welcome everyone. here are your headlines from around the world. scandal marks football's highest body fifa executives were arrested. >> most sectors trading in the green. the dollar continues to power higher. the greek dilemma takes center stage amid calls for

leaders to reach a funding deal with athens. in corporate news investors connect with deutsche telekom with fierce competition among the country's top three players. >> six officials have been arrested in switzerland in connection with alleged bribes totaling more than $100 million. they face questioning on possible extradition to the u.s. the charges relaltte to fifa's handling of the world cup and other international tournaments. they were responding to a request by u.s. authorities. payments were made using u.s.

banks. he is currently in the fourth term at the helm is due to face a re-election vote in zurich on friday. he is joining us here around the desk. of course this is very interesting timing given that the election is coming up on friday. the incumbent president facing re-election. will that change given corruption charges? >> the timing of this is coins coincidental. all of the various fifa members have been flying into switzerland for the gathering at the end of the week here but a couple of things worth pointing out in this story. they're only making allegations at this stage about crimes that they believe took place on u.s. soil and are related to u.s.

banks. for those that look at this and say what are the feds doing charging around switzerland arresting people. swiss authorities made the arrest at the request of the u.s. authorities. we know that the six individuals largely represent america or continental america related countries. head of that list jeffrey web head of the confederation of north and central america and the caribbean. we're waiting like everybody else for further details as to when extradition took place, how long it will take and when charges may be leveled. and so far the information we have is that arrests have been made. six people are involved at this stage and while sepp blatter is not among the six no one is saying he is cleared. we have to wait and see how the story evolves. the original twist based on the

new york times story is at least ten people. >> as a viewer you wonder if this will impact the fate or future of football. we have the 22nd fifa world cup scheduled to take place. do we foe in this will be impacted at all? >> we don't at this point. but it may have revolved around the bidding process for that world cup and as you'll be aware seema ever since the result of that bidding process was declared people have been scratching their head and saying great that we take the world cup to the middle east and you want to bring in new aud wrensiences but this looked like it was going to be held in 45 degree temperatures. that had people scratching. if you know your football or your soccer it's a game played very slowly at those temperatures.

not compelling football i would have thought at all. so changs beinges being made about how this world cup evolves in 2022. there will be people wondering that. >> sticking around with us for further updates on the story. thank you so much. on that note fifa is due to hold a press conference at 1100 cet. we'll bring you that live as it happens. now the u.s. is expected to pressure european leaders to speed up a funding deal for greece on the sidelines of a g-7 meeting in germany as greece and it's creditors down play fears. let's get live to what we can expect from european leaders as well as the u.s. on the fate of greece steve. >> great to speak to you today. it's brilliant being here. it's a place i always wanted to come to. it's a very historic play and

poignant place for germans as well with. in terms of the u.s. pressure on europe i'm interested in who this is coming from as well because of course i'm wondering what pressure they would put on germany, france italy, the u.k. as well. you have to give into the greeks or you have to be hard lined with them as well. i just wonder if it was jack lou and janet yellen conducting those negotiations. how different they will be from mario draghi as well with. it's all saying you have to get this greek thing done but it's another thing saying what you would do in their place as well and i'd be fascinated to hear the conversation of what jack lou said needed to be done as well. it's a very difficult situation for the greeks and creditor

nations as well. had the german finance minister already been on the front of the great op ad saying germany profiting from the crisis is nonsense as well. more stimulus and liquidity from germany and the creditors. he's saying that's not going to be the case. he's putting them right back on the key issues of fiscal reform and structure reform making the point that mario draghi made many times you cannot rely on monetary policy alone to get out of the crisis but we're still talking about europe. many meetings throughout this crisis, europe has always been the 6th man. apart from the greek situation europe is looking mildly better. i know we have horrific unemployment levels and growth issues and too much debt but in terms of the most recent sets of

data there's a modest improvement where as in japan and the united states we have been worried about the other side of things. so i wonder if it's convenient for the detractors within the eu and for those outside of the eu who want those surplus nations to spend more money. i wonder if it's convenient to use greece just to deflect. and on that note i'll speak to the central bank of japan later on today. interested to see what they think. he's still bullish. he's the finance minister of canada. guys back to you. >> we're looking forward to it. that's steve live at the g-7 summit. now coming up of course on the show we will be speaking plenty more on g-7. steve will be speaking as he just pointed out to the bank of japan governor.

he will bring us on cnbc and speak to the ecb policy maker. we'll also bring you that interview. a quick update on the story out of fifa. he does not believe fifa arrests are related to the russia's 2018 soccer world cup bid. we do have that press conference coming up at 1100 cet. we'll bring you that live as it comes. talking more about the developments and what to expect going forward is the ceo at longview economics. thank you for joining us on worldwide exchange. before we talk about g-7 i want to get your thoughts on the u.s. market sell off we saw last night. do you think that's predicated on the stronger dollar or are there factors at play here? >> there's a lot of things going on. we're in the beginning of the end of the economic cycle and we started to see volatility slowly since the middle of last year trend higher.

it will come off a lot in the last few months but markets have become quite complacent. earnings weren't actually that good. they did well relative to downgraded expectations but the economy is a little bit slower. slightly speeding up here but i just think markets have become very complacent and it's not good news for equities in particular. >> but a goodwin for european companies. >> that's right. they have been taking a lot of market shares. take market shares out of the u.s. market so helping them and benefitting them and of course the european recovery is coming through quite nicely. it's what we call shuffling the monetary deck chairs. whoever gets their currency down gets their growth up. >> i have to point out the

europe versus u.s. debate has been gaining momentum on this side losing steam. a similar story when you look at the italian and spanish equity markets. >> that's right. there's a little bit of nervousness about greece but we saw reversal in the euro weakness. four, five six weeks ago and a back up in bund yields and what we see in markets is bunds and treasury sell off and equity starting to sell off because of the pressure on the rising yield. they're much more correlated than they used to be in the old days. they tend to broadly move in the same direction. >> i also want to talk about specific stocks related to what's happening in the german market. lower on a downgrade from gold goldman sachs. they reduced the stock to neutral only in february on increasing earnings pressure on

the business. you can see the stock down 1.3%. deutsche telekom, the move is expected to improve access to fast broadband services opening up opportunity for the sector's top players. a new round of strikes have been announced as shareholders gather for today's annual meeting. let's get more on that story with annetta that joins us with more. >> that's the fifth round of strikes in a row. the trade unionized workers are calling for 5.5% higher wages across the country and they want to have a reduction too when it comes to their working hours per week to 36 hours. all of that is rejected by them and the trade unions are revolting against the fact that they're planning to hire more staff and special entities which

