a very warm welcome. this is "worldwide exchange." i'm wilfred frost. >> these are your headlines from around the world. >> greek stalemate weighs on the european equities with europe under pressure. seacrest tells them to get realistic after another weekend of failed talks. building a real estate giant. after it announces a capital hike to fund its latest takeover sending shares into the red. metro also on a shopping spree. the german retailer said it will

use the proceeds from nearly a $300 billion deal rather than a dividend. paris air show takes off. we hear from the ceo from airbus companies on how he plans to clip boeing's wings. hi everyone. i'm seema mody. and coming up on "worldwide exchange" -- could it be 1992 all over again? we discuss the race for the white house as jeb bush prepares to throw his hat in the ring setting up a heated contest with hillary clinton. a high profile twitter shareholder said jack dorsey is not the right man to lead the site. plus hollywood rolls back into the light as "jurassic world" notches up a record weekend. can the revival last for the smash hit movie? that's coming up.

well welcome to the show. a busy busy agenda coming up as we said greece on the agenda. politics on the agenda in the u.s. alive on the ground. and russia and dublin for the money conference. what are you most excited about, carol? >> "jurassic world," of course. >> but that is an extension. in the forefront now, i haven't even seen the first one? >> i've seen them all. >> are you a dinosaur fan? >> anything big and strong i can relate to it. i've got to say this week is all about team yellen and policy meeting. we always say the next one is the important one but this really is because we get an indication whether or not that rate hike is coming in september. >> always comes back to the u.s. then? >> bought to begot to be true to my

people, america. >> that will be a crucial meeting. we can't keep our eyes off every single thing that going forward? is there a small chance it will increase? >> listen getting the encouraging data we've been getting so far this month there is some indication we could potentially get a clear reading as to whether or not janet yellen feels like a rate hike can come in september. let's talk about that nothing exciting about it i think everyone is questioning the economic recovery. >> it's nice to see retail has joined the relative set of data anyway. that's states side. let's focus on the european situation. as you can see, a sea of red in european markets. last week today, the european markets finished just about flat. although there was a lot of volatility up and down over the days. most of that volatility didn't affect greece positive or negative. the stories very much negative. stock down 1%. let's have a look at the individual markets.

as you can see it was designed to focus on continental europe and particularly the athens stock exchange. ftse 100 the relative performer. >> let's get to the declines now over the creditors over a cash reforms deal. over the last few hours, a number of angela merkel's allies have warned. the parliament leader has added that the parliament will not back a deal without the imf. this comes after talks for the weekend broke down with both sides blaming each other. the and athens will wait patiently until creditors agree to realism. meanwhile, the former prime minister has told cnbc there say deal to be made as the greek people want to stay in the eurozone. in an exclusive interview julia asked him how close he believes greece was to the brinch of

disaster. >> it seems we're again getting very close to as you said a brink of a disaster. because we have had an adjustment program five years. people have sacrifice we've sacrificed 25% of our gdp. there's been high employment. all of this to remain in the euro. and at some point to be able to access the market and get on the path of growth and greece has great potential. so i think we really need both sides to climb down from their high horses and really work on a compromise to find a solution and move forward on it. >> as you said both sides need to get off their high horses here. do you blame the negotiating tactics of the prime minister here? >> well i can be critical about the negotiating tactics on the other side. and let's look at the socialic.

i think there say package to be gotten, if on the one hand we have made amazing fiscal adjustment you know from 15.7% deficit down to prime surplus. we should be able to have on the one side from the european side and the creditors' side say, okay you've done your fiscal consolidation. we're not going to ask for more cuts, more cuts in wages and pensions. we're even going to help deal with the debt problem so it's less an overhang. but on the other hand we have to say, wee in greece have to say, the government says we are ready to continue to deep reforms to make greece stable. not even saying why, just looking at the narrower issues of the labor markets. let's look at issues of revamping our tax system really bringing in transparency of our justice system. the bureaucracy.

>> everyone is talking about that. >> absolutely. when you have harsh austerity, a lot of these interests don't want reform they're saying to mobilize and they don't want the reforms. the former chancellor of germany said he reformed and in germany it could be doing austerity at the same time. we were asked to do austerity and major reforms at the time. >> joining us now is julia on the set. julia, this is interest this is the politician back in 2011 called for referendum. that was chaos. i was there to report on that. why would he want to do that again? >> i think he says we need to take it back to the people. we don't want austerity. a lost people say they want a deal. they just don't want the red lines to be crossed. you have to have it back to the people and let them take

ownership. as a former prime minister you can criticize his legacy in the country and where they found themselves. he was the one who signed the first memorandum so he's got some difficulty in understanding. the thing that concerns me is the fact that we've had a gain fris morning. i want to make one point i don't know whether you guys read it munchar said they've got nothing to lose by saying no to the creditors. he thinks we'll see a gpsd here over the next three years of 12.4% from gdp of 200%. >> you mentioned a couple things. some defined tones from cpres this morning. writing this morning also saying that europe and germany will not themselves be blackmailed. so it seems this monday compared to last monday we've

gone a big step backwards. >> well i think the point that is being made that has set the progress over the last three weeks has fell great over the last three months but there's still that gap there. i think britian has been difficult. the parliamentary speaking saying we need the imf on board. that's what the greeks have argued. it's not just creditors in greece. it's a number of elements within those creditors demanding different things. >> julia, help us understand what can our audience expect in terms of weak negotiations and discussions around the debt situation this week? >> well i think the message from the creditors' side from the commission's side look there's no time to come up with a blueprint to go into that high-level meeting. i think they will do everything they can to reach some level of negotiations before we get to that europe group. as far as i'm concerned, remaining skeptical with talks

continuing into the nice. remember, we've got a summit the week after as well where the leaders meet. but in tellers of deadline the time is nye. >> wilf over to you. over to markets. let's have a look at what markets are doing. we've already updated you on the main european bosses. stocks down 1%. most of that continental europe and athens over the concerns we've been discussing. the bond corrections in spyinging yields. the ten-year in germany flirted with 1% is now 0.8. and the u.s. flirting with 2.5%. now 2.49. now back down 2.43%. the rates, last week in general a poor week for the u.s. index. the euro and yen remain beneficiaries of that the euro

up 10 basis points still at 112.5. and the yen 1 is 23.5. it's often basis points too. now, let's look at some of the individual big movers. can deutsche. and they will fund the deal clearly that's taken shares off 5%. let's go straight out to frankfurt with more. >> thank you. annington take over another rival on the market side even though it's a small acquisition for deutsche annington. remember still a completion with that big transaction. it is a small entity 20,000

apartments, but the price is actually quite steep. the price now at 1.9 billion euros. that's 500 million more than a group of institutional investors were offering llbw back in 2012. and the reasoning behind that but annington still say that a reasonable transaction for the company is that it's currently so cheap and that many investors are interested in buying german real estate had a huge bunch of deals last year more than 50 billion euros, in real estate transactions for the market which is a huge number for the german market. and that is continuing that. we all know that financing costs are at all-time lows. that's the rationale behind it. that's why annington can buy into the market. they still say that's not the

