hello, everybody. welcome. good morning. you're now watching "worldwide exchange." i'm louisa bojesen. the eu foreign minister is descending on brussels for an emergency meeting on the crisis in ukraine. a russian aid convoy stopping short of the border as negotiations continue about its passage into the country. bac opening at the top of the stoxx 600. the miner looking at developing a new company. shares in alibaba are

suspended regarding concerns about irregular layerties. and monster's energy boost gets a boost with coke higher in after hours trade. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. good morning, everybody. very glad you're with us. a fresh start to the day. the end of the week. by the looks of things, we're just hanging on to some slight gains. we were called a little bit higher on the market this morning. yesterday on the close you would have noted that we closed out on the slightly positive note despite the fact that we have all of these ghee quo political tensions that we're talking about these days. we'll be talking more about them on the show, as well. stoxx europe 6 hu00 higher by j

shy of 0.5%. very, very dire readings coming through from europe. let's get to the core european markets. we've got gains slightly across the board now. the ftse higher by 0.5%. the same goes for the xetra dax, cac 40, 0.25%. on the asian markets, taking a look at how the indian markets or the asian markets have been faired. the south korean and indian markets are both closed for holiday. now let's talk about some of the top stocks out there. bhp billiton considering spinning off unwanted assets into a separate company. it could be worth up to $14 billion. reports suggesting that the new firm is going to include aluminum and nickel operations as well as canning from silver mines and south african coal assets. the board is set to review the strategy next week.

h&m trading close to the top of the stoxx 600 after the fashion giant posted a better than expected 17% jump in sales. the group is saying its market shares continue to rise despite competition from the uk based prime mark and the u.s. forever 21. carillion taking a hit after their proposal remains unchanged and balfour beatty rejects their second offer. lufthansa investors cheer speculation germany could withdraw air surcharge. we've been focusing a lot of our attention to the last couple of sessions with these yields moving ever lower.

we saw a risk off trade and lots of people filing back into the bund. for example, the yield dropping below 1% for the first time ever. ten-year italian pushing lower and the yield in spain shy of 2.5%. the fx rates, the currency markets. what we're seeing here, the euro/dollar, very flat. shy of 1.34 as we've seen for the past couple of sessions. the aussie/dollar, 0.9325. according to a number of reports, up to 23 personal carriers crossed the border.

officials from the red cross there currently in kiev to try and negotiate its passage into the country. u.s. state department spokes woman maria hart has reiterated that russia cannot act unilateral unilaterally. >> russia has no right to send any cargo into ukraine without the government's explicit permission. i said that before. the ukraine is providing its own humanitarian aid. we are calling on the russian -- who currently control that area to let people have access to that aid. >> meanwhile, eu foreign ministers r arriving in brussels to discuss geopolitical tensions, including the situation between russia and ukraine.

>> it's an emergency meeting of those european foreign ministers here in brussels. next to the situation in iraq, taking that, it is, of course, consideration of the situation in ukraine. that was with eyewitnesss on various journalists on the ground there. there might be talking needs here in brussels among those foreign ministers. at the same time, we are hearing that russia is allowing ukraine and boarder control to actually check on the remaining vehicles

close to the border who at the kremlin is saying are only transporting aids material. and that is actually a positive sign. we have once again conflicting issues out of that region. they apparently have news that they are moving military equipment inside the ukrainian territory. again, a very difficult situation and we don't know what is really true here because both sides are playing the media quite well. the ukrainian government can do that pretty well and the russians are very good as it, as well.

they are about to arrive right now. the meeting starts at 12:00 cet. there will be a press conference at 6:00 in the evening in brussels. with that, back to you. >> neal said the chief emerging market economists at capital economics. he is with you in the studio. >> we can choose, so the tough job becomes even tougher. really, at this stage, i think, the markets are really struggling with this, too.

it is a big sell-off in the bond market last week. this week we've seen markets rally on hopes that there might be some steps towards de-escalation from moscow. and the hope seems to be about de-escalation. which would point to actually some kind of retaliation and escalation. >> and i like how in the comments yesterday in crimea, you take the time to look through the comments, we'll do everything we can not to escalate the crisis. but the market is ignoring that. >> i think that's true. and the point is that he's trying to ride the horses, if you like.

there's a domestic audience and there could be no backing down. the big russian oil companies, they're going to apply for central bank for financing help, he's effectively been cut out of western markets. so at least to try and appease the western community on the one hand and the domestic audience, too. he does it quite well, actually, and has proven record highs. but i think the consensus view, the view of the markets this week is that actually we might see some steps for de-escalation. i think that might prove to be somewhat complacent. >> how about central and eastern europe? where are we with regard to investment in this particular area and is there a way to invest in central and eastern europe where you don't necessarily expose yourself to what's taking place in ukraine? >> i think there is. the answer is to avoid russia.

that is the major export market for this region. relatively small economy, it depends on what happens in the eurozone and less dependant on what happens in the eurozone, i think. it will affect countries like poland and hold back on investment in particular. but really, for these countries, it's about what happens in the eurozone and in particular what happens in germany that matters. i think on that front, it might be weaker in the second half of this year. but i don't expect the recovery that we've seen in the past 18 months to go into reverse. >> neal, thank you very much. it's friday. are you having a chance to enjoy any of the summer? a lot of stuff to follow at the moment. >> there's a lot of stuff to follow at the moment. elections coming up.