allows them to circumvent the expensive trade union contracts which are currently in place. that is actually what we are seeing across the service industries in germany right now. we have the railway workers or pilots on strike for weeks. for the railway people which is a big problem to germany right now we have an estimated 350 strike hours in losses when it comes to work times. that brings us to the highest since 2003. so the bottom line of that problem is that we have specialized trade unions which allow to go on strike and bring a whole down. that's been halted by a new law that just passed legislation like specialized small unions are no longer allowed to strike and end, actually bring a whole

company to a halt. more from that probably after the summer break. with that seema, back to you. >> annetta, thank you so much. now let's look at the european heat map. a good indication of stocks trading today. more green than red across the screen although yesterday european stocks did move lower. continuing problems around greece's debt talks were seen as one of the reasons that stocks sold off yesterday. taking a look at the 600 index. a good gauge of stocks across the euro zone. it's slightly higher although you can see here off session highs right now. let's take a look at the european market trade. we're looking at the ftse 100 below 7,000. still holding on to a gain of around 24 points. the xetra dax a couple of big winners there. basically flat on the day.

the cac 40 at 5,093 with a gain of 10 points. one of the reasons european equities are higher today may have to do with the weaker euro. it did break 110 in yesterday's trade reigniting the talks as to whether the euro will trade in parity with the dollar in the coming future. whether the economic news surprises to the upside and leads to the dollar strengthening against the euro. quick look at bonds. it was the sell off in bonds that captivated the attention of investors. we've seen yields come off the highs over the past week. we're looking at the german bund at 0 plt 4%. still off what we saw when the bund was yielding 0.10%. now currencies continues to be a big focus for investors,

specifically those multinationals that make rev new overseas. stronger dollar not good for their earnings. we're looking at the euro stronger against the u.s. dollar, at least in today's trade at 109. so higher than what we saw yesterday at 108. a quick look at the u.s. dollar versus the japanese yen. the yen hit an 8 year low. that's been good for the japanese market given that they need a weaker currency for export growth and tackling deflation. on that note let's take a look at markets in asia with sri that joins us from singapore. over to you. >> hi seema, you're right. the weaker yen was the only saving grace in the broad markets over here in the region. that was a big problem for the exporters and it helped the nikkei with a 35 point gain at the close.

shanghai did reasonably well as well. we got some data showing that industrial profitability. it did improve in the month of april. it does mark something of an inflection point but clearly china needs to do more to keep that momentum going with the industrial shanghai composite out performing by .6%. a risk averse here in the asia pacific markets because of what we saw yesterday with the fairly robust data building the case that the fed may move sooner rather than later. let me just highlight down by 1.7%. that was the region's ranked underperformer. you're looking at the biggest daily percentage loss in almost five months. so really shaken by what markets saw coming out of the u.s. overnight and once again we're here in asia with bad news in the u.s.

good news being bad news. got to get that expression right of course. >> thank you so much. coming up on worldwide exchange big brother takes off. the u.s. government gives spacex the go ahead to launch military and spy satellites. will investors snap up shares? the snapchat ceo is is planning on taking the company public but remains coy on the timing. >> and one of the biggest scandals in football history kicks off as officials are arrested. we bring you that live in under an hour. don't go away.

this is the second time that the fed chair has decided to sit out the event which could take some luster off of the closely watched meeting. meanwhile jeffrey lacquer is still undecided on whether to vote for a rate hike at the june meeting. he says he'll make the call based on economic data between now and then. u.s. federal reserve vice

chairman stanley fisher says investors will expect bouts of volatility once the first rate hike takes place but he seems less concerned saying markets should welcome tightening. speaking in seoul he says it will be an anticlimatic event. conflicting view on which fed policy member or former fed chair you're speaking to when it comes to that potential fed rate rise. do you think we'll see it here in 2015? >> we will. what is interesting is there's been a clear slow down for the last four five six months. a lot of it related to the oil price and it's influence on the u.s. economy being much stronger in terms of manufacturing activity than people realized. it looks to us as if housing being been disappointing for 18 months in the u.s. is starting to reaccelerate and i think that's key to where we go from

here and that's the key thing that will lead the fed to start wanting to move rates higher this year. >> there's a reluctance to go long this market. every time we hit new highs investors are ringing the register. they seem to be conflicted about whether this bull market can continue but at the same time the question is are there any alternative investments that provide that type of yield? >> that's a good point. this recovery is built on cheap money and cheap labor. it starts to diminish at the margins and that's where we're at. we're in a very expensive market and money is about to start getting tighter because wage inflations is starting to come through and this is a very bad mix and the quality of this recovery is poor in terms of productive. it's based on cheap money and

cheap labor and it's poor quality. so it's no longer investors are some what perplexed. >> speaking of a market predicated on easy money, you take a look at the chinese market. the market doubled just this year. isn't this just a poster child of that? >> well clearly, if you wanted to talk about a market that looks like it's moving into bubble territory and starting to get some of those signs, single socks volumed on very high multiples, dropping gapping lower, companies that don't seem to do much, yes, it's clearly that but when investing in bubbles you have to run with the momentum until you see the reason to with draw and bubbles, it's very clear, over hundreds of years they're always based on cheap money and when you start taking away the cheap money the bubble bursts. in china we're doing the

opposite. we're putting more cheap money in. yes it's expensive but the cheap money is still coming. so i would stay with it. >> long chinese equities. >> i'd stay long chinese equities but it's a highly speculative market. >> where would you put money to work? housing, consumer stocks or technology? >> i, you know personally would just buy the index. probably the bigger gaps i think all of them will basically do broadly the same thing. so ironically some of the cheapest stocks are the banks which in some senses are a bust but we also know the government stands behind them so it's a different ball game in china in that respect. i would not try to be too clever. >> there was an interesting comment yesterday saying that the chinese currency is undervalued and potentially this is a move to the chinese currency joining the sdr.

could that be the case and could the chinese currency dethrone the tlar. >> i think it's a long way down the line and i suspect not attend. i can see lots of things building toward trying to create an environment for that. clearly the surprise is when you're facing debt deflation in the economy you cut interest rates and normally lower your currency and supply liquidity and try to recapitalize and china has done all of those expected for the currency. so they're holding it where it is taking the pain on that front and i don't think they'll replace the dollar in the immediate future. >> continue to see the shift from the west to the east especially with the aiib. the chinese infrastructure bank and what that means for tackling global challenges that right now the world bank is at the helm of going forward. >> that's right. we're creating regional power

bases. that's what china is doing at the moment and in the cycle of empires and economies that end up top dog like america is today that's how you start. clearly china is on that path but whether or not they get there is a different ball game. what's interesting is what's happening in the south china sea today. with america now starting to challenge what china is doing in these islands, this is geopolitical battle starting to play out in that region of the world. >> chris, we'll leave it there. ceo at longview economics. still to come at worldwide exchange we bring you the latest on arrests of officials from football's top period governing body. fifa has a press conference scheduled in half an hour's time. stay tuned. we'll get you the latest.

