. i've done some dumb things on this show, but this is right up there. >> danger is part of the excitement. >> welcome. i'm julia chatterley and these are your headlines. >> takes its toll on stocks while the yen pushes the nikkei deep into the red. liberia's own minister says the markets are going through a natural rebalancing during a chorus of ministers tame down expectations at an opec meeting in had vienna. deep quarter profit expectations on the back of strong sales and aggressive cost

savings. home builders see red after nationwide house prices show those remaining weak in may. a warm welcome once again to "street signs." we have a jam packed show for you today. we did see the markets posting gains in europe for the month of may, but at the back end of the session yesterday, it reminds you sentiment remains -- at this moment. beefed pmi out, as well. this was the manufacturing pmi this morning. we have manufacturing pmi just down to the last few moments and that came in at 51.5. all in line with expectations but a touch shoft softer on what we got through the april

reading, too. not helping market sentiment as you saw down .2% for the stoxx europe 600. let me give you a look at the individual markets just to give you a sense of what's going on here. actually, the german market did start out the morning lower than the rest. it's gained a bit of a ground back in the last half an hour to an hour or so. but we do seem to be holding just slightly below that flat line this morning, just to give you a sense of the sectors that are dragging us down here. we've got basic resources off around 1.5%. we've got the banks and the autos under pressure, as well. and i think it feeds into the news that we got overnight in asia in particular, too, for the pmis. china's the activity appeared to stabilize in may after the official pmi remained steady at 50.1. the pmi data shows the sector contracted. so we always get that contrast

between the official data we get from china and the more private sector data which continues to show a contract yn. then we move on to japan. the pmi data shows factory activity shrank at its fastest pace in three years. today, negotiations with international lenders, 50 points from agreements including the demands to pay out the top out benefit to pensioners. >> yes, indeed. we spoke to the finance minister of portugal saying give it time, let the reformer take place. two ed if hikes might be problematic for a country that's struggling with growth at the moment. right now, i'm joined by the vice president of the european

commission to continue this chat on greece and on growth, as withel. welcome. it's good to see you this morning. >> morning. >> lenders are being told they can implement some of the extra measures. they're being demanded by greece in addition to push forwards with the release of money. this could include bad loans and pension reforms. we don't know a lot about the details so far. you were present at the last round of meetings. what's your thoughts on the direction we're headed? >> indeed, important agreements were reached on the 24th of may, basically agreeing in principal to the closure of the first avenue and disbursement of the next branch to dwrooes. but, of course, it's subject to greece fulfilling all the conditions and kwlemth all the necessary prior actions to unlock this second tranche.

and now, we're making progress on this. yes, indeed, there has been some back force, but i would say broadly things are on track and i think it's still very realistic that we will be disbursing in the nearest time. >> i was just speaking to the finance minister of luxembourg about whether or not the imf is going to remain on board in these talks. do you fear that the imf might step off the train? >> well, this agreement was also concerning imf where it's clear that imf management stuff is ready to recommend a new program for greece to the imf board by the enof the year. but this was a subject that left sustainability for me for hours. so imf willing and has to be part of the program piece shown in this agreement.

>> do you fear that we could have to revisit a potential breaking up of the eu, that we're even more so than the potential brexit, as well, but we could have to see especially that coming from periphery markets. >> y saw you are having that in 27 out of 28 eu member states with the only exception being greece. but also in greece successfully contacts that revenue now, implements all the prior actions and greece can return to growth in the second half of the year. so in this case, there is no need to discuss so much. >> oh, and i think we just lost

louisa there. we let her continue that interview.. coming up on the show, she will be talking to catherine mann of the oecd. if you have any e-mails that you want to send into the show, any questions he want me to ask our guests, please e-mail us. as always, you can tweet me, spts@sgldz jchatterley.com. to pump or not to pump? that's the question. we're live in vienna ahead of the highly anticipated -- really, is it -- opec meeting. stay with us.

