happened back in january, there was a great deal of optimism about the u.s. economic recovery, the rally. everybody was saying it would sell off and it didn't. >> there were risks, risks of an emerging market crisis, for example. when that risk was fading away, we saw a potential risk coming from the ukrainian crisis. so there have been more optimism in general for the global recovery but at the same time, there have been risks in investors' minds that basically

make them choose to look for protection in a safe haven like gold. >> china's around 25% of demand. what about india right now? as far as the post-election optimism? >> india is the second biggest. restrictions last year impacted demand from india at least official demand from india. so it's still the second biggest consumer of gold. but we see chinese demand continue to grow. in april, imports of gold from china faded a bit. at the same time, the first four months, it was up. demand is still out there. >> pretty robust? >> yes. >> despite the fact that we're seeing it at worst levels for two months, you're saying there's opportunity here. >> you could look into silver which has similar characteristics but it's more geared to the industry cycle. >> interesting. associate director of research

securities, great to chat to you. >> thank you. he'll be speaking with a host of top analysts, including michael sherwood and the bank's chief economist, jan hatzius as well as peter oppenheimer. dead or alive? according to his family, the relidge leader died from a heart attack back in january. but his followers are refusing to hand over his body, saying he is still alive but he's just in a state of deep meditation. his wife and sons say that the followers just want to remain in control over the guru's financial assets. until the court decides on his fate, he'll remain where he is, which is in a big freezer, apparently. still to come on the show,

gym group anymore fitness works up a sweat in the uk. i'll be speaking first to the ceo, chuck runyon, coming up right after the break.

christopher frye is stepping down in an s.e.c. filing, the company says he'll keep an advisory role but gave no reason for the move. product chief michael sippi left in january and another person retire the last august. a quick check on twitter this morning. as you can see, down by around 0.7% in the german trading session. foursquare's coo evan cohen will reportedly step down in the coming weeks. recode reports the location-based smartphone apps long-time head of business development is also leaving. the move comes as foursquare overhauls its product lineup. microsoft and sales force.com sign a new strategic partnership but terms haven't been disclosed. under the deal, microsoft will

integrate sales forces apps into windows run devices. sales force users will be able to access office content such as excel spreadsheets and power point presentations. collaboration could help further microsoft's ceo satya nadella's push to become more cloud friendly. microsoft also making gains of 0.2% in trading today. elon musk takes the wraps off a new spacecraft. he runs spacex unveiled the cone-headed rocket dubbed the dragon v2 last night. spacex is one of several private companies competing for so-called space taxis to replace the retired nasa fleet.

mark zuckerberg and his wife are donating $120 million to bay area schools. the gift will be spread out over the next five years. chan, a pediatrician, says education is incredibly expensive and this is a drop in the bucket. nbc's savannah guthrie has an exclusive interview with priscilla chan on the "today" show. try and check that out. coming up on cnbc, european closing bell talks beats with hip hop artist will.i.am. we'll find out what he thinks of dr. dre's deal with apple, the $3 billion deal. the company which was founded in 2012 now boasts 2,500 gyms across the globe and will this year open more fitness

clubs internationally than in the united states. chuck runyon is the ceo and co-founder of anytime fitness. he joins me on set in a first on cnbc interview. chuck, apologies. >> no problem. >> welcome. why has it taken so long to come to the uk. >> we've been busy in the states we had to get our platform there. i think there's tremendous opportunity to expand internationally with lending, real estate and excitement globally. >> talk to me first about the franchisees. how does this actually work? from what i read, you pay a fixed sum no matter what your gym is. >> we're the very best in franchising and delivering a financial, emotional and physical payback to franchisees. our franchisees, the more members they have and the more revenue they bring in, other

royalties stays flat. it's one of the more franchisey friendly opportunities. >> what stops any of your franchisees opening up and letting anybody join and too many people join? >> we work closely with them. we have software that determines visits and when the add members, when is the right time to do that. we have different sizes franchises. that's critical to us. we don't need thousands of members. we want to create a small community feel where we know our members unlike any other fitness brand in the industry. >> why? >> people need coaching, a personal touch, some of that accountability. >> what makes you different? i've seen you're open 24/7, which is a crucial factor. what makes you different from any other gym. >> from a member perspective it's that convenience, the community inside the club and the personalized coaching.

though we're nonstaffed at times, we actually are more human than some of our competitors. our local owners are passionate about the club and community. we can connect with our members. >> this is a crucial point as well. you just said it, sometimes you're absolutely unstaffed in these gyms. personnel cost 10% of the expenses of the gym versus for other gyms it's around 45%, i believe. >> that's true. >> as a business it's cheaper to run. >> for a franchise owner, there's simplicity there, from the human capital side, right? however, we've taken away the back-ended business problems and now our franchisees can spend more time on the floor engaging with consumers. for us it's more about where you spend your time. >> how much do i have to pay on a monthly basis if i want to be a franchisee. >> somewhere in the 50 pounds a month. >> if you're a consumer. if i'm a franchisee. >> our royalty is somewhere in the 700, 800 pounds a month.