welcome back. scandal rocks football's highest governing body. six football executives are arrested for alleged corruption in the u.s. with suspects facing expeck expedition expedition. most sectors trading in the green as a dollar run comes to a halt. the greek dilemma takes center stage amid calls for european leaders to reach a funding deal

with athens. in corporate news investors connect as the german government opens up bidding with fierce competition among the country's top three players. and interestingly enough despite the sell off overnight as well as in asia european markets holding on to the green. most of that having to do with the euro but still much weaker than last week when it hit 114. the dax now trading in negative territory. the cac 40 up by around .25%. shares in british airways, parent iag moving higher after the irish government gave the go ahead to sell it's 25% stake in

aer lingus. ahold is on track to meet full year expectations with first quarter sales rising nearly 15%. this after the dutch food retailer posted weaker than expected first quarter profits hurt by lower margins. you can see that stock up by by .3%. officials have been arrested in switd switzerland in connection with bribes. they face extradition to the u.s. they confirmed that the charges relate to fifa's handling of the world cup and other international tournaments. the six officials were detained in zurich where fifa has its headquaters. it's alleged that the bribery was organized in the u.s. and that the statements were made using u.s. banks on american

soil. this is a developing story and we just got a flash. they're questioning 10 individuals that took part in the voting on the 2018 and 2020 world cup as members of the executive comemittee at 2010. fifa is scheduled to hold a press conference. we'll bring you that live as it happens. >> queen elizabeth will set out the government's legislative plans at the state opening of parliament later today. she is expected to make a formal announcement on the eu referendum bill. prime minister david cameron said he would give the public a say but the exact details of the worgd and timing of the referendum are yet to be confirmed. she is expected to announce bills related to income tax, immigration and housing policy. julia give us a preview of what

we can expect from the queen today. >> they have to look at taxes. a five year tax lock as you mentioned the enterprise bills work to cut red tape. 10 billion pounds within that an issue. the centerpiece will be laying out the timetable for the eu referendum. we don't get a sense of the timing other than they want to reduce the uncertainty and bring this forward. we could see this bill get a second reading as early as june. they're focused on this is their first piece of key legislation. it's not necessarily going to be in the bill but this is what is going to the likes of paris and germany at the back end of this week to talk to those guys about about. of course within this the question about scotland and

whether or not they'll use this as fuel to the fire independence bid when it comes to the table. >> i'm looking forward to hearing her speak. is she a prompter? does she look down at her notes? how does this work? >> on average around nine minutes long. this is a speech written for her by members of parliaments. so it's not ad hoc in any sense of the word. but this is the 62nd time she has done this. she just missed two during her reign. it's a pretty special cultural event. >> stick with us because the queen has featured on this list every year since it was first published in 2004. we're talking about forbes' annual list of the 100 most powerful women. angela merkel takes the number one spot closely followed by hillary clinton. michelle obama came in at number 10. notable absentees were retired super model gisele and singer

lady gaga. this list has a combined following of 474 million users on twitter and you ub. representing the younger generation 25-year-old global pop star taylor swift. wilfred is a big fan of taylor swift but angela merkel at the top. are you surprised? >> no i'm not. pretty powerful woman. the queen of europe. unofficially of course. what i do think is interesting is hillary clinton and whether we see a flip of those positions. >> yeah which is interesting because of course right now she is still a candidate. we don't know if she is going to win the 2016 race but she is still seen as one of the top players as a woman in the industry. julia, thank you so much for joining us.

50% of 18 to 34-year-olds see personal success as the most important thing in life. the millennial generation are more stressed more liberal, more health conscious, and less religious. this according to a new report from bank of america merrill lynch. it highlights 8 themes for investors wishing to play the millennials including technology, women and the sharing economy. how do you profit off the millennial generation? the head of the investment strategy at bank of america merrill lynch joining us to discuss very interesting research. >> thank you. >> so i have to ask this tech generation that is obsessed with social media, snapchatting you're saying they're a generation that marketers and companies should be targeting going forward. >> there's two key points to stress here. the first is from a demographic perspective. the u.s. is going to overtake

the boomers as the largest living generation in american history. the numbers won't peak until 2036. we have to stress there is 2 billion millennials around the world. 86% in emerging markets and you're looking at 27 to 30% of the population and the second key point is their income and their wealth. when you take a look at the u.s. millennials account for $1.3 trillion in consumer spending. they'll overtake by 2018 and by 2025 we'll be look at $8.3 trillion worth of annual consumer spending coming from millennials. >> you highlight the strong purchasing power millennials have in this market but one factor that distinguishes this audience from the rest is they're fickle and not brand loyal. is all of that money being spent to attract millennials simply a waste? >> i wouldn't say it's a waste but companies need to tweak their business models to adapt

to the key desires of millennials. what are those? it's clearly price. they have come to a very difficult period off the back of the great recession and prices key for them. secondly it's convenience. millennials are looking for things like omi channel strategies which marry traditional bricks and mortar with an online experience. it's still quality. the 25 to 34-year-olds are willing to pay a price premium for quality. >> what specific industries will this generation have the largest influence over from your perspective? >> the most obvious is clearly technology. they are early adopters. they're 2.5 times more likely to adopt tech than previous generations. 90% of them own mobile devices. 76 to 83% of them own smartphones. 50% of them would be willing to give up their sense of smell rather than give up their technology. >> i saw that stat. it's astounding. >> it's shocking. >> but this is creating huge opportunities. we'll be looking at 2.7 billion

smartphones and tablets. that's going to be a 500 billion dollar a year market and we're seeing that smartphones and tablets are gateway devices. everything from their retail purchases through to organizing their travel and hotels is digital based. >> you say millennials are more educated than previous generations and you also point out that millennials ages 18 to 34 on average are staying single for a prolonged period of time. why do you think that is? >> here we're going to see something of a change given the difficulties over the last ten to 15 years. we've seen a slow down in terms of household formation. this is cyclical rather than secular. it's related to issues about wage growth and unemployment and availability of credit. if you look at a market like the u.s. we anticipate from 2014 to 2018 we'll be look at 8.3 million new households

formed by millennials. that's going to be a $2 trillion market in terms of housing in terms of millennials buying houses as well as renting houses and a huge boost for areas like diy. >> that can change the housing market landscape going forward if more millennials are staying single longer and buying one bedroom versus a three bedroom to create room for their children. >> we're looking at a generation that's anywhere from 18 to 34 years old but when we look at the 25 to 34 and particularly 30 to 34-year-old graphic 73% want to buy a house and their goal is to buy a house over the course of the next five years. this is a story that's going to have legs for at least ten years. >> tell us about the demographics in emerging markets. a country like india where half of the population is under the age of 25. >> that's right. the demographics are amazing in emerging markets. you have between 27 to 30% of the population which are

millennials between ages 18 to 34. they're becoming increasingly influential. 75% of technology use is coming from millennials. take a look at a market like china, the chinese are looking to travel. it's chinese millennials. >> you see that trend continuing going forward? >> that's right. this generation is going to be increasingly influential in terms of income and wealth and consumer spending over the course of the next 25 to 25 years. >> talk to us about music. you compiled so much research on millennials what their choices are and what they're favoring in terms of products. what about music as well. >> you come across generalized traits and cliches as well as contradictions. there's actually a strong pension for nostalgia, michael jackson, the beatles and the stones within the top 5 where as madonna isn't in the top 10.

