sfwhoo good morning, everybody. welcome. you are now watching "worldwide exchange." i'm louisa bojesen and these are your headlines from around the world. investor eyeing a rare meeting between the presidents of russia and ukraine. chances of a break through, throw, are slim. wptc's net profits rise by 30% despite political headwinds and geopolitical tensions. the ceo warns russian sanctions will dent future sales. >> the eurozone worries of last

year are being replaced. i think a very geopolitical issue, russia and the sanctions are probably a preimminent one. french president hollande scrambling to avoid a new crisis with the new proreform government amid criticism that his economic policy res quote/unquote absurd. and amazon outmaneuvering google and yahoo!. the $1 billion deal being its largest acquisition to date. >> you're watching "worldwide exchange," bringing you business news from around the globe. hi, everybody. good morning. glass you're with us.

we have a lot to talk about over the next few hours. ukraine's president poroshenko has called for elections to happen at the end of october. the announcement was largely expected after the government coalition collapsed back in july. the ukrainian leader saying he hopes the vote will clear out the old guard. meanwhile, fighting continues around downtsk. the ukrainian army said it intercepted ten tanks and two armored vehicles disguised as rebel forces. moscow has denied these claims, though. this comes ahead of today's crunch talks taking place between the president putin and petro poroshenko. attila is with us. good morning. >> good morning. >> the talks today between the

president, vladimir putin and petro poroshenko, how do you think it is going to sound? >> it is not going to be very -- on either side. the meetings that they've had in person have been very frustrating. the issues as they unfolded in the past couple of days are unlikely to make for a pleasant conversation. >> what do you think the dissolution of the ukrainian parliament will mean? what will happen now? >> in the first place, this is one of the key electoral policies of poroshenko. the government has over 200 members from the former president. this was one of the problems in the functioning of the parliament. it is not going to set a large operation of the executive. and it is going to have very little impact on the military operations. >> but the new parliament, we think, is going to be pro eu? >> indeed.

it is going to be a very segmented parliament, but it is going to be the most progressive parliament that ukraine has ever had. the polls suggest over 75% of the parliament should be from the parties that have declared their ambitions to join the eu. >> how much support do you think there is for the russian argument? the russian argument out of ukraine. is the pro russian side potentially underestimated? >> i think this should be a little more qualified. ukrainian population is usually divided among those that have more -- and those that have more pro russian views. but it doesn't mean that it's the same share of the population that will be separated of our current russian actions in even ukraine. it is more so that the culture is more of an economic agreement. right now, that section of the population is, a, confused and doesn't have too many choices who to vote for.

right now we are expecting 20% or 25%. this is before the local policy leaders from the single number opportunities and ukraine. >> you mentioned at the beginning of our conversation that you think that the talks are going to be quite frosty, as we've seen in the past, unfortunately. isn't it in the interest, though, of both of them, to speed this up a bit and find some type of a solution both for economic reasons and they have a whole bunch of reasons why they would want to somehow find a solution? >> well, the problem here is that position of the two parties is falling apart right now. they form a sustainable basis for any cease-fire or longer term peace talks. whereas russia is looking for the situation in even ukraine and having to be politically rich over the government in

kiev. looking into the confliction before the elections come. it could back fire on the russian -- before the election. if this goes wrong, if there are incidents regarding the cease-fire that was there before, it's very advance, very -- manage on those forces, this could send elections down in the polls. >> otilla, thank you very much for being with us. >> all right. just glancing at our european markets now, a couple of points lower yesterday despite the fact

that we were looking at the ft. if it is players being out for a bank holiday. we're looking to see gains across the board on our european markets. but the stoxx europe 600 very flat at the moment as seen here on the stoxx 600 charts. let's move on and show you what's taking place on some of the main cross rates out there with regards to our currency markets. euro/dollar, very flat. 11.32, just shy of 11.32. it really is just about the central bankers this week into next week's meeting for the ecb officials and with regard to mr. draghi's comments over the weekend, the market definitely taking their lines from what draghi had to say. sounding a lot more dovish than what he has in the past. the dollar/yen, a couple points lower right now. the aussie/dollar looking very flat. cable looking flat, as well. the bond markets, this is where it's been interesting as we continue to push lower. on yields, indeed.

that story is holding very much in taktd with the prices moving higher, as you can see. and that's definitely been an unfolding trend. we've seen the main indices heading higher with the s&p going through 2000 for the first time ever in yesterday's session, closing light of that. but u.s. markets in general hitting these new highs, shedding a little bit of ground in afternoon trade in asia. european markets this morning, flattish to slightly mixed. the ftse 100 has faded, playing catchup on what we saw yesterday, a little bit higher this morning. xetra dax, cac and the ftse mib all trending a little bit lower. wpp has unveiled a 11.5% rise in its first half profits over last year coming in just above forecasts. the group continued to see a negative impact from the strong pound, but they also -- the forecast for sales, operating margins. earlier here on cnbc, ceo sir

martin sorrell gave his outlook for russian businesses in light of russian sanctions. >> the eurozone worries of last year being replaced by the geopolitical worries. i think of those geopolitical issues, russia and the sanctions are probably the preimminent one. we'll see the impact of that as we move into the back end of the year. >> and as mentioned with the s&p having gone through that 2000 level for the first time, what do you think it indicates? does it change anything for you? do you read anything into it? can it keep going? has it gone too far, too fast maybe? let us know what you think about the current levels we're seeing on equity markets. find us on twitter and you can find us -- what's the twitter address? @cnbcwex is the twitter address. find us on e-mail, worldwide@cnbc.com. find me directly on twitter, as well, spp spp@louisabojesen.

al is with us from nico management. al, what do you think these lofty levels are indicating? >> for the s&p, you mean? >> for the s&p and for global markets. we're still seeing pretty solid runs. >> yeah, sure. it's a function of a rising tide has lifted all votes. so at the moment, i look after asset allocation type vehicles, i look after multi asset. it tends to be quite a difficult time with liquidity pushing prices high, it's hard to find valuation being terribly attractive. so we are seeing areas that we do like. >> what's your key investment theme these days? i think our key investment probably centers around desynchronization of global asset prices and global growth. we're seeing some countries now quite advanced in the recovery cycle so we're getting close to

tightening. so there's real desin crow nighzation. we expect certain asset markets to do well and certain asset markets to do poorly. >> like what, for example? what's going to do well and what's going to do poorly? >> our most favorite market is japan. japan is going through what is essentially a large monetary experiment. we're constructive about japan equities. we think japan equities for three key reasons. firstly, the policies are profitable. the polls that have been supported for assets in japan, the government has a fairley strong mandate to put those policies in place. the key reason is that there's a real hope and optimism in the japanese community. inflation at the end of the day is an emotional response and

there does seem to be the notion to move on from the days when you expected the price to go down to the inflag that may be pending. so rate hike is constructive on japanese equities. >> how about japanese debt and general sovereign debt, as well? i know you think european and japanese government bonds look expensive right now. we're see jgbs, though, riding on the back of the rally that we're seeing in our european sovereign debt markets at the moment and some appointing to the yield being able to head even lower than what we're seeing now. >> yes. and that's the sort of flip side of the desynchronization. so there's certain markets where it looks like equities will do well. you probably expect their bonds to do quite poorly. we're not terribly constructive on japanese government debt. european government debt becomes more tricky, i think. german debt is expensive, as we sort of believe and as you sort

