welcome to "worldwide exchange." i'm karen khoi. these are your headlines from around the world. the guaranteed savings following iran on two banks. getting close to a deal. bp shares have a record $8.9 billion settlement with authorities. they are expected to hold a press conference later today. and phillips flags a potential sell-off after they

reorganize their business. they say a sale could be in the cards. well, the gsk scandal is rocked by a tape that could potentially rock the investigation. >> you're watching "worldwide exchange." bringing you business news from around the globe. >> good morning. thank you for joining us. let me tell you what is coming up. the latest u.k. calendar is going to be released in the next 30 minutes. we'll check on the real estate sector with the ceo of a company there. china's lenders came out on top and who is in the number one

spot? you may have been part of a social experiment and not known it. facebook has manipulated some users' emotions in a social experiment. and argentina faces a crucial debt payment today. a u.s. judge ordered for them to pay $1.5 billion to creditors. we'll look at that and the emerging market space in the second half of the program. don't panic. that was the message from bulgaria's president who promised savings in the country's banks following the sale of two banks. they also say they were fully guaranteed by the state. the first investment part was part of the deliberate attempt to stabilize the bulgarian banking system. the prime minister announced his cabinet would resign.

in the last few minutes, the eu approved a $2.2 million credit for bulgaria. we have to talk about the banking sector. this continues to affect the european markets. what do you make of it? >> it does seem like this is a political story rather than a financial crisis story. i understand there are a few arrests of people who are targeting banks deliberately. the eu is trying to help out potentially smaller weaker members of the community with bank lines in times of stress. it may be that we look back in a week's time and say that was a difficult period for bulgaria but was not related to the previous financial crisis. >> you don't see a systemic risk

from this because a lot of times it seems like it won't have massive ramifications and can trigger for a change in sentiment. does bulgaria have that ability? >> well, first of all, there's a change in sentiment going on anyway. if you look at the most dramatic moves of the last week, the eu was clearly the widening of cvs among a large cap of banks across europe. and that is something the banks have started to pick up on, which is difficult to differentiate from specific events in bulgaria. but bulgaria does show us the political situation and the financial situation remain absolutely intertwined. any difficulties on either side will have ramifications for the other. it reminds us that they are fragile in terms of the banking system. and it shows us the biggest

point of weakness in the economy are the banking system. when you have political opponents, terrorist opponents or cyber opponents, the banking system is the new front in potential wars and battles. >> simon, you're going to stay with us after the probes have been conducted across the european banks. bnp paribas has approved a settlement for $8.5 billion in u.s. sanctions over the weekend. let's go to annetta outside of paris, we have been talking about the fines coming down from the original $10 billion. but what do we know now? >> reporter: well, it's still a lot of speculation. initially we don't know anything, but there are more and more rumors as the bank cuts the dividend for one or two years. and they will sell a

multibillion bond as soon as next week in order to pay for that $8.9 billion u.s. dollar fine because that fine is actually a huge amount of money also for bnp paribas, which is the second largest bank by assets. that's actually almost the amount of money they are now due to pay to the u.s. authorities. so it's a lot of money on the table for bnp paribas. looking at what it means for the cabinet position, they actually had quite a solid cabinet position or still have it, i should say, but with the fine, that capital ratio is expected to drop below 10%. and that at a very unfortunate timing ahead of the stress test in europe. back to you. >> i want to pick up with simon on this topic, the significance

of a guilty plea, prosecutors love it but does it mean anything for the shareholders? >> well, it does, because eventually you're going to wipe out one year's net profit with the fine paint of the u.s. authorities. it looks like any suspension of activities in the dollar clearing market will be targeted, so not necessarily threatening the bnp franchise in the states, which of critical importance, but also delayed until 2015 giving the bank time to clear alternative markets for the clients. but as the point was just made, you're a weakening capital when the capital strength is the key thing people are focused upon. and that may limit the speed to which the shares recover. >> there was a lot of fight over what the actual numbers should be and there's intervention by the french government to try to pull this fee down from a $10 billion figure that was touted about. do you think that's why we are talking about the $8.9 billion

fee? because the french government may have had some sway here. >> i don't think so. if the french government were really having an impact it would be behind the scenes and you wouldn't hear about it. the fact it had to go public and come out and say, look, this is outrageous, shows that the efforts to change the things behind the scenes are failed. i think the comments are interesting, he says that's a large fine but we want the ability to find foreign banks misbehaving in the eu. if we caught them breaking eu law, yes, the french have argued that what bnp did was not in line with european laws, it's a specific u.s. case, but this the end the eu will say we want to control our importers and therefore we have to give in on this one. >> you've eluded to some weakness potentially around the share price of bnp paribas, but you say there's balance fees so

it will not affect the u.s. strategies. you say one to two years it could be in your own word the market but it should go upon the business as usual. so the reduction in the gains will purely be on the dividend side because of it? >> what i said is the pace of the recovery of the pnb shares could be impacted. what we have seen is a stock that has given back all the gapes in the sector over the last year. it has started to make its appearance in the month of june. it looks like the equity market says, we'll put this thing behind and critically ignore the fine. it is slightly positive in contrast with the rest of the banking sector across europe where it is negative. we are going to face a bigger issue very soon. what is happening to credit costs across the sector? we have a lot of peripheral

banks that have led in terms of share price. bnp has not followed that. it's typically in the larger safe bank camp and it could benefit from a swing back from riskier, smaller banks to bigger banks in investors' minds over the course of the summer. >> simon, thank you for staying with us, much appreciated. head of research at otas technologies. the latest in the bribery scandal is a sex tape. the company confirms the recording of the intimate nature between the former china head and his chinese girlfriend. katherine boil is onset to tell us more. katherine, this is a secret recording that the boss did not know about, so where has that left gsm in terms of the china relations? >> well, there's a lot of questions to be asked here under the board, karen. because what we are seeing from this is that the gsk board was made aware of the allegations as early of january of 2013 and

they underwent an internal investigation which didn't show there was a case to answer, so there was obviously subsequent footage to show from the chinese authorities that there was something. while it is admirable for the board to continue to support him, there could be questions there, why did you continue to support him when the evidence that he had compromised himself and his personal security was compromised and that potentially he was in line with corruption at gsk operations, why did you continue to offer that support? >> looking at the story for me today, it seems to be a fear factor for executives doing business in china now if this level of harassment is going to be conducted in the mainland. surely this means level of compensation for people going to the likes of china, the way companies themselves perceive the risk around doing business

in china must start to change. >> absolutely. if you think how much your legal budget, for example, is going to potentially have to change if you think you may be vulnerable to something like this. of course, the really important thing is to make sure your executives are not vulnerable to the kind of pressure which leads to these allegations of corruption and also that they know the company's operations on the grind well enough to watch out for those. but yes, those definitely are going to be a certain level of fear factor if you are an executive or high-ranking executive operating in the markets particularly in the pharmaceutical industry because of this. >> the chinese nationals who work with foreign companies are often targeted by the foreign executives are not immune now either from the same level of intervention from the state. >> absolutely. in this case it is very much that the chinese nationals are the whistleblowers in this case. >> katherine, thank you. we'll talk later in the program.

