a warm welcome. this is worldwide exchange. >> here are your headlines if around the world. >> the euro rally comes to a halt after the sharpest jump in three months amid a slow down in germany and spain's services sectors. the german ten year increases it's march higher. >> athens demans a deal before paying the imf on friday. the prime minister is on his way to brussels for talks.

>> the price of oil back on the slide as opec officials gather. they say the refusal to cut production is a long-term strategy against the shale gas revolution. >> it's almost being the swing producer. it's going to be painful for many parts of the world. >> stocks in qatar lower after the fifa president sepp blatter finally quits a mid reports he is being investigated by u.s. authorities. >> we are just getting the euro zone may services pmi which has come in at 53.8. that's slightly better than forecast but slightly below the previous april reading of 54.1.

that's slightly better tan expected but slightly lower than the april number. the composite reading, 53.6. slightly higher than expected. 53.4 but slightly lower than april. the euro 11152. >> slightly encouraging jobless data out of italy. april unemployment rate falling from 12.6% in the month of march. youth unemployment also slipping to 40.9% in the month of april. it's important to note that the jobless rate has been at or around 13% for many months now and it's not just the number of italians unemployed but the household incomes have been drifting downwards as well and labor market reform has been at the fault of the policy.

but the jobless rate to 12.4% as encouraging euro holding on to 111 against the dollar. >> the euro now flat after notching up it's biggest gain in three months yesterday. european bond yields also carrying gains after peripheral debt rallied to a 2015 high. the german bund higher after it's biggest jump in three years yesterday. >> the moves were sparked by a surprise up stick in euro zone inflation. prices rising for the first time in six months in the month of may. the ecb's flight against deflation is working. good news for mario draghi today. athens is making progress with a deal on his creditors. >> let's bring in the fixed income strategist at ubs. particularly focussing on the

fundamentals that inflation is ticking up. does that make today's press conference even more spicy. >> could, couldn't it? it's clearly the case that things are moving in the right direction in the euro zone whether it's the underlying economic data or inflation but it brings with it fairly mixed implications for bond markets because qe has only recently begun and it's expected to go on for another 18 months. if there's any hint these improving inflation dynamics might slow the purchases down then the sell off could only be the beginning of it. >> the last time we saw these types of moves which manifest in the indicator being the german ten year going above 0.7% again we saw the ecb come out very quickly to say bond buying will continue. in fact it will continue at pace. we'll even bring some of it forward. can we expect him to echo the

same sentiments. >> i think so. there was a need for yields to go higher. the data is better but it's very early days. you know we still have this chronic situation with greece which seemingly goes from one deadline to the next without any sort of real solution coming into place. the data is a bit better but you have just been talking about youth unemployment in italy over 40%. clearly better but far from where we need to be. ecb needs to stick to its guns. they need to convince the market they'll stick to their guns and while rising yields are fine they need to be done in an orderly fashion. >> mario draghi made the case for the need for structural reforl. do you think that's something he will also come menment on in today's policy meeting? the need for structure reform by

each individual country to see economic growth perhaps the real answer here? >> for my prospect of monetary conditions being normalized at any point in the foreseeable future. what the ecb is doing now and what it's done over the past few years is to sure things up while more perm nltanent solutions are put in place. it takes the market pressure off governments. there's been a sell off that yields were still way below where they were when the market was in full control of dynamics. it takes pressure off governments to do the reforms. ecb will keep doing their part of the bargain and keep stressing they need to stop this and government versus the responsibility to get the structural process. >> i'm sure we'll hear mario draghi make those calls again. the likelihood of those reforms is more diminished. we've seen local elections in spain and italy which suggest the governments are losing

support. >> that's obviously about the same sorts of issues. the greek government put their heels in the ground for those sort of moves. they are being elected by we don't want to go down the path as necessary you end up with no long-term fix and it's a clear problem. >> is the economic reality facing europe more political. >> the central bank has done everything it can almost literally everything it can to ease conditions from that monetary side of things and it does come down to the fiscal dynamics and the will to integrate more closely if that's required to hold the euro together in the long-term. the politics is becoming the key in all of this. when you see governments being elected in the case of greece or

local governments for example which are there to fight against these greater physical discipline it's an increasing problem. >> let's talk more about the ecb policy meeting and what to expect. julia and annetta are joining us with the latest. ladies over to you. >> lots to discuss today. perhaps the statement we get from mario draghi less important than what happens in the q and a. a number of issues in inflation. bringing forward bond purchases against the liquidity we could see and take your pick. did i mention greece as well. how could i have forgotten greece. where should we go first. >> let's talk about the projections for inflation and growth growth. the oil price rebounded some

what but we will most likely see an upward revision in inflation and that brings us to the point and we're going to discuss an earlier end to qe as we're all expecting. that could lead to some movement on the markets but nobody really is expecting to deviate from the previous dance that we'll see qe at least until 2016 in september and growth. growth is a tricky issue. we could see it up or even downward depending on how much the oil price is actually factoring in right? >> we've been debating this versus the pick up we have seen in the oil price. we're going in either direction. what about greece though as well of course? what we want to hear from mario draghi if we do get a deal. what are the conditions attached to raising that t-bill ceiling imposed on the government and the banks have also got a ceiling on just how many they

can buy as well. so those two factors and friday what happened with the imf payment on friday. >> that's completely clear. i think we're going down the road of a cosmetic deal here right? if we really are going to see an extension of the bailout then the ecb could be allowed to issue them more loans while they're in the facility but the question of collateral is so tricky because we see deposits running away from greece and the collateral limit has been reached. >> just to see the raise yesterday. that one not expecting him to give us anything earth shattering on that point in particular. but guys communication as well going to be another one interesting. back to you for now. >> in depth analysis. thank you so much. >> i also want to thank our

guest to take us through what to expect from the ecb policy meeting as well as the looming greek default and what that means for today's meeting. thank you so much. >> let's have a look at what all of this means for markets. a bad end to european equities and a bad start for this week and we're just having a little bit of gains off the back of the losses. so we're up 0.2% here on the stoxx 600. let's look at the individual european markets and the ftse 100 is flat. germany leading the charge 0.5%. we had services pmi which was fractionally better than expected although slightly lower than april and france up 0.3%. let's look at bonds. huge action in the european bond market yesterday. of course the ten year german yield had been happy about 0.5, 0.6%. it spiked up to 0.7% yesterday. some people saying there's more

optimism over greece but this is fundamental economic data in the fact that inflation say little bit better over the last couple of weeks thus suggesting once again that maybe qe in europe will have to be reduced a little bit adding spice to mario draghi's press conference later. that sparked the move in the u.s. ten year. it's now 2.27%. similarly rational move in the euro yesterday spiking significantly well above 111. it's flat today as you can see hoovering between green and red but still 11151 back toward some of the highs that we have seen over the last few months. let's also just point out the aussie dollar. they kept rates on hold yesterday though their sentiment moving forward was still a little bit hawkish. saw the aussie dollar rally hard yesterday. let's look at the oil price as

