we have jim muriel and andy bush and michelle caruso-cabrera. chelle, i'll go to you on the international side. part of the story the last couple of days has been china. the interbank r.p. loan rate and at one point skyrocketed into the 20% zone. the reports today is that there was some relief and the bank of japan, and china said relax and let's lone to each other and maybe killing gold and may be killing their own economy and you have to tell me what it means out in china. the central bank has made clear they are tightening. they ease things a little bit today, but they made it clear they are willing to let the interest rates there remain elevated between banks and they're doing this on purpose, larry, because there's a lot of sneaky, snarky, sharky lending going on in china and they don't like it and they think it's too bubbly there. they know the tough times are coming so they want to tighten ahead of that and shake a lot of that out. that is going to have an impact. a lot of small and medium sized businesses even though there's sharky and sn

. >>> michelle caruso cabrera has more on 3 m's products. >> fiber that keeps you warm even in a huge freezer. liquid that looks and acts like water but doesn't hurt electronics. evaporates instantly and puts out fires. 3m, is the center of innovation. even though it's 110 years old, and a long way from silicon valley. for the company, the struggle is always the same, making sure new inventions in the lab, turn into new products on the shelf. to ensure that happens, 3m uses an internal metric called the vitality process. >> the ceo took the helm of 3m last year, his goal that 40% of the company's revenues should come from products that didn't exist five years ago. >> we still have a ways to go, if you think about it, we're 30 billion u.s. dollar company, and today, 34% of what we are selling didn't exist five years ago. that's a tremendous accomplishment for the company. >> to achieve the higher target, he plans to increase spending on research and development. getting to 6% of revenues, up from roughly 5% in the last decade. having so many consumer products, 3m is susceptible to fluc

michelle caruso-cabrera. >>> and ceo of pure storage.t flash. i want flash. all night long. crazy, right? >> the third power of "squawk box" begins right now. ♪ welcome back to "squawk box" on cnbc. first in business worldwide. andrew is off today. our guest host this morning, larry bossidy, former chair and ceo of honeywell, and cnbc contributor. on the board of all the big companies. >> ge, jpmorgan and merck. >> and my own too. >> three dow components. >> kids? >> nine kids, one wife. >> and currently tally, if you know, on the grandchildren. >> come on, joe. 31 grandchildren. >> how many names? >> i know all the names. i'm not going to get tested. >> more from larry still ahead. you don't need to do cross word puzzles. to stay sharp you have to remember who the heck is related to you. >> my wife takes care of all of the that stuff. >> you just remember who she is. >>> let's get a check on the markets. nikkei closed down 500 points overnight. 3.7%. there's been a lot of volatility in that nikkei lately. today was no exception. friday'

michelle caruso-cabrera, thank you very much. ew for michelle and for cnbc with carlos slim, a man who barely speaks. fantastic job. >> you can see it on dotcom. >> have a feeling we'll be seeing michelle in istanbul, turkey before too long where the scenes continue into the night. it's now 9:30 in istanbul. they are seven hours aheads of "new york times." >>> roberts and forget cicadas, another terrifying reason for you to bug out this summer. [ kitt ] you know what's impressive? 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? ♪ >>> what you're seeing this front of you is a picture we have in our markets today. we're off the lows of the day and off the highs of the day, a wild ride. meantime, continuing to monitor the volatile situation in turkey. let's show you the pictures

let's bring in michelle caruso-cabrera, cnbc's chief international correspondent.ave goldberg still here with me on the set. you heard eunice. reckless 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

our michelle caruso-cabrera is live in mexico city. michelle? >> hey there, sue. carlos slim is an extremely controversial figure, but i wanted to ask him about one of the greatest controversies in the world right now, cheap money from central banks. what does he think about it? the answer on the other side of this break. stay tuned to "power lunch." ♪ 'cause you make me feel so right ♪ ♪ even if it's so wrong ♪ i wanna scream out loud ♪ boy, but i just bite my tongue ♪ ♪ this one's for the girls messin' with boys ♪ ♪ like he's the melody and she's background noise ♪ [ volume decreases ] thanks, mom! have fun! you too. ♪ ♪ a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you o

mexican telecom carlos slim sitting down with michelle caruso-cabrera.rning, michelle joins us from mexico city. good morning, michelle. >> hey there. good morning, andrew. carlos slim said he's enconcerned about the telecom reform signed into law yesterday. doesn't think it will hit the profitability of the company he founded. we'll carry that slice of the interview for you two hours from now in the third hour of "squawk box." we also spoke about the controversy surrounding him because he's so wealthy, worth roughly $70 billion, in a country where there are high level of poverty. he rejects criticisms he hasn't done enough for society or mexico. he says business men have a responsibility to society, and when i asked him, i said do you feel like you have fulfilled that responsibility? he said yes. >> i try to do that, yes. i think that it is not by -- only by assistance or some kind of assistance on some kind of charity help to solve some problems temporary, but the only way to solve the problems permanently and in a better way and high middle classes, m