end, they're hoping for more. wilf back to you. >> stay with us because metro has confirmed it will sell apartments to canada's hudson bay for 2.8 billion euros, including debt. hudson bay in saks fifth avenue in the u.s. could bring it as part of the deal. metro 2.8. why is that? >> that was excluded in the conference call as early as today and in the morning. also, some people are saying that the price has been disappointingly low. there is speck tlags metro could recognize 2.8 billion euros before we got the news early today in the morning. the rationale for the canadian department chain is extremely perfect. as the first step into the

european market, but also it was actually the crown jewel of all the department chains in germany. they're performing pretty well to what the industry looks like. they even made a good profit last year and also what hudson bay is thinking is that they're run quite efficiently. so what they do they're not planning on closing any stores not shedding jobs. and also they're saying that they're planning on investing money into their online tools. so it's a positive story for kaufhof. back to you. let's look at thomas cook which has landed in china. the uk travel group is forming a group with fosun. the company will make an initial cash contribution of 1.6 million pounds to the deal.

it's up 0.0.seem ma. wi-fi excluding altitude. we'll speak to the ceo who is bringing connectivity to the airline travel. that's coming up after the short break.

welcome back. aviation industry heavyweights airbus and boeing will vie for big orders at the paris air show. boeing placed its 20-of year outlook last week. but its french rival expected to follow suit. let's go back out to paris. >> reporter: it doesn't matter if it's boeing or airbus if they lock in a big order because the gentleman behind me has interest in both companies. let's talk about multilink. and your efforts to take a lot of information that's out there, in terms of a better ability to track commercial airplanes. >> yeah today, there's a lot of systems on the airplane for navigation and communication that are reporting certain information. and what we're doing, we're taking all of those despairet themes and pulling them together to use them for very accurate tracking. we've got nine airline customers. right now, we're in trials.

we'll be offering a flight tracking solution here in the fall. >> reporter: a couple years ago, if somebody would have brought this up it would have been a yawn and a footnote. given what we've seen over the last three years with a couple of these commercial aircraft diaster ers diasters, it makes people realize the importance of it. do you think peopleze r the multilink in a system like this? >> yeah the capability is there, the technology is there to go do it. we're just integrating it and providing it as a service to our customers. and unfortunately, i think we now recognize the need for that capability. >> reporter: were were talking earlier, you've got a vested interest in the cockpits of the future especially were the next generation of aircraft on wait. when you look out over the next five years how confident do you feel about what we're seeing for the commercial airline business? >> we're very confident. boeing and airbus are very

robust. the new once are coming out with efficiency and improvement over aircraft. and we've got a lot of share that we've gained on those airplanes so we feel good about the output. >> reporter: you've dot the content, particularly in the cockpit, we're going to see the "c" series fly later today. it stumbled there's no doubt about that getting off the ground. when you look at that over the next year do you find them gaining the traction that they need? >> yeah we do. they're getting through the flight test and certification program. as we've found in all airplanes that's a risky venture. but we're excited about getting that into the experimentation phase and then in the market. >> the last question the smart cockpit, we've talked about this in the past years when you've been here in the show and we've had you on. we're about to that take that next leap with even more capability inside of the airplane? >> yeah, we're equipping the aircraft. it's much more than just the

smart airplane. it's not connecting it with air-to-ground networks. moving information from the airplane to the ground. and we see a big opportunity to provide value-added services to our customer once we have that connected airplane. >> reporter: kelly orpert. you see, guys it's not always boeing or airbus. bring it in we like to see those orders. guys back to you. >> we'll be back out to phil later in the show. indeed airbus top endis is on cnbc, 10:00 a.m. eastern time. in about 20 minutes we'll hear fabrice bregier the president of airbus. the stock exchange opens to foreign investors today, a move aimed at liberalizing one of the world's least advanced markets. now hadley has been speaking to

the ceo of the exchange. she joins us now, what are the take-aways? >> good morning, carolyn. it's a big day for saudi arabia you have a market cap of $580 billion. they're looking to diversify. they're look for institutional investor, they're looking to tamp on the volatility that we've seen in the market there. so exciting times. we're in lebanon, we spoke of the ceo of the stock exchange first on cnbc i asked him what this has to do with trying to diversify saudi's economy away from oil. take a listen. >> there has been a real momentum. i think that's mentioned earlier by policy acceleration. there's been a number of government structure put into place which are geared towards accelerating a movement towards an open market a more inclusive market. we have the council of economic affairs and development which has recently been put into effect. which is led by our current

crown prince who is a very young man. >> 29 years old. >> 29 years old. he's a very efficient decision maker. i think he has a number of policies that he has in place to accelerate for the ipos in the market. again, to be more inclusive of change. within our capital markets and within our economy as a whole. we have a development plan which is focused on the economic and social development. so there's a lot to be done in saudi arabia. and i believe we have the right people in place now to basically take that forward. in terms of for example, the cma chairman very recently appointed his excellency. he's apractitioner, comes from the debt capital markets lawyer by trade. he's been a great partner for

the saudi's soaks. and i believe that some of the steps that he's taken, over the last month or so particularly on the gfi framework have been phenomenal. the gfi framework or rules will accommodate interceptively with a fact sheet which is actually approved by the board of commissioners of the capital market. that's never been done before. the reason why it's been done to ensure that the rules which some people may not understand. but the acceptance and understanding of those rules. and i think that choice a lot of progressiveness. it shows a that he's client-oriented and he wants to make sure that it's both at the local and international community are well aware of the dynamics of the framework. and i believe that will continue in other initiatives as well. we have the ministry of commerce, again, a very progressive person he's very much interested in developing a

grassroots movement. and creating sustainable growth model for the kingdom, by stimulating the sudanese and so far. we have his excellency who is also the governor of the central bank. again, ex-practitioner. so all of these people have been put in place to make sure that we evolve as a nation as we go forward. and i think, again, exciting times. and it will only body well for the kingdom as we go forward. >> so that was the ceo of the saudi stock exchange speaking to us on cnbc. we hear from him basically talking about how progressive they are in the foreign investment. how they're trying to make sure they do everything just right to ensure that the investors that saudi arabia is ready for business. and obviously they have a lot of interest from msci. the questions are being raised

how quickly the rules were evolve i lot of exciting surrounding the saudi market today. guys. >> thank you so much. some investors say this market is san expensive trading, five had year high. meantime, want to move on to some flashes that we're getting out of greek media. they're tloorgt prime minister of the country will hold an emergency government meeting at noon bst. or 1:00 cet. this safer the tox between the eurozone creditors in greece broke down once again over the weekend. still to come on the show the race for the white house heats up with hillary clinton and jeb bush vying for the lone right. could the 2016 ballot look like a repeat of the 1992 ticket? we'll discuss -- coming up.

