a very warm welcome to worldwide exchange. i'm wilfred frost. >> i'm seema mody. here's your headlines from around the world. >> hsbc pulls out of key emerging markets and takes an ax to its work force as an aggressive turn around plan. >> european stocks fall. this as former fed president tells cnbc the central bank shouldn't wait too long before hiking rates. >> it would be better for us to start sooner i think and give us

a better chance at being able to do it gradually because if the market gets ahead and the economy gets ahead of us they're going to have to chase rates up and that would not be a good situation. >> chinese indices in the red after inflation slips for the 38th straight month. investors also awaiting a decision over whether to include mainland shares in it's emerging market index. >> greece continues to weigh on global sentiments. we'll hear from the world bank president that says a deal must be made with with athens soon to avoid contagion. >> let's bring you flashes from is hsbc ceo. latest flash is he says that 8,000 staffs will take place in the u.k. but no increase in net

staffing level in hong kong. part of this geographical reshuffle. he said brazil and turkey have limited value to the company where as mexico is on the cusp of a major take off. these are some of the latest flashes coming out of the hsbc meeting. >> there's been tepid reaction to this major restructuring. take a look at shares of hsbc. more on less flat after the len lendor said it would action jobs. speaking in the last half an hour, stewart gulliver said they would move to a leading international bank. this following the decision to cut it by 12% including brazilian and turkish operations. let's get out to jeff and catherine following the action. jeff over to you. >> yeah a very good morning to you. obviously what we have here is a

major announcement from hsbc this morning about how it increases profitability, generates higher returns for shareholders and also reducing it's head count but what we also learned over the last hour as stewart gulliver has been talking is where the bank feels it can get the best return and pointing out turkey and brazil because there are no sacred cows and those are his words. and very interesting within the last 10 to 15 minutes he's focused on mexico as a future golden goose saying this is one marketplace where they're on the cusp of strong growth. >> that would have been a bit of a surprise to quite a few people

because mexico had been one of the businesses that some were speculating might be in line to be down sized itself and of course there have been some historic problems and this is where the allegations of laundering drug money came from but he seems to believe this could be a real future driver for growth for hsbc. what's also interesting as we are here in canary wharf with the big hsbc building in the background are what it's telling us about whether it's committed to the u.k. those job cuts. but none in hong kong. very interesting. >> so the message as we see it really it's about a refocussing on those markets where there is perceived to be opportunity and profit that is mexico. north america still important for the organization and of

course asia where we have seen some talk about helping ramp up investment in asset management businesses. particularly in hong kong where they would take advantage of new chinese wealth. let's send it back to you guys. >> jeff thank you very much. catherine, thank you. let's get an update on what markets are doing today. we got a little bit of softness here. a soft start to the week yesterday in particular because the euro was very strong and that has continued today also off the back of declines in asia. we're looking at the stoxx 600 down 0.34% now. individual markets there they are. it's a pretty broad based continental europe sell off. france and germany down 0.3 themselves. the ftse 100 just below flat. there's unwind in the qe trade that started in the middle of last week. has paused a little bit in the

bond market even though equities continues to decline. you can see the ten year bond below 0.9%. we're looking at 2.36% for the ten year in the u.s. which did push past 2.4 on friday and we have that strong bit of jobs data just back below that level again now. let's look at rates, pretty soft yesterday. down 0.5%. comments from obama which he later said he never made in terms of the dollar being too strong. the euro is the biggest beneficiary up over 1% yesterday. just below flat but still close to that 113 handle. quick look at commodity rates because the oil price softened a little bit last week when we didn't see that cut in opec production. that was what was expected but it did lead to a little bit of softness. 58.3 on wti today.

>> if we only had it as easy as the ecb. these are the words from former philly fed president speaking to louisa he suggested the fed had a lot more on its hands than targeting inflation. listen in. >> i'm jealous. i'd rather see the u.s. have a more narrow mandate than look like the ecb's mandate. that would make the task easier and make monetary policy more effective in doing what monetary policy is actually capable of doing doing. >> let's talk more. happy tuesday to you. >> nice to be here. >> the central bankers have been in the driver's seat so far this year and currencies have been grabbing the spotlight when the dollar was strengthening in the u. s. now on this side of the atlantic

the big concern is the stronger euro and what it means for german exporters. how do you navigate through the volatility and where one should allocate their money. >> you should try not to focus on the short-term of volatility. the euro is a lot weaker than some time ago and for european companies that's still pretty good advantage. so europe still has persistent quite well. >> i want to point our attention to the markets right now. the german dax entered correction territory down about 10% from the high on april 10th. is this in reaction to the strengthening euro or the lingering threat of the default? >> it's the combination of factors. it's the volatility transferring through the equity market which is took awhile. secondly, it might be a little bit the stronger dollar but i

don't think too much so european stocks did strong in the first part of the year and now you have a bit of a set back. >> are markets come place sent overall? >> a little bit come play sen but longer term i think people will expect the impact to be relatively limited but shorter term markets might still be underestimating a little bit the short-term risks. >> how do you play that? is there a way you can protect your portfolio against a greek exit? >> we have had very confident and large overweight positions throughout the year. we have had large equities and japanese equities and real estate. the last few months and weeks we have cut back on that position. we still think in the current environment the low rates, very low income it's very attractive to own stocks but you have to

manage a portfolio and manage volatility. >> i don't think there's one global leader out there that's not voiced their concern around greece. yesterday it was obama and angela merkel -- >> we haven't heard from him. >> i'm talking about major global leaders that are a part of the global conversation but this toe dragging negotiations wean greece and it's international creditors. does it make you want to allocate more capital toward it instead of cyclical. >> no the bigger picture is that the european economy is doing well. we see small improvements and growth. europe is still going to be the surprise factor in the global economy. that's what you want to position for if you select your stocks. in the short-term, yes, greece will remain there. greece will be impacting market volatility and it's a short-term

risk so maybe take a little bit of risk. it's the smart thing to do but still focus mainly on that. >> okay. thank you very much for that. another chat five minutes time. that's the head of multiasset portfolios. there we go. it's coming. now let's have a quick look at the latest flashes from hsbc coming out. the latest one there saying that they would take two years to move from the u.k. after a decision. so some way still to go if they decide to leave the u.k. but some of the other flashes suggesting they're much more focused on other places than the u.k. they also said that the u.s. retail bank will rebrand it's name as well. as you can see hsbc recovered a

little bit. it's up about a quarter of a percent. >> coming up on the show it's a shareholder show down on both sides of the atlantic. tesla ceo gears up to face tough questions on the company's targets. we'll get you a preview after the break. plus while he may have to get creative to convince investors he's worth a 40 million pound pay packet. plus if you're a fan of lobster find out why your dinner may have just got a whole lot more expensive. that story coming up after this break.

