a very good morning. this is "worldwide exchange" and i'm wilfred frost. let's get you some headlines. the euro is under pressure as greek's prime minister accuses them of making absurd demands. china shanghai composite, a broad slowdown in the economy. positive updates on anti

cancer drugs. and we have got some more information coming from annington throughout the show as germany as largest real estate firm raises its synergies on buy out from a rival. ♪ ♪ we've got some pmi data coming out of the euro zone manufacturing pmi for the month of may, 52.2. the forecast had been 52.3. the april reading had been 52.0. this follows da that we've had for other countries in recent minutes. france became slightly better than before but slightly below

50 and germany came in slightly weaker than expected. the euro zone as a whole, 52.2 which is fractionally below expectations. you can see the euro has suffered in the last half hour really off the back of the individual readings germany in particular. joining me now the chief economist of invest-trek. this is a little disappointing. >> it is. we know they are volatile. i think the most important thing is you've got a trend with the pmis they are rising. they are above 50. that's really being backed up by a more competitive euro than we had a year ago and also the credit numbers at the end of last week were showing more loans to households and the corporate sector as well.

so it's slow and it's steady but it's still going in the right direction. >> as you said a more competitive euro than we had a year ago, but less than that we have a few months ago. >> it's a relatively small bear in the grand scheme of things. if you look at the euro against the dollar that was almost the 140 level going back in march and april last year. even though the euro has made some sort of recovery against competitive currencies it's still down some. it's gone from an overvalued currency to one that is actually competitive. >> stay with us. we'll broaden the discussion shortly. let's have a look at the european bond markets. what have they been doing since we've received this data.

the ten-year bund is back on the path at 0.5%. the japanese 10 year 0.4, the 10 year gilt 1.38. this is a look at other european bonds. as you can see, spain and france also included. a quick look at the greek yield curve, which you can see 23.2% on the two-year. it continues to be at elevated level. greece's prime minister has lashed out at the country's international creditors for failing to reach a deal. alexis tsipras has said that greece has done its part where reasonable. the greek pm ends the article warning the future of europe is in the hands of its leaders.

julia also joins us. julia, this was quite a strongly worded article by the greek pm over the weekend. >> absolutely and laying out the things that they are willing to do things as far as labor market reform and pension reform and coming down look it the critter companies are being too entrance yent here. they are still trying to bridge this year. it's not just about the reforms but it's also about the austerity. he does make a strong statement about how much money they have paid out, $17 billion euros that they have paid out. he says we're willing to meet our commitments, but we still need to be met 25%.

the most important thing coming from the imf is they do have a precedent that they couldn't make this payment on friday but push back all payments until the end of the month. the greeks haven't asked for it. they have to ask for it. we have to wait and see. we know that the politics here are very important. they are trying to manage the situation back at home. deposit outflow has also picked up. remember, they are trying to manage the lack of confidence in the domestic economy too. a missed payment is not a default and mae may not need to make that payment. >> is the bigger short term concern for greece is the fact that the banks are saying they are having a lot of euros withdrawn from him? >> yes. that's a particularly uncomfortable scenario because that makes the banks much more dependent then on emergency

liquidity assistance and that's only provide being they have the collateral. so the banking system is a key part of the story, but i think julia is absolutely right when she said that tsipras was having to manage the situation at home. there are also stories they are calling for some sort of rupture, if you like the reneging of the preelection promises. he's in between a rock and a hard place, really. it's a very difficult situation. >> let's move on the debate to italy. local election results suggests a setback for prime minister renzi. they have lost significant ground. the results come as renzi tries to push through major reforms in labor and education which is so far meeting fierce resistance

from the trade union. he still won five of the seven seats up for election. >> yeah, he did. we saw him lose a lot of ground in two of them. i wouldn't suggest it's a huge defeat for him but if we compare the support he got here versus what he got in the european parliamentary elections, it looks like he's lost a fair bit of ground. i think the crucial question here is just to what extent does this detract from his reform plan and i think there are a few things to watch. look for it in his own party. they split the votes in a region. they handed victory to the central right. if you look at the percentages, even though the party got around 23% of the vote the five-star movement which has been particularly dysfunctional party, they managed to get 25%, it seems. the and the northern league

euro they also took 13%. we don't see a significant opposition party. they are growing support. >> does the situation in italy highlight that even when there's a intention to carry out the reforms, it's very hard to get them through the legislatures? >> absolutely. decades. fortunately, for the italian economy, is that it's benefited from a sharp fall in the euro which has made its exports more competitive. the economy grew the first time this year since the middle of 2011. so that's helping the italian economy. the other side of that coin is whether the fall of the euro is slowing down the pace of reform because the perception is

there's less of a need to do that quickly. >> thanks very much. julia, thank you very much. let's have a look at european markets which are quite comfortably in the green today. we're up 0.6%. this follows quite a big sell-off on friday where we saw they were down around 2%. although over the course of the month, as a whole of may, they still ended in the green to 0.7%. this is a bounce back in one day in particular as opposed to the last week or month in europe. how does that spread out across the individual boards? the ftse and the dax both up 0.2%. italy pmi's was better than jaryms. let's have a look at the biggest individual movers in europe today. drug makers giving markets a

shot in the arm. as tra astrazeneca and roche is up. now, coming up later in the show, we'll be speaking to the astrazeneca ceo that was in chicago at 8:30 eastern time. deutsche annington is up 5.85%. germany's largest residential landlord also raises outlook for the synergies to take place as a result of its buyout of a rival. the cfeo told us why he's still

hesitant about the german economy. >> our cash flows are also resistant in case of a recession. residential living and renting is by definition one of the key needs of people, and, therefore, our robustness does not stem from the economic benefits. >> that's up 5.9%. let's get more from the story from annette from engineergermany. >> i would say their apartments qualify in the lower third of the quality of the german real estate market and the upper third, the luxurious real estate market in germany has very much benefited from strong demand here in the country. let me run you through why the shares are reacting so positively. they have a very strong outlook

on its surface but it was the first time ever deutsche anning ton actually gave the market. this is better than analyst had expected and also regarding the cost synergies of both companies, they had under estimated what they can actually raise with the cost synergies with the combination of both companies. now they are saying 2017 they can save $130 million euros about bundling the admin costs for both companies. of course, together they are the biggest listed real estate company in germany and the second biggest listed real estate company for europe and, they are of course benefitting from a downside i would say

insurance because the rents are rather fixed at a lower level and looking ahead, when it comes to the share price performance, perhaps we might see a tick up in the share prices valuation as they had been under performing the general market here in germany year to date. thank you very much. still to come on sworled -- "worldwide exchange" when trash becomes treasure. we'll tell you why one woman's trim to a recycling center may have lost her $200,000. the white house warns a brief last lapse in the patriot act could be dangerous. and going for the gold.