also coming up, philips merges two key latin units into one standard entity. is the spinoff in the cards? we'll tell you that, nextment. and if i tap my geico app here i can pay my bill. tap it here, digital insurance id card. and tap it here, boom, roadside assistance. on'tday ooklay, it's axwellmay. the igpay? otallytay. take an icturepay! onephay, onephay! really, pig latin? [ male announcer ] geico. anywhere, anytime. just an aptay away on the geico appay. 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;

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the european markets have been positive starting out the week as we finish out the first half of this year on the 30th of june, but so far the ftse market is in the green. the stoxx is coming off highs after the fifth hour of trade. after looking at the other major indices, the dax is up a third of a percent now. still positive. the ftse and cac in france are slightly up. and on friday, it's about the coal market today where the stronger growth is. we'll move on to a couple of the big stocks, these are the corporate ones we are watching this morning. investors energized with the wind turbine for investors. the company announced two key u.s. orders. the tock is one of the biggest in europe after the company said

on friday it received two firm and unconditional orders for turbines in north dakota, north america and kansas. meantime, philips shares are on the rise as the company confirmed to merge the led components in the lighting division into a stand-alone subsidiary. philips is looking for third-party developers to contribute which could be spunoff. and meantime, the british airline easyjet is trading after a bank of merrill lynch is neutral up 4.5% on the trade. meantime on the bond markets, we'll see how we are shaking out across the charts. a little mixed. don't forget we have a data heavy week with janet yellen talking on wednesday taking questions. there's a policy meeting on thursday after we if heard the far-reaching package of initiatives at the last meeting so investors are mindful of

these meetings across the market. we'll have a read on the jobs front on friday this week, so we'll be looking for a bit of this across the curve starting out at 2.5% on the ten-year treasuries and near 1% on the foreign bonds. the dollar has been put under pressure. and this morning that remains the case to the crosses of the euro as it continues to rise. the japanese yen is strong to the u.s. dollar, 101.37 is what we have. and the audi is struggling to push past the 94 handle. meantime, we'll go to asia to see how the latest is playing out with sri, you safely made it back to singapore. >> i did. thank you for looking after me, karen. with the proprietary surveys,

you mentioned the data heavy week despite the july fourth holiday on friday. let me tell you, a lot of people are talking about the data and the tail risk that is will define the mood in a lot of the asset classes. we'll start with oil. the bears seem to be in control this week looking to further decline in the brent benchmark. and they are predicating that in the fact of no immediate fact to the strategically important oil-producing fields in the south of the country. let's move on to take a look at gold. the bulls have the edge there believing that the headlines coming out of iraq are going to really generate a further bid for safety. it will go into gold. lit go into treasuries. and also they are talking about the threat of further sanctions, level three sanctions against russia. in terms of the payrolls, the gold bulls are hoping that the payrolls number will underwell

to feed further for safety for the gold. as for the dollar, the bulls have the edge at 41%. only just, they are betting that the u.s. data is going to be better this week. payrolls, of course, they are watching that one and also watching the feds favored gauge of inflation. a lot of the dollar bulls including ubs say the market and the fed is underestimating the price pressures that are building in the system. very quickly for the asian markets, interesting day for the nikkei ending in positive territory for the month and quarter. industrial production numbers were fairly resilient to the sales tax hike. the real test, i think, will come tomorrow with the bank of japan's tin can survey off the business confidence and sentiment. so we'll get an idea, karen, tomorrow, how japan, inc has

weathering this. >> thank you, see you tomorrow, sri. toshiba and gof suez in a deal for europe's biggest nuclear energy project. >> various members of the japanese government are involved in this and the problem with the government is they realize the uk has to be involved in the nugen deal, but 60% of them are against this type of event. the problem is a lot of the benefits are wiped out by the deficits on the trade including

the huge imports from gas and so on. if we get exports out of the state in a meaningful way, that can dampen the excess costs. in terms of europe as well, germany has a similar kind of public opinion to what we are seeing over in japan as well. and they are pretty much against a nuclear future. the whole part of their energy strategy by 2035, 80% of the german energy coming from green initiatives. now we look at the united ki kingdom as well. they have a problem with sustainability and keeping the costs down for the consumer. on the cost front, nuclear is expensive, as are turbines at the moment with solar, but we need every single part of our energy mix because the uk has a big of a problem on the nuclear. at the moment we have 10 or 11 gigiwatts of energy. the problem is, by 2023 pretty much all of them but one are going to be decommissioned.

so these are important for the future of the u.k. and the energy mix. we are down to around 16% to 18%. it will take enormous investment. the problem is we are locking in a high price for the consumer. the nuclear facilities want guaranteed prices at a high level as well, and that's a problem for the price of electricity going forward. >> just quickly what springs to me is on the fracking side because it feels like the u.s. is being left mind, there's a lot of concern over -- >> i would say europe is in that front as well. >> but particularly in the u.k. we have tight communities and not a lot of room for fracking which doesn't leave with us the option of -- >> in the bruling case in point in this hypocrisy, i'm in favor of fracking. where that they found the fraccing in the united kingdom? where do i live? i live to bring this to the

forward, so we are talking about fraccing in the united kingdom as well. >> well, at least we had a disclaimer there. thank you very much for joining us. meantime, markets are out of touch with reality is the warning from the bank of international settlement which says an ultra low interest rate has lone policymakers entering into a false sense of security. there's a puzzling disconnect between the market's optimism and underlying developments. it's urging central banks to begin to normalize rates. barclays is warning after a respectable start to the year the environment emerging market for investors could become more challenging in the second half. let's go out to krischristian keller, why do you think the second half is more difficult? >> well, i think we are facing opposing forces here. on the one hand as you pointed

