♪ welcome to "worldwide exchange." i'm carolin roth. >> hi everyone i'm seema mody and here are your headlines. china sparks a selloff in gold. the mood with stocks lower with investors also weighing off of fed wage hike. banks in greek open their doors for the first time in three weeks as angela merkel warms up to restructuring. julius baer drop to get bottom of the swiss market. the bank also continuing to

stifle from the strength of swiss franc. and the reverse takeover in the british assets in a 1.3 billion pound deal. good morning, everyone. another episode of "worldwide exchange." good morning to you, seema? >> yeah very good how about you? >> a lot happening in the gold market overnight. >> absolutely. >> let's get to the stop story. the price of gold has slump tide five-year low. the precious metal was trading as much as 4% lower after the asian markets posted. that mood with randall resources hit the hardest. spot gold currently off at 1.6%.

and s&p down 10%. northern star down by 0.2%. and the chinese selling and triggering stop/loss orders. 1 million being traded on that very exchange. that's after the government said on friday that the gold reserves were up 57% from six years ago, abdomen that was a lot less than people had had anticipated. >> a lot of factors seem to be weighing on the price of gold right now. you also have the fed indicating that they will raise rates sometime this year in the economic data holds up. on top of that big consumers aren't the biggest buyers going forward. that, of course, is the big question.

and you can also argue that there's not as much fear right now with the greek markets. and investors saying hey, maybe i don't need to invest in gold. >> traditionally, why would you buy gold? it's because you've got inflation pressures. >> right. >> that's because everyone is trying to buy gold. we saw that inflation never really materialize. and what's the inflation that we're seeing here in the europe and u.s. right now, 0.3% for the u.s. high for the fifth consecutive month. but nowhere near the inflation levels that a lot of people had expected. simply no inflation and really no incentive. >> carolin, i would point out the technical factors. it did break $11.50 that's an important price to watch in gold.

traders see inging 97.80. we want to hear from you, are there any gold bugs left? or has the precious metal completely lost its shine. be in touch with e-mail by worldwideexchange @cnbc.com. moving on to greece banks in greece have reopened but restrictions remain in place. daily withdrawal levels have become weekly withdrawal levels. greeks, however, are still unable to transfer money to foreign banks. meanwhile, angela merkel saying she's is prepared to release further details. but the german chancellor has ruled out a major wrightoff.

>> translator: get something done, not now but then as we said we would be willing to do. a classic debt cut of 40% to 50% cannot happen in a currency union this may happen outside a currency union but not within a currency union. imagine if every country came this way, we would enter a hopeless situation. it's reflected in our wish that greece remains part of the euro. and that such a haircut is not possible. meantime there could be trouble on the home front by chancellor angela merkel. the german finance ministry have dismissed rumors. i should clarify, though that she raised that issue in an interview with spiegel over the weekend. but when he was asked are you actually thinks of stepping down, he said no absolutely

not. that puts it in perspective, jon, thank you for joining us. over the weekend, a lot of people said what angela merkel has said in terms of lowering interest rates, that's her caving in. do you share that mood? >> no i think ultimately i think it's -- i'm not sure it's a solution other than buying more time. greece won't be able to pay back its debt ultimately which means they'll have to be somewhat pragmatic. angela -- it's the least generous way to do it. i don't think she's caved in any way. clearly, she's made a little more of her finance minister but he's pretty hard core. >> do you think it's emblematic of a new relationship cultivated

between the greeks and germans? >> well the relationship clearly hits a very low point over the negotiations. and i think any relationship from here on out is about building relationships again. building trust again. so, yeah i guess it is a new dawn. probably not the right term to use for greece. but it's the political party. i think it's a new start. it has to be. but it's not necessarily a bright start. >> john you're going to stick around for a little longer. i do want to brink in the former minister of tourism of greece who is on the phone from athens. thank you for joining us. i just wonder whether that is going to be enough to actually provide a steady government that won't have to see new elections this fall? >> well the government will have a challenge to get enough

strength to pass these measures and send them into applicable laws. right now, it is being supported by all the other parties of parliament. if this is not a long-term solution. they will have to find another way out and elections might been 0 the horizon. >> in the case of elections progress if you take a look at the most recent polls, the syriza party would garner support with the fact they have to engage in a huge u-turn. do you actually think that this government can actually survive, given all that's happened the past few weeks? >> it can. and the primary reason it can survive is that there's no other party which right now is amassing enough strength to form

a solid position. one of the things that people do not read enough into the referendum it's that greeks don't say good-bye to the old system. and now presenting this sort of mirror. for us in greece we understand there needs to be a lot more substance behind the communication, now with the index a lot of at times money and energy into there will have to be solutions for greece. there will have to be ways of turning greece into a productive economy. and until those solutions exist, everything will be based on a very -- on a very dangerous foundation.

right now however they're enjoying the beginning of a new period. and i think greeks can take a lot to change their mind on this. >> in the meantime we're keeping our eye on the economy. and i want to get your thoughts on the impact of new policy on profit margins going forward. i just got back and many business owners were telling me they are concerned about ohio this hike would impact business going forward. what are your thoughts there? >> well, again, it goes back to the same argument you can train the existent greek economy until you've squeezed everything out of it. and eventually it will start becoming -- even productive businesses will start thinking of other options. on their business either some people -- some more people will

go into the black economy, other people will leave the country and go elsewhere. but what the challenge is not how to milk the existing economy, but how to grow it. how to help greeks create more businesses. and in order to do that you have to restorm the state very radically, you have to bring great banks to the 21st century. you need to change the educational system. you need to change even the way the judiciary work. these are all authorities hanging over greek heads that are keeping them from reaching their true potential. once the greeks reach their full potential, i think it will be much easier for the -- for any government to collect the money that it needs in order to meet its obligations. >> thank you so much for joining us here on "worldwide exchange."

great to get your views. now for a look at european markets. >> absolutely we're roughly 1 hour and 15 minutes into the trading session. hey, seema, we're off to a pretty good start after we saw gains at 0.4% last week. the stoxx gaining strength out there the trading session, as opposed to six-week highs. we've got the dax in germany up. and the best day in nine years after the company announced it will combine with snyder electric software business. the french firm will own 55% of

aveva and distributed to shareholders. and ladbrokes up by 3%. they're responding to the report that they could respond to a deal. shares of william hill also in the 13. one-third of 1%. and finally oci in the netherlands, is this a fertilizer company up by 10%. after it confirms its talks. >> all right. thank you so much carolin. moving on to what's coming up on "worldwide exchange" -- a summer storm wreaks havoc in virginia california. and baseball matches cancelled. we'll bring you the fuel details later.

