welcome to "worldwide exchange." i'm julia chatterley. >> and i'm sri. these are your headlines from around the world. >> bank of england minutes identity in the next half an hour could show the first explicit call for a rate hike despite that weekly inflation reading. meanwhile, janet yellen has to contend with the spike higher in cpi. and the iranian president says he will not hesitate to protect religious holy sites in iraq.

gazprom stays and gas supply in europe remains stable despite the sxloeg explosion on the pipeline. and shares in profit of the website rally towards the lower end of its range. the flotation values the company at nearly a billion pounds. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. a warm welcome, again, to "worldwide exchange." let's get straight to our story this morning. security forces claim iraq's largest oil refinery is under attack. sunni mill at that points have launched an offensive involving machine gunfire and mortars. workers have been evacuated from the site. meanwhile, iraqi forces held

back an attack by sunni rebels in the city of baquba last night, a strategic area 37 miles north of baghdad. this comes as president obama rules out an immediate air strike against sunni extremists. he will instead provide intelligence to the iraqi military and seek support from the allies in the region. the iranian president says he is ready to act. now, speaking on iranian tv state television, rouhani said he will not hesitate to protect holy shrines in iraq. he added they're ready to go to iraq for the terrorists in their place. brunt crude is probably the most vulnerable to the geopolitics emanating from the middle east region right now. 113.53 is where we are standing in consolidation around that

level. light crude, wti, the u.s. futures contract, 106.83. now, julia, it's going to be headline driven, very volatile trade for at least the next couple of weeks as the market tries to come to terms with what exactly is going on in iraq. interesting that brent has broken out of the ranges. the most important thing is what happens to the terminals in the south. that is where the majority of production is. that's where the majority of iraqi exports originate from, if they are attacked. what i'm hearing is that we could see a spike, 120, 125, possibly even higher and as that does inventoriate, the saudis could step in, we could see an iea release, as well. >> we heard from bob dudley yesterday saying look, all our operations are in the south and he said we're not concerned. the situation right now is it's

concentrated in the north and the belief of these international companies is that we're not going to see this push to the south of the country where the production is contained. >> well, we do, indeed. the capacity of isis militarily to fight an asymmetric war is really at issue here and if they can move beyond a pure insurgen insurgency. if that is the case, then they are in a position to threaten areas in the south. >> if you look at the one point we made about the fact we're seeing a breakout in brent, one of our guests in the show said $114 in brent really important to watch. we'll be talking about that later in the show. let's get more now about the state of the situation in iraq and the conflict with yusef standing by in dubai. yusef, it seems to me that we

are almost getting some kind of official sanctioning from tehran that they are going to be deploying more forces and they could be a mixture of regular or irregular military forces. what are you hearing? >> we've hear from the political leadership in the past that military support unilaterally were ruled out. but they are still working on supporting nuri al maliki with any measures. there were volunteers ready to lay down their lives to defend holy shrines in iraq. and that goes to undercore the vested interest that the iranian government has in iraq which is not necessarily the same as those from saudi arabia. we heard from the prime minister

nuri al maliki placing the blame for the crisis on saudi arabia saying they are supporting extremists there. we have comments from the saudi foreign minister saying there are signs that iraq is now in a state of civil war. just to pick up on the conversation on the baiji refinery, we're talking operational capacity of roughly 300,000 barrels a day, we have another refinery around baghdad and another one in the south. but the key capacity components of iraq is in the baiji refinery. it's not the first time it's attacked, but it shows the militants are willing to attack key infrastructure which arguably is a bit different than what we saw in the case of libya which was more of a case of h h hijacking. two things to watch out for today, one the president obama on meeting with congressional

leaders to discuss the situation in iraq and the other is a p5 plus one meeting in vienna to talk about the nuclear program in iran. there might be some discussion on the sidelines, but nothing formally on the agenda. >> on the outside looking in, the iraqi government and the military have been in relative disarray. but then we hear if the last 24 hours that the government has five more significant military leaders that maliki himself has met with. is the government perhaps going more on the offensive here? >> that is what it looks like. they are trying to rally everything around the capital of baghdad. but bringing the shia and sunni leaders to the table in baghdad is not enough. you need to bring the leaders from the other provinces, from the control, the dominated provinc provinces, to the kurdish areas, as well. we're not seeing enough

preliminary momentum to argue that there is some sort of break through to a permanent resolution. you mentioned the dismiss rals of four top officials. they failed to, quote, fulfill their professional and military duties. but again, we'll keep you updated on this rapadely evolving story. thank you so much, yusef. there's so many elements to bring into this to try and reach a solution. >> and they've been quite important in this equation, as well. i think the longer term question is whether the kurdish autonomous region can consolidate their power and their territory. setbacks at home and abroad have hurt president obama's political standing and confidence and his leadership. the latest nbc-"wall street journal" poll finds just 41% of americans approve of the president obama's job performance. same percentage approve of his

handling of the economy and 37% on foreign policy. that's the lowest rating off his presidency. the obama administration is very, quote, on a lower confidence rating than george w. bush had post hurricane katrina. in other news, gap flowing from table on a ewe containan pipeline. crimp intended to discredit the ukraine. in the meantime, the kremlin says president putin has discussed a possible cease-fire in the east of ukraine in the country's president poroshenko. poroshenko says it would be discuss a possible cease-fire. gaining in strength, debt and understanding after talks

with premier lee. cameron hailed the partnership between the two countries. >> the figures tell the sorry. bilateral trade at record levels at china up 15% in 2013. they more than doubled in the last five years and at a billion a month, they are growing faster than france's or germany's. the uk is the most popular destination in europe for chinese investors. >> meanwhile, the premier lee chang sounded equally interested. >> the uk has advanced technology that can be married with china's evolved market. together we can create huge energy. >> let's take a look at some of the trade investment deals that were signed. bp signs an agreement worth $12 billion pounds to supply liquified natural gal.

china's minsheng investment corporation will invest 1.5 billion pounds in the uk. and china merchant securities will open its first london office, a premier rmb trading center. authorities blocked a potential tie up of the p-3 which was being planned to help reduce operate costs. shares are trading higher this morning, up just shy of 1% after losing off that announcement. outside west of minister yesterday, sri, what was this trip all about? the premier didn't need to come here to sign all these deals, did he? >> i think he did.

