you heard eunice.eckless lending because of this tightening in the interbank market, lose control. i don't like the sound of this. why doesn't anybody consider the possibility that china could be going into a recession? >> i think people do consider that it's a good possibility that they could be going into recession. i think that's why you saw the markets stumble so much. remember, shanghai fell 5% overnight because of the commentary that came out from the central bank that said, this tough liquidity stance we're taking is here to stay, not as bad as we saw late last week with the nosebleed levels that we saw that looked apocalyptic. but we're going to rein in that type of lending. and if you rein in lending, you're reining it in. that means less credit in the economy. so the economy slows. what are the unintended consequences of what they are doing? >> that's the thing, unintended consequences. they don't necessarily control every single thing out there. they don't anymore. it's a little different th

eunice is in chengdu and joins us with more. eunice. >> that's right, ross. hopes are very high here that this summit is going to result in a resetting of the relationship between the u.s. and china. for the past several years, this relationship has been described as frosty. it's been quite tense. and just because a lot of those same issues that you were talking about. cyber security is the latest one, but trade issues, frustration over the way the chinese set the value of the yuan versus the u.s. dollar. so another point that people have been talking about is what's interesting about this particular meeting is that the in the past, the meetings have been very formal, very official, always carefully planned. but people like hank paulson, who is the former u.s. treasury secretary and now the chairman of the paulson institute told me that this is a very unique event and should be paid attention to. the fact that our president, barack obama, is participating in this really unique meeting with president xi in an informal environment, extensive meeting, shows that

eunice has been talking to them about challenges of doing business. hi, eunice. >> hi, ross. hitters, as you just mentioned from all over the world in the corporate world are here in chunk in chengdu. we're seeing hundreds of people are here both on the government level as well as business leaders and they're discussing a range of issues. one of the very important challenges ahead is that of security. that issue is also on the agenda for the upcoming meeting between president obama as well as susan king. >> on the cyber security issue, it's a serious problem. and we are trying to focus it just on one thing. the theft of intellectual property and knowledge from american companies directly through cyber sets. and i can assure you it's going to be a major part of the discussion in california and everybody knows it has to be fixed and improved. >> and that meeting is between the two presidents of the united states and china will be taking place in california. meanwhile, here, this event is happening in chengdu which is a city in the western part of the country. and a lot of peopl

eunice is in beijing. eunice, we didn't trust the april trade numbers.ll back from that, i'm not sure what sort of context we're supposed to put this into. >> reporter: yeah, and especially because for these may numbers, a lot of people have been talking about how the government regulations and crackdown on some of these practices to try to kind of inflate the export numbers is one of the reasons why the may trade numbers -- the export numbers were so low. even with that in mind, you just think that the u.s. economy is recovering, but this may export number came in at 1% growth. that's still paltry. the import numbers didn't look great either. they missed by a margin. because of that, people are saying that the domestic demand isn't robust here. the producer price numbers and the consumer prices also are showing some weakness. and what the producer prices, people are talking about how the overcapacity is still in the system. overall, the set of numbers were disappointing. people are saying that into the second quarter, we're probably going to see more of

eunice yun, cnbc, beijing. >> thanks, eunice.aordinary story. >>> up next, hot summer homes. the real estate broker to the stars, dolly lenz, will show us which big home offers more bang for the buck. stay with us. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the mo

eunice, good morning. >> good morning, guys. the american ceo, chip starnes is now on a plane to the united states. he's no longer in china. it feels like a very dramatic leave as he was able to seal the deal. money was transferred, everything was paid out. after that he told me that he was put into a car by local officials, eventually had to switch cars on his way to beijing where he was with his lawyers to finally get to the center. it was a bit unclear as to whether or not he was going to go to a hotel and then later he text messaged me and said that he was on a plane heading to the united states because he had been threatened by a vendor. he was really worried about his personal safety and he said he just needed to get out of here. >> eunice, it is a wild story. hopefully we'll have an opportunity to talk to him when he gets back to the states. you know, one of the things that struck me is when we interviewed him yesterday, he was still being held hostage so it was unclear to me how honest he could ultimately be about his fe