of just articulated. but peripheral debt that we are probably more concerned with in europe. germany probably has the capacity to be able to keep purchasing bonds. but the periphery are more concerned about. we're not as constructive there. >> do you think we're still in this kind of solid recovery cycle that we thought we were in or are we going to have to revisit some pretty big uncertainties if we indeed see more ecb stimulus bumped into our european markets and also if we were to see the data becoming even weaker? >> yeah. i mean, that's part of the desynchronization. i think you're exactly right. we continue to revisit these imbalances in the countries that are further tightening. there's a lot of play at the moment with europe potentially falling into deflation. we're not particularly constructive on european

equities. we think the stroke looks a little optimist ig, particularly given that potential to move into deflation. so i think you're right. there is an issue around those imbalances. this desynchronization means there will be pockets of growth and pockets of nongrowth. ecb action at the end of the day, qe, if it ends up transpiring, qe can help a liquidity probably, be can't help the demand problem. for europe, the big issue at the moment is the demand problem. and then that's the key reason we're not terribly constructive on european equities. >> al, thank you very much for your time. thanks for being with us, our global head of multi asset nico asset management. you can find us on e-mail, worldwide@cnbc.com. the e-mail address is on screen right now, right below me. find us on twitter @louisabojesen. we would like to know what you think the levels indicate. not closing above that level,

but having gone through it. is it anything in particular for you yb do you think we've gone too far too fast? and is europe behind everybody else in this recovery? let us know. find us on twitter or find us on e-mail. here on today's show, break iin b bad, we'll get details from the red carpet later on. and california dreaming, aren't we all, of a safer smartphone environment? the golden state becomes the first state to require a new phone to have a so-called kill switch to render them useless if lost or stolen. we investigate the implications for the industry. and amazon booking its largest deal of the year as it acquires twitch. how big of a win is this for amazon? you're watching "worldwide exchange" auto this tuesday morning. see you in a second.

the french prime minister is set to unveil a new proreform government today after a verbal attack from the economy

minutester prompted him to hand in the resignation of the administration. speaking yesterday, he said he would not seek a role in the restructured government. >> translator: it is with pride the work i have done and with a sense of responsibility that i have indicated to the prime minister this afternoon that if he believes i am wrong in my beliefs against the policy of this government, in this case, i find it necessary to take back any freedom if he so desires. >> stephane pedrazzi is outside the palace. he's with us in france all day long. stephane, just for viewers who might not have been following closely yesterday as we were speaking last night about this, what does the reshuffle mean? >> actually, it's the proof of geopolitical crisis in the government. he has lost the support from the extreme left of the socialist party. the economic policy, including 40 billion euros, reduction for

businesses and 50 billion euros in spending cuts over the next few years. what are the implications for france but also for europe? were going to discuss it with the professor of political science. thank you very much for being with us. how deep do you think is the crisis? >> the crisis certainly exists, but i wouldn't exaggerate its debt. tomorrow there will be a new government in france. francois hollande will remain president. in a few months time and probably the next three years until 2017 francois hollande will remain president. the next few weeks will be but at some stage there will away vote of confidence in the government and the parliament. i would expect at the present time the government to survive this vote because it would be hard to imagine the renegade left and socialist mps voting against the government because in this case hollande would be forced to dissolve the government, cause new elections.

suffer a catastrophic loss and hollande would be righted with a majority in the parliament. >> do you think hollande today has an alternative, a left wick policies and the first prime minister quite something more eccentric? >> what's the outcome of today? >> you can't really change course now and remain credible. so i would expect them to persist on the present course and try very hard to persuade the other countries in the eurozone and the european central bank and notably germany to present france with a more fiscal policy. plus perhaps increase public spending, public investment to try and stimulate more growth and more rapidly. >> what other risks at the european level? >> well, the risk, of course, and the present conflict in the french government, the risk is that france is actually immobilized by a growing conflict over the direction of european policy and france is rolling in the eurozone and of

germany. clearly, hollande and -- want to try to persuade germany behind closed doors to say the central bank to shift and change fiscal and monetary policy in the eurozone, whereas they want to confront germany and the central bank and other eurozones about this more openly. it's a tactic that beneath it contains a major issue, a major conflict over the direction of french european policy. >> what about the french political -- in case of a dissolution of the national assembly, we all know that the extreme right will form a lot of seats. do you think the french crisis is adventure today? >> no, i don't think french democracy is in daenger at all. it is true if there were elections in the next few months or the next year in france, that they would emerge greatly strengthened from them. i would be surprised if it was a substantial number.

i would expect it to be a right wing majority in the parliament and, therefore, a government of the moderate right led by a moderate right prime minister. >> thank you for your comments and for your analyzing of the situation. coming of course, next, the announcement of the french government. there's no time, no schedule has been given, but we're expecting an announcement in the afternoon with the new minister. >> stephane, we'll see you a bit later on for more discussion on france. thank you very much. austria's finance minister has suddenly quit in a row over tax reforms. he served as vice chancellor and leader of the people's party has faced an internal revolt over his refusal to cut taxes that can't be financed without new levees. warren buffett, who is reportedly going to be helping to finance the burger king takeover of canadian coffee and doughnut change tim horton's, "the wall street journal" is saying buffett will be

performing in terms of preferred shares. the deal could be valued in terms of more than $10 million. burger king and tim horton's in trade, we'll get that up for you in the next couple of minutes. it's been three months, though, since the u.s. family room ma group, pfizer, failed in its attempts to buy astrazeneca for $54.2 billion pounds. the takeover rules says astrazeneca has invited the group to make a follow-up offer or pfizer can make one fresh take it or leave it offer in private. catherine joins me on set. first of all, do we think there's going to be a follow-up bid? >> i think off bad, yes, the market is expecting there is likely to be a further pfizer bid, but that's not likely to be until probably after that november 26th deadline which is when pfizer can come back with a

public offer to astrazeneca. before then, astrazeneca management would have to be willing to engage with pfizer, and that would come after quite a lot of pressure from shareholders. they seem to be wanting to give astrazeneca management bigwigel room to try to prove the best case for business is to keep on going by itself. but, of course, there's the option that pfizer may come back with a further private bid and, of course, if that is a substantial premium to the 55 pines per share that they probably offered, which astrazeneca management has indicated might manage the -- and that could, of course, be a different question. from the pfizer perspective, they're lickly to be until after the midterm results this year. we see which way the winds of change might blow in terms of tax invasion structures in the u.s. >> yeah, yeah. and that's precisely the point, right? it's not just them, either.

we're looking at other potential deals, as well, with regard to tim horton's deal, too. you have a federal corporate tax rate of 15%. the government is looking for all provinces to get some 10% for a combined 25% tax rate when it comes to the possible burger king/tim horton's merger. tax inversions, how do we go from here given that we don't know what the outcome with with the ncos? >> we're quite with a lot of companies taking part. they're taking over in these deals are putting in the -- so if you look at the share of the deal, which which has been agreed, that if that doesn't go ahead, they've got a $500 million break in there. it's a real factor to try and make sure this deal happens wlb tax inversions are still as attractive or not. another thing that's interesting is a country what would never have fought over tax havens are

suddenly becoming popular, like canada, the uk, uponco, they've got switzerland. the tax ra seem is so messed up that companies are looking to have to go to more and more extreme rates against nontraditional tax havens to find those savings. >> it might be one off for canada if it keeps going like this. catherine, thank you very much. we'll talk a bit later, as well. find us on e-mail, as usual. find us on twitter. worldwide@cnbc.com. @louisabowyjesen is my direct twitter. what do you think about the tax inversions? let us know what you think. still to come, russia and ukrainian ministers face off. what are the market implications? we'll cross live to moscow to find out.