>> i'm a big fan of madonna. i'm surprised taylor swift didn't make the list. >> it's important to see the shift between the 18 to 25-year-olds versus the 25 to 34-year-olds in that space. and we can see a huge push toward things like streaming of music and streaming of video. you look at a market like north america and we'll looking at north american millennials spending about $62 billion this year in terms of media. >> just media consumption. >> the biggest area is $705 worth of spending on pay tv cable tv as well as streaming. second biggest area is live events including live music. >> it's amazing, especially now that music streaming is a crowded market. you had spotify with their new service last week and apple's developers conference in june where it's expected they'll unleash the first music streaming service as well. >> that's right but with 75 million millennials by the end

of the year in the u.s. there's a huge potential market. this is tapped to a large degree but there's a long run way for growth in a lot of these spaces. >> tell us how do our viewers profit on the millennials playing a bigger role in the global economy. are there specific stock plays? >> there's a few. we talked about technology. that's one of the obvious ones but we think there's huge consumer opportunities. some of the stocks in fast fashion as well as off price retail are going to be a big beneficiaries off the back of the trend. we also like the affordable luxury space. it's becoming an increasingly affordable space. a $400 billion market by the end of this decade marrying price with quality as well as with brand which is becoming increasingly important as a large proportion of millennials become young professionals. >> very interesting research. thank you for joining us. >> thank you for your time. >> thank you for your thoughts. head of investment strategy at

bank of america merrill lynch. now we want to hear from you on this. how do you monetize on the millennial generation. if you want to join in on the conversation here on worldwide exchange get in touch with us and e-mail worldwide@cnbc.com. tweet us on cnbcwex. my personal handle on the bottom of the screen. silicon valley super stars are lining up for flipboard but who is the fairest suitor of them all? we'll discuss that. we're back in two minutes.

>> fax conglomerate is in talk to buy le parisen. stefen is now joining us from paris with more on that story. take it away. >> yeah, good morning seema. according to a french media report, they could offer 50 million euros to buy them and hopes to close the deal by the end of october. lvmh is the owner of another newspaper in france which is a financial newspaper. it would create some sinergies

to reduce the bill by 3 million euros according to a media report. that's a financial side of this potential deal however in terms of strategy it's not clear how it would fit in lvmh portfolio. the readers are probably the clients in the luxury brands at lvmh. however it's a much more popular newspaper. it's not a tabloid newspaper but it's readers don't usually go in the luxury stores of lvmh so it's not clear how it would fit in a global strategy for the company. that being said it would be a rather small acquisition of 50 million euros for lvmh is a very small amount. probably the owner of lvmh the billionaire doesn't want to miss the consolidation of the french media sector.

it probably wants to take part in this consolidation. it's not clear how they would fit in the global strategy of this luxury group. >> definitely a peculiar deal. this fashion con glom them buying a newspaper. i have another question, are you a snapchatter? >> not really. not yet. i'm too old for that probably. >> oh come on. you have to get with the program. if you want to join snapchat listen to the next story. the ceo says the popular messaging service is planning an ipo but wouldn't be specific about the timing. they were last valued at $15

billion in a fund-raising round in march speaking at the code conference in los angeles he says he won't entertain another take over offer like the $3 billion bid made a few years ago. he also warns a tech market correction is coming. >> it's the result of easy money policy so when you have negative rates in some countries and governments have printed a lot of money i think that people are making riskier investments and i think there will be a correction it's a question when everyone has thoughts about that. it's something that we factor into our plan. >> he is only 24 years old and the ceo of snap chat talking about fed policy. you have to love that. snap chat has 100 million daily active users but has not

disclosed profit or revenue numbers. he is considering changes to the product including the hold-to-watch feature that requires users to keep a finger on the screen to watch videos. now the u.s. air force certified spacex to launch military and spy satellites. that ends a monopoly held by united launch alliance created in 2006. the move follows two years of talks and moves by spacex. the company can compete for national security launches with it's falcon 9 rocket. the deal is done. charter has agreed to a $55 billion takeover of time warner cable. charter will also acquire bright house networks. the 6th largest u.s. cable company. the combined companies could have as many as 23 million total customers just behind comcast. 27.2 million customers.

the deal still awaits regulatory approval. cnbc spoke to charter's ceo after the deal was announced and asked about the strategy behind the tie up. >> consumers now are demanding products tailored to them as opposed to what they want to present. people tend to buy everything if it's priced properly but the whole key is choice and that choice is developing. >> now twitter is not the only company interested in buying flip board. the wall street journal reports google and yahoo! reached out to the news readers app in recent weeks. they held early talks including how products could be integrated but have not progressed to a potential price. twitters talks which could involve a deal worth about $1 billion had been stalled since april. taking a look at how those tech

stocks, how they're trading, google up 1.3%. twitter shares at 33.64 up in frankfurt. now the federal trade commission approved the $27 billion deal to buy lorillard combining the second and third largest u.s. cigarette makers. they'll have the second largest market share. it's contingent on selling kool winston, salem and maverick. reynolds, lorillard and imperil mixed session with impirial up. >> despite a small drop in pe backed buyouts during the first quarter over last year the actual value of deals increased 14% globally. north america has been

particularly strong with an 86% rise with the value of buyout deals according to industry research firm. joining us now is christopher, head of private equity products thank you for joining us. what's driving this deal activity? >> so if you take private equity as a whole it's been a picture of stabilization since the financial crisis what has actually happened is overtime when you go back to the financial crisises of 2008 fund managers sat on investments as market conditions crashed before they could realize and what we have now found is market conditions have picked up is they have been able to exit these investments and over that period of particularly the last couple of years there's been an absolute huge amount of exit activity from pe fund managers this lead to capital xps and the