. >>> let's start right away with cnbc's michelle caruso-cabrera. she is covering the g-8 summit. michelle, good evening, and what are they focusing on? >> well, not the things that you want them to focus on, larry. of course, the biggest discussion was about syria, and there's been a lot of talk about what happened when president obama and vladamir putin came out of their meeting. the photos, the foet photo-op, clearly looked uncomfortable that. little brief smile that you saw from president obama there, if you blinked you missed it, that was all you got. it was a very tense situation obviously. they made clear they do not agree on how to go about calming down the situation in syria, fixing it, getting an end to the fighting. they both claim to agree that they want it to come to be a end, but they certainly don't agree on how to do that. presumably, larry, this was going to be a g-8 summit that was going to talk about some economic issues, including free trade, a huge free trade deal on the table between europe and the united states. the two largest economies in the world, especia

michelle caruso-cabrera joins us. >>> which nhl player holds the record for the most stanley cup winster alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at duerapy.com. >>> now the answer to today's aflac trivia question. which nhl player holds the record for the most stanley cup wins? the answer, henry richard with 11 stanley cup wins. >>> coming up next, another piece of the jobs puzzle. john challenger. he's going to join us with their latest read on who is hiring and who is firing. >>> ecb is meeting now. they will have a rate decision at 7:45 a.m. eastern. central bank likely to keep rates unchanged. but of course you never know. squawk is returning right after this. >>> got what it takes to be an economist?

our chief international correspondent michelle caruso-cabrera is following the story for us and michellek it has, kelly. let's show you what happened to the turkish stock market. when it reopened today, it dropped sharp low lower, as you can see. lower by 10%. it looks like now we have a fourth day of protesters occupying the square in turk pep this started out as a protest about too much development, not enough green space. they were concerned about yet another mall. the prime minister of the country saying they were going to rebuild an ottoman, and they thought there wouldn't be a green space within istanbul and another thing they heard from protesters is they felt the government was becoming too authoritarian and leaning away from being secular even though turkey is a mostly muslim country, this is a country that has a separation of what we would call church and state, but they would be mosque and state. so they don't want necessarily the mixing of religion and the state and this prime minister, some of them dom plained imposing rules about drinking liquor, et cetera that they are ups

bring in the fabulous michelle caruso-cabrera. >> thank you, brian. stocks are higher for the first day in four. s&p trying to avoid the first four-day losing streak. this is impressive considering where we were when japan was down 6.5%. the industrials higher by 95 points, 15,090. nasdaq higher by 24. the s&p 500 is higher by almost 12. down to the floor with bob pisani, and rick santelli stand big to talk about the ugly auction we saw earlier. this looks pretty good when we saw japan plummet overnight. >> more importantly about the yen. the trend we've seen for weeks, the yen is stronger, as it was today, our markets have been weaker, bonds weaker as well. i hesitate to all call it a trend reversal. it's one day. the happ s&p is up near the highs of the day, the ten year is one and dollar/yen. when this is down, yen is strengthing. this is breaking the trend. we're taking note of even if it's not exactly trend reversal. we'll need a few days to see that break down. transport stocks are up nicely. cyclical stocks outperforming consumer stocks. there'

our chief international correspondent michelle caruso-cabrera joins us with what's looking like a watershedhe history of this country. >> we've been watching now for a couple of weeks a credit crisis in the chinese banking system, been going on for at least two weeks, and we've been wondering what's going on and what's causing this? now and new evidence today sees exactly what we're seeing, could be a watershed moment in china's modern economic history. early this morning in the u.s., chinese central bank acknowledged in a statement for the first time that they had injebted money for some banks to stabilize the system and bring down what had been skyrocketing, short-term rates as banks struggle to find cash. also in the statement they said in the future they will step in again, if necessary, but only to banks which meet the following criteria. they meet the nation's industrial policy goals and have prudent lend willing standards, support the real economy and this is my favorite and they display maturity. here's why this is a game-changer. to who have spoken with senior executives in the ban

