u.s. treasury secretary jacob lew. people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have thney to enjoy all of these years. ♪ >>> you're watching "worldwide exchange". >>> greenback pushes dollar/yen past new handle, unlocking a new stage of rallies with japanese equities. >>> the g-7 finance ministers this weekend. we'll bring you exclusive interview with jacob lew in a few minutes after talks with george osborne. >>> battle lines have been drawn. carl icahn is set to launch a proxy fight for dell, facing off against buyout bid by the company's founder, michael dell. >>> italian stocks lead in europe as generali outperforms. recovering from last year's losses. the ceo told cnbc in another exclusive where the strengt

u.s. treasury regulations. our cautionary agreement, common in the industry, is audited by the irs and we are in full compliance with all laws and regulations. the agreement enables apple to share the cost and risk of developing new products with our irish subsidiaries. all of this r&d and the jobs that go with it take place in the u.s.. for funding, the irish subsidiaries have rights to distribute in europe and asia, products created by the r&d funded by the agreement. we have used this method to distribute products internationally for more than 30 years. more than half of our ongoing r&d cost are funded by apple ireland. when times are good, as they happen in recent years, our irish subsidiaries benefit rightly, as we do in the u.s.. when they lost money in the mid- 1990's, our irish subsidiaries lost money as well. losing money then, because it serves as a reminder apple came to going out of business. the brink of bankruptcy and about out of cash. in two years, we lost $2 billion. i can tell you firsthand, w

u.s. treasuries right here. - should investors be concerned about inflation at this point? - i'm not sure that inflation is the real indicator. part of it's policy-related. hilsenrath's article on friday in the wall street journal really preempting what fed policy might look like, so there are forward expectations about policy implications. but inflation, in terms of real price or wage-based inflation, is still probably some 12 to 24 months out. - and how long before we see any kind of grand rotation? - i think the grand rotation really therefore becomes a three- to five-year, a more cyclical move. the compression in yields, one done by the central banks, and two, the opportunities that have been pursued in the equity markets, are both really at the very latter stages of their game. so, investors are going to have to deal with this market churn across all asset classes for the next 12 to 24 months, and then deal with the larger question of more secular rotations in the three to five-year time period. - thank you lincoln. lincoln ellis of strategic financial group. thank you

u.s. treasury fifty nine billion dollars in dividends which will put off the debt ceiling debate in congress now some have reported that fannie and freddie's profits were driven by a recovering housing market but according to fact fannie ten q her net income was primarily driven by record re crediting tax deferred assets to further discuss this i have with me john pryor of politico thanks for having me thanks for joining so let's talk about this fifty nine billion dollars that fannie and freddie are going to pay to the treasury fifty billion of that is accountable due to deferred tax assets what does this mean what are they and how do they generate so much money right so back in two thousand and eight when these two companies are being taken over by the government they decided to pull in county maneuver to push out some of the losses they were building up their balance sheets but that the same time they pushed out the taxpayer if it's that they would take on those losses until at some point whenever there are accounting. decided they would be profitable enough in the future to cover those lo

u.s. treasury which is so what?tered with the sec and we know what kind of regulations did for people there. but the other issue that this raises is now all of the bitcoin exchanges have to get licenses from the 50 states, all of their, whether it is their banking committees or their financial services committees to be money transmitters. so the regulation has already begun. whether you get your money back is another issue. one of the exchanges already went belly-up, $300,000 missing. david: ow oh. >> a lot of people very angry about that. david: between big brains like charlie monger and bill gates. >> even treasury i asked, people who lost their money in the exchange which closed who is charge? u.s. treasury doesn't know. david: adam shapiro, thanks very much. good stuff. >> we have breaking news, jcpenney releasing early guidance and it is not pretty. a top analyst weighs in. you don't want to miss this. it is moving markets after-hours. the very latest on what's up with jcpenney. ♪ . [ indistinct shouting ] ♪ [

u.s. treasury and buy german bunds. er here. it may taper back a little bit, but u.s. rates continue to go up. german unemployment rate was weak today, and i think europe remains weak for some time. >> about 70 basis points on that spread on the ten-year. thank you very much, andy busch, author and publisher of "the busch update" and cnbc contributor. >>> new york has become the latest city to embrace the bicycle. this week it launched a bike-sharing scheme that placed 6,000 citigroup-funded cycles in 300 docking stations across manhattan and brooklyn, making it the biggest such program in the states. italy has also been putting it on. according to government reports, sales of bikes have overtaken cars for the second time in nearly 50 years. earlier, we asked if bike is your preferred meth yol of transportation. fred from ohio has written in to say he opts to ride a bicycle wherever and whenever possible. however, fred says he has too much fear of cars and trucks to ride on major streets. i hear you on that one as well.