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the greeks make way on european equities. the prime minister tells creditors to get realistic after another weekend of failed talks.

building a real estate giant, deutsche annington said it's open to further acquisitions as it announces a capital fund to fund its latest takeovers sending shares into the red. metro also on a shopping spree. the german retailer will use proceeds from the $3 billion deal from hudson bay for expansion rather than a special dividend. the paris air show taking off. coming up, we hear from the ceo of airbus fabrice breg yes on how he plans to clip boeing's wings. and you are watching "worldwide exchange." let's take a look at european markets on this monday morning, because at this point there does seem to be this lack of conviction in the market, especially were the greek uncertainty weighing on sent tam. the german market is down better than 1%.

or 49 points and the ftse 100 down 0.1%. >> as you can see the open in the u.s. 2.33. having flirted with 2.5% about a week or so ago. the german ten-year bund was now 0.8%. >> a quick look at the markets and particular look at 112. we saw it closer to 114. with all the greek worries all the uncertainties surrounding the outcome for greece well we're down on today on the day we're only down slightly. but obviously this causes a lot of uncertainty and jitters. in terms of the u.s. dollar we are just a tad higher against, the japanese yen. let's take a look the at u.s. markets. a mix dade of trade last week having to do with the mixed economic data we were getting. remember, retail sales, that was seen as a bright spot and did

indicate that the u.s. consumer is in fact spending specifically on autos. we're looking at futures this monday morning. it seems like those bleak worries seem to be front and center. the dow down 50 point. the nasdaq down 16 points. keep in mind it did hit a new high last week. can that momentum continue in the next few weeks? also the focus on twitter with the resignation of dick costolo on top. and the prince has a 5% stake in shares of twitter that says that jack dorsey is as an interim ceo should not be a long-term leader. a lot on technology and what's headed for the social media company. >> the u.s. is planning on storing european equipment in eastern europe in the baltic. according to reuters, the united

states has not taken issue but could store tanks. the move could mark the first time washington has chosen to store equipment in the baltic state since the three joined nato. it comes as violence appears to be once again increasing in eastern ukraine. a local reporter was injured in fresh shelling over the weekend. meantime the russian is trading weaker. and the bank is widely expected to deliver its fourth rate cut in a row as it battled the depreciation in currency and high inflation. jeff, are you expecting a shocking decision from the cbr today? >> reporter: i think it's unlikely to be as dramatic. good morning, by the way. it's unlikely to be as dramatic as the 150 basis points that we had back in april. if anything i think the central bank can comfort itself with the fact that we seem to have seen a more subdued period of volatility. both around the ruble and

russian markets in general. so most economists have about 100 basis point cut pencilled in. and that would go some way to a assuageing growth concerns. those economists think we will see where around 1.5% to 3% slowdown for full year 2015. inflation sitting at just under 16%. also a challenge for the central bank. so perhaps they don't want to cut rate who aggressively this time around. but the path for inflation at least is in the right direction. we're looking at something for 12%, for year end, according to the central bank's own projections. so it's a tight rope at the moment for the central bank. on the one hand she'd like to stimulate growth but she doesn't want to weaken too much it and undermine some of the

support we've recently seen come back into the russian ruble. back to you. >> that was actually my next question aside from cutting rates, do you thank you devaluing the russian occur vaens priority number one for the central bank's molina? >> no i don't think so anymore. we've seen the russian ruble to 49 against the dollar. and i think that was quite far enough, as far as most major exporting companies here are concerned. now we're back around the 54 55 level. and i think most exporters are quite happy to sit around that number. of course the backdrop here as you know is that we have very dramatic declines back in 2014 where we went up through 70. and we've obviously seen a dramatic improvement in the value of the ruble since then. but we do have this sidebar program where the russian

central bank is trying to rebuild its reserves and is targeting a level of $500 billion. and obviously, that's something that the currency traders are keeping a weathered eye on. society central bank i think, would like to steadily rebuild its reserves and not see too much volatility from here on in as far as the ruble rate is concerned. i think they're comfortable with current levels which is why we may not see quite as an aggressive a rate-cutting cycle from here on in as we've experienced in the first part of the year. back to you. >> thanks very much for that. do head to our website for jeff's full preview of the russian bank decision. that's on cnbc.com. moving on worldpay is approving a listing in london which could value the company up to 6 billion pounds. and international capital from world bank of scotland were said to be higher. let's get the real story with

kevin dallas cpo at worldpay who is at the bank conference in belfast. kevin, how are you doing? thanks for joining us. >> i'm good. thanks for having me. >> before discussing your growth strategy perhaps one of the most transformative in the industry is apple pay. it's seen as a big opportunity. because you're providing the retail terminal that is being used by businesses to make those transactions. is that right? >> yes. that's right. we're actually really proud to be working with apple to bring apple pay to the uk. just as we did last year in the u.s. and yes, we're doing it offline at terminals, but also online and-n an app as well. >> five years as an independent company, many say that you're expected to take the company public here on the london stock exchange in the next couple of months. there's also rumors that you would potentially sell your

business to jpmorgan. so which one is it? which is the path forward? >> well look there's no secret that our owners are evaluating options. but i think it's much too early to say what strategic direction they're going to take the business in. for those in management, we just want to refocus on the existing growth plans and existing customers. >> and part of your growth plan kevin, has been to acquire new technologies, new businesses. where do you want to go? where do you want to grow? >> well, one of the interesting things about payments is you know, we want to grow everywhere. and what makes worldpay special and unique is the breadth of what we do and the scale that we do it at so you know we processed 10.7 billion transactions last year. we offer local acquiring today in 45 different countries. and beyond card payments we offer 326 other different payment types that businesses

can stop to merchant -- merchants can use to reach more consumers. so, you know i think our future is fairly clear. we'll continue our global expansion. we'll continue to add more options and more technologies as they become available. >> kevin, for a disruptive company like yourselves is the opportunity bigger in emerging markets where the sort of status quo of how financial transactions were done in the fast isn't so established? is it easier for you to grow more quickly in emerging markets? >> well we're seeing growth in both developed markets and developing markets. but, yes, it is true to say that we think there is more opportunity, in particular for our customers in emerging markets, as they look to capture, you know, their share of the emerging middle class in those markets. and, yes, a rapid conversion in particular to online payment in those markets. >> tell us about your stake in visa europe kevin. if you were to take your company

public or perhaps even sell your company to jpmorgan would you divest your stake in visa europe? >> well as i said our owners are considering options, but i think it's premature to say where we'll go and what will happen beyond that. >> opportunity, though is visa europe going forward for your company? >> well visa is one of our partners. we have a very good relationship with visa as you said part of visa europe but we also work with visa inc. and we work with 118 other partners around the world as well pip including good relationship with china unipay alley pay, temppay. >> you have said repeatedly through this interviews that your owners haven't made a decision as to what the future will look like. whether it's selling itself to

