♪ everybody, a warm welcome, this is "worldwide exchange." >> i'm seema mody here are your headlines. >> the deutsche bank soars after the boss quits promising to impress clients. a bazillion billionaire is preparing a bid for the british drink makers. eyeing a takeover. turkey's election results

embarrass stocks as the low as he fails to win the majority in parliament. greek uncertainty continue tos weigh on european markets this as g-7 leaders fail to come to a deal with creditors as they meet in bavaria. >> let's get straight to the top story. shares in deutsche bank have topped to the top of the german market after the top ceos resign. they have promoted krenn to the top post. let's get to aneta with the latest. >> reporter: well it was a big surprise yesterday that they co-ceos actually handed in their resignation. and juergen fitch will stay on board until early next year.

traps the transition why did it come now? we only can speculate it was like a bad start to the year they had that whole expectation mounting up to the strategy. and the new strategy fails in convincing investors, analysts and even companies alike that this is a good strategy going forward about really electing details ahead of another slump in the share price. and then there were all these litigation charges coming. and also amounting concern what did they know about what happened back at the investment bank. he was head of the investment banking, juergen fitschen also emembarking on another convention in munich which he has to attend every week. so headlines were actually very bad when it came to the current management team. on top of that they were

missing top targets, before the bank going forward. and essentially, they came to the conclusion that it's now time to actually say, listen we are planning on resigning. yesterday there was an extraordinary supervisory board meeting here in frankfurt, and the board came up with new solutions. the new ceo, mr. cryan is not a stranger to the bank. as you see the markets have left him already. he's not afraid to be the head of the bank because he's head of the supervisory board and also said he took pride in the new strategy of the bank. he's known as being a man who is able to lead a bank. he was ceo at ubs at probably the most difficult time for the bank from 2008 to 2011. he was overseeing the u2

structuring there. and he is a man who can deliver. one analyst is saying he is known as a man who is known as underpromising things but overdelivering, something that we can't say about the current management team. what is up for the bank now, they are guiding us that we'll get more details on the new strategy as soon as july. hopefully, they'll stick to the plan. and we might also see the new men for the first time ever at the helm at least co--ceo'ing at the helm. we can also say that the co--ceo structure has actually failed. that's back to you. >> thank you. the share price action as you can see deutsche bank up some 6%. in other corporate news the world's richest man could be thirsty for d'angelo. in reports for talking for

british maker johnny walk werer and guinness. shares up 7.6%. plus shire is apparently reporting a 2.2% sweep. as you is see shire of 2.2% trading up at almost 7%. the turk kish finance minister says no coalition government can be seen as a reformist as a single party government. turkey's index has fallen sharply and the mira has declined to the u.s. dollar. this after the ak party failed to secure a parliamentary majority for the first time in 13 years. let's get out to hadley with the latest. >> reporter: hey good morning. what you mentioned with the finance minister right now, he's in a meeting with the prime

minister. the government is watching closely what's happening in the markets. we've seen record volatility as well. the market going up ticking up slightly from there. we did see a minor intervention with the bank earlier this morning, we're talking about rates. the interesting thing is the relationship between the central bank governor and president erdogan. and after the lobbying after the central bank governor time and time again, these political foes basically going after him to say he's not doing enough for the economy. and turks on the ground here telling us that he wasn't doing enough. so serious concerns here about this instability going forward. and of course the comments from the finance minister. the boat has pretty much sailed here. at this point, it take 35 days

to put together a coalition if they fail to do that they will have another round of elections. the position that we have is essentially mr. erdogan who has to work with that. >> quite an interesting development, seema, as we go back to last week with the possibility of the majority there are some people saying that after two-thirds majority. >> there were analysts predicting a coalition but that seems unlikely. we'll see how financial markets are reacting. >> indeed joining us the chief and co-founder good morning to you. >> hello. >> let's go back to the turkish elections. he and markets are surprised this morning with the lack of support for him? >> yeah yeah clearly, it is a surprise. it is a miscalculation on

erdogan's part to turn this into not just a personality contest, but a contest about the future of the country, whether it's going to have a presidential system rather than a parliamentary system which led people to believe with some justice he's really trying to set himself up as a dictator, if you like, sort of a put in of turkey. and that combined i think the key feature is the war in syria, the islamic state, incursions into the turkish territory. erdogan's failure to really oppose the isis attacks on syria. he's been obsessed with overthrowing assad which has been a much higher priority for him than dealing with the islamic state danger. i think with all of that added up to a serious personal defeat. >> turkey's economy itself

what's the outcome of that? >> well, the turkish economy has been some bad straits for the last two or three years. the lira while it strengthened the last year has been the worst performing since the second worst performance of currency in the world. there's been a lot of clashes between the government and the more traditional western-oriented central bank if you like. so i think there were a lot of problems ahead. >> i want to broaden our discussion into what's happening of course the course last week. april lost focus last week and we just heard from the edc policymaker who says the risk of deflation is gone. of course that is really one of the reasons markets crippled last year that fear of deflation and consumer price now picking up. the story seems to be change here? >> well i think the situation in europe is definitely improving, considerably by far

industrial productions from germany today than expected. i think the european economy has probably turned the corner in reality, probably turned the corner actually a few months before the ecb policy started in march. but that isn't to say i think this is a crucial understanding between some people in the market. that isn't to say that the ecb is going to back off from its commitment of buying 60 uros of bonds. what's happened the european economy has begun to improve from a very low point and is meeting expectations which were extremely dismal. it's still far to weak for the consumer businesses and it's still far too weak to satisfy the rest. so they're going to carry on until september next year. >> we'll continue our discuss

with anna toen in five or ten minutes' time. with the risk of deflation gone. he says there are positive development developments at the european level. now as g-7 leaders gather in germany to discuss the challenges facing the global economy, central bankers are discussing the opportunities to make money in the current environment in london. louisa. >> reporter: good morning. we're just warming up. i snuck next door to goldman sachs, the actual conference starts right around noon. who better to warm up than michael sherman, the vice chairman of goldman sachs. and good morning, michael. >> good morning. they were talk about how the ecb's nowotny has come out and said the rick of deflation is

gone. that we no longer have to worry about that do you agree with that? >> i think europe is beginning to show signs of improvement, that obviously will become more inflation into the system. i think we're far from that in the woods. my hunch is ecb will continue to go with were the program. it's slow and steady i wouldn't say it's dramatic improvement. >> we spoke earlier in the week all the volatility and uros of course, if we think that inflation going higher doesn't that mean we should anticipate that euros are going to go higher? >> thing for the short term rates are likely to stay low for some time. we'll see rates going high. able to see in the u.s., i think in the last the few weeks,