chinese markets closed over 4.5% higher. it comes despite a bout of weakness reported in the economy. the final hsbc pmi focused on

small to medium-sized businesses. the pmi slipped to a five-year low. you can see shanghai up 4.7% shenzhen up similar amounts. the company is china's fourth largest brokerage by assets and it represents the world's second largest ipo so far this year. it also has a listing in shanghai and the stock is up 20% year-to-date. you can see up 4.1% at the moment. meanwhile, china national nuclear suspect looking to raise $2.13 billion. some analysts predict the ipo could put further pressure on

the stock market. big market swings in china's stock marks last week but its mainland shares have returned positive gains for 12 of the last 13 months. are shanghai stocks an obvious buy? >> it had one of its most volatile months in recent memory. last thursday the market plunged by over 6.5% briefly nearly correction territory. >> chinese stocks tumbled. several brokerages tighten margins. >> reporter: it was the drop for an index that has been one of the world's best performing. it's up more than 40% this year alone. but for many the dive wasn't entirely unexpected. analysts have been saying for weeks that the shanghai composite could be on the verge of a bubble. one of the reasons for thursday's dramatic decline was because brokerage firms have

been tightening rules on margin lending for their clients. margin financing is essentially borrowing money from a broker which is secured against the share. this cheap form of credit is an excess of $322 billion u.s. in china loan. last week, jan gen securities and others tightened their rules for lending. the reason why the shanghai and shenzhen markets are so volatile compared to other global indices. in a bid to void any kind of bursting of that bubble with you more than $6 billion of new money flowing into chinese markets last week alone, it's unclear if that can be avoided.

still with me is phillip shore, chief economist. how concerned are authorities are going to be in china that this data is still soft despite the fact that they have been easing monetary policy for quite some time now? >> the economy, the reductions in rates and also the required reserve ratios have come down. it certainly doesn't mean that the economy is heading into recession any time soon. one wonders how confident the chinese authorities are for reaching their growth forecasts or targets this year. i think that one is under question. and it probably does mean that we're going to get another cut in rates from the pmoc.

>> at a time when debt-to-gdp is so incredibly high should they take the short term pain or should they ease? >> you've got to look through the eyes of the pole maker in beijing. the way they would look at it is social stability comes first. without growth and more work in the cities you risk social instability. so my guess would be that getting that growth target -- meeting it close to 7% is number one on the priority list and then if you get further signs of a bubble then they will have to be dealt with later on. whether that's the right approach or not is very much debatable. >> is that weaker yen causing a lot of pain for china?

>> i guess it probably is. we heard just now that the exports, the subindex of the pmi is very weak. there's some debate as to whether the level of the yuan against the dollar is under valued or not and the imf has said it's actually fair value. the u.s. treasuries actually differ on that one. against the yen, the japanese currency is looking very competitive. >> as we look across asia any economies in your eyes look very attractive at the moment? >> nothing in particularly. we're in a situation where you've got world growth averaging 3 to 3.5% for a couple of years now. within that much depends on whether china begins to start growing more quickly again and, therefore, you have that hub of southeast asia which looks for attractive. >> phillip, thank you very much for joining us.

much appreciated. now, having talked about china, we want to hear from you. are you a china bull or a china bear? do you think the rally in beijing still has legs? if up to join the conversation on "worldwide exchange," get in touch with us by email or twitter. @wilfred frost is my personal handle. if you are a regular viewer you know i'm a big china bear. they are already too indebted, they don't have the monetary policy flexibility to manage that. get in touch. let me know your own views and we'll discuss this further throughout the show. another couple china-related guests over the next 90 minutes. one country who is openly wary of chinese investment is

sri lanka. their defense minister spoke about the importance of developing relationships with other nations. >> i think sri lanka and china has always had good relations and throughout the war period i think china is one of the countries that helped sri lanka a lot when giving military assistance throughout the world. the government has changed now. there's a new president and a new government. we are still keen to continue relations with china, but we are also opening, you know our doors to the rest of the countries and the west australia, and of course india, our neighbors, but i think right now, with our new government i

think we have prime minister in a hen dra mody coming to our sri lanka and recently john kerry coming to sri lanka. >> despite the growing out, you don't fear that china is going to antagonize your closest neighbor in india? >> no i don't think so. this new government we have the president and the prime minister are very keen on you know reaffirming our relations with the west as well as india, and that has happened. that has happened we're very

keen on continuing those relations with those countries. >> now, still to come on "worldwide exchange," no butts about it beijing cracks down on smoking but can the authorities really enforce it? we've got the latest live from the chiens capital after this short break.

the euro under pressure has greece's woes continue. prime minister alexis tsipras lashes out regarding the lack of a deal. accusing them of making absurd demands. a bag of pmi data suggests a broad slow down in the chinese economy. health care stocks boost the economy. and deutsche annington tops the deutsche 600 from the buy out of a rival. and we have just got u.k. manufacturing data out which has risen to 52.0 in may. that's up from april's 51.8. various estimates did have it

coming in and around the level where we've seen it. that coming in line with expectations, still, of course above the forecast for some was 52.5. it's risen from 51.8 it's slightly below forecast. as you can see, sterling. let's look at europe mean markets very strong today. we're just bouncing back as you can see around 0.6% gains in france and a little more than italy, germany up a quarter of a percent, and u.k. up 0.2%. european equities ended last week softly but they were still up nearly 1% over the course of may as a whole. let's look at bunds which we'll see the 10-year corrections. the prices of the bonds rising as you can see it's just below