jpmorgan or ipo, when will the owners make a decision about that weeks, months? >> i think it's too early to say. >> so we're going to go i guess. >> we tried. >> yeah we tried. >> kevin dallas cpo at worldpay. >> see the latest developments in world payments including the big one that offers currency exchange for cnbc. hillary clinton relaunched they are second bid for the white house over the weekend during a rally in new york promising to fight for work americans. in her first major speechl of the campaign clinton outlined policies aimed at supporting the middle class including an increase in minimum wage and parent relief. meanwhile, the former republican of florida, jeb bush is expected to formally launch his bid for the white house later today. edward lawrence joins us from washington with the latest. edward. >> reporter: well, right now,

former governor jeb bush is preparing for his announcement. he's expected to highlight his executive experience as governor. and also talk about 90 million jobs that he wanted to create in the united states. now, bush will make the announcement at miami-dade college in florida. and to show that he has appeal across many cultural lines, one of the things he will say, he will stress the ability that he can create jobs not just in florida but also across the nation. bush also is expected to stress a stronger america in the world. part of his talking points actually see that our enemies no longer fear us and our friend no, sir longer trust us. bush released a prelaunch video on sunday in preparation for the event today. now, over the weekend also he hit on the democratic side. hillary clinton is in iowa to reintroduce herself to voters. she also told them she can put them all back to work and also create jobs and keep the economy as strong as it is. she finished third in that state in 2008 and wants to reintroduce

herself to voters so they will improve her stance this time. and push her through, hopefully, is what she's thinking. but today is jeb bush's day. he plans to make that announcement at the college campus in florida. then go on tour tuesday in new hampshire wednesday, iowa. and then thursday south carolina. so he's expected to have a very busy schedule to finish out this week. >> got a new logo thank you so much for that. still to come on the show paying the pricing of election promise. we'll see why david cameron holds a pledge to britain's e.u. we'll be back.

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the russian ruble is trading weaker versus the dollar ahead of central bank this is slater this morning. the bank is widely expected to deliver its fourth rate cut in a row as a battle of depreciation in the currency and high inflation. joining us now is tatiana oliver senior economist for russia. i don't understand what the cbr is targets do they want a weaker

currency or a stronger currency? i'm not sure. >> good morning. it's not easy to follow how central sbank going to make its decision because it can no longer afford to be purely inflation bank. i think this should be the reason why the central bank may be proceeding cautiously with rate cuts. it may cut it 50 basis points but now we think it's going to scale down the size of the cuts perhaps we -- what the market expects is the most likely outcome which is 100 basis point cut. and you don't think the central bank now would want sharp ruble weakening because the russian situation is quite nervous after last week to sell it. >> tatiana, i want to talk about the repercussions in the g-7 meeting last week. of course, russia wasn't there. there are talks of sanctions

being increased, certainly not decreased. would that be worrying president putin? or has the economy been able to shrug it off more this year than last year? >> well it doesn't seem that economists have completely shrugged it off. those on the demand side indicate it's actually quite poor and it remains at the further deterioratation of the political wages. we don't think at the moment there say high likelihood of further sanctions, however there obviously say need to watch the situation in eastern ukraine where tensions flared there recently. so, there seems to be still some risk here. >> the central bank announced it would buying $100 million to $200 million of foreign exchange to replenish its reserves. what are some of the risks associated with russia. one investor is telling me there should be some type of financial talk that would ensue. what are your thought, tatiana?

>> well here the central bank also has to be very careful. actually the central bank government has said that the central bank is not in emergency room its of weaken with the purchases. also the size of $100 million 10to $200 million unless the ruble is going through another selloff. we think it could proceed at this pace if the market is relatively stable. however, as i said there was a selloff. at that time this became a concern for the market. if these purchases continue over a number of years, in order to rebuild the effects of this they're not a very big risk. however, any increase in these purchases i think would mean that the central bank would no longer be comfortable with the ruble and would want to weaken it. >> we're going to have to leave it here.

tatiana orlovo senior economist at rbs. moving along, david cameron's promise of membership to the e.u. has prompted the s s&p to lower it. s&p said the growth promised by 2017 is quote, a risk to growth process. earlier we spoke to s&p chief ratings officer morris kramer and asked him if britain might be better off outside of the e.u. >> he wants to be careful in losing the influence in europe over the direction of policy. so it's really a very contrairery to what needs to be done. >>est est trinteresting to what he has to say. that it's a little overdone.

buying it as a member of the ec and not the eu. taking part in trade negotiations, the country still have to toe the line on various rules, they just don't get a seat at the table to discuss those rules, and i think that's san important point. but there is an uncertainty on what will happen. i imagine, as we get closer to the vote we'll have more clarity. >> we might also have more turbulence in the markets. today, as we take a look at goat markets, it's been three or four years since markets around the world have reacted to when s&p or fitch came out and said something. we always talk about them being behind the curve, i think, in this case what they're telling us. but they told us on friday that's not news. >> to your point, though the general election results generally reduced political uncertainty. but that's clearly not the case when looking at the markets. the markets have lost their post-election gains trading

right around 7,000. but clearly, investors keeping an eye on that potential referendum and what that means on stocks going forward. >> in general, i think people welcome the post-election outcome and impact that's had on markets. certainly by media advance. but if there is an e.u. referendum as we get closer to it will certainly increase the uncertainty. when we do see that uncertainty, i think it's going to be overdone. i don't think we'll vote to leave -- >> we don't know that. >> no still don't know that. but the general election vote went explicitly to european parties at least half of conservative voters will go there as well. i do think that we're going to be a long way off voting to leave. and i also think that cameron will secure a little bit more than what people expect at the margin. and plus allow the government to campaign to stay. >> for now, what he wants to do

is just cherry-pick. and he simply can go ahead with that. and the european partners have made that very clear. in the e.u. if you want to stay, you don't get to cherry-pick. >> we do have a risk in all of this in the rise of s&p and what that means for scotland going forward? >> well it's an important exit debate but a different debate. and i think it's not as pressing because the percentage of the majority they don't need to referendum to scotland. scotland probably doesn't even want it because they haven't got the finances for the moment. they've got another scottish election to fight next we're. i don't think that's a pressing one. european one because they're committed to it is the pressing one. even that at least at euro was. i think it will happen as we get closer. >> with election uncertainty, that's perhaps why you have investors sticking to the sidelines waiting for some type of resolution to come to the

forefront. we should point out it's a big weekend for the uk retail sales and projection on housing inflation. let's move on to entertainment. dinosaurs still rule the earth. "jurassic world" breaks a record bringing in $511 million worldwide in its opening weekend. it's the first movie to gross that much in a single weekend. the movie produced by comcast universal pictures made $2.46 million in the u.s. and canada. topping estimates by more than $50 million. a big one there. >> more than $500 million indeed. but big, big -- sorry -- i mis-said that. my bad. now after a soft few months for the industry is cinema making a major comeback? or are we seeing the impact of a great franchise returning? joining the conversation on "worldwide exchange" get in touch with us worldwide.cnbc.com

or cnbcwex. this san interesting one. i wasn't expecting this to be anywhere as near as big. the first one was big obviously when we were coming out. this is attracting all types of viewers. >> you know what's interesting, it's not just about the dinosaur and the "jurassic park" nostalgia. but the exit polls say 39% of the viewers are below the age of 25. these are viewers that haven't seen the first one or two, at least not in the cinemas. so it's not just nostalgia. the u.s. had an incredibly warm weekend. sometimes it can result in families spending time outside and not in the theater. clearly there was interest in "jurassic park." "pitch perfect 2" and "fifty

shades of grey," did you see that one? >> i haven't seen any of these. back to jurassic itself i've seen the trailer. it looks like the other ones. >> yeah but the effect, so much more than the last two. >> the plot wasn't as great as it was in the previous three. that's what they say. >> the want i want to see is "entourage" when it comes out. are you a fan of "entourage. "? >> i interviewed adrian. he invests heavily in the startup scene. >> owe you're a friend of his, in fact. why don't go get to go to the prem premiere? >> unfortunately no tickets to offer. >> a lot of good films coming out, as you say, summer is not a good time for that. >> we were expecting this summer to be the blockbuster summer as you mentioned. we've had a couple slow weekends in the u.s. and this is a really big one. maybe the movie industry is safe.