u.s. treasury second the same day so in a massive bailout for u.s. taxpayers of mexico but the money went straight to the u.s. banks triple stripping to kill a trip mission accomplished well mexico's nursed a recession hung over for over a decade wall street literally cracks open the bubbly. there was a big party at morgan stanley after the peso devaluation people from all over wall street county they drank champagne and smoked cigars and congratulated themselves these people are pirates international pirates talk makes going to call them as they can their own figures to share washington's globalization campaign is a sham this short growth shows any gains from international trade. internal commerce within a country leaving no games just huge disruption to communities the author of that report joins us talk to call this thing us what did you find. i found that in fact international trade benefited only a tiny group of the super rich globalization's been great for them not for the world the rest of us pay twice first for more imports then high interest

u.s. treasuries. >> the central bank boss told a u.s. congressional hearing that the american economy remains weak. bernanke says monetary policy should remain on hold until the u.s. recovery picks up further. how did investors respond? our markets correspondence sent us this summary from the trading floor. -- our markets correspondent sent us this summer. >> briefly after 4:00 p.m., traders were clapping their hands, applauding the decision of the head of the u.s. central bank. he said what traders wanted to hear -- the fed will continue its bond-buying until the labor market has improved substantially, which is not yet the case, meaning that the flooding with cheap money will continue. money which should help the economy to recover, but which is also driving the markets, including the dax, to new record highs because investors can only get an acceptable return with riskier assets. the central bank in the u.s. is not alone. >> let's get a closer look at those market numbers. the dax saddling the day at yet another record, about 0.7% hig

u.s. treasuries. >> the central bank boss told a u.s. congressional hearing that the american economy remains weak. bernanke says monetary policy should remain on hold until the u.s. recovery picks up further. how did investors respond? our markets correspondence sent us this summary from the trading floor. -- our markets correspondent sent us this summer. >> briefly after 4:00 p.m., traders were clapping their hands, applauding the decision of the head of the u.s. central bank. he said what traders wanted to hear -- the fed will continue its bond-buying until the labor market has improved substantially, which is not yet the case, meaning that the flooding with cheap money will continue. money which should help the economy to recover, but which is also driving the markets, including the dax, to new record highs because investors can only get an acceptable return with riskier assets. the central bank in the u.s. is not alone. >> let's get a closer look at those market numbers. the dax saddling the day at yet another record, about 0.7% hig

u.s. treasuries and dollar/yen as we go forward. >> yeah.easuries going to rooid rise, such a big rise since the employment report. how much more can we push on that? >> well, it's going to be a question of continuous u.s. economic data surprising to the up side. as you've said, we've had a couple of months where we have surprised to the down side. u.s. sales were decent. even after the u.s. sales yesterday, we clearly were overbought in dollar/yen right now. there is profit taking due after the massive runs that we've had in the last couple of days. i think we're going to pull back to maybe 1011.50 consolidates and wait for the next piece of marp u.s. data. if we can continue to see that on the u.s. economy through the summer, you will see dollar/yen higher, probably 105, maybe even some analysts spec lathing 110 into the fall season. >> all right. good to see you, boris. thanks very much indeed for that, as ever. you have your whole day ahead of you, boris. isn't that good? >> i do, i do. i start any day early. and i watch you every day. >

u.s. treasury secretary jack lew gave american tv viewers his take on the japanese policy. he said he accepts what the japanese leaders are doing as long as they're not devaluing the yen deliberately. he said he'll keep an eye on whether the japanese stick to rules agreed by the leaders of the g7 and g20. and the german finance minister sent a similar message. he said the leader of all g20 nations must keep their agreement. >>> japanese government leaders are looking to boost their companies by invisting esting i africa. prime minister abe plans to hold bilateral talks next month on the sidelines of the tokyo international conference on african development. analyst saz js say japanese min will strike their first deal with leaders of mozambique. that will help japanese firm invest in a country rich in natural resources such as coal and gas. >>> japanese government leaders have set out their position on an issue that's put them under fire from neighbors. they say they'll follow the same line as their predecessors on japan's history of wartime aggression. the south korean pres

