welcome everyone. you're watching worldwide exchange. here are your headlines from around the world. stocks in china sell off as volumes hit a session record high. the shanghai composite hosts the biggest fall amid long going liquidity concerns. the nikkei with the longest winning streak in 27 years as the yen continues to follow verses the dollar but the bank of japan governor tells cnbc it's nothing to do with qe.

>> we don't think of any asset bubble bubble. we cannot allow instability. >> european stocks in the red as officials dampen hopes of an imminent deal with greece. ecb board member tells cnbc the central bank won't bend the rules to save athens. >> one has to be quite clear. we do not have a possibility to do financing. >> meanwhile, fifa presses ahead with it's presidential election. this as authorities reveal the number of authorities arrested for criminal charges are facing extradition to the u.s.

welcome to worldwide exchange. record volumes in shanghai as the composite index ended the session down 6.5%. this after the chinese stock index closed at a 7 year high in yesterday's trade. why did we see such a big sell off in the chinese market? let's get to have following asia's trading action live in singapore. >> hi there. i've been saying for sometime that potential is building in the market and on capital connection. i was talking to darius who agreed with me. before this correction happened we were discussing this and he said look this market is ripe for a correction. here we have it. we're up by 6.5% at the close. this is the sharpest decline for china stocks since january 19th and there are two main reasons here. the first one and remember it was lead by the brokerages and

this is on reports that those brokerages are going to increase and tighten the restrictions on margin lending. this is essentially stocks being purchased on credit. this has driven the bull run of chinese equities. there's an attempt here to prick the bubble. you have to step carefully because we're talking about 2 trillion in margin debt that has been accumulated. that is almost 3% of chinese gdp. the other factor here that i've been hearing and this is unconfirmed that is the pboc have been draining liquidity through the back door to try to enforce more discipline on the stock market. the big question for me is whether this is the healthy correction that encourages more investors back into the markets to have another go. if they missed the bus the first time around or whether we're going to see an extension up the

slide on tomorrow's session. on friday. again i spoke to darius about this and he said that the momentum was very strong. so it's conceivable that we could see an extension of that slide into friday. remember as well next week is going to be another big test for chinese equities because we have pmi data out. back to you now. >> just following up here it's just a crack down on margin lending that may be the reason we saw the sell off in the chinese market. do you think valuations are also a part of the story? i believe stocks trading at 70 times forward looking earnings? >> yeah be that as it may there's a sense in the market that valuations are still quite attractive despite the very sharp run in chinese equities. valuations are still below the

peaks in 2007. you have to appreciate the money heading into the market. the other dynamic here is that the hong kong markets suffered today. down by more than 2% but remember that the valuation gap still seems to favor the hong kong market over the shanghai composite which is still trading off a 30% premium on average against the hang seng so in the medium term momentum is probably going to favor hong kong equities simply because of that valuation gap. back to you now. >> for now, thank you so much. now to the currency market. the euro is holding on to gains after a volatile session on a number of mixed messages on greece. officials in athens voiced optimism that a cash for reforms deal with creditors was close. however the eu commissioner and german finance minister knocked the wind out of the rally by

denying the report. imf chief was told that there was still quote a lot of work to do before there will be a solution on greece. however she added that she is confident that athens will fulfill it's commitments. meanwhile, ecb board member told cnbc exclusively the central bank won't break the rules to help greece. listen in. >> there's always a lot of noise in such a situation and i think the important point is to distinguish them less from the facts and what we want of course there's a bit of psychological warfare but this is all the political side so we are not involved in this. it's quite clear that we have certain conditions to be met. one condition is that it can

accept greece bonds as collateral. the answer is for the time being no. the second question is whether there are other ways of financing. this is the way of emergency liquidity assistance. also this is under the con to and also under the risk of the national central bank or the greek central bank but it has to get approval. >> you mention collateral. the scheme is the lifeline keeping greece afloat. would you consider changing part of it or restructuring it in a different way in order to help the greek banks which could be looking at running out of eligible collateral so they can

stay afloat when an agreement is found. >> one has to be quite clear. we do not have a possibility to do some let's say, financing outside our rules. i know there have been some ideas floating around that we might give some kind of interim financing just like that. i don't see any legal possibility for that. >> the greek government keeps talking about red lines. do you have any red lines? does the ecb have any red lines? >> we are not involved in this let's say, political bargaining process. so we look at the results and then take our conclusions. >> julia is now joining us to discuss the fate of greece. we've seen this movie before. encouraging comments from greek leaders. stocks move higher to find out that greece was overly optimistic on the stage of their

negotiations with creditors. >> overly optimistic was a kind way of putting it from the conversations that i had with my sources in brussels. greek spin was one phrase used and we also had wolfgang pouring a lot of cold water on it. the truth is somewhere in between. new progress is being made and talks are continuing but we're not likely expecting to get a deal even by the end of this week so you have to take some of the commentary with a pinch of salt. no wage cuts a hong term solution and developer package. a real win if that's the truth here. >> the time will only tell. as greece navigates, t-bills are the only source of commercial borrowing at this point. what's the role in all of this. >> what we got there was saying we can't bend the rules.

there's legal issues. they're not going to allow fiscal policy or the banks in greece to finance the state but if we have a program in place they're starting to see implementation of policy once we got the deal signed. the process will then allow the euro group to sign off on it and the hope there is if we start to see them implementing policy perhaps the ecb will raise the limit on the t bill issue they can do. they need to make sure a deal is in place and policies are followed through. >> when could we actually see it? >> they're saying it's already being drafted which is one of these things still to come. who knows? but we're not going to get the announcement on that. you have to wait and see what we get from the european leaders. first thing is the benchmark

here and get it. >> right now we're seeing the euros come off the highs. we'll leave the discussion there. from the euro to the yen, the japanese yen touched the lowest level since 2002 against the dollar. it's a hot topic among finance ministers meeting at the g-7 meeting in germany but the bank of japan insists the exchange rate reflects economic fundamentals. steve is joining us live where he caught up with the central bank governor of japan. steve, tell us understand what were some of the main takeaways. >> we're all obsessed by greece. why? it's a distraction and because as jack lou i just saw following

up because there will be contagion contagion. he just said this ring fencing of greece away from everything else going on in the world is a myth really. you cannot say there will not be a domino effect. you cannot say this wouldn't lead to events in spain and elsewhere. now here in lies the case and point. if japan was firing on all cylinders. if they were near their 2% inflation target and growth target as well do you think we would be worried about greece? if germany was surging ahead with growth and moving ahead and the u.s. was on the second rate hike by now we wouldn't be worried about greece. it's because of concerns of instability and because of the chinese stocks that we have worried about greece. they're worried it's a lightning rod for other events and yet he was very optimistic echoing the previous comments about

inflation target and it will be met. he said there's several reasons we think inflation targets will be met. we'll have to wait until the first half of fiscal 2016 which is a little later than what they estimated but he think thes will get he thinks they will get to that level. and because there is going to be job negotiations in the spring. that's very important for the currency. it will maybe draw a line under the 13 year lows for the yen and 13 year highs for the dollar. >> in general from the discussions with leaders, do you subscribe to the reasoning that soaring stock prices means stocks are overvalued. >> one thing i will say is kuroda did not see any signs of financial success in the

markets. we'll try to get it to viewers on worldwide exchange but he said categorically we have a financial stability mandate -- in fact we have that tape. let's listen in. >> we are always careful about financial stability because the bank of japan's two main objectives are that. whenever we discuss commentary and monetary policy but also financial stability. we carefully -- and so far we haven't seen any kind of excess.