we have "ted 2" which is mark wahlberg. still to come, we hear from the country's former prime minister. we're live. stick to that.

"worldwide exchange" starts now. i'm seema mody. >> and i'm wilfred frost. here are your headlines around the world. europe's stocks followed into the red as prime minister tsipras tells creditors to get realistic. german lawmakers say a deal won't happen at any price. saks fifth avenue is an important parent as hudson bay so gohs shopping in germany for nearly $3 billion. politics in focus. former governor jeb bush formally prepares to announce

his bid for the white house, a day after hillary clinton ramps up her campaign. welcome sthot. we've got this to you. reahead, we speak to the kraef of the saudi stock exchange. and jack dorsey not the right man to lead the social network. and hollywood rolls back into life as "jurassic world" ratchets up a global weekend. we're on the hunt for the next big movie. welcome, everyone to the show. let's take a look at how u.s. markets closed on friday. and given the economic data we've been getting over the past couple of days investors are

trying to understand what to expect from federal reserve chairman janet yellen on the first of a two-day meeting kicking off tomorrow. right now, they're looking at futures indicating a global open. it was a down day for wall street on friday with the dow losing about 140 points. it's interesting to see how traders are, just in the u.s. despite the focus on the impact of the greek potential default on the eurozone on the u.s. s&p 500 losing about 14 points. i want to point out given the volatility we've seen oil prices that's resulted in some investors taking money out of energy stocks. when you take a look at the s&p 500 energy was the worst performing sector. nasdaq did lose a little down around 32 points. bonds still a big part of the discussion elevated yields and that continues into this week, care carolyn. >> yields for the core have scum down why? because of safe haven buying

because of greece. that's the picture that we're seeing and also the picture for today, prices for the ten-year treasury and the ten-year bund that means the yield is lower. for the german yield, currently up 83 basis points. the ten-year u.s. yield is 3.5% off the 2.5% levels that were trading close to last week. i do want to tell you that yields for the peripheries, specifically, greece of course they've shown off of that also spain and italy. we're seeing the euro dollar off with pressure. greece, up 0.3%. and the dollar has seen a little strength against the japanese. up 0.1% all eyes of course on the fed meeting this week. a economic look at commodity markets we're seeing double oti

lower. and keep an eye on the storm that is forming in the gulf of mexico. that could give a little bit of support to u.s. crude. let's have a look on what to focus on this trading day in the may. we've got may industrial introduction at 9:15 eastern time. economists expect a small increase in manufacturing output last time following a decline. that was a continued drop in mining to weigh on activity due to low energy prices. 10:00 a.m. we've got the national association of home builders various. back to greek. the standoff between the greek government and its creditors over a cash reform deal over the last few hours. a number of angela merkel's allies have warned that patience is running out. the cbu parliament leader adds that the parliament will not back a deal without the imf. this comes after talks over the weekend broke down from both sides.

greek prime minister lexi tsipras said they will wait for that. the former prime minister george pappandreou said there's a deal to be made. julia chatterley asked him how gross greece was to a brink a disaster. >> as it seem we're very close to, as you say, a brink of a disaster. with an adjustment program five years. people have sacrifice believe sacrificed 25% of our gdp, high unemployment. all of this to remain in the euro and at some point exit the markets and get on the path of growth. and greece has great potential. so i think we really need both sides to climb down from their high horses and really work on a compromise to find a solution and move forward. >> all right. let's get back to julia, who actually did that interview.

really interesting interview. look he was a social figure during 2011 2012 and he's actually one that proposed a referendum back then an he's doing it again right now, i mean that's just a recipe for chaos, isn't it? >> well i think what he's saying, the greek people need to take ownership. they cannot have austerity and keep the euro. i think they have to decide. and make some sense to me. the problem is we don't have time to do that now. and i think a lot of the talk is whether or not we get to this euro group. the suggestion behind it seems that they don't have time now to put together some kind of blueprint for the financiers to look at. they have negotiations even back to thursday at this stage, the question is at what point do they get a take it or leave it like alexi tsipras.

>> given the laxck of time this is a purely hypothetical question, given we do have a referendum, the results of that referendum do you think they will heed to that? with the tsipras government over 50? >> of course. what would you think if we had enough referendum? maybe there's a few people that change their minds around that but also what that referendum will say is, look, we want to stay in europe. back to the austerity, i'm not sure beyond galvanizing the people, really what that achieves. what the program that they're signing up to here is not in the best interest of the economy, albeit, yes, the need for reform. but having deficits at this stage is going to further hurt the economy. julia, thank you very much.

everest is telling its wide body to the airlines. moments ago, we folk to fabrice bregier at the paris air show and asked him about the deal. >> yeah very pleased. we talked about 20 to 30. the region in russia and this is something we promoted about 18 months ago, starting with china. and i hope china would join which is the fourth regional missions with high-density traffic. and you know that in saudi, there is a huge requirement for additional flights. so this is the first application. and we are delighted. >> and fabrice, when you look in only certain areas of the middle east, but also southeast asia that's where this aircraft is really going to find its niche, right? >> i believe so. because one big concern now for transportation is the constraint

at the airport level. if it is reliable this is extremely powerful to maintain the growth of traffic without extending the size of the airport. >> let's talk about the a-320, how do you feel about as you move forward with production of that aircraft and deliveries? >> so, we are planning to certify the first equip edped with -- >> still on target though? >> yes, yes. then we move on at the end of the year. >> after that? >> the big challenge will be to ramp it airbus. what is the critical pass the engine. the engine is certainly new. the aircraft we know and we can do it. >> that's the big question people have at the show this year. in the past it's how many orders can you book? but the big question is can you

ramp up production and maintain profitability? what's different and the environment now than say, six or seven years ago, that you feel more confident in being able to do that? >> well first of all, we have a huge delivery. we believe the trend of the market is extremely positive. and our competitors also. second, we have new programs the 50 and 40 new. so this is appeal to get allies because they can save 15%, 20%, 25%. secondly, we work together we have to anticipate issues so all in all, i'm confident. >> and that supply chain will still extend down to alabama as you begin production in the next year? >> this is part of the plan we anticipated because it takes three years, after the decision to add an up and running and finalize the new line. we will approve it in

