the prime minister accuses creditors of pillaging the country but german lawmakers hold their ground. >> we are willing to accept 2% but we also want him to do something with the pensions. he has to do something with vat and he has to make sure he's

collecting the taxes. >> an eu court rules the bond buying program is not illegal providing comfort to investors as bond yields move higher on the threat of greek contagion. >> shares in air france klm hit an 8 month low after a bid to save 80 million euros. >> an ugly picture for henkel. reports that they may have outbid for some of procter & gamble's businesses. >> and learning with lego. we'll be speaking to them as they put millions of pounds in higher education. could this be the year of donald trump running for president? we discuss his prospects. and a stanley cup success.

the chicago blackhawks celebrate their third championship in six years. we have the details on the clenching shut out. >> so welcome to the show. let's get to our top story which is greece. greece's government denied a report that it will impose capital controls this weekend if it doesn't reach a cash for reforms deal soon. it comes after the greek prime minister accused international creditors of pillaging the country for the last five years adding it was now up to them to come up with a plan to save athens from bankruptcy. >> meanwhile, greece's finance minister says he's not planning on presenting new reform proposals. they have criticized greece's

position in the stalled debt talks. earlier we spoke with the vice chairman of the cdu and asked what he wanted to see from the greek government. >> we want greece to come up with proposals and it's not understandable that he is telling us he's not willing to give us any proposal at the moment but he's coming to the table on thursday and want us to give him points higher posels. we have done it. we have made it very clear that first of all we need a primary surplus and we are going down to 1% but we also want him to do something with the pensions. he has to do something with vat and she has to make sure that he is collecting the taxes. it's not acceptable that so many people are bringing their money into switzerland or any other country and we have to pay it. >> julie, is there a united

front in germany when it comes to greece? >> we know merkel had tensions even if we date back to february in particular with the extension of the program she had trouble and we've seen more vocal voices. the vice chancellor getting a little bit more aggressive as far as greece is concerned but we have to come back to the fact that however much the rhetoric is stepping up and for merkel herself however much the concern with the german government merkel wants to be the chancellor that holds this things together rather than allowing it to fall apart. that's something that investors are still relying on. it would have been interesting to hear where he believed merkel changed her tune more than that. that's a crucial element here. >> there seems to be a sense of both sides moving further apart than getting closer together. do you think that either side is now at the point of

capitulation? >> i think that would be when they run out of money. the risk here that the greeks will be willing to drag this out to the point where they have no choice. i'm sure they don't want to risk it that far. we're getting closer to a take it or leave it deal. the more likely the terms of the deal will go back to june 2nd. i think what we heard yesterday from the commission in particular is there is negotiations around these things. i think they have converged. it's just the measures to get them to the surplus targets aren't present from the greek side. >> thank you very much as ever for joining us. we'll talk about the precise market impact in greece. despite being the backstop of angela merkel not being there and not wanting to be the better there when greece steps away.

we have started to see periferal yields move upwards as well. is the market now starting to react as if things are going to get worse? >> definitely. it looked like merkel was saying give us something. and what we've seen since then is really the greex comeks come to the table with proposals which is deemed as not credible with the european. enough is enough. if you can't come to the table with something realistic. and that looks like it's going to be the euro group meeting this thursday. >> presumably if this is going to stop if they're going to step back and let things be what they will be a 5.3% decline in the dax is not enough. there's much more down side. >> the markets have started

since the mid april highs. clearly if there was a greek default or grexit markets would go lower. do we go dramatically lower from here? i don't think we do. the big difference between today and 2011 and 2012 is greece is almost on its own and the debt held by the banks is moved over and all held by the public sector so a chances of a greece default or grexit are much much slimmer than three or four years ago. >> significant barrier to greece's path to reform as he promised to pay the pensions the lack of liquidity, how big of a concern is that for you? because the german dax losing a significant amount but it was the banks being the worst performing sector. >> it's understandable when you have the risk of something like grexit or default that the banks are going to be vulnerable until

we get to the point where we realize it's not going to trigger another flash across. it's not our view. our view is that this is much more self-contained because we had three or four years to prepare for this. every regulator would have gone to its banks and said are you sure you didn't have any greek risk? but investors are not going to buy into that until they see the evidence that that's the fact. >> what do you buy then? >> when? >> if you're not buying bank where is should you be allocating capital with the lingering greek threat? >> you buy banks but on a 6 to 12 month view. on a one week view it's going to be a vulnerable trade but the european economy is starting to recover. bank lend as good starting to recover and our view is that even if there is a grexit it's not going to stop that and the banks are the best way to play this but in an environment where people are uncertainty investors

don't want to buy those assets. >> in the meantime, the u.s. banking sector hitting a new 52 week high. a lot of that on the prospect of the fed raising rates. james we'll leave it there. head of european equity strategy at bank of america merrill lynch. thank you for your time. >> a u.k. company may have fixed forgotten pass codes. they use smilies instead of numbers and letters. it's more secure because there's more combinations making it harder to hack. >> which emojis would you use to describe the greek crisis? get innovative and creative here today. join the conversation. e-mail us at worldwide@cnbc.com. tweet us @cnbcwex. you can see our handles on the bottom of the screen.

wilfred you have a favorite emoji. >> it's the monkey one. >> the greek crisis one of the moment. >> or it could be stop speaking. they speak too much. >> the skull. >> which one is the skull. >> act it out for us. >> come on. >> no. >> you stole my favorite one, the monkey. >> that's my favorite. >> there has to be a few other. the sort of like. i hope it doesn't get that far though right. at the moment it's just this. >> or the red face with the horns. that's going to be merkel quickly, right. >> or the talk to the hand. that's what the germans are doing right now. >> that's a good one. >> this is what the cdu is doing. the senior german cdu lawmaker he says or she says that one would have to accept a grexit if no solid reform package is presented. again one would have to accept a grexit. the greek prime minister is

headed to russia for the st. petersburg international forum this week. he's due to hold talks with vladimir putin on thursday. we caught up with the ceo and asked if the fund would consider assisting athens. >> i think greece will figure out a solution by working with russia in some kind of compromise has to be reached because greek economy is obviously very important. russia is supportive of greece in result of any kind of financial issues and problems it may have. >> but this is spiritual support rather than financial? >> well from our fund definitely not financial support and if government decides something on its own, question to them. >> it just occurs to me you work very closely with the government and i'm sure that the finance minister has your ear. if you were able to give advice at the moment about finding

other sources of capital around the world, would you encourage him not to rely solely on the agreement with the institutions at the moment but to go and do what you've been doing, get his passport out go to the middle east, go to asia go to latin america, perhaps come to russia? >> i believe there's tremendous opportunity to work with the world's best sovereign wealth funds. they have lots of capital and they're starting to become more energetic and innovative in their approaches. thinking about how countries can work with them and attract capital is the win-win deals. i think it's a very important aspect and greece can do that and by the way we had similar interests from egypt and any other country to help them set up for those countries because i understand that the capital from top investors is important for the economy and brings not only money but also expertise and

