good morning to you. this is worldwide exchange. >> i'm carolyn roth these are your headlines from around the wold. >> a stormy annual meeting with a shuffle unlikely to appease major shareholders. >> the euro holds ground despite disappointing manufacturing pmi and china sees rally. >> workers before debters.

greece's finance minister says they will not prioritize payments. the u.s. steps up it's strategy against isis as militants secure a key area but king abdullah tells cnbc it's business as usual in the region. >> the iraqi government with coalition forces are going to open the route this summer and that's a very strong market that's going to be reopened. welcome to the show everyone. we've got some numbers for you in the form of euro zone pmis for the month of may. those are flash numbers for the manufacturing cite we have a print of 52.3. that's a little bit better than what was expected versus a print of 52 in the month of april. on the service side 53.3 and that is a tad lower than

forecast. let's have a look at how the euro dollar is fairing. we are currently at 11144. the german number was a bit of a disappointment. the french number was before. >> and the overall composite number coming in at 53.4. fractionally lower than expected and the manufacturing was stronger. the services a little weaker. >> we'll come back to instant reaction where agm is getting underway. it's expected to be a fairly heated meeting. >> deustche bank reshifted the

board overnight. they said the co-chief executive officer of asia pacific will also leave. we'll konltdcontinue to bring you flashes out of that agm. it's underway starting a couple of minutes ago. let's get reaction to the pmis we broke to you a few minutes ago. good morning to you. thank you for joining us. overall the pmi is still positive. still above 50 but just a little below expectations overall. >> yeah i'd say we're seeing here the euro zone economy a little bit from what we saw in the first quarter. but we shouldn't get too despondent. we're still seeing growth. we're still seeing growth in germany. we're still seeing the fastest growth in about 8 years outside the nations and we're seeing france starting to show signs of stabilizing. overall positive but not as positive as in previous months.

>> isn't it worrying for germany because we're seeing pmi's below expectations? france growing faster even though they're still below 50 on the manufacturing side. >> again, with germany for them because germany wants to see growth continuing but from the european perspective we have been hoping to see some of these other period countries catching up with germany. we're seeing some of those coming back strong. that could have a knock on effect elsewhere in the euro zone. we would hope we see that improve. the fact that it's a broad based manufacturing and services with sex ports not doing as strongly again. maybe a bit weak for germany. a bit disappointing for germany but again as long as other parts continue to pick up as well should be good. >> rob, of course the euro had been super weak. it now recovered some of that strong. of course it's not strong at the moment. will that start to impact the

numbers as we look into the next set of figures? >> it could. at the moment the disappointing thing is when exports aren't doing as well as what we would hope that's on the back of the weak euro. now euro starts to rise again. we could see some of those things such as exports starting to slow even more so. >> do these numbers at all account for a messy greek outcome? >> not yet. we are seeing some reports from some of the german providers that they're worried about economic uncertainties which could be recent change in legislation and also for grexit and other policy considerations. >> you'll stick around a little longer. how are the markets looking? >> we're a little bit soft as you can seement a little more red than green. yesterday it was green than red.

but let's remember it's been pretty positive for european equities. and that really stemmed on tuesday's rally off the back of the ecb comments that suggested bond buying could be picked up a little bit because of the rise in bond yields over the last couple of months. let's look at those individual forces and that tells the story of the weak because we're offsetting a bit of the gains earlier in the week. the ftse 100 is up. it had been lagging throughout the rest of the week and then as you can see continental europe as a whole just below flat. those pmis just below expectations but still relatively positive. let's look at bond rates. they have selected a little bit this weak as well. the ten year in germany having been above 0.7 last week and 0.6

earlier this week. 1.96 on the ten year in the u.k. worth mentioning that the minutes from the mpc yesterday were relatively hawkish where as the minutes from the fed were a little bit dovish suggesting a june rate hike. we'll discuss those in detail coming up on the show. a quick look at commodities, since mid march the oil prices enjoy a steady rally -- not steady volatile rally but nonetheless a rally. those have continued because the focus is on geo politics. more developments later in the show in syria and iraq. brent 65.3 up 0.4%. what's coming up next. >> we'll talk about david letterman. he takes his final vow. the late night legend departs after 33 years on the job with an all star line-up on set. we're asking viewers who your

dream guest would be. get in touch. have a think. a state of emergency for santa barbara county as crews scramble to clean up the worst oil spill in decades. we'll bring you the latest. >> plus cvs reportedly nears a $12 billion deal for omi care. details a head. don't want to miss it. we'll be back in two. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details.

welcome back. another key city has fallen to isis. it's been seized by the terrorist group falling intense fighting. they evacuated civilians towards strong holds in the west. meanwhile the u. s. is rethinking it's strategy after iraqi troops lost the city of ramadi earlier this week. washington will send 1,000 rockets to baghdad and step up the training of sunni tribal fighters. hadley, that seems like a pretty significant shift on part of the u.s. >> it does indeed. it speaks more in terms of the shift in terms of regional

policy over the year or so. it's what we saw with saudi arabia and the situation in yemen. they're happy to send weapons and give advice. and the prime minister the last time he was in washington he walked away pretty unhappy so he might be more optimistic now about the situation. i asked is jordan safe for investment? we're here at the dead sea. a thousand business men are gathering here. they want to reboot the economy and bring investors here. so i asked is the country safe and are we going to see an end to the crisis in iraq and syria? take a listen. >> i think we have a history over many decades of jordan always being stable throughout the region whatever the crises are and you have to remember with everything that's going on

around us jordan has done well. we've had growth over 3% over the last couple of years. we're expecting 4% over the next 2 or 3. our reserves in the central bank are the highest they have ever been and when we look at the region, you mention syria and iraq iraq has always been a very strong market for us and i believe that the iraqi government with the coalition forces are going to open the route between baghdad this summer. that's again a very strong market that's going to be reopened so those are coming to look to invest in jordan it's not just the traditional iraq market but we have the traditional market. we always looked beyond the region. it's not just looking at jordan. we have free trade agreements with the united states and with canada. mexico is coming online. it's the americas that has been

an area of interest. we have been very bullish about asia. so it's india and because of the development of the seaport city there's now a new move to look at the horn of africa and how do we develop the east african countries? so again there are opportunities that are coming up and people are knocking on jordan's door. >> in terms of the challenges here at home 20% of the population are refugees now and you also have a water crisis and you're dealing with the fact that you're a net energy importer. how are you tackling those problems? >> definitely the challenge for 20% of our population being refugees we do get a lot of sport for the international community. most people don't understand that 85% of the refugees are actually outside so that's a burden on the economy. almost 25% of the gdp is then a

burden that we have to take care oppenheim looking after the refugees and that does create a bit more of a challenge. however, how do we offset that? we have to move quickly and that's why you're seeing a major investment in alternative energy. >> serious challenges for the jordanian government. the king telling me that we'll do whatever it takes to ensure that the private sector has every opportunity they need here in jordan. carolyn carolyn. >> at the same time they're on the front line of the crisis stemming from isis advances. how are they dealing with that? >> it's incredible the capacity

of this country to take in refugees refugees. this is the largest camp in jordan and it's becoming semi permanent because as you said isis has made significant gains in syria. the people that we spoke to there were hopeful that at some point they'll be able to go home but at this point there doesn't seem to be any end in sight to the conflict in that country. it's really interesting, the human spirit can do amazing things. essentially what we saw in the camp where everyone from syria were gathered together. they made a semipermanent town they were calling the market area. we met a family of bakers that brought their business from syria and reestablished themselves. they were very grateful to his majesty king abdullah and the people for hosting them but they still want to go home.

