the greek people. i'm blaming the greeks to tell things to the greek public which are not consistent with what i told the greek prime minister. >> this after another defiant address to the greek governparliament. he said their partners needed to speak clearly and reiterated that pensioners and workers must not be burdened further. he also criticized an ala ala carte imf. >> if the goal is to continue with a program inspired by the imf, a program that everyone in the world knows has failed not only in europe but everywhere else and it's continuation without any debt restructuring then there is no leeway for a decision by the greek parliament. not only for the greek

government. we are obliged to just do our duty. to not give in to pressures and blackmails without any result. >> joining us now is richard kelly, head of global strategy at t.d. securities. thank you for joining us. let's kick off on the greece debate. when you last came on your bottom line assumption was that greece wouldn't end up leaving but they'd have to do a lot to stay in. is that your point of view in. >> you're heading for a political break down within greece. whether that's having to have new elections, i think it's likely to have capital controls put in place but it still looks unlikely that you have a situation where greece leaves the euro zone. >> so don't expect them to leave but you do expect capital controls. that would be a big event for the markets. is that fully priced in? we've seen the dax sell off 5% during the middle of last week. is that reflecting enough of the risk that's out there?

>> the issue you're seeing in the market is a lot of derisking. i don't think there's a position you put on in greece was leaving. there were clear places you wanted to trade that out come. this is more about avoiding the potential risk if something goes but it still seems limited in terms of the financial contagion given everything that's been done. >> if they are imposed could we see a further sell off in the greek banks which had been under pressure over the last couple of weeks. >> that's the most obvious weakness in all of this. it really continues to strain the balance sheets there. especially if we get to a point where the ela is either capped or starts to be reduced and you're getting a lot of that down side that if greece does leave or defaults on the debt they're the biggest losers outside the people of the country. >> hindsight is a wonderful thing. would it have been better in 2010 to let all the private

sector lenders to greece have been completely wiped out? would that be much less bad than we're looking at now? >> you probably would not have changed the initial start of this program simply because we know there were a lot of dominos after that in terms of the weaknesses in ireland and portugal and italy and spain. those probably would have exacerbated much faster. as horrible as the crisis was it gave us the proper pace to at least deal with each crisis in time. so now you're at a point where the solution has to involve some bit of the debt they were given then but that liquidity was needed at that time. >> you wrote that no one is inclined to step in front of the bullet train that is the german bund but at some point bunds have to trade at fair value. are they trading at that level now? >> when you're looking at something around 80 to 90 basis points in terms of where we're

at that is fair. there's still tremendous amounts of liquidity sources dragging you down but the growth expectations are still there. and you're still getting better. so you can still see that pushing yield and trending higher overtime. >> but the greece situation should suppress yields further from him. >> for now it's going to prevent the sell off. you're not going to get another extension of what we've seen from that. >> stick with us richard. and we also want to draw your attention to what we're seeing in the euro. it is as you can see, just over the last couple of minutes losing steam here against the swiss franc ahead of the decision. the euro trading 104 against the swiss frank so keep an eye on that trade. >> right, let's move on and have a look at the biggest individual movers today.

there's quite a few to focus on shares have gone to the top of the cac 40 after a jump in operating profit. this thanks to solid shares in the umt s. helping offset weaker demand. the drinks giant announced a dividend hike to one euro 53 cents. you can see it up 5.13%. they're in the red after being laid off by apple. it will no longer serve as the lead contractor work on the spaceship building at the new campus in california. they expect costs of $800 million tied to the termination of the deal. shares only off 0.8%. now vivendi up 1.25%. telecom italia up 3.44%. this is after they are planning to raise their stake up to 10 to

15%. obviously performing a little bit better off the back of this. stefen has all the details live in paris. >> good morning. that's an interesting story. after selling it's sets around the world it is reportedly planning a come back in the telecom sector. when it sold it they received an 8.3% stake in telecom italia as part of the payment. and according to reuters it's planning to increase it's stake to 10 to 15%. telco is the investment vehicle which holds 22% of telecom telecom italia on behalf of o

telefonica they declined to comment on the report. vivendi is still considering the option but the board hasn't made a final decision yet. it would give the french company more influence in telecom italia when it comes to the distribution of media content. vi vi vivendi could want to come back into the sector. they're looking at a very interesting operation financially speaking. that's how he made his fortune in the last few years by raiding companies. back to you. >> thank you so much. coming up on worldwide exchange keeping it simple. snapchat ceo explains his app in a low budget video using paper. plus dirty tricks from the dugout. a major league baseball team is

accused of hacking into another team's data base. and we'll tell you more about one contract that lost out after apple fired it from building it's spaceship campus. that story also coming up in two minutes.

. >> welcome back and a very good morning to you. they ended up closing the day in the green. largely because fears around greece just eased a little bit but also u.s. equities put in a strong performance. we did open today slightly in positive territory but we have declined over the last hour or two and we're down 0.3%. let's see where that is evening itself out. germany down 0.3. it's declined since the middle of last week largely because of the greece fears. italy down just 15 basis points. bonds, the interesting development over the last week is seeing the bond yields move in the opposite direction to the core bond yields. ie doing what it's meant to do. reflecting country specific risks rather than what we expect central banks to do. the ten year in the u.s. at 2.3.

that's come off the highs in the last week where it was close to 2.5. all eyes on the fed today. german yield below 0.8%. the u.k. below 8%. we have get minutes in about ten minutes time. >> starting to find a little bit of support. raised 0.4% against the u.s. dollar today but over the curse of june it's been settling in 1 12 around that area. 123.64 today. sterling is flat ahead of the monetary policy committee minutes from england. sri is standing by for us in singapore. sri, over to you. >> hi there wilf. all in all the asian markets today turned in a pretty strong

performance considering that we're going to learn from the fed what the path to normalization is going to look like especially from that press conference from janet yellen so i would have thought there would be a bit more caution though after a very choppy session that i'll talk about later on the move is this. there's a sense that yellen will air on the side of caution and we'll see her strike a dovish tone and that could be positive constructive for global equities including over here. let's return to the shanghai market. we saw another day of choppy trading but high volatility is going to go hand in hand with the high leverage investors are still holding. mainly retail investors on the shanghai market. so we were down by almost 2%.