well. the last month or so they have sustained that rally we saw in march or april but what will opec do over the next couple of days? all united nations the oil price. wti soft this morning. 60.7. brent also a little bit soft off half a percent. 65.1. let's get out to have insri for an update in asian markets. >> good to see you. i wanted to pick up about the point on the oil price. we could be in for a second leg lower on the price of oil. that will be beneficial. a lot are net importers. that's going to be detrimental. a lot of people here are policy makers at central banks talking about we have seen the price of oil rebound off the lows and are now higher. of course there's going to be a follow through into the inflationary impulses. that's certainly the case in indonesia and also the case that

we're seeing a higher rate of food inflation and that is spooking the market and those are down by 1.5%. broadly we are negative out here because of the stumble we saw overnight. also the back up if bond yields in either side of the atlantic so that soured sentiment broadly. very choppy day once again at the shanghai composite. we were down by more than 1%. we bounce aufd the lows. i do want to highlight that. it's been quite negative because there's a lot of ipo issuance. we're seeing more visibility and more progress of interest rate liberalization so there's a fear here here. hang seng is the case and point. >> particularly interesting to see that underperformance for

the second day in a row. thank you so much. coming up on worldwide exchange we're joined live from the wef forum as some of the world's leading business leaders ponder the challenges facing the african continent. why the people of japan suddenly have less to fear from a long time feaaux and we're asking you which piece of office technology would you like to most delete. we have ours. stay with us.

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saudi arabia's oil minister said the long-term energy outlook is very positive. his comments come ahead of a closely watched opec meeting six months after the organization surprised some by leaving production levels unchanged. for the latest on what to expect at this opec meeting let's get out to steve who is live in vienna. >> i know you have been covering the fifa blatter story. it's halftime and 1-1 at the moment. saudi scored the first goal back

in november as you mentioned by leaving production levels unchanged with opec. a bit of a surprised. they tried to get the shell guys out of business but sell came back and lowered it's production cost. 1-1 now. the meeting for the actual decision is friday. ahead of that the seminar happens fairly freakily as well. and rex was in there as well. you have all the big international companies and opec trying to workout the big trends and he looks very positive. that's what the debate is all about. speaking to bob dudley the world gas conference he was pointing out it will be more about emp and gas than oil as

well. i wanted to get his take of what's going on. we spoke for a good half an hour. in terms of opec i asked him the question do you think it's defunked? is it as effective as it used to be? >> the different parts of opec in terms of the prosperity of the different countries, some are bound and determined to stay on path if they can afford more so there's probably lots of debate going on inside of opec. i think they have a path. i think it's based on fundamental economic principles. so i would expect them to stay on course. >> i see 12 producers who all want to produce if the saudis fail to produce. everybody says we want saudi and nigeria. no one else wants to do it apart

as well. they want saudi to do all the heavy lifting. i don't know if you agree. >> there's a history of that if you look back in type. there's a little bit of that and the expectation for saudi arabia produces such a big block of the oil. 9 or 10 million barrels a day and the uea in particular. they probably get up in the 40% of opec and the prosperity is great in those countries so you probably do have those tensions between the nations. >> do you think it will ever be again? >> i think there's a history of discipline overtime. it will remain there. i'm not an expert on opec. >> but if we could take out the security implications from iraq and iran as well they have 300 billion barrels between them which is more than saudi. i can't see them being

disciplined in terms of supply given the tun. >> i think the philosophy has been to when the price is is high many alternative sources such as the shale oils in the united states come out so i think we're heading toward a more rational oil market here for sometime. that's not bad. we think the price of oil will be lower for l and gas industry had a rate of return for those investments. at $100 barrel it buzz about the same. cost structures discipline taxization systems around the world are far out of balance where they are and the oil industry has been rather well-known for the last half a decade or decade of generating lots of operating cash flow. putting it back in big projects. overspending, being late. shareholders say what's the point of that. this is going to drive in a new set of discipline.

>> but i can't see iran backing down from this one in the month of july as well i see them going full tilt. bob, this is where it's at. >> we've had no discussions on it. this will take some time. they can relatively easy bring back production. it's probably a negative price signal for the markets when this thing is done. they'll undoubtedly be very very stringent verification requirements. i don't expect it to change immediately but the sentiment will change which is why we're in the lower for longer feeling in terms of projecting oil prices. >> it's very interesting what the ceo had to say there about iran as well and despite the pact that you heard the prices

we heard from ihs on squawk box and bob dudly there saying the iran issue to come to the fore if it's on the market. there's concern we had a new rally. it can come down aggressively if iran gets their nuclear deal and no one cuts back. the russians are in there as well. a lot of oil still on the table. >> what do you make of the comments and developments of the shale market in the u.s.? the revolution that the bpco was just talking about. does that mean in future the u.s. can ignore these opec meetings all together and they'll be in control of their own destiny? >> absolutely not. we have a lot of north american viewers and i wrote about this on the web. it's still there from yesterday about how american energy independence is an absolute pipe dream. it really is. you may in the strictest terms

get north american energy canada plus the united states equally supply and demand. look at the panic that the world is seeing that u.s. stocks see on a regular basis when they see a tiny little country like greece has a problem. what about an oil shock globally as well? the u.s. is not completely divorced from the world oil story. huge trading partners with china, with india, with europe and japan and all of those are still going to be dependent on russian oil and gas. on oil and gas from qatar, from saudi and the other countries as well. the u.s. may think in the strictest terms it may be energy independent and it can ignore but it can't. it's part of a world system. that is a fact. >> thank you very much. just to confirm to you how the internet works that article is

still there for those people that missed it on yesterday's post on cnbc.com. well worth a read. >> moving on senior goldman sachs executives are taking a victory lap. at an investor conference on tuesday they say the bank's results show they have been right all along about the heavy business model. it was the best quarterly profit as the banks capitalized on market volatility. sticking with the banks, jp morgan is cutting the cord on voice mail. the consumer banking chief said the bank is eliminating voice mail in an effort to cut costs. each line costs about $10 a month andcnbc the unit will save more than $3 million a year. a spokesperson says about two-thirds of consumer banking employees have opted to cancel their voice mail services. so this got us thinking. >> indeed. we want to hear from you on this. which piece of office tech would

you most like to get rid of. i love getting rid of voice mail. this is fantastic. voice mail for administrative reasons. if you're left to perhaps you can make this time for a meeting, just send an e-mail. someone will pick it up and you'll have your diary along side you. voice mail is time consuming and i didn't even know it cost that much money. >> who leaves voice mails these days? sorry to interrupt you. who leaves voice mails? it's typically texts now. >> they are mainly from my mother. i still welcome those. but it's the administrative one which is are really pointless. but i didn't know voice mail was costly to companies. i assumed it was a free service. >> maybe my market shift and perhaps other corporations. other technologies i would say the usb devices. they're small and easy to lose. you leave them in the bottom of

your purse and i also think external batteries are so large and sat some point we need to find a way to make phones have 24 hour battery life and not have to worry about what calls you can make based on how much battery you have left. >> get in touch with us worldwide at cnbc.com or or @cnbcwex. just before we head to break we want to give you a flash coming out of the fifa story. interpoll issued red notices for former fifa executives wanted by u.s. authorities. this story rumbles on and indeed more red cards being issued. now shares in qatar called by early losses after sepp blatter's surprise resignation but could the 2022 world cup be in doubt? we'll bring you the latest on

the fifa scandal after the break. ♪ ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck.