cause this and what it means going ford let's bring in cnbc's international correspondent, michelle caruso-cabrera. >> hey, mandy, thought we'd take a look at economic figures for brazil to see if there's a clue of what brought this on. brazil is not greece. actually had growth. growth is slowing but still growth, 7.5% as little as two years ago and still growth last year. unemployment, near a record low, only 6.2%. again, this the not europe, income inequality, actually gone down every single year for the last 14 years. new data today shows inflation is higher than expected, 6.7%, but, remember, brazil once looked like the womenary republic, but brazil, however, has some of the highest taxes but some of the lowest public investment. after decades of low public investment, brazil has sub par roads, schools, hospitals and as you heard miguel almaguer say they are spending billions on arenas et cetera for the world cup and olympics listen to this. their road system, third largest in the world, yet only 12% of those roads are paved. price waterhouse cooper says that for some products more than half t

michelle caruso-cabrera sat down with carlos slim, mexican billion air and tycoon. ey there, melissa. when i spoke with carlos slim, a big investor and has been investing in mexico a long time, but he invests all over the world what. part of the world excites you the most right now? i couldn't even get the question out, and he said immediately mexico. why? because he says there's big potential here. >> we have a great potential because we have a healthy economy, healthy financial system, healthy public finance, a lot of products to do and products that should be very interesti interesting. >> reporter: healthy public finance in mexico. there was a time when you could not say that, so that's a big dramatic change for mexico over the last 20 or 30 years. remember, carlos slim has a big vested interest in mexico. we talked so much about america movile which trades at the american stock exchange at adr. but he has seven companies in mexico, real estate companies, holding companies, drill companies, a restaurant chain and sears in it. it goes on and on, a financial compan

michelle caruso-cabrera was there, actually helped shoot some of this footage, and saw the problems thataving, and she joins us now, along with niall ferguson. michelle, what does it tell you that that 100,000 people will come into the squares and streets of many cities in brazil to protest a hike in bus and subway fares? >> yeah, a nine-cent hike in bus and subway fares, showing deep dissatisfaction with the infrastructure in the country which is so tough. i mean, the poor, forced to ride on buses that are extremely slow. the traffic is horrendous. that is why sao paolo, for example, has more helicopters per capita than any other city in the world, more landing pads than any other city in the world on top of all the buildings, because the rich want to avoid the traffic and also the crime that is on the ground. what you see with all of this violence, people see a lot of money being spent on new infrastructure for stadiums, for the world cup, and they don't see very good roads or ways to get around, really frustrated and they feel forgotten. >> niall, react here to what we're seeing. you

let's dig into this idea a little bit more and bring in michelle caruso-cabrera, jack ablin of bmo capital markets still with us as well and what do you make of that, looks like the u.s. and chinese markets have largely decoupled. agree or disagree? >> well, you're talking about very short term. i would say that this is good news all around. what the chinese policy-makers are trying to do by breaking the credit growth is that they are seeing something fishy going on in china where there's such a huge demand for money and yet it's not translating into equal gdp growth, and so they want to investigate that. i feel that this is great that we know the leaders are ahead of the curve. they don't want to create a financial crisis like what the u.s. did in 2008, so they want to put brakes on it before it becomes out of control. and this way the chinese economy can slow down a bit in the short term but then continue to grow, and that would also benefit americans because american expors porters can export to a growing middle class and a healthy chinese economy. >> a lot of people would say that the

michelle caruso-cabrera has been following the international stories.hat worry you, jim. >> very much. >> china is definitely, their central bank is absolutely trying to engineer a credit crunch. however, we do know in the last 24 hours they did step in and add some liquidity to the banking system because though they want higher interest rates they didn't want them to go as high, as nosebleed high as we saw in the overnight rate. they definitely want to clamp down on what they consider. >> excess borrowing. >> sharky, snarky, lending. lots of bad arbitrage going on there because they think it's gotten too bubbly. >> sue, i know you followed china relatively closely, been an observer for a long time. i do. >> what would you like to ask jim or michelle? >> i'd like to know whether or not you think the united states is strong enough to stand up to the problems that china obviously is facing. michelle's done a fantastic job in detailing them, but are we somewhat immune from them or not? >> the real economy is. i think that china is turning out to not be as