mid-september. and four aircraft a month in 2017. >> let's talk quickly about the a-3. so much discuss about the future and whether it can be viable. what do you say to the critics out there who say it's going to limp along here and eventually you're going to have to pull the plug on it? >> i don't think so first of all when you travel as a passenger in an a-380, you can see by far, it's best aircraft the smoothest flight. the highest level. and this one will pay off. second this year we are reaching it financially. in the first year it was truly a test to get there. but the market after that doubles in size every 15 years. so there will be a bigger market in the future for the a-380 for bigger aircraft. >> and for those concerned about some of your current orders that

they might waiver that you have people who say we're going to push back we're not going to take delivery of those, you can hold on to those? >> yes, it's clear that companies are seeing a difficult situation, we can hold back on the 380. but we are supported by bigger allies and the biggest step for them in the long haul is deliveries. we've got 60 aircraft out of the facility that we've ordered. but they want to ensure us to investment in the future for the 320. still to come, saudi arabia opens up its market to foreign investors. we're looking at opportunities and risks in reiyadh. stick around.

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welcome back. let's give you some headlines. saudi arabian airlines become the launch customer for airbus's new regional a-330 jet. saks fifth avenue's parent hudson bay snaps up a deal of $3 billion. jeb bush prepared to formally declare he's running for the white house. let's get back to the russian story. the russian ruble has been trading weaker versus the dollar and the euro ahead of the central bank.

this is rates later on this morning. the country's central bank is widely expected to deliver its fourth cut in a row as it battling the depreciation of currency and high inflation. let's go back out to jeff in moscow. jeff, what exactly are we expecting today? >> reporter: well i think it's steady as she goes. i think that will be the message that miss molina at the central bank will want to convey. 150 basis points and we've had a series of four cuts in rates since the central bank jumped last year to try and protect the declining ruble. so they've been unwinding those emergency rate hikes. we're shutting up 12.5% on the key policy rate as we speak. society smart money is going for 100 basis points today. no reason i guess, to doubt that move. i guess the expectation that the right path from rate reductions

will probably become hour shallow as the central bank becomes more comfortable both in projected declines inflation and also some stability that we've seen in the ruble. back to you. >> thank you for that. >> do head to our website for jeff's full preview of the central bank decision on cnbc.com. still to come on the show to lease or not to lease. we're at the paris air show with a ceo who say veteran of the airline sector with his take on where that's headed. we're back with "worldwide exchange" in just two minutes.

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welcome back. airbus has confirmed a deal to sell a shorter range version of its a-330 jet to saudi arabian airlines making the carrier its launch customer for the aircraft. this as allegiant say are sector becomes more competitive. phil joins us from paris. phil? >> reporter: thank you very much i'm joined by the chairman and ceo of air lease. you guys have a very busy day. you're going to make a little news you're replacing the first with the airline. >> this will be the release of 7810 which is the largest

version of dreamliner. we're releasing eight of those to street yaumvietnam airlines. >> you have so many aircraft placed with them. people are worried about airlines increasing their capacity. adding more aircraft into the market and not being able to do it efficiently. are you worried about that? or are you able to see it as a different industry? >> i think with the financial crisis, we're seeing airlines much more zlindisciplined. much more thoughtful, much more rational in increasing their credibilities. >> for the investor who is a little spooked out there, would you say relax a little bit? just because we an founded these capacity additions we're going back to the old days of everybody fight for market share? >> exactly. a lot of older will be retired. less fuel-efficient older

high-maintenance planes are being retired. 747s, mb-80s. >> you have so many of these aircraft flying around the world. and configuration, increasingly we see reports of airlines wanting more seat tighter pitches, basically packing more people in planes. is that accurate in terms of what we're seeing out there? orb is that sort of getting all the news while in reality it may not be reflective of what we're seeing in the industry? >> well there there has been a trend for economy lass interiors like ryan air, ez jet in europe. you have the ultra-low cost airlines in the states. whereas in business it's gone the other way, first class ultra luxury. business class is like the first class of five ten years

ago. so at both ends of the spectrum we're seeing movement. more intensification on the economy class. more of a sardine configureationconfiguration. >> last question, we're usually seeing huge orders. we're not seeing that this morning. is this more a bit of a pause for the industry we don't have the leaders but that's okay given the backlogs? >> well the backlogs and production rates are all-time highs. but there will be a few orders of significance but the overall buying is more leveled off. more rational more in harmony with quill libeequilibrium. >> as they place the first airline with vietnam airlines. that's going to be placed with air lease in vietnam.

moving along, saudi arabia stock exchange opens to foreign investors today, a move aimed at liberalizing one of the world's least successful markets. we spoke to the ceo of the saudi arabia stock exchange first on cnbc, and asked how the move fits into an overall strategy to diversify a way from oil. listen in. >> there has been a real momentum. and i think that's actually earlier about policy acceleration. there's been a number of government structures put into place, which are geared towards accelerating -- accelerating a movement towards, i think, on the open market. a more inclusive market. we have the council of economic affairs and development which has recently been put into effect which is led by our current crown prince who is a very young -- >> 29 years olds? >> 29 years old.

he's a very efficient decision maker and he has a number of policies that he has in place to accelerate or the ipos in the market. again, to be more inclusive of change. within our capital markets and within our economy as a whole. we have a development plan which is focused on the economic and social development. so, there's a lot to be done in saudi arabia. and i believe we have the right people in place now to basically take that forward, in terms of for example, the cma chairman very recently appointed his excellency, a very progressive individual. he's a practitioner who has come from the debt capital markets. a lawyer by trade. and he's been a great partner to the saudi stock exchange. and i believe that some of the steps that he's taken, over the last month or so particularly on the gfi framework have been phenomenal. the gfi framework or the rules

where accommodated or supplemented by a fact sheet which is actually approved by the board of commissions of capital markets. that's never been done before. the reason why it's been done is to ensure that people -- the rules that some people may not understand but the fact sheet supplements the understanding of those rules. i think that shows a lot of progressiveness. it shows he's client-oriented, and he wanted to make sure that the local and international community are well aware of what the dynamics of the framework and i believe that will continue in other initiatives as well. we have the minister of commercial. a very progressive member. he's very interested in accomplishes a grassroots movement.

we have the governor of the central bank. again, an ex-practitioner. so all of these people are being put into place to make sure we evolve as a nation as we go forward. i think, again, exciting times. and it will only bode well for the kingdom as we go forward. still to come on "worldwide exchange" -- fed chair janet yellen takes center stage as the central bank's latest policy meeting kicks off. will investors get more clues on the time line? we'll discuss. and stock futures pointing lower this monday morning.

and you're watching "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. here are your headlines from around the world. u.s. stocks said to follow europe into the red as the greek stalemate weighs once again. and tsipras tells them to get on with a deal. and airbus speaks about a landmark deal with saudi arabia airlines for the new a-330 regional jet. >> i'm very pleased.