>> thank you for that. >> now four years after the death of bin laden we're getting our closest look yet into his mind and book shelf. >> the u.s. government released a batch of documents taken from his hide out in pakistan. it contained everything to classic books like the rise and fall of great powers. some items have yet to be declassified with the office of the director of intelligence confirming they had a considerable quantity of pornography was also found among his possessions. >> let's get back to the deutsche bank agm that is underway. he says the public image suffered immensely. no kidding really. remember that $2.5 billion settlement. should be a very heated agm today as many advisory groups are urging shareholders not to

vote for the exoneration of deutsche bank management. >> shares did open with more power around. shares not doing too much. they're still flat. >> is it the public image they care about or the earnings in the roe. >> they do care about earnings. they do care about dividends and profits. >> exactly. >> more headlines to come from that as and when they come out of that conference. hewitt packard to unveil sweeping changes to its business in china. this includes it's data network operations. it's affiliated with the university and will reportedly buy a controlling stake in the unit called h3c technologies. they calm under fire following revelations the u.s. government secretly used their

infrastructure to collect sensitive data abroad. let's look at it in frankfurt. just about flat. >> lenovo is shy of expectations. it was weighed down by the 2.9 billion dollars buyout of motorola. they said pc sales rose citing europe as a potential bright spot for the year ahead. >> goldin group had more than 70% wiped off it's share price over the last week. golden financial and golden properties lost $22 billion in market cap with the company saying it wasn't aware of a reason for the share move. it follows a other50% plunge in yesterday's session. >> china stock at all time highs raising expectations that they'll step in with bolder measures to stimulate the

economy. it fell below forecast to 49.1. still with us is rob dobson. this reading coming in slightly below expectations. most importantly it's still below 50. three months in a row of manufacturing declining of being below 50. the stimulus measures are not really working. >> that seems to be the case. that would be something the chinese government are concerned about. we have seen something like six cuts in the last three months and these rntd managing to stimulate growth. also what we're seeing is more job losses in manufacturing and also exports not doing particularly well either. so a pretty weak set of numbers and stimulus measures rntd taking effect yet. >> if they're not, what will? we have so many cuts more are

expected when you listen to them but is that going to make a difference? >> it's difficult to say on that one. the big thing really hurting china is the slow down in the global economy is hitting their exports, effecting their manufacturers but the other thing we have been seeing in tandem is a greater slow down in the asia region. so basically it's the country that does a lot of its trade with and what we're seeing there is seeing a china having an impact onslowing those economies but conversely those economies demanding less in china which means they'll all slow simultaneously. >> i also want to quickly touch on the japanese manufacturing pmi yesterday. there's a lot of discussion as to whether yesterday's gdp data was positive or not. the number itself was high but there was some inventories inside of there. today's manufacturing pmi, was that better than expected. >> it came in.gov 50.

around the 50.9 mark and basically what we're seeing is a moderate recovery in japan and suggests they're still in the soft patch that we've seen on going since the sales tax rise about this time last year. so japan itself is also slowing and it's seeing a impasse to china in terms of the jobs and growth figures. the big thing for japan as well is we're seeing exports not doing as well. we see the global economy slowing and that's having a noticeable impact on global trade flows for asian economies. >> thank you for joining us this morning. rob dobson senior economist at market. >> chances of a fed rate hike in june now appears slim following the release of the minutes from the fomc meeting. officials were concerned about growth during the first quarter and only a few thought the economy would show enough strength to justify a rate move.

they had no good reason why consumer spending was so weak and most fed officials think the first quarter slow down is transitory and there will be a moderate rebound in the second quarter. wilf i looked at the note on the markets and on the fed minutes and they said they were as exciting as arsenal's strike force 45 minutes later. >> we have failed to score at home for three games in a row. >> that's bad. >> that's even of than i could expect. the only interesting thing we can discuss later is the fact that they were quite dovish where as the mpc and bank of england were quite hawkish yesterday. >> i don't think they were. i don't think they told us anything. i think what they told us is what the market had already discounted. so dovishness maybe but that was baked into the cake and was

the mpc hawkish yesterday? i'm not so sure. >> it was still 9-0 but they were suggesting inflation would pick up by the end of the year which is a continuation that just bringing forward rate rise expectations but of course they were further apart. they were converging to expect late this year. >> i think the discussion we're having right now is what the market is grappling with too. there's really no consensus. >> that's very true. let's stick broadly with this topic. the republicans want to see a bit more of janet yellen on capital hill. they want the fed chair to testify twice a week -- sorry, twice a year until the central bank has a vice chairman in supervision in place.

that's before both panels on monetary policy. >> the government agency is admitting problems with it's numbers and is promising changes over the next few months. in a statement to cnbc the bureau of economic analysis says it's acquire of issues in the gdp data. cnbc reported last month that first quarter number versus been weaker than the other three quarters of the past 30 years there's several sources of trouble. the agency says it will make revisions by july 30th but only going back three years. david letterman says good-bye signing off wednesday night. i asked the host of the late show letterman is the long serving late night talk show host on the air for 33 years on both nbc and cbs. he was ushered into retirement wednesday night with big named stars including alec baldwin,

bill murray and jerry seinfeld. he thanked his fans friends and coworkers. >> the last six weeks it's been crazy. people have been saying lovely things about us and it's really been over the top and i can't tell you how flattering embarrassing and gratifying it has all been. in light of o all of this praise merited or not, do me a favor and do me a favor, save a little for my funeral. i'd appreciate it. that's all i've got. the only thing have left to do for the last time on a television program, thank you and good night. >> what a legend there. now if you had your own late night chat show who would be your ideal guest? your ideal interview? let us know. our personal and handles are also on the screen. >> probably some athlete.

i don't know which one. i would want them to be honest and i don't want them to rehearse what they were going to say. >> okay. because with most of the actors they have thate script they're going to deliver. i want someone genuine. >> if this is a chat show you want someone cool someone glamorous, and someone serious. >> like me. >> i think i'd go for becks. big football fan and glamorous side taylor swift. >> yeah you're a big fan. >> but number one within the serious scope of things and i'd say her majesty the queen. nobody has ever interviewed her. she experienced so much and it would be a fascinating interview to do but she also eluded everyone. it's probably either she doesn't do one now. >> chances are slim you're going to get that. >> very slim but we have to be optimistic. that's what the question asks.

