hello. welcome to "street signs." i'm carolin roth these are your headlines ecb president mario draghi boosts the euro to a 12-month high after hinting that tapering could start sooner than expected the vice president vitor constancio says market conditions must be right >> needs to be sure that when we get to inflation close to 2% is a doable situation, and self-sustained situation that can go on without a high degree of accommodation that we have now.

shares of nestle open higher after the swiss food giant launches a $20 billion share buyback and says it will focus on capital spending, just days after third point's dan loeb pressured the firm to shake up its structure. maersk shuts down a number of systems after hackers strike in another large-scale cyberattack targeting the shipping giant and several other corporations and government institutions across europe and the world. good morning it's wednesday, i'm glad to be back in the seat hope you enjoy the show today. we have a jam packed show for you. let's kick things off with a look at the heat map the stoxx 600 is down by 0.8%. a lot of weakness extending yesterday's losses the stoxx 600 at this point is at the lowest level in two months we saw tech stocks

underperforming in the u.s. and a similar thing is happening in europe this is also on the back of the renewed cyberattack. we'll spend more time talking about that during the show oil and gas also underperforming given that prices have dropped given the surprise increase in api crude inventories. what you're seeing is that we're seeing a lot of red across the board. xetra dax off by 0.8%. ftse 100 off by 0.6. when it comes to the sectors one by one all in the red so you're seeing indiscriminate selling across the board food and beverage holding off a bit better, that's the nestle effect retail not doing badly technology really yend pu underperforming today off by 1.4% >> the biggest market story in the last 24 hours, the euro soarsoar ed to a 12 month high against

the u.s. tlar aftdollar speaking at the ecb forum in portugal, mario draghi suggested the bank was able to adjust the parameters of its policy instruments to accompany the recovery he maintained any changes should be gradual as considerable monetary support is still needed annette has been listening to those comments from mario draghi as well. he knew that he was going to cause a market reaction i think. did he really let the cat out of the bag? is this it when it comes to a more hawkish tint or turn by the ecb? >> the opinions are really divided whether -- as to whether he wanted that hawkish market reaction the ecb themselves are saying that nothing really has changed. of course they're preparing the exit in baby steps when it comes to the assessment of the economy, the assessment of inflation, nothing really

substantially has changed from the meeting some two weeks ago looking at the speech, the biggest highlight is that we get more of an understanding of their asessisessment of inflati where the sluggishness really comes from that unemployment is probably a bit higher than the official statistics are showing us. that also we are seeing wage developments being subdued everywhere in the you'eurozone and this has to change that is the key -- one of the key messages from mario draghi's speech yesterday but having said that, yesterday we also spoke to the vice president of the ecb i asked vitor constancio whether that was material change in the language of the ecb yesterday, and what is the true assessment

of the slack in the economy. take a listen. >> it's very difficult for any central bank to have a -- a very firm view on the slack all central banks struggle to interpret where exactly is the situation. in central banks we use many varibles to try to gauge what is the slack, this difference that is in the economy. what we can say now, is that what we see what we observe is that domestic factors of inflation, starting with wage and cost developments, and then also price decisions are not responding the way we would expect in view of what are the more common estimates of the slack. so, we have to ask ourselves, are these measures of the slack of the economy correct

should we look to other variables from the preside variables? the president pointed the measure of the slack in the economy, the unemployment rate is now 9.3 according to the normal national standard of measuring employment if we adopt as in the u.s. a broader concept of employment, which in the u.s. they call u6, then unemployment in the u.s. is at 18% compared to 9%. which would imply the slack is bigger than we say could judge some time ago. that being the case, it justi justifies fully what the president said at the end of his speech, that we need persiste e persistence. if we want to bring inflation to our target of below but close to 2, we have to persist in the