u.s. treasury will sell the remaining gm stock on hold from the auto bailout. the department expects to sell all of its gm investments within the next 12 months. they are out of the auto business. >>> straight ahead, the top trending stories of the day. >>> plus congress will hear from a state department official who has conflicting evidence from hillary clinton over what really happened the night four americans were killed in benghazi, next. >>> republicans in congress are gearing up for a new set of hearings this week on the benghazi consulate attack. that claimed four u.s. lives. they say new state department witnesses will undercut hillary clinton's explanation of what went wrong. nbc's chief foreign affairs correspondent, andrea mitchell, has that story for us. >> reporter: the attack on the benghazi mission started around 9:40 p.m. by 3:00 in the morning ambassador chris stevens and information officer sean smith were dead. two other americans former navy s.e.a.l.s working as security contractors did not die until a second full assault at 5:15 a.m. on a c

u.s. treasury new about the actions last summer. >> also in the hot seat today, o.j. simpson's former attorney jail glanter on the witness stand. he accusings ga lanter of doing a poor job in 2008 in which e was convicted of kidnapping and robbery. he also says ga lanter gave him bad advice. >> he and some of his boys may be doing a sting in the morning. >> did you ever tell the him that it was within his legal rights to go take his property back from whoever had it? >> no. >> simpson also says glanter never told him about a plea deal that he would have taken. the judge will determine whether simpson deserves a new trial. >>> in health matters tonight depression may put middle-aged women at a greater risk of stoke. 47 to 52-year-old women who were greszed were two and a half times more likely to have a stroke than their peers. it's not clear by depression is linked to stroke but experts think the body's physical reaction to stress could result in damage to bod vessels. >>> fitness can protect you from getting cancer even 20 years down the road especially for men. men

u.s. treasury bailed out fannie mae during the financial crisis. it expects to stay profitable for the foreseeable future. >>> a dire warning about the impact of the more than $1 trillion in student loan debt. the consumer financial protection bureau says much outstanding debt could have a devastating, domino affect on the economy, depleting savings, limiting spending on new cars sxuting off retirement savings indefinitely. and as diana oelich tells us, it could also have a serious impact on the housing market. >> sophia wanted to buy a home two years ago, but her student loans stood in the way. >> it definitely took a long longer than i anticipated. >> facing in $60,000 in debt from graduate and undergraduate schools, she moved back in with her parents. the only way we could save aggressively while paying down debt. >> i consider myself lucky that i had a place i could save. but people who aren't originally from the area who have to pay an extra $1,500 a month in renting, thattan rent money is not going to saving. how are they going to be able to

u.s. treasury winds down its stake. >> a different story for facebook since its wall street debut. tomorrow marks the one-year anniversary since the social media darling became a public company and one tush y turbulen. after a gross mishandling of the ipo with canceled orders and confusion, the stock didn't perform well. off 31% since it became public, making it the worst performing stock in the nasdaq 100 over the past year. but a year later, many people still want to know how facebook makes money. julia boorsten explains. >> they want to keep over 1.1 billion monthly users, connecting, sharing and playing, more time spent on the site means more ads can be delivered. ads like these on the page and others interspersed in the news feed. they uniquely target each individual user, so the ads are see are determined by who i am, what i share and the links i click on. in 2012, facebook generated 5.1 billion in revenue. vast majority of ads, and advertising revenue in the first quarter grew 43% to 1.$1.25 billion and smartphone adds went from 0 to 30% of revenue. and they can set up commu

u.s. treasury secretary jack lew on "worldwide exchange" tomorrow at 11:30.ught now with stephen, as well. big question for investors, stephen, is do you just -- whatever the reason for this rally, do you stick with it for now? >> the reasons for this rally are simply what the central banks are doing. and if you believe, as i do, that if anything there's more coming down the line, then i'm afraid you have to stick with this rally. the power of low interest rates, i'll give you one example. bp issued 3 billion worth of bonds this week. the five-year bonds were yielding less than 2%. the ten-year is less than 3%. yet its dividend is yielding around 5%. we used to be you go back even a few years, it's only for decades, texts revealed less than bonds because they had higher prospects for growth. now the dow has been turned on its head. that gap will be closed one way or the other. noe not by lower bond prices, but by higher equity prices. i'm afraid you've got to go with it. >> all right. fair enough. stephen, good to see you today. thanks so much for joining us,