eunice has the details for us in beijing.does this mean for the growth rates and what kind of response might we get? >> well, right now a lot of people are just talking about how we're seeing the chinese economy slowing down even further. these numbers that we saw today are showing that there's a contraction in the manufacturing sectors. a little bit worse than what people expected and what people are focusing on mainly is a pronounced fall in new export orders. a lot of that is just reflective of the fact that we're seeing a weaker demand globally but also some weakness at home. now in terms of the policy response, there are a lot of people wondering what the government is going to do because up till now, over the past several months we haven't seen the government really step in at all. they've been allowing the slowdown to happen. there have been a lot of thoughts that the leadership is making good on its promise and saying that it's able to tolerate a slower rate of growth and there's been a lot of comments to suggest that

eunice is going to join us with more on that story from china. eunice. >> hey, guys. we keep getting all these economic data points that miss consensus. hsbc slashed pmi for june came in below what people expected basically indicating we're seeing a contraction in the industry. we're seeing a slowdown in the chinese economy. that has raised questions as to whether or not they will have to change their stance. in the past several months we haven't seen the government come in to support the economy even though there has been a slowdown. because of the slowdown that we're seeing and this rapid negative economic data and the fact that we're seeing a lot of pressure right now in the financial sector where will's a lot of fears about a credit crunch that now people are starting to believe that the policy makers are going to at least have to rethink or possibly rebook their stance of inaction. >> yeah. eunice, combined with what's happening here, this is, i don't know, perfect storm setting up. we'll see though. everything else -- we just need to go slow, don't you think? we

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eunice, thank you very much. again, eunice, we'll see you again very soon. >>> when we come back on "squawk box," the story behind the larger insider trading case in wall street history. >>> first, a little "squawk" sports news for you. the miami heat evening the nba finals at 1-1. the heat actually dominating the last 28 minutes of the game to beat the san antonio spurs 103-84. the spurs host game three tomorrow night. ben, i know you'll be watching. you've been watching all of these things. i find out this news early in the morning when i first wake up from ben. "squawk box" will be right back. attention - americans living with limited mobility. what do you do when you can no longer get around like you used to? when you fear losing your independence? who do you call? call hoveround now, to see if you qualify for america's premier power chair. hi, i'm tom kruse, inventor and founder of hoveround. now you can do more, see more, enjoy life more. here's why hoveround makes it easier than any other power chair. hove

eunice, thank you. >> i have to say, that's one of the weirder ones we have seen and even eunice seemedme of the workers. >>> up next, the dangerous new way that kids are getting drunk without actually drinking. a warning about the online videos teaching them how to do it. >> and on trending, heads up, the worst parade route ever? after these messages. to benefit cancer research i rode across the atlantic. crossing an ocean with your body as the motor, it hurts. so my answer was advil. [ male announcer ] paul ridley chose advil. because nothing is stronger on tough pain. real people. real pain. real relief. advil. relief in action. to the little ones and crossed a thousand finish lines. ones we've given you our best performing sunscreens so you are free to perform your best. coppertone sport. the great american sunscreen. with delicious pringles stix. ♪ ♪ everything pops with pringles stix. [ crunch ] suave professionals infused moroccan argan oil into our new moroccan infusion line. the results were incredible. [ amanda ] i love it! all this shine, yet it feels so light! [ female annou

eunice joins us from beijing with more. eunice? >> hi. we're definitely seeing the authorities moving in and imposing some structure and discipline to the financial sector. as you had mentioned, the pboc or china central bank said the liquidity is at reasonable levels. this was the first time we heard from the central bank and the words were quite powerful. a lot of people took that to mean the government isn't only okay with this level of liquidity but it's also pushing ahead with economic reforms. that it's not going to be loosening things up, allowing a lot of cash back into the system. at least not yet. and that instead they are going to be sticking with their formula of tough love for the financial sector as well as for the economy. >> eunice, thank you very much for that. we appreciate it. >>> joining us on the phone now from hong kong is peter tha thal larsen. we've seen the overnight lending rates coming down but a lot of equities are still off by some 10%. and also there's still this overall arching worry the credit crunch could