they need to pick up the slack and they're looking further overseas and expanding their regions overseas in order to do so. this is really about investment, it's about bilateral trade, as we happen. but i think what's critical here is that the service sector is going to be very prominent. and you were talking earlier about how london is positioning itself to a degree of success, i might add, being the world main global rmb trading partner. i think the next critical piece of this analysis is china construction backed ecb one of the top major named as the cheering back trade. that will be a big step for forward for london. >> any thoughts on china's move involving this p-3 deal in the sector? because it managed to side swipe deals in the u.s. and europe

despite $64 million of annual sales have done a bit of digging on this in term of mersk revenues in the region. >> i think they're trying to get a bit more creative in terms of how they make these investments. clearly, a lot of them are coming under secretmy because of the national interest concerns. in australia, that's one example. and it really touches a raw near. the real question is how to balance keeping the door open to investment with protecting the national interests and strategic assets. >> because china is good at that. the cash is going outwards and coming inwards. >> with the nationalism, you saw that with canada. >> let's look at some of these

questions. the premier now moves on to greece. we're joined by the minister of greece and joins us on the phone from athens. thank you so much for joining us. can i ask you first about the chinese investments in the port container terminal. that's the investment that has been very successful. yet if you look at other assets, further privatization in greece, it seems to be slower to the point of not happening at all. why the difference? >> first of all, it's a very successful investment. it's an agreement that's expanding constantly. already have agreed to expand by given the western tier of -- the we shall part of peer three and the chinese have agreed to invest more than a quarter of a billion euros. the prime minister of china is coming tomorrow in athens and he has already said that they wish

to make this the number one port in the area. the chinese costco is one of the biggest in this privatization. >> this has been going on for a long time. when will we know if china costco wins the bit to take control? it seems like it's taking a long time. >> it's not taking a long time. the extortion has started in april. in june, we have announced th that -- and now we are making others to start make negotiation with them. by the end of the year, it is going to be fully private iced. >> you said earlier this month that greece will roll out the red carpet for investors in the

13 major ports that are under privatization. has there been a lot of chinese interest for those assets? >> yes. among others. and we are planning to go after the successful privatization of both of the making. we are planning to put forward privatization or matter concessions in other parts, as well, especially dedicated to tourists as cruise chermales or facilities for cruise vessels. >> there is a competitive bidding process involved here. so is it the case that the chinese have the most competitive bid or is it the case of having deeper pockets? i'm just trying to get an idea of what the chinese specifically brings to the table.

>> it's an open process. the chinese have concession. >> one part of the container terminal. but the highest bidder is going to take control of the whole port. >> let's ask you about the decision from chinese regulators to block plans from the p-3 alliance. does it concern you, in particular their ability to veto deals like this? >> no. there isn't any veto power. we are going to expand their investment and undergoing the process of finalizing with their permission and not have any implication of the future, of any state with the concern or other concerns with the european

union is coming up with. >> miltiadis, can you characterize for us the shape of the shipping industry and external demand and the container volume of the major ports in greece? and has it recovered post crisis? well, we don't look at our ports as only imports and exports. they're closer to the east or ports of the european union and with the expansion of the -- that we have expanded only recently, we want to accommodate any traffic that goes in central europe through the ports of greece. this is so simple.

>> thanks, minister varvitotidis minister of greece. coming up on today's "worldwide exchange," facial recognition and 3-d energy. wow, could amazon be about to break new ground in the smartphone market? we'll discuss the build up for the retailer's big unveiling. fast fashion, the plunge for the major international expansion as the retailer released its strong quarterly earnings. find out what they've got up their sleeves. plus, attention collectors, the world's most famous stamp was sold last night for a seven figure sum. stay tuned to find out what all the fuss was about. we've got it licked.

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welcome back to "worldwide exchange." looking at the markets this morning, the gainers slightly outpacing the losers in what's been a pretty choppy session this morning. right now, the stoxx 600 up 0.2% in trading. the focus today, the lack of data is, of course, the bank of england minutes out in around ten minutes time. what is the situation as far as the split on the committee?

let's take a look at the top stocks driving this session in particular. we've got h&m saying it enjoyed a strong second quarter. both sales and profits jumped in the period as it snatched up full market share gaining around 0.8%. h&m wants to expand its online footprint adding up to ten online markets. meanwhile, cellectis is with pfizer. under the agreement, cellectis will receive a payment of $8 million. on the bond markets, the focus is going to be a gain on what we see in the u.s. markets in particular after that stronger than expected cpi reading yesterday. the three-year, in fact, the one to watch, 0.99% yesterday, a three-year high.

lgs seeing the ten-year spike as we head into the meeting, sri. >> we have the press conference by janet yellen just ahead of that. asian stocks are fairley subdued with the exception of asian equities. the financials are risking the index, as well. so we're back above 15k for the nikkei. up 140 points. now, remember we have some housing price numbers earlier on today for the china markets. and they were fairley down speed, keeping the markets on the defensive. shanghai composite down suffering about 11 points lower. 2055. remember the focus is going to remain on the china if a data because at the end of the week on friday, they have the latest reads. the flash estimates from hsbc for the manufacturing pmi from china.

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welcome back to "worldwide exchange." here are your headlines. it's a tough day to be a central banker. bank of england minutes out in just a few moments time could show the first explicit call for a rate hike despite that weak uk inflation meeting. meanwhile, janet yellen has to contend with a surprise hike higher in cpi. meanwhile, the iranian president says he will not hesitate to help protect holy sites in iraq. gazprom says the gas line to europe remains stable despite the explosion of a key premier pipeline. and shares in property website zoopla rally. the flotation values the company

at nearly a billion pounds. >> as we just mentioned, shares of zoopla rallying. they priced the ipo towards the lower end of its range at 220 pounds each valuing the company at over 900 million pounds. the previous range reasons 250 pence per chair. helping fellow property website rightmove higher. up 2%, down shy of 12% on over the last six months. we're awaiting the those crucial bank of england minutes. were looked at the performance of the european ipos. if you split out the uk, downward pressure as far as the performance of the uk relative to the rest of europe. i guess as far as time is concerned, the majority in that february/march time. so you kind of imagine if is the

most buoyant period of the market perhaps on the downside as far as the performance is concerned. >> it is interesting when you contrast what's happening in asia, there has been a lot of pent up demand and a lot of pent up flotations waiting to come out into the markets. and it looks as though they will. there's been a few changes in regulations and the ipo rules and what not. >> what is the expectation going forward? >> there will be a lot in the market and there's a concern. >> a lot of adjusting, they price at the lower end of the original range. is there a real sense out there now and we're understanding that here we go? >> shall we cross there and have a look? >> absolutely. the bank of england showing a vote 9-0 to keep interest rates