welcome back to street signs. >> hi, jewels. all the indications are suggesting a suspension of the sales hike tax is going to be confirmed here today when prime minister shinzo abe addresses the nation around 6:00 p.m. local time in tokyo. so the markets seem to be rather unimpressed by the fact that fiscal consolidation is taking a back seat here. fitch, the ratings agency, says it is watching and waiting and needs to see more detail on what this proposal says, exactly. the markets not like this news that physical consolidation is

taking a back seat. down by 1.6%. nikkei, one of the underperformers today. dollar/yen, down sharply, as you can see. we're off by about .6%. just about holding for dollar/yen. so what this tells us is the japanese economy cannot handle this. the proposal will take taxes from 8% to 10% by april 2017. so under in proposal, it will be delayed the by about 2 1/2 years, incidentally, just before they host the olympic games. the ratings agencies have made it very clear that they need to see some fiscal discipline in japan to get some clarity and get some positivity on the

credit profile in japan. debt to gdp stands a staggering well over 200% of gdp. so there is a lot of work that needs to be done here. this is a step not necessarily in the right direction if this tax hike has been deferred. what it tells me is the japanese economy can't handle a tougher tax burden. elsewhere in the market, there's a lot of risk vex that we have to take into account. julia, back to you now. >> thank you so much, sri. bruce hempfill has suggested a pay cap at 1,000 percent of salary. hemphill's salary is currently at 100,000 pounds. hsbc is reportedly slashing

a series of senior level jobs in its investment banking unit. the cuts started in london, but are likely to spread to offices worldwide and could hit dozens of senior roles. europe's biggest lender said last year it would put one in five jobs on the chopping block in had an effort to reduce costs as it grapples with poor growth. the uk house data rose 072% on the month and 3.7% year on year. jemma jones us now to give us all the details. run us through the numbers. >> so what we saw was not surprising at all. we saw annual house price growth was 4.7%, which is a full percentage point down from what we saw in march. but there was the massive ramp up to get in ahead of their sales tax introduction on the first of april. this is exactly what we would expect to see now.

>> this is concerns about possible prexit, because that has to be feeding into these numbers, surely. that's the question. how much impress going on to kwaus not the only change. we had people coming in the next day to make it less attractive in terms of mortgage deductibility changes. we also have changes in regards to ownership and official owner registries which will be coming in later this year, as well.. how much is the volatility and due to brexit? >> i know you are talking to brokers in this industry all the time, as well. i've read a number of articles talking about the number of people adding in great clauses now to void the contract if we brexit. just how popular is that? you've got the prime real estate purchases going on in london.

>> more importantly what we're seeing is the global transactions at all. people aren't moving ahead, really. that's why it's difficult to discern what is actually happening in house numbers, house price numbers, rather. because given the transactions, we have very little data to work with. >> brilliant. gem ma, great to talk with you. the german oil minister says oil markets are moving in the right direction, however he doesn't want to speculate with the oh mechanic meeting. he added oil producers don't have the same urgency they had in the doha freeze meeting. we also saw that weakness off yesterday's session off the back of the uae minister says he's pleased with what we're seeing in the markets, the former head of nigeria and is mpc is the front-runner to become the next

opec secretary general. hadley is in vienna for the next opec meeting. talk to me. do you think they come into this feeling pretty vindicated since the $30 lows and they did nothing to address the supply gut. >> certainly, it seems like a brave new world, at least what we've heard over the last 24 are ministers from venezuela. i think it's interesting, usually we would hear from them sort of middle of the road and toward the end of the meeting. and it seems as if with the departure of the former saudi oil minister, all voices are coming to the table here, except, of course, for the new oil minister from saudi arabia. we haven't actually heard from him as of yet. i want to bring in our guest, bob mcnally. talk to me a little bit about what we're anticipating from this meeting. we're hearing all these different voices, venezuela, uae

kb as well. are we going to hear any breaking news? >> i don't think so. i can't remember a meeting of opec when expectations were so low. iran has made its point, it's almost back. saudi arabia has made its point, it's not going to freeze without iran and it's not interested in managing the markets short-term. crude is at $50. they think it's going higher. we've had a lot of involuntary disruptions from nigeria to venezuela. so the wind is at their back. i think they're going to enjoy the spring in vienna. we have a new minister here. he's been making the rounds at the opec meeting. i think it's going to be a pretty mundane meeting. >> so a lot of low expectations, i think it's fair to say coming into this meeting here in vienna. but question for you in terms of what's happening in the gulf states. it's $50 now, but they need much more than that.