>> the euro rally comes to a halt after the sharpest jump yesterday. the german ten year continues it's march higher. >> greece weighing on investor senment. athens reiterates demands for a deal before paying the imf on friday. the prime minister meanwhile is on his way to brussels for more talks.

>> the price of oil back on the slide as opec ministers gather in vienna. bob dudley tells cnbc the refusal to cut production is a long-term strategy against the shale gas revolution. >> it's brought the united states to almost being the swing producer. going to be very painful for many parts of the world. >> stocks trade lower amid it's role as 2022 world cup host. this after the fifa president sepp blatter quits amid reports he is being investigated by u.s. authorities. >> sterling is falling on the back of u.k. services pmi data that has come out at 56.5 it's also the previous number. 56.5 versus 59.5.

the services sector very important in the u.k. economy representing some 65 to 70% of gdp. we're looking at sterling weakening by almost half a per percent. >> take a look at what's happening out of the oecd. lowering it's economic growth and inflation forecast for japan as consumer spending weakened more than expected after an increase in nationwide sales tax. that's seen as one of the negative impacts on japan's economy. the oecd lowering japan's gdp forecast as well as inflation forecast because of the sales tax hike hang over. we'll keep you up to date on how markets are reacting. a quick look at how we're trading on this wednesday. we did get the services pmi number coming in lower than expected. in addition to that equities reacting too. the ftse 100 holding on to the flat line. the xetra dax higher.

>> quite a few flashes coming out of the oecd. they cut growth for the u.s. to 2% versus 3.1%. a big cut there by the oecd on u.s. gdp growth for 2015 and for 2016 they have cut the forecast from 3% to 2.8%. they called the economic recovery unusually weak and barely passing the grade of the minus. let's also have a look at what they have been saying about china. 6.8% in 2015 and 6.7 in 2016. so cuts for growth are coming all over the place out of the oecd conference taking place in paris at the moment. let's have a quick look at what bond markets are doing.

moves particularly in germany where we saw the bund yield rise 0.7% particularly off the back of inflation data which surprised to the upside of course adding the importance to mario draghi's press conference today. what will he say about the pace of european bond buying giving this slightly elevated inflation in europe. >> the euro moved yesterday. significantly elevated. >> oil is retreating from a sharp rally on tuesday that saw crude hit it's highest level in a year. prices were boosted and another decline on supplies. this ahead of a closely watched meeting in vienna six months after they surprised. some analysts raised the

possibility this time around. joining us to discuss further is is charles. good morning, now to consensus is opec does nothing. would that be a big mistake if that was the case? >> it will be a mistake but we shouldn't be surprised. we should probably continue the fifa anlage here and this is the original dysfunctioning self-serving organization. this is one vote per man. very similar to what we see in fifa but they need unanimity to make any change in direction. so it may be quite evident that tensions in the middle east are higher than they have ever been. even saudi's cooperative partners are having quite a difficult tussle with saudis at the moment and we have

significant potential with more iranian production in the start of next year we think. >> is that priced in this time around? that opec doesn't cut production. do we see the oil price react? >> it's priced into the equities. there's a rebound potential within the oil equities. within the oil price the fundamentals are leading. i don't think there's too much concern. the oil market tends to be smarter i feel than the equity market. it realizes the saudis are producing at the maximum potential. the saudis have no spare capacity. don't believe what the iea tells you. they cannot produce at above 10.25 million barrels a day on a consistent basis. this is the first down cycle with no spare capacity. it's quite different from others and therefore the market is a lot tighter.

>> would you say that it is effectively saudi arabia's decisions to cut or not to cut or has fracking which has transformed the industry influenced or lessened saudi arabia arabia's influence. >> the production at target levels now. we did away with growth a long time ago because opec could not agree but i do think saudi is the leading force and is the only country that has had any intention to cut production. there is no discipline within opec. the only guys that had any discipline were the saudis and they walked away from the policy and it's a little too premature to expect them to change that policy now. they want to. they're shocked on the impact it had on the oil price. it's very very difficult for them to continue you know? they're burning through $10

billion a month at the moment with the yemen activity going on. $10 billion deficit coming out of their funds. they need to get the oil price back. so do the russians. we have a significance imperative that the oil price has to come back by the end of the year. it's too early at the moment and i don't think that they can bring everyone along with them. >> what are the best ways to play this given the dynamics? >> i think the oil level emp, the expiration in production stocks are the biggest beneficiary of this. they have underperformed recently running into this. it is really insulating the shale potential and some have been completely overstated. we believe with steve that really this whole ambition of

energy independence is a complete pipe dream. we're seeing the sweet spots being drilled up pretty quickly. the technology is always improving and we do need that shale to come back. we need 400 more rigs to come back on to the market. the rig count has come off very significant significantly. we're starting to see north america has reached the decline and in 2016 we have a very significant problem trying to build production in 2016 on 2015 so you need to get rig count back and i don't think many people disagree with that. it's the level of oil price that brings that rig count back that's a major discrepancy within people's viewpoints. >> so you won't see opec cut but supply remains much tighter than

people realize. >> supply is so much tighter than people realize and by the end of this year we'll have very very significant draws. we'll have a very tight market. people forget the second half of the year the demand picks up. you have the driving season followed by the winter fuel season. you have 1.5 million barrels of incremental demand in the second half of the year. we can't see where the supply comes from to meet that. tsa all going to go in decline. >> thank you for joining us as ever. much appreciated. portfolio manager at investec. in the last 20 minutes interpol issued red notices for former fifa officials and executives wanded by the authorities. the qatar stock exchange paired some losses after following sharply after the resignation of sepp blatter yesterday.