who would be your favorite interview if you were a chat show host. still to come a stellar month for sterling. could positive retail sales push cable even higher? we'll break those figures for you after this break. new york state is reinventing how we do business by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business it's so shiny. i know, mommy, but it's time to let the new kitchen get some sleep. if you want beautiful results, you know where to go - angie's list. now everyone can get highly rated service

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cost cuts are a top

priority. that's the view of the co ceo speaking now at a stormy annual shareholder meeting. deutsche's chairman says the bank's image has been damaged. >> the euro holds ground against the dollar. in china shares rally as they spur stimulus hopes. >> workers before debters. greece's finance minister says the country will not prioritize payments amid warning they'll default without furthered aid. >> the u.s. steps up it's strategy against isis as militants secure it following advances in iraq but king abdullah tells cnbc it's business as usual in the region. >> the iraqi government is going to open the route between aman baghdad this summer. it's a strong market that's

going to be reopened. >> we have more comments coming from the co-eco at the company's agm happening in frankfurt and he says that cost cuts are going to be a top priority in the coming years and also says that he's not satisfied with the cost cuts already achieved. remember that by 2020 the bank wants to cut around 3.5 billion euros. whether that's too ambitious, that's the question. we'll see. he also says the return on equity hasn't been satisfactory versus other banks. the target here is for around 10%. again whether that number is achievable some analysts are quite doubtful of that. >> let's break the u.k. retail sales data. the headline coming out that sales are stronger than expected as the sun brings out shoppers. monthly figures at 1.2%.

increase of 1.2% from march. the yearly number is plus 4.7%. this was down to a sharp increase in sales from a text styles and clothing and foot ware which is what people are linking to the weather factor. excluding fuel sales are up 1.6% in terms. >> that sterling dollar is jumping on the back of this. these numbers are really volatile and this was the month leading up to the election. this was a month also that was distorted by really good weather, remember the sunshine in april. >> absolutely. >> you need to take it with a grain of salt. >> you're very very right to say these retail sales were always very volatile but interesting to point out that we did see the sterling pound rally. it came off a little bit when

the gdp was on the back of offsetting some of that disappointment that the gdp figure was weaker than expected. >> maybe. >> so strong retail sales for the u.k. speaking of the u.k. let's look at the top stock movers in london. tesco shares are moving higher. the process of selling the company's south korean unit will begin in july. they have not commented on the report thus far. you can see up 1.3%. underlying full year profit. gains were capped as the children's brand said there is still much work to be done. you can see down 0.8% after reporting full year pretax profit of 400 million pounds. that's down from 1.6 billion last year as it was hit by exceptional charges. the u.k.'s leading postal service said conditions remain

challenge challenging. boosted by asset management and wealth management businesses. they also increased the full year dividend. he was asked about a currency probe. >> we don't know what it's about yet so at this point in time we'll have to see where it leads. it's hard to know what they're looking for. >> meantime a senior greek lawmaker warned the country will be unable to make its payment. in an interview, the spokesman said quote, now is the moment of truth. a 300 million euro payment is due on june 5th however officials talked down the chances of my deal being raged at a later summit. >> channel 4 news in the u.s.

last night reiterated that he would prioritize pensions and salaries over payments to the itf. >> we're out of the markets. greece doesn't have the capacity to borrow from private investors. we're perfectly capable of having a state that pays for its own salaries and own pensions that lives within it's means. what we can't do is to keep repaying our creditors when the dispersements from the creditors to us have seized more than 8 months now. those that seized the payments know that's the case. thus the metaphor i use. if we can repay the imf and pensions and salaries as well as the other obligations we shall. if not we will have to prioritize pensioner ins and public sector workers. >> and earlier, he talked about the possibility of a country

leaving the euro zone and returning at a later date. >> it is better to have a more flexible euro where someone can exit temporarily and return at a later point in time with this devaled currency rather than trying to impose the deval you wags internally. >> julia conducted that interview. it's a nice idea in theory but in practice it's never going to work. >> the mechanism isn't there and if we see one country leave the euro zone it leaves a bunch of countries pegged to the euro. that's the big fear here and we know from the german side even though we get a bit of a shift, he was asked yesterday whether he could rule out greece defaulting. he was asked that in 2012 if he could rule it out and he didn't. the talks are on going and still trying to make sides.

he was asked if he was going to cross the line i was asked whether or not he could reach a deal without crossing the red lines that he hedged. there's also the extension of the current extension to give them more time to negotiate. so all things on the table now talking about the high likelihood of capital controls. >> absolutely. really reiterating that it's running out. we have until june 5th. he wants to prioritize people at home. >> that makes sense as well. it's not considered default. it's considered a missed payments. they say it's not a credit so it makes sense. i think despite all the headlines that he's received he was more soft than the speaker of the greek parliament yesterday that said if we don't have a deal we're not paying

that amount of money. they probably could make that 5th of june payment but they'll struggle to make the one on the 12th. slightly larger than the 5th. >> they have been getting quite creative. julia thank you so much for that. moving from grexit to brexit the head of airbus is warning the company could cut investment in britain if they leave the european union after the referendum. he has discussed the possibility of a brexit at the highest levels in the company. prime minister david cameron promised a referendum by the end of 2017. >> meanwhile, president of the institute spoke to cnbc earlier and mentioned the importance of avoiding a brexit. >> really disaster if they left. they should reform the eu. we should take a positive approach and listen to him and

try to change things which he does not like. why not? >> that was quite an interesting take from abvously a prominent german to say he's in the right to try to renegotiate things. i don't know if that have l have residents with them but an interesting point of view don't you think? >> i do. it will resinate with them. there's enough sense on the german side to understand that things do need to change and they do need level of performance. just a question of how far they get pushed but the report i was talking about was a report suggesting that in the worst case scenario for the u.k. it could cost 14% of gdp leaving the eu. there's no way i think they could leave and not be able to negotiate a trade deal. >> obviously we mentioned that airbus point as well. there will be lots of businesses coming out saying it will be terrible for business if they leave. i don't think we'll vote to leave anyway but that aside even if we did vote to leave i do think that issue is overdone in

terms of the threat to business. going into the general election the pro europe voice from labor and the liberal democrats, there was a huge gap between them as to what would be the fall out. i think the truth is probably closer to what he was saying than what labor and the liberal democrats were saying. had scottland voted to leave last year i don't think you would have seen the u.k. say sorry you can't trade with us. you can't come in without a visa. it's not likely. >> do you think businesses are going to hang around and wait out the uncertainty while we decide actually what's going to be negotiated as far as that's concerned? >> yeah, i think they wait for the referendum and see the results and wait around for a month or two afterwards and see there's no trade we'll leave or yes there is trade. we'll stay. >> >> but i think the bottom line here and that's something we have talked to many about is the fact that many more u.k. companies have been very vocal about their political views.

