the bailout package. >> european markets give up early gains. they weigh on the cac as hopes for consolidation are dashed with rejection of altice's offer. >> a $29 billion merger creating one of the largest grocery operators in the u.s. >> it's unacceptable. the french government slams claims that the u.s. spied on the president calling an emergency meeting on the matter. >> welcome to the show. we're just getting some german ifo business climate out. 107 107.4 in june. versus 108.1. just below forecast. we have the current conditions

at 113.1 versus forecasts of 114.1 and the overall expectations 102.0 versus expectation of 102.4. so all of these numbers coming in below expectations. only slightly below expectations and in contrast to the pmis we had yesterday. the euro 11213. yesterday a quite sharp decline of three quarters of 1% in the euro. let's discuss this data with the chief economist. very good morning to you. thank you for joining us. this slightly in contrast to the stronger pmi data yesterday? >> yes, it's a slight contrast but not very much. it's typical that we had a bit of volatility in the data. the overall trend is clear. we to have some drop in

expectations expectations. not in current conditions but expectations. we've seen that more so in the german. it does have some impact here however all of these, the pmis the headline ifo are still above the norm that is compatible with growth. the german ifo still points to growth of close to 2% so what we're having is a bit of nervousness but not a serious set back yet. >> companies were expected to trim their business expectations amid the concerns over greece exiting the euro but now there is this thinking that a deal will come together at the end of the week but do you think this is basically a response to the strengthening euro we've been seeing over the past couple of months and what that means for exporters that had been benefitting from a weaker currency environment. >> that could be a marginal

impact but i don't think it's a big impact. offsetting the slight rebound in the euro we do have some what better news out of the u.s. and out of the u.k. which suggests the overall export outlook should remain firm. it's not very very good but it should remain sort of normal. it's much more deafening noise seeing the words greece crisis all over the headlines and tv shows that is dampening expectations and it's very typical that germany reacts much more sensitively to such events that is to disturbances in the global mood than say more home focused economies. so this does fit the pattern as we had with russia last year. there's a bit of concern but it will probably not be a major hit to actual growth. >> the german ifo also pointing out that the economic outlook is muted. is that because of greece or the

lingering uncertainty around russia? >> the russian impact is no longer very strong. that started to fade late last year: we now have a bit of greek impact. we have some concerns about emerging markets but all in all, the levels that we have in confidence and the latest data including data for orders and out put are firm enough to get close to 2% growth this year in germany. >> stick with us here on worldwide exchange. let's get a look at how markets are reacting to that data. >> let's have a look at markets which are just seeing a little bit more red than green in terms of the number of stocks. but we have the stoxx 600 with a little bit of a gain. it did have more of a gain at the open. shared most of those over the last half an hour or so and of course this follows very strong gains across european markets so far this week. particularly on monday but also to a lesser extent yesterday. really reflecting a great amount

of positivity across monday and tuesday that a deal would be done with greece. today that confidence either priced in already or just losing a little bit of severity. germany and france bang on flat. athens shedding 2% today. very very strong monday and tuesday. let's look at bonds reacting as we might expect to a bit of a risk on sentiment that we've seen in equity markets. we've seen the german yield tick up where as the periferal yields improve slightly as the greek yield improved as well. let's look at a slightly surprising move in the euro yesterday despite rallies in european equities. we didn't see the same positivity in the european currency which sold off about three quarters of 1% yesterday. just bouncing back today by

0.4%. 11211 as we look at things at the moment. how has the oil price been holding up over the last few weeks and months? it's held up pretty well starting to find smooth pricing around that level for wti. we have been around it a few times. brent is at 64.64. let's check in on markets in asia. sri standing by as ever in singapore. >> good to see you. the stand out is the nikkei. we've seen the highest level since 1997 so you're looking at 18 year highs here for the nikkei share average and remember the boj is in the market. japan's biggest public pension fund has retated into the market and is emphasizing riskier assets so they're propping up the stock market as well. japanese corporate confidence is stronger too. they have a weaker yen to thank for that but all is not well.

abenomics still needs room to run and progress and we also really need to see japanese capitol capital spending and global standardings. we should get more on this that japan has on the agenda in the next couple of weeks. shanghai composite also doing very well. compare that with last week. 13% melt down but it seems to have flushed out some of the weaker retail investors. the expectations of clamp downs on margin financing. we're on a stronger footing here. still a lot of leverage in the system. but i'd say this we're up to 2.5% and we're on something of a stronger footing. there's also expectations in the market front running seema and

you and i know this more stimulus and more easing. possibly another cut in the rrr and another rate cut before the year is done. that's where we stand. back to you now. >> thank you so much. the greek economy minister is confident that a cash reforms deal will be struck at an eu leaders summit tomorrow. speaking to local television he added that any agreement must be passed by parliament as soon as possible. however, reports suggest that prime minister could face a tough time getting some lawmakers to support a new bailout package. >> meanwhile a lawmaker in the junior coalition says it cannot support a deal which does not include debt relief. let's get out to steve live in athens. it's wednesday steve and no science of a deal. >> yeah but we haven't had that euro group meeting yet so there is action behind the scenes. let me put it very bluntly for our viewers, nobody likes this

deal. that's the truth of it. the creditors don't like it the germans don't like it the imf doesn't like it and the parties back here don't like. even from democracy and the community communists. i have spoken to a whole array of politicians and not one person has turned around to me to say they really like this deal. will they vote for it? that's a different issue as well but there's some absolutely against this deal regardless of what it turns out as well. i went to a demonstration last night. very peaceful. all the demonstrations have been peaceful and the communists there, they weren't your usual black flag waving an aarcist and i asked him how people should react to this deal.

listen in. >> we believe the greek people should react and not accept this anti-democratic agreement. we believe the greek people should not be afraid of a rupture with the european union, capitalism and their power. >> a lot of viewers have to realize you talk about communityists and you talk about extreme left. the greek establishment is more extreme as far as from the left to the right. a lot of people are on the harder left side of things. it doesn't mean they're particularly radical in this country. i ask you don't like the deal and you don't like your creditors, what do you think? what's the answer from the communityists then? you need a plan. listen in. >> we need a complete plan. an exit from the euro zone and the currency won't support everything. it will lead to national wealth of the development of the greek

people and unshackle ourselves from alliances like the european union. in general, the attitude of the whole european union is unacceptable and also the attitude of germany. past greek governments are also responsible. >> so there you go. one party thinks get out of the euro get your sovereignty back and renationalize which is what -- well that's pretty extreme left. let me tell you about the politics in this building behind me as well. they're in the center as well. they could go along with something if he gets the deal through brussels and gets the deal to the greek parliament. they could vote for it but they don't like it and that takes him to the center. it may lose him some left wing votes as well so by moving to the right he'll gain allies. potentially the likes of new

democracy as well but it could be potentially suicide note for them voted in on throwing out austerity and takes him to the center and alienates them from some voters. the delicious intricacies are beginning to bubble to the surface. >> thank you for that excellent summary. let's discuss this further. the chief economist is still with us. so it seems like we're getting closer to a deal. we still haven't got that deal. not many people that happy with it but is a deal better than no deal? >> a deal is much much better than the alternative of no deal which would mean greek default which would mean the abis of grexit. this certainly is not a good deal. it's close to a bad deal. it does repeat the mistakes of the initial greek programs. this is tax hikes rather than pro-growth reforms.

