>> a very warm welcome. this is worldwide exchange. >> here are your headlines from around the world. >> euro zone inflation data due in the next hour. meanwhile the sense of you areurgency is heightened. >> the aussie dollar surges. the rbi cuts rates signaling the indian economy is not yet on track. >> british-american tobacco falls after a canadian court

requires it to pay billions in compensation for its part in smoking related illnesses. >> a chinese river cruise capsizes in the river. more on that coming up. >> welcome everyone to the show. you are watching worldwide exchange. a couple of economic me tricks coming up in the next hour. let's get you up to speed. the german jobless rate steady at a record low in rate. germany's unemployment rate remaining at a record low in the month of may. private consumption will propel growth in europe's largest economy. we're looking at 6.4%. that's the unemployment rate. the euro gaining a bit of ground against the dollar right now at 109. a similar level it was trading at last week as well. you can see that by a quarter of a percent against the u.s.

dollar. >> we also have greek pmi data that has just broken. a slither of good news for the greeks. it's risen to 48 in may up from last month's 22 month low but clearly still below the 50 mark denoting growth in the manufacturing pmi. still pointing to a downturn but better than last month's reading of 46.5. let's get straight to discuss the latest in markets in europe. he is a partner at rong wealth management. good morning to you. those moves we saw in the bond market yesterday, in countries like germany and u.s. they're not safe havens anymore. they're moving like risk assets. >> when you get near 0 yield in a bond there's no income and no protection they do become significantly more volatile

assets because of the long duration they are. what's happening here is the 5 basis point yield in germany was far too low. and people are beginning to reprice property for the longer term and at the same time we have this whole move toward potential rate rises in the u.s. it would look like the fed was quite keen to get this lift off in place and see where they go from there. the upside pressure on the yields we have non-farm payroll on friday which would be very important. the pressure could be on the bond market. >> just to pick up on that point, the recent gyrations in the bond market. is that moving on the back of central bank activism? >> we have several years of markets moving on central bank activism. >> more so this year. >> from the fed in particular there's a bit of a push to try to get the market to focus on

forward looking central bank activity as opposed today at a dependent and so on so it would appear as if they're going to shift about rate rises. it would appear as if she is quite keen. as long as there's no disastrous data out there nor indeed a big correction in the equity market she'll go for september now. >> for the second half of the year which central bank will command the biggest effect upwards or downwards. is the focus back toward the fed we have seen in japan and europe as well? >> clearly the fed are always going to be the most important. this is a huge step for markets to overcome. maybe market participants will get overly excited about it. our longer term belief is growth

will remain pretty slow compared to previous cycles so we may see bond yields much higher. we don't expect to see the 3 or 4 move higher. we're not overly bullish but not significantly bearish either. >> stick with us. speaking of central bank activity the aussie dollar striked after the rba kept rates on hold and failed to signal further easing. let's get more on that story with sri live in singapore with us. hi, sri. >> hi seema. there were two stories today as the rba and rbi. rates hold at 2%. but that took the markets by surprise i think and that explains why. we did see quite a sharp pop in the aussie dollar and negativity as well. down by 1.7% but you have to appreciate the task ahead for

the rba and it's getting rather complex at the moment given the fact that we're seeing a rather hot property market in sidney so if they do ease further that could feed into those asset price bubbles so arguably are they shifting toward more neutral bias? remained to be seen. we have been getting conflicting signals as of late. moving on to the rbi, they cut the main lending rates by 25 basis points but the commentary was very interesting. there is risk that we could see some upside moves in inflation because of the rebound in the price of oil that we have seen but also the possible effects of the severe electrical nino. and that could have upside for food inflation. we did see the indian market move lower.

further rate cuts may not be a conclusion for the indian economy. broadly negative for the asian markets. we're watching the external leads and we still have jitters from your end of the woods. these are the greek debt talks there. that's where we stand. back to you. >> thank you very much. so asian shares slip. what happened to european shares this morning? they slipped too but in less pronounced fashion. we're looking at a decline of about minus 0.2%. yesterday we eked out slight gains in continental europe with slight falls in the u.k. and today predominantly falls across the board. but slight ones. ftse 100 just below flat as is france. germany looking at the 0.2% of declines. let's look at bond rates. that's where most of the action was yesterday. we saw the german yield compress below 0.5%.

before then spiking back by the end of day's play because of elevated greek concerns. so we're back around the 0.6% level. the u.s. moved from 2.1% to 2.2%. that's focused on where we're likely to see a rise in the fed fund rate. it's about 1.9% in the u.k. and just below 2% in italy. the euro bouncing back a little bit today. up by 0.3%. it of course had a soft couple of sessions back end of last week and this week 1.0995. aussie dollar up as sri was mentioning. no eightrate rise. no cut this month as suspected but the aussie dollar strengthening off the back. >> european leaders called for intense work to reach a deal

with greece. this after an emergency meeting between the german and french leaders with the heads of the imf, european commission and ecb. the prime minister was not contacted after the hawks. athens meanwhile says it will make this friday's imf payment if a deal is struck with it's creditors. speaking to cnbc earlier, oecd's secretary general struck an optimistic tone on an agreement being reached. >> people are reaching out. they're trying to find where they can reach this middle ground. my impression is that there will be an agreement. there is tomorrow in greece. >> stewart with us still, i want to get your thoughts on what's happening with greece because it does seem like he has been confronted with a stark dilemma. rejecting the terms of the bailout could put greece into default but accepting it could split his left wing party.

what will he be doing? what do you think? >> i think the economic situation on the ground in greece, there's no way they can make all the payments in the next two months. next month is even worse in terms of ecb repayments and the fact is that we can't abide by the rules and regulations you have given us. i have a tiny bit of sympathy for the greeks. they're in a really bad spot. in terms of trying to prepare they're trying to get a last offer on the table saying we know you're in a tough spot guys here's our offer. if we're going to all work together in the bigger picture, we have the short-term issue and let's talk about the bigger restructuring issues to come but there's still a good chance that greece could still have a technical default and come out of the euro. parallel currency is still on

the agenda. >> is there a sense with overall anti-eu doing better in elections, will that have them be more relaxed. or is it not political and just more financial. >> it's both. it's not just the recent performance from the eu party in europe this is going on. and what's clear here and we have seen this pull back from austerity, apart from europe apart from germany, there's a clear sort of desire on the part of most countries to say let's get a practical solution and try and tackle some of the bigger issues further out. of course all they're doing is the kicking of the can because rowth and we're seeing a bit of growth and not

much all of these issues are going to come to a head at some point in the future anyway. once we get past the ecb financing and qe program they'll come to the fore again while they're moving away. >> thank you very much. don't forget for more on the greek unfolding crisis head to cnbc.com including a look at how the prices have over 2,000 hours of twists and turns in talks in total. >> coming up on worldwide exchange, a goal for diplomacy. the cuban national team prepares to play an american team for the first time since 1949. all the details coming up. plus can isis be defeated in cyber space? we speak exclusively to the cto of fireeye about fighting terrorism on the net. >> and call me caitlyn. the former bruce jenner reveals

her new identity on the cover of vanity fair. we're back in two minutes.