months we've seen volatility and the qe program was announced. we.situation 30% to 40% of government bonds had negative yields. but i think it's too early to tell, i think draghi said about being committed to the program. market views are still forming. my lunch is we'll look back at this period and say, wow, the rates were really this low. but it might take a few years. >> how about moving of capital markets. that's one thing you're focused on talking about that in the past as well. the environment is very much changing from kind of the traditional lending marngts towards capital markets. >> we think it's a great thing for europe to continue to improve their capital markets. these things take a long time for change. if you look at u.s. capital markets every 2 out of $3 more than the capital markets versus

in europe. 2 out of 3 euros borrowed here are borrowed through the banking sengter. it's a great thing for productivity for saver, investors, for pension funds and insurance companies. this would be much better for banks to set up for balance sheets. at the end of the day, if you can create a more fungible market that's good for the economy as well. so big proponents of that. everything we can do to improve liquidity in the markets we'll continue to do that. >> how is liquidity now as a goldman? >> with the capital liquidity rules, obviously certain banks have withdrawn from the capital markets and with the cds market would be a good example. the other end of the spectrum big asset managers much more involved to tighten positions to provide liquidity. i would say liquidity is

challengeable but workable. and working with new ideas how to promote more liquidity to the market to package up things to provide liquidity for the markets. >> what do you think happen -- two full questions, what happens when the fed starts to hike rates? how much of an impact is that going to have on markets, do you think? and also what happens once with the quantitative easing here in europe is scaled back it's post to be of september of 2016? >> i think when they start raising rates, especially when it's well heralded hopefully, it won't be a sthuk markets. it happens to some of the weaker countries, some of the growth market countries, some of them have had their currencies under pressure. so as the feds start raising rates, what sort of pressure will that put on those countries. having said that will have a fallout from the fall of the oil price.

india would be a good example of that china would be an example of that. in terms of qe after it improves, the european opponent is pick up. i hope they withdraw because i'd like to get back to a much more saving pattern for investors in europe. >> do you think we're heading back to the old normal or are we looking at a new normal? >> i think the new normal is going to be better rates than the '80s or '90s. hopefully, it won't be zero forever otherwise that would be challenging for savers to come. >> speak of savers and drawing in pension funds and insurance as well. you mentioned them a moment ago, do you worry given the pension funds that they have investment on that? do you worry five years out, ten years of zero returns what the environment is going to look like? >> well i think the pension time on europe is what of the

biggest that faces us. they have to think of different way touns vest in the markets eye over the infrastructure project finance you can create liquidity and interest in capital marks, then i think you can appeal to all kinds of investors and try to create new asset classes. that's one thing i think goldman sachs is particularly good at. with the capital markets group, we like to work on new structures in the area i think over time we'll be able to create new products that will help pension funds and insurance companies manage their savings. >> so in marry, what do you think the next six months, have in store for us? are there any trends that you've seen that you think are going to become more prominent. as far as the markets in the north? >> i think the trends that we see are whether it's in markets or europe or japan, i think we'll see more of that. we continue to be more of that in the u.s. dollar i would say

a lot of that come from the fact that the fed will continue to raise rates. i think more of the same we'll continue to see, you know a stronger dollar. and equity markets probably edging up probably not as dramatically as we've seen in the last year or so. i hope that's the scenario and hype over time the economy will be better with the market challenging from time to time. we see surprises and shocks but i think we would prefer those going forward. >> steady as she goes is the best way forward. >> thank you. for covering it. >> 1400 people right? >> 1500 investors there. >> look i look forward to legging it over and talking to lots of people over there. >> i'll see you at the conference. >> michael sherwood from goldman sachs. as michael said a lot more people lining up up top get in the doors of the conference that

happens. peter onnenheimer, chief strategist i'll be speaking to later. jans hansen from goldman sachs. and the former nato secretary-general and former danish prime minister i'll be talking to him. and the charles monthser the former president and ceo. >> a great lineup still to come. we'll show you awe live shot from the meeting in bavaria where angela merkel is meeting people. i'll tell you one pass that's right came out of the meeting this morning and that is the white house has denied the bond

was a problem. we've seen the dollar versus the yen, a little before today. the dollar yen is at 1.25 at 5 at the moment. the greek prime minister could be about to lose a crucial ally in europe. find out why one top official is warning their offensive could be over after this break. "worldwide exchange" will be back in two minutes.

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let's have a quick market update. seems to be a little impatient today. 30 seconds we're looking at equities down 0.3%. most of that in the continental. a quick look at bonds, of course a big rise in yields last year. we saw the ten-year at 31%. but it settles back down to 9.9. and finally a quick look at the euro back down to 111. we floated up towards 114 last week. at the peak of the qe trade. we're looking at the euro at 3.3% today.

seema. >> and they're looking for the deal with prime minister alexis tsipras with president obama and angela merkel agreeing on the need for athens to reform. the european commission president jean-claude juncker accused of distorting proposed made by the lenders. some big yields in terms of yields. the yields 24.5%. five-year at 17.2%. still with us is antolin. >> i think greece could put a lot more concessions on the table. i think there is the possibility of any further leeway from the european institutions.

in theory, there are a lot of things that they could give greece. in theory some of those things might well be appropriate. but i think the diplomacy has really broken down. i think that tsipras has run the negotiations so badly for the last six months that he's completely lost his allies in europe. even more importantly, he's lost his economic trump card in europe. which to the greek government how the substantial budget surfaced which he inherited from the brief government. while it had that surface, it could say to the europeans, we don't need your money, we could carry on operating within the country as pay our debts but he's basically lost that surplus because of the uncertainty and the economic chaos he's created. so now he's in a very weak

position. and the europeans realize niece a weak position and he's responded by behaving in a very provocative defiant way. so i think this situation could 0 end very badly, certainly for tsipras and then for greece. >> when does collapse start? >> well i think their plan on friday was never going to be it. in behind hindsight, if there's a crunch it begins at the end of the june. all bundled together for june has to be paid. and additionally the current bailout deal comes to an end which has already been extended until the end of june therefore, in theory greece really can't get any more money even in principle if they come to terms with the eu. and the crucial thing for that

under those circumstances, it's hard to see how the ecb can continue to fund the greek banking position. the whole crux comes when the ecb pulls its money from the greek banks as it it threatened with cypress a few years ago. at that point, the government becomes bankrupt. >> we'll leave there, of course despite mounting frustration, if history tells us about a deal will be reached at the 11th hour. anatole, thank you so much. still to come turkish finance ministry shakes off the results. should the investors be worried about the political uncertainty? we discuss after this break.