u.s. treasuries. we only really ever liked two at one time.gold has fallen off and people are beginning to look at, what is the real driver of that price? everybody who has wanted to be long gold has been long gold. and that trade is over. those people are exiting that trade and now you're back to the fundamentals. and that's really more, as tim says, an emerging market story. that's where the fundamental demand is, china, india, things of that nature. maybe moving away from gold as the driver, by looking more to the fundamentals of what's going on in the mining business may be reason to take a second look at them. >> and lincoln ellis, thank you for your thoughts. we have some breaking news now from kate kelly joining us on the phone. what is it? kate? >> mandy, thank you so much. fac issuing a letter to its investors, telling them two important things. they are changing their stance with the government, as the government continues to investigate ss.a.c. on a criminal level in terms of potential misconduct, insider trading allegations that ha

u.s. treasuries. >>> conquering cancer. the promising treatments being developed by some of the world's biggest drug companies to fight the deadliest forms of the disease. all that and more, tonight, on "nightly business report," for friday, may 31st. >>> good evening, everyone. welcome. the month of may felt more like the month of march today. going out like a lion. selling modest most of the session. in the last hour it hit hard. wave after wave as portfolio managers made month- end moves. the range from high to low on the dow, 277 points, biggest since january 2 knond. it's the worst performance since the day of the boston bombings, nasdaq down 35, s & p lower by 23. all three finished with losses for the week. nevertheless, each of those major barometers ended the month of may with gains, first time that happened since 2009. monthly win streak stands at 7: seven for the s & p, six for the dow. >> to put it in perspective. we have jeremy siegel of the wharton school at pennsylvania. you are predicting the dow gets to as

u.s. treasury plans to settle its remaining stake in general motors which would require the government's bailu.s. auto sector in 2009. separately general motors is recalling 38,000 chevrolet malibu, buick lacrosse and buick regal sedans because of a defective battery control that could stall the engine or cause a fire. for more details go to our website mbr.com. shares of general motors were down slightly today to $31.82. >> we asked a moment ago, do you remember what rattled wall street three years ago today. the answer is the so-called flash crash that sent the dow jones industrial average 1,000 points lower in just the blink of an eye before the markets recovered most of those losses. >> bob pisani looks at whether anything has changed. >> it's been three years since the flash crash and regulators have made several changes to stop trading. the most important changie change is new circuit breakers that would act like a break in the market during a period of rapid drops and still allow stocks to trade within trading bands. >> if a stock trading at $10 suddenly dropped 9% to 9.50 that stock w

u.s. treasuries, though, has stabilized, following a solid demand at a five-year sale. erns that an improving u.s. picture would see the u.s. reserve slow its monetary stimulus. this week on the ten-year noeld hit its highest point since april 2012. joining us from new york is sharon stark, managing director and fixed income strategist at da davidson. sharon, since the beginning of may, really, we've seen yields heading in one direction and that's north. is this trend going to continue? >> i think we'll see a seesaw type of pattern with the ten-year perhaps getting up towards that 220, 223% which is where i traded earlier this week and then coming back down below slightly 2%. the markets are still uncertain about the strength of the u.s. recovery. they know that it's recovering. but the question is it rovring enough for the fed to begin pulling back its bond purchases? >> yeah. and beaking of the recovery, what do you expect for the gdp data for the first quarter? we've got the revisions coming in today and also looking forward do you think that the recovery story is int

u.s. treasury thanks to tarp intervention guided chrysler into a merger with now the new and improved five hundred accelerates along u.s. story i don't know much quicker six point seven seconds but there is another in the monetary world with more torque and acceleration potential than a humble car could ever generate so let's break down and figure out money or currency investopedia says a government declares a currency to be legal tender despite the fact that it has no intrinsic value and is not backed by reserves historically most currencies were based on physical commodities such as gold or silver but. money is based solely on faith so why would anyone value this paper money well for one thing governments make them legal tender meaning all debts but most important taxes must be settled and them big coins the open source internet currency are another example of it particularly because they have no such official backing talk about faith. after world war two when the us dollar became the official world reserve currency britain was agreement fix the price of gold at thirty five dollars an ou