china national nuclear power is due to start taking subscriptions today kicking off

a frenzy? shanghai. it's one of 23 companies planning to list in china as the country's market regulator continues to step up the pace of ipos. cnnpc is set to raise more than 13 billion which could make them the largest in china since 2011. they could get 5 trillion in liquidity. the majority have been halted on day one after the price jumped by the 44% limit. still with us is stewart. stewart, it seems that the chinese stock market needed something to soak up all of this huge demand in liquidity. do you think the demand we've seen recently is justified? pushing up local share prices? >> to us you know if it looks like a bubble in terms of valuation and trajectory and the market rise in terms of new

margin accounts and margin being used you're very pushed to see why you should be pushing it hard from an international sper speck tif. they have better little avenue in terms of where to put their money. the bond market nothing. property market is very quite at the moment and they're chasing an incredible bull market in equity. last year we saw a hint that the authorities are trying to calm things down but they seem to have just a few hours of correction and off again to the races this week. trying to call a top in roaring bull markets is incredibly difficult. it's just a really expensive market with a lot of activity we've seen in prior bubbles elsewhere. you go in there and take your life into your own hands. >> but do you think regulators intent to accelerate the pace of ipos to ensure they list in china and not in the u.s. given the success of alibaba and

j.d..com? >> we know that china is trying to deepen it's financial markets and keep everything close to home but liberalize markets to a degree where they're less reliant and so on. they need to try to open up the foreign exchange trading. they're trying to keep all of these things up in the air. it will be a feet if they manage it. seemingly they're keeping everything under control but there's a lot of deep seeded problems in china. so when you get a rip roaring bull market and debt going through the roof this is not a particularly happy recipe for a long-term performance from the financial markets. >> do you stay share of not just the market which you think is overvalued but the 8 share market in hong kong. >> well, in terms of chinese growth the official growth numbers is overstated. clearly the 8 share market is trading at a discount to the mainland. however if one goes up the other

will go up. if one goes down the other will go down. >> the imf recently called china's currency under valued. of course china's artificially weak currency has been driven by foreign exchange market intervention by the central bank. what are your thoughts on where it's trading at right now? >> i thought it's roughly coming to line in fair value. >> moderately under valued. >> yeah. >> i think we have seen quite a desen depreciation in the last several years. it's gotten to the point now where i think that although the move toward joining -- becoming a reserve currency they want to try to keep the currency stable. they have a problem with how they try to get growth going. this comes back to the current measures that have either taken too long for their liking or they need some other stimulus to work. obviously to help their trade part it would be to have a weaker currency but they're hoping to keep it stable ahead

of a reserve currency. we think the risk is that it could go weaker if growth in china is lower than they want. however their aim is to keep it stable. >> a big part of the recipe to success in europe and parts of asia as well. stewart sticks with us. >> thanks seema. let's look at the biggest individual movers in europe today. british american tobacco off of 2.3%. it's trading lower because of a ruling in quebec. it's liable for damages of more than $8 billion. b.a.t. will appeal the ruling which included separate fines as well. metro is just above flat. shares in the german department store chain moved slightly higher after receiving a non-binding offer from hudson's bay. metro declined to comment on the report thus far. >> pernod ricard is down after a

full year target of under lying profit growth of 1 to 3%. they were more upbeat going forward saying it expects underlying sales to depreciate. genmab up 2%. they're higher after signing an agreement with bristol myers to license a cancer treatment. the agreement is worth some $4 million, seema. >> let's talk mna. may was a record month for mna state side with a value of deals hitting $243 billion. the previous record was set in 2007 with $226 billion in deals. last month's record figure was driven by charter communications spending spree on time warner cable and brighthouse. the deal to buy broadcom was the biggest tech deal since the dot com boom. and yesterday's big news out of the u.s. was intel buying altera

but broadly speaking what is this m and a boom mean to you? does it tell us there's appetite for investing and putting cash to use or does it signal desperation to grow organically versus r and d. >> the latter camp i'm afraid. may 2007 was a previous peak. if you bought them in may 2007 you would have had a bumpy ride. we know they're generating cash flow but they're spending a lot of cash flow on share buy backs and m and a and historically speaking they peak along we inquirityy equity markets. they're trying to create some sort of value through m and a. it's not good for the u.s. economy in terms of productivity

and when you are near record corporate profit margins there has to be descent value investing in their own brands but they spend all of this money on m and a. so this type of activity is not day-to-day saying this is the peak in equity market. stake a step back from a cyclical point of view this is pretty worrying stuff. >> would you go as far as to say this rise in activity is a sell signal for the market? >> at some point. absolutely. >> let's talk about sectors because of course for some sectors consolidation is a benefit. are there ways that you can benefit even though you don't believe in certain of these deals has having much cinergies. >> the one sector a lot of guys are talking about is the energy sector. we have seen the price of oil

and share price and fixed income credit prices under a huge amount of pressure. if there's any restructuring to be done and value to be created maybe it's the energy sector but the broad market appears expensive. if you look at the median valuation of the stock in the u.s. it's more expensive than in 2007 although the broad market itself if you just take the s&p is not as expensive. so it's more expensive even in 2000. when you see companies chasing prices through either share buy backs or m and a they're good at paying top dollar from a cyclical point of view and if there's any good value to be had shortly they can just invest in their own business. this tells me it's peak of the cycle stuff. calling the day the cycle peaks is a different matter but this is not encouraging stuff. >> you're not a fan of equity markets at the moment. where are you positioned then? what's your top asset class

call? >> in the medium term the dollar has more to go. this is a play on divergence between central banks. most have either been easing continued to ease or will be having that sort of bias where as the fed is very much looking to try to raise rates. so this we think continues to support the dollar longer term. of course that's kind of deflation deflationary and that should give support to fixed income. we said earlier we're not particularly constructed short-term if we see a back up in yields to 2.5 or more in a ten year yield that could be seen as a better point into that market. but overall this is a period where we have seen some fantastic rises in equities and a lot of bonds and it's time to take a bit of a break for the summer maybe hold a bit more cash than usual. there's not that many opportunities. a lot of assets look overvalued and we would be cautious here. >> thank you for joining us. have a lovely summer.

now kfc announced its suing three companies it claims is spreading false rumors about the restaurant's fried chicken products. they include that kfc chickens have six wings and 8 legs were made on social media. the company has been dogged by food safety in china in recent years. we want you to join the conversation on this topic. what's some of the weirdest and most revolting food items you have ever come across. what makes your stomach turn. get in touch with us and share your strange food stories. e-mail worldwide@cnbc.com and our personal handles are on the screen now. >> coming up late oren the show we'll be speaking to jason furman. the president's chief economist. he says the weak gdp print in the first quarter was only a blip. what he has to say about the u.s. economy is coming up. we're back in two minutes.