that's very good and very strong. we saw that with the scottish referendum and we'll be seeing it this time around. you airbus and vodafone talking about the risk of a brexit. you have deutsche bank. >> let's hear from the banks here because it's the financial sector in the city of london in particular that cameron wants to protect. that's going to be a very difficult kultd one. so let's see so let's see what they say. >> it's a good thing to have this debate and we'll workout what is better for the u.k. >> it's worth having the reforms and the u.k. isn't alone on that. >> all right. we'll wrap it up here. we can take it off line. let's do a big brexit discussion. >> we do every day. >> still to come on the show as isis takes a historic city in syria, king abdullah ii speaks

to cnbc about the mounting refugee challenge. hadley joins us live from jordan after the break. stick around. before earning enough cash back from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or a bank of america near you.

as the world economic forum gets underway in jordan king

abdullah ii highlighted the refugee challenges his country faces with on going conflict right on its boarders. >> the challenge with 25% of the population being refugees. we do get a lot of sport for the international community. 85% of the refugees are not in the camps. they're actually outside. so that's a burden on the economy. almost 25% of the gdp is then a burden that we have to take care oppenheim looking after the refugees and that does create a bit more of a challenge. >> let's get back out to hadley that joins us now live from jordan. what were the other key takeaways from that interview? >> it was a really interesting conversation with his majesty because we didn't just talk about the challenges facing the jordanian economy, one of which is the influx of refugees from syria but we talked about opportunities in the ict space

and opportunities for the private sector. he is essentially ensuring entrepreneurs that he'll be able to give them cash to do what they want to do. he's trying to maintain and keep them in the country but also bring others back to jordan to give back and i asked him several questions about how this country is going to be competitive when you say why should you come to jordan versus dubia. tax rates competitive with those in london it's much better for the industrial sector. they have a 14% tax rate. we spoke earlier this week with some folks that own a factory here. they're an international provider of large scale ac units and were telling us as one of the largest private employees in this country it's easy to do business so it's a great place to be but i also want to talk about what the king said when talking about young people. he's concerned about preparing young people to be the leaders of tomorrow. >> we have the largest in

history coming on to the scene throughout the middle east. people looking for jobs. if we take one step back looking at the challenges in the middle east job creation of giving young people a future and hope is something i think the international community needs to realize as we're combatting the instability of the region the challenge of global terror. we have to have strong partners in the world. these young people need a faith in the future. we make sure that the safety that is already there and that we do give them that future that they need. now how do we multiply that. >> talking about that you get it right in jordan and he i inaugurated kings academy several years ago now. they have a huge international

student base. about 600 students and what he's trying to do there is to create the leaders of tomorrow and he's worried about these refugees. you have 82,000 alone. he's worried about a lost generation in the region, particularly when looking at countries like iraq and syria it will be important that these kid versus a future. >> absolutely. thank you for that. russia will not be welcome back until it's met. she said the on going tension with youukraine is the reason they were meeting without russia next month. russia's actions in ukraine were not compatible with freedom, democracy and the rule of law. >> jerry brown declared a state of emergency in santa barbara county in response to the huge oil spill taking place there.

crews are fanning out to clean up the biggest spill in 46 years. it says as much as 105,000 gallons of oil were spilled. five times more than initially thought. the company says the spill happened on tuesday after mechanical problems at two pump stations caused the pipeline to be shutdown. >> bp agreed to dismiss legal claims against haliburton related to the 2010 gulf oil spill. bp will compensate for legal fees that incurred and won't try to recover funds on the deepwater horizon break. a judge ruled bp was at fault for the accident and spill. they face a potential fine of up to $13.7 billion.

bp higher by 1%. >> now wti crude continues to rebound from a five day losing streak. this after a drop in weekly oil. you can see brent up 1% today. wti just below the 60 level. it's up 0.8%. joining us now. have we moved on as to the reason for that oil price rally since mid march? >> that's a great question. demand and now the data for it as well is showing a very very strong number now for the first quarter. it's mostly how strong demand has been in asia in particular so it almost feels like the

balances is taking place more from the demand side than supply side and so far we've only had the expectations of the fall. but the demand numbers are just phenomenal. >> is it fiscal demand or mack kro hedge fund demands? because they're thinking they're the ones responsible for that big run up in prices because essentially they want to hedge out the risk of rising yields and rising dollars. >> it's a combination. on the physical markets gasoline is phenomenally strong. last year it grew by 4%. this year in the first quarter close to 18 or 19% year on year. that's the sort of rebound that the lower prices sort of come given asian consumers and that has just helped refinery margins. they're at an 8 year high and

that's partly to do with how strong gasoline is and how consumers reacted to the prices. back to the investor side of things, this is very interesting to see at the moment because you see a divergence where as your merchants show that that it is increasing. so the actual fiscal players in the market, the oil producers are trying to hedge themselves out where they should be more positive because that's their line of business and you see more searching for yields as you just mentioned and also between equities, oil equities and crude oil in particular there's a valuation gap as well. >> has geo politics played a role as well? particularly in the last week? >> yeah, so it shows we are

still very vulnerable in key countries but if you look at the actual data iraq has been racing higher in terms of oil output despite isis having the key hold in ramadi. so we haven't had the geo political outage yet from isis and i think the market is waiting to watch in terms of getting an actual disruption and then we've had these libya, iraq issues for awhile now so that's baked into the price but that certainly helped as well. >> you guys say that the rally we have seen on oil prices that was a little premature. but where are prices essentially going to settle? they're coming up with a new shale band idea. being between 45 and $65. if we go above that there will be huge changes in production. do you believe in that?

>> yes, what we have been trying to say is the swiftness of this price move is what worries us. what we said is demand reacted very quickly because prices were in the 45 to $50 a bar real range. our fear is if we race higher we risk this phenomenal demand growth that we have seen especially when the economic growth is not that strong but we risk supply coming back into the market because a lot of these are saying our costs have gone down by 15 to 20% and a flattening cost with the enthusiasm of the u.s. producer tells us there about $60 barrel. >> if we settle here in this low price environment between 55 and $60 barrel that does help cradle demand and that's what we need at the moment. so overall not out of the woods

completely yet but this current price level can help balances going to next year where as we rebound and then we get softer the next year. >> all right. thank you so much for your time. and david letterman says goodbye signing off wednesday night as the host of the late show. he is the longest serving u.s. late night talk show host on the air for 33 years for nbc and cbs. it was ushered into retirement by big named stars. including alec baldwin, bill murray and jerry seinfeld. he thanked his friends, family and co-workers. >> the last six weeks it's been crazy. people have been saying lovely things about us and it's been over the top and i can't tell you how flattering embarrassing and congratulate identify it's all been. >> in light of all of this

praise, merited or not, do me a favor, save a little for my funeral. i'd appreciate it. that's pretty much all i've got. the only thing i have left to do for the last time on a television program. thank you and good night. >> remember to get in touch with us. we have been asking you who would be your ideal guest join us at cnbcwex. earlier i mentioned her majesty the queen. we'll add more names after the break. but included in that list is ubs's justin knight that joins us after the break to talk all the latest on markets. we'll be back here on worldwide exchange in just a couple of minutes.