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hello, everybody. welcome back.

chances of a break through between russia and ukraine are slim as kiev accuses moscow of sending soldiers across the boarder. >> wpp rising ahead of geopolitical tensions. but the ceo of the world's largist advertising group warnings russian sanctions will dent future sales. >> eurozone worries of last year are being replaced by the geopolitical worries. of various geopolitical issues, russia and the sanctions are probably the preimminent one. we'll see the impact of that as we move towards the back end of the year. french president francois hollande scrambling to avoid a political crisis with a new proreform government expected to be unveiled later. it's amyself criticism that economic policies are quote/unquote absurd. amazon clenches a video platforming twitch. the $1 billion deal marks the internet giant's largest acquisition to date.

hi, everybody. yes, just get something breaking news here on our wires. and breaking data. and you've got the uk gmi bba mortgage approvals for house purchases up by 11.8% on the year. mortgage lending, plus 0.82 billion pounds sterling in july versus june's 1.12 billion pounds. which basically means that we're looking at the lowest net lending since january. so july net mortgage lending, plus 0.82 billion. that's the lowest lending rate seen since january. so just be aware that that's just hitting our wires right now. you're looking at sterling against the greenback just trailing off a tad. we've seen relatively flattish trade in all of our cross currencies. that continues to be the name of the game.

when it comes to the u.s. european markets, u.s. markets shedding ground in afternoon trade yesterday, having gone through some significant levels when looking at the s&p 500, for example. above 2,000 for the first time ever. asia dipping into the red in the overnight sessions. this is what we're seeing here in europe this morning. flat to a little higher for most of these markets this morning. when it comes to the bond markets, we see a pressure on yields with yields decisively moving south. the german ten-year moving 0.94%. so continuing to see buying taking place in europe's sovereign bond markets. ukraine's president poroshenko has called parliamentary elections for the end of october. the announcement was largely expecting after the governing coalition collapsed during july and the ukrainian leader saying he hopes the vote will clear out the old guard who he accuses of supporting the old guard.

russia is saying a group of service men captured by ukrainian troops crossed the border by mistake. moscow has denied the claim. this comes ahead of today's crunch talks between president vladimir putin and petra poroshenko. mattia, thanks for being with us today. i would be interested first in your thoughts about what you anticipate could come out of the meeting between the presidents in minsk. >> well, i would say it would be a big surprise if some break through did happen. however, it could possibly build roads towards a cease-fire or a settlement. this has gone on far too long and i think the people are sufg

in the eastern ukraine and it would be good to get the solution. >> i would asking one of my previous guests, isn't it in both their interesting to find a solution, both in looking at the humanitarian costs but also at the economic costs? >> absolutely. i think, like i said, it's gone on far too long. the damage to the russian economy is not that tight yet but, of course, it continues for a long time. it can be damaging. i think ukraine, of course, is suffering a loss from the disorder and i think also maybe there are a lot of people in eu particularly who are very interested in seeing some type of -- after all, the eu and particularly germany are back stopping their ukrainian government and the longer this contact goes on, the more costly it will be for eu to bail them out. >> how much pressure do you think that angela merkel directly has put on poroshenko? >> i think we've seen various --

interpret to us as fairley significant pressure. poroshenko is resisting as having a more decentralized form of government which, of course, germany has itself. so spending germany's money too void a form of government that germany already has is a little bit weird. and i would think that some of the -- from the ukrainian government have been a little bit over the top lately. and i think everybody thinks in stopping those utilities. >> you're in moscow. what are you hearing from a business perspective? what are people talking about? what would they like to see happen? >> the business community is very tired of this contact and feel that it was unnecessary from the beginning to have it. most of our contacts are not suffering directly from it yet. it makes stock prices lower than

they should be and i think there is some pressure here in russia also to try to find a solution. and the solutions are there to be found. it's just difficult political -- to follow for the most part. >> do you think that the risk of a reescalation looking at what's taking place in the ukraine at the moment? >> i think there is always some risk of events. of course we didn't anticipate the air tragedy that happened earlier. on the other hand, i think morale on all sides is fairley low and i think they probably want to avoid a further escalation. i think the -- trying to find a solution is not easy, but the solutions are there, like i said. >> mathias, thank you for being with us. moving from russia and ukraine to scotland. the first minutester made a comeback in last night's

televised debate after finishing second previously to alistair darling. they sparred over the nhs and welfare reforms. the currency issue reared its head again as darling pressed salmond on whether they would be able to keep the pound if the country chooses to split from the union. >> i think the currency union would be bad for scott legion because our budget would have to be decided and approved not by us, but by what would then be a foreign country because that's what happens in the eurozone. every country has to send in its budget for approval and it wouldn't be good for the rest of the uk, either. if we don't have a currency union, what's plan b? now, i had no luck three weeks ago when i kept asking him what plan b is. more likely, he doesn't think it's within a likely answer. it's not a matter for us to examine what the alternative is.

it's -- >> the model, i'd like to know because i don't want to be using somebody else's currency with no central bank, rotten public services. if it is the euro, i don't want that, either. and as for a separate scottish currency, we saw what happens when people get a separate currency and -- the basis -- >> i want to know what plan b is.. so do you. >> the options include three plan bs for the price of one. >> it's a -- >> you expect one and then three. you've got three plan bs tonight. >> okay. hang on. i'd like to -- >> it's -- >> well of the scottish people. if people back that plan to keep sterling in a sensible part of the union, will be as a democrat accept that as a role of the

scottish people, if you accept this referendum, i'll accept the -- do you accept the sovereign role of the scottish people and back the european union? >> i have always said in a referendum, you accept the outcome. but i happen to think, and so do al of people in this country, that a currency union of the sort you're proposing is the second best option for scotland. the pound/sterling only works if you have an economic and a political union that -- >> i want to talk about -- >> whew. a little heated there. heated. jeff writes in and he says on twitter, scottland votes to be independent and has gnaw currency, will they call it bra braveheart? >> i doubt it. keep your tweets coming through directly on the show. or the show address, as well, @cnbcwex. japanese traditional

sachimakers. they're expanding. t toshika. >> japanese sake exports grew to $50 million for the first half of this year, hitting a new error. the growth will boost sales. the drink is becoming popular in southeast asia. making new products especially fort overseas markets. the international markets is crucial for their future growth as the domestic market is shrinking. the taxable shrinking volume of the beverage in japan declined about 4% last year. they're targeting the rich younger crowds in southeast asia. for example, sake brewing started exporting products to indonesia in june where a 1.8 liter bottle with go for skvps