to earlier, we are most likely going to see improve dad a out of the u.s., some of it this week in terms of labor market and inflation that will likely lead to a higher and also flatter u.s. yield curve that puts probably the dollar stronger and will also put some pressure on the carriage rates, which is one of the drivers for ems's. but we'll likely see growth in the second half. our forecast for china is to have sequential growth over 8% in the second half. and if you put this together, you have pressure from a stronger dollar and less carry, but at the same time you have improved growth. and that should probably lift sentiment in particular for volume equity. >> if we talk about bonds for a moment, i was talking to the ex-treasury of brazil last week and his argument is on the monday side that investors are buying high-grade corporates and the likes of brazil at fairly

similar yields to some of the lower grade corporates that have been in the underdeveloped markets, so it is perceived as a safer bid. isn't there a solid argument there if you step away from the macro issues that on the bond side the investors are getting more bang for their buck? >> well, this is something that we have been pointing out as well in terms of evaluations. if you look how much this is compressed in the core markets, it became suddenly apparent to investors a few months ago that em in large areas were relatively cheap. and particularly in brazil, you could argue if you look at interest rates, real interest rates in brazil have created this little buffer in a way to higher yields in the u.s. >> the argentina call surprises me in the country, one with negative ramifications across the bond sector?

>> i think argentina has to take into account the ongoing development and things the last few days have changed in various directions. we are still hopeful argentina will use a 30-day grace period in a way to find a compromised solution. but on venezuela, we are overweight and think this is an environment despite the recent coming back of oil a bit where risks to the oil price are to the up side. in a country like venezuela, they should benefit from that. >> can you explain on turkey in the last ten seconds? >> they are short of the turkish lira against the russian currency. they have cut rates twice already since the emerging market improved, but we still have a lot of political uncertainty. back to oil, we have a country very exposed to high oil price while russia and venezuela and

other countries will benefit from the high oil price. so turkey is looking vulnerable on several accounts for us in the second half. >> appreciate the call in the second half as we look to close on the first six months. thank you so much, christian keller, at barclays. still to come, the mortgage approvals are expected to fall in the coming quarter, but will this pan out in the numbers for the u.k.? stay tuned for the data.

you're watching "worldwide exchange." bringing you business news from around the globe. the eu approves a $1 president 7 billion credit line to bulgaria to help ease the financial system. also, a guaranteed savings following iran on two banks. getting close to a deal, bnp shares edge higher as the bank agrees in a record $8.9 billion settlement with u.s. authorities. they are expected to hold a press conference later today. philips talking about a potential spinoff as they reorganize their business. they are looking to merge two entities saying a sale could be in the cards. and a scandal is in the cards with a sex tape involving one of china's top executives as

the company looks into the investme investment. some weaker numbers here in the u.k. falling to the lowest levels since june last year. the number of approved loans is down to 61,707 versus april reading of 62,806. we have more numbers coming through here, plus 4 billion sterling in april plus the number from may. minus 1% there, the biggest fall since december 2012.

i want to round this out for you on loans to non-financial businesses, this is plus 3.4 billion pounds versus the negative numbers reported for april at minus 2.4 billion. so those show you where some of the money is going in the economy. joining me is the u.k. ceo at gll, this is consistent with what a will of commentators are saying with the housing market starting to cool just as we are getting fresh macro policies from the bank of england. >> i think this tells us a few things. firstly, it depends where you are and also there are more stringent checks on mortgages and lending. lenders are worried about the size of the lope and quite rightly they have learned lessons from the last session. and putting in slightly more stringent checks. so for those people with mortgages, we have to take into account what's going to happen to interest rates in the future. >> we had some fresh caps on the

market with lone income ratios limited at 15% of the total that the lenders can afford in the u.k. to assure that interest rates go below 3% so people can pay the mortgages, but a lot of the criticism has been in the real estate market in london has been cashed by the international investors. so the loans do nothing or the caps do nothing to ease the market. do you think that's true? >> no, i don't think that's true, actually. it is withstanding some of the heat because there are the checks in place. that's definitely a good thing. in terms of international buyers and the london market, they still only comprise probably a maximum 15% of new property, so there's still a small portion of the market. and what's important about the national interest is buying off

plan, developers need purchases to buy off plan in order to get the lending in the first place and in order to do the developments. and the reason that we've got such a heated market in london is because it's massively under supply. we are only developing about 20% new homes a year. we need 5,000. every year that continues, we'll see widening in the gap. >> jll has been a name-changer for your company. you see a lot on the pricing side and there's a theory that prices have really slowed an average of 4.9% now being reported in data in london versus 11.3% from last year. do you think there's a slowdown on the pricing side? >> i don't think the large peak of growth that we saw last year is sustainable, actually. even in london. so it was an unusual year.

i mean, still to see that sort of growth on the annual basis is good. a lot of places would die for that sort of growth. however, yeah, we do see it degrade not being in double-digit figures. and that's a good thing for the long term, but people are investing in london because it's pretty robust of a place to invest. they are not necessarily looking for short-term growth. there's a great place to put your money. and because of the shortage in housing, a lot of people are buying to lease out. they are buying to invest for purposes whether it is international or domestic purchases. >> it's a message to foreign buyers out there watching this program today, what's the best investment opportunity you see in london right now? >> well, that's interesting because it is so dynamic. there are all sorts of different aspects of the london market. a lot of reports have been on the bridge of mayfair, but quite frankly the new areas are the

most opportunistic. london is spreading and buyers are getting a lot more specific about what they want. so there are still people who make mistakes because the buyers are doing they research. >> appreciate the time today. thank you so much for joining us today. guy granger, ceo at jll. a quick check on the yo european markets this morning. similar to last check, you can see the cac now in negative territory and the ftse in italy also going south sliding a bit. so we are giving up the positive gains. on the bond markets, very diverse levels over the last few days and still there. the u.s. treasuries 1.25%. and the 3% mark on italy, no change there. the foreign exchange market is

showing the dollar on the back foot. and the numbers are flatlining through. there's been a lot of strength in the trades, which is difficult to extract namely on the sterling and the australian dollar. the particular trades look softer in the morning session today. to our top stories, don't panic is the message from bulgaria's president who promised savings in the company's banks are safe following a run on two major banks. he also insisted savings would be fully guaranteed by the state. the central bank runs on corporate commercial bank and first investment bank as part of the attempt to destabilize the banking system. the crisis coincides with political uncertainty in the country with the prime minister announcing his cabinet would resign. meanwhile, the eu has approved a 2.3 billion credit line to bulgaria. the european commission says the money will help to assure liquidity in the banking system.