welcome back to worldwide exchange. >> here are your headlines from around the world. >> the dollar in decline, the green back loses ground against the euro after a mixed bag of data in europe. u.s. futures indicated the lower open following fed minutes. >> the u.s. steps up it's fight against isis as militants secure a key city in syria but king abdullah ii tells cnbc it's business as usual in the region. >> the iraqi government with coalition forces are going to open the route this summer so that's again sort of a very

strong market. >> a healthy dose of mmn. they're to provide omicare for 12 murder in the second degree. >> crews scramble to clean up the county's worst oil spill in decades. unchts good morning, it's 10:00 a.m. here in london. happy pmi days. we had disappointing numbers from china for the third month in a row. that was in contraction and germany had disappointing numbers as well. france was better. i just wonder how long the pmis can continue to improve in the euro zone even though we saw a little bit of moderation here if the euro continues to strengthen or to be as volatile.

>> very good point. that's what we saw stepping in earlier this week. we've seen a blilt of an improvement in europe. we've seen gdp pick up. it will be front loaded through the summer. a slightly softer start to the trading session. taking fair value into account seen off by 5 points. nasdaq could fall by 13 points. this is after stocks closed slightly lower. dow was snapping a winning streak and off record highs. telco was the biggest gainers yesterday and the fed minutes didn't offer any major surprises. let's have a look at european

markets this morning. the mining stocks are seeing quite a bit on the stimulus hope. the xetra dax off by 0.4%. the pmi data wasn't so great. the cac 40 off by a third of 1% even though it's pmi print was better. in terms of the euro dollar pair we did see it up on the back of the french pmi number. you saw that here and then a little bit of a dip on the back of the german number but by and large it's benefitting from dollar weakness as we're going into jobless claims changing hands at 11147. >> it's almost like an equity. the last sort of three months these 0.5% moves par for the course. >> absolutely. >> let's look at asian markets as well. we had pmi data.

in japan they just surprised on the upside. quite strong gains in the nikkei yesterday after gdp print was better than expected. manufacturing was declining for the third consecutive month. the reading was below 50 once again. as you can see that is taken very positively by the shanghai stock exchange. up the best part of 2%. why? we think that might lead to more stimulus. but overall we have to remember that this data continues to be soft out of china even though stimulus existed for quite some months now. that will be worrying the authorities overall. let's see that australia correlated with china up for similar reasons up. let's have a quick look at commodities. we discussed oil in detail before the break. strength in the oil market in the face of disappointing data

out of the u.s. yesterday because of geo political concerns. on going fighting in iraq and syria. wti, 59.6. brent at 65.7. >> let's return to the bond markets. a call coming out from city. they no longer expect the ten year bond yields to be negative this year. revising up the tarthd toget from 0.4% to 0.2%. joining us is justin knight and you expect even more steepening. you have a target of 0.9. >> yes, we set a target in march for 0.9 at the end of the year. 0.6 for the middle of the year end of june which is where we are now. >> why would you want to fight the ecb? >> it's not a question of fighting the ecb. you have to remember the ecb is replacing a lot of the bars in the market. not adding to them and a lot of

people talk about this argument that germany's net issuance will be in the future but if they're selling to the ecb but not taking the cash the ecb gives them and investing immediately they may be elsewhere. >> so you're expecting some kind of correction in the european bond market we've seen over the last two months. are you surprised at the speed of that correction. >> i think so. particularly to begin with. we saw it as an elastic band. we did recognize when we called for much higher yields we thought the first part of the move would be technical or off loading on positions which is what happened but the elastic band got stretched further than expected. we put out our call when yields were at 17 basis points. they went down to five before moving up to these levels. >> u.s. and u.k. bonds were included in that official bond market correction. what do you make of where the

spreads are at now between u.s. and german bonds? where do you think they might go next? >> for now, they're probably at the right volume the same way we think the bunds are at the right levels. we could see titling going forward. the fundamental outlook has, at least the change in the fundamental outlook is benefitting europe more than it is the u.s. if anything people are getting slightly worried about the u.s. data where as most people updated their growth for this year. >> we want to stick with you. the fed minutes yesterday didn't tell us anything apart from what we already know and what was baked into the cake but there was one point where i thought there was some news and that was the fed talking about liquidity in the market and how that has dried up and if they continue with their meeting by meeting approach that could add a lot more volatility to the markets. do you think that the fed is actually on the cusp of changing their communication, their strategy on announcing their moves meeting by meeting?

>> well i think we have to be careful with extrapolating that from what they said last night but this point about liquidity is a good one. we've seen that this is part of what we have been seeing for the last few weeks and one can expect that to continue and regulators are now getting more worried about perhaps the buy side of the markets than they were about the sell side. >> when we look at central banks around the world now which one has the biggest magnitude of effect on where financial assets are sitting? is it the u.s. potentially increasing rates or japanese european qe or chinese easing? which one has the biggest swing factor? >> that's a very good question. i haven't thought about it that hard to be honest. i still think the ecb is doing a lot here and small changes in that. you were talking about the flexibility of the ecb over the next few months. i think small changes in that will partly because of the psychology of the market could

produce quite big short-term moves but ultimately of course most of the world is watching the fed rather than the ecb over the next five years and i think their monetary policy being the big growth engine of the world will be the most important. >> it's been tracking the bunds as of late. >> yes it has. for the moment i think yes definitely bunds will be leading the way but if we're looking into next year and the following years, u.s. treasuries will return to that kind of normal state where u.s. treasuries lead bunds. >> all right. you'll stick around for a little bit longer. head of european rate strategy. we'll get into greece with him in a second. let's give you a run down to watch this trading day. weekly jobless claims are out at 8:30 a.m. eastern. forecast rise slightly from the previous weak. 10:00 a.m. april existing home

sales and philly fed survey at march leading indiancators. best buy at the opening bell. they agreed to dismiss claims against haliburton. bp won't try to recover funds from the company's insurance policy on the deepwater horizon break. they were mostly at fault for the accident and spill. bp faces a fine of $13.7 billion. transocean and halliburton settled settled. >> there's a state of emergency in santa barbara county in response to a huge oil spill.

it could be the biggest spill in the county in 46 years. five times more than initially thought. about 21,000 gallons went into the pacific ocean. the company says the spill happened on tuesday after mechanical problems at two pump stations caused the pipeline to be shutdown. now still to come here on worldwide exchange greece's finance minister sets out his priorities as one lawmaker warns the country won't be able to make its payments to the imf. more details and discussions after this short brake.