they came storming back and it was really more hopes of reform associated with the big state run banks that really propelled the gains in the shanghai composite. we saw bottom fishing. it has been hammered recently over the course of this year and the market coming back there by a healthy 1.6%. the banks and the mining sector did well in australia up by 1% for the benchmark s&p. so all in all not a bad session from a risk appetite point of view despite the fact that some markets, case in point, nikkei 225 in a holding pattern some what just ahead of the fed. wilf back to you now. >> mounting frustration on the lack of negotiations taking place between greek leaders and international creditors. the failure to reach an agreement with lenders would mark the beginning of a painful course of default or grexit. striking an agreement with

partners is a historical imperative and they say it seems compromised reached on main conditions but little ground remains to be covered. the greek central bank says an economic slow down is likely to accelerate into the second quarter. the risk of a renewed bout of recession. the economy already contracting in the first quarter and if greece failed to present a convincing economic reform package which includes cutting pensions there's a good chance greece could potentially default. that deadline fastly approaching the end of june. that's why they're keeping a close eye on what's happening in terms of between leaders and international creditors. the euro striking in today's trade at session highs at 112 against the u.s. dollar. one eye on greece and the other eye on the fed. a decision expected at 2:00 p.m. eastern along with members updated economic forecast. janet yellen holds a news conference at 2:30 p.m.. the central bank is likely to

signal it's getting closer to raising interest rates for the first time since 2006 if the economy keeps improving but we'll leave the timing uncertain. let's get out to richard kelly, head of global strategy at t.d. securities that is still with us. i have been keeping an eye on the housing pictures because there's more evidence that the housing market is strengthening in the u.s. home builder confidence rising to a multiyear high. where is housing in janet yellen's priority list when assessing the health of the u.s. economy? >> i think there's some demand. the fact that you have seen interest rates go back up raises some questions as to how much further strength you see on that. right now you want to see a sign that there's some confidence or buying going through but there's not a make or break to the picture. >> they're hing to pin down the timing and the pace of

interest rate movements. ahead of that we're seeing the dollar firm up against the euro and yields coming down from the highs we hit about ten days back. what does that tell us in terms of what the market is expected from janet yellen today. >> overall they have to downgrade the dots they have been giving us. the expectation that the pace is probably going to be a bit less. some of those we're thinking they were going to hike three or four or five times are clearly not going to get that but this debate comes down if there's only six months left in the year and the fed comes in a message that suggests they're ready to hike twice this year that's a high degree of conviction that i don't think the market is quite priced for that. >> if we look 12 to 24 months out what's the risk now that they have to hike rates quicker than they would want to compared to the risk of having to hike and then cut again because they went too early? >> the risks are very much that they end up hiking much less than what the markets are

assuming going down there. it's a very low probability that you actually see inflation start to take off and wage growth take off to a point where the fed is back having to hike every six weeks in overtightening. it's still one where you have a lot of adjustment. a lot of excess capacity. we're not in an environment that's generating a tremendous amount of inflation. >> thank you for joining us. pleasure as always. richard kelly. head of global strategy at t.d. securities. now sanctions have weighed on the russian economy but according to the boss of one of russia's biggest partners he's seeing lots of value despite the very low rates of growth. >> we do see opportunity here. >> which opportunities? >> the thing is its almost

impossible to generalize and talk in common terms about things. it's on deal to deal and asset to asset basis. in the very same industry in which we made a recent acquisition in a company like this. this is a sector which has a great variety of results. >> would it be fair to say that the sanctions have created much richer pickings for domestic private sector companies that have cap alabama? >> well i think sanctions definitely boosted the desire and created pockets of capabilities to develop new businesses and new sectors where

competition from foreign goods were prohibitive to even think about starting this business. there's a dedicated government effort to support certain sectors and to grow certain sectors and yes we do see opportunities. clearly a sector with a bright future in russia. russia is one of the biggest wheat producers in the world and russia has the space and conditions for quality with production at optimal cost which is going to be competitive for years to come and the global demand is increasing every year with the growth of global population. this is clearly what we're investing and we know that we're going to make money there and there's many examples like this. also what happened with the oil price is a very good stimulus to start developing industries which have not been developed to the extent that they could have been in russia and we're entitled to take this opportunity. >> just to wrap up obviously

the russian economy has been in a difficult place for the last 18 months but even the world bank now is saying that it thinks the worst may be behind us. can i just ask you what your feeling is on this? because clearly we'd all like to believe that recovery is taking place but it feels like a different russian economy we're in. perhaps less market oriented. more control and more focused on ring fencing oil, gas, and mineral assets. is that how it feels to you? >> it does not. it does feel completely differently. i think the extension is business and receptiveness to hear from business has increased tenfold over the last 18 months and it's very clear why. because once the oil price drops and the revenues feeling state

budget reducing and there's only two sources, business and individual income tax. various other taxes but the platform is business. if your business is not developing who is going to increase tax payments? who is going to fill them now? you either have to give up on the market economy all together and say okay the story is finished and we are moving to i don't know some sort of a controlled planning economy which i see no indication that this is happening in any of the statements i don't see that. i see that russia is a market economy and will continue to be in the future. >> coming up later on the show london tech week gets into full swing. we ask a panel what advice they would give to start ups vying to

raise cash in the crowded market. >> we'll be asking you throughout the show what can -- which city can rival silicon valley as a tech hub? do you think london has a chance or is there somewhere else? get in touch with us by e-mail worldwide@cnbc.com or via twitter throughout the show and we'll discuss that in more detail and include your tweets too. >> still to come on the show could greece's pain spell opportunity for corporate raiders seeking a good deal? we'll discuss that and head to thaen athens to discuss. back after this.

>> it's all about the fed. european equities treading water as they anticipate further guidance on when the fed will raise rates and how much of a threat greece is to the global economy. >> raising a glass to the u.s. after strong demand helps offset weakness in china. shares in the french drinks maker shooting higher after hikes it's dividend. >> ceo of russia says russia's con move should not put off investors. >> you cannot say things like that happen only in russia and don't happen anywhere else in the world. if you go to russia things are going to be bad for you.

this is not true. >> protestors gather outside as government gets ready to present a highly controversial reform package. >> let's have a quick look at sterling. we're awaiting data from the u.k. it's up a little bit in the last few minutes and the data has just come out. we're looking for the bank of england minutes and also recent unemployment data. let's have a look at what's coming out at the moment u.k. polly will not be determined by other banks and no change in the rate. they're saying the path depends on domestic inflation outlook.