athens could reach a deal with creditor ifs they drop some demands. he believes the the two sides are close to an agreement on the primary surface but added there needed to be a positive attitude on alternative proposals. >> meanwhile the greek prime minister met with his german

counter part in berlin. they agreed to confidentiality ahead of the decisions but the meeting had been very helpful. he took the opportunity to appeal to angela merkel to come to greece with a message of unity. >> a speech of hope for greece does not have to be technical. it could simply mark a change. adding new loans on already unsustainable debt on condition of more doses of punitive austerity that diminishing our incomes incomes. who should deliver the speech of hope? the german chancellor. >> meanwhile, the world bank president has told cnbc that a greek deal must get done soon to avoid contagion. let's get out to annetta who is live in frankfurt. >> thank you. we covered a wide range of targets.

just came from the g-7 meeting where they were all discussing topics ranging from the likes of ukraine, climate change terrorism but at the same time he seemed to be quite concerned by what happened in greece but con tear to what we were hearing from some politicians and also from the german government that failure of greece or perhaps an exit of greece from the euro zone wouldn't actually mean a lot of trouble for other countries. he thinks that contagion risk should not be underestimated. take a listen. >> i don't think anyone knows what's really going to happen. i'm convinced that everyone wants to find a solution that will work for them. i am watching very carefully about the possible spill over effects. some of the countries that we

work with directly in eastern europe for example could have direct impact. whose systems are more directly connected for example to the banking system but there could be broader implication. there's always surprises. you think that the market has already calculated in the impact of a problem in greece but you never know. so i would urge everyone at the table to do as much as they can for an agreement good for greece, good for europe and good for the world. they're happening right now. some of my very good friends are involved in those discussions and we wish them well. >> so you say that it's in the interest of europeans to yeah sort of finance the greek state for another round? >> well let me put it this way, i think that there are many many very complicated aspects of

that discussion and sitting on many different discussions. i don't want to you know insert my own opinion here. we just hope they come to an agreement that works for greece but especially one that works for europe and the rest of the global economy. >> one more question on the ukraine because it's like also europe and of course it doesn't look very promising. you're involved in ukraine. the world bank is involved. what do you think will happen there next? >> we have gone to the limit of our capacity to provide support for ukraine. we're working with them on everything from their public financing to providing basic services to their people. we're very impressed with the ukrainian leaders. they made commitments to really

tough reforms. they have gotten them through their legislature and they're really trying to take the steps they can take. we're going to continue to find ways of supporting ukraine because their stability is really porn not just for the region but the entire world. on the one hand it looks very tough. on the other hand we're all really encouraged by the commitment in the determination of ukrainian leaders. >> the president of the world bank is making the case also in a different chunk of the interview for more corporation between nations. not only on the g-7 level but also when talking about the middle east and the problems of instability in that region. he's about to travel to egypt and i also asked him when we

spoke about the aftermath of the arab spring and all of that instability in the region and he's saying they underestimated the effect or misjudged the effect of the arab spring and he's urging a dial up between the nations in that region in order to install more political participation also between those people living there. you see i think the world bank interestingly is very involved all across the world of course but especially there because it's about institution building but also when it comes to the spill over effects to regions like europe he was talking about the refugee problem which is not only a european problem. it's also taking place in asia and it's another area where he is actually afraid that this could raise more tensions from political problems which can't

get sold. with that first of all back to you. we'll hear more from him the next hour. >> thank you so much. a few factors are weighing on chinese stocks today. they deflated coming in at 1.2% in may. this is the slowest reading since january and well below beijing's 3% target. investors waiting to hear if the msci will include chinese mainland shares in it's he emerging market index. the decision could see billions of dollars flow into chinese he inquiries fuelling the bull run. my question to you is is there still sustained appetite for chinese stocks despite the massive bull run it's already been on. >> we had the complete

divergence. it's a clear examples that fundamentals not only drive stock markets and behavioral factors and for the chinese themselves with lower rates on the accounts than they were used to and also with the property market being a lot less attractive than in the past. the equity market is the alternative for them and money is moving through the equity market. at the same time elevations are extremely high right now and some are comparable to what we have seen in the late 90s in developed markets. >> the shen zen is at 61 times earnings. that's up from 20 a year ago. it's massive. >> it feels like a bubble but like every bubble it can always go further and if you look at the chinese authorities like

this they might also use that tool and bring some more companies to the market and the chinese people are really momentum investors. they're much more momentum investors than we are in emerging markets. >> are they a good bet or are they going to struggle like they did in may 2014. >> i think the only attractive element is elevation outside china but fundamentals are weak. chinese economy is slowing. the import numbers earlier this week. and also the trouble in brazil. maybe the possibility of the oil price going south again. now we don't think it's the right time to be in emerging markets equities. >> 80% of the turnover in the shanghai stock market has been generated by retail investors. now the regulators are trying to

clamp down on margin lending. is that another reason the bull run can lose steam? >> it could. i'm not going to predict it can lose steam now. it often goes further than you think. i wouldn't step into the rally right now. it doesn't say it will stop here. >> does the u.s. market look more attractive? >> for completely different reasons but if you want to go for the opportunities we believe they are in japan and in europe. >> we'll leave it there. head of multiasset portfolios. thank you for joining us here on worldwide exchange. all right let's talk tech. wilfred's favorite subject. >> well i do enjoy am there's somebody else in the room that enjoys it a bit more. >> app ael has taken the wraps of its new streaming music

service at its worldwide developer's conference. it will be available on june 30th and costs $9.99 a month or $14.99 for a family plan. it includes content and internet radio stations. also updating major upgrades to maps to move in a more proactive suri to learn a users behavior. price action it's up about a third of a percent. bigger picture here up 21% this year. >> shares in pandora media closed down nearly 4% as apple announced its music streaming service. shares hit an all time high in july 2014 but moved lower since then. open based pandora provides online radio services and attempts to predict the users music preference by using algorithms. so is it a real threat or has it left it too late to make that

impact? get in touch with us here worldwide@cnbc.com or cnbcwex. >> i was expecting more. they did not deliver. >> it does seem like the announcementunderwhelmed but they usually get these things right. i think they'll pull it together. >> we'll see. i enjoyed the ceo of spotify's launch on twitter he said oh okay. more on the financial volatility gripping turkish markets coming up after this break.