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switch now and get the fastest wifi everywhere. comcast business. built for business. welcome back. the u.s. steps up it's fight against isis as militants secure a key city in syria. a state of emergency after the worst oil spill there in decades and cvs is reportedly eyeing omicare in a deal that could top $12 billion. >> a senior greek lawmaker warned the country will be unable to make its next payment to the imf unless foreign lenders provide grace with further aid. in a tv interview the spokesman said now is the moment of truth. a 300 million euro payment is

due to the imf on june 5th. however eu officials have talked down the chances of my deal being reached at a summit due to kick off. >> speaking to channel 4 news in the u.k. last night, the greek finance minister reiterated he would prioritize pensions and salaries over payments to the imf. now julia joins us on set. julia, those comments last week was a similar tone to what he has been saying for a long while but we're getting very much closer to that june 5th date and there's no moving ground on the other side. >> it looks that way. we are seeing a little bit of giving ground from pensions over the last couple of days but as far as a labor reform is concerned we're still waiting for them to give ground there and as far as the europeans are concerned we need to accelerate the process further. there's been talk of extending the extension into late summer in order to give them more time to discuss this and i think that will probably ultimately form some part of the kicking the can

down the road deal that we come up with here. >> i want to bring in justin knight who is still with us. overall do you think the market is correctly pricing in the risk of a grexit? >> we think that risk is being priced by the market somewhere between 30 and 40%. we derive that from the price of the 2 year bond currently. we think that's too high and we would put it lower than that in terms of probability but at the same time while the market is pricing a high probability of greek exit from greek bonds then the other bonds we think they're not pricing the impact of greek exit consistently with that. the impact we think would be much much higher and yields should be -- periferal yield spreads should be 50 to 60 basis points wider if you're to believe the 30 to 40% chance of grexit. >> but isn't that a product of ill liquidities.

you're going to get this skewed effect. if you look at the corporate bonds it's less than 10% in most cases. >> actually the two year bond is mostly held by the private sector. it might be held by greek banks but it is held by the private sector overall. i don't think that really plays into it and the longer data bonds as well so the only public sector held bonds are those held by the ecb which are the ones they swapped into during the restructuring in 2012. >> how much difference would an eternal deval youuation make in the case of greece? how much of a difference will we see if that were to happen? >> internal devaluation? >> we have seen some already so

far. obviously that is a painful process and will continue to be one but with a current count slightly negative but a lot less negative than it was in the past. obviously what was working was working. what won't work is of course the current stance of the greek government. can i ask a question this imf payment you said in particular they're underpricing the risk relative to greek bonds at this stage. what happens if for whatever reason they decide to miss that payment? how does the market react at that point? >> obviously not good but in terms of an automatic chain reaction to a missed imf payment there isn't one. there's the possibility under the agreement to make a political decision to accelerate the repayments of its own loans. if that happens, that will then accelerate the repayments of the psi bonds because obviously

those won't be paid. psi bonds won't be paid and that will accelerate the other bonds. that would be a chain reaction but would need a political decision at the fsf level. it wouldn't be good if the decision wasn't made but it would be a lot better if repayments were accelerated. >> thank you for your time. appreciate it. head of european rate strategy at ubs. also we want to thank julia. a stormy shareholder meeting for deutsche bank in frankfurt. the return on equity was not satisfactory and suggested that more cost cuts would be needed. >> we are not satisfied with the cost savings we have delivered. >> this would be the top priority on the agenda in the next few years. the result is that returns to you, our shareholders, are not been what we aimed for.

we have made progress. but our work is not complete. total shareholder return since we took office is positive in absolute terms but not satisfactory relative to other german companies or other banks. >> let's have a look at the share price. shares are flat in today's trading session but since they announced that big strategy overhaul earlier this year share versus fallen 6% versus the banking index in europe which is pretty much flat. that tells you a lot. it tells you that the market isn't believing that strategy overhaul. 3.5 billion in cost savings is what they want by 2020. they don't have the best track record when it comes to cost savings. return of 10% hastlast year and third quarter 2.7%. >> their images have been great and that's what shareholders care about. when it comes down to the roe

and that's not good enough. still absolutely no faith that those cost savings will come through because the targets are huge. >> absolutely. if you are an investor looking at banking stocks in europe would you rather go with a ubs, credit suisse or barclays all of these companies or would grow with a deutsche bank where you're not sure of the litigation risk still out there. >> you want to see more of a turnaround coming out of deutsche bank. >> goldman sachs is set to hold it's annual shareholder meeting in san francisco later today as they step up the appeal to hide growth tech firms. it marks the third year in a row that they held the meeting away from the east coast. >> cvs health the second largest u.s. drugstore chain was reportedly near a deal to buy nursing home pharmacy omicare for more than $12 billion. the transaction could be announced as soon as today. they help senior living

facilities manage residence. both are big players in medicare part d, a government program that subsidizes prescription drugs for retirees. they're off just fractionally. omicare higher in german trade. >> still to come on the show david letterman takes his final bow. the late night legend departs after 33 years on the job with an all star line-up on set. we have been asking viewers who would your dream interview guest be? get in touch with us here on worldwide exchange. we'll be back in a couple of minutes. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians

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>> david letterman says good-bye signing off as the host of the late show. he's the longest serving late night talk show host on the air for 33 years for nbc and cbs. he was ushered into retirement. before introducing his musical guest, dave thanked his fans friends, family and coworkers. >> the last six weeks it's been crazy. people have been saying lovely things about us. and it's really been over the top and i can't tell you how

flattering embarrassing, and gratifying it has all been. in light of all of this praise merited or not, do me a favor, save a little for my funeral, all right? >> okay. >> i'd appreciate it. that's pretty much all i've got. the only thing i have left to do for the last time on a television program, thank you, and good night. >> so if you had your own late night chat show who would be your ideal guest? who would you want to interview? get in touch with us on worldwide exchange. our personal handles on the screen for you. earlier i said the queen. but an equally ambition target is president putin. >> that's very ambition. >> but in english and live because he's so protected when he does everything with translators you don't get a real feel for what he's like. >> how about interviewing david letterman himself because he's met so many people.

why not. >> very good point. he would be great. >> there you go. >> on a more fun side up there for me would be denzel washington he would be cool. >> on a fun side for me roger federer, i hope he's listening. >> he would be end lick. >> he would be end lick. let's get to the tweets. dream chat show? honest chat between president obama, putin and xi with a bottle of whisky. may be vodka. >> vodka would probably take the lead. if you could get any guest to have one or two drinks with you and relax that would be a great interview. >> so much easier. >> also this morning, susan leon squawk box asia had jessica alba on the show. >> that's outrageous. why didn't you do that? >> precisely. i would have happy flown out to hong kong just to do one show. if our producer is watching next time you can let me do that.

get in touch with us. >> we'll leave you with how the futures are trading ahead of the open on wall street. a softer start to the session. s&p 500 off. the nasdaq set to fall by 14 points after an uninspiring session yesterday on the back of the fed minutes. we'll be back in two.