let's also have a look at average earnings growth for the three months to april. total average earnings were up 2.7%. that is better than expectations. average earnings for -- sorry let's also look at the unemployment level which has hit 5.5% which was the same as last month and also what was expected. >> that's right. down 43,000 to 1.8 million in the month of april. interestingly enough we're seeing sterling right now rise after getting these boe minutes. the big take away is jobless rate remained stable and u.k. earnings rising further. sterling at 1.5 against the u.s. dollar. >> let's bring more of the exact headlines from what the boe was saying. 9-0 was the vote but they did say two members were finally

balanced if what they were deciding of course. there's two that have voted for rate rises but refrained from doing that for a few months now and stuck at the 9-0 level. head winds to growth have begun to ease they're saying. interest rate increases to be gradual when they do come and as we said earlier the u. k. policy worked by actions of other central banks. sterling 15707. >> all right. joining us now to discuss is head of european fx strategy at morgan stanley. we were just laying out what the boe minutes say. what are your thoughts? what is your instant reaction? >> to the u.k. data we're getting very encouraging signs coming through from the labor market and the earnings data in particular. the market will be very much focussing on those particular data given that that's important going forward. the bank of england is sensitive

to the earnings data and several members as you have already noted are in a position whereby their decision is very finally balanced so the two hooks we think will start to move across for rating hikes over the course of the next few months we believe and if the earnings data continues to come in at this kind of pace that could be the trigger for them starting to do so so there will be a slight shift over the next few months. it may take awhile for the rest of the mpc members to move across. particularly while the growth numbers still seem to be a challenge so we may have this improving coming through if the growth is not following we could welsey a split in the mpc for some months with just two members voting for a rate hike.

so our economists are actually looking for the first rate hike in the u.k. to come through if the first quarter of next year but sterling will start to pick up support from the stronger earnings data from the prospect of more hawkish comments coming from the boe and the potential for rate hikes over the course of the next few months. i have been looking to express that rather than the dollar. the dollar will be in a very strong position. so the upside may be quite limited but on the crosses there is still plenty of potential for sterling to move higher so euro sterling could start to move down toward the bottom of the range and also against some of the commodity related currenties they could also outperform. so against the australian dollar and new zealand dollar could also be areas where they start to make further gains.

>> what about political risks? can the market look past that in the meantime? >> you do have potential risk coming from the political side. first of those is going to be the fiscal measures which are said to be announced by the new government. once they start to get factored into the forecast that could see the growth forecast being brought down and again that could then limit the members moving toward the side. also we need to remember the eu referendum which is being very hotly debated. that could have quite a negative impact on to longer term investment inflows into the u.k. so while you had the uncertainty

overhanging the eu referendum that could have an impact and it could start with the longer term flows in the u. k. which has been a major factor many recent years. they have slowed down at the beginning of this year and if that's the case we are going to end up with this mixed performance for sterling where sterling struggles against the stronger currency such as the dollar but is able to out perform against weaker currencies such as the commodity currencies and the euro. >> april unemployment at its lowest level since june of 2008. total average weekly earnings increasing by 2.7%. the lack of wage growth is a big issue. some say that's a lack of productive but others say it has to do with corporations not feeling confident enough when paying their workers more. what are your thoughts? >> that's one of the big debates

is the lack of wage growth in the u.k. despite the improvement we have seen but we're not starting to see that coming through. that does provide support to the more hawkish members on the mpc. they have been looking at this data closely. particularly that wage growth so if that continues to pick up over the next few months that could well be the trigger point to push some members, marly those two hawkish members to start voting. they could start voting by august for a rate hike in the u.k. for sterling that could be a supportive factor on many of the cross. >> thank you for joining us. much appreciated. head of european fx strategy at morgan stanley. flashes coming out of the swiss attorney general's office relating to their fifa investigation. their own investigation spawned off the back of the doj investigation in the u.s. they're saying this

investigation is huge and complex. they have said they have started various interviews with people including seizing huge amounts of data. they have said it is possible they'll interview the fifa president but they haven't done that yet. they're also looking at certain banking relationships. up to 104 according to reuters. the number 53 according to a separate flash coming out as well. so either way the swiss authorities looking into certain banking relationships as part of the investigation. they can't disclose the timetable though so no further reports on that at the moment. >> let's take a look at european markets on this wednesday. the focus on greece worries over greece defaulting on its debt depayment that it owes to the imf but i would argue that it's the fear of capital controls that is even larger and what that means for greek banks continues to be a larger concern

in the market france down 1.2%. >> let's have a look at bond yields. yields edged down slightly. slightly less risk today than yesterday around greece. that's what the market is telling us. the german yield below 0.8 and the u.s. note 2.32%. all eyes today will be on janet yellen. >> also on greece earlier this hour the greek central bank warned the governments failure to reach an agreement with lenders would mark the beginning of a painful course toward default and grexit. they reported 30 billion euros in deposit outflows from october through april. >> jeff caught up with one of russia's biggest private oil companies which holds a majority

stake in the firm. he asked if he would consider increasing his position in greece or taking steps in other businesses. >> we're evaluating opportunities all over the place. what should be our advantage. all the global funds, jp morgan goldman sachs, everyone all know that this is the fact. so all of them have their private equity funds in europe in greece in london. very close. people working on assets. all of them are looking for good deals and all of them are screening ten deals a week probably and they're picking and choosing the ones they really believe in. we need to have a qualification to get in and get access to a deal to which other guys would not get access. either we need to have unique knowledge or unique connection or capability or we need to be prepared to pay more than those guys will and if we are prepared

to pay more then we need to understand why are we prepared to pay more? are we going to be a more qualified investor? do we have a unique set of product management skills or industry skills? i don't know. we have a very qualified team sitting here we can use the expertise to apply it to a telecom asset which is not well run and by improving the management can create sub substantial value. >> you don't see anything in greece that you're looking for. >> we are look and are aware of the situation but i can't name any names right now. >> they see an up tick in deal activity as the debt crisis has bargain hunters looking for assets. that trend could continue in specific sectors. let's get the trade we lane

green that joins us live in athens. help us understand that despite the lingering default concerns we're seeing a high level of activity. why do you think that is? >> well there's a couple of trends our sources are picking up on. one is a lack of liquidity. there's a necessity to do deals in many cases due to banks not being able to give loans or so long-term liquidity issues and the other is there's quite a few deals in the wings for the last couple of years and everyone has been waiting to see what will happen and some of those deals it seems can no longer wait. others are stalled at the moment still. >> how do you weigh the valuations of some of these potential targets? this is a bet on something being

bailed out as o opposed to looking at evaluations. >> it's interesting because the valuations are quite strong. the biggest deal we've had recently is in the pharmaceutical sector in greece. we had bc partners acquiring them for 460 million euros so that's pretty strong multiple we're seeing there in the pharmaceutical sector. it's actually an interesting sector in greece because prices have dropped by around 20% and suffered from government nonpayment but despite that we're seeing quite a lot of deal activity and bc partners apparently is not the only private equity that is looking in the sector. >> elaine give us the latest on your take on the ground of course in greece in terms of