>> flat cost? >> yes, flat cost. >> what about fitness trends in particular. i want to ask you about digital. anytime health. talk to me about that. >> so our clubs we definitely create a studio environment. we lake to provide personal training as well. we have spinning, small group training, stud yes feio feeling our clubs. what members do outside our clubs is so important to their overall healthy lifestyle. we want to make sure you have the right tools to eat properly, et cetera. this will be critical in engaging our consumers with more tools to live a healthier life. >> i want to ask you about how much it costs to pay a gym membership. i've seen an article say some people pay as little as $3 because they introduced people to the gym. >> we have a referral system.

in our industry there's so many choices, which is great for the consumer and the maturing industry. the more choices, the better for all of us. >> brilliant. i like that idea. great to talk to you, co-founder of anytime fitness. moving on, former microsoft ceo steve ballmer reached a deal to buy the los angeles clippers for $2 billion. that would be the most ever paid for an nba franchise, the milwaukee bucks sold for $550 million earlier this month. shelly sterling, the wife of donald sterling signed a contract which 1she sent to the nba league office for approval. 57% 75% of the owners should sign off on the deal. donald sterling was banned for life in the wake of the tape released of him making racist comments. let's take a look at the u.s. futures this morning. there you go. broader red picture there.

relatively unchanged so far as we head towards the open of the u.s. session this morning. still to come on "worldwide exchange," is another bump in the works for a european bank? bnp paribas facing billions of dollars in a settlement. all the details, coming right up.

welcome to "worldwide exchange." i'm julia chatterley. these are your headlines from around the world. bnp paribas shares sink on reports it could be facing a $10 billion fine for evading u.s. sanctions. the bank of france says it's watching the case closely. google takes the first step towards complying with europe's first ruling on privacy, setting up a web form for citizens to request the removal of links. from paper clips to the clippers, microsoft ceo steve ballmer inks a $2 billion deal to buy u.s. basketball franchise the l.a. clippers. an a new frontier for elom

musk. he unveils the dragon v2 rocket. he claims it can touch down on earth with the accuracy of a helicopter. you're watching "worldwide exchange," bringing you business news from around the globe. if you're just tuning in, thanks for joining us here on "worldwide exchange." a quick look at the u.s. futures ahead of the market open today. stocks did manage to find momentum yesterday after the disappointing revised gdp numbers. right now, relatively unchanged for the dow as you can see, around one point lower. the s&p 500 similar story and the nasdaq, too. relatively unchanged. the moment up seems to be slightly to the down side. let's put it in perspective. it certainly wasn't a sell in may and go away month, though, of course, the markets have been

choppy this month. you could have got chopped around. 0.7% higher on this month. let's put it in contrast with what we've seen so far on theier and then you get a sense of the s&p 500 performance just shy of 4%. and of course, a new record right now at 1920. european markets this morning, well, we had a bit of a tentative start yesterday, losing a bit of ground for the ftse 100 and the cac current. bnp paribas concerned about a potential fine from the u.s. of $10 billion. we'll be talking a bit more about that right after these markets. as you can see. let's have a look at the european markets, too, on the month right now. the key outperformer. 1.8% of the gains actually in the last week. the ftse mib over in italy right now, 0.7% lower. let's have a look at the year-to-date performance. want to give you a bit of perspective on this right now. do we have those? we do.