welcome back. chinese home prices rose for the second straight week since june. suggesting that the trading sector could be working. let's go to the trading sessions in singapore. having a fairly good day today? >> yeah especially when you

consider those progress. let me talk about the data. this shows a recovery in the month of june. some people surprised that we saw that included in the volatility in the stock market. that must have had some impact on the housing market since the two were so strongly collated. we'll wait and see. there was a fairly cautious start for trading weeks in asian markets broadly speaking. the volatility the japanese markets, the close for the national holiday, i'm going to highlight what's going on in australia there. two things there the slump that you see hurting the gold especially. the financial regulator and the banks taking that on the chin because it's pretty much in line with expectations.

elsewhere, as i said it's a fairly cautious start for the trading week. in the midst of this resurgence in the u.s. dollar we are seeing association to depreciation to the asian currency. watch the new zealand dollar watch the aussie dollar as well. we have been trading at 6s lows. and perhaps the markets with the possibility of 25 basis points cut. some are talking about 50 basis point cut. and if you do see a 25-point basis point cut, you see easing bias in terms of policy. that's where we stand. back to you now in london. >> thank you so much for that. >> let's go back to john stopford. co-head of the asset management. what do you make of the data. we have the chinese home prices

improving for the second straight month. it's very tough to read what's going on. >> yeah. the chinese are facing a number of changes. they're trying to deal with excessive credit growth. as prizes have risen, the construction is still declining. but i think there's still some evidence that the economy is stabilizing. obviously can't support the asian market but i think volume difficult volatility there is making it harder. and there, we think we're getting into buying currency. maybe not a great value yet but certainly pretty decent value. and i think with government support that market should do reasonably well over the 966 to 12 months. >> retail the big factor that

drove markets higher. but many economists are saying the volatility will have a detrimental effect on the stock market. similar to what happened in the late 1990s. what are your thoughts on and impact on chinese markets going forward? >> i think the arab. is very driven. i think the broader established market is more than. and you have greater confidence to understand what's going on there. i think the margin will have some impact on consumer impacts. it's still a narrow market. not as prevalent or as important as the average chinese consumer. so stabilization there is probably more important. i think it's more of a problem for chinese plans to internationalize and open up their capital markets. i think they want the market to be a serious market and at the moment it looks more like a

casino. and also it raises questions about policymakers. it suggests that they're not quite on top of things. i think ideally at this state, they should be trying to make people feel comfortable. and it has been a little panicky. that may be detrimental. >> that actually brings me to my next question the effect of the policy to reduce short-term interest rate at this point has been ineffective. when do we see that changing? >> i think we check too many things in the market at the same time it does smack a little bit of panic. so that could have a destabilizing impact itself. generally, say lot of policy tool it's in locker they can still use a lot more in fiscal policy and monitoring policy. maybe the housing market is starting to see some signs. the stock market i think

whether that stabilizes as quickly, we have to wait and see. >> john you actually don't like emerging market equities just yet. you say they look cheap, but you don't see that. and that is the big call right now. no one seems to be able to stem the volatility and losses that you could be faces, why not? >> problem is asian market expertise is the underlying fundamentals annex growth et cetera. and commodity prices you can see what's happening in the chinese growth. we can see what's happening in trade volume. all of those pretty weak economic conditions. the support for the market is coming both in develop markets and valuations so sort of caught between the two after seeing great upside. >> and we've seen a big slump in

gold prices overnight. and that once again is hitting the aussie dollar. the also to some extent hitting the new zealand dollar although their underlying commodity is dairy, it's not so much gold. as sharif pointed out, we've got that coming out later on this week and do you see any upside in the aussie dollar? >> perhaps you're right, it's not gold. but milk prices are material half dairy prices are under huge pressure. it's not surprising that you're stuttering. your exports are less in value and spending less money. so policy is going to be loosened there. australia is you ever australia is suffering, but a different mix. that's going to put pressure on the central bank to ease against the fed which is becoming pretty close to

tightens. it's no surprise they're under significant pressure. >> do you think the markets shift their focus back to fundamental earnings and economic policy? >> i think so. i think people position themselves going into a greek uncertainty. it's a little bit of run for the markets to recover on the back of that. i think, though the focus maybe begins to shift, maybe not immediately, but to the fed. i think that's the next balance for the market and may be seen in september, even isn't janet yellen talks about is being gradual and not happening very quickly. >> we'll see that in the market nothing to write home about, plus inflation, well below the central bank target of 2%. we'll see if that actually happens. john thanks for joining us.

co-ahead of asset management. some big rain in california turned a bit dangerous. the san diego area was pummeled by rain washing out roads, bringing down trees and bringing down a bridge. the city has now seen more rain ever in the month of july. the padres first baseball game rained out in years. >> prime minister alexis tsipras called in the army and air force to help them battle the blaze. strong winds flamed the flames with evacuation of two villages and two summer camps. two men are being arrested for accidentally starting the fire. crowds watched in horror as one of the tournament's finalists was attacked by a

shark. nbc's kelly cobiella reports. >> reporter: the final is just getting under way. three-time champion nick fanning was waiting for a wave then this. >> you can see a little splash. oh my [ bleep ] -- >> reporter: a shark knocks fanning off his board pulling him under. competitor julian wilson frantically paddles towards him. then fanning emerges and swims for his life. within seconds both men are safely out of the water. >> we have -- >> did you get a couple punches in? >> i punched in the back. >> reporter: back on shore -- >> i just saw it like take the board. >> reporter: -- relief and shock over their narrow escape. >> he was going -- like --

>> just kicking -- >> reporter: the surfers didn't get back in the water, instead, sharing first place. two champions and very close call. kelly cobiella, nbc news london. >> that's so scary. it can happen to swimmers too. look what happened in north carolina two swimmers attacked literally in the space of half an hour. this is pretty shocking video. >> absolutely. >> would you fight a shark? >> i'd try. still to come on "worldwide exchange," london prepared to get its list of big companies we discuss the challenges. investing in the bit coin currency with the firm ceo coming up. next on "worldwide exchange."