it's come under scrutiny for bribery charges charged against multiple fifa officials. blatter is stepping down days after being reelected for a 5th term. they say u.s. authorities are continuing to look into whether blatter himself engaged in wrong doing. speaking at a press conference blatter said fifa is in need of deep structural change. he welcomes the opportunities for reforms. >> since i will not be standing of course i am now free from the constraints of an election. i will be in a position to focus on implementing ambitious and profound reforms that go beyond our earlier everiesfforts. >> i want to recount what a massive surprise this was. he has been unbelievably committed to his position before and after the election and close

to an hour or two before he stood down this press conference was called out of the blue. it's a massive development. people pondering why he changed heart and whether he's brought into the investigations and that may be the case but this is a huge development and called into question whether people will reopen the bid for 2018 and 2022 world cups. >> who takes his place? >> already prince ali has thrown his hat into the ring again. >> after already throwing his name out of the race last week. >> but the big difference now is blatter is gone and that changes the plague field for the next elections. we're expecting them between december and march. he is the favorite because he has thrown his hat into the ring but there's a lot to happen given the fact that prince ali has a lot of backing from

european members and if he comes forward and stays in the race that could change who is the favorite. >> we're trying to get more clarity as to whether blatter is also being investigated for corruption charges. >> it will take a few months to get to the election. >> you'd think they'd want to have that election as soon as possible especially if they want to rebrand the organization and let go of the fears of a corruption. >> but we heard from the head of compliance yesterday and he was saying it takes at least four months to call finance ar extraordinary congress which would then need to call for fresh elections which is why he said likely to be december. earliest possibility would be september. >> i'm sure sponsors will welcome that change when it does come. >> indeed. now we're going to stick with soccer but on a different note. it's a rare occasion to say the least to see the u.s. flag and hear the u.s. national anthem in

communist cuba but the new york cosmos defeated the cuban soccer team 4-1. the cosmos became the first u.s. professional sports team to visit cuba since president obama and castro restored diplomatic relations in december. >> brazil may be heading toward the worst recession in half a century but the country's central bank is likely to unleash it's 5th straight rate hike later today. find out why after this break. don't go away.

welcome back. a flash coming out on greece. the euro group president will take part in talks in brussels on wednesday. that's coming from a euro zone official. both sides posturing over the night saying they made their own proposals in writing although it's not clear whether those proposals have been discussed by the opposite side yet. debate developing and moving to paper rather than in words over the last 24 hours. so he'll meet in bronchusel today. now the chinese cruise ship which sank was reportedly held for safety reasons in 2013

according to a document seen by the dow jones news agency. the revelation came as a rescue operation is continuing although hopes are now fading of finding many more survivors. we'll be live at the scene of the incident within the next hour with eunice with all the latest of one of the deadliest transport accidents in china. >> the brazilian central bank is expected to raise rates for the fifth time today. analysts are forecasting a 50 basis point hike which would take them to a six year high. that's well above levels in the rest of the world as the bank continues to tackle rising inflation. nancy joins us around the desk to discuss brazil's financial fate and of course the economic me tricks continue to get worse and worse. i was particularly caught off guard by the industrial production number. down 7.5%. you do not see that in such a large emerging market. zuz a rise in interest rates help or hurt the future going

forward? >> it's a shocking situation as you mentioned. also we saw gdp contract for the first quarter. the country is set to see it's worst recession in about 25 years so the economy growth is very weak to say the least and finally we're seeing some concern that the central bank may be going too far ahead with these cuts. they want to get back to 13.75%. you're looking at inflation above 8%. but some voices are saying let's be careful. we don't want to throw something that's not a recovery off track good morning to you. thank you for joining us. what do you think is the focus?

inflation or the rest of the economy? >> inflation but also the currency that's been weak and still a lot of pressure. i think the brazilian authorities believe that they can, by tightening and keeping interest rates high that they can create a positive shock to the economy. it's quite a risky strategy because it's not easy to work like that because the pressure is on from deteriorating in terms of trade from capital outflows. necessary deleveraging after years of credit growth. it's difficult to stabilize at this point. >> won on the prospect of better days ahead but the finance minister has introduced measures to plug a hole in brazil's physical accounts. when do we see that actually working? >> he has done more probably than most people expected but it's probably not going to be enough. the economy is so weak that your

physical revenues are falling rapidly. they probably have to do more but they have been cutting in social expenditure. too much money on social things that are not really that important. so brazil probably needs to do more but it's very difficult for them to do more. >> you mentioned improvement we've seen. there's been a lot of reports that they're at odds. how confident are you that the government can push forward reform if there's a split within their own ranks? >> the problem for the government is to move forward in the same moment when unemployment is rising. that makes it difficult to go together on tightening more. i think they probably want to do more but it's very difficult to

achieve. so you never really know how it is. in brazil there's a lot of speculation about the government but we do know that this environment is a very difficult one to cut expenditure more simply because unemployment is rising. >> i want to broaden the discussion out a little bit and talk about em markets in general. what's your take on what growth is like overall? is it picking up enough that we have seeing slower growth in developing markets? will emerging markets be able to command it. >> not at all. it has been weak for several years but in the last few months it's actually been further. so it's not moving now for a few months and it was already at a low, low level. the problem is that global trade is not recovering and china is still slowing. that's capital outflows from most countries policy concerns

and political risk in some countries and we thought in the course of this year we would see the bottom in the emerging markets growth but i now feel that might actually come early next year at the earliest. that has been really very disappointing. >> i just wonder, though, are we too harsh on emerging markets because countries like china and india are seeing growth of better than 7% yet the indian stock market continues to sell off. in china a mega rally but it's been cooling down a bit. but what do you think, consensus is that it's too harsh when it comes to the growth story when looking at emerging markets. >> these are the countries that are still broinggrowing the fastest but china is slowing. the target is 7% but if you look at the momentum of growth in the first quarter of the year it's already below 6%. so i think china is growing less

than many people think. and it's very difficult to see recovery in the short-term and for india, i mean india is a country where growth is probably going to be better than china in the coming years but expectation expectations from india have probably been too high. so there you see a bit of underperformance compared to expectations but india growth is fine. >> we'll leave it there. senior multiasset strategist. our thanks to nancy as well. it's just so interesting we're about to hit the halfway mark in terms of the year for 2015. i still remember earlier this year the hope was that it would be the u. s. economy. that would be the best house in a bad neighborhood. this was the year the economy would fire on all cylinders but we're almost halfway through and the story is really changing where the u.s. could potentially see growth of less than 2% in 2015. it's countries like india and china expected to see growth of better than 7%. >> indeed but i think the

absolute number of growth between those type of countries isn't really the important thing. it's the momentum which is sentiment is spot on for the u.s. much weaker data over the last few quarters. india the momentum is positive. china it's very negative. definitely would say that despite the absolute number clearly being higher than the u.s. i still think, i have to say with the u.s. despite the negative data i think we see the first rate rise sooner than later. not june now probably but by september and i think it will be a small one obviously and i still think we'll see that. they need to test the waters with how the market reacts to that rather than have to raise rates too quickly. >> i'm more of a dove when it comes to this fed policy debate. lackluster retail sales, slower job gains, tsa going to result in the feds having to push back the rate hike to perhaps december or 2016 because you can't -- i don't think at this point, the u.s. economy many say

cannot endure a rate hike. >> we'll see. we'll have to wait and see. >> the dove and hawks continue. let's talk about japan. japan finally reached an accord with one of its largest nemesis of the past 50 years. we're talking about they granted official residency papers to godzilla. the monster known for more of destruction of cities than diplomatic skills was named a tourism ambassador earlier this year. i hope you have no nightmares tonight. >> we'll see. still to come opec leaders gather in vienna and we ask what is driving america's obsession with oil independence. stay tuned with us on worldwide exchange.