excess in the industry and so at this stage, we don't think that there's any asset bubble or stock market bubble but we will continue to carefully monitor financial system and like other central banks. we will not allow financial success or instability developing. >> now that interview has been getting a lot of traction on social media. so we want to hear from you on this. do you agree or disagree with the japanese central bank governor? do you think qe is creating bubbles? join in on the conversation here on worldwide exchange. get in touch with us by e-mail

at worldwide@cnbc.com twitter, my personal handle on the bottom of the screen and steve what's your twitter handle again? >> thank you very much. one thing i will say is its clear in some asset classes they look like bubble-like conditions around the world but why we talk about the nikkei is because amari who is a government minister about a month ago he said if there is a small bubble and he said if he didn't say if there is one, he said if there is a small bubble in the japanese stock market that's something we would welcome and we can control. i think that's very dangerous language when government ministers start talking about if there's a bubble that's okay as long as there's a little one. that's something i spouted about and i'm glad you have given me the platform. so thank you, seema. >> listen, it's a contentious debate as to whether we're in a bubble or not and various leaders from central bankers to

finance ministers. i posed that question to the finance minister of india as to whether the indian stock market is a bubble. we'll get out throughout the show and in the meantime let's get a european market update. the stoxx europe 600 posting it's best one day gain in a week on the prospect of the deal coming together. stocks losing a little bit of momentum. we're looking at the index down just about a third of a percent. if you take a look at the major indices you'll see red across the screen here. the ftse 100 still holding on to 7,000. we do get the u.k. gdp number expected to come in at 0.4% 0.5% or so. the bright spots expected to be construction and the services sector but a lot of focus will be on whether the political instability priced into the u.k. market and some of the economic data now that that discounted given that we know who will be leading the u.k. for the next

five year ifs that will help resurgence in business activity here in the u.k. the dax right now down by around 31 point although we should point out some of the exporters help the index climb to new highs. we did see a trim digit move to the upside in the german markets yesterday. cac 40 at 5,156 and italian markets down by around 70 points. the bond market interesting moves. in europe negative rates have been a powerful source and we also heard that negative rates are not for the long-term but in this environment where investors are searching for yield we have been seeing a bit of bond buying. a different story than earlier this month when we saw the big sell off and right now the german bund yielding 0.53%. but all eyes really on the ten year treasury note given the mixed economic data we have been getting out this week. durable goods, housing prices.

we have to keep in mind that was very strong. so a vote of confidence. one of the focuses for janet yellen and the fed as they consider when to raise rates in 2015. 2.14%. just off the highs we saw about two weeks ago which is 2.32% keeping an eye on the bond market. plenty more coming up here on worldwide exchange including an exclusive interview with the ceo of security software maker symantec. i'll be speaking to him at 11:20 cet. make sure you won't miss it.

airbnb has been tipped as a potential ipo candidate this year. the ceo talks about the risks of going public. >> everyone better understand what your long-term vision is and what you're doing. the worst thing in the world is seeing a company that gets hammered on by investors and people don't know what they're doing, they're questioning their next move. i don't want anyone to wonder about my next moves. i want to make sure the next big moves we make we already made. i want to take a lot of the risk while we're a private company.

let's talk about start up opportunity. joining us now is fred destin fred, a pleasure to have you on the show. i have been on the hunt for finding the next silicon valley hub of europe. our focus is turning to the east as more governments allocate capital toward entrepreneurship. is excel in eastern europe and if so why. >> eastern europe has delivered over the years many high quality companies companies, but now we're seeing a bubbling of talent. we have invested already in companies and we're seeing companies such as skype and opportunities bubble everywhere where as in the best we had logical hubs to go through. now we're seeing that innovation is distributed. this is why i'm here today. east meets west and trying to

find the next generation of great entrepreneurs. >> that brings up my next question. does this also have to do with valuations? the ultra sized price tags pushing investors like yourself to broaden your scope of investment? >> i don't think it's correlated at all. we always invested in places like finland and found places like holland or spain. so we always looked at entrepreneurship as being able to come if any zone. the valuations are clearly some what out of control on the later stage round but it doesn't really impact what we do at the earlier stages to be honest. it's not been a factor for us even though the market as a whole is very buoyant right now. >> i want to get your thoughts on drones. excel making headlines this week. announcing a drone venture capital fund. talk to us about the opportunity in this disruptive technology.

>> so we have a joint initiative so look at the best drone companies on a global basis and ended up making a $75 million joint investment out of china and now we're seeing drones a little bit like the phone industry. some people have to deal with great complexities of hardware how do you keep a drone flying, how do you deal with navigation but there's an opportunity for platform plays where thousands of developers and starters can build on top of a platform like that so we're leveraging our investment in what we feel is the best drone company in the world to try and build an ecosystem. we're doing the same on the drone side and the applications are endless from monitoring agriculture to media. so it's really -- the sky is the limit or your imagination is the limit in terms of what is possible with drones. >> there seems to be endless opportunities when it comes to the innovation when looking at drones but do the regulatory

head winds scare you as an investor? >> i have never been in a company where we didn't have any form of either legal or regulatory head wind. whether that was in video sharing or back on the pharmacy side. so we always have to deal with that because we're always at the forefront of what technology enables and the law and the regulation tends to come and adapt a few years later. this is part of our business. we have no particular concern around the drone space. we think it will get figured out. but that's part of our business. that's what we take on as a risk. >> i feel like a broken record but have to ask you fred you and i discussed this a lot but are we in a bubble in the tech environment given the type of valuations we're seeing? not just here in europe but what are your thoughts at the end of may? >> three points i would make

quickly, number one is prices are incredibly high. so i will not deny we're seeing a lot of price tension and that may point toward overheating of the market. secondedly however, we do live in an age of opportunity where companies are scaling incredibly fast. we've seen this with the likes of the remittance space. these companies that blow up very quickly like blah blah car. the third point i would make which is sort of new to me and something i have been thinking about is we have new forms of capital coming in that are destructive to the market. it's not so much classic late stage investors but private capital from the likes of them but they're very smart. run by very smart people. they move very quickly and are disrupting the private market. it's a new form of competition. >> we'll leave it there. thank you for your time.