banking soars as deutsche bank goes to the top of the german after the top ceos quit. john cryan promising to impress clients. the billionaire is preparing drinks for the brazilian maker. shire is eyeing a takeover. turkey's stocks unsettles investors as erdogan fails to within a majority in parliament.

g-7 leaders increase the pressure on athens to come to a deal with creditors as they beat in bavaria. and a condmruns of factors weighing on markets today. of course we do have a couple of bright spots giving the mma speculation on the table. right now it seems to be the greek deals coming together that is weighing on sentiment. you can see stocks broadly lower. the ftse down a tenth of a percent. the feel of deflation is gone i have to say, i think that's one of the reasons why you have analysts saying despite last week there say chance monetary support will be scaled back

before september 2015 before they it surprise on the upside. >> i disagree. i think committed to the policy. nonetheless, the wait the markets reacted was a big surprise. even though volatility will stay there. and shouldn't expect the yields to stay so low. a quick look at markets. the euro has now gained some of the gains it made last week. it's back at 1.1143. that of course has been volatile over the last few months. let's move on. merger monday reports moving of stocks but speculation that brazil's richest man it weighing a bid for the spirits make diageo. it's one of the best performing stocks in the ftse up by 6.7%. let's get details on it with catherine joining us around the

desk. what would push diageo to the table here. there's no reason for a strategic partnership? >> well this is extraordinary, diageo seems as one of those companies that is too large to be bullied. and having said that i mean this is a company which doesn't steam have any kind of obvious problem. doesn't seem to have any way of doing things so i suspect potentially if someone was to come to the table with the deal it has to be quite a large premium to the share price. i think also you just have to really look at where this is coming from. with the share prices just coming with one report in the brazilian magazine which is famous for it's news reporting. obviously, there's a lot of chattering about the reserve.

whether that is going to bring enough money to the table enough to buy a company of this size. >> it's not the only deal being rumored. shares for the actelon with the swiss group, catherine, another juicy story. >> the market seems to be taking you have, in particular in the pardon me suit cal space. shire, of course was a potential prey last year but now seems like a predator. and shire has the kind of war chest that could make this deal happen. and it could go up to another $12 million for the deal. presuming what happened with deutsche bank this morning, they could get that so they could

put in with the existing business. it's still quite a large deal compare to the deals they have done in the past. a lot more transformation of them. sort of going for smaller companies that maybe have one or two key interesting products whereas actelion is drefly a larger slice. the turkish main stock index in fact has fallen sharply and the currency the leader has declined to a record low, versus the dollar this after president erd dawan's a.k. party failed to secure the turkish party in years. the prime minister saying without an a.k. government is impossible. let's get more on this story with hadley gamble live in

istanbul. >> reporter: hey seema, a lot of volatility in the market as you mentioned but i'm here with athens -- are you surprised about the volatility, is this something you banked in off the election results? >> well first, as ceo and chairman of the central finance initiative i think you should think that it's temporary for the markets. as you know the elections showed that turkey has great potential democracy. whether there is good structure, bad structure. i mean the -- the rate of the attendance, participation, is 85%. which is a little higher than

the latest elections in uk. i think this is say temporary election. and all of the parties will take the message from the public. >> looking at some of the comments we're hearing, not just from the foreign minister, but other parties as well that they're open to working with a coalition and looks like that's what they're going to have to do. but talk to me about reforms. obviously, lots of talk of reforms. reforms are necessary. are we going to see them from any coalition government? >> it depends on whether the akp is one of the part offer in of this unit. i'm sure personally that akp will be very taupe a coalition in coming days. if one of the reformist parties for ten years, akp is going to be in power, in the coalition, i

think we should be more optimistic about the reform agenda. >> we saw intervention from the central bank. do you see that happening in the coming days anything more? >> the question is the freedom of the central bank. whenever we look at different banks all who divert you can say that this -- i mean, bank of england, central bank of europe and others, how they are free to do something. whenever there's a problem, whether there's turmoil in turkey central bank can do that they can do everything they can. for that reason i think central bank will do the best whether there's a coalition, whether there's no government. i think we'll see more volatility, but central bank will be there. >> that's basically the fact

that we've seen the central bank governor take a hit from politics certainly from president erdogan saying it for years? >> of course, the most important priority for the politicians right now is the economy. but on the other hand they would find a way to make the coalition at the same time. i mean if you need a third party for a good -- i mean management of the markets, central bank is there and ready. for that reason, there will be no i think, impact or no intervention from politicians to central bank but there will be some intervention from central bank to the markets. >> so a lost politicking to look forward to in the coming days. >> exactly. >> excellent. thank you for joining us.

>> political uncertainty gripping financial markets. that was halle gamble live in istanbul. let's move on the leaders from the bavarian alps high on the agenda angela merkel said loosening of supplies lies in russia's hands. let's get out to the area because, of course they are meeting in the luxury entreat and caroline is nearby. >> reporter: it's actually not too far off wales. i'll practice with you when i get back to the studio. anyways, we're here on day two of the g-7 summit. attend terrorism, and the crackdown.

i think the overriding theme here is apart from greece it's also russia. there's a huge sense of urgency to deal with the russia/ukraine problem after we saw the worst fighting in europe ukraine since february. mr. poroshenko from ukraine saying the army in ukraine should be prepare for a possible full-scale invasion by russia. now, yesterday when president obama arrived here in southern bavaria, he said we will stand up to aggression from russia. it's because of that aggression that russia no longer a member of this exclusive club. it used to be after last year after the annexation of crimea, it became the g-7. there's a lot of discussion whether russia should be left into this exclusive club but there's also aing to as you mentioned if sanctions should be be extended or ramped up. yesterday, we got the chance to speak to the canadian prime

minister steven harper and he's in a very hawkish camp when it comes to extending or even upping those sanctions, take a listen. >> i did just meet with president poroshenko and the message i delivered to ukraine and elsewhere is that we're not only committed to maint committed to toughening them if that is necessary, if mr. putin continues basically his behavior. i know that the president has the same view. i think, as i say, it's virtually a universal view here. there is no doubt, with some of our european friends who have closer economic connections with mr. putin whose economies are more vulnerable to conflict with russia. i know some of them would like to see a lessening of the tension, a lessening of the sanctions. the fact is that we all understand mr. putin has given no reason to lessen these, renewed shelling this week in the shadow of agreements that he was part of.