extent to which those are actually surpassing capital calls they're giving a huge amount of liquidity to investors. >> that leads me to my next question. do you think optimistic growth assumptions are leading to private companies being overvalued. >> yes and no if you look at the values of the company there's no doubt there's concerns about pricing. on the one hand you know there's an enormous bout in the market about $1.3 trillion at the moment. so there's no doubt the fund managers have the cash available to put to work but at the same time they have concerns that they can find attractive entry prices which in-turn obviously if they can't do that is going to impact the returns they see in the long run. >> exit strategy a way of cashing out for the investor seems to be taking longer than it previously had. why do you think that is? >> well that's definitely been a reflection of market trends as

those have declined. the arch holding period has increased from the financial crisis of 2008 up until last year. now interestingly in 2015 for our year to date data we have actually seen the first drop in that which could mean that a sort of milestone has been reached but obviously only more data will tell. >> absolutely. christopher, thank you for joining us. head of equity products and one of the biggest scandals in football history kicks off? zurich as officials are arrested. more from fifa headquaters coming up next.

welcome to the second hour of worldwide exchange. a scandal rocked soccer's highest governing body. six fifa executives are arrested for alleged corruption involving millions of dollars in bribes passed through u.s. banks and the u. s. calls for european leaders to reach a funding deal with greece as g-7 ministers meet in germany. also boosting global growth and the bond market volatility. clear for take off. the u.s. airforce certifies spacex to launch military and

spy satellites ending a monopoly held by boeing and lockheed martin. an ipo is in the works with the messages app currently valued at around $15 billion. this as a ceo warns a tech market correction is on the horizon. >> and welcome to the show. we did see a sell off on wall street overnight. let's look at futures and what we can expect in today's trade. right now the dow up 43 points. the s&p 500 up about 3. that's the implied open. the tech heavy nasdaq that saw the brunt of the sell off with apple losing 2.3% in yesterday's trade also indicating a higher move by around 10 points in premarket. the euro dollar trade has been the big story for investors. in fact the stronger dollar one of the reasons traders say we did see the sell off on wall street yesterday. of course stronger dollar not good for export growth.

it's also not good for revenue on the big multinationals that make a lot of money overseas. right now the euro gaining a little bit of momentum against the u.s. dollar so not at the levels we saw last week of 114 but the euro holding on to 109 against the u.s. dollar. what does this mean for european markets? a weaker euro. the best scenario for the exporters but in today's trade investors brushing off the slight move to the upside with the xetra dax all holding on across the green. a different story than what we saw awhile back. the italian markets at 23,477 up by around 150 points. taking a look at bonds, of course the sell off in the bond market was the big story about two weeks back but we've seen levels stabilize over the past couple of days. the german 10 year bund at

0.53%. the 10 year gilt yielding 1.8% and you're looking at the italian ten year at 1.9% but all eyes on the 10 year u.s. note yield of 2.14%. slightly lower than a couple of weeks back but still well above 2%. what does this all mean for commodities? the stronger dollar yesterday lead to a sell off in the commodity complex. we saw wti crude lose about 3%. in today's trade wti holding on to 58.77. up 1.3% in fact. the brent crude and international gauge for oil up around .9%. we also saw a sell off in the gold complex yesterday. in fact losing around $16. today though a little bit of a rebound holding on to 1,187. still below 12,000 which is seen is a key level for those that watch technicals on gold. silver seeing a gain of

around .14%. now back to our top story of the hour. six officials from world football's governing body fifa have been arrested in switzerland with connection with alleged bribes totaling more than $100 million. they face questioning and possible extradition to the u.s. investors confirmed to nbc that the charges relate to fifa's handling of the world cup and other international tournament ms. the six officials were detained where fifa had the headquaters. it's alleged the bribes were made in the u.s. and the payments were made using u.s. banks. now fifa president sepp blatter is due to face a re-election vote on friday. the big question is if that changes given the charges that come to the forefront. fifa is due to hold a press conference any minute now. we'll bring you that live as soon as it happens. >> switching focus to the g-7

the u.s. is expected to pressure leaders to speed up a funding for greece. this as they down play fears of a default on athens payments to the imf due next week. let's get out to steve who is live at the g-7 summit with more on what we can expect steve. >> yeah seema, i thought it might just be worth just mentioning to the viewers why we're here. it's a very important town. very close to poland and the republic as well. it's a symbol of how far europe has come. our older viewers might recall they had horrific losses at the tail end of the second world war. thousands and thousands of people lost their lives right at the end of the war really in february 1945. there was carpet bombing, fire bombing from the u.s. and royal air force as well so it's a city

which has seen enormous rebuild rebuilding you have a church only rebuilt from the 90s to 2005. i only mention this because it's a great symbol of something we don't talk about often and that's why it's important to have european unity. we talk about the money all the time and we talk about austerity and the great debates of germany versus greece but it is important to realize why we had the eu formed in the first place. it was as much about security and unity concerns as anything else. as we continue to talk about this between greece and germany it's important to remember there are greater issues perhaps that europe was founded on as well. but that said it continues and germans have been very forth right just pointing out why they believe that their policies are right. why they believe that they are not the culprit in the whole

european crisis. writing recently about how germany hadn't benefitted from this crisis. how stimulus was not the answer and wasn't part of the g-7 mantra this time around under the german presidency and saying pumping more liquidity into the market was not the right answer. he was echoing what mario draghi has been saying that as well as monetary support what the european area needs is of course more reform structurally and just rebuffing those critics saying the creditor nations do not appear to be moving toward a pragmatic solution and rebuffing some of those critics from outside of the euro zone as well saying the germans as a massive surplus nation and you can put the chinese in that bracket as well need to go out and spend more and that is not the answer to getting out of this crisis. we'll be speaking to a lot of big players over the next couple of days. joe oliver on closing bell plus i'll be speaking to mr. kuroda

who is the bank of japan governor. back to you. >> a big line-up coming up. plenty more from g-7. we'll be speaking to the bank of japan governor. we'll bring you that interview tomorrow on cnbc. now numbers just hit the tape so we'll get you those numbers. .37 cent a share. income of 67.9 million. 35 cents per share in the fiscal year 2014 second quarter. you can see toll brothers now at $36.99. down by around 1.86%. they believe the average price of deliveries for the full fiscal year of 2015 will be between $730,000 to $760,000 per

home so earnings up 36 cents per share. oil and shale are battling out for market share. which is likely to gain the upper hand? analysis on what's next in the sector coming up. plus fifa is due to hold a press conference any minute now. we'll bring you that live as soon as it happens. don't go away.