$800, about eight times higher than the domestic price. google has a new version of its products. it is primarily send to upscale restaurants in the philippines. the number of staff dealing with exports has been boosted. back to you. >> thank you very much for that. now, if ever there was a story, this is it. it costs $10. it contains at least half a pounds of meats and cheeses. head on to cnbc.com to read about how a marketing poster by the fast food giant arby's has turned into reality with customers now able to order the pictured sandwich, which includes chicken tenders, roast turkey, angus steak, bacon. you can see this is the sandwich.

they've actually decided to make this sandwich and people are actually buying it. unbelievable, huh? if this is something thauld want to eat, it has chicken, turkey -- how about some fish? spaghetti in there, as well, while we're at it. maybe a little marmalade. still to come here on the show, breaking bad. rode off into the sunset this past year not before picking up a couple of awards at the emmys. the winners and losers from hollywood, coming up next. [ woman ] the cadillac summer collection is here. ♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this 2014 ats for around $299 a month. hurry in -- this exceptional offer ends soon.

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welcome back, everybody. amazon strikes a deal to buy switch for more than $70 million in cash. it's the largest purchase in amazon's 20-year history. going sxl yahoo! have reportedly been interested in buying the company. twitch has one of the most popular channels on youtube. it had 55 million unique visitors in july most of whom went on the site to watch others play games. i've never thought about that. i've never done that. have you? california's governor jerry brown has signed a bill

requiring smartphones to come with a kill switch, rendering the device useless if it's lost or stolen. this makes california the fist u.s. state to do so. the law goes into effect next july. smartphone theft accounts for more than half of all sthefts in san francisco and other cities in california. and the emmy awards honored television's best shows and performs mon night. there was a familiar ring to the list of winners. stephanie wraps it all up for us from los angeles. >> breaking bad. the emmy sent breaking bad out on a high note monday night. >> thank you so much for this -- this wonderful farewell. >> that extended the series aaron paul and anna gahn who won best supporting actors. and brian star. >> i can only say that i have gratitude for everything that

has happened. >> the one major drama honor breaking bad didn't get went to juliana margulies for "the good life." >> what a wonderful time for women on television. >> it was a wonderful night for other previous winners. the star of the "big bang theory i" won second best actor for a comedy a third time while it was sealed with an extended chris from brian cranston, her former comedy star. >> yeah, yeah, i was on seinfeld, yeah. modern family has been a big, beautiful dream and we thank you for not waking us up. >> the sense of deja vu extended to the amazing race which won best comedy come timp. but even as wins were celebra celebrated --

>> -- >> was remembered with billy crystal's tribute to robin williams. >> it's very hard to talk about him in the past because he was so present in all of our lives. >> it was a poignant farewell on a memorable night. >> the academy paid tribute to other artists would passed away this year, including phillip seymour hoffman, james garner and sid seamer. i'm stephanie stanton, nbc news. >> i still can't get over that kiss that came out of nowhere. it's been a big earnings day for uk this morning. uk oil services giant petrofac. the group maintained its forecast and held on to its dividend at 22 cents per share. it's lower by 3.5%.

posting a near 12% drop in first half profits, which was below forecasts. higher production costs and lower copper prices hurt results. earlier on cnbc, the ceo gave us his outlook for future productions. >> next year, we could have a surplus eventually 300 been 400,000. but from then on, supply/demand will be quite high. then we are cautious on the short-term and we are very optimistic on the medium and long-term. on the upside, shares are getting a boost after the supplies are getting a -- citing strong growth in markets outside of britain. the ceo michael rooney telling "squawk box" here that future acquisitions are not off the cards. >> opportunities for acquisitions are very strong. we're in, you know, all the major countries of continental europe and we have a good

pipeline. so if it is, say, a bit of malaise and slow down in europe, we're looking for an opportunity to buy more companies. >> and wpp also getting a boost, powered by just over 1.5% after this advertising giant unveiled a 1.5% raise in first half profits, coming in just above forecasts. earlier here on the show, ceo sir martin sorrell gave us his outlook for wpp's russian business in light of western sanctions. >> through zone worries of last year have been replaced by the geopolitical worries. and i think of those geopolitical issues, russia and the sanctions have probably the preimminent one. and we'll see the impact of that as we move into the back end of the year. we've seen a number of ceos come out publicly requesting negotiations on the sanctions and some resolution of the issues around the sanctions. and that will start to have an impact. in our own case, russia is about 2.5%, 3% of our revenues.

on the small side, ukraine even smaller. but in the first half, and they ask you a question, the direct answer is packaged goods companies examine small value packaged goods and consumer goods companies have been strong in russia, despite the sanctions, despite the -- what's been happening to the russian ruble which means that imports, obviously, are much more expensive for manufacturers there. now, china shares trading sharply lower ahead of the release of its interim results. the weakening yuan versus the u.s. dollar is set to weigh on earnings. also, another headwind for the carrier on the mainland is the increase of military exercises seen in china causing delays and cancellations of domestic flights. joining us on the line from sydney is oliver lamb, managing director at avon pacific aviation consulting. oliver, good to have you with us. what do you expect first of all from the numbers? >> yeah, good morning, louisa.

it's going to be an interesting day for china. it's been a surprisingly challenging year for the carriers this year. two of the big things that have happened have been the surprised weakening of the chinese won and the military exercises in eastern china. surprisingly for a country with big headlines. >> how would you describe or what's the chinese airline environment like as a whole? >> one of the big factors of the chinese airline environment is that all the major chinese carriers are highly leveraged. their debt is denominated in u.s. dollars, which means when this is a depreciation in the chinese won, all the debt repayments go up. not only that, but their fuel payments are actually dictated in u.s. dollar terms. again, once the chinese won weak weakens, they can have a financial impact on the bottom line. in the case of china, they also face a third challenge, which is

a lot of the chinese carriers are growing. but they're not in the same position to grow due to their position in beijing. so it's going to be an interesting year ahead for china. i think they're going to get into shape in the end of it. but right now, it's in a perfect storm of conditions. >> are they in a position to expand their international network? >> absolutely. they're getting some great new impact to help them lower their fuel costs and help alleviate some of they are pressures from the u.s. dollar as well as getting some aircraft that will open up some new markets. it will both open up next markets as well as reduce the fuel costs. >> you talk about the impact of the eureka yuan. how much of an impact do you think that we'll see in the numbers? >> so back in july, we saw a downgrade. i think you would expect the

final results to come out tomorrow will probably be in line with those numbers. i still do expect a profit, but i expect it will be significantly lower than what was forecast this time last year. >> oliver, thanks for being with us. oliver lamb, managing director aviation consulting group. malaysia airlines is reportedly set to cut a quarter of its workforce. management is due to discuss the layoffs when it means with cabin staff today. the talks are expected to give a glimpse into the airline's restructuring process, including the search for a new ceo. dow jones says the carrier could look to cut flights to china in a bid to reduce costs. it has been looking to cut costs even before the disappearance of flight 217 and the shooting down of mh-17. contess airways in australia, they're allowing passengers to use smartphones