>> hsbc has an aggressive turn around plan. >> european stocks hitting a one month low following a weak return in the u.s. this as former fed philly president tells cnbc the central bank should not wait too long before hiking rates. >> it would be better for us to start sooner and give us a better chance at being able to do it gradually because if the markets get ahead and the

economy gets ahead of us then we're going to have -- they're going to have to chase rates up and that would not be a good situation. >> in the last 30 minutes, greece submits a reform proposal to the eu to unlock key funds. we'll hear from the world bank president that says a deal must be made with athens soon to avoid contagion. >> chinese indices slump after it slips for the 38th straight month. also a decision over whether to include mainland shares in it's em index. >> let's take a look at european markets. the stocks continue to fall to the down side. now flirting with 11,000. just a month ago we were at 12,000 so a significant move to the down side in the german markets. it's trading in correction territory down about 10% from the highs hit in april and in

today's session we're down about .6%. remember the dark shadow being cast over by greece. greek fears is a pig concern. athens decided to bundle it's loan repayment and to one payment at the end of june. the question is will they make it by that deadline. >> let's have a quick look at bonds. this sort of european qe related sell off hasn't included bonds this week as much as it did last week. so the german ten year is sitting just below 0.9% as we look at things today. the guilt is just above 2% and the 10 year note in the u.s. which just crossed 2.4 is at 2.36. >> let's talk about turkey. the currency the lira is stabilizing against the dollar after slumping in reaction to the out tps come of the country's election. >> meanwhile the political and economic uncertainty could effect the country's credit rating. let's get more on that story

with hadley who has the latest from istanbul. >> what we have seen is a great deal of volatility in the market. we saw the lira yesterday as well but it seems to be stabilizing at this point and they expect this period of uncertainty to con at least in the short-term. that's of course because this new government they're going to have to go toward a general election. essentially what we're seeing on the ground here they have been in power for 13 years and don't expect them to go quitely into the night. what they're looking to do is get in bed either with the turkish nationalist or kurdish nationalist. a great deal we're expecting to see over the next weeks. we could get a better idea of the coalition going forward.

but this is about maintaining some sort of stability in terms of keeping the interior ministry as well as the interior ministry under the party because this is a party under the cloud of an investigation in the sense at a they have been looked at in terms of fraud so for them it's important to maintain those ministries and for the other members of the government going forward it's important for them not only to make sure they had a government working in the next 45 days but they also should be very interested not to play into this theme and that is that coalition parties don't work as well. a lot at stake. it's going to be anybody's guess as to what this coalition ends up looking like. >> thank you so much. >> elsewhere the president has retained a limb majority in the

lower house of congress despite losing seats in a midterm election over the weekend. voting was marred by violence as several candidates were killed and others forced to drop out of the race. he became the first independent elected goff elected governor in mexico running on an anticorruption platform. joining us is president and founder at union group. a very good morning to you. let's kick off with mexico. in the last half an hour the hsbc ceo said mexico is on the cusp of a major take off. do you agree with them? >> yes, absolutely. the elections are always widely followed because elections are always very eventful in mexico and this one can't escape the rule. we had a former mayor, a lot of violence, always a very messy process. however the results were a non-event.

the current president will be able to continue performing the big reforms that we believe are good for mexican economy and bottom line mexico will grow this year 2% which for a large economy of this size is a very respectable growth and it's doing some of this porn structural changes that probably will see an important effect two to three years from now so it's definitely one of the latin american economies doing the best and with a very good interaction with a u.s. economy. >> but how much do they impact the mexican economy in the long-term. >> they follow the economy. there's a very strong interaction between both of them so they work together on a north american economy that is recovering. they are complimentary and they work both on policy and currency organizations in order to have the strongest possible growth in a complimentary way. >> let's move on and talk about

brazil. how long before we can turn and say they have been through the worst of it. >> given detail in every industry. the worst of all in addition with all the big companies there in big corruption scandals. so what do you do when you have such a bad situation? you have to restore credibility and what the government is doing is focussing on the most visible targets to restore credibility. so all the policies are cutting government spending increasing interest rates in order to fight these two big targets. of course that's working in terms of fighting better credibility however that's a very big price to pay in the

short-term but this is deterring the economy and slowing that process. >> you mentioned corruption in the middle there. previously that's been focused o on the government and that sort of thing. how much fall out is there in the fifa scandal and relating to that? brazilian soccer officials are very much caught up in it. >> football is a very important topic so we feel very badly about what's period happening in fifa and particularly in the context of the world cup in brazil. very strong investigation now that dripped down from the fifa into local award of that brazil cup and construction contracts so it's going to be an additional corruption scandal now. the results of that investigation into local brazilian football and organization of the world cup is not something that brazil needs right now but it's probably going to happen. >> he's right now visiting several latin american countries.

do you think latin america at the end of the day needs china and it's capital to close it's infrastructure gap. >> right now yes. >> but is there concern that countries like venezuela are overrelying on the likes of china? they already borrowed 50 beside in capital from the country. >> of course but that's their only choice. could not get in touch with financing and china came with a $5 billion loan. argentina was in default and china came with a currency swap that allowed them to survive. china is replacing the traditional financial areas and that's giving them very important strategic role to play so it's a realignment of latin american access to financing that is probably going to come

with better relationships between china and south america in the coming years. >> use the support if you're getting it. we'll leave it there. president and founder at union group. pleasure to have you on. >> thank you. >> coming up wpp boss may have to get creative to convince investors he is worth a 40 million pound pay packet. all of those details coming up. worldwide exchange. we're back in two minutes. you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck.

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welcome back. deutsche bank headquaters were searched by authorities this morning. the company refused to decline. this followed moves yesterday when they announced a new ceo but news this morning that their headquaters were searched by authorities earlier this morning. the company declined to comment. barrack obama accused vladimir putin in damaging russia's economy to recreate the glories of the soviet empire. he convinced european leaders to

continue sanctions on russia. >> we need to keep pushing russia to abide by the terms of the agreement. we need to continue to support and encourage ukraine to meet it's obligations that until that's completed sanctions remain in place. >> meanwhile meetings are critical to solving climate change and global terrorism. let's get out to frankfurt with more on that. >> i just met him in a hotel here in frankfurt and spoke to him about his experience at that g-7 leaders summit and he was pretty much impressed of course by the setting but also the results of that meeting because he was stressing that it makes sense that everyone comes to the

table and speaks by telephone or teleconference. so look at what he had to say about the major take aways from the g-7 leaders meeting. >> these are critically important times for leaders in a relaxed setting to look each other in the eye and tackle the most difficult questions. earlier when g-7 leaders were by themselves they tackled every tough political issue you can imagine and with us the issues were also extremely tough terrorism. in iraq prime minister was talking ability his very difficult situation with the islamic state and of course tunisia which just had the terrorist bombing at their museum is one of the success stories and everything from climate change to the pandemics so we felt it was extremely

useful and especially this g-7 where chancellor merkel was so focused on specific outcomes. >> you're talking about that whole range of topics but how much commitment is there also from the g-7 nations to really change particular climate goal or also the hunger issue in the world. >> all of the nations talk specifically about things things they have been doing. and i think there was a great unity around climate change in the sense that everyone is pointing to the cup 21 in paris. of course the president has been a huge champion now and he has really taken over personal leadership in a way that's very encouraging. of course chancellor merkel has been one of the strongest on reaching an agreement: it moves north to south by 2020.