type of monetary policy that we have been adopting >> but looking at the market reaction, the market took the speech quite hawkish concentrating on the optimistic comments about inflation, the economy, perhaps also the political talewinds. so is the market right are they more hawkish than before >> it's always very difficult to interpret the reaction of markets. i will not try to rationalize or explain the reaction of markets. but i would say that the speech of the president, if one reads it completely, it is totally in line with the statement we had in our monetary policy meeting, the speech that he also made at european parliament, which -- and here it was along the same

lines. he recalled that domestic drivers of inflation measured by the underlying inflation are still subdued, that we need to be sure that when we get to inflation close to 2%, it's a doable situation and sustainable situation that can go out without a high degree of accommodation. all these conditions reaffirm them, and then talked about the need to persist, and about the need to be prudent in talking about premature withdrawal of stimulus >> the biggest takeaway from that speech is "a" inflation is only temporary, so low he's optimistic that within a two-years time horizon we get to the inflation target of close but below 2% he has not said that literally like that, but he said that

within a time horizon of two years, the temporary low inflation should have gone i think that's the key message here he also said the ultra loose monetary policy stance is needed in order for inflation go back to that target so i think the market is overdoing its reaction to that exit speculation from the ecb. the next message from that speech is that they will withdraw, if they are going to withdraw the stimulus only very slowly because that, as i said, the stimulus is needed in the view of mario draghi and his team in order to get inflation back to the target so, probably we'll hear, of course, an update from them during the course of the second half of this year, what they are planning on doing with the qe program drawing the next year. because it ends officially at the end of the year. if that's going to happen as soon as september, i'm not sure.

with that, back to you >> thank you very much for that. you raise a couple of good points i want to pick that up with steven gallow. annette said that the market reaction was overdone. do you think it was merely a knee jerk reaction do you think that 1.4% move yesterday, another third of a percent being tacked on today is overdone >> from a price action perspective i would say no i wouldn't be a euro seller here if anything i would be a buyer of euros on dips and wait for levels higher on euro/dollar before thinking of selling a number of good points were raised in the previous segment you have to put the euro move into context it's month end quarter end these are thin summer markets. the dollar has been weak if you look at the front end of the euro curve, the oas market, it barely moved yesterday. so effectively what the oas

market is saying is what we expect for normalization of ecb policy this year, we're sticking with it. so the euro move was big in that context. at the macro level, the fx -- the surge in the euro, i think, it doesn't properly weigh the political and economic risks in italy. for instance, it doesn't properly weigh the fact that the ecb will be in a more difficult situation if a strong trade weighted euro starts to bear down on price pressures. so i think you need to put things into context. but to your original point, no, you would not be a euro seller here >> though it does highlight the difficulty of the ecb trying to phase in the exit of its ultra loose monetary policy, which has been in place for so many years. markets are addicted to it they want it to stay in place much longer. we know it will come to an end it highlight there's will be market durations here.

something the ecb was trying to hand handle >> they will get some help, a number of central banks, key central banks are moving in the same direction that we've seen the fed moving in for about, well, two years now or so. monetary policy is generally moving in the same direction as most central banks, moves in exchange rates should be relatively limited you won't see temporary moves outside of those bans. they should be more limited than they otherwise would be. >> at what point do you think the ecb will push back against the unwanted tightening from the exchange rate? 114, 115, 117 before the ecb becomes too concerned about what the strong exchange rate means to corporates and the economy in

the yurdz? eurozone >> i think the level of the euro will have a bearing on draghi's tone and the language shifts or policy shifts we get with the opening statement. that's what i would say. the euro will have a bearing on that stronger euro, you would expect less aggressive language weaker euro, which doesn't look like it will be the case, you might get a little bit more hawkishnes hawkishness. >> one key point, you mentioned before is the weakness of the dollar recently. we're seeing the dollar at a seven-month low when it comes to the dollar index there's a lot of questions about policy that could or could not be enacted by president trump. will the dollar ever retain its status as the great big currency which will only drive higher because we see the fed normalization? because we see reflation trade under donald trump has it lost that status? >> the impact of fed

