welcome to "worldwide exchange." these are your headlines from around the world. and then there were three. shares trade higher as hitachi joins mitsubishi in a joint bid for the energy business. the coo will step down at the end of june. this as the french bank continues to battle a u.s. probe into sanctions violations. uk chancellor plans criminal sanctions for bankers who rig the $3 trillion pound a day foreign exchange market. and the waiting's over as the soccer world cup kicks off in brazil.

authorities are nervous as intelligence suggests protests could disrupt the opening match. welcome again to "worldwide exchange." now, on today's show, the world awaits as brazil is set to open football's biggest event. if you've not got a ticket, where can you cheer on your country? well, we've got a website to help you with that. if football isn't your thing and if all you crave is a good cup of coffee, we'll take a look at starbucks' latest initiative top help charge your batteries, literally. will lululemon's q1 results leave people feeling sour? and goes to the movies. we speak to the man behind the monster madness sweeping europe.

all that and much more coming up in the next two hours. it's the first time i've seen that. brazil is celebrating the first day of the world cup tournament by lighting up one of the most recognizable landmarks. lit with the team colors of all of the countries competing in the competition. people in some parts of the country took to the streets and beaches to party ahead of the game. but the enthusiasm of the nation that is known for having football in its soul has been dampened by social unrest and security concerns. the president has rejected accusations of overspending, also defending the country's readiness for the cup. >> translator: the other accusation being leveled at us is that brazil does not want to host the cup. i'm sure this is not true.

i see more and more the hospi l hospitality toward the teams. that's why i'm telling you that we have everything we need to make this the cup of cups. >> now, travelers flying into rio de janeiro could be greeted by delays. ground stops have started industrial action as they seek improved terms for handling the increase in passengers related to the world cup. there is some better news, though, metro workers in sao palo have agreed to call off the strike. after facing criticism from european football authorities, he struck a defiant tone ahead of today's kickoff in sao palo. >> my mission is not finished. congress, my vision is not finished.

and -- and i tell you, together we will build the new fifa. together, we have the foundations today because we have the budget for the next four years 215 to 218. we have the foundations and work. congress, you will decide who will take this great institution forward. it's your decision to do so. that i can tell you, i am ready to accompany you in the future, but it's your decision, congress, if you want to go with me. thank you so much.

>> now, yousuf, looks like he's more entrenched than ever. how can that be? and how does it play into the 2022 investigation, too? >> well, it's fascinating how all of this is playing out, julia. because if you remember sepp at the beginning of his term in 2011, he said this would be his last term and he would retire. he appears to have changed his mind. he did make it clear there's still a lot of work to do and he has the fire in him to do that kind of work. now, you wait for the european football association. they've cried out and said, no, that's something we do not accept. we think sepp blater didn't do that good of a job. he's responsible for tarnishing fifa's reputation and needs to take responsibility for the ongoing corruption allegations. keep in mind that sepp blatter

has a lot of support outside. they tried to pass a motion that would've limited the terms and age of the fifa president. and that motion was thrown out. he has the backing at the moment. but a lot of that will depend, as well, on how the ongoing investigation into the 2018 and 2022 plays out. we did hear from michael garcia, he stepped up to the podium, the chief ethics investigator. and he said he would not be detracted by the recent publications from the sunday times and others. he said the material itself was not necessarily new. he had seen a lot of it ahead of time and that the time line was still intact. looking at mid july, wrapping up the report, it will then be submitted to a german judge and they'll determine whether further action is warranted. but again, that will have significant bearing on the trajectory or any ambitions of

sepp blatter. >> fascinating. we'll catch up with you later. joining me on the set, the cio at rail. and michael burn, managing director at wealth x europe. let's start there, francois, what do you think of the situation, fifa? isn't this an opportunity for change, really? >> i think it's time for change, i think. somebody's been in charge of an organization for so many years, facing so many problems. it's time for a change. and i think it's not good that we speak about fifa, so much about scandal. it's time for new blood and i think it is time for the guy to go. >> michael? >> yes, controversial views. well, i'm full of controversial. i think of it as a wealth x view and a personal view. i would suggest perhaps producing a dossier on blatter and his wealth before and after. >> is that the personal view or

wealth x view? >> somewhere in the middle. >> okay, bye. talking of wealth. >> certainly. >> how important is wealth, then, for the success of football teams? you've made a league of the -- >> yes. interestingly, i do a little bit of personal research. and he's the only individual whose wealth is made up more from endorsements than it is from salaries and bonuses. if you look at the top ten richest in the list, he doesn't feature. you're looking at a combined wealth of around $1 billion u.s. total and he's not on that list. >> and the richest star is rinaldo. >> $23 million in net worth. followed closely by messi. >> what's the punch line? why have you done this? >> why have we done this? it's good media. >> it is? >> it's important for people to understand what makes up the

wealth of individual players and people. it's an interesting feature. >> and england has more wealthy players on the list than any other country? >> that's right. i believe four exist. only two individuals on that list haven't played in the english premier league. >> great to chat to you. managing director at wealth x europe. very quickly, francois, does world cup fever make a difference in the markets? i've seen a lot of reports saying the winner does well in the month preceding. does it make a difference? >> it can have an effect. people are not concentrated on their daily business and looking for watching the shows and everything. nevertheless, i think down the road, this is a minimum impact. minimal impact and won't change the economic situation. >> are you going to be watching football or making investments? write in and tell us your view.

no brazilians among the best paid players, but remains the favorite to win the overall cup. does it bring success in sport? or could high-paid stars prove a drawback. if you want to join the conversation here on the worldwide exchange, get in touch with us by e-mai e-mail @worldwide@cnbc.com. or tweet me directly. now, london plays host to the ninth founders forum today, an event which brings together entrepreneurs and investors from the media and tech space. today's highlight is a keynote speech from eric schmidt. the event in london. looks beautifully sunny there, tell us what you're expecting. >> oh, it's fantastic. and it's going to be a great day. already has come off to a good start. the morning, i was in listening to one of the morning sessions. you'll note behind me, we're looking at a beautiful car, as well. the sponsor of the founder's

forum. i want to get on and introduce my next guest to you. the co-founder and cto of swift key, a keyboard, a new form predictive typing keyboard. tell us a little bit about the product first. >> it's all about helping people to type more easily on smartphones. we had this vision to take really smart technology and make people's everyday lives easier. and i think the product really does that. >> and your present on android and now launching into the rem of apple. >> we've been one of the top paid for android the last few years. it's an incredible success story. but as of last week, of course now we have the opportunity to build for ios, as well. it's a platform play for us, very exciting times. >> but it's a slightly different deal with apple than what we've seen in the past with some of the other deals, as well, where you're allowing them to build more of the infrastructure as it were.

>> so what apple had done is the same thing you have an android, which is an open framework for third party keyboards. that means the product we built in android will be able to do exactly the same thing on ios. >> the other newsworthy bits surrounding swiftkey at the moment is you've dropped your price from almost $4 to nothing. this is kind of a make or break decision to do this. >> yeah. it was a gutsy move for the business. but we felt it was absolutely the right thing to do. what it means is we can take the core typing experience that millions of people around the world love and make it available to an even wider range of folk. and that's our core vision. get this technology out to as many people as possible. and that gives us a sustainable way of doing that. it's a big decision for us, but we think absolutely the right thing to do. >> what happens with revenue then?