here are your headlines from around the world. >> is it euro rally comes to a halt after the sharpest jump in three months as a deal for greece still hangs in the balance. u.s. and german bond yields continue their move higher. >> it has brought the united states to almost being the swing producer. it's going to be very painful

for many parts of the world. >> interpol issued red notices for two top names in south american soccer. this as stocks trade lower. >> a new era for surveillance. president obama signs a bill eliminating the bulk collection of america's phone records. now u.s. intelligence agencies will have to get a request for records. >> welcome to the show. what an extraordinary move we saw yesterday once again in bond yields. sparked a big move in the euro also and it really stemmed just from a simple inflation number. euro zone inflation at 0.3% was higher than expected. only of course fractionally in positive territory. that saw big moves in the german bund yield but also that this

wasn't a greece issue and ahead of the ecb meeting today that people do consider a possibility that european qe could end a little sooner than expected. >> that's a big concern given the inflationary effect wearing off. will they scale back before september of 2016 and at this ecb meeting mario draghi more likely to focus on greece and that's a lingering issue more so than the fate of the economic recovery in the euro zone. at this point things are going well. >> i actually disagree with that. i think he'll focus much more because of the moves yesterday. he'll have to focus much more on underlining that he's still committed to the moves. we heard from the member a few weeks ago when he said if people started wondering whether this program would be stopped earlier now we have the german ten year above 0.7. i think that will be the focus

and of course he always stays out of politics but we'll see what he says later. >> that meeting coming up shortly. in the meantime take a look at u.s. futures on this wednesday morning and what we can expect. u.s. stocks slightly higher yesterday. we did see the blowout auto sales number coming in much higher than expected. that was suggesting that we will see the economic recovery in the second half of 2015. the dow right now indicating a higher open up 20 points. the tech heavy nasdaq up 2. the s&p 500 up about three points. european markets of course against some better than expected data is fuelling investor sentiments here but it's the overhang the lingering fears as to whether we'll get a deal by friday. that's the big concern. the imf payment due by friday. a lot of factors being put into place when looking at the greek situation. let's take a look at the greek equity index. you can see it's higher by

around 3%. the cac 40 down about 2 and the xetra dax holding on to gains of 34 points in today's trade. a quick check on the u.k. index. ftse 100 just below 7,000. a key level down about 4 points. keep in mind that services number nothing to write home about. definitely worse than expected. >> much worse than expected. your services pmi very important for the u.k. that saw sterling sell off. it's only just below flat today. it follows a massive rally yesterday as you can see we're comfortably in the 111 range. we're above 1115 earlier. we're now at 1113. big moves yesterday in the euro dollar which of course came along side big moves in the european bond market. let's now look at that bond market and in particular draw

focus to the german ten year. just above 0.7% at the moment. it was down by 0.5 and 0.6% but that move upwards yesterday a bond sell off sparked by slightly stronger than expected inflation data. once again adding spice to mario draghi's press conference later today. because inflation is just about coming back into europe. will he be tempted to slow down the pace of europe's bond buying program? people not expecting that but moves in bond markets will certainly draw attention to what he says. now the ten year in the u.s. of course highly correlated. let's check in on markets in asia. sri standing by. sri. >> negative is where we stand at the end of the trading day this thursday. we saw wall street stumble overnight and bond yields back up on either side of the atlantic and you have been talking about that. i wanted to highlight the rank

underperformer today. that's down by 1.6%. food price inflation. that picked up in may. so that rattled the market and it could get worse if we see a severe el nino weather system. on top of that markets have to con ten with fed normalization of course. depreciation in the currencies and rebound in the price of oil off the lows by more than 30%. watch those themes and watch the impact it could have on headline inflation in the medium term. we'll talk about china because we closed on the flat line not too far away from an important can-a level. it wasn't after a day of volatility however we did see a session low of more than 1%. that was driven by the banks because we're seeing some progress on interest rates. some concerns about the impact on the banks margins. a slew of ipos on the

short-term. that's where we stand. back to you. >> we also have economic data here in europe. positive data in fact out of the euro zone in the last few minutes. let's get them to you. euro zone unemployment hit the lowest level since march of 2012. in addition to that retail sales have shown the fastest growth since january of 2014. keep in mind pmi data suggested hiring has touched a four year high. this after inflation data yesterday showing prices in the block rose for the first time in six months in may. this is all good news for mario draghi who is set to face the press later. what can we expect from the ecb president? let's get out to julia and annetta for a preview of that meeting in frankfurt. >> thank you so much seema. a number of things will be questioned be it greece, be it the inflation stats. i want to pick up on the market moves. i would argue that perhaps the

bond moves we're seeing about the inflationary trade but we also saw a back up in u.s. yields on monday and tuesday as well. it's following the u.s. in that sense and the dollar index weaker yesterday too so that's supportive of a euro higher move. but let's pick up on the inflation point and germany in particular i think. >> coming back to the point what can we expect from that meeting, we get an update on projections about inflation and gdp growth and i think people will look at that very carefully because it might actually mean that we have an early indication of how long it will last and if there's any, only the slightest indication that it might actually end before that date you might see severe movement in the euro dollar rate again but as i said before the likelihood is not very big here. >> absolutely.

they have been keen to say we're here for the long run. hopes for a deal here. the creditors seem to have agree agreed on what they're going to talk to the greex about. but the gap still feels huge here. what can we expect? the first thing would be what happens if they don't make that payment on friday to the imf. >> yeah. that's a good question. the first k won't be a big reaction. it still means that the greeks on are to that extended program whether they actually fulfill it or not. i think what we might hear perhaps from the ecb again is that if we see some more willingness from the greek side to move they actually could lift that t bill limitation right? >> absolutely. still seems to be a lot of politicking going on on the greek side. their own proposal. goodness knows how they manage to agree.

interesting to hear what we hear from draghi and communication. bond yields inflation, communication and greece. just a few things on the agenda today guys. we'll hand back to you. >> should only take about 5 minutes for mario draghi to get through those points. thank you for giving us the break down. now a run down of what to watch this trading day. the may adp report is out. hiring is expected to have bounced back last month following a disappointing april. also out today keep in mind this is one to watch. april trade deficit numbers. the may ism services index and the latest beige book report. chicago fed president charles evans and james bullard are also speaking today. brown-forman which makes jack daniels and southern comfort reports earnings before the opening bell. >> let's look at today's other top stories. president obama signed into law legislation that reforms surveillance laws that expired sunday night.