where we are with these unfolding negotiations. is risks elevated at the moment? >> i would say so yes. yesterday the mp the prime minister yesterday slammed the creditors. particularly the imf. even accused them of illegal activities and undermining the greek economy so that was a very strong attack by the prime minister and they're not going to submit new proposals after the proposals on monday were rejected. so we've seen a much harder line but we're also seeing a hard line from the creditor's side so

this is the most strained that negotiations have been since the government came to power in january. >> thank you for joining us. now more than 1,000 people have descended on hong kong's legislative council ahead of a debate on electoral reform with the former british colony on amber alert before the vote. >> lawmakers are debating the package which is the frame work for selecting the next chief executive. it provides for the nomination committee and then how 5 million hong kong people will be voting for the next chief executive. they'll each be given a chance to speak. there's 70 of them. each a maximum of 15 minutes. so the vote is not expected to take place until tomorrow the earliest or maybe even friday. it's not expected to pass. it needs a 2-thirds majority in

order to pass. protests are continuing outside. we have groups for it as well as against it holding rallies today and all week this week in the evening from 6:00 p.m. to 11:00 p.m. holding their peaceful protests against the reform package. they have vowed not to occupy. now security has been heightened and it will be this way during the debate and vote. >> still to come london tech week puts the spotlight on the financial tech week. coming up straight after this break. shopping online... ...is as easy as it gets. wouldn't it be great... ...if hiring plumbers, carpenters and even piano tuners were just as simple? thanks to angie's list now it is.

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>> twitter has officially rolled out auto-play in for video ads in users feeds. they will only play with audio when you click on them. the auto play function will apply to all videos uploaded directly to twitter including vine videos. video ads demand higher rates than display ads. they have 4 million views per

day. >> apple has reportedly fired the lead contractor work on the spaceship building of its new campus. he has issued a statement saying it reached an impasse in talks with an unidentified customer over changes in the scope of the work and it's been terminated. it says the lost work will cost about $800 million. the apple campus two project calls for 2.8 million square feet of office space on 176 acres of land. it's expected to be come meeted next year. >> if you don't get why your kids spend all their time on snapchat, the co-founder posted a video describing to parents how the app works. he uses a sketch pad and sharpie pens, they're using them to talk to each other. snapchat is valued at $15 billion but it doesn't appear much cash was spent here on this

particular video. >> the u.s. is leaving europe behind in the battling to the biggest breeding down to tech unicorns. that refers to starts ups with a value valuation of $1 billion or more. the combined valuation is $120 billion. more than half of facebook's market capitalization but europe has shown improvement raising it's total number of unicorns to 40 up from 30 last year. for more on that story and all the latest tech news head to cnbc.com but let's continue the discussion. london is seen as the hub for europe. is that continuing and why is there this change in sentiment over the last couple of months? >> london has always been a

finance hub for the world. that was the first insurer globally back 500 years ago. the great support for tech across europe and london in particular it's a greater place to start the company. >> we just saw that video. london is a tech center. it's never going to compete on any level like that, is it? you don't need to have a global presence. so as a consumer who cares where the headquaters is. you have a great number of examples of london based businesses doing well worldwide and where you don't really know where they're located. >> if we zone in on the fintech space mobile changed the way we

interact with money and how we do it. how are you as an investor finding opportunity in the space and is it all about mobile? >> it's one of them. the big trend is that you have these institutions providing just a supermarket of services and now it's moving to much more customized value proposition, right? so similar to on your phone, one app to send e-mail and listen to music when it comes to fintech you have these best of breed providers focussing on doing really well and a lot of times delivering it. >> of course most of the chatter around mobile banking and fintech stuff tends to be on payments. what other areas are growing fast in that space? >> i think for many years it's been all about payments. that's what the banks like to see. they like to see innovation in payments. they're used to that and now

you're seeing start ups going after every single area of banking. that was the sacred cal of retail banking. it will never shift to other players and now you're seeing the current accounts as at least 3 or 4 of those launching in the u.k. going after full banking licenses and making a full on assault and they're absolutely all doing that mobile first. >> you mention insurance as well. >> so far there's money around distribution and now people are trying to go after the actual business of underwriting. you see it in europe so people are going after the real heart of insurance. not just the distribution side. >> scholars and investors long debated the use of crypto

currency. so many bulls say this will replace the dollar at some point. do you see opportunity there? bitcon is now down in disillusionment. down $200. people are more skeptical. the fashionable thing for this year is that block chain is an interesting technology but bit bitcoin it's with a lot of it. rather than waiting days bitcoin can transact in seconds. >> your thought. >> i agree. it's a fair point. used to be that people thought two years from now we'll all be paying with bitcoin and people are wondering what's going to happen to cash. ultimately it's an underlying technology so it becomes less visible to the consumer so a

london based success story that helps people to send money home and ultimately could convert from a to b on this new technology. we see a lot of activity there in the background that has nothing to do with where bitcoin itself is trading and much more. >> is excel investing in the bitcoin ecosystem? >> absolutely. we have a couple of investments it has the infrastructure to make sure it's happening and make sure everything is work in the background. >> a quick word on valuations. >> valuations reflect what investors see as opportunity. a lot of people are chasing and you're seeing more investors coming to europe and they see london as a real opportunity.

that's pushing valuations up. that's not necessarily a bad thing. >> thank you so much for joining us us. >> and on this general topic we want to hear from you. can any city rival silicon valley as the tech hub of the world? do you think london has a chance or is there someone else? do get in touch with us by e-mail worldwide@cnbc.com or via twitter @cnbcwex. also still to come here on worldwide exchange low inflation the new buzz word describing the lackluster price increases. stay tuned as we break the latest euro zone inflation data.

welcome to the second hour of worldwide exchange. >> it's all about the fed. investors anticipate further guidance on when the fed will raise rates and how much of a threat greece is to the global recovery. >> this as the greek central bank warns over a painful path toward default while fears over potential capital controls mount. >> you're fired skanska loses out over a bid to build apple's

spaceship campus. >> shares in the french drinks maker shooting higher after it hikes it's dividend. >> welcome to the show. we're getting euro zone may cpi. plus 0.2% month on month. that's in kline with expectations and the same as last month and plus 0.3% year on year which is an increase from 0% from the previous reading but is in line with expectations. so the data 0.2 month on month and 0.3 year on year. you can see it's up about 0.2% today. 11265. >> overnight on wall street we did see a bit of a rebound on no news really of perhaps investors expecting a dovish statement from the fed reserve chairwoman.

futures indicating another day of o green. the dow jones in premarket trade up 73 points. s&p 500 up 8 and the nasdaq with a gain of around 16 points. unwelcomed instability in the market and these elevated fears are around greece and it can be seen in the stock market as well as the bond market but take a look at european stocks. we're now higher on the day. the xetra dax up about 12 points which did end the day higher in yesterday's trade as well. the cac 40 up about 2 points and the italian market with a gain of around 160 points. despite gains we should point out in traders still expressing a lack of concern or more frustration around what is happening between greek leaders and international creditors but a lot of focus today will also be on the fed policy and whether we get an indication of a rate hike coming in 2015.