in many ways it was given to us and the imf. we work so closely on so many issues this is one in which we think we can make progress. if we make progress by october in finding a path toward that 100 billion we'll get an agreement and when we get an agreement we'll be able to take off in terms of fighting climate change in a way we wouldn't otherwise. >> is it harder to raise money in a developed world in a world where most of the nations want to balance their budges or austerity. >> there's no question that official development assistance the sort of grant aid foreign assistance has been restricted and hasn't grown much over the last four or five years. it's understandable. we have gone through a really difficult crisis. some countries have increased and i think we should all salute the united kingdom.

in spite of very difficult financial circumstances they have gotten to the pledge of 0.7 of gross national income. they have done a great job. germany has also stepped up some this year. but many countries face such difficult situations at home that we won't be able to increase that kind of foreign assistance. >> it seems at least that this g-7 summit has yielded some like results which you can actually really touch and feel the 2% goal here. angela merkel managed to again put herself in the position as the chancellor of germany actually taking care of the climate. she was hugely criticized in not doing so for some years but now she reengaged for topic ahead of the important summit coming up later this year. another big topic also is the big investment gap in

infrastructure. the asia the gap there extremely excited despite the pact that they have competition there from the aiib now which was of course set up by china. they're still saying there's even more business than before despite the competition in the market. talking about a totally different subject i'm going to try to talk to deutsche bank about the flashes we're seeing that their headquaters are being raided by police. we had that kind of occasion two or three years ago when the police were searching for documentation of an on going court case of investigation in wrong doing of the banks when it comes to tax evasion here in germany. i try to find out that here today and will inform you about any news i can get from them. with that back to you. >> thank you for that.

one other news that's just breaking as well airbus relating to a story of course we're following yesterday. they're saying they do expect to get authorization to resume test flight for the a 400 m and following that the chairman saying they expect to complete delivery of the full program of a-400 m flight aircrafts this year. that's following news yesterday to the contrary. >> let's talk autos. fiat chrysler's ceo is reaching out to hedge funs and activist investors to persuade gm to agree to a merger. the wall street journal says he's been heartened by recent successes of activists at gm. in march they reached a deal over the balance sheet and governance and said it would launch a $5 billion buy back to avoid a proxy fight. gm is holding it's annual shareholders meeting today and you can see price action in both shares. down about .4%. we should point out that two

weeks back he said he expects a mega auto deal merger to take place by 2018. i pose that question to the executive vice chairman of ford as to whether he sees some mna in the space and he said maybe but he's not sure if it will be between ford and fiat chrysler. >> tesla has its shareholder meeting today. the ceo isn't expected to face much criticism but he may try to reassure investors the company is on track to reach several goals. tesla rose 3% on monday. even as former gm vice chairman criticized the company on cnbc saying shares were overvalued. you can see that move up 2.9%. >> there could be a board room battle over at wpp. the global advertising giant also holds it's annual meeting this afternoon with the ceo's pay likely to come under scrutiny. he received 40 million pounds.

at the last share hold meeting more than 18% voted against the company's policy of executive pay. he previously faced criticism from shareholders over his compensation. >> he has. at the top we said a board room battle. there's a long way from that. there's a vote coming up on the pay which i would think would go as it has in past years: this year standard life has been the vocal shareholder on this front. i do think in general it was quite frustrating. performance related pay should be welcome. they give flexibility to a down side on the bad year and give incentives to workers on the upside and the pay packet as large as it is in absolute terms the basale salary is 1.1 million. this is based on long-term performance and the share price

and earnings met those goals so in that sense i think it's understandable. the share price is up 60% over the past five years compared to the ftse 100 up less than 30%. so he has performed. that's why he's being paid well. >> maybe it's not the fact that it is performance driven. it's just 43 million pounds. it's a big number to digest. >> it is. but he took over the company when the market cap was 1 million pounds. it's now 20 billion pounds and when you factor in that's in and consider a 40 million pay packet to keep the hand at the top of a 20 billion pound ship it's not that big on that respect and you have to take this into mind. he doesn't have a huge equity stake in the company. and the only reason he stays there every year is because of his annual pay. shareholders will be looking at that and thinking is it worth us risks for a second the main man that built this company leaving.

despite the press interest they'll vote and he'll get his pay and we'll move on. >> we'll see what happens. another story catching our eye today, apple has taken the wraps off of its new music streaming service at its world developers conference. apple music will be available and cost $9.99 a month. $14.99 for a family plan that can be shared with up to six people. it includes con ten and internet radio stations. apple updating ios with major updates from maps and a more proactive suri. it will let users view two apps at the same time on a split screen and in some of the blogs we're talking about how that could be an opportunity for the device going forward. apple now shares trading flat up about 21% this year. >> shares in pandora media closed down nearly 4% as am was announcing it's own service for music streaming. the shares hit a high in july 2014 but moved lower since then

with the company failing to have profitable earnings last year. they provide online radio services that attempt to predict music preferences by using algorithms. >> so is apple's push a ale threat to spotify and pandora's business? join the conversation here on worldwide exchange. e-mail us or tweet us @cnbcwex. it's all about apple versus spotify. they're the ones dominating the service. they have 60 million users. 50 million paid subscribers so how does apple scale it's product while also dealing with stiff competition and differentiate it's offering going forward because right now based on what period apple announced yesterday not much of a game changer and not different than what spotify has on the market. >> is it too little too late. i'm a slow mover on this.

>> very slow. you're like a turtle. i will join music streaming service in six years after everyone including my mom uses it. >> so that's why it might be too little too late but on the flip side i have a big apple itunes library and their service is going to allow you to incorporate all of that. in that sense it's the same running theme about are you an apple user do you want to stick with the same ecosystem for everything? we had one tweet in from that said even with a slow opening in the long run apple will literally take over the world. that's a big exaggeration of this theme but i wonder whether that commitment by apple users that have iphones and macs and ipads will go back to the system. >> it comes down to brand equity. can it use it's influential brand to dominate the music streamer space despite not being the first mover and despite not offering the same quality of options. >> but on that topic with the

ecosystem interesting updates on ios and suri fronts and apple maps. maps lagged behind google maps for quite sometimes. >> i was also particularly interested in the social media arm of the music business. apple connect that allows users to share and communicate with the artists that we're listening to. it creates a very personalized music experience. taylor swift. >> or elton john. >> still to come on the show stay tuned to find out which countries are best placed to deal with the first rate hike and plenty more on how to navigate rising rates. the debate continues. we're back in two minutes.

implths hsbc pulls out of key emerging markets and accesses around 15,000 staff as part of an aggressive turn around plan. >> reports that headquaters have been searched by authorities. the lender declining to comment. >> did apple miss a beat? the tech giant unveiled a music streaming platform in an overhaul of its itunes service but it fails to strike a tone with investors.