i'm going to go away in september, though. >> maybe this year september is the new august. >> could be. >> it could be. you never know. neal sheering, thank you very much for being with us, from capital economics. staying in ukraine for a while longer, tempers overnight in the halls of ukraine's parliament amid ongoing tensions in russia. the two mps right here engaged over a war of words over whether one involved has visited the area where ukrainian forces are fighting rebels. things turned nasty, as you saw, one mp punching his colleague on the cheek. t getting slightly heated there. oh, gracious. back to corporate news, coca-cola is buying an almost 17% stake in drinkmaker monster beverage for 1.4 million in

cash. coke is getting a seat on the board, as well. monster will take over coke's energy drink business and remove its nonenergy drinks to coke. monster is a dominant player in energy drinks with 42% of the market. shares of monster soaring by some 22% in after hours trade. both companies trading higher there. now i'm tooits time to get whale watching. an s.e.c. filing shows that warren buffett's berkshire hathaway shows charter communications in the second quarter while paring higher stakes in gm, ibm, ver rise yop, and lower stakes in conco philips and liberty media. checking in on those shares, slightly mixed at the moment.

coming up here on today's show, bucking the retail rub. we wade through the numbers and jcpenney in second quarter sales outpacing its rivals. and burning money to burn rubber, we go under the hood and expect the world's most expensive car ever sold at auction. can you guess which one it is? we'll hear more about that. and when you're having a baby, if you are, maybe you're arguing with your wivy or your husband over baby names. we reveal the top names of 2013. will the name george make a royal impact o list or will it be frozen out by the name of disney characters? we'll talk more about that. it is an official list put together by the statistics office. still to come, could possible accounting errors cast

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the alibaba ipo is a big

deal. they have delayed results and suspended trading citing possible accounting irregular layerties. it says its parent e-commerce giant prepares for one of the largest ips in history. what do you think, eunice? >> well, there's a lot of attention right now on the due diligence process of alibaba. and that really comes to the fore now because of this particular announcement. what we know is that alibaba pictures, which is the film unit of alibaba is now reporting irregular layerties, accounting irregular layerties. in the backup of all of this is that alibaba has been trying to push into the entertainment industry. it wants to build up its presence, it's been on an aggressive acquisition trail. this is one of the latest acquisitions that the company made. it took a 60% stakes in a company that was formerly called china vision media.

as part of this deal, alibaba put in place new managers. after they looked at the books, they found accounting problems that were there before the new management came in. they need some time, the company says, in order to look at this matter more closely. we don't know the size of it or the scale, but it's obviously big enough that the company has to delay its first half earnings and suspended the trade of the stock in hong kong until the investigation results in something more substantial for them. now, alibaba has been under a lot of scrutiny, especially their due diligence process ahead of the ipo in new york. and a lot of people are talking about how this particular issue really raises a lot of questions about just how thorough alibaba

has been when they vet these action sessions that they've been making and there's been a lot of pressure for the company itself to be seen as a good corporate citizens so that investors will be willing to buy into the ipo. so the company actually made an announcement after the deal -- or after the film unit had made its statement and alibaba said that the actions of the film unit to disclose this information is in line with alibaba's own commitment to transparency. louisa. >> eunice, thank you very much for that. eunice yoon joining us live there in beijing. bhp billiton shares, they've been popping after the mining giant said it favors spinning off more unwanted assets. this comes as a move to narrow its focus on commodities like iron ore and petroleum. bhp did not specify which assets it was looking to sell. the mining giant saying that its

board will be discussing all of the options next week. bhp billiton will report full year results on tuesday. watch out for that. now, staying in the mining sector or basic resources, gold posting its second week of genes. this as geopolitical tensions and sluggish global economic data boost its safe haven appeal, among other things. let's check in on silver. it has having things taking place there. a new electronic auction based system goes live today, replacing the 17-year-old system. a strategist at bank of america merrill lynch is joining us. why are we getting rid of the old and putting new in with regard to sympathy ver? >> as you've mentioned in your introduction, i think the previous system has been in place for quite a while.

and i think there was a decision to take at some stage that it would be decided to have bigger transparency, has more audible price setting process in place, as well. >> am i crazy or do we not know who is going to be taking these orders? >> that is to some extent correct. i think the issue we have with any new pricing mechanism or any new contract coming online is that you don't know quite how it is, how it is playing out. initially, you find often that markets are a little bit cautious in engaging in a particular contract. having said that, we need a reference price, right? ultimately, i think the system or pricing mechanism will start to kick in. >> because nobody stepped forward to say that they're going to be involved.

>> you're changing a few things around. you have got entirely new infrastructure now in place. and, again, you are trading and you don't want to -- you want to make sure that you don't lose money. >> how do you view prices at the moment for silver and gold? >> well, it's generally quite good. it's just approaching it from an investor perspective. >> i would assume, as well, that there has to be some --

>> you have a lot of -- the stack in between, silver prices have moved. >> so what is the trade? if i want to be in on this, how do i play it? you want to take a long position, you have to take a very long-term use three, four, five years out. and on the base, you have some amazing trades. there you can look out like six or 12 months to even make money. >> it has been up over 30% year-to-date. >> that is copper at the moment. all of the others do look quite good, actually.

>> it can only get better from here, right? >> i know. it's like the arctic winter here in the studio. have fun. metal strategist at bank of america merrill lynch. i just want to bring you some news, some flashes that we're getting through on ukraine. let me just find them. we're hearing that ukrainian officials are starting a section of the russian aid convoy. the border guards and the custom officers are working at the russian border post. let's move on. how much would you be willing to

pay for your dream car? this 1962 ferrari 250 gdo, do you think it's beautiful? oh, my director says this is beautiful. balestna, he says. it was auctioned off for $34.5 million on thursday. it's the most expensive car ever sold at auction. ferrari only made 36 gtos. they rarely come up for sale. it has a bit of a checkered crash, though. the car crashed during a race in paris in 1962. at the time, that killed the driver. it was later owned by an italian car buff until his death in 2010. do you like it? it looks pretty smart to park if you're in london. because it would probably fit into a space like that versus the 250 rolls-royces i found driving around last night. we want to hear from you.