understanding changed. after the comments from mark carney we were wondering whether or not martin would this time around vote for a rate hike. but this time, no dissenters, relatively low probability of a 2014 bank rate rise by markets is somewhat surprising, though. that is following the carney lifeline, of course, from last week that did surprise the markets there. they're saying the risk of global might not slow the forecast in the second half of 2014. and the bank of england has suggested and the uk could use up slack faster than forecast. just how quickly will that slack in the cycle be used up? to the upside risk up 0.7% quarter on quarter. they do expect q2 to come in at 0.9%, too. for some, mpc members are saying the policy decision more balanced than in the past. two months than earlier in the year. so that makes sense, again,

based on what carney is saying, indication again but not quite sure right now. let's get straight out to john hardy, fx strategist at saxo bank joining us now from copenhagen. john, what's your take here? no surprise as far as 9-0 in these minutes. i'm finding out about these minutes through you. did i hear you say that they were not expecting a rate move in 2014? >> they were saying they were somewhat surprised by the low probability of a 2014 bank rate rise right now priced into the market. so it kind of follows what mark carney was saying about the fact that we could see a rate hike earlier than the market is pricing right now. >> yeah. i think the market is aggressively, now after carney's recent speech pricing that rate hike towards the 2014 bank of england inflation reports. so perhaps at the november meeting at the latest.

i think that's pretty much priced into the curve. so we have a pretty aggressive market here in terms of what the bank of england is going to do. >> that's the point, isn't it? because these minutes are two weeks behind the curve. the bank has caught up and gone beyond these minutes base odd what cornerny said. >> yeah, i agree with that, as well. perhaps these don't include the newest payroll reports and the drop in the unemployment report. from here, i think we'll be highly dependent on our assessment of what the bank of england is going to do next as much as expecting anything perhaps the august quarterly inflation report. >> is all of this consistent with inflation trading around 170? >> i think the current picture having sterling versus the dollar at 170. but a lot of that will depend on the fomc meeting and what the

market has to say. the market is wondering if yellen is going to have her carney moment where she caves on the market's pressure to say something perhaps the larger than expected taper or something to indicate the fed with disability risks and approve of this ramp up we've had lately. if we don't get that message, i think cable could go even higher if the expectations in the uk buzz side of the equation remain very elevated. however, we get a yellen out sending some kind of signal. we could be in for a correction lower in cable and a bit of a range trade for a while. >> i can't help but feel that yesterday's inflation read is going to color perceptions on the fomc and embolden the hawks. are we going to see a more hawkus tilt to yellen's statements, as well, a press conference? yeah. well, my sort of statement around in this morning is my belief is that we could see some sort of yellen trying to have

her cake and eat it, too. in other words, stressing that the rate path remains very low, nonetheless sending some kind of message that the fed does want to get the drop on this easing of the balance sheet as soon as possible. naturally with 45 million less a month in purchases leads us to believe a 15 million taper would be necessary because it sets up two more meetings to reduce it to zero. the mix is changing on the voting powers. we've got the likes of fisher in the fed, we've got fisher changing things out in the bank of england, too. how is that going to influence policy decisions going forward for both of these banks? >> the power is in the hands, especially in the u.s., the power is in the hands of the doves. so i think one of the interesting things could be if we look at these dot plots so-called of where the fomc

members see the rate further out the curve, and the media let's say 2.25% to 2016. but we know the dovish core is lower than that. even if the media stays somewhat unchanged, we're maybe getting a feeling that they're moving towards the more hawkish end of the spectrum. >> john, i was just going to thank you. you paused for breath. quick line, do you want to finish? >> no. i thought you were about to say we need to go. a similar pattern could be the case in the bank of england. it now appears carney is moving towards the middle and even the hawkish side of the bank of england. >> quite right, too. john, thank you so much. the mpv voting 9 the-0. they're saying they're surprised somewhat by the relatively low probability of the 2014 bank rate rise priced in by markets.

that's what carney said last week. perhaps we have to remember these are two weeks behind what carney said. do expect q3 to come in at 0.9%. and all members agree more economic slack needs to be involved before baseline. >> julia, we got another set of minutes this time from another part of the world. bank of japan reveals a pullback in consumer spending. qe is causing them to fly constraints. monetary policy was kept on hold saying confidence shown in business spending minutes they are on track to reach their 2% inna ig targets, this despite a fall in annual exports for the first time in 15 months and the record 23rd straight month of running a trade deficit. let's get more now from head of japanese equity research of

jpmorgan securities in japan. very disappointing rode on the export and the import side. but if you look at external demand, do we still need a weaker japanese yen? and is the boj going to come to the table to help engineer that? >> look, japan is not about exports. japan is about the domestic economy. and that's really what the bank of japan confirmed. you know, there was a bit of a hit to domestic demand because of the v.a.t., the consumption tax hike. but the economy is now coming back very nicely. and important, it's not just consumer spending, but also business investment that's kicking in as an engine to grow. so here you've got a new japan. this is not exports. this is about domestic demand. >> they also talk about the supply side constraints coming in the form of labor market shortages. but then i look at the latest wage report, what declines 3.1%

and i do worry about this domestic demand recovery story. >> you shouldn't worry about the domestic demand recovery story. wages themselves are slow to respond to the tightness. but here is the exciting fact. japan is the job creation engine of the industrial world. japan creates nonfarm payroll growth of almost 3% right now. so you've got the average pay going up by about 1%, but the number of people receiving that average pay is really moving higher very, very rapidly. that's where mr. and mrs. wontanabe get their depending power. >> when we look at the equities on the market, we're all waiting to see what the government investment fund, the pension fund is going to do with this allocation. if and when they do that, how

much of a game changer, a, is that going to be for the nikkei and the topix and, b, for the japanese yen? >> look, i don't think that you should wait for, you know, any particular institution, whether it's a government pension fund, whether it's a hedge fund or where it's mr. and mrs. wantanabe for them to step up to the plate here. the key question investors have to ask themselves is their value in japan and if there are going to be earnings growth that are going to be bigger than expected. and it's on those two fronts that japan is very, very attractive and it's the right decision for a pension fund to increase allocation to japanese equities because they're very cheap and we are, in my opinion, very likely to see a steady stream of earnings revisions up and that's what's going to drive the market in japan higher. >> and this is going to be a process. at what stage will it be complete? will this transition from 12 to