>> absolutely. let's have a quick look at the bond market. we saw yields in europe elevated because of greek risk and we saw core yields both in germany and the u.s. compress a little bit off the back of that. nothing too astonishing but at least it wasn't everything moving in the same direction as had been the case over the last few months. >> we're looking at the ten year in germany. bond buying over the last couple of weeks. it crossed 1% recently in the u.s. 2.33%. also somewhere away from that 2.5 level which it got very very close to even though we're expecting a slightly more hawkish tone this month from janet yellen than we saw last month. we have the euro up about 0.2%. 112 seems to be settling in and

around that area let's also have a look at sterling. we did see the strength off the back of the monetary policy committee minutes. still a 9-0 vote not to change rates but more of a hawkish tone in general. sterling rise.5%. let's check in on markets in asia. sri is standing by in singapore for us. sri. >> hi, wilf. it's all about the fed. i thought there would be a more cautious approach in asian equities today ahead of the fed meeting, the conclusion of the two-day meeting. we did see some caution in certain markets. you're looking at one week lows but elsewhere we saw quite a lot of risk taking. the australian benchmark up by more than 1%. out performing as well and that

seems to be telling me that perhaps janet yellen and this is what the markets here seem to be banking on might strike a dovish stone in her press conference later on today. we'll wait and see. elsewhere choppiness in the shanghai market. i'm not surprised by this. with high leverage comes high volatility. we saw the market down by almost 2% during the morning session only to come back up because there was reform associated with the banking stocks. that's where we stand. back to o you in london. >> thank you. in the last hour the greek central bank warned that the governments failure to reach an agreement with lenders would mark the beginning of a painful course toward default and grexit. the bank recorded about 30 billion euros in deposit outflows from october through to april. this as fears grow over potential capital controls in

greece. >> jack lew voiced his concern that greece could leave the euro zone by accident. in a phone conversation with the greek prime minister he urged him to reach a realistic compromise with creditors. he told lawmakers that their partners needed to speak clearly and reiterated that pensioners and workers must not be burdened further. he also criticized an ala ala cart imf. >> the f the goal is to continue with a program inspired by the imf, a program that everyone in the world knows has failed not only in europe but everywhere else and it's continuation without any debt restructuring then there is no leeway for a decision by the greek parliament. not only for the greek government. we are obliged to just do our duty and not give in to pressures and blackmails without any result. >> investors will be looking for

comments on greece from janet yellen when they conclude later. we ask pop money managers strategists and economists when they expect a rate increase. >> this meeting is about the rate hike. the first thing we did is try to separate people into the 2015ers and 2016ers and i was surprised by the results. 92% of our group expects the fed to hike this year. in fact it's up from where it was in the april survey ahead of the last meeting from 84%. when do they think they are going to hike? here we go. let's go to the time line and it's pretty much the same. it's september where it was in the april survey and now it's september as well. my guess is there was a bit of

that weak first quarter and better data for the second quarter. they did push ahead from when they think the balance sheet is going to decline. from right around february and april now it will be 285. it was in the prior survey but around the same time. first quarter of 2018. so this very long slow hike from september 2015 to reaching the terminal rate in the first quarter of 2018. here's the path that we had. back in september we thought that it would be a full 100 basis points in the end of this year. now we're thinking just 50 basis points to half of the expectation over that time. same thing happened for the forecast for 2016. we thought it would be above 2% back in september of 2014. now we're thinking only 1.5

which is is just frup the-- up from the prior survey. it will be about preparing for a rate hike. >> one of our respondents says the fed is going to hike but we think the markets will be resilient and continue to grow. >> interesting stuff in that survey. i suppose all in all this month compared to last month has to be more hawkish. >> given the data over the past months, retail sales and industrial production surprising to the upside. housing showing signs of growth. that could give janet yellen more permission to hint that a rate rise is coming in 2015. despite cautioning that the u.s. should wait to 2016 given the mixed economic data over the past six months. >> yeah i think my view overall is as i was saying yesterday in term of that sentiment and janet

yellen suggested it in that she is looking a few years not. not just at the next few months but they don't want to have to raise rates all of a sudden at some point next year and thus starting with a quarter point rise it could do smaller than that but a little bit of a rise by september is going to be what she is going to start to sell telegraph later today. >> a lot of it having to do with the lack of clarity as to when the first rate hike will come. i'll be curious to see what happens to the u.s. ten year once we get yellen's statements. if that gives investors more clarity as to when the rate hike is coming. >> particularly if we look at it today, 2.33%. over the last week or so we probably had more reason to continue to expect hawkishness today and yet that's come away from 2.49% and that's around greece and safe haven trades but it's been such an extraordinary

period with so many other factors moving u.s. bonds led by europe and maybe today the focus can come back to the u.s. the fed leading it's on bond market. >> as it should be. >> we also want to bring you news on uber. just learning that an indian court left a ban on uber in place in new delhi. indian transport officials must respond to the challenge to the ban. the next hearing in uber will be held in july of 2015. this after an uber driver raped a passenger in month of december. that's the latest on uber and the progress in india. coming up later today we'll be speaking more about india and the opportunity in the indian market with arun jaitley. he'll be joining kelly evans on closing bell this afternoon at 4:00 p.m..

