>> let's talking more action. the imf abruptly with draws negotiators from athens as eu leaders warn the greek government it must come to a deal in the next few days. >> emerging market funds suffer the biggest outflows with

2-thirds coming from chinese equities. >> they vow to defend it's deal with ge amid reports that regulators are concerned over competition. >> there's a change up at swit twitter. he grew with a market cap of $25 billion but his ten year was marked about criticism of slowing user growth. on a conference call he says the discussion began last year. >> we're fully committed to maximize value per shareholders and we see no reason why we can't continue to do that as an independent company. we're focussing on executing

against the strategic priorities repeatedly repeatedly. >> i do not foresee any changes in strategy and direction. i believe in the course that the company is on and the management team's ability to fulfill it and execute on it. >> twitter shares reacting positively. you can take a look at how it's trading in frankfurt. shares up about 4%. >> they will be on squawk on the street in an exclusive interview at 10:00 a.m. eastern time. you won't want to miss it. to get those two individuals together and see what they're looking for. dick will be on the board but he is just re-signing as ceo. but in terms of who the next candidate or ceo will be will they look for internal or go external? that's the question. >> very big debate. dorsey is a temporary head. we had that debate earlier in

the week about whether it's right to have the innovators leading these companies and whether they need someone to bring in separately like eric scmidt coming in to lead google. do you think it will be more of that, a corporate ceo as opposed to a tech innovator? >> that's what wall street wants to see. a seasoned tech executive with years of experience in this industry that can provide twitter the management they need to make it not only profitable but make use of the user base. >> he stepped down himself. i definitely think he's been pushed and this is a nice story to protect him. but also hearing no change in strategy moving forward that's a

very odd sound bite based on this decision to change the leadership which is something that people have been calling for and the markets reacted to. they still have a lot to sort out and it will be interesting to hear that interview coming up later today on squawk on the street. >> i'm not so sure the board pushed him. he did re-sign and did not get a severance package which means he lost out on $17 million. >> which is a noble thing for him. but the big thing they're struggling on is video drawing ad revenue and it's not working for twitter. i think they should give in a little pay model for twitter. doesn't have to be for everyone but if those people that want to pay a small, small amount downloading the app in the first place and then get no advertisements. >> advertisements. >> then moving forward that's another option and they can test it.

people don't have to take it up if they don't want to. it can be there as an option. >> one they should be able to all options but second they have been making acquisitions in the video space. they did require periscope earlier this year. expect strategies and updates on how they're going to integrate into the growth strategy but of course this is a top story and dear viewer we want to hear from you, who do you think can run twitter and can they turn the company around? or has twitter had it's day? join us. get in touch with us by e-mail, worldwide@cnbc.com twitter twitter @cnbcwex. interestingly enough you may believe it or not but some have come to say that they would like the top job at twitter including snoop dogg. that's right. head to our website to get the full story on snoop dogg and why

he wants to be the ceo of twitter. >> indeed. now let's move on. greek debt discussions took a turn yesterday. the team returned to washington despite the need to unlock aid before the end of the month. this comes as a report says the german government is holding talks on what to do in the event of a greek bankruptcy. the greek prime minister said the battle with creditors was continuing. >> we are fighting in these negotiations and as long as the greek people support the efforts of our government the government will be holding the demands of the greek people. in order to have a deal that won't just be a deal but a solution to maintain social cohesion. it will give development perspective and at the same time be a financial solution in the

midterm for the country. >> over in brussels the president of the european union says next week's meeting of european finance ministers could be make or break for greece. >> remain discreet and moderate and neutral of course but one reflection is it is now obvious that we need decisions, not negotiations now and it's my opinion that greek government has to be i think a little bit more realistic. >> joining us now is tim harris ceo at harris capital associates. good morning to you. >> good morning. >> thank you for joining us. we had extraordinary moves over the last week or two in european financial markets. has some of that been related to

greece? >> very much. what is interesting is seeing the sell off in core euro area with german bunds breaching the 1% level. over a pufew weeks ago the high quality area was on negative yields so it's not just the periferal side but obviously germany is seeing selling off there. slightly technical. greece is the big show in town. i'm not quite sure -- there's an imf deadline with june win all over it. that's the 1.5 billion. when we then look at where we are with the ecb that moves into july and this has a little juice left in it for a month or so yet. >> if we're trying to workout

how much of this is priced into markets the greek bund yields aren't the right indicator. so have the portuguese spanish, italian yields have they moved enough? >> it depends where this is going. in greece apart from the greeks, life will move on and then this debate and if you're portuguese or spanish, the bush back against the greeks the germans have this big issue. they own the greek debt. the portuguese and spanish have a party to it but once you see a greek decision which is going antiausterity then the spanish, the irish, the portuguese central government are thinking hang on the game has changed here. that's when the pressure comes on to their markets again. the spanish economy is now one of the faster growing economies in europe. the portuguese and irish are

back in markets. last thing they want to do is have two steps forward and huge step backward. this is where the issues of greece trickle down and come back to them. it's not explicitly what's working through germany but certainly around the euro zone we are seeing repercussions in bond market which is will be running for the next four weeks or so. >> help viewers understand what type of action we could see in the periferal debt market. >> greece in my view it's not in june. it's july. greece has to refinance 8.8 billion euros by august and the two big hits of the ekb, the imf one with the 300 million being rolled into the 1.5 billion, one way or another this story will run into july. the issue is are they in or are are they out. what does that mean for monetary

union and the issues i just walked through. >> what does that mean? >> widen. you could be seeing bund yields higher than they are today. we still have some growth in france and italy and other members of the core euro zone so you would argue at a time when risk aversion is high and there's low growth we're not out of the deflation cycle yet. but everything i'm saying there says bund yields should be suppressed and yet we have seen the core moving up. the 1% handle. to a degree that's slightly technical. the ecb is focussing it's quantitative easing activities at the shorter end of the market and not necessarily at the quality end of the market. we have seen it being reversed. that done suggest to me that core bonds should be as rich as

they are now. i think we'll see that come back down. you are going to get a core euro area bond yield coming back down. >> the bond market will continue to warrant our attention as greece dominates the discussion. i can't remember a summer where greece isn't the top story. we'll see if that changes. greek discussions going from bad to worse after the imf pulled out of talks. stay up to date with the latest on the on going greek crisis by heading to our website cnbc.com. >> let's have an update on what european markets are doing today. soft start to the week. a very strong trading day in the middle when greek hopes seemed to be easing and now we're finishing rather softly because those hopes dissipated again. we're looking at a quarter of a perkren of declines at the

moment. we'll look at the individuals instead. we're jumping around. down 0.4%. so continental europe seeing more of the losses and if we look at the individuals we'll see that the ftse 100 is down 0.4%. germany down more and france down about 1.4% and athens given the fact that the hopes earlier in the week dissipated is down the best part of 4%. now let's look at bond rates. the german ten year did cross 1% earlier in the week. it's pulled back from that level. 0.9%. similarly the u.s. yield did push higher and nearly nearly crossed 2.5%. it was on 2.49. it has now just come back. the added positive bit of data this week has been a revision of retail sales data that now puts consumer in the same basket for jobs and inflation joining the pack of positive data.