. >>> tomorrow, michelle caruso-cabrera in mexico one-on-one with carlos slim. with an empire under threat where does the world's richest man see new opportunities now? a cnbc exclusive tomorrow evening on cnbc. it's monday, a brand new start. with centurylink visionary cloud infrastructure, and custom communications solutions, your business is more reliable, secure, and agile. fso you're worried about housef fires? stop smoking. manage your wires. watch out for space heaters. clean the chimney. get one of these. cool the romance. and of course, talk to farmers. hi. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪ . >>> all right. in her new book meredith whitney sees decades of gains on the horizon for states like texas and oklahoma and others thanks to in part fracing energy revolution, plus low taxes, plus right-to-work laws. she also warns about places like new york, california, arizona, nevada, florida. i'm going to put in illinois. i haven't had a chance to read the book. >> you can put in illinois and new jersey as well. >> because you're worried a

cnbc's michelle caruso-cabrera spoke with the 3m ceo and live with the innovation center in mexico cityter: they have different areas of innovation center that they use to show customers new products involved with customers here. we're in the dental area where they're always working on new things. one of the things, a product that they now, makes it easier when you go to the dentist and need a crown. in the old days put one in your mouth, the tray, filled it with gel, took a couple of weeks, got the crown back, had to test it. the new product they have or a product that they find successful it's like a magic wand. it's a light stick that they shine at your teeth, just one pass -- >> michelle. unfortunately we're having audio issues. we'll get michelle's audio issues fixed, of course. it's a long way. we had to string that cable from here to mexico city. we have to get audio tweaks fixed. >> from 3m to 3-d, special as access to makerbot new 50,000 square foot facility in brooklyn. the company's looking to hire new staff for its products. he's chosen to keep factories in the u.s. keep up

. >> cnbc's michelle caruso-cabrera. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our businessnnouncer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ can help you do what you do... always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could

i'm joined by michelle caruso-cabrera and brian sullivan.t the futures and we'll explain why the music is playing. brian thinks -- you think it's offensive. >> it's offensive. have a little leprechaun dancing across the screen. we have van morrison, the chi chieftains. >> go back to futures. we have some green arrows. do you consider green an irish -- he's wearing a green tie, now, whole no,. anyway dow jones looks like it will open up 60, 70 points higher. s&p up eight points and nasdaq up 17 points. >> no secret ireland is a great country filled with terrific and attractive people especially county cork. but no secret it's one of the world's one of tax havens attracting investments from apple, intel and others. but after apple ceo tim cook testified on capitol hill last month of how much of its money floss tax-free through ireland lawmakers have been calling on emerald isle's low tax rate. with us barry o'leary responsible for cultivating foreign investment in ireland. >> welcome. >> welcome, sir. >> thank you very much. >> defend your tax

with cnbc's michelle caruso-cabrera. what's moving the markets this morning?>> you ought to have the ceo of the company that bought twinkies. >> that would be interesting. >> concerns about the chinese banking system. just like our federal reserve here has said they are going to be less easy with money into the economy, the say thing is happening in china. for different reasons. been trying to crack down on sneaky lending the government doesn't like. they think it leads to a lot of ponzi schemes and a lot of negative consequences for the economy. but because they are getting tighter with money, it will affect the chinese economy in some form or fashion and that's worried u.s. investors here because, remember, they are the second largest economy in the world. most of the world is relying on them to continue growing. in a world that's really been fueling a lot of boom activity that we've seen, if there is any, in the last few years. go ahead. >> we also had teels edteels te baghdad banking story. >> citigroup is opening a branch in baghdad. so precrisis. and thi

and our own national correspondent michelle caruso-cabrera has more on the central bank.s to be going in purpose despite the intensing worrying. >> yes, we can chart it for you. rick santelli was talk act it earlier, but this is shybois ans the intrabank rate that banks use to lend to each other, and similar to the libor in england. if we show you the repo rate we should show you intraday 25%. if you don't know what that repo rate is, don't worry about it, but when it is rising they want to suck money out of the system, and when they lower it, they want to inject money into the system, and it is clear that the chinese central bank is trying to suck money out of the system. why are they are trying to do this? it looks like they are trying to engineer some crackdown on shadow lending. remember, a lot of the lending that happens in china that is not done by the big banks, and they are worried about it, because it is unregulated. it comes from the pawnshops and the ponzi schemes and from things like called wealth management products. that means, you as a chinese citizen, if y

