commodities andave a look and the are tradingmorning, both nikkei and 740.course stos in the u also uncertaintie eu and su kick offlot of whether some of those be that's markets, an we also hadmoody's on of course downgrad spain's sovereign debt which couple ofon june 13th, markets pretty muc sidestping any good have n of yesterday, highest years, pretty much side stepped. of energywe have seen investors of preciousand at one did see gold actually, gold was1% crude oil down percent at around you can see the ocks will be following hewe with spain formformal ly requestus about the markets? >> some of with t dollar/yen andingthere.80 and the euro/yen und100 ye focus there on tsummit, which is thursday and friday but what's cles the expectations resolution to the bank also disagreements ofeu eu countries want germany, which is t eu country, can actually give. that plays >> all right, for that egard from the tok stock exchange. nd the about half a tuesday morninatest for i'll leave check on g this hour. >>> eu f have f frustrated in effort iranians to ha program. go effect on sundayned. takashiichinosa

might not be the outcome you want sitting on the aisle but at least the uncertainty is removed. eu, some uncertainty removed. i look at the portfolio. does it change anything for the second half? >> well, i think really the thing to be looking at is weakness in the emerging markets. you know, i specifically take a look at china. we just went there recently. i have to tell you that though there are a lot of western investors predicted an economic malaise to take place in china, the people themselves are not ready for that slowdown. with an economy that right now is expected to bottom out around 7.5% and down to 4%, 3% growth, that's going to be really a worse-case scenario in my opinion with china and then goes the rest of the world economy. >> yeah. i think chinese companies hoarding u.s. dollars right now tells the story. sorry, brian. >> no worries. where's the best place to invest in the u.s. right now? mattresses, dirt, you name it. >> i think stocks is one of the most attractive asset classes and looking for quality companies across various industries and i think that technolo

fall, also following the further uncertainties in the eu, and the summit, which is due to kick off this week. lot of investors questioning whether some of those issues can be fully resolved and that's really hanging over the markets, and as you mentioned we also had moody's downgrading 28 of spain's banks, and that late on monday and that of course follows moody's downgrade of spain's sovereign debt which we saw just a couple of weeks ago on june 13th, which means the markets pretty much also sidestepping any good news. we did have new home sales out of the u.s. yesterday, which showed its highest rise in two years, but that was pretty much side stepped. we'll also keep track of commodity related stocks and energy stocks. we have seen investors swinging in and out of precious metals, and at one stage we did see gold actually, gold was up about 1%, wti crude oil prices actually down three-quarters of a percent at around $79, as you can see there on the screen, so some commodity-related stocks will be following here as well. ai? >> with spain and cyprus formally formal ly requesting bailo

the deal is expected to calm the political uncertainty that has prevailed since last month. eu officials demanded budget cuts in return for billions of dollars in aid. but the parties in the coalition have also pledged to renegotiate the terms of the bailout. >>> and that concludes this edition of "newsline." i'm catherine kobayashi in tokyo. we'll update the news at the top of the hour. xxxxx

but market players later became skeptical because the conditions for the eu support are unclear. but despite uncertainties about the spanish economy, u.s. and european markets recovered most of their losses on tuesday. that is on hopes that major central banks will move to stimulate their economies. let's see how tokyo stocks are kicking off wednesday. chin lee is at the tokyo stock exchange. quite some see-sawing in the markets already this week. >> that's right. u.s. and european markets enjoyed a good run-up yesterday. as they put aside thoughts of greece and spain instead to pin their hopes on the higher powers at the central banks instead. u.s. recovered all of its losses since monday, and that's on hopes that the situation has gotten so bad, so serious now, that the central banks simply have to sit up and take action. let's see how that's moving markets in tokyo this morning. as you can see, the nikkei is up 0.54% at 8,582. the topix at 246. the imf has said any moves by the bank of japan to weaken the yen would be understandable and in fact that the yen was moderately overvalued. that's raising hop