saks fifth avenue parent hudson bay goes shopping in europe snatching up germany's kaufhof department stores. and ready to run, jeb bush expected to announce he's running for president the day after hillary clinton ramps up here campaign. and it's all about team janet yellen this week as the fed kicks off its two-day policy meeting. question, will we get an indication as to when rates will in fact rise. hopefully, we'll get some clarity on wednesday when janet yellen speaks. dow jones did see volatility losing 120 points in friday's trade. the s&p 500 holding on to 2,000 seeing a loss of 14 points. technology wasn't a bright spot on friday. because of that we did see the nasdaq see a loss of around 31 points. taking a look at europe because

right now there are a lot of fast moving developments taking place between greek leaders and european policy. and we're seeing investors react negatively in today's trade. the dax is down. keep an eye on the uk index, we do see retail sales, industrial production and house price inflation given the shortage of supply. right now trading down at 47 points. let's take a look at the euro if we have it. we are looking at the euro below 112 in today's trade. we go to the euro right now hold holding on to 112 against the u.s. dollar. carolyn. may industrial production is out at 9:15 a.m. eastern congress expect an increase

following a decline in april. seeing a continued drop in mining due to low energy prices. at 10:00 a.m., we get the monthly settlement survey from the gnash association of home builders. joining me is the senior economist at wells fargo. thank you for joining us so early. look, it's all about the fed this week and we got the really good retail print last week. do you think that the fed will seem hawkish this week? >> i don't think so. i think that the diagonals are moving the right direction right now with inflation creating. but i don't think there's anything hawkish for the federal reserve. i think that they are going to stay put until september which is what we believe is going to be the first move. >> then in september do you think it will be a one and done scenario? just one hike in september, nothing for the rest of the year? >> we think so yes. i think that they are going to

check it out. see what the reaction of the market is. and see how they can start to build from that start. and we don't think that it's going to be very very fast. i mean it's going to be a measured approach. they know that we have been in this low interest rate environment for way too long i think. and they are going to measure their steps. >> after this meeting, there are only four other policy meetings left in 2015 when the fed could potentially raise rates, july september, october and december. how many of what yellen says this week could help investors understand if we're going to see a rate hike this year? >> i think that the rate hike is going to happen. i think that for psychological reasons they have to move they

have to give an indication that they are ready to start moving. we don't think that they are going to move just down much. because, you know the economy -- there's some sectors, especially housing market that has to continue to improve. and we are already seeing some movement in their long end of the curve, which is already moving mortgage rates higher. so i think that they are conservative right now. they want to see what happens to the housing market as the mortgage rates start to move up. so i think that they are going to be very, very measured. there's no hawkishness in their view right now. >> all right, we'll see if they're right. eugenio, thank you for joining us. senior economist at wells fargo takes us what we could potentially expect from the fed. still to come, canada's

largest retailer goes shopping for a deal in europe. details on the transatlantic sale coming up -- next. heroes charge! ♪ ♪ (lightning strike) ♪ (kiss)

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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. let's talk twitter. saudi prince says he does not want jack dorsey to be twitter's

permanent ceo. in an interview with the financial times he said the company needs a new leader with extensive experience to put priority on new users. he owns a 5% share in twitter. it didn't nouns that dick costolo would step down. you can seat stock losing a lot of momentum over the past month. and now year to date basically flat on the year though. >> realistic with that some with a remarkable experience. we spoke on friday. twitter still a story to watch. now, moving on let's also talk about retailers at transatlantic takeover. involving two of the oldest retail names in canada and germany respectively. let's get out to landon dowdy from cnbc hq with the details. >> they strike a deal to buy

from kaufhof department change for $3.2 billion. they've been in talks for months. the transaction is expected to close in the third quarter. and metro says it significantly reduces its debt. kaufhof which was founded in 1879 operates 135 stores in germany and belgium. primarily in city centers. the chain was part of the merger which created metro in 1996. saks fifth avenue is the oldest retailer in the late 1600s. it owns companies including saks fifth avenue and lord & taylor. it's expected to invest heavily in kaufhof especially in the online business. hudson bay is up about 11%. there's also a deal in the housing sector today. standards pacific and the ryland group are merging.

standard which focuses on upscale homes has a large presence in california. while ryland with first-time buyers is stronger in the u.s. in the midwest. while new home sales have risen this spring the national sales base in april amounted to just 71% of the annual average over the past 15 years. in europe standard pacific subpoena about 2% while ryland is up more than 1%. wilf, back to you. >> landon thank you very much. i want to bring you up to date with the latest on greece. some comments here. not ground breaking but quite interesting nonetheless. a german government spokesman said that the german governments wants greece to stay in the eurozone. and the german finance minister spokesman said the ball is back in greece's court. we've heard that so many times before. meantime the portuguese president said that an agreement

should be reached as fast as possible this week if possible that's what the markets are hoping for. here are your headlines. saudi arabia airlines become the launch customer for airbus' a-330 jet. hudson bay for $3 billion. and jeb bush expected to formally declare he's running for the white house.

saudi arabia's stock exchange opens to foreign investors today, a move aimed at liberalizing one of the world's least accessible markets but there are restrictions on who can invest. hadley spoke to the ceo of the stock exchange earlier. >> this is the start, it's not the end. when you say conservative

approach or careful approach we're looking for long-term value investors who have taken up to shape the companies that they invest it. so we're look fog shareholders that basically allow us to align better with the best business practices and hopefully that will accelerate our convergence to higher standards of corporate governments, escalations and hopefully make more sophisticated research coverage of our companies. so that's our reason. the reason really is not about raising funds for saudi arabia. i mean we have a lot of liquidity there. but it's quality to influences that we're looking for, that we hope will help develop our markets. were see foreign stakeholders as our partners. partners who will help us develop our markets as we go forward. that's the simplest part really.

>> so saudi arabia is moving at record rates. you have been seen by many as aggressive as well. a great deal of expenditure essentially. >> yes. >> how much do you think that has impacted his majesty's zougs open the market today? >> well i think that the opening up of the market was potentially a foregone conclusion. the timing of which was granted to the capital markets authority. they were given a mandate to decide as to when the market opens up. this happened in part with our previous king. and therefore, it was strictly under their jurisdiction. because the rules and policies surrounding the framework was decided in advance. i think, again, in terms of the timing of opening up to the

qualified -- the timing of opening up the market to qualified foreign investors was based on a promise that was given by the cmu chairman previously which stated that we would be opening up in the first half of -- first half of 2015. >> now, with us on set now, it's quite a landmark moment for the saudi arabian stock exchange. does it immediately lead to a big influx of foreign investment? >> that's what they're trying to prevent. you heard the ceo talking about basically laying out we're not doing a soft launch. but they're being quite measured in how quickly you can get an influx of cash. obviously, they don't want the volatility. and that's the problem because that's the volatility that we've seen over the last couple of months especially on the markets, that they're trying to tap down on so this is all a step of the strategy. >> the next step would be see we