it is a bitter irony. this new government came into power saying it wants to end austerity and it's proposing more austerity than creditors want because creditors want the reforms. they want it on the supply side. they're not that keyed on con training the demand side because they do not want to do away with union privileges in the labor market. with public servants privileges this is a deal about austerity. >> but most of what greece proposed is around taxes. 12% levey on business profits. i'm sure many on the other side of the table, with euro zone leaders would say there's still a lot of improvement needed when it comes to retirement schemes. >> this greek proposal is not good for greek employment because it poses extra burdens on businesses. it puts extra tax burdens on

many greeks instead of doing away with the privileges of say public sector of those that regulate the economy. so it's not a good deal but again it's much much better than no deal at all. we can only hope they get a little more sense in this. a bit faster to raising retirement age and less tax hikes. >> how does the market react if this deal does go through and, indeed it then also goes through greek parliament? given as you're saying this doesn't solve any of the long-term problems that greece faces. is any rally we get off the back of this deal being announced? a fake rally? >> no i wouldn't call it a fake rally. we should be getting a rally. this is the first big hurdle. once europe and greece have been able to agree on something then market expectations would be that which will come a few months later.

there will also be an agreement. the first agreement with somebody from the radical left. a power we haven't had to confront in europe for a long time. the first agreement with that would be a market positive even if the substance of that agreement is suboptimal and will have to be revisited later on. >> thank you very much for that. one further chat on the fed after the break. >> coming up on worldwide exchange, have you ever hit send on an e-mail and lived to regret it? fear no more. g-mail is coming to your rescue. we'll tell you all the details. if you can't beat them join them. ford is the first major auto maker to hitch a ride. and formula one could be racing toward an $8 billion take over by the owner of the miami dolphins. is this a dream team in the making? we will discuss. worldwide exchange, we're back in two.

welcome back. let's look at some of the biggest individual movers today. shares in the green as it trades low on the news. under the terms of the deal our shareholders will earn 61% of the company's equity with them

earning the remaining 39%. it create ace top 20 global retailer with a strong presence in the u.s. plus 1.6% for our hold minus 4.5%. let's also look at julius baer up after they agreed to take a charge to settle a u.s. tax probe. analysts suggested the fine was less than feared and removed a degree of uncertainty. let's also focus in on the french telco sector. a lot of price action as you can see. europe rejected altice's bid for the telecom's unit. the sector itself all down sharply. stefan is live in paris with the latest. >> good morning, speaking to them this morning they say the decision was made without any political pressure. he explained that to the offer

of alabama gattis. regarding the significant premium. replied that money was not everything and say that financing of the offer was not totally sorted out. altice was reportedly offering 10 billion euros which is estimated between 5 and 6.5 billion euros. so that was a significant premium. he claimed that four more bio operators in the french market was not too many. something surprising considering they made an offer to buy sfr last year and to consolidate the french telecom sector and last but not least it will be unprofitable for the first half of this year which is not surprising considering that the company lowers it's prices in order to attract more customers in the last few months. it remains confident about the outlook. it says it's in a good position

to benefit from a new period of growth in the french telecom market. as we could expect all the telecom sectors trading lower, weak also of course but also free mobile because the company was set to buy most of the frequencies and towers in order to enhance it's own network. it's also bad news for them. over to you. >> thank you very much for that. now moving on the bank of england should be ready to raise borrowing costs as early as august. this according to a member of the monetary policy committee. in an interview with the financial times the central bank's most hawkish policy maker said a tighter labor market would likely require a response. they've been unanimous in voting to keep rates on hold since january. he called for a rate rise in the previous year and said the slide in oil prices contributed to his

changing stance. >> the dollar index is hovering at a one week high against a major basket of currencies as investors position in a u.s. rate hike this year. this after jerome powell indicates he is ready to vote for a lift off. the federal reserve governor is prepared to raise interest rates twice this year. once in september and once in december as long as the economy performs as expected. the yield has now eased off the mark: the fed is looking to tighten while the rest of the world is easing. two rate hikes could potentially happen in the u.s. this year? >> potentially, yes. there will be one rate hike starting in september and afterwards the fed will probably take it slow but i'm fairly convinced the fed wants to get over with the first rate hike. we have been talking about it

for so long. there's so much volatility about it. simply get over with it. remember the taper tantrum, the feel of asset purchase reductions. very pronounced before the fed started it when they actually did their first tapering markets were much calmer. so unless the u.s. data were to give us a very very clear reason for the fed to stay on hold that is very little growth in the second quarter unless that growth will happen the fed will announce in late july that they will raise rates in september. >> is the term lift off a fair word to be using? it applies a rocket-like trajectory upwards when clearly that first one is going to be minute. do you think markets will take it in their stride easily? >> they will. they will probably be fairly happy after it happens. especially if the fed then suggests the second rate hike

will take it wide and i don't like the word lift off. it doesn't describe the trajectory that the fed rates will probably have over the next two years. >> let's just touch on the euro dollar because this week we have seen the euro fall quite sharply. particularly yesterday even though sentiment in greece has been improving. do you think that's because as greece sentiment improves a fed rate hike is more likely? >> yes, the fed is the bigger mover of euro dollar than greece at the moment. greece makes for a lot of the short-term volatility but the bigger trends are actually the fed, the u.s. economy with some euro rebound weakness and now the dollar going up again with fed rate hike expectations for september. so it is more a fed story than a greek story in currency markets for now. >> we have been talking about this a lot but the resilience of the euro has that surprised you? >> no it hasn't really

surprised me very much. that looked like what should have happened. >> just a touch on sterling as well. we mentioned martin wheel starting to be a little bit more hawkish again. of course we've had 0-9 in terms of voting for quite sometime now. do you think the u.k. might raise rates as quickly as the u.s. or will mark carney at least wait until the u.s. has gone first? >> first the u.k. will wait until the u.s. has gone first and see what happens there and secondly i expect britain to raise rates in february. we have said that for quite awhile. and also britain is a bit closer to the euro zone which means they probably watch it a bit more closely what happens with greece. there is some fear of contagion over here. i think mark carney will want to play it safe and wait for a little longer than the fed before he starts the process. >> sterling rally against the u.s. dollar a bit overdone in recent weeks and months? >> it's a bit overdone yes.