>> u.s. futures point to a negative open with european equities in the red. >> be better for us to start some what sooner and give us a better chance at being able to do it gradually because if the markets get ahead and the economy gets ahead of us then they're going to have to chase rates and that would not be a good sif wagstuation. >> we're just getting confirmation of gdp numbers out of europe. no changes to what was forecast. 1% the number year on year. 0.4% quarter on quarter. this is the q-1 gdp euro zone growth. let's have a look at rates off the back of that. the euro is flat. just below 113. that follows a very strong day yesterday for the euro being the

main beneficiary of a weak u.s. dollar. >> yesterday was a down day for u.s. stocks. not a big move to the down side but enough to bring the do you into negativer the story. suggesting a lower move by around 10 points in premarket trade. being weighed down by shares of am. down about 9 in premarket. showing a pit of green up 1.5 points in premarket trade. let's take a look at european markets because we have been flirting with one month lows. a lot of that having to do with the upward move in the euro although it has stabilize around 112 at this moment. the xetra dax the big loser down 1%. of course germany the export power house has been impacted by the strengthening euro we have been seeing. xetra dax below 11,000. it's trading at 10,937. the question is how low can it go. >> let's have a look at bonds

because they haven't been quite as involved in the european qe related unwind this week as last week. you can see the ten year german bond below 0.9%. having flirted on thursday last week with 1%. the u.s. ten year also just seeing the yield drop a little bit over the last couple of days. 2.36%. let's also have a quick look in asian markets. shanghai down just under .5%. hong kong down 1%. it's part of the reason for the declines in europe as well. >> mow to our top story. tepid reaction to a major restructuring at europe's largest bank. shares more or less flat after the lender said it would ax around 50,000 jobs as part of a $5 billion a year cost savings program. ceo said hsbc would move from

the quote world's local bank to a leading international bank. this following the decision to cut it's global branch count by 12% including the disposal of its brazilian and turkish operations. let's get out to jeff and catherine who are both live following all the latest developments. jeff starting with you. >> yeah very good morning to you. there may be a couple of issues here. one, most of what's been announced today was leaked already to the media so we pretty much knew what was coming and there hasn't really been anything outstanding that wasn't already in the public domain and i guess the second issue may be that there's nothing so transformational that it's going to change the business molleddel so

significantly. he made a major strategy announcement and a lot of analysts don't think he managed to really deliver on that so i think a lot of people watching this announcement today and thinking all well and good but we need to see how this actually emerges into the market over the fullness of time. we spoke with j mann earlier here. john mann of course the labor mp on the treasury select committee in the last parliament engaged in several bruising rounds with bankers. not least with mr. gulliver and mr. flint that head up the organization. let's just listen to his reaction to today's announcement. >> it's name has been good over the years. of course it's been tarnished and particularly overly tarnished in the next year unnecessarily in the way in which it's done business. it already made it's decision whether it stays in the u.k. or not. >> but i wonder catherine if

putting aside what he had to say, whether we do a disservice when it comes to the restructuring of operations and what we've already heard about operations in the americas. >> well jeff it's very difficult isn't it? because mr. gull veriver says it's transformational. but he's protesting a little much and i don't think that the market feels it's genuinely as transformational and he has already had one go at a root and branch view of the bank which hasn't worked out to expectations. still seeing disappointing return in equity and there's going to be a lot of people what that's are going to be worried over the next few months as the job cuts come through too. >> just as we wrap up here it wasn't all doom and gloom and cuts and disposals. stewart did say they're seeing a

hot of strength in the mexican operations at the moment and they believe that they are on the cusp of further profit out of that business. i'll send it back to you for the time being from here. >> thank you, jeff. now switching focus to another bank. shares are moving lower amid reports that the german banks headquaters was searched by authorities earlier. let's get straight out to annette at a with more on the story. you can see the stock down 1.5%. >> yes. i think those flashes are reminding investors that the legal problems the bank is having are still there despite the fact that we have that management change management change we were talking about yesterday. we have flashes that there were more than 30 policemen, 10 police cars standing in front of the bank. going into the bank.

looking for documents inside the bank. of course they don't do that if they don't have a severe or serious reason for actually raiding a bank. so here it seems to be that they came because of incidents or procedures at their -- yeah -- at the bank they're owning since 2010. they took over once one of the biggest banks in germany because it fell prey to the financial crisis speculation. interesting just yesterday and the day before the former management was sitting in front of a judge and they were hearing the final verdict of wrong doing what lead them to almost

collapse so we don know yet what was really the case to reiterate there was a big raid here early this morning. it was related to the bank they bought in 2009 and took over in 2010. for now it's no comment from the bank. with that back to you. >> it's been a busy week. for now, thank you so much. apple has taken the wraps off of its new streaming music service at its worldwide developers conference. apple music will be available on june 30th and cost $9.99 a month and $14.99 for a family plan shared with up to 6 people. it includes cure rated content and internet radio stations. also updating ios with major upgrades to maps and siri that can learn a users behavior.

it will let users view two apps at the same time on a split screen. shares did move lower after that announcement and shares down .2% in frankfurt. >> although shares in pandora sharply lower. down 4%. one of the main rivals in terms of streaming music after apple announcing their new one. also spotify the other big rival. so is apple's push into music streaming a real threat for the likes of spotify and pandora or has it left all of this a little too late. get in touch with us worldwide@cnbc.com or via twitter. our personal handles are on the screen as well. >> your take is its a bit late isn't it? >> i don't think it's a game changer but i also have to say i think this is the first time we're seeing beats, the mega acquisition it made we're now trying to see the fruits of the

labor come to market here. >> we'll have to watch and see if this works. i'm going to download it and see what's happening but i'm not saying that i'm representative of people around the world. >> you're not a music streaming consumer. >> how do you listen to music? you download? >> yeah but now i can do it and stick to the ecosystem i like. >> yeah. people m peopleare saying the same thing. >> stay tune to cnbc later, u.s. squawk box will be discussing greece and the outlook for the italian economy with italy's finance minister pier padoan at 8:30 a.m. eastern.