we think that raising rates in the u.s. would lead to a dollar rally but over the last week we've seen the broader dollar index hit a three week low. the euro has been pushing past 113 but we're now back at 1.122. down 0.3%. today correcting 123.77. quick look at commodities. the oil prices have held up well since that opec decision not to cut production. 60.1 on wti and brent 64.7. >> coming up on worldwide exchange, we're live as former imf chief awaits to hear the verdict in his aggravated pimping trial. >> twitter's management reshuffle is stealing the headlines but find out what facebook shareholders did not like at the annual meeting.

that's coming up. plus it's a slam dunk for the nba as youtube goes crazy for the finals. we'll get you that story after this short break. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here.

. >> they're up 1.3% after announcing more evidence on the positive impact of the potential sale of its power unit. it is saying general motors needs bigger concessions. up 1.3% as i said. now zodiac off 4.6% off the back of a profit warning. traders are sightciting concerns of greece weighing on the supplier. the italian lander that is up 1.35% on reports that hedge funds have invested in the bank's capital increase. >> india's finance minister says the country's economy is recovering and is on a road map of much higher growth.

he added the indian government will consider injecting more capital into state run banks. take a look at the sensex. basically flat on the day but over the past 12 months up just about 3.6%. they shrugged off the decision not to include it in emerging markets this week. >> foreign investors appear to react negatively to that decision. they with drew $7 billion wednesday. overall $9 million flew out of em funds. the largest outflow since 2008. should you be a bull or a bear when it comes to emerging markets? tim harris is still with us.

the fed and the imf have been warning of the risk opposed to emerging markets. when and if that rate hike comes in the u.s. do you think this is investors preparing for the worst? >> many of these in asian markets, particularly tracking the dollar the point is we've seen the chinese number under pinned about 7% for this year. there's not a huge inflation rate we can see and the balance of growth is improving in time. it's not perfect but improving. that is going to suck funds in. so it's worrying but if the trend is negative that's unhelpful. asia is the start of the emerging market world.

are russia is looking at 4 or 5% draw down in growth and if you look at latin america, mexico is fine but the brazilian story pretty flat growth with inflation risk there and they have with 4 or 4.5% inflation to nail down and in brazil that's going to be holding growth back as we go. so it's asia. >> but if bewe look at the differences or if we're getting rate rise because the u.s. economy is growing very strongly don't you want to actually be exposed to japan because of the exporting story. likewise taiwan and korea? >> i guess it's the developing markets. the external accounts of japan is highly dependent but as a mature economy it's going to be less of a delta to growth than the developing markets. we've had portfolio investment

and direct investment going in there so it would be in some of the newer emerging not so much frontier markets but that's about risk appetite and it has been so very volatile and if we're talking about markets like malaysia and indonesia these are the markets you would expect to see the best coming through from u.s. growth. we're talking high twos this year into next and that is what you would expect the economy of the nature of the u.s. to be using. so it's coming through to asia from the u.s. and is not out of the long-term normal. we should be looking to china and where that goes will be equally as important. >> diversification is key when looking at emerging markets because the story is not as compelling. brazil dealing with high inflation, low growth

corruption depreciation in it's currency. india, we're not seeing the type of growth we were hoping to see and china in one of the worst in years. >> the asia story still has legs and if china and india are in place in the medium term the trickle down with external accounts benefitting from growth it's not just the u.s. it's canada and mexico as well. that is going to support growth there and they've had a hard time and the em over a four year period has underperformed quite significantly in dollar terms as well as in local currency terms. that is something we do look to see corrected. valuations in that part of the world, people talk about how horrible the chinese mainland market is. but if you look at shares think hong kong the index is trading on a much more palatable valuation. >> just a quick final question on twitter. would you be buying it off the back of the change in

leadership? >> i know little about twitter. i understand a little bit about board rooms and the front end is clearly masking a difference of probably philosophy and strategy from here. this is a company which has increased it's value by 40 times in the last 7 to 8 years. so well done him and they are where they are. now we look at the challenges. but when you trade on a multiple between 50 and 60 times not a lot of wiggle room there. >> no. >> and that means that these guys -- is it an organic change internally? do they do deals outside? who knows. that is the break point. take him out of the equation. you'll get a fresh view on where

twitter goes in it's next gen moves. >> thank you for joining us. >> all right. let's talk sports. nba mvp steph curry and the golden state warriors rebounded to overwhelm the undermanned cleveland cavaliers. 103-82. the warriors even it up at two games a piece. now lebron james scored a series low 20 points and needed stiffs to close a cut on his head sustained when he collided with a camera. >> now it's been the highest rated nba finals since the jordan era and that doesn't count online viewership. they're posed to generate 134 million views on the league's youtube channel. what is the nba doing differently for these monster numbers? eric breaks it down.

>> the youtube channel is by far the big winner. it will see 134 million views. that number is up 40% from last year which is up 40% from the year before. so compared to the other major sports the nba's official youtube channel is six times the audience of the other three sports combined. they're doing a lot of things right. they were the first big sport to partner with youtube. the first big sport to get their official channel on youtube so they have invested a lot in this space. while other leagues might say hey, we're focused on our own apps, our own domains, the nba has taken a different approach because they want to get that international audience. they've had jeremy lin and yao ming getting focus from around the globe. no matter what happens the next few days the nba is seeing

record highs on their youtube channel. >> exciting. 2-2 right now. who do you think is going to win? >> warriors. >> still to come mercedes is poised to seize the advantage in china. but can it leave it's competitors in the slow lane? we're back in two. ♪ (explosion) ♪ hah! (explosion) ♪ lead your heroes in the hit mobile game download heroes charge now!

taking a flutter on twitter.

shares rally after dick costolo quits after dwindling user growth but jack dorsey vows no change to strategy. >> less talking, more action. the imf with draws negotiations from athens as eu leaders warn the greek government must come to a deal in the next few days. >> emerging market funds suffer the biggest weekly outflows since the chinese crisis with 2-thirds coming out of chinese equities. >> alstom vows to defend it's deal with ge amid reports eu regulators are concerned with competition. >> getting some u.k. data out and it's stronger than expected. april construction output is up 1.5% year on year. the expectation was plus .5%. it is a slow down from the march

number thus the month on month number is softer than expected. down .8. stronger than expected month to month. weaker than expected but overall april construction data isn't a headline thing for data point for the u.k. economy. sterling didn't move much but if we're looking at the home builders today they're a bit soft as you can see down 1.1% for barrat development. >> we did see a late weak come back in equities in response to optimism over potential greek deal but interestingly enough we are looking at stocks lower in today's trade as investors face another weekend where they are left wondering if greece can secure a cash for reforms deal with it's creditors. we are looking at the ftse 100 down about .5%. the xetra dax above 11,000. trading at 11,243. but down in today's trade by around 90 points.