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. >> european shares fall into the red. meanwhile, the sense of urgency over a deal with greece is heightened as they hold an emergency meeting. >> the aussie dollar surges after the central bank holds rates and fails to signal further easing.

the rbi signals the indian economy is not yet on track. >> british american tobacco falls after a canadian court demands it pays billions in compensation for its part in smoking related illnesses. >> more than 400 people are missing after a chinese river cruise capsizes in the river. >> we have some data hitting the wires for the u.k. construction pmi that's risen to 55.9 for may versus 54.2 in april. a reuters poll expecting it at 55.0. so slightly better than expected. now the underlying lending picture has been stabilizing over the last couple of month.

u.k. mortgage approvals staging the biggest jump in over six years. jumping by the most in more than six years in april. the figures also showed growth in lending to consumers remaining strong underscoring the lopsided nature of britain's economic recovery. a big part of the recovery is consumers taking out loans and lending. this is confidence for the british economy. let's take a look at the currency markets to tell you what we're seeing in sterling. sterling holding on to 152 against the u.s. dollar. >> let's have a look at what european equity markets are doing. first euro 1096. european markets in the red today. they have taken a leg down in the last half an hour or so. ftse 100 down and germany down and france down 0.7%. european inflation data is due

in the next half an hour and just generally weak sentiment in europe particularly overnight some elevated concerns over greece. >> let's take a look at -- or talk more about central bank activity. the rbi rate cut shows that the indian economy needs support. this according to the country's chief economic advisor. they cut rates for the third time this year citing mixed indications of a recovery. shares move lower with analysts citing a lack of clarity on policies to spur growth. let's talk more about this. i'm actually quite surprised by the move we saw in the indian stock market. many investors have been calling for more cuts when it comes to interest rates. why this move to the down side do you think? >> it's a disappointment in sections of the stock market about the rbi's willingness to cut further. i think the message was really a lot more balanced rather than

out right dovish. he is clearly focused on the potential inflation coming through from weather but the external risks coming through in the event that the fed hikes rate. it's a defensive stance and actually quite a cautious one and sensible in my opinion. >> how do you think external factors like below normal monsoon, global crude prices coming back will threaten india's economic recovery. >> i don't think it will threaten. the biggest risk is if the central bank loses credibility and if inflation returns as an issue in india. and he ensures that it doesn't by taking a more hawkish line than expected. that's his job and that's the right thing to do. >> that team with the finance minister and modhi how have they done overall? >> they have done okay actually.

they have tried to move as far as they can within the limitations imposed upon them by their positions in parliament. remember they have a majority in the lower house but not in the senate. they tried to move through other areas to try to push forward various reforms and these reforms are going to come through and are still coming through in india. i think it's fine. india is on track for doing very well over the next few years and i'm not particularly worried about it. stock markets will have a tendency to price in everything right away and we'll have to come back a little bit. that accounts for a little bit of the correction in sentiment in india but the story is very firmly on track in india. >> has the correction gone far enough? >> i think they offer value now. they have also been pushed back by a set back in global equity markets recently and i think they offer value for long-term investors. >> but don't you think still more needs to be done to enable to private sector to invest in

infrastructure which has been something that modi has been promising citizen and investors alike? >> absolutely and more is coming. >> you're not losing faith. >> not at all. this is an economy growing 7.5%. it's an economy that has its inflation under control. highly credible policy makers. it's a country that has to manage it's business cycle and it's doing that and that increases my confidence rather than reduces it. >> as we look ahead to the next 6 to 12 months of the global economic situation, fed likely to raise rates during that period. which economies in asia do you think will handle the rate rise best? >> well i think the chinese economy is going to be running the show really. not just in asia but globally over the next decade or so. the opening of its markets which now have a combined market cap, fixed income and equities in excess of the size of the u.s. economy. this opened the opening of this

market is going to completely dominate all other events globally in the next decade and i think that china is in a formidable position to manage it's economy. >> so that's interesting because we have seen loads of ipos. we're talking with stewart richardson as to whether there's too much in the chinese market. you think this is justified? >> well you know when the moves are as rapid as they have been it's sensible that the authorities come in and dampen the momentum a little bit but if you take into account how little exposure foreigners have in the local market and how big this market is and how far foreigners eventually have to get invested there there's plenty more upside going forward. >> i was just looking at a report. total hedge fund capital invested in emerging markets increased to nearly $190 billion in the first quarter of 2015. to the retail investor who is watching, follow the smart money? >> most institutional investors in em and retail investors are

dramatically underwait in merging market fixed income and equities on a market cap basis and gdp basis. em is 50% of global gdp. i doubt there's a lot of investors with 57% of their portfolios invested in em. even at a market cap basis people should have 12 to 13% in em. most have single digit allocations. >> they have to have the stomach for the volatility. >> but volatile city not the same thing as risk. volatility is the up and downward movement of prices and investors need to look and recognize the distinction between the two. >> we'll leave it there. thank you for joining us here on worldwide exchange. >> hsbc could be set to announce thousands of job cuts next week. the story suggests the cuts will fall apart. chief executive's overhaul plan due to be revealed on june 9th.

they could see between 10,020,000 jobs cut. shares in the group down more than 8% over the last three months. >> now a look at retail. walmart is kicking off the next round of wage hikes raising starting pay for more than 100,000 u.s. department heads. walmart has been under pressure by labor backed groups for the treatment of its workers. the company which is the top u.s. private employer is hiking minimum wages for entry level and hourly workers to at least $10 an hour by next february. taking a look at shares of walmart we'll bring you the chart to show you how it is trading in frankfurt. there it is down at 68.25. >> we're going to bring you some flashes on the u.s. retail market. food retail in particular. data just coming out for the last 12 weeks. we're looking at market share falling to 16.6%. tesco, of course the leader is

at 28.6%. sainsbury at 16.5%. aldi and little joint market share up to 9.3. those discount retailers continue to gain share in the u.k. now let's move on. the world's soccer governing body fifa says it's secretary general was not involved in making a $10 million payment that was part of a bribery investigation. fifa's number 2 man had been linked to payments in the u.s. justice department's probe but that has now been denied. >> sticking with sports there's a historic soccer match taking place tuesday between the cuban national team and the new york cosmos. perhaps the greatest soccer player of all time is with the cosmo's squad. it's the first time cuba played a team from the u.s. since 1949. >> i have to correct you on that

name. greatest soccer player of all time. important one to get right. >> thank you. >> but this is a very interesting match. he used to play for the new york cosmos and the team folded some years after it retired. he's the honorary president of it and he organized this match. it's quite an interesting one. it's a positive spin on soccer and politics. >> sports have been in the news after the fifa scandal but this match will be in focus. this comes as president obama announces sweeping changes to u.s. policy with cuba. so this game is historic and significant if you will. >> i'd love to go to cuba. sounds lovely. >> woen thatuldn't that be nice. >> a powerful lightning strike in mississippi was too close for comfort for a police officer.

he caught it on dash cam video. a bolt of lightning narrowly missed the cruiser and came down and struck the bridge in front of him and quickly disappeared. the only sign of damage left by the lightning strike was a missing chunk of concrete on the bridge. >> i'm always afraid of being struck by lightning. >> it's much more dangerous for me. >> because you're tall. >> you're not actually going to be struck by lightning. >> you never know. it happens to people. you hear stories. >> like one in a billion people. >> but you could be that person. >> more of a risk for me. >> it's a risk. still to come on worldwide exchange, the japanese government plays damage control over a massive data breach for the pension system. we speak to the ceo from fireeye about the global war on hackers coming up.