u.s. treasury regulations. it is audited by the irs and in full compliance with all laws and regulations. basically all this takes place in the u.s. in exchange for the funding, the irish subsidiaries have rights in europe and asia, created and funded by the agreement. we have used this internationally for more than 30 years to distribute our product. more than half of our ongoing funds are supplied by ireland. our irish subsidiaries benefit greatly as we have in the u.s. when apple lost money in the 1990s, we lost money with our irish subsidiaries as well. i mention this money in the 1990s because it served as a reminder as to how close application running out of business. we were on the brink of bankruptcy and running out of cash. in just two years, we lost $2 billion. but until you firsthand i can tell you that a big part of the turnaround include streamlining and simplifying so that apple can simplify. we are making everything as simple and efficient as possible as part of that effort, we have consolidated o

u.s. treasury their effective tax cash rate was thirty point five percent and they also said that their car sharing agreement with their four subsidiaries is totally legal and audited by the u.s. ok well rand paul had some interesting things to say today didn't he was one of the more flamboyant characters there and he was being countered by carl levin anything anything interesting that he might have said when he went on a rant he said that congress and apologize to apple for making their life so complicated maybe you showing them and then apple should not apologize a congress which is somewhat of what they were doing on the hill today well looks like we only have time for a few seconds we were going to talk about bill dudley in an important speech that he gave today with respect to financial policy in the u.s. and comparing it to japan so it looks like we'll get to that tomorrow but just a brief recap she's basically saying that we didn't do enough before or japan didn't do enough powerline and we haven't done enough but we're doing it now maybe and on that note we'll just have to continue

u.s. treasuries.oney come back into your fixed income mark, which helped to stabilize the rise in the yields we saw two days ago. as a result of that we haven't seen a sharp rise in the ten-year jgb yield as of the overnight session. we need to watch this one very, very closely. during the japanese trading session. because we have seen huge, huge volatility in the fixed income markets in japan. this tends to influence of course a lot of the sectors like the real estate plays, the companies, the reits, and any company that relies on cheaper interest rates are vulnerable to those high rates. it dictates the moves in the equity markets. we're keeping a very close eye of course on the two major factors, dollar-yen and the ten-year yield to see exactly where equities will be heading in japan. given our futures number, it's going to be a down day today following the declines that you guys had on wall street. back to you, melissa. >> got, it adam. thanks so much. adam bakhtiar joining us from singapore. b.k.

u.s. treasury thanks to tarp intervention guided chrysler into a merger with now the new and improved five hundred excel rates along you have a much quicker six point seven seconds but there is another in the monetary world with more torque and acceleration potential than a whole car could ever generate so let's break down money or currency investopedia says a government declares a currency to be legal tender despite the fact that it has no intrinsic value and is not backed by reserves historically most currencies were based on physical commodities such as gold or silver but. money is based solely on faith so why would anyone value this paper money well for one thing governments make them legal tender meaning all debts but most important taxes must be settled in. the open source internet currency are another example particularly because they have no such official backing talk about. after world war two when the us dollar became the official world's reserve currency the bretton woods agreement to fix the price of gold at thirty five dollars an ounce and other countries were pegged to the do

u.s. treasury thanks to tarp intervention guided chrysler into a merger with now the new and improved five hundred excel rates along you have a much quicker six point seven seconds but there is another in the monetary world with more torque and acceleration potential than a whole car could ever generate so let's break down money or currency investopedia says a government declares a currency to be legal tender despite the fact that it has no intrinsic value and is not backed by reserves historically most currencies were based on physical commodities such as gold or silver but. money is based solely on faith so why would anyone value this paper money well for one thing governments make them legal tender meaning all debts but most importantly taxes must be settled in them big coins the open source internet currency are another example particularly because they have no such official backing talk about a. after world war two when the us dollar became the official world's reserve currency the bretton woods agreement fix the price of gold at thirty five dollars an ounce and other countries were p

u.s. treasury. the agency will owe 21 billion of the originally $116 billion loan then. the recovering housing market and accounting maneuver are behind the good fortune. >>> american airlines reached a settlement with the federal government over safety issues. the carrier will pay nearly $25 million to resolve about 162 million in potential fines over electrical wiring and other problems going back several years. >>> the ftc is moving forward with a plan to provide better in-flight wi-fi service. it's proposing to auction off newly available airways in order to improve the speed and lower the cost of internet service on those flights. it may take years but the goal is to provide travelers with service that exceeds what most americans have at home. >> that is nice. >>> new u.n. report says by next year there could be more cell phones on the earth than people on the earth. right now people outnumber those devices about 300 million in all but with more people working and personal phones, it is changing fast. >>> finally don't forget sunday is mother's day and plenty of pla