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>> welcome back. u.s. stocks as the fed has press conference. this as fears over greek capital controls mount with the central bank issuing a warning over a

grexit plus a field of thieves. the fbi investigates allegations of hacking in major league baseball. >> vladimir putin announced plans to put more than 40 new mistels into service this year. it will aim at territories where threats come from. the move drew sharp criticism from nato. they amount to nuclear rattling and was unjustified and dangerous. >> once russia's biggest private oil company was last year legally seized from its corporate owner and standed back to the state. a court also placed the chairman under house arrest as part of a money laundering probe. the rulings were seen by many as representative of the rix of investing in the company. jeff caught up with the ceo for an exclusive interview and asked how painful the experience was

for his company. >> things like that happen in any country and any economy. those situations arise and you have to deal with them. i think one of the important facts and at the same time they recognized to be a good faith buyer back in 2008 so they are also a good-byier so farce our actions in this purchase we have no doubt and it's recognized that it's done correctly and no laws were broken. so we don't truly have much to think about what to do and not to do. it's very simple. we do deals absolutely legal and deals which create value and if you look at the numbers you'll

see we created value. and what was the valuation at the time when this situation arose back in 2014. >> you said it could happen to any country anywhere in the world but when it happened western analysts said there you go that's russia all over again. has this changed the way you think about investing at home? will you now think more about going to other marketplaces that offer good value in business terms and perhaps less political risk? >> our key market and key focus continues to be russia because that's where we have our expertise and that's where we have our competitive advantages because we understand the market. we understand the business. we know how to do business and how to create value and as far as, you know legal risks or business risks are concerned, i

can give you numerous examples of very big names being awarded very large amounts of fines on charges which, you know are also kind of -- i wouldn't say questionable but, you know would not have been expected a few years back so to say. specifically banks, you know after what happened in 2008 and 2009 and now you see criminal investigations taken into policies and behaviors of certain institutions based on e-mails sent between traders and dealers to each other about i warned you that this fund is not good and you ignored it and so on and so forth and you get a $2 billion fine. >> so you're drawing a direct comparison between what's happened with western bankers and your experience? >> i'm just saying that when you talk about legal risks of doing business it's never black or white. it's always an area in which

judgments could be made and all i can say is that you cannot vindicate russia and you cannot say that things like that happen only in russia and they don't happen anywhere else in the world. if you go to russia things will be bad for you. if you stay in western europe and the u.s. things will never happen to you. this is not true. you have risks all over the place and as far as we're concerned our policy is to be very transparent and very honest in the way we do business. we comply with all the regulations and we try to do things the right way and if sometimes things or circumstances work against us okay, we deal with this right? as any business would and i think we have come out pretty strong out of this situation and we learn a lot in going through the process and it will only make us stronger along the way. >> jeff also caught up with the bank of russia's governor after

the central bank cut rates for the fourth time this year. we'll bring you that interview on cnbc on squawk box europe tomorrow morning. now this all coming ahead of the st. petersburg international forum for the full preview head to cnbc.com. >> still to come on the show if you can't beat them join thelda. tech titans are stepping up efforts to partner with start ups. we speak with a leader in microsoft's accelerator program after the break.

let's talk tech. the u.s. is leaving europe behind in the battling to the biggest breeding ground to tech unicorns. according to tech investment bank the combined valuation of europe's unicorns is $120 billion. a little more than half of facebook's 227 billion dollar market cap but europe has shown improvement in the last 12 months raising it's total number of unicorns to 40 up from 30 last year. for more on all of that news all the tech news check out cnbc.com and we're also going to discuss with roxanne. a pleasure to have you on worldwide exchange. >> thank you for having me back. >> it's evident that a new

generation of leaders are taking heart at what google microsoft, amazon are trying to achieve. what is the innovation coming from some of the younger entrepreneurs mean from some of the players in the tech industry. >> it's great news for us. with the programs that we have we're looking at actually building some of these start ups from the ground really partnering with them and helping them scale up and i think we're going to end up innovating together so it's definitely great news. >> from microsoft's point of view do you invest in businesses that can be challenges and complimentary to microsoft's business or just those complimentary? >> we're working with all businesses. we see most of these start ups as partners. a lot of the businesses and products go hand in hand so it doesn't actually end up competing directly with what we're doing. >> uber snapchat have been the symbols of silicon valley's uniforms and here in europe maybe transfer wise in spot

identify. how important is it to reach the $1 billion threshold. >> the markets are different and some of the criteria we're using to define what a unicorn is or isn't it's much more complicated and it's promising to see companies like spotify still hitting that uniform criteria and that's the only reason we're seeing potentially fewer unicorns here. just because the market is a different market. >> is microsoft invested in any of those names? >> as an actual investor no. >> lots of talk about london catching up with silicon valley in terms of being a tech hub. what do you make of that. it's still a long way behind. >> i hate the comparisons of silicon valley anywhere. every city has its own potential. it shouldn't be striving to be the next silicon valley. london, paris, berlin the nordic region southern europe eastern europe we have tech hubs all over the world popping

up so i don't like the comparison but i think that each location has something specific to offer and tech city has definitely shown a lot of potential. >> let's break down where you see opportunity in technology. london many times seen as the hub for fintech and by 2018 nearly 30% of smartphone users in the u.s. will make a mobile payment at least once every six months. talk to us about where you see opportunity in the mobile payment space. >> in the payment space we have seen a lot of interesting innovations. in paris in specific we've had companies come out of the microsoft ventures accelerators. instead of paying for drinks and your coat check and what have you, being able to pay for that with your smartphone. we've seen other companies that microsoft worked with mango pay, they're actually facilitating payments for a lot of the big

marketplaces. we have a lot of very interesting payment solutions that i think is across the board. so we're actually going to see a lot more moving to smartphone and a lot more potentially in europe there's potential to harmonize some of these different markets as well with different regulations. >> we'll leave it there. thank you for joining us here in the studio in london. start up leader at microsoft finance. let's get a look at futures right now and what we can expect on wall street. all eyes on the fed and what janet yellen will say ahead of the announcement. the dow indicating an open by 75 points. s&p up by 9. we're seeing gains across the screen. worldwide exchange. we're back in two minutes.

you're watching world side exchange and i'm seema mody. >> investors anticipate further guidance on when the fed will raise rates and how much of a threat greece is knot global recovery. >> this as the dpreekgreek central bank warns as fears over capital controls mounts. >> skanska loses out after am ends the contract to build their campus.