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>> officials say the lion attacked a 22-year-old woman through the open window she was riding in a vehicle. the woman was taking pictures of the lion when it attacked. >> congress is holding a hearing today on the air bag recall. in written testimony the company

says it will stop producing the driver's side inflaters tied to a potential defect linked to 6 deaths. the head of the national highway traffic safety administration says the agency needs more money to keep motorists safe. down about a third of a percent in japan. >> real wages rose for the first time in two years in april climbing 0.0% from a year previous. good news for prime minister shinzo abe and the bank of japan attempting to boost consumer spending. this as the u.s. dollar hit a new 12.5 year high against the yen in early trade. 124.5 at the moment. >> the japanese government is scrambling to reassure public pension holders after a data breach involving $1.25 million people. a top aid to abe said we will make every effort to keep this from causing an inconvenience.

they accessed accounts using an external e-mail virus. let's talk with dave. a pleasure to have you on worldwide exchange. >> happy to be here. >> there seems to be a steep trajectory to this world where every security risk and attack met by hackers is met by the right defense. when do you think we reach that time? >> that's tough to predict because the fact of the matter is there's a couple of issues at play. one is bad guys are forever and all of human history there's always been someone that wants to take your stuff and that's always going to be true in the future. the second challenge is just like we try to innovate as the good guys trying to protect organizations and networks bad guys also innovate. so i don't know if it's so much make it go away as it is put it back into balance and better manage the risk. >> what needs to happen especially pertaining to japan? we're seeing domestic spending on cyber security rise. governments are allocating more capital toward the risks of

security. >> absolutely but beyond just the spend in cyber security around things like technology organizations also need to invest in things like intelligence and expertise. you need to have intel because the bad guy has intel about you. bad guy organizations, whether it's nation states or organize crime terrorist groups invest heavily in that but lastly the human element. you have to have a human brain on the good guy side on the defender side working actively against them. >> i noticed in some of your comments this morning you said there's a need to share the threat intelligence moving forward. so should you be merging with other leader antivirus software companies in order to bring the biggest social benefit to the world? do you need to come together? >> when we talk about sharing threat intelligence we already invest heavily in that. a lot of the technology we invest in involves intelligence sharing in real time between all of our customers globally. so our customers become part of a global defense community.

another aspect of sharing is between things like victim organizations. when i look at particular organizations that are part of the same industry for example. financial organizations getting together and working together. government organizations getting together and working together they share a lot of common threats and a lot of common problems and they can learn a lot by exchanging lessons learned. >> you also mentioned that news organizations have been targeted for these groups. why news organizations more than any others? >> i don't know if it's more than any others but news organizations also. several things are attractive. you have a lot of information about news sources you're going to publish stories. those stories might be derogatory toward certain national interests or terrorist organizations so access to that is interesting also as we saw with the tv 5 situation in france news organizations often represent a very positive aspect of western culture which might be viewed negatively by other organizations and going after you as a symbol is very

interesting for those groups. >> what was so scary about the irs story that came out last week is that social media was used to grab information of clients, mother's maiden name and location. how do we get more people to -- how do we get more people to be aware of the risks of posting too much information on their whereabouts and personal information as well? >> a lot of that will come from conversations like this. we have to talk about this publicly. educating. understanding that with the great social interaction power of the internet also comes an increased need for personal responsibility. you have to get some internet reflexes around how do you not walk down a dark alley at night and you put out your maiden name and where you went to elementary school and all of that information can be used to compromise things like tax records as it was in the irs situation in the u.s. >> are are cyber criminals over overall stateless. we have seen people claim credit

perhaps based on isis but they're often not geographically based in those regions and countries. are they guns for hire willing to carry out a tax for anyone willing to pay up? >> there's both. they're both very tightly stated actors. we published chinese military units engaged in this activity but plenty might be guns for hire or might be opportunists but without final ties that carry out their names. >> dave thank you. >> now switching focus, hundreds of people are missing after a cruise ship capsized on the river in southern china. at least five people were killed when the boat traveling carrying more than 450 passengers sank near the province. rescuers are trying to confirm whether they're trapped inside the upturned boat. up to 20 survivors have been rescued. bad weather has been blamed for

causing the accident. now on to health care pharma stocks posting stronger gains in recent months with positive drug trials and m&a lifting the industry. meg has been at the american society of clinical oncology in chicago to find out how therapy is helping big pharma companies boost sales. >> it's the biggest cancer research event in the world and it was a buzz about immuno therapy. drugs that unleash the power of the immune system to fight cancer. two medicines on the market. merck also has a drug approved for melanoma and the head of research said this year is a turning point for the technology. >> abruptly about two years ago we and others began to show we could manipulate the immune system in such a way as to reveal the pre-existing ability to actually eliminate tumors in some patients. over the last couple of years those results have expanded and

increased in number. >> roche, pfizer and others are developing. one is using bio markers. signatures in cancer cells that may determine who responds to which therapy. >> we are starting a broad population of patients in order to really understand what the bio markers are and it varies by tumor. it varies by line of therapy. >> along with excitement about the drug's promise came a concern about their cost. particularly as they're used in combination combination. they're causing doctors to worry about a new side effect. what some are calling financial toxicity. >> if your really concerned then

you become very posteffective. so look at pricing for a treatment type. instead of selling your products actually the charge for the treatment of lung cancer and come up with a price that is sustainable. >> results were also presented on drugs for breast colon and other cancers. one drug for ovarian cancer made by small bio tech immunogen sent it up midday. >> coming up we'll be checking up on drug makers and the health care sector with polar capital in about an hour from now. >> switching focus, bruce always had to tell a lie, caitlyn doesn't have any secrets. the former produce jenner revealed her new name caitlyn on the front cover of vanity fair.

her account was the fastest to reach 1 million followers four hours later breaking a record set by president obama. stephanie gosk from nbc news filed this report. >> as soon as the vanity fair cover comes out, i'm free. >> once bruce jenner now caitlyn jenner described the truth he could tell. jenner says if i was lying on my deathbed and had kept this secret and never did anything about it i would be lying there saying you just blew your entire life. today caitlyn jenner tweeted for the first time. i'm so happy after such a long struggling to living my true self-. welcome to the world caitlyn. can't wait for you to get to know her, slash, me.