>> thank you for joining us. much appreciated. chief economist. now a great play by a fan last night at wrigley field. gonzalez comes over to make the play but a fan reaches out and catches the ball bear handed. pretty epic. all while holding his baby in the other harm. >> that's incredible. >> i'm sure you can do that. i'm not sure if i'd be in that exact situation but perhaps. the fan got a standing ovation but they did call the batter out for the fan interference but he wasn't thrown out of the game. >> can you imagine that being baby and being able to reference this sid owe and saying look how cool my dad is. he caught a baseball while holding me. that could have been bad if the baseball hit the kid. kudos to that dad. i want to point your attention to flashes coming out from reuters according to a source from a french diplomatic source.

the u.s. ambassador to france has been summoned to the french foreign ministry over wikileaks revelations of u.s. spying. we'll keep you up to date and go live to paris with more once we get it. that's coming up after this short break.

>> a deal with creditors will be sealed at tomorrow's eu summit but reports suggest the prime minister could face a backlash over the terms of the bailout package. >> european markets giving up early gains. weighing on the french index as hopes for consolidation in the sector were dashed with rejection of altice's offer. >> it's a supermarket sweep. european groups agree to a $29 billion merger creating one of the largest grocery operators in the u.s. >> the u.s. spied on the french president calling an emergency meeting on the matter.

>> welcome back. the ecb keeping the ela unchanged for greece today saying depoz silt outflows stabilize. also we had the greek central bank reports that they did not request additional ela loans for wednesday. thus being kept on hold as you can see. euro dollar up about 0.4% today. 11216. >> data out of the u.k. for the month of may. mortgage approvals rising to the highest level since march of 2014. mortgage approvals in britain raising in may to the highest level since march of last year. it rose to 42,530 up around 4% compared with a year ago. there you go. a look atmore gaj approvals and the health of the housing market. sterling up about 0.4% on the

u.s. dollar. >> now the u.s. ambassador to france has been summoned to the french foreign ministry over the wikileaks spying allegations. the french president held an emergency cabinet meeting earlier to discuss claims the nsa spied on the current president and two of his predecessors. the white house denied the allegations. let's get to se fan live in paris with the latest. >> reports from u.s. spying are unacceptable say this morning the french president in a statement they say france will not tolerate any action that threatens it's security and the protection of its interests. >> the comments came after a meeting. speaking early kwer to a french newschannel he referred to the spokesman of the french government asked what could justify a country to spy on its

allies in the world on position and strategic choices which we are often defending together plenty of reactions but not a lot of surprise on the french side according to the french foreign ministry. french authorities knew for a long time that the u.s. hah h the capacity even if in theory members of the government are requested to use special terminals made by the french defense for their sensitive conversations the former president wanted to resume talk with the united states. still according to this report he called a secret meeting of the cabinet about a potential greek exit from the euro zone as early as 2012 and the documents say that he was disappointed by his first meeting with angela merkel when he was elected french president.

so nothing really crucial but it's a matter of principle on the french side. what's interesting also is the timing because it comes as the national assembly in france today will vote on the new intelligence bill which will give secret services more power to monitor conversation and to give protection of the territory and even if we're expecting the national assembly to grow in favor of the bill today there's growing opportunity in france and question mark about this bill that could jeopardize freedom. >> thank you very much. now japan's second largest general trading company is stepping away from its costly venture into the gas business. she has the story live from tokyo tokyo. >> thank you. the nikkei 225 reached it's

highest level in 18.5 years today. a notable star was the japanese trading house which saw the stock reach a historic high. it has walked away from the gas development business in the u.s. they owned a 25% stake in the distressed energy company samsung resources. back in november 2011 they joined joined them to buy it for $7.8 billion. it is now selling all of this off for just $1. as for the company's financial report it seems there's no concerns as they had already written down the entire stake in samson over the past few years. some say they're stepping away from the volatile energy business. while decreased risks allow them to better focus on other businesses. so far they're the only major

japanese trading house to exit the business. but others may follow. but both mitsubishi and others will continue. that's all. back to you wilfred. >> thank you. a local council is debating whether to allow them to explore two sights. it will be the first time exploratory fracking has taken place in the u.k. following tremors in 2011. hi catherine. >> hey seema. how are you doing? this could be a key decision for the potential development in the u.k. and that's something that the government made a turn toward being much more in favor of. you have figures suggesting this could lead to 64,000 new jobs being created and of course

potentially more energy independence for the u.k. but on the other hand you have a lot of protests from locals and also national and international groups who are really sort of worried about the potential environmental effects of this which have been highlighted by the tremors a few years ago. >> very interesting story. love to see how they compete with the u.s. >> it could be a mover over here. >> yeah. absolutely. thank you so much. now i want to draw your attention to one of the top movers in europe and that's german utilities. this amid reports that angela merkel's government will scrap a tax hike on power plants. the capacity of larger plants like those owned by the utility company will be transferred into a reserve facility and the businesses will be compensated accordingly. the german economy minister is due to deliver a statement but you can see the big movers in today's trade are in the utility space. let's bring in henry dixon.

a pleasure to have you on the show. help us understand where are you finding opportunity in this market? >> yeah absolutely. overall it's right to be reasonably cautious. just approaching the half year i think what we have seen this year is earnings have fallen 11% year to date relative to where we thought they might be on january 1. absolute value hasn't been a feature of any marktd for years now but there was an abundance of relative value but i think when we see the first bump in the road that we've seen in the bond market it's right to sit up and take note and i do say as i say we saw the emergence of something that we'll look back at years and years and years from now as the most absurd thing. that will be judged more harshly than the tech boom in 2000. all of these things. so i think you have to ask yourself what can you find that is the absolute opposite of a negative yielding bond and for us the shortest duration assets

we can possibly find. we'd go for deposit led banks and nonlife insurance and huge net backing. all of those areas are cheap and should do well under the scenario that rates start to creep up and i think the rate debate moved on from if to when and it's just now a when. i would encourage investors to get in early and it will do very well in a rate rise. >> but it sounds like still what you're saying is the only thing worth investing in is things that are relatively attractive as opposed to absolutely attractive. >> no, i think the relative attraction of equities was there in abundance so i think you have to look past and on our work it would be about 78% of the u.k. market looks expensive. so you have to concentrate on that 22% and for us it's made up of shares very very cheap headline. royal bank of scottland, these types of shares 10 to 11 times.