0.5% today. the 10-year note in the u.s. is 2.13. let's have a quick look at euro dollar which of course was as low as 1.04 in the middle of march and peaked at 114 as it corrected. back in the middle of that range, 0 -- 1.09. partly due to greece concerns. softer than expected germany most notable. the euro has fallen against the greenback for ten of the last 11 months. joining me now is jeffrey yu. good morning to you. thanks for joining us. let's talk about what's happened in the euro. the thing that stopped that initial correction was the ecb coming out to say that the bond buying program will continue. in fact it might be sped up

slightly. what kind of details are you expecteding from mario draghi? >> not too much. we think it's a case of continuity. they will fulfill the terms of the program as they see fit. i think they are very happy with where the euro-dollar is trading right now. they are expecting 130, 140. it will be very comfortable. it has to be below 110 for the right reasons. the right reasons being if the fed is on course to some advance, which seems to be the case or euro is just slightly softer against advancing economies elsewhere. you've got that external demand push. if it's greece coming into the fray and we have a few scenarios there, a messy tumbling of the euro zone coming out of different assumptions, that's a different story.

we have to look at the contagion of financial instability and the like. do you think we'll hear from mario draghi about what he does expect from greece? >> probably not in terms of a direct. he will stay clear of politics. i think he will repeat the issues surrounding greece needs a new program and a new program. that would help him in this case. let's say a satisfactory agreement. that's the bottom line here. we have a situation where greece cannot meet a few payments you can at least quarantine greece for the time being whereby it may default, but it will stay in the euro zone. i think if we get the worst-case

scenario then we see some below parity. >> what is your call on the euro for the rest of the year? >> we think stability is key. it's going to be 1.05 in that range. >> let's touch on sterling. a nice little rally that we've seen since the election. what are you expecting them to do? does that rally the political base rally does that change what the central banks policy should be? >> we have to separate that from long term to short term. shorter term they will be happy with it. it's an anticipated move. no political uncertainty. euro sterling is a bit weak for their likely. they are rising from the exchange rate but his rhetoric has not strengthened from where we were in march. for the next few months i don't think the exchange rate will be an issue. if i look at the options market

there's serious under pricing. we're working about u.k. exiting the eu. right now, there is no pricing. if you look at the options market, the prices are coming up. that's where i see some correction up ahead, but i think that will feature into the u.k.'s estimation for now. >> much appreciated as ever. now japan's pension system has been hacked. that's according to a report by japanese network nhk. including names and identification numbers have been leaked. japan's welfare ministry is expected to brief the press shortly. now, starting today, smoking is banned in public spaces in beijing in the latest attempt by the chinese government to crack down on the country's habit. questions remain on how or even if the new law can be enforced. let's get out to yuns who is

life with the latest. >> this is the toughest anti smoking law yet in china's history. as of today, people in beijing will not be able to smoke indoors, not in hotels restaurants or offices. they also won't be able to light up in certain outdoor areas, sporting venues or outside of schools or hospitals. the reason for this is because the authorities are really trying to push an idea that smoking is bad for you and they want people to quit. this country is the largest consumer of cigarettes of tobacco, not only from chiens companies but also from bat or phillip morris and the country has seen a lot of costs associated with this in terms of public health. the government is trying to make a couple of changes. they have done in the past. in 2011, but that smoking ban wasn't very effective because there weren't financial penalties associated with it. this time there are. there are fines of $33 for individuals or $1,600 for

businesses that are found to allow people to smoke on their premises. the government is trying to get the public involved to report violators, not only does the government -- has the government sent out 1,000 inspectors but they have also encouraged people to post photos of those who have violated this law on the government's -- the paging government's social media app. they have also said that they are hoping people will call in on their government hot line and so far today, there's already been some reporting going on. we've heard that a hot pot restaurant has violated this law. it's being reported in the chinese media that people have been allowed to smoke in this restaurant and that some cigarette butts were left on the bathroom floor. so obviously, people here are taking it very seriously. >> eunice thank you very much for that. now, russian state owned news agency raa says the government is disappointed with europe's recollection to moscows black

list of russian officials. calling it arbitrary and unjustified. russian authorities have confirmed 89 citizens have been banned from traveling to the country. still to come on the show the fifa inquiry rolls on. we look at which banks are reportedly launching internal investigations in the wake of the scandal. "worldwide exchange" is back in two.

several parts of the u.s. patriot ak have expired today after the senate failed to extend them before the midnight deadline. nbc's tracy potts is live in washington, d.c. with all the latest. >> good morning, everyone. that law that allowed the collection of the phone records, that portion of it has expired, so that program is no longer legal here in the united states. it expired after lawmakers here on capital hill were unable to agree on an alternative. the obama administration argues it's not just the collection of the phone records which they had and were willing to adjust to meet a court's demands, but also other tools to track terrorists

in this country that have expired with the patriot act, like roving wire taps to trace terrorists who change their phones and tracking so-called lone wolf terrorists foreigners who come to this country, but they are not working with a particular group. lawmakers came in for a rare sunday session to try to work this out. but politically it was interesting. it pitted republicans against republicans. they were not able to come up with either an agreement to extend the patriot act or to replace it by the midnight deadline. what happens next senator mitch mcconnell, the majority leader here has change his view. he had opposed the freedom act which is what they came up with to replace it. now he sells he will support that. it will take them a couple of days to get this done but we're looking at a final vote on that possibly two or -- tuesday or wednesday. >> thank you for that update. brussels versus berlin in a row

over road tolls. the europe mean commission is expecting to take them to court. >> reporter: we have now comments now from the head of the european commission saying it has its doubts whether that toll which is about to be signed into law here in germany is actually in line with eu legislation. the thing is that this toll is actually targeting foreigners. while everybody has to pay it german's get a rebate when it comes to their automobile tax, so essentially something which is only going to be paid by foreigners and that is what the eu commissioner is saying it's against the laws because of course we have an anti discrimination law in the european union so everybody has to pay the same price for services rendered in one

country, and it is against the law to discriminate against foreigners what is what he is saying and also the president of germany, the former head of state has to sign that law and has not done so because still looking into the fine print so the likelihood that this is not going to be implemented are rather high. the other alternatives actually that also germans have to pay the full price for using the roads. a rare aureus mining are up 18% in the last 12 months. joining me now is david redding, the ceo of aureus mining.

let's touch on this project in liberia. give us an update. how big is this project? >> it will be about 20,000 ounces a year. we hope to produce about 60,000 ounces this year. i think for us the big milestone is having done this in liberia, all the challenges we've had and it's a big tribute to our team that we've pretty well got there. >> what are some of the biggest challenges been there? >> they had the ebola crisis. we never had an infection on site or anything like that but, you know we had to quarantine the site. we had to make everyone safe keep everyone safe and we had to keep on building and not an easy task you know. we managed to get it done. >> let's talk more broadly about the gold market and we'll come back to your company toward the end of the interview. gold has been amazingly steady given what's happening around the world.