more than a few on social media suggested wheaties should put him back on the box. >> while we see this increased interest in transgender people we still have a long way to go in terms of making the world a safe place for those people. >> the 22 page article describes jenner's doubt after facial reconstruction surgery asking herself what did i just do but the feeling passed. jenner says she was close to suicidal after tmz reported on possible adam's apple surgery in 2014. forced to tell the family before she was ready. son brandon responded at the time i've never been more proud of you than i am at this moment. >> 65-year-old jenner's family life has been public for years in keeping up with the kardashians only recently discussing her transition. >> do we have any more questions. >> when do we start referring to you as her. >> you will see me and you will know. >> now there's a far more

personal reality show set to air this summer. >> caitlyn doesn't have any secrets. >> and she has quite a story to tell. >> now the chance to break bread with warren buffet is still in hot demand. bid for this year's charity auction for lunch with the billionaire investor passed $1 million in less than 24 hours. all proceeds go to the glide foundation which provides food and health care and other services for the poor and homeless. last year $2.6 million was paid for the meal. >> time for our viewer exchange. kfc sued three companies spreading false rumors about the fried chicken products. they say the rumors including claims that their chickens have six wings, 8 legs and maggots

has been on social media. >> we want to hear what's some of the weirdest and most revolting food items you come across and what makes your stomach turn. i have to say when i was in china last time although it was not at a kfc restaurant some people at the table had chicken feet which is pretty unattractive. >> i'm an adventurous person. i haven't been as adventurous as i should be. >> more coming up jason furman president obama's chief economist joining us after this break. stick with us. you won't want to miss it.

we're kicking off this second hour of worldwide exchange. welcome. i'm seema mody. >> i'm wilfred frost. here's your headlines from around the world. >> euro zone inflation data due any minute now. and the sense of urgency over a deal with greece is heightened as they hold an emergency meeting. >> bond yields march higher across the board with a strong surge in auto sales expected to add to the bag of positive u.s. data. coming up we hear from president obama's chief economic advisor on whether the momentum will be maintained.

>> takata will make one type of air bag. >> not ready for primetime. apple's prescription tv service is delayed while it wraps up licensing deals but the rival to spotify is on track. >> and we've got some european inflation data that is just breaking. may inflation was estimated at 0.3% year on year. the consensus was 0.2% where as april reading was 0.0%. that's slightly better than estimated 0.3% year on year. let's have a little bit of a look for more of this data. we have also gotten ppi data. we have jurors owe zone april's

prices looking at minus 0.1% month on month. minus 2.2% year on year. it was slightly worst than expected for producer price inflation but the main one was cpi coming in as expected. slightly better than expected 0.3% year on year. >> let's look at currency markets and how they're responding to this data. a key part of economic recovery here across the recovery zone. right now at 10987. european markets. >> in the red today. quite significantly. we're over 1% down. that spread as you can see evenly across germany, france

that inflation data not really the cause of it nor in fact other data we had out earlier. it's really heightened fears over greece once again that's just taken the wind out of european equity market sales. >> there's a certain level of finesse in the markets given the mixed economic data on both sides. let's look at u.s. futures. yesterday a strong day to kick off the month of june here on june 2nd. we're looking at the dow down about 98 points in premarket trade. lingering concerns about greece. we also had the highly anticipated jobs report on friday which is a key part of the fed's policy decision. s&p 500 lower by 14 points and a rough session overnight in asia. that might be weighing on investor sentiment. a quick look at the bond market. the implied volatility in the bond market reached a two year high but since then a little bit of stabilization in yields and right now the ten year treasury

note yielding 2.21%. yielding 0.61%. we haven't seen these levels in quite sometime. >> now a fed rate hike is good news. that's according to oecd secretary general. speaking to cnbc he explained why slower growth in china and u.s. central bank policy were positives for the global economy. >> i see china and monetary policy in the united states normalizing as good things. china can be at 7% and if it stays at 7% that is sustainable, that's good news. 11% was breakneck speed. you go at breakneck speed. sometimes you break your neck. that's not good. the question of normalization monetary policy in the united states means normality is coming back. that's good news. >> joining us in paris is the

chairman of the council of economic advisors. good morning to you. thank you for yoining usjoining us. you wrote recently that the second estimate of gdp for the first quarter was just a blip. is that negativity stemming from issues at home in the u.s. or issues outside in the global economy? >> if you look at the united states in the first quarter there were three things weighing on it. one was net exports took nearly 2% off our growth rate. that very much is a function of development around the world and some of the slow down in the global economy. second, american consumers saved a lot of money on their gas bills and then the third which was a blip was, you know bad

weather, disruptions at ports and potentially issues in the way the data adjusted. >> the inflation picture scares me but it's slightly lower at what it was a year ago. when will the inflation puzzle be solved you think when looking at the u.s.? >> if you look at the core inflation rates, you take out the volatile food and energy you're well below the 2% target but the case we're focused on is wage growth. we see real wage growth. we'd like to see more real wage growth. the economy could benefit from that and a lower unemployment rate we believe would produce that. >> jason let's talk about the

messages we're getting from the u.s. consumer and the retailers. the data has been pretty poor and that despite much lower oil prices. does that not suggest that u.s. consumers are hugely skeptical about the state of the u.s. economy? >> if you look at consumer confidence they're the highest they have been in years and consumer spending really picked up a lot in the second half of 2014. so american consumers are feeling good. it's not an abnormal thing that when you first see some extra money because you're saving money on gas that you use that money to pay down your credit card, your bank account accumulates a little bit more and then a month or two later you're in a better position to spend. historically that's what we have seen. every time you see the spikes in the savings rate they have proven to be temporary. that's my best guess but that's the most important thing to look at in the economy is how the american consumer is feeling.

>> the stock market seems dependent on fed policy. what are your thoughts about the recent debate about the proper future path of fed tightening. do you think we'll get a rate hike in 2015? >> that's something that the federal reserve is going to decide. they're going to make those decisions independently. we're focused on what the administration can do to make sure that we don't have damaging cuts that would come from the sequester in october and instead could make investments in infrastructure that would help provide an insurance policy that the economy could benefit from at a time like this. >> there isn't much time for the administration left. what should be the top priority for president obama. >> well the most immediate priority is concluding trade promotion authority in house of representatives. a bipartisan vote and we're looking for the same in the

house. that's critical. it will help us create more jobs in exporting. exporting jobs pay 18% more on average. up to 18% more and this will help the president have the authority he needs to conclude trade deals most immediately with our partners in the pacific but also with europe as well. in addition to that a whole lot more we'd like to do. invest in infrastructure reform our tax code and invest in that and the president will be working on all of that since the day he walks out the door. >> president obama took over the economy when it was in dire straights. but over the course of 8 years do you think he would have liked to have left it in a slightly stronger state than it is at the moment. >> he's not going to rest until he can do everything he possibly can to help his economy. when you look at something like the unemployment rate at 10% looking like it might be headed

up for great depression levels and now it's back down to 5.4% we can feel good about that progress. that progress came faster than any forecaster would have told you. most people would have told you to see an unemployment rate like this you need to wait until 2017, 2018. it came a lot sooner but we can get that unemployment rate down more. we can see more wage growth. our work is not done. >> thank you for joining us. have a lovely time in paris. that was jason furman chairman of the council of economic advisors. >> european markets are trading lower and take a look at futures. here's what we can expect on wall street after a positive session yesterday. it does look like we could be in for a rocky ride with the dow down 110 points. that's the implied open. the tech heavy nasdaq in focus after two big m&a deals. the big news yesterday intel buying altera.