normalization on the dollar has been waning. it's been waning for months. we're probably at a point where unless the fed for whatever reason communicates with its projections, a faster pace of tightening than what's priced in, it's not going to have an effect going forward what the fx market is waiting for now is the extent of the debate on corporate tax reform in congress. >> you say there's a 40% chance that this is never going to happen >> the debate will happen. our view previously has been that the dollar will rally over the course of q3 as the debate starts with each day that passes t looks like the risk is that the debate may not even happen it will get pushed back. i would say there's a 40% chance that once the debate concludes nothing massive comes on u.s. corporate tax reform >> before we let you go, what's your forecast for euro/dollar by year end >> i would say the mid one-teens, but our one year view

has been revised up in april/may, so 1.17, 1.18 >> all right thank you very much for coming in steven gallo from bmo cap cal m markets. bnp paribas says it has been hit by the cyberattack, and it is taking measures. coming up, food giant nestle plans to buy back $20 million of its shares we'll talk about what's next for nestle after activist pressure is on.

welcome back lots of corporate stories to tell but this morning. the dutch government has cut its stake in abn amro. it was partially reprivatized by an ipo in 2015 and dutch medical equipmentmaker philips announced a 1.9 billion euro take overof spectranetics. philips is offering shareholders 38 cents and 50 cents a share. the deal is set to close in the third quarter of this year. shares at nestle are trading higher after the company announced a 20$20.8 billion sha buyback days after third point went public with a series of demands. third point's ceo daniel loeb

accused the company of being stuck in its old ways saying share repurchases are a particular attractive offer at the moment nestle says it wildiscuss the buyback. >> do you think nestle would have done the buyback without the pressure from third point? >> i think so sure i think the share buyback has been in the works for nesscy and several board meetings were needed to come to such an outcome. then, of course, you need approval to get share buybacks, therefore to get the approval earlier this week and they made the announcement last year this is not to seem -- i don't think at that point, you get the credit for this buyback. >> i guess it was a coincidence then a lot of people claiming nestle

would have moved in the right direction, the direction third point wants it to move into either way with or without the pressure from third point do you agree with that view that nestle was essentially on the right track? they didn't need this activist investor to come in. >> absolutely. i totally share this view. you have to see that in the context of the new ceo, mark schneider, who has been meeting with many investors, long-term shareholders of nestle i think what's new versus the previous management is that mr. schneider is very shareholder friendly he kept listening to what investors are saying of course taking some inputs in his thoughts so i would rather see that as feedback of several shareholders than just third point's. >> one thing that dan l oshg eb loeb wants third point to do is set a

margin target. nestle hasn't done that yet. do you think it makes sense for nestle to do that, even if those targets are unobtainable and a long way out >> whether they make sense or not, the way of nestle is typically without investing in expre expresso agusto, we would see this, and whether they set targets per se in a three year or four-year period. >> some people argue nestle is too big. too much of a tanker i covered this company for ten years. during the credit crisis, the financial crisis, the eurozone debt crisis it was good because it was also steady now i see we're seeing some cracks starting to appear. do you think this is a firm that fundamentally can change do you think it's actually too

immobile do you think it's too big? >> it is big i would agree. i think they started now to think about that that's why they started to review some businesses do not forget nestle is not spectacular in announcing some news that they've been divesting many businesses in the past years, close to 30 when you look at last year and now the u.s. confectionary, they are starting to move and divest in underperforming businesses. as we said last night, the willingness or locating capital into high growth product that there is >> do you still see value in shares of nestle they've risen 17% year to date, a major expectation overhaul of the business you still have a buy rating on the stock. tell me why you think there's value in the stock >> i think further announcements down the road which are likely

to fuel billions for nestle, then value creation acquisition down the road. i'm sure mark schneider will deliver on those targets >> all right jean-phillipe, thank you very much for your time britain's financial conduct authority wants a major shakeup of the asset management industry in a new report on the sector the fca calls for changes to improve transparency and value and hon for clients. gemma looked through that report it's pretty damming, isn't it? >> it is they're looking to increase the amount of accountability facing fund managers and secondly improve the opportunity for investors to understand what is actually going on in funds that means understanding the total costs better and understanding the funds objective. overall this means improved disclosure and transparency from fund managers. >> that actually going to happen we've seen similar fca reports