saudi join the c is the i? do we know when that is? >> we don't know. in tellers of the soft launch that's what they're trying to do. it's during ramadan in trading, it seems to be less volatile. so obviously, they're hoping that will be the case as well. >> france said the saudi market is actually expensive. it's risen 15% year to date. it's valuation, the highest in about five years. you got to have stomach, essentially, if you want to invest in the market no? >> i would agree with that. at the same point, you have to realize there are the benefits of being involved in the saudi market. and you're really involved in the asian markets as well. it's an exciting opportunity either way you look at it. >> stay with us for a moment because hillary clinton relaunched her second bid for the white house over the weekend for a rally in new york

promising a future for americans. clingts clinton aimed at supporting the middle class including a raise in minimum wage. jeb bush is expected to formally launch his bid for the white house in miami. hadley still here on set, could it be clinton versus bush all over again? >> it could be include. it looks like we're shaping up that way. we have 12 candidates right? where are these guys going to go? jeb obviously has the cash. my favorite headline from the weekend was grand mother in chief. they're looking at this from a different perspective. apparently, she's even changed her look. short hair a different thought process going into this a populist message. >> question is can jeb bush get that fresh start that he's looking for despite his had history at pennsylvania avenue? >> this is a serious problem when your own mother is saying

there have been enough bushes in the office don't you think? barbara bush is quite known for speaking her mind. he was always sort of an anointed heir. he was a shot in the dark. what we have seen say lack of momentum so far from jeb bush i think that's going give leeway in terms of bringing more dark horses into the race. generally, what we've seen in the past there's a huge cash flow and he's reportedly got about $100 million already. generally, you need enough cash to campaign for two years. >> it's going to be an interesting rate. hadley, thank you so much. and now flashes coming out of greece. a greek government spokesperson says they will continue efforts to reach a deal. that's saying that their partners don't want debt reinstruction. but continued progress interestingly when asked this government greek spokesperson about earlier elections. they say this government has a mandate to rule for a four-year

term. we also just got a flash out of the belgium finance minister who says greece leaves us no options other than contemplating other options. that's a fairly cryptic one there. because of what happened in greece athens as down as much as 7%. earlier has losses now down 5%. europe down and france over 1.4% in the red. and the ftse 100, relatively speaking down 0.8%. the market move in the user will be because of that fed policy meeting. keep in mind switzerland as well. the dow indicating a lower open. let's get you an eye on what to watch this trading day. may industrial production is out at 9:15 eastern. economists expect a small increase manufacturing output last month following a decline in april. but see a continued drop in mining to weigh on activity due

to yep, you guessed it low energy prices. at 10:00 a.m. we get the various from the national association of home builders. let's get out to the chief market strategist at tempest partners. bob, good morning to you. there seems to be a lack of conviction. many selloffs by strong rebounds. and tug-of-wars between the bulls and bears. does that weigh on the fed or is there more to the story? >> i think you have sort of a two-pronged attack by the bears. it's on the fed policy and then negative comments out of greece. a huge rally on thursday really doesn't sustain. there were signals that wasn't going to sustain when you saw stocks like apple and facebook not holding their gains. apple turning wednesday and the big selloff we saw on friday. confirming technical problems and confirming even though the market has 28% chance priced into it mathematically the fed

is going to do anything meaningful this week i think they're worried. not necessarily worried that 25 basis points is a big deal but worried about what the fed is going to say. is it a one and done as you guys discussed earlier or a cycle? i'm in the camp it's a one and done. >> it does signify rate increases in september. could we see the ten-year break above 2.5? >> i don't know. that is our low in terms of price. our high in terms of yield. i think it does have to get above there to have any extended bear move into it. i don't necessarily think that's going to happen. it's going to hit 2.60 and then settle. i believe in the 2.45 range will be a new range as the fed leaks out in the market that this was a test balloon and we'll see how the market reacts to it. that is going to be a dip that you buy in the s&p, by the way. >> bob, hey, this is caroline.

it's awesome with the dow jones. 9%. some say this is contained to the transport sector given its history it's a leading indicator. which camp are you in? >> well i think it's contained. and i'll tell you why. i think that there are twhiems things are different. youer that phrase a lot. things are different this time. i think the transports are very much going to be affected by the overall energy picture. the u.s. is just named the largest gas producer in the world i don't think that changes. when you look at what's going on in crude prices you probably got another $3 or $4 up in the crude price. but that should be it in terms of the global oleil glut goes on. 20% or 30% lowering that price for crude. so i think transports will recover. i don't think they're going to lead the market until the whole oil story settles in. especially the rail stocks. the rail stocks are going to

struggle quite a bit. once they do settle in energy stocks move higher. >> let's just touch on the dollar particularly against the jen and the euro. because of the last couple of weeks we've seen dollar softness but this has come at a time when yields have been ticking up? >> well i think that's a great point. i think one of the factors you see is some improvement in europe. and i think that improvement in europe say little bit of a canary. i think the dollar strength is going to continue. i've been calling for parity in the euro which means international stocks are going to struggle in the u.s. kind of seems to conflict about what i'm saying about being a bull. i do think you'll see the dollar strengthen again. but again, that's going to be a temporary factor as the market realizes that the dollar strength is going to be gradual. it's going to spike at first. when you look at a dollar chart, steady as she goes from 2011. and through a band of 78 to 83. through that whole period of

time. crude oil fell dollar rally and settling into that range again, somewhere between 105 or 112. >> bob quickly, buy, sell or hold shares of twitter? >> i think you hold shares of twitter. i think it has to shake out. it's been beaten up so bad that i don't think it's something to sell. >> we're watching shares now flat on the year. bobby, thank you for joining us on "worldwide exchange." so as we wrap up we've got european markets in the red off the back of worsening news on greece. that's all we've got time for on "worldwide exchange." thanks so much for watching. i'm wilfred frost. >> i'm carolin roth. >> i'm seema mody. next up is "squawk box."

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this guy was just exhausted. is that true? >> with the new services like fabric doing so well and per ra

scope, this was the right time. we have a fiduciary duty. >> i think we can move as one entity, as one team. good morning, on the brink of a potential disaster group talks fail again. the global markets aren't pleased. stogs are selling off in europe and asia overnight. u.s. entry futures pointing to a lower opening here at home. taking flight. the world's aerospace giants gathering in paris. trillions of dollars at stabling. the ceo of boeing will join us live this hour. plus an historic weekend in the movies. "jurassic world" stomping to the biggest debut of all time. it's monday june 15th "squawk

box" beginning right now. >> announcer: live from new york where business never sleeps this is "squawk box." ♪ good morning, everyone. and welcome to "you'rejurassic squawk" right here on cnbc. twitter is looking for a ceo to replace dick costolo. but one investor said interim boss jack dorsey should not get the formal job. we'll tell you why prince alwaleed is saying this. weekend talks between athens and international lenders ending in a deadlock after 45 minutes. this brings greece even closer. european officials are blaming greece for failing to offer concessions to secure funding on