14% year-to-date on the italian markets. let's have a quick look. u.s. bond yield ticking slightly higher in the session yesterday. the long end of the bond markets rallying in every single month this year. the last time we saw that in 2006. you have to expect a bit of paying back the positions. the dollar may come under a bit of pressure in the session. today, that's generally what we're seeing right now. some results, come on, get those boards moving. euro/dollar relatively unchanged in the session. seeing the dollar/yen, too, slightly under pressure, 101.65. on that note, let's get out to asia and have a look at what theation session is giving us. sri is in singapore as always. sri? >> we are seeing give back on the index, the nikkei 225. we have broke a six-day winning streak for the nikkei. the japanese yen weighing on the

exporters and the broader index as well. we saw inflation, moving in the right direction. if you strip out the impact of the sales tax hike, this all means there's still work for the boj to do to get to that 2% annual inflation goal. elsewhere, one of the rank underperformers is the jakarta composite. a lot of heavy foreign selling on the blue chips. perhaps the market is trying to front run the trade numbers which will be out on monday. we're looking at a deficit of around 400 million for the month of april for the jakarta market. down by almost 2%. despite the fact that we had some fairly downbeat economic data and the bank of thailand saying 2.7% growth is not going to be easy to achieve, the market still seems resilient, post-coup, up by almost, let's call it, 1%. the market likes the fact that the military council although there's no time frame on

election is getting down to the economic tax. let's talk about the bombay sensex. we're watching and waiting for the gdp numbers. expect to see sub-5%. will mr. bodie be able to turn that around? big emphasis and focus on the budget, due towards the end of july -- excuse me, towards the end of june, early july. shanghai composite also in something of a holding pattern until we get the official pmi numbers over the weekend. that's how we stand today. julia, back to you. >> brilliant, sri. thanks very much. have a wonderful weekend. shares in bnp paribas tumbling this morning after a "wall street journal" report that the french lender could be hit with a $10 billion fine over allegations it evaded u.s. sanctions against a number of countries including iran.

in the last few minutes, the france's central bank said it's following the case very closely. an official spokesperson said the bank of france had no comment to make for now but the government is following the case with the utmost attention. stephan is in paris with more. stephan, we were talking earlier. this is multiple times the amount of provisions they made in the last quarter. can you give us perspective on what a potential $10 billion hit would mean for the company? >> first of all, it's not sure that the bank would have to pay 10 billion. according to sources close to the negotiations, bnp paribas is negotiating with the department of justice to pay a maximum of $8 billion. still, that would be significantly higher than its annual profit. $6.5 billion last year, much higher than the provision of $1.1 billion that the bank made in the fourth quarter last year to cover. the department of justice also would like bnp paribas to plead

guilty so it could temporarily lose its license in the united states. therefore, it wouldn't be able to move, to transfer money in and out of the united states. and that would be a problem. bnp paribas has four units in the u.s., bank quest last year, 10% of its profit came from the united states. the bank has a target of 12% for 2016. that was, of course, before that story regarding the u.s. sanctions. bnp paribas declined to comment on the reports but two weeks ago, the ceo told the shareholders that he was confident that the bank could face this crisis, although at the time we were talking about $5 billion for the fine, not $10 billion. still, it seems confident that the bank would deal with the prices. you are mentioning the reaction from the bank of france. it's not the first time that the bank of france says it's monitoring the story last week. the governor of the bank of

france says he was looking at that story carefully. we done the have any official reaction from the french government but perhaps it's also negotiating with the u.s. authorities. but there is no statement from the french finance ministry or from the french prime minister. that's all we know for now. of course, the stock is reacting very negatively. down 4.5%. >> thank you very much, stephan. we appreciate your information. the head of european banks equity research at jpmorgan joins me now in studio. thank you for being here. let's talk about bnp first. firstly, give me some perspective on what this means for the company individually and more broadly. who else could be impacted by the like? >> the 10 billion fine is very material if it is true and it will happen. the capital one ratio that bnp operates with is 10.6 by 2014.

that's our expectation. every 1 billion impact wipes out roughly six basis points of the capital. 10 billion would put them at 3%. that means the dividend would have to be cut at a fine of 10 billion. >> do you think the reaction in the market right now is equivalent to what we're seeing as far as the potential? i mean, there's still talk about it could be 8 billion, it could be less. we don't know right now. do you think there could be more down side for the share price? >> i think even 8 billion would mean a dividend cut first of all. secondly, this is a major concern. and the big question mark is it going to be fined, also, will there be a sanction on u.s. business which could potentially impact their earnings in the future. >> absolutely. we've had comments in the ecb

and the bank of england this morning. outlining their options to reinvigorate the market for asset-backed securities. one of the things we're talking about potentially hearing from the ecb next week. they say central banks could lower cuts if risk assessment improves. and therein lies the problem. >> that's absolutely right. the problem is that the abs market in europe is very liquid. i think the approach is correct. we need standardization of the abs market. the european abs market is 1.3 trillion. very small. they're thinking about sme lending being secure. we only have a 200 billion sme abs market, again, very small. we expect only the most standardized approach. we will get the abs market in europe going. >> that will take time. when i was in washington i spoke to mario draghi. i said to him, the mark set too small and you'll create