what are you thinking at the moment? where is your mind? what will be investing in? do you like the car? what type of prospects do you think there are for the next month? join the conversation on worldwide@cnbc.com. @krns we can see, as well. very happy to hear from you here this wonderful friday morning. still to come, after the break, we will be getting the latest gdp data for the uk. find out if the second quarter growth story is here after what we saw yesterday in the eurozone. you're watching "worldwide exchange." good morning, everyone.

hello, everybody. i'm louisa bojesen. good morning. you're watching "worldwide exchange." officials are meeting in brulss as officials inspect a russian aid convoy at the border. bhp billiton is cheering with spin-off plans to form a new company. and shares in alibaba

pictures are suspended amid concerns of possible accounting irregularities. and monster beverage gets an energy boost as coke spends more than $2 billion to buy a stake in the company sending shares higher in after hours trade. hi, everybody. let me just get you the latest data to hit the wires. the uk's second quarter gdp data plus 0.8% quarter on quarter, which means essentially that it's unchanged from what we saw in the first estimate. the second quarter gdp revised to plus 3.2% year on year, which is slightly higher than the last estimate which was at 3.1%. second quarter gdp forecast at 0.8% quarter on quarter and 3.1% year on year.

the year on year number slightly stronger than anticipated being revised just a hair higher. that's just hitting our wires right now off the back of dire gdp data that we saw yesterday. the economy falling for europe's largest economy by 0.2%. as we saw yesterday. italy saw constructions, france saw stagnation. basically you're looking at core europe becoming a lot weaker than what we've had in the periphery for the growth story. speaking of europe, let's check in on the markets, why not, this morning? we're looking at our markets being held higher. nevertheless, we're still higher by around 0.5% in trade. currently markets, pretty unmoved from what we saw yesterday. dollar/yen, right around 102.5.

euro/dollar, shy of 1.34. it is thought that the ecb might have to step in with more stimulus after these latest gdp ratings. buying into sovereign debts across the board. we've had record low yields in france and germany on the ten-year. we saw that yesterday after the gdp data. the 10-year yield in germany slipping below 1 bers for the first time ever and we're currently just hanging on to that area. now, something completely different, a story would have been following quite closely, taking place in the u.s., protests continue for a fifth day in the st. louis suburb of ferguson after the police shooting of an unarmed teenager mike brown. peaceful vigilsel were held in

the united states. president obama spoke out appealing for calm. >> we're all part of one american family. we are united in common values, including a basic respect for public order and the right to peaceful public protests. so now is the time for healing. now is the time for peace and calm on the streets of ferguson. now is the time for an open and transparent process to see that justice is done. >> nnz's ron allen has been covering the story on the ground and he filed this report. >> a fourth straight night of classes turned ferguson's main street into a battlefield. scores of heavily armed and armored police face off with protesters. the trouble started when a column of police blocked hundreds of marches.

then they were ordered to disburse. >> with the markets, things were calm, winding down. but then the police seemed to run out of -- as they tried to clear the streets. hours later, tear gas. police say they fired because bottles and monthly to have cocktails rained down on them. >> i thought it was beyond heavy handed. >> antonio french spent the night in jail, arrested in his car with other protesters. >> smoke bombs come out and the tear gas comes out, it's not like i can just drive through the smoke. >> i think it's very important that to what by and large has been very peaceful protests. >> law enforcement response has come under strutny. st. louis county police officers, seen here in full riot gear approaching one man are

outfitted according to police with submachine guns and assault rivals. earlier this week, officers arrived in a bear cat, an armored vehicle which can with stand the impact from a 50 caliber machine gun. yesterday, under the direction, brought out rifles with a range of 500 to 800 yards. this afternoon, protesters brought their grievances to the front door of the police department. and the state's governor announced a change. >> by announcing that the highway patrol under the transportation of captain ron johnson who grew up in this area will be directing that in ferguson. that was nbc's ron allen in ferguson, missouri. protests were described as boisterous but peaceful overnight after the highway patrol was put in charge of security.

moving from the uk to iraq, and iraq's murray al ma maliki has stepped down as prime minister and backs abadi. michael is joining us on the phone from baghdad. good to have you with us. just tell us the latest on what this means, that maliki decided finally to take his last bow. >> you know, the pressure acting is building on all sides even from shiites, from power broker iran, the united states and from kurds and sunnis. he became too much of a polarizing figure. it seems he couldn't command enough loyalty to try to stay

on, so he finally stepped down appearing on television last night with senior shiite figures, clericics, military men, in an attempt to show iraqis that there is some kinds of unity at least in the country. now the big question is, will his successor be able to unite iraqis given the fact that they're in another war and that the islamic state is making that war more difficult, grabbing lands, grabbing oil fields, and getting more sophisticated along the way been. >> and tell us a little bit more about abadi. >> abadi is seen as -- he appeals to everyone, including ayatola stani. he has shiite credentials. he is a one-time member of

maliki's party. he spent some time in england. he doesn't make waves and he seems to get along with most people. but the big question is, it's doubtful that the islamic militants will back down because a shiite is in pure, because basically they think all infidels deserve to die been but he may have luck trying to unite iraqis. and the big question for him is whether he can bring -- who joind joins with the state in rising up against the government. find a way to given them power and control militias with basically an entity on their own at this point, kidnapping people or murdering them according to sunnis, hanging people by telephone poles. that's the big issue. >> michael, a last question for

you. just the latest on the yadidis, have most been able to cross into an area where there's more safety? >> it's hard to say. i think the big question is how is the state going to prevent this from happening again? it buckled in the state of the militant advance. the iraqi haas state has crumbled. the question is maybe they ease the crisis now, but how are they going to find a way to stop this in the future? a few air strikes from the united states is not going to solve the problem. >> no. michael, thank you very much for being with us, michael goeogy, from reuters.