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china sparks a selloff in gold after it slashes its holds of the precious metal. the move sends mining stocks slightly lower with investors weighing off the fed rate hike. banks in greece reopen their doors for the first time in three weeks.

leaving the finance minister of germany out in the cold. and julius baer dropping to the profits of the tax case. sparks in aviva jumped after snyder electric announces a takeover. a 1.3 billion pound deal. all right. let's show you the european equity markets because they are extending the rally that we saw take hold over much of last week. ftse up higher 31%. and the dax up 0.8%. and the cac adding on 0.8% as well. and greek banks reopen and we've got say lot of companies with moves, snyder electric being one of them. seema, how are the commodity

markets? >> i would say it's the commodity markets stealing the spotlight. we are looking at gold prices at a five-year low. we haven't seen that since april 2010 hitting a low. down four straight weeks since the first time since february. a lot of questions in gold prices. and a lot of questions in what is really behind the selloff policy. is it weak economic data. right now, cold at $1,115. and wti crude over $51. >> china has traditionally been a buyer. and now they are a concern for them. anyways, let's head on to the currency market where is we've seen a lot of dollar strength. last week the dollar index was up by 2%. and the euro dollar is firmly below, 1.0851. the aussie dollar not doing too

bad. up would think it's a lat worse given the decline. 40% stake in the 153--year-old. the flirtation on the stock exchange is part of what has been billed in the country's biggest government selloff since the 1990s. >> in 2014 the companies supports early stage companies that work a big acceleration in investment and market communication. let's bring in the ceo of

coinsilium. thank you for being on the show. >> good morning, thank you for having me here. we're at a stage where very large banks and institutions are interested in the underlying technology. what we're really working on providing services to companies. and one of the technologies that has made bitcoin successful until now. that change is that technology that we're aiming to master and provide services to these companies. >> there's still a question the value, the sustainable acurrency going forward. what would you say to those out there? >> well in our business we're not really that worried about the value of bitcoin, because our motto is more into investing in the products. helping to commercialize the products. so it's not directly linked to

any price. >> does the technology have any operation outside of bitcoin? one of the invests are are truly over bitcoin and the other applications? >> well you have applications like land management. one that you can do with technology and the management it's actually very interesting and very particular for any large streams of data and complex streams of data. so it's actually a database. and time stamped. so it has the great features distributed of a decentralized database. >> it all sounds pretty good. i just wonder whether investors are ready to understand that. some people saying that this ipo is coming early. what would you say to that? >> well some very large

investors, a great amount of funding and very skilled bitcoin currency. so you have also big names in terms of banks, financial institutions and auditing companies and they are putting a lot of resources in this technology. so i think that we have the right names of proving that something worth looking at. we're still at the earlier stage of the cycle, so it's a good time to help provide services. >> your road show begins this week. you plan to take your company public sometime in august. >> yes. >> what do you expect for the proceeds that you've raised? >> well the first season going to be towards building a team for operating and providing

services such as business incorporation advisory services. guidance investment solutions. and the other half of it we're going to continue investing in the technologies that we feel are going to be the leaders in this market in the future. >> what would you say is the biggest competitor? is it the startups here in london focused on fin-tech and technology or the silicon valley? >> well we actually want to work with all of these people. we want to work with products here. we want to work with products as well as silicon valley. i would say it's a collaborative economy. we're looking forward to that work. >> no competition? who would you say is the biggest player out there? >> the big equivalentgest are competing in terms of we combine the operational and investment outfit. i think for the moment we are the first one to do these in the

way we're doing it. >> it's a milestone for the industry. the first for any global exchanges. good luck out there, ceo of coinsilium. julius baer saying they are hopeful. after it slit after a $350 million charge related, and that was announced weeks ago. julius baer is being investigated for helping wealthy americans dodge taxes. seema, if you take a look at the share prices off by $2.4. since that announcement of the charge relating to the u.s. tax invasion issue, shares have rallied some 7%. they've done pretty well analysts are fearing a much much higher find and higher

provision. now that this seems to have been cleared a lot of people put money in the stock. >> what about the negative impact going forward? seeming to still dent profit margins for the coming quarters? >> totally. julius baer in particular when you compare them to the likes of ubs and credit suisse they have a higher cost base and a relatively low credit base in switzerland. and that's why we saw asset down by 2%. analysts saying that little bit of information for julius baer that was quite disappointing. but they've got also a 40% stake in the mexican adviser. ahead of the tax issues cleared, they expect julius baer to be a lot more aggressive when it comes to build on acquisitions. and it seems they're getting out there in terms of inorganic

growth. >> we see what else comes. >> we've got so much coming on this week. i'll be traveling to switzerland. we've got credit seuss, adt. and apple, ibm among others. >> barclays plans to shed more than 30,000 jobs in two years according to the sunday times newspaper. the report says the redundancy program would be by outgoing anthony jenkins. the plan would be set to review as necessary to improve the stock price. the stock jumped 32% in the last year. but that is barely higher than it was five years ago. standard chartered is planning a major restructuring effort in a bid to simplify the bank's structure and cut costs. the company has confirmed by october the bank will have four client businesses and three

other businesses. the ceo said the bank needs to quote, kick-start performance and speed up decision making. bank of america and wells fargo say they'll pass their own self-constructed stress tests. they will remain under minimums. the bank-run test different than the test that the fed conducts to determine whether big lenders have enough capital to withstand another financial crisis. >> morgan standing rounding out the earnings from u.s. banks. one of the reports before the opening bell has been investing if now is the right time to buy financials. >> the broader u.s. stock market is posting modest gains so far year to date. they've recovered quite a bit since the lows in the stock market back on july 8th.

since that euro term bottom we've seen investors duke it out over a battle of whether stocks should have a leadership role. it's the single best performing sector in the s&p 500 in the markets hitting their lows back on july 8th. if you take a look at components, the stocks in the financial index that lead the way higher these three stand out. if you take a look at a regional bank like m & t, those stocks spiked higher. also look the at discount brokerages like charles schwab you can see the shares moving higher. if you take a look at the two best performers in the s&p 500 financials index that have really led the way higher you're talking about two very big, two well-known stocks the

money center banks, bank of america and citigroup, both reported earnings as well to help drive the stocks higher. stocks like theory four have helped to push the s&p 500 higher. and the best performing s&p since the marks hit its lows back on july 8th. the question becomes whether or not investors will continue this momentum over the course of the last few weeks. we've seen a lot of fund throes. the battle is still crewbrewing. it looks at least that investors have turned a positive eye. back to you guys. still to come on the show european auto sales hit tops but the emerging markets but the brakes on further growth. we take a look under the hood of the auto sector next.