>> and why are we seeing this negative in u.s. futures? market versus taken a leg down in the last hour or so. they did open ever so slightly positively and we're looking at over 1% of declines in the u.s. and germany. france down just shy of 1% and italy down 0.4%. >> drag hi and legarde head to berlin for talks on greek debt in what some say is the final stretch of talks with greek leaders. that fast approaching one is due. >> we do. what's on the agenda in the u.s.? this trading day? well april factory orders are out at 10:00 a.m. eastern. demand for manufactured goods is expected to be flat following the biggest monthly increase in 8 months in march. the fed governor is speaking about the economy and monetary policy. look for results from medtronic, dollar general and cracker

barrel. >> apple is expected to unveil it's new streaming music service at its developers conference next week. apple wants users to pay $10 a month but unlike spotify they'll only make a hand full of songs available for free listening. apple sells 85% of the world's music downloads but only has a fraction of the streamsing market. >> apple's long rumored subscription tv service is not ready for primetime. the company won't announce the new product at its developer's conference next week because it hasn't wrapped up with content providers. apple is off 1.5% in frankfurt. i have to say on the am front i'm glad they're delaying the launch of apple tv. >> you were so excited about it. >> i'm excited about it when it comes but i need it to be blowout. i need someone to deliver one platform so i don't have to have subscriptions to skype netflix

for movies. if anyone can bring it together which i imagine they're trying to do it might be worth waiting for. >> i'm particularly interested to see what apple unveils on the music streaming front after spot spotify unveiling that last week. can apple be a stiff competitor given the fact that it's not just spotify, you have pandora and others. >> i'm a bit archaic. i just use itunes still. it would annoy me to change programs. but maybe i need to update things. >> you got to mix it up a bit. call me caitlyn. the former bruce jenner reveals her new identity on the cover of vanity fair. more on that story coming up in two minutes.

welcome back. let's give you headlines. strong auto sales are expected to add to a slew of u.s. data. and apple says it's new subscription tv service will be delayed as it awaits new content deals. >> a lot of central bank moves

this morning. the aussie dollar striked after they kept rates on hold after record 2%. >> from the rba to the rpi where the cut rates were cut by the bank of india which shows the indian economy need ace little bit of support. this according to the country's chief economic advisor. earlier the central bank cut rates for the 3rd time this year citing mixed indications of a recovery. indian shares move lower with analysts with a lack of clarity. quite a sharp decline down 2.3% despite the rate cut. >> the dollar in the meantime has hit a fresh 12.5 year high against the yen extending a strong run on the back of upbeat manufacturing and construction spending data. joining us now to discuss is david pierce chief strategist at gps capital markets. thank you for joining us this morning. >> thank you very much. the ism number caught my eye yesterday.

seemingly important when discussing the fed's timetable. what did you make about the data coming out yesterday and what does it mean about the potential rate hike? >> that's a good question. when you get numbers that come out like that we always are a little concerned about the markets. one of the things that's been hard lately is to understand the direction that we're going to see as far as rate moves. the problem with that is there's been a lot of mixed messages in the marketplace. we have been getting a lot of really good numbers and a lot of really bad numbers and we've had a lot of mixed messages recently. that's putting a lot of confusion in the marketplace and it's going to make it much more difficult for us to decide which direction things are going to go. >> we should point out that futures have moved significantly lower over the last half an hour. the dow with a triple digit move to the down side. do you think that has to do with

the stronger dollar? >> we've seen the dollar back off a little bit today versus where we were at earlier in the morning morning. obviously we saw australia not raise their rates and we saw descent information out of germany. the dollar is back up a little bit but going back to your question when we look at the u.s. dollar and the strength of the u.s. dollar that has had a big impact on the economy. in the long run it's going to hurt the u.s. >> it has already hurt the u.s. >> yeah. but when you look at the u.s. dollar is still the strongest it's been in 12 years and the dollar could not sustain that strength if the u.s. economy could not absorb it. and you have to look at it relative to all the other countries in the world. japan is obviously loving the

strong u.s. dollar because the u.s. is buying so much product from japan. it's been a great thing for the japanese economy. >> we're going to pause and bring you flashes coming out of greece in the last couple of minutes. the prime minister said that greece submitted a comprehensive proposal for agreement to lenders on monday night. he says those proposals are specific but they are realistic. he said negotiations are tough and they are determined. he says a decision rests on political leaders in europe so this is more of the sort of same rhetoric that we have seen in the last couple of days but really over the last 24 hours we heard there was a late night emergency meeting from the creditors. and we saw the euro up 0.6% today and equity markets down over 1% today. let's bring this discussion back. there's huge uncertainty around

greece. we have a big month coming ahead. mainly toward payments to the imf which are important but not crucial. and then payments to the ecb later in the month. >> right. >> which path should they go on from here. >> if it was me and i would greece i frankly would probably want to get out of the eu. well not the eu but the euro. the reason for that is it is really difficult for the greek government to really make a lot of interest rate moves and economic moves that are going to really stimulate their economy like they need to. if you look at over the last 12 years there's been a lot of greek companies gone out of business. a lot of that is because they cannot be competitive in the exchange rate market they're living under. if they could have allowed it to deval you wait over that period of tile it would have made them more competitive and the greek economy would be much more competitive than it is now.

additional i think if greece was out of the euro you would have a lot more entire and interest in the greek people to take charge of their own future rather than to try to rely on other companies in the european union. >> david pierce, thank you for joining us. chief strategist at gps capital markets. >> we'll keep an eye on the markets. in the meantime coming up historic soccer match in havana. why one game means so much for the thaw in relations between cuba and the u.s. stay tuned. 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.