spacex is cleared for u.s. military launches and an ipo is on the way. goldman sachs sees brent staying around $65 barrel from 2016 to 2018. increased shale production means they're expecting a $5 per barrel price assumption in 2020 and goldman identified several companies that could end up big winners. let's get that list head of european energy research joining us here in studio. help us understand how you find opportunity in the energy market when we're seeing so much

volatility in the price of oil. >> it's a time of great change and the industry is completely transforming as we think that the producers in the u.s. and opec are fighting for market share and we think that's where the market is. it's in those company that drive that continued improvement in the product activity in the u.s. >> companies with superior growth and profitability but with a diversified asset base. give us the names that fit that criteria. >> yeah, so the key companies that we benefit here are the oil service companies that mainly work on the fracking and completion of the u.s. wells and the companies that own the best part of the eagle fort and

instead within the companies will really struggle are those connected to the heavy oil, to lng and more broadly within the big oils we really struggle in this new government where they need to rethink the whole business model. >> talk to us about the flattening of the oil curve and what that means for the oil price going forward in the last year alone the cost curve has come down by 20 dollars. partially as a result of upgrading but also of deflation. we think it's going to be the driver that we continue to lead this cost curve down through the years so by the end of the decade we see an oil price environment of $55 brent, $50 wti. >> but this inflationary environment we're living in right now whether it be in europe or disinflation in the

u.s. is supposed to change. >> it may very well change for the rest of the economy but in terms of the oil industry within the deflationary trend will continue and be driven by a variety of factors. first that share product activity keeps getting better even in the most traditional the shale development areas we have seen a 10% year on year improvement in product activityivity over the last two years. secondly we think countries will fight to get a lot of investment in. we see a lot of countries in west africa which could see a dramatic fall in investment unless they improve their tax regime. so lower tax regime improved product activity and also thirdly we think across our services supply chain it will lead to more efficiency and lower costs. >> but are you expecting an

overall deceleration in growth? could we see increased spending? >> spending will come back. >> that was a big concern a couple of months ago when oil was trading at 40. >> spending will come back. mainly in the u.s. shale where we see it starting to pick back up in the key areas but also other countries have opportunities. for instance if it was a better investment climate in argentina we think it could be as large as the shale development area could see massive investments. >> fascinating research. thank you for joining us. head of european energy research at goldman sachs. now back to our top story out of fifa. the department of justice, we're getting so much flashes. 9 fifa officials and five

executives have been indicted for corruption. two vice presidents among those charges. if you want to let us know what we're learning. >> the scale of this is growing all the time. when we first reported this the indication was six individuals. we didn't really know the status and as the morning has gone on what we found out is actually this runs right through the center of fifa. so it's not just the nine fifa officials. it is five executives who have been indicted for corruption by the department of justice and racketeering, wire fraud, and money laundering are the charges that are being leveled against these individuals at the moment. we understand that this relates to the voting that took place in 2010. we're talking about $100 million

worth of cash going into bank accounts. these are all allegations. clearly charges are being leveled so we're somewhere away from the trial of these individual but this to me looks like there is no way that the friday vote can now take place. sepp blatter was intending to stand for his fifth run as fifa president. it's not clear that he is free of allegation. at this stage he has not an arrested. it would appear the charges have not been leveled against him but back as early as the 15th of may or there abouts he was asked about an investigation being conducted by u.s. authorities and he said at that time it does not relate to me directly as far as i know. but i think almost impossible now. there were two candidates running, sepp blatter and then

the prince of jordan the main rival and neither of these gentleman are saying very much at this point but impossible to believe that friday's vote could go ahead. for goodness sake five of the executive council will not be around to cast their vote. >> as astounding story. up for re-election. his fifth material butterm but if he is not reelected do we know who else could be at the helm? >> that's very difficult to say. just the electoral process itself has to be suspended. i don't know how they can proceed with this. so we may just see everything frozen frozen. we know he represents the main challenger but how could they move ahead with with an electoral process when we don't know the depth or degree of the organization that's been touched by these allegations? so we are still wait and watch but it's clear that as the

morning has gone on this thing has just mushroomed in size. >> now fifa is due to hold a press conference at its zurich headquaters following the arrests made this morning. we'll get you to that conference as soon as it comes about. it's come live. let's cross out to more of that conference. >> i received the media release by the attorney general of swit switzerland switzerland. there's no more to be said as to the content for obvious reasons but let me outline four items that are important to us. first and foremost fifa initiated this process on the number 18 last year. fifa launched a legal complaint with the federal attorney. and as you all know it had to do with the attribution of the

world cup's 2018 and 2022. on this basis, realized the attorney general of switzerland for their current investigation and the second point important to me in this wish to underscore is that fifa and the timing may not be obviously the best but definitely fifa welcomes this process and fifa cooperates fully with the attorney general of switzerland and the federal office of justice. and it corresponds to all requests for information and the third point is very important. this was also underscored by the attorney general in their press release. this was under scored explicitly and i wish to repeat this, that

this, many this case fifa is the damaged party and this leads to the fact that there were no searches within the offices of fifa. the people of the federal attorney are here. we provide all the information requested by them and this for our own interest. because it is of our highest interest that i'll open questions and answer all questions open in the light of these complaints we have lodged on the 18th of november. now i saw tweets. i saw media releases and comments and speculations. let me say that the general secretary and the president are not involved in this procedure.

as to the names published in the media this morning, i am unable to comment. this is also in the press release of the general attorney and then you would have to address him also. you have his data or if you have questions to the federal office of justice you have the person to get in touch with him. now you certainly have questions. when it comes to the kwoegsquestions and answers there's hardly anything we can say. i can say nothing more and nothing less than that that has been said and written by the

federal attorneys office about an hour ago. let me tell you, we are very happy about what is happening right now. it is once again unfortunately fifa suffering under these circumstances. it is certainly a difficult moment for us. you know we have lots of questions. will conference take place? one thing has nothing whatsoever to do with the other and there may be news on that but from our side it will definitely be carried out but taking into account this current procedure but this is not related to congress. now i hope i have been perfectly

clear and thank you for being here. now i'm giving you this information right now. we are of course in very close contact with the attorney general and it is quite possible that perhaps later during the day or tomorrow we will be able to give you an update on the situation concerning fifa. so take this information, status 1126. we know nothing more right now. and we also know what we have been informed through this press release and perhaps my colleagues with the microphone could gather the question.