innovative solutions for industry. >> so he should get on his bike and go see friends around the world? >> we believe so. >> the european court of justice says the ecb's omt bond buying program is in line with european law. out right monetary transactions do not exceed the bank's powers and ecb is not a financing member state. let's get to annetta with more on that decision. >> that was pretty much expected actually. remember we have that influential opinion coming out roughly in february this year. but it is according to eu treaty. what did they say essentially or in detail? they're saying that the situation back then was a

situation when truly the monetary transition mechanism was endangered and that is why also the omt program which was literally aimed at getting yields back to normal levels according to the ecb is also judged to be monetary policy. that's of course big sign of relief for the ecb but you still have the board which will have to get back to its pending case but it's highly unhikely that the german constitutional court will say -- won't agree with the european court of justice. also that is not very unlikely. with that carolyn, back to you. >> thank you so much for that. quick look at european markets. we're more than one hour into the trading session on this

tuesday morning and the stoxx europe 600 is still looking red. european markets have fallen to 3.5 month lows on the back of the greek jitters. we have the athens index down modestly after falling 5% in yesterday's trading session. the cac 40 down by 1%. north of 1% are the declines for the german dax and ftse 100. only off by half of 1% but i want to talk to you about bond rates. this is where all the action has been happening. safe haven buying into the core paper. the ten year german yield down to 77 basis points. 10 year u.s. yield down at 2.3 basis points but we have seen a spike in the yields. we're seeing the spanish ten year back above 2.5%.

first time since august 2014. the 10 year italian at 2.4% and portuguese at 3.36%. this is a spike from the levels about two months ago but that seems like such a long time ago now. also the ten year greek paper looks patchy there but should be closer to 12%. quick look at the currency markets and we're seeing a fairly resilient euro dollar pair. higher on the day at 113 but that said we're seeing volatility spiking dollar-yen is slightly higher. interestingly enough the bank of japan governor backtracked on the comments he made last week which sent the yen higher. i want to show you what the asian markets are doing. declines across the board. the hang seng down 1.1% and

we're seeing some concession ahead of that. >> still to come here on the show volkswagen could be headed down a new route in the drive for profitability. we'll tell you more after the short break. heroes charge! ♪ ♪ (explosion) ♪ hah! (explosion) ♪ lead your heroes in the hit mobile game download heroes charge now!

>> european car sales growth shifted down a gear in may. it rose 1.4%. the slowest pace since the recovery began about two years ago. surged 9% outperforming it's rivals while nissan posts a 6% increase. europe's largest auto maker volkswagen dropped 2%. now audi posted a 6% slide in registrations falling behind bmw and her daymercedes. >> volkswagen is planning to decentralize it's corporate struggle by creating four

companies. >> air france klm announced 80 million euros of cost cuts as it looks to offset slower revenue growth. it will cut unprofitable routes while reducing capacity on some long haul flights. let's get out to stefen. >> how do you pronounce the airline. >> air france klm. >> that's perfect. a couple of measures have been announced by the order to address it's financial situation. air france is facing decrease of its unit and therefore it wants to speed up the new cost reduction plan. it's going to stop flying some unprofitable rule to italy, spain, malaysia it's going to reduce the frequency and the size of the aircraft to some other destinations like tokyo,

rio de janero and moscow and reduce by $80 million a year. also air france could postpone the delivery of some long haul aircraft including the boeing 787, and the airbus 350. more over the airline launched legal procedure against the main union of pilots because of its reluctance to implemented the reduced cost production. that explains the negative markets reaction that we see today although air france has some additional cost reduction measures. the fact that it's struggling to implemented the cost reduction plan is of course sending a very negative signal to the market and that's why the stock is trying lower on the french market this morning. over to you. >> not bad. >> moving on a field of republican candidates for the

white house could get larger today. donald trump is expected to announce his 2016 plans at an event in manhattan at 11:00 a.m. eastern time. trump says tomorrow will be a really big day for america. make america great again. >> and jeb bush making it official jumping into the crowded republican race for the white house. at a rally in miami on monday the former florida governor vowed to boost u.s. growth to 4% and create millions of jobs. now bush has spent the past several months raising millions of dollars for what is expected to be the most expensive presidential campaign in history. they say that every time around but this time around you would expect candidates to continue to raise as much as they can given the type of competition you're seeing on the republican ticket. >> absolutely. whether you're talking about jeb bush or hillary clinton we're talking about two families with a great history of fund-raising and jeb bush already has $100 million in his war chest and

considering how far we are out from the actual race they need all the money they can get to keep this momentum going and jeb bush coming out yesterday. he wasn't terribly energetic. people behind us saying he is definitely going to run but you didn't feel the momentum picking up. but certainly he'll have enough cash to keep it going. >> it did seem as if he will keep immigration reform as one of his top agenda items. >> it's interesting because that doesn't play well with the republican base. many people you speak to whether they're on the tea party side or moderate republicans are questioning of this strategy and wonder about it but this is a man that was governor of florida. they have a huge immigrant population in florida. it's also common core education, so a lot of things where he differs from the main republican base so it's just

going to be interesting to see what we get going forward. think about how many candidates we have. >> will donald trump be an extra candidate? >> if he does it's a political show boat but when you're talking about 11 republican presidential candidates it will be theater for some time. it's june now -- sorry, july. and we'll be talk about this until next year and we're not going to get a good sense of who is going to be doing what until we have the iowa caucuses and new hampshire and that's quite aways away. >> donald trump shouldn't have a funding problem, should he? >> what we were asking earlier in the hours is is this a employ to get another reality television show. this wouldn't be terribly surprising, would it? >> maybe not. thank you hadley. still to come on the show is summer turning up the heat in m&a? our next guest says low

volatility and the threat of future rate hikes could create the perfect backdrop for more take over action. we'll discuss that after this break. stay with us. harge! ♪ ♪ (lightning strike) ♪ (kiss) ♪ lead your heroes in the hit mobile game download heroes charge now!

>> the prime minister accuses creditors of pillaging the

country but the billionaire investor sells cnbc the drama is being overplayed. >> this is a little more like theater than like a greek tragedy. i just don't see that he's actually going to blow everything up. >> an eu court rules the ecb's bond buying program is not illegal providing comfort to investors as bond yields edge higher on the threat of greek contagion. >> turbulence ahead. shares in air france klm hit an 8 month low after it trims aircraft purchases in a bid to save 80 billion euros. >> the stock sinks to the bottom of the dax amid reports they may have outbid the german giant for some of procter & gamble's businesses.