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hsbc axed 50,000 jobs as part of a turn around plan. they're hoping investors can persuade gm to a merger and chiptole will start offering entry level workers some of the same benefits it gives salary employees. >> let's get you a run down on what to watch this trading day. job openings and labor turnover

survey could provide clues on when the fed will raise rates. that's at 10:00 a.m. eastern along side april wholesale figures. plus lululemon. they boosted expectations for a fed rate hike this year. speaking with louisa in london former philly fed president said that sooner and more gradually is the best way to raise rates. >> it's about the data. the fed would clearly prefer to raise rates slowly and gradually. that's a fine goal. but at the end of the data data may or may not allow them to do that. the longer they wait to begin rate hikes the greater risk they have of having to raise rates faster and that could be very disruptive or certainly volatility creating so it would be better for us to start some what sooner i think and give us a better chance at being able to do it gradually because if the

markets get ahead then they're going to have to chase rates up and that would not be a good situation. >> the bird fight continues. hawks versus doves. let's discuss with the senior european economists. pleasure to have you on this morning. let's talk about the jobs number. the big takeaway 280,000 which did come in higher than economists were expecting but we may have quantity but we still don't have quality. a lack of wage growth. labor participation rates still well below what we were expecting. when do we see a meaningful change in these numbers? >> there's a gradual improvement going on and the u.s. economy still very much fined by the labor department. we're lacking the hard data which is still disappointing. so i think it's fair that the debate is still out this. at what point do they start and what pace do we accelerate the

race. >> the number today retail sales tomorrow. approximate these numbers surprise to the upside could we see the shorter end two year note yield get closer to the 10 year and 30 year and if so does that signal a potential fed tightening coming soon? >> we're looking for a fairly strong number for tomorrow for the retail sales and it's on the expectation that the economy is bouncing back after the very weak first quarter. now we've had disappointments on this before but i think if we get a strong number tomorrow that will confirm that we are on track to further improvement and we have a first rate hike in september. >> when we start to see that tightening, out tps side of the u.s. across the rest of the world who is best placed to deal with a rising rate environment in the u.s.? >> well we looked at the macro economic situation and we have been expecting u.s. to pick up slack on global trade for europe for some time. that's been very disappointing. so global trade remains very

suppressed and this morning we'll have the european gdp data that still shows that consumption is the real driver of growth in europe but as u.s. that would be a very good rebalancing of the royal economy at the moment because asia and china remains very weak in terms of global demand. >> so that would be a good rebalancing because the us. growth will have to have picked up in order to then get that rate rise or because rate rises themselves will be good for rebalancing? >> well i'm thinking more from the economic point of view that it's a sign that the u.s. economy is strong enough to sustain higher rates and that's a confirmation that we are moving out of the worst of the crisis and we have to consider that in any cycle we should have rising rates. that's a sign of improvement and we're worried if we don't get these we are prolonging the whole period.

>> that retail sales number out tomorrow coming after the blowout auto sales number last week indicating that the consumer is spending. if that retail sales number comes in higher than expect sd squun still still on the stable? >> in terms of communication we have moved away quite clearly from june. they want to see strengthening on a broader scale but it's also true. we have seen car sales doing well and we think the car sales market is ahead of europe. >> do you subscribe to it being a means of tightening for the fed as well. >> it is so that will weigh in as a negative at what point they start to raise rates. >> when you look at exports they

make up 14% of u.s.gdp. so the stronger dollar has an impact on the economy. >> it does. but it does effect monetary conditions in general in the same way as the tightening. so it's true and i think in general also for your area at the moment we have a domestic demand lead recovery. ecb did qe and we got a weaker euro and that would boost exports and there by get the growth coming through. we are actually a little concerned that some of the trade. >> thank you for breaking it down with us. >> just going to bring you some flashes coming out of deutsche

bank. they confirmed their offices in frankfurt were searched. they say the authorities were looking for evidence concerning klines and they say that none of their employees were accused of any wrong doing. of course shares off 1.5% off the back of the news that they were searched by authorities this morning. >> still to come on the show the turkish lira at a 24 year low in the aftermath of the country's parliamentary elections. could the political uncertainty put the country's credit rating at risk? we're going to discuss that coming up next.

>> let's get out to hadley with the latest from istanbul. >> what we have on the ground here are more questions about what a coalition government is going to look like. u.s. officials said earlier their position on syria isn't going to change.

and the u.s. hasn't wanted to play along. they say he hasn't kept the promises he made for the fight against the islamic state but what's going to be interesting to see is whether this coalition government is likely to change the policy on syria and change the policy on what this country is willing to do against the islamic state because at least when it comes to the curdish nationalists they're less bullish on doing something in syria and that could be a game changer in terms of u.s. policy in the region. a lot of things up in the air right now. a lot of jock i canning for political positioning happening and we'll have to wait and see what this coalition is going to end up looking like. >> thank you very much for that. >> let's take a look at u.s. futures on this tuesday morning and show you what we can expect in today's trade. premarkets suggesting a lower open. dow down 15 points in premarket trade. keep an eye on shares of am of

moving lower in response to what it unveiled. s&p 500 also indicating a lower open by three points. in yesterday's trade telecom and transports the two lagging sectors. we're back in two minutes.

5:30 a.m. in new york. 10:30 here in london. >> here are your headlines from around the world. >> no longer the world's local bank. hsbc pulls out of key emerging markets and axes 50,000 staff as part of an aggressive turn around plan. >> did apple miss a beat? they unveil a music streaming platform but fails to strike a tone with investors. >> fiat chrysler ceo puts his foot on the pedal for a gm merger. they're pushing the auto maker for a tie up ahead of the annual shareholder meeting. >> focussing on key jobs datas for clues after the dow raises the year's gain. former philly fed president tells cnbc the central bank should not wait too long before

moving. >> it would be better for us to start some what sooner i think and give us a better chance at being able to do it gradually. because if the markets get ahead and the economy gets ahead of us then we're going to have to chase rates up and that would not be a good situation. >> let's have an update in on european markets which are in the red as you can see. quite sharp declines for the dax which has fallen below 11,000. it's down 1.3%. france itself is down 0.9%. of course this follows declines yesterday also in europe and those continuing today. in part as well because it was a very weak session in asia. the ftse 100 down 0.3% doing relatively better than continental europe. >> lululemon with earnings