let's take a look at the euro stoxx 50. we have been keeping a watchful eye. they sent the euro to a high of 113 this week. right now we're looking at the euro stoxx 50 index down about .5%. >> it is back below 0.9 now. of course having paired some of the rise in yields and the fall in price and similar moves in the u.s. which flirted with 2.5 now back at 2.4. 2.38 to be precise. let's look as well because the u.s. dollar has been soft. but it's rebounding a bit today. the euro down to 11216 and the dollar up against the yen to 12374. >> now in under 30 minutes a french court will deliver it's verdict in the trial of former imf chief dominiqueon aggravated pimping

charges. it comes after he was accused of sexual assault. let's get out to stefen with more on that story. >> good morning to you. the court behind me will say if he is guilty of aggravated pimping. he faces a fine of 1.5 million euros. however there's not a lot of suspense because the state prosecutor asked for his acquittal. he said that the court did not back up the charge of aggravated pimping. he and 11 other defendants are accused of organizing and participating in sexual

encounters between 2008 and 2011 and the key question is to know whether or not he was aware that the women attending the parties were actually prostitutes. something he always denied and something that was not confirmed by the prostitutes during the trial. all of them say they never mentioned their status to the former chief of the imf. in france prostitution and paying for sex is not illegal, however organizing a place for prostitution or points higherroviding prostitute is illegal. if -- we are expecting if he is cleared by the court in half an hour does it mean that he could make a come back? at this stage it seems very unlikely. even if french people seems to be more tolerant that what happens in the bedroom should remain in the bedroom it's

unlikely they would forgive him for what happened. the list is very long. you mentioned the story in new york when he was accused of sexual assault on a maid in a hotel. we had a similar story later in france and of course the trial here, the beginning of the year when a lot of details about his sexual life harsh details i should say have been made public. it's very unlikely that french people would be ready to accept a political come back of dominique strass-kahn who four years ago was one of those running for the french presidency. >> he sees room for growth in china despite weak car sales. he expects mercedes deliveries in china to grow by double digits in 2015. bmw announced it had cut

production in china. let's talk more about autos with the head of global automotive research. happy friday to you. how are you doing? >> good morning. >> well of course the big opportunity in china, there's no secret that this is a place where all auto makers want to gain more presence more access but this comes as the government is moving to reign in on luxury car prices. >> we have seen that for awhile now. the government is enforcing stricter rules on anti-trust and that's impacting the very high end of car sales. they're all down double digit. it's not impacting the broader premium space of the mass market. that's really the slow down in gdp in china that's now leading to this normalization or slight slow down. >> bmw passenger car sales up 4% in may. what's driving this growth and would you buy the stock at where it's trading at right now. >> we're buyers of bmw. i have been on the program many time advocating the stock.

bmw is a global player. the u.s. market is healthy these days. the dollar helps. europe keeps recovering. the sales in european markets were up around 10%. germany was down but fewer selling dates there. overall the company is on track to grow 7% this year. that's a good consistent growth rate over the last 25 years. it is a growth company. it's cheap and we like the positive earnings price that's coming. >> bmw announced the new seven series which is a crucial car for them. i love this arrogant quote. they say they redefined what an exclusive luxury driving experience looks like. >> that's marketing talk. how can you redefine a limousine? you can't. the 7 for bmw is not as big as the s class. they're selling more than double the volume of luxury limousines than bmw and audi together are

selling. they're not dependent on a segment which in the western world shrunk more than 50% over the last 10 or 15 years so consumers don't want the big limousines anymore. they want suvs and that's what the germans are selling pretty well but it's not really a game changer for bmw here. >> let's move on to diamler. what was your take away. >> you need a different management team. the company has managed a major turn around. they have been consistent with poor product and missing targets over the last 10 to 20 years. the range is awesome and really selling. they're getting close to a 10% margin. they don't want to be overenthusiastic but they have done a good job and they deserve the respect that they're getting these days. >> m&a has been a big story this year. we've seen it in health care and

technology and people are saying the next big multibillion dollar deal is coming in the tech space. big deal coming before 2018. i spoke to bill ford executive chairman of ford earlier in monaco this week or last week. he says there could be a deal as well. where do you see -- do you see a deal coming and, if so what strategic partnership between two companies do you see coming to the market? >> well look so far i see one big guy talking about deals. let's face it. he's trying to engage with with everyone. he's very public about it. i respect his views. of course there's overcapacity in the industry. i'm not a big fan of big mergers in the auto industry. pretty much all of them have failed. exchanging technologies across the oceans is incredibly difficult. getting french and italian, german, american working together is very difficult. no i think look i'm more a fan of darvinism and survival of the

fittest and fiat chrysler at this stage is just not very fit. >> let's just finish up and touch on vw. so you're positive on diamle r&b mw as well. what's your view on vw? >> i've been very critical for a long time. i see an opportunity but it's a bit of a long shot here that the company changes to a more open more modern company. that it's good. that he has removed himself and a fresh management team can shake things up. it's early days i would need to see who is going to be the next chairman. i hope an external person. who is going to be the next ceo. >> thank you for joining us. head of global automotive research at evercore isi. >> turning to asia antitakeover contingency measures. more on the story from the

nikkei in tokyo. >> thank you wilfred. japan is entering the peak season for annual shareholders meeting and today shareholders of the video game maker capcom approved the measures. 45% are owned by foreign investors and at last year's meeting they were rejected but this year the company implemented stricter requirements for when the measures could take effect and the plan went through. however this move is opposite of the current trend among japanese companies. many are choosing to abandon defense measures because the main criticism has been that such take over defenses are nothing more than self-serving tools for management and with the new corporate governance code having taken effect this month, companies that opt to have antitakeover measures must explain in detail as to why. 19 companies decided to do away with takeover defense measures and compare with the end of

2009. the number of companies without such measures is down by 16%. meetings are underway including for toyota and let's see how they will handle antitakeover measures. back to you. >> thank you very much. >> coming up on worldwide exchange constructing a m&a, they're on the hunt for acquisitions. we discuss possible take over target targets after this short break.