>> and they're closing in on a $10 billion buyout of atm maker ncr. >> the dow posting it's triple digit move for the third straight session. something it has not done in three months in yesterday's trade all ten s&p sectors closing higher with consumer staples leading the way. the ten year treasury edging lower. it will be interesting to see what kind of reaction we see in the bond market today once we hear from janet yellen. investors wanting more clarity as to when the fed rate hike is going to come. the dow actually up now 70 points in premarket trade. in europe a flow of headlines back and forth between european creditors and greek leaders but the big picture still remains the same. greece needs to free up money it needs to make repayments on its debt. that deadline approaching at the end of june.

interestingly enough in the last ten minutes we have turned back into negative territory. the xetra dax down by 10 points. so seesawing between positive and negative territory. the ftse 100 down by 10 points. i want to point out the cac 40 which is holding on to a loss of 17 points. so far it's been the italian market that's been the bright spot up 135 points. >> now we're not even a year out from the u.s. presidential election and the barbs are being exchanged. they issued a tongue and cheek response to donald trump's announcement. he needs much needed seriousness that he has been previously lacking from the gop field and we look forward to hearing more about his ideas for the nation. that was from the dnc. the real estate mogul declared his run at the trump tower in

midtown manhattan yesterday where he promised to get rid of obamacare and build a wall between the u.s. and mexico delivering a bold pledge for its candidacy. >> all of my life i've heard that a truly successful person a really really successful person and even modestly successful cannot run for public office. just can't happen and yet that's the kind of mind set that you need to make this country great again. so ladies and gentlemen, i am officially running, for president of the united states and we are going to make our country great again. >> now this is a hill bit of a surprise to people. has he actually got any chance at all? >> that's the big question. does he actually have a viable chance atsawining the republican ticket? he has been hinting at running

for president for many years now so the fact that he actually did say he is officially running, there's something to be said about that. he thinks he has a chance. we many times laugh at these type of announcements, rumors that donald trump is in fact running. because aside from being a real estate mogul he's a tv personality and known for his extremely opinionated views and he's also floated the idea of running for president many times. the question is does he actually have a chance? >> i think my take by reading what people have said is he doesn't really have a serious change but i wonder if it changes the debate a little bit? he's got a lot of money to spend. >> he does. so he doesn't need to rely on donors but there's now i think about 12 candidates on the republican side. it's pretty amazing and only one on the other side. >> a long way to go. >> let's take a look at the other top stories at this hour. black stone and the carlyle group are teaming up on a joint bid for ncr, the maker of atm's

cash registers and self-service kiosks. it could be the year's biggest at more than $10 million including debt. other firms include apollo. the auction is weeks away from completion. ncr has been exploring options in the face of pressure from activist investors. take a look. you can see it's one of the winners in germany up 12% in today's trade. starbucks plans to close all 23 of its pastry shops by the end of september. it bought them by $100 million to help boost it's baked options. they have been key in growing starbucks food sales which rose 16% in the most recent quarter but running the separate store which is are mostly in san francisco has become a distraction. starbucks shared down .7% in frank further. >> now still to come on the

show handing over the reigns. rupert murdoch makes it official. giving up control of his media empire to his sons. details on that coming up after the break.

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quarterly earnings before the opening bell. the fuel prices are expected to help the shipping company's bottom line but increased competition with ups and e-commerce players with amazon will also be in focus. shares are up 4.8% so far this year. a bright spot in the transports index. they're also looking for details around it's expansion plans after it required them to expand the foothold. up about 5% in 2015. >> indeed an important set of earnings to be watching. in other corporate news rupert murdoch picked a new man to be in charge of most of his media empire and he's keeping the power mainly in the family. let's get all the details. landon has them at cnbc hq. >> good morning to you. 24th century fox is confirming news that james murdoch will take over as ceo of the company which includes the fox broadcast network, cable channels and

movie studios on july 1st. rupert murdoch will transition to executive co-chairman and will share that with his other son. james will be based in new york while he will be based in los angeles. rupert murdoch's right hand man will give up that position to become executive vice chairman. he will remain at the company through the end of his contract in june of next year. in a statement rupert murdoch says it has always been our priority to ensure stable long-term leadership for this company and these improve the goal. >> they say we're both humbled by the opportunity to lead with our father and the talented team of executives at 21st century fox. this extraordinary company. he split it up in 2014. the entertainment assets became

21st century fox while the others went into news corp. the family has a 39% voting stake in both companies. wilf back over to you. >> thank you very much as ever. now we'll bring flashes on the german ten year bund. my favorite financial security. been some auctions this morning. the ten year bund the average yield 0.81. that's up from 0.65 in may. it's also the highest yield seema for a german ten year bund auction since january of 2015. of course this yield is a little bit off of the recent highs of 1% that we crossed recently. >> where does your love come from? help us understand. >> i used to be an equity trader so i came to this job and apart from the joy of getting to work with you and being on television i got to talk about bonds as well. the german ten year bund has such a wonderful story to tell. >> the type of excitement. i hope the viewer can see it

through the screen. >> it seriously does. particularly in the nine months i've been here. it's told the story of financial markets. most have been priced off the back of it. >> true. there's a lot of movement in the bond market. a high level of volatility which i find to be particularly interesting because i think it's resulting in some investors reassessing whether they should find safety in the bond trade. maybe they should look somewhere else. >> bond markets are meant to be safe havens and them trading like equities is very excited. >> we should question where it's coming from and it's the central bankers in the driver's seat pushing this liquidity in the bond market and resulting in investors at home. having to suffer the consequences associated with these quantitative easing programs. >> i'm not saying you should buy them. you should sit back and watch them. it's like a good movie. >> a good indicator of feature market performance. >> we'll move on and now talk about -- >> i'm going to give you this read because this is your second

favorite. >> i don't have favorite companies. just technology is interesting. >> but you enjoy talking about these types. >> twitter has officially ruled out auto play for video ads and users feeds. the ads will start playing when you rollover them but will only play audio when you click on them. now the auto play function will apply to all videos uploaded directly to twitter including vine videos. video ads command higher rates than display ads. facebook now has about 4 billion video views per day taking a look at twitter up about 4% in frankfurt. facebook is one of the worst things that ever happened to twitter because it gets compared to the goliath in the industry. >> i still think twitter has a big place in the future. it's different right? they're different beasts. >> completely different but

twitter has some things to work on including picking a ceo. >> indeed. now if you just don't get why your kids spend all their time on snapchat the co-founder and ceo wants to help you out. he posted a very grainy low budge video on youtube describing to parents how the app works. he explains why kids are taking tons of photos and posting them because they're using them to talk to each other. snapchat is valued at $50 billion but it doesn't appear much of that cash was spent on this video. >> exactly. apple has reportedly fired the lead contractor work on the spaceship building of its new campus. re/code reports they issued a statement saying they reached an impasse in talks with an unidentified customer in california over changes in the scope of the work and it's been terminated. it says the lost work will cost

about $800 million. >> it looks cool though. >> it looks cool. i'm excited to check it out. >> when is it going to be finished? >> i don't know. but it's been in the works for quite sometimes. >> let's remind you of the headlines. investors await the fed press conference for an update on the rate hike time line. this as fears over greek capital controls mount with the central bank issuing a warning over a grexit and black stone and carlyle are teaming up on a $10 million offer for atm maker ncr. we're back in two minutes.