coming up sports direct hits a home run with investors. is it the time to get in? we'll get you that story coming up on worldwide exchange.

and you're watching worldwide exchange. stocks in china sell off as volumes hit a session record high. the shanghai composite posting it's biggest fall in four months

amid on going liquidity concerns. the nikkei notches up the longest winning streak in 27 years but the bank of japan governor tells cnbc it's nothing to do with quantitative easing. >> we don't think that any asset bubble, we would not allow any financial excess or financial instability developing. >> european markets in the red as officials dampen hopes of an imminent deal with greece. ecb board member tells cnbc the central bank won't bend the rules to save athens. >> one has to be quite clear. we do not have a possibility to do some let's say, financing outside our rules. >> fifa presses ahead with it's

election as the number of authorities arrested for alleged corruption are contesting extradition to the u.s. >> welcome to the show. we just got data out and it remains unchanged at 0.3% quarter over quarter. we are looking at sterling lose a little bit of steam against the u.s. dollar at 1-5. we were expecting next trade to have contributed negatively offset by a more positive contribution from domestic demand an inventories. let's get reaction from the fund manager manager. a pleasure to have you on the show. it's unchanged from the first estimate. >> we're seeing an amount of slow down in consumer and corporate spend. we're seeing a very significant acceleration throughout the rest

of the year as the certainty from the result on the political scene gives them confidence to spend more. >> interest dag at a hit the tape right now. mortgage approvals in britain rose from the highest level since june of last year. seasonally adjusted data which is what analysts focus on is hitting a new high. the highest since the summer of 2014. is that an optimistic read here? a vote of confidence for u.k. citizens? >> definitely. we have had huge policy especially in the new build market. you can get extraordinary deals now on a new house and that's definitely starting to come through in the data. >> in terms of that uk q-1 estimate business investment of 1.7% quarter over quarter unlike the fourth quarter of 2014 when growth was export lead domestic demand is driving growth so far in 2015. should that also be a reason

that the central bank looks at raising rates earlier than expected? >> well that pressure will build as the economic data continues to improve but the bank of england has been fairly consistent that they would prefer a more sustained period of stronger investment but we're seeing a very significant pick up in consumer confidence and spend. what's driving it is real wage growth but very particularly outside of london and the southeast. it's starting to spread across the country and that's really having a big impact. >> an optimistic read. let's look at the u.k. stocks on the move. diy retailer trading higher after a rise in first quarter sales and retail profits helped by it's stores. a 1.6% rise in u.s. sales helped offset weakness in the second largest market france. now on the down side tate and lyle hints at tough times ahead. full year profits 30% in line

with it's forecasts. a leg down after investment group first reserve said it will sell it's remaining stake in the mining company. they'll off load over 34 million shares valuing the sale at more than 98 million pounds. now sports direct running toward the top of the ftse 100 after hiking the profit outlook. in a statement ahead of a presentation to the staff the u.k.'s largest sports retailer said success was due to lower interest charges and continued depreciation policy. you can see shares up around 4% and george you also find value in the sports space. >> i own a business called j.d. sports. they would be the retail choice of partner for nike and it's been a phenomenal story. they delivered exceptional results in the u.k. and they're taking that strategy across europe. so expect continued success

there. >> but if you wanted exposure to the sports fitness world wouldn't you want to stick with nike and adidas. they'll say their best shops are jd sports. they're opening up. this has been a phenomenal retail roll out story. very well run business and it's very clear that those big brands really want to support their roll out across europe and beyond. >> how much could currency head winds derail earnings going forward? >> it's a very -- the currency moves we have seen for investors are very difficult to deal with. you have a strong dollar and weaker currencies and there's lots of moving parts. a number of the larger companies have had hedging companies and that's fx volatilities unfortunately one of the uncertainties we have to live with today. >> talk to us about your other

top holdings. where else are you planning opportunity here in the u.k.? >> you were talking about king fisher. i have a lot of investments in the housing repairs improvement sector. smaller business tops tiles, i had a good meeting with the management. they control about a third of the domestic tile market in the umt u.k. i still think they'll continue to trade well along side the mortgage data you mentioned earlier in the program. >> wonderful. we'll leave it there. thank you so much for your perspective on the markets and where you see opportunity. fund manager. moving on to japan, japan's latest economic indicators are being announced. let's get out to the nikkei with more on that story live from tokyo. >> hi thank you, seema. japanese retail sales rose 5%

for april year on year but this number alone doesn't mean that sales have been good because last year's sales tax high implemented in april caused weak consumption. however other economic indicators awell as the economy watcher survey do show that personal consumption has been on growth trajectory for the past six months and the bank of japan upgraded it's assessment that private consumption is resilient. the latest survey of household economy and data on housing starts will be released tomorrow. so we'll be able to get a better idea of the overall private demand. corporations are expected to be upbeat. the market median consensus of april industrial production is an increase by 0.8% on the month. inventory is high leaving little room for further production for the coming months. as for the cpi it's not taking off as hoped and it will remain at the 0% level but at the same time he did emphasize that the inflation rate is holding it's

momentum. the april cpi data also comes out tomorrow so we'll soon know where we stand. that's all. back to you. >> we're looking at the dollar-yen at 123 at this moment. thank you so much. still to come on this show doing well while doing good. our next guest has been called a prodigy for his work at a young age on prothetsthetic limbs. plus we're live in zurich. more coming up on worldwide exchange. don't go away.

commentary from various fed speakers continues to grab headlines and this time around it's the san francisco fed president that took a hard line against using rate moves to protect against future financial crises speaking at an asian banking symposium he said monetary policy is poorly suited for dealing with financial stability concerns even as a last resort. meanwhile, cnbc spoke to the bank of japan governor on the sidelines of the g-7 meeting and asked whether the first fed rate hike would have a negative impact on emerging markets. >> when the federal reserve

raises interest rates the u.s. economic recovery is quite robust and strong. so i think you might think that u.s. monetary policy andcould effect adversely emerging economies and so but i don't think so because as i said the fact that the federal reserve will raise interest rates reflect robust strong economic recovery in the u.s. >> also weighing in on the global rate debate. he spoke to cnbc about the potential effects of negative bond yields in some markets. >> this is one of the side effects of it.