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>> the latest data shows a post selection housing supply boost in the u.k. failed to materialize. the report also suggests house prices rose again in may as the stock fell to its lowest level since the data began in 1978. some interesting stuff on the uk. property market. particularly if we look at central london pricing post election. preelection there was a lull in pricing. it was expected in the week after the election that we'd see a big boost in prices again and activity that hasn't come through. >> why do you think that is? why haven't we seen this post

election boost or excitement around the housing market sf. >> one of the biggest factors has to be the change in stamp duty that the conservatives brought in in march which was part of the original pause but people associated most of it to preelection issues and that issue is a big one right at the high end so that's been a factor but u.k. data has been supportive and we would have expected it to come back a little bit more. >> there's one bright spot and that's london. london is seeing a slight turn around around. what's going to happen next year when the bank of o england is forecasted to raise rates. >> that's another big factor.

they thought we'd have a bigger factor ahead of that. the bigger one was the supply side and that is the question that david cameron still has to tackle in terms of the long-term issue in the u.k. it's always been that but in the election run up it seems to focus on demand side more because that's an easier area to gain ground. of course we had the u.k. construction data that came out earlier as well. that's a little bit of weakness month on month after a strong reading in march but the april reading was stronger than expected year on year. >> just curious. from speaking to individuals here in london do you think people are still concerned about the prices in london? >> it's a joke how expensive it is. >> it's not telling the full story when we look at this type of data. >> the london market is slightly different. it's unique because it attracts so much foreign investment as

well. it's never been purely correlated to u.k. gdp. it's always had a big impact of foreign investment. that's something people were fearful of ahead of the election. >> that was key. >> the foreign investors they like the rule of law, the safety the glamour and connections around the world. that means there's a global market for central london. >> since moving to london i'm convinced that new york city is the city of the u.s. it is all around new york city but london is the world. it is the international hub. >> that's great right there. >> the london mayor is probably going to hire you. >> it's so much more metropolitan and diverse than new york city. it's the hub of the rest of europe but you have a strong russian and middle eastern influence. >> it's the best. >> i get why it's the international hub. >> we're being told to move on. the european parliament passed a

resolution on thursday calling on members to maintain sanctions on russia. it follows a similar vote on wednesday which condemned involvement in ukraine. eu leaders are exelected to renew trade and personal sanctions linked to the conflict by the end of this month. >> moving on the u.s. says it may build more military bases in iraq and strategic areas near baghdad to combat islamic state militants. this comes a day after the white house announced the deployment of 450 more troops to iraq. martin dempsey, chairman of the joint chiefs of staffs said building more military basis could require a further increase in u.s. forces. hadley gamble joining us around the desk. what's the latest? >> that's being called a lily pad strategy. the possibility that we build something out in the middle of the desert it becomes a hub and training ground and he didn't rule out the possibility of more troops to fill the positions.

it's going to be interesting going forward how they respond to this because we heard poor josh ernest trying to find a way to work the se manmantics to their favor. there is no strategy as of yet. at least not a definitive one. >> over the start of the century there was a great fear that we'd have repeat of an iraq disaster. there's a big difference this time. this is played out slowly. everyone is fully aware of the threats involved and perhaps most crucially the iraqi government welcomes more involvement. are are we slowly heading toward military deployment? >> the iraqi government welcomes a lot of things. u.s. assistance and help from teheran as well. the biggest grumble is look how quickly the americans came in and were able to do shock and awe in a few days and take baghdad and here we are almost a year later and these air strikes

are not as effective as they promised they would be. we're only just now seeing the weapons we needed. we don't need more advisors. you have a conflicting narrative and for the obama administration in particular when we talk about who is conducting these air strikes even over iraq they don't have the saudis involved at all there. and even that is split along divide lines. >> how do you think this changes the 2016 presidential race and the candidate's focus on foreign policy. >> i don't know that it changes it but foreign policy is a big factor. we talk about foreign policy until the last segment and it segways back to the economy and social issues. in particular jeb bush is going to have to come up with a better answer on why was the iraq war necessary and are we in the position we're in today because of my brothers choice. you'll hear that going forward and hilary will have to answer for libya.

>> that's an interesting point. u.k. election foreign policy is non-existant. but is it always a big factor? >> it's always a top five topic but i think that interestingly enough in the last round of midterm elections it buzz this big, big thing and then at the very last sort of three week period before the election it all turned to the economy immediately but we're talking about the u.k. you guys checked out on syria as did the u.s. congress so in terms of foreign policy and whether there's -- there's defense spending and foreign policy which are quite different. >> syria i thought would have been more of a debate because cameron got defeated in parliament. it was a big moment. >> they didn't want to talk about it essentially. >> there's so many domestic issues at hand that took priority. >> that's always the case in the

u.k. >> we have to move on. thank you very much as ever. >> an 11th person died of the mers virus in south korea. it has effected more than 120 people since an outbreak began late last month. >> now there have been four new cases of mers with total confirmed cases coming in 126 people and one more death. three of the four new cases are coming from samsung medical center which is one of the hospitals that has had the most cases of mers originate from. half of the more than 120 confirmed cases were not on the list meaning there may have been an issue on the management of exposed patients. regarding a report of the case of mers of a doctor there were previous reports that he was in critical condition and brain dead but he is said to be on a

ventilator undergoing treatment. at the same time we're getting reports focussing on the fact that the number of new confirmed mers cases are showing a slow down and seven patients are reported to have recovered from mers with three being released from the hospital today. >> back to corporate news and rupert murdoch is expected to hand over the reigns of his media empire by the end of the week. he is to step down as 21st century fox ceo imminently but the organization will stay within the family. david faber filed this report. >> as we first reported here in the u.s. this morning rupert murdoch, the long time chairman and ceo and founder of fox is stepping down and handing the title over to his son james. an announcement coming soon. james will become ceo.

the elder mr. murdoch will remain as executive chairman of the company and his other son will become executive co-chairman having a broader strategic role sources tell me at the company and working in what they call a partnership with his younger brother james who will have the day-to-day responsibilities of overseeing all that takes place at fox. the company's long time coo is stepping down from that position. he is expected to remain at the company in an advisory capacity of some sort and that appointment may continue through much of 2016. but it will remain some what unclear. all of these changes of course in many ways anticipated by fox investors. nonetheless marking a significant change in general generational management at this

company. chase kerry having been coo. for fox the bigger challenges remain but many investors i have spoken with believe that james and his focus on digital is something the company will benefit from as he takes over the reigns of ceo from his father. >> that was david faber reporting there. interesting story this. what i love about it he still reports directly to rupert murdoch. >> as you would expect. >> you're either stepping down or not stepping down. >> no one is doubting that he'll still have a final say on whatever goes on at fox but james murdoch it's interesting because he gave up his job running b sky b after the u.k. hacking scandal but he's winning more fans as the co-coo. >> but if you took the u.k. hacking scandal aside which is a hard thing to do he did a pretty good job. that earned him quite good respect. >> he still needed to reinvent

his brand image which he has been doing. >> but in the u.s. there's still a bit of doubt as to whether he can step up to the plate. >> he's still the son. there's always some skepticism about whether he can fill the shoes of his dad but there is some uncertainty but we'll see what happens. clearly this move is imminent based on this reporting. >> we shall see. >> still to come on worldwide exchange, jack back. twitter shares rise on news that dick costolo is stepping down but has the company passed it's prime? we discuss after the short break.