you have a lot of refugee eggs now from war torn syria. let's get the energy angle on the latest news. peter, the price of oil to bring markets back into this, rel itch stability? we saw a little bit of movement yet, but that seem to be more on the russian story than what's taking place in the middle east. in i think that's partly true. it was down about $2, but on very, very small volume. this is the middle of august. it's a quiet market. it was a significant move. partly it was on russia. what it was with the fact that the market has moved back and the future price is now more expensive than the present day price. we've had that really since about january 2011. what it means in practice is

that people can no longer sell off the contract. that drove prices down. we got more stability in the price today. then 102 odd and that's getting close to the other hundred level. >> and they want come to defend it, do you think, or do you think there's a risk we could go below 100? >> i think in the market, given the fact we have the nonphysicals and the financial movers coming out of this market, i think from a technical sense, to challenge any underlying -- could be temporarily exaggerated. but with saudi arabia producing around 10 million barrels a day in july, and that was an increase against a back drop of

the real concerns about disruptions like in iraqi as you were just talking about, the market at the moment in the atlantic basin is relatively supplied. that's probably enough to support the level on an underlying basis. >> i think that's what we've seen to some extent moving towards containgo.

the russian sanctions don't make a huge amount of difference in the near term, but they may impact growth. that means without the continued growth in the u.s., that may be more difficult to keep the markets in balance. >> peter, very good to talk to you. have a good weekend. now, let's give you a look at what's on the agenda in asia on monday. weekends right around the corner, right? the thighland's second quarter gdp data is coming out, 0.9% growth. the meeting will reveal what impact the military coup in may had on the economy. we'll get a check on china's house price index for july and june. back to europe, i was talking a bit earlier on about how we've seen all this pressure on yields on the european bond

markets. jellenick is with us. luca, good to see you this morning. >> hello. >> when i look and i see yields being pressed lower, hitting record lows in trade yesterday, does this indicate to me as a trader or as an investor that i think the ecb will be stepping in with more stimulus? >> that is what the market is going for and more and more commentators and lash on authorities. that will improve bank liquidity. and some of the front running bids for bonds that we've seen. i think some the are pointing to the possibility of quantitative easing. how much lower do you think yields can go for germany and for france, for example, the two areas where we've seen record lows already? >> we've seen the ten-year bund is now around 11%, which

certainly six months ago or even three months ago would have been an extreme call. so, you know, there is no reason why the ten-year and the 13-year in germany can't go lower if we can get these kind of figures and if the conviction the market has that europe is having for japan-like scenario continues to grow. right now it's growing. >> when do you think that we're going to see actions coming from the fed? i mean, when yellen spoke last time, the market took it to be a very dovish line that she was feeding the markets. but then you look at some of the jobless data and things have been improving. >> i think in the u.s. and in the uk, we're in a very different stage of the process. so discussions, more orthodox discussion about when they were hike, how far they will hike, how quickly. opinions can vary quite rapidly.

they came down sharply after carney's comments. so when you get more news from the fed, more statement, you get that kind of volatility that it's a recognizable path of that normal interest rate cycle. well, the news in europe now is people becoming convinced that there is no rate cycle. that's why we've seen such huge spikes between european rates and the u.s. >> how do you think you should be looking to make money in the debt markets if you want to be invested there? >> if one has to be invested in european rates, the mistake sure

it's sufficient to avoid a sovereign debt crisis. i think the periphery is interesting. obviously, very low growth is not good for the periphery. but if you believe the ecb ultimately will step up and do what is necessary, then i think that's an interesting trade. but right now, i would not stand in front of the markets. >> no, i wouldn't stand in front of the market, either. not a good place to be standing sometimes. luca, please. >> no, you know, most piemt started the year thinking rates would rise in europe. >> luca, thank you very much. luca ahead of european rate strategy from credit agricole. still to come on the show, what should you name your baby?

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good morning. i'm louisa bojesen. welcome back. samsung is planning to invade your homes with its purchase of smartphones. the phone that helps connect household twices from your smart devices, it's backed by palpal's co-founder mark lichten. samsung joins apple and google that are working on similar devices that connect phones to them mow status and lights. the tech crunch blog reported in july that it was in discussions to pay more than $200 million for the company. applied materials third quarter profit rose by 79% beating forecast on solid demand for chips and machines that make them.

analysts rising by some 2% in after hours. josh lipton filed this report from silicone valley. >> applied materials has already enjoyed a strong run so far this year. and at least in the after hours, that stock continues to march even higher. for the third quarter, the company reported earnings per share of 28 cents on revenue of 2.72 billion, up 15% year over year. there was a beat on the bottom and a slight miss on the top. there is also company involvement. more importantly with the forecast, the company for the fourth quarter forecasting adjusted per share profit of 25 to 29 cents on sales, 10% to 17% higher from a year ago period. analysts were looking for 26 cents.

applied materials is the world's largest supplier of equipment used to conduct semi conductors. rivals chug companies such as lamb research. that stock has kept some analysts on the sidelines. the stock now looks attractively valued. in after hours, the bull res in charge. are you having a baby? if you are, congratulations, first of all. but maybe you're now arguing with your wife about baby names? how about elsa, olaf? disney characters names are creeping on to baby list places like the uk.

this top names this year, it turns out, oliver and amelia while george still remains in the top teb, as well. oliver, jack, harry, jacob, charlie, thomas. elizabeth is a senior sta activitian. we just saw some of the names there. what's the trend this year? >> the top ten names have been stable. it was harry last year, but he's been knocked off by ol verse. in the boys' top ten, george has come in and oscar for the first time.

more and more names have landed on the list. this year you have over 27 different boys names and 35 girls' names. >> what are some of the more interesting names that you've heard? >> there's quite a lot of interesting names out there. some people use really short names. for boys, qi. >> qi, like q-i? opposite of i-q. we also have traditional names coming back, some of the girls now in the top hundred again are names like darcy and beatrice coming back in again. >> you have one called george and one called qi.