elsewhere, the board of paribas approved a settlement of $8.9 billion for u.s. sanctions. the decision was made in a meeting over the weekend. the u.s. department of justice is expected to hold a press conference later today. shares today have been trading in positive territory up .10%. japan's factory output rose half a percentage point in may from the previous month showing a recovery from the sharp drop that marked april's numbers following the tax hike. makiko is here to talk us through the numbers because they have been very patchy numbers over the past few weeks. >> it has. and among 15 industries surveyed, 8 reported increased output. and cars and auto parts were up 1.9% on overseas strong demand. and the production is lifting tech tiles 1.9%.

llcds and other smartphone components are climbing as the chinese manufacturers continue to rise. also domestic demand for machine tools were recovering and industry groups are hoping government subsidies will help prop small and mid-sized firms to increase capital spending. since factory output plunged 2.5% in april after the cop summer tax hike came into respect, the may figures could return to normal standards adding the output trends remain flat. a survey of large sized firms outcast 4.7% for the month of june and rise again to 1.5% for july. meanwhile, the japanese prime minister abe said today in the fastball times he's absolutely committed to his growth strategy or third arrow. that includes lowering corporate tax and strengthening corporate governments. and eventually that will overcome japan's economic demons. that's all from here, back to you. staying in the region, a

fresh survey shows half the japanese voters oppose change in the country's constitution. the landmark shift could ease the constraints in japan's military. since world war ii, the country's armed forces have been kept from fighting abroad. and they are expected to adopt a revision as early as tuesday. any change is likely to anger china which originally has a tense relationship with tokyo. meantime, china is gearing up to see the second ipo of the government website in a year. the news agency xinhua is looking to raise $240 million. they will reinvest the funds raised according to the prospectives with the gross profit margin beating out the people's daily website coming in at 63.3% last year. and let's give you a look at what is coming up on the agenda in asia tomorrow, the official pmi number comes out at 9:00

a.m. beijing time. 25 minutes later we'll receive the final pmi number with the reaction from the australian dollar. and later at 2:30 sydney time, they will give the decision on interest rates on tuesday. in japan the all-important top survey is the key read on how big businesses can see confidence levels up there. the netherlands faced mexico in the final day match yesterday. mexico took the lead just after halftime thanks to a long-range effort from giovani dosantos. time seemed to be running out for the dutch when he handled the ball in the box. 25 minutes later he was fouled

in the area and he converted to get the 8-3 victory. an injury time equalizer took the game into extra time. the match ended in peanlty shoot-out with teams tie d witha superb save in the final quarter. today france takes on nigeria and germany will face algeria at 22:00 cet. meanwhile, the u.s. team arrived in salvador on sunday ahead of their second-round match against belgium tomorrow. the americans qualified from the

so-called group of debt into 2016. finishing ahead, portugal and ghana. and the rating matches have been just as good as the nba finals or as baseball. interesting on the ratings front. so we want to know, is this the moment that america took their love for soccer? you can tweet me and soccer fans are liking it here because it's better where they were. you can get in touch with me here as well. still to come, the latest ranking in the top banks is out. we'll look at the winners and losers. all that is coming your way.

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iraq's military has continued to go after the insurgents in tikrit. a day after troops and helicopter gun ships started the attack. the offensive is the first

attempt to retake territory from the sunni militants. we are joined now in the studio with more on this. what does this mean? >> it's a big problem for the west and for iran and saudi arabia as well. we have a huge area of territory now being controlled or basically monitored by the sunni militants. and i think that the real question is going to be at what point do we do something. does the united states step up and say regardless of what kind of government forms in iraq, they don't want to back maliki but we have a few days before the new government will be formed. so really the question is when they will do something and what they are going to do, but the wild card in this may be in terms of, if anything happens in the south, because we know that the oil pipelines, going to

basra, they are in the south. so if there were to be any attempts by the militants to infiltrate the area and make problems in terms of oil production, you would see a much quicker response from the west. >> >> if you look at the oil price that is declining on brent and wti, the markets are basically discounting any type of conflict here. it could be an issue to bubble up some perception and news that some have to continue with. when you look at the american side, is there more intervention in how we are involved now? >> i think there's a will to do something in a sense. obviously we don't want it to get worse. the one thing we know in the u.k. as of last week, these guys, once they have been there, they have been trained and will come home. this problem is going to continue. so something is going to have to be done, it's just we have to watch, wait and see what the choices are. no choice in the middle east is a good choice. all choices are hard with a major downside to each one. i think we are the united

states. what you are seeing in terms of oil prices are lower, but what is more interesting is to look at what is happening with the kurds now. a way to own their own oil and exports and not answer to baghdad. then you see a ramp up in production in the south. so in the short-term you'll see a ramp up in production, but as i say if that area is not threat upped by the sunni militants or they are able to expand, then there's going to be action that will have to be taken by the west. >> isis seemed to move quickly in a short amount of time, that's what captured the headlines, but now there seems to be a few stumbling blocks with not as much success moving through iraq as what it had initially. is this a good thing for the west? >> i think it's a good thing. i think what you're really seeing is they were up credibly mobile, light and quick and they were extremely well targeted. but at this point you've seen the iraqi military finally starting to kind of become a cohesive force. and be able to put the brakes on their movements. so at this point you're seeing a

more cohesive force in iraq in terms of the government and the military action, but you still have broader questions about what they can do going forward. >> i appreciate the perspective. thank you for joining us here in the london studios. the ukrainian president has urged vladimir putin to ease the border controls. this afternoon gun battles near the separatist stronghold in ukraine were going back to talks said to expire today. the european forces and the rebels near a checkpoint met. the french president francois hollande and angela merkel will meet as well. as we head into the first trading day, what does the second half have in store for investors? we'll look at the next six months in the fm sector.