talk to me a little bit about the expectations saudi arain na has. >> well, i think the important thing about how the saudis look at the oil market is they are -- and i think rightfully so -- concerned about the next boom in prices to come as the bust we're in now. they are concerned that the price drop we've seen and the negative impact it's had to investors, not only shale but elsewhere, is sort of sowing the seeds. so as they look forward, i don't see i don't think they see a problem with whether crude will be $80 at their ipo. i think they're more concerned about it causing macroeconomic problems. back in the sort of boom/bust cycle, they were very concerned about that. >> talk to me about where the americans are at this point. are they messengers are going to

do is they are going to do that. >> they've been burned twice been twice last year, they thought we had seen the the bottom. prices are risen to see 60 only to collapse again. we're only one macroeconomic thunder clap, one interest rate rise ahead of another pullback. but they're ready to go. if we see crude go into the $55 level, $60 level and certainly in the permian and other places. i think they're getting confident that the bottom is really occurring this time. the real question is how quickly can they get labor back? the very well trained crews, they're working for uber and construction. what is it grog the to cost to get those folks back? >> talk to me about the geopolitics here. a lot of speculation surrounding

the saudi/iranian relationship. >> you happen, i think within the opec context, they're going to be polite. i think we'll see politeness here. but broader, it is hard to overstate how bad the relations are between iran and saudi arain na. it's all about what's coming early next year. it's no secret the saudis and others are rooting for mrs. clinton. a lot of anxiety about what donald trump would mean. i think the obama administration is pretty much a very lame duck thpt. >> julia, back to you guys been. >> so the bottom line is, of course, it's a nonmeeting.

>> certainly i think that in terms of breaking news, probably not going to see much coming out of here, but at the same time, it's like everything else when yoosh dealing with saudi arabia and the other gulf states. it's all about the long game, isn't it? >> for that reason in particular, very important. i like the idea of not wanting the volatility, even if that means oil at low prices. great point there. thanks, hadley. this is the first time the japanese telco has sold alibaba shares since it first invested in the commerce company in 2000. softbank shares are trading up on the news while alibaba shares fell in extended u.s. trade. toyota is in lait stage discussions with google to buy two robot development conditi s

conditions. a $1 billion budget from the toyota resurge institute is expected to continue to financing the sale. now, dutch super market beat expectations composed of jurndz lying profits of 4.9 million angel. earlier, the ceo was quizzed about it. >> we are preparing ourselves very well already. so we are, in a lot of cases, really ready when the excitement hopefully of the merger close comes in and everybody starts working on that. so there's a positive note on that that the timing, which has given us in this case from the competition authorities mainly as a -- as the length us in the

process. people in our business are focused on running the business today and they are ready for, of course, when the excitement of the merger closer there and we get the moment to come together. >> patrick from raba bank is now on the line. you are overweight with a price target of $24.5 and an eps target of 118. anything change after looking at these numbers? they are a business lower than expected. >> i think we've become a bit part whereas i think in previous quarters, it was more or less flat. >> two-thirds of their business is in the u.s. the margins, but, you know, as

they pace. pe place d her the competition s very fierce and there's a new form coming up both on the high end and the lower end. so i think what's filed today is still about, you know, focusing on saefgs and re inveinvesting savings into a better store and better price proposition. ite been virtually in front of the world. i'll be right on top of that trying to be more -- with newer formats as well as in itonline. they said that the wrong track with the merger will create $500 million worth of synergies. is that what you're determining to? do you think there's further benefits here.