he also says the eu must reduce uncertainty in the banking system and eu economies must open up for growthing off what we just heard the danish finance minister there and he says the recap of spanish banks must be tough on owners. we'll bring you more headlineses from that conference as we get them. the sminstitute of internationa finance represents private sector bond holderses and has criticized the ecb's role in the deal. speaking in copenhagen, deputy managing director said a situation where they can claim preference over private bond holders is an unhappy one. joining us is martin feldstein, harvard university. marty, initially right off the bat here, can we get your thoughts on the european situation? was the euro project, mr. feldstein, a mistake. >> it was a mistake the way it was constructed at the beginning. but they're stuck with it now. the countries differ a lot. greece is different than talking about italy and spain is different from either of them. so there is no single fix for all of them. frankly, i think greece is beyond repair. unless they will transfer money year after

can the rally be sustained with so much uncertainty still in this market ahead of the eu summit? we have a pair of top strategist standing by. there is no doubt about the stock of the day. arena pharmaceuticals skyrocketing after approval of the first new ain't obesity drug after 13 years. the ceo will talk to us about how much revenue this the drug could generate. >> a little selling on the close, the do you was up 100 plus points in the final hour, but we're settling at 93. the that's back also with a gain of about 3 yaurt -- three quart a per sen. investors optimistic ahead of the flurry of potential market moving headlines due out tomorrow. the european summit, first quarter gdp, and i guess we're going to get the supreme court decision on health care reform all tomorrow. >> what could be the potential affect. it's good to have you here, what do you make of this move today ahead of so much uncertainty in europe, and what will happen with the supreme court tomorrow. >> it's interesting. i'm not smart enough to say why the market moved today. in terms of the supreme court decis

asian bourses are mostly in the red as they have uncertainty over the outcome of this thursday's eu summit. chinese stocks saw a weak start after the long holiday weekend. the composite slipped about 1.6% hitting its lowest level in month. property plays were the biggest losers. markets will be waiting on china's official data expected to be out this sunday on the economy. hong kong shares failed to stay in the green as well finishing about half a percent lower. tokyo did most of the weakness centered on europe's exposed stock. the threat of policy paralysis over plans to raise the country's sales tax weighed on sentime sentiment. the kospi moved down with bell with weather electronics tracking the broader index throughout the session and, of course, our reporter rhie-young lim will be live from seoul. half a percent closing a three-week low. india sensex is the clear outperformer today trading up about 0.4% on expectation the government is set to announce key measures to boost the economy and control the sliding ru rupee. we will have more coming up in roughly ten minutes. back to you, ro

political uncertainty in greece are leading to worries about a deepening of the crisis in the eurozone. it was the lowest exchange rate since september 2000. investors say their concerns about the eu debt prompted them to sell the euro. a new report about slowing growth in the u.s. made them sell off the dollar. they turned from those currencies to th perceived safety of the yen. but investors here in japan aren't fans of the strong yen. let's turn to ai uchida from the business desk. tell us why the strong currency works negatively against stocks. >> catherine, many companies here are export dependent, and the yen is their instrument to make the -- any kind of foreign trades. but if the yen is strong it eats into their profits so that's why we often see currency markets affecting stock markets negatively. so let's see what the picture is like today. for that we're going to ramin mellegard who is at the tokyo stock exchange. ramin, good morning to you. a brand new month here. how are we starting it off in tokyo? >> very good morning to you ai. yes, indeed. the strength of the persistently weak euro really playing into the stocks here. so the strength of the yen really, and as you

of course, given all the uncertainty as investors await news from the eu summit and the supreme courting later today, the risk on trade is off today so we are also seeing early weakness in some of the commodity stocks, minors, et cetera, they are a little bit weaker in today's session early on. of course, we want to just check on some of the health insurance to see how they're doing ahead of the expected 10:00 ruling on obama care. you can see they are mixed or actually those are the commodity stock, mixed. i want to note aol was spiking in the premarket on the news. buyback on 400 million on the shares of n. a dutch option. >>> thank you. let's shift to bonds. take it away. >> thanks, jim. i have to tell you, we know we have the supremes today. we know we have a lot of issues in europe. and even though the florida isn't as busy as it used to be in the old days, there's a lot going on. you can sense an anxiety. weather you're listening right now or reviewing, there's going to be potential volatility today. be warned. if we look at the 24-hour chart, we're down four or five base points