>> and people taking more the older names and bringing them forward now. does that have to do with where we are as a society or -- i mean, these go through cycles, right? >> yeah. i think there are trends in names, go up there and come back again. >> thank you very much for coming in and talking to us, elizabeth mcclaren. what are some of the more unusual names that you've heard of? qi. i've never heard that name. find us on twitter, @cnbcwex or worldwide@cnbc.com. after the break, we'll be talking about coke. that's been a big deal stateside.

good morning, everybody. i'm louisa bojesen. welcome to "worldwide exchange." monster beverage gets an energy boost as coke spends more than $2 billion buying a stake in the company. jolting shares higher in after hours trade. shares in allibaba are suspended amid concerns of possible accounting issues. and all aboard the whale watching vessel as big investors like warren buffett describes

what they've been buying and selling the past few months. and an emergency meeting on the crisis in ukraine, as officials are expecting a russian aid convoy exporter. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi, everybody. welcome back to the second hour of "worldwide exchange." if you're just tune in in, thank you very much for joining us on the show. we were just talking about a whole bunch of interesting stuff and what the u.s. markets are doing, how they are fairing. we're just looking at the u.s. markets being pulled off by a couple of points. i call that relatively flattish calls. still a couple of hours away from the u.s. market open. we saw gains yesterday, gains in

europe yesterday, as well. we had that dire gdp running through from europe. this morning in the uk, wed confirmation on the second quarter print quarter on quarter, revised higher when you look at the year on year number. the ftse cnbc global 300, we're at a session high. so far, keep in mind, we've only been on track for 1 1/2 hours of trade so far. that's what we're seeing when it comes to our main european markets. the cac, the xetra dax, the ibex, higher 0.5 fers to 0.75 pes. south korean markets, india are closed for holidays taking place. that is in the overnight session. the bond markets are interesting because we continue to see markets being pushed higher when it comes to sovereign debt. yields lower. so a yield now flirting with this all-time low that we hit in

yesterday's session. both the yield and the bund and the ten-year french paper hitting all-time lows yesterday with the bund moving below 1%. you just heard one of my previous bond guests there saying there's no reason why it shouldn't be able to continue to go lower, the yield, that is. looking at the currency markets, very flattish rates, very stable rates. dollar/yen hanging on to 102.5. july ppi out at 8:30 eastern time. producer prices forecast to rise by 0.2%. at 9:15, it's the first record on the sentiment data.

so a couple of things coming up to right behind your ear for the next couple of hours. the managing director in chief fx strategist at scotia bank joins us. also with us is cnbc contributor donald luskin. camilla, let's start with you. where do you think the trade is at the moment? >> well, in terms of currency, i think you have to look at the fundamental. flows shifted to far more negative. we saw the short position go very short. we saw there was some easing up in some of the central bank buying flows. that's been the key. right now, technicals are telling us we were unable to move lower when we had that horrible data yesterday and the day before, unable to move lower. and i think that hints the euro is taking some time here trying to stabilize. that doesn't mean we're not going to see lower lows, but i think in the meantime, euro

needs to go below that 1.3333 before we're able to see more down side. i think that's an interesting turn. >> what do you think the euro/dollar will end the year on? like what level are we going to be at at the beginning of 2015? >> 1.30. and i think the truth of the matter is what we need to see is ongoing weakness in the fundamental picture. and i think the story is growth is low. i think we're in an environment where the euro struggles to stay where it is.

>> despite the fact that we have this atrocious data out here, we're set on some of these indexes to look at the best weekly gapes in around a month's time. where do you see value? >> i see value wherever in the world. we've got a world economy that's improving. and, you know, the u.s. has been relatively free of geopolitical risks. it's improving among the developed world europe, we don't need a lot of excuses to explain bad gdp growth. there would be a lot of concerns about what happened if europe tries to manipulate the situation in a failed state called ewe crepe. >> and the only sanctions that were put on were put on because of the public outcry of downing of malaysian flight 217.

putin is not napoleon. he's not going to take over ewe crepe. it's all going to be good. i think this is a giant buying opportunity and to answer the question you asked your earlier guest, i think europe is going to end up stronger on the year. >> you do. a lot of people are thinking that at the moment. but at the same time, we look at the data and it doesn't look all that good. >> the five pigs all need to have very -- reforms. some are doing it better than others. italy is probably at the back of the pack there. spain is probably leading the pack. from a u.s. perspective, we call it the right to work state where the power of unions is

diminished, regulations are being taxed. we have a lot of space like that in the south. like tennessee, that is a real growth environment. if you want to start building a new auto factory, you're going to build it in spain. for the quarter, germany was lower and spain was higher. spain led the pack. shape is one of the esses in pigs. >> camilla, coming back to what's going on, we have jackson hole coming up. i'm wondering if anything is going to be flushed out this time and whether we'll hear anything that moves markets. >> you're slightly right. lots of the voluntary.