>> we belief it cased a relatively cautious figure. albeit that which i think is very good is this indicated to be a net figure. so it's going to feel down to the bottom line instead of all kinds of previous cost savings. and more or less fully invested so it did not go to the bottom line. but we do expect a bit more. it is a bit early in the game and management, obviously, is cautious with regard to the guidance they are showing. they want to beat expectations. >> if we look at the merger with ahold, the crash free generation is somewhere above $2 billion euros. look at the balance sheet, they look underleverage dollars. do you expect to see further cash returns for investors here? it looks like an opportunity, perhaps. >> clearly.

so i think retail is a tough industry. cash is very strong. as is a willingness to hand out or pay out to cash generated to shareholders. i personally believe that given the focus that management will have on again rating synergies for the coming two years, they also will likely see a high amount of cash. do not forget ahead of the completion of the merger, the outline shareholders will see $1 billion in cash return which is, i think, very good. >> patrick, great to talk to you this morning. thank you for your invite. let me give you a look at the european markets this morning. we've been under a bit of pressure since the open this morning feeding in from the negative sentiment that we saw in asia. we had weaker pmi data from japan.

china, the professional sector weaker, again. we're pushing to the down side here in the ftse 100 lower by .4%. the basic resources set to stwb as i guess you would imagine here, the key underperform every down more than 2% this morning. even as the text ra green. it just give you a sense of what's driving this oil and gas 8% to 110% as we head towards that nonnonopec meeting. we're going to take a quick break. but check out world markets live which is our blog which runs throughout the european trading day or more. we're back in two. stay with us.

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welcome to street signs. nigeria's oil minister says crude markets are going through a natural rebalancing, joining a chorus of ministers playing down expectations for the opec meeting in vienna. super market sweep, dutch retailer ahold beats quarter profit expectations on the back of strong sales and aggressive cost savings. and uk home builders say red after nationwide data shows growth remaining weak in may. so we've got uk manufacturing data out this morning. it's come in at 50.1. so a touch better than expected.

actually, last month, we dropped into contractionary territoryport first time in three years. so, actually, that better than expecting. we are speccing a gain, all the prexit concerned ahead of that vote on june 30. a quick look at sterling, a touch weaker, but relatively unmoved overall on the session. the oecd is anticipating continued weakness in the global economy recovery for the next few years with gdp growth predicted to rise by only 3% this year. in its latest economic outlook, the organization warned this a brexit would, quote, improve growth in europe and elsewhere substantially. >> the report in the second chapter is about the big issues facing the global economy and individual economies and it's the theme of this year's summit. it's the productivity decline on the one hand and inequality on

the other. what does that have to do with the forecast, which seasonal kind of a two-year horizon? the issue is that we are currently in a low growth trap. global growth is projected to be 3% this year, same as last year. now, isn't that good enough? and no, the answer is it's not good enough. at 3.5%, 2% growth, we will not be able to give jobs to the young people and we know that the earliest career jobs are the ones that make the difference for your lifetime. so currently, the youth, who are unemployed, bhor not in training, these people are at risk for permanent damage to their careers. on the other hand, 3% growth is not good enough to make good on our promises to the old people, that they will get their pensions paid and health care. so currently it's a low growth trap associated win equality and low productivity growth. this is damaging to both the youth and to the old people and

sandwiches the middle class right in the middle. >> as you point out, we're eight years on from the financial crisis. so what needs to be done to try to get out of this low growth trap? >> the reason why we're in a trap is because there's insignificant demand. this investment says i'm not going to invest and hire people and give them wages because you don't see any demand out there.. since they done gent rate wages, in fact, it isn't. that means policymakers need to step in. it's a three-prong strategy that needs to be done comprehensiv y comprehensively.. we need to join the monetary policy with fix strategies to boost the economy or boost inflation. but that hasn't worked or worked as well as it needs to work. so we need to bring in fiscal policy. we know countries now have the

opportunity to borrow at very, very low interest rates. so they should do that, engage in the types of infrastructure projects that they put on hold lort after the eight years. that's now enough, we have monetary, fiscal, but the third element is structural policies. and is, again, different countries have to do different things, but all countries have to look seriously at the state of market competition. the churning in the business environment, entry and exit and innovati innovation. >> what will the potential economic be of a bexit? >> we look at brexit both in a short-term context and a long-term context. there's no good news here. in the short-term, we will be looking at one percentage point or no in rate of decline in economic activity in the uk. that's principally in the short-term coming through volatility and financial markets. it's not just the uk that there's the brunt, of course, of