what leads it to break out either up or down from here? >> i guess it's always linked to the dollar but i think it's still an investment haven for people and it seems to have found a floor. gold equities are into their fourth year of negative equities generally speaking so i think there's an opportunity now going forwards particularly next year with gold to start moving again and for gold equities to move. >> and does the gold price overall make a big difference to your bottom line or are you hedged out on that kind of thing? what's the marginal cost? >> for us we all produce approximately $800 an ounce. we're okay at these prices. obviously, it's nice to make a little bit more money for the shareholders. >> why do you think people should buy your shares at this current stage? do you think you are a genuine market hedge because of the gold exposure or are you saying we've had four years of gold equities

suffering? should people be looking more at your gold exposure or the fundamental supply and demand characteristics? >> you should look at it two ways. you always get a rewriting when you go into production. we would certainly expect that. secondly, we're the first new goldmine in west africa for over 2 1/2 years. thirdly, we've de-risked the project now and we've got another one by 30 kilometers up the road that looks very exciting. i think there's more to come. >> thank you very much for joining us, david redding aceo at aureus mining. edf is to ask to raise electricity prices. let's get out to steven who has all the latest in paris. >> good morning, edf says that no decision has been made yet

but according to the french government would be ready to accept a hike for electricity in the country, 2.5% increase per year over the next three years in exchange for the offer to buy a significant part of arriva back in march, a record loss was reported for nearly 5 billion euros for the year. the company would have to issue a restructuring plan and sell assets. three chinese companies are ready to invest but the french government to like the core business to remain in french hands. they decided to make an offer for 2 billion euros for the nuclear reactor. it would like support from the government although there is no confirmation that the government is ready to soften its position regarding the price of electricity. in france there is a regulated

price of electricity which cannot be increased without the green light from the government. a price hike will be a significant change in the government strategy because a few months ago, the french minister for ecology had blocked a 5% increase and say that edf would have to find other resources to finance its future investment so the government apparently is about to change its position to soften its position. back to you. >> ste fan, thank you very much. anger at wpp's sorrel pay packet. they have criticized the panel that makes him the best-paid chief exec on the ftse. now, fifa inquiry rolls on. several leading banks have launched internal investigations after last week's arrests and

indictments involving several fifa officials. media reports suggests that transactions are in breach of the rules. jaef has zbroind me around the desk. i suppose the first thing we should say is the banks aren't accused of wrongdoing but a couple of internal investigations spawning off the back of it. >> i think it's inevitable isn't it? you were in zurich last week so you were covering this on the ground there. it's inevitable as these leads are folses that we're going to find out what involvement the banks had, the commercial sponsors had and whether there are other fifa members who are implicated in this story. it's worth pointing out the u.k. banks have tried to get on the front foot on this story for very good reason because these banks have been in the cross hairs over the last few years

overen over all rs sorts of issues. it makes sense for the management to be pro active here and these three banks are one of many banks that are cited in those fbi papers so no doubt there will be all sort of due diligence activities taking place at in -- many of these organizations. >> the big story from my point of view is this is nine fifa executives have been indicted. not fifa the organization itself. not the president. so there's a long way to go before we're likely to see the kind of meaningful change that a lot of people in the world of soccer want to see. at the memo we just have charges, not convictions, and it's clear that the stakeholders, those that get to vote in these elections we had on friday they don't want change yet because they voted for the status quo. we need to see this carry through and these other investigations being spawned off

of it and whether when we may or may not get convictions do we see the financial action to force the governing body to change. >> it falls naturally into our remit than it was last week. it was a story about arrests and indictments and that will play through as the investigators put their ducks in a row but what's growing out of this gradually you feel is the corporate implications. not only for the banks and whether they were perceived to have been involved in any money laundering activity because we know a number of of the banks cited have checkered past records on this but also you know where does nike mcdonald's visa where do they go on this story? at the moment they all seem to be standing by fifa and saying this is very serious. we need to have a closer look at it. but one suspects that this story will develop stronger legs and will have more than we're just having a look at it at this

stage. >> it's worth highlighting how importance these companies are to fifa. they had 5.7 billion dollars of revenues. 4.8 of that 5.7 came from the 2014 world cup. of the 4.8, half was from broadcasters and third from sponsorships. they ver important to the future of fifa. >> do you think the europeans though are out of step with the rest of the organization at this point? because clearly they are still very angry and are still banging the drum to get rid of the head of fifa. he was re-elected. >> he got 133 of the 209 voters clearly those voices in europe it's not that they were unanimously behind blater. we think that 45 of the 59 votes

went toward prince ali. perhaps there should be more accountability of the heads of national fas to their country. outside of the key european markets, u.s., australia, they have been quite public on this i don't think there's the same type of yup roar as we're experiencing here. people have voted and that's how they voted. until there's a bigger financial threat, i don't think we see the change that fans want to see. >> we had a bit of a cross talk last week and obviously there was a sense is this really a story? this is this is dominated by european confederations and organizations, although it's north american and american individuals that have largely been taken to task here. the point that he was making this is about soccer a low-scoring game. you couldn't say that really about the efa cup over the

weekend, did you? >> no. i'm glad we moved on. that is one of our star players saying the premier league our next target we're gunning for you jose. arsenal beginning to show the ruthless streak that we have lacked the last eight years. 4-0, the results. >> the interesting question is this the swan song does he bow out because he's got enough silver for the club? >> i don't think he bous out this summer. i imagine his current contract still has two further seasons to run might be his last. he would love to bow out with a big trophy. next year, we need to deliver the premier league. many some fans celebrating. a very nice result. thanks very much for joining and

talk football. a pleasure to have you on "worldwide exchange." let's bring you many some flashes german prime minister. he said need decisions now on greece. all proposals for resolution to the greek crisis on the table. that's coming from the german vice chancellor. now, noble laureate says the u.s. could be singing -- sinking back to a new normal. stay tunled as we discuss on "worldwide exchange."