those are cheap shares absolute. forget the relative argument and what they'll do is do incredibly well if rates start to creep up. so they have five times their market cap in short-term investments yielding them next to nothing. you don't need much of a move in rates and five times that market cap isn't earning them nothing but it's earning them something. i still think we can find absolute value but clearly absolute value is relative to the wider market which is undeniably expense. >> how would you characterize risk appetite among investors as we watch this greek drama play out? if you like an indication of where people are or where they want to be. overwhelmingly i would say the mood is one of complacency and

we would always try to rebel against that and really ask yourself some very tough questions right here right now. do you have some that have gone up year over year. you have to ask yourself tough questions. >> you mentioned rbs. would you be buying into this? >> absolutely. they look to be two years behind where lloyds is. it's .9 of value. so small numbers. if it can make that path from .9 you're making the best part of 79% on a two year view and our guess is a classic short-term interest rate play here. if you are the average individual being paid about 30,000 pounds a year you cost rbs money because you get your paycheck at the start of the month and run it down to zero and don't have a loan. they cannot make any money and

all we need is interest rates to creep up a little bit and suddenly their whole deposit base owns the money. a short duration asset that exists in the ftse that is very cheap. i think rbs is a very interesting place to look. >> is that krour top pick of theyour top pick? >> yeah, they have done well as well but we look cautious about long-term. we welcome everything they're doing. they are determined to hook like lloyds two years from now and i would encourage you to think they might be valued like that in two years time and that's a very very reasonable return. >> thank you for joining us. fund manager at glg. now gymnasts and local kids have gathered in indiana to rise up to a tall challenge. they tried to set a world record for the most people doing a hand stand for one minute. i couldn't do it for a second. it's still unclear if the record was broken but a thousand people

participated in the event overall. >> how's your hand stand capabilities wilfred? >> 0.01%. >> i'm sure you're better than that. mine pretty excellent. >> we'll practice in the break and decide whether to bring it out live afterwards. >> absolutely. check your twitter. living a life of luxury as men's fashion week rolls from milan to paris. which designer stocks are poised to steal the limelight. stay tuned.

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welcome back. if you ever wished you could take back what you said in an e-mail, there's hope. unsend. it delays sending an e-mail up to 30 seconds in case you have second thoughts. it's now an official setting. it's only available on the web version of g-mail. this is great. i've been in many different situations where i hit the send button too soon and then you realize i should have taken a second look at that. >> have to say i welcome this with open arms. i have a couple of complete car crashes in my time.

>> no. come on. >> not so much on e-mail but text and because you're thinking about them you send it to them as well and as it goes you're desperately trying to get it back and it's too late. i've sent messages to people about them. terrible. probably being really loose and perhaps being rude about the person. it's terrible. >> thankfully i don't get any of those text messages to you. so you're not talking about me too much. >> no. so it works well. >> this is great for e-mail. particularly work e-mails and things like that. often today we're so quit to try to hit reply and more often the issue is a little typo or whatever. so i think this is a good development. i'm going to definitely check it out. >> let's see what happens. we want to hear from you on this. what's your biggest tech regret? join the conversation on worldwide exchange. e-mail us worldwide or via

twitter @cnbcwex. let us know when you made a little mistake or -- >> snafu. >> get in touch with us. >> the biggest names in fashion are hitting the cat walks as men's fashion week heads to paris straight after the milan debut. the ceo spoke about the challenges of navigating a volatile market on the sidelines of the milan show. >> we get used to very volatile market. more in terms of geo political than economics. so the economics are growing in europe and even japan, china, every major market is growing in terms of gdp. the geo political pressure still keeps some concerns about the short-term but in general, i

think for the luxury market and for the made in italy market that would specify in this moment for companies producing and manufacturing everything in italy, the weak euro is an opportunity and i hope is is going to last for awhile. >> what about the luxury in fashion brands at least in the market. >> the market has always been positive in the past years with up and downs but generally with a positive trend. it's still confident because there's the potential of market expansion which is second to none. in fact you still have regions of the world like south america, australia, asia like indonesia or india with great potential and you have a perimeter that's always increasing. >> so the stock market is supporting in a way the luxury brand? >> the stock market gives

visibility. awareness. this is extremely important because brands are built to communication. last night i was just watching the news and some of the luxury bands between us were mentioned and then this means that they are still on top of the mind. it's a pleasure to buy not only a pair of shoes but maybe some shares. >> joining us now is the senior research analyst. thank you for joining us. >> good morning. >> i wanted to kick off in term of the luxury stocks on a topic that the ceo was touching on there in the weaker euro we've seen over the last six months or so. on the face of it should be an opportunity but does it create pricing issues on how they keep the prices the same in different markets. >> for sure. the weak euro is a great opportunity for these companies

because the cost base of the companies is 60 or 70% in euro based and they're different from the euros that somehow pack to the u.s. dollars. so it's a great gift for this company but creates an imbalance of the global pricing of these companies. now with with the average price difference between china and europe is at a maximum in the last three years. it's about 40% so quite high indeed and it creates the opportunity of the greek market or shift of consumption out of asia and into europe. so the brands are reacting in two ways. in one way is to try to decrease the prices in asia but this isn't somehow damaging the brand and decreasing the prices in europe. the other brands are simply increased

increased. probably they were not satisfied of their result of the brand and you have seen in the last quarter that the gucci brand grows but now they have got a new creative designer. for sure it will need some times to be a success. so we expect that for this year gucci will be in quite the difficult water and let's hope -- i'm italian, which is the biggest italian brand will find it's way going forward for 2015. it will be a year of transition with pressure on both revenues and margins. >> let's talk about china in general. how much impact is that having on the luxury retailers? it will been a huge area of their growth in recent years. >> so the day of china are over but it's the biggest engine of growth for the market. if you think nowadays at the end of 201429% of the global consumption of rux ri goods were

driven by chinese nations. according to the latest estimate at the end of the euro the percentage will grow up to over 30%. so what does it mean? the chinese consumer will continue to outgrow the market. this is a bit different in comparison to the past because if we look at early 2000, chinese consumers were just 2% over the global span of luxury. going forward we expect it to increase. >> which luxury brands are doing a good job of marketing their products to that audience? >> luxury brands now is impossible to ignore digital. it's an incredible power tool for marketing and commercialization and for this segment burr berry was one of the front runners. they were catching golf. she's investing a lot in these

effects. >> thank you for joining us here on worldwide exchange. >> thank you. >> quite the ceo is revealing the successor to the 159 later today. he is expected to talk about a possible merger with gm at the event in milan. this comes as mary bara unveils the 2016 chevy cruise at 7:00 p.m. eastern time. let's get out to claudia who joins us with more from milan. >> yes, good morning, all eyes will be on this presentation. it's just to hear what he has to say about his plans to move forward on a potential takeover from general motors. but of course eyes will also be on this new model. will it be enough to help fiat reach it's objective in terms of production and sales of alpha. those are 400,000 by 2018.

it's one of the models that will be presented by that year. there's been a lot of mystery around this model. the name of the model but we will get more information this afternoon but as we know whenever he speaks everyone is really ready to listen because he is about reaching these objectives and putting fiat in a place of long-term sustain blt. that does involve a merger to produce what he has planned. as far as the market is concerned fiat had a run so far. this year up 46% verses the italian index up 24%. it's first quarter numbers were strong with a profit of 92 million euros versus the loss in the same quarter of the year before and an eye also on what would be -- what they would be buying up. well of course gm has a market cap of 56 billion euros versus the one third of market cap. so an interesting move if he can pull it off.

back to you for now. >> claudia. >> meanwhile, a very modern way causing some confusion for those not versed in the language of emojis. a full press release used the images popular but thankfully chevy later provided a full transition. is that another sign that the popularity of emojis could mean the death of the written language? it's a controversial one. >> it is and well worth a read. >> also still to come on the show, ford joins the sharing economy. we hear from the ceo on how he sees the business model evolving from away from owning or leasing a vehicle. we're back in two.