>> reporter: one of the issues i want to come back to is membership of the g-8. russia lost it last year. how quickly, how easily can thaebthey be aloud back in? that is also ahead of that. there are two campus which crystallize. on one hand, you got the hawks like mr. harper who says if we don't see aggression there's no way mr. putin will be aloud back into the club. then you've got business owners from germany, of course they suffered quite differently in the fallouts. interestingly enough you've got the german fund minister who has said, you know what we need russia around the table, to deal with some of the most pressuring issues in the world such as syria and iran but for now, this continues to be a g-7 summit only. back over to you. >> caroline from

garmischkeshgen, thank you so much. american pharoah gallops into the history books to winning the belmont stakes to become the first horse, get this, wilf in 37 years to get the triple crown. beat by 5 1/2 lengths. there's the victory there. american pharoah's victory could be as high as $50 million from forbes, from stud fees generated over the next few years. a very rich horse indeed. >> do you know who came in second? >> that would be mr. frost. >> exactly. with my name in it. >> you got second you didn't get first. >> i know. still to come on the show good-bye greece and sadly good riddance riddance. joins for the full discussion coming up next.

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a big day for apple. apple is holding its annual worldwide developers contest today in san francisco. with ceo tim cook giving the keynote at 1:00 p.m. eastern.

apple is expected to have major updates to maps and siri. and split screen viewing of the apps for the ipad. the company is also expected to unveil its new streaming video and internet service but newno new tv products. taking a look at price shares down 0.25%. >> did you get to get out there for the conference? >> it would be nice to attend the conference absolutely. i think this music streaming service could be a game-changer. >> is that the top thing to look out for? >> i think it is. i think given the fact that we've seen updates on the ipad and mac. the real focus is they're moving to the music space. especially with responsibility that spotify and others. >> and the other thing, it's a bit more borg in terms of music streaming is the update on ios.

people are starting to say they love android and the advantages that the apple system used to have. do you think that changes that again? >> i think that definitely would be a possibility. the focus is perhaps maybe announcement around music and tv. ios, i'm not sure. if there are minor changes or updates they'll accept them. >> tv would be great. apple tv would be excellent, but it sounds like they're not ready for it yet. so what would you like to see apple unveil zwrodtoday, join the conversation at "worldwide exchange." @wilfredfrost or @seem mamodi. a mixed bag, the world saw a drop in imports for the month of

may but it wasn't all doom and gloom as exports fell less than expected. the shanghai closed the session higher as investors battle once again by further bank stimulus will help the economy. you see the shanghai composite over the last few months up 58%. how about that? >> that's ridiculous isn't it? >> is it? >> yes, if you're a fundamental, long-term investors who weighs up the earnings and data from companies. >> this is not a market that's driven by fundamentals. it's by speculation of further action. >> right, and cash from the retail market. that's obviously why we've seen asia with that performance. if you're a benchmark to that market and you haven't invested it's a pain for the next year or so. >> you know regulators are clamping down on margin level requirements, you wonder if that

would result in less participation in the market. >> yeah, that's a factors. now, let's move forward, this is a live shot from bavaria where world leaders and top officials are arriving for talks. german angela merkel are posting the events there. this is the first people arriving in helicopters. and in fact she arrived in one herself. very cool. back to the markets, the latest official figures show that japan's economy is performing above expectations. let's out to to tokyo. what's the story? >> thank you, wilfred. the gdp figures from january to march have gone upwards significantly. 1% on a quarter. the preliminary results have been 0.6%. further, a look at nominal gdp growth is 9.4% this is a level

of growth seen to japan's booming of the late 1980s. stronger than expected business iminvestment has been contributing significantly to this rise. the preliminary result for the business investment have seen a 0.4% increase but was correct today to a 2.7% rise. the japan economy watchers announced also supports this positive corporate momentum but there appears to be an index showing a continuous positive outlook for a straight sixth month. it's not good earnings from a domestic market it's also coming from overseas subsidiaries. and this has translated to the macrolevel as well. these gains have the overseas have helped to compose a surplus for the tenth consecutive month. that's all for the nikkei. wilfred, back to you. >> we'll bring you more live shots of the g-7 conference in

bavaria. this time inside rather than outside. where we see people getting ready to take part in thing from russia to greece. you see italy there, of course we saw christine tacklking to angela merkel. speak of greece the european red jean claude juncker has outlined his negotiations. he is waiting to see an outcome of the meeting on wednesday. this as the defense minister said he still believes that an agreement can be found by the end of june and that a greece exit from the eurozone would be a catastrophe. let's talk with barry norris. and barry, you're quite pessimistic when it comes to these greek negotiations especially on reaching a natural

deal with the end of june. >> i wouldn't necessarily say pessimistic. but i think the time has come for hard decisions to be made on greece. i think people in my line of work are often accused making short-term decisions, which turn out to be suboptimal in the long term. i think it's time actually for politicians to accept without credible economic reform the greek economy will never be strong enough to stand on its own two feet. and will become some kind of permanent charity case for the third bailout package is agreed without a government in greece which is prepared to deliver credible economic reform. >> what do you think? do you think failed negotiations indicate that relations between european policymakers and greek leaders are reaching a breaking point? >> i think we get to the stage with every government that we've seen in the past. they're always forced into a position where we have to hope that they follow through with reforms and they've done less

than we hoped in the past. i would ask you what do you mean by that in terms of a government that is going to put it forward. we've never been in a position with the greek government that they've followed through with what they've been asked. >> i'm not sure about that, i think a new democracy had the intention to deliver on least form. i think the tragedy of what's go on in greece had the greek eelectorate elected a new democracy government last year, we wouldn't be in this situation today. what we've got today say government which essentially doesn't believe in liberal economy. he wants to sort of take the greece economy back but a communist-style economy. and therefore, the financial markets can have little confidence in their ability and willingness to actually see through credible economic reform. and on the key issues that the

group are debating peng reform privatization label, i think there's a serious lack of engagement even in the negotiations, so that clearly leads to problems in terms of thinking whether the government will ever follow through even if they promise to do something. >> who is the onus on that to make a big concession from either side? because if it did get to the point where greece leaves who is that worse for, will it be bad for the greek creditors? >> you have to understand that 80% greek is owned by other eurozone governments. in terms of the contagion effects, really something which would probably if you've seen that there's no recovery of any debt that would add about 300

basis points for to get the gdp ratio across the eurozone. but, of course eurozone can borrow money at record cheap rates the ecb can print money, therefore, i think the contagion would be pretty limited. i think in the short term, the markets would react negatively. i think with the markets down 10% with the firewalls in place and with the issue there, i think specific markets will be held by the end of the year. >> great stuff, barry. thanks so much for joining us barry and julia, thank you. after the break, we'll be talking more aboutal. alpple. stay with us on "worldwide exchange." ♪ call 1-800-royal caribbean