before, competition coming from the passive industry yet transparency is not improving, maybe the fee structure is not improving as quickly as investors would want. is the asset management industry actually changing? >> look at how long the low yield environment persisted, and the gloomy outlook in many sectors for returns, you think there is more and more impetus to get something happening here. particularly called into criticism certain areas where phase is easy to eliminate or recognize where they're overblown. there's a lot of focus on intermediaries investment consultants, they believe they will persist with a review into that and they don't believe retail intermediaries offer good value. we have an example of certain funds which they say plea tmirre active funds but they mirror massive funds. they said around 109 billion pounds worth have been

identified in the uk investment management industry which is doing that so across the board different things will need to happen but there's easy areas where things could improve for investors. >> gemma, thank you very much for that we're seeing that asset management stock trading somewhat lower today in london on the back of this report we'll go for a quick break check out world markets live, that's our blog which runs throughout the european trading day. we'll be back with more "street signs" in two.

hello. welcome to "street signs." i'm carolin roth these are your headlines ecb president mario draghi boosts the euro to a 12-month high after hinting that tapering could start sooner than expected, but vice president vitor constancio says that market conditions must be right. >> needs to be sure that when we get to inflation close to 2% is a doable situation, and self-sustained situation that can go on without a high degree of accommodation that we have now. shares of nestle open higher after the swiss food giant launches a $20 billion share buyback and says it will focus on capital spending, just days after third point's dan loeb pressured the firm to shake up its structure. maersk shuts down a number of systems after hackers strike

in another large-scale cyberattack targeting the shipping giant and several other corporations and government institutions across europe good morning if you're just tuning in, let's show you what u.s. futures are up to. looking mixed. the s&p 500 seen off by a fraction, by 1.3 points. the dow jones is seen higher, up by 18 points the nasdaq which saw a big loss yesterday to the tune of 1.6% closing at a one-month low and is seen extending those losses off by 37 points in premarket indications. we did see the tech sector sell off yesterday, on top of that uncertainty around the delay to the healthcare vote. that put a dampener on sentiment. in europe, the tech sector underperforming as well. given the selloff in the u.s. and also the increased or

renewed cyberwear attack the ftse 100 off by 1.6% the xetra dax off by 1%. when we talk about the fx market, the big story is still very much the euro/dollar up by a third of a percent today, adding on to the 1.4% gain yesterday. that was the biggest gain. one-day gain in a year after those hawkish comments coming from mario draghi. hinting that the ecb might start winding down its stimulus. r let's talk about another central bank, fed chair janet yellen reaffirmed her view that interest rates should continue to rise gradually. speaking at the british academy in london, yellen added she did not expect another financial crisis in our lifetime and warned against any unwinding of reforms in financial services. >> the system is much safer and much sounder as i mentioned, we are doing a lot more to try to look for

financial stability risks that may not be immediately apparent, but to look in corners of the financial system that are not subject to regulation outside those areas in order to try to detect threats to financial stabilities that may be emerging so, would i say there will never be another financial crisis? probably that would be going too far, but i do think we're much safer. and i hope that it will not be in our lifetimes and i don't believe it will be speaking at the ecb forum in sintra, draghi suggested that the bank was ready to adjust the parameters of its policy to help in the recovery. speaking to cnbc in

copenhagen, the executive board chairman of rabo bank and euro banks are healthy. >> i think the european banking sector is quite healthy. if you look at capital ratios to buffers banks are building up partly in response to regulation and partly in response to being more stable, i think we're moving along you can see that with the stress testing exercise i think the banking system is healthy, and it's good there are some banks still in the transition phase, some have not made it. those cases were illustrated last week and this week. but i think for us, leading banks are stable rock solid >> so you don't see contagion risk from though incidents >> no, there were good examples of how the transition ought to be managed in a more controlled way. how it actually should be done and that the system can absorb