>> well, so we're in a very strong place, financially. and also, the fremium model has been shown to be successful in terms of revenue. we're very positive about that, as well. >> so i type a lot and i type quite quickly on my various mobile devices. the predictive typing is a bit interesting if you type imaginary words and things like that like i do. what are some of the trends in predictive typing? it changes all the time. >> yeah. in 2010, we introduced this concept of next word prediction into the market where the software is thinking ahead and helping you to type the thing that's coming next. i think there's a real trend towards software that's becoming more human. one of the great things about our technology is it really models the way you express yours. your language, your vocabulary. we shouldn't be thinking about i type these words that are different. those words are part of who you are. and the software should learn

that. and that's really the heart of what swift key is all about. about capturing that human element of language. >> ben, thank you very much. i hope that the software figures out how to predict you're typing in two languages at once. >> well, that's the great thing about swiftkey. >> thank you very much. from swift key here. i'll be speaking to the ceo of one fine state coming up, and the ceo of minecandy. much more from the founders forum. julia. >> thanks so much. we look forward to both of those. now, still to come on the show, getting tough on rigging. find out why the uk chancellor is set to snub the eu and push for tougher sentences for rogue fx traders. we started zya with the thought

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welcome back to "worldwide exchange." let's take a quick look at how the markets are performing. we have bounced off the lows. you can see, taking the u.s. stock 600 up, around 1/10 of a percent. you can see relatively unchanged

for the ftse 100, showing slight gain after yesterday's trading session. but as you can see, caution trading. and an issues this morning. the markets are delayed start to the session today. let's take a look at some of the key stocks we're watching in today's trading session. up .2%. francois hollande has called a meeting. making a bid for the french firm's energy assets. it would rival general electric's offer of $6.9 billion. we'll be talking about it later on in the show. alstom up 1.1%. aerlingus down 2.7%. operating profit will be 10% to 20% lower than last year.

negotiations yesterday saw two further strikes set for this month delayed. that stock, as you can see, down 2.7%. and german bank bay lb says it will challenge. funds that are its own. now, this after the country's government announced measures to make investors not just taxpayers share the wind down costs for a bailed out lender. spoke to the country's finance minister yesterday and asked him why the move was necessary. >> no, really not. this is a really special case in austr austria, and only in this case. the law that we have decided today will get subordinated bondholders. also being concerned with that and no other bank is involved in that issue.

>> got to wonder about that. now let's have a look at foreign exchange rates in trading today. we've got euro/dollar 1.3519. little to say about that one, really. the low 1.3502 from last week, continue to watch to see if we see a push lower. 1.3480 the low for the year, in particular, i'll point out to the big move today, up 1.4%. raising rates to a five-year high, 3.25, and no sign of stopping, around 80 basis points over the next 12 months in particular, too. now, george osborne is set to snub eu regulation on market abuses instead saying he'll punish market through british rules. by using national rules, he can ensure it is introduced sooner than the european deadline of 2016.

the chancellor will outline his full plan in a speech at the mansion house event this evening. francois, of course, is still with us. what do you see as far as this potential move from george osborne and the uk markets and the potential ethics? do you think this is a snub to the eu? or him saying, you know what, we've got the biggest market in the uk and actually want to maintain control. >> i think it's a little bit of both of the elements that you mention. i think that clearly there is -- the uk is in position now they want to show they can live without the eu, they are in negotiation about who is going to be the president of the commission, et cetera. i believe it belongs to this kind of attitude. and the other element is the biggest market and they want to show they are ready to act and swiftly in order to make the things happen. >> more broadly about markets now, your take is that the u.s. economy's shaping up to see an acceleration this year. you've been surprised by the

pick-up we've seen in europe. where does that put us as far as the cycle is concerned? and what do investors need to be watching for at this stage? >> i think we remain in a transition cycle. after 2007 and the crisis, the very unbalanced economy, into a more balanced economy. we had improvement in the course of the last few years, deleveraging in the u.s., improvement of the banking system. nevertheless, i believe we are in the mid cycle. early stage of a new cycle. not at the late stage, we are in the middle cycle. it means equities remain attractive, but people need to be wise and not to jump to equity at any price and need to wait the right moment to be a good stock picker in the current environment. >> when you say wait for the right moment. >> i believe that lately the market has pushed up significantly. valuation are stretched. i believe currently, i would not

be surprised if we see setback in the equity market in the coming days that can continue to happen over the last two days. i think it can continue. that's where you find opportunity for stocks that you like, the good stories you want to be invested in. each time, you need to try to find setbacks to get involved. >> so your core right now the correction we've seen, the very minor correction we've seen could actually be something bigger over the next few sessions? >> to me, correction is more than 10%. >> feels like profit taking. >> yes, it's profit taking, in this kind of face, it's good to reflect and find the stocks to try to get the entry point you want. >> we've got retail sales in the u.s. today. we've got the fomc meeting next week. is there also some kind of concern filtering in that actually given some of the data coming through now from the u.s.? we could be surprised at the june meeting.

not necessarily as far as tapering's concerned, but the message they give us, perhaps, raises eyebrows about the timing of hikes. >> this is a risk in the sense it's very strange to see that the bond market does not believe the forecast of the fed. so it is a very tough job to bring back the market and to tell them, okay, listen, we have some forecast. we believe that interest rates would be at such level may be optimistic and realistic about the prospect for the interest rates and equity market in the future. so i believe, yes, there is a that the market would be surprised. >> the support mario draghi has provided in the last week or so, does that give you greater confidence? >> yes, i think, clearly a good step. it's not -- it was in a way a correction. the ecb needed to act, show they were able to find a consensus. yes, it's a good move.

does it solve all the situation or the problem in europe? i don't think so. we need to remain aware of some problem in europe. nevertheless, it was a good move. >> brilliant. great to get your perspective. this morning. now, bmp has announced the coo will step down at the end of june. the french bank continues to battle a u.s. probe into sanctions violations. stefan is in paris. is he retiring? or do you think he's been given the old elbow here? >> that's the version from bnp paribas. requested to step down a bit earlier than expected. he will leave the bank at the end of this month. this is what bnp announced without further details. however, this seems to be part of the settlement with u.s. authorities and could be, and could pave the way for broader very shortly. bnp is negotiating with the department of justice to settle

a probe on whether the french bank didn't respect the u.s. sanctions in iran, cuba, and sudan between 2002 and 2009. bnp paribas could face a fine of more than $10 billion. u.s. authorities are calling for the french bank to fire a part of its management, including the deputy c.o.o. who announced he would step down. the new york financial services department is also asking bnp paribas to fire the head of compliance on the internal controls in north america between 2005 and 2007 and is now a senior adviser to the top management of the bank. and also the u.s. authorities. we talk about this before, would like the bank to plead guilty, which means bnp paribas would

lose for a short period of time. it's the fifth largest bank in the world when it comes to dollar clearing. and according to the head of the french central bank, the probe could threaten the global financial system. >> certainly feels like it's opening pandora's box as far as the charges are concerned. we'll catch up with you later on in the show. now, still to come. trying to boost italian trade as he continues his asian tour. but just how successful have his efforts been? find out right after the break. huh, fifteen minutes could save you fifteen percent or more on car insurance. yeah. everybody knows that. did you know there is an oldest trick in the book? what? trick number one. look-est over there.