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. a very warm welcome. this is "worldwide exchange." i'm wilfred frost and here are your headlines from around the world. june put some warmth into the markets. u.s. stocks set to follow europe in the green. this is noble-prize winning economiest tells us that it's heating up in some areas. >> there are places in the united states that are really in bubble territory. >> mixed picture for pharma. astrazeneca and roche.

key parts of the patriot act expire after the senate fails to extend them. the nsa is left in limbo on bulk collection of phone records to search for terrorism links. secretary of state john kerry is on the way back to the u.s. after breaking his leg in a cycling accident. let's have a look at u.s. futures. note, first of all, we're going to have a look at european markets. my apologies. fits 100 is just below flat as it germany. both of the two of them had in fact had been slightly up at the start of play. we just lost a little bit of ground. france and italy up .3%. most of this net positives we're seeing is a bounce back from friday where europe was markedly

in the red. we had some pmis across europe as well mostly in line with expectations, although germany was a little soft. u.s. futures, what are we expecting? we are expecting a positive open of the s&p opening up about 4.5% the dow up 58.3 and the nasdaq up 13 points. of course, over the course of the last month, we saw u.s. equities up around about 1%. so continuing a positive. in the futures are anything to go by let's look at bonds, of course, we saw quite a maryked correction over the course of april and early may in the ten-year german yield that allows the yield to rise up 0.7, we're back on a buying trend, seeing them 0.5% today. the u.s. that's been quite happily above 2% for some time on the grounds that we're expecting a rate rise before the

end of year possibly by september. let's move on the euro has been pretty soft having rallied back up it's now slid again back down to below 1.09. it's lost .08%. that's really over fears on greece that's once again elevated over the weekend. we'll be talking with julia about that any money now. let's have a look at sterling. 1.522. come odd its, the oil price did rally quite marketedly. it's been sort of steady in the grand scheme of the last 12 months of oil prices. 59.68 for wti, brent. 64.96. let's give you a rundown. april personal income and spending aout at 8:30 earn auto.

both expected to increase. a possible sign that consumers are done pinching their pennies. at 10:00, we get the ism manufacturing index. fed vice chair stanley fischer is north of the border speaking in toronto. the u.s. economy shrank by 0.7% weighed down by a stronger dollar and lower oil. >> there's a secular stagnation story which is a powerful theme right now. i consider that a thought virus in the sense it's been implanted in people's minds and it's become a source of europe. a lot of people feel down deep i know we're not getting out of this. we had sort of a recovery in the u.s. i don't know whether we're sinking back into a new normal. >> joining me now is lindsey

stern-pierce. we've had plenty of data out in recent weeks in the u.s. inflation is picking up and of course the comparatives for inflation will be much easier at year end. are there other data points that need to be considered as well? >> i think the key data point is that you are right, it's all about jobs but right now, jobs creation seemed to be very modest but positive. the key economic story for the u.s. comes out this friday and we are looking for again more of the same modest but positive. right around a rise of 220,000 which is a step in the right direction from that more pronounced weakness that we saw back in march. but significant step in the wrong direction from that plus 300,000 pace that he with saw at the end of last year. if we do see another month of

right around 200, 225,000, this suggests more of the same. and a continued decline in that momentum from the morrow bust pace of hiring at the end of last year. >> what do you make of retail sales and earnings from various retailers over the last few months? >> i think the consumer in the u.s. is still very restrained. we saw that very short lived rebound in march retail sales. in april, consumers once again pulled back. as we saw april retail sales come in flat after three consecutive negative months earlier on beginning in december of last year. so it's very clear that among very moderate employment gains and very stagnant wage growth consumers are concerned about financing today's spending with tomorrow's dollars. meaning there's less certainty about income opportunities, income growth opportunities down the line. >> and lindsey, if we sum all this up together do you think therefore it's a little

optimistic or premature to expect the fed to hike rates at some point in 2015? >> i think it's very optimistic. it seems like the market is very optimistic as well. looking at the april data may data, it doesn't suggest that there is the type of momentum in the pipeline that we're going to see a 2014 style rebound in the second quarter. so we if do see growth come in under the market's expectations which is around 2% for the second quarter, that would give the year the starting pace across the first six months the slowest pace of growth since the great financial recession, and so again, although fed officials are chomping at the bit to raise rates, the data right now suggests a much more dire reality that we do suspect will keep the fed on the sideline well into the end of the year if not into 2016. >> just to conclude is the u.s. dollar thus no longer in a

structural bull market? >> well i think there's still upward pressure on the u.s. dollar as we look at our relative counterparts around the globe. still a significant amount of additional weakness overseas particularly in europe. so there still is room for upward pressure on the dollar but looking at the underlying fundamentals whether or not they support a rate increase i don't think there's enough strength there. >> thanks so much for joining us. now, greece's prime minister has lashed out at the country's international creditors for failing to agree for a cash reform deal with athens. alexis tsipras suggested that greece has done its part to meet the demands of the bailout where reasonable. the greek p.m. ends the article that the future of europe is in the hands of its leaders who

must show solidity. >> he says look we need to be met at least some part of the way and i think they have been reiterating this the whole way along. what we do know from the discussions offer the weekend is that they are still discussing how to close the fiscal gap from this year an estimated 3 billion euros according to what i'm hearing at this stage that is the ultimate red line here. tsipras is not willing to back down on further austerity. >> an interesting point in that article. he's saying if people don't back down if the creditors don't back down it's going to be a failure of democracy across europe. his party has been elected with a mandate. they have got to carry out that argument. is it a fair point to make? >> it's an interesting point to make, isn't it? he's basically been elected on this promise of no further austerity. he's also been elected to keep the country within the euro. you can argue where the negotiation, where the backing down in a sense that's to come

from at this stage. i hear a lot of people suggesting that his support at home is falling as a result of these negotiations. i think support for the stance is falling. don't actually under estimate that he's got from the people here to push back on austerity and ultimately i think he's got many reasons not to back down here particularly given the factions within his own party which are very much staunch defenders. >> are there other lessons to be learned from the eu? we've had local elections in spain and italy as well and obviously a government of u.k. voted on a promise of a referendum. should they be reacting to this now before it's too late? >> i think you can pick and choose your battles here and europe is very aware of the rise of populist parties. isn't that an argument to push back? what's the worst precedent here

allowing a country like greece to leave the euro zone and allowing a back down of the stance? i think the lesson to be learned here is perhaps not a good one for greece. >> to sum things up the likes of the u.k., there's nothing immediately worrying for markets there. it's greece we keep our eyes on. >> as far as italy is concerned, just watch the tensions within the democratic party, prime minister renzi's party in particular. whether that creates issues. as far as pain is concern, we're still washington whether or not -- watching whether they can control the far greater portion of the spending. one eye on it as least. u.s. secretary of state john kerry is expected to come back home after breaking his leg in a bike accident. he was flown by helicopter to a

nearby hospital. the state department says kerry has cancel the rest of his overseas trip and just make a final recovery. beau biden, the son of the u.s. vice president joe biden, has died at the age of 46 was brain cancer. he was also a former army officer who served in iraq. in a statement, joe biden says his son fought cancer with the same integrity and strength he showed every day of his life. stay with us here on "worldwide exchange."