those losses >> a lot of talk around the european central bank's monetary policy, and what happens when they begin to unwind this loose monetary policy. what happens when that takes place? >> it's difficult to say everything is so far the opposite of what people expected the monetary expansion came towards economic growth and people not to save and invest. the opposite happened. i think we're speculating about what will happen when we alleviate the loose monetary policy i'm looking forward to it. we need to move back to a more stable situation where it's not an overflow of money going into the system and interest rates are being suppressed unnaturally. consumers understand the world again. right now consumers are confused they don't understand negative interest rates they don't understand zero interest rates and the system becomes volatile as a result >> when do you think the ecb should go on with the great

unwinding? they're urging that should happen very soon >> i would hope they had already started. there's my answer. as soon as possible. >> let's get out to tjean-miche. you heard those comments you said it's about time the ecb normalize policy do you agree, despite the fact that inflation is still pretty low? >> i don't i think there is no inflation to be seen in the eurozone as a whole. the ecb published a new set of forecasts where they raised gdp forecasts and lowered their inflation forecasts for the next 2 1/2 years. so i don't see any reason to accelerate this unwinding that you're talking about >> why do you think inflation is so low we've been talking about the wage puzzle in the uk and the u.s. and across europe why do you think wages are not

rising faster if economic activity is at a six-year high >> because there is still a considerable amount of slack in the labor markets across the union. perhaps with the exception of germany, which is very close to full employment. but in other countries you're looking at jobless rates that are between, let's say, 10% plus, and even in the case of spain much higher than this. so the bargaining power of wage earners is still extremely weak. that's one factor. and let's not forget also that after a temporary spike in oil prices at the very beginning of this year, we are now looking at a fall in commodity prices in general and oil in particular. that's going to feed into lower headline inflation looking forward. so, inflationary pressures are still extremely weak in this

current environment. >> the added effect on inflation or the added impact on inflation would be a higher or the lack of inflation i should say would be a higher exchange rate in terms of the euro/dollar we've seen it creeping up. it's adding on another 0.3% this morning. we're talking to fx forecasters, they're seeing it at 115, 116 by the end of the year. that's not going to healthy inflation outlook, is it >> precisely not that's why we think the negative deposit rate that the ecb rate has the moment will continue to prevail for the next couple of years. this is a tool to influence the exchange rate. at the moment the euro is strengthening again. that's not good news as far as inflation prospects are concerned. >> it's a really tough balancing act for mario draghi, because he's got to cater to both the hawks and the doves and the

governing council of the ecb he has to acknowledge that the economic recovery in the eurozone is gaining strength what does he do then at what point does he taper and hike rates >> our view is as follows. we think that by the second part of this year, probably around september or october, the ecb will communicate to the markets a new calendar, a new schedule as far as the tapering off is concerned, that we'll reveal that effective at the beginning of 2018 they will somewhat reduce the monthly pace of purchases on the sovereign bond markets probably from 60 billion at moment to about 40 billion. then perhaps if things go well on the growth side, 20 billion by the second part of 2018 and into 2019. as you can see, this unwinding

will be extremely slow, cautious, gradual, all those words will apply we're not looking at the end of this actual qe program before probably the beginning of 2019 >> jean-michel, even if it's cautious, gradual, all those terms, the market knows the ecb is tapering. that's a big change from the ultra loose monetary conditions in for the last five, six years. that means the market will get spooked. is there any way the ecb can avoid a taper tantrum? >> i think the way they're managing this tapering is the right way to avoid markets being spooked. markets are being warned every month that at some point in the distant future, looking at 2018, we will start to see lower flows from the ecb in the markets.