20 with exposure? >> look, it's interesting. you get the -- you know, you get a transition here and, you know, in terms of increasing risk weighted assets, whether there's real estate or whether there's equity and, you know, again, the point is that japanese market trades at about 13.5 times multiple which is significantly chapter than the united states of america. you've got greater evidence now that the economic recovery is on track. so as a result of that, i think that, you know, when it comes to which equity allocation should you do, it is the japanese equities that county. . >> they want to make the point actually that the bank of japan announced, as well, that they're now the biggest holder of jgbs. effectively, it zaps all the liquidity out of the bond market right now. where is the escape plan here? >> this is where it gets very interesting because you're

absolutely right. the bank of japan has engineered the great rotation, the great rotation with japan's banks, selling their jgb portfolio to the central bank. and, you know, where do we go from here? what happens if and when, you know, the economic recovery actually, you know, gains further credibility. you know, where is the end game plan here? we'll have to discuss this in 2015, 2016. right now, again, the focus is still on getting private institutional investors to commit to more risk assets. that's, you know, the window that we're in right now. >> would you look at the future. thank you so much for your insight. head of japanese equity research at jpmorgan securities japan. we've had some comments or further comments out of iraq. sunni militants apparently controlling now 75% of iraq's buy due refinery. that's an official at the

refinery speaking. we'll continue to bring you further developments. jack lew, the treasury secretary in the u.s. is on his middle east tour. speaking from jerusalem, he's saying the next step for u.s. in iraq is not a military challenge. the u.s. is not focusing on a military challenge right them. we'll keep you abreast of the situation. for now, let's take a quick look at where oil prices are trading right now. trading just above that 113.5 levels pushing higher in the session is light crude, 106.75. we'll talk more in the second half of the show about where oil is headed at this level. we also have spanish auctions this morning. we've got sprinkling just over 1.5 million euros. see if we can find you the bid to cover ratio on that. 2.1. the last auction it was 2, so

slightly better as far as that's concerned. the bid to cover 2.3. as far as the yields are concerned on the three-year abdomen yield of 0.87 and the last auction that was at 96. so it's continuing to make lower .lower yields as far as pricing there shorter term debt is concerned. no complaints from spain right now. >> let's cross over to tokyo. apple is expected to release the iphone and firms are apparently ramping up production. akeeko has the story live from tokyo. >> japan's machinery order for may were up 24% for the year to around $1.2 billion. and shipments to china have

increased seven fold to around $180 million. most of that seems to be boosted demand relating to the upcoming iphone. beneficiaries include major producers of iphone components. however, manufacturers remain cautious since sales of recent apple products have been slower than expected, especially since the release of the iphone 4s. those related to the new apple model are trying to reduce their reliance on the applemaker. sharp is in talks with more than 10 chinese smartphonemakers to supply their panels, as well. and that's all from the nikkei. back to you. >> ma keeko, thank you very much indeed for that. now, the wait is nearly over. jeff baszos will unveil what is

expected to be a smartphone at 11:30 p.m. eastern time. there's a screen that recognizes eye movements and facial features and projects 3d-like images. at&t will be the exclusive carrier. amazon is talking to vodafone in the uk. let's take a look at amazon shares, up just a tad, up by 0.3%. am zn has changed the way we shop, as well. the powerhouse is profiled by david faber in a new cnbc special. amazon rising, which premiers on june 29th at 9:00 p.m. eastern time. still to come on the show, she left a $300 million estate. now some of the most treasured possessions are going up for

sale.

welcome back to "worldwide

exchange." let's take a look at the european equity markets. broadly sharper. the 5100 is in focus as is the table. it's interesting, after the publication of the boe minutes, sterling surrendering the gains we saw after those minutes hit the pace and is now trading the fresh day low. again, the dollar. let's take a look at dollar/yen cross, 102.24, as well. we are standing, again, the currency markets biding their time before they go direction from the fomc. we could see a return of volatility in some of the dollar crosses, especially given that their economic projections are going to be relowsed by the fed and janet yellen will be talking to the press, as well. a quick reminder of where sterling is right now. we did see a brief move, i believe, towards 17 0, but now it has surrendered the post poe

gains. >> that focus yesterday, 264. the three-year moved to three-year highs in trading yesterday's session. that remains the focus. looking at spain, issued a three and five-year euro loans. let's have a quick round of the top corporate news in europe this morning. pfizer signed a new deal to develop a range of cancer drugs. the u.s. giant has agreed to a tie-up to develop new treatments. the deal will see pfizer take a 10% stake in the french company. under the agreement, they will receive funding for research costs and an initial payment. shares are sharply higher on cellectis, significantly higher.

shares of novartis are up. they've recently announced a deal to exit less profitable businesses. swedish fashion retailer h&m says it enjoyed a strong second quarter. it saw both sales and profits jump in the period but it snatched up more market share. h&m says it will expand its online footprint adding up to ten new online markets. they're going to launch a shoe range. how exciting. >> the prices are actually from my perspective. anyway, the french government has upped the ante in the bid for siemens, mitsubishi and ge need to present better offers if they want to strike a deal with alstom. siemens is saying no dice, we're going to stay where we are. but ge is responding. they aren't doing anything with

the cash component. but does it yet give them the edge? >> no. we don't have the details of what ge is up to. we know from a source that ge is negotiating with a french state to improve its original bid. ge says it is not willing to endure a cash bid war. and it's deadline is set for june 23rd. ge still have agreed on the oerms that they value for ge's train signaling unit. so that could be what ge is going to -- the french government including its train signaling unit in the deal. and this is something that the french economy minister asked from the beginning to bring this activity into dealing order to reinforce what will remain from alstom after the deal. that, of course, if ge is selected by the board. on the side of siemens, the company is not manning to include its range from business

in the deal. but, again, this is something that siemens could improve. it could merge its train unit. yesterday at a conference in paris, the ceo of siemens says this could be in the second stage. over to you. >> thanks for that. how about something a little different? have you ever thought about cleaning out your attic and seeing if any of your treasures would be worth something? chances are they won't be anywhere near one hairess's fortune. >> it's a window into the world of old mon. today, christie's will be auctioning off some of the rare and ex sents harris owned by huguette clark. she lefd a $3 million estate and her most valuable trophies like her homes and her major paintings have been already been sold. but this painting could go for more than $3 million. another piece, this louis the

15th mantle clock is expected to fetch more than $100,000. the first edition david copperfield and a "tale of two cities" could fetch mother than $30 thois each. clark was a painter itself. this scene by her entitled "theme from a near window" could be titled at about $30,000. she's not bad painter, but she go be remembered much more as a collector. >> it likes a bit old and crusty and dated. it's something you find at your mother-in-law's house. >> shocking. >> not feeling the vintage vibe? >> i'm a modern man. >> what about this one? >> oh, yeah. >> ago intn acquisition all around. a hobby that was one close to my heart. all over the world, a rare stamp

went up for auction at sotheby's in new york tuesday night. this 1856 british isles 1 cent went for a record $9.5 million sold in just two minutes. the stamp has now set a record each of the four times it's been sold at auction. it was sold by wait and size. you need a jolly good pair of tweezer to pick up that stamp. >> you were a stamp collector? >> i am when i was a jolly young lad. when i was 10 or 11. >> interesting. >> yes. >> the less boring aspect of stamp collecting, i have to say. >> now, back tu. today we want to know what do you love to collect? are you an avid autograph

hunter. maybe you go crazy for baseball cards. join the conversation worldwide@cnbc.com, or @cnbcwex. as the fed nears a decision on raising rates, all new faces at the fomc try to clip yellen's wings. that's in the next hour of "worldwide exchange." stay with us. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post