i'm becky quick along with joe kernen and michelle caruso cabrera. andrew ross sorkin is off today.s. stocks actually starting the month off with a winning session. the dow gaining back much of the losses that it's made on friday. you can see up about 138 points. it's a gain of nearly 1%. but the bears might take note that the blue chip index has been down in seven of the last eight junes. since 2000, the year 2000, june is actually tide with september as the dow's worst month of the year. today, of course, is tuesday. and as joe mentioned, that's been good news for the bulls for the last 20 session necessary a row. the dow has ended higher for the last 20 consecutive tuesdays and that makes the longest streak in history. i think by several weeks. i think we started saying maybe three weeks ago it was the longest winning streak ever. so we'll see what happens today. at this point, if you want to check out the futures, you'll see that at least at this hour, there are some modest red arrows. down 2

but we're joined by michelle caruso-cabrera and brian sullivan.re closed and closed mixed in a volatile session. china's central bank said it would provide cash to institutions that needed it. hong kong shares had their best day in nearly six months as investors hunted for bargains following the recent selloff but japan's nikkei dropped below the 13,000 mark. china's yuan slipping against the dollar. the central bank set a weaker official mid-point. traders say that this is signalling the central bank doesn't intend for the chinese currency to appreciate further. the major indexes are mostly higher in early trading. among the catalyst follow through from yesterday's session on wall street and news that german consumer sentiment rose to its highest level in six years. we'll have more from our colleagues overseas in just a couple of minutes. let's first get to michele. >> on the economic agenda today, 7:00 eastern time, getting weekly mortgage applications.

. >>> still to come on "squawk," michelle ka reduusseduce michelle caruso-cabrera.y's top story, we've got an overnight rally in japan. the nikkei soaring 5% on a strong gdp revision and a weaker yen. in the u.s., equities are pointing to positive opening on wall street. and the story, of course, that everybody is buzzing about this morning, a 29-year-old former cia worker says he was the leak behind the internet and telephone surveillance. it is immune, jumonday, june 10. "squawk box" begins right now. ♪ i always feel like somebody's watching me ♪ ♪ and i have no privacy >>> good morning, everybody. welcome to "squawk box." i'm becky quick along with andrew ross sorkin. joe is off today, but we are thrilled to be joined by a terrific trio of reporters. we have reuters dan collaruso, joe wisenthal and ben white. they are all ready to tackle the big stories. first up, the nikkei bouncing back from a two-month low. japan's benchmark index rising 5% to close at a session high. you may think this is a huge deal. it is to a certain extent, but boy, have we seen some vola

i'm becky quick along with joe kernen and michelle caruso cabrera. andrew ross sorkin is off today. we're going to start things off with the markets. stocks actually starting the month off with a winning session. the dow gaining back much of the losses that it's made on friday. you can see up about 138 points. it's a gain of nearly 1%. but the bears might take note that the blue chip index has been down in seven of the last eight junes. since 2000, the year 2000, june is actually tide with september as the dow's worst month of the year. today, of course, is tuesday. and as joe mentioned, that's been good news for the bulls for the last 20 session necessary a row. the dow has ended higher for the last 20 consecutive tuesdays and that makes the longest streak in history. i think by several weeks. i think we started saying maybe three weeks ago it was the longest winning streak ever. so we'll see what happens today. at this point, if you want to check out the futures, you'll see that at least at this hour, there are some modest red arrows. down 26 points for the dow futures. s&p future

cnbc chief correspondent michelle caruso-cabrera johns us with more. >> let's start with turkey, violentend after they cleared the square in question t. video is pretty incredible. we can roll it any second new. you can see what was happening over the weekend. richard engel who was on a half an hour ago says it is quiet there, except for the fact there will be union protests. the clashes came after the protesters refused to leave. they offered to have a vote and the kours decide on whether or not there would be the redevelopment of a park in central istanbul, it was the whole nexus, the beginning of the protest about 18 days ago. now, of course, it spread to issues related to the prime minister. it's unclear where this goes from here. the square has been cleared. one of the protesters do from here? we will have to see how it plays out. it is a big unknown. let's see what happened in iran over the weekend t. moderate ha san rwani won over the week t. slate had been approved by the governing country. he won by a far larger marginch he campaigned on the economy, remember the irani currency

michelle caruso-cabrera joins us with a look at the international stories that are sparking trading overseasuned on a very interesting morning. "squawk box" will be right back. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. hurry, before this opportunity cools off. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] >>> coming up, a credit crunch in china. that's the question. why bank lending issues there could spell trouble elsewhere. >>> miami heat winning back to back nba championships. heat beating the san antonio spurs 95-88 in game seven last night. it was quite a series. lebron james scoring 37 points. grabbing 12 rebounds. earning mvp honors for the second straight year. every day we're working to be an