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shares in fiat chrysler are driving higher in milan as the company reviews interest for potential buyers for its auto parts maker. this according to reuters. two are expected to team up for the supply.

shares down 1% in frankfurt, as weak demand in china and latin america saw brand sales drop 8.6% in june. and drop in sales in china in the first half the year this is the eighth fall in sales at the company's core division in nine months. let's talk more about volkswagen and the health of the auto sector. joining us around the desk. good morning. >> good morning. >> seen as one of the big outperformers, the bright spot in the auto industry. that seems to be changing now? >> yeah, investors are incredibly concerned that the chinese market is turning over. that's the dominating theme. and vb brand sales down. >> so auto sales in china, that's painting as a negative

story. we're looking at autos. and how long does that paint that type of picture? into well we talked about demand the normalization of the chinese market. the stock market having an impact on consumer sentiment as well. i think we might be up for another couple of months of tougher sales as well. but we do believe in the overall, you know structure growth of the chinese consumer household income affordability. urban development. this is a -- you know this is -- it's currently happening and it's the aspiration to own a car first time second time third time that's a huge thing in a developing economy. >> i want to stick with you, dudley, for a moment. you said that we sort of neglected the stock and say they're underappreciated value. would you still say that after

the numbers on friday? >> yeah, i would still say that we've upgraded the stock since the stepdown. with the change around and it's overshadowed by the weakness in china. we can run so far but i do believe in the value, i would look at it another 12 months from here. we want to move on an exciting auto story for the automakers. do you think the germans are well positioned to tap off of a potential. >> there's only one german dealer. the vw has been poor in exploiting markets. they're trying to get in there. but i think it's a long way to

get there. >> the problem is the chinese carmaker they've been so present, with the sanctions in place. can the french and the germans, now that they're coming back in now that the sanks are being lifted can they make a difference there now that the chinese are well established? >> the quality and the reputation of the brands is not strong. they're very cheap but not very reliable. i think with the funds getting lower again, i think they will regain shares. >> i want to schiff the focus to the auto market. retail sales have been disappointing when you break out retail sales, autos have been the bright spot. the stocks that investors aren't as bullish. gm down 12% this year. ford down about 5%. what are your thoughts about what's happening with the u.s. auto? >> well the cycling, we're

seeing more pressure in the market. there's definitely another two or three or four years of growth let. that's why an investment in european motors is going to be far more attractive than getting involved in the u.s. if people want to get invested in the u.s., they'll definitely pick a supplier over a carmaker. >> do you have a top pick in the secretarier? >> we have top picks, of course. we like bmw, valeo. there's money to be made. >> thank you for joining us. now switching gears, donald trump said he's not sorry about comments he made about u.s. senator john mccain's status as a war hero. and his republican competitors and some calling for him to pull

out of the race. let's get the latest from tracie potts live in washington. >> reporter: obviously, donald trump first with immigration and now this. on saturday he said john mccain who spend five years as a p.o.w. is not a war hero. he's doubled down on those. saying mccain made us less safe he's abandoned our veterans and he's not a war hero just because he was captured but also he says he doesn't want to be lectured by what he calls failed politicians. those politicians are running against him. marco rubio saying he's unfit to serve because of the comments he's made. others say he's insulted the entire military offensive and ridiculous, some of the returns that we're hearing, describing trump's comments. but as i said, he's sort of double down. asking whether or not he should

apologize to john mccain later today on nbc, you'll hear a lot more about what we expect to be commentary reaction from john mccain. he's going to be talking to us here, the first reaction to the comments over the weekend by donald trump. >> tracie, thank you so much. the u.s. and cuba are formally restoring diplomatic ties today that were cut more than five decades ago. they will reopen embassies in washington and havana. cuba's foreign minister will decide of the raising of the flag in 55 years over a mansion that was sold at the embassy in d.c. the u.s. embassy in havana will be open. but no american flag will fly over it, until secretary of state john kerry visiting next month. president obama said the nuclear agreement with iran in congress to a two-thirds majority in the house of representatives and senate to pass. israel has called on lawmakers to reject the deal which seeks

to curb iran's nuclear program in change for easing of economic sanctions but obama has vowed to exercise his veto should congress say no. speaking to "meet the press" yesterday, prime minister david cameron defended the deal. >> incorporate 00 if there wasn't a deal i think we would face iran with a nuclear weapon and that would have given a terrible choice to the west enabling, or allowing that to happen. or very difficult decision to take military action. this is the better outcome to keep iran away from a nuclear weapon. it's a successful negotiation for the allies and i think we should be the pride of a good deal. especially those that complain about details. and verification put in place, inspection put in place. i think that we've seen in any sorts of negotiations. i think it say good deal and

right to get on with it. and the sanctions pressure worked. and i think that's all to the credit of the u.s. administration barack obama, but also the action taken in europe too. >> and remember seema, everyone who has been talking about the july 20th deadline for greece to row pay the ecb bond and now make payment to the imf. and now that they've got 7 billion euros in financing. and greece has initiated the payment procedure for the 6.25 billion euros and the imf. >> a step forward. anyways, warning investors of a spinoff in the auto sate could result. yahoo! said it's proposal for a tax base spinoff may still be rejected by the u.s. or chinese. that would materially reduce the

amount of cash yahoo could distribute to pressures. yahoo! shares up 2%. and now let's move on a number of advertisers on youtube has jumped more than 40% in the past year. the report of the financial times reports youtube ads are spending 60% more than last year. also saying youtube reaches more people 18 to 49 than any u.s. cable network. last week on the earnings google said the amount of time spent watching video is up 60%. check out the price action in shares of google. it was one of the outperformers on friday. after a big jump in earnings. the nasdaq hit a new high. google at a record high 699.63.

>> stock is up 25%. >> ale reports earnings on tuesday after the closing bell. apple insider records a research note from a well-connect analysts. the company saw strong sales of iphones but ipads and the apple watch were sluggish. kgi securities describes security to the watch as tepid. and new yellow and rose gold apple watch could spark sales. we'll see. >> that's the big focus. more coming up on earnings as well as the hollywood studio mind multiple oscar winning movies could be on the auction block. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now...