a brexit. it's also the eu and other ur r euro area economies. euro area economies could be hurt by as much as 75 basis points of gdp loss. short-term mostly through financial market volatility. but the damage in the long erp term is greater because at that point, the divorce is going to take two years. of those trade issues. if we look tat point loss in gdp. >> louisa, there seems to be a lot of concern there, whether it's volatility in the markets, whether it's a lack of productivity, concerns about fiscal policy and not only monetary policy. essential have we heard any

optimism, peeg saying, hey, this is a region that is outperforming? >> well, catherine mann was a real pressure to talk to, i have to say. very bright, great outlook in terms of the actual report that they published. they're not sounding too optimistic. there i'd have to point to the finance minister saying we're doing better than we were in the financial crisis and we're heading in the right direction. a lot of the fountain in terms of evaluating whether or not they're scheduling. we're eight years into the financial crisis and we could have hoped for better growth than what we've seen so far. interestingly enough, on the issue of a potential brexit, i spoke to her about that afterwards, as well. and she was saying that the lead campaign that britain will be

able to sign with asia or canadas. and she said show me the people who are showing up to sign empty grade deals. the other point that she made with regard to trade is that it typically takes around five years in order for a trade deal to be pushed through. so time will be passing and in the meantime, you could risk that a lot of the multi nationals or a lot of the big financial institution that's currently choose to have their so-called european headquarters in london, that they'll choose to go to, for example, ireland, instead. they'll feel that ireland is closer to the aus but they chose to leave london and to opt to find their headquarters elsewhere. now, labor income has grown less than productivity. and looking at some of the

demographics with regards to unemployment, 6.2%, that's the projected fall in unemployment that the oecd is looking at by 2017. but 38 million people will still be out of work. that's almost 6.5% million more than before the crisis. so we're heading in the wrong direction. and a very pertinent observation she made, this hardship has been on the old people and the young people. loads more for me to will at here this average. >> thank you so much, lou. led us take a look at the mixed closer. losses yesterday for the dow and the s&p yesterday. the nasdaq pointing gains of 3

much 1% gains. the dallas fed following suit, so that raises questions about that had ism manufacturing number that we get later on today and investors are certainly watching that, as uxz. u.s., 22 points lower for the dow, relatively unchanged b between the u.s. and the son yeah, off that will talking about the morning. here team says clinton has led him. pauls show the presidential nominee donald trump lashed out to reporters who question the amount of timing of donations he made to veterans. nbc's tracy pots is in washington. good morning. very early morning. where do you want to start, the

democrats or the republicans? >> well, let's start with neither the democrats nor the republicans. this is sort of interesting. whoever wins between clinton and sanders, we know that in the fall this is not going to be just a two-person race. now we've confirmed others who are jumping into this fall. and the question now becomes could he siefon off votes from bernie sanders? he says his plate form is similar to sanders. and what's been mild about amongsted conservatives, we have now confirmed that national reviewrier -- donald trump says he's not worried about any of this, you're not going to win. but the question is, could they siefon off votes from either side to prevent a democrat or a republican from winning.

so that's really the big talk in politics about these two sets of independents who are either confirmed or who may. >> you remember 40 groups were laid out that he says received more than $5 million in donations that he raised. and he also talked about the fall campaign. meanwhile, in california, hillary clinton there been there tomorrow. bernie sanders still talking about the system being rigged and unfair because she has so much more superdelegates and as you points out, many of those superdelegates signed on to the clinton xap before the vaund even started. >> exciting for an empty to run against donald trump. but they risk splitting the vote and pd hag it to hillary clinton by default. >> or vice versa with the

libertarians possibility splitting those sanders who are suppo support. so these tlied period issues could cause problems. >> have a great day. north korea is backing donald trump as president. the propaganda website called the productive republican nominee a, quote, precedent presidential candidate. while the mouthpiece refers to him agency a wise politician and, quote, not screwy at all." the website called hillary clinton thick headed hillary 37. come up on the show, amazon says 1,000 employees working to develop artificial intelligence,

but they've only scratched the surface. find out bezos sees the feature of the company. taus.