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hundreds of people are missing after a cruise ship capsized in southern china. eunice joins us on the phone with more. >> a rescue effort is under way in central china after a ferry capsized killwith with 458 people on board. 15 people have been rescued. some bodies have been pulled out of the water but hundreds are still missing. he is chairing an emergency relief effort after taking it within 50 meters of the ferry. rescuers are on the hull.

they are tapping it with hammers to see if they can hear anyone inside. divers have cut part of the ferry. they're searching for passengers that might be trapped in the cabin. 406 are tourists on a river cruise. the list of the passengers has been released. families have been calling in and they have been gathering in a few centers across the country. among the first to be rescued were the captain and the chief engineer. the captain told the chinese media that the cause of the accident was a cyclone. the country's authorities have not been able to confirm in a cyclone is there but the area has been facing stormy weather. one survivor managed to speak to the chinese media and describe the scene this way, he said that the rains had been battering the ship before the ferry tilted at a 45 degree angle and sunk.

survivors have been taken to hospitals. >> thank you very much for that. 450 missing and we -- our thoughts and prayers with them at this stage. let's change focus and look back at european markets which of course have sold off quite significantly over the last hour or two. we're down about a percent for the ftse 100. germany is down 0.9. france down 0.7%. >> and mostly weak session in asia. might be one of the reasons we're looking at futures in the u.s. lower. we were down triple digits in premarket trade on the dow. the lows down now 87 points in premarket trade. more on today's trading action coming up after the short break.

it's 10:30 a.m. in london. 5:30 a.m. in new york. >> here are your headlines from around the world. >> european shares in the red with futures indicating a negative open. this as greece's prime minister puts the deal firmly at the door of its creditors insisting athens has made concessions. >> more than 400 people are still missing after a chinese river cruise ferry capsizes in the river. >> takata will tell u.s.

lawmakers they will stop making one type of air bag linked to six deaths. >> not ready for primetime. apple says it's prescription tv service is delayed while it wraps up licensing deals but the tech giant's rival to spot identifyspotity is on track. if you're just tuning in take a look at the screen. there you go. u.s. futures pointing to a lower open after stocks kicked off june on a strong note. a lot of deal activity wasn't focused yesterday with intel announcing it's plan to buy altera. avago announcing it's plans to acquire broadcom. right now a lower open. dow down about 88 in premarket trade. here in europe greek fears have been overshadowed by monetary

efforts but in the last ten days greece is getting more focused. they're to present an economic plan. the greek prime minister is optimistic in that he believes eu leaders will respect greece's proposals. we have jurors leaders meeting today. keep in mind we did get euro zone inflation numbers at 0.3%. that was a bit higher than what the market was expecting. ftse 100 down 68 points and we're keeping an eye on the greek equity market down just about 10 markets. now a quick look at the bond market because we have seen a little bit of volatility when looking at yields. the 10 year treasury note at 2.21%. the ten year german bund at 0.6%. keep in mine mixed economic data over the past couple of

weeks but yesterday that ism number coming in higher than what the street was expecting. let's talk more about markets with george managing director and head of u.s. rates strategy. george pleasure to have you on the show. help us understand some of the moves that we're seeing in the bond market. does this have to do with greece's on going financial troubles? >> actually we were coming out of a month in may where the bond market was very technical. culminating at the end of a pretty big bond rally and reversal with the rise in rates earlier. now we're shifting away from technicals and moving to fundamentals and the fed at least from the u.s. point of view. however in the european markets and this is influencing u.s. rates to some degree you have the uncertainty around greece. those two positions of fundamentals and what's going on in europe will be driving the

price action for the next few weeks. >> overall though in the next half of the year, what will drive the u.s. yield curve most of all? fed policy or on going issues in the rest of the world? >> so this tug of war on going for a couple of months if not quarters we'll shift to the fed winning back the narrative but the key thing is consistent data. not just one or two better reports but a shift to a consistently stronger look into the second half and then the fed regaining kind of the show so to speak. >> and do you think the fed really does need to tighten things soon? i mean it's almost like there's been tightening by stealth because of the way the dollar streng strengthened. could we see this pushed back

further than the market is expecting? >> actually this is a very good question. i think one of the things that the fed is trying to wrestle with is why is this urgency to hike? i think part of it is the principle basis of get agoway from the 0 level will be something critical they want to achieve this year but a agree what will be different this time around is they're not going to continue with those hiexkes back to back. they'll take a very slow approach to this where there could be six months to a year where they don't do anything if they were to hike and the dollar were to get stronger and i do think this tightening cycle or them moving toward a tightening stance will be the first step but that doesn't mean that there's going to be huge follow through. >> george, we're almost halfway through the year and i still remember coming into 2015 when investors were so sure that this was the year that the economy would fire on all cylinders. we're almost halfway through and

that done seem to be the case. the pace of job gains has weakened. were investors overly optimistic about the u.s.'s economic recovery? >> yes. this is a zero sum kind of world. if they're working through europe and japan that's going to hurt the u.s. economy so ultimately this is kind of an unsustainable fragile type recovery without easing so therefore the fed knows that keeping rates low is another form of easing. they're going to take this very gradually because they want to ensure that the recovery continues and the last thing we want to do is trigger a recession 18 or 24 months out by tightening too soon. >> is there a reason to hope for a second half recovery? >> at the end of the day, given how weak we're starting from

there's a turn naturally happening into the summer that should at least kind of lift the economy higher but those that were looking for north of 3% growth were really having unrealistic aspirations. >> all right. we're going to leave it there george. thank you for getting up early with us. managing director and head of u.s. rate strategy. >> let's take a look at some of today's other top stories. google has released new stats about it's work force that shows the company is still struggling to diversify beyond white and asian men. 21% last year were women and the overall number of women in technical roles rose 1%. the increase in black and hispanic employees out paced total hiring growth but they account for 2 and 3% respectively. >> ellen pao is appealing the result of the gender discrimination case she brought.

>> still to come here on worldwide exchange apple versus spotify. more details about the irsiphone makers bid to take a bite out of the streamsing music business. we're back in a couple of minutes.

>> apple is on track to launch a

rival to spotify with a new music streaming service. let's get out to landon. >> apple is set to take on spotify expected to unveil a new streaming music service at its worldwide developer's conference last week. apple still hasn't finalized licensing deals with the world's biggest music companies. universal music, sony music and warner music but many expect the deals to come soon. apple is hoping to convince it's millions of itunes customers. most of whom already have credit cards on file to embrace subscription model. but unlike spotify, who has an ad supported free version, apple will only make a hand full of songs available for free listening. they'll also launch a radio service. programs would be hosted by d.j.s. they're trying to get drake and dr. dre to sign on.

apple bought them last year for $38 $3 billion. apple has just a small fraction of the streamsinging market. subscription music revenue jumped 45%. am was late to the game. spotify launched 7 years ago. pandora had more than 79 million active users at the end of marchand beats had 303,000 paying subscribers as of december. apple's long running tv service is being delayed. they haven't wrapped up licensing deals with content providers. apple is also still working on technology needed to deliver local programs. apple wants to bundle 25 channels for streamsing for 30 to $40 a month. back to you. >> landon thank you very much. there's a historic soccer match set to kick off between the

cuban national team and the new york kosmos. perhaps the greatest soccer player of all times is with the cosmo's squad as it prepares for the game in havana. it's the first time cue maba played a team from the u.s. since 1949. >> it was real awesome to interview him. >> how does he compare to ronaldo? >> he achieved more in his career than they have done so far. ronaldo is ahead but he's still in a league of his own. >> love your soccer knowledge. >> moving on a powerful lightning strike in mississippi was too close for comfort for a police officer. wow! wow. he just captured this on video. it struck the bridge in front of him and quickly disappeared into a flicker. the only sign damage left by the

lightning strike was a missing chunk of concrete on the bridge. >> given that you're so tall do you have to be some what careful of the prospect of being hit by lightning? thankfully i don't have to worry about that. >> before we get to break here are your headlines. the greek prime minister is optimistic that european leaders will respect his latest proposals for a debt deal. strong auto sales are expected to add to the slew of recent positive data in the u.s. and takata is set to testify before congress over it's massive air bag recall. more on that story coming up in two minutes.