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and welcome, everyone to "worldwide exchange." i'm seema mody. >> and i'm wilf frost. here your headlines. >> u.s. futures meanwhile indicate a positive open despite a sea of red across the european markets. banking on a turnaround. shares in deutsche bank soar to top of the german market after the lender's co-ceos quit. a second take over from monsanto as the giant puts on the table an $18 billion breakup

fee. more mega news shares in the british drink maker diageo has the best in years. waying a bid. what an extraordinary week it was last week seem a. we saw it in europe start on the unwinding of an european qe trade after the volatility here to stay. interestingly, the u.s. ten-year yield going up on friday. that much more on fundamental base of the central bank rhetoric. >> we saw the biggest move since november 2014. it's responding to the market of a clear-set of a positive economic data.

this week in terms what to watch for, keep an eye on retail sales. that will be the number that investors will be watching for in the u.s. after the auto sales last week the big question is will retail sales signal that the consumer is impact spending more despite gas prices on the rise. >> and of course it has been continually disappointing with consumer retail spending which has been a surprise given the week given that we have seen jobs be pretty strong. >> yeah, given the fact that we haven't seen that much of a boost when it comes to wages. that perhaps is one of the reasons that consumers are spending more. and suggesting that we're starting to see some signs leading to the consumers spending more we'll get that number this week. on another note let's take a look at what we can expect on wall street. stocks losing steam last week led by bond and proxy such as bond and paying stocks utilities. we are indicating a higher open.

dow up 6 points, nasdaq up 2 points, we'll see if the nasdaq continues do move to the upside with the apple world kied developers conference where the company is expected to unveil a music streaming service. back to european markets here on monday we are start on a negative note the global reacting to that trade data. in terms of european trade, the dax down 23 points we've seen volatility in the euro. as you can see down about 12 points. keep in mind the ftse mib, the italians down 20 versus the german dax up about 17% year to date. i want to give you a quick look at the ftse 100. you can see trading basically flat but a big mover on the uk

markets, diageo moved by bio speculation. >> and a muted market. of course it was a negative week last week so no bounceback as of now anyway. let's took at the ten-year in germany which rose on the back of draghi's comments that volatility may well be on markets for some time. just some of those losses it's seen. didn't nearly touch 1% which had hadn't touched since september present 2014. and the euro now at 2.38%. and of course there's that spread between the german and u.s. yield has closed recent with with the euro rally. again, it too, have appearpared some of the gains. it will get close to 1.13 at

lunchtime but back down to 1.11. 10 bases points for the green for the euro. volatility for most of may and early june it's held up pretty well since the rally since mid-march. opec meeting last week. wti below 60. 58.8. brent at 63.0. seema. with your rundown of what to watch, there's no economic data look for reports. ppi and sentiment later this week. h & r block, and dave & buster's among the company reporting earnings. mcdonald the final month the fast food chain will post monthly numbers. >> shares of deutsche bank have jumped to the top of the german market after jain and fitschen

who has resigned. >> it was a big surprise yesterday when that news came out from deutsche that the co-ceos will resign and leave the bank end of the june. and it will facilitate the conditions to the new sole ceo who is not a stranger to the bank. it's john cryan who is currently a member of the supervisory board who was before cfo of ubs from 2008 to 2011 mainly during the bigger structuring of ubs. that goes to the credit that the market is playing surging on the news. as mr. cryan seems to be a more reliable and more trust worthy manager when it comes to restructuring the bank. one has to say the co-ceos which

are still in place have been disappointing when it comes to implementing cost cuts when it comes to reaching profit goals. litigation was a huge issue. and disdain, more and more step-by-step losing his credibility that he's really actually the right man at the right time. so what happens after that very bizarre agm is according to sores that mr. jain came to the conclusion that it's time to step down as he's not become a trustworthy ceo for the bank. what happens nexts, we're missing details when it comes to new strategy and there are rumors that mr. cryan will alter

that strat egy. i hear that will not be the case because he's also in the supervisory board and close to the strategy. but will be his value added is the detail. we're waiting for new detail on the strategy as soon as july with a the new co-ceo. syngenta rejects monsanto's offer. on sunday monsanto said it would post a $2 billion reverse breakup fee if it couldn't get global approval for an acquisition. syngenta at nearly 1% today. monsanto at 0.2%. amid some stocks there's speculation that brazil's richest man is weighing a bid for diageo the maker of

smirnoff. who better than catherine boyle to break down the details. let's start with diageo could we see a deal here? >> seema, it's based on this one report from a brazilian magazine that isn't particularly focused on the magazine usually but there does seem to be a veiled response to it. even though this would have to be a huge price tag for this to go through. as well as, you know in favor of potentially going through is that this is someone that they have the backing that these are people who could potentially make something of this size happen. having said this the diageo company has been doing reasonably well. and helping with management and a particular wish for massive change at the company. as you said the market does

seem to be adding credibility to this report. >> anything about the company saying -- >> they very much says they won't comment to the rumors and speculations. >> but some investors like the sound of it too. >> they do. >> thank you very much. coming up the pension time bomb goldman sachs top banker tells cnbc why this could be europe's biggest challenge. we're back in a couple of minutes. and multi-layered security. it's how you stay connected to each other and to your customers. with centurylink you get advanced technology solutions, including an industry leading broadband network, and cloud and hosting services - all with dedicated responsive support. with centurylink as your trusted technology partner you're free to focus on growing your business. centurylink. your link to what's next.