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hello, good morning and welcome. this is worldwide exchange. i'm wilfred frost. a state of emergency is declared as crews scramble to clean up the county's worst oil spill in decades. >> the u.s. steps up it's fight against isis as militants secure a key city in syria but king abdullah ii tells cnbc it's business as usual in the region. >> the iraqi government with coalition forces are are going to open the route this summer so that's again sort of a very strong market that's going to be reopened. >> cvs is near a deal to buy omicare for more than 12 beside. >> a reboot in china, sweeping changes to its business in the country. that's as lenovo misses on earnings and is focused on attacking hp and dell.

hello, thank you for joining us on the show. it's 5:30 a.m. on the east coast. let's have a quick look at futures. a lower start to the trading session after yesterday's session. s&p 500 seen off by five points. dow jones off by 31. the nasdaq set to fall 12 points after yesterday's stocks did close slightly lower. the dow was off 27 points snapping a four day winning streak. telco utilities the biggest gainer but the fed minutes didn't tell us anything new. the ftse 100 seeing a little bit of out performance. it's the mining stocks. a little rebound on the back of stimulus hopes after we saw that poor number out of china. xetra dax off by a third of 1%. the euro strengthening. the cac 40 also up.

we had pmi numbers out for the month of may. the flash numbers saw a little bit of a slow down. disappointment for germany but a better number for france. >> now chances of a fed rate hike in june now appear slim following the release of the minutes from last months fomc meeting. officials were concerned about weak growth during the first quarter and a few thought the economy would show enough strength to justify a rate move. the minutes show they had good reason why consumer spending was so weak. most fed officials think the first quarter slow down is transitory and there will be a moderate rebound in the second quarter. republicans also want to see a bit more of janet yellen on capital hill. the chairs of the senate banking and house financial services committee want the fed chair to testify twice a year on bank supervision and regulation. that's until the central bank has advice chairman on supervision in place.

>> the june rate hike isn't that likely so certainly they'll suggest they go in the other direction. >> they're usually outdated by a couple of weeks and everything yesterday was baked into the cake. there was one point where the fed minutes did surprise a little bit. this was about the drop in liquidity that we saw and maybe the fed thinking about changes it's approach to communicating what it's future policy will be. according to rbc it can keep surprising the market. that can't handle surprises and i think that's a really interesting twist in the fed's thinking because they're actually concerned about the volatility and the lack of liquidity in the market. >> it's a very interesting point. responding to what people think rather than the other way around. one final come menment, they want to see more of janet yellen but

please know because we have so much from central bankers too often and that's all we talk about and more appearances would be a bad thing. >> more for us to talk about and more for the markets to digest. >> it's always the same message. >> that's true. >> what about arsenal last night? remember talking about fed minutes being very similar to what arsenal did. sorry to rub it in. >> boring. no goals, three home games in a row. but we have cup finals still to come. so i'm optimistic. >> i have no clue what you're talking about. >> i know. i'm surprised you brought it up. >> however let's look at today's other top stories. hp is expected to unveil sweeping changes to its business in china. this includes the sale of a majority stake in it's data networking operations. hp and other tech companies came under fire in china last year following revelations the u.s. government used their infrastructure to collect sensitive data abroad.

hp off by 0.9% in germany. >> golden group has had more than 70% wiped off it's share price in hong kong over the last week. golden financial and golden properties lost their combined $22 billion of market cap at one point today with the company saying it was not aware of any reason for the share price move. it follows a 50% plunge for the solar firm in yesterday's session off the fact that the chairman din show up for the agm. >> he didn't? >> no that was why it fell. quite a funny story. 50% off the back of it. >> meantime lenovo closed as it dropped 1%. the world's largest maker was weighed down including the $2.9 billion buyout of motorolo. it rose in all regions citing a stronger recovery in europe as a potential bright spot for the year ahead. >> cvs health is near a deal to buy omicare for more than $12

billion. the transaction could be announced as soon as today. omicare helps senior living facilities manage medications. cvs handles drug plans for health insurers and employees. both are big in the medicare part d. let's have a look at share price action as you can see cvs down fractionally. omnicare up 5.6% in frankfurt today. >> up next bp closes one chapter in the saga but the company's troubles are far from over. we'll hear more on that story after the short break.

another key city has fallen to isis. syria's ancient town is seized by the terrorist group following several days of intense fighting. al assad evacuated them in the u.s. they're rethinking the strategy after iraqi troops lost the city earlier this week. they'll send 1,000 rockets to bagdad and step up the training of suni tribal fighters. big developments overnight. >> yes, indeed so basically

what you have seen is the united states making a big shift in policy and sending rockets out to the government in baghdad and they want to make a dent in this fight against the islamic state. we've seen them making major strides and i do want to wengsmention one man at the center of the fight. i asked him is jordan safe and what do you think is going to happen next in the region? take a listen. >> we also said where ever there's been problems in the region jordan done use that as an excuse not to move forward, whether it's economic reform or political reform. it's business as usual and we shouldn't shy away. in actual fact when there are crises this is the time to take advantage and actually push forward. >> what's the value proposition for entrepreneurs, for investors when they come to jordan?

why would they choose jordan for example, instead of choosing dubai? >> well you know what has always made jordan successful is the investment into capital. that's been our export and if anything my ideal long-term vision is to bring that export back into jordan: many countries in the region were supported by the jordanian human capital that sets us apart from other countries. >> his majesty talking about renewable energy. we're on the soididelines of the world economic forum. over a thousand leaders will be gathering here to talk about the future of the region. here in jordan 97% of their energy is imported and he's talking about all alternatives solar and electric cars and we got the chance to ride in one of his fleet of electric cars.

he likes his tesla. i'm a soldier. i like gadgets. i like innovation and this is something i want to see more of in jordan going forward. >> what a beautiful shot. >> lovely shot. make mess want to go on holiday. >> i'm going next week. >> i know you are. i've had my holiday for most of the year. >> vpbp is settling claims resolving a long running dispute in the worst offshore disaster in u.s. history. landon is live with the details. >> bp agreed to dismiss remaining legal claims against transocean and halliburton. transocean which owned the deepwater horizon rig and halliburton the cement contractor will settle their legal dispute with bp steps toward ending the massive litigation that spilled millions of barrels of oil into the

ocean. last september a u.s. judge ruled bp was to claim for 2-thirds of the disaster while transocean was 30% of the blame and halliburton 3%. they face a fine for damage to the environment under the u.s. clean water act. the company has already taken $44 billion in charges for clean up and other costs. bp will pay transocean 125 million for the company's legal fees and will stop trying to recover money from transocean's insurance policy on the oil rig. they'll pay about 212 millions for the funds set up for businesses harmed by the spill. the company already settled it's clean water act liability for $1 billion. halliburton reached a settlement last year for most of the claims related to its role in the oil spill. it previously blamed decision making on the well that spilled crude into the gulf for 87 days. in california crews are fanning out to clean up oil that spilled

from a broken pipeline on tuesday. it says as much as 105,000 gallons was released before the line was shutdown. that's a worst case scenario as is five times more than previously thought. it could be the biggest spill to hit the coastline in 46 years. sorry my shot isn't quite as pretty. >> thank you landon. don't be silly. absolutely. that's a beautiful backdrop and beautiful front ground as well. thank you very much landon. now before we go to break, let's remind you, u.s. futures point lower as stocks fail to track china. now letterman might be gone but frost and roth are here to stay and we're back in two.