welcome back. let's give you some headlines. u.s. stocks are set to open june on a positive note with futures pointing higher. the nsa is left in limbo on phone data after key parts of the patriot act are set to expire and u.s. secretary of state john kerry is on his way back after breaking his leg in a cycling accident in france. a major study shows a drug targeting the body's immune system may improve survival for one of most common forms of cancer melanoma. it shows the bristol drug

improves survival. we have an interview with gee vane cafario and also pascal soriot at 8:30 a.m. and alsos pfizer chairman and ceo ian read. intel has reportedly struck a deal to buy altera. that's roughly the same price that was rejected in previous talks in april. the deal would be largest ever for intel and follows a wave of mergers. let's have a look at price action. intel up 1.2%. now starting today, smoking is banned in public spaces in

beijing and the latest attempt of the chinese government to crack count -- down on the country's happens. let's get out to eunice who has the latest from beijing. >> reporter: this is the toughest anti smoking law in china ever. as of today, people in beijing, the capital, won't be able to smoke indoors, in public places such as hotels or restaurants or offices. they also won't be able to light up in certain outdoor areas, either. sporting events also outside of schools or hospitals. this is all a part of the chinese's government to get people to quit smoking. they have concerned about the health costs the fact that china is the biggest consumer of tobacco products and they have made these efforts in the past back in 2011 we saw another similar smoking ban, but that wasn't very effective mainly because smoking is a really big part of the culture here where

people do give cigarettes as gifts, but also there were no financial penalties that were associated with that particular ban. this time there are. fines are going to amount to about $33 per individual who is found smoking in a public area and $1,600 for businesses that allow people to smoke on the premises. the government also wants to really enforce this law. they are sending out thousands of inspectors and also encouraging the public to name and shame themselves. their friends or other people outside. they are saying that people should call in to the government hot line or possibly post photos on the government's social media app. the other thing that's interesting here is that the government is involved in a campaign to try to get people to indicate to others that they are displeased with the smoking and they are doing it with different hand gestures. there are three contenders. one is this which is smoking is

not allowed, or this one, which is i mind that you are smoking, and the last one is time-out stop smoking. these are the three hand gestures that people are talking about to see which one is going to be able to best convey that the smoker that whoever is around them does not want them to continue to smoke. >> thank you very much. i think the last one is the clearest message. i'm doing it now. there we go. welcome. i remember very clearly when it came into the u.k. made much more pleasant evenings out. thank you very much. one woman's trash can literally be another woman's treasure. a lady in california cleaned out her garage and sent out a rare apple 1 computer to a recycling center. she sold it to $200 rk,000. she's entitled to half of the the proceeds. for more on that story, head to our website, cnbc.com.

and checking on nahendra modi's progress. we'll discuss in a couple of minutes. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. 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.

you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. indian prime minister nahendra modi has appealed to

citizens to take care of themselves in the face of a heat wave that has gripped india for more than a month. more than 2,000 people have died in the sweltering heat. temperatures reached over 115 degrees last week. and weather officials say it will last for another four or five days. the government has been criticized for being slow to react to the crisis. of course we also coming up to 100 days -- i'm sorry, one year of prime minister modi being in office and joining me to discuss that. thank you very much for joining us. let's just quickly touch on that heat wave we just mentioned. how serious a blow is that to economy and the nation? >> thank you very much. yes, i think clearly the concern really now is what happens to the monsoon because if we have a below normal monsoon, then

clearly, agricultural output is much lower. consumption will be overlower. then the growth story becomes a lot weaker. there is the wide most important loss of life that's happening. even on the economic front there are worries about how quickly we can see the normal monsoon season coming into play. >> let's touch more broadly on mr. modi's first year in office. as he came to pour there were very high expectations of him from investors and in general over the last 12 months the market has performed quite well. so can we lead from both those points to say that investors think he has done a very good job? >> i think the reaction has been mixed. clearly, i think the expectations were extremely high. it was a very unusual victory the first time the majority government has come into power

in india in 30 years and it was such an absolute majority. really unlikely result given the opinion polls ahead of the election so clearly though expectations are very high. there are certain areas where the government has met expectations, such as in reducing corruption and improving the bureaucratic set up reducing the administrative controls that are there, which make it easier to do business in certain areas it has actually surpassed the kind of expectations that have been seen including things such as increasing the amount of fdi or the fdi caps. i think there are certain sectors where the government still needs to do more. i think those will be very crucial in order to get sustained growth. this includes further labor reforms, things such as the gsd bill and the line acquisition bill which still haven't been passed. i think it's a mixed performance.

it has tried to show that it it is really working toward putting india on a more sustainable growth path but we need to see a little bit of the growth reforms come through before we can say the government has achieved its objectives. >> there are types of economic reforms that are still needed is that more down to mr. modi or to mr. jatli? >> i think it's a combination. i don't think there's much of a dissonance between the two. i think this was something -- a lot of the policies were something that were already flag by the bjb government ahead of the election and again their continuation of policies things such as deregularing the diseasezezel market. i think there's been a confluence of positive factors, but on the whole, the manifesto had been slightly right of

center, and i think that has been delivered. you have seen that coming through in the kind of policies that are being suggested by the government and are being implemented by the government. >> thank you so much for joining us with our senior global economist at standard charter. still to come here on the show from a smoking ban to a smoking hot market we ask it if the bull run in chinese stock still has legs. we also leave you a look at the u.s. futures ahead of the open on wall street. we're looking at a positive open. we're back in two minutes on "worldwide exchange."

a very warm welcome to "worldwide exchange." i'm wilfred frost and here are your headlines from around the world. june put some warmth into markets. u.s. stock set to follow europe in the green. this is know bell prize winning economist tells us the u.s. economy is overheating in some areas. >> there are places in the united states that are really in bubble territory. >> mixed picture for pharma.