welcome back. let's go to headlines. deutsche bank shares flying high as the bank's co-ceos step down and say new leader is named. president obama and angela merkel discuss the needs for the g-7 summit. and american pharoah remains supreme. taking home the triple crown. welcome back. ge is reportedly close to a deal to sell its private equity lending business to canada's top pension fund. it would include more than $10 billion in assets and could be announced today. reports say the deal with canada pension plan investment board includes ges middle market lends for private-backed equity trangs

transactions. the sale is part of the reduced exposure to the finance firm ge capital. calpers cutting ties with half of the wall street firms that manage money. it has reduced the fees to investors. the outmanager monies include kkr, blackstone and the carlyle group. both up significantly in german trade. goldman sachs vice chairman michael sherwood has told cnbc the pension time bomb is one of the biggest developments. let's get out to louisa. lou, take it away. >> yeah high guys. the conference starts officially around an hour and a half's time, somewhere around there. goldman sachs warming up for the actual conference takes place. elsewhere, 1400 people will be

gathering talking about the general environment, talking about markets, listening to business leaders. they will be giving addresses as well. yes, i did catch up with michael sherwood earlier. and he spoke about the pension time bomb which is a huge issue where they have to invest a certain amount of their portfolio in the bond market. with the record low levels for a number of years now, a lot of people anticipating that yields are going to stay low, at least for the time being which could be the next couple of years, where would that leave the pension funds and the insurance industry. we spoke about that. we spoke about inflation, and we talked about the ecb, he said that he thinks that the ecb is doing the right thing in terms of supporting the markets. it's a slow process but we are getting there, according to michael sherwood earlier.

i spoke to him about capital markets. the bull down is something they're taking seriously here at goldman. take a list ton whaten to what he has to say. >> we think it's a great thing for markets these things take a long time for change. if you look at u.s. capital markets every 2 out of $3 it spurs are from the capital markets and not the bank. versus the euro 2 out of 3 euros borrowed here are bauer roar borrowed through the banking sector. i think it's a great thing, if there were more choices, it would be muffch more official. if you could create a fungible much better working capital market, that's good for the economy and help europe as well. the big proponents of that anything that we can do to provide liquidity and financing in the markets we'll continue to do. >> now, another issue is what happens if and when the fed starts hiking rates.

we had cristina back in from last week talking about serious pockets instability. a quote taken directly from her in the u.s. and that we shouldn't be ignoring some areas that need attention, especially in the central sector state side. what would they that lead with that, would they have to scale it back? i spoke to michael sherwood as well. he thinks that quantitative easing will stop eventually from the environment. normally environment being a lit lower than the rate environment we've seen before the financial crisis. now, we were talking about the peng and insurance industry, take a listen to what he was saying with regards to the brother worries for the zero returns. >> pension time bomb in europe is one of the biggest challenges that faces us. if he thinks insurance companies

have to be more creative. they have to think about different ways to invest in the any markets whether through infrastructure. if you can create liquidity and interest in capital markets then i think you can appeal to all kind of investors and try to create new asset classes. that's one thing goldman sachs is particularly good at with a capital markets group. we like to work on new structures in other as. i think over time we'll be able to create new products that will help pension funds, insurance companies manage their savings. >> now, the conference starts in about an hour and a half's time. i'll be heading straight over there now. i'm going to catch up with a whole bunch of people. peter onnenheimer, chief equity strategist someone i'm looking forward to speaking to with regard to goldman's strategy in the upcoming markets.

and both of those gentlemen, charles monthser a former president and ceo of the federal reserve bank the philadelphia. i'll be talking u.s. strategy with him and what the fed is doing. and the former danish prime minister and nato secretary-general. he'll be joining us as well. hoping to get geopolitics in there as well. coming up on "worldwide exchange" -- two convicted murderers are on the run after escaping from an update new york prison. we have the latest on the prison break, after this short commercial break.

well coming out of the kremlin, the kremlin urges g-7 will be clear on which side neats to implement cease-fire agreement. also saying nothing new on the g-7 discussions on sanctions on russia. of course are the whole issue of russia and ukraine high on the agenda, on the ongoing g-7 meeting takes place in germany. let's get out to yeahcaroline live from the area of garmisch-partenkirchen. >> reporter: those comments from mr. putin, we've seen the

largest from the rebels in ukraine. ukraine. petro poroshenko said they should be prepared for full-skill invasion by the russian army. so it's pretty clear there's a lot of urgency to his russia ukraine situation here and it's timely that g-7 leaders are meeting here. but the question still is, are sanctions in place, which will run out pretty soon whether they'll be extended or whether they'll be ramped up. and such as canada for example, such as the eu counsel president saying they need to be ramped up. seeing more coming from ukraine ease up. others saying maybe they should be extended but those are the countries where there's a lot more at stake, economically,

such as lit,italy, for example. italy has had a really good relationship with the russian president over the last couple of months out there this entire crisis. in fact this week the russian president, mr. putin is scheduled to visit mr. ramsey in rome. we spoke to the canadian prime minister mr. harper yesterday, and we asked him what his message was for those leaders who do have a good relationship with him. >> i think there are occasions on which other leaders will engage mr. putin, madam merkel has been very engaged with mr. putin in trying to get him to behave more responsibly and engage with his counterparts. i think that is useful. when we're discussing the shared support for ukraine, the challenges that we have as market economies you know mr. putin, he runs an entirely different system. he is increasingly in a

shrinking democrat kick space. he runs an economy that is dominated by oligarchs. and he doesn't share our values. so we need to have a discussion where we can really rally the shared interests of the western democratic world. >> reporter: now we will be getting a final communique of g-7 leaders later on today. whether the threat of increased sanctions is actually part of that communique, i highly doubt it but i'm sure there will be some very very strong message included in that. where the future of sanctions against russia actually goes that's hard to say. as you see, there still is not a totally perfectly unified stance from the west vis-a-vis russia. >> thank you, caroline. thank you very much. >> let's move on to the hackers who broke into the u.s. government's personal office may be trying to mapt government ing toing

to map the government and recruit spies. reports say chinese hackers are responsible for the attack detected in april and they exposed data of 4 million u.s. government workers. the finance times reports say hackers could use information to find people with high security clearances and use that to manipulate them. >> the manhunt continues for two convicted murderers who escaped from a maximum security prison in upstate new york this weekend. authorities say the men, richard matt and david sweat used power tools to break walls and followed through tunnels and crawled out of a man hole outside of the prison. police say it's unclear whether they had inside help. new york is offering $100,000 of rewards for information that leads to their capture. a pretty scary situation there. sounds like a movie. >> it does indeed. still to come on "worldwide exchange," the latest gadget

gossip. we've got it for you. what to expect from apple's tim cook. a mickxed open expected. we'll have the details after the break.

you're watching "worldwide exchange." i'm seema mody. >> and i'm wilf fred frost.