distortions if you do this. i said, i completely agree. oh, dear. >> it's the right step. it's the right step. they're starting from a position of having no transfer market really in europe of capital or risk. that would potentially lead to some lending growth but it will take a very long time. the setup will take at least a year to actually seize the volume. it will take a very long time. from our perspective it's a positive in the right step. it's not a conclusion that we will see material growth in transfer of the abs market yet. >> you're staying with us. we'll read on. the ecb is expected to take defensive measures to support the eurozone economy next week. but with lending contracting for the 24th month in a row in april, will the ecb's actions really be a catalyst for the banks to lend? >> we believe it will not lead to lending, additional lending.

we expect this year, zero loan growth for the european banks. 1% next year and 2016 1.5%. however, it has other positive effects. >> you're saying it's not going to have a negative effect on lending. we're talking potential asset-backed securities. literally anything they could throw at us next week potentially is not going to boost lending in the short term. >> history has shown us, banks do not lend when gdp is at a very low level. banks are cyclical. all these measures pump in liquidity but don't free up capital in a big way. right now, banks are focused on capital. we talked about bnp. a lot of issues banks have to deal with. they want to preserve capital. they do not want to lend. >> you're talking about an improvement on the balance sheet. this will cause investors to look back at some of the nonperforming loans and lift the value of those. for the weaker, there will be an

infect. >> absolutely. indirect effect is liquidity and low interest rate. the search for yield means that peripheral banks such as spanish, the portuguese, the italians, the greeks, the banks that have asset issues will be helped with the search for yields. there will be buyers coming in who want to buy the assets. and the provision should improve. the indirect consequences, the cleanup of balance sheet of the peripherals, that is a positive. >> on the other end of the scale for the investment banks right now, you think they're going to get hit. why? >> i'm afraid it's a negative. negative interest rates means the business will be difficult. we had negative interest rates in denmark, trading collapsed by 50%. in addition, negative interest rate basically means there's very little volatility and low volatility means nobody will

trade. >> wonder if the ecb will take that bet and go you know what, a hit to the healthier banks is a good thing. brillian to the have you on today. the head of european banks equity research at jpmorgan. immuno therapy drugs are considered a key point in the treatment of cancer. who is working on them? stay tuned.

you're watching "worldwide exchange." welcome back to "worldwide exchange." these are your headlines. bnp paribas faces a $10 billion fine for evading u.s. sanctions. google moves towards complying with europe's court ruling on privacy and microsoft ceo steve ballmer nets a $2 billion deal to buy the l.a. clippers. personal income and spending is out at 8:30 a.m. eastern. followed by may chicago pmi at 9:45 and may consumer sentiment just before 10:00 a.m. the trio of fed officials speaking this afternoon. that's at a conference in stamford, california. as for earnings, look for

results from retailers ann and big lots. former microsoft ceo steve ballmer has reached a deal to buy the los angeles clippers for $2 billion. that would be the most ever paid for an nba franchise. the milwaukee bucks sold for $550 million earlier this month. shelly sterling, the wife of owner donald sterling has signed a contract which she sent to the nba league office for approval. at least 75% of owners must approve the sale. it's unclear whether donald sterling must also sign off on the deal. nba owners are set to vote tuesday on whether to terminate sterling's ownership after he was banned for life in the wake of a tape released where he made racist comments. there was a recent eu ruling over the right to be forgotten. european citizens can request for links about them to be taken

down. google says it has created the web forum for european users but stopped short of explaining how the process would work or how long it would take to remove those links. elon musk takes the wraps off a new spacecraft that's designed to carry up to seven stra astronauts to the international space station. musk who runs spacex, is competing to build so-called space taxis for nasa to replace the retired space shuttle fleet. the big topic at this year's cancer care conference will be immunotherapy drugs. >> asco is the year's biggest event in cancer research. the biggest theme will be immuno therapy. drugs that harness the immune system to harness cancer.