>> here are your headlines from around the world. >> taking a flutter on switer. shares rally after costolo quits amid dwindling user growth but jack dorsey vows no change to strategy. >> alstom vows to defend it's deal with ge amid reports eu regulators are concerned over competition

competition. greek negotiations twist and turn. >> now we are awaiting a verdict from a french court due to be delivered any moment now. of course it relates to aggravated pimping. it comes after a hotel maid in new york accused him of sexual assault. we're awaiting that verdict due any minute now. let's get out to stefen ahead of the decision. he's live. >> wilfred the announcement should come any minute from now from this court behind me. the court will say if the former chief of the imf strauss-khan is guilty. he'll face a fine of 1.5 million

euros. but that's not the scenario. there's not a hot of suspense because the state prosecutor asked the court to announce the acquittal. the question mark is on the state of the women that attended parties in paris between 2008 and 2011. they were prostitutes but dominique strauss-khan claimed he wasn't aware of the status and the women questioned by the court in february say they never mention their status to the former chief of the imf. dominique strauss-khan always denied he knew they were prostitutes. that's the defense and that's the reason why we're expecting the court to clear him any minute from now. that's the scenario. if it's confirmed it would mean for dominique strauss-khan the

end of a legal saga that started four years ago in new york and that will be the end of the legal procedure for him. perhaps not a come back in politics. we'll talk about that later when we have the verdict. >> thank you very much. euro zone industrial output is 0.1% month on month. below forecasts of 0.4 and plus 0.8% year on year. slightly below forecasts of year on year which is plus 0.9. we've seen the euro sell off sharply in the last five or ten minutes. that's not off the back of the industrial production data. we can see it down 0.8%. it's off the back of comments from merkel who has come out to say that a too strong euro hampers reforms in the euro zone -- that has caught traders napping. but the comment coming that a

too strong euro hampers reforms in the euro zone which lead to a much softer euro in today's trade. down 0.8%. sharp moves in the last minute or so. >> let's take a look at futures on this friday morning after a string of retail sales data may did see a nice uplift. in fact, financials pushing up about 8% over the past years. one of the few sectors enjoying gains but keep in mind the high interest rate environment could be a challenge to this market. of course the volatility in the bond market captivating the attention of our audience. the dow indicating a lower open. nasdaq down 12 points. s&p 500 higher by around 2. we're seeing a move in the oil market that could be helping the s&p at least in this point in premarket trade. what's going on in europe? well european equities did stage a come back over the last two days. however in today's trade,

increased nervousness around a greek debt deal actually coming together perhaps those negotiations will continue over the weekend but because of that uncertainty we're seeing some investors move to the sidelines. we are right now looking at basically stocks down across the board here. cac 40 down 22 points. the greek equity index. we did see a move by 6% to the upside in yesterday's trade on optimism of a deal coming together. right now pairing gains down just about 3.7%. . how are are bonds doing? >> let's see. they're not doing at the end of the week as they had done. rahal lid past 1% earlier. it's settled down around 0.9%. we saw a similar move and settled back in the ten year in the u.s. which just got shy of 2.5. it hit 2.49 and now back below

2.4%. that's despite positive retail data that surprised slightly to the upside earlier in the week. quick look at commodities, the oil price holding up well over the course of the next week following that opec meeting last friday where there was no cut in production. we have just fallen now below 60. 59.9. brent 64.3. all in all the oil price holding up much better on the last month or two than in months previously. >> now to our top story this morning there's a massive shake up at twitter as dik costolo is stepping down july 1st. jack dorsey will return. costolo took over in 2010. but his ten year was marked with criticism about slowing user growth. he says the succession discussion began last year.

>> we're obviously fully committed to maximize value per shareholders and we see no reason why we can't do that as an independent company because we're focussing on executing against the strategic priorities repeatedly. >> i do not forsee any changes in strategy. i believe in the course that the company is on and the management team's ability to fulfill it and execute on it. >> twitter shares gained about 8% in after hours trade. right now in frankfurt we're looking at shares of the social media firm up about 5%. on a programming note dick dick costolo and jack dorsey will be in squawk on the street at 10:00 a.m. eastern. you will not want to miss it. when i was looking at the me tricks this morning, 300 million active users, 500 million tweets are sent per day. there's no secret that this is a

powerful social media platform but analysts say at the end of the day they need to find a way to monetize their platform. they put out an interesting note this morning. they say that management failed to fully communicate since the time of its ipo that twitter was and remains a venture stage enterprise company. it happens to trade publicly. >> that's an interesting point. i suppose we get that with lots of different companies that decide to enlist extra capital at that size. the big key and failure for the final year of cstostolo's reign is that lack of montieization but it needs a noninnovator. a corporate man that can now try to do the tougher decisions as it were that the innovators don't want to take. they like staying with the true identity and don't have to make the tougher decisions.

>> a seasoned tech executive. a lot of experience in product growth and excellence could be seen as a viable option for twitter. you take a look at the management team for facebook. they're competitive and that at this point, seems to really work. they have an innovator as the ceo but also cheryl sandberg with the strong experience from fwoogel among other technology fwoogel -- google among other technology jobs. you have the innovator on one side and that seasoned executive on one side. we had the shareholders meeting yesterday and for now international growth is working for the company and mobile innovation which is what wall street has been banking on. >> a great example, we have been asking you throughout the show what do you think about twitter? has it had it's day or is there a turn around to come with the change in leadership?

scott said you're not asking the twitter question using facebook so 100% believe it can be turned around once google buys it. we also had a tweet in from josing twitter engrained itself so much into society it will remain. >> i do think that twitter delivers so much more value and use. book and instagram are great. they're more fun. >> but for use and -- >> twitter is the way to get news. >> and for expressing opinions and when there's a fifa scandal we go to twitter to see if there's comments coming from various executives. it's still a powerful platform for news. the question is monetization. only specific parts of the market use twitter. i'm using twitter but my mom isn't. she is on facebook though. that gives you an idea of how some people fine it useful and others not so much. >> continue to get in touch with

us at cnbcwex. and seema and i's handles are on the screen as well. >> you won't believe who has come out on twit tore say he should be in contention for the top job. snoop dogg. head to our website to get the full story on that. >> maybe that's a good option. who knows. facebook shareholders shot down a proposal to give each investor one vote per share. it was brought up at the annual meeting on thursday and called for changes to facebook's voting structure. ordinary investors hold class a shares. class b shares carry ten votes each. they hold about 70% of the power. mark zuckerberg controlling about 55%. stock is down about .2% in frankfurt but this year up about 10.7%. >> changing tides, the u.s. knocks saudi off the top spot as

global leading oil producer. what does it mean for crude prices? stay tuned. we'll discuss after the break.