here are your headlines. shares in deutsche bank soared to the top after the co-ceos quit. back to the negotiating table. syngenta with monsanto. >> more mega merger news. shares and diageo have their best day in seven years. and awayingweighing a bid. the euros with higher opens. with a sea of red across european stock markets. and if you're just tuning in thanks so much for joining

us here on wx "worldwide exchange." is really was all about that job report on friday. one of the reasons we saw an outsize reaction in the treasury market. the may rate of 5.3%. higher than the forecast with the take away from the report. let's take a look at u.s. futures and what we can expect on this monday morning. very different picture from what we're seeing here. the dow indicating a higher move around 3 points. the. s&p 500 at a half point. the nasdaq, keep an eye on the nasdaq. we do have that. ale developers conference today. analysts expecting a music streaming service to be unveiled, so we'll be keeping an eye on shares of apple and what that neerns then the whole. the big story last week is greece not meeting its imf payment, of course that being pushed to the end of june. in response there seems to be a

selloff here the dax, the german markets now in correction points on the highs it met. well throw 12,000. trading at 11,153. down 43 points. the ftse 100, at 6,803. the big movement on diageo shares. and cac down 21 points. wilf. turkey's main index is gone sharply and the lira has declined to a record low. this after erdogan's party failed to secure the election. let's go to live.

>> reporter: hey, wilf acres great deal of volatility we're seeing here, not just with the turkish market but the turk lira. it's interesting we're seeing so much comment from the president's ak party, but also the other parties that are making headlines that could form a coalition. i want to bring in my guest now. give us a sense of this you're well placed to talk about risks. lenders with risk potential here. how positive are you about what we've seen over the last 24 hours in terms of the possibility of a coalition government here in turkey? >> to tell you the truth, we have been seeing part of a risk in the last two years in turkey. this is why we've downgraded turkey to be in terms of trade risk. but when you actually look what's up with the vulnerabilities of forming another government coalition

possibly, i don't see that much of a problem with the risk. because it will not really get much worse than what it was before. >> so this is short-term volatility? >> i think it's definitely short-term volatility. i think it will definitely settle down with a much better perspective, because it is a huge step towards more -- more covered up and more democratic turkey i think. and the institutions and parliament will definitely be more balanced of powers. and then i think, because in every era, where we have have a chance to get back to a better governed state. >> one of the things we're talking about today in terms of looking at risks for turkey in the banking sector and their expose tore foreign debt but in

terms of the political situation how much more volatile is it really in turkey itself than what we're seeing in the global environment just because of the political risks that we're seeing with the government becoming more conservative? >> i think we need to really think about the fundamentals of the turkish economy. i think we do have ingood fundamentals at the moment despite the last few problems that we suffered through. with the volatility against dollar and euro is definitely a problem because of intrinsic deficit of the company. but when you look at banking problems we do not have problems with really the banking system apart from a few problems we've encountered in the last few days. but i don't think it will definitely be a problem looking ahead, where turkey definitely

needs to loan money in order to grow as a good place. we need to get back to the fundamentals and maybe other reforms that we need to complete with a better balanced parliament. so that the volatility here today, will also disappear. >> so in brief, i do think it's going to be a problem, unless the volatility picks up. but i do see that coming why? because i's a clear message to people to the issues but we need to get back together and the system needs to be restructured to get back to with a more democratic grasp of the whole country. >> i think we'll leave it there. thank you for joining cnbc.

seema, back to you. >> thank you so much. live in istanbul. let's take a look at other top stories at this hour. apple holding its worldwide developers conference in san francisco with ceo tim cook giving the keynote at 1:00 p.m. eastern. analysts expecting a matchup dates to maps and siri and split screen viewing for apps. by the way they need to do that surface tablet microsoft also displays that function. now, the company is expected to unveil its new music and internet radio service but no new tv products. the question is where would whatever product it unveils will be enough for users to field the need to deactivate their ats on spotify and pandora to make the switch to apple? >> i think they're right on time to do these things. if it's nicely integrated

they're expecting that on ios as well. clearly, they've decided to delay on the announcements around the television product because they're not ready to go with that. one can only assume they've got the streaming music service to a point where they think it's going to be a beater. >> someone saying because apple doesn't have it that puts them at a disadvantage. but at the same time, they were slow to incorporate the larger screen iphone. they ended up unveiling the iphone 6. it was still a big winner there. you saw a lot switches from the android powered phones to the apple phone. >> the mac still is so much poorer than the mac system. i don't understand why they haven't managed to include that yet. alibaba has struck a series of deals to expand its global cloud deal. it to use alien to use existing partners including intel.

it's aimed at giving small businesses to give the ability to harness the power of data. is this quite interesting. it's a threat to the likes of amazon and microsoft. and the way they're doing it by piggybacking off data systems seems bright to me. it doesn't cost them a lot to do it. they can see how their brand moves. >> if that's not a move into the u.s. market it's a move into the cloud space. there's that reported microsoft sales deal on the cards. microsoft and google strengthening their foot hold. amazon coming in much higher than expected. alibaba is saying listen, everyone is getting into the cloud space. we need to find a way to capture that out there. moving to horses. american pharoah gallops in the

history books winning the belmont stakes on saturday to become the first horse in 37 years to take home the trim crown. the 3-year-old beat the rest of the field to the post 5 1/2 lengths. forbes estimates his value could be as high as $50 million all from stud fees generated over the next few years. the oracle of omaha comes to just over $2.3 million. that's what the chairman of a chinese online game develop bid for the chance to dine with buffett as part of his annual auction. they can invite up to seven friends to eat with buffett at a steakhouse. it goes to help the poor and homeless in san francisco. coming up on "worldwide exchange," ge is making good on its exposure to services.

we'll be talking about that and much more, when "worldwide exchange" comes back. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

economists forecast racing the likelihood of a potential rate hike here in 2015 markets could see a big of volatility,

the vix seeing the second straight week of gains. 14.21 down actually today 3.4%. now, u.s. government bonds dropped sharply with a ten-year-old yield of 10 bases points. right now a yeefldield of 2.38%. with comments of mario draghi in particular. let's move on to plans in april sharing-e with capital reaching that goal. let's get out to landon dowdy. >> good morning to you, ge is lending business to the canada pension fund investment board. the report says it included assets of $10 billion could be

announced today. and well fargo's $15 billion of wachovia of 2008. the unit lends money for the buyout and operation of midsize companies. and it's considered the crown jewel of ge capital, blackstone kkr, apollo and aries in running to buy the business. and most of the struggling company's financial operations focus on the industrial moves that comes as the move to curb aggressive lending that could pose a systemic risk. since that announcement ge up more than 6%. and if it clinches this deal it will become one of the lenders to private equity in north america. with the aim of providing acquisition. as for the last of the assets a

report says ares is the front-runner to buy those. ge has already smofltdold most of its assets to wells fargo. and the reports is that the market is the most likely buyer of the u.s. commercial lending business which is worth about $70 billion. wilf. >> landon thank you very much. calpers reportedly plans to cut ties with half of the wall street funds that manages its money. kkr, blackstone and carlyle group. theory are trading and up rather nicely. some 3%. before we go to breaks here are your headlines. deutsche bank shares flying high as the co-ceos and a new ceo is name. >> president obama and angela

merkel discuss the need for reform in bavaria. and american pharoah taking home the triple crown.