>> the april the cpi figure was minus 0.1. it's been awaiting the data. it jumped a little bit and settled again but it's flat on the day at 156. we're looking for that data which as we said last month was minus 0.1%. it's plus 0.1% year on year compared to april. that's in line with forecasts. we're expecting it to go back into positive territory. the monthly figure is plus 0.2% which is both the same as expectation and the same as the previous reading. we'll dive down into some of the finer details shortly but let's get an immediate reaction. james is on set with us. he's global equity strategist.

thank you for joining us. so this data bounced back into positive territory but all be it in a very measured fashion. but we were focussing on transports and food costs. they fell unusually for may. they usually do pick up so they have the base effect. i expect that to have been a contributing factor. they meant more competitive air fair so they were the two key factors that saw a swing back to positive territory. >> transport up by 0.6%. food and nonalcoholic beverages down 0.1%. clothing and footwear up 0.5%. those are the biggest movers. any surprises? >> not at the moment. i mean transport as expected.

so again this is a smaller number. this is 0.1%. a total percentage point change of 0.2%. so nothing particularly spectacular and as many people are expecting it's in line with forecasts, no real sur priedsprises for us. >> u.s. housing prices are up 5% year over year and up 9.6% in the month of march. the biggest slow down since april of 2005. london continues to be a sbrieth spot up 4.3% year over year in april but there has been an active discussion around the fact that we haven't seen a pick up in the housing market post the general election. why do you think that is? >> it's a bit too early to call isn't it? we're seeing a pick up in lending rates. it might take awhile to filter through. people are like what's the average time two or three months to exchange and

interestingly one of the key differences between cpi and rpi is house prices and rent costs so perhaps that gap won't be so big this month. >> let's quickly have a comment from you on sterling. where do you expect that by the end of the year? >> generally economic data is not beating expectations in the u.s. at the moment. mack macro data is trending down but economic confidence is up. i expect particularly against the euro for sterling to strengthen and interestingly that has a knock on effect to cpi. we import deflation to some extent which is likely. while we have seen inflation at 0.1% the rising sterling will probably keep a lid on significantly stronger inflation. >> james great stuff. thanks for now. we'll have another chat with james shortly. >> let's take a look at european markets after yesterday's sell off. will it continue? right now we are looking at

stocks trading in negative territory. keep an eye on the xetra dax. it's now down 12% from the high's hit on april 10th. the german market down in today's trade by 1.3%. well below 11,000. a key psychological level that traders watch at 10,000 843. >> quick look at the bond markets around the nervousness surrounding greece. core yields moving a touch lower. the 10 year treasury note. the 10 year bund 78 basis points and falling further after the cpi numbers 1.9% currently for the ten year but the spreads have been widening and the yield versus been spiking a little bit as a result of the contagion effect. >> now let's have a look at some of today's most interesting individual stock movers. henkel shares slipping ahid reports that coty moved closer to purchasing three units from

procter & gamble at a deal vald at up to $12 billion. the stock is off 3.2% as you can see. reuters reported that henkel and coty made binding offers. let's get out to annetta who is live with more on the story. >> you look at the ownership structure of coty that it's controlled and owned by german billionaires. it's a family that comes from a chemical dentistry and they're concentrating on service brands but also cosmetic brands like remel cosmetics and opi. so what the new york times is now writing is that coty actually is buying the assets from procter & gamble for 12 billion u.s. dollars and henkel is being outbid if that is true

by coty. that's bad news because i think some of the acquisition optimism was already priced in the stock as we had rumors that henkel was bidding for the number 4 health care company in the united states. that would help henkel a bit as they're doing not so well in the states and analysts are saying if they had got bella from procter & gamble it would be actually very positive for that position in the united states. now it seems that the race is over and that coty got those for 12 12 billion u.s. dollars. we're still waiting for comment from the companies. >> thank you. >> meantime whitbread had a 4% rise in shares in the quarter.

royal dutch shell has been granted green light by ka nad kwan -- canadian regulators. it's contingent on meeting several environmental conditions. let's get back to the global equity strategist. if we're looking at the ftse where do you see opportunity right now? >> potentially a buying opportunity. we haven't recently moved to cash because we feel there's several detractors. potential rate hike in september. unseasonal effects are the two main reasons. some of our clients have been worried about the recent sell off but it's fallen roughly 4.8% from the peak. based on that ten times in the last two years so this is nothing too unusual and also looking at the fundamentals they look fairly intact. >> the ftse has been really constrained by what's happened

with energy over the last six months and sentiment has been improving some what but it's still now the time to get in or would that be premature? >> it depends which part of the energy sector. we continue to own some of the majors where we feel you're being paid. they offer fantastic dividend yields around 6%. we're confident they can continue to pay dividends. it's interesting with royal dutch shell as you're talking earlier this deal highlights that while they can continue to pay a dividend and spend some form of cap ex we would be concerned if they were scaling back all together. they have to invest for the future still. but to answer your question about the energy sector where it's still week is oil services. oil prices are still depressed and oil services are probably still hurting. >> top sector preference in the u.k.? >> financials and the energy sector are two preferred sectors. >> financial name top pick. >> we can --

>> can't talk about it? >> we buy financials globally so we're not buying individual banks. >> thank you very much as ever. global equity strategist at coutts. >> the jamaican government is positioning itself as a potential host of hsbc's new global headquaters. the report says the caribbean nation contacted europe's biggest bank in order to throw it's hat in the ring. this as the lender decides whether or not to move it's head office out of the u.k. >> i wonder which jamaican official is trying to woo them. >> nicely done. >> probably stop the discussion there. >> but i'm sure the bankers will like it. jamaica versus hong kong. >> nice huh? >> an interesting side point is for hsbc to relocate they say it moves the whole business but it's actually only 200 or more

so jobs. to officially change where they are headquatered is actually a different point of view. settling up everything here and stuff. >> london being the financial hub for these international banks and pulling away does that signify a shift for other banks to do the same. >> i get what the point is. but jamaica would be nice. let's move on. hong kong is on high alert ahead of a crucial debate ahead of election reform. nine activists have been arrested and accused of planning to set off bombs at the planned changes. we're looking at what the reforms could mean. >> parts of hong kong were brought to a stand still as they blocked streets. capturing international attention in hopes of putting pressure on beijing for more concessions. the 79 day protest known as the

umbrella movement erupted after china hand down it's frame work for universal suffrage which allows beijing to have candidates for executive. democrats call it fake democracy and vowed to reject the reform proposal. that's because a chief executive candidate must have the endorsement of more than half of a 1200 member nominating committee before he or she can stand for election and because the nominating committee is stacked in china's favor they get to approve all candidates before people begin to vote. it's believed to be four votes short of the two-thirds majority willing to pass. he joined the course of tycoons warning that a failure on reform is the biggest threat to the city and if they get their way and scuffer the plan hong kong reverts to the system of appropriating committee

selecting the next executive. so the question now is is some progress better than no progress at all. >> still to come on worldwide exchange, how to get an edge in the competitive world of mobile payments. we'll be speaking to the ceo of the company that introduced the world's first free card reader. stay with us. >> and also don't forget to get in touch with our viewer exchange. which emojis would you use to describe the greek crisis? a couple of tweets in already. charlotte said when the not so smilies take over. meanwhile, ryan sutton tweeted three other emojis also. now listen more on the power of emojis coming up after the break.