how do they work? >> some involve harvesting a patient's immune cells, specifically the "t" cells. multiplying them and then reintroducing them to the body to fight that cancer. another technique takes "t" cells out of the patient's body and ricohs them to be better cancer hunters and returns them to find and destroy cancer. other immunotherapies are medications patients take by intravenous infusion. others help immune cells see the enemy, revealing invisible cancer cells so immune cells can identify the target and attack. >> companies working on these therapies include bristol-myers, merck and novartis. smaller companies are also in the space. analysts say for bristol-myers alone, the drugs could bring in $13 billion in annual revenue. this weekend will give us another glimpse at the promise of these medicines. back to you guys. still to come on the show,

flying the next. another twitter exec hands in his notice. all the details right after the break. stay with us. 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.

running your business from your smartphone is a growing trend according to software giant sales force.

in our tech driver segment we're taking a lack at how the cloud is getting ever better at linking business apps. >> reporter: it's a $25 billion business, since apple launched its first iphone in 2007, the app, economy and cloud infrastructure has soared but it's a market that so far escaped the territory of int enterprise. traditional vendors have kept their applications down to earth. that's a trend that's finally changing as cloud vendors force the hand of conventional softwa software makeovers. sales force one was unleashed. >> we're going to start and look

at what sales force one does nor your employees. it's all about being able to run your business from your phone. >> a trend the company says employees are already doing. >> there's a bunch of companies that are small but innovative, starting up. why is it when we come into the office, we can't be super productive as well? at sales force you can. those apps are available on the phone whereby you can have the same user experience in the consumer world as in the business world, which makes it superproductive. >> reporter: the companies and others like it already have third party vendors that can deploy apps in their own marketplace. any app that might not have been considered for enterprise can plug directly into the service with almost no extra code. apps like drop box and pinterest and docusign. >> we benefit from having stand alone platforms to plug in.

you con deliver business functionality into a large organization in a matter of weeks or months as opposed to the traditional two or three years. >> sales forecast cloud apps could boost worker activity by more than 30%. it's sinking in with even its staunchest competitors. >> the companies that are legacy enhave hadders that have been around for a long time and weren't necessarily born mobile, didn't necessarily come in as mobile are -- that's also increasingly not the case. sap is a great example. that's a legacy company that was running on premise, politics, it's embraced the cloud and mobile in a big way. >> and that's a trend that's encouraging for the appmakers themselves. >> we can deliver our signing functionality on to sales force, sap, microsoft off tice 365 or y

number of standard applications out there. that's the beauty. it allows us to deliver functional that drops into a wide range of systems and applications out there with zero intgrace efforts. >> reporter: a trend that industry hopes might just mean the next big application might be enterprise itself. >> wow. people myrrhi i mesmeri mesmerized. and we speak to will.i.am with apple's purchase of beats. yes, you guessed it, he was an early investor in the firm. we have to take a quick break. see you in two.

welcome back to "worldwide exchange." i'm julia chatterley and these are your headlines from around the world. bnp paribas shares sink on reports it could be facing up to a $10 billion fine for evading u.s. sanctions. the bank of france says it's watching the case closely. the first steps towards complying with europe's court ruling on privacy, setting up a web form for citizens to request the removal of links. from paper clips to the clippers, microsoft ceo steve ballmer inks a $2 billion deal to buy the u.s. basketball franchise the l.a. clippers. and a new frontier for elon

musk, the spacex ceo unveils the dragon v2 rocket, a spare craft he claims can touch down on earth with the accuracy of a helicopter. you're watching "worldwide exchange," bringing you business news from around the globe. if you're just tuning in, thanks for joining us on "worldwide exchange." let me give you a look at how the markets are faring ahead of the u.s. open later today. u.s. futures right now, relatively unchanged but tilted to the downside. as you an see for the dow and the s&p 500, gains of 0.3 to 0.5%. 1920 was the level yesterday. losing a little bit of momentum in the session but not much. let's have a look aat the performance on the month. was it a sell in may? no, it wasn't. it was choppy, though. the nasdaq, the outperformer, up

3.2%. quick check on european markets in trading session this morning. relatively light volumes. a number of investors were out on holiday yesterday. relatively unchanged. the underperformer, bouncing off the lows was the french markets, the cac current, bnp, the stock in focus. let's have a quick look at the month. the ftse mib on the month, slightly higher by 0.5%. it's gained over 3.5% this week. helping out the performance there on the month in just the last few sessions. now, to our top stories, shares in bnp paribas, "the wall street journal" reporting the bank could be hit with a $10 billion fine. it's alleged to have evaded advantages in a number of countries, including iran. the france's central bank is following the case closely. an official spokeswoman says the bank of france has no comment to make for now but the governor is following the case with the

utmost attention. google has taken the first steps towards complying with a recent eu ruling over the right to be forgotten. the search engine has set up a service through which european citizens can request for links about them to be taken down. google stopped short of explaining how the process would work or how long the process would take. that's the crucial issue, isn't it? although it's complying, google isn't happy about the ruling. larry page has told the financial times that the court's decision risks damaging the next generation of internet startups. and holds back on online communications. page did admit to mistakes in the runup to the ruling promising a new level of engagement in europe over privacy issues, he said, i wish we had been more involved in a real debate in europe, quote. now, severe weather sent chills through the u.s. economy in the first quarter. gdp contracted for the first time in three years as the growth rate was revised down to a fall of 1%.