government for the part she believes it played in his arrest and alleged torture thirty three year old eunice fixity claims that she spent more than three months in detention in the u.a.e. back in two thousand and eleven he says it was orchestrated by the f.b.i. because he refused to become an informant at the mosque that he attended in portland oregon hears describing some of the torture that he endured. you know most people. or. someone who listens. to you beyond the detention and torture who is a naturalized u.s. citizen says he has also been on the no fly list for years and has been prevented from coming back to the u.s. all this he says as a way to force him to help the f.b.i. now last year the justice department filed charges against his brother and a serb man for conspiring to hide seventy five thousand dollars worth of money transfers to the u.a.e. and saddam on you know speaking he is the fourth american muslim from portland to claim that the f.b.i. tortured him. well it's a big day for our tea our sister station r t international has passed one billion viewers on this you tube chann

guys. >> thank you so much, eunice for that, certainly a fascinating story.u went there, they said he was not there? no, no, we went in there. he definitely was being held. it was obvious from standing outside the factory. once you went in obviously, we saw him. but one of the things that he was talking about, which we was most disappointed with is the reaction of the local officials. he was saying the local officials weren't helping him at all. he said he felt that the local officials, instead, were putting a lot of pressure on him to try to negotiate some sort of deal. so that's something that was, you know, not something he was very happy about, something he is hoping he is going to be able to turn around, especially after he has more of these discussions with the lawyers on his end and also the lawyers on the union representative as well as the worker's end. >> eunice, were you pushed off the ground? is that what happened will? >> no. i did get a little roughed up. but it was okay. i mean, it just, i think people were getting a little bit anxious that we

. >> eunice said they told him to strike a deal. >> deal is pay up. >> there's nobody there -- if he'seally being held -- >> have you ever had -- >> this is the most bizarre -- >> think about it. the guy is responsible for his own ransom. he can buy his freedom right now. he has his own ransom. >> isn't there a rule of law? >> that's the issue. in china they have big hurdles. >> this is not good advertisement for the tourism trade or business or the country. >> funniest line yesterday was kidnappings are not unheard of. i don't say it's typical but not atypical either. >> page 8. >> because it happens so often. it's bizarre. >> completely crazy. >> the other big story out of china fears credit crunch and attempt by the central bank to calm the markets. bill adams is here. good to see you. china puts out a statement it was early morning for us yesterday, late yesterday for china, shanghai this morning responds, thing are much calmer. central bank says don't worry things get crazy we'll provide liquidity. also made it clear that it's just going to be tougher to borrow in the future than

eunice? >> reporter: hey, guys. well, china is a property-assessed economy and fears are rising that all of this building could really lead to wasted investment as well as ghost towns. if you wanted to build a housing project ten times larger than new york's central park, this is what it would look like. in the chinese city of chongqing, authorities are spending billions to erect hundreds of thousands of new apartments. the idea -- if they build it, the masses will come. "we're not worried about a housing bubble," this government official says. "we need more homes." china is constructing new homes as part of its aggressive push to build out its cities. by 2025, china's projected to have 200 cities with over a million people each. compare that to the u.s., which only has nine. the move is meant to raise incomes here and create a bigger consumer class, but the concern is that there's a mismatch in investment, potentially littering china with uninhabited ghost towns. >> in many cases, actually there is no -- there isn'

now beyond the detention and torture eunice who is a naturalized u.s. citizen says he has also been on the no fly list for years and has been prevented from coming back into the u.s. all this he says as a way to force him to help the f.b.i. now last year the justice department filed charges against his brother and a third man for conspiring to hide seventy five thousand dollars worth of money transfers to the u.a.e. and so don is the fourth american muslim from portland to claim that the f.b.i. tortured him. while monsanto has earned its fair share of critics over the years as a result of its controversial g.m.o. seed growing one of the biotech giants most outspoken critics also happens to be one of its youngest fourteen year old burke bear is an advocate for sustainable agriculture and has traveled all over the u.s. to speak about organic farms and the problems surrounding america's industrialized food system are she correspondent margaret howell brings us the story of a boy whose experience goes beyond his years her fourteen year old bourke geneticall

eunice yoon joins us in china with a preview this morning. good morning, eunice. >> good morning.f people here in china are saying that there's quite a bit ooh optimism about this sum because they think it soo could lead to a reboot or reset. as you guys now, the relationship hasn't been very great over the past couple of years. it's detier rated significantly. you guys were talking before about cyber security issues. that was just the latest thing. but, of course, there's the way that the chinese sets the value of the yuan against the u.s. dollar. also a lot of trade issues that have come to the fore. and when the two sides have met in the past, it's always been very formal, really proper meeting, planned out official meetings. when i was speak to go hank paulson who is here, of course, the former u.s. treasury secretary and he's here in town, and he told me that he thought that the informal studying was very unique. and because of that, he thought it could actually help pave the way for the two sides to actually get things done in the future. >> our president, barack obama is pa