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>> welcome back. the value of commercial real estate stock hit a new record of more than $13 trillion last year. that's according to a new report. china's stock lead the pack growing by 21% in dollar terms. north america reported a 5% increase valued at more than $4 trillion. equity continued to replace it

as deleveraging gathered pace worldwide. let's talk more about this report. joining us now is the senior director at dtz. thank you for joining us to discuss that report. we already have an idea that china is overheating a lot of money. it's looking for higher yielding prospects essentially. how cautious should one be looking at that report and the bubbles that should be performing. >> if you're talking about china specifically the government has taken action in the past 12 months. if you're talking about the wider world we feel we're not in a bubble at the moment given the other choices for investments, be it bonds or chairs the real estate markets across the world offer a good choice and good safe rate of return for investors and with the deleveraging that's happening it's largely equity invested into the real estate markets. >> so are you thinking these levels are healthy ones even

though we're getting closer to the ones we saw in 07? '06 even? >> yes we're having this conversation which is the right thing to do and we should demonstrate caution and question ourselves but we don't feel as of yet we're in any dangerous territory across the world as we're in a new world with the low interest rate environment relative to bond yields where they are and real estate still offering that and occupational markets and returning around the same. we have seen some newcomb presentation in the occupational markets and they will offset that. >> equity is replacing debt. what's driving that? and what does it mean moving forward? >> i think it is deleveraging across the markets and we're

seeing a lot of that in europe and the u.k. but it really is -- where does that equity go to get the type of returns that they're after and real estate is seen as a very good bet for those players who are coming from the private equity world. private investors and the unlimited funds or unlisted funds who do have a return and the texas pacifics of this world tend to know what they're doing and they're investing. so it's the attractiveness driving it. >> does lower debt levels does that soften the blow when interest rates go up? or is that still the big elephant in the room if you like? >> yeah i think it does. we're now down to 55% which is starting to be more territory. they're being more cautious and not anywhere back to where the

low to mids were in 2006 and 2007. that coupled with you know the occupational story getting better again is what is making it a more safe world at the moment. you mentioned the base rates rising i think that only effects certain markets and then for example in this market in london where we are today i don't think it effects london. probably massive depreciation in sterling has more impact than a couple of points in interest rates rates. the policy makers will be careful about any news around interest rate rises in the u.s. and here because they don't want to tamper with a recovering economy. >> i was looking at your report. three of the top ten growth markets happen to be in europe. turkey on top of that list. why turkey? >> i think it's possibly a little bit of an anomaly in that it's quite a smaller market but

it's percentage growth is obviously eye catching as you have seen in that report. that's why turkey is at the top of the list and great to see that there is a real estate market gathering pace there. but i think mexico are on your list as well. it's because they're coming off such a low base is probably the answer to your question. >> we'll leave it there. a look at the commercial real estate market. senior director at dtz. >> that's the view on china's property market but head to cnbc.com to read my article on why beijing's crunch point is fast approaching and why a long-term investor shouldn't touch the a-share market with a pole. >> i didn't know you wrote that. >> i didn't know you write. >> cnbc.com. >> what is this about exactly? >> my view on china and why i don't think you should be touching it. >> you're quite bearish. >> i've always been bearish. the recent run on valuation

terms but people are overestimating the ability from china to translate from 8 to 7 to 6% and the a-share market is quite surely at 65% year to date. 150% in the last 12 months. i've always been a china bear so i missed that recent rally but crunch point is coming. >> i think markets are overly optimistic of the central bank's ability to drive this turn around that they're seeking for when looking at china. that's the reason i think many are bearish when it comes to k look at the market. >> and if you look at the lending figures despite the fact that the liquidity is turned on even though in the long-term if you did see effect that would be worse. 280% debt to gdp. they have become indebted before they have become developed. and there's no flexibility. so we're already at these extraordinary debt levels.

>> i take your point. at the same time we're seeing the massive stock market rally. that should filter through to the economy. it will have to because a lot of it is driven by the retail investor and at one point they'll be spending all of that money. >> precisely and i don't think that this rally has been driven by fundamental factors. it's been retail investors, the middle class without anywhere else to put their money and that's a second factor i make in the article is the middle class in china has incredible clout and companies and they should try and make the most of that but i don't think market investors should because the market will react to momentum and not to fundamentals. >> we're told to move on. but for anyone that wants to read wilf's thoughts head to cnbc.com. sources tell cnbc fitbit is raising from $19 a share. the move is expected to be

announced ahead of the ipo pricing expected after the close on wednesday. at the midpoint of the updated rake they would be valued at $3.7 million. >> etsy is looking to patch together a new source of revenue. they plan to test a crowd funding venture launching it as soon as today. the pilot program would let sellers raise money to fund the manufacture of new products. let's have a look at share price action in germany. etsy is up 2.5% today. >> the mobile payment space is growing more competitive as start ups vie from shares from larger players. they released the world's first free chip and pen reader and now they're moving into the areas of contactless payment. let's bring in the ceo who is at the money conference summit in belfast. a pleasure to have you on the show. many people refer to your company as the square of europe.

of course square founded by jack dorsey now the interim ceo of twitter but from what i understand, that wasn't your source of inspiration when coming together with this idea. it was actually your wife who gave you the idea. isn't that right? >> that's right. thank you for having me on the show. yeah my wife actually came home with a very typical small business problem and this was back in 2010. if she realized that her business could really take the cost of the traditional bank terminals and the costs brought to her company so she gave me the opportunity to -- and the idea to start it. so it was really thanks to her. >> the way we take out money, the way we transfer funds is all change with the use of the mobile phone. now wearables are expected to dramatically change the landscape or the way that we transact. what are your thoughts on that and how does it fit into the

space? >> well we see the first real shift toward true mobile payments and. >> and it's now moving into other wearables such as watches. it creates a nice payment experience and the next step will be how the internet of things is actually transforming into e-commerce of things where sort of the loop is closed. >> you want to sell card readers for apple pay. how big of an opportunity is that for you going forward? >> you know i think it's a tremendous opportunity. like i said we're just scratching the surface of the next generation of mobile payments

payments. you had 300 million transactions. the rest of europe is not asthma tour when it comes to contactless but that's the true step of the next payment user experience when the plastic card moves into the phone and you'll see a lot of markets in europe quickly adopting it as soon as the opportunity is there with apple pay and other similar types of payment services and the reason is sort of the user experience actually solves a problem in terms of speed. both from merchants and for card holders and that hasn't really been the case for the previous types of contactless payment solutions that have been in the market. so now is really the time when mobile payments will take off. >> just very briefly seema mentioned that you are considered to be the european counter part or european rival to square. we now know that dorsey has a lot on his plate.

do you think that creates an opportunity for you now that he's increasingly more distracted? >> there's always some sort of a underlying game being played somewhere that we don't really know the background to. so let's see where he ends up and why. we remain the market leader in europe. >> all right. >> so we will remain focused on our markets. >> all right. thank you so much. >> and a new set of building blocks for lego. that story coming up after this break. we take a look with it's ceo.

welcome to the second hour of worldwide exchange. >> here are your headlines from around the world. >> let's talk markets. u.s. stocks set to follow european equities into the red as investors await an update on the rate hike time line as they kick off a two-day policy meeting. >> a way to comment from janet yellen on greece. but the billionaire plays down the drama in a cnbc interview. >> i think this is more like theater than it is like a greek tragedy. i just don't see that he is actually going to blow everything up.