and tablets throughout flights, this after australia's civil aviation authority relaxed the ban of electronic devices on planes. the decision follows a similar ruling by the u.s. federal aviation administration back in 2013. i don't know whether i think that's good or bad. if you need to make a call, if you want to see your messages, i guess it's a good thing. on the other hand, the last thing i want to hear is somebody talking to their mother right next to me for a full seven hours. anyway, what do you think? let us know. we've been asking you this morning, with the s&p having gone through 2000, what does that indicate to you, if anything? does it mean there's more to come? jeff says he is less concerned about specific market numbers than in getting the unemployed back to work. he thinks that's really where the focus should be. keep your responses coming in by e-mail. worldwide@cnbc.com. find us on twitter, @cnbcwex or directly to me @louisabojesen is

my twitter handle. looking at another e-mail from morris, he says we need to get more technical analysis, especially in these markets, and more of your writing in with regards to whether or not you think that market can continue to move higher. most of you do, incidentally. coming, warren buffett is hungry for a deal with reports suggesting the business magnet could be helping to finance burger king's takeover of tim horton. we've got more details in a second. plus, some market players have been quick to declare the start of a long-term bear run for bonds. our next guest says he doesn't buy the hype. find out why. all of that coming up here on "worldwide exchange."

hi, everybody. welcome back. you're still watching "worldwide exchange." i'm louisa bojesen. these are your headlines from around the world. investors eyes a close above the s&p 500, a meeting between the presidents of russia and ukraine weighing on sentiment here in europe. amazon outman you'ving google and yahoo! to clench video streaming program twitch.

and the stars are out in new york as st emmy awards took place last night. and if you are just tuning in, well, welcome, everybody. as i just sachet over here, i'm at the wrong side of the wall. that happens. by this is what we're looking at when it comes to where our u.s. markets potentially could be opening. we've got some, what, 4 1/2 hours to go before that time of day. and we're looking at some very flat calls at the moment in the u.s. but the real crucial element is whether or not markets continue to move higher. seemingly, that's the mode that they're in. the npc could be closer than ever to helping the markets to

open its toolbox. the next meeting takes place on the 4th of september. that's helping to support markets here in europe. the dollar cross rates right now, we've got the euro/dollar, just shy of 1.32 at the moment. dollar/yen, just a tad bit lower. the aussie/dollar against the greenback flattish and you've got the pound against the dollar tables, trading right around 1.6570 right now. another bigger trend has been yields continuing to push south when it comes to fixed income trading. the ten-year bund now federally below 1%. that seems to have been the new level that's been cleared. and we're now sitting tight below the 1% level that we cleared here a couple weeks back. we're still hanging on to that level. treasury yield shy of 2.4%.

but it's really down to what the fed's next moves on and what the ecb's markets are, too. recapping what we're seeing, probably mixed markets right now, flat to mixed. the ftse and mib trading a little higher. no trade yesterday due to a bank holiday. maybe a bit of a capture happening on the uk holiday. given that we saw markets closing out in positive territory here yesterday. let's talk about some of the specific stories out there. wpp unnel invalid a 1.5% rise in first half profits coming in just above first half forecasts. does it defend its forecast for sales operating margins? earlier here, martin soaring give us his outlook for wpp's russian business in height of the western sanctions. >> the eurozone worries of last year being replaced by the geopolitical worries. i think of those geopolitical issues, russia and the sanctions are probably the preimminent

one. you'll see the impact of that as we move into the back end of the year. and we were just talking about what's coming up stateside. let's give you a look at what's on the agenda. july durable goods out at 8:30 a.m. eastern time. forecast to rise 7.5%. at 9:00 a.m., we get the latest s&p case-shiller home price index, expected to rise. at 10:00 a.m., it's the august consumer confidence data. it's expected to slip more than two points from last month. and when it comes to earnings of electronics retailer best buy reports results before the opening bell. after the close, analog devices, the gunmaker smith & wesson and tivo, among others. back to our main story, which has to do with geopolitics, russia's president vladimir putin and the ukrainian president poroshenko are due to

hold a rare meeting in minsk today. the ukrainian army said it intercepted ten tanks and two armored vehicles which were disguised as rebel forces. head of global investment solutions at ubs global asset management is joining us here. hi, curt. >> hi, louisa. >> how do you put markets together at the moment and how closely are you looking at the constantly unfolding geopolitical scenarios which seemingly are there for the longer item term? >> yeah. what's amazing too late of investors is that the markets keep rallying in the face of the crisis in the ukraine and the crisis in the middle east. i think a large part of that has to do with the monetary policy which has been so accommodative around the world. i think we're closer to seeing the u.s. and the u.s. start to tighten their accumulation, but it's probably going to have to

go further and start xwlemth quantitative eedzing to stimulate the economies here. >> which means what? how long can we keep looking at the move that the central bank potentially could do with more support as being a good thing as opposed to it being a bad thing because we're so much farther behind the recovery scenario? >> well, i think any move that the ecb makes is good for europe. the reality says a lot of political constraints the ecb has to deal with that the other central banks don't have to deal with. draghi is caught between the politics, if you will, of europe and the fact that it's still not a perfect monetary union and the more aggressive behavior of the fed and the bank of england. >> i read your latest research. you say there are three factors which you expect will keep bond yields lower for longer. what are they? >> well, the reality is that bonds like any other asset have a supply and demand dynamic to them. right now, there's a lot of structural reasons for long-term or at least a medium term demand for bonds. when i mean medium term, i'm

talking five or ten years. if you think about it, we have an aging demographic in the west and japan is sort of the architectural example of that. but as people get older, they need more income and fixed income provides that income. similarly, in the u.s., we have this liability driven investment sort of push, which is what the regulators are forcing to find benefit schemes. this is about 2.4 billion in liabilities. and the corporate long dated corporate bond markets only about 60% of the total and there's only about 150 billion new bonds issued every year. so there's a big mismatch between supply and demand. if you look at the uk market has an example, that forced index blinkers down to ridiculously low levels. you have negative low yields for a very long period of time. but i mean, at what point do bonds stop being attractive simply because the yields are moving lower? >> for investors, you're argue

they're not attractive now. but a lot of these people buying bonds aren't buying because they're attractive investments. they're buying either for income reasons or because they're diffusing liability and are driven by regulation. these are sort of uneconomic investors and they're being forced into the market typically at the long end. >> and how much lower do you think the german ten-year can go? is it going to stabilize? >> you would think already current yields. germany is a pretty strong economy. there's no reason it should have yields this low. but the reality is it's surrounded by weaker economies and by geopolitical concerns which i think is causing a safe haven bid. it wouldn't surprise me to see yields continue to grind lower. yields in the u.s. started the year in the ten-year about 70 basis points higher than they are now and this is despite the fact that we're ever closer to the federationing rates. >> interesting. we're keeping you with us. so get involved. get your questions, if you have any questions on fixed income

markets or anything else, as well. i mean, again, you're saying that he expects that bond yields are going to be kept lower for longer. do you agree with this? let us know. also, we've been asking this morning with the s&p having gone through 2000, what does that indicate to you, if anything? do you think we'll move higher? do you think we're going to plateau? where are we heading? find us on e-mail, worldwide@cnbc.com. find us on twitter. tweet me directly. all kinds of afs. does it mean anything significant to you that the s&p 500 has broken the 2000 level? >> i think financial repression is working. the fed is pushing everybody into riskier assets. stocks are the obvious place for that and its driving valuations higher. u.s. stocks are pretty fully valued here. and i think the reason people are investing them is because pretty much everything else looks unattractive. there's a turn of phrase we're using called tina, which is there is no alternative but equities.