welcome back. one of our top stories this morning, hundreds of people are missing after a cruise ship

capsized in southern china. at least five people were killed when the boat traveling and carrying more than 450 passengers and crew members sank near the province. rescuers are trying to confirm whether survivors are trapped inside the upturned boat. up to 20 survivors have been rescued. >> greek officials continue to air optimism that a deal with it's creditors is not far off. speaking in the last half an hour the prime minister said athens had submitted realistic propoelz proposals in return for further funds. an agreement now rested with the political leaders. it comes after the german and french leaders with the heads of the imf, european commission and ecb. let's have a look at what european markets are doing. they defied the asian sell off. they have sold off over the last few hours. the u.k. is down 0.8 and germany

down 0.8 and france down 0.4%. >> fed policy seems to be dominating trading action in the u.s. we're looking at futures pointing to a lower open. this after monday's markets are quite. as the month of june kicked off stocks did edge higher. the dow gaining 29 points in yesterday's trade but right now the dow with a lower open. the focus on deal activity. in fact downgrading intel after that acquisition. so keep an eye on u.s. premarket trade. switching focus to autos, congress is holding a hearing today on the takata air bag recall. the company says it will top producing it tied to a defect linked to 6 deaths. phil joins us on the phone. this seems to be the never ending story. >> right. they still have not determined

what the root cause is for those air bags that are defective. the question is what exactly is causing the defect. they are going to be working on phasing out one of the chemicals that has been used in a number of these air bags and the question is whether or not in high humidity locations that chemical over time can break down and the reaction is you have metal that can shoot out when they're deployed. this hearing will give congress and lawmakers an update on the recall but we're a long way from the story being finished. >> we aobviously got auto makers reporting their may u.s. sales number later today. they're expected to be strong with annual forecasts for the top 70 million for the second time in the last three months. what else can we expect? will they be as strong as people are expecting. >> early this morning --

[ inaudible ] >> there are vehicles being made in high demand. general motors has already been doing that curtailing some of the down time at one of its plants just outside st. louis missouri. it's that commentary that people will be particularly interested in because we know that the sales are strong. we know that the pricing on those vehicles is strong and the consumer clearly has an appetite to continue buying here in the united states. >> phil thank you very much. >> now switching focus to health care mylan is telling teva to stop playing games and either make its $40 billion approach into a formal offer or walk away. in a letter sent on monday the chairman accuses teva of interfering with the company's effort to buy the smaller rival. shareholders will vote later this year on the proposed $35 billion bid which has been

rejected by the drug maker. let's look at price action. trading at 6703 up about . 4%. >> pharma stocks out performed on monday. bristol myers lead the way after a combination of two of its drugs delayed the progression of the skin cancer melanoma. it was up nearly 3% in yesterday's trade. joining us is the fund manager. there's been quite a few test results out in this space recently. who is the main player these days? >> the main players in some of these new drug candidates are bris bristol myers, roche and merck. there's something important happening in cancer therapy right now. it's a stretch to say we've got

a cure but we have the potential of taking cancer from a disease that you die from to potentially something you can live with. that's an amazing leap forward. going into this meeting bristol was seen as the leader. they have already got one of these new drugs on the market and in some ways they had it to lose. the stock was down on friday. some of the competitors had data saying they western that far behind. >> do you think at some point we'll reach an inflection point? >> i don't think it's going to slow down. i think what you're seeing is big companies are trying to buy innovation so when you look at most of the advances in drug development it's coming from the bio technology sector. some stuff happening but i think they're going out to buy that innovation innovation. >> we've seen people invest wlg

corporate is spending it. >> drugs are extremely profitable. that seemed like a crazy deal. their drug for hepatitis c will do half a trillion dollars in sales this year and the operating margin effects from that is 50%. that turned out to be an expensive deal. some will end up in long-term value. >> as we look at the sector in general is it that trade off? you might get strong returns or the pretty boring dividend yield in big pharma stocks where returns will be lower. is that the general trade off? >> there's an element to that. but from a stock perspective there's a lot more volatility in the smaller companies.

that said some of the bigger bio tech companies they are large companies in themselves. these are hundred billion companies already. >> which area of medicine poses the biggest for pharma. the focus is changing to or shifting toward alzheimer's as well as cancer. >> oncology is some opportunity and there's drugs in development generating sales within five years. alzheimer's is a massive opportunity but it's still something of an uncracked nut. clearly it's one of those things that effects an aging population. there doesn't need to be a cure. you can just delay alzheimer's disease for five to ten years and you could probably save 4 or $500 billion a year. >> what are the valuations

looking like? >> people are wereorried but we're on a 40 year low in 2008 and 2009 with launch of health care reform in the united states. if we compare them to 25 or 30 yearlong term averages they seem pretty much in line. i think that we have gone back to a state of normality. the key is to stop picking stocks. you now have to workout who is a speedboat. >> your top speedboat? >> we like roche. >> thank you for joining us. much appreciated as ever. fund manager at polar capital. let's give you a run down of what else to watch this trading day in the u.s. factory orders are out at 10:00 a.m. eastern. demand for manufactured goods is expected to be flat following the biggest monthly increase in 8 months in march. the fed governor is speaking about the economy and monetary

policy. as for earnings look for results from medtronic, dollar general and cracker barrel. >> focus on greece seems to be a cause for concern when talking to traders in the u.s. and perhaps one of the reasons we're looking at stocks lower at least in premarket trade the dow indicating a lower open by 94 points. nasdaq down 28. we mentioned that downgrade of intel shares. keep an eye on the semi-conductor space. also want to draw your attention to what's happening in the oil complex. in fact we're look agent the diver divergen divergence at the highest level. wti crude up 1%. >> that's all we've got time for today on worldwide exchange. thank you so much for joining us. i'm wilfred frost. >> i'm seema mody. have a great day. we'll see you tomorrow. next up is squawk box.

good morning, european stocks are in the red and u.s. equity futures are selling off. new this morning, the head of the tsa is out after airport security agents fail 95% of breach tests. plus a tourist ship capsizing. more than 400 people are still missing. it's tuesday june 2nd 2015 and squawk box begins right now. >> live from new york where business never sleeps, this is squawk box.

>> good morning, everybody and welcome to squawk box here on cnpc. i'm becky quick with joe kernen and andrew ross sorkin. apple revolutionized the way people to listen to music in 2003 an now it's trying to change consumer habits once again. this time its targeting spotify and other services. we'll have details on apple's $10 a month service coming up later this hour. but first as joe mentioned european stocks are selling off right now. take a look at what's happening here. the dax is down by 1% t.cac is down by 0.6%. this came after data showed that euro zone inflation was higher than photograph in may. sit bleeding over to u.s. equity futures as well. you can see that right now the dow is down by more than