>> thanks. you said that congress will go ahead as planned. will the election take place as planned? there's been some suggestions that he's looking to have the election postpone. >> well then you know more than i do because there was never such an idea to postpone congress nor the election. as i said before one thing has nothing to do with the other so we go on with the agenda and the election will take place as planned. >> walter do we then assume these probes are just

coincidence in terms of the timing? >> i give you the answer from the general attorney and he said it but you're going to ask him as well that all the people that are interested to talk to they are here for the congress. so for them it's easier once they're all here. but this is the answer we received received. >> good morning, can you confirm how many serving members of

fifa's executive committee have been arrested in connection with the investigation and is there any doubt now over the world cups in 2018 and 2022? will fifa reconsider a revote? >>. >> two noes for you. no no. i cannot confirm the names. i cannot confirm how many people have been arrested. how many people are investigated and so on and i can say what the president said in the past press conference. they will be played in russia.

>> you say the events have nothing to do with congress. it's warranting an investigation that you didn't know about. one that people did know about. how can you say the two events unrelated to fifa and to what goes on here? >> well you're going to ask and that's what we received. they had to coordinate and try to be as efficient as possible and the fact that it took place two days prior.

and the second one is good international coverage. >> since you basically implied that the police and the justice is doing this in part for the press, can you tell us have you ever thought of a lowest moment in the history of fifa than this one? and over which fifa will president blatter preside after this? >> i say it again because you don't believe me. this for fifa is good.

not in terms of reputation but in terms of the reform process this is good. i wouldn't have any interest to give the files to the attorney general in november if we hadn't known the consequences. it's not a nice day and we have other things to do as well but it's also a good day because i think the process goes on and we're looking forward to complete results. it leaves rooms for all kinds of speculations and it is for sure something we're looking for.

but you have also the right coverage of the media so this for sure was not the main goal i guess. first of all, how when the world cup bidding process is under investigation can you cat goric rule out those will stay there? and many will look around and see although sepp blatter hasn't been indicted but he's head of fifa for so many years. how can he continue in power? >> it's the although. although. it's not just something that is not important. it is important. he is not involved. how can you say although. what do you expect from us?

that we start to speculate and say maybe we have to redo the voting voting? it will be played. this is fact today. i don't go into speculation after tomorrow and so on. this is what i can tell you. not more and not less. >> following on from robert's question, in any normal organization that received scandal and crises for decades and two big investigations the senior leadership would be held accountable. why on earth is mr. blatter still the right person to run fifa? and secondly you said that fifa

is the damaged party here. is it not the case that it's the billions of football fans around the world that are the damaged party. >> well for sure the damaged party are all of us. i agree and football fans for sure but on the first part what would you want me to answer? no the president is not involved. of course he is the head of fifa but he is not involved in any so how can you say okay he has to step down? he's the president and in two days there's election. they will reelect him and then he is the president for the next four years. please. >> all right that was fifa's director of communication that

says they will cooperate and the timing is not best. at this point no plans to postpone the vote this friday and the world cup 2018 and 2022 will be played in russia and katar as planned but you have been listening to this press conference as well. it's probably too early to say. >> yes but this is the head of communications. what would you expect him to say at this point? he is the man thrown up to do a damage limitation job here at a very early stage of what is an unfolding story and at the moment walter is saying fifa is suffering and fifa is the damaged party but i don't think it will wash with most people looking at this story at the moment. this is an organization that generated $2 billion in revenue from the last world cup. it made a profit of 330 odd

million between 2011-2014. this is an organization that manages huge sums of money and has tremendous responsibility for allocating events like the world cups coming and there is potential for misdeeds and corruption. these are the allegations now that these 14 individuals are facing as far as the department of justice is concerned here and i think astonishing that sepp sepp blatter has not appeared in this press event and at this stage we do not have a clear comment from the president of the organization about what happens here next. >> is the brand impacted? >> of course it's impacted. the head of communications can say we're the injured party and it doesn't effect us but quite clearly it does and i would be

surprised if they feel that they can just move ahead with business as usual which is what he seems to be saying at this stage as this investigation continues to unfold. we'll find out a lot more about what's going on inside fifa because for most people this is a black box that's hard to get inside of. you have 209 fifa associations that played a role in allocating these world cup decisions and now we're just starting to find out. well perhaps if these allegations prove true at the end of the day there were lots of things happening within the organization that somebody at the top must have known about. >> sure. >> surely. >> nine fifa officials and five corporate officials indicted. we'll continue to get you the highlights for now. jeff, thank you so much. wilfred frost is on his way to zurich.

we'll have live coverage from there later today on cnbc. let's get a look at markets. u.s. futures pointing to a higher open after a sell off in yesterday's trade. the dow struggling holding on to the 18,000 mark right now indicating a higher move by around 60 points in remarket trade. a look at european markets. they are cheering the weaker euro against the dollar and you are looking at european equities higher across the board despite the sell off on wall street and asia. overnight the dax holding on to a gain of around a third of a percent. if you take a look at the currency market the stronger dollar impacting u.s. trade in yesterday's trade but the euro gaining a bit of ground against the u.s. dollar at 109 up a third of a percent. but still off the highs of 114. now president jeffrey lacker is

still undecided on whether to vote for a rate hike at the fomc's june meeting. he'll make the call based on economic data between now and then. he does say there's a strong case for a hike as inflation is firming and the u.s. economy is set to rebound from a weak first quarter. let's talk more about what to expect. investors returning from the holiday weekend and saying maybe it's time to sell stocks. the s&p 500 ending lower. the dow failing to hold on to 18,000. do you think this is a start of a wider correction? >> it maybe. it's always hard to predict the short-term. to keep this in perspective we're at record highs. we might be 1% off right now but we're still sitting at record highs. it's difficult to predict what

investors may or may not do in the stock market. there's very little in the way of evidence to support that. >> when the dollar moves the stock market listens. would you say that was the catalyst behind yesterday's sell off? >> i don't think it was a catalyst. they were certainly coincidence. i'm not sure what happened yesterday. the economic data was good. the durable goods report showed the second quarter on stronger footing than the first quarter ended and along with a few other data points it felt like there was a positive tone to the data and i'll always take better economic data than worse but obviously the stock market didn't and we traded much lower on the day and more importantly the treasury market rallied very very hard. so if you think that the economic data was supportive of a rate hike in june well the bond market told you something else which contributed to some

of the confusion. >> when you take a look at the treasury market does it tell you that there's a mismatch between fed policy and growth expectations? >> that's a good question. i'm not sure. my thought is multifaceted and the short answer is i have the great pleasure of meeting with terrific clients of all stripes across the country and the world and i just -- there's a lot of them that do not think that the fed is going to raise interest rates this year. some of them would go so far as to say some what flippantly but some would say they're not going to raise rates ever and i find that probably filters into the treasury markets and longer term treasury yields to some degree. there's a mismatch in my view between what some investors expect and what they're actually going to do because btig believes they're going to raise interest rates this year most

likely in september. at the same time fed policy isn't the most impactful at the longer end of the curve. that's impacted more so or equally so by growth and inflation eck inflation expectations. the jury is out in terms of what the next ten years will look like and you can understand why yields are as low as they are. >> that housing data yesterday perhaps a vote of confidence for janet yellen to raise rates in september. lastly, i want to ask you about technicals because we're look ago t the dow trading below it's 50 day moving average. do you think that's reason to kind of sell stocks perhaps? >> no i do not. i will say that katie who runs stocks for us here is phenomenal and i talk to her daily about these matters. i don't look at the dow and the s&p is at its 50 day if not a touch above it.