. >> twitter shares take flight after dick costolo quits.

angela merkel says a strong currency is a problem and u.s. futures indicate a lower open as greek debt negotiations stall. >> let's get straight to what angela merkel is saying at the moment. as i just mentioned a stronger euro is a problem. we've seen the currency sell off sharply off the back of that. she is also talking about greece where she says where there's a will, there is a way. but that will that desire for greek talks must come from all sides and so she says it is important to keep speaking with each other. that's an interesting perspective. it must come from both sides. where there's a will there's a way. earlier in the week we saw equities rally strongly on a story saying we're getting closer to a deadline deal but hopes have dissipated since.

>> after the comments. >> it may build more strategic places in iraq to combat islamic state milmilitants. this comes a day after they deploy troops to iraq. the chairman of the joint chiefs of staffs said building more military bases could require a further increase in u.s. forces. this is creating a certain level of nervousness among citizens in the u.s. >> absolutely yes and unfortunately for the white house they're dancing around what is this going to mean. what is it going to look like and for the iraqis they just want their weapons and they want some kind of commitment from the u.s. going forward but it's going to be interesting how this plays into the presidential race because what you've seen here is jeb bush is expected to announce in the coming days.

she he doesn't have an answer as to whether or not iraq is a good idea. and hillary clinton doesn't have answers for libya. >> do you think he would be critical of what his family did. >> it's a tightrope for jeb bush because we're talking about donors and the war chest that he has already managed to accumulate and we're expecting that to grow in coming days and about keeping people on board that were with his brother and not just in the administration but as supporters. it's a fine line he has to walk there but we'll see what happens going forward. >> thank you. alstom in the green. after announcing it will give more evidence. it comes amid a reuters report saying ge needs to offer bigger concessions if it's to satisfy competition returns from eu regulators. we've seen so much m&a recently and they have some big deals.

this is now the focus of this one. performing well today off the back of these comments. >> where there's a will there's a way. >> listen there have been so many challenges and head winds facing the m&a market when you take a look at stronger dollar. when that does come. what that means for corporations taking money out to fund the m&a transactions and regulatory concerns. despite the head winds the m&a story continues and it speaks to the level of corporations seeking out inorganic growth opportunities to continue to stay competitive. we're seeing that play out given the number of expirations and the competition coming from smaller bio tech companies. there's no choice but to put it to use and make a deal. >> it's being taken of course on the headlines we have seen.

>> it must be quite annoying to have to watch these long drawn out negotiations and back and forth between companies that want a deal to come together and really seeing if it will in fact, move forward. >> indeed. but the big traders, they get the big moves on the news and of course it takes a long time to come to fruition often. but alstom has been down recently. >> let's take a look at futures. a mixed day of trade yesterday but we're indicating a lower open here. the dow down about 16 points. nasdaq down 7. a lot of focus on twitter. we'll get you that story after this 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.

>> saudi arabia is prepared to hike oil production to a record high. this according to a report from reuters citing sources. meanwhile, a review suggests the u.s. overtook saudi as the world's leading oil producer in 2014. oil prices off a little bit today. wti dipped below 60. joining us now is the oil analyst at barclays. good morning to you. >> good morning. >> let's talk about the relative resilience of the oil price. big rally in marchand april. since then been relatively resilient despite some stories of supply continuing to grow. is that resilience since the rally surprising you? >> there are a few things happening in the market at the moment on the physical side.

really important things. we're seeing rebalancing of crude from the pacific to the atlantic. there has been a very strong demand especially on the gasoline side in the pacific. refinally margins are being very strong and all of those arab grades that saw day rab i can'tudi arabia has been pumping. now what's happening is that fiscal crude market in the atlantic, as well as south africa, that's being pulled toward asia. and i think that's where we're seeming the market at the moment. >> u.s. production is slowing according to the eia. which story is focussing on the market here? >> the production slowing more

so than the actual data. the actual data is being revised higher. q-1 growth for u.s. supplies have been revised higher. the entire base has moved higher but it almost seems like the expectation is for this slow down to be very very sharp come the second half of the year in 2016. those expectations are taking hold and the second thing, this is linked to the saudi point you mentioned is yes there is strong demand and at the moment and opec said they had a very happy meeting. things seem to be going really well. the point is margins are looking very very fragile come 6 to 12 months now. that passes over into gasoline and diesel come q-4. so all of these units are going to be ramping up their diesel supplies come second half of the year. >> at the end of last year. >> that supply and demand dynamic. >> are there other factors coming through a bit more this tile around.

>> yeah strengthened refinery margins. people have been bearing on refining margins. we've seen a lot of strength come there and the point we're trying to make is now we're see seeing this shift in barrels. it will start weighing on refinery markets second half of the year and that will feed through into weaker crude prices. >> i want to talk about inflation. repricing inflation expectations is changing the story when looking at the bond market. how is it changing the oil market and your forecast for oil prices and where they go from here. >> so in terms of crude we don't see that big of a difference. the curve, 2016 and 2017. it's very much in line with it. we see a lot of u.s. producers

out there. they'll possibly change their plans when it comes to reducing supplies come 2016 and 2017. it's a seesaw market and we're still not out of the woods. we have an average cost of $60 barrel for brent. >> where we're at right now? >> yes. >> thank you for joining us. oil analyst at barclays. on the commodities front as market turbulence picks up precious metals could look set to be back in favor in the hunt for a safe haven. find out why gold could be your best bet on cnbc.com. let's have a quick look in on european markets because we're finishing the week softly which is, in fact as we started the week. there was a strong day when there were hopes that greece was getting close to a deal but that dissipated and red across the

board. the main indices of the u.k. germany, and france all down 0.6% in today's trade. >> shall we look at u.s. futures? a look at what we can expect on wall street today. of course a mixed trading session over the past couple of days following that retail sales number. the dow indicating a lower open by 26 points. >> just a reminder that we're still waiting for a french court to deliver the verdict in the trial of the former imf chief on charges of aggravated pimping. we're live after the break. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see.