and i think it's forcing a lot of investors to climb into the market. t.i.n.a., brilliant. maybe there is an alternative here. warren buffett will reportedly help finance burger king's takeover of canadian coffee and doughnut chain tim horton's. buffett will be investing in the form of preferred shares. berkshire is expected to provide 25% of the financing of the deal which could be valued at more than $10 billion. it's been three months incidentally, also, since the u.s. pharma group pfizer failed in its attempts to buy uk rival astrazeneca just shy of $70 billion pounds. the uk takeover panel will say that astrazeneca is now permtd to invite the group to make a follow-up offer or pfizer could make one fresh take it or leave it offer in private.

catherine joins us. are they going to bid again, catherine? we are talking about it last hour. >> of course that's the $100 billion question. it looks like there's not much action like tim negligent play. you'd either have to have astrazeneca inviting pfizer back to the table themselves, and that seems unlikely given that management has been very, very clear that they wish to try and keep this company independent and also there doesn't seem to have been that much pressure from shareholders for them to go back to pfizer, although there was a little bit of disappointment that talks weren't pursued as far as they otherwise might have been. and pfizer comes back with a private offer but that could potentially mean, of course, that they might be have to have a surprise a little further than they want to with that access to astrazeneca's books and, of course, clarity as to what might happen with with regards to tax inversion regulations in the

u.s. post november 26th, pfizer can come back to the table publicly. >> how about canada compared to the euro with regards to the whole tax issue? >> canada, as we were talking about earlier, along with uk is juan of those countries which a few years ago wouldn't have seemed like a tax haven, but compared to the u.s., it is. that's quite the kpmg. we've seen a shift in the way companies are looking at tax globally which, of course, is something the oecd is concerned about. >> catherine, thank you very much for being with us. catherine boyles is covering the tax inversion, a heated topic now, and the potential for maybe another bid on the table, pfizer having attempted once for

astrazene astrazeneca. maybe they'll do it again. dish network is petitions the s.e.c. to block the time warner cable merger. the satellite company saying the deal would cause irreparable harm to competition and consumers mostly in the area of broadband video and online video programming. dish, comcast and time warner on the screen for you. comcast outperforming slightly. at&t has reportedly reached a deal with anti-trust regulators for its $48 billion for directv. at&t has agreed to unspecified conditions from the just department. the deal is expected to get approval from the justice department and the s.e.c. sometime during the first quarter of next year. and as we head into break, why not leave you with a look at the s&p 500. breaking through that 2000 mark

yesterday. where is it heading today? what does it indicate to you, incidentally? can it keep going? has it gone too far too fast? does it mean anything specific? are markets going to move higher in the u.s. and lower here in europe? let us know. share your thoughts. find us on e-mail, worldwide az cnbc.com. @cnbcwex on twitter.

hi, everybody. welcome back. i'm louisa bojesen. threatening to pass the 2000 level. amazon buying twitch for $1 billion. and warren buffett is helping burger king to lower up, reportedly financing its deal with tim horton's. stephane pedrazzi is outside the pallis for us. we were discussing earlier what governmental changes mean. recap some of the main points

for viewers just joining us. >> it's more than just a conflict between the prime minister and the economy minister. it's more -- we're expecting a geopolitical crisis within the socialist party since francois hollande confirmed last year giving $40 billion euros in tax reductions. the left wing of the socialist party is rejecting the policy, including the former economic mipster, the education minutester and the french minutester. three people who are going to lead the government team. they will not be part of the next cabinet. each minister confirmed yesterday that they will not be part of the next government team that will be announced later today here at the palace in the center of paris. on top of the economic crisis, francois hollande is now facing a political crisis with the party earlier this year and the

divorce would be the communists the extreme left political party. they also suffered a decline in ratings and the decision to organize a government reshuffle. it's probably the last move trying to regain confidence within the french political landscape. so we'll see later today who will be the next new minister as the ones that are going to replace the economic minutester and also the education minister. we are expecting an announcement later in the afternoon. no exact schedule has been given for the time being. >> stephane, thank you very much

approximately y i like the way you were talking to your last guest about we know everything seemingly is going to fall into place, but i guess we have a lot of questions with regard to market questions, but that's seemingly separate from the politics of the time being, stephane. >> it looks like francois hollande doesn't have any other options for the time being. france is not in a position to request anything more from its european partners. >> you know, we just lost stephane, as you just saw there. stephane, if you can still hear me, we'll cross back on you to you later on. moving from france to italy, italy has sold 3 billion euro worth of august paper. secure ago new record low two-year funding cost at this auction. still to come here on the program, it's game over for amazon and yahoo! as amazon

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hi, everybody. welcome back. i'm louisa bojesen. you're looking at an implied open stateside in calm of hours, very flat, huh? very flat. that's what we saw in our european markets too this morning and that's seemingly what we're going to get stateside, as well. we've got some data points out, house price data and the durable goods orders no doubt will be two of the big to watch out for today. amazon striking a deal to buy twitch, a streaming video game platform for $970 million in catch. it's the largest purchase in amazon's 20-year history. google and yahoo! have reportedly been interested in buying the company. twitch, launched three years ago, as one of the most popular channel owes youtube. twitch let's users message players and others.

have you gone online to watch people play video games? and i think i'm past that generation. >> me, too. kirk, we were just talking about the differences you see here and in the states. you spent many years in london, you're now back in the states. what's your sense of the recovery and how far we are away from each other. >> i think the u.s. benefited from having a consolidated environment. in europe, you saw these independent states and the they have different credit ratinges and borrowing costs. and the reason you had to have austerity was because the credibility was at the state level, never at the pan european level. germany today has been unwilling to lend out to the peripheral states. you sort of have this problem. i think draghi is caught between a rock and a hard place. quantitative easing is probably the right thing to do, but it's hugely politically charged. whose bonds do you buy? it can look quickly like you're

trying to bail out one country versus another country, etcetera. that's something i think he's loath to enter into. >> do you think europe is going to stay together? >> yeah. ultimately, i think the political will is greater than the markets in this case. but i think fundamentally they're going to have to change the political structure. you're going to need to have a more unifying structure that goes beyond the banking union and goes towards a shared value, if you will, the values of europe. >> kirk, given that you're here visiting from the states this time around, just take a look at this. it costs $10, it contains at least half a pound of meats and cheeses. find out more about this on the cnbc.com website. read about how a marketing post by fast food giant arby's has turned into reality with customers now able to purchase the pictured sandwich which includes roast beef, angus steak, bacon. we were looking at this thinking they're missing the fish and the pasta, as well.