>> let's get stock specific. coty nears a deal for several procter & gamble units dealing a blow to german rival henkel. >> could the don finally make a run for the white house. donald trump weighs his options as jeb bush vows to create millions of jobs. >> let's get straight to economic data points. june german economic sentiment index. 31.5 points. that is versus a poll of 37 and versus a print of 41.9 in the previous month. so below expectations and it's a little bit of a dip from the month of may. if we take a look at the expectations forecast that was 37 but the current conditions

62.9 and also that is a decline from the month of may at 65.7 though the current conditions are more or less in line with expectations expectations. we are currently trading at 1156. we're positive for the pair early on in the trading session. in terms of the commentary, the german zew saying uncertainty dampens economic expectations and external factors are reducing the scope for further improvement of germany's good economic picture. the data not looking all that pretty. >> not too much. on that note let's take a look at u.s. futures and what we can expect in today's trade. yesterday a rough session for wall street. interestingly it has a lot to do with what's happening on this side of the atlantic with the

greek jitters grabbing the headlines. the dow indicating a lower open by 56 points. the dow is near break even for the soon to end second quarter. this would make it the second consecutive quarterly loss after falling about 47 points in yesterday's trade but we just got that zew read. let's take a look at european markets and how they're reacting. holding on to losses the german dax now down 1%. well below 11,000 and deeper into correction territory now trading about 12% below the april 10th high. the cac 40 seeing a significant move to the downside. it's down about 2.5%. in today's trade down .3%. it's the greek headlines or the lack of discussions taking place between greek leaders and creditors creating a certain level of nervousness in the markets. the greek equity index down about .9% and speaking of nervousness i'll just point out

that in yesterday's trade in the u.s. we did see the volatility index gain around 11%. and from traders that i speak to a lot of that does have to do with greece. >> absolutely. an indicator for that is the dax off 5.3% since the peak last week that came on thursday afternoon. that's a big move over a few days for the dax. if you think the greek fears are overdone maybe that's a buying opportunity for the greek and german index. this paints an interesting story as well. particularly on the greek issue because we saw yield compression for safe havens like the u.s. to 2.3% but we did see yields tick up a little bit. particularly for greece but also for the likes of italy. 2.3% we're looking at today so it is greece related. also worth pointing out why we

saw more yield compression 2.32 because we had industrial production data which declined in may compared to a 0.2% increase that had been expected so that took people's expectations of a rate rise off a little bit as well. what does this all mean? the euro slid over the last 20 minutes or so. it's at session lows down 0.2% but of course 112.5 still elevated from where it was a few months ago. the yen 12354. >> let's give you a run down of what to watch this trading day. the fed begins the two-day policy meeting with decision and latest economic projections due wednesday at 2:00 p.m. eastern time. that's followed by janet yellen's press conference at 2:30. look for housing starts and building permits at 8:30 a.m. they rose to their highest level in more than 7 years in april and seema i do wonder to what

extent the fed will be worried about the bond volatility and outflows from emerging markets. we saw the biggest emerging market outflows in seven years. it said we are the central bank of the usa and not the central bank of the world but it has to feature in their analysis. >> the central bankers at the end of the day responsibility for the volatility in the bond market is something that mario draghi addressed during the latest meeting and then the tamper tantrum in some ways in effect right now, something similar to what we saw in 2013 taking money out of the rising markets but if question is if you are bullish on the emerging market story how do you get exposure to specific markets? you just have to stomach it. >> i agree the market tends to

react for fear if it's going to be like may 2013. in terms of when we're likely to see a rate rise i air on the side that we'll get sooner than expected than what people are thinking about t. interview he did last week is that i think yellen although they don't want to do what europe did and have to cut again they don't want to have to do 1% of increases over say 6 months and they want to get started and start to break the market into that. i don't think a quarter point increase will be catastrophic and they'll test the market and leave it there for a full 12 months. but they have to workout how the market is going to respond and that's why i think we'll start to see the first quarter point rise in september. >> slow and gradual. although if you take a look at history, last rate rises have never been slow and gradual. that's not how it would have actually worked out which is why the markets are seeing a certain level of nervousness ahead of that.

two-day policy meeting and what we can expect from janet yellen. >> they denied a report it will produce capital controls this weekend weekend. it was now up to them to come up with a plan to save athens from bankruptcy. >> speaking to cnbc earlier the billionaire investor who invested in one of greece's top banks played down the drama suggesting cooler heads would prevail. >> this is a little more like theater than like a greek tragedy. i don't see that he's going to blow everything up. greece can't afford to default. there's no liquidity in the country whatsoever at this point. the banks of which we have won are 80 some odd billion euros into the ela. it doesn't dissolve any of those issues and i think it would make

the economy a shambles. so i think at the end of the day they'll make an accommodation. >> i would argue that of course he's going to play down the drama in greece. >> and cyprus. >> and he wants to see this play out nicely and he's hoping for a deal but who knows. >> i'm surprised by the volatility in the markets and how greece has been the culprit of that. if history caught us anything it's that at the 11th hour a deal of some sort will be reached. if that's the case maybe you should be buying on the dip here. >> the market moves have been interesting. 5.3% decline in the dax. the safest of the equity indices. yes we have had big runs already but i still come back to what julia was saying earlier is that angela merkel herself doesn't want to be the person viewed in history's eyes as being

responsible for greece's exit and with it perhaps the end to this great political experiment that germany has been at the forefront of and if she is still there we're closer to having an 11th hour deal than we might otherwise have. >> but maybe it's slow summer trading too. we know that volumes usually get thinner as we move into the summer months and that's also why we're seeing volatility. so maybe that volatility wouldn't be here if we were in a completely different month. i don't know. >> i think it's being used as a reason to sell european stocks. we have had a stellar run so far in 2015. double digit gains for the german dax. so perhaps it's just being seen as one reason to sell your winners. >> this is one way to depict the unfolding greek saga but emojis have been in the news after a u.k. technology company may have found the answer to forgotten passwords and pin codes being

emojis. we wondered whether you can correctly depict what is unfolding in the greek crisis with emojis. >> how would you describe the greek crisis using emojis. johnny tweets in that he shook the magic 8 ball and greece is a ticking time bomb. if you're watching us you can see that this is the emojis that he says are accurate in depicting the greece story. >> while craig ellen seems to see the situation as a gamble with the euro. so keep your tweets coming in on this topic. get in touch via twitter. @cnbcwex is the handle. it's more a case of not wanting to look at all at the unfolding greek drama. >> you like the monkey. >> it's the only one easy to act. >> this one is easy. >> that's what merkel is doing at the moment. >> and i think he should take some advice.