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you're watching worldwide exchange. bringing you business news from around the globe. shares trade higher as they join mitsubishi and siemens in the joint bid for the business. bnp says the c.o.o. will step down in june. continuing to battle a u.s. probe into sanctions violations. uk chancellor george osborne plans criminal sanctions for those who rigged the market. and the waiting's over as

the soccer world cup kicks off in brazil. authorities are nervous as intelligence suggests protests could disrupt the opening match. let's take a look at the european markets this morning. as you can see, a bit of a cautious session the french market's making the strongest gain, up .2%. we were split early in the session between gainers and losers right now. and as you can see, following on the negative sentiment in particular overnight. quick check on bond markets this morning, too, we can see the u.s. treasury there inching higher, 2.65, the level, 2.64 where the lackluster ten-year auction traded yesterday. we've got trading at 1.40. 2.73 as we look toward the speech tonight from mark carney and george osborne. dollar under a slight amount of

pressure today. euro/dollar relatively unchanged. the level right now. we're not showing you the level, but five-year highs for rates right now. there you go. you can see, 1.3% now. industries are reportedly preparing a joint 9.8% bid for the energy business. stefan is back with us. good to see you again. you know what, i think this makes sense for siemens. but i can't see francois hollande going for this, can you? >> absolutely. yeah. it probably will change everything on the french side. you're right, it could help siemens to get approval. it would avoid any dominant position. however, on the french side, we don't see the government giving its blessing to a plan that would lead to being dismantled

between mitsubishi and hitashi. it's no secret they were in favor of siemens because wanted to create two european champions, one in transport and one in the energy sector with siemen's. but if they are to take part, we're not talking about the -- they'll be like japanese unit, european unit. and it's likely that the french government would then revert to general electric, general electric operating in france for more than -- more than a century. and it's been working with for more than 30 years. produced together some engines for the airlines. remember also that job protection is a key priority for the french government. and on that point, ge promised

not only to save jobs in france, but to create 1,000 positions in the country after the acquisition of for alstom. and if the government has to deal with others to get guarantees in terms of job predictions. too many people around the table. if siemen, hitashi and mitsubishi are to make a joint bid, that's probably good news for general electric at the end of the day. >> absolutely. looking better and better at this stage. let's get the japanese perspective, though. joining us live from tokyo. mikiko. >> yes, the fierce battle has been going on over the french conglomerate. and general electric and siemens are offering to buy the energy-related business. in hopes of countering the $16 billion offer from ge. mitsubishi heavy has brought

hitachi onboard. with mitsubishi owning a 55%. and the aim is to buy the steam engine turbine segment for around $5 billion. and siemens would pay more for the gas division. and if the deal goes through, sales of siemens and the turbine businesses combined will come closer to that of ge's of $49 billion. and that's all from nikkei. back to you. >> thank you so much. we'll get more clues on how the chinese economy is doing. industrial output, retail sales and fixed income asset details due. japan is expected to stand pat yet again with no change to the current policy of expanding the monetary base of 60 to 70 trillion yen each year. markets and banks bracing

for an impact. copper has dipped over 2% this month as chinese authorities look into whether companies use copper, aluminum and iron ore stocks as collateral for obtaining multiple loans. at least six lenders including standard chattered provided loans to trading firms that were backed by metals stored. signed trade deals with china as the italian prime minister continues to push plans for economic reforms in italy. the deals were hailed by chinese premier xi as he continues his asian tour in an attempt to boost italian trade. now founder and chairman of gwm group who joins us now in the studio. thank you so much for being here. when we last spoke, we were in rome and saying, actually, as much as he does, his hands are tied by what else is going on in europe, particularly as far as germany's concerned.

i know we'll get back to this. for now, domestically, what's the sense there and how much has changed over the last four months? >> let me say, the hope is back. if you think about he's in china. italy is known as the country of ideas. that's a beautiful way of -- and not only for our glorious past. music, literature, but the last 100 years. if you're using a personal computer, using telephone, nuclear energy, you're flying on a plane, you're dressing well, you're eating well, you know, driving beautiful cars. in my opinion, now hope is back, we are a country that we have to be put on the edge. when we are on the edge, we react, this is always like this. >> you said to me, as well, that needs to look more broadly, not just europe, but actually in the

world. do you see that happening now? particularly given the china trip we were just talking about. >> absolutely. he's young, he's 40 years old. he's changing completely the political landscape full of younger people. we have been for 20 years of mr. berlusconi and now he's back home in italy. i think a lot of u.s. investors and international investors coming to italy. why? the problem is not italy as i was trying to explain in my last interview. germany, leadership in europe is how europe is constructed and built. that's a serious problem. and you saw mr. super mario as i call him. he made something incredible. before the 5th of june and the ecb after the 5th of june. it's like the big bang. for me, that was extremely important. so now we have to see qe, is going to happen, i think, yes. there's no -- inflation is, you

know, going to zero. 0.7 in europe. so basically, it's not a problem of debt. italy has that in the last 60 or 70 years, we increase the huge debt. by the end, in the last five years. it's not a problem of debt. it's a problem -- >> it is a problem, though. just because everybody's got debt doesn't necessarily mean that italy's no worse than any other country. it's a huge problem. >> it's a huge problem. but if you think of what happened in the u.s. the nation of the free markets, what they have done in the last five years is the most interventions ever of even, you know, communist economy, right? intervention of state, they have flooded the world with dollars. look what's happening in japan. same thing. now, in europe, we have no growth. we have basically let's say the political business model of germany with low wages, so-called agenda. with keeping wages low, this, you know, benefit to germany, to

the exports, they have no internal demand in germany. no consumption. so europe is going down, you know, overall. >> what you're saying is you're happy with what mario draghi has done, but frankly, not enough, and the onus is on germany to boost growth to trade more to do whatever it takes to support other european economies. >> absolutely. >> doesn't he have to stand up and do it himself, though? i get what you're saying. >> i agree. all the reforms, restructuring reforms on taxation, the administration. i think renzi with his young energy, he'll do this. but, again, what i was trying to say is when we sign the in 2011, the fiscal compact. if there's no growth, you have 40, 50 billion of budget cuts every single year for 22 consecutive years. so at the end, mario draghi did -- i think he's a super, you

know, central banker. the problem, he convinced the bund bank. i say jurassic park, you know, they're fighting something that doesn't exist anymore. we're in the deflation risk. that's the real problem. >> if you could sit down at that table with them, what would you be saying to them? what do they need to do? >> we have to solve the problem of jobs. >> how? >> created 50 million of unemployed people. >> how? >> change the parameter 3%, take away the infrastructure costs and investments and make a huge investment in infrastructure. all around europe. i think italy can become the florida of europe infrastructure, ports, transportations, energy that, you know. this is -- >> you're saying blow out the deficits again, spend more again. >> absolutely. there's no way. qe is there. if there's no qe, we're going to

go into inflation. the big changes that france is falling into the populist hands. it's not anti-euro. it's anti-this kind of euro. i'm more in the position of the uk. should have another vision. this is the point, and she's not had a vision. the great germany is only great thanks to the election not unification. in 1990, they have integrated the exchange rate of east germany, 1 to 4 in one night, 1 to 4. they have destroyed 70% of the capacity of one nation. they have gained in one year 16 million of consumer. of course they become so strong. they kept the wages low for 12 years. at the end, this is not working. they have to hire their wages. they have to increase the internal demand, otherwise europe. and this is the point.