the golden state warriors have been crowned as this year's nba champions. the team beat lebron james and the cleveland cavaliers 105-97 in game six of the nba finals tuesday night winning the series

four games to two. it's the first title for the warriors in 40 years. cleveland is still waiting for its first championship in any pro sport in more than 50 years. golden state forward was named if finals mvp. so there you got it. the ware wrors areriors are the champs. >> we're moving on. fbi and justice department prosecutors are investigating st. louis cardinals for hacking into the network of the houston assist astros. they accessed trades and statistics and scouting reports. it's the first instance where one sports team hacked the network of another. >> in the last few hours the greek central bank warned that the government's failure to reach an agreement with lenders would mark the beginning of a painful course toward default and grexit. the bank recorded about 30

billion euros in deposit outflows from october through april. this as fears grow over potential capital controls in greece. >> this after the u.s. treasury secretary voiced concerns that greece could leave the euro zone. in a phone conversation with the greek prime minister he urged him to reach a realistic compromise with creditors. boris is joining us and is now managing director at bk asset manager. we want to kick off and talk about greece before we get to the fed. we have seen a bit of yield compression over the last week both in germany and in the u.s. is that because of the greek trade? the safe haven trade because fears are elevated? >> fears are definitely getting elevated because we're coming down to the final last two weeks. there seems to be no money left and they'll have to come to either a deal or we may be facing a situation. so yeah i think the market is starting to feel concerned about

the situation. >> stocks and bonds. falling on greek debt worries but it's the euro that has been remarkably resilient through all of this. why do you think that is? holding on to 111, 112 at the moment. >> so a lot of analysts have been perplexed by the move and there's a couple of interesting theories. one is that the yields in the euro zone have risen making the euro much more attractive relative to the dollar as a result of all of this. secondly the spin out of greece is not going to be a big material event. that's a big question. the market is very very complacent about that and we don't know what the ramifications could be but the basic underlying here is that the market is very unconcerned if greece does leave. as a matter of fact the notion here is if greece does leave it's like bad debt off your books and it's positive for the euro. >> so greece does leave the euro. where does that leave the euro? will it trade in parity with the

u.s. dollar at some point? which was the consensus call earlier this year? >> no quite the opposite. if greece does leave and there's no massive moment of ratification in the financial markets it will be viewed as a relief and the euro could have a further rally. perhaps 115 to 117. ultimately the euro begins to weaken again if the u.s. fed begins to raise rates and we start trading back on differentials but for now it's just a view that it's taking bad debt off the books. >> let's hit the pause button and take a look at u.s. futures. we are expecting a higher open. the dow up about 70 points in premarket trade and the nasdaq seeing a similar move up about 16 and the s&p 500 up about 8. yesterday was a positive session for wall street. consumer durables were actually the best performing sector and today it's all about the fed.

wrapping up this afternoon with a decision expected at p.m. eastern along with members updated economic forecasts. fed chair janet yellen holds a news conference at 2:30 p.m.. the central bank is getting close tore raising interest rates for the first time since 2006 if the economy keeps improving but we'll leave the timing uncertain. what are you expecting from janet yellen? >> she has changed it from before. september should be the take off date if all things go as planned. when you are looking at the under lying fundamentals here the one thing that is positive is the economy is starting to see some wage growth which is exactly what the fed needs to see so barring any moment out of the grexit situation and any shock before then it should be all systems go for september and if she communicates that message

today you'll see probably a positive move in dollar yen and other dominant trades. >> over the last three weeks or so we have seen the dollar soften and yields have been relatively speaking elevated. what's happening there? are people positioning ahead of an expectation that she'll be hawkish already? >> the dollar rally had run really far but needed a little bit of profit taking and there's still this big question mark as to whether september will be the starting date for normalization policy. i think the market will feel more comfortable buying dollars and the idea is once the fed commits to a certain policy it's unlikely to change course quickly. but the correction was perfectly normal. the dollar got really overbought. it was necessary for it to come back down a little bit. >> would you buy the dollar this morning ahead of the fed policy announcement today? >> i think dollar-yen is an

interesting trade. i think pound-yen also looks good. the reason why is the pound is actually performing quite well because everybody thinks it's going to be the second to hike now if the fed moves first then the boe will be the second one to follow. those two trades look attractive this morning. >> but that doesn't itself make sense if the u.k. central bank will hike second then cable isn't shouldn't be strengthening. >> the pound is strengthening. >> indeed but if we expect the fed to hike rates first surely that's a nonsensical move. >> well everything is on a relative basis. so if the dollar is the first strongest, the pound is the second strongest relative to the euro or the australian dollar or anywhere else. so that's how the trade goes. everybody always anticipates the next move. it doesn't make sense until you

anticipate a chess player. >> let's have a move on the swiss franc. we're looking at strengthening by half a percent against the dollar and more than that against the euro. is that just the currency reacting ahead of that decision? >> yeah. i think so. they're trying to see what they're going to do. the swiss franc has been a calm story since the beginning of january but the market is interested to see if it's going to perhaps recommit to weakening the swiss frank going forward or also, by the way, to see how the reaction is if we do see a grexit. so still a lot of unknowns on that pair but everything will get resolved one way or the other before the end of the month. >> we're going around the world with you. i want to get your thoughts on the indian rupee. investors have become less positive on the indian growth story. prime minister modi is in office

for over a year. we also have the finance minister of india joining us at 4:00 p.m. with kelly evans. where do you see the rupee heading from here. >> i don't follow emerging market currencies that much but it's been the case as you say where there's been tremendous amount of enthusiasm built into the prime minister's election and then perhaps a lot of investor disappointment as a lot of the reforms have yet to materialize. i think the investment bet on india is still a good one that india is going to be a growth economy but a lot of it is going to depend on global growth and you'll see it start to perform much better. >> change takes time. thank you for joining us this morning on worldwide exchange. >> that's all we've got time for today here on worldwide exchange. thank you for watching. i'm wilfred frost. >> i'm seema mody. next up is squawk box. have a fantastic day.

>> will fed chair janet yellen just say have a great summer? don't worry about a thing? i'll see you in september. and starbucks making a big change saying so long so it's chain of pastry shops. the details straight ahead. and the golden state warriors are champs. wednesday june 17th 2015 and squawk box begins right now. ♪

>> good morning everyone. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. donald trump announcing his run for the white house. he has already upset neil young. another gop candidate and more controversy. i don't think we have permission to play it this morning either. let's get to our top story today. the countdown to the fed decision is on. at 2:00 p.m. eastern time the fed is widely expected to have no change in interest rates but i hike could happen before the year is out. the consensus of our cnbc fed survey is for a september rate hike. this is also a fed news conference da