. >>> our chief international correspondent is in mexico city this morning, michelle caruso-cabrera bringsere with inge thulin. thanks for doing this. why are we in mexico city? what is this customer innovation center. why does it exist? >> first of all, why we are here, mexico is an important marketplace. it is big. we are as a big company a $30 billion and latin america stands for 8% of that revenue. of that 8%, 21% is mexico. we have been here for a long time. in fact, 65 years in mexico, i have built a very good infrastructure on the market. we are today in a customer technical center here that we have 50 all around the world. so what you see here today this morning is one of almost 50 work. >> what do you do with this place? this is for what? >> this is in order for us, customers come in, use the process, customer enspyder innovation. that's in the beginning of the process for us in order to develop new products and new solutions and as you know that innovation or research and development is in the middle of our plan. it's very, very important. >> so we see a laboratory behind you, th

cnbc's michelle caruso-cabrera is joining us on set with the latest. keeps unraveling. >> so, you should have two key takeaways when i finish this report. it is quite possible that we are experiencing and watching a watershed moment in chinese economic history if the narrative bears out like they hope it will. second of all, the second takeaway is it could get really scary because of that. let me just give you now, let's drill down and show you what happened overnight. the shanghai market fell again, not by very much. it recovered well off the bottom, but it had dropped precipitously as it sets in that interest rates are going to stay at higher levels in china and credit is going to be tougher. shiner, the overnight rate, the intrabank rate we had been so focused on, it fell slightly, not as fast as it had the day before, but still at elevated levels, down from the nose-bleed levels that you can see way to the right but still maintaining at a level higher than just a month ago. and it's becoming clear from statements once again out of the central bank

live to mexico and the exclusive interview that we have this morning with michelle caruso-cabrera talkinggood afternoon. >> hey sh, there, simon. you mentioned the new telecom reform bill signed yesterday by this country's president takes straight aim at the mexican telecom corporation controlled by carlos slim which is under america movil. he is not under that law, because of the company he founded, but the shares of the company have fallen, and that means that carlos slim is now the second richest man in the world, and not the first. the first is bill gates at $730 billion, and carlos slim only comes in at $66 billion, and makes warren buffett look like a around at mere $66 billion. i asked him how he felt about slipping to number two. >> forbes says that you are no longer the richest man in the world, and bill gates is now the richest man in the world. do you care? >> i don't matter anything. i have told you many times that. >> how do you think about wealth in general? >> i think that it is a come o compromise. >> in what way? >> well, you need to take care and have the responsibility

michelle caruso-cabrera is live at hq with more on that. >> early this morning, just five hours ago,e credit crunch that's been spooking the international markets. the bank acknowledges that, quote, recently they provided liquidity to support some financial institutions. and also that some banks with abundant liquidity have acted as market stabilizers by lending out their funds. some intrabank lending. in this statement, and the central bank is not independent, they are a political arm of the government, they also scolded the banks and told them to face liquidity volumity with unimpassioned manner and avoid irrational behaviors. for those financial institutions with loans that match the state industrial policy and benefit the real economy, if there is a temporary liquidity shortage, the central bank will provide support. the rest of the banks, they don't think support state policy, that will be done on a case-by-case basis. this statement was posted after shanghai closed. stocks were lower again today but nearly as bad as yesterday. the interbank lending rate, the shy bor, the overni

. >> meanwhile in china, our correspondent michelle caruso-cabrera has more on this. >> overnight lending and a half. i want to show you shibor and we know libor, but this is the overnight lending bank rate, and this is the chart back to the last couple of years and you can see the sharp rise in the last week and a half or so, and first of all why this is happening is that there is a strain going on within the financial system there. possible causes that you will always see before a big holiday and right now they have the dragon boat holiday and not bigger than that, but it is bigger, and because of hawkish rhetoric about shadow banking o going on in china this last weeks in particular. here's the background that you need to know to understand this. interest rates paid by the banks in china are set by the government. the rate right now is below the rate of inflation, so if you put your money in the bank, you are losing purchasing power everyday which has led to a huge rise in something else, wmps, wealth management product, and these are offered by the banks and investment vehicles which