this is a gradual process. as far as communication is concerned mr. draghi has done an excellent job at managing expectations and setting aside any accident, i think, the markets will actually not be spooked. they know exactly what to expect a very gradual process and no change in the policy rate of the ecb, they're currently at zero percent before 2019 in our opinion. this has been well choreographed and telegraphed by the ecb >> if there is no major corporate reform coming out of the u.s., if there is no phenomenal infrastructure package as donald trump likes to call it, would that be bad for the eurozone would that upset the apple cart? >> i think the u.s. economy is growing slightly above 2% at this point in time the cycle in the u.s. is quite mature this is an economy that is

approaching its full potential growth so we were never too optimistic on the new administration's ability to implement very aggressive stimulus package in the u.s. so the dependency of europe to additional stimulus in the u.s. is very low. on the other side, what would be much more concern obviously would be increased protectionism in the u.s that's not what we are seeing at this point in time it's been discussed but nothing has been immre the plemented. that would be more of a threat than fiscal reforms on the other side of the atlantic >> jean-michel six, thank you very much for your time. >> thank you. let's talk about brexit. very entertaining in some ways philip hammond warns that what he calls petty politics are the biggest threat to a good brexit

dole he made the comments in berlin and poked fun at boris onson saying compromise is the art of dividing a cake in such a way that everyone believe the he has the biggest president. there are reports that some leaders see hammond address a a minister candidate if may steps down labour plans to force a vote on a pay cap for sector employees. this would cut pay for police and firefighters but give other sector employees a pay rise. coming up, a ransomware cyberattack spreads across eastern europe and affects many companies. after the break, we'll discuss whether corporate cybersecurity measures are up to scratch

welcome back let's show you what's happening in the european market technology is underperforming but the second worst performer is european pharma stocks are under pressure after potentially republican leaders postponed the senate vote on the healthcare reform dealing another blow to a key part of trump's agenda many of these companies are very much multinationals and have a major presence in the u.s. now u.s. senate republican leader mitch mcconnell met with president trump to discuss that delay. the senate leader says there's a really good chance the bill will eventually be passed and warns of the consequences if not casey hunt has all the details >> reporter: after seven years of promising to repeal and replace obamacare, a stunning delay and a major blow to

president trump and his republican party they don't have the votes in the senate >> we will not be on the bill this week. but we're still working toward getting at least 50 people in a comfortable place. >> reporter: republican leader mitch mcconnell retreating today after he promised over and over again he would hold a vote before july 4th. >> is your effort to repeal obamacare dead >> no. we're continuing to talk about it it's a very complicated subject. >> reporter: a complicated bill written in secret, released to the public just five days ago to immediate outcry first from conservatives who said it didn't go far enough. >> i just didn't run on obamacare likes. >> reporter: moderate republicans worried about deep medicaid cuts. >> not the answer. it's simply not the answer. >> reporter: yesterday the cbo estimated 22 million more people would lose health coverage under the bill this morning the number two senate republican insisting -- >> yes, we will vote. >> reporter: he was putting the whole thing off. vice president mike pence was in

the room >> we'll keep working until we get it done. >> reporter: leaving the capitol, a busload o senators following him down to pennsylvania avenue summoned to the white house. >> if we don't get it done, if will be something that we're not going to like and that's okay, and i understand that very well. >> reporter: after the meeting -- >> i think everybody around the table is interested in getting a yes. >> reporter: worried republicans are urging their leaders to work with democrats to find a real fix. >> so when did we get to the point where we said no, we're not going to talk to democrats about a fix. we should be working with our colleagues on the other side of the aisle. >> reporter: but outside the capitol, and across the country, democrats have helped organize the opposition. >> this is exactly what senator mcconnell did not want he did not want to have a reset where opposition would have time to build and spend money on ads and bring people out to events

that's exactly what the opponents of this bill are planning for the next ten days. >> online food takeaway company delivery hero will set an ipo price at the upper end of its range. it will be between 23.75 and 25.50 per share. the firm is expected to start trading in germany on friday we'll be hearing from the co of delivery hero on friday at 10:05 cet. that's a first on cnbc one interview you do not want to miss. facebook has hit the 2 billion user mark. the social network doubled in size since 2012. it is bigger than the population of any single country in the world and represents more than a quarter of the world's population. european regulators have given google 90 days to stop favoring its shopping service