while there are signs that activity has rebounded, this sunday marks the start of hurricane season and the gulf of mexico could see storm activity as early as next week. john davis is the meteorology team lead at earth risk technologies and joins us now. john, i've seen various support saying this could be a less active hurricane season than we've seen. what are you expecting? >> certainly the atmospheric and oceanic parameters that we tend to look at to give us indications whether the upcoming season is going to be active or inactive. a lot of those variables are pointing to more inactive or less activity this year. that includes the development of an el nino event across the equatorial pacific and specifically in the gulf of mexico. current water temperatures are well below normal. storms would have less energy once they get into the gulf of mexico. so the overall indications that

we look at for the season are pointing to a less active season upcoming. >> how accurate are these predictions? >> well, depends on what you're looking at. if you're looking at the entire atlantic basin which would be the atlantic, the caribbean, the gulf of mexico, we have pretty good indications as to if you're going to be a season that is hyperactive or very inactive. the specifics are something that you have to deal with as you go through the season or, for example, what part of the gulf of mexico or the caribbean are going to be affected. for example, with energy operations in the gulf of mexico, what areas in the gulf of mexico will be affected? we have a pretty good idea of the general numbers and activity over the entire basin but the specifics, which is really the key when you're dealing with energy or agriculture or infrastructure, that is the issue here that is a

week-to-week and month-to-month situation as we go from now into the fall. remember the two most active months in the tropical season are august and september which are still a couple of months away. >> what are you advising your clients right now about just how they can hedge the potential risks? >> well, certainly from an overall risk standpoint as to whether it's energy or agriculture, there's no question that as we look at the entire season, the overall risk parameter is certainly less than it would be, let's say, in a season where you didn't have the variables pointing to more activity here. no question that you have less risk here going in. but it also comes down to one storm can have a major implication on overall conditions, whether that's energy operations here in the supply side across the gulf of mexico or agricultural issues across the southern and eastern sections of the country and those are the items here that,

again, we take on a week-to-week and month-to-month basis. >> talk to me about weather derivatives. i see a lot of this mentioned. how can individual investors take a play on what we'll see as far as the weather is concerned? >> certainly, i buy trade meteorologists. i'm not a trader, not into the market but certainly that is a vehicle in the overall parameters of risk that either companies or individuals can use to overall look and manage their risk, depending upon what they're trying to do at that specific time here coming up. >> john, great to chat with you. john davis, the meteorology team lead at earth risk technologies. coming up, meet the new boss. steve ballmer may have found his new occupation as an nba team owner. the latest on the purchase of the l.a. clippers, coming right up.

you're watching "worldwide exchange." welcome back to the show. these are your headlines. bnp paribas faces a $10 billion fine for evading u.s. sanctions. google moves towards complying with europe's corporate privacy. and steve ballmer nets a $2 billion deal to buy the l.a. clippers. steve ballmer stepped down as microsoft ceo just a few

months ago but he's already found his next potential venture as owner a professional sports team. morgan brennan is at cnbc hq with all the details. morning, morgan. hi, julia. steve ballmer has reached a deal to buy the los angeles clippers for $2 billion. which would be the most ever paid for an nba franchise. earlier this month, the milwaukee bucks sold for $550 million. just for comparison, the l.a. dodgers baseball team sold for $2.1 billion in 2012. shelly sterling, the wife of donald sterling says she signed a contract that's been sent to the nba for approval. at least 75% of owners must approve the sale. the sterlings each have 50% ownership in the team in a family trust. donald sterling has been banned for life by nba commissioner adam silver for making racist remarks in a tape made by a former girlfriend. his lawyers contend he must also agree to the sale and he doesn't plan to. the nba is holding a hearing on