now, we have a big majority. but in france, it's a big problem. in two years time if they don't change the problem of jobs, europe is going to fall apart. that's my point. a leadership and change. we have benefit so much, now it's enough. >> you came into this interview saying that optimism in italy is back. hope is back. is what you're saying actually that hope is false because ultimately the structure of europe still doesn't work if the eurozone still doesn't work. >> hope is back because we believe things can change, you know. we are changing the political, let's say, leadership of our country. so a lot of money. the assets around all the world are coming to italy. because this is a location of, let's say of assets flowing our way and they're coming to europe. europe is going to hold. this is the interpretation of the market.

europe is going to go in quantitative easing. more convenient to invest, spain, italy. especially italy. italy is changing. and so probably we will go through this important reforms. yes, fantastic. but, again, if you don't solve the problem, we have 14% of an unemployment in italy. 46%, 45% of youth unemployment. so basically 1 out of 2 young people don't find job. you know, one generation that is destroyed. so that is -- for me, in the meeting that you are saying, the first thing is we need to move, create growth in europe. we need to, you know, solve the problem of 30 million people unemployed. that's the main point. >> energy and passion into the situation. going to shake them up, as well. so, thank you so much for coming on the show as the founder and chairman of gwm group. some breaking news on the situation in iraq right now.

kurds are in full control of the city according to dow jones sighting officials right now. looks like an improvement, it seems in the situation they're taking back the kirkuk city. brazil is celebrating the first day of the world cup tournament by lighting up one of its most recognizable landmarks, christ the redeemer. the statue was lit with the team colors of all the countries competing in the competition. across the country, some people took to the streets and the beaches to party ahead of the opening game while others stayed away concerned by security worries. the president urged calm across the country. >> translator: the other accusation being leveled at us is that brazil does not want to host the cup. i'm sure this is not true. i see more and more the hospitality of the people toward

the teams and how happy the people are. that's why i'm telling you we have everything we need to make this the cup of cups. >> travelers flying into rio de janeiro may be greeted by delays. started industrial action as they seek improved terms for handling the increase in passengers related to the world cup. metro workers in sao palo have agreed to call after the strike. with less than 12 hours to go before the kickoff of the world cup or world cup game, whether you like it or not, your facebook and twitter feeds will be filled with football posts. nike and others have launched campaigns to capture all of those eyeballs. julia boorstin takes a look at the biggest winners and losers. >> the world cup is expected to be the biggest social and digital media event ever as billions of football fans worldwide turn to twitter,

facebook, and youtube for information and to talk about the action. the upcoming tournament in brazil is expected to eclipse the 10 billion page views fifa.com generated during the 2010 world cup. 30 of the 32 soccer teams and more than 300 players are on twitter, which is billing itself as the only global viewing party. allowing soccer fans to track all 64 matches. twitter says there's been more posts about this tournament than the entire 2010 world cup in south africa. during the last world cup, twitter says it feared in brazil scored a goal, the flood of tweets would crash the site. and facebook launched a hub for soccer fans to track games and highlights. there's also a map to track fans' activity from around the world. and world cup advertisers are shifting more of their dollars to digital platforms. adidas along with another world cup advertiser, visa is working with twitter to spread the

message. experimenting with a new feature that allows fans to share sponsored videos by typing a certain hash tag. and here in the u.s., where espn has the broadcast rights is bolstering the digital options. with the watch espn and watch abc apps. we'll be watching to she which media platforms score. back over to you. >> and you're now looking at a live exterior shot of the stadium where the first match of the world cup will take place later in the day. i've got no idea what size that is. anybody know the capacity of that? 61,000. perfect, 61,000. no brazilians are among the world's best paid players even though the team overall remains favored to win the world cup. does individual wealth really bring success in sports? or could high-paid sports be a drawback? e-mail me at cnbc.com, via

twitter, or directly to me. it doesn't have to be football related if you're sick of football already. good luck to you, got a month of this. anything, anything on the show, e-mail. still to come on the show, getting tough on rigging. find out why the uk chancellor is set to snub the eu and push for tougher sentences for rogue ethics. chocolate is very individual. white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their preferred chocolate. we needed the scalable cloud solution allowing them to see all 800 products and select what they are looking for. now there is endless opportunity to indulge.

george osborne is set to snub regulation on market abuses. they say he plans to punish market riggers through british rules. although it's similar to the eu directive, osborne says by using national rules, he can ensure it's introduced sooner than the european deadline of 2016. the chancellor will outline his full plan in a speech at the event this evening. now, bankers pay is also a key issue in the discussion of banking. author of the bankers new close is in the studio with me. fantastic to have you on. >> thank you. >> let's start with osborne and regulators' attempts to control

the situation as far as fx rigging, the libor scandal. it's a problem, isn't it, even now, surely? >> yeah, what osborne is talking about is not regulators, but kind of the laws themselves. criminal penalties. and that's a whole different boll game. what's the consequences for certain behaviors? some of them are legal and some of them might be illegal, but then you have to prove it in a court of law. and you've got to get consequences. how do you regain trust is what he's saying. that's tough. >> and do you think this works? >> well, i think, obviously, there has to be personal consequences. in the u.s., there's a whole sh charade of penalties on bank shareholders who are paying for all of these things that end up being settled, usually, without admission of guilt, maybe with, few consequences, it's pretty symbolic. and like that. so it becomes like we're numb with all these scandals all the time. and so they're all trying to get control over them.

it's difficult because of the incentives. everywhere if you have incentives and you can get away with stuff, people do it. >> let's talk about bnp in that regard then and the potential department of justice. we're talking $10 billion. you mentioned shareholders being punished. you said if bnp gets this hit, it could end up cutting its dividend down the road to pay for it. is the punishment reflective of the crime in this case? >> i have no direct knowledge of any of the particulars of this case. i think the idea supposedly is the shareholders should set in place governments to make sure that they -- that the people who work for the bank who are using their money would not violate the laws. so supposedly, shareholders are supposed to be behave like owners of the business. and do something about it. and that's why they are kind of -- companies as an entity. so i don't know specifically about that. it's interesting the u.s. is going after foreign banks, which

is nice for relief for the jpmorgans. >> yeah, interesting, isn't it? more easy, perhaps, to go off to european banks than your own banks at that point. what about the situation then, as far as the global banking environment is concerned? what's your take right now? because you're very stringent on actually how leverage rules should be applied, how capital should be calculated. are we doing enough? >> well, i think we're doing it in an unfocused, really, kind of constraining ourselves for no good reason. look at the biggest banks are growing and becoming ever more, you know, the same interconnected and dangerous. they're so distortive. and then we have the concerns about the health of the banks and related to that is sort of here's growth in europe and how the banking system is doing. so there was a report just last week of a committee of the european systemic risk board called is europe overbanked?

so here we have weak banks, but they can never kind of die off. so everybody support it. and fundamentally from my perspective, everything that's wrong in banking, including the decisions to lend too much and too little is related to somehow excessive indebtedness and bad regulation. and it's not solved. >> on that note, with the banking union that we've set up in europe, where is germany's banks lie? we've got the likes of deutsche bank. >> well, germany is not a good force in banking, for sure. germany and france have been lobbying against better regulation, partly because of the politics of their banks. so deutsche bank is a very dangerous bank, very unhealthy monstrous bank. then you've got the many small -- and also unhealthy banks in germany. and so they want everybody to

take care of their banks, but they are not that good about taking care of their own banks even though they're rich enough to keep feeding them for the local and other politics. >> what you're saying is the german banking sector is poisonous in the banking union we've created. >> well, all kinds of things. if you look at the whole affair with greece and the greece restructuring. they waited all this time while greece is paying exorbitant rates getting cypress into trouble until the german banks got out of there. >> and fantastic to have you on the show. author of "the bankers new close." the world cup tournament kicks off today. we'll be talking more. we needed 30 new hires for our call center.