shares of under armour fell after hours. boeing has secured a defense contract with the united states according to the pentagon.. the agreement asks providing tail kits to improve gps to

accuracy accuracy for bonds. shares are down 12% in the last 12 months. goldman sachs has responded to shareholder concerns about the division. speaking at an investor summit, gary cohen said the unit's average return on equity should not be cared to the lenders average overall. he blamed the low growth and low rating environment for the slide in profit. tuesday were a lower close, nasdaq cloeding the month up 376%, the s&p 1.5% and the dow clung on to gains finishing up 0.1% posting its fourth positive month in a row for the first time since 2014.. if you got all that, then you're smarter than me. if you're joining us now live from los angeles is jimmy. great to have you on this morning. so even with the rally that we seem to have seen and we posted gains in may, sentiment feels very fragile. fannie mae go away didn't work.

do we see a june swoon? >> well, i don't know. a lot of investors are worried now that we might have a rate increase, probably more likely in july than june, but will we have a decline? i'm not really worried about the rate increase as much. i think it's a sign that the fed believes it's helping the u.s. economy and i think it's good in the long-term. >> what's the risk that the market then starts to get volatile again and actually to back off from it? >> yeah. you know, we think that there's still up side in the stock market in the u.s. here. maybe sendsing some new highs. if earnings don't follow, we're up for high range in the p ratios. preparing our clients and investors that we could have some volatility. we haven't had a bear market

since 2009. so we're getting our clients prepared for that, but also taking advantage of some of the dips we've had and some of the buying opportunities to get fresh powder and some of the people sitting in cash will work. >> how do you prepare clients for that? even if you see the markets posing gains, the volatility throughout the month is tough to trade. >> yeah. i think time sg very, very, very difficult. but if you have cash and you're looking to invest and you haven't been investing before, i think you would be foolish put it all into work at once. moving into the market over time, taking advantage of the dips i think is a good idea. we're kind of at the high side of the trading range. those clients need to be prepared for volatility and if the market goes higher from here, if earnings don't follow, clients and investors need to be

prepared for something that could be more meaningful in terms of the decline than what we've seen in the past year on so. >> if you look at the international equities, to what extent is the brexit vote going to keep you sidelines in terms of risk? >> well, we have annelcation to international equities, of course, and emerging markets. but we're a little cautious in interim in the short-term with the brexit vote. i think it could cause a lot of distu disturbance, probably more in the short-term than maybe long lasting. i heard somebody you were interviewing earlier thinking that it could be a big problem, more sustained. for us, we think it could be more of a short-term issue. but we want to see how it resolves itself and from there on, we want to have exposure to international stocks. a lot of companies over there as exposed to -- excuse me, as just concerning -- excuse me. limiting ourselves to this u.s. equity. so investors need to have exposure to equities, but in the

short-term, watching to see what happens in the brexit in june is very important. >> what specifically should investors be looking at at this moment? >> well, we think we're somewhere in the u.s. somewhere between the mid to late stage in this business expansion. it's kind of long in the tooth, but removing things such as staples, consumer energy. a lot of investors are kicking themselves that they didn't buy oil when it was trading below 30. but i think there is opportunity still to invest in energy. but i'll tell you, one of the things that we're thinking about the for the long-term is that in the u.s., projections for returns in u.s. equities are not quite as good at what people are uses to. >> jimmy, quickly, we had a guest on yesterday telling me he's holding 50% of his portfolio in cash or cash equivalents. what portion of your portfolio is held in the same?