>> getting more and more angry is a bit like the -- >> yeah. >> that's a good one. >> the big heated red face. >> you're doing well. >> coming up next the building blocks of success. more sustainable material for the plastic bricks you can find scattered over the homes. stick around. we'll be back in two.

these are the headlines. u.s. stocks set to follow european equities lower as the greek crisis weighs. the euro hitting a session low after softer than expected german sentiment data. united health approaches aetna about a deal worth more than $40 billion and donald trump weighs his options on running for the white house in 2016. >> now shares in henkel under pressure amid reports the u.s. cosmetic's giant moved closer to purchasing three units from proctor procter & gamble. reuters reported they made binding offers to bicep rat

parts of the beauty business. down just about 3% in today's trade. >> united health has reportedly approached rival health insurer aetna about a possible take over deal worth more than $40 billion. the wall street journal says it's unclear how they responded. the approach comes as cigna rejected a $45 billion buyout from anthem. let's have a look at the stocks in trade today in germany. as you can see cigna and aetna up sharply where as anthem is down .5%. >> verizon cfo says the company is not selling the huffington post and not interested in buying dish network which is reportedly vying for t-mobile u.s. last month verizon agreed to pay $4.4 billion for aol which owns media brands. the main interest in the deal was aol's digital ad technology. take a look at shares offer is verizon

down 1% in germany. >> it's from the previous range of 14 to $16. the move is expected to be announced ahead of the ipo pricing which is expected after the close on wednesday. at the midpoint fit bit would be rallied at $3.7 billion. >> i'm very excited about this one. popular fitness brand but how does it compete with the big dog in the market which is apple. >> that's how you said it in french. but hey listen big competition with am. so what does this mean for the player that has the first mover advantage? but question is how long. >> they're still holding on to good performance. >> their focus is being a fitness brand where as apple is more of a smart watch. something to be said about the crowded market. >> jeff and steve both have one.

>> that's true. >> we'll see how long it lasts. >> no apple watch for you yet. let's talk politics. the field of republican candidates for the white house could get larger today. donald trump is expected to announce his 2016 plans at an event in manhattan at 11:00 a.m. eastern. it's getting busy. in a twitter monday on most. >> jumping into the crowded republican race for the white house at a rally in miami on monday the former florida governor vowed to boost u.s. growth to 4% and create millions of jobs. it's the most expensive presidential campaign in history. >> it's interesting how his trip across europe is so different from the message in the u.s. he was really trying to ignore his brother's legacy because

obviously that wasn't taken up well by the europeans when it all happened more than ten years ago and that's not something he's doing to the same extent in the u.s. because the view of his brother as president is more favorable and doesn't want to alienate the conservative party. >> his father was viewed negatively but is now one of the most loved presidents in terms of opinion polls. >> i'm not sure but it will be really interesting to see how he uses his last name. some say it's a political liability. others say he should use it in his favor. it will be interesting to see how he crafts his message going forward and how much he steers away from his family's past and how much he uses it to his benefit. something that hillary clinton will also have to struggle with going forward. >> for the third time in the past six years the chicago

blackhawks are hosting lord stanley's cup. goals from patrick cain and duncan keith also named the playoffs mvp. this is the 6th stanley cup victory in hawks history but it's the first time they have won the title on their home ground since 1938. >> gap is clearing out it's closet. we'll tell you more about the retail giant's cost cutting plan. plus later in the day cnbc has a rare exclusive interview with ceo art peck. that's coming up later on cnbc. stick with us.

>> there are more than 80 lego bricks for every person on earth. that's quite an incredible fact and mow the toy maker is investing more than $150 million for developing more sustainable materials. the ceo has already taken steps to reduce it's common footprint. joining us is the ceo at lego group. thank you for joining us. is all those lego pieces they're

not bio degradable? >> no they're not and i don't think we would recommend that they would disappear overtime. because it's an important performance of the brick but they're made from oil. it's a manufacturing process producing the plastic grandeulet. we make a massive investment in a wind farm that allows us to be based on renewable energy we're continuing the journey of being a well reputed company so we feel we need to make a big push into materials that go into the legal brick but also into the packaging of the lego set so we can come to a more sustainable base in the future. >> can i move you on to the big blockbuster we saw over the weekend. jurassic world. you have a toy related to that

and a video game. how high are your hopes in making another blockbuster just from legos in relation to that movie? >> it's still a little bit too early to say. the movie has been well received and we have great product on the streets now and we're sure that they will continue to entice children to be creative in the months ahead. >> given that you are an international brand help us understand, how is the volatility in the currency environment impacting your bottom line? >> well it is impacting us quite a bit last year and he expect this year because the dollar is very important and we're in the euro zone so of course the movement in both russian rouble but also the japanese yen. it will be probably the last 18

to 24 months have been more volatile in the past 10 years for us as a company. however we're privately held. we have financially very strong. so dealing with currency is weathering the storm and coming out positive on the side of this. >> let's talk about any big next strategic initiatives. of course you have the theme parks. you the film. is there anything else that's coming that we should know about? >> we are continuing to stick. we think it's a fantastic idea. this idea that you can build anything you can possibly imagine and acts as if it was glued and it's easy to pull apart. that idea we're reinventing every year and then there's more movies coming. there's more great launches coming up later this year. we also launched lego minecraft

so we are continuing to reignite and relaunch on this idea and that's what you can expect from us in the future as well. >> thank you so much. the ceo at lego group. >> want to point your attention to the markets. let's take a look at u.s. futures. a lot having to do with greek worries. what can we expect from janet yellen? the dow indicating a lower open by 70 points and the s&p 500 down 9. this is all happening as the dollar continues to weaken. that's one of the reasons we did see gold shares rally. more on today's market action and what you can expect coming up after this short break. don't go away. 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.