the law eliminates the nsa's bulk collection of american's phone records. now u.s. intelligence agencies will have to get a request for reports approved by the secret foreign intelligence surveillance court. >> google is holding it's annual shareholders meeting today. the firm is recommending investors to with hold votes from three directors in protest of grants given to certain executors including the chairman. the directors are on the compensation committee. at issue is the $100 million in restricted stock given to him last year. iss says they failed to tie the grant to job performance. to keep an eye on what happens today. taking a look at price action. you can see down about three quarters of a percent in frankfurt. >> now saudi arabia's oil minister says the long-term energy outlook is quote, very positive. his comments come ahead of a closely watched opec meeting in

vienna six months after some were surprised by leaving production levels unchanged. let's get out to steve with the latest on what to expect. >> i'm very lucky. i just grabbed one of my favorite oil industry executives who is bigger than me. he's an exrugby player. really nice to see you. >> good morning. >> what can you learn from coming to this kind of event at this kind of moment in time. >> you know coming to the opec summit is a tradition first. it's a summit where most of the ministers are there. ceos are there. it's always good to make friends with people in the industry and see what is a global trend for the industry. >> the global trends for the last year exactly have been higher volatility. do you expect more of that volatility volatility? you didn't expect it to rally any time soon. >> the volatility is imbedded in the market. for the time being for the oil

market they try to react where that itself where the new price is. the costs will go down but it takes time. so in u.s. for example the system has been very reactive. the riggs have been demobilized. it will have an impact on the supplies of u.s. shale oil and shale gas but not immediately because you still have a lot of investment. you produce. >> what do you think about the u.s. response? we talked a lot about football and fifa and blatter. the u.s. have got a goal back because they got their price down as well. how does this game go? >> i think it will go with volatility but if the supply is control which could have been then you will have an impact not only in the price and then of course the system could react as

well but more producers will come and invest. so this is also an impact down the price. the price of oil is not only a question of supply and demand but it's also a question of geopolitics and when you see the situation today in the middle east compared to last year there's quite a lot of turmoil. >> one more question if i may, i see it here as well. do you think they'll continue that term regardless of what is happening. >> it's not an easy matter. we have a very big step in front of us and we have an impact on the markets. >> and i spoke to bob dudly. he's not talking yet. are you? >> of course. like i'm meeting the other ministers. we are in the oil business and

oil and dpas is wheregas is where it is. >> i have already taken up too much of your time. nice to see you, sir. thank you for joining us. let me hand it back to you guys in the studio. >> steve thank you so much for that. >> and coming up later on the show nissan's ceo will be guest hosting squawk box in the u.s.ghosn has been pushing to gather more market share in the u.s. you won't want to hismiss it. worldwide exchange is back in two minutes. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare

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a greek debt deal hangs in the balance. interpol issues red notices for two top fifa officials. >> and president obama signed a bill eliminating bulk collections of american's phone records. >> now let's talk about fifa. interpol issued red notices for former fifa officials and executives wanted by the u.s. authorities. they're for jack warner and nicholas. both leading names in south american soccer. >> meanwhile, the q ark tar

stock exchange has fallen sharply at the open following the residence ignition of sepp blatter. it's come under scrutiny of bribery charges filed. he is accepting down days after being reelected for a fifth term. sources familiar say u.s. authorities are continuing to look into whether blatter himself engaged in wrong doing. speaking at a conference blatter said fifa is in need of deep structural change and added we welcome the opportunity for reforms. >> since i will not be standing of course i am now free from the constraints of an election. i will be in a position to focus on implementing ambitious and profound reforms that go beyond our earlier efforts. >> so that's the latest of course. he has stood down which was a huge surprise yesterday.

he is still acting president because it takes about four months to call an extraordinary congress for fifa and elections will follow. the latest estimate around december to february but also of course pointing to other reforms needing to take place. this is just the start of the process. a big start but just the start. also interesting to mention what some of the sponsors said over the last 24 hours. we welcome fifa's commitment to change. coca-cola saying they need to see fifa transform itself into a 21st century structure and institution and mcdonald's saying this hopefully will be a big first step to positively reforming it. >> do you think given the uncertainty on who will be the next president of fifa that we could see some sponsors pull out? >> i don't think we see that yet. in one sense we don know what goes on behind the scenes but the sponsors seem very reactionary. they made statements once charges have been made and

threats to pull out and now they're reacting to his removal rather than forcing it. i don't think that's an issue in the short-term. the bigger short-term issue which is getting attention and moving markets is what might happen now to the 2018 and 2022 world cup. if we get convictions around those particular issues and if we have change at the top then that does open the possibility of whether those countries have to reexplore their bids and of course the qatar stock exchange is now down about 1.5% off the back of the story. >> a lot of questions need more answers. it's a rare occasion to say the least to see the u.s. flag and hear the u.s. national anthem in communist cuba. but both occurred as the cosmos defeated the soccer team to promote good will again the united states and cue bachlt they were the first professional sports team to visit cuba since obama and castro agreed to

restore diplomatic relations in december. >> still to come on the show stay tuned as we bring you up to date on the rescue operation from the chinese ferry disaster. worldwide exchange will be back in a couple of minutes. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage. make the most of summer... with volvo.

>> a rescue operation is continuing in china but hopes

are fading on finding more survivors. the death toll was raised to 18 although hundreds remain unaccounted for. let's get out to eunice with the latest on that story. >> thanks so much seema. the latest is that there are now 19 confirmed dead but there are still more than 400 people still missing after this ferry sank in the yangtze river right behind me. i'm standing at the rescue and relief operation. there's thousands here to assist in the efforts. the rescuers have been battling very difficult conditions the entire day. ranging from heavy rains, cloud cover, as well as divers fighting in very fast currents

and americamurky waters. also we saw families starting to come. relatives that were mourning the feared loss of their loved ones. some of the families of the crew were brought here as well. the discussion is still about rescue and relief. it hasn't switched into a recovery effort however there has been much more discussion now about what to do with the ferry, whether or not the authorities need to raise it or split it in half in order to search for more people. >> thank you for that. coming up on worldwide exchange out going executive joins us live from cape town as some of the world's leading business leaders ponder the challenges facing the african continent. >> take a look at u.s. futures suggesting a positive open. all eyes on the auto sales

number coming in higher than expected yesterday. we'll see if that fuels positive sentiment across wall street. a higher open by 23 points in premarket trade. we're back in two minutes. heroes charge! ♪ ♪ (lightning strike) ♪ (kiss) ♪ lead your heroes in the hit mobile game download heroes charge now!

>> all right. 30 minutes to go until we hit 6:00 a.m. on the east coast.