>> well, we have different types of portfolios for different types of investors. those that are tactical projected are about 10% more in cash than we usually are. but for most of our clients, we're in a normal position as always. for the taxability invery fasters, we still have a little bit of cash. we think it's smart to have this cash on the sidelines. if you're trying to invest, dollar cost averaging taking advantage of the dips and making sure that you do it in a strategic way is a lot smarter than putting it all in right at once. >> jimmy, great to have you on this morning. jimmy lee, ceo at wealth consulting group. jeff bezos says they're scratched the surface. will ford has all the details. >> good morning, julia. technically, it is gathering in

california this week for the recode annual code conference. last night's headliner, jeff bez bezos. the amazon boss is pretty bullish on it. >> i think it's gigantic. i do. i think machine learning in general, artificial intelligence, this -- it's probably hard to overstate how bill of an impact it's going to have on society over the next 20 years. so it is big. it doesn't mean phones are going to go away or anything like that. it's not like voice interfaces are going to replace screens. >> bezos says amazon has 1,000 people dedicated to its alexa voice powered platform and spent years on it before bringing it to the public. amazon's echo has been performing well. as for our future projects, za zoes hinted at amazon getting

into the wearable space. >> it's a super interesting market. i obviously can't talk about our future road map. but, again, i think that's also in its infancy. i think you'll see a bunch of different products be successful there, different functions a and -- but i don't think you've seen the tip of the iceberg yet. >> and we'll have much more from the conference throughout the day. >> thanks so much, wilford. japanese markets closed lower as prime minister abe prepares to delay his sales tax hike. we have all the details. no, she's not there. well, we'll try and get back out to her later if she gets ready. but this is what we're waiting for, the press conference for the japanese prime minister to discuss whether or not he's

going to postpone that sales tax hike. the rumor earlier was that he was going to do so for 2 1/2 years. if we get makiko back, we will hear from her. let's take a look at the markets. down .6%. we've got the xetra dax now. initially, or with about an hour or so ago, it was in positive territory. now it's to the down side. the real leader is the basic resources sector dipping into negative territory. if i can get the basic resources up i was show you that off the modern 2.5% this morning. private sector significantly weaker. mainland chinese equity markets have been given a boost by goldman sachs, report upgrading the odds of asia in being in included to 70%. bob pa sisani has the details.

>> msci is completing its chinese stocks on inindexes. the first half of the inclusion was done on december 1st. the second, june 1st. this means heavy loss. msci will soon announce whether it includes chinese mainland china. now, this is a big issue because china's two mainland stock markets are collectively the second largest markets in the world after the united states. now, the problem is, a lot of fund managers do not believe mainland china's stock market are ready for prime time and some are pushing back on msci to put off a decision on this. one problem is the endless trading halt.

this is a big problem if you're an index fund or a mutual fund. how do you meet a redemption? to address this issue, the shanghai and shenzhen stock exchanges have said it will look at the time it can be halted. it's down to three months maximum. whether it will be enough to satisfy msci, still not clear. an announcement is expected by june 14th. back to you. i'll give you a look at the asia market performance overnight. the nikkei 225 drawing most attenti attention, off 1.6%. on monday, i was talking to you about the dollar/yen rate being above 111. i can tell you today we're back down below 110, 109 is.85. the level there. so yen strength not helping the nikkei 225 and the exporting stacks there in overall a

broadly negative says. let me give you a look at the oil price, as well. that's certainly not help us in euro europe. the uae comments yesterday, the minister there saying he was optimistic about the correction we're seeing in oil higher.. so not much expected from that meeting.. a quick look at u.s. futures, clearly have a few hours until the markets open. as you can see, they're tilting further to the down side following the negative sentiment that we see in europe today and that's it for today's show. it's been a bit of reek one at times, hasn't it? thank you for staying with me. "worldwide exchange" coming up and i'll see you tomorrow.

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good morning. happening now, oil prices under pressure ahead of this morning's opec meeting. selling shares is, alibaba's biggest shareholder is dumping at least $7.9 billion of the stocks. the reason behind that decision, coming up. and the future according to jeff bezos. the amazon giant speaks out on his company, artificial intelligence and the race for space and much more. it's wednesday, june 1st, and "worldwide exchange" begins right now.