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we are in the green and particularly strong rally off the back of the ecb. continental europe down around 0.3% for germany and france. the ftse 100 is bang on flat as we look at things now. >> quick check of u.s. futures looking soft this morning. and nasdaq set to fall by 13 points. the dow was off yesterday snapping a four day winning streak and off the record highs. the fed minutes didn't give us much to trade on did they. let's give you a run down of what to watch this trading day. forecast arrives slightly from the previous week. at 10:00 a.m. april existing home sails and march leading

indicators. as for earnings look for results from retailer best buy before the opening bell. after the close we hear from hp gap and aeropostale. >> salesforce.com revenue grossed 23% beating forecasts. also raising it's sales outlook. salesforce's service cloud has this place. past the market leader customer service and support on the conference call and later on mad money he wouldn't directly address reports and rumors that the company is fielding takeover offers. take a listen. >> all i'm doing here in chicago and you know that is i'm meeting with our top customers here. i read the news just like everybody else but my goal is to focus on my customers and make them successful and that's why we deliver these great results. >> and they rose 7% in after hours in germany. currently higher by 6.3. >> now let's talk more about

sales force good morning to you. the after market taking rules well. is that all down to the margin? >> look it's a combination right. sales force.com is the marquee company in the space and now you have seen them be able to deliver 20% plus revenue growth and pair that with tremendous margin expansion as well and investors are applauding that this morning. >> how significant is it that the service cloud displaced sap as the market leader in that space. is that a big moment for salesforce. >> it's crossing a big bridge for the company. they're well established in the core product they built the business on but now you see great success in the second product area and as we think about the long-term market opportunity service cloud could be even bigger than what the

core product has been and as investors think about what drives the next leg of growth service cloud is going to play a key role in passing sap shows they can compete with the biggest software companies in the world. >> come executives were dropping hints about a new wealth management product. what exactly are you expecting here? do you think that could be some what of a game changer for salesforce. >> it's a game changer in that one of the big things they've come on is verticalizing their solutions and tayloring to the industries that are willing to spend more and more money with a particular vendor and this wealth management solution is going to open them up in the financial services sector. a very very large area for enterprise software spending and you'll see them go into other verticals overtime. health care, telco, the automotive industry. this is part of the largest strategy of getting greater wallet share with larger customers.

>> we have to talk about the elephant in the room. that's mna speculation that's gone overboard when it comes to salesforce. now sap saying yesterday that the price tag would simply be too high. do you think it's too high for everyone out there. >> you know it's been the buzz for the last few weeks and it's funny they're talking about price tags because they paid a significant premium for conquer a year ago. so yes it would command a premium price point but the reality is this is the marquee asset in the space. it's well worth it for an acquirer and some of them have deep pockets. if you think about oracle they have a big war chest. ibm could raise the capital to do it. the dark horse is amazon and if you want to be a player what better acquisition than acquiring salesforce.com and bringing over mark and his team. >> that's interesting. but do you think all of this

talk about mna has been a distraction to the operating business of the company? >> if you look at last night's results and if you look at the company's forward guidance it appears that the management team and the day-to-day employees, they're able to put on blinders and continue to execute. their guidance was above consensus and they also raised their full year outlook as well so as you think about it this is a company focused on helping their customers succeed. you've heard mark say many times and as long as they continue to do that they'll be able to deliver good results regardless of the rumors surrounding the company. >> thank you for your time. appreciate it. vice president at fdr capital markets. a stormy shareholder meeting for deutsche bank in frankfurt. the return on equity was not satisfactory compared to other banks and suggested that more cost cuts would be needed.

>> we are not satisfied with the cost savings we have delivered. this would be a top priority on the agenda in the next few years years. the result is returns to you have not been what we aimed for. we have made progress but our work is not complete. total shareholder return since we took office is positive in absolute turns but not satisfactory relative to other german companies or other banks. >> the shares in deutsche bank not doing much today. flat for much of the morning session, now off by a third of 1%. >> goldman sacks is set to hold it's annual shareholder meeting later today as they step up the appeal to high growth tech firms. it marks the 30 in a row that the wall street giant held it's meet agoway from the east coast.

>> david letterman says good-bye. he is the longest serving late night u.s. talk show host on the air for 33 years on both nbc and cbs. he was ushered into retirement by big named stars including alec baldwin and bill murray and jerry seinfeld. dave thanked his fans friends, family and co-workers. >> the last six weeks it's been crazy. people have been saying lovely things about us and it's been over the top. i can't tell you how flattering embarrassing and gratifying it has all been. in light of all of this praise merited or not, do me a favor, save a little for my funeral, all right? >> okay. i'd appreciate it. >> that's all i've got. the only thing i have left to do for the last time on a television program, thank you

and good night. >> by all accounts a fantastic final show but the question we have been asking you throughout our own show if you had your own late night chat show what would be your ideal guest? who would be your ideal guest? let us know at cnbcwex is the twitter handle. he tweeted his ideal guest would be pope francis and juan said he would have carolyn. which would have been my answer if you hadn't been co-anchor. >> obviously. >> i said the queen, president putin i'd also love to be able to interview prime minister cameron right now and get him to relive the moments before that result came out. no one expected him to win and then he got the big majority. what was going through his mind then. >> we have a couple tweeting in saying putin. a lot of people want him with a little vodka on the side. >> his ideal guest would be the whole worldwide exchange crew. what a great answer from josh. thank you so much for joining us

today. that's all we've got time for.

good morning. a u.s. tech giant changing it's business in china. hp reportedly set to sell 51% of its data networking unit there for $2 billion. a rand paul filibuster. finally leaving the floor early this morning after more than 11 hours of speaking against the patriot act. >> and a late night legend says good-bye. david letterman signs off after 33 years on the air. it's thursday, may 21st 2015 and squawk box begins right now. ♪

>> live from new york where business never sleeps this is squawk box. >> good morning, everybody. welcome to squawk box. this is cnbc. i'm becky quick with joe kernen and andrew ross sorkin. we're listening to the foo fighter. they're reprising the song they played for the late night host when he returned after bypass surgery. he introduced foo fighters as my favorite band playing my favorite songs. let's get you up to speed on the markets. the futures this morning at least at this point look like we're barely budging at this point. nasdaq off by 14 and the s&p futures down by 4.5 points. this is all coming the day after the release of the fed minutes and yesterday over the last several days we have not seen very significant moves in the markets one direction or the other.