>> cheese. >> yeah. head online and see more about that. curt, thank you very much for coming in to visit with us from ubs global asset management. coming up, let's talk a little bit more about what's on the show. breaking bad, it rode off into the sunset this past year not before picking up more than a few awards at the emmys. a wrap up of the big winners and losers from hollywood. up next, strategy for you, as well. keep your e-mails and tweets coming through, as well. @louisabojesen.

hi, everybody. welcome back. i'm louisa bojesen. investors eyeing a close potentially above 2,000 for the s&p 500. a meeting of minsk between the presidents of russia and the ukraine are weighing on europe. amazon won the bid for twitch. moving on were warren buffett reportedly set to help finance burger king's takeover

of tim horton's amid anger in washington over another inversion deal. hollywood lonered its top shows as the emmy awards took place. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. hi, everybody. welcome back. i'm just tucking in my tail. capman whoa in and he said tell louisa she has a tail. let's call her cat woman or it's because i can't figure out how to tuck in my microphone and my hearing devices properly. there we go. hope that pleases you now, catman. if you are just tuning in, thanks for joining us. we have half an hour to go yet on "worldwide exchange." just glancing at what the u.s. futures are telling us, we're called fairley flat across the board. yesterday, the noteworthy levels for the s&p 500 was 2000.

we went above 2000 and then we dropped back a little bit in later trade for the u.s. in the s&p 500. so we didn't manage to close above 2000. no doubt, a lot of people have been looking at that level today. here in europe, we were called slightly mixed and that's what we've seen on our european markets this morning. the ftse, 67el 88. it was off on a bank holiday yesterday. all of you lucky people dancing out in the rain, as it were, yesterday celebrating a bank holiday. the xetra dax, cac 40, ftse mib all trading just a little bit lower. how, though, do you make money in these markets? this is what some of the experts have been telling us throughout the morning. >> a big u.s. dollar cross, we're seeing this in the opposite direction. dollar going up, euro going down, the call for most of the markets for us, we like that trend.

>> from a long-term point of view, mexico looks very good. we have low -- in mexico, around 65% compared to 30% in peru or 70% chile. >> the market at the moment is japan. so we've been talking about that desin crow nighzation. japan is going through what is essentially a large monetary experiment. so ratewise, constructive about japan equities. >> always helpful to take a look at what's on the agenda. big ticket items forecast to rise by 0.7%.

prices here expected to rise 8.2% in june on the case-shiller home price index. at 10:00 a.m., it's the august consumer confidence data which hits the wires. it's expected to slip more than two points from last month. on the earnings front, the bottom of your screen, the bottom of the charts, you've got the electronics retailer best buy, after the bell we'll hear from analog devices, smith & wesson and tivo. john silva is managing director and chief economist at wells fargo. john, good to see you. good early morning to you. >> thank you. >> what are you looking at today? >> well, i think the numbers you highlighted are key. because what we're focused in on is more moderation in terms of consumer confidence. home prices moderating, and you saw the new home sales numbers yesterday. we're not as strong as people had expected.

so you do have economic growth, but it's not that kind of accelerating growth that would give people lots of confidence. >> the labor markets, we still need to see a full recovery or a more full recovery in the labor market. how long is it going to take, do you think? >> well, i think in terms of the business cycle, cyclical employment, probably another year or so. and we'll be below the 6% unemployment rate. but as janet yellen talked about in jackson hole, one of the problems is the structural unemployment, louisa. a lot of problem with the wrong skills and the wrong location, that persistent unemployment remains a problem in the u.s. that's a long-term maybe three to five to seven-year work out for a lot of people. >> then we take place at what's taking place in europe and suddenly it looks great. >> yeah. >> how far away do you think that the u.s. or the european recovery is from the u.s.

recovery? >> i was thinking of the year and a half or two. i like the discussion where if we look at the european cpi consumer price in numbers, if we even look at the japanese inflation numbers, these numbers are hovering around 1% or less. that tells me that there's still that impetus to get the ecb to do a little bit more all the time. but you're still a long away from that economic recovery. you throw in russia and the ukraine, it twaets a lot of difficult for people to look at the long-term when you have this short-term market. >> let me ask you something about the debt markets. this comes from jason who writes in from west africa. he says, how can we trust bond valuations or the price of risk reflected by relative yields when spanish and french ten-year bonds obtain lower yields that their u.s. and singaporean counterparts and italian gilt is

lower than uk yield? >> this is a classic problem. i agree very much with the sentiment and the question. the challenge is, even when you look at the u.s., so much of u.s. treasury debt is bought by china, japan and the u.s. central bank. and you don't really have the kind of free market in terms of treasury rates that you had, let's say, ten, 20 years ago. it is very difficult to device a benchmark for financing any kind of references. so i agree very much with the sentiment. you've got to have the high level and skepticism in terms of as the federal reserve cuts back in terms of its purchase in treasury, what is in the fact the free market price? >> john, it's been lovely talking to you. incidentally, i have 61.8%, saying do you have a rough time with putin and poroshenko

meeting today? yeah, we do. it's tough to follow what they're doing. can you follow up with what global leaders are doing at the moment, james? >> we have to, no doubt about that. but we sort of guess, we sort of look, we decide strategy. what is the long-term goal for many different political leaders out past the globe and try to think about it long-term. >> yeah, i agree. aaron tweets in and he says, john, gm. and then he says i'm told that means good morning in internet talk and not general motors. >> yes. >> john, thank you very much for being with us. >> thank you, louisa. >> enjoy the rest of your "m" and we'll speak "s." it has been three months since pfizer failed in its attempts to buy uk rival astrazeneca for just shy of 70

billion pounds. takeover rules says astrazeneca is now able to invite the group to make another offer or pfizer could make a takeover buffett in private. "the wall street journal" is saying buffett will provide around 25% for the deal which could be valued at more than $10 billion. and jeff tweets in on this story saying that he doesn't buy goods or services that don't pay taxes, including that he adds he thinks that burger king will go out of business for this move. gracious. let us mow your thoughts on these deals or on anything else. many of you commenting on my microphone pack this morning. glad that you're watching. but it's just a microphone. i have a microphone on and i'm wearing an ear piece, as well.

dish network is petitions the fcc to block the pending comcast/time warner cable merger. the satellite fairfield is saying the deal would cause irreparable harm. dish says it would be more evident in online prarchling. and at&t has reportedly reached a tentative deal with anti-trust regulators for its $40 billion bid for at&t. the deal is expected to get approval from the justice department and the fcc sometime during q1, the first quarter of next year. coming up, amazon has a twitch. the online retailer is getting into the video games business in a big way. coming up straight after the break. good morning, everybody. you're watching "worldwide

exchange."

good mortgage, everybody. welcome back. a meeting between russia and ukrainian leaders threatens to pass through that psychological