>> it's 5:30 a.m. in new york. 10:30 here in london. you're watching worldwide exchange. i'm seema mody. >> i'm wilfred frost. >> stocks set to follow equities as investors await an update with central bank's two-day meeting kicking off today. >> could greece cast a cloud over improving u.s. data? uncertainty surrounding athens weighs on german sentiment sending the euro to a session low. but the billionaire plays down the drama in a cnbc interview. >> this is a little more like theater than like a greek

tragedy. i don't see that he's actually going to blow everything up. >> gap slashes cost. they're closing a quarter of its stores and eliminating 250 corporate jobs. coming up cnbc has a rare exclusive interview with the ceo. >> make america great american again. donald trump could run for the white house. this comes as jeb bush joins the race vowing to create millions of jobs. >> and if you're just tuning in thank you for joining us here on worldwide exchange. fed policy the big discussion in today's trade on wall street. traders also keeping an eye on the greece debt talks. at this point they don't seem to be going anywhere. political gamemanship is the story when it comes to

discussions taking place. that deadline approaching the end of june. capital controls also another big concern. keep an eye on the greece story. every day there's some type of new headline. in today's trade we're looking at european equities trading lower. the zetra dax. german index down triple digits. trading at 10,852. just nine weeks ago we were trading above 12,000. this gives you an indication of the type of volatility in the german equity market. an eye on the ftse 100. we'll be getting a slew of economic data out in the u.k. that will give us a better idea of the story in the u.k. post the general election. the cac 40 down by around 41 points and of course on the greek story we're keeping an eye on the greek equity market. down about 2% but of course bonds a big part of the story, isn't that right? >> yeah totally.

we have seen bonds or yields moving a little bit higher and you saw that reflected in the ten year greek paper which is now yielding 12%. we also saw a little bit of a spike in italian and spanish paper. meanwhile continued safe haven flows into the german or u.s. treasury paper. the ten year bund at 77 basis points. the ten year u.s. yield? closer to 2.3%. >> now greece's government denied a report in a german newspaper that it will impose capital controls this weekend if it doesn't reach a cash for reforms deal soon. it comes after the greek prime minister accused international creditors of pillaging the country for the past five years adding it was now up to them to come up with a plan to save athens from bankruptcy. >> but speaking to cnbc earlier a billionaire investor who is invested in one of greece's top banks played down the drama suggesting cooler heads would prevail. >> i think this is a little more like theater than it is like a greek tragedy.

i just don't see that he's going to blow everything up. greece can't afford to default. there's no liquidity in the country whatsoever at this point. the banks of which we have won are 80 some odd billion euros into the ela. default doesn't resolve any of those issues. and i think it would make the economy a shambles. so i think at the end of the day they'll make some kind of accommodation. >> all right. there's a crowded and competitive market for payment apps. allowing people to convert bitcoin into normal currencies and precious metals. now it's trying to make it easier to develop software platforms. it will enable businesses to create state of the art apps for cross border transactions and other uses. let's bring in the ceo joining

us from belfast at the money conference summit. a pleasure to have you on the show. they have been grabbing the attention of those involved in the payment space but we should point out there's many different exchanges out there right now. what is a differentiating factor that your company offers from the rest? >> yeah first of all we're not really bitcoin company. today we accept bitcoin as a form of value that you can put in the cloud. we're really the first cloud money platform and the definition of cloud money is going to be. but we allow the exchange of money at no cost and now the exchange at no cost so we're truly marking the beginning of the end for banking fees

globally. >> but how can you do it at no cost? how is that sustainable over the longer term? >> it's funny. when i launched it in 1995 i made a decision that nobody had really ever made before which is trying to build a large media company without charging for the content and my billion dollar competitors got between 35 and 50% of their revenue from the cost of the magazines. there were a total of 11 advertisers on the internet then and none paid and i just took a bet that because our costs were so much lower and the audience so much bigger that i could ultimately build a profitability company and when i left in 2000 we earned $1.4 million and we were a nasdaq 100 company. so you have to understand that when people build cloud based businesses the economics are vastly different from their fore

forebearers that have costly infrastructure that we don't have. >> your story has been different in the other people we've been interviewing from the conference in that you've seen the highs and lows of the tech industry. i want you to help us understand or characterize to us what you're seeing in silicon valley given your breath of experience. does it represent some type of irrational exuberance when looking at valuations? >> no i really don't, you know in the 90s i started and spun out a company and left in 2000 as the co-founder and second largest shareholder of a company and then started google voice and other companies and i have been involved in almost 23 years in building essentially internet or cloud-based businesses. i think what's happening now is its so easy to get a lot of users very quickly. when i launched c-net there were

500,000 users on the internet and now there's 3 billion. what you're seeing is the compression in value. it's happening quickly on the front end. twitter is a great example. you pick up a lot of users and it becomes harder. so i think you're seeing i think savvy investors moving forward in the life of companies and because there aren't a lot of them that's why you see these really significant valuations. but i think that there's -- i think that this particular area i think is way underhyped because the financial system is so large and we're for the first time really going to see legitimate disruption in finance and banking. >> all right. we'll leave it there. thank you for joining us and having a discussion on what you're seeing out in the valley. ceo of bit reserve. >> head to cnbc.com for more indepth coverage including the story of bit reserve's latest

moves. >> goldman sacks is thinking small after years of catering to large institutional investors. they're planning to offer consumer loans online modelled on lending club. they would provide loans of a few thousand dollars to individuals either through a website or app. it hopes to launch the service next year. taking a look at shares of goldman which hit a new 52 week high last week down about .5% in frankfurt. >> sources say fitbit is raising the price range from 17 to $19 a share from the previous range of 14 to $16. the move is expected to be announced ahead of the ipo pricing which is expected after the close on wednesday. at the midpoint fitbit would be valued at $3.7 billion. >> do you know it's ticker symbol? >> i don't. >> just guess. it's fit. fit. i handed that to you. >> you didn't. why was that obvious? everyone is screaming. it could have been fbit. >> sure. >> that's what it could have

been. >> sure. >> tesla's model 3 vehicle is expected to be a mass market car priced at around $35,000. it won't hit the market until 2017 so the company has not released any design details just yet but reports say the company invisions the model three as a family of vehicles with both sedan and suv cross over versions. tesla currently up by 0.4%. >> it could have also been ftbt just dropping the vowels. >> i see with a you're saying but that's confusing. this is easy to remember. >> fitb. so there are other options. i'm defending my lack of jumping to the right answer straight away. >> we hear you. let's talk retail. gap will be in focus. a major overhaul as it tries to stem a slide in sales. more details on this story coming up after this 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. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

health care consolidation continues. united health approached aetna about a take over deal worth $40 billion. the wall street journal says it's unclear how aetna responded. cigna shares rallying on reports that anthem is interested in

buying the firm for about 45 billion dollars. now on the buyout speculation keep an eye on cigna. it did close higher by around 12% in yesterday's trade. >> nice sea of green behind you there. m&a just continues at pace. >> true. >> let's move on. gap once claimed the title as the world's largest spes y'allcial retailer. the company is announcing a major overhaul but hopefully not closing all of their stores. let's get out to landon with all the details from cnbchq. >> hey, good morning to you. gap plans to close about a quarter of its name sake stores. the second round of major cuts in the past four years. they'll shed 175 locations in north america although it's unclear how many job cuts will result from that move. gap is eliminating 250 jobs from its corporate office. about 140 stores will be closed this year leaving gap with 500