we have a strong discussion on that. there has been a reaction in the way that, let's say, the fwaurn teed returns had been lowered so that there is a certain space. i think personally that -- and also for the time being of course if you look at insurance companies, they have a strong part of it still as it has high yields. there is one element to react in going into let's say into more high yielding but also riskier parts but there are limits to this. to a certain extent it might be but there are limits for this and so for me this is one of the

reasons that low interest rates makes sense for period of time but this world of interest rates is not along really. 3-d printing could be the next big thing in innovation as corporations rush to embrace new technology. procter & gamble announced it was exploring 3-d printing to help test it's products. our next guest is advancing it's work in prosthetic limbs and robotics. joining us now live is the ceo at unlimited tomorrow. a pleasure to have you on the show. help our audience understand what is your product and what is your company about? >> we have a lot of different aspect of the company.

what is most well-known is the 3-d printing side. when i was younger i saw a huge technology evolving and a product that's been existing for all of time essentially and now i saw it too and it was in infancy and merged the two. so by using 3-d printing i'm able to make something extremely functional as well as low cost so that really helps someone who is an amputee that has a large amount of medical bills and get spg that's something that's functional in their hands. we definitely target the consumer level for the 3-d printing aspect to be able to educate someone that is an amputee or to help them get a very low cost prosthetic that is better than anything else out there. we have the higher end industrial side where we specialize in kind of a large range of advanced control

systems that can be ranged and used from bomb diffuser robots up to heavy machinery. it's a lot of fun with what i do. >> it's so inspiring. you made your first prosthetic limb at the age of 14. i believe the robotic hand was made out of legos, fishing wire and electric tubing. how has your product evolved over the last couple of years? >> well it's evolved tremendously. that was definitely my first prototype and for me being 14 i had to be creative with what i had laying around and piece it together but for me that was to prove a concept. so then i was able to take a concept and increase the functionality and decrease the overallweight and fit more custom pieces into a smaller space. so the arm is now a full arm. so it's very human like. it looks organic and we're really going into a lot of different aspects. so there's a lot of

psychological pieces to prosthetics. so how it actually looks. how the user operates with it and a big piece of that is venturing into systems that involve using your brain to control a full robotic arm. so we're using a lot of different innovations from all over the world to really adapt it into a piece of technology that can help a lot of people. >> really interesting to see the opportunity and medical technology with the use of 3-d printing. we're going to leave it there. good luck with your innovation and your project. joining us from vienna. ceo at unlimited tomorrow. we have been getting some flashes from swatch the watch maker. he says a smart swatch watch will be launched in switzerland and a big country. the ceo also saying the watch with payment functions will be launched in two countries and that the watch will launch a smart watch this summer.

shares up by around 1%. so of course introducing a watch to what has already become a highly competitive space with the likes of apple watch already on the market. now switching focus to sports. fifa is defying numerous calls to delay it's financial election after a number of its high profile executives were arrested for alleged corruption. the organizations' congress is kicking off in europe as planned with sepp blatter widely seen as winning re-election. wilfred has the latest on this story. >> thank you very much. i want to get straight to my guest despite the fact that i have a truck passing behind me. he's the chairman of the england football association. good morning to you greg. >> good morning. >> you were vocal that you wanted sepp blatter replaced anyway. has the last 48 hours increased your conviction on that front. >> he put out a statement last night saying now is the time to

rebuild the reputation of fifa. well you can't while sepp sepp blatter is still there. he has to go. it's a matter of when and how. >> also the documents focus on the americas. is that where corruption to fifa is limited to or is it more widespread than that? >> i think over the year what is you have seen is fifa is a fundamentally corrupt organization. it really doesn't matter whether mr. blatter is corrupt or not corrupt. he is the head of an organization that is shown to have corrupt practices in all parts of the world and he must take the responsibility for that. >> you backed prince ali to take over the presidency but he has been vice president of fifa for many years himself. is he enough of a change? >> well we backed prince ali.

we were in the anyone but blatter camp but we backed him because he wants change. he wants to clean it up. he wants it to be transparent and at this moment in time that's desperately needed. blatter can never deliver that. >> will the fa or uefa will they leave fifa if blatter is reelected? >> i somehow doubt it but i think as was said yesterday -- you're getting run down by another one, as was said yesterday this is not the end of the affair. >> will the fa consider leaving fifa if blatter is reelected. >> we woechbt do ituldn't do it on our own. if uefa decided they wish to take some action together that's a different matter. >> do you think that -- could there and should there be

reopening of the 2018 and 2022 world cup bids. >> well let's see what the swiss investigation comes up with first. >> do you think it's plausible to play a world cup in the temperatures that we'll see there. >> it won't be played in the summer. the question you have to ask is why did anyone award a world cup for july and august to katar and no one can answer that question. >> greg i just want to bring it back to one question i touched on earlier. is it plausible for them to operate independently of fifa? >> i'm sure they would rather not. i'm sure they would rather be part of a world federation. we just need to change fifa and that means changing the leadership. >> one final question, what is the sentiment between you and your uefa colleagues meeting at lunchtime today. what is the sentiment toward not just the developments but the

wave commented on since then? >> i felt very sorry for the pr man from fifa that had to go up front and say this is good news for fifa. what world was he living in? that was the message he was given. someone not a pr man but someone of some substance from fifa should have done that press conference. everybody here is amazed by what has happened. a lot of the journalists are coming here from a couple of easy days. and one could argue it's long overdue. >> one further question we have this tomorrow it seems to be going ahead. do you think it should be going

ahead and if it does do you think these allegations will change the way people are going to vote? >> uefa is about to have a meeting to discuss whether they think it should go ahead. will it change people's votes? it will change some people's votes. some people have talked to changed their mind. whether it's enough to be rid of blatter i don't know. >> are those people within uefa or apart of other federations. >> both. >> thank you for joining us. much appreciated. guys, that was greg dyke speaking outside the hotel. they're due to meet in a couple of hours a head of the opening of the fifa congress later today here in zurich. >> thank you. a story that rocked the football world. head to our website cnbc.com for all the latest. also i want to draw your attention to european equities. of course yesterday a big day

for stocks on the prospect of a greek deal. a glimmer of hope if you will but then we heard from the german finance minister suggesting otherwise. right now stocks moving lower. the dax holding on to the flat line. the cac 40 down just about .4%. also take a look at the currency market. interestingly enough the euro gaining momentum against the u.s. dollar. last week hitting a high of 116, 117. this week it's calmed down a bit. about 109. yesterday we did see a spike in the youeuro-dollar trade on the back of reports of greece moving forward and putting together a reforms list that it could unveil and present to international creditors. right now holding on to 109. asia overnight drawing a lot of attention given the sell off in the shanghai composite. 6.5% move to the down side. some saying this has to to with valuation concerns. others say it's margin trading