we know the context of the overall conference is about labor. so we know labor is getting better except for those utilization measures. and the biggest question mark overall is what's taking place with wage growth. is this a cyclical issue? what is going on that front? i think that's going to be the key that the entire market will be looking for any clues there. i think when we look at what happened this week, we've seen big improvements in some of the metrics. but overall, it's been an environment where all the of the global growth indicators like germany and france have started to flow. i think the overall tag line is that when rates do start to rise, it will be a very, very slow process because we've had a shift in the overall market. now we've had different rules and regulations in place. that's likely going to change the spread that we're seeing

between the overnight rate and the rate that's charged out in markets. and i think that's a big change, as well. i think what we're looking at interest rates and thinking about how interest rates are moving, we're likely to start to see early hikes. but then we're likely to see a very extended phase and that's a very interesting piece for markets overall. >> when it comes to jackson hole? >> lots of room for volatility there. i think the key is looking at what comes out in terms of wage growth. >> it's all about wage growth now. thank you very much. have a good weekend. and donald, we're keeping you for a while longer. thank you, camilla. let's take a look at some of the other top stories. in the meantime, coca-cola, a nearly 17% stake in energy drinkmaker monster beverage for more than $2 billion in cash, cold cash. coke is getting the rights to a

seat on monster's board. they will move the nonenergy brand to coke. both expanding the distribution agreement. monster is a dominant player in energy drinks, 42% of the market. i don't like drinking monsters. you can see here shares trading higher here on the back of this news. it's time to go whale watching. some of the world's biggest investors reveal which stocks they've been buying and selling. an s.e.c. filing showing berkshire hathway taking a new stake in charter communications in the second quarter while paring orders and directv. berkshire reported higher stakes in gm, ibm, verizon and walmart and lower stakes in conco philips and inlerty media. many people follow buffett, don't they?

anyway, those are the shares they were performing here in the last session. carl icahn taking a more than 6% stake in the second quarter. a filing showed that he -- they beat him to the punch. apple has been one of its biggest holdings. liam cooperman took a stake of 1.3 million shares. apple and gannett both on screen for you now. next, we head out to beijing for the latest as alibaba discovers suspicious accounting. we will hear pore about the details there. stay with us. you're watching "worldwide exchange." hello, everybody. and that became our passion.

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hello, everybody. welcome back. i'm louisa bojesen. these are your headlines. coca-cola looking to jolt its earnings as it picks up ads 2 billion stake in monster beverage. alibaba's ipo could be in for a bumpy ride as trading is sent into potential accounting irregular layerties. and european foreign ministers

holding emergency talks on ukraine in iraq. now, the japanese prime minister shinzo abe did not join senior government firls at the kasuni war. the move still anchored south korea and china who blame jo pan. china's foreign minister issued a statement opposed to putin's offerings for the temple. the first papal trip to asia since 1999 while celebrating mass at the nation's world cup stadium urging facebook to be aware of the you inials to

papalcism. now, alibaba has delayed results and suspended trading citing possible accounting irregular layerties as its e-commerce giant prepares for the one of the largest ipos in history. eunice yoon, please update viewers on the latest in chase they're joining us now. >> the issue is that there is a film or a film arm of ali baba it's accounting for some

regularities. alley bay bay has been on an aggressive acquisition trail. it is in a stake for 7800 million, as well. now, what happened when alibaba made this deal is that they decided to put in place their own management. so the company has new management and the company's management had looked over the books and found that there were some accounting problems. what they had said was accounting issues that weren't particularly compliant that they wanted to sift through. now they said they need some time to investigate the matter further. and so that could delay their first half earnings as well as

suspend the stock for quite some time. now, there's been a lot of scrutiny on alibaba, especially its due diligence process. and this calls into question alibaba's judgment many people who are wondering exactly what it's up to in new york. >> eunice. coming up, the foreign affairs minister please in raush ya. a foot's fo

. hi, everybody. welcome back. i'm louisa bojesen this is "worldwide exchange." uk renewable energy sources produced record high electricity in the recent quarter. with power generation up by 43% over the previous year. the government data comes in the same week that germany also reported record renewables use. the meeting almost 30% of total power demand. welcome, ian. >> thank you. >> still with us is cnbc contributor donald luskin.

also let's talk for a second about renewables and about green. what are you looking at for investment opportunities at the moment? >> i think we're very interested in renewables at the moment. energy security is a topical theme. renewable energy is source, domesticate. it's getting cheaper and cheaper. and the suppliers, the large kms now storing the equipment, robust and stronger than they've ever been before. meanwhile, the stocks are looking cheap. energy efficiency, as well. >> and you were saying pollution, asia or how to deal with prugz? >> i think. i think the nigh gragz means there's a lot more solution, pooeg people buying cars. there's obviously energy being consumed. we saw last year major smocks in

china. donald, come on in. >> ian, i have a question for you. here in the u.s., billions of capital dollars have been thrown away, they've all failed and the economics aren't there. it's a great thing as a citizen to want these things. it's another thing as an investor to be able to invest in technologies for which there are viable markets at a price. tell me, what do you do? how do you separate your wish from a green future from the reality of having to make investment concerns in two areas? >> we are focusing in on two areas. there are many companies, lots of unquoted companies around the world that are buying cheap wind and solar power and storing it

in the market. the top line power is very strong. you have to look to see what the earnings per share potential is. >> how about naming me a couple of names. what do you like? tell us the story. >> well, i think it's very much to go for the best in class. we have used that for probably over a decade. it is the leading supplier of turbine equipment globally. it had a management team change in the last month. on the utah side, we are very interested in china at the moment. so there's a huge roomout of renewable energy through structures. a company called renewables. those are a couple of stocks that we've been taking positions in over the last few months.