>> here's what to watch for in the financial sector in the second half. bulls will see bank earnings improve alongside the economy. consumer banks will see loan demand keep picking up. the feds talk about showing strength across all u.s. districts. an investment banks rap big paydays for the close. costs will rise at the same time. bond trading remaining weak and the fed may stop paying interest or maybe charge banks for the $2.6 trillion in excess reserves. finally, bank of america, bnp parabas eand citibank will each pay millions to settle differences. the banks account for two of the three banks globally and a third of world profits. this is according to ratings from the banking magazine that also shows the eurozone banks continue to suffer.

the report also suggests an independent scotland could be dangerously unbalanced by the banking sector. they will devil into the editor of the banking magazine. brian, thank you for starting with us today. we'll talk about china, what does this mean, is it sourcing of profits and profit margins? what's the reason the chinese market has done well. >> as you report, the chinese bank is the first time to come back to see china with four in the top ten and are making more profits than anybody else in the world. act 30%. now clearly that's on what has been a very successful chinese company over the last decade or so. obviously the question you want to ask now is how is it going to be going forward?

what happens in the shadow banking sector which is what the analysts are concerned about. we think the capital ratios in the chinese banks are good. they are double what the western banks are holding when they got into trouble in the crisis. so we don't know what's going to happen, but unless there's a complete melt down, the chinese bank will be able to survive a turn-down for china's economy. >> what are the elements of of coursing the u.s. banks? and i wonder if it is being said. many of the chinese banks are trying to manage the road of distress because of the margin to be made. we know many european banks are forced to get rid of leverage on the balance sheet, so is the playing field from the regular they are specktive skewed? >> i'm not sure if they can form to the global standards, but what is true is on the other side. the european banks have really

struggled to recover from the financial crisis and were very slow to recognize the losses. the european central bank authorities didn't force them to recognize the loss quickly enough. in the united states they were forced to recognize the losses quickly and u.s. banks now make 20% of the profit, so they are doing pretty well. >> you can see that we've got one u.k. bank left in the top ten. no european banks anymore at all. at what point does that change? will it take a long time or next year will you bh sitting here saying we have a european bank made in the top ten? >> i think it happens in the eurozone. there are five close countries in the world. they are all euro zone. we are seeing deflation in parts of the eurozone. so i think it's a very long way to recovery.

paribas is hit by the big fine, but it's the same for deutsche bank. >> one of the other key measures is the impact for scotland breaking away from the u.k. to leave the outside banking sector in scotland. why is that? because -- >> if you took three banks that have headquarters the same and just add up the assets, what we will see in the financial crisis is a country with the banking sector with a large amount of overseas assets like the u.k. did, you get into trouble because you're responsible for the overseas assets as well as domestic assets. so what we are saying is under those circumstances scotland would be very highly exposed.

if scotland goes independent, what do the banks do? stay in scotland or move to the u.k. or being regulated by someone else? we don't know yet but on paper that's the risk similar to the financial crisis with isis. >> thank you, brian. just something else to consider when coming up before the vote. still to come on the show, the european central bank is desperate to avoid falling prices in the eurozone. stay tuned as we break out the up nation data. we'll have that up, next.

welcome to "worldwide exchange." i'm karen choi with your headlines from around the world. bnp paribas agrees to a number with u.s. authorities and a press conference will be held later today. and a rivalry takes a new twist with a sex tape involving the firm's top china executive was the catalyst into the invest. the eu approves a $1.7 billion line to help bulgaria to help boost the country's financial system. and this guarantees a savings

following a run on two banks. and new data out today shows a flurry of deals has led to a huge surge in global activity in the first half of the year. >> you're watching "worldwide exchange." bringing you business news from around the globe. we've got the latest crossing now from the eurozone inflation data has crossed at half a percent. the market consensus was up half a percent as well. this is the latest from the eurozone. this is a market that is closely being watched. there's a break down on italy over the last couple of secondes as well.

italy is plus .10% month on month. so it does explain to you how there's a divergence occurring across the eurozone. these are the lowest numbers since 2009. this is one of the issues the ecb has been grappling with as some say it is deflation in their and others say it is low inflation, but this is one of the real concerns that will impact businesses as they look at the macro economic side in europe and look at the share prices saying there's disconnect. if you look at the malaise in the economy versus what is playing out on the equity side, this data is more confirmation for the central bank. more of the majors that we had last month to lower the deposit rate to give lower credit to the system when it comes to deflati deflation.

we'll get to the next guest, janet henry, a chief european economist at hsbc. janet, come to us on this because you just had the read on inflation, half a percent which the market expected but is still a low reading, well away from what the ecb is targeting. what does this suggest? >> it is, actually, quite a low reading. you're right, we expect it to be .50, but we make the forecast before we saw the german inflation released on friday that jumped by more than expected from .6 to 1%. this reminds us that the inflation numbers are still lower than expected in the case of the eurozone. in the incoming months, we'll see how the ecb's current policies work, but for the markets, they are saying the ecb needs to do more. >> on june 4th, the hsbc number is coming in near 1%. it does tell you just how low

the reading is on italy do. the ecb measures do anything to try to correctly help the divide taking place across the euro zone? >> i think the ecb's latest measures, in particular the targeted lpro, is not targeted nirlly and that any bank can take the money up to 7% of the eligible assets initially, but the banks most likely to take up the liquidity are more likely to be the banks in southern europe because they put a chance to redo the financing with the cost of funding, but to some degree china could benefit more from what is coming through in the ecb. >> the measures have been opposed to the market. and you have to assume the central market will take time to assess how successful the measures will be. how long will that timeframe be

before we look at the monetary policy? >> we are still looking at several months. maybe on thursday in august we'll get more technical detail about the nature of the targeted refinancing operations. but i think we all know that bank themselves are going to be reluctant to start lending. until you know what the capital positions are going to be, they will wait to see the results in october. they will look at the capital available for lending and it will be after october, going to the final months of the year, we'll possibly expect to see improvement in tlending activity starting to come through. so of course the ecb may be disappointed if inflation is still on the downside, but will keeps saying, we delivered a vast of measures, we need time to see how they are impacting the real economy. before we really start to get serious about the aggressive natures, it will be the very end