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welcome to "worldwide exchange." >> soup sunni militant ves taken control of almost all of iraq's refineries. this as the iranian president says he will not hesitate to protect holy sites in iraq. and the bank of england stays unanimous on keeping rates at record lows. >> gazprom stays at gas flow to europe remains stable despite an

explosion on an eu ukrainian pipeline. this comes as vladimir putin and poroshenko discuss a cease-fire in eastern ukraine. and back on capitol hill, gm's ceo mary barra will update lawmakers on gm's ever expanding ignition switch recall. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. well, it's all about the fed investors today. they're not expected to announce any significant policy moves when they wrap up their meeting today. the central bank is likely to continue to taper its bond buying program and may revise its growth and unemployment forecast. the fed watchers will be focusing on the language in the statement also for hints on when rates may increase, how fast they may rise and when the fed

intends to start to shrink its balance sheet. and signaling a fresh round of the hawks versus the doves today as the markets size up. the must major of the fomc. the recent confirmation of sally fisher as vice chair gives janet yellen a key ally. the doves have a majority with two confirmed haushish members. the is out on loretta mester. global head of fx strategy at nomura, how is yellen going to tweak her data today based upon the all important cpi yesterday and the numbers out right now? >> yeah, i have to say i think the cpi data is very important. we've had three months now

upside surprises. and her previous stance has been very relaxed on inflation emphasizing the downside risk to inflation that might need to be tweaked. i think what we are going to be listening very, very careful to is whether there's any change in her tone on inflation, whether she becomes more sa mat rec, acknowledging the upside risk, as well. if that's the case, we can see more of the type of trading patterns we saw yesterday in the bond market. i think that's the potential surprise today that the tone of inflation gets slightly tweaked. and that will be a big deal, not only for the dollar and the u.s. bond market, but also carry range globally. that's very important. in any case, i think that's the key theme to watch in the next few months. >> is there a higher risk now? when you look at the competition of the fomc's voting members of dissenting voices, is there also risk that if they do become more

vocal, they will confuse the markets at a time when the message should be singulairty? >> yeah. i think you -- i think you definitely are on to a very good point. we have a number of different members of the fomc meeting here and we dent know what their specific stance is in terms of their projections, in terms of what they think about the outlook for interest rates going forward. and, therefore, it is something that creates uncertainty about where the dots will be. so that's the key source of uncertainty today and could see higher projections on, for example, interest rates for 2015 from some of those key members coming in. >> and, of course, the essential of the market to be placed squarely on the press conference of janet yetten. she's going to continue to point out, to doubt, that there is

slack still in the labor markets. but as i understand it, and help me out here, the press conference is not necessarily meant to be an expression of her personal review, but an expression of the overall view of the committee. so on that basis, what sort of tone do you think she's going to strike? >> yeah. i think that's a very good point, that she'll have to speak on behalf of the entire committee at this meeting at the press conference specifically. i think there's three things that are going to change since the last time they had a press conference. we've had the unemployment rate coming down meaningfully, we've had inflation indicators drift higher and we've had financial conditions, equity market going up and so forth improve. and all those three things suggest that the outlook is improving. so even if gdp has disappointed in the first quarter, the more forward looking aspect of this analysis should be improving and the key thing to watch is whether she acknowledges that is

strikes a slightly less dovish tone on the back of that. >> whether we like it or not, whether yellen likes it or not, the market is going to focus on that dot chart right now. she's going to lean on market pricing? is she going to say right now rates are priced too low? >> yes. so if you analyze where the market is priced relative to where those infamous dots are placed on the chart, we have a big gap at the moment. so i don't think necessarily they're going to dment on that gap specifically, but they are potentially going to throw in hints that they're getting more confident in their projectons and that will be a signal that the market needs to move closer to where those set dots are. i think that's one of the very important things to watch today. >> thank you for your up sights. who should investors beware the fed moving facilitier than

expected on rate hikes. head to cnbc.com to see what other experts have been telling us about the platest pick up on inflation stateside. plus, make sure to tune into street signs to hear what the fed decides to do on interest rates and economic projections. yellen's second news conference as chair hits off a half an hour later. minutes released from the june boe meeting shows there was a unanimous vote. the mc says they were surprised markets didn't expect a rate move in 2014. but they're echoing what we got from mark carney, a real sense that the markets were there ahead of us.

now let's take a look at today's other stories. the latest nbc "wall street journal" poll finds just 41% of americans approve of the president's job performance, reversing an uptick earlier this spring. that is the lowest confidence rating of his presidency. ouch. >> not good news of the of the midterms. gm's ceo mary barra is back on capitol hill testifying at 10:00 a.m. eastern. she's expected to tell lawmakers

will start compensating ignition switch victims by august 1st. overseeing the compensation fund will have full authority to establish the criteria for eligibility. and barra testified before this committee back in april but was unable to answer many of their questions and promised to return whether gm's investigation was committee. let's take a look at general motors shares, stable around 1.73 right now. walmart will not hesitate to defense holy site necessary iraq as japan takes over the latest on this story.

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welcome back to "worldwide exchang exchange". obama will speak with congress regarding actions in iraq. and the bank of england wrapped up its meeting. and barra is back on the hill. another week and another gm recall and the ceo returns to congress. let's get you a look at how

the markets are faring ahead of the u.s. open. like gains, u.s. markets holding despite the housing inflation surprise indicate ago touch higher for these markets. but it's really negligible. the dow higher by 5 points, at the present negligibly higher and the nasdaq 5 points higher. where is the volatility in these markets? quick check on the european market. holding in the green, the key focus this morning, of course, the bank of england minutes playing catch up on what we got from mark carney as far as surprise on the markets not yet pricing forward or bringing forward the likelihood of a rate hike and we've adjusted from that as it seems now. let's bring you up to speed with one of our top stories today oil refinery is pleased to be falling into the hands of sunni militia. the refinery in northern iraq,

save the militants launched a fed involving machine gunfire and mortars. it supported that 75% of the compound is now under sunni control. foreign workers have been evacuated from the site. meanwhile, iraqi forces held back an attack by sunni rebels in the city of baquba last night. 37 miles north of baghdad. president obama ruled out immediate air strikes against sunni extremists. he will instead provide intelligence to the iraqi military and seek support from allies in the region. the iranian president rouhani has said he is ready to act. he declared that he will not hesitate to protect holy shrines in iraq from attack. he added to that the people of ranl are ready to go to iraq to protect holy sites and, quote, put the terrorists in their place. let's take a look at the benchmark oil prices and see how

they are reactel. brent crude hasn't moved a great deal on the set of headlines out of the region. 113.37 is where we are standing. the counterpart in the u.s., 106.60. let's get more now with yusef who is standing by in dubai. yusef, i want to get some visibility from you, if you could, about the militant push south and how far away isis are from the iraqi capital. can you fill us in? >> from what we know, they are still fighting government forces around baqubah which is about 40 miles away from the outskirts of baghdad. now, the ongoing fighting is happening, as well, in the refinery of baiji. that's still a close call between the two forces. of course, you also have a refinery around baghdad. the food refinery in the south.