which arguably is a reason that stocks in china have been rallying. you can see losing 161 points. the shanghai composite closing at 4,620. losing 321 points. just to put this move into perspective, we should point out the shanghai composite still up better than 40% year to date. apple has already tackled music players, phones and watches and now the tech giant may be ready to take on cars and trucks. responding to a question at the code conference about how apple plans to use it's mountain on the floor cash. vp of operations jeff williams says the car is the ultimate mobile device but he would not offer more details. in 2013 tim cook made vague comments about wearable devices a year before announcing the apple watch. without being too specific williams says sales of the watch have been fantastic. >> we decided to do that right out of the -- i mean at the very

beginning we decided we weren't going to release data on the watch. we released maybe too much data today and we didn't want to do that. >> wait let's go back. you're not secretive enough today. is that your point of view? >> i think we spend too much time thinking about the numbers and spending time on that. >> we hear from the vice president first on coming up later today. 17:00 cet. more on today's trading action and what to expect coming up on the other side of the break.

the second hour of worldwide exchange kicks off right now. here are your headlines from around the world. u.s. futures pointing lower as european officials cast doubt over an imminent greek deal. this as the shanghai composite hosts the biggest fall amid on going liquidity concerns. the japanese nikkei launches up the longest running winning streak in 17 years as the yen continues to fall versus the dollar but bank of japan governor tells cnbc it's nothing to do with quantitative easing. >> we don't think that any asset

bubble we would not allow financial financial excess or financial instability developing. >> stocks get a boost on reports at a broadcom is set to buyout avago technologies with a price tag of $35 billion. fifa holding it's ground and presence ahead with it's presidential election. this as swiss authorities revealed the majority of executives arrested for alleged corruption are contesting extradition to the u.s. >> welcome everyone to the show. if you're just waking up here's a look at u.s. futures and what you can expect in today's trading action. right now premarket trade suggesting a move to the downside after a rebound in yesterday's trade. the nasdaq was a stand out as deal making in the chip sector

sent stocks higher. the tech heavy index closing at a fresh high. yes, the nasdaq continues to push higher. a big story. of course not just in silicon valley but on wall street as well. the dow indicating a move lower by 14 points. nasdaq down by around 4 points. this is just premarket trade. european stocks also trading lower. it was that glimmer of hope yesterday as we hopeapproached the end of trade that helps stocks with their biggest one day gain. dax holding on to the flat line so coming off the lows of the session but keep an eye on the cac 40 at 5,160 down by around .4% but back to germany. i want to point out that german consumer sentiment has grown further in the past month. positive economic outlook lead to the index hitting the highest level in 13 years and when it comes to france it's consumer confidence slipping in may. a read on the consumer the ftse

100 a bit of a bright spot. the euro is holding on to gains after a volatile session on a number of mixed messages on greece. yesterday officials voiced optimism that a cash reforms deal with creditors was close sending the single currency higher. however, the commissioner and german finance minister knocked the wind out of the rally by denying the report. imf chief told german television that this is still, quote, a lot of work to be done before there will be a solution on greece. however she added she is confident that athens will fulfill it's commitments. meanwhile, ecb board member told cnbc exclusively the central bank won't help break the rules to help greece. listen in. >> for us it is quite clear that we have certain conditions to be met. one is whether we can accept for instance greek assets greek bonds as collateral.

the answer is for the time being, no. the second question is whether there are other ways of financing. this is the way of emergency liquidity assistance. also this is under the control and also under the risk of the national central bank. but it has to get approval from the governing council and we have clear rules. >> julia joining us on the desk with more on this story. mixed messages coming from various leaders involved in these discussions. who do we believe? the greek leaders? ecb? or other policy makers? >> it's clear. you have the greeks on one said saying look we reached the deal and the creditors saying guys there's more work to do.

there's more work to be done because there's sources close to the greek government that produce these layers of progress suggested a deal would have already been sign first degree the imf western on board. well i argue that keeping the imf aboard is the best way to keep the pressure up for a debt write down. ultimately the truth is that the talks are still on going. there's going to be a conference call later on today. from what i'm hearing, the statement that we got yesterday from the greeks was that it was a lot of spin quite frankly, and more work needs to be done and actually there's not that much optimism that we can reach it even by the end of this week. so work still very much in progress i think. >> when does our attention turn to the health of the greek banking sector and the role of the ecb in all of this? >> it was very interesting because when he spoke yesterday he made a point of saying the banks are healthy. we didn't ask for more liquidity assistance from the ecb. they actually deposit outflows from the banks that stepped up

in the last few days too. that was quite interesting. the ecb is an interesting one. they're not going to do anything as far as liquidity to help the greeks. they're very simple and not going to allow fiscal policy. they're not going to allow the banks to help the greek government finance themselves but the talk behind the scenes is if they get this agreement then they get the euro group and we start to see implementation of some of the reforms and perhaps they could lift the ceiling on t-bill issues. that might help them short-term. the ecb very focused but just seeing implementation from the greex would greeks would perhaps unlock that. the equity index rallied yesterday. showing a little bit of green today. but i want to point to the bond market. the yield is down 63.5 basis points on the session at 11.2%. so investors still trying to get a sense of what is happening when it comes to the debt situation and how to place their money when looking at the equity

and bond markets. the story continues. now turning our attention to the g-7. g-7 finance ministers are gathering as they look to tackle global growth fears. steve has been speaking to the bank of japan governor kuroda about the impact of the fed rate hike. when it will come. if it will come. let's get out to steve to get reaction from various leaders as well as the japanese central bank governor, steve. >> let me pick upton growth point as well. there's no coordinated plan. there's a plan that comes back from last year's g-20 and not g-7 where the abbott government set up this wonderful idea to get to an extra 2% plus of growth growth. so the plan is an extra 2%.

the problem is no one is doing much about it. in fact we went backwards in istanbul which was the meeting on coordination. it was as weak as dish water and now we move to the g-7 which is the big power nations. rival format to the g-20 because it's smaller they think there's a chance of getting a lot more done but the question is is everyone going on their own trajectory. the answer to that is yes and if there is a tightening going on in some parts of the world is that going to throw off the recovery in areas such as the emerging world. i asked that question to mr. kuroda that's the central bank governor of the bank of japan and i said is it too soon to be raising rates in the states? >> as i said if the federal reserve raises interest rates soon that means that people see quite strong recovery.