more from our colleague eunice yun in beijing in just a moment's time. but in the meantime, the bank for international settlement says central banks should not allow fears of disrupting markets to delay the timely withdrawal of cheap money. in its annual report the bis warns the exit will be more challenging, the longer expansive policy stays. with the bank for international settlements chief economist will be joining us to explain all of that at 7:40 eastern. so we'll get more on that later on. >> thank you very much. meantime, here's how things look for your global markets. by the way, you may want to roll over and go back to sleep because it is not pleasant on a monday morning. stock futures are down. you can see the s&p 500, dow jones and nasdaq all lower. dow off more than 100 because of asia. andrew mentioned it at the top. the chinese shenzhen a shares down about 5.3%. they had been down more than 6%. the nikkei had been higher. is now lower. it is not as bad in europe but still red across the board with the ftse, cac and dax down. same thing with

. >> eunice, u.s. media has run pretty heavy with this story. what are the ramifications here?not safe to do business in china? >> well, i think that this is an isolated case. the american chamber of commerce president has said in the past that these are isolated incidents. it's not as though they happen a lot within the international business community. at the same time what i thought was really interesting was the fact that workers were -- the workers were becoming more demanding and that you could see that wages are rising here and base wages are rising there are a lot of workers who aren't really used to the idea that business is leaving this country for other lower cost countries such as india. so, you know, in places like the united states or in your case in the u.k. there are a lot of workers who have lost their jobs and have complained in the past that they've lost their jobs to places like china and now here in china you're starting to see a similar trend but at the same time a lot of these workers don't necessarily have the same level of education that a lot of people

eunice cÉspyoenis coesps drove in all three taser runs with two home runs on the night.ings up and force extra innings. a.j. griffin pitched seven scoreless innings and then sound doolittle came in and gave up those three runs in the eighth and the brewers when it..--win it. i i fan is ever to go giving the returning at no cabremelky a and careful in his return to at&t park. then at tim lincecum and andrÉs torres denndey's red white & blue plate specials are ase amerimecan as apple p. espeesciallyal, the apple pie french toast. try ity with our ner w mild or bold coffee roasts. only alyt denny's. living on cloud nine with that u-verse wireless receiver. you see in my day, when my mom was repainting the house, you couldn't just set up a tv in the basement. i mean, come on! nope. we could only watch tv in the rooms that had a tv outlet. yeah if we wanted to watch tv someplace else, we'd have to go to my aunt sally's. have you ever sat on a plastic covered couch? [ kids cheering ] you're missing a good game over here. those kids wouldn't have lasted one day in our shoes. [

eunice? >> reporte eunice? we can see you. but we cannot hear you. >> reporter: sorry.here was a big gust of wind. i didn't hear you guys. i think you guys were talking about the credit crunch. yes, pressure has eased somewhat after the credit crunch. money market rates are a bit high. they're coming off a bit. people are still concerned about the credit squeeze. overall, though, the economy still, of course, slowing down. but when you take a look at the growth rates, people think it's still doing relatively welcome paired to the rest of the world. that's one of the reasons a company like honeywell is investing heavily here. interesting stats for you guys. one out of every two people in china live in a city. the government is trying to lift that to two out of three by 2030. so what that means is that what the government is trying to do is to move the equivalent of the entire population of the united states into the cities by that time. that policy is going to be good for multinational companies. >> reporter: all over the world, people are heading to the cities. nowhere

cnbc's eunice eun is in beijing.ng to you. >> reporter: the story reads like a movie script. after he secured his release from the factory he jumped from one car to another before boarding a plane out of here. american ceo chip starnes has said good-bye to his defacto prison in china after being held captive by his factory workers here for a week starnes is on a plane back home to the u.s. the two sides finally struck a deal. more workers get payouts. starnes no longer needs to live under constant surveillance. but he was threatened by a vendor and fearing for his personal safety fled. in a text message to me he said, i was, let's say, threatened this morning. i freaked out. starnes says he was being held because of rumors he was about to close his entire plant. he said he only planned to move part of the business to india. rumors maybe, but chinese workers have little legal recourse, and are used to losing out. factory bosses in china sometimes do flee without giving their workers pay. so these workers didn't want t