we have an exclusive interview with bristol's new cfo. key parts of the patriot act expire after the senate fails to extend them. nsa is in limbo. secretary of state john kerry is on his way back to the u.s. after breaking his leg in a cycling accident in europe cutting short talks with iran over a nuclear deal. if you are just joining us thank you very much. let's have a quick look at how the u.s. market is expected to open. futures called higher. the s&p expected to open at 1.2% the do you expected to under 30 points and nasdaq 6 points. let's look at european markets which were in the green until about half an hour. as you can see, we're looking at red across the board. this really just stemming from

uncertainty over greece and some pmi data this morning this afternoon too strong. at the back end of last week, we saw european sell-off dramatically. that positivity has left markets over the last hour or so. we're looking at france down just below flat. germany the most notably down almost half a percent. speaking earlier on squawk box europe robert schiller was asked if he sees a recovery playing out state side. >> there are places in the united states that are really in bubble territory. for example, san francisco, it is hot, hot, hot. they are going way over the asking price. every house sells quickly. it looks like a boom. but san francisco is a city which has a history of booms. they seem to be certain boomy places and california is

booming. why is that? you have to go there and live for -- they have a high strung mentality. it's a sense of their own importance. i shouldn't say this. i'm not a californian, and london has the same problem, by the way. >> chinese markets closed over 4% higher. official pmi edged up 6% in may. meanwhile, china's once resilient services sector showed signs of cooling with pmi slipping to a five-year low. all of this amid hopes of a further stimulus from beijing. investor interest in chinese ipos continues to surge with shares in hutai raising more

than 7%. the company is the fourth largest brokerage and is represents the second largest ipo this year. it also has a listing in shanghai and the stock is up 20% year to date. and china national nuclear suspect looking to raise 2 billion. the company intends to start taking scripgses on tuesday. if analysts the ipo could put further pressure on a stock market already facing head winds from tougher requirements. mainland asia have returned positive gains of 12 out of the last 13 months. are shanghai stocks an obvious buy? >> reporter: it had one of its most volatile months in recent memory. last thursday the market

plunged by over 6.5% briefly nearing nearing. >> several brokerages tighten margins. >> reporter: it was the drop for an index that has been one of the world's best-performing. it's up more than 40% this year alone. but for many the dive was not entirely unexpected. analysts have been saying for weeks that the shanghai composite could be on the verge of a bubble one of the reasons for thursday's dramatic decline was because brokerage firms have been tightening rules on margin lending for their clients. margin financing is essentially borrowing money from a broker which is secured against the share. this cheap form of credit is in excess of $322 billion u.s. in china loan. last week chang-yen securities

and other securities all tightened their rules for margin lending. this form of credit is one of reasons why china has such a high level of retail investors and the reason why the markets are so volatile compared to other global indices. the move could be seen to preempt any further regulatory action by chinese authorities in a bid to avoid any kind of bursting of that bubble but with more than $6 billion of new money flowing into chinese markets last week alone, it's unclear if that can be avoided. phil hawn cnbc london. joining me is fred. thank you for joining us. before we get to market specifics. let's get to fundamentals and a slew of data coming out. it's the third month in a row that we've had the pmi below 50.

how worrying is that? >> it's very worrying. we've seen cuts pumping in liquidity and yet the economy doesn't seem to be responding. in prior years, usually, economic data tended to respond quite quickly. this time around it's a much more lag response and so probably more needs to be done by way of stimulus and there's a bit of disconnect here between how the economy is faring and how the stock market has performed. >> absolutely. part of that is of course is based on today's expectation that we will get a lot more stimulus. is there a point that the market is moving in the wrong direction based on the stimulus? have we gone too far now and is this a bad move if we get more stimulus for the economy in the long term? >> i think you are right. i think worst economic data is more stimulus. the longer it take for this rebound to actually occur if it ever does the more than doubts start to creep into the market.

the other thing that spooked investors in the last two weeks is this idea that margin lending is again being tightened up. remember in 2007, when we had this enormous china stock market rally, they came in and tried to cool it down and quite successfully so. it's both economic uncertainty as well as policy uncertainty that has the market a little bit jitterry in china at the moment. >> when we talk about this time around the effect of the fundamentals, is it part that the due to the fact that other markets around the world are loosening much more than china? to what extent what's that been for the currency for china, the yen incredibly weak? is that causing pressures on china? >> it's not so much the currency. it's not massively overvalued. the problem for china is that the global economy isn't ramping

up. you have lack of demand. it's not a currency issue as well as a foreign demand problem. if you look at exports across asia again, we saw the data coming out this morning, every country the exports are down. so the external environment doesn't help but the big problem for china is a deflating construction sector. it's all about construction in china which is deflating too quickly because it's such a big part of the economy, it's tart starting to pull everything else down. >> let's move on and talk about some of other emerging asian countries and in particular that export data that was disappointing. how meaningful was that data? >> it is quite surprising to be honest. after the chinese new year everybody expected a bounce back in shipments. u.s. data was suppose to come back european and japanese economy improves. if you look at taiwan and those

shipments aren't going any further. the reality is the trade and industrial cycle hasn't improved as much as market would believe, including the west. china's weakness is starting to radiate out to all other emerging markets. >> where are the pockets of attractiveness? which is your favorite economies? >> there is one stellar performer, that's vietnam. exports are doing well respect. the philippines continues to do very well and india is sort of improving very gradually but at least it's going the right direction, but others indonesia going backwards, china struggling, thailand malaysia are not doing very well. >> thanks so much for joining us. fred newman. we want to hear from you on this topic. are you a china bull or a china bear? do you think the rally in beijing has further to go?

we've been getting your tweets all orange. scott roj evers says i am china scared as far as the markets are concerned. and jeff has tweeted in to say, i'll bet you need a bubble index to track the chiens market, #bear. if you want to join the conversation email us or twitter. let's take a look at today's other top stories. beau biden, the eldest son of u.s. president joe biden has tie -- died of brain cancer at the age of 46. he was the former attorney general of delaware and was also seen as a rising star in the democratic party. in a statement, joe biden says his son fought cancer with the same integrity and courage and strength that he demonstrated every day of his life. u.s. secretary of state john kerry is expected to fly back home today after breaking his leg in a bike accident near geneva in sunday. he was cycling near the french

border when he crashed. he canceled the rest of his overseas trip and should make a full recovery. coming up cashing up on your chips. intel pulls the trigger on the company's biggest acquisition. all the details after this short break. d [ male announcer ] ours was the first modern airliner, revolutionary by every standard. and that became our passion. to always build something better airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪ ♪