tuesday on whether to terminate the sterling's ownership and if the sale goes through, this is what ballmer will be getting. the clippers have made the playoffs the past two years after several losing seasons and the team has a training center and a lease of l.a.'s staple center which it shares with the lakers. that lease doesn't include revenue from luxury suites. ballmer could benefit from local and national nba tv deals which go into effect in the 2016 season. in a statement he says he's committed to doing everything to ensure the clippers continue to win in los angeles. ballmer was previously part of a group that tried to buy the sacramento kings and move them to seattle. so he definitely has the means to buy a pro team. was microsoft's 30th employee. he was hired in 1980 and was ceo from 2000 until just earlier this year. the company filing last october shows ballmer owns a 4% stake, that's worth roughly $13.4 billion as of thursday's closing

price. news of ballmer's bid to buy the clippers is sweeping across the internet. it's spawning several jokes involving a potential new mascot for the team. cli clippy, the animated paper clip assistant that was included in office until 2004. i see you're trying to run a basketball franchise. do you need help with them? julia, back to you. >> i want to ask you, though, how good is your spelling? and did you watch the national spelling bee contest yesterday? >> i did see some of the contest. it was exciting. my spelling is -- i come from print media. it's pretty good. i think it's pretty good. >> we'll be talking about it. great to chat. i'd have to say my spelling is not the greatest. my parents if they're watching will attest to that. two kids have been declared co-champs. srir. am hathwar and ansun sunjoe are

sharing the title. they nearly exhausted the 25 designated championship words. sriram opened the door to an upset when he miscalled a word meaning close comrade. ansun couldn't capitalize. he missed on spelling a lot meaning waterproof leggings. they both get a trophy and $30,000 in highlights. one of the highlights is when this contestant thought he had kabara kabaraga oya. >> c-a-b-a-r-a-g-o-y-a,

kabaragoya. >> it's spelled k-a-b-a-r-a-g-o-y-a. >> what? >> we've got our own spelling test for you. see if you can guess which word is spelled incorrectly? embarrassing, assassinated or fluorescent. if you want to join the conversation on "worldwide exchange," get in touch with us, e-mail worldwide@cnbc.com, via twitter @cnbcwex or direct to me @jchatterleycnbc. twitter's senior vp of engineering christopher frye is stepping down. in his s.e.c. filing the km says he'll keep an advisory role but gave no reason for the move. he's the latest exec to depart after michael sippi left in january. frye was one of two senior

employees who filed to sell part of their stake in twitter when the ipo lockup period expired. twitter in the german session done just over 1.5%. foursquare's coo will reportedly step down in the coming weeks. recode reports that their location-based smartphone apps long time head of business development is also leaving. foursquare overhauls its product lineup, shifting away from its roots ises agame-like check-in service. >> terms haven't yet been disclosed. under the deal, microsoft will integrate sales forces to windows run devices. sales force users will be able to access their content. the collaboration could help further microsoft ceo satya nadella's push to become more

cloud friendly. sales force continuing to rally up, now 3.8%. after the break with the s&p 500 hitting yet another record and the nasdaq at two-month highs. will the week finish as strong as it began? stay with us.

mark zuckerberg and his wife priscilla chan are dough nighting $120 million to the san francisco bay area school system. the gift will be spread out over the next five years. chan, who is a pediatrician says education is incredibly

expensive and this is a drop 2349 bucket. nbc's savannah guthrie has an exclusive interview this morning with priscilla chan on the "today" show. check that out if you can. elon musk takes the wraps off a new spacecraft designed to carry up to seven astronauts to the international space station. musk who runs spacex unveiled the cone-headed rocket dubbed the dragon v2 last night. spacex is one of fefof several e companies competing to replace the nasa retired space shuttle fleet. let's take a look at the markets this morning. it's been a quiet session in terms of volumes. that's the performance as you can see. the outperformer, the ftse mib. helping that performance in just the last few sessions. the question is how do you make money in these markets? listen in to what some experts have been telling us this morning.