stories. shares in deutsche bank have jumped to the top of the german market after the co-ceos anshu jain and jurgen fitsenchen have resigned. and syngenta reports a take overbid for monsanto saying the company has maude made moves to address regulatory concerns. on sunday monsanto said it would pay syngenta an $18 billion breakup fee if they could not get global approval for an acquisition. let's take a look at shares.

how are they performing syngenta down 3%. monsanto up 0.2%. and the brazilian billionaire may be taking shots at lowman for reportedly an offer for the maker of smirnoff and bailey's, as you can see up over 7%. also happening this week is the g-7. president obama has called on global leaders to quote, stand up to russian aggression this as the g-7 meets in the bavarian alps with sanctions against moscow on the agenda. president obama and host german chancellor angela merkel also discussed greece with both sides agreeing on the need for athens to perform. let's get to a report with caroline roth live in bavaria. >> reporter: good morning, seema, rarely do we get any

decisions out of these g-7 meetings. and don't expect anything this time around. i think what president obama is hope for is to get support and a show of unity from european counterparts for issues close to his part-such as stability in greece. why five years into the greek crisis have they not been able to solve that crisis. second of all, crackdown on the advance of isis. thirdly, of course russia. president obama is coming here with a mission. he wants sanctions against russia to be extended. now, of course there are some relationships within the eu and president obama which need a little bit of improvement. let's put it mildly here. of course with angela merkel the german chancellor that relationship has been somewhat fractured over the last two or three years. why? because of spying scandals. it wasn't just one, it was several skyingpying scandals but of course, the two leaders had

important time to do bonding yesterday when the weather was more beautiful than today. they met in a traditional town not too far from here. they had german sausages. they had german beer. they watched german folklore and german dancing. but there is a huge debate out there, as to whether the beer that angela merkel and president obama were drinking contained alcohol or not. now, we've got breaking news for you around ten minutes ago. according to ap, the mayor of that little town where the two leaders were he confirmed those beers were alcohol-free. but you know what i seem to remember that two years ago, president obama, he did in fact have a guinness at the g-8 then. so maybe he's not always so opposed to alcoholic drinks. >> i'm surprised. i think they would drink. >> i'm disappointed. i'm disappointed to hear that. >> that it was alcohol-free. >> maybe a cheap little one to loosen themselves up before the

negotiations negotiations. maybe they did. >> caroline how many beers have you had? >> reporter: none, zero. >> caroline we're going to leave it there. we're free to go and stop into the beers that you haven't been having already. thank you very much. let's ahave a look at european markets in the red. germany and france up 0.5%. and italy and uk holding ton being flat. the dow on the third consecutive week of losses. could this week be the week of turn around? right now, suggesting that stocks could open higher. the dow up 8 points nasdaq up 4. s&p 500 up 0.7%. a lot of focus on the bond market. elevated bond deals not just in the u.s. but here as well the german bond at 8.3%. there's no economic data but look for reports in retail

sales, ppi, consumer sentiment, sears hold veil reports, h & r block, dave & busters. and mcdonald's the final month that the fast food chain will post monthly numbers. let's get to alan at bull's-eye options. a lot of discussion on friday does it raise the likelihood of a september is rate hike. what are your thoughts? >> most importantly, i don't think the market is worried about it. if you look at the markets, friday, it came back essentially unchanged. that data could have knocked the market down. that was interesting. again, we're going to have this rate debate until something happens. most importantly, how has the market reacted, yes, we've had a pullback, 2% off the highs but the vix was actually down on friday.

down 3%. with the market down usually they move in opposite directions. that could be an encouraging sign. >> what's having a bigger effect on u.s. markets what's going on in europe or fundamental data that's coming out of the u.s.? >> well we have a dearth of fundamentals right now. we're at the end of the earning season. we don't start until after the fourth of july holiday. the greece anxiety is there. but each and every thor racing of this greek situation, every year we've seen for the last years have had less and less of an impact. i think we want to focus right now what's happening with rates. rates have bounced as useryou've talked about. but i think the dollar is the focus. people trying to talk the dollar down telling us with internal strength and the selloff has indication that it's over. i think the dollar has a strong

trend behind it. and that's going to help recent stocks and segments that haven't participated in the rally. >> in the retail sales coming out this week where do you expect the dollar to head from here? >> well i'm not going to fight the dollar just as i don't want to fight the stock market. it's a trend until the fundamentals change that's going to continue. right now, i see some opportunities in other areas. you just talked about europe. i think the ewg, the german etf is right now close to support at 28. it's been down. the mere opposite what the s&p has done really in the last year. so i'm looking at that as an opportunity. >> alan knuckman thank you. that's all we've got time for at "worldwide exchange." thank you, i'm wilfred frost. >> i'm seema mody. next up is "squawk box." have a great day. you probably know xerox as the company that's all about printing. but did

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

good morning. a major management shake-up at the deutsche bank. the co-ceos which never works of the european financial powerhouse are quitting investors cheering. and the chain sending the stock up sharply this morning. it's an apple world, though. the tech giant kicking one of the biggest events today. ed products. a shocking new report on how much mobile data the average person will use five years from now. it's monday, june 8th 2014. "squawk box" begins right now. ♪

>> announcer: live from new york where business never sleeps, this is "squawk box." good morning, everybody. and welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernin and andrew ross sorkin. a huge weekend in the world of sports. at the top of the list american pharoah winning the triple crown. it's the first horse to take home that coveted title in nearly four decades. 90,000 people were on hand to witness history. many millions more watching on television in home. a lot of us wishing we could be there. more of the big money between the 3-year-old's accomplishments out there the morning. >> first, to business of the morning. u.s. equity futures. take a look now, you'll see at this point it looks like things are actually flat. we did have that jobs report on credit that came in better than expected. the market wasn't sure thousand react initially to that. you can see with