after the european commission hit the business with a 2.4 billion euro fine. the record penalty tops a 2009 fine lodged at intel and a 2004 fine of 497 million euros for microsoft. cnbc spoke with the eu commissioner about that record fine >> the fine is a reflection of the abuse and how long the abuse has taken place. and of koucourse the importancef the different actors in the market we find this abuse that taken place since 2008 but also it has taken place in every european country where google shopping has been rolled out. that's a serious matter. >> let's talk more about the story with our technology correspondent arjun kharpal. 3% of alphabet's net cash is the

fine that's nothing for the likes of alphabet this is just a reputational fine >> it's a week's worth of revenue is how much they'll pay. it's more than that, it's what happens now. what does google need to do to change and appease the european commission one suggestion is possibly on top of its own shopping search results they put a competitor's search result, how much of an effect will that have on google's revenues. for example, credit suisse came out with a note saying 1.5% hit it could take on revenues. 2.6% on operating profit there will be -- could potentially be minor knocks. it is how they navigate the waters and what the european commission wants this is not the only thing the european commission is looking into for google. they're investigating whether its android mobile operating system is anti-competitive and breaches eu antitrust rules and broader search practices this is not a story that will go

away for google any time soon. >> definitely. in the same vain what we saw happening with intel and microsoft when they were slapped with the huge finds, it didn't make a difference to their success, their size. they're huge companies, because of their size they will be scrutinized by the eu regulator. do you get a sense that the eu competition authority is too aggressive because we don't have a microsoft or google here in europe that's the argument usually. >> it's very hard. because we don't have a co competitor to google, so there is no competition available here that's very much a result of the european likes so we've been unable to create giants of the industry that's changing. but google has just dominated the search industry. we've seen yahoo! microsoft coming nowhere close to what google has done.

now it's spreading from shopping to travel booking. it's dominance will continue to grow there's not much that can stop that expansion >> let's move on to the next story. a major global cyberattack spread across eastern europe causing severe disruption in ukraine and russia the attack involved ma d malwea known as petya the disruption spread to several european companies including maersk, merck, wpp and rosneft arjun, we've seen this very similar ransomeware attack one month ago. have the companies not learned >> it seems they haven't this ransomeware is nasty. it locks files, different from the wannacry one, this is locking whole hard drives. essentially making the computer

unusable the latest tally is 3.5 bitcoins have been paid, so $9,000. not a lot of money the advice is don't pay the ransom because actually you're not going to get your files back there's little evidence of whether this will unlock any of the files at the moment. the researchers are seeing big differences from wannacry. this is a more complicated attack it is stealing user names and log-in details in order to gain access to secure files and instore more of this malware across the network it's a different piece of work here security companies are still scrambling about how to fix it and whether there is a fix >> arjun, thank you very much for that any big plans for your birthday? i har you'ear you're 21 again? >> there's going to be a party >> am i invited? >> absolutely.

>> appreciate it before we wrap up the show, futures in the u.s., a mixed picture. the s&p 500 off fractionally the dow jones set to add 33 points the nasdaq, which saw a 1.6% decline in yesterday's trading session, the biggest drop in roughly a month, that is event off by another 27 points quick look at the heat map in europe stoxx 600 is off 0.6%. tech is really underperforming today given the tech weakness in the u.s. and the ransomeware attack that's it for today's show "worldwide exchange" is up next. we'll see you same time same place tomorrow [vo] when it comes to investing, looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward.

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good morning formula for a selloff? another tech tumble plus the delayed healthcare vote weighing on the markets your trading day setup straight ahead. some of the world's most influential central bankers will meet at the ecb forum sgo and sto. and stocks to watch. we'll round up the movers. it's wednesday june 28, 2017 "worldwide exchange" begins right now.