so as they say it's totally data dependent. we have to see how the data shows incoming but i'm reasonably sure that the first quarter slow growth in the u.s. was bad weather and strike and bad weather is gone. west coast strike is gone. so i think the second quarter it will recover. >> which brings us back to where the yen is trading at 13 year lows against the green back as well. and at many times despite however i asked the question that it reflected the current fundamentals. there was no deviation in the justifiable levels of the major exchange rates on the back of the fundamentals which says to

me that he sees that japan and europe are relatively weak although he expects some depreciation to get to 20% in 2016 if the plan works. so at the moment he seems very relaxed in the paddock seema at 124 handle on the dollar-yen. >> and the meantime they continue to rally. we'll get back to you shortly on worldwide exchange. let's take a look at the other top stories at this hour. avago technologies is in talks to buy broadcom in a deal worth $35 billion in cash and stock. broadcom takes chips for boxes, smartphones and network equipment. broadcom soared nearly 20% and avago 8% after the wall street journal reported the news on wednesday afternoon. you can see price action in frankfurt. costco's third quarter profit

jumped 9% on a jump in store traffic. but excluding gas prices and impact of foreign currencies same store sales rose 6% overall and 5% in the u.s. looking at shares trading around 7% below the all time high slightly higher in today's trade. in frankfurt up 1%. the scandal that has rocked the world of soccer. we bring you the latest from zurich after this sort break. we're back in two 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 spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

and these are your headlines. deal or no deal. futures point lower as optimism on greek debt talks fade as shanghai stocks sell off. bank of japan governor tells cnbc he sees no reason to fear a qe asset bubble and coast coe becomes the latest retailer to take a hit from the stronger dollar. sepp blatter is widely seen winning the re-election as

president. wilfred, help us understand have any new details emerged today on the fifa scandal? >> seema, thank you very much. i'm here and i have moved location. i'm now outside the hotel where the main european body of the fifa football association, the six continental bodies. eu uefa is meeting here in one hour to discuss what they made of these allegations. and again the presidential election which fifa say will go on regardless. there's potentially constellation among these football bodies. in particular the president himself. of course he was not named in the indictment. that lead him to say that as unfortunate as these events are it should be clear that we welcome the actions and investigations by the authorities and hope it will help reinforce measures that they are already taking.

people surprised that sepp sepp blatter distanced himself despite being the leader of the ship and that he took no responsibility. moments ago i caught up with the head of the english football association. of course a prominent member of uefa and fifa and i started by asking him whether the president needed to take more responsibility. >> over the years what you have seen is that fifa is a fundamentally corrupt organization. it's corrupt in all levels and all places. it really doesn't matter whether mr. blatter is corrupt or not corrupt. the point is he is the head of an organization that's shown to have corrupt practices in all parts of the world and he must take the responsibility for that. >> now seema, we know that people like greg certain members of the european confederation, they have been

vocal against sepp blatter for some time but they were a small voice against many football delegates that were almost certain to vote for sepp blatter but this indictment turned up the dial and many people are likely to do that as well. we're unsure if they will boycott the vote but they have been calling for the vote to be delayed. the other interesting point is that people outside of the european confederation, he says are starting to change their mind too. at the moment uefa is calling for fifa to delay the vote. we'll hear what they have to say as a collective group in the next couple of hours. if the vote goes ahead, the pressure certainly increased on the incumbent president sepp sepp blatter. >> thank you. moving on jamie dimon hits out

at lazy. speaking at a conference on wednesday dimon said god knows how any of you can place your vote based on iss or glass lewis. if you do that you are just irresponsible. now about 38% of shareholders voted against executive pay packages including several institutional investors. if you're looking to boost your monthly paycheck you may want to send your resume to goldman sachs. they take the crown as the highest bonus playing bank in london surpassing ubs last year. according to a report goldman says an average of 194,000 pounds or $300,000. that figure is 14% higher than the average bonus at morgan stanley which came in second overall. u.s. banks are the big spenders taking the top five spots in the league table. still to come on the show straight off the back of a data

breach scare at the irs. we speak to the ceo of symantec. that's coming up after this break. don't go away.

the network that monitors her health. the secure cloud services that store her genetic data the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. welcome back. the irs believes the theft of personal data from taxpayers

from a computer system originated in russia. the criminal unit is leading an investigation into the breach in which criminals stole information through an online application from february to mid may. the usa today reports government audits warned of computer security risks long before the irs breach was disclosed. this is the latest in a string of high profile attacks on big organizations and brands with large amounts of customer data stolen. let's talk more about the future of cyber security. joining me now, michael brown. michael a pleasure to have you on worldwide exchange. >> thank you seema. >> domestic spending on cyber security has increased. governments are allocating more capital toward cracking down on hackers yet massive data breaches keep grabbing headlines. why isn't the security industry winning? >> i think the security industry is clearly trying to respond to ever increasing attacks and severity of attacks but what we

see is until companies are spending more we're creating a gap in terms of what companies need to be spending to protect themselves. >> when it comes to the news out of the irs, the situation there, is this a situation when the hacker is outsmarting a billion dollar security firm like symantec or security companies seeing the threat but misidentifying this as a threat? >> well i think the attackers are becoming ever more sophisticated. companies have to stay current with the technology that they're deploying to make sure that they're better protected. so it's an ever changing game of cat and mouse where the attackers are trying new methods and we have to make sure that we're also keeping up. >> what has demand been like from clients that see these massive data breaches and say we need to spend more money on cyber security and strengthen our infrastructure we have in place? >> it's a combination of not only spending more on technology but making sure you have the right processes and training in

place at companies. we see the demand as being very robust and it's illustrated by the latest attack. the more the awareness is up people realize this is a growing problem they have to keep up with. >> in order to stay dominant will you be looking at mna opportunities and start ups or will be be here in europe to strengthen your foothold in this space? >> we will. we have been a company that's grown through acquisition and that's because so much of the technology keeps changing. we have to keep tabs on the younger companies that are innovating. we see growth as a combination of what we do organically. >> we're shopping online we're banking online tracking our health and data records as well online. what's your biggest fear going forward? >> i think the biggest fear is that as we have more valuable information available online so as attackers increasingly go after that and are more

innovative we have to make sure we're covering an ever broadening attack services as we call it. our key advantage is the global scale and visibility and we want to make sure that as we look across what's happening with threats on the internet we're better protecting consumers. that becomes a very difficult job and we want to stay up with the responsibility. >> we're also moving toward the internet of things where multiple devices are being used to access private sensitive data. how does that kang your approach to to securing this data. >> we have been protecting end points for years. that's our biggest security business. internet of things could be viewed as another end point. we already have a lot of the technologies that we need to be able to protect different kinds of end points. whether that's a car or connected devices in the home. we feel like we're well positioned to be able to protect consumers as internet of things becomes a much bigger part of our lives.