but the key contributor to the iraqi oil refining capacity. baiji has been attacked before 37 we're talking about operational capacity of around $300,000 barrels a day. it's no doubt it will not be easy. the iraqi army has capacity in terms of air power and advantages the other do not have. but what we are watching very closely will be the meetings that u.s. president barack obama hassed to with congressional leaders, as well. and the saudi foreign minister saying the situation is looking like an increased civil war. keep in iend, saudi arabia and iraq have had a very tumultuous relationship. you can see how the saudi government is positioning itself in this standoff. they are blaming the iraqi government. the iraqi cabinet issued a

statement blaming the saudis for supporting extremists and the two are not just neighbors, they're some of the largest oil producers in the world. and if you've been to the saudi/iraqi border, that already is separated with a high tech state of the art barrier. so it's not as porous as it used to be. >> yusef, let's get back to the implications here and the attack on the refinery, the country's largest. this underscores how precarious the situation is for oil industry contractors. you have to ask yourself, if they are being evaluated, that is bound to impact the longer term production profile of iraq. >> absolutely. there is a lot at stake, no doubt. the baiji oil refinery was -- for a long time. but that's now increasingly being seen as just one of several targets that the extremists or the isis forces

could target and it is important to them because this could be used as a bargaining chip. this is a refinery that feeds through a significant amount of domestic petroleum fuel usage. so if they do capture that refinery, they could apply pressure to move in a certain political direction. and, of course, it has massive im my cages about the broader stability in iraq. and that will make any long-term major oil investment or commitment very, very difficult. >> great point, yusef. thank you very much for that update. now, still to come on the show, she left a $300 million estate when she passed away. now an eccentric's heiress's prized possession are up for auction. what they can go for, later on in the show.

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you did a great job. it looks good! ...then fuel up with double points or double miles on your next getaway. make every stay more rewarding and feel the hamptonality welcome back. brazil played mexico in the world cup.

brazil came closest to an opening goal in the 26 minutes and then a header was denied by the agility and in the second half came close to scoring on a couple of occasions. brazil became closest to victory but were again denied. . you see the gains and goal. many people favorite, belgium, faced nigeria in their opening game. belgium went behind after 24 minutes. valencia forward, belgium fight back began in the 70th minute with a header from the substitute. now, an 8th minute strike was enough to steal the 2-1 win. for mexico, well organized and for brazil, great work from the goalkeeper. great work from the captain in particular. i feel like intervention and if

any of you picked up for the last 20 minutes, you feel like they earned their point there. >> very impressive, julia. you sound like a seasoned sports commentator. >> i know. i just -- one day of this tournament i'm actually going to pretend i actually know something about football. >> so passionate and animated. >> what is going on today? >> cup holder spain look to get back on track against chile at 21:00 cet. finally, cameroon face croatia in the day's last game. but -- there's always a but, isn't there? concerns are mounting over brazil's maracana stadium.

it's wobbling under the weight of fans. the staircase used by the majority of fans to get to the stadium has been secured. it was moving prior to argentina's match with bosnia. they will hold the world cup final on july 13th. all right. so another spectator sport now. the markets, let's take a look at the u.s. futures and see how they are positioning just ahead of the market open. similar story for the nasdaq, as well. a lot of these markets will be in a holding pattern. no great shape until they get direction from the fomc. back to europe now, the bank of england is signaling that rates could right before the end of the year. minutes released from the june meeting show policymakers voted unanimously to keep rates on hold. but the mpc said they were surprised that the market didn't expect a rate move in 2014.

reinforcing, of course, what mark carney has said. the biggest news perhaps ael anticipating an eight round versus a 9-0 score as far as the news on the concern right now. we heard the call on sterling earlier. what about the minutes particularly with regard to carney? we've long had the view that the bank of england was going the hike rates this year and specifically in november. but the problem from a trading perspective is that that is close to being priced now. so after carney's comments last week, we have a full rate hike already priced. and i think the price action on the back of the minutes that you highlighted shows that that is already embedded and we need additionally strong economic data or hints that we have to

get two hikes by the bank of england this year are very fast paced hikes next year in order to generate new imports for sterling. so we like the sterling trade, but we have to say it is something that is get ago bit crowded and i think the good news the terms of support from rates is in the process of being priced in. >> so as far as you're concerned, as far as sterling is priced in, you want to see more price hikes in 2014? >> i think that will clearly by a catalyst. if they need to do two hikes this year, that will push in that direction. there's the question about okay, the general pace of tightening looking into next year, that's something that could be faster. so far, they've been signaling that that process could be quite slow. so any news on inflation, on growth, that suggests that they would have to revise that would be the next catalyst for sterling to get even stronger. but we've had a lot of good news

for a long period of time. so we don't see a huge amount of near term upside for sterling. we've had a very, very good run. and i think that should start to be a little bit careful here. >> so very quickly anticipate the short? >> i don't think you should go short here, but i think it's time to take some profits on long trades that worked well for the last couple of months. >> now, still to come on the show, will consumers see the wood from the trees? amazon could be gearing up to take on the big boys in the jungle that is the smartphone market later. all the details, coming up on "worldwide exchange." we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device. up to the cloud it goes. back down it comes sounding better. we break down the walls of creation,