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uk chancellor plans criminal sanctions for bankers who rig the 3 trillion pound a day foreign exchange market. and the waiting's over as the soccer world cup kicks off in brazil. authorities, though, nervous as

intelligence suggests protests could disrupt the opening match. and if you're just tuning in. thanks for joining us here on "worldwide exchange." and a look as always how the futures are fairing ahead of the u.s. open right now. and as you can see green it seems across the board to take back some of the losses in yesterday's session. all-time highs early last week sharply negative. the worst day in three weeks for both the dow and s&p yesterday, the dow snapping a five-day win streak, in particular, we've also got the ten-year trading at the highest levels it's been, a lackluster auction. investors questioning right now what's going on. we've got retail sales data in the u.s. to watch today, too. quick check on the european markets right now as you can see, relatively unchanged, a touch lower for the ftse 100. and the ftse in red territory,

again, only talking .1%, a cautious start to the european market session. let's have a look at the foreign exchange rates. euro/dollar relatively unchanged, 1.3527. the level there. over in new zealand, the big move today at 1.3%, raising rates for five-year high now, 3.25, the level there. and no sign they're stopping according to the comments there. 1.02 the figure. brazil is celebrating the first day of the world cup tournament by lighting up one of its most recognizable landmarks, christ the redeemer. the statue lit with team colors of all the teams in the competition. some took to the beach to party ahead of the opening day.

while others stayed away concerned with security details. >> translator: the other accusation that is being leveled at us is that brazil does not want to host the cup. i'm sure that this is not true. i see more and more the hospitality of the people towards the teams and how happy the people are with a brazilian team. that's why i'm telling you we have everything we need to make this the cup of cups. >> travelers flying into rio de janeiro may be greeted by delays. ground stops at two of the city's airports have started industrial action as they seek improved terms for handling the increase in passengers related to the world cup. there is some better news, though, metro workers in sao paolo have agreed to stand down their strike. a new site that could help you find the best bar to enjoy the game in. that's coming up in around 15

minute's time. joining me now is thomas, the senior economist at standard chartered bank. football fan, thomas? >> kind of, yeah. >> what does kind of mean? you're saying it just for now. but your house is predicting brazil wins, spain comes next. >> indeed, yeah, we released a report earlier this week that predicts the final could be brazil against spain with brazil winning the world cup, basically. >> everyone's saying the same. you also predicted the number of goals you're expecting in the world cup, too. how many goals? >> indeed, based on the study, there could be some surprises, speaking of the world cup, we are thinking mainstream, spain, you could see some surprises, and we think especially of england, potentially. >> how exciting. >> worth watching, i think. >> what's the likelihood of

england winning? what's the likelihood of a surprise as far as england's concerned? >> well, we don't have the precise likelihood. >> oh. >> but, again, that's something -- >> shame, that could be a complete outlier. an interesting poll in the uk saying fans most likely to win the world cup. and you know who joins them? fans in the u.s. think they're likely to win the world cup. >> well, the u.s. is a bit of tough, you know, group first and -- >> you called it the group of death. >> yeah. italy can be tough. it'll be tough. but i think soccer as they call it there is something really rising there. so i think watch the space. in the future, the u.s. could be stronger. >> watch this space. what about that confidence, then, as far as u.s. fans in the football team? how does that translate to what we're seeing as far as the economy's concerned right now?

i know you're a little bit more cautious than everybody else about the u.s. right now. >> i think you're right. expectations for the u.s. soccer team are quite low. but by contrast, expectation for u.s. growth are quite high. and i think there's room for expectations to go down a bit. i think people expecting 3% growth next year, and i think that's a bit too optimistic. our forecast is 2.4%. so we think closer to the trend. >> investor sentiment at some point, too. we've got retail sales today, the fomc meeting. whether at some point given the pick-up in data as far as q-2 is concerned, investors worry that will filter into the message we get from the fed next week and raise concerns about when they're going to raise rates. we saw an article, didn't we after the payrolls on friday suggesting that perhaps the questions are going to be asked, the debates there about the timing on rate hikes.

>> and i think the data is quite mixed. you've seen strong employment gains. i think that should pave the way for further tapering. but at the same time, they're still going slack in the labor market. you see participation rate is very low. and i think there's no rush. i think that's something likely to stress. i think the rate hike is a 2015 story. mid 2015 story. and there's no rush. hammer the fact that rates in the long run will, you know, could stay lower than what they used to be in the past. >> what's your call on rates, then, over the next six months? >> yield, for ten-year yields, we see them grinding higher to 3% by year end. but with this move up, we'll be gradual. and the rhetoric will likely cap the increase in the rates going forward. >> investors shouldn't be cautious about what we hear from the fed the next week and next few meetings because they will be very contained in what we see

as far as the growth outlook is concerned. >> support the view that the rate hike is a 2015 story. >> yes. >> this being said, a few things to watch, and including the fact, the fed is increasingly being worried about the risk to financial stability. >> right. >> and the fact that volatility's quite low. let's see how they phrase that. but so far, yellen has been saying she doesn't see any bubble and also the fact that regulation should be the first barrier rather than the rate hike, right? but i think we should watch this space. >> trading at all time highs, in particular, earlier this week, we've seen a little more cautious profit taking into the last couple of sessions. what derails us? what do you see globally as risks on the horizon here that could possibly derail the sentiment right now or the rally we see. >> well, let me stress first that sentiment is boosted by central banks. you've seen ecb. you know, you know, strong actions last week. the fed, as i said is going

to -- is going to raise rates at some point. but the rate hike will be very gradual, the ten-year yield, as i said, we'll only move higher and very gradually. so i think that's providing good backdrop for risk. but, still, there are some risks to watch, you know, u.s. growth disappointment could be a worry. and also, what's happening in china, although we think that we don't see any hard lending there and we think, actually, you know, there is room for more policy intervention to support growth there. >> i was going to say. i don't buy it as far as china's concerned. expectations are significantly cautious, a bit more stimulus and we'll all be swinging from the chandeliers. >> we agree with this view. >> economist at standard chartered bank. now quick recap with news out of iraq. kurds now in full control of the

city. we're also hearing iran to combat terrorism violence in iraq. that statement, of course, by rouhani. let's give you a look at today's agenda in the united states. we've got weekly jobless claims by 8:30. also at 8:30, we get may import prices and retail sales which are expected to rise 0.7% and 0.4% when you exclude autos. at 10:00 a.m., april business inventories are out. and look for results for lululemon before the opening bell and we'll be talking about that short live. still to come on the show. live like the locals do. we speak to a textile -- that will keep you clear of tourist traps. we're back in two.

you're watching worldwide exchange. welcome back to "worldwide exchange." these are your headlines. the alstom saga continues. hitachi joins mitsubishi and siemens in a joint bid for the energy assets. taxing times, paribas's c.o.o. is to stand down as there's a probe into sanctions

violations. and the cakickoff is here. brazil prepares to host the world cup, but security fears remain. we've had few things crossing the wire. david cameron has joined an alliance with the antieuro afd party over in germany. really interesting because i interviewed the vice spokesperson last week when i was in brussels, of the afd party and he was believed that angela merkel over in germany was doing her best to try to discredit them that they weren't as extreme a party as perhaps you might think by looking at the noises coming out of this party. interesting conversation as he tries to explain that allegiance. yet more tension between those two, of course. so, yes, we'll continue to watch as mentioned, the conservative alliance in the european parliament accepting the antieuro german afd party.