>> welcome to the second hour of worldwide exchange. >> let's get you some headlines. >> we'll start with markets. greece's economy minister insists a deal with creditors will be sealed at tomorrow's eu summit but reports suggest the prime minister could face a backlash from party members over the terms of the bailout package. >> the green back takes a breather after hawkish comments sends the dollar index to a one week high. >> getting on board the sharing economy. the auto maker launching an auto

leasing pilot program in six u.s. cities marking a major milestone for the industry. >> unacceptable. the u.s. ambassadors of france summoned amid claims that the nsa spied on three of the country's creditors. >> jurors poen stocks lower. i wonder if that will translate as well. >> no deal announced yet although all the headlines making it likely that we'll hear it from the summit tomorrow but the big question is really whether people like that deal but a deal is better than no deal but i don't think it solves any long-term problems and in the medium term greece has to go through it's own parliament. >> imagine if the negotiations taking place right now were under the ruling of ari gold on

entourage how things will be so different. >> do think any of them are anything like him? >> i don't think they are. when he came to the table he spoke so much about it that we thought he might be a bit like that but he's not at all and he has thrown away his initial negotiating power it's more about the talks between european leaders. typically very vocal during these times. >> as we have come to crunch point the finance ministers have done their bit and it comes down to the leaders. we've always known the likes of the crucial power brokers here. not the head of the eu commission or imf. it's basically can they iron things out which it seems like they'll do tomorrow but markets

probably pricing in too much volatility. >> i would also say those are the two front players. we're halfway through the week and the focus has been on greece. no deal yet but judging by the reaction of equity markets greece is expected to come together with european creditors by the end of this week the telecom industry one of the worst there. the german markets holding on to 11,500. lackluster data is weighing on

investor sentiment. the index down about 40 points. this after two big days of gains for german index. lastly, the ftse 100 the relative out performer. maybe that has to do with the data out half an hour ago. the index holding on to 33 points. i really enjoyed his comments overnight where he said boe should raise rates in august which would mean the u.k. would be raising rates before the u.s. >> he's the hawkish member of the group. let's have a quick look at bond markets. only a quick one though just to point out. the moves we have seen in general this week which is an improvement of the yields. the likes of greece at 10.5 rather than above 12 and a little bit of a sell off on german yields as the safe haven profit taking nothing too major. 0.86%. a little more interesting because we've seen a risk on

trade and the euro sold off quite sharply yesterday. around about three quarters of a percent but it's bouncing back today up half a percent. let's get to sri with an update on markets in asia which are looking very green, are they not? >> strong session midweek and the markets are banking on a speedy resolution. one wonders if they fail to sign off on this if there is a summer of discontent let's talk about the 225. that was a strong length today. 18 year highs for the share average. yes the weaker yen is benefitting the japanese corporates. yes the boj's in the market as well as is japan's biggest pension fund but that's all suring up confidence.

21,000 is within shouting distance right now in this market but i've got to say there's still some pieces of the puzzle that are missing including a return on equity and capital standing. we'll get an indication of what they will be looking at. shanghai composite very strong day and it looks as though after that 13% it's getting back in there and scooping up some of these stocks. there we stand. back to you. >> for now, thank you so much. let's get you a run down of what to watch this trading day in the u.s. the third and final estimate on first quarter gdp is due at 8:30 a.m. eastern. it's forecasted to have contracted by 0.2% versus the previous estimate of 0.7% as the impact of winter weather and the west coast port strike may not

have been as bad as feared. they report results before the opening bell and bed, bath and beyond is out after the close. let's talk more about it with steve wood. >> what brings you? >> great, wonderful. the market was transfixed on what the fed governor had to say about the opportunity or the expectation of the fed rate rise this year. if we're expecting it in 2015 how would you position yourself in the markets? more exposure to the large caps or small caps? >> right now valuations may be more of a concern to the rate hike environment. if i can go one step back on that question i think that the federal reserve is institutionally committed to being positive. they tapered and ended their balance sheet last october. i think they want to be positive and will probably be 25 to 50

basis points in september but what becomes even more interest as good the future path of rate hikes but in this environment right now, i don't know that the initial fed rate hike and the next 6 to 12 months will be that damaging we have been overweight europe for awhile and it's more of a valuation story now than interest rate story. >> go ahead. >> within the u.s. then if you're underweight because of valuations which sectors in particular are looking the most expensive? >> within the united states we want to look at a little bit more in quality space. so health care looks to be something that's been able to defend it's earnings. it's a maturing earnings cycle. some areas are financials that will benefit from a raising rate environment. looks to be places where we want to go. tech is more hit and miss. a little more miss than hit in the current environment in the united states right now and areas that have gotten very very

expensive, the bond analogs, you know, con seweller staples, utilities are something we have been underweight for awhile. >> what's your thoughts on the banks? the s&p financial etf hits new highs on the prospect of rising rates and how that's good and positive for the banking sector but is this becoming some what of a value trap? because we haven't seen a significant improvement in lending in the u.s. we still haven't seen the fed rate rise. >> so i think it becomes more of a case by case basis. it's more of an active management environment and, again, valuations becoming one of the larger concerns that we've got so we're taking a global multiasset perspective and looking within the united states but as we take that exposure down looking elsewhere our highest conviction is europe as i mentioned earlier. i was in japan last week. that would be another higher conviction equity space call we have in our portfolios.

stick with us here on worldwide exchange. let's take a look at the other top stories at this hour. ford is getting into the car sharing business. the auto maker is launching a pilot program in six cities including san francisco, chicago and the u.k. form is teaming up with ride share apps get around in the u.s. and easy car in the u.k. customers who finance their cars through ford motor credit can make it available for rent to people that have been prescreened. ford, take a look at how shares are trading just down about .5% in frankfurt. >> i don't have a car but if i did i don't think i would like the idea of a stranger driving it. what if they make your seats smell. >> there's an opportunity this but not with my car for sure.