of the year. >> i want to pick up on this with the malaise taking place in the eurozone economies. this is reflected in your figures when we are reminded how low the 2009 peak is. >> the divergence is huge. germany is 4% above pre-crisis levels. italy is still 9% below pre-crisis levels of activity. so while people might say these economies are finally starting to recover or getting excited with the prospect of spain growing 1% to 1.5%, relative to the recessions that proceeded it, it still sees activity at extremely low levels. when the activity is at low levels, you need a much stronger than expected economy to come through if you're going to be thinking about generating any kind of inflation. we have to look at how difficult the likes of the u.s. and the u.k. are with unemployment still

on the downside. we have not seen a pickup in inflation or wage growth. and the eurozone is still several years behind the recoveries in the u.s. >> thank you for joining us, janet henry, chief european economist at hsbc. we'll take a quick look at how the shares are doing this morning with howard miller, the deputy ceo and cfo, decided to step down as a full-time executive in december for runair. not an immediate decision with six months to go, but he agreed to join the board as an executive director through 2015. so the indications are that he'll still be providing expertise in the board just not in the current role. the shares are trading up a little bit higher, up .02% up affected by the news today. we'll look at what is coming up on today's agenda in the states. the june chicago pmi is due out after 10:00 a.m. eastern expected to drop two points from may. and at 10:00 we get may pending

home sales expected to rise more than 1%. and just after midday, san francisco fed president john williams speaks about the economy. and in some of the other top stories today, don't panic, that's the message from bulgaria's president who promised savings in the country's banks saying they are safe following a run on two major banks. they are also insisting savings fully guaranteed by the state. the central bank runs on corporate commercial bank and first investment bank with part of the attempt to stabilize the banking system. this coincides with political uncertainty in the country. the prime minister announces his cabinet would resign. meanwhile, the eu approved a 2.3 billion credit line to bulgaria. and the board of bnp paribas

approved a number for the u.s. sanctions. annetta, there are many components to the case in how operation stateside will be affected by this. >> reporter: yeah, it is very up clear, i would say, what that really means for the operation stateside. what is clear is that it won't lose the banking license, which was also on the table for discussion, but that's probably a negligent way. but what will happen is they are suspended from the u.s. clearance. it's not clear when this will be enacted, so the fastball times is reporting that it will be suspended or pushed back i should say until early next year. that would give bnp paribas to

have more time. and they will look at the effects of the big fine we are probably getting later on today from the u.s. authorities. so let me give you a quick overview of what it means for bnp paribas. no evidence for shareholders this year. last year one year paid $50 per share. for a bank that's not a bad one, so shareholders are bearing the brunt of the pain here. and also the cac ratio will drop from 9% .5%, which is low. >> thank you, annetta. so the big question is, how will bnp be able to afford the huge fine. the bank could be forced to issue a multibillion euro bond. we'll continue that european chat next.

these are your headlines today. a settlement could be close for bnp as the report is that the deal with u.s. regulators could be sealed today. and philips is looking to

potentially spin off a bright idea. >> and m&a is looking to report news as well. we are looking at the boards for the dow and the s&p. the nasdaq is starting slightly positive, but don't forget a lot on the calendar. nonfarm payrolls is on thursday ahead of the fourth of july holiday on friday. and the market session started off fairly strong but tapering off from the highs. the dax has been one of the best performers. positive for the ftse and the cac. we are now moving into the green still negative on the italian stock market. we'll check on the markets now with sri. >> hi, karen. a big focus on the japanese foreign markets with the nikkei

finishing the day in positive territory. so we are positive for the month and quarter but down by almost 7% if you look back across the year so far. so it really seemed to be a session of window dressing for a better expression. and we have industrial production data so the market didn't really react to that. i took it largely in stride. it was not the brazilian number with the tax hike, but that number will come tomorrow with the japan business confidence numbers. we'll get an idea of how japan inc. is dealing with the sales tax hike. and the data will be front and center this week. we have payrolls on thursday. but over here, the china data is critical tomorrow. we get the official pmi number.

and the manufacturing activity, we are looking at a fairly good read there of a six-month high. so if it comes in within expectations, that should give more filler to the asian stock market. on wednesday we get the time number from hsbc. so we are looking at confirmation and validation of the official number from that private forecaster. so it's a week of event risk, not just on the external side with the u.s. with the payrolls, but also on this side of the world with the data in china. big emphasis on that this week. karen, back to you. >> sri, thank you. new developments now crossing in from london saying the u.k. prime minister david cameron has a member that was found guilty of conspiracy.

he ordered members of the public according to the latest tabloid. we'll look at more with a host of different charges against him. so we'll find out exactly what the ramifications are. elsewhere, let me bring you up to speed. there are changes at the helm with ryanair. we have news in the last couple of minutes from the new cfo. and the latest is that neil sorihan is now named the chief financial officer. we have had the previous deputy ceo stepping down this morning. that's howard miller, also the cfo, but he'll depart the role as of december. neil will take the position of cfo with effect in the first of october. he is currently the finance director at bmi. moving on to news from bnp paribas, it is expected to be a

fine of $9 million for violating u.s. sanctions, but how will they pay for the huge amount? bnp will have to sell billions of bonds to investors in order to raise capital. joining us on the set is the european banking editor of the wall street journal, devon, great to have you here with us. one way to slash the dividend and the other to tap into markets, what is the best alternative because we have markets freely giving away capitol right now. >> well, that's the steps we are taking a month or two ago when credit suisse was severely penalized by the u.s. authorities in a separate case. it raised almost exactly the amount of the additional tier one. one is that they are hopeful to pay at least several billion of

the fine through this, and second of all, it shows strength that after being dealt a severe blow and being guilty to a crime, that they can go out and still have the faith and confidence of the markets to raise a whole load of money. >> the other alternative/dividend is a concern because the international banks, you have many investors looking for yields. so it could be a suspension up to two years is what is being put out in the report, but that would seem to leave paribas. >> it's a goal of the european banks around the world as the environment, as we move away from the cycle of huge credit losses, the banks are trying to return capital to shareholders. the two-year figure is what

analysts are saying they expect but i don't know how long it will last. and i don't know if it will be eliminated or reduced. but that's one way to conserve capital after you get dinged by a $9 billion fine. >> one of the bigger concerns is where this leaves lots of extra fines. the regulators and governments are saying to the economy, make more loans to help out with the this. >> i don't think it does much to the lending company because these have hundreds. the $9 billion fine they can pay out over the first six months of the year, but the bigger concern actually is whether this affects

wanting bnp a partner. the concern here in the u.s. is their ability to contrast in u.s. dollars, will clients just go to another bank? i think that's what the americans want. they have a punishment for and extremely serious result with consequences. >> thank you for coming in. appreciate it. elsewhere, black rock disclosed the notice from the fcc meaning it could face civil charges. the firm says the matter relates to investments held by a former portfolio manager that could pose a conflict of interest. there's no evidence of improper trading in the portfolio and clients were not harmed. still to come on the show, a sex scandal rocks

glaxosmithkline. we'll tell you the latest twist in the corruption probe.

♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening. they don't want to just see what's happening, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability. give fans more then just the game with the ibm cloud. new developments from a london court as we see retrial

over sanctioning illegal payments to an official while editing a tabloid. katherine boil has been covering this trial. last week he was found guilty on a charge and the conviction is still uphead, right? this is something separate? >> yes, we are expected to hear more later in the week, but the two charges here are over bribery of a public official. they are related to charges that he and the former royal editor both a phone book from an official while at news of the world. and this is obviously something that if found guilty on would be key for the news corp empire because that could constitute bribing a public official and leaving them vulnerable to corporate charges potentially in the u.s. so this is a really interesting

development and this means that it will cause news international and the british taxpayer quite a lot of money. it will continue for more and more months. the jury already said they couldn't reach a verdict in the two charges and a lot of them seem to hinge on the highlight of where the royal story was coming from. >> i want to bring up a couple other news items. philips is restructuring its business. they are going to merge the lighting unit into one stand-alone entity that could be spunoff. they have combined to 1.burea5 billion euros from last year.

shares in philips are trading higher on news spiking 3.75%. and the latest twist in the glaxosmithkline bribery scandal in china is a sex tape. the company has confirmed the existence of a recording of an intimate nature. katherine, you have been following this one and this is a tape that the executive didn't know when being conducted. >> it seems to have been done with the knowledge and brings home the dangers of operating in the markets. he's vulnerable to bribery and potentially possession of other metrics. and what is also really potentially damming is the evidence just suggesting that the gsk board is made aware of

this as early as january 2013, months before the internal inve investigation occurred. it is really complicate d. it is almost something that the gsk board may have answers to. >> who was responsible for the tape to be questioned as well? because it was not the executive. as investigators found out who conducted the tape, they, too, were brought in by authorities? >> well, it seems as though there's some suggestion, and this is not definitely confirmed, but there's suggestion that it could be within the chinese operations. someone who acted as a

whistleblower. but the company is responsible for this, so you likely see this occur over the course of the invest. still to come on the show, will the smartphone race speed up with a new apple contender? the second half tech crew is coming your way.

welcome to "worldwide exchange." i'm karen choi. these are your headlines from around the world. bnp paribas agrees to a $8.9 billion fine with u.s. authorities and a press conference will occur later today. philips is looking to sell-off a portion of their lighting business saying a sale could be in the cards. and the e.u. approves a $1.7 billion loan to help bulgaria. this guarantees a savings on a run between two major banks. and valeant and medtronic

are seeing a huge growth for the first half of the year. >> you're watching "worldwide exchange." bringing you business news from around the globe. if you are just tuning in, thank you for watching. let me show you how the u.s. markets are trades as we come up to the market open later this morning. the early indication is that we have a negative start for the dow and the s&p, but a slight push higher on the nasdaq. a bit of a tricky week for investors, data heavy, but also a lot on the engagement front with janet yellen giving a financial speech of stability on wednesday. we saw the bank of england's comments over the past week with concerns over the access in the system. we do see the payrolls up there

in what is a shoulder. on the european markets, we have a pause with the gapes starting to fade across the morning session. the dax is a strong performer, but even that marker up 1/3 is just positive for the ftse. giving up the gains in france and the italian market now down .20%. how do you make money in the markets? these are what some of the officials were telling us this morning. >> i think it is all germany and the u.s. where we are realistic for the economies to face a positive future. at the same time, we are expecting the emerging markets to continue. we expect china and india to buy a huge amount of these services. capital in europe has been a

big surprising factor in the last really 18 months. they are so strong. the credit spread is too low for the euro. it is just there to set policy and to say what he wants to say. so the bank of england has been a complete fiction and he's been caught two, three or four times. markets are out of touch from reality. that's the warning from the u.s. international bank of settlements. the bis says the climate of ultra low interest rates has lured a lot of policymakers into a false sense of security. the battle-based organization says there's a puzzling

disconnect between the market's optimism and underlying economic development. joining us now is a technical strategist. perhaps you can give us a view on how the markets are trading as we look to set and close off the first half of the year. the 2,000 is still in sight. do you think we can push through that barrier? >> i do think we can push through it ultimately. the gains are almost across the board except for japan. we have positive momentum behind the market from a technical standpoint and positive breath meaning market participation. and that is nod only good for the u.s. but globally. we are seeing broad

participation in the project to be bearish. some are overly bullish, but it is worth noting. it only matters when we see a huge loss of momentum and we have not had that yet. >> you have to wonder if sediment isn't too strong with too many people on the side lives, suggesting not everyone is participating in the rally, which is a positive catalyst anymore. what do you make? >> you have to agree that people are putting their money where their mouth is. the transaction vicks is to the

market participants. and i think it is important to pay attention to the indicators that support the trend and indicate higher prices into the second half of the year. >> let me join you with other trades. you are showing signs of exhaustion and decent trade momentum because of the iraq story and ukraine. why do you think some of the factors are going to affect it in terms of world trade? >> i do hate a trend, but crude oil based on wti is somewhat overextended from the technical standpoint and does have resistance in the 101 and 102 level. a very lutle loss near the resistance level. but, of course, the primary or failing trend is very much higher and that's why people should be investing. >> the gold buyers have been

dining out and it's been a lovely trading period over the course of june, does it continue from here? >> i think it might. we have a chance for us to see a real lasting turn-around in gold. the receipt breakout as of this mon month, you can see a big reversal pattern underway. that pattern would be completed on a breakout of 1370. so we need to see additional outside gold in order to confirm a turn-around, but there are indications that momentum has certainly improved and we have the potential for a breakout here. >> we appreciate the technical pulls. let's stick with the second half now to find out what investors can expect from the tech sector over the next six months. russ lipton has this report.