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welcome to "worldwide exchange." >> sunni mill at that points are reportedly taking control of almost all of iraq's biggest oil refinery this as the iranal president says he will not hesitate to help protect shia holy site necessary iraq. and bank of england stays unanimous on keeping rates at historic lows. gazprom says gas flow into europe remains stable despite an explosion on its eu ukrainian

pipeline. this comes as vladimir putin and poroshecko discuss a cease-fire on eastern ukraine. and on capitol hill, gm ceo mary barra will testify today on the ever expanding ignition recalls. >> announcer: 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." the futures behind me indicating slightly higher across the board for these major indices. right now, about 5 points to the dow. the s&p 500 relatively unchanged around had 4 points for the nasdaq. managing to eek out three straight sessions of gains. despite housing and a pick up in inflation. quick check on the european markets today. what's really dominating

investors focus right now is what happens with janet yetten this evening. right now, eve seen gains across the european session, 0.4% higher for the xetra dax and the cac 40. slightly lower gains for the ftse mib right now. but how do you position yourself and try and make money in these markets? listen in to what some experts have been telling us today. >> one of the pain trades for the last several months has been the spread between europe in general and treasuries where people traditionally would have expected some tightening in that spread over the last few months. and it hasn't happened. and a lot of that is our attention to divergence in fundamentals, but more importantly, in monetary policy. >> expectation of when the fed rate hike by the fed is going to take place. that will be more forward. it's always been the first move by the fed will probably be in

2015. >> it's not a volume first. so from a -- i think some hedge fund did try to -- happy. the u.s. in particular and very much still on the sidelines. so i'm not sure i would call it crowded. >> the oil refineries believed to be falling into the hands of sunni militia. employees at the refinery in northern iraq see the military launch an offensive involving machine gunfire and mortars. it's supported now 75% of the compound is now under sunni control. foreign workers have been evacuated from the site. meanwhile, iraqi forces held back an attack by sunni rebels in the city of baquba last night, a strategic area 37 miles north of baghdad.

this comes as president obama ruled out immediate air strikes against sunni extremists. he will instead provide intelligence to the iraqi military and seek support from allies in the region. staying in the middle east, the iranian president has said he is ready to act. rouhani declares he will not hesitate to protect holy shrines in iraq from attack. the people of iran are ready to go to iraq to protect the holy sites and, quote, put the terrorists in their place. >> peter joining us from rbc capital markets. peter, the information we got is the violence is in the north and bp operations are in the south and they're not concerned. do you agree with that? >> that's shutly correct from a ghee gravityical point of view. the major producing areas remain in the south. remember, the north is around 10% or less of iraqi production.

9% is in the south. those are not directly affected by this, but obviously with the back drop of this escalating hostilities there's always a concern that once operations, which are not easy in the first place, would become more difficult in the medium term. >> and how significant are the current oil moves? we're approaching now $114 a barrel. from a technical perspective, are we at any important levels here? >> i think we're very, very close. we've been in a trend for the the last 2, 2 1/2 years at narrowing tops and raising support levels and narrowing the volatility on the oil price. a lot of people very comfortable with the forecast around 100, 105, 110. the market is actually saying be comfortable, but it is almost making up that time and from a technical point of view, it will break either upwards or downwards. we nearly got a move out on that on friday. it's still within the range.

but it's a very tight range. and against this background, you would have to say that the propensity for a break upwards is really quite high. >> on that, peter, let me just run this scenario past you. the mill at that points attack successfully assets in the south. they disrupt the oil flows. brent crude going to 120, 125 a barrel. is that going to trigger auction by the saudis in coordination with a release of strategic oil by the iea? >> i think it's likely to if that's the scenario. that is not the scenario that we'll be pointing to. we're not suggesting direct attacks on oil installations. i think what we'll be looking at, in fact, is a move by the market to cover that position by increased forward buying just to secure supplies. that's not a scenario in terms of increase to hostility in the south. but i think a break upwards

above 115 and i think, you know, 120 would be a reasonable target to assume. and on that basis, i think not on the oil market, you've got a lot of institutions who have been underweight in terms of the sector might want to close some of that position, you know, to eliminate some of that risk. >> peter, what are the longer term implications here? because the attack on the baiji refinery underscores quite starkly the risk for oil industry contractors, foreign oil companies that are operating there. nearly they're going to be evacuating their people and that's going to hit iraq's production profile in the longer term. how bad do you think that hit will be? >> well, i actually think we need to be careful about overestimating the short-term impact on iraqi production. this is a -- this 3.3 million barrel wes b 3.2 million barrels is significant.

it's probably wider than the level of availability surface in production as you've mainly in saudi. but i think realistically, this has always been quite hard region to operate. visas have been difficult for quite some time to get ex patriots into the area. so the level of evacuations could be quite minimal because there is very limited international staff working there already. the focus will be on maintaining that production. what i think is likely to be the case is you will get buying on the paper markets. and i think we'll get a lot of action and statements from the iea and in particular from saudi pointing out that they have a million, million and a half barrels in the short-term that they could put into the market to cover any short-term interruptions. >> peter, very useful information. thank you very much, indeed. setbacks from home and abroad have hurt president obama's political standing and

public confidence in his leadership. the latest nbc "wall street journal" poll finds just 41% of americans approve of the president's performance. reversing an uptick this spring. the approval of his handling of the economy and 37% on foreign policy. that is the lowest rating of his presidency. and only half say the obama administration is, quote, very or quote somewhat confident. at the lower confidence rating than president george w. bush had post hurricane katrina. gazprom says that the gas flows to europe are stable despite the explosion on a ukrainian pipeline. ukraine has said the blast is being treated as a possible act of terrorism intended to discredit ukraine as a reliable supplier. meanwhile, the kremlin says president putin has discussed a possible cease-fire in the east of ukraine. the conversation was held late last night.

poroshenk opens office says the two discussed a series of measures that will be essential for a cease-fire to tapes. the chinese premy li is going to head to london later today. he says it will take until the middle of this century to become to a medium to high growth rate, this year expecting a growth rate of 7.5% on cpi at 13.5%. not good news if you're looking for significant stimulus in china. cease saying, look, we're not going to see that but will rely on targeted measures this year and next. coming up, we'll find out what amazon has up their sleeve.

will it be a boom or a bust? we'll find out.