they emerge with belgium rival and on the terms of the deal shareholders will own 61% of the company's equity with the shareholders owning the remaining percent. reacting well to the news off some 4%. >> another m&a story, cisco's deal to buy them may have been stopped in it's racked. they are granting a request by the federal trade commission. the regulator has been seeking to block the merger which would combine the two biggest u.s. food distributors. they have not said whether it would appeal. they did fall about 2% in after hours trade and if we have the board, let's bring it up and show you how they're performing down 1.8% in frankfurt. >> still to come here on worldwide exchange investors are holding out hope for a greek debt resolution by tomorrow. we'll bring you the latest live

from athens after this short break. ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.

tnchts greek economy minister says he's confident that a deal will be struck at the eu leaders summit tomorrow. speaking to local television he added that any agreement must be passed by parliament as soon as possible. however reports suggest that the prime minister could face a tough time getting some lawmakers to support a new bailout package. meanwhile, a lawmaker in the junior coalition has also said it cannot support a deal which does not include debt relief. let's get out to steve who is live in athens speaking to various individuals about the progress in this potential deal coming together. maybe by the end of the week,

steve? >> maybe we'll get frame work agreement but there are traps, absolutely left right, and center and i mean that in the political spectrum as well. obviously they're in brussels and even if he gets a deal in brussels and has to sell it back here as well. the more he goes toward a deal and the demands for the creditors the more he loses his support on the left inside and outside of politics and has to rely more on right wing parties. parties that absolutely dislike this. they hate the formation of it. they don't even like the prime minister himself. i spoke to a right wing mp. he doesn't like the deal. now listening to what he says about what he doesn't like about the deal and whether he would actually vote for it as well. >> the proposal is coming from the greek sides is heavy taxization and what the government is doing is

exchanging structural reforms in the labor markets and privatizations and they change against private companies and private income. which will be the sole power we have in order to create jobs and growth which is the solution. it's the wrong plan. it's a left mou so yeah no we are completely negative but if we arrive at the point where no alternative is given, you know the prime minister decides that it needs to have some votes and that's the only solution we're not going to leave it. >> this time yesterday i was speaking to the mp and he said that if they go more toward the center and agree with the imf it could be suicide in the polls as well. there was a trap laid there. he said if he asks for our permission or asks for new democracy to come on board as well and they would extract their pound of flesh in terms of

what they want to see that would alienate him even further. possibly from his own finance minister personally from the left of his party and as we heard earlier from his allies as well. so to the right, to the center to the creditors, to the imf, the more problems he'll have. this is going to be an amazing few days in terms of greek politics. they were trapped everywhere to the government. back to you. >> keep dodging. thank you very much as ever. steve, still lots of problems particularly domestically of course. but presumably for greece and markets a deal is better than no deal. >> i would think, i mean that's a high wire act they're trying to pull in greece. parliamentary democracy is always an interesting situation but i think from a global investment perspective if there is an issue with greece i think

the markets are fearing that there could be like this lehman effect but i don't know if that's the most likely scenario. but base case scenario greece finds a way to stay politically into the euro zone but in the market we saw around lehman in 2008 and 2009 don't seem to be there. they weren't there for spain or portugal. we didn't even see them for cyprus right now. it would be better if they stayed in. the difference is the exposure and the amount and to whom they owe the money is much better known than several years ago. it is a different situation but base case scenario they find a way out of this. >> has the greek situation, though, made your discussions, the way you facilitate discussions with clients increasingly difficult? because of greece you've been seeing a lot of volatility in the equity and bond market. >> yeah and i think the greek drama eclipses the fundamentals. when we look at the geo political events we say does it effect credit markets? greece could.

does it effect energy markets? but i think right now i'm going to focus on janet yellen. >> fed policy. fed policy. i'm going to listen to what dr. yellen says what mario draghi says. this is a central banker's world. so i think we need to focus on what draghi and yellen are doing and that rate policy i think is really going to be the determinant for investors. >> what outside events given that greece isn't too big of a concern, what outside event is your big concern for markets at the moment? >> if the federal reserve were to go off the rails in terms of policy. if they were to hike too aggressively too soon, that could be very problematic. we don't see that happening. that's not a base case scenario but some really unanticipated hawkish spike in rates that we don't see happening. the united states gross probably in the low 2% toward the end of the year. we're probably getting inflation

pushing up to 2%. >> when does that happen? >> i think probably by the end of this year. in the next year you get that 1.7, 1.8, 1.9 core inflation number so the fed is seeing that they can go back to the beginning stages of a normore normal rate environment. that said it had been very low for the foreseeable future. that will be a global situation. >> fed policy that's where we should take our queues. thank you for joining us. have a great time in london. still to come on the show listening innen on the palace. the french government seeks answers as the u.s. denies spying clams. we cross live to paris for reaction on the ground after this break.

aç the u.s. ambassador to france is summoned to the french foreign ministry after claims the nsa spied on the current president and two predecessors. the white house denied the allegations. stefan has the latest for us live from paris. >> reports on u.s. spying are unacceptable. in a statement the palace says that france will not tolerate actions that threaten the security and the protection of

its interests. these comments came after they discuss the implications of the wiki leaks report. speaking earlier to a french newschannel the spokesman of the french government asked what could justify a country to spy on its allies and reports were unsuccess unsuccessful still this report is not a surprise in france according to the former foreign minister. they knew they had the compass toy intercept conversations with the french government if they're requested to use special secure terminals for their phone conversations. they're made by the french

defense group. over to you. >> thank you. moving on did you ever wish you could take back what you said in an e-mail? there's rope. gmail is rolling out a new feature delay send. google has been testing the feature since 2009 but it's now an official setting. for now it's only available on the web version of gmail. >> i love this. it's a great idea. i'm slightly confused that they have been testing it since 2009. i don't understand why it's taken so long to roll out but it's very helpful little tool that you can use. particularly we talked about some other mistakes we might have made before but when you hit reply all by mistake rather than reply. >> especially when the e-mail was meant just for the eyes of your boss and here you are including a larger group into the conversation. >> this can help. we have been asking you throughout the show what is your biggest tech regret? if you want to join the

conversation get in touch with us via e-mail @worldwide. >> and a look at how futures are trading on this wednesday morning. how are investors positioning themselves? right now a mixed day of trade at least in premarket. dow down about 11 points. nasdaq higher after hitting a new record high in yesterday's trade. of course focused on greece. no deal yet but hope is building. that's something that will emerge over the next couple of days. worldwide exchange, we're back in two minutes. ng things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us.