>> here are are your headlines from around the world. >> the euro rally comes to a halt after the sharpest jump in three months after a deal for greece still hangs in the balance. u.s. and german bond yields continue higher. >> opec ministers gather in vienna. the oil cartel's refusal to cut production is a long-term strategy against the shale gas revolution. >> it brought the united states now to almost being the swing producer. it's going to be very painful for many parts of the world. >> and shareholder show down at google. proxy adviser firm iss is recommending investors with hold votes from three directors as protest mega grant to directors. >> new era for surveillance. president obama signs a bill eliminating the bulk collection of phone records. now they'll have to get a

request for data. it's only wednesday but market participants seem to be focused on the friday jobs report after a series of strong and weak and in line reports. traders hoping for some type of clarity on the help of the labor market in the u.s. here on wednesday premarket trade suggesting a higher open. the dow is up 24 points. nasdaq with a higher open by 3. s&p by 2. european markets, that ecb policy meeting coming up later today and ahead of that meeting some positive reads on the economy. let's just break some of the big data points. euro zone unemployment hitting it's lowest level since march of 2012. retail sales also coming in much higher than expected. this after inflation numbers yesterday indicated that the euro zone is slowly getting out of deflation. so some positive reads on the economy but then that's also raising the fears that the ecb could scale back on monetary

support before september of 2016. that is something that we hope the ecb president mario draghi will address in today's meeting. in addition to that there's also the lingering greek fears that continue to weigh on investor sentiment. one reason we're seeing a flip flop in trade in term of european equities. still holding on to 51 points. ftse 100 is down today. but we should point out the services number that came out today much lower than expected. that's one of the reasons you're looking at the sterling pound trade lower and equities slightly lower in today's trade. a quick look at france the cac 40 down about 2 points and athens, the greek equity index up 3%. there's optimism building that perhaps a deal will come through between greek leaders and european policy makers. >> thanks. now according to the african development bank they grew at an average of 3.9% last year

however as the world economic forum prepares to gather in south africa many experts believe that level of growth has to pick up. let's get out to cnbc africa from cape town. >> thanks very much. with me is the ceo of europe middle east, africa and the americas for standard charter. thank you for your time. >> thank you. >> fifa is gripping the world now and the corruption scandal. we have to go right there and standard charter has been named among other banks as facile at a facilitating the corrupt payments. the question is whether it will damage you with the public.

>> we're looking into this and cooperating fully. we are cooperating with authorities and that's really our response to this. >> they came out with a report for 2014 and of the top economies in the world, that suffer corruption the top ten, five of them are in africa. when know when investors invest in a destination they want to put their money there and get a return and get it out quickly. what's your thoughts on corruption across the continent as a whole. >> you started mentions fifa and i would say it's not an african issue. it's a global issue. i'd like to look at it as a glass half full versus half empty. if you look at africa over the past decade you'll agree that the levels of governance and

transparency have improved. you node to look at the number of democratic transitions of government and peaceful transitions of power that can happen. the most recent shining example being nigeria. the people of africa, the young people of africa have the same aspirations of elsewhere in the world and they'll rebel against corruption. the biggest forces will come from the people and the citizens of africa themselves besides the fact that globally i think corruption is a dying industry. >> investors have choice that's the reality and africa competes with india, with china, with brazil. do you think that the africa growth story is waning or can we hold a rightful position when it comes to attracting our share of foreign direct investment? >> it is a competitive world. two things one is look at africa's track record and number two is look at opportunity. on track record foreign investors over the last couple of decades have made better return on their investments in

africa than on any other continent and look at the opportunity, demographics of course but in terms of the consumer market. 60% being in africa an the implications this has for global food security problem. look at the infrastructure. the enormous scope for improving infrastructure as well as the sector. i'm not blind to the challenges because we lack good hard infrastructure. that is also a skills deficit in certain part of the economy. institutional infrastructure needs to improve in terms of laws and regimes. >> quick question, wire're running out of time but hsbc is reviewing it's offers in the united kingdom. is it becoming to owners from a perspective and too expensive to operate in the you fighted

kingdom as a bank with an emerging market focus and will standard chartered follow suit? >> we have to review the issue but having said that we don't have any plans right now but we are listening very carefully to our shareholders. their view on the issue. the real issue is the increase in levies. >> your story at standard chartered ends and you move on into a private equity venture very briefly. give us a little color around what we can anticipate from you. africa will still be a big focus. >> it will be a big part of the focus. i'll talk more about it when i start it in october. so invite me back in october to talk more about it but africa will be a big part of whatever i do. >> thank you so much. back to you wilfred and seema in studio. i've been talking to the ceo of standard chartered, euro middle east and africa and the americas. >> thank you for that. intel was one of the biggest losers in yesterday's trading

down almost 1.9%. this comes only days after hitting a three month high in the wake of its acquisition of fellow chip maker altera. that deal was one in a flurry of deals in the semi-conductor sector and totals more than half of the combined value in all of 2014. joining us is the senior research analyst and managing director at jmp securities. thank you for joining us. so a big flurry of deals in the sector. does that spell the opportunity in the sector or does it suggest companies are having to artificially search for growth? >> thanks for that question. the latter question is what's going on with intel right now. it's in secular decline and alabama faces a very big competitive threat from a

company that they recommend very strongly being arm holding which is is proving far more successful in mobile as well as in pioneering new opportunities so in our view intel overpaid and is paying up to buy growth and paying up because it's nervous about the competitive threat. >> intel was late to the mobile chip game and while it's made meaningful strides over the past two years it's nothing compared to the market share that qualcomm commands. when do you see intel catching up in the mobile chip race? >> well that's right. we don't see them catching up with jmp securities and that's why arguably they paid such a rich premium for altera and the focus of that deal is the data senor where they have a better chance of competing. so right now we see a better tun for qualcomm. we like what they're doing with cash much better than intel. they have raised an equivalent amount so they can return

capital to shareholders. so we would definitely recommend them and we'd also look at another organic growth story right now that does have negative bc exposure but is growing organically, returning capital to shareholders. >> you know we have been seeing a lot of deal activity in the semi-conductor space. it's not just intel and altera. do you buy the philadelphia semi-conductor index on the prospect of further deal activity? >> there will be further deal activity, yes. so there's still tuns for investors to look at out there. they would make a wonderful target for the companies looking to strategically improve data center acceleration. there's another company out there that we think actually has a superior strategy to

switching. so some of the slower growth companies or even negative growth companies are acquiring right now. there's good organic growth stories and then opportunities to play the mna angle on this. >> sometimes they say they're a leading indicator for the tech sector. but let's talk valuation. at some point will they say these are getting too rich especially when looking at others? >> from a historic standpoint some of these do appear at the higher end of their range but if you put some of these companies into the basket of relative to say s&p 500 names which many of these companies compare very favorably to in terms of the new stability of their business models, the richness of their cash flows, those valuations don't look extended. if investors are selected there are still a number of tuns in

the space despite the valuation increasing we've seen. they're great examples of that where these companies are not at the higher end of valuation ranges. >> they also have the did i have kend working for them as well. have a great morning here. >> thank you so much. >> now still to come on the show pinterest is wading into the e-commerce waters. we'll tell you the latest way it's trying to pin down profits. we're back in a couple of minutes.