now, still to come on the show as the world cup kicks off in brazil, we'll be investigating which digital phones are hoping to score a digital win in the tournament.

welcome back to "worldwide exchange." let's give you a look at the u.s. futures as we head towards the start of the u.s. trading session this morning. and we had markets trading at all-time highs. sharply negative in yesterday's trading session. the dow snapping a 5-day win streak. the s&p a few points higher, and for the nasdaq, of course, 3.25 of a point higher right now. retail sales on the agenda in particular in addition to a smattering of earnings. with less than 12 hours to go until the kickoff of the world cup, whether you like it or not, your facebook and twitter feeds will soon be flooded by football-themed posts. all the big brand names including nike or pepsi have launched online campaigns on

social networks to capture all those willing eyeballs. julia boorstin takes a look at the biggest winners and losers. >> the world cup is expected to be the biggest social and media event ever as billions of football fans worldwide turn to twitter, facebook and youtube for information and to talk about the action. the upcoming tournament in brazil is expected to eclipse the 10 billion page views fifa.com generated from 160 million unique visitors during the 2010 world cup. 30 of the 32 soccer teams and more than 300 players are on twitter which is billing itself as the only global viewing party allowing soccer fans to track all 64 matches. twitter says there's been more posts about this tournament than for the entire 2010 world cup in south africa. that means, the pressure is on. during the last world cup, twitter said it feared if brazil scored a goal, the flood of tweets would crash its site. and facebook launched a hub for soccer fans to see posts from friends, players and teams.

there's also a map to track fans' activity from around the world. and world cup advertisers are switching to digital platforms. adidas along with another advertiser, visa, is working with twitter to spread the message. experimenting with a new feature that allows fans to share sponsored videos by typing a certain hashtag. and here in the u.s. where espn has the broadcast rights, bolstering the video options putting live videos online. we'll be watching to see which media platforms score. back over to you. >> one new start-up hoping to score big during the tournament is newly launched website sportchaser, founded by two french women who struggled to find a bar showing football in new york. the responsive site lists venues to watch the big game. each sport chaser listing features ratings on everything from atmosphere to price and even describes the favorite

teams and sports at each bar. the team hoping to launch an app within the next six months and expand the service to other american cities. joining us now from new york, the co-founder and the ceo of sport chaser. thank you so much for joining us. biggest sport event in the world. the world cup. how do you expect that to impact hits on the website? >> well, we're expecting a lot of traffic. our traffic increased dragsicily in the last couple of weeks. it's really getting crazy. we are expecting traffic. >> you're also talking about launching an app. how quickly will you have an app up and expanding to other cities, too? >> well, that's right. we don't have an app yet. the website is built in a responsive design which is a technology that -- in order to have a site that looks great on both mobile and computers, we

are planning to launch an app within six months. >> and what about expanding to europe? i understand having trouble finding a bar that has the european football in the u.s., same problem sometimes in europe, too. any possibility of that. >> that's right. we are planning to expand in the u.s. first. this is our target market. but we'll think about expanding to europe afterwards. but to tell you the truth, it's not our priority right now. >> you also break the stereotype a little bit of women linking liking sports, especially football, which obviously means you have a superior level of knowledge. i just wondered what your thoughts are on how france and how the u.s. perform in the world cup. >> well, i'm a big french soccer fan. so i hope they will do good. i think they can.

not a great success, but this one is full of hope. for the u.s., it's going to be harder since they have a really tough group. with germany, portugal. so i don't have a lot of hope for the united states. but you never know. >> it doesn't matter because the u.s. have got a lot of hope about their success amelie. thank you so much for joining us. founder and ceo of sportchaser. look out for that app. now, do you ever want to live like the locals do? one tech start-up is offering that experience, renting out people's homes, but still rolling out the luxuries of a hotel stay. i like it. louisa is at the founders forum in london and joined by the ceo. tell us more, louisa. >> reporter: no, absolutely. i need to mention for good order measures, as well, there are a whole bunch of test drives here in the background. you might hear a bit of revving up. they're offering that today. the sponsor of this event,

you've got one in the background here, as well. as you say, julia, greg martin is the ceo of one fine stay. a disruptive and intimate way of looking at the alternative of staying at a hotel. tell us about your venture. >> it's a new way where you get the benefits of a five-star, high-end hospitality experience, but in the character setting of someone's home. this is a great alternative to great hotels, much more quality-controlled version of a vacation rental. so owners, it's a way to earn extra money out of town, so everyone wins. we launched here in london in 2010, and launched in several more cities internationally and growing very fast. >> it's an up market experience. so one could argue, maybe, if i had money to spend in the up market sector, anyway, why wouldn't i choose a nice hotel? and also the owners, do they need the money? >> many of the owners who do this find it's a great way to

earn extra income out of town anyway. and we take care of all of the hassle and risk and complexity. i think for guests, you know, there's some guest groups that take family travel, for instance, where the prospect of staying in three adjoining hotel rooms. look, we don't think that we're going to destroy the hotel industry. what we think we're bringing is an alternative and new option in city center accommodation. look, it's a big market, there's room for new entrance and we think, you know, it's clearly a model that's working. we heard quite recently, that a hotel tax or something similar to a hotel tax put on their business in certain cities. do you think something like that is going to happen to you, as well? >> we've taken the view that we're a business in -- we're here for the long-term. we've paid occupancy taxes and sales taxes in every place where we operate right from the first day we opened. we think that's the right way to do business. we also believe that, you know,

that's the right way to make sure the cities benefit as well as the owners of those properties and the guestst who stay in the homes. >> you probably heard that there. someone who wanted to make his point. talk to me a little bit about funding, as well. you have a venture capital background. but interestingly, you didn't go down the v.c. route. >> well, the very beginning, we were able to start the business and get initial cash to support the operation to our first customers and from friends and family. we have subsequently raised capital externally to support the company's growth as we expanded internationally. clearly, you benefit from having that additional fire power. and now we're present in four countries and planning to be present in many more. i think the time is right to push the pedal down to use a metaphor that's apt to the background noise. >> what's really important to remember when you are an entrepreneur? and how is the environment in london for entrepreneurs, as well? >> i think in general, the london community has come together over the last ten

years. it's always a challenge, but it's becoming easier, it's better supported and there is more of an eco system around us. both to bring the u.s. attention. eric schmidt speaking on stage this morning. that's a great way to focus people's minds on what's happening here in the uk. but there are always challenges. making sure the regulatory environment is right, the funding environment is right and crucially making sure that we can hire and retain the right people to build a business. >> greg mosch, the ceo of onefinestay. julia, back to you. >> i was going to ask you if the car comes, too. thanks, louisa. still to come on the show, will lululemon shareholders be sweating after the first quarter earnings? people like options.