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happy monday everyone. welcome to "worldwide exchange." i'm seema mody. >> and i'm carolin roth, these are your headlines around the world. the dollar makes gains as gold dives to a five-year low. reserves turn out to be smaller than expected. banks in greece open their doors for the first time in three weeks after angela merkel warms up to further debt restructuring. leaving the finance minister out in the cold. and cuba comes in from the cold. washington ready for a new embassy as the stars and stripes head back to havana.

a defined donald trump said he's not sorry for comments made about senator john mccain after attacking his status as a war hero. and welcome, everyone into a new week. we're also starting the second hour of "worldwide exchange." futures right now pointing to a higher open ton wall street. greece looking at creditors and the banks reopening today. it appears markets can move back on the fundamentals. economic data being focused. plus earnings kicking into high gear. ibm reporting today. tomorrow will be the big one, apple with tech a record high having to do with the performance of shares in google. taking a look at european equities a lot of focus in the banks being set for three weeks. morale confident among not just

greece but investors alike. one of the reasons we're looking at european equities higher focus will be on later in the week. we have it coming up later in the week. keep an eye on the data coming out of china. right now, the dax up 110 points. the ftse 100 up about 35 points. interestingly enough in trade, a lot of focus has been on the commodity markets, we've seen massive moves in the growth of technical levels. that is $11.50. right now 11.14. china reserves with the top consumer board not buying as much. and janet yellen signifying that rates could rise some point this year. >> and with the stronger dollar that was really the story of the last week. the dollar index rising almost 2% over the course of last week.

the euro dollar falling below 3%. below that key level of 108.52. really no trade in the dollar yen as we're seeing the japanese markets close and the aussie dollar a surprising reserve against the dollar despite the fall in commodity prices specifically in gold. the bond markets not too much going on right now. a little selloff in the bond markets no major moves, at german yield at 10 basis points the u.s. at 2.3%. and greek banks reopen. greeks are still unable to transfer money to foreign banks. meanwhile, angela merkel is prepped to release further debt

relief for athens but the german prime minister has ruled out a major write-off. >> translator: not now but as we said a classic hair cut, a debt forgiveness of 30% to 40% cannot happen inside a currency union. this may happen outside a currency union, but not within a currency unit. imagine if every country came this way to the countries holing the least debt among the euro states we would enter a hopeless situation. this will not work and it's reflected in our wish that greece remains a part of the union and that a hair cut is not possible. meantime there could be trouble on the home front for german chancellor merkel. and the finance minister set to resign. let's talk more about the greek story with richard thalor.

richard, i thought it was great to have a new voice on "worldwide exchange." you studied behavior economics which i find to be a fascinating field. tell us we're looking at the situation between greece and germany, what are your thoughts with this situation? >> well you know there's an old game that we study in economics called the ultimatum game. the way it works two people are asked to divide a certain amount of money, 500 pounds. i offer you a share, you say yes or no, if you say no we both recognize that. standard economic analysis is i should offer you one pound and you should say. it's not surprising to me that one the players in these early negotiations was a game player. i think both sides thought they were playing some game where

maybe a game of chicken where they could make ultimatums to each other. and it looks to me i'm not an expert in international finance. but it certainly looks to me they ended up in a worse place than they were. >> that's what they usually call prisoners' dilemma, isn't it. that's where we are. now in reality, we have to move forward, we have to find a way to deal with the greek mess. do you think now we're now at a point where simply negotiations don't work? >> well there has to be either negotiations or a grexit one or the other. and both sides can't just -- you're right. it's a classic dilemma. and they've managed after months and months together and they'll both lose. and if you're going to lose-lose right now it would be nice to get to a win-win. >> what do you think is the greatest attribute, looking at the greek deal coming together?

>> well, it just seems like another kick the can down the road. and, you know chancellor merkel is insisting on no haircut, but another behavorial aspect of that is what do you call a haircut? so if you restructure the debt and say it has to get paid off in 60 years rather than 30 you say that's not a haircut. >> as a behavorial economist, do you think the market's reaction has been justified when watching the greek story play out? >> i don't think the mark has any idea how to react to this. the story changes every day. and folks like you tell us how to react. and nobody knows. i mean neither side seems to be reacting intelligently or rationally. but rather emotionally. and it's hard to say. i think the elephant in the room

is the: imf. >> i think actually i took a course on behavorial finance. and it points out just exactly what you mentioned. there's a lot of hurting behavior. if you take a look at the markets to the point you just made i would think seema that markets have reacted fairly rationally. we haven't really seen a spike in yields. last week spanish yields up 21 basis points. and bund point up 10%. maybe behavorial economics are wrong because now we can deal with the situation. >> well let's see. so what you're seeing there have been not been big post reaction but maybe there should be. we don't know whether the world is ending. i mean you know it's funny, when prices change a lot, people

say, oh you know that's people overreacting. and it's just as likely that when nothing happens, they're underreacting. disaster may be around the corner. >> richard, i'm going to throw you a curve ball here. i just want to ask, there you go. what's happening in silicon valley. would you characterize that as a rational existence? >> i'm not as worried about silicon valley as i am china. china looks to me the way is convalley did in the late 90s. >> we're going to discuss that in a second. richard thaler. the owners of mira maximum are reportedly exploring the sale of the sale.

reports say that they're in talks with investment banks. it could fetch as much as $1 billion. miramax miramax miramax. now lockheed has reportedly agreed to by sikorsky aircraft from united technologies for more than $8 billion. the deal is expected to be announced ahead of earnings tuesday. this is the lockheed biggest acquisition since it bought martin marietta ten years ago. the deal hands the black hawk helicopter over to the manufacturer of the f-35 fighter yet. lockheed up 0.45%. and united tech up $0.50%. still ahead, the great wall of china.

we'll explore that after the break. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

these are the headlines. gold melts to lows not seen since 2010 as the markets anticipates a hike from the fed. and lockheed will buy

sikorsky aircraft from united technologies in an $8 billion deal. and flash flood warnings in southern california as torrential rains wash out roads and sweep away bridges. and our top story this morning, the price of gold has slumped to a five-year low. the precious metal is trading as much as 4% lower than the asian markets opened. but it has now appeared from losses, 1.6%. that move has sparked a selloff in gold and mining stocks in europe. and australian listed commodity stocks also ending the session lower. a complement of factors here. and policy a big part of the discussion as well as the stronger dollar. so we got thinks are there still any gold bugs left?