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the field of candidates for the 2016 u.s. presidential race grows even wider. republican senator lindsey graham is expected to announce his bid today. he hails from south carolina an early and important primary state. former maryland governor martin o'malley threw his hat into the ring. he was also the mayor of baltimore. citigroup is expected to close its banamex usa unit after a probe of possible money-laundering violations. regulators aren't seeking them to shut down but more a penalty of $100 million. it focuses mostly on consumers who routinely need to transfer money across the u.s.-mexico

border. share prices just above flat today in german trade. the wave of consolidation is set to continue as intel is set to make a major deal today. >> good morning to you. intel has reportedly struck a deal to buy rival altera for $45 a share. that's roughly the same price that altera rejected in april when talks first broke off. it was first reported by the new york post late last week and it would be the largest in u.s. history. it has more than 3,000 employees inspect u.s. and european countries. since news of the talks first broke, their shards have gone up tods 50 on friday. demand for partly cloudy chips -- p.c. chips have --

aerlt has used some of intel's technology in its products. this would just be the latest in the wave of recent deal-making action. avago agreed to buy broad com, the largest acquisition since the dot com bottle. the moves come as chip makers are being squeezed by the likes of apple and samsung on pricing. shares today in europe intel is up 1% while altera is up nearly 6%. thank you very much. have a wonderful day. moving on let's talk about facebook. native americans and domestic violence victims are among those planning to protest outside facebook's headquarters today. this over the social media's company real name because they have changed that policy.

facebook requires them to use their given names, but some members say it's being used to target people they disagree with. they are working on how to make improvements. before we go to break, let's remind you of the headline. weaker than expected pmi figures for the euro zone and germany takes the heat out of talks. secretary of state john kerry is back in the u.s. after breaking his leg in a cycling accident in france. we're back in two minutes here on "worldwide exchange."

a major study shows a drug tarring the body's immune system may improve survival for one of more common forms of cancer

melanoma. it shows the bristol myers drug blocks a protein that prevents the immune system from attacking the cancer cells. they are up sharply due to wider detail in that release. we have an exclusive interview with their new cfo at 10:00 a.m. eastern. and she will be talking with pascal sori. ot and pfizer chairman and ceo ian read. let's have a look at european markets which have softened throughout today's trade. having opened in the green. they are now weak across the board as you can see. the ftse down 0.2. germany down 0.3% and france down just a little bit. this comes off the back of disappointing pmis in particular, germany. it follows a big sell-off toward the end of last week in european

equities which we had initially bounced back as i said just softened over the last hour or two. let's have a look at euro dollar which has also been markedly weak. it's down 0.72%. it had fallen below 0.09. cities till off off more than half a percent. what does that mean to u.s. futures? we're looking at the s&p expected to open up by 1 point. the dow up 28 points and the nasdaq up about around 5 points. this follows a fall of the s&p last week of 0.6 over the course of the week. sorry, 0.9% over the course of the week. let's have a look at the rundown watch to watch. april, personal income and spending is out at 8:30 eastern. both are expected to have

increased. a possible sign that consumers are done pinching their pennys as they did during the first quarter. at 10:00 m a we get the may ism manufacturing index. and stanley fischer is north of the border in toronto. scott joins me from the cme. scott, a very good morning to you. let's talk about this move we've seen in the euro dollar so far today. it seems that the dollar is strengthened, the euro is weakening, but at the margin isn't u.s. data getting worse? >> i would have said it's getting a lot worse. ever since the beginning of the year, if you go back to the citigroup economic surprise index, our data has disappointed almost every month on month. i would say this it's very interesting to see how here in the u.s. we're talking about this rate hike rhetoric with what janet yellen may or may not do. at the same time, we've got a

contracting economy. it's interesting to see how folks see how we're hoping to do better but the data keeps coming in worse and if data is going to keep doing what it's going to be doing, i think the fed is on hold all year. >> bubbles are appearing in certain areas of the u.s. would you agree with that and if so which areas? >> well, obviously i think i saw some that interview already this morning, he was talking about san francisco and the housing market in san francisco? with are we allowed to talk about the u.s. equity market being on a bubble? we've got some valuations overstretched from the early 2000s and we haven't had any true growth. it's all about true growth. we have not seen that knight in white shining armor coming around the corner with growth to drive the economic engine. we need something along the lines of internet boom of the late 90s to get us out of this malaise. until this happened you are going to see qe out of europe

and asia and u.s. because we're not growing. we've got a whole slew of data. we need to see that u.s. consumer come back to the tils ks if they don't, we could be in some real trouble here. >> are you cautious or are you optimistic? >> i'm cautious. # i don't think the data has been coming in very strong at all. this is going to be a real big friday for the jobs report that we've got coming up. if you look at everything the last five months in total, we have been disappointing to the downside when it comes to what our economic expectations are. so i think we're kind of looking through rose-colored lenses here. if we take a hard look at things we're not firing on all cylinders. i think that's going to continue to be the case and that makes all the more worry about these outstretched valuations and that equity market. something has got to give. >> just a final question on the dollar. it seems that you don't think

rates are going to go up any time soon. do you think the dollar index weakens from here? >> i think it probably -- i think we got to tread some water here. you are always going to talk about the hawks talk about that rate hike rhetoric any kind of good news that comes in better than expectations you are going to see that dollar stay strong. i think that we're not going to go running away from the levels we're at right now. if you are looking at the bloomberg index, we'll stay between 95 98 99. i don't think we're going too crazy. >> thank yous so much for joining us. as we leave you today at the end of show we have european equities the stoxx 600 is bang on flat. having given up some earlier gains. we still got u.s. futures pointing to a positive open. only just. that is it for today's show. thank so much for joining us. i'm wilfred frost. coming up next, "squawk box."

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. good morning breaking overnight, the senate failing to extend a controversial nsa program, that means starting today the agency can no longer collect americans phone records in about bulk. a merger monday intel possibly closing out a deal to buy altera. ig gleess got hurt by a drone getting shots. it's monday june 1st 2015.

"squawk box" bins 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. a california company is looking for a woman who dropped off a couple of boxes of old junk at a roilking center. why? it turns out she unknowingly handed in one of 100 apple computers. it actually was sold that piece of technology history in a private auction for $200,000. now it is looking for the woman to give her 50% of the proceeds. we'll have more on the story later this hour. let's get to the work on the first trading day of june. futures this hour you can see right now, things are in the