obama prepares to meet congressional lee hers to discuss iraq. investors rate yellen's

comments as the fed meeting wraps up. meanwhile, the bank of england looks at a rate hike. meanwhile, another week, another gm recall as the ceo returns to congress. the week is almost over. amazon is expected to take the wraps off a new mystery product widely pektd to be a smartphone later today. jackie visits cnbc hq with all the details. jackie, good morning. >> good morning to you, julia. the mystery will be released later today when the amazon ceo is expected to reveil an tempt later today. the device could be an attempt by amazon to exert influence over the way users shop online. it got its start from selling

books and that's expanded to tv show wes and groceries. earlier, amazon posted this invite on its website inviting the media and public to today's event. it included a video of actors holding something in their hands offscreen. the smartphone has a screen that can display 3d like images. can track a user's eye movements. analysts expect the prime membership program will be tied to the phone. "the wall street journal" reported on tuesday that at&t will be the exclusive u.s. carrier for the phone. the financial sometimes says amazon is in talk wes vodafone in the uk, as well. vodafone has a relationship with the company selling data plans for the kindle. it's unclear whether amazon's phone can stand out in a crowded field dominated by apple and samsung. we are all addicted to our iphones. but comscore says 730% of the

u.s. consumers own a smartphone and this becomes how people view and buy their products online. comscore says mobile commerce grew twice as fast in the first quarter and amazon may have more opportunities outside the u.s. victor and thonny says only 30% of the estimated $5.2 billion phones on the global market are smartphones. so this would be the third new product that amazon has launched this year after the tv streaming video device and dash grocery. the ordering wand. it is expected that amazon will sell the smartphone at coast in hopes of spurring purchases of content from its website. checking on shares of amazon today, we are seeing -- let's see where the amazon shares are. they're up about 0.2%, $241.95 in germany. back to you. >> thanks, jackie. have a great day. moving on, the gm ceo mary barra is back on capitol hill

today testifying before the house energy and commerce committee at 10:00 a.m. eastern. she's expected to tell lawmakers that gm will start compensating ignition switch victims by august the 1st. phil lebeau has more on the story and joins us now on the line from washington. phil, compensation, to me, just smacks the short permanent. it doesn't seem to be good enough. is there a long-term plan at gm to really ensure this doesn't happen again? >> well, general motors says there's a long-term plan in place. we really will snow know likely for four or five years if we see the rate of recall slowdown. you can look back and say, yes, clearly there was a line drawn in the sand in early 2014 and since then general motors has been proactive in catching problems early so you don't have massive recalls. more importantly, you don't have recalls of potential defective products that have deadly

consequences. so that is the way we'll know. in three or four years whether or not what general motors has been doing actually is effective or not. when mary barura going on capitol hill today, this is a return. remember, she was here 11 weeks ago. that appearance did not go well. she was pretty much grilled by lawmakers who said you've done nothing, you haven't given us information information. she now can say, look, we've done an internal investigation. we've announced the results of that investigation last week and when they announced those results -- or two weeks ago. they made it very clear that exactly what went wrong and here is what we plan to change that in the future. they have a number of measures that they put in place and she's going to lay that out for congressional leaders. i will be curious to see whether or not she is going to get criticized as vehemently as she was the last time because to a certain extent, she can say to lawmakers, yes, things went

wrong, here is where they went wrong, here is what we're going to do to change it from here on out and here is what we're going to do to compensate those victims once that program is in place by august 1st. >> phil, thank you very much for that, phil lebeau. elon musk top these year's cnbc disrupter 50 list. appearing on closest bell, what is the toughest to achieve, a car that costs less than $5,000 or a manned expedition to mars? >> i'm hopeful that the first people can be taken to mars in 10 to 12 years. i think it's certainly possible for that to occur. and then -- but the thing that really matters in the long-term is to have a self-sustaining city on mars, to make like multi planetary. and that will define a fundamental bifurcation of the

future of human civilization. we'll either be a multi planet species or a single planet species. >> he's so young. >> oh says he feels good about producing a mass market electric car in about three years. if anyone can, he can. >> indeed. and one of my favorite stories, stamp collectors all over the world are as busy today as one of the ratest stamps went up for auction in sotheby's in new york last night. this 1856 british 1 cent magenta sold for a record $9.5 million in just two minutes to an anonymous bidder. now then, we want to know what do you love to collect?

josh got in touch to say he collect too much including, he's a horder, clun including bobble heads, license plates and historic bricks to name a few. wow, a new one on me. kenny says he collects coins, especially nelson mandela coins. if you want to join the conversation here on "worldwide exchange," worldwide@cnbc.com, @cnbcwex or directly to us. still to come, hawks versus doves, the decision on raising rates. will new faces at the fomc try to clip yellen's wings? we'll continue right after this. we needed 30 new hires for our call center.

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the central bank will likely continue tapering its bond buying program and may revise its growth and unemployment forecast. morris global investment strategist at tia crease asset management joins us from chicago now. daniel, what are you expecting from janet yellen today? >> well, i think what we want to look for is essentially don't scare the horses. i think one thing that's been good about the evolution of monetary policy over the last year is surprises. i think that's really what the market needs, it's what the market likes. it does explain at least part of the relatively low volatility that we've had recently. i think that's the thing we would like to see. no change in tapering. no big change in expectations for interest rate increases. >> and how much is out there about the cpi readings right now, two months on target? >> yeah, well, i think that's

the thing that people should have in the back of their minds. given that we had already seen the bank of england race the idea about a sooner increase in rates than expected. there's always a chance that that could happen in the u.s. what it means is we don't need to worry in the longer term about an increase in inflation rates, but the what the fed would have to do to make sure that doesn't happen. >> short-term equities, did the fed means that we could see a move in the s&p 500 towards 2000? is it going to help or hinder it? >> well, we think if you look at the broad environment, and this again goes back to the low volatility that we've seen, despite everything that's going on, it's still a relatively good environment for equities. we've seen that steady gains. and even if we do give a slight

increase in interest rates, that shouldn't be much in equities. accelerating economic growth in the u.s., a bit slower, but still accelerating in europe. lower inflation. we should expect to see mottest gains moving towards 2000 relative coming with that outlook. >> good to talk to you, daniel. now, tune into street finds the latest to be the first to hear what the fed decides to do on economic projections. that discussion due out at 2:00 p.m. eastern. yellen's conference kicks off just a half hour later. let's give you a quick look at how the futures as to hoe the futures are trading. that's it. i'm julia chatterley. >> and i'm sri. thanks for watching "worldwide exchange." >> "squawk box" is coming right up.

good morning and welcome to "squawk box." militants in iraq attack the iraq largest refinery. the fed's next move, what will the central bank tell the markets will b the state of the economy? dovish statement or more hawkish? i think the former. and we will see that statement at 2:00 p.m. eastern. and amazon is about to launch a new product. but does the world need another smartphone? it's wednesday, june 18th, 2014. "squawk box" begins right now.

good morning. i'm andrew ross sorkin along with joe kernen. becky quick is not here today. she will be back tomorrow. the fed is planning to wrap up that two-day meeting this afternoon. we're going to get a policy decision set for 2:00 p.m. eastern time. janet yell legion hold a news conference 30 minutes later. no change is policy is expected, of course, the economists is going to pay a lot of attention to it. also, in washington today, mary barra is going to work back to capitol hill. gm had issued now 44 recalls this year totalling about 20 million vehicles worldwide. that's more than the total annual u.s. vehicle sales.