>> greece's economy minister insists a deal with creditors will be sealed at tomorrow's eu summit but prime minister could face a backlash from party members over the terms of the bailout package. >> the green back takes a breather off hawkish comments sends the dollar index to a one week high. >> the auto maker launches a pilot flat form in six u.s. cities marking a major milestone for the industry. >> a change of guard at boeing as they replace the ceo.

>> markets moving higher in yesterday's trade. a lot having to do with a greek deal emerging but by this point we're halfway through the week and still no deal but at this point the market is convinced that a greek commit bb avoided. nasdaq did hit a new high up about half a point take a look at european markets. one eye is on the state of negotiations taking place between greek leaders and international creditors. some experts are saying we could see a deal merge tomorrow. in the meantime we did have some lackluster economic data come out here on the other side of the atlantic. we looking at the xetra dax lower by 23 points. this is after two big days -- a big rally in german stocks over the past two days. here on wednesday we're slightly

lower by 23 points. the ftse 100 up 33 points and if you take a step back you'll see that it's the relative outperformer when looking at european equities. that might have to do with better than expected economic data in the u.k. on mortgage approvals. back over to you. >> thank you now ford is jumping into the car sharing business. the aweuto maker is launching a pilot program. here in the u.k. ford is teaming up with easy car. the program will allow customers that finance their vehicles to rent out their car, suv or truck. joining us now on the phone from detroit is phil with all the details. phil. >> this is the first major auto maker to really jump into the car share business to say let's try to see if we can develop a program here that is more than just a token announcement.

so what you're going to see from ford is the beginning of a car share program that initially will be at six u.s. cities as well as a separate program in london as well and the whole idea here is to try to win over customers in urban environments who have made it very clear, they want access to a vehicle but they don't want to own a vehicle and ford believes that the card share business is just beginning and statistics back that up if you look at how many people are members of card share programs worldwide it's just under 5 million right now. that's expected to skyrocket to 26 million by 2020. ford believes this is the beginning of a trend that we're going to see more and more of people that want access to a car through a card share program but they don't want to own a car and they believe ford owners can do

this using their ford motor credit account where they will rent out their vehicle. they will choose the rate that will be charged and then when their vehicle southern land parked when they're at work or when they're not using it they will be able to rent their vehicle out for an hour or two hours or however long they deem they want to let somebody else drive their car. >> another story in the auto space, fiat chrysler ceo revealing the successor to the 159 later today. he's likely to talk about a possible merger with gm at the event in milan. this as mary bara unveils the 2016 chevy cruise at 7:00 p.m. eastern with a possible fiat chrysler merger in focus. are we going to get a deal? >> we will not. this is a one decided discussion going on right now where they believe there needs to be consolidation. he believes the best fit right

now for chrysler would be a merger with general motors. general motors does not believe that. mary bara and her team are focused on putting their plan in place which is continuing to drive efficiency through general motors. they do not want to take on both the debt and the complexity that would be involved in a merger with fiat chrysler. this is a one sided discussion. >> thank you for getting up early with us here on worldwide exchange. meanwhile, a very modern way causing some confusion for those not versed in the language of emojis. it used the images popular in messaging apps but thankfully chevy later provided these full translations translations. this is what is bad with emojis. it's hard to figure out what the

person is trying to communicate. you get a text message and there's a bunch of emojis and you don't understand what the person you're communicating with is trying to say. >> sure but that was an extreme example. they were playing a bit of a game. >> for me overall with emojis i get really annoyed in text messaging if people made spelling mistakes so i shouldn't like emojis but i think they're separate. it's like sending a photo. i wouldn't want a whole press release or message depicted but at the end it adds amusement and light heartedness without having to break trends. >> well overtime people will replace the written language with emojis because they're lazy and they'll say i'll represent what i'm trying to say and that is something to be concerned about

about. >> we might be 0.1% of the way down there. >> we'll see what happens. is the chevy release another sign that the popularity could mean the death of the written language? you can head online to read my full take on that story. >> now the nfl franchise is teaming up to take a controlling stake in formula one. according to the sc. they want to buy 35.5% of the holding company that owns f-1. the reports say any deal would see him sell his holding by 5%. >> gonzalez comes over to make the play but a fan reaches out and catches the ball bare hand all while holding his precious baby in the other arm. talk about a fantastic catch.

the fan got a standing ovation. there was no comment from the baby. >> that was epic. >> pretty amazing. >> the baby a behaved one. >> imagine when that kid grows up and he can look back at that and say look at my dad. >> yeah. >> he hascoordination. >> let's move on and look at today's other top stories. shares are in the green shareholders will own 61% of the company's equity with shareholders owning the remaining 35%. there's a top ten global retailer. price action much for. >> cisco's deal to buy u.s. foods may have been stopped in it's tracks. the judge may have halted a deal for further review granting a request by the federal trade commission. the regulator has been seeking

to block the merger which could combine the two biggest u.s. food distributors. cisco has not said whether it will appeal. it is down about 1.8% in frairng frankfurt. >> still to come, changing of the guard at boeing. we'll hear from the in coming and outgoing ceos and the challenges facing the company. that's coming up next. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working

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breaking news on the unfolding greek saga. the greek pm said it may be because they do not want a deal. the greek officials saying they told associates measures were not accepted by the creditors. a sharp sell off in european equity markets in the last couple of minutes off the back of this. germany now off over 1%. france off 0.9% and athens down 0.4%. if you look at bond yields as well we have seen german bond

buying. we're at 0.81 on the yield on the german bond. so the latest flashes seem to be negative out of greece. >> we should point out that so far what greece has proposed really consists on taxes. an increase in the corporate tax rate from 23% by the end of 2015. a lot of work is still to be done when it comes to the proposals that the greek government is making. so clearly this is not good in terms of a deal coming together by the end of the week as many leaders had been forecasting or predicting. >> if we have a quick look at the stoxx 600 this comes off the back of very strong european equities on monday and strong again on tuesday and today we open positive and we're hovering around flat for the rest of the day until the last couple of minutes where we have a 0.6% decline of the broader stoxx