>> this depends on what the ecb will do. there is a risk. it may end up being a case of buying more and selling the part. they have to go beyond and make a strong commitment and do whatever it takes to make an inflation target. >> at the moment when we don't have a provider. if we want to the do nuclear right now, we have to go with firm providers. ebf, hitachi. i regret that deeply. we still have the skills in the country but you can't determitu skills around on a dime. >> you need to look into the quantity of u.s. growth. it's not just the quantity, about consumer spending. it is about the supply cycle.

we have seen always when capex is improving and bond yields are going up. it is an early indication. that capex is going up. >> let's give you a look at what's on the agenda today in the united states. april personal income and spending is out at 8:30 a.m. eastern, followed by may chicago pmi at 9:45 a.m. and the final read on may consumer sentiment just before 10:00 a.m. we have a trio of fed officials smeing this afternoon at a conference in stanford, california. look for results from retailers. relatively unchanged but tilting slightly lower right now, the dow jones indicating lower just shy of 12 points of the nasdaq. relatively unchanged as far as the futures are concerned. we did pick up momentum yesterday, fresh high of course for the s&p 500 right now. you can see 1915, the figure.

todd horowitz found an average joe options.com. he joins us from the cme. we can't forget it's the last trading session of the month today. do you expect to pearing back of risk? where we go today, we're trading at about 60% of normal volume. volatility is at multiyear lows here. there's really no interest. it really appears that the markets are waiting for some big announcement, whether it be mario draghi on the 5th of june, whether it be next week's jobs number. whatever it is, the markets appear to be waiting because there's really nothing going on. the yields are coming down. bond futures are going to the moon, which is a counterindicator to what is going on in the stock market. gold is in the tank. it really looks like not a lot will go on. i expect another quiet day,

whether there might be small profit taking or a continuation of this dull, driving, grinding higher market. >> so you talked about the ecb next week. what are your expectations there? there does seem to be optimism baked into the cake as far as what mario draghi can do here. >> you know, mario draghi is somehow always pulled a rabbit out of his hat and forced the markets higher and what happens in the ecb plus what happens here in the u.s., i'm assuming he'll say something that will be positive. the question is, will it be positive enough to carry this momentum that this market is building? again, this momentum is really fairly artificial because there was really no volume to support it. nor is there any volatility. it's really -- i think we're kind of winding down here at the end, this margin debt in the states here goes to all-time record highs. >> what are you saying, sit on your hands or play it, go for the long bonds and equities here, take the grind higher? >> i think if you're in, you

have to sit on your hands unless you want to go for the long bomb. the long bomb will not come to the upside in my opinion. if we get the long bomb it will get to the down side. they grind higher, they make it torturous to be in but they continue to grind. if you're looking to are a big home run, you probably have to take a chance to the downside. >> the jobless claims in particular, it's hinting at further strength in the labor market ahead. what do we need to see as far as payrolls are concerned to move the dial on the markets right now? >> you know, the payroll numbers are really so poor, you know, for some reason we like to celebrate numbers like 180 to 200. we need numbers and sustainable numbers over 300,000 to 400,000 a month to break even. the jobs number picture is a mess. the growth in this country is a mess. you know, unfortunately, because the fed induced funds that allows this market to continue

to move art fshlly, we're making big deals out of numbers that are not very good. we are still not seeing real growth here which really becomes a problem at some point down the road. when that problem is going to appear, i don't know. but i can't tell you that this growth, what we're seeing with jobs, the whole thing is really not good. it's pathetic when you look at the jobs participation rate. >> brilliant. todd horowitz, founder of average joe options.com. have a great day. stay tuned to cnbc, the "squawk" team will be speaking to rap star and beats investor wil will.i.am. european views will get to also hear from will.i.am. earlier we asked you which would was spelled incorrectly, embarrassing, assassinated or

floor res sierido fluorescent? assassinated. thanks for joining us. "squawk box" is next.

good friday morning. one more trading day left in may. are investors preparing to sell and go away? hopefully we've got some answers. also erasing google. how the tech join the is letting europeans delete personal information from search results. steve ballmer, he's found a new job. the former microsoft boss behind the l.a. clippers for a record $2 billion. friday, may 30th, 2014. "squawk box" begins right now. ♪ they're playing basketball ♪ we love that basketball ♪ they're playing basketball >> good morning, everybody. welcome to "squawk box" here on

cnbc. i'm becky quick along with andrew ross sorkin. joe is out today. but we have double duty when it comes to our guest hosts. andy and dan. guys, welcome. >> good to see you. >> good to see you bright and early. thanks for coming in. >> happy friday. >> we're there. better than hump day. >> you're in joe's seat. >> i'm going to start channeling joe for a while. my whole political spectrum is shifting. >> wow. okay. >> we have a lot happening this morning. we want to start out with the markets, the s&p 500 closing at another record yesterday. just one trading session left in may. here's how the major averages stand just for this month. the s&p up by 1.9% and the nasdaq up by 3.2%. of course it's really the bond market that's been a huge story this time around, too. yields have dropped to as low as 2.4% for the ten-year. the ten-year is yielding