>> more mobile and more inner connected the need is for more cyber security and protection to make sure that our data stays private. thank you for joining us here on the show. michael brown. ceo of symantec. spotify ceo said the firm is not just looking to take on apple and pandora, it's also eyeing instagram. this after the swedish company announced its moving into video streaming. i spoke to the ceo about the changes in the streaming music sector and it's growing competition. listen in. >> currently youtube is the largest music destination in the world. therefore ultimately what we ended up doing was creating technology or a platform that would take that video to youtube and deliver it to the streaming platform such as pandora and those platforms can deliver music video content since their

destinations where people are listening to music every day. >> does that help or hurt your business? >> helps a huge validation point and the reason why it further demonstrates every digital media platform that can become visualized and interactive will become visualized and interactive. the reason is why is the devices we're carrying in our pockets are increasingly becoming more connected to the internet as well as the screens are increasing in size. therefore they're fantastic for us to consume video now. >> you raised $7.5 million in series a funding. what are you using that capital toward? >> what we're kwuzing the capital toward is actually growing the team. so for example, two world class

people who joined our team. one is a former vice chairman of sony digital and rio was one of the founders and former ceo of vivo. ultimately by adding them to the team as well as other amazing engineering talent we're growing the technology platform itself so that we can involve companies like pandora among others in the space. standard audio streaming platforms to video streaming platforms. >> you're based in portland oregon which is my hometown. help me understand do you think you have enough resources at your disposal to build and grow your company or do you think you have to open up a base in silicon valley to get exposure to high quality investors? >> not so much. once high quality people see the northwest and visit, they really

realize what can be taken advantage of here. >> we'll leave you with a look at how the futures are trading ahead of the open on wall street this thursday morning. we could be in for a day of negativity. the dow down about 24 points. all eyes on the nasdaq hitting an all time high. we'll get you more after the short break.

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here are your headlines. u.s. futures point lower as u.s. officials cast doubt over an imminent greek deal. this as the shanghai composite posts biggest fall amid on going liquidity concerns. the japanese nikkei notches up the longest winning streak in 23 years as the yen continues to fall versus the dollar. but the bank of japan governor says it's nothing to do with qe. >> we don't think that any asset bubble, we would not allow excess or financial instability. >> semi-conductor stocks get a boost on reports that broadcom is set for a takeover of rival chip maker with a price tag

around $35 billion. fifa holds it's ground and presses ahead with it's presidential election. this as swiss authorities reveal those arrested are contesting extradition to the u.s. >> thank you for joining me here on worldwide exchange. stocks slipping after a rush session overnight in asia. it's important to note that u.s. stocks rallied. a stand out was the nasdaq at a new record high helped by semi-conductor stock. european markets witnessing their best one day gain in a week on hopes of a greek debt deal coming together but skeptics say hold on. we'll get excited when we see a renewed reforms list. german finance minister throwing cold water on the prospect of a

deal. the euro at 109 against the u.s. dollar. meanwhile, ecb board member told cnbc exclusively the central bank won't break the rules to help greece. >> it is quite clear that you have certain conditions to be met. the one condition is for instance whether we can accept bonds as collateral. and the answer is no. the other is whether there's other ways of financing. this is the way of emergency liquidity assistance. this is under the control and also under the risk of the national central bank. the greek central bank. but it has to be -- it has to get approval from the governing

council and for this we have rules. >> larry, a pleasure to have you on. it seems like greek optimism sending stocks higher yesterday now there's talks a greek deal won't come down and perhaps that's the reason u.s. futures are down today. why do we care so much about greece? it only makes up 2% of euro zone gdp. >> that's true and the amount of public bonds owned by investors are down substantially from 2011 levels but it's a potential change and it's weakened yield

in portugal. in other words, higher yields so there's a contagion brewing and that leaking over to spain and portugal. >> but if you're hopeful of a resolution coming together do you want to get exposure to the greek bond market? because the greek two year yielding 23% given the low rate environment that we're in right now. that has to look attractive to some of the investors out there on the hunt for yield. >> one thing to watch is if the yield curve is inverted. if they have a higher yield ten year then we're not out of the woods. that's a great riskic indicator for investors watching us. that's the case. we're massively inverted and that tells you that there's a lot of work left to be done at the negotiation tables. >> back to u.s. markets, the nasdaq my past home hitting a new record high. does that mean larry that investors do not care about

valuations? because the price to earnings ratio much higher than it's historical average. >> well you did a great job in japan and he is talking down asset bubbles and i have to give him a shout out here. he's had a negative yen view for better part of two years with a target and you're talking about a group of stocks up 20 days in a row but japan has to talk down these asset bubbles because they need to keep the door potentially open for more qe. >> we'll come back a bit more on the trade in japan. now switching focus, central bank watch continues here on cnbc. coming up later today we hear from the ecb vice president. that's a first on coming up at

1700 cet on european closing bell. let's also take a look at today's other top stories. a battle of wearable devices may be headed to court. fitbit is being sued for allegedly trying to steal employees and trade secrets. a number of recently departed workers used thumb drives to take information about the company's products supply chain and market predictions. they're seeking an unspecified amount of damages. fitbit filed for an ipo earlier this month. google is holding it's io developers conference in san francisco where it's expected to unveil the new version of android called m. the new york times reports the company is also overhauling it's mobile payment products. google wallet will be relaunched a peer to peer app where you can send money to each other from debit counts. price actions in shares of google. trading in frankfurt up

about .3% in today's trade. sticking with tech a major deal in the chip sector could be coming as soon as today. the latest round in a frenzy of consolidation in the industry in the past year. more on that story coming up after this break.