600. >> it's in the bond market as well. i want to point out the periferal debt market. ten year yields rising in spain and italy as well as in portugal. of course the big fear here has been the greek contagion if a deal does not come together if greece would then default on its loan to the imf and if that would result in greece exiting the euro and, if that again would result in a domino effect. other countries following the lead of greece. yields right now elevated across the periferal region. >> we'll get the latest from the ground in athens in about five minutes time. back to corporate news. boeing is making changes in the front office replacing it's ceo with a long time company insider. let's get out to landon. she has all the details from cnbc hq. >> good morning. the ceo will step down handing over the reigns. he will give up the position on july 1st. he will remain as chairman and stay on as an employee until he

retires in february. in order to smooth the transition boeing celebrates it's centennial next year. he joined in 1981 as an intern and ran the company's defense and space business. he has been seen as the successor since being promoted in 2013 but the news came a bit sooner than expected. both men spoke to cnbc fast money saying there won't be any major shifts in strategy. >> it's a little bit of a generational shift. in a month or so i'll be 66: he is 51. this is a very long cycle business where living with your decisions is important. >> we are well positioned as we head into our second century as a company ramping up our commercial airplane business growing our defense business international internationally and we're investing in productive and

innovation for the future. >> boeing stock more than doubled during his ten year as it regained it's crown by the number of aircraft deliveries. shares are up 11% this year. it's over the high cost of producing the 787 dream liner jet. it loses about $30 million for each dream liner it delivers each month. it will also include ramping up production of the 737 jet and revamping the popular 777. he's also be pressured to build a new long range strike bomber. back to you. >> before we go to break let's remind you of the headlines. greece's creditors reportedly rejected athen's latest proposal in a return for a bailout deal. european markets selling off off the back of that. ford is getting into the car sharing business with a pilot plan in six cities and france

calls in the u.s. ambassador over claims that the nsa spied on three french presidents. we're back in two minutes. you know i tried one of those bargain paper towels. but i had to use so many sheets per spill the roll just disappeared. i knew i should've bought bounty. bounty is 2x more absorbent and strong when wet. just look how much longer bounty lasts versus one of those bargain brand towels. and that's a good deal. bounty. the long lasting quicker picker-upper.

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welcome back. let's have a quick look at european markets which sold off in the last ten minutes off of a flash saying that the greek prime minister told associates pressures weren't accepted by creditors and that may be because they do not want to deal or because they're catering to specific interests in greece regardless of the reason it lead to markets selling off quite sharly. let's have a quick look at european yields as well which have risen slightly -- we've seen ten year bond buying in germany seeing yields fall from 0.88 to 0.83. >> keeping an eye on the debt market. ten year spanish yields at 2.1%

now earnings in focus. they're due to report earnings before the opening bell with earnings and revenues forecasted from last year. it come ace day after they rejected the $45 billion take over but according to the wall street journal the ceo called the takeover attempt a long game. investors will be keeping an eye on any comments on the global protest surrounding the top selling weed killer round up. let's talk more. christopher couch, senior equity research analyst at bbnt capital markets joining us here. the focus has been on this deal. do you think at the end of the day it goes through? >> clearly that is the focus of investors. when they report their earnings later today i think it will be a mixed bag but ultimately chances

are on this getting through. they're reaching out to their shareholders and they're determined to make this happen. right now they have kept them at arms length but ultimately this is what has become a very public negotiation. at some point they'll figure out a way to have an engagement and ultimately i do think it's a good possibility this deal will happen. >> let's talk about the specific earnings that we're going to get today. you just mentioned the tough agriculture backdrop at the moment. will the earnings disappoint? so with commodity prices low and where they are farmers are struggling to make money. they thrifting on input including crop chemicals and they're not immune.

that said they have ways to offset that weakness. they have been gaining share consistently over the years. this will be another year they gain market share. they're able to offset the core fundamental weakness with increasing the penetration of their next generation traits and they can also do belt tightening and t the end of the day i think they'll figure out a way to maintain their earnings guidance expectations. another thing to keep in mind is as they're very determined to make this happen they're going to be paying for it if it happens partly through stock. so it behooves them so you know do what they can to keep expectations where they are to prop up the stock price. that's part of the currency they'll be using to acquire

syngenta. >> much appreciated. senior equity research analyst. let's start by recapping all the details for you. the latest flashes is that the greek prime minister said that the stance was that they had not accepted the deal that greece proposed to creditors. they're saying that the stance held by the kred tors maycreditors may be because they don't want to deal or they're catering to them. we've seen it sell off to 0.4%. >> i want to get out to steve live in athens with more on the story and of course the market has certainly been convinced this week that a deal will emerge sometime perhaps by the end of the week but the comments that we're getting from greek leaders pooring cold water on that theory. >> yeah look we're going to get a lot of noise.

i want the markets to start doing yoga to take a calmer stance on the whole thing. this is called negotiating. this is called getting what you want and we're going to get it from both sides. the germans and the creditors and the imf and certainly get it various parties and broadly the greek establishment. everyone has bargaining chip as well. so for the markets to have gone like this about the deal is quite ridiculous. it could be a deal but getting it through is going to be very very tough. >> most of what greece has proposed so far has been around taxes. 12% heavy on business profits. raising the tax rate from 26% to 29% by the end of 2016. what is the main point of contention? does it all come down to the early retirement scheme? >> no there's contention everywhere but the point you make is a good point. the imf doesn't like it and a lot of the parties here in greece don't like it as well

because they turn around the center and the right and said hang on a second. you want to grow in economy. you have said this is a growth package for greece. how do you grow an economy by taxing the private sector and the wealthy even more so they can't pump more money into the system? do you bloat the public sector even more? but by going this far down the road with the creditors as well he has lost a lot of support from the left of his own party. from as allies as well. we have seen rumblings there as well. it's a path that he has to walk on. he has to walk on a tightrope in brussels and when he gets back to athens if he get ace deal this evening. back to you. >> they know he doesn't have full backing in his home country. >> look, when you and i were sitting a couple of months ago

listening to the politicians on both sides of the divide it buzz can i have adult to tell the difference. you don't have that problem in greece. you have the communists and people on the right who are aggressive. you have all kinds of parties. so many different constituent constituentcies and then get it through and enact it. there in lies the problems. >> steve, thank you so much. european stocks lower on the day. so many are trying to save greece from economic collapse but at this point it is look increasingly difficult. let's take a look at u.s. futures. what are we expecting on wall street after two days of gains? we were looking at futures slightly lower last time we checked. dow down about 44 points in premarket trade. >> that is all we have time for today here on worldwide exchange. thank you for joining us. i'm wilfred frost. >> i'm seema mody. next up is squawk box.

good morning deal or no deal. the greek drama could be closer to a resolution today or not but as euro zone heeders prepare to meet there's still big question marks. also a new boss at boeing aerospace heady for a transition naming a company insider to replace the retiring ceo and then steaming success. netflix announcing a stock split. that means shares could be more attractive to retail investors and then behind the wheel. are you not using your vehicle right now? why not make a couple of bucks while you don't have the keys. ford is ready to help joining the rapidly expanding car sharing field.

it's wednesday, june 24th 2015. squawk box begins right now. ♪ >> good morning and welcome to squawk box here on cnbc. >> i have a bunch tomorrow. >> i'm becky quick with andrew ross sorkin. joe is off today. we have a great story for all of us that have ever had e-mail regret. maybe that it was that mistaken apply all or maybe you sent a nasty note about your boss that you accidentally sent to your boss. now gmail is rolling out an