uncertainty. >> there is a lot out there waiting on. to break the cycle, do we need all of the ducks to line up or take one really good outcome and a good outcome of the eu summit or the second quarter earnings or something else? >> mandy, it probably only requires one of those i think to be if you will the medicine that retail investors are looking for to perhaps tiptoe back in the market. probability not health care repeal, though. probably the eu because that continues to contribute mightily to the risk on, risk off no dalty creating tremendous volatility. >> how is that? concrete, i don't know, some kind of a concrete decision out of the eu. >> i would say that's not likely an the fact of consensus nothing is expected out of this summit unlike the previous ones, that could lead to a positive surprise. the lasting nature of the surprise is driven by a concrete solution than just more lip service dedicated to these are the things to do and still haven't as of yet done. >> one thing to benefit the market and maybe drive individual investors back in is lack of news. >> in other words, no news is good news. >> exactly. americans and the stock market -- >>

eu summit. hopes are high for the summit, butctatioexpectations, but noth expect t expected to come of it. and uncertainty here in the u.s. with the health care ruling from the supreme court is weighing on the sentiment as well. it is hard for the investors to trade on something they don't know yet. >> thank you, alison. >>> president obama did something that his pred sors tried but failed to do. he got health care reform passed and we are still fighting about it 60 years after the first ambitious push for change. ♪ ♪ ♪ >>> we're waiting a press conference that will happen momentarily. jan brewer will be holding a press conference. she'll be talking about her response to the supreme court's ruling regarding the controversial immigration law out of her state. we'll bring that to you live. >>> whether you call it obama care or the affordable care act. health care reform considered a single accomplishment of the obama administration and for good reason. preponderat presidents tried and failed to improve health care. >> reporter: in putting his signature in what came to be known as obama care, the president d

eu policymakers in return have suggested that perhaps they'll listen to those demands. so i think we are in for a period of one, two, three weeks of which there's significant uncertainty andyes, you know, provide liquidity and if necessary emergency liquidity provisions. does that produce a 1.25% u.s. treasury? i don't think so. i think treasuries, guilts, approaching a period of time in which yooelds don't move lower but simply stay where they are, ghi in to hibernation. >> i think what's interesting here is resounding silence in terms of what the u.s. would do in the scenario and just heard from a top treasury official to work closely with european counterparts to try to stabilize the markets and provide confidence. michael, i want to get to you with the possible three scenarios. detail what would happen to equities for our money and equities with the three scenarios. >> well, i agree with andy. the first scenario and the new portfolio and form a majority and probably get another wave of the risk-on rally. we had a little bit this week in the expectation that we'll see easier policy with a better political outcome and extend. getting syriza as the winner then what you g

getting hammered by 5%, so much uncertainty with the illness related to the two leaders, italy lower by 3% so it is a rough day in the european markets. we'll talk about the eurant from ft. lauderdale, managing director at southwest securities and guest host for the next hour is barry knapp, head of the u.s. equity portfolio stroategy with barclays. >> thank you. >> mark, what do you see right now, obviously you've been watching every turn in europe, i get a lot of e-mails from you every day with the latest. what is your sense at this point in terms of where we are in this whole crisis? >> well i think where we are in the crisis is that greece is going to come and ask everybody for more aid. germany made it very clear their finance minister over the weekend that there was no more aid, it was going to be forthcoming. i think they're going to get down to a game of chicken, trying to get more assistance, they want to roll back a number of the policies, roll back the austerity measures. i think germany is going to say no, and then i think you're going to see a crisis, and i think that's going to probably be this week, if not this week, next week. spain also is i