stores in north america and will also continue to operate 300 outlet stores and there will be additional stores closing in europe. gap will take 140 to $160 million in charges in the second quarter to cover the cost of buying out store leases and for the layoffs. gap struggled for awhile against heavy competition against fashion brands such as h&m and forever 21. same store sales fell 10% in the first quarter. ceo that took over the company in february has said gap's women's clothing business has been hurt by quality and fit issues and for not being trendy enough. gap already made changes. shaking up the management ranks, in january, the company fired rebekka bay and eliminated the position. wendy goldman was brought back to helm gap's design's team and jeff kirwan was named the global

president after three years running it's china business. gap stock is down more than 9% this year although it rose about 1% in after hours. gap is hoaning the annual shareholders meeting today in san francisco and courtney reagan has a rare exclusive interview with art peck. you can see that conversation on squawk box at 6:50 a.m. eastern time. back to you. >> landon thank you for that. have to say while we have you there we're going to talk more on gap and i know gap is said to be unfashionable and you mentioned some of the more fashionable names in there but at least their clothes fit. for someone like spanish clothes they're absolutely tiny. do you find that at all? no. >> no i don't. >> i'm a gap shopper. >> i just find gap -- everyone criticizes it for being very uncool. >> i hope it speaks to gap's lack of positioning in the retail market. it's not a high end player or cheaper label so it's left in

no-man's land. it's hard to differentiate it's product from some of the other products out there like h&m and zarra. >> but if there's any retailer out there doing well at the moment. j. crew not doing well. abercrombie & fitch shedding jobs. so it's really tough for any teen retailer out there to make a mark at the moment. >> it's become a crowded market but gap is not just one label. it also has banana republic and old navy which has been a bright spot for the company. they made their push into luxury in 2013 which is by the way very high end but let's see. maybe that's one way they can get out of the slump is by focussing more on luxury. that's been doing well despite the slow down in china. >> thank you for the full update. now for the third time in the past six years the chicago blackhawks are hosting lord stanley's cup as the best team

in the national hockey league. chicago beat the lightning 2-0 in game 6 of the finals monday night. on goals from patrick kane and duncan keith also named the playoff mvp. this is the 6th stanley cup victory in hawks history but it's the first time they won the title on their home ice since 1938. >> before we go to break, here are your headlines at this hour. u.s. stocks set to follow european equities lower as the greek crisis weighs on investor sent lt. the euro hits a session low after softer than expected german sentiment data. they approach aetna about a deal worth more than $40 billion and donald trump weighs his options on running for the white house in 2016. you're watching cnbc. first in business worldwide.

>> we have the dax down by 1%. and take a look at the athens markets. we're down by 2.5%. by and large these european markets close to 3.5 month lows and we have the index below expectations too. >> absolutely and when that index did come out we saw the euro hit a session low because that zew was weaker than expected. we had the odd spike and it came down sharply after the sentiment data. we're down 0.35%. 1242 as we look at things at the moment. now this think tank said uncertainty surrounding greece was partly to blame and external factors were reducing the scope for further improvement in the german economy. >> greek debt fears is keeping a lid on stocks. futures indicating a lower open

after stocks ended lower in yesterday's trade. the dow down by 70 points. s&p suggesting a lower open by 11. housing data this afternoon expected to confirm a recovery in that sector. policy makers are unlikely to hike rates they could adjust their interest rate forecasts. some suggest the central bank's rate path could be disrupted due to the on going greek crisis or other geo political events. let's get out to patrick. good morning to you patrick. look housing has really been some what of a bright spot for the u.s. economy but you have to wonder with the rising yield environment to what extent that's going to choke off the recovery that was seen there.

so i'm not too worried about that having much impact on housing at all. >> what do you expect from the numbers today then patrick? >> well we're not going to get great numbers because they surged in april and surged because there were unusual spikes in two states. and the key number to keep on track is the single family housing permits. that number has been growing slightly and we're expecting more of the same. i don't think we should expect anything unusual in today's release. >> is rising improvement in housing data an indication of higher confidence among consumers or is this just seasonal factors at play here patrick? >> oh i think it's a fact that we have been under building for so long so there's so much pent up demand and that's really the source of the growth.

so ten years later the single family housing market is still at very low levels. it's the multifamily that's growing again and we should probably expect to see more of the same over the next several months. >> patrick one of the more important developments for me is finally seeing the retail data the consumer sentiment join some of the other data we've seen as being more positive. do you think that's enough to now lead to the fed to hike rates perhaps in september? >> they will mainly look at the labor market and the housing market. everything will be data dependent and our call is that the numbers will show that the economy is strong enough that it could support a rate hike starting in september. >> if we do get that rate hike what does that mean for housing data and the housing sector in general? will that lead to consumers not

taking out loans? >> well i think that the fed will raise slowly in very small increments over a long period of time and this will happen in slow motion so it's effect on the housing market will be possibly imperceptible. >> that's the big fear. we'll see what happens. patrick pleasure to have you on the show. thank you for getting up early with us on worldwide exchange. >> now a quick look in on our viewer exchange. we have been asking you throughout the show about emojis following stories in the press over the last couple of days and in particular which emojis would you use to describe the greek crisis. charlotte sent these saying that when the not so smilies take over. a good effort on that front. >> meanwhile ryan sutton tweeted three of the smellier emojis to equal the greek crisis. hopefully you're watching to see what we're pointing to here. >> continue to get in touch

throughout the rest of the afternoon. which emojis have you been using to depict these stories? do you think they are on the rise in general? that's what we have been asking. let's have a quick look in as well on u.s. futures before we leave you which of course pointing to a negative open. we've had negative performance in european equities once again and it's infecting the u.s. >> is there an emoji for volatility. >> which one would it be? >> the volatility for european markets is at a five month high. same time guys volatility for the u.s. markets have fallen quite drastically. >> interestingly you can have an emoji for three of the flags there but they don't have the greek flag yet. >> they need to add that. >> that's all we have time for today on worldwide exchange.

thank you for watching. >> see you tomorrow.

good morning, two big stories dominating today's market action. the greek stalemate and the start of a fed meeting. a wall street firm heading to main street. goldman sachs is work oing on a new lending unit that would offer loans to average americans and it would all be done online and getting out of a retail rut, gap is closing 175 stores saying it wants to be more vibrant. try fiber con. i do. the company's ceo is speaking out and attention junk food junkies, the fda is moving toward a total ban on transfats. squawk box begins right now. ♪

>> live from new york where business never sleeps this is squawk box. >> good morning and welcome to squawk box right here on cnbc. i'm andrew ross sorkin. becky is on assignment today. con fwraj lagss to the chicago blackhawks. winning the third stanley cup in six seasons. beating tampa bay 2-0 last night in a game seen on nbc. this is the first time the blackhawks have clenched on home ice since 1938. >> in the meantime let's get down to business. see how the market is setting itself up. yesterday was a bit of a tough day. dow off around 80 points. s&p 500 off by 10 points.