>> share price goes. >> yeah. this is part of the reason that we exist as a firm, our job with our 28 professionals is to look under the hood of what's going on with these stocks, see whether the street is mispricing them. we got strong faith in the management team. >> if you have to invest and choose between solar, water or wind, which one would you choose? well, you're supposed to have a balance, so the answer is all three, but at the right price. at the moment, we're particularly interested in water. drought in california is a major issue right now. but it's a much longer problem in the u.s., the availability of fresh water approximately shale gas is calling for new water

supply in remote areas putting strain on the water supply populations down in the south and north. in china and emerging markets, many more people are looking for clean water. it's a global opportunity. >> ian, that you can very much for being with us, ian sims. and donald, thank you, as well, for being with us. donald loskin joining us cio of trend macro. we appreciate it. have a good weekend. we'll talk to you again. head over to our website. we're taking a look at the ten countries that could be hit hardest by climate change at cnbc.com. i can find the show e-mail on there. worldwide@cnbc.com. find us on twitter, @cnbcwex.

hi, everybody. welcome back. you're still watching "worldwide exchange." i'm louisa bojesen. monster beverage getting an energy boost as coke spend more than $2 billion to buy a stake in the country, jolting shares higher in after hours trade. shares in alibaba pictures suspended amid concerns of possible accounting irregular layerties as it prepares for one of the largest ipos in history. and a whale watching vessel, big investors like warren

buffett reveal which stocks they've been buying and selling over the past couple of months. officials inspect a russian aid convoy at the border of ukraine. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hi, everybody. welcome back. this is what we're looking at right now. ahead of the market open stateside, futures pointing slightly to the upside, if anything. a couple of points higher. we were called higher this morning in europe. we've been hanging on to these gains. we saw positive close for most of the markets yesterday despite the fact that we had a big drop. especially weakness seen in core europe. here today, we had confirmation for the uk second quarter gdp

print. that stands exactly at what the first estimate said on a quarter on quarter basis. revised slightly higher anticipating 3.2% growth year on year in the uk as opened to 3.1% growth seen previously. so how do you make money in the markets? this is what some of the experts have been telling us this morning. >> i think what is worth looking at is a strategy that's been around for decades. the expectations are low, but the valuations are also -- these are things like industrials, particularly in the u.s. where you have a manufacturing renaissance that's coming through very, very slowly. we're seeing domestic sectors in

russia, the oil and gas stocks very cheap, as well.. that's where we're keeping our money at the moment. >> you have some amazing data. you can look out like six or eight months. >> up 30% year-to-date. jcpenney reported a smaller second quarter loss, underscoring the turn around efforts. the company posted better than expected same-store sales on demand for home goods and jewelry. it's the first straight quarter of sales growth after two years of declines that resulted in the firing of ceo ron johnston and the return of former ceo mike ohman. jcpenney rising some 7% in after hours trade.

>> welcome to the show. what do you make of the jcpenney figures, first of all? >> we positive, louisa. p penney's selling more, losing less. very positive stabilization for penney. we would like to see them continue to lose less and ultimately make some money, but that's probably at least six, seven quarters away. >> i'm looking at the u.s. sales data that was published earlier this week. flat. flat as a pancake. what does that tell us about the consumer? >> apparel sales have been down six of the last 12 months. 2 consumer is being much more cautious and the u.s. spending rate is now 5.3%, the highest in over five years. so consumer continues to save

and will spend for value, but being very cautious. >> and, bert, when it comes to the leading elements we're looking at stateside, do you have preferences new no retail? which retailers are really doing well? >> louisa, it's like the uk. you've got john lewis with it's department store business in the uk doing very well. the other luxury department stores reporting good results. luxury is doing well in the u.s. and the u.s. is doing well, tiffany's is doing well. nordstrom, while they had an earnings lack of aappreciation with the trunk club acquisition, nordstrom sales were still up 6.2% last night. so luxury continues to be the place to be along with chain drug is also doing well. some of the food retailers like

kroger and costco doing well in category dominant, it's home depot because of the great leadership of frank blake. >> we were talking a lot about the white labeled brands here in the uk a while back and how they were doing very, very well especially off the back of the financial crisis. do you see that stateside, too, that either you're in luxury or you're in the lower end and that's where the market is opposed to the markets? louisa, you're completely correct. the middle market is really no -- man's point. the nordstrom rack stores up 18%. 4% on a like to like basis. and with white label or black and white or generic or private brand in this stateside doing

very well and as you see, the uk price and control labels are really the best brands or luxury on the high end with the better profit margins. >> thank you very much for getting up early and being with us. >> thank you. >> i know it's, what, 5:30 where you are? >> 5:37. but we're always up early, just like you are. >> yeah, i know. bert, thank you very much. taking a look at some of the other top stories today, a group of military vehicles has passed into eastern ukraine from russia. up to 23 armored personnel carriers crossed the border. meanwhile, russian trucks which the kremlin says is carrying aid

is currently come to a halt. a speaks person has indicated that russia cannot react unilaterally. >> when it comes to ukrainian situation, first of all, i would really hope that there is not any -- as a pretext. of course, they have to prepare another round of response as eu. >> eu foreign ministers have been discussing the situation in iraq, this after iraq's nuri al maliki decided to step down as prime minister. >> hire in brussels, european foreign minutesters are convening today for an emergency meeting on top of their agenda. it is the situation in iraq and

what dodd next here among european leaders. there is one option that we might find a common line on exporting weapons in order to arm up the kurds in iraq. but that is unlikely because sweden is said to be really against that. but we could see individual countries actually going down that path. france already is doing so. even germany for the first time in its history since the second word war could warm up to that option to export weapons into the crisis and an arm up, those kurds in iraq to fight the is militants. also on the table will be a potentially forming a group among various country he of the middle eastern countries to support the fight against the is militants.

also, they might discussion sanctions against those militants who have seized oil fields and a move, of course, to provent that they sell the oil to the western world and generate revenues. the arrivals have started already and we will get a formal press conference at 6:00 cet. now, the eu foreign ministers have been discussing the situation in iraq. annette filed a report already so we won't do that again. but instead, let's talk about the protests in the u.s. stateside, protests continue in

ferguson, over the shooting of unarmed teen mike brown. the police have been arresting protesters and journalists. they've been using tear gas and pepper spray to disperse crowds. president obama spoke out appealing for calm. >> let's remember that we're all part of one american family. we are united in common values and that includes believe and the quality under the law, basic right to order. now is the time for healing. now is the time for peace and calm on the streets of ferguson. now is the time for an open and transparent process to see that justice is done. coming up, coke makes a monster investment in energy drinks. will it play for monster beverage given investors' sugar high? on that, details coming up right

here on "worldwide exchange." developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business.