are you a gold bug left if you are, join us on the covering here on "worldwide exchange." tell us what you had to say about the recent price in gold prices will it rally or fall even lower? join in on the conversation by e-mailing us at worldwideexchange@cnbc.com. keep your comments coming. thank you so much for that. chinese home prices rose for a second straight month since june as suggested government efforts to boost the sector could be working. sharif in singapore. are we working or going to see the big effect of the slump or failed measures by the government to prop up the economy in july? >> well we are definitely seeing a tentative recovery carolin. but saying there's a lot of skepticism and association with the june numbers and also probably even more skepticism

associated with the july numbers in the months to come. the given falls and meltdown in the chinese markets. the stock market and housing recovery market, so a lot of question marks as to the accuracy of the june data. should be a little on of the softer side gimp the sharp falls that we've seen in the stock market. we'll be interested to see whether july numbers tell us and see that as the housing market recovers. let's put that aside for now and just get back to the market proper. the shanghai composite, despite those numbers we've actually seen a tentative recovery. the aggressive correction by the market close to 4,000. a deinflexion point. and some say could be the catalyst for profit taking in the market. gold price, that say big story for the australian miners. they were on the defensive

today. i'll say this if the dollar rally does cause the debt should do believe that we could see a return back to 11.45. even then as you get to that level of $145 an ounce, that could be an opportunity to shore up the matter. so in my opinion, it's all down to what the u.s. dollar does. back to you now. >> let's discuss more about china with richard thaler who is a behavorial economist at the university of chicago with business reducing a massive move in chinese markets over the past few months. a little bit of stabilization, richard over the past seven days. how has this impacted investor psyche in china? >> we don't really know who's controlling stock prices. the big picture there is looks frighteningly like the market and tech stocks in the late '90s in the u.s. which neither of you

will remember but thises were driven by retail investors primarily. and inexperienced unsophisticate unsophisticated investors. that's what we're seeing in china. the fact that there's a lot of leverage is particularly frightening. and if it is a bubble and the government can't prevent them from going back to the prices wherever it belongs, there will be big feedback into housing. and just like we saw the reverse in the u.s. and here where the housing market fall and then people had to delever, and that caused the stock market to fall we could see the opposite play out in china. china looks scary me. >> with signs, people in economics feeling so much about incentives, right incentives, wrong incentives. the problem is in china we don't really know what the incentives

are and what the major incentives are for driving stock prices. of course, it's the search for money we're not quite sure whether it's still a capitalist country or a communist community. how difficult is it to reach china from your position? >> i think we just don't know what numbers to believe. in some ways it's like greece. nobody trusted the numbers that the government was putting out. those who did were fools. in china, we don't know whether any numbers including gdp are out there. >> that's changing slight loufr the past one year. >> well, but, still, do you trust the numbers? we just had a report saying we're not sure what -- how real the numbers will be or housing numbers in a month. and all the numbers coming out

have to be just -- i'm not accusing anybody of anything. i'm just saying when we look at those numbers, we need to be skeptical. >> we'll leave it there, richard, thanks for your thoughts. richard thaler professor of science at the university of chicago school of business. >> coming out of "worldwide exchange," fallout of u.s. and cuba exploring diplomatic relations. we explore what may now exist for both countries. that's up next.

donald trump says he's not sorry for comments he made this weekend about senator john mccain's status as a war hero. mccain was a prisoner of war for five years in vietnam. trump drew fire on saturday after he said mccain isn't a war hero because he was captured. . trump's republican competitors were quick to comment for him to jump out of the race. trump says he's not going anywhere and not apologizing. moving on, the u.s. and cuba are formally restoring diplomatic ties that were cut more than five decades ago. cuba's foreign minister will decide at the raising of the flag for the first time in 54 years over a mansion that was served as the embassy in d.c. at

10:30 a.m. eastern. the u.s. embassy in havana will reopen but no american flag will fly over it until secretary of state john kerry visiting next month. joining to us discuss michael henderson, principal of latin american analyst. michael pleasure to have you on the show. the foreign diplomatic relations seem to be moving quickly. the question is how are they and which sectors are well placed to take advantage of this deal. >> there's no doubt about it from the u.s. and the reasons for more generally, we haven't seen a cuban embassy in place in washington, d.c. at the moment in 50 years now. so quite a big deal. but this particular event is really symbolic. i mean it's just further evidence that the obama administration is keen to bring cuba in from the cold. the embassy opening will be quite limited. you know really you have in the

background this trade and economic embargo in place. that's not likely to go away anytime soon. and some of the sectors that benefit, i think perhaps a couple in the near time they're going to do quite well. for a start, tourism, cuba is well established tourist destination to support the infrastructure in place. and seeing more and more americans circumventing the travel ban. another one is the telecommunications industry it's quite low, with the internet services there. and the market at the moment is still very underdeveloped. >> michael, i want to come back to the politics of this. as you say this is very much a deal of president obama but this is still opposition by the republican-led congress. what happens if the white house

in 2016 goes to the republicans? what happens with this deal and any progress? >> well clearly, politics have been key to this. diplomatic relations have been moving very fast recently. it was just that and cognizant of that now, this is a change from pretty much a zero-based diplomatic relations with decades and now suddenly we've got movement. i think we have to be careful to not expect things to happen very soon. obviously, the pushback from the republican camp. and low-profile politicians are keen to that. and you know we've had jeb bush marco rubio saying they don't want this to proceed. really, that's going to cause a lot of pain for obama. we have the 2016 election coming up. that's still a bit of

uncertainty, if one of the republicans get into the white house in 2016 we could see a stalling in relations. and the embargo taking place kicking back to the future. >> michael, a pleasure to have you on the show to discuss the u.s. and cuba relations. michael henderson. still to come on the show -- gearing up for apple's quarterly. does the apple watch need more time? we discuss after the break. and a quick look at futures, the dow indicating a higher uptick on this monday morning. nasdaq hitting a record high last week. can it continue? we'll discuss, after the break.