if we threw up a chart right now you'd find the 100 day moving average has more support than the 50 day and then at the same time, i don't know that too many people sell stocks because you're below the 50 day moving average. if that was the case stocks would never rebound because you would always be below some moving average. >> a look at fundamentals and technicals from our chief global strategist. thank you for getting up early with us here on worldwide exchange. moving on the death toll from the weekend storms in texas and oklahoma is now at least 17 as flood waters recede. texas governor greg abbott is warning water is still rising in some locations. the search still continues for about a dozen people missing near the town of women bermudaly. the storm should ease over the next few days. we leave you with these pictures as we head to break. 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 spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

all right. nine fifa officials and five corporate executives indicted for racketeering and conspiracy and corruption. the head of communications of fifa is fielding questions from reporters in switzerland. so far fifa welcomes bribery investigations and it will cooperate with swiss officials although the timing is not the

best and so far the re-election will go ahead as planned. there's no idea at this point to postpone the vote. the big question is will blatter stay at the helm of fifa? the director of communications says this is a difficult moment for us but the meet willing go ahead as planned and blatter is not dancing in his office or a happy man but he is calm and will cooperate fully. we'll keep you up to date as we get more headlines. snap chat has grown by leaps and bounds. now the ceo and co-founder is weighing in on the future of his company and the tech sector. let's get to landon with more. >> hey. >> hey, seema. good morning. he came up with snapchat with two friends at stanford university. the 24-year-old opened the conference tuesday night. he says the company an ipo but didn't offer too many

details details. >> that really matters. we need ipo. we have a plan to do that. >> planned ipo by. >> again, i can't give you color there but yes. >> what does an ipo look like for you? do you have revenues? what is the -- >> an ipo looks like a lot of things but most importantly it looks like just another dot in the growth of our business. >> snapchat was valued at $15 billion following a fund-raising round in early march. it's worth tens of billions of dollars on the private market. snap chat has 100 million daydy active users but hasn't disclosed profit and revenue numbers. the company hasn't spoken about

going public or the offer it received from facebook. he doesn't want to entertain another offer and prefers to stay independent. a highlight might be his take on the tech market. he warns a correction is coming. >> it's the result of easy money policy effectively. so when you have near zero interest rates or negative rates in some companies and governments have printed a lot of money i think that people are making riskier investments and i think there will be a correction. it's a question of when. i think everyone sort of thoughts about that. we don't know when it's definitely something that we factor into our plan. >> snapchat is largely used by young people and to expand it's market the company is considering some changes such as the hold-to-watch feature which

amakes them keep a finger on the screen to watch video. >> thank you. we're looking at oil prices slightly higher in today's trade after moving to the down side on the back of the stronger tlardollar. brent crude up 64.13. now the iran-u.s. nuclear deal in focus. in fact iran's nuclear negotiator says talks with major powers might be extended beyond the june 30th deadline. that's according to a report. before we get a break, here are your headlines. scandal rocks soccer as nine fifa officials and five executives are indicted for alleged corruption. the u.s. calls for european leaders to reach a funding deal with greece as g-7 ministers meet in germany and the irs says hackers gained access to information for 100,000 u.s. taxpayers.

>> it's a top story this morning. nine officials and five executives have been indicted by the u.s. department of justice for racketeering, conspiracy and corruption. the current and former presidents of the association governing soccer in the u.s. and neighboring countries are named in the indicts. fifa announced its leadership election will go ahead as planned on friday. >> there was never such an idea to postpone the conference or election. one thing has nothing to do with the other so we go on with the agenda and the election will take place as it was planned. >> switching focus to retail first quarter earnings before

the bell with analysts expecting a significant drop in earnings per share to 69 cents. they're waiting to see what effect the stronger dollar will have on the luxury player. meanwhile, first quarter earnings after the bell. they're expected to build the top and bottom line growth before the previous quarter. brian joins us this morning. thanks for joining us. it has gas stations it did benefit from when oil prices fell but now that they're back on the rise does the story change? >> maybe a little bit. it will be difficult to watch tonight but i think largely the market is going to look past any type of gas price disruption. what we learn again and again and costco is one of the best run retailers in the world and the people that own the stock own it for the long-term retail prowess of the company. i'm not concerned about what

impact gas prices may have on the stock price. >> stock is down 8% from the all time highs. would you say it's undervalued at these levels? >> that's my only concern. i don't think the stock is undervalued here. i have been hesitant for some time fwichb the multiple at which it trades. i'd like a better opportunity to buy the stock. >> if the stock moved lower after reporting earnings you would be a buyer. >> it depends. have to see how much it moves down. i have some multiple targets in my head as to where i think costco could get attractive. i give the company credit for being one of the best run companies out there. >> ryan retail earnings have been less than stellar this quarter. how much will the stronger dollar be at play here? >> it's a very interesting topic. tiffany is going to report here in about an hour. i think everyone knows and i

think the company was very good to guide q-1 conservatively. i think the risk and i have written a lot about this for our clients is what the company says about the rest of 2015 and there's a chance that management lowers forecasts. >> we're going to leave it there. senior analyst. >> thank you. >> taking a look at european equities, yesterday one of the reasons we ended in negative territory was the on going threat of a greek default. interestingly enough the u.s. treasury secretary is here in london speaking about the greece situation. he says greece needs to implemented difficult policies that would be hard for my government. so there you go. talking greece. and we'll leave you with the live shot of london where the

queen is due to open the parliament. that does it for us on worldwide exchange.

good morning, break overnight, high ranking international soccer officials arrested in a $100 million corruption probe part of a big u.s. investigation into the sports governing body. and john in a blink. snap chat ceo fears that years of zero interest rates have created an asset bubble and he's factoring a correction into the start up business decisions and stealing from uncle sam. the irs warns that thieves gained access to information from more than 100,000 taxpayers. it's wednesday, may 27th 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 here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. jay-z striking the nerve of one business saying water is free while promoting his music streaming service. now denver water is publishing a open letter explaining the economics of water. first let's get to the market business of this morning and take a look at what's been happening with u.s. equity futures. the market was down. declines of about 1%. this morning futures up about 55 points above fair value. s&p futures up about 5.5 and the nasdaq up by 14. this comes after the dow dropped triple d