higher than expected. the street estimate was for 33 cents. it says the second quarter 2015 revenue to $445 million. it also sees 2015 revenue 2.0 billion versus 2.05 billion in the fiscal year of 2015. there you go lululemon shares down 5.4%. same store sales down 1%. that might be what the street is focussing on at this moment. one of the underperformers now down about 5% in today's trade. >> now let's get back to our top story. there's been a tepid reaction to a major restructuring at europe's largest bank. shares flat after the lender said it would ax around 50,000 jobs as part of a $5 billion a year cost saving program. the ceo said hsbc would move from the quote world's local bank to a leading international bank. this following the decision to

cut it's global branch count by 12% including the disposal of its brazilian and turkish operations. let's get out to jeff and catherine live outside headquaters in london jeff. >> yeah i think the market reaction wilfred probably down to the fact that this looks evolutionary rather than revolutionary. we knew the disposals were coming so no great surprise there. if there's been anything catherine here that the market hadn't anticipated perhaps it was the higher number on the job prices. >> and i suppose that reaffirmation of the importance of the mexico business is probably a stronger endorsement of mexico than some had been anticipating. it definitely looks no matter how much the executive is insisting this is transformational it seems like he is protesting too much particularly given his own history with as you said evolutionary rather than revolutionary change. >> and the key of course we

wanted to hear about is where is hsbc going to move it's headquaters to? this story has played out large in the media over the last 12 months given the size of the levey that the bank is now being forced to pay here shareholders have been saying well this is unnecessary. you shouldn't have this drag on profitability and given 80% of the profits of this bank come from outside of the u.k. maybe it's time to go but we didn't really break any new ground on the subject. >> we did have a bit more clarity on that mr. gulliver did think it's about a 1.3 or 1.4% drag on return in equity and from various regulatory issues so i suppose hsbc could argue that their return in equity would be getting closer to the 10% target. they said it themselves and if they were able to bring that back and particularly get that by moving on to the u.k. >> back to you guys from canary

wharf here where the market is still a little hum over the announcement. >> i want to bring you up to speed on lululemon shares are moving lower. reporting earnings of 34 cents. a bit higher than what the street was expecting but they seem to be focused on the same store sales number or comparable numbers. comparable store sales for the first quarter decreased by 1% on a con stan dollar basis. for the full fiscal 2015 the company expects total comparable sales in the mid single digits which was slightly below what the street was expecting. consumer net revenue increased 27%. that's a metric that retail analysts watch. lululemon has been under pressure as of late. down by 5.1% in frankfurt. a stock to watch in today's

trade. >> gm and tesla both meeting with their shareholders hater today. is a board room battle on the agenda? we bring the details after the short break. 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.

welcome back. just want to update you on the

european equity trade. we're in the red across the board. this follows a sharp decline yesterday. yesterday's decline coming off the back of a strong euro which was bad for european equities and throughout today things have gathderred a little bit more pace to the down side. germany was down 1.2% but the u.k. which held up relatively well earlier is down itself 0.4%. the euro giving up a bit of ground today but follows a 1% climb yesterday. we're at 11271. >> there's that piece of economic data investors are investing. gdp up to 0.4% quarter over quarter thanks to a pick up in imimportants over government spending. but the big question is if the euro continues to strengthen from here will that derail the euro zone's economic recovery and what does that mean for european equities going forward. >> absolutely. the rally we have seen since -- well certainly the last six weeks but even since the middle

of last week is significant but in the grand scheme of things compared to 12 months ago the euro significantly lower and that will still be enough to keep the economy going and that's really the sentiment that mario draghi echoed this time last week. he was saying we are a much better position. that sparked a bit of the volatility sense because some small recoveries being seen as more reasonable. amazing to see as well this all follows a strong jobs print on friday for the u.s. and it's the euro strengthening this week and not the dollar. >> i know last week mario draghi reiterated the fact that despite the data they will not scale back on support before september of 2016 but that's going to be a discussion they have if the data continues to surprise to the upside we had that inflation number much higher than expected and we're seeing higher growth in europe than on the other side of the atlantic. >> but i don't think we're anywhere near qe ending which is what he was committed to hastlast

implying that bond yields had moved a little too far. it's interesting how it's europe driving financial markets and the fed is closer to a rate hike and i wonder whether that happens as soon as it does happen whether the focus comes back on u.s. bond markets leading global financial markets rather than german. >> european stocks were first to sell off in the month of may and now we're looking at the u.s. the dow industrial trading lower on the year. was holding on to around 2% in may. the situation changing but that has to do with the active debate around fed policy. >> just quickly before we move on to other stories, final look at the u.s. futures ahead of

today's trade which is taking a lead from a weak asian trade and then, indeed a weak european trade. now that was yesterday's trade and now there we go futures for today all pointing to the red with the dow expected to open down 31 points. chipotle will start offering entry level workers the same salaries as full time employees. this includes reimbursement for college tuitions. the new perks take effect in the first of july. the move is aimed at attracting more qualified workers and to give them the opportunity to advance. >> your surf and turf dinner just got a bit more expensive. lobster prices are rising with some wholesalers selling them for $16 a pound versus $12 this time last year. after the unusually cold temperatures water temperatures in new england haven't warmed up enough for lobsters to come close to shore.

prices could stabilize in july and august but keep an eye on the lobster prices. >> indeed. prices might go up. now a truck carrying some 2200 baby pigs overturned in ohio sending hundreds of the pigs running into nearby woods. multiple agencies were called to the scenes to help round up the pigs. some of the animals did die in the crash but the exact numbers have not been released. >> i always wanted to own a pig when i was younger. >> a pig? >> i always thought they were cute. >> but don't they stink. >> babies stink too but you love them anyways. >> sure you do. >> wilfred is ready to have a baby. let's get your headlines before we head to break. europe's largest bank is to ax 50,000 jobs as part of the turn around plan. they're hoping activist investors can persuade gm to agree to a merger and lululemon

beat the street 34 cents a share. more on worldwide exchange coming up.