hi, everybody. i'm louisa bojesen. these are your headlines. coca-cola looking to jolt its earnings as it picks up ads 2 billion stake in monster beverage.

alibaba's ipo could be in for a bumpy ride following accounting ir reg layerties. and european foreign ministers holding emergency talks on ukraine and iraq. coca-cola gets a taste for energy drinks, snapping up a sizable stake in rival monster beverage. seema mody is no monster at all. she is the lovely girl at the cnbc headquarters. this deal could be big for them. >> definitely a very interesting deal, louisa. coke is buying a nearly 17% stake in energy drinkmaker monster beverage for more than $2.1 billion in cash. the transaction is expected to close late this year or in early 2015. coke gets the rights to two --

this deal includes full throttle and power play and will transfer additional brands such as sweet tea to coke. coke has the option to increase its stake to 25%. now, in a conference call, the ceo declined to comment on whether he would by more or all of monster which has lon been the subject of takeover rumors. for coke, the deal is an opportunity to expand its presence in the manager drinks tore a $27 billion global market. monster t leader of a 42% share. last month, the company said second quarter renew was flights. interesting. consumers opt for bottled water, juice and caffeinated drinks. now, earlier this year, coke moved further out of its comfort

zone buying a 10% stake in single serve coffeemaker green mountain for $1.25 billion. in may, it said it would increase that holding to 16%. monster jumped 2 2% in after hours trade. monster beverage and coca-cola are both higher on the day. do you drink these energy drinks? >> i don't. i'm a very natural, straight up water, my own juice kind of person. >> i love it. well, you happen, but you do you drink these drinks? i have br, but i am with you. i love my kale and banana sweet juice. >> although tu add cale, you have to idea. cale is really -- the thing is,

lots of people drinks these and they do give you a boost. >> i think a little push never hurt. >> seema, thank you very much. we'll talk soon again. bill ackman was -- the u.s. government over the bailout terms. the suit claims that short change from investors in company's common stock. alibaba's film production arm has delayed results and suspended trading citing possible accounting irregular layerties. this as its e-commerce giant prepares for one of the largest ipos in history. in june, the company was acquired for $800 million and

claims any problems with the books occurred before takeover. could this cast doubt over the company's due diligence process as it's done on a recent spending free. how are investors going to be positioning themselves heading into the weekend and made of the flx week.

hi, everybody. welcome back. stateside, july ppi is out at 8:30 a.m. producer time. forecasts are expected to rise

by 0.92%. just before 10:00 is the first report on august consumer sentiment. one notable earnings report today, notable, estee louder. u.s. futures a couple of points to the upside, if anything. >> an s.e.c. filing shoet berk hire hathway took a new stable in the chatter communications group until the second quarter while paring holdings in directv and starz. berkshire is reporting higher stakes in gm, ibm, verizon and walmart and lower stakes in conco philips and liberty media. checking some of those shares today, most of them trading in quite positive territory in germany? carl eye can took more than

a 6% but david einhorn sold around 2 million shares of am in the second quarter. the company has long been one of his biggest holings. you can those shares right there. you got up very early michael to be with us. what do you think of the markets at the moment? do you trade them? what are you waiting for? >> the first is this precipitous

drop in crude oil. crude oil is surprising most, and i don't think it's just a squeeze that is going on and for the same reason. everyone behind me has been talking a while about this ten-year yield and basically getting to 240 and trading a little below, it seems as though there's been a back draft. the u.s. pound against the u.s. dollar, today it bounced on the 2 hup day moving average. if we see more, that could l a big change and that could mean or where to go next. let's just say that, you know, inflation, at least the word starts coming up.

then all of a sudden the market is going to have to take a deep breather on the treasury side and especially in the ten-year in particular. things are anemic globally as you saw where the ten-year bund is right now. that's probably going to be a lot of talk right now is because does this coordinated intervention and .does it stop? are we in between? right now, at least global equities have been the leaders far too long. so right now, at least, i think we're going to keep an eye on what's being said next week. >> with regard to fed policy, do you think markets will be ready?

higher from that 99 level, you're starting to see the way futures contracts predict where rates are going. clearly, the bank of england is well ahead of the fed right now, i think, at least to see that. you know, for the fed to start talking about it going into the fourth quarter is healthy for the market. and that is the kind of direction the markets are looking for. actual glemtation, i think we're at least two quarters away from that. we're going to need something show to show up for that. full steam ahead. >> it might be a good thing. >> it might. >> michael, thank you very much for getting up so early. again. i know it's super early for you. have a good weekend when it rolls around, michael gurka. thank you for all of your kind

tweets. it's been lovely hearing from you. on monday here on "worldwide exchange," closing bell coming up a bit later.

good morning. a late breaking deal between a giant and a monster. coke taking a stake in energy drinkmaker monster beverage. developing overnight, that russian convoy of more than 250 trucks full of humanitarian aid has reached ukraine's border as reports surface that russian military vehicles have been seen heading into the country. and don't look now, but activist investor carl icahn is

at it again today. so we brought in scott wapner. who else? it's friday, august 15th, 2014, the 45th anniversary of woodstock. "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. happy friday. i'm becky quick along with joe kernen and scott wapner in today. andrew ross sorkin is on vacation. we're going to have a lot of cuts throughout the show. first let's get to the morning's top stories. wall street waking up to green arrows this morning after stocks closed at august highs yesterday. u.s. equity future at this hour look like they are indicated quite a bit higher. dow futures futures up more than 52 points above fair value. we're going to check