cnbc's own eunice yun reports on this incredible story from beijing. >> reporter: it's not often you'ret's what's happening to chip starnes. the american ceo of specialty medical supplies has been held captive at his factory in china since last friday. by workers who have been with him for nearly a decade. are they keeping you in this situation? >> no, no, i don't. >> reporter: starnes is at the center of a worker revolt, not uncommon for china, but rare for an american boss. with wages here rising, the 42-year-old decided to move part of the business to india. he laid off 35 workers, paid them severance, and then rumors started he was closing the factory, which he says he was not. >> they're demanding full severance pay, but they still have a job, and that's -- that's the problem. >> reporter: the workers won't let starnes out, but they would let us in. >> i just thought i'd have maybe a little more support. >> reporter: you plan to keep this business in china? >> i mean, yes. i was operational seven days ago. >> reporter: so the workers are saying that mr. starnes actually isn't being

eunice yoon has filed this report on the country's urban underclass. >> reporter: if you're looking for slums in china, this is about as close as you get. as this documentary shows, young people cram into subdivided apartments, or in this case, a rooftop, to get a shot at pursuing their chinese dream in the big city. yua hua produced the film. she moved to beijing two years ago, and despite her college degree and job at a tech company, could only afford to live here. "it's crowded. the smaller rooms are 3 to 4 square meters," she says. "put in a bed and it's cramped. add a small wardrobe and you fill up the entire room." despite the frenzied housing construction, many newcomers to china's cities can't keep up with the high prices. the dark side of this nation's real estate boom. so, they're forced to live in scattered communities, often in illegal structures throughout the city. she and her friends pay as little as $112 a month for a closet of a room. >> translator: the most inconvenient thing for me is that i have no windows. >> translator: the most inconvenient thing for me is that i

let's bring in cnbc's eunice yune from beijing. great to have you on the line.t was worse in china. >> chinese markets ended down over 5% and investor were jumping out of banking stocks because of what you were talking about, the concerns about the credit squeeze. now, the chinese central bank is -- appears to be imposing some discipline on the financial sector. it issued a statement saying liquidity is at renal levels and that major banks should play an active role in stableizing the market. the main takeaway is that chinese authorities are getting serious about economic reforms and they are getting tough on the bank. so the question that people have here is now far are they willing to let things go, and can they do it with triggering some systemic risk? what we learned last week how fragile the entire system is. the government really didn't make drastic policy changes last week but what we saw was banks jumping up and down and basically not knowing how to handle the situation because they're so used to having the government come in and help out. so, a lot of p

of the weird context of how it played out was actually that the workers themselves, the ones that eunice about how upset they were and really felt like they had the right to basically threaten this guy because he was going to do away with their jobs. so that's kind of an extraordinary statement as well. >> because of the distance between us and the story, we don't know exactly what was true, what his freedoms were. he seems to have done a lot of press in the past 48, 72 hours which has made some people suspicious -- >> you have to wonder how it's been for business, for example. that's one way to offset labor costs. >> be a global talking point, but he's back. speaking of being back, dow is down 41 points. >> and the nasdaq is positive. it's adding about a 0.1 of 1%. i was looking at apple. apple is down 0.6 hfof 1%. blackberry, of course, off quite a bit more than that. so impressive that the index could perform as well as it is broadly although different story for the dow, way down by ibm. >> of course, the lottery balancing happening today. last day of the month, the quarter, and the h

eunice yoon is in beijing with more. >> this reads like a movie script after the american ceo secureded from one car into another before boarding a plane out of here. >> reporter: american ceo chip starnes has said good-bye to his de facto prison in china after being held captive by the factory workers here for a week, starnes is on a plane back home to the u.s. the two sides finally struck a deal. more workers get payouts, and starnes no longer needs to live under constant surveillance. but he was threatened by a vendor and fearing for his personal safety, he fled. in a text message to me, he said, i was, let's say, threatened this morning, and i freaked out. starnes says that he was being held because of rumors that he was about to close the entire plant. he said he planned to move part of the business the india. rumors maybe, but chinese workers have little legal recourse, and they are used to losing out. factory bosses in china do flee without giving them pay, and the workers didn't want the same thing to happen to them. over the phone starnes wrote, deal was done and all employee