welcome back. google is holding it's annual shareholder meeting today. they're recommending investors with hold votes from three directors in protest of grants given to certain executives including the chairman. directors are on google's compensation committee. at issue is the $100 million in restricted stock the board gave to him last year. now iss says they failed to tie the grants to job performance. in the meantime take a look at shares of google. as you can see up about 20% over the past one year in frankfurt and down about three quarters of a percent in today's trade. >> pinterest started generating revenue last year by charging advertisers to promote their wares to millions of users.

now they're looking to up the ante with the first major e-commerce play. let's get to landon with all the details for us from cnbc hq. >> pinterest has been valued at more than $11 billion and now the social media app is holding it's estimated 47 million users in the u.s. want an easy way to buy things they find on the site. they're launching buyable pins allowing to sell products directly through the mobile app. they'll be rolled out on the iphone and ipad in the u.s. and later for android devices. bright blue pins that say buy this will pop up. and displaying prices they can search for similar products and more than 2 million items will be available for purchase at launch. macy's nordstrom, michaels they can pay for apple pay or credit card stored with viep.

instagram is expanding the number of ads on its site. it's owned by facebook and has 300 million users. it will be able to leverage ads based on demographics but users will purchase items on retailers own websites. they're a fast growing trend. google plans to launch one and one of the tech industry's most expected voices told the code conference he believes buy buttons will be pervasive. nonprime members there's no minimum purchase required. shipping will take three to four days versus two days for prime members and it covers products that typically cost under $20 1010. walmart is considering a free shipping program for $50 a year. amazon prime members pay $99 a year. >> the new era of e-commerce. by the way, love that turquoise.

>> thank you. >> let's remind you of the headlines. a greek debt deal hangs in the balance. interpol issues red notices for six former fifa officials including two top names in south american soccer and president obama signs a bill eliminating the nsa's bulk collection of americans phone records. we're back in a couple of minutes.

the latest on the unfolding greek story. a couple of flashes coming out. he's saying agreement with greece is the best possible solution though the sides may need to quote, cross lines to reach that agreement. the spanish finance minister has said greek exit from the euro zone is not on the table. the main goal is to get greece growing again. now let's get further reaction to this and indeed what to expect at the ecb's meeting

today in frankfurt. let's get out to annetta and julia live on the ground outside the ecb. >> thanks so much wilfred and the ecb of course keeping the greek banks afloat and that's what we'll be talking about. at least one of the issues that mario draghi picks upon today. the crucial question is if we get a deal what's going to happen them as far as raising that t-bill issue and the amount of debt of course that the government can issue. >> yeah i think that's the crucial point but probably we won hear anything like that from mario draghi during that press conference. we first need to see more willingness from the greek side and another crucial point here during the press conference is of course whether there's any indication that qe might end before september 2016 looking at the recent inflation data and the tick up in bond yields that could be one of the focus areas here. >> he reiterated it when you were in portugal. we're in for the long haul. we're going to keep buying the

bonds until 2016. nothing expected to change today. >> no. >> watch out for greece watch out for what he says about inflation and unemployment today as well. we'll hand back to you. >> thank you very much julia and annetta. of course we follow that decision live on decision time here at 1300 cet for european viewers. >> saudi arabia's oil minister says the long-term energy outlook is quote very positive. his comments come ahead of a closely watched opec meeting six months after the organization surprised some by leaving production levels unchanged. now analysts led the possibility this time around but the consensus is there will be no change. let's get out to steve who has been with various leaders on the oil sector from what they're expecting from this meeting, steve. >> yeah, seema, you've seen the ones we've got in front of the camera. you should have seen the ones that turned me down as well.

but it was great. because it is about the u.s. in many ways. the u.s. is the disrupter here and they're obsessed by energy independence. let's listen in to his response as to why the u.s. is so obsessed about energy independence. >> there's something in the system there and it goes back over 100 years ago. standard oil trusts were broken up. oil and gas and gasoline has always been a politically hot topic. the distances are vast so people don't want to spend lots of money on gasoline and petrol and it's a political issue when the price of gasoline in the u.s. goes up and i spent time on both sides of the atlantic and in the u.s. it's about $9 a gallon.

but it's political and deeply engrained in the system and there's not any outlook for chain. he just didn't get it. part of the marshall plan he told me. energy from the middle east was always part of the equation as well. is that just a dislike of the middle east? >> i don't, i don't think it's a dislike. >>dy trust? >> well i think there was always a period of during the 70s and opec embargoes and all of the gasoline lines that's still within a generation or so's memory. so there's a little bit of that. but it's a very independent spirited country. >> you guys have got a long memory haven't you? remember the standard oil trust and the break up of those. remember the opec embargo of the 1970s. we have a big baby boomer audience guys. >> i want to draw your attention to what's happening in the price of oil. significant moves to the down side at this hour. we're looking at brent crude right now down better than 2%.

wti crude at 59.92 so below $60 which is a key support level from an oil trader but steve as the u.s. becomes more energy independent doesn't that put more pressure on opec to cut production? what are your thoughts? >> absolute no. the u.s. isn't energy independent independent. if china has higher oil, if india has higher oil, if they have oil shocked it's going to effect the united states trust me. it's going to effect everyone. they're part of a world system despite the fact that with canada plus shale plus maybe a little bit of mexican oil in there, you think you got energy independent. look at with a you're reacting to on the back of the greece crisis. a tiny independent country in europe making all of these waves for u.s. stocks on a daily basis. if we get an oil price shock in

the rest of the world the u.s. will not be energy independent. it's not me saying it it's everyone i speak to. it's the boss of bp and bosses of these international oil companies. it's everyone it is part of the world system and i'm glad of that. >> we'll see if you're right. >> i want to bring you the latest flash on the fifa story. russia's committee olympic head was the resignation does not threaten russia's world cup in 2016. not 2018. >> coming up later today ceo will be guest hosting squawk box. >> that's all. thank you for watching. i'm wilfred frost. >> i'm seema mody. we'll see you tomorrow.

good morning, global markets are on edge as investors are in wait and see mode now. on high alert for news on a take it or leave it greek deal. also an ecb decision. got that big jobs number coming on friday in the u.s. also privacy concerns today. why tim cook is worried about how some of the biggest tech companies are using your personal information and no need to wait. jp morgan is getting rid of voice mail for some employees. i don't even check that anymore. it's wednesday, june 3rd 2015 and squawk box begins right now.

live from new york where business never sleeps this is squawk box. good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin that doesn't like this song. >> this is a morning show host nightmare. i was late for the show about three years ago now and you guys had the camera right on me when i showed up and this was the song you played. >> sorry catchy anyway. ten more billionaires are signing on to the giving pledge. this was to encourage the wealthy to give away the majority of their worth to