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welcome to "worldwide exchange." and these are your headlines from around the world. and then there were three. alstom shares trade higher as hitachi joins mitsubishi and siemens in a joint bid. could ge be pushed out? bnp says the c.o.o. will

step down at the end of june. this as the french bank continues to battle a u.s. probe into sanctions violations. sounds good, amazon could be set to launch its own music streaming operation as soon as today. however, the subscription service won't include most new releases. and the waiting's over as the soccer world cup kicks off in brazil. authorities, though, nervous as intelligence suggests protests could disrupt the opening match. >> 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 the show. let's take a look at how the futures are trading before the open, of course, of the u.s. markets. in a few hour's time. the worst day in three weeks for the dow and s&p yesterday. all-time highs earlier in the week and sharp pullback yesterday. some of the losses were higher,

indicating higher by about 29 points. three points higher for the s&p 500. also, cautious trading session in europe here this morning. i'll give you a quick look at the relatively unchanged ftse 100. the outperformer right now is the french markets up .25% right now. key question, of course, ahead of the retail sales data in the u.s. today in particular. how do you make money in these markets? let's have a look what some of the experts have been saying to us this morning. >> when you tend to see equities and bonds moving in the same direction for the last few years, that's been a monetary stimulus withdraw trade. so i'm really -- i think that the trade actually going on internationally is dollar assets into euros. euros is the new safe haven. >> find reduced positions in

emerging markets. at this point, at least tactically over the next three to six months before you see more value. i think very good run in the sector. >> they end up buying so many german government bonds. it was pretty hard to avoid doing that unless they come up with a clever way. and it's clear they don't want to do it if they can avoid it. but also, they make european equities more attractive. >> now, welcome back to the show. we've actually had lululemon results breaking early. i'll take you through some of the numbers we're seeing right now. full-year, 2014 revenues 1.77 billion to 1.8 billion. giving a guidance right now. the full year the second quarter revenues saying 375 million to 380 million. so guidance there, too. right now for the first quarter,

same-store sales rising 1%. we've got q1 revenues at 384.6 million versus the view of 381 million. so as far as the revenue line, looks slightly better. we've got the q1 eps, the estimate at 32 cents a share right now. i'm just looking to see. still waiting, actually, for the eps to come through. actually, first quarter right now saying eps of 13 cents. but we'll check that right now. so some of the numbers, looks like slightly on the weak side. actually, let's see. okay. so excludeing items, we've got it 34 cents, in fact. so slightly higher, it seems that actually estimated. that was a good revision there thanks to my team there. that wasn't seen. let's get some take on these numbers, joining me from washington, d.c. is adrian tenant. so i don't know whether you caught any of that as we were going through, but looks like as far as the eps is concerned and the revenue numbers, actually a touch better than expected.

>> and that's actually a good thing. but, remember, last year, this time, they had just started the issue. they had relatively easy compares. the plus 1% includes their direct to consumer, as well. the store level comps are still negative. and interesting to see, i haven't seen the press release yet, but what the q2 guidance is for comp if that's out yet. >> yeah, i was looking for that. i can't see it right now. no, not seeing it. we've got revenues, though, as far as the q2 is concerned. 375 million to 380 million, what's your take on that? >> you know, that should be pretty good. you know, to the extent that, again, we are going into the heart of -- they had announced these issues in march of last year and pulled all the product. remember, luon was 17% of their bottoms and the bottoms is a big category for them. they pulled all that product may

going into june so the q-2 compares, as well, should have a lot of this issue on an anniversary basis. so they should be able to anniversary that. >> and actually -- >> change in the strategy comes in the back half. >> right. i'm actually looking, as well. we can see q2 decreasing in the low to mid-single digits according to the company right now. that's the key. >> that's -- that's not going to be good. that, because, again, it includes the strong e-commerce website. shows a sequential deceleration from the prior quarter, certainly in canada and then it's suggested that the u.s. stores may be comping negative store only. >> also approved a share buyback program according to this press release, too. what's your take on that? it's one of the most heavily shorted stocks out there, isn't it? >> yes, 24% short going into the print. my gut tells me that the fundamentals, the fundamental deceleration of the comp will

actually spook investors. but, you know, this stock trades up or down, double digits depending on how people perce e perceive, you know, the numbers. buybacks for a still growing company, that tends not to be the greatest way to generate earnings growth. and i think that people like to see organic margin expansion top line growth coming from growth companies. >> they've also announced the retirement of the cfo, as well, john curry. we've had the founder seemingly undermining his own board. what do you want to hear on the call? what message do you need to see? >> the message i need to see is cohesiveness, moving in the right direction. they are embarking on global growth, coming out of north america, going into europe and into asia. that requires a management team that is entirely on the same page. at this point in time, i just don't see that. i see a new ceo who just came

in. the founder chip wilson who started this proxy battle yesterday. you know, the board, which -- their own press release and now the departure of the ceo. very murky and embarking on a completely new strategy. i think there's quite a bit of l risk here. >> brilliant to have your insight. managing director. now, let's take a look at today's top tech stories. twitter is expecting a shake-up at the executive ranks. the company has reduced the role of c.o.o. who has been tasked with boosting the user growth and products. sluggish growth along with news that he recently sold a large amount of stock is prompting twitter's management about whether they need a c.o.o. trading down around 1%. underperforming the german

market session. amazon is reportedly set to launch its own music streaming service as soon as today. the "new york times" and the new york post say amazon prime customers will be able to get access to thousands of songs without being interrupted by advertising. however, the service won't include most new releases and no content from universal music group, the home of such artists of taylor swift and lady gaga. yes, that takes a little bit of the whoo-hoo out of there. amazon, down .5%, underperforming the german markets right now. still to come on the show, it's flagship game mashi monsters. we speak to app creator right after this. stay with us.

you're watching "worldwide exchange." welcome back to "worldwide exchange," these are your headlines. the alstom saga continues. ge marches on as hitachi joins a joint bid for the energy assets. taxing times, bnp paribas's c.o.o. is to step down as there's a probe into sanctions violations. and the kickoff is here, brazil prepares to host the

world cup, but security fears remain. as he sets his sights on a u.s. open title this week, phil mickelson may have one cloud lifted from over his head. seema mody with all the details. good morning, seema. >> that's right. reports say phil mickelson, the five-time major winner was not involved in insider trader of clorox shares. when carl icahn was attempting a takeover in 2011. among the stocks the fbi and s.e.c. are examining as part of a three-year probe of mickelson and walters. the "new york times" reports icahn and walters remain under investigation and the fbi has told mickelson, it's seeking information from him about walters and has no plans to file criminal charges against him. agents have twice approached mickelson at new jersey's

airport and a golf tournament. they believe icahn may have shared details about his stock bid with walters who later passed the information to mickelson. he has denied any wrong doing and says he's cooperating with the government. icahn and walters insist they've never shared inside information. "the times" reports mickelson is not in the clear over separate trades in the summer of 2012. those trades generated more than $15 million in proceeds for walters and nearly $1 million for mickelson. authorities are reportedly investigating whether a source told walters about the company's plans to spin off the white wave food division in an ipo. dean's foods shares soared 41% on the day after that news was made public. mickelson, by the way, will try to win his first u.s. open golf title this week. he tees off in the first round of the tournament being held at the pinehurst country club in north carolina, this morning at 7:51 a.m. eastern.