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welcome everyone. you're watching worldwide exchange. >> here are your headlines from around the world. >> shares rally in premarket trade after dick costolo quits as ceo but jack dorsey vows no change to strategy. >> the euro moves sharply lower after the german chancellor says a strong currency ais a problem. angela merkel saying where there's a will there's a way. >> athens and it's creditors weighs on equities around the

globe with the s&p with a higher open after the trade. >> dominique strauss-khan awaits a verdict in his aggravated pimping trial. we're live out side the courtroom. >> it was that retail sales number that investors were focused on. it does seem like the consumer is spending. retail sales coming in line with expectations in the month of april. markets ending mixed in yesterday's trade. the dow indicating a lower open by 25 points. nasdaq, the tech heavy index. tech has been a bright spot for the markets this week. in fact hitting a 52 week high. you can see the nasdaq did hit a new high in yesterday's trade. s&p slightly higher in premarket just by around two points. financials continue to be a source of strength for the markets on the expectation of a

rate rise in 2015. that's obviously a good thing for the banks. let's take a look at european markets. we've been seeing some volatility in the equity trade over the past couple of days as investors digest the recent gyrations in the bond market. the highest level of volatility since the taper tantrum in may. some say a lot of at a has to do with increased nervousness and counting frustration when it comes to greece and it's international creditors. ftse 100 trading at 6,800. dax down 11,255. and the equity index saw a move by around 6% but you can see today investors hitting the sell button down about 2.7%. that's the athens asc.

>> let's also look at the euro dollar which moved down sharply. early letter this week above 113. quite a sharp move to the down side particularly today as you can see and in the last hour. we're down .3%. angela merkel sparking that recent sell off off the back of saying a strong euro can hurt chances for reforms to be passed and the market moving along side that. joining us now is president at traders audio.com. good morning to you. thank you for joining us. >> good morning. >> let's quickly touch on this move in the last half an hour in the euro dollar because it seems that it can't find an area to settle on at the moment. we certainly know qe will continue and we're now back in the 111 handle. >> well the euro currency back under pressure. down about 100 ticks against the dollar. continued strength in the

dollar. a lot of movement yesterday but it's really having a hard time getting it's footing or finding that area. what i have been noticing is a wide range balance exhibiting itself below the 115 area but up above those yearly lows from the 104. so throughout the fall of 2014 we saw that slow but steady decline. very steady. a nice trend to the down side. but basically ending 2014 and rekrenre recently as mentioned in the wide range trade. as long as we continue to see this bid we're noticing a stir in the major markets. with the dollar on the move we're moetsingnoticing currencies and gold. keep in mind the dollar has yet to breach any major levels of supported resistance exhibited over the last five or six months for after the end of 2014. it went sideways but it's

accepted value at these upper levels. we're waiting to see the catalyst to provide the next surge higher for the dollar or for it to resume back to that 86 to 90 area. right now holding strong 95 97 area so we're focused on that. but also as mentioned the energy and volatility. the movement in the dollar has been creating across the board for the most part. >> you din mention the bond market. i'm surprised. what do you make of the vicious moves in yields over the past couple of days? the u.s. ten year at around 2.4. does this mean stocks don't look as attractive going forward? >> well unprecedented volatility to say the least. i have been watching the bond market for over 20 years. it used to be a big deal. you'd only see it once a month. now it's an every day event and if you looked at second we saw a

two point rally basically off the lows. yesterday was just unprecedented unprecedented. i think it's just an indication it's just a sign of the speculation that we're seeing now. the concern and fear about interest rates. potential rise in july. raise in the rates in july but the fed has a lot of room to work here. they can move this thing up half a basis point and it wouldn't have much of an impact. it would be a little bit of a testing the water and as i mentioned before a higher interest rate is a sign of a stronger economy so that's a good thing for the economy and the stock market. >> for now, thank you. we'll be back out later in the show. back to our top story this morning, twitter shares higher in premarket trade after ceo ceo dick costolo says she's stepping down on july 1st. he'll return as interim chief as the board searches for a replacement. he grew twitter from a start up to a firm with a market cap of

around $25 billion but his ten year was marked with criticism about slowing user growth. on the conference call he says the succession discuss began last year. >> we're obviously fully committed to maximize value per shareholders and we see no reason why we can't continue to do that as an independent company because we're focussing on executing against the strategic problems repeatedly. >> i don't foresee any changes in strategy or direction. i believe in the course the company is on and the management's ability to fulfill it and execute on it. >> we will be speaking with a guest about the prospects for twitter shares with an analyst right after this break. stay with us. >> also coming up regulating the web. the u.s. begins a sweeping overhaul of how traffic flows on the internet. the ins and outs of net neutrality also after the break.

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>> dick costolo did re-sign at twitter. we're looking at shares up in premarket trade. it was higher in after hours trade as well yesterday by around 8%. where does it go from here? joining us to discuss is the global tmt analyst. a pleasure to have you on the

show. thank you for joining us this morning. >> thank you, good morning. >> where do you think twitter should look for its next ceo? internal or external? >> >>. >> i think if they don't want to come back full time they need to look external but clearly the issues they have at the company they need to bring in a heavyweight that can drive scale at the company severely lacking at this point in time. >> do you have any ideas of what kind of external candidate they should search for? is this a seasoned tech executive or someone honing in on product growth and expertise? >> to be honest if they have the best of the social media pick at the moment would be to probably come into facebook executive ps they could or one of the other companies similar to them that really understand generation z which is the under 25 today that is really driving the social media growth at the moment. rather than going back to old school technology company.

>> interesting you mention book there. what have facebook done that twitter have failed to do? >> for one thing they have kept the most important people in the company. zuckerberg still runs that company. a great set of lieupeople around him. what they have done is they have understood the need for scale. understood the need for monetizing the opportunity that they have and clearly they made great acquisitions and twitter has not moved on. >> does that make facebook a better buying opportunity? >> absolutely. you buy based on fundamentals. people talk about declining usage on facebook occasionally. where are they going instead? instagram. who owns instagram?

facebook. what do they pay for instagram? just $1 billion. if snap chat is getting funding on $16 billion instagram at 1 beside was bargain. >> but there's newer messaging apps gaining traction. i want to point out tender has 50 million active users who users check their accounts 11 times per day and spend an average of 90 minutes per day on that app. very similar metrics when looking at snapchat. >> but then also look to -- i think it's great that snap chat you bring it up because the company owned by facebook and that's got more messaging going over that network than every single text message from every single wireless carrier around the globe but book owns that technology and you're seeing more transactions on their

platform. >> how important has video become for facebook's success? it's important to google as well through youtube and can twitter make a difference on the same level? >> the problem that twitter has, you know i use it as a tool for day-to-day business but really i don't get much value out of twitter. there's still too much noise on the network. their video service, you get instant video that comes on to your feed. if you want to hear it you can just press a button to hear it. i think the video platform is superb and should have them concerned over the longer term. >> oculus is interesting. it's supposed to come to market next year. we'll leave the discussion there. thank you for joining us here on

worldwide exchange. now we want to hear from you on this. who do you think should run twitter? and can they turn the company around or has twitter had it's day. >> we just got breaking news the idea that twitter might offer the job to their favorite expert seema mody. what do you think? >> for a minute i thought you were being serious there. so i let you speak. >> would you take it? >> no i'm happy being a financial journalist and the opportunity there for our audience that is watching. >> if you did take it could i have the first exclusive interview? >> we'll see. it depends. >> we shall see. do continue to join in the conversation there at cnbcwex. >> all right. moving on actually speaking of twitter, you will not believe who has come out on twitter to say he should be in contention for the top job. snoop dogg. get the full story on why snoop dogg wants the job.