>> reporter: here's what to watch for in the tech sector in the second half. there are nearly 2 billion smartphone users in the world and we may have a few more options when deciding what the next advice should be. amazon ships their phone on july 25th and apple is expected to lawn ch the new smartphone sometimes in the fall. another trend to watch, tech companies could deliver more devices and services to track your health. apple just launched a new app to continue with this. and large surrenders are looking to acquire more companies to build up their solutions to offer clients from cloud services. i'm josh lipton. well, staying with tech, facebook has reportedly been reporting psychological tests.

they carried out tests on 700,000 users. they figured out they could alter their mental state. facebook tracked what kind of things those users would post on this site. you can see what the reaction will be to that. and public agencies are being able to restructure. franklin templeton claims that they are violating the new u.s. sanctions. the two firms hold $1.7 billion in debt compared to the power authority. they are asking for you to block the law saying only congress can create bankruptcy groups. argentina faces a crucial

debt crisis. the judge ordered for them to pay $1.6 billion to those hedge funds. last week the government took out the full page in several u.s. newspapers saying it wants to pay its debts but creditors won't let it. coming up, mergers, takeovers and buyouts, oh my! we discovered a yellow brick road this year leading to a huge move in territory. we needed 30 new hires for our call center.

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and a third simply doesn't want to be here. ♪ until now... until right booking now. ♪ planet earth's number one accomodation site booking.com booking.yeah! the latest in the world cup. netherlands faced mexico yesterday. mexico took the lead just after halftime thanks to a long-range effort from giovani santos. just two minutes later, they

averted from the spot to give the dutch a victory. later in the kickoff, brian ruiz opened scoring for the americans. the match ended in a penalty shoot-out with the teams retiring. there's a superb save that left it at that score. meanwhile, the u.s. team arrived in salvador on friday ahead of the second-round match against belgium tomorrow. the americans qualified for the so-called group of death on their way to the final 16 finishing ahead of portugal and ghana. u.s. tv ratings for the matches

have been beating the baseball's world series and the basketball nba finals. so we are posing a question to you, is this the moment that america took soccer to heart? well, josh has been tweeting this morning saying, i don't think so, just a bunch of bandwagon fans. notice they will forget about soccer in a week. and americans are struggling if we lose. we'll look at the headlines today. a settlement could be close for bnp as reports suggest to deal with u.s. regulators and could be sealed today. philips sheds light on the restructuring business looking to potentially sell off the lighting arm. and the first half of the year with activity reaching $1.7 trillion. in corporate news, ken feinberg is expected to announce the terms today of gm's

compensation fund. the victims show crashes related to faulty ignition switches. he'll hold a press conference in washington at 10:00 a.m. eastern. gm's ceo mary barra says the company won't have any say in how much feinberg can award. on friday 128,000 more vehicles in the states were recalled including several other. compared to the rest of the german stock market in positive territo territory, a decision will be made in a meeting over the

weekend. and the bond regulator shares are so far in positive territory up a third of a percent. and the takeover news, abeve has a ceo to pitch the $27-billion takeover over the company. this is just the latest in line for the corporate deals from the last few months. global activity hit a seven-year high in the first half of the year. that's going to bring us to seema moody as we know the numbers are staggering with the numbers just gigantic. >> there's a desire to trump the rivals and led many ceos to strive for big deals this year.

the global activity had 1.7 trillion so far in the first half of the year up 75% of this time from last year. the value of the swords has dropped every in the u.s. there have been nearly 28 million deals doubling to $509 billion. most of the activity was in health care with more than $317 billion in deals, the highest reported in a 15% in 2007's full record. it would have been higher if pfizer had proceeded in buying astrazeneca. media and telecom are higher tripling to $22 billion. buyers on average are paying 13%

higher this year compared to 12% from a year ago. risk taking is being rewarded by investors as nearly 70% of the u.s. emergenciers have been followed by gains and shares of the buyers. among the top advisers, goldman sachs and jpmorgan chase round out the top five. and despite the boom in 2007, this year's boom is being led by bio firms pushing to the sidelines, but private equity firms are taking advantage of the surge to sell more of their companies for top dollar. karen? >> seema, thank you for that. we have more coming up on the program including a trip to the movies. it may not have the original cost but some of the original machines win big at the box

office over the weekend. more details, next. 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 and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

"transformers: age of extinction" took in $100 million in its first debut. the fourth movie in the "transformers" franchise is an improvement including international sales with $209 million with $19 million from china, the biggest opening for a foreign flick. well, the u.s. futures are patchy across the board with anticipation for the dow. scott, what do you anticipate on

the last day of the month of june? >> i think today will be kind of quiet, but i don't want investors to fall asleep here. we have a four-day week that can be different. at the same time, we do have end of month quarter. we have a payroll at the end of the week with ism numbers. i think we have number here to slowly but surely surprise people. be careful of getting short in the volatility. things have been beaten up, but sometimes that's justifiably low. right now going forward, it will be all about the fed and not about the data. keep that in mind if you start to see really bad or good numbers. ultimately it will be about the government's checkbook. >> and you dressed up for the occasion, can i ask you about the jacket? >> well, this jacket has been on the floor for 35 years. my father wore it before i did and he retired in 2000. i picked up where he left off. it is to remind folks that it is not las vegas.

we perform an economic function down here trading. so it's not just gambling. >> some say it is las vegas as they are worried about the euphoria in the markets, but is there too much built in as we saw on the s&p? >> look, like i said, we have to stop talking about this being a recovery because they are data dependent. this is an expansion and expansions are checkbook dependent. as long as the government is going to be there in the market, it is not euphoric but it will surely go higher. ultimately going away from the government, the checkbook is there because the data is not good. make sure that you have a chair when the music stocks. >> thank you, scott. thank you very much for watching today. i'm karen choi. that's all for "worldwide exchange."

good morning. welcome to "squawk box." it's halftime so will we see fireworks? and we have fourth of july on friday. i'm not coming in on friday. and bob mcdonnell will be running the department of veterans affairs. and today the details of the gm compensation fund will be announced. it is monday, june 30th, 2014. "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernan. andrew ross-sorkin is off today. this is a big day for us this time around. today we'll get chicago pmi and pending home sales and the dallas fed survey. tomorrow manufacturing pmi, ism manufacturing, construction spending and june auto sales. then on wednesday the adp report and factory orders. and janet yellen will speak at the imf conference. and on thursday, the big june employment report. we will get the numbers on thursday because on friday the market is closed due to the fourth of july. and