big story there, julia. >> thanks so much, seema, have a great day. brazil is celebrating the first day of the world cup tournament by lighting up one of the most recognizable landmarks. the statue was lit with the team colors of all of the teams competing in the competition. across the country, some people took to the streets and beaches to party ahead of the opening game while others stayed away concerned about security worries. urged calm across the country. >> the other accusation that is being leveled at us is that brazil does not want to host the cup. i'm sure this is not true. i see more and more the hospitality of the people towards the teams and how happy the people are with a brazilian team. that's why i'm telling you we have everything we need to make this the cup of cups. >> now, travelers flying into

rio de janeiro may be greeted by delays. ground stops have started industrial action as they seek improved terms for handling the increase in passengers related to the world cup. there is some better news, though, metro workers have agreed to call off their strike. we'll continue to watch that. but still to come, we'll be crossing live to cincinnati to count down till the market opens state side. will market jitters continue into next week as markets turn their attention to the fed. we'll be finding out. stay with us. back in two.

with over 80 million registered users, mashi monster has young minds hooked on the smart device game. but will the mine candy find the same success with the new offering world of warriors?

louisa is at the founders forum in london. do you still have that behind you? yes, you do. >> it is. it's there. it's still there. haven't been for a test drive yet in one of the others. but i need to do that this afternoon when i learn how to drive. but with me the ceo of mind candy and also the creator of mashi monsters, a successful game for kids. many calling it the facebook for kids, essentially, because it's a creative community. >> yes, yeah. it's been an incredible journey the last few years. we started it on the web six years ago and now have about 80 million registered users and children love the creativity, the sharing, connecting. and, yeah, it's been amazing. >> so the typical question when speaking to somebody like yourself who has a very successful game, is it a one-hit wonder? what happens when kids become tired of it and go to the, you know, game next door. >> yes, good questions. so we've tried to build mashi

into a franchise, not just digital, that's the heart. but we've created a movie, music, toys, books, magazines. want to build it into an evergreen, but create new things, as well. we've learned so much. so just the other day we announced "world of warriors," our next big game coming out soon which is going to start on mobile and hopefully expand in many different ways. >> how are you finding the environment at the moment to launch new products? there's a lot of competition. >> there really is. so we started on the web and mobile is a very different beast. it's a lot more competitive, challenging. particularly to create successful kids games, the monetization angle, the privacy issues, a whole host of complicated things to get our head around. but we're getting there and very excited about the new products coming. >> and a little bit more on world of warriors. this is a game for which age groups and -- >> so kids of all ages. so it's a little bit educational. you learn about warriors

throughout history. ninjas, vikings and athletes. collecting these characters, building an army, we think boys are going to love it, but also the teenage brothers, dads, as well, hopefully lots of moms, as well. hopefully for everybody. >> thank you very much. the ceo of mine candy. i'm going to be speaking a little bit later on and we'll be live with "closing bell" with neely coors. meantime, we'll talk to an interesting group. >> i'll be joining you, as well. i'll look forward to that. we'll catch you later. now, we're also hearing reports of an extensive two-truck crash on the george washington bridge. it's on the eastbound upper level. it took place earlier today according to reports. not immediately known what caused the crash right now. but according to the fdny, one person pronounced dead at the

scene. the port authority are currently trying to work to solve the situation. it's causing extensive delays, all the eastbound lanes on the bridge's upper level remain closed right now, but the other lanes are open. we'll continue to keep you abreast of that, but if you're traveling into work using that, expect delays. let's take a look at the u.s. futures right now as we head towards the opening open market. losses yesterday's session despite all-time highs earlier in the week. we do seem to be taking back some of those losses from yesterday's trading session. the dow adding 38 points, gaining momentum here, similar story for the nasdaq, too. let's give you a look at the agenda. weekly jobless claims out at 8:30 a.m. eastern. forecast dropped by 2,000 to a total of 310,000. also, at 8:30, we've got may import prices and retail sales expected to rise 0.7%.

and by 0.4% when you exclude autos at 10:00 a.m., april business inventions are out. and we had lululemon out preannouncing before the opening bell today. now, joining me from cincinnati is matthew mccormick, principal and portfolio manager. what's your take right now? seeing a bit of caution from investors over the last sessions. bit of profit taking it seems. but that ten-year yesterday was interesting, too. despite the pick up in u.s. yields that we've seen. >> it's interesting. i think when you look at the market, you're seeing in some cases, a sense of optimism. seeing anecdotal evidence of economic pick-up. however, i don't see it as strong as many others. i think when you look at the end of fourth quarter of last year, you saw everyone believe there would be stronger economic growth, interest rates would go higher, europe would be very

strong, earnings would be fantastic. that hasn't been proven so. i think when you see a lot of people today saying just because the weather's picked up, you're going to see a 3.5% plus gdp growth. some of these high-flying momentum stocks look at sky high levels. now is the time to be more cautious and prepare for a bit of choppiness in the market. >> some analysts out there saying, actually, the fed next week could surprise as far as the pick-up in the data we see if we look at nonfarm payrolls las vegas week in particular. and perhaps raise some caution about the timing of rate hikes. are you saying, actually, we're going to be surprised on the downside going forward, the growth underperforms expects? >> it could be. i get a little bit cautious when the narrative and many people all on the same train. and i believe when you look at health care costs that are rising, you look at food costs that are rising, you're seeing some modest pick-up in housing,

but not substantial enough to move the needle in my opinion. i think when you look at earnings, i think it behooves investors to be a little more cautious. i want to see economic growth, strong earnings, but when you see some of these sky-high valuations going back to 2007 for non-paying dividend stocks which is higher than third quarter of '07 for some of these names. i get nervous when investors are paying a sky high premium in a narrow niche of the market. what happens if it's wrong? i think we know what will happen is you'll see the "p" go down if the "e's" not there. i love companies with consistent earnings and revenue growth regardless of the economic environment. i think that's where i should be. >> absolutely. it's not just a play on potentially extensive valuations. but perhaps a pick-up in volatility here? >> absolutely. absolutely. i think when you look at what's

going on in iraq or you look at the situations, you know, the ukraine seems to be somewhat off the front burner. i think there's a sense of complacency of many investors that they believe economic growth and earnings growth will be substantially higher than expected. if that's not the case, that pay me more to own them, do well environments like 2011, which was a grinded out situation. i think there's an opportunity here for potentially a correction over the summer, but i think you could see a stronger rally towards year end. and i think, really, the way to play more volatility is dividend paying stocks. and if not, i still participate, at least i get more income and have stronger downside protection. >> makes sense. fantastic to speak to you. matthew mccormick. and that's it for today's show. i'm julia chesley. thank you for watching "worldwide exchange." "squawk box" coming right up. i spent my entire childhood

seeing the world in reverse, and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward?

good morning, and welcome to "squawk box." the gop will hold a vote on june 19th to pick a new house majority leader. unrest in iraq, three cities are already gone, causing major concern for the region's stability and the oil market. and phil mickelson may be getting out of the insider trading rough just in time for the u.s. open. pinehurst, i think, thursday, june 12th, 2014. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc.

i'm becky quick along with joe kernan and andrew ross sorkin. we've been taking a look at oil prices today as joe mentioned. the prices have been rising on worries that violence in iraq could disrupt supplies. wti is well above $105. a day before, they took over iraq's second largest city of mosul. stocks coming off the worst session in three weeks now. the dow closing down by 102 points. we were almost at 17,000, but right now, back at 16,843. the futures this morning after this decline yesterday, do look like they are indicated slightly higher. dow futures up close to fair value, and s&p up by 3 1/2. on the agenda today, a number of major economic releases hitting at 8:30 eastern time. the weekly jobless claims that come every thursday. retail sales and imrt