2,000 level. amazon picks up its game snatching twitch for $1 billion. and reportedly finance ago deal with fortune. video games are turning into the new spectator sport. courtney reagan is at the cnbc headquarters with all the details. courtney, i can't believe people are logging on to watch somebody else play video games. have you done that? >> i know. it's kind of funny. when i was a kid, i wasn't allowed to play video games with my brother because i wasn't good enough so i had to watch. so i guess i did it then. but amazon is buying twitch, a streaming video game platform for $970 million in cash as it looks to expand its presence in gaming. the biggest online shoe retailer

zappers in 2009. twitch, launched three years ago, has millions of visitors who like we were talking about watch other people play games. it generates heavy knew from ads and subscribers who pay a few dollars a month to watch. twitch has one of the most popular channels on youtube. twitch had more than 55 million unique visitors last month. networkers depthfield says it's the fourth largest stores of internet traffic. in a statement, the ceo of amazon says we look forward to learning from them and helping them more even faster to build new services for the gaming community. the retail giant's deep pockets and expertise would help pursue its goals more quickly. amazon has been making a push into game iing and bought game

developer double heel yix in february. it offers an optional game controller for its fire set tv box. it also has an app. twitch game as a side project of justin tv.com. twitch raised $20 million in fining next year. we can take a look at shares of amazon and see how they're trading at reaction to this move. it looks like they're up about 0.4%. it's very early, louisa, 0.4% right now. >> don't worry, it's later here and i'm still all over the place. okay. courtney, thanks a lot. i was reminiscing and thinking back, have i ever watched anybody played video games? i really never have. i like watching people playing

trivial pursuit. but anyway -- >> the emmy awards honored television's best shows and performances monday night. and there was a familiar ring to the list of winners. nbc's stephanie stanton wraps it all up for us in las vegas. >> the emmys sent breaking bad out on a high note last night. >> thank you very much for this. >> that stoneded the series aaron paul and anna guard. >> and breaking bad star would won -- >> i can only say that i ever written major honor they didn't get. juliana margelise. >> it was a can you feel night

for women on television. >> it was a wonderful night for jim parsons. it's sealed with an extended kiss from brian cranston. >> yeah, he was on seinfeld, yeah. >> meanwhile, the reigning champ tied a record with its fifth straight win. >> "modern family" has been a big, beautiful dream and we thank you for not waking us up. >> the sense of deja vu extended to the amazing race which won best reality competition for the tenth time. and the colbert reports which made it back to back victory for best variety series. but even as wins were celebrated -- >> he made it -- >> others were remembered with billy crystal's tribute to robin williams. >> it's very hard to talk about him in the past because he was so appreciate in all of lives. >> it was a poignant farewell

the on a memorable night. the academy paid tribute to other artists, who passed away this year. >> at the emmys, i'm stephanie assistanton, nbc news. the surprise kegs. did you see it? bruce tweets in and says the u.s. would still pay a tax on u.s. ink. the problem is the law encourages such a move. the judge learned hands. we're talking about burger king potentially buying tim horton and that that could have some beneficial tax implications for them. mg coup, despite trading at a record high, our next guest warns they should worry about mice risks.

welcome back to "worldwide exchange." u.s. futures indicating a flattish open stateside. once markets come on to tap in 3 1/2 hours or so. so that's what we're looking at just off the back of the s&p having hit 2000 in yesterday's session for the first time ever. it did close below that mark, however, at, what, 1,997, which marks its 29th record close this year. matthew mccormick is a principal and portfolio manager and he joins us. matthew, hi, good morning. what do you make of u.s. market levels? >> it's been very resilient, louisa, and it keeps going up higher and higher until it stops. the main area of concern that i have is when you look since

after 2011 was a very difficult year, since early 2012. the story stocks, companies with high pes, without dividends, which i would argue questionable fundamentals have driven this market higher. and i get nervous when you see a very narrow niche portion of the market that has extreme valuations driving the markets on a low volume area. and i think it will work until it doesn't and i think the areas, if there is more volatility, these companies are high pes will likely be source of funds. and i think that's the area where if i was investing in these names, i would look to take profits in them, as well. >> matthew tweets in and says my stock portfolio is full of m&a targets. i have yet to get a lucky pop. we have asset pop man saying it's possible for now, possible resistance at 2032 and one saying why aren't the company allocating capital towards a robust of new businesses eyeing

the 21st century. which is an interesting point. how do we project forward the new era of the economy? >> those are some great points. you know, when you look at inversions that are going on, i think it has to look at this from a political situation. here in the states. there's nothing that's going to be done until after november and i think in looking forward, and trying to project infrastructure, other ideas that could propel the market or economy higher, they're on hold until you say politicians relax these issues. when you look at a tax policy that is cumbersome, ceos and even warren buffett are going to seek these avenues out. when you look at what i like, i like companies that can grow their earnings and dividends, regardless of the economic environment, that have strong balance sheets. these are companies that work

regardless of market cycle, and these are the areas that i think offer better valuations, better feds and i think are going to work better when volatility picks up. politics will be with us always. and i think when you look at the situations here, i like companies where i can put on their fundamentals and not whether they're going to be in or out of bill favor. >> you mentioned apple, johnson and johnson, qualcomm. @only18powers says earn a dollar, pay a dime for all. he talks about how more congressional debt abuse is not a solution. it's still the problem. budget incomes pay off debts. he also says markets get up to defend our cause, we mutt get up earlier. >> i think when you look -- when you look at all the debt that the u.s. has occurred through

the fed, you look at all this concern, a very small amount of tape erlg taking some assets off the fed's balance sheet, what is going to happen when they take the trillion out? i like companies that pay you to own and it's that simple. i think when you look at these companies, i like things that are not dependent upon the government or some type of liquidity event from the fed to succeed. you look at the companies that have been driving returns, they are the ultimate risk on trades, companies with triple digit pes. they work great. it's like my children who like to eat cotton candy. it tastes great, but it's not sustainable. there will be a crash. when that occurs, that's the area where i have the most concern. >> i love cotton candy, love it. >> you can't live off of it. i know, i happen. it's not fair. matthew, thank you very much. matthew mccormick joining us from bahl gaynor.

that's it for today's show. thank you for all your tweets and e-mails. what a beautiful shot. hong kong. see you tomorrow.

good morning and welcome to "squawk box." overnight, warren buffett could be ready to bank roll a king. now the legendary investor in the middle of the great tax debate. spending spree jeff bezos satisfying an itch. we aren't told where. amazon paying nearly $1 billion in cash for game company twitch, the biggest deal in the country's history. and right now pushan president putin and ukrainian

president poroshenko are getting ready to talk about the border crisis. it's tuesday, august 26th. happy birthday to my late mother, 2014. "squawk box" starts right now. >> good morning and welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin along with joe kernen and michelle caruso cabrera. becky is off this week. right now, right behind me, you can hear the "breaking bad" theme music play because brian cranston and amc drama bringing home a bunch of emmys last night. we're going to have a lot more on that coming up very shortly. i should tell you, this is warren buffett's favorite television drama. and the reason i mentioned warren buffett is because he is now helping finance burger king's