♪ ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.

and you're watching "worldwide exchange." i'm seema mody. >> and i'm carolin roth. this are your headlines from around the world. the gold dives to a five-year low, china's reserves turn out to be smaller than expected. banks in greece open their doors for the first time in three weeks as angela merkel warms up to put it debt restructuring leave the finance minister out in the cold. washington ready for a new embassy as the stars and stripes head back to cuba. a defined donald trump said he's not sorry for comments made

about senator john mccain after attacking his status as a war hero. and if you're just tuning in thanks so much for joining us here on "worldwide exchange." greece into the lime light especially may turn to fundamentals. economic policies and earnings. u.s. earnings kicking into high gear this week. the focus likely to be on tech. can it achieve sustainable earnings and revenue growth. ibm today, apple tomorrow. nasdaq up to dow jones up 18 points in premarket trade. speaking of tech google was the big outperformer on friday after beating expectations. the first time since 2013 also means that youtube advertisers have increased 40% in the past years amid good news report shares helping them reach a record high.

the big question is can that continue the rally in tech and google going forward. a quick check on european markets as we told you greek markets fading in the lime light. also greek banks reopening after three weeks. that lifting morale as well as monday right here we're looking at the dax up 100 point. a quick check. a 1% gain for the move on monday. the focus really will be on economic data later this week. eurozone pmis due on thursday. and keep an eye on china. of course we have china manufacturing numbers later this week. yahoo! is warning investors its planned spinoff of alibaba could result in a previously unexpected tax bill. in a filing on friday yahoo! said its proposal for a spinoff may still be rejected by chinese

or american regulators. in may, the irs said it's considering changes to its rules regarding spinoffs. last month, yahoo! said the changes are directed at yahoo! itself. yahoo! up 2% in trade. investors with paypal and carl i dawnecahn lobbied to focus on it. let's talk more about the ebay/paypal deal with jonathan morgan director of research at the edge consulting group. it's been the main driver for earnings for many years now. >> interestingly enough when we released our analysis to clients some of the largest activists and hedge funds in the markets,

we actually say looking at the ebay spinoff. we see that in the paypal piece. now, what we think about paypal going forward, it say strong organic growth opportunity going forward but it's a little bit of a play going forward. ebay, we see is a little more opportunity there, because of the fact that you know paypal is such a high-profile situation going through the market we're seeing a lot more of investors trade in on the paypal versus eat bay the ebay. >> we've been looking at paypal and its growth strategy going forward. do you think being an independent company will help it compete effectively with the likes of apple pay seen as one of the emerging experts in the states? >> yeah definitely that will help the company going forward. actually interestingly enough from the 15-year global spinoff companies which shows the larger

tech companies spinning off, once the entity around 33% upside on the first couple of years going forward. so that's the message we're having for our clients. and we do believe there's going to be some life going forward on paypal. >> according to data some 40% of spinoffs do not generate income in the first year post separation. how do you know which spinoffs to target? >> as you said, it doesn't work. and actually we're seeing a lot more spinoffs coming out of the market. we're looking at fundamentals, the insight. and going forward in this case paypal very limited on the balance sheet. what the management compensation is going to look like going forward. that's how we try to distinguish the better company. >> you still look up fundamentals. but ute az just choose the

sector. it seems according to your data the health care sector has done really well. up 45% in the first half of trading for the spinoff company. up 20% for the parent company, for whatever is left. why has it done so well? >> i imagine if you look at the situation recently in the market, there's a lot of situations through and through where they're spinning off their higher margin growth business from the rest of the company. so that's why you're seeing a little bit more of an upside in these health care spinoffs. and i'd imagine there's many more to come. >> spinoffs continues to be the new trent. talking about symantec yahoo! and alg laeibaba. what's the next big company, facebook? >> that's a possibility. there's a lot of talk in the

market about google doing a breakup there, with possibly youtube, depending on which sector they want to release in the market. i think the trend is going forward. paypal, ebay that's a big story today, we're seeing a lot of companies and activists looking into what companies have real estate assets that can possibly spin this off in a tax-free manner. >> and they're not deterred by stories of dupont not actually working? >> no i think dupont was probably just one for the year so far. and last year it was starboard and darvin. they've actually come out this year doing a breakup of their assets. and especially with the low cap going forward with more and more activist. not just in specific areas but you're seeing some come out in the smaller and mid-caps as

well. >> jonathan morgan director of research at the edge consulting group. coming up later today, an exclusive interview with the ceo devin wenig. apple reports a research note from a well connected analyst eye stitts the company has strong sales of iphones during its third quarter but ipads and apple launch were sluggish. kgi describes the watch as tepid. and it will be available in the markets. a new yellow and rose gold apple sports model could spark sales. >> there's been so much confusion around how this watch has been selling, various consulting firms and analyst groups saying it's 5 million, 20 million by the end. we just really don't know.

we need some clarity to come from tomorrow's earnings report. aside from the health of the apple watch and the opportunity expect china to be a topic of discussion given that we've seen volatility in the stock market. questions of how that's impacting the consumer confidence and consumers in general because we know they've been one of the biggest buyers of the i15 as we're perhaps hearing nor demore details going forward. also, i want to talk about the currency headwinds, beg up stronger exposure to foreign markets how that impacts bottom line. >> and what usually drives the stock, the last three months up higher than 4%. so we'll watch out for that. let's take a look at other top stories at this hour. much needed rain in southern california turned a bit dangerous this weekend. the san diego area was pummeled

washing out roads, knocking down trees and bricking down a grid. there were several sinkholes and mudslides reported. the storm shut down the padres baseball game. the first rainout in nine years. >> in greece a large fire swept lieu the villages friday. prime minister alexis tsipras called in the army and air force to help over 100 firefighters battle the blaze. strong winds fueled the flames. still to come on "worldwide exchange," the hold studio behind multiple oscar-winning movies could be heading for the auction block but will that oscar gold turn into cold, hard cash? that's coming up.

♪ ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling.

you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. well let's talk politics. donald trump says he's not sorry for comments he made this weekend about u.s. senator john mccain's status as a war hero drawing fire from his republican competitors, with some calling for him to drop out of the race. let's get more of the story with tracie potts live in washington. hi, tracie. >> hi good morning. with at least two of his republican competitors saying

that the comments donald trump has made about john mccain he's not qualified to serve. trump is dubbing down on saturday that mccain who spent five years as a p.o.w. should not be considered a war hero. on sunday when asked for a john mccain apology, he said no. and last night in an op-ed in "usa today," he doubled down on it saying mccain has left americans less safe. republicans are coming down hard on him. not only saying he's unfit to serve but he's inupset everybody. and some calling his comments offenseive and we'll have more on

donald trump and john mccain in a few hours. >> the u.s. and cuba restoring diplomatic ties that were cut more than five decades ago. cuba's foreign minister will reside at the raising of the flag for the first time in 54 years over a mansion that will serve agency the embassy in d.c. at 10:30 eastern. the u.s. embassy in havana will also be open but no american flag will fly over until secretary of state john kerry visits next month. moving on miramax has won 68 oscars in it's 38 years in business including best picture. but now the studios may be up for sell. landon dowdy joining from us cnbc headquarters. >> the owners of miramax are reportedly exploring a possible sale of the hollywood studio. reports they colony capital and holder are in talks with investment banks. as much as $1 billion. but some say the might be too