sticking with tech uber is planning to invest over $1 billion to china this year. the ceo says that china is a priority for the ride hailing company. he adds the company believes it has captured close to half of the non-taxi ride hailing traffic in the country. >> it's a new day for how the internet is governed as net neutrality rules go into effect. let's get out to landon with all the details. >> good morning to you. the u.s. will start implementing those new traffic rules today. on thursday a federal appeals court dismissed a request by the industry to delay the rules saying the challenge didn't satisfy the requirements for a stay. the rules banned providers from blocking or throttling apps or the so-called fast lines or priority delivery of web traffic. last year they announced such a

deal with netflix giving it a direct round through the high speed network. it's a partial victory for president obama who shocked the industry when he called for broadband to be a public utility. netflix and other providers warned they have the power to distort the internet. in february they followed through on president obama's call. a previous version was struck down in court last year. the telecom industry challenged the fcc saying the regulators didn't have the authority to classify broadband service. chairman tom wheeler says it's a good day for consumers and retailers blocking and throttling fast lanes and other efforts to come between the consumers and internet should be things of the past. the rules could have a chilling effect on investment in broadband and could still be

shutdown as they look at an expedited review of the case. >> let's remind you of the headlines. twitter shares take flight after di dick costolo quits. angle merkel says a strong currency is a problem and a lower open as greek debt negotiations stall.

a french court is due to deliver the verdict in the trial of dominique strauss-khan on aggravated pimping charges. it comes years after he was accused of sexual assault. let's get to stefen live outside

the courthouse. >> hi wilfred. well, the judge started to read the verdict to read out the verdict about 50 minutes ago. it will take time before we know about the fate of dominique strauss-khan. the judge said it was important given the media coverage to be very precise on the reason behind each decision and to repeat for each of the 12 defendants, the background the charges and what was requested by the state prosecutor. two of them already, two defendants cleared by the court behind me and that's exactly what we're expecting for dominique strauss-khan. he always claimed he didn't know that the girls that attended the sex parties to which he attended also were prostitutes. therefore he cannot be charged. he could not be charged for aggravated pimping but still he could face up to ten years in

jail and 1.5 million euro fine. if he is cleared by the court later today that will be for dominique strauss-khan the end of the legal battle that started four years ago when he was first accused of assaulting a maid in a hotel in new york. he was charged of similar charges in france and then this prostitution ring that took part between 2008 and 2011. at the time he was director of the imf. if he is cleared later today that doesn't mean he'll baseball to come back in politics. even if french people always consider what happened in the bedroom should stay in the bedroom they're probably not ready to forgive everything to the former head of the imf. we had a lot of very harsh details about his sexual life and it seems unlikely for him to make any come back in politics. >> thank you so much.

now it is time for chart of the week where we tell you what is the most important chart of the week. i'm going to start with saying it's the german bund and here's why, it crossed 1% for the first time in quite sometime. it's not only about the yield. implied volatility is at the highest it's ever since since the taper tantrum in 2013. repricing inflation expectations plus traders have been unwinding a lot of the ecb qe trades. one of the reasons stocks are coming off their highs. similar story in the bond market. just below 1%. a lot of that has to do with the greek nervousness that's taken place. >> it's a good chart but a better chart is the yen chart because u.s. data has been better. retail revisions adding to the better inflation. you would think u.s. dollar strength would follow but no it

hit a three week low in the middle of the week and the yen has been the beneficiary of that up 1.6%. a very sharp move we saw on wednesday. that was back off comments that the yen was looking too strong. but in general this highlights it was not just in europe where qe related trades could still unwind even though the easing itself continues in many places in the world. now let's get straight out to ben. he is the president at trader's audio.com. he is going to tell us which of us had the chart of the week. i want to remind you before you make your decision that i always looked out for you. >> he's lying. >> i'll be the judge. well from what i'm seeing i think both of you are spot on. both of the charts actually unfortunately, this is one of the weird circumstances where you're both right. one of the reasons most important is we have been seeing

the treasury bonds here as well as the other yields. the futures prices falling very closely. that's been a bit of a leader and we have been falling very closely. that's important in terps of our rates or the future's price and the volatility we mentioned and spoke of earlier but again the yen has been on the move. we've seen the dollar which has been a very influential component and as the yen's come off that 8300 level we've seen a vertical move to the down side. i have to agree with you there. in terms of dollar strength but also the yen. trade below that continues the trend to the down side but certainly as the dollar has been trending higher the yen has been trending lower. i'd like to wish you guys a wonderful weekend. have a great one. >> we'll leave it there. i have a quick question. on a serious note do you think the volatility weighed on

investor investor sentiment and do you find that they are assessing whether they should find safety in the bond market? >> there's also a certain amount of the underlying sentiment that there's trading in the bond market. that always exists. the u.s. tends to be the cornerstone if you will. but we're just seeing we're seeing a lot of volatility. it resolves around concerns in terms of interest rates and when that can they have been kicking down the road is going to hit that brick wall. right now we're saying to see and i think that the volatility continues and that has been definitely filtering off in some equities as well. >> thank you. have a wonderful weekend yourself. that's all we've got time for today on worldwide exchange. >> i won that race. >> have a good weekend. >> i won that race. >> it was a draw. thank you for watching. squawk box is coming up next.

>> dick costolo stepping down after almost five years. plus blackberry thinking of making a smartphone with google's android software after shunning it. and hacking america, a federal employee union is charging hackers stole personal information on every government employee. that's a lot. arguing the breach is far worse than the obama administration has acknowledged. it's friday june 12th. friday. we can say that one more time. friday friday friday. 2015. 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. a big win for the warriors last night to even the nba finals at two games a piece. there's two stories trending about this this morning. both lebron james -- first of all a wardrobe malfunction and a bloody run in with a camera on the baseline that required stitches. we'll explain in a little bit. but first the business news of the morning. u.s. equity futures. this is a week things have turned around for the stock market. things are relatively flat but at this point we look like we're on our best week for