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. a precursor toward a stock split as big as 3 to one. they'll also give details about international expansion mans and after they opposed comcast and time warner cables deal we'll see if this weighs on m&a activity in the future but price action shares up 45% over the past 1 year but so far in 2015 the stock up about 85%. >> it's not the only big shareholder meeting today. of course we had a big meeting from hsbc in london and also gm's and teslas on the gm front.

fiat chrysler ceo is reaching out to hedge funds and activist investors to try to persuade gm to agree to a merger. the wall street journal says he has been heartened by recent successes of activists at gm. in the report gm holds it's annual shareholders meeting later today. tesla also holds it's shareholder meeting. the ceo isn't expected to face much criticism but may try to reassure investors the company is on track to meet several goals including the launch of this model x later in the summer. now phil joins us on the phone in chicago with what to expect from these meetings. >> wilfred i think the most interesting thing that's going to come out of the general motors annual meeting is during the question and answer session whether the ceo is asked about the efforts of chrysler ceo to prod general motors toward some type of merger consolidation.

my gut says that even if that question does come up that mary bara will say as she has said all along that general motors is not interested in a merger right now with chrysler. it is clear that activists have been prodding general motors in the past to do more to return make a greater return to investors and shareholders however it's unclear whether or not their efforts to push for a merger would be successful. that question may come up today during the question and answer session. as for tesla, elon musk most of his focus is on the critical next 5 to 6 months as the company begins the roll out of the model x. the next model from the company. we expect to hear some type of an update from him in terms of where the company is in executing the first models rolling to deliveries to customers and again that's expected by the third quarter. that annual meeting by the way

happens after the bell later today in california. guys, back to you. >> phil have you got behind the wheel of a couple of teslas? are you a fan of them? >> yes. it's an impressive vehicle. the model s is very impressive. everybody is interested in the model x and what that feels like relative to the model x. >> thank you for joining us. much appreciated. >> switching focus to apple, apple is looking to shake rattle and roll the music industry introducing a new music streaming service. josh lipton has all the details. >> it was the most radical change to apple's music strategy in years. the company at its annual developers conference unveiling a new service called apple music. ceo tim cook prague on the legendary music producer to unveil it. >> curated by the music experts

we helped pick. they're going to help you with the most difficult question in music. when you're listening to a play list what tsongasong comes next. the only song as important as the one you're listening to at that moment is the one that follows it. >> there's three parts of the service, streamsing music component, 24/7 radio station and a new feature called connect where they can upload songs, videos and photos. it's $9.95 a month. apple is taking on players in this space, spotify boasts over 60 million users. 15 million of whom are paying subscribers. the question is whether apple has done enough to differentiate it's service from the competition. but cook also offered update to the mac operating system ios and highlighted the strength of the app economy. >> the app store has passed 100 billion apps downloaded.

the rate of growth and the momentum is absolutely staggering. the industry has never seen anything like this before. the app store has forever changed software and software distribution. >> all of these changes coming as apple stock has been on a strong run. it's up some 40% since the developers conference last year. now time will tell whether tim cook has done enough to keep the momentum going. >> how big of an opportunity is music for the tech giant? let's bring in the senior industry analyst at s&p iq. thanks for getting up with us. we know apple had a long standing relationship with music since releasing itunes more than a decade ago. what were you thoughts on the music streaming service they unveiled yesterday.

so far there's a mixed response from investors as well as tech enthusiasts. >> i would say our initial response here and thoughts are it's not much of a differ differenciater. streaming service at $9.99. similar to what spotify is offering. you look at the library of apple's music. similar to that also of spotify. so overall it's similar to the competing offerings out there. however that being said what it does do is it does con to expand the ecosystem which is great and what apple does have to hang their hats on is their large itunes base overall of 800 million users so they can use that toward their advantage. >> so that's the key for me angelo. clearly as everyone is saying that the spotify offering is already as good if not better than the apple offerings but

people do loyal to apple ecosystems switch their allegiance from spotify to the apple offering. >> i'm not sure if they necessarily switch. you'll likely see some switch. it's great that they're offering three months of free service here. however i think what it will do more of is just kind of expand the music streaming industry so you have about 40 million paying subscribers globally right now. maybe that will increase from 60 to 80 million here with apple. i would say a best case scenario so overall it continues to expand the actual industry toward the streaming service arena but none the less i don't think it's necessarily kind of taking away revenue from others out there. >> let's talk numbers. how big of tuntd or how big of a boost to earnings could this

service do? >> it's not going to move the needle much on the top or bottom line. we're talking maybe 1 to 2% of the overall revenue base in a best case scenario. so aver all not much to the actual bottom line here for apple but the biggest case is impact on the ecosystem. >> it's the top dow stock but overall valuation wise are you starting to say that the stock looks a bit expensive? >> we're not expensive. our thoughts here is there were going to be some bumps in the road ahead of a new iphone launch and that's pretty much what you're seeing here. the stock has been stuck in the mud here over the last couple of months. we think that's a good thing as you're digesting some of the appreciation you have seen over the last year. apple is starting to look better now than five or six months ago

but we con to see some bumps in the road ahead of a new iphone launch. >> what's the other big ticket item you're looking out for on the agenda. people are talked about a tv. are you looking at that or something else? >> a tv could come later this year. probably more likely in 2016. i think that the way the tv business works here there's a t lot involved with it so it could take some time before they roll out an apple tv offering on the service side of things. the new iphone going to be the thing to watch. you'll see a new ipad refresh later this year especially with the enhancements we saw yesterday with the multitasking aspects of it. the picture i think will all bode well for a larger screen device so that's pretty much what we're looking at right now. >> great stuff. thank you for joining us. senior industry analyst at s&p capital iq. >> a couple of flashes on the

greek story. breek greek government officials submitted two documents and they say the greek side will continue to exchange views with creditors on the political level and await their response to the proposal. there's nothing ground breaking but still a long way to go on the greek issue. let's just sum things up in terms of trade today. european marks in the red. significant declines as you can see on continental europe. germany down 1.7% falling well below the 11,000 mark. france down 1.4%. this follows declines yesterday as well and the sell off really has continued since the ecb meeting in the middle of last week for european equities. >> let's get a run down on what to watch in today's trade. job openings and labor turnover survey could provide clues on when the fed will raise rates at 10:00 a.m. eastern along side april wholesale trade figures lululemon reported it's q-1 earnings beating the street.

u.s. futures well take a look at your screen after hitting new highs in the month of may stocks have been losing team in the month of june. the stock market sell off on monday was not steep but there was enough nervousness to result in the dow now trading in negative territory year to date. technicals also part of the conversation. the s&p 500 falling below it's 1 hyundai moving average for the first time since april. so we're looking at fundamentals but got to keep an eye on the technical story as well. >> absolutely. momentum is certainly moving against investors at the moment. it started a few weeks back but picking up pace right now. s&p at 2,079. down 14 points in yesterday's trade. >> that's all we have time for today on worldwide exchange. thank you for watching. >> next up is squawk box. we're back tomorrow. see you then.

convince general motors to accept a merger. an nbc news exclusive, a woman carrying an extreme form of tb coming into the country and traveling to at least three states before seeking medical treatment. health officials now rushing to track down hundreds of people that may have made contact with the patient. >> and music to apple's ears. the tech giant entering the streaming business launching an instant war against spotify and pandora. it's tuesday june 9th 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. the technology world is taking note of lebron james this morning because he has been a pitch man for samsung for years but lebron gave his teammates apple watches during a get together before game one of the finals. the nba star does have some connection to am as well. he advertises for beats and apple's big push in the music streaming in just a minute. >> he once said that he would never juan