high. miramax owned more than 700 movies. the value of that library could be going up thanks to demand for digital content. it wasn't the lawmaker that it once was. miramax was founded by harvey and bob weinstein. nailed after their parents miriam and max. the weinsteins left the company in 2005 following a bitter dispute over creative control and formed the weinstein company. the investor group bought miramax in 2010 for $660 million. elsewhere in hollywood, it was a good weekend to be a tiny

circle hero. "ant man" stopped with $58 million. it's the top movie to debut at number chocking that up to heavy winds and storms in california. lockheed has reportedly agreed to buy sikorsky aircraft from united tech for $8 billion. the deal is expected to be announced hasty of the company's earnings on tuesday. this is lockheed's biggest acquisition since they bought martin marietta 10 years. it plans to hand the manufacture of the black hawk helicopter over to the manufacturer. hook lead down.38%. gold melts to lows not seen since 2010.

youtube breaks in the ad revenue with the top 100 brands and quietly spending 60% than last year. and flood warnings in southern california has torrential rains have washed out roads and sweep away bridges.

can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? ♪ ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop and durable new stellar notebooks,

so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. and a little bit of sports news for you this morning. irish amateur paul dunn is the surprise leader on the last day of the open at st. andrews. we shared the lead at 12 under lewis and jason day. jordan spieth is 1 off the pace at 11 understand as he hopes to become the first player ever to win the first three majors of the year. play is finishing on a monday for only second time in history as rain forced the players off

the course on saturday. banks in greece have reopened after three weeks with restrictions in place. daily withdrawal limits have become weekly withdrawal limits designed to prevent long queues at atms. greeks however, are still unable to transfer money to foreign banks. meanwhile, german chancellor angela merkel said she's prepared to consider further debt relief for athens once were a deal has been worked out. the german chancellor has led out a major markoff. and equity markets off to a really strong start this morning. continuing last week's 4% rally which was the best week that the uros had. take a look at the ftse up 1.5%. greece has made very usual payments to the ecb and imf this morning. u.s. futures, we could be in for a positive session on wall street. the dow indicating a here open

by 20 points. s&p 500 up by 2. nasdaq which hit a record high last week seeing a gain around 3 points. earnings will be in focus. we're hearing from heavyweights ibm, apple, amazon as well today. and look for reports this week on existing and new home sales. about a quarter of the s&p 500 earnings report this week we will hear from morgan stanley, and the opening bell and the big blue after the close. also we want to point out what's happening in the gold market. gold not being helped by china whose reserves turn out to be smaller than expect we are looking at spot gold trading at a five-year low. right now, $1,114 an ounce. let's get the word on how to trade gold going forward with mark sebastian, founder of optionhit.com. where do the gold prices head from here? >> if you look at the arguments

for the gold case you really have to say the federal research is not going to raise rates in september or december. i think it's kind of a strong dollar. but, you know i could see gold softening until the market really does figure out that federal rate hike is not in 2015. that could provide a floor. but if you look at the chart as a whole, it's been ugly. the gdd gold has not been spiking. it's an edge in trader hedging gold. people are just sell think positions. >> if gold continues to fall do you think investors will question whether the shiny yellow medaltal is a good safe haven asset? >> i think investors should question. it's gold. what is the safe haven vehicle here? there are others that make safe

haven vehicles. bonds, options. there are others for investors to use widely available than gold, which when you look at it is really in my opinion a play on currency. for now, the u.s. dollar is getting so strong gold is not going to be pretty here for the near term. >> mark really to your point, gold really hasn't done well in the last weeks with the uncertainty around greece. about a quarter of s&p companies reporting numbers, what's going to trump sentiment? is it earnings, is it gold? >> oh it's not gold at all. i don't think gold matters. gold's been in a bear market now since really you know last couple of years. has not stopped the s&p at all. i think really you got to watch the s&p levels. we're right near that all-time high again. about five bucks away from the all-time high of the s&p. if we converge through that with decent earnings behind it

that could be a real -- a real juggernaut to the market. i can see the market popping back towards 2150 maybe around 2200 before it's all said and done. again, i still think the federal reserve is kidding themselves if they think they're raising rates in september. a good season followed by probably another lukewarm employment report in august. i think we see the s&p really make a final run higher. rates eventually have to go up but, you know people think they're going up in september, i think it's flat out wrong, the only way they raise rates in september is because they say they're doing it. something that my 5-year-old does, not something that a mature financial leader would do. >> mark you're clearly in the minority here. most people expect the feds to raise rates in september or december. we're seeing that happen we're also not going to see the rally

for the s&p. how much uncertainty do you attach to your forecast? >> well you know i think the s&p can still do well it just won't be as strong in the back half of the year. a lot of analysts think that's going to raise rates in september. if you look at fed futures and near-term interest rates in the treasury market they're not pricing a move in september. it's all almost now a move towards december. and i think that could move as well. think as what's going on. the dollar is getting so strong. and the economy is not growing that fast. why in the world would someone raise interest rates when really the rest of the world has raised rates for the united states already. and what's going on in europe what's going on in china, with canada dropping their rates. >> mark great to have your sper perspective. >> that's it for "worldwide exchange."

i'm care rein olynin roth. >> and i'm seema mody. next up is "squawk box."

hi folks. good morning. back to business greece reopening its banks today but some restrictions remain in place. and the country's stock market remains closed. a deal move finally happening. lockheed martin reportedly the one buying sikorsky for $8 billion. and historic flag raising, another hist toshg reaction after the countries reopen ties in more than half a search. good morning, it's monday july 20th "squawk box" starts now.

>> announcer: live from new york this is "squawk box." good morning, i'm andrew ross sorkin along with joe kernin kernin. before we begin, check out this story, exploding on social media. it's unbelievably terrifying. momentsal a pro surfing event yesterday. you're not going to believe this. in south africa it was caught on camera. a shark attacked one of the biggest sport's stars live on television. nick fanning, we saw it as the shark knocked him off his board. pulled him under by his leg rope. he ran away and swam for his life, more on this story in just a bit. my wife and i watched i think eye on youtube media ten times. >> it's unbelievable. first,