the chip sector is full of deals lately. another big acquisition could be on the way. let's get to landon with more on that story. >> hey, seema, good morning. avago technologies was in advanced talks to buy rival chip maker broadcom. the deal could be announced as early as today. it may be worth about $35 billion which would be one of the largest ever acquisitions in the industry. broadcom makes communications chips chips for apple and samsung tablets. they preeimarily make chips. they're urging about 20% and avago 8% after they first reported the news wednesday afternoon helping propel the nasdaq to a record close. the stock jumped over the past two years thanks to the strong position in the market. parts used in 4-g smartphones. they were once part of the

technologies spun off of hp in 1999. it was later sold to private equity firms for $2.6 billion. it went public in 2009 after incorporating in singapore. the company has been aggressive on the acquisition front. since 2013 five u.s. companies for $8 billion. the chip sector has seen plenty of mna action already this year. more than $26 billion in deals have been announced globally. that's more than double the volume from the same period last year and in march nxp bought it for nearly $12 billion and inobstetrical is stillintel is still in talk for $13 billion. scott mcgregor discussed the consolidation saying in 5 to 10 years half of the companies we know today won't exist any more. >> amazing to see that type of consolidation and moves in the chip space. especially as we see consumers

shift away from desktops to mobile and wearables. that's creating a bigger opportunity for these chip players. let's move on focus to sports. fifa is defying numerous calls to delay it's presidential election after a number of its high profile executives were arrested for alleged corruption. the conference is kicking off as planned with sepp blatter widely seen winning re-election as president. wilfred over to you. >> seema, thank you very much. yes, indeed that election is still due to take place tomorrow despite increasing pressure on the incumbent president and fifa in general. uefa is meeting behind me. they want it delayed. he told us earlier he is addiment that sepp blatter

should step down and the pressure is increased by sponsors after this indictment. visa saying disappointment and concern was profounded on their part. they also said that if fifa doesn't make changes now they will have to reassess their sponsorship. perhaps that type of financial threat might force fifa to change as opposed to people waiting to see change. nike issued similar sentiment saying that they strongly oppose any form of manipulation or bribery. interestingly there was another line at the bottom of nike's statement. it comes off the back of the fact that in the environment document, the 164 page document the attorney general did say that one major multinational sportswear company was involved. there was no naming of what that company is but interesting to note at the bottom they said we have been cooperating and will continue to cooperate with the authorities. a story to watch to see if that develops at all.

in the 164 page indictment document we have also seen comments on banks. bank of america, ubs, citi and hsbc. they were all named as banks whose accounts had been used. the u.s. attorney for east new york said it's too early to say whether there is any problematic behavior but it will be part of our investigation. citi group commented to us and they said we have been cooperating with the justice department during the investigation. no banks of accused of any wrong doing at this stage. important to note that. in general, the theme is that pressure is being increased on fifa. that election due to take place. the only person who han been increasing the pressure, we had a comment out of the russian president vladimir putin in the last 10 to 15 minutes. perhaps he is a little concerned about 2018 world cup due to be held in russia but he has said that fifa's arrests show the

u.s. mettling abroad once again and added this was a clear attempt to prevent the re-election of fifa president sepp blatter so taking a different point of view on this saga. the fifa congress due to kick off this evening with the presidential vote due to take place despite the astonishing allegations that rocked the world of soccer. >> all eyes on what happens at that meeting. i want to draw your attention to a flash coming out of greece and what that's doing to the currency market. at a greek negotiating team at brussels aims to close a deal hopefully by sunday. the flash also says that the greek governments optimism is based on actual facts. that again, according to a government spoexkesman. there's evidence that greece is running out of cash. they have the upcoming payment in the month of may.

a lot of pressure to get access to that $7.2 billion from the international creditors. moving slightly to the upside on the back of that headline. before we go to the break these are the headlines you need to know. deal or no deal futures point lower as optimism on greek debt talks say in focus. bank of japan governor tells cnbc we sees no reason to fear a qe asset bubble and wearable wars land in court. jawbone sues fitbit for trying to steal employees and trade secrets. we're back in two minutes. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates

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expected to touch on lehman and the financial crisis. following the company's bankruptcy he was called a villain by congress. he blamed the government for not saving the firm. now steve spoke to him at the meeting and asked how japan was fairing since the crisis. listen in. >> after the lehman shock in in 2008, against the euro and also against all asian currencies and then in the last two to three years, yen depreciated against the dollar. not against the euro but and it

is only comparable to the shock. so in that sense the yen appreciated in the last years depreciated and reached the level before the shock. so although i don't say anything about the exchange rate but exchange rates deflecting fundamentals. the most important and appropriate and i don't think

the alignment among major currencies does not deviation from the relationship justified for fundamentals. but of course exchange rates could move and could fluctuate. not just monetary and physical policy but some kind of event. but of course the market is a little bit concerned about the greek situation. >> steve joins us live. larry mcdonald from new york city. kuroda also said he doesn't see any asset bubbles which is interesting given the rally we have been seeing in japanese stocks. >> yeah, he said there's no

asset bubbles in japan at the moment. financial stability a key part. the question is lehman's collapsed when we had debt crisis emerging market crisis confidence crisis and massive debt crisis in europe now. can we say that most of those have gone away? if anything because of the regulation it would be great to get larry's take on this. we could have a liquidity problem down the line. you haven't got the same backstops. we may have sold some issues but i'm wondering if we created others. is it whack-a-mole seema? >> let's get back to japan in terms of what kuroda is looking we. they have a 2% inflation target and the street says it will be 0.2%. so they're almost 200 basis points away from their target so of course he has to say -- he has to talk down asset bubbles because he needs to keep a

couple of bullets in the chamber if they want to extend qe again. that's why he can't say that he's worried about asset bubbles because he can't do more qe. >> do you think investors are overly concerned that we're in a bubble. you're looking at the composite double this year. the nikkei has been on fire and s&p 500 in record high territory and the nasdaq closing at a new record high yet investors seem come place complacent. >> no question. they're at extreme high levels. if you look at the amount of bonds to buy back stocks there's so many indicators. the fact that he is able to actually get out in public for the first time. but indicators of excessive risk taking all over the place.

>> the problem we have here and larry knows this as well is we have tina. there is no alternative. so when you have chinese investors thinking where are we going to put our money? we can't put it for a descent return so we put it in the stock market. it's the same thing all over the world. no one knows where else to put the money apart from in the stock markets. >> it's true. there's a lack of alternatives when trying to figure out where you want to put your money. larry, would you agree? >> since 2011 if you sit in the boat and wait for some fear october 15th was the perfect example. if you bought stocks on october 15th on october 15th if you bought stocks earlier in the year and chased the rallies you didn't do as well. wait for fear and then put money to work. >> thank you. that does it for us on worldwide exchange.

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china stocks crush the shanghai composite dropping over 7% last night. it's one day loss in four months. fighting words, jp morgan boss jamie dimon blasting shareholders. he called them lazy. >> and a piece on the market social media lighting up with pictures of the iconic great gastby house and now could be yours for $3.9 million. it's thursday may 28th 2015 and squawk box begins right now.

good morning, welcome to squawk box on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. a large tornado touching down in the texas panhandle hitting a drilling rig. there was extensive damage and at least three injuries reported. flooding still a huge concern in texas as many rivers are above flood stage. thousands of homes have been damaged. the death toll is climbing and the search for the missing is growing. more residents are being asked to evacuate today and the rivers aren't expected to crest for another 36 hours. now to the market news of the morning, a